Jim Cramer's Mad Money In-Depth, 12/12/07: Fed Up

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

Amback (ABK), Wachovia (WB), Countrywide Financial (CFC), MGIC (MTG), Washington Mutual (WM), Fannie Mae (FNM), Freddie Mac (FRE), Pepsico (PEP), Colgate (CL), Procter and Gamble (PG), Diageo (DEO)

Cramer said the Fed's liquidity strategy is going to make banks suffer more and noted the bad performance of ABK, WB, CFC, MTG, WM, FNM and FRE. He said favorite defensive stocks PEP, CL, PG and DEO were thriving. Cramer called on the Fed to vacate its Ivory Tower and find out what is really going on in the market.

Apple (AAPL), Hewlett-Packard (HPQ), Google (GOOG), Research in Motion (RIMM), Intel (INTC), Nvidia (NVDA), Texas Instruments (TXN), Sigma Designs (SIGM), AT &T (T)

Cramer commented if the Fed had cut half a point, there would be more stocks to recommend, but with a quarter point interest rate reduction, it looks like slim pickings, except for tech. His perennial favorites in the sector: AAPL, HPQ, GOOG, RIMM, INTC, NVDA, TXN are in great shape, Cramer said.

In addition, Cramer singled out Sigma Designs as a play on the decline of cable companies and as comparable services are provided by telephone companies. AT &T announced it is spending $5 billion on its U-verse TV service, and Sigma, which designs the chips for service, will benefit. Analysts raised their price targets after Sigma reported a fantastic quarter, and the company has a high quality problem of not making enough chips to meet demand. Cramer suggests letting SIGM come down a bit before buying. Medicis

CEO Interview Jonah Shacknai: Medicis Pharmaceutical (MRX)

Cramer asked Jonah Shacknai how MRX's new wrinkle treatment pending approval by the FDA is different from Botox. Shacknai says it was the first neurotoxin approved in the world and hopes the FDA will follow Europe's suit and approve the drug. Shacknai added he believes MRX is more in tune with customers' needs than Allergan. Similarly, Shacknai expects Restylane to excel against Allergan's rival, Juvederm. Cramer would consider buying MRX when the year-end tax-loss selling is over.

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Comments

[Thomas A,Gaughan]

Cramer is right, the Fed nos Nothing.

Thomas A. Gaughan

[awcabot]

Following Cramer's advice is noxious to investor's financial independence.
SeekingAlpha shouldn't be giving further air to his rants, but instead should keep on promoting intelligent analysis by the small investors who put a lot of thought in picking their portfolios.

[Donkey]

This is Americans' way of life.. always want to buy stuff that you can't afford, always swipe your Credit and always in debt.

Recession is here and there is no one else to blame but everyone who lives in America!

Buy another house while you can.. thye are getting cheaper!

[Burned]

Cramer's daily mad money advice should be consider as entertainment not investor's guide. U could get burn if you haven't done your own homework (well, this part Cramer is right).