Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Tuesday October 15. Click on a stock ticker for more analysis:
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Three Reasons to Buy Motorola (MO)
Although CEO Ed Zander occupies a prominent place on Cramer's CEO Wall of Shame, Cramer would buy the stock ahead of its report on Wednesday for three reasons; first is the possibility Zander will "want to spend more time with his family" and resign, which is somewhat remote but would mean 4 points upside. Second, MO might finally have hit bottom, since the bar is now so low that "even a toddler or Zander could jump over it and make you money." The third and best reason is activist shareholder Carl Icahn called for a breakup of the company, and since MO is worth less than the sum of its parts, a breakup could mean an upside of 5 to 10 points.
Related: On Friday's Mad Money program, Icahn discussed a potential takeover of BEAS and recommended Motorola.
Go Copart (CPRT)
Cramer recommends Copart, "an e-Bay for junk cars" as a good stock for a down day, since the stock has 35% market share and keeps grabbing more. In addition, CPRT is a company with significant global exposure, and has not been hampered by declining accident rates in the U.S. In addition, Copart is buying back 25% of its shares, one of the highest buybacks Cramer has seen. He cautions viewers to avoid buying the stock after hours and to wait a week or two.
In the Bag: Saks (SKS)
Cramer confesses he learned about multiple bids for Saks from reading Women's Wear Daily, and said the fact the stock didn't rise on Tuesday is a gift. He likes CEO Steve Sadove, whom he considers one of the most pro-shareholder CEO in the world, and notes tourists are flocking to Saks to take advantage of the weak dollar. Cramer predicts a buyer will pay $23 or $24, 5 points higher than Sak's current price, and that Saks will be worth more than Neiman Marcus.
Related: Chad Brand comments Sak's revival is worth watching.
While he doesn't usually suggest holding stocks after large bids, Cramer made an exception in the case of Biogen, because he thinks it will reach $100 from $82.51. He reiterated his recommendation of HOLX, which he started backing when it was 15 points lower. PTR's meteoric rise is "mind-boggling" and he suggests buying BIDU, FMCN or CHL instead.
Related: Lon Juricic believes Biogen Idec may be Carl Icahn's next activist target.
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