Cramer's Lightning Round - Avon Is Just Too Valuable (10/18/10)

Includes: AVP, CHK, ENDP, GS, PEG
by: Miriam Metzinger

Stocks discussed on the lightning round session of Jim Cramer's Mad Money TV Program, Monday October 18.

Bullish Calls:

Avon Products (NYSE:AVP): "You know what? Terrible management... But I will say this... it would shock me if that company continued to maintain its independence. Avon's too valuable. I think they either get rid of management or it gets a takeover bid. There's too much longer term value there so I will say buy, buy, buy AVP."

Chesapeake Energy (NYSE:CHK): "No... no... come on we're being too short sighted here.... why do I feel that way?...Because in the end...when we look at Chesapeake, we are not buying it for right now. We are buying it because over multiple years they're going to be able to bring out the valuing... I'm getting a quote on the closing price of natural gas... $3.40... now how can you buy this stock when it's at $3.40? Because when natural gas goes to $5, you're going to be paying $50 for it. Hold on to it..."

Endo Pharmaceuticals (NASDAQ:ENDP): "Yeah, you know we like Penn West so we thought it was terrific when they bought them. This is one that has really, really made a tremendous stride over multiple years. I think you're right to own it, I want to stick with it."

Goldman Sachs (NYSE:GS): "You know I wish I could get it under $150. Here's the problem with Goldman. I feel like that in the end... I worked there.... I think that it is too cheap but maybe I feel that way because I can't believe my alma mater could be so trashed... but it is not that much a premium in the book... it is going to make a lot of money... and I think the analysts are too negative about the stock. Let's put it that way."

There were no bearish calls on Monday.


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