Jim Cramer's Mad Money In-Depth Stock Picks, March 28

by: Miriam Metzinger

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Wednesday March 28. Click on a stock ticker for more analysis:

Breaking Up is Good to Do: Heinz (HNZ), Cadbury Schweppes (CSG), American Standard (ASD), Clorox (NYSE:CLX), ConAgra Foods (NYSE:CAG)

Cramer remarks "catalyst shareholder" Nelson Peltz has given valuable advice to HNZ and CSG and on March 15, CSG announced it is breaking up. He comments such a move has been good for ASD, and discusses two companies which could make "a cool 25% on your investment" with a split. He notes private equity firms are looking even at "tired old brands," and thinks Clorox's brand combination "makes no sense whatsoever." In addition, Cramer comments that keeping Conagra's problematic mixture of brands is like making a sandwich out of too many ingredients, and since both companies are in "the sweet spot of value creation" they could successfully spin-off their brands or sell them to private equity firms. Even if CLX and CAG don't split up, they have little downside, are cheap and good stocks to own in an ecomonic downturn, said Cramer.

Related: More from Lon Juricic about CSG's activist shareholder, Nelson Peltz.

Benefit of the Doubt: Jim Sinegal, the CEO of Costco (NASDAQ:COST) and Lawrence Montgomery, CEO of Kohl's (NYSE:KSS)

Continuing his series on CEOs who deserve the benefit of the doubt, Cramer thinks investors should have faith in Costco's Jim Sinegal, in spite of the stock's decline following the implementation of a stricter return policy. He says although COST may not be finished going down, he would trust Sinegal. Cramer added it is "ludicrous" that Wall Street does not trust Lawrence Montgomery of KSS, since the stores offer quality merchandise at fair prices. While he does not strongly recommend the stock at $75.75, Cramer says to buy KSS once it dips.

Related: Jonathan Komp expects continued weakness from KSS.

Mad Mail: Sirius Satellite Radio (NASDAQ:SIRI), XM Satellite Radio (XMSR), Take-Two Interactive (NASDAQ:TTWO)

Cramer predicts SIRI will rise to $5 if it merges with XMSR, but if not, it would drop from $3.26 to $1 or $2 and XMSR would be "wiped out." TTWO's numbers are nonexistent, said Cramer who liked the stock but would not buy it, because without a deal, it will go lower.

Related: George Gutowski discusses SIRI and XMSR's "congressional tap dance."

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