Jim Cramer's Mad Money In-Depth Stock Picks, 10/4/07: Kroger at a Discount

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

Kroger at a Discount: Kroger (KR), Supervalu (SVU), WalMart (WMT)

In search for good, cheap stocks after a significant market run, Cramer made a surprise find among the beleaguered supermarkets. KR is a “serial outperformer,” with an earnings per share at four cents above average and raised guidance. While The Street was has been worried about supermarkets, the absence of inflation and the fact that people just don’t like to buy food at WalMart has been good news for Kroger, which is not threatened by Supervalu, since despite its name, this supermarket has no future value, according to Cramer. Meanwhile, Kroger has been improving its presentation, quality, has bought back 3% of its shares and expects to continue improving margins.

Related: Ted Allrich thinks KR may win the Mega-Store battle.

Overlooked IPO: Starent Networks (STAR)

Continuing his series on overlooked IPOs, Cramer featured STAR which provides the technology which allows users to send photographs, watch videos and play games on a cell phone. Starent Networks clients include Verizon, Sprint Nextel, and Vodafone, and Cramer dubs STAR as the next Qualcomm. While the long-term growth rate is at an impressive 57%, Cramer doesn’t think the price is quite right and would wait for STAR to dip a bit before buying.

Related: Eric Savitz reports Starent replaced Oracle at the top of Goldman Sachs' list of top tech growth stocks.

Sell Block: Macquarie Bank (MBL)

While MBL has yet to commit a crime, Cramer’s faith is shaken in MBL and he would take gains right away. The bank “dramatically overpays” for its purchases and uses debt to pay for them. However, MBL does not technically own the purchases, but establishes small funds as the true “owners.” MBL’s debts are not recorded, but belong to these small funds. "We've made really good money here, but now it's time to take it off the table and forget about it," Cramer said.

CEO Interview: Dr. Frederic Moll, Hansen Medical (HNSN)

Dr. Frederic Moll Discussed forays into electrophysiology and robotic catheters. He is excited about the potential of this new technology, and Cramer suggests waiting for a decline to buy HNSN.

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