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Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Thursday January 21.

Time Is of the Nonsense: General Mills (NYSE:GIS), Procter & Gamble (NYSE:PG), Bristol Myers Squibb (NYSE:BMY), Pepsico (NYSE:PEP), Coca Cola (NYSE:KO), Colgate Palmolive (NYSE:CL), Johnson & Johnson (NYSE:JNJ), First Niagara Financial Group (NASDAQ:FNFG), FirstMerit (NASDAQ:FMER), New Alliance Bancshares (NYSE:NAL)

Obama's timing couldn't be worse; “We would have been up huge on earnings today,” Cramer said, “if it weren’t for the president’s decision to downsize the banking system right on TV at the worst possible time for the economy.”

The President wants to take punitive measures against banks and end proprietary trading, internal hedge funds and break up Wells Fargo (NYSE:WFC) and Bank of America (NYSE:BAC), although none of these issues is connected with the credit crisis and the problems, such as bad loans, that caused the economic slowdown. Representative Barney Frank (D-Mass) thinks Obama's plan for bank reform should be more gradual (3-5 years) to avoid interfering with the recovery, but Cramer is hoping the bill will die in Congress.

Regardless of what happens to the bill, Cramer thinks this proposal proves that Washington is in a profoundly anti-business mood. Investors would do well to play it safe by investing in defensive stocks: General Mills (GIS), Procter & Gamble (PG), Bristol Myers Squibb (BMY), Pepsico (PEP), Coca Cola (KO), Colgate Palmolive (CL), Johnson & Johnson (JNJ). For investors who feel they have to own financials, Cramer would look for banks without hedge funds or private equity businesses. In addition he would continue investing on long-term themes such as energy, mobile internet, emerging markets and homeland security. “We hope the stock market’s message isn’t lost on this White House,” Cramer said. “But let’s not take any chances.”

Bread and Circuses: CEO of Panera (NASDAQ:PNRA), Ron Shaich

With the Dow in the doldrums, at least investors seem interested in bread. Panera (PNRA) reported a strong quarter and rose $5 on the company's 7.4% increase of same store sales and accelerated revenue growth. Panera plans to open 80 to 90 new stores in the coming year and is increasing its advertising.

CEO Ron Shaich says Panera's focus on customer service is the secret to the company's success. With real estate and construction costs down, now is the time to expand, he said. Panera is also diversifying its menu with healthier choices. The restaurant is evolving from a lunch stop to a place to grab a bagel in the morning and to hang out after work. Cramer is bullish on Panera.

CEO Interview: Moshe Gavrielov, Xilinx (NASDAQ:XLNX)

With stocks down, Xilinx rose on Thursday after beating The Street's estimates by 5 cents and reporting a 12% year over year increase in sales. Xilinx, which offers a 2.5% dividend, is the leading producer of programmable logic-device chips and is flush with cash. However, concerns over reduced lending in China and rising unemployment in the U.S. may affect the company.

CEO Moshe Gavrielov says Xilinx provides a solution to increasing demand for bandwidth. The company has 10,000 clients who use Xilinx's technology for diverse applications. He told Cramer that he isn't worried about China, since the expanding economy in the Middle Kingdom will need Xilinx's products to facilitate growth.

CEO Interview: Richard Kinder, Kinder Morgan Energy Partners (NYSE:KMP)

When the market gets hit, Cramer recommends buying stocks that have “notoriously big juicy” dividends. As a master-limited partnership which doesn't pay corporate taxes but passes its profits onto the consumer, Kinder Morgan (KMP) is an example of a safety stock with a strong yield. Although Kinder Morgan used to pay a dividend at a higher level than the current 6.9%, the yield is safe, especially since its stock price has gained 22% since July.

Richard Kinder says the secret of the company's success is its "toll road" business model which enables Kinder Morgan to get paid regardless of the price of the commodity. The company produces ethanol, natural gas, airline fuel, and much more.

Concerning the yield, Kinder said an essential metric is the distributed cash-flow per unit, or how much the company returns to shareholders through the dividend. Last quarter cash flow per unit shipped was $4.25 almost all of which was distributed as dividends.

Richard Kinder said he believes in clean coal and ethanol, but favors natural gas as the solution to the country's energy problems. The company has an analyst meeting on January 28th, and could see significant upside on good news. "That man is money," Cramer said of Richard Kinder.


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Source: Cramer's Mad Money - Time Is of the Nonsense (1/21/10)