Jim Cramer's Mad Money In-Depth Stock Picks 5/23

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 |  Includes: AMGN, BAC, C, CBS, CVX, HD, JNJ, MCD, NOK, NWS, PEP, SAFM, SHLD, TWX, TXN
by: Miriam Metzinger

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Tuesday May 23. Click on a stock ticker for more analysis:

Buyback Buzz

Cramer says that winners during an economic slowdown are those companies that buy back a good portion of their shares. He listed 15 companies with the most effective buyback strategies. The top five:

  1. Sears Holdings (NASDAQ:SHLD) - a good all-around stock to have in a portfolio.
  2. Chevron (NYSE:CVX) - this company is the cheapest of the integrated oils, and Cramer praises the company's 3.6% dividends for shareholders.
  3. Bank of America (NYSE:BAC) and Citigroup (NYSE:C) - because of their high fees, these banks have a lot of extra cash to reward shareholders with high dividends and to buy back shares.
  4. CBS (NYSE:CBS) and News Corp. (NASDAQ:NWS) - Cramer notes that CBS has some extra cash, because it has just sold some theme parks.
  5. Nokia (NYSE:NOK) - This company just bought back 1.4 billion euros of stock, and is expanding in China.

Cramer's other buyback picks include: Time Warner (NYSE:TWX), Pepsi (NYSE:PEP), Home Depot (NYSE:HD), Amgen (NASDAQ:AMGN), Texas Instruments (NASDAQ:TXN), Johnson & Johnson (NYSE:JNJ) and McDonald's (NYSE:MCD)

Bird Flu : Don't Believe the Hype

Cramer is not worried about bird flu, and suggests buying Sanderson Farms (NASDAQ:SAFM), which has recently surpassed the competition, kept production steady, and seems poised to raise prices. Since the company raises all of its chickens indoors, the chickens do not have a high risk of infection. Sanderson Farms trades at 6x next year's earnings, whereas the traditional multiple trades at 8x or 9x earnings.

Seeking Alpha publishes a summary of Jim Cramer's stock picks every day including: Mad Money Recap, Lightening Round, Stop Trading and his Radio Show.