Cramer's Mad Money - Hey Jude (2/11/09)

Includes: FCX, GIS, K, KO, PEP, STJ, VFC
by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Wednesday February 11.

CEO Interview: Daniel Starks, St. Jude Medical (NYSE:STJ)

Cramer said he was “blown away” by St. Jude’s quarter; sales growth is above 15%, and the company has launched an average of 20 products a year for the last three years. While other companies are cutting their workforce, St. Jude Medical is creating 2000 jobs in 2009. The current growth areas for the company include implantable defibrillators, treatments for atrial fibrillation and drug-resistant depression. The company also has a promising drug for Parkinson’s Syndrome. “We have not seen any weakness,” Starks’ said, “I suspect one company’s weakness might be another company’s share gain.” While Cramer was enthusiastic about the stock, he suggested doing research before buying.

Freeport McMoRan (NYSE:FCX), Coca Cola (NYSE:KO), Pepsico (NYSE:PEP), General Mills (NYSE:GIS), Kellogg (NYSE:K), VF Corp (NYSE:VFC)

The market is in turmoil yet again, but Cramer outlined four ways to stay in the game.

  1. Diversify. Every portfolio should have a combination of stocks, bonds, gold and cash. This is the best hedge against volatility. Cramer recommends Freeport for gold exposure.
  2. Buy consumer staples like Coca-Cola, Pepsico, General Mills and Kellogg.
  3. Buy Dividends. A stock that doesn’t move but yields 5% will double your money in 14 years. Cramer thinks VF Corp is a retail play with a good dividend.
  4. Speculate to keep things interesting. Cramer likes biotech right now.

CEO Interview: CEO Eric Wiseman, VF Corp (VFC)

While Cramer is no great fan of retail given the current climate, VF Corp might just be a keeper. While other retailers are slashing prices to attract consumers and thereby sacrificing profits, VF Corp registered positive comp sales given its strong brands such as North Face, Vans, Nautica, Wrangler, JanSport, Lee and Eastpak. Customer loyalty is going to make the difference for VFC, and international sales account for a big part of the company’s revenue. While other companies are making cut-backs, VF Corp may be in a position to buy more brands and its 4.1% dividend is safe. Cramer is bullish on VFC.

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