Jim Cramer's Mad Money In-Depth, 2/28/08: Crumbling Fortress

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Thursday February 28. Click on a stock ticker for more analysis:

CEO Interview: Bob Lane, Deere (DE)

Cramer said Deere is "the single best manufacturer in America, selling into the single best market in the world” and noted the stock has risen 149% since his initial recommendation. DE is a member of Cramer’s “fabulous five” which includes Potash, Mosaic, Monsanto and Agrium. Bob Lane attributes this growth to rising income in the third world and increased consumption of beef which requires more grain. Ethanol demand is “turbocharging” this growth. When asked how changes in NAFTA, as proposed by Hillary Clinton, would affect DE, Lane said they would have an adverse effect, since a fourth of DE’s combines are sold overseas; “Global trade is vital to Deere.” Cramer would buy every time the stock dips below $100.

Mobile Telesystems (MBT), Vimpel Communications (VIP), Sprint (S), AT& T (T), Verizon (VZ)

Cramer continued his series on telecom in emerging markets and discussed Russian companies MBT and VIP, which are seeing a 33% growth in the cell phone industry every year. However, the main story isn’t new cell phones, but the switch from pre-paid to revenue-generating post-paid subscriptions. Also, many Russians are forgetting about landlines and getting just cellphones. While both carriers should see a significant upside, Cramer prefers MBT, which is more secure, has more market share and trades as just 13 times earnings with a 17% growth rate and has a 1.8% yield. Concerning domestic telecoms, Cramer reiterated his antipathy towards Sprint and still likes Verizon and AT &T.

Sell Block: Fortress Capital (FIG) and Blackstone Group (BX)

Cramer inducted Fortress Capital CEO, Wes Evans, a man he calls “the death of capital,” on to his Wall of Shame. Cramer went on to call Evans and enemy of stockholders and says rumors indicate FIG may be nothing but a “giant castle of cards.” FIG went public a year ago, jumped up to $37 on hype over its IPO and has been going downhill from there, currently down 58% at $14. Cramer says FIG is a prime example of why private equity groups should not go public, and the company breeds suspicion because no one is sure what it does. Cramer doubts FIG can maintain its dividend, and he is also bearish on BX.

Mad Mail: Sirius Satellite Radio (SIRI), XM Satellite Radio (XMSR), Corning (GLW), Fannie Mae (FNM)

Cramer dismissed rumors that the Russians are buying 70% of Fannie Mae and said Lex Luther has a better chance of buying 70% of Russia. Cramer is still behind the stock. In spite of the fact GLW has performed well consistently, it has not gone up. However, Cramer counseled patience with the stock and said, “One day, we'll wake up, and that stock will be at $30.” Cramer again emphasized the importance of the SIRI/XMSR merger going through.

Seeking Alpha publishes a summary of Jim Cramer's stock picks every day including: Mad Money Recap, Lightning Round, Stop Trading and his Wall Street Confidential Picks.

Get Cramer's Picks by e-mail -- it's free and takes only a few seconds to sign up.

Seeking Alpha is not affiliated with Jim Cramer, CNBC or TheStreet.com

Comments

[stinkaroo:]

If XM an Sirius can't compete, then why is Clearchannel and other terrestrial(sp?) giants paying off congressmen and pulling every other dirty trick in the book to block them? There have been over 200 mergers completed since XM and Sirius announced their plans. A decision has to be made one way or the other. Letting these two companies go broke in limbo is immoral, injust and reprehensible. I hope the merger does go through. Anyone who has a subscription knows that they offer a superior product and that is why those bullies are terrified to let them merge. I'm sure many shared your opinion in the 70's when Cable TV was starting out... I assume you do have cable TV...

2008 Feb 29 10:58 AM

[Sirius/XM:]

Sirius/XM...Congress is killing a good business that I enjoy. Let my people go! They pose no monopoly threat w/ less than 5% of the business. The comparison to early cable is right on. Also satellite TV is a good parallel. Anybody know who to call in Congress?

2008 Feb 29 11:22 AM

[stinkaroo:]

WHY DO YOU KEEP SHOUTING AT US? I agree that the two companies dept is going to be hard to overcome...and impossible if left in limbo. Why do you hate them so? Are you one of the terrestrial beings that feel threatened by their superior product? How can XM/Sirius be a monopoly and yet still have competition? I assume that the evil Clearchannels and the like are competitors or they wouldn't feel threatened by them. If everyone is so certain that the companies are doomed to fail regardless of the merger; then why all of the scrutiny? Why is it that oil companies face less obstacles? Financial institutions have easier paths? There is something very stinky (besides Assume is OTL a.k.a ed) going on here and it needs to stop. These two companies have the right to run their business, within the law, and not be held hostage by the Terrestrial giants that have paid off our lawmakers to keep this from going through. The only reason a decision hasn't been made is that DOJ lawmakers cannot justify denying the merger and since they have already lined thier pockets with ClearChannels evil coin they have done the only thing they can; keep them in limbo and let them bleed.

2008 Feb 29 01:45 PM

[stinkaroo:]

Bob-a-boey....bob-a-bo...

2008 Feb 29 02:20 PM

[stinkaroo:]

Man I'm losing my butt in SIRI!!

2008 Feb 29 03:27 PM