Jim Cramer' Mad Money In-Depth Stock Picks, Feb. 21

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 |  Includes: BNI, BP, CAH, CCL, CMCSA, CSX, CVX, DGX, GCI, LH, LMT, MCK, MNI, NOC, NSC, ODP, OMX, RCL, SIRI, TWX, UNP
by: Miriam Metzinger

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Wednesday February21. Click on a stock ticker for more analysis:

Mad Mergers: Sirius Satellite Radio (NASDAQ:SIRI) and XM Radio (XMSR)

Cramer smells "desperation" in the intended merger between SIRI and XMSR, and predicts that there will be a spate of anticompetitive mergers ahead of the possibility of a Democrat winning the White House, an event which would discourage future monolopistic mergers. Cramer dedicated the program to discussing ten likely scenarios.

10. Kroger (NYSE:KR) and Safeway (NYSE:SWY)
9. Laboratory Corp. (NYSE:LH) and Quest Diagnostics (NYSE:DGX): Cramer notes that these two companies have been "locked in a ferocious price war to win the HMO business." Their slashed prices have meant less profits, and "it is time for them to get on the anticompetitive bus."
8. Carnival (NYSE:CCL) and Royal Carribbean (NYSE:RCL)
7. Office Depot (NYSE:ODP) and Office Max (NYSE:OMX)
6. Cardinal Health (NYSE:CAH) and McKesson (NYSE:MCK): Cramer notes that drug distributors have "been at war for wages" hurting themselves by lowering prices. He sees some major mergers in the sector for the next couple of years.
5. BP (NYSE:BP) and Chevron (NYSE:CVX): BP would do well to merge with CVX, according to Cramer, because of CVX's excellent management.
4. Lockheed Martin (NYSE:LMT) and Northrop Grunman (NYSE:NOC): Cramer notes that this merger is likely because the Pentagon doesn't want a lot of vendors.
3. Comcast (NASDAQ:CMCSA) and Time Warner (NYSE:TWX)
2. Gannett (NYSE:GCI) and McClatchy (NYSE:MNI): Cramer believes that this merger is essential because it could "save the newspaper business."
1. Union Pacific (NYSE:UNP) and Burlington Northern (BNI): Cramer says that this is his favorite possible merger.

Cramer also sees Norfolk Southern (NYSE:NSC) and CSX (NYSE:CSX) pairing up, and describes all of these possibilities as "a wave of mergers that will be great for profits."

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