Jim Cramer's Mad Money In-Depth Stock Picks, Sept. 8

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Friday September 8. Click on a stock ticker for more analysis:

Baby Boom: Kimberly-Clark (KMB)

Cramer appeared on his show sporting a diaper to emphasize how much he believed in KMB, not just for its consumer products which are necessary no matter how the economy is behaving but also because it is a play on oil since petroleum is used in the production of diapers. As the price of oil decreases, comments Cramer, KMB should improve especially since $300 million to $350 million of cost inflation built into its 2006 numbers is mostly due to oil. As raw costs go down, says Cramer, KMB will go up.

Related: Catablast Media's discussion of the effect of the new baby boom and increased diaper demand on Kimberly-Clark.

Go to the Tape: Deere's (DE)

In a new segment of Mad Money called "Go the Tape," Cramer used Deere as an example of a stock which declined and came back. In spite of a good quarter, DE dropped $3 because it reported slowing construction. However, those who listened to the conference call would have noticed that inventory was low and that Deere is an agriculture play and is not connected with housing as many people believe. Because expectations were low and the stock was shorted DE bounced back. Cramer said that the Deere story teaches investors to look for three things: "Aggressive shorting during options expiration week, companies that tamp down expectations and have upside surprises, and misinformation about business cycles."

Goldman Sachs (GS), Lehman Brothers (LEH), and Bear Stearns (BSC)

These three companies report earnings next week and "could provide a really super trading backdrop," Cramer said. Expectations are low for this sector and that is a reason pay attention, according to Cramer, because these companies should get a boost in September after people return from vacation and start trading. Of the three, Cramer prefers GS because it is "cheap and ready to roll" and advises purchasing September $1.50 call options on GS; "They should be cheap because they expire at the end of the week," Cramer said. "Don't buy all at once. Buy a quarter on Monday, a quarter on Tuesday, and if the stock goes down, you double down."

Related: Eli Hoffman comments on the recent pullback in brokerage stocks.

CEO Interview: Devon Energy (DVN) Chairman and CEO Larry Nichols

In addition to recent discovery in the Gulf of Mexico Larry Nichols says that Devon has three other potential finds "in the pipeline" and is second only to Chevron (CVX). When Cramer asked how he makes sense of Wall Street, Larry Nichols replied, "there is a time when people are going to talk about oil going down, and there will be brief lulls when it does," and added that since oil sources are often policital hotspots, "there is only a matter of time before another problem comes up and the price shoots back up."

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