Jim Cramer's Mad Money In-Depth Stock Picks, Sept. 11

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Monday September 11. Click on a stock ticker for more analysis:

What the Doctor Ordered: Abbott Laboratories (ABT), Johnson & Johnson (JNJ), Schering-Plough (SGP), Eli Lilly (LLY), Wyeth (WYE) and Bristol-Myers (BMY)

Cramer has been "banging people over the head with [his] Mad Money bat" telling them to buy drug stocks, and charted the progress of several companies to prove the current edge pharma has over cyclicals. Comparing ABT's six-month chart with Catepillar's (CAT) he observes, "Abbott, which isn't even a great stock, is crushing Caterpillar," and he also noticed that JNJ is trouncing Boeing (BA). Cramer believes that this situation will continue and notes that hedge and mutual funds have been selling cyclicals and picking up drug stocks. The way to tell a good pharma is to determine how "immune to generic competition their pipeline is" and whether the company has products "that are just ramping," if it has reliable patent protection, and what new products are in the works. Cramer likes SGP for its allergy medication, LLY, because it is coming out with a lot of new drugs and WYE which he says is "the best women's franchise." He is even suggesting BMY because CEO Peter Dolan "might be on his way out, which could cause stock to jump."

Related: Evelyn Rubin discusses the likelihood that Bristol-Myers' CEO Peter Dolan will get fired.

Avoiding Oil: Chevron (CVX)

Cramer says one of the most common mistakes investors are making right now is picking up oil because it is cheap and assuming that it has bottomed. He insists that oil should be sold; "When you see oil in free-fall, you shouldn't feel warm and fuzzy about owning a stock like Chevron at $62 per share." Although he believes that oil will not fall to $30 and may reach $100, the best plan is to sell oil and get into pharma.

Related: David Andrew Taylor sees the drop in oil as a possible sign of an impending recession.

Invest in Peace: Herman Miller (MLHR)

Cramer often suggests reading the newspaper for information about companies, and cites something he read in a New York Times' obituary as an example. He recently noticed the passing of Bill Stumpf who invented the Aeron which is possibly the world's "most expensive and comfortable chair" and is sold by MLHR. Cramer likes this stock because of the number of offices that are currently being built, the variety of new products MLHR is producing and that its raw materials are currently cheap.

CEO Interview: Bob LaPenta, L-1 Identity (ID)

Cramer asked if California's new identity fraud laws are going to help ID, and LaPenta commented that such legislation is a great catalyst for the company and that other states are going to follow suit. In addition, he discussed the $100 million acquisition of SpecTal, a human intelligence company. On the 5th anniversary of the worst terror attack to hit the United States, Bob LaPenta said,"The biggest weapons that the people had on 9/11 were not bombs, but driver's licenses and passports that allowed them to go anywhere they wanted," he said. "That's what we need to change."

Related: On last Wednesday's Mad Money Cramer discussed the impact of California's new legislation on L-1 Identity.

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