Jim Cramer's Mad Money In-Depth Stock Picks, 7/27/07

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Friday July 27. Click on a stock ticker for more analysis:

PepsiCo (P'EP), Kellogg (K), Nova Chemicals (NCX), Schering-Plough (SGP) and Celgene (CELG), EMC (EMC)

In the aftermath 0f last week's carnage, Cramer urged investors to search in the rubble for damaged stocks but not damaged companies. One indicator that the damage is only skin deep is if the companies reported great quarters right before the selloff. However, financial and housing stocks are simply no good, according to Cramer. While Pepsi and Kellogg both reported great quarters, Pepsi jumped and then gave back its gain while Kellogg went flat. He prefers Pepsi to Coke and thinks this $66 stock is really worth $80. Cramer predicted Kellogg will have a great quarter. He considers both stocks to be an antidote for a slowing economy. Concerning NCX, Cramer said the quarter was strong and he thinks the company will be taken over. Cramer likes SGP and CELG, even though the latter stock is up. Cramer liked EMC's quarter so much, he bought the stock, and he says the company's spinoff of VMWare will be VMware "the sexiest initial public offering of the year."

Boeing (BA) and Lockheed Martin (LMT)
Cramer predicts BA and LMT will go to $120, since both had been at $80 and are now around the $100 mark. BA is producing fuel-efficient planes which hold more passengers and is not affected by the domestic economy. Cramer would buy a maximum of 100 shares incrementally. He adds LMT is a good play on the Iraq War, since the defense budget is "huge." Cramer added LMT is a good international stock and is a "buyback king."

Adobe (ADBE)

Cramer feels secure about the tech because the sector usuallly does well in the late summer and it has the least exposure to housing ills. He likes ADBE right now even more than Microsoft because he thinks the third and fourth quarter will benefit from sales of Creative Suite 3, the "best software for publishing."

Mad Mail: Transocean (RIG) and Omniture (OMTR)

Cramer calls RIG the most creditworthy company apart from Schlumberger, but he would recommend selling some gains. He adds that he hopes those who saw a $4 jump for OMTR sold some stock.

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Comments

[Bruce Robinson:]

Why unload any RIG? The deal will give you a cash infusion by itself.

2007 Jul 29 10:21 AM