Cramer's Mad Money- The Most Bankable CEO (10/5/09)

by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Monday October 5.

CEO Interview: Marc Benioff, (NYSE:CRM)

Cramer called Marc Benioff “perhaps the most bankable CEO I ever have on the show;" since its blowout quarter in August, the stock has risen 22%. The stock was also up on a deal with Cisco and has been a leader in "cloud computing" or the delivery of computer applications over the internet. Benioff said his vision is to share data with companies that need it most in a form that is most convenient for them. He added that the new platform is the next generation in computing and is largely responsible for the dramatic gains in Salesforce's stock price.

Banco Santander (STD)

Brazil is the hot place to be after winning its bid for the 2016 Summer Olympics. With the country's GDP growing at 6%, the Bovespa stock index up 63% for 2009 and a healthy financial sector, investors are looking for good ways to play the emerging economy. Cramer noted Banco Santander is releasing an IPO that will price as an American Depository Receipt on the NYSE on Tuesday; its symbol will be BSBR. However, Cramer would buy the parent company, Banco Santander instead, and thinks the IPO is useful as a way to valuate the Brazilian bank, which should see a boost of at least 30%. Whether the IPO succeeds or fails, Banco Santander will benefit.

Kinder Morgan Partners (NYSE:KMP), Boeing (NYSE:BA), AT&T (NYSE:T), Procter&Gamble (NYSE:PG), Diamond Offshore (NYSE:DO)

The market seems to have shaken off the shock of Friday's poor jobs number and the Dow jumped 112 points on Monday. Big Money is back and is investing in stocks, which is by far the best asset class available. Real estate, gold and Treasurys are not better than stocks and the latter have gotten too expensive. Corporate bonds are also prohibitively expensive; Diamond Offhsore's offer for 30 year notes at 5.7% was a bit rich, according to Cramer. Instead of Treasurys, a better choice are master limited partnerships like Kinder Morgan, which offers a 7.8% yield, or safe, high-yielding stocks like AT&T, Boeing and Procter and Gamble.

"The big institutional money managers have to buy something,” Cramer said, “and there is simply nothing else that makes sense for them to buy. Stocks are really the only game in town.”

Mad Mail: Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG), Electronic Arts (ERTS), RF Micro (RFMD), Skyworks (NASDAQ:SWKS), Starbucks (NASDAQ:SBUX)

Cramer would buy Google or Apple rather than Electronic Arts because the gaming industry is stalled. He told another viewer Skyworks and RF Micro are other good mobile internet plays. Concerning Starbuck's new product Via, Cramer thinks it will inflate the quarter and investors may see a higher number than they would expect from Starbucks.


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