Jim Cramer's Mad Money In-Depth Stock Picks, May 8

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Tuesday May 8. Click on a stock ticker for more analysis:

Brother, Can You Spare a Nickel? North American Palladium Ltd. (PAL)

Although PAL is known for its palladium, Cramer thinks this $10 stock is a great way to play nickel consolidation. PAL is not yet a well-loved stock, is not covered by any analysts, and if it gets a takeover bid for its nickel, Cramer comments he "can't even imagine how high this orphan stock would jump." He notes nickel prices are rising while PAL's production costs are falling and the company produced 2.7 million pounds of nickel last year. He believes it will get a bid, but warns that it is a speculative stock and investors should use limit orders when buying.

"Statement Buying": L-3 Communications Holdings Inc. (LLL)

Cramer calls insider buying which occurs when a company is at or near its 52-week high "statement buying" since it is a good indication of an upward move. Insiders cannot buy and sell rapidly like regular investors, but according to SEC rules, they must hold for a specified amount of time. Cramer discussed insider buying at LLL, the "archetypal high-tech defense contractor" which specializes in communications and sensor equipment. Insider buying may be due to the conviction the company will be taken over after the passing of founder Frank Lanza, or because those in the company feel the bears are wrong in believing the Democrats will undermine the war effort. Cramer believes sooner or later the analysts will "break" and upgrade LLL. Right now, however, he thinks the company is sandbagging in an effort to underpromise and overdeliver.

Related: L-3 beat its earnings and purchased a satellite company.

Enterprise Products Partners LP (EPD)

The second stock close to its 52-week high with aggressive insider buying is EPD, which manages pipes for transporting natural gas. Chairman Dan Duncan, the 34th richest person in America from a list of 400, bought up a large amount of stock while it was at its high, which is an indication the company is undervalued, says Cramer. He concludes EPD is a conserative stock with a great dividend and gives it a triple buy.

Mad Mail: Microsoft (MSFT), Yahoo (YHOO), Sun Microsystems (SUNW), Aeropostale (ARO), Abercrombie & Fitch(ANF), JC Penney (JCP) Federated (FD)

When a viewer asked if MSFT will buy YHOO or SUNW, Cramer said he doesn't see MSFT taking over SUNW and YHOO is very expensive and hasn't performed well. He imagines some upside if CEO Terry Semel or Sue Decker will leave, since the problem with the stock is a "hall of shame management issue." Another viewer asked about ARO and Cramer commented its is hard to predict where stocks like ARO and ANF will go from one month to the next. He suggests looking at JCP or FD, but only after a Thursday's report, since he doesn't think same-store sales will be good.

Related: The Wall Street Journal dismissed rumors of a MSFT/YHOO merger because the discussions are no longer current.

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