Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Friday October 20.
Monster Deal: Yahoo (YHOO), Monster Worldwide (NASDAQ:MNST)
Continuing his series of discussions about which companies Yahoo should pick up to give the company a lift, Cramer recommended Monster which he described as a 'broken stock but not a broken company." Given Google 's (NASDAQ:GOOG) success, it is obvious that Yahoo's problems are not related to the sector but to its management. Even if Yahoo does not buy Monster, Cramer believes it is worth owning since MNST charges more for listings than rival sites, has deals with newspapers and owns 48% of the online job market. However, Cramer would rate Yahoo as a triple buy if it dismisses CEO Terry Semel.
Related: David Jackson comments that niche web sites are making things difficult for Monster.com.
Cramer identifies DEO as a "total-return" stock with high dividends and strong growth which resembles Altria (MO) and AT&T (T). Diageo has a 10% growth, 4.1% dividend and 16% multiple and is an inexpensive stock. He says the DEO is the opposite of Catepillar (CAT) which was down badly on Friday. This high-end liquor company owns "60% of the world's top brands," and Cramer calls Diageo the "greatest marketing company of all time" since it is able to sell basically the same product for more money because it has aged longer and has a classier label. In addition, Cramer predicts that Diageo will "make a killing" next year in China and should do well in other BRIC countries. On the other hand, he says that Molson Coors (TAP) has slow growth and is "falling off the wagon."
Related: Nathan Slaughter discusses the popularity of Diageo products.
Stocks for the Coming Week: Oregon Steel (OS), Alaska Air (NYSE:ALK), Continental Airlines (NYSE:CAL), AMR (NASDAQ:AMR), Corning (NYSE:GLW), Anheuser-Busch (NYSE:BUD), Bristol-Myers (NYSE:BMY), General Motors (NYSE:GM), Ford (NYSE:F), and Comcast (NASDAQ:CMCSA)
Cramer recommends picking up OS after Thursday's selloff and since he expects the company to report a "blowout quarter." ALK's performance should equal that of CAL and AMR, and Cramer suggests buying some before it reports on Tuesday, as well as picking up GLW ahead of Wednesday's report. BUD will get "hammered" next week, according to Cramer who would switch to Diageo, and he would also get rid of BMY since it has declined. GM which works as a play off of Ford can be bought after its report comes out on Monday, and Cramer has confidence in Comcast.
Cramer welcomed Mushin Muhammad onto the show and commented on a story he heard on CNBC that phoney hedge funds are trying to hit up high-profile football players. Muhammad replied that the NFL has an FBI-managed security program that does background checks and that he has "smart guys" working for him. Cramer commented that Muhammad's portfolio, which includes FDX, XOM, IBM, BAC and MET is not only diversified, but he is in 'the house of pleasure." Muhammed discussed the M2 foundation, a charity he founded which is dedicated to the mental and physcial development of children.
More: Cramer's latest stock picks, including: Mad Money Recap, Lightening Round, Stop Trading and his Radio Show.
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