Jim Cramer's Mad Money, 12/11/07: That Dinky Quarter Point

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Tuesday December 11. Click on a stock ticker for more analysis:

Coca-Cola (KO), Pepsi-Co (PEP), Merck (MRK), Altria (MO)

Cramer expressed his disappointment with the Fed’s “dinky” quarter point rate cut and declared the Bernanke is out of touch with reality. He suggested investors play by the rules of 1990 and retreat to defensive stocks, such as KO, PEP, MRK and MO. “Don’t panic, but take cover in recession stock,” Cramer said.

Four Horsemen of China: Focus Media (FMCN), Baidu (BIDU), PetroChina (PTR), China Mobile (CHL)

Given his disillusionment with the Fed, Cramer decided to focus on global stocks and focused on one of his Four horsemen of China, Focus Media. (Other horsemen include Baidu, PetroChina, and China Mobile). The market is uneasy about FMCN’s acquisition of its competitor CGEN Digital because of concerns over margins, but Cramer likes the deal because it resembles monopoly-building. Its acquisition of Allyes AdNetwork, an internet advertising company, has been successful, and Cramer predicts Google might want to buy a stake in FMCN. CGEN Digital will be integrated smoothly and margins will improve, according to Cramer, but he added the stock could fall slightly because of integration risk. He would get into FMCN at its next dip and predicts it will rise from $54.86 to $75.

Related: Shaun Rein talks to Jason Jiang, CEO of Focus Media

What a Gas: Air Products & Chemicals (APD)

A recent Wall Street Journal article discussed the worldwide shortage of helium, which is available only in a few places. This gives APD an opportunity to raise prices, and since the stock had dropped and received a downgrade from JPMorgan, Cramer would take advantage of the opportunity to buy. APD has already made the move from $80 to $100, and according to Cramer’s thesis, it is headed for $120 and higher.

COO Interview: Bob Hugin, Celgene (CELG) with Millennium (MLNM)

Although CELG fell 11 points after the 49th Annual American Society of Hematology Conference this weekend, Bob Hugin discussed multiple myeloma treatment Revlimid’s “unprecedented survival rates” and said the drug’s future looks “very bright.” While rival Millennium also puts out a multiple myeloma drug Velcade, Hugin believes Revlimid’s data is more “compelling” and “will speak for itself over time.” Cramer recommends sticking with Celgene.

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