Jim Cramer's Mad Money In-Depth Stock Picks, 7/26/07

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Thursday July 26. Click on a stock ticker for more analysis:

Bull Meat Barbecue

Although Thursday's selloff resembled a "bull meat barbecue," Cramer encouraged viewers not to lose heart and reiterated his principle that there is always a bull market somewhere. He made a checklist of three kinds of stocks to avoid: Stocks, such as housing, which need low interest rates to go higher, stocks (restaurants, retail etc.) with too much leverage to the domestic economy, and companies which must borrow to make an acquisition. Cramer emphasized the importance of selling these stocks, especially for those who did not lighten their portfolios before the selloff and those who cannot take the pain and wait for these sectors to recover.

Game Plan for Next Week: Pepsi (PEP), Colgate (CL), Kellogg (K), Kimberly Clark (KMB), Caterpillar (CAT), Foster-Wheeler (FWLT), Freeport McMoRan (FCX), Schlumberger (SLB), Halliburton (HAL), Boeing (BA), Bunge (BG), Monsanto (MON), Dell (DELL), Hewlett-Packard (HPQ), Cisco Systems (CSCO), Celgene (CELG), Merck (MRK), Medco Health (MHS)

Because on The Street, a trauma does not usually follow a trauma, Cramer expects a bounce at least by Monday, and would get rid of financials, retail and restaurants and buy soft goods, such as PEP, CL, K and KMB. Dismissing worries of a potential worldwide slowdown, Cramer likes machinery and mining, particularly CAT, FWLT and FCX. He also recommends oil, although natural gas has been tricky, and his picks are SLB and HAL. Cramer's favorites among aerospace and agriculture include BA, BG and MON, and he adds the tech sector has been hot and would buy DELL, HPQ and CSCO. In the healthcare sector, he especially likes CELG and MHS and doesn't mind MRK.

Pscyhed Up with Sycamore Networks (SCMR)

After the selloff devastation, there is still one thing Cramer can count on; that tech will continue to thrive in the late summer as it does every year. Cramer likes SCMR as a speculative telecom tech stock, since the company has almost a pure play on optical services. SCMR is not best-of-breed, but he is still bullish because SCMR does not yet have any analysts covering it and he likes SCMR's floor; it's at $4 a share but has the equivalent of $3.23 a share. In addition, the company's sales have been rising and 60% of its revenue is international. While SCMR is not as strong as Cisco or Cienna it could make investors more money.

Mad Money: Hoku Scientific (HOKU), Genzyme (GENZ), Celgene (CELG)

When a mailer asked about Hoku, Cramer recalls having recommended it at $6, and it has recently dropped from $11 to $8. At this level, Cramer says, it is too speculative, but he thinks it will repeat its upward trend after it falls back to $7 or $6. Another mailer wanted to know Cramer's opinion of GENZ; while the fall is good for biotech in general, he prefers Celgene to GENZ. On the issue of whether Freeport McMoRan's report of strong cash flow will be good for Caterpillar, Cramer says he likes CAT, but it has been hit hard for its North American exposure. While he says CAT is "your best play" he adds currently he is "loathe to buy more."

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