Jim Cramer's Mad Money In-Depth Stock Picks, 9/4/07

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Tuesday September 4. Click on a stock ticker for more analysis:

CEO Interview Mark Hurd, Hewlett-Packard (HPQ)

Tech has “convincingly moved into the leadership position,” commented Cramer adding that his often touted pick, Hewlett-Packard is head of the pack. The stock saw an upside surprise of 5 cents in the last quarter, and has H-P has benefited from the ongoing price war among component suppliers. Mark Hurd added “The best days of H-P are head of it, not behind it,” and credited the company’s success with growth and strong fundamentals. Concerning H-P’s $1.6 billion acquisition of $1.6 billion acquisition Opsware, Hurd said, "we buy companies that are leaders." Cramer likes the fact that 65% of H-P’s revenues are from overseas and at $50, he thinks H-P is the cheapest big-cap tech stock.

Bucking Starbucks: Peet’s Coffee (PEET)

With the passing of Alred Peet, Cramer paid tribute by touting his coffee company, Peet’s Coffee which pre-dated and perhaps inspired Starbucks. Unlike its more famous rival, Peet’s has enormous growth potential, according to Cramer. Peet’s plans to open 30 stores next year, and iat $25.75 is a safe, recession-proof stock.

Nothing Could Be Finer than to Be in Carolina Group (CG)

While many investors are busy choosing between Altria’s domestic and international company after its breakup, Cramer suggests looking at Carolina Group, which is a unit of Loews and owns Newport, the best-selling brand of menthol cigarettes. Newport accounts for 9% of the company’s sales volume, and while the sales of other cigarettes are declining, menthol is on the rise. Cramer notes after CG settles a class-action lawsuit, it is likely to raise its dividend from 2.3% to $6.4%. He not only likes CG’s yield, but he also believes in the company’s growth potential.

Mad Mail: Halliburton (HAL), Tim Horton’s (THI) Cramer agreed with a mailer who expressed doubts about Halliburton, and he added HAL did not spin of KBR correctly. In addition, Cramer was disappointed HAL missed the opportunity to buy Global Sante Fe, which was acquired by Transocean. When asked about Tim Horton, Cramer said it is too expensive and prefers Peet’s.

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