Jim Cramer's Mad Money In-Depth, 10/5/07: Four Horsemen Gallop Ahead

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Includes: AAPL, AGN, AMZN, BA, BBRY, GOOG, MASI, STAR-OLD
by: Miriam Metzinger

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Friday October 5. Click on a stock ticker for more analysis:

Research In Motion (RIMM), Amazon.com (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG), Boeing (NYSE:BA), Air Products (NYSE:APD), Terex (NYSE:TEX), Energizer (NYSE:ENR), Caterpillar (NYSE:CAT), and ConocoPhillips (NYSE:COP)

The four horsemen, RIMM, AMZN, AAPL and GOOG are galloping ahead with an average gain of 45%. RIMM set a new record and rose 100%. Since a diversified portfolio is not comprised only of tech, Cramer revisited his $80 to $120 thesis for the current bull market. In the spring, Cramer covered a series of stocks at $80 which he thought would hit $100 and eventually $120, but the picks did not work, according to Cramer, because the market then was “falling apart.” However, he says now is the perfect time to buy BA, APD, ENR, CAT and COP which are good to go to $100 and then to $120, not only because they are currently sitting at around $80, but also because they are in bullish sectors. His favorites are CAT, TEX and COP.

Overlooked IPO: Masimo (NASDAQ:MASI)

Continuing his series on neglected IPOs, Cramer discussed MASI, which started low because it came public when the market mood was bearish. MASI makes products which allow for noninvasive measurement of blood oxygenation. 30% of MASI’s revenue comes from hardware and 70% from equipment used to for operating the hardware; these percentages guarantee a secure “recurring revenue stream,” and the equipment has patent protection. Cramer would wait for a decline before buying MASI.

CEO Interview: David Pyott Allergan (NYSE:AGN)

Cramer reiterated his theory that vanity keeps the American economy running, but adds his long-time favorites, Allergan, is no longer just about Botox and breast implants. The company’s overactive bladder treatment is now in Phase I and II, and David Pyott commented the company’s Esprit acquisition has been beneficial. He dismissed concerns about Johnson & Johnson developing their own version of the Lap-Band, a weight loss treatment, because “we have less than 1% penetration of this market,” and there is room for both companies to grow. Cramer said AGN is still among his favorites and it is headed higher.

Mad Mail: Boeing (BA), Starent (STAR-OLD)

Cramer urged viewers to ignore a Lehman Brothers’ downgrade and said the stock should be good for the next three to five years. He added Starent is a solid intellectual property play.

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