Jim Cramer's Mad Money In-Depth Stock Picks 5/17

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Wednesday, May 17. Click on a stock ticker for more analysis:

"Cell" Buy - Cramer commented on the hammering the market received yesterday, and discussed the benefits of a downturn. He said that the big financials, technology stocks and healthcare were already "cooked", and that yesterday saw a second down for the ethanol players like Pacific Ethanol (PEIX) and Archer-Daniels Midland Company (ADM). Cramer sees a bottoming in oil stocks, and suggested that the banks, such as Lehman (LEH), Goldman Sachs (GS) and Bear Stearns Company (BSC), have a way to fall before they are finished.

Cramer touted Qualcomm (QCOM), which makes Code Division Multple Access for cellphones, as a stock to buy. This stock has been unfairly underpriced because of ITC Staff Finding. If the company loses this ITC ruling, it will still be selling products, and Carmer believes that the issue has been overhyped. Cramer recommends this stock, not only because it produces the "brains of cellphones," but also because it recently raised guidance.

Analyzing Stocks - Cramer gives some tips for smart investing, such as doing homework on a stock and, after a major sellout in a sector, paying attention to the stock that reported the best previous quarter and has enjoyed past success. He identifies oil as this kind of sector, with the added advantage that it provides materials to companies which function in harsh environments, and oil is needed by many government agencies, such as NASA and defense contractors.

Interview with the CEO - Cramer was skeptical when Earthlink (ELNK) was listed as a good stock to buy in Will Gabrielsky's "Stocks under $10" newsletter on TheStreet.com, because Cramer has long regarded Earthlink as a "bleeding asset". After speaking with Gerry Betty, CEO of Earthlink, Cramer concluded that Earthlink is "good as a spec" and that, "After you back out the cash, you have a call option on municipalities, Wi-Fi and this Helio." He gave it only one thumb up, because he felt that Earthlink has lackluster growth.