Jim Cramer's Mad Money In-Depth Stock Picks, Jan. 10

Includes: HAL, PETM, T, WMT
by: Miriam Metzinger

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Wednesday January 10. Click on a stock ticker for more analysis:

Classy Saks (NYSE:SKS) versus Wal-Mart (NYSE:WMT)

Cramer says that the retail surge is like finding a "diamond in the rough," and he especially likes Saks which is an "ultimate aspirational brand" with stores that have an aura that encourages people to spend. Cramer attributed Saks' turnaround to increased earnings and its "asset takeout story." Unlike Wal-Mart with its warehouse feel, Saks' strength is in its merchandising, which is "about perception -- not about statistics. The analysts don't get it," Cramer said. He likes Saks' margin expansion and growth, and although Saks has begun to turn around, Cramer says it isn't too late to jump on board.

Related: In October, Hilary Cramer noted the weakness in luxury retail names such as Saks.

How Much is that PetSmart (NASDAQ:PETM) in the Window?

Cramer's second turnaround stock is the country's largest pet store. He is bullish on PETM, not only because Americans are crazy about their pets, but also because of PETM's fundamentals and its 17.5% long-term growth rate. Like Saks, PETM has growing margins and outstanding merchandizing, and Cramer feels that the company is undervalued. He adds that PETM is "primed to expand" without interference with rival Petco which was bought by a private-equity firm.

Related: James Hale calls PETM "the sales leader among specialty retailers."

Mad Mail: AT & T (NYSE:T), Halliburton (NYSE:HAL)

When asked about AT & T, Cramer gave the stock two thumbs up. Moving on to HAL, Cramer called it the most "painful" stock he owns, and he doesn't see it moving this year, but by next year he expects HAL to rise or to be bought.

Related: Carl Howe notest that AT & T could benefit from the iPhone because it owns Cingular.

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