Jim Cramer's Mad Money In-Depth, 10/15/07: Go Copart

by: Miriam Metzinger

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Tuesday October 15. Click on a stock ticker for more analysis:

Three Reasons to Buy Motorola (NYSE:MO)

Although CEO Ed Zander occupies a prominent place on Cramer's CEO Wall of Shame, Cramer would buy the stock ahead of its report on Wednesday for three reasons; first is the possibility Zander will "want to spend more time with his family" and resign, which is somewhat remote but would mean 4 points upside. Second, MO might finally have hit bottom, since the bar is now so low that "even a toddler or Zander could jump over it and make you money." The third and best reason is activist shareholder Carl Icahn called for a breakup of the company, and since MO is worth less than the sum of its parts, a breakup could mean an upside of 5 to 10 points.

Related: On Friday's Mad Money program, Icahn discussed a potential takeover of BEAS and recommended Motorola.


Cramer recommends Copart, "an e-Bay for junk cars" as a good stock for a down day, since the stock has 35% market share and keeps grabbing more. In addition, CPRT is a company with significant global exposure, and has not been hampered by declining accident rates in the U.S. In addition, Copart is buying back 25% of its shares, one of the highest buybacks Cramer has seen. He cautions viewers to avoid buying the stock after hours and to wait a week or two.

In the Bag: Saks (NYSE:SKS)

Cramer confesses he learned about multiple bids for Saks from reading Women's Wear Daily, and said the fact the stock didn't rise on Tuesday is a gift. He likes CEO Steve Sadove, whom he considers one of the most pro-shareholder CEO in the world, and notes tourists are flocking to Saks to take advantage of the weak dollar. Cramer predicts a buyer will pay $23 or $24, 5 points higher than Sak's current price, and that Saks will be worth more than Neiman Marcus.

Related: Chad Brand comments Sak's revival is worth watching.

Biogen (NASDAQ:BIIB), Hologic (NASDAQ:HOLX), PetroChina (NYSE:PTR), Focus Media (NASDAQ:FMCN), China Mobile (NYSE:CHL), Baidu (NASDAQ:BIDU)

While he doesn't usually suggest holding stocks after large bids, Cramer made an exception in the case of Biogen, because he thinks it will reach $100 from $82.51. He reiterated his recommendation of HOLX, which he started backing when it was 15 points lower. PTR's meteoric rise is "mind-boggling" and he suggests buying BIDU, FMCN or CHL instead.

Related: Lon Juricic believes Biogen Idec may be Carl Icahn's next activist target.

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