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Here are the last five stock mentions from Jim Cramer’s Lightning Round on October 6, along with my opinions about them. The O-Metrix Grading System is applied where possible, as well.

Stock Name

Ticker

Cramer's Suggestion

O-Metrix Score

My Take

General Motors Co.

(GM)

Buy

12.50

Top Pick

ITC Holdings

(ITC)

No Calls

4.02

Buy

Navois Maritime

(NMM)

Avoid

10.55

Buy

Diamond Foods

(DMND)

Buy

2.85

Hold

WebMD Health Corp.

(WBMD)

Avoid

4.40

Hold

(Data obtained from Finviz/Morningstar, and is current as of October 6 close. You can download the O-Metrix calculator here.)

Cramer believes that General Motors can go higher, and he is bullish on it. The company shows a trailing P/E ratio of 3.8, and a forward P/E ratio of 5.0, as of the October 6 close. Five-year annual EPS growth forecast is 11.0%. Profit margin (5.4%) is above the industry average of 3.6%, and it has no dividend policy.

Target price is $38.83, which implies a 73.7% upside potential. The stock is trading 43.39% lower than its 52-week high, while it has an O-Metrix score of 12.50. The debt-to-assets ratio has landed, and earnings increased by 80.74% this quarter. Institutional transactions have increased by 25.00% within the last three months. Debt-to-equity ratio is 0.3, way below the industry average of 2.3. ROE and ROI are 29.24% and 21.25%, respectively. It has a five-star rating from Morningstar, and a PEG value of 0.5. If you believe in economic recovery, GM stock is a screaming buy.

Cramer will make his call on ITC Holding at a later date, as he wants to do some research. The Michigan-based utility has a P/E ratio of 23.3, and a forward P/E ratio of 17.5, as of October 6. Analysts expect the company to have an annualized EPS growth of 14.5% in the next five years. It offers a 1.91% dividend, while the profit margin (21.9%) is way higher than the industry average of 9.2%.

O-Metrix score of ITC Holding is 4.02, and the stock is trading 6.64% lower than its 52-week high. Target price is $79.25, indicating a 7.6% increase potential. ITC Holding returned 19.0% in the last twelve months, whereas earnings increased by 16.54% this quarter. Institutions hold 92.17% of the shares. Operating margin is 52.4%, and ROE is 14.26%. Beta value is 0.78. Average analyst recommendation is 1.5 (1=Buy, 3=Sell). I wouldn’t ignore such a stock.

Cramer commented the following about Navios Maritime: "I don't want to touch these shipping companies. They're way too dicey."

The stock was trading at a P/E ratio of 8.7, and a forward P/E ratio of 10.0, as of the October 6 close. Estimated annual EPS growth for the next five years is 7.0%. With a profit margin of 38.4%, and a dividend of 12.74%, Navios Maritime is a tremendous stock for dividend lovers.

Target price is $19.13, implying a 38.4% upside movement potential. The stock is currently trading 32.68% lower than its 52-week high, whereas it returned 74.3% in a year. Yields are impressive. O-Metrix score of Navios is 10.55, and debt-to assets ratio is having a free fall since 2007. Cash flow seems all right. Debt-to-equity ratio is 0.5, far below the industry average of 3.0. Gross margin and operating margin are 92.6% and 42.2%, respectively. Sales rose by 37.35% this quarter. 3 out of 5 analysts recommend buying, and I agree with them.

Cramer recommends sticking with Diamond Foods, as it will “do great after its Pringles merger.” The company has a P/E ratio of 33.3, and a forward P/E ratio of 20.0, as of October 6. Analysts estimate a 15.0% annualized EPS growth for the next five years, which is conservative when its 36.46% EPS growth of past five years is considered. Profit margin (5.2%) is lower than the industry average of 6.7%, while it pays a razor-thin dividend of 0.24%.

O-Metrix score is 2.85, and the stock is trading 23.01% lower than its 52-week high. Target price is $88.27, which implies an about 19.2% increase potential. Diamond Foods returned 82.4% in the last twelve months. The company is yielding the same dividend since October 2007. Since that time, the debt-to-assets ratio has come from 10% to 45%. Cash flow is struggling, and insiders own 2.26% of the shares. Operating margin is 9.6%. ROA, ROE, and ROI are 3.99%, 12.03% and 5.22%, respectively. PEG value is 1.3. Holding is OK, but buying would not be the right move, in my opinion.

Of WebMD, Cramer said, "They missed the quarter...I think you can do better than that."

New York-based WebMd shows a trailing P/E ratio of 23.3, and a forward P/E ratio of 19.8, as of the October 6 close. Five-year annualized EPS growth forecast is 19.0%. It pays no dividend, while the profit margin (15.8%) crushes the industry average of 6.1%.

O-Metrix score is 4.40, whereas its target price indicates a 40.3% upside potential. The stock is trading 48.88% lower than its 52-week high, and it returned -39.3% in the last twelve months. Debts are buried into the ground within just one year, whereas cash flow is doing OK. Debt-to-equity ratio is 1.1, better than the industry average of 2.0. Earnings increased by 78.82% this quarter, while institutions hold 91.14% of the shares. Gross margin is 65.5%. Although the stock is currently having rough times, I believe it will do fine in the long run. Holding is the best for now.

Source: Cramer's Lightning Round Buys And Sells, Part II