Cramer's Mad Money In-Depth Stock Picks, Sept.21

by: Miriam Metzinger

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Thursday September 21. Click on a stock ticker for more analysis:

Texas Roadhouse (NASDAQ:TXRH), Jack in the Box (JBX), Darden Restaurants (NYSE:DRI), and Wendy's (NYSE:WEN)

On Wednesday, Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) upgraded DRI and WEN, both of which are close to their 52-week highs which indicates that the consumer is not only alive but is "eating his head off" according to Cramer. TXRH and JBX could be the next DRI and WEN, says Cramer who believes that there is even more potential for lower-end restaurants now that gas prices have gone down. TXRH is a theme restaurant with inexpensive items, has large growth potential and as Cramer points out, the company's estimates are low. "Texas Roadhouse shouldn't go down any more," Cramer said. "It is a long-term story." Although JBX is located only in the West Coast, if the company were to expand past the region, the stock would "skyrocket" says Cramer who likes this restaurant and notes that JBX blew away its numbers.

Related: George Gutowski is concerned about Darden's rising labor costs.

Pulling Up Steaks: OSI Restaurant (OSI), Morton's Restaurant (NYSE:MRT-OLD), Ruth's Chris Steak House (NASDAQ:RUTH)

Since those with means will always be able to eat out without having to worry about gas prices, Cramer suggests picking up some higher-end restaurants and discusses three popular steakhouses. OSI or Outback failed Cramer's "taste test" because it is approaching saturation point, its numbers are not good and its same-store sales have been going down. Morton's beat its estimates by a penny and is growing in popularity but Cramer's favorite choice is RUTH which raised its guidance, put through a 3% price hike and has decided to keep the company headquarters in Orlando, Florida rather than moving back to New Orleans.

Related: Fat Pitch Financials discusses RUTH's success a year after Hurricane Katrina.

Sell Block: General Mills (NYSE:GIS), Herman Miller (NASDAQ:MLHR), Gymboree (NASDAQ:GYMB), Darden, (DRI), JC Penney (NYSE:JCP), and Oracle (NASDAQ:ORCL)

On the "Sell Block" segment, Cramer said that it's time to cash in on some stocks he has been recommending on his show. "I know you hate selling a stock that has been making you some mad moolah," he said, "but it's important to take profits." Cramer would take some GIS, GYMB, DRI and JCP off the table as well as MLHR which has risen 17% in two weeks. Although the prime time to sell some ORCL was Wednesday or Thursday Cramer says that it is alright to take gains on Friday.

Related: Jason Wood discussed ORCL's best Q1 in five years.

CEO Interview: Masco's (NYSE:MAS) Richard Manoogian

Richard Manoogian commented that he does not remember a more sudden change in the outlook for housing in a good economy but he is still optimistic. Concerning excess inventory, he says, "We have a gap between selling prices and what people want to pay because of all the inflation we have seen in two, three years. But that gap will slow pretty quickly." Manoogian is feels confident that the housing slowdown will lower interest rates and inflation, thus preparing the way for a dramatic upturn in the sector in 12 months.

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