Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Friday November 16. Click on a stock ticker for more analysis:
St. Jude (NYSE:STJ), Medtronic (NYSE:MDT) Cramer admitted he was "dead wrong" when he said STJ was a sell on Thursday, and explained his bearishness was due to a "misapprehension" after Medtronic (MDT) recalled its defibrillator leads because cracks were found. Since STJ, which also produces the leads, declined seven points on news of MDT's recall, Cramer initially thought it was a sell, but now believes it is a buy, since it will have the lion's share of the defibrillator lead business now that MDT is out of commission.
Related: ChinaBio reports STJ pacemakers were rejected in China.
CEO Interview: Michael Ward CSX (NYSE:CSX)
Cramer asked Michael Ward why London-based Children's Investment Fund, an asset management firm, is harassing CSX about its governance when the company is up 17% and has taken positive steps to benefit its shareholders. "We're very proud to stand by our record," said Ward, who noted the dividend has tripled since he has taken the helm and buybacks are on the increase, "I don't get it either." He added company spending is "very much in line with the rest of the industry" and none of TCI's suggestions would offer workable solutions, but would hurt the industry. Ward said CSX will continue to work hard for its shareholders as it has done for the past three years. Cramer admitted he was puzzled that TCI would pick on an effective CEO like Michael Ward and said CSX is a buy.
Related: Todd Sullivan discusses TCI's criticism of CSX.
Game Plan: Countrywide Financial (CFC), Washington Mutual (NYSE:WM), Downey Financial (NYSE:DSL), E Trade (NASDAQ:ETFC), Centex (CTX), Beazer Homes (NYSE:BZH), Pulte Homes (NYSE:PHM), Standard Pacific (SPF), Ambac (ABK), MBIA (NYSE:MBI), PMI Group (PMI), MGIC (NYSE:MTG), Avon (NYSE:AVP), Colgate (NYSE:CL), Altria (NYSE:MO), Clorox (NYSE:CLX), Coca-Cola (NYSE:KO), MedcoHealth (NYSE:MHS)
Cramer said he feels uneasy suggesting specific stocks in a volatile market, and added financials are a no-go area, especially since WFC CEO John Stumpf commented the housing market is the worst since the Great Depression. He would stay away from CFC, WM, DSL, ETFC, CTX, BZH, PHM, SPF, ABK, MBI, PMI, and MTG. Cramer recommended defensive stocks AVP, CL, MO, CLX, KO and MHs. Since the economy is in crisis, Cramer predicts the Fed will cut rates again.
CEO Interview: Karl-Axel Waplan, Lundin Mining (LMC)
Unlike its competitors, LMC's peformance has been sluggish and it is down after a tepid quarter. Cramer asked CEO Waplan why investors should hold onto LMC. Waplan said the long-term growth story is still good; "We are headed the right way." He said he expects the company to grow and make more money. "You have to hold on to it," said Cramer. However, he did not recommend buying more until it reports a good quarter.
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