Jim Cramer's Mad Money In-Depth, 2/12/08: China Says "YUM!"

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 |  Includes: BA, BHP, BRCD, CLF, DE, FCX, POT, SGP, SLB, XTO, YUM
by: Miriam Metzinger

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Wednesday February 13. Click on a stock ticker for more analysis:

Cleveland Cliffs (NYSE:CLF), BHP Billington (NYSE:BHP), Freeport-McMoran (NYSE:FCX), Boeing (NYSE:BA), Potash (NYSE:POT), Deere (NYSE:DE), Schlumberger (NYSE:SLB), XTO Energy (XTO)

Tuesday saw the return of Cramer's five long-term bull markets: aerospace, minerals and mining, oil and oil service, agriculture and infrastructure, and those who believe that recovery is coming ruled the day. Aerospace was lifted by BA's news that, after several delays, the delivery of the long-awaited 787 Dreamliner may come on time. News of coal and copper shortages was good for BHP Billington and Freeport-McMoran. Cramer also recommended Cleveland Cliffs. Potash rallied after a bullish interview with CEO Bill Doyle. Cramer also mentioned his favorite ag stocks, Deere, and suggested investors buy more rather than worry about the sector on the next down day. Oil is well after Bear Stearns' upgrade of SLB and XTO's strong earnings. Infrastructure got a lift from Buffett's bid to rescue bond insurers, but Cramer warned that all of these gains could disappear, given how quickly the market has been moving.

CEO Interview: David Novak, Yum! Brands (NYSE:YUM)

Cramer said Yum is one of the most pro-shareholder and pro-growth companies he has seen and is impressed by YUM's aggressive moves into China. In 2007, one new store was opened in China every day and three a day were opened in December 2007. Novak said the company's performance reminds him of how McDonalds began its initial expansion in the States. Domestic growth has not been forgotten, said Novak, adding the company will concentrate on desserts, healthier offerings and new beverages.

CEO Interview: Fred Hassan, Schering-Plough (SGP)

SGP pulled off a surprisingly good quarter after studies showed that the company's drug Vytorin may be no more effective against cholesterol than Zocor alone. Hassan said he disagreed with the study, which he said was limited and focused on only patients with very elevated cholesterol. He commented SGP transcends Vytorin and includes a huge international business. Hassan mentioned the company's acquisition of Organon which produces the NuvaRing contraceptive, and Sugammadex, a drug that enables patients quickly to recover from anesthesia. Hassan also mentioned the company's strong patent protection, steady pipeline and his intention to buy back stock. Cramer concluded SGP is the only pharma worth buying now.

Related: Chad Brand says Vytorin worries are overdone.

Mad Mail: Brocade (NASDAQ:BRCD)

A viewer asked Cramer how he could have changed his mind so rapidly from bullish to bearish on Brocade, and Cramer replied the quarter was worse than he had anticipated. "I had egg on my face," Cramer confessed.

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