Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Thursday August 17. Click on a stock ticker for more analysis:
Cramer made a list of CEOs who would raise the value of their companies' stock by resigning.
1. Dell's (DELL) Kevin Rollins: "He managed to turn a great company into an embarrassment."
2. 3M's (MMM) George Buckley: Cramer says he is in over his head.
3. Marsh & McLennan's (MMC) Michael Cherkasky: "Cherkasky doesn't even seem to know what his job is," Cramer said, and predicted that the stock would jump from $25.71 to $32 if he resigned.
4. Avon's (AVP) Andrea Jung: According to Cramer, Jung has "run the company straight into the ground,"
has failed to deliver on promises to sell to the Chinese and has seen lackluster sales in Latin America. Cramer believes that her departure could lift the stock from $28 to $35.
5. Bausch & Lomb's (BOL) Ronald Zarrella: When BOL had problems with a lens solution, Cramer comments that Zarrella refused to communicate and just hid until the product was recalled. "If Zarrella says he's going fishing, the stock could go from $46 to $55 -- he's that awful."
6. Home Depot's (HD) Robert Nardelli : Although Cramer has said in the past that a Nardelli has been criticized too harshly, he now declares that Nardelli is "poison" for HD and "is so hated that it's worth $5 [upside in the stock] the moment he leaves."
7. Bristol-Myers' (BMY) Peter Dolan:Cramer says that Dolan is the "single worst" CEO on his list, and that he is to blame for BMY's losing its patent protection on its best-selling drug, Plavix. He believes that the stock would go up $5 if Dolan announced that the "wants to spend more time with his kids."
Boring but Sweet: Hershey (NYSE:HSY):
Although the market performed well this week, Cramer says that we have three more months of "boring is king," and recommended defensive stocks, such as HSY, which has a good risk-reward ratio. He disagrees with Wachovia's downgrade of the stock, which he says is a 2 down and 15 up situation.
Cramer likes the insurance sector, and analyzed three "fallen giants" to see which one has sustained the least injury from New York Attorney General, Elliot Spitzer's, probes. Aon, which is "gobbling up domestic business and buying back stock," seems to have ben harmed the least, although it missed its quarter and is not doing well internationally. Cramer described Marsh & McLennan's last conference call as "the worst call of the quarter," since the company did not make its numbers and the CEO didn't seem to know what was going on. AIG reported a "tremendous" quarter, according to Cramer; AIG is so back, it's amazing."
CEO Interview: Joseph Moglia of TD Ameritrade (NASDAQ:AMTD):
Although Moglia discussed relatively low July numbers due to a seasonal drop-off, he added, "We expect to have a record fourth year in a row, and we've increased guidance for 2007," Moglia said. "We believe in our own story, and it makes sense for us to buy back our own stock." Cramer commented that "Trading is going to come back big."
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