Jim Cramer's Mad Money In-Depth: 12/18/07: Easy as ADC

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Tuesday December 18. Click on a stock ticker for more analysis:

CEO Interview: Ivan Seidenberg, Verizon (VZ) with AT & T (T)

In tough economic times, Cramer would buy a stock like Verizon, and he invited CEO Ivan Seidenberg onto the show. Seidenberg discussed the success of the company's fiber optic service, which provides high quality pictures and a triple play. He added the consumer demand is not to be underestimated; last month 25 billion text messages were sent across Verizon's network. Videos on cell phones will be huge, Seidenberg continued, and people will download all kinds of material onto their cell phones. His goals are to increase the already generous dividend and to expand margins in the coming year. Cramer says VZ is the stock for 2008, and prefers it to AT & T.

ADC Telecom (ADCT)

ADCT, which produces broadband connection equipment, will benefit from Verizon's growth, since it generates revenue from wireless and fiber optic services. While the company's spending cycle was once volatile, the TV war between cable and telecom companies allows ADCT to provide equipment to both sides. Fiber-connectivity was responsible for ADCT's successful quarter, and the company has a 10% growth rate and a clean balance sheet. Cramer expects to see good things from ADCT.

Chimera Investment (CIM), Annaly Capital Management (NLY)

In the rush to get rid of mortgage-backed paper, many banks are throwing out the good with the bad, because they don't have the time to do the sorting. CIM is taking advantage of this state of affairs by sorting through the refuse for good paper. The company has been public for a little more than a month and hasn't done much, but Cramer would buy CIM before it takes off. However, he would use limit orders and not buy the stock immediately. CIM is managed externally by a subsidiary of Annaly Capital Management, and Cramer thinks NLY CEO, "mortgage king" Michael Farrell's influence will be good for the company.

Mad Mail: Transocean (RIG), Medco Health Solutions (MHS), Express Scripts (ESRX)

Cramer commented that traditionally, growth stocks didn't really pay high dividends until they stopped growing rapidly. In the case of RIG, he would look at its growth rather than its dividend. He said ESRX and MHS are both good stocks, and while he prefers MHS slightly to ESRX, he once made a lot of money with ESRX and would not trade out of it.

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