Jim Cramer's Mad Money In-Depth, 11/2/07 Avon: A Thing of Beauty

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Includes: AGN, AMFW, AP, CLX, CSCO, DSX, GFIG, HOLX, TKLC
by: Miriam Metzinger

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Friday November 2. Click on a stock ticker for more analysis:

Avon Products (NYSE:AVP), Clorox (NYSE:CLX)

While she once graced Cramer's Wall of Shame, Avon CEO Andrea Jung has redeemed herself by growing AVP's international business, "making good long-term decisions" and keeping investors informed, said Cramer. By replacing inefficient representatives in China and making other essential budgetary decisions, Avon "can spend less to get the same or better results." Clorox is cleaning up its act and reported a great quarter thanks to international growth. Cramer sees potential for the company's laundry and bleach products in China and Brazil.

Game Plan: Tekelec (NASDAQ:TKLC), Cisco (NASDAQ:CSCO), Hologic (NASDAQ:HOLX), Allergan (NYSE:AGN), Foster Wheeler (FWLT)

Cramer recommends TKLC, a "nice little telephone equipment supplier," which is making a comeback after cutting expenses and spinning off its switching business. While the company faces competition from Cisco, which Cramer also rates as a buy ahead of its earnings report, he notes TKLC has a clean balance sheet, is buying back stock and may be taken over by Ericsson or a similar company. Cramer would buy HOLX and AGN, but with Allergan, he recommends waiting for a selloff before buying, and would apply the same strategy to FWLT. Cramer would sell stagnant CBS in favor of ED or VIA-B. GenBrand bought TKLC's switching company last spring.

CEO Interview: Simeon Palios, Diana Shipping (NYSE:DSX)

Simeon Palios admitted the dry bulk market is a "very dangerous" place to predict future rates, but added the short-term picture looks good for the company given cargo movements and the demand for ships. "I like the stock, but am not hitting the bull button," Cramer said. "That was not the reassurance I was looking for."

Related: Until Friday, Cramer was bullish on Diana.

CEO Interview: Mickey Gooch GFI Group (NYSE:GFIG)

With other financials in the doldrums, GFIG was up 8 points on Friday. Mickey Gooch said the company benefits from market volatility; "We're dealing with the professional markets," including large banks and securities houses. Those who worry about credit problems can "buy GFI's credit default protection."

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