Jim Cramer's Mad Money In-Depth Stock Picks, Dec. 20

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 |  Includes: DIVX, ELOS, GPS, PMTI, TRMP
by: Miriam Metzinger

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Wednesday December 20. Click on a stock ticker for more analysis:

Bright Smile: Syneron Medical (NASDAQ:ELOS) with Palomar (NASDAQ:PMTI)

After telling people to swap out of ELOS into what he had thought was best-of-breed laser company Palomar, Cramer says Syneron is going to make a comeback after having been written off by The Street following two lackluster quarters. The stock was in the mid-40s, but is now sitting at $25.70, has an average of 30% revenue growth and is up46% in operating margins. Cramer likes ELOS because it has a major catalyst, dental laser, which will mean significant growth for the company. In addition, ELOS could be a takeover target. Cramer says the worst is over for this cheap stock and it is "ready to run."

Related: Average Joe Investor discusses Syneron as an option for those who missed buying Allergan.

DivX (DIVX) Delay

Although he called DivX "the hottest of the hot" and the stock is up 52% since he recommended it in September, Cramer would wait on DivX. This compay has a deal with Google and is expanding into Eastern Europe and India, but has limited upgrade potential, since analysts give it four buys and one hold. Although there won't be a major selloff until its lockup expiration on March 22, Cramer believes that not many people will want to get into DivX until after that date. In addition, a second offering could crater the stock. "I don't want you in DivX for the next few months," Cramer said, addomg that he likes the stock cheaper.

Related: Davis Freeberg's interview with DivX CEO Jordan Greenhall

Mad Mail: Trump Entertainment (TRMP) and Gap (NYSE:GPS)

Cramer regretted making the prediction that TRMP would get a license to build a casino in Philadelphia, and said investors could hold onto the stock, but it probably won't be moving until summertime. Concerning GPS, Cramer doesn't want to be for or against it and said that it has no leveraged buyout on the horizon.

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