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

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Includes: BX, DE, FIG, FNMA, GLW, MBT, SIRI, T, VZ
by: Miriam Metzinger

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 (NYSE: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 (NYSE:MBT), Vimpel Communications (NYSE:VIP), Sprint (NYSE:S), AT& T (NYSE:T), Verizon (NYSE: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 (NYSE:FIG) and Blackstone Group (NYSE: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 (NASDAQ:SIRI), XM Satellite Radio (XMSR), Corning (NYSE: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.

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