Jim Cramer's Mad Money In-Depth Stock Picks, Jan. 24

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Includes: DEO, GPS, PLT
by: Miriam Metzinger

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Wednesday January 24. Click on a stock ticker for more analysis:

A Toast for Diageo (NYSE:DEO)

Continuting his series on favorite foreign stocks, Cramer declared that his #2 pick is the British liquor company, Diageo. In spite of a 30% increase since he began to recommend it, Cramer calls the stock cheap, notes its generous dividend and declares it "recession proof" since people drink even (or especially) when times are bad. In addition, he says the company is a low-risk, indirect play on China where its scotch is popular and cheap. Cramer expects Diageo to expand into Russia, India and Brazil and notes that it is "dominating" the U.S. market with its positive volume growth. In addition, Cramer likes Diageo because of its low estimates and strong marketing.

Related: Investor Ideas sees success for Diageo in India.

Fall Back into the Gap (NYSE:GPS)

Although Cramer has hated the Gap for a while, he now declares that it is a triple buy since it did not budge after reporting the worst quarter Cramer has seen with "horribly deteriorating" cash flows and the resignation of its CEO, Paul Pressler. However, Cramer's rule is that if a stock does not decline on bad news, it is going higher, and his favorite retail analyst, Dana Cohen, has predicted that GPS will go to $25 from $19.38. Retail comebacks, evidenced by J.Crew and Gucci, happen, and even if GPS will not see a turnaround, Cramer believes the stock will rise on an acquisition by private equity firms, which have cash "shloshing around" and are eager to spend.

Related: Amit Chokshi makes the short case for GPS.

Mad Mail: Plantronics (NYSE:PLT) and World Wrestling Federation (WWF)

Cramer would sell PLT because it is too "commodity focused," but gave two thumbs up again to WWF, which he believes is a "great play" although it hasn't moved very much.

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