Jim Cramer's Mad Money In-Depth Stock Picks, 8/1/07

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Wednesday August 1. Click on a stock ticker for more analysis:

Running Away from Home: Bank Index (BKX)

Cramer would not only get out of housing stocks, he suggests investors may want to leave their homes altogether. This would be a "smart, right, rational" choice if home equity has declined 10%. He would also sell the Bank Index and mortgage companies; "the ripple effects extend pretty far and are pretty ugly."

What Works: Lululemon Athletics (LULU), Garmin (GRMN), Allergan (AGN), Under Armour (UA), Crocks (CROX), Raytheon (RTN)

Cramer likes LULU, which was up on one of the market's darkest days. He also recommends GRMN, which rose 8 points and AGN because the "wheels of capitalism are greased by our need to have wrinkle-free skin." Cramer notes UA and CROX are both up and comments they have both been good trades, although he thinks UA will be better in the long run. His favorite defense pick, RTN, was "robbed" of reaching $60 after its report, but Cramer thinks its heading there.

CEO Interview: Jack Hartung, Chipotle Mexican Grill (CMG)

Cramer asked Jack Hartung how the company is dealing with rising food prices. "It was worse by 100 basis points this quarter," he said, but stressed the rising prices are not affecting business because CMG uses higher quality food to begin with. Hartung mentioned two factors which are creating growth for CMG; "We look at the quality of real estate we can secure and the quality of managers we're developing." The company motivates managers by paying them a $10,000 bonus for every crew person they develop to become a manager. Cramer predicts the stock will rise tommorrow and would only sell when CMG has has three analyst upgrades (currently CMG has one upgrade).

Related: Zachary Scheidt comments on Chipotle's blowaway quarter.

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