Jim Cramer's Mad Money In-Depth Stock Picks, 9/20/07

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Thursday, September 20. Click on a stock ticker for more analysis:

All That Glitters is Goldman Sachs (GS)

Goldman’s outstanding performance proves that brokers are“not cut from the same cloth” and that GS is the “the only one you want to own,” said Cramer. He commented on GS’ smart move of shorting mortgages during the credit crisis and added, “When you’re right quarter after quarter it isn’t luck.” GS has a low multiple on earnings per share because the Street still doesn’t give GS enough credit. However, Cramer predicts “Goldman will be dragged kicking and screaming to a higher multiple,” and the stock should reach $300 from $230.

Related: Chris Krasowski discusses Goldman's Golden Earnings.

CEO Interview: David Novak, Yum Brands (YUM)

Cramer asked David Novak how Yum Brands, owner of familiar names such as Taco Bell, KFC and Pizza Hut, can have such consistent performance. Novak pointed to the company’s “global portfolio of leading brands,” and commented YUM is building one restaurant a day in China and outperforming its competitors in the region, since it brings a “known quantity” to Chinese customers and develops brands that appeal to their tastes. Novak added the company’s global exposure protects it from high costs of food inflation and while taste is the first priority, the company is introducing healthier options such as the Fresco line at Taco Bell and trans-fat free foods at KFC. In spite of E. coli outbreaks and rat problems in New York City, Yum has prevailed and has had “unbelievable growth.” Cramer called YUM one of the most consistent restaurant stocks.

CEO Interview: Rob Meers. Luluemon (LULU)

Cramer thinks this yoga-apparel company, which has risen 28% in two months, is the next Under Armour and Crocs. While only 1% of the population practices yoga, Cramer sees it as a potential woman’s apparel retailer which could thrive in even beyond “wealthy parts of wealthy cities.” Meers agreed and added “people will pay for quality,” pointing out the stores have done well with college kids. When asked about the paucity of stores, Meers responded “the right thing to do is to be special” and said home delivery is as easy as picking up the phone. Cramer thinks LULU is a good luxury brand reminiscent of Tiffany’s.

Sell Block: Wachovia (WB), Wells Fargo (WFC), Bank of America (BAC)

Cramer said his recent preference for WB is not meant as a slight against WFC and BAC. In fact, it is because WB is not as well-managed and was struggling before the Fed cut that the bank will be so positively affected by Bernanke’s move.

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