Jim Cramer's Mad Money In-Depth, 3/14/08: Mad Money's Third Anniversary Program

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program,Friday March 14. Click on a stock ticker for more analysis.

Schering-Plough (SGP), Merck (MRK), Teva (TEVA), Gilead (GILD), Genentech (DNA), Celgene (CELG), Carnival Cruise (CCL), Con Edison (ED), Dow Chemical (DOW)

Big Pharma is down because of worries the Democrats might take the White House, but Cramer thinks the Democrats might have more of an impact on oil and energy stocks than Pharma. Cramer’s two favorite stocks in the sector are SGP and MRK, even though both have dropped 28% in the past year. For its growth, SGP is “one of the cheapest stocks out there” with star drugs Zetia and Vytorin. Cramer likes MRK’s cholesterol drugs and has confidence in its upcoming HPV vaccine. He dismissed concerns about a patent challenge for MRK’s Nexium drug, and said it has only a 10% chance of harming the company. Cramer told an audience member that while he likes TEVA, he generally stays away from generic drug companies because of competition. He added he likes GILD, DNA and CELG more than Teva. Moving beyond pharma, another audience member asked Cramer which high dividend stocks are the safest, and Cramer listed Dow, ED and CCL.

Avon (AVP), Herbalife (HLF), Tupperware (TUP)

Direct-sellers do well in a recession, since downsizing causes employees to look for other jobs, and given the international exposure, these companies profit from a weak dollar. Cramer’s favorite is TUP because 85% of its sales comes from overseas, it has a 2.5% yield, the stock has risen 6% since January and yet it has pulled back recently, providing a good entry point. Cramer also likes HLF, which has gained $10 a share since November, but he would wait for a dip before buying. AVP is expanding in Brazil and China and has 75% of its sales overseas. Cramer would buy half a position now and the other half on a pullback.

Am I Nuts? Martha Stewart Omnimedia (MSO)

Cramer diagnosed patients who had an excessive emotional attachment to their stocks. He said while he likes Martha Stewart, her stock is a sell. He told another audience member that she could not have 80% of her portfolio invested in alternative energy stocks, and told her to diversify.

Any Questions? Bear Stearns (BSC)

Cramer took questions from the audience and suggested those investing on behalf of family member should assess how much risk each individual member is willing and able to take. Speculative stocks are for younger people, who can recoup their losses more easily. He told another participant that financials aren’t worth buying again until the Fed buys up agency paper, continues to lower interest rates, and gets the FHA to guarantee 30 year mortgages. Regarding the BSC fiasco on Friday, Cramer says he doesn’t see a bottom in financials until a bank or major broker fails.

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