Cramer's Mad Money - The Comeback Of AIG (3/26/12)

by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Monday March 26.

CEO Interview: Bob Benmosche, American International Group (NYSE:AIG)

American International Group (AIG) is the ultimate comeback story, and was nearly moribund during the recession when the government had to buy up most of the company. Now AIG is in relatively good shape with diversified risk. While the government still owns a sizeable portion of the company, Bob Benmosche says AIG is given autonomy to make its own decisions and is gradually becoming a free agent. He predicts that when AIG becomes independent, AIG will have made a $5-10 billion profit for shareholders. Benmosche is confident that AIG is streamlined enough to meet its long and nearer-term goals.

Tractor Supply Company (NASDAQ:TSCO), Lowe's (NYSE:LOW), Home Depot (NYSE:HD), Paychex (NASDAQ:PAYX), Automatic Data Processing (NASDAQ:ADP), Prudential (NYSE:PRU)

On an up day for stocks when the Dow rallied 161 points, Cramer discussed which themes were working.

Of the home improvement retailers, Cramer's favorite is now Tractor Supply Company (TSCO), since the stock got unfairly knocked down on Friday. Home Depot (HD) is in second place because of it superior management, and while Lowe's (LOW) is playing catch-up, it is still a good retailer.

On the return of employment, Cramer would buy Paychex (PAYX) and Automatic Data Processing (ADP).

Prudential (PRU) is dirt cheap and can go higher. If interest rates are raised, the stock can go to $80.

Martin Franklin, Executive Chairman, Jarden (NYSE:JAH)

Jarden (JAH) a company that is a pastiche of 100 brands, including Rawlings baseball gloves, Bicycle playing cards, Mr. Coffee Makers and Oster Blenders announced an aggressive buyback that shrunk the share count by 13%. The stock has risen 34% year to date. Of the buyback, Martin Franklin said, "We made a statement about how we feel about the future of the company." Jarden invests a significant amount of money on brand research and marketing to continue grabbing market share. Jarden not only acquires but revamps tired products; it added a flashlight business using LED lights to the Coleman brand and apparel is growing double digits every year.

While Cramer says he usually prefers stocks that maintain a dividend, JAH's buyback has been a success story.

Mad Tweets: Weyerhaeuser (NYSE:WY), Ford (NYSE:F)

Weyerhaeuser (WY) is going to trade off homebuilding in America, since Japan is not being heavily rebuilt because of continuing problems with radiation. "America is the real story," said Cramer.

Ford (F) still has significant problems with Europe, high costs and rising gas prices.


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