Jim Cramer's Mad Money In-Depth; 10/12/07: Icahn Revs Up Motorola

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Includes: BEAS, C, JBLU, K, LVS, MCD, MO, NYX, ORCL, TTG, UTX, WYNN
by: Miriam Metzinger

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Friday October 12. Click on a stock ticker for more analysis:

McDonald’s (NYSE:MCD), Coca-Cola (NYSE:K), United Technologies (NYSE:UTX), Altria (NYSE:MO), Citigroup (NYSE:C), Oracle (NASDAQ:ORCL), BEA Systems (BEAS), Motorola (MO)

With many investors eager to find buys during earnings week, Cramer suggested stocks which mimic McDonald’s, weak dollar play with international exposure. He suggested Coca-Cola, which should reach $60 from $57.80, United Technologies, poised to beat its numbers and Altria which will soon break itself up and is “the cheapest stock in the Dow Jones,” according to Cramer. He recommended buying Citigroup on reliable sources that CEO Chuck Prince is leaving and discussed Oracle’s huge bid for BEAS. Cramer interviewed activist investor Carl Icahn about the offer; "We obviously think the company was undervalued. That's why we bought it and kept buying it … There was no question, the way I look at this, that somebody would want this." Icahn predicted there will be other bidders for BEA and added Motorola has “great value” and should be split up. Cramer is bullish on MO on Icahn’s statements.

UBS (NYSE:UBS), Not BS

UBS reported a $3.4 billion writedown because of overvalued bonds, and additional problems connected to the subprime mortgage crisis, and yet the stock rallied. According to Cramer, this is a telltale sign of a bottom and told viewers "I think it's time to start liking the best wealth aggregator in the business." One move that separates UBS from its competitors is that it fired those responsible for the writedown, a sign the company has been “consistently realistic” throughout the subprime crisis. Cramer calls Chief Marcel Rohner a “clever CEO,” likes the company’s dividend and its exposure to India and China; "Wherever there is money, UBS will be there,” he said.

Speculation Friday Stock: Tutogen Medical (TTG)

While only $1 off from its 52-week high, Cramer would buy TTG because he thinks it is likely to receive takeover bids (it recently turned down Zimmer Holdings’ bid because it was too low, but Cramer thinks there will be other offers). While the stock may seem expensive, it has a 40% long-term growth rate, but Cramer warned against buying the stock much higher than $11.55.

Bullish Bear: Hunter Hillenmeyer, linebacker for the Chicago Bears: Las Vegas Sands (NYSE:LVS), Wynn (NASDAQ:WYNN), JetBlue (NASDAQ:JBLU), NYSE (NYSE:NYX)

Hunter Hillenmeyer asked Cramer what he thought about LVS, and while Cramer praised its “extraordinary management,” he prefers WYNN. Cramer recommended Hillenmeyer sell JBLU and buy NYX, which is a “hated stock” but not a broken company. He reiterated his recommendations to buy Coke and United Technologies.

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