Jim Cramer's Mad Money In-Depth Stock Picks, 7/12/07

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Includes: APA, BONT, BX, CASY, COST, CVS, CX, HOLX, MTW, QCOM, RAD, TXN
by: Miriam Metzinger

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Thursday July 12. Click on a stock ticker for more analysis:

Avoid Private Equity: Blackstone (NYSE:BX)

Cramer would not buy private equity firms and suggests staying away from the Apollo and KKR IPOs. A former hedge fund manager, Cramer says he knows a thing or two about private equity. He believes the stocks are too expensive and investors would be catching these names at the end of the trend. In addition, if a Democrat wins the White House, he or she will propose taxing "the heck out" of private equity and squeezing the firms dry. Cramer added there are "too many people with too much money trying to get a piece of the action." Finally, companies are taken public at the end of a cycle, and "coming public means they're selling, not buying," Cramer said.

That 80s Show: Apache (NYSE:APA)

This week, Cramer has been discussing his theory that once the $80 threshold is broken, a stock becomes "annointed," rises to $100 and eventually reaches $120. He added once a stock hits $100 it will only go down again if it splits. Apache is a name Cramer believes will provide support for this theory because "people will keep buying it." Oil is one of the sectors driving the market, and Apache's advantage over other oil companies is its ability to thrive in challenging areas because of its low production costs and to improve on cheap products it purchases from its rivals. Cramer adds APA is trading at only 1o times earnings; "This stock is mispriced!" Most of APA's oil reserves are in the U.S., and the company has raised its product guidance. "I would buy APA before it gets away from you," Cramer said.

Overcoming Soros: Bon-Ton (NASDAQ:BONT), CVS (NYSE:CVS), Rite Aid (NYSE:RAD), Qualcomm (NASDAQ:QCOM), Texas Instruments (NYSE:TXN), Gen-Probe (NASDAQ:GPRO)

Cramer says he doesn't want people to invest like George Soros, "I want to be better than Soros!" For instance, Soros owns BONT which Cramer thinks is alright for the long term, but "short term it really stinks." Although Cramer likes Soros pick CVS after its Caremark acquisition, he prefers RAD. He would also swap Soros' QCOM for his choice, TXN. However, Cramer agrees with Soros about buying GPRO because the stock is "instant growth" with 40% market share for blood screening tests and 58% market share for chlamydia and gonorrhea tests. The company is also making deals with industry leaders such as General Electric, 3M and Millipore.

Mad Mail: Manitowoc (NYSE:MTW), Costco (NASDAQ:COST), Casey's (NASDAQ:CASY), Rite Aid (RAD), Cemex (NYSE:CX)

Cramer agreed with a viewer that MTW fits his $80-$100-$120 theory. Since COST is a gas station as well as a retailer, he considers it a viable alternative to CASY. Cramer added he isn't concerned about RAD after the Medicaid ruling, but would let the "good times roll." Being locked in by the housing cycle is not a bad thing for those who hold CX, he said, because the company is "growing like a weed."

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