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

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Wednesday October 11.

Clothes Horses: Hanesbrands (HBI), Sara Lee's (SLE), Coach (COH), Under Armour (UARM) and Jos. A Bank Clothiers (JOSB)

Cramer says that SLE's spinning off HBI is good news since "a food company and a clothing company do not belong under the same roof" and notes that COH rose 900% since it has been "free from the shackles of Sara Lee." Although HBI has significant debt, Cramer would be a buyer of HBI under $23, commenting that spinoffs are usually profitable. Concerning UARM Cramer applauds its move of making all of its advertising sports-oriented to appeal to the working man, and would buy the stock. Cramer doesn't like the fact that JOSB has an inventory problem and the management behaves as if nothing is wrong; "this is a classic stay-away story," he said.

Related: Special Situations Investing analyzes Hanes as a spinoff play.

Making Dough: Panera Bread (PNRA), Starbucks (SBUX), PepsiCo(PEP), Pepsi Bottling Group (PBG) and Yum! Brands (YUM)

Cramer doesn't think Panera's price, which has been at $64 but has fallen as low as $46, accurately reflects its value. When the PNRA did the "cardinal sin of widening their range of earnings estimates," the stock declined, and it also was savaged when it was honest about lackluster same-store sales. Cramer thinks that Panera's unfair downgrading is similar to SBUX's story and that PNRA is headed to $74. Cramer suggests picking up half of Panera now and the rest after it reports it numbers. A caller asked Cramer which stock was the best among PEP, PBG and YUM and he gave YUM two thumbs up.

Related: Herb Greenberg takes a look at Panera's high numbers.

CEO Interview: Bob Toll of Toll Brothers with stocks (TOL), Lennar (LEN) and KB Home (KBH)

Cramer asked Bob Toll if housing has bottomed and he replied,"there's no way for me to tell. There isn't an inflection point. We've been bumping along without getting worse." Concerning inventories, he said that he was puzzled by the practice of ratcheting back and that a company shouldn't continue putting out products that don't sell. When Cramer inquired whether options were causing problems for the company, Toll replied that options are ,"a useful tool and also necessary in our business ... not using options is foolish." Cramer concluded that housing has bottomed and to pick up Lennar followed by TOL and KB Home.

Related: Dan Carty does not predict an incipient reversal in housing.

More: Cramer's latest stock picks, including: Mad Money Recap, Lightening Round, Stop Trading and his Radio Show.

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