Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Thursday, January 10. Click on a stock ticker for more analysis:
Countrywide Financial (CFC), Bank of America (BAC), Washington Mutual (WM), Citigroup (C), Bear Stearns (BSC), Merrill Lynch (MER), KB Homes (KBH), Centex Homes (CTX), Beazer (BZH), MGIC Investment (MTG), MBIA (MBI), Blackstone (BX), Thornburg Mortgage (TMA)
Cramer would look for buys among the devastated financials and housing stocks. He is interested in the rumor that BAC may buy CFC, and predicts WaMu is a potential takeover target. While Citigroup seems like a real loser, it will profit from a Fed rate cut, and while Cramer already likes BSC, he prefers MER. In housing, Cramer's picks include KBH and CTX, although BZH is "still too troubled." While he does not advocate selling MGIC or MBIA, Cramer would not necessarily buy them either. He would not buy more BX, but would buy TMA, although he would confine buying to preferred shares, since he thinks the company may get a bid.
Benefiting from Bankruptcy: EPIQ Systems (EPIQ)
Cramer likes EPIQ as a "hedge against prosperity" since the company makes money from bankruptcies and foreclosures. EPIQ is growing 38% but trades at less than double the company's growth rate. EPIQ's secondary offering should increase liquidity to further allow the company to profit from rising bankruptcies.
Interview with the President of VFC Corp (VFC), Eric Wiseman
While retail has become a no-man's land for some, VFC is thriving thanks to its diversity of brands and channels as well as its 30% international business, said Eric Wiseman. VFC doesn't need to make many markdowns because of its superb marketing strategies. While Cramer is usually cautious about freshman management, he admits Wiseman is the exception to rule.
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