Jim Cramer's Mad Money In-Depth Stock Picks, May 10

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 |  Includes: AMFW, ASD, ATI, BRLC, CAT, CSCO, CTL, CVS, DE, DYN, FLR, HON, JCI, MDR, NVO, SWK, TEX, WHR
by: Miriam Metzinger

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Thursday May 10. Click on a stock ticker for more analysis:

Cramer's Dirty Dozen: Whirlpool Corp. (NYSE:WHR), Black and Decker (BDK), Allegheny Tech (NYSE:ATI), General Cable (NYSE:BGC), Honeywell (NYSE:HON), American Standard (ASD), Johnson Controls (NYSE:JCI), McDermott (NYSE:MDR), Foster Wheeler (FWLT), Caterpillar (NYSE:CAT), Terex (NYSE:TEX), John Deere (NYSE:DE)

Cramer says the current market reminds him of Disney's "It's a Small World" ride, because hedge and mutual funds are grabbing the same stocks, sending the same companies higher and higher on an almost daily basis. The issue is one of declining supply, and as fund managers are voraciously gobbling up big names, investors are holding their positions and don't want to let go. Since Thursday was a down day, Cramer focused on his "Dirty Dozen": 12 stocks which are going to have an upside and should be purchased on bad days.

    1. Whirlpool: With only 73.9 million shares, Cramer thinks WHR is behaving like a small cap. It has a big business in Brazil, and has been down for decades but is currently "on fire."
    2. Black and Decker: With only 64.8 million shares, this company, like any name with less than 100 million shares, also trades like a small cap, and keeps shrinking.
    3. Allegheny Tech: has only 94 million shares floating around.
    4. General Cable: Cramer recycled this stock from the rubble and it has "been on a tear" ever since with only 51.9 million shares currently trading.
    5. Honeywell: While this doesn't fit into Cramer's small-cap category, since it has 770 million shares trading, it is a "go-to" name has a tiny number of shares available compared with Exxon's 5.6 billion shares.
    6. American Standard: Since ASD is splitting into three companies, it is a "buy one, get two free" situation, said Cramer, noting it has only 176 million shares for sale.
    7. Johnson Controls: This producer of seats for cars is the only stock in the sector worth buying, says Cramer. JCI has 197 million shares trading.
    8. and 9. McDermott and Foster Wheeler: Cramer notes these two companies reported magnificent quarters thanks to their thriving engineering and construction businesses, particularly in the Middle East. MDR trades 103 million shares and FWLT has only 64. 6 million shares, and Cramer believes both stocks will rise.
    10. and 11. Caterpillar and Terex: These companies sell equipment to MDR and FWLT and Cramer likes CAT with 638 million shares, even though it is one of his larger picks, and he considers TEX, with 99.2 million shares, worst-of-breed only in comparison to CAT.
    12. John Deere: Cramer calls this stock "The new Schlumberger... the new oil service company for renewable agricultural fuels." At 226 million shares and at a 52 -week high, The Street "can't get enough" of DE.

Sell Block: Syntax-Brillian (BRLC), Health South (NYSE:HLS), Novo Nordisk (NYSE:NVO), Fluor Corp. (NYSE:FLR), McDermott International (MDR), Foster Wheeler (FWLT), CVS/Caremark (NYSE:CVS), Dynegy Inc. (NYSE:DYN), Cisco (NASDAQ:CSCO)

Cramer says BRLC, down 15%, deserves to be "taken off The Street." He is no longer on the fence about HLS, and gives it a triple sell because of its big debt and bad quarter. Since Cramer is worried about a backlash in drug stocks, and he would take the 16% gain in NVO. He applauds the success of FLR, MDR and FWLT after his recommendation last week, and would not take gains, but would would take off some FWLT at $100, FLR at $115 and MDR at $75. He is also bullish on CVS. Cramer says DYN is good long-term and right now it is having problems with weather. Although he didn't envision CSCO going lower because he thought its international business would offset problems on the domestic front, he warns anyone who sells CSCO will "regret it for the rest of your life" and says it is a "must buy" because of the current discount.

CEO Interview: Richard Notebaert, Qwest Communications (NYSE:Q)

Cramer asked Richard Notabaert if Qwest is finally regaining some respect, and Notabaert commented the company has "come a long way." He added that while not every telco is a buy, there is going to be more consolidation in the sector. Concerning a dividend, Notabaert responded, "as the year unfolds, we're going to look for further ways to reward our shareholders," and when Cramer asked about retirement, Notabaert reminded him of his previous "retirement" in 2000 which only lasted 8 months. After the interview, Cramer said, "There are very few stocks where I am just telling people, 'I've done the homework. I want you to own it.' Q is one of them."

Related: Qwest's Q1 net almost tripled and it beat estimates in spite of sales problems.

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