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Last week was a good one for the equity investors. Thanks to the late Friday rally, most markets around the world closed the week in the green. In the week’s last Mad Money program, Cramer was also pretty optimistic, making four bullish and two bearish calls that are worth investigating further. I have examined these stock mentions from a fundamental perspective, and added my opinions about them. I have applied my O-Metrix Grading System where applicable, as well. Here is a fundamental analysis of the first six stocks from Cramer's December 9 Lightning Round:

Stock Name

Ticker

Cramer's Suggestion

O-Metrix Score

My Take

Mosaic

(NYSE:MOS)

Avoid

9.45

Buy

Deere

(NYSE:DE)

Buy

7.18

Buy

NuStar Energy

(NYSE:NS)

Buy

3.67

Buy

Twin Disc

(NASDAQ:TWIN)

Avoid

4.65

Avoid

Eaton

(NYSE:ETN)

Buy

6.97

Buy

Red Hat

(NYSE:RHT)

Buy

1.56

Avoid

Data obtained from Finviz/Morningstar, and is current as of December 9 close. You can download the O-Metrix calculator here.

Deere vs. Mosaic

Cramer prefers going with Deere instead of Mosaic. Here is a brief comparison of these two stocks, current as of Dec. 9:

Mosaic

Deere

P/E ratio

8.2

12.9

Forward P/E ratio

8.2

9.5

Estimated EPS growth for the next 5 years

15.1%

14.0%

Dividend yield

0.40%

2.09%

Profit margin

25.3%

8.5%

Gross margin

32.0%

30.6%

Upside movement potential

42.1%

15.6%

Mosaic is going down, as it is extremely dependable on the €/$ exchange rate, in spite of its healthy revenue and earnings. Deere seems to have had its share in the global recession as well, but it survived with minor damages. Moreover, the company has an awesome dividend history. Both seem to be nice bets, but Deere is a more stable play. I also think that Mosaic is poised for a rebound. O-Metrix scores of Mosaic and Deere are 9.45 and 7.18, respectively.

NuStar Energy

The Mad Money host likes NuStar, and says he “would be a buyer.” The company shows a trailing P/E ratio of 14.4, and a forward P/E ratio of 17.1. Analysts estimate a 3.5% annualized EPS growth for the next five years. Profit margin (4.2%) is next to the industry average of 4.3%, while it offers a nifty dividend of 8.09%.

Based on these numbers, NuStar has a relatively lower O-Metrix score of 3.67. With a Beta value of 0.43, NuStar is one of the least volatile stocks among its peers. Debt-to equity ratio (0.9) is also good, lower than the industry average of 1.3. Dividends are just fine. Since September 2010, revenue is increasing steadily. There have been massive insider purchases since mid-May 2011, and current price is OK to jump in.

Twin Disc vs. Eaton

Cramer made the following comments on Twin Disc: "I'd rather own Eaton, which is a better-run company with a good dividend." Here is a brief comparison of these two stocks (as of Dec. 9):

Twin Disc

Eaton

P/E ratio

17.4

12.0

Forward P/E ratio

12.3

9.9

Estimated EPS growth for the next 5 years

13.0%

12.2%

Dividend yield

0.83%

3.07%

Profit margin

7.8%

8.1%

Gross margin

35.9%

29.8%

Upside movement potential

27.6%

18.2%

Based on these numbers, the O-Metrix scores of Twin Disc and Eaton are 4.65 and 6.97, respectively. Eaton is obviously much more successful at pushing dividends up. Eaton’s revenues look much better, as well. Twin Disc is the most volatile stock among its peers with a horrible Beta value of 2.53. Eaton crushes Twin Disc in almost any fundamentals. Moreover, it has an admirable management team. Count on Eaton, and don’t waste your time on Twin Disc.

Red Hat

Cramer is bullish on Red Hat, as it is “likely to go higher.” The tech stock shows a sky-high trailing P/E ratio of 74.6, and a forward P/E ratio of 43.1. Analysts expect Red Hat to boost its earnings by 18.4% in the next five years. It has no dividend policy, while the profit margin (12.9%) is higher than the industry average of 12.1%.

Red Hat has terrible price-to book (7.0) and price-to sales (9.6) values, both of which are way above their industry averages. Revenue, assets and cash flow are unstable. PEG value is 2.4, and it has a one-star rating from Morningstar. Red Hat might have rebounded from August lows, but I can’t count on a stock with these pathetic numbers, especially its P/E ratio.

I find it meaningless to pick such a name in an industry where Microsoft (NASDAQ:MSFT) operates. I love Linux as an open-source operating system, but I do not see a reason to buy Red Hat Linux when there are free alternatives. Just take it off the table, as the stock is pricey. Based on these indicators, Red Hat has a poor O-Metrix score of 1.56.

Source: Cramer's 4 Buy And 2 Sell Ideas