Jim Cramer's Mad Money In-Depth Stock Picks, April 10
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Seeking Alpha publishes a summary of Jim Cramer's stock picks every day including: Mad Money Recap, Lightning Round, Stop Trading and his Wall Street Confidential Picks.Triple Deal for Triple Play? Charter Communications (CHTR), Comcast (CMCSA)
While Cramer recently doubted his sanity for having recommended CHTR, which hasn't budged since February, he heard some news that makes him bullish on CHTR once again. CMCSA announced plans to take over Insight Communications' assets in Indiana and Illinois for $4583 per subscriber, 12% higher than CHTR's rate of $4017. In addition, CMCSA made a deal with New Jersey based Patriot Media for $5,963 per subcriber. Cramer sees CHTR as a very attractive takeover target for Comcast, which is willing to pay a substantial fee for subscribers. Although CHTR has some debt, it is currently in a virtuous cycle of refinancing and is cheap. In addition, CHTR is based in fast-growing areas like Nevada and California and is a great triple play stock, comments Cramer.
Related: Charter reported a Q4 revenue increase but a wider loss.
All Cedant's Children: Wyndham Worldwide (WYN)
Cramer notes that, after Cedant's breakup, its children are growing up "real fast", a total of 32% since the breakup. However, the ugly duckling seems to be WYN, which owns Ramada Hotels and timeshares and "is a great play on cheapskate baby boomers" who want fancy ski vacations but don't like to pay fancy prices. At $34.50, WYN is only $2 above where it was when Cedant spun it off, and Cramer sees more upside. He is not worried about its $2.9 billion debt, since it works like a bank, lending money at high interest rates. WYN is a takeover target, according to Cramer and is "way too cheap."
Related: Daniel Andreas Jacome follows the smart money to Wyndham.
Makeover for Harsco (HSC)
Cramer likes the way Harsco is reinventing itself and regrets referring to HSC as a manufacturing company. Instead, Cramer describes HSC as a "miniconglomerate of industrial services and products" and notes it is "taking the lead in industrial outsourcing." It is aggressively taking market share in mills and access services, businesses that "didn't exist ten years ago." Now the company is "beating the Chinese and everyone else as well." Cramer is bullish on HSC because it is "brilliantly creating a niche for itself."
Michael Farrell, Chairman and CEO of Annaly Capital Management (NLY)Michael Farrell explained why his company wasn't devastated by the subprime lending fiasco, and credits the company's thirty year experience in spotting trends; "I don't pretend to have a crystal ball ... but the bottom line is that it was unsustainable." Farrell said it is too early to pick up the pieces and the crisis, which has yet to reach the third inning, needs time to play itself out. "The flight to quality that's going to happen with triple-A assets is still there," Farrell continued, and stated the relative safety or danger will depend on the asset class. Cramer remarked that he regrets ever doubting the stock, and called NLY and Michael Farrell winners.
Related: Bill Allen takes a look at NLY's recently issued 10-K.
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