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Playing Another Medical Issue

Drugs aren't the only hot issue for this field in D.C. Cramer has been watching another. Find out his strategy.
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Comments

It appears very likely that we'll see malpractice claim reform in the near term because Washington has deemed this a serious issue. The price of practicing medicine has become just too expensive for many doctors otherwise.

As the only pure-play malpractice insurer left in the market, American Physicians Capital (ACAP) already has pricing power and will benefit greatly from this reform. I'm ready to double my stake in the stock on the next pullback because I believe it's on the cusp of a major turn.

I want to build my position to more than 1,000 shares but don't want to chase the stock when it's up more than 2% today to do so. It's at $28.05 as I write.

Regards,

James J. Cramer

DISCLOSURE: At the time of publication, Cramer was long American Physicians Capital.