Jim Cramer's Mad Money In-Depth, 2/1/08: Gushan Energy, Gushing Profits

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Includes: AABA, BKD, C, COF, CSX, CVS, FCX, GU, MCD, MER, MSFT, NYX, TJX, UNP, WMIH
by: Miriam Metzinger

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Friday February 1. Click on a stock ticker for more analysis:

Freeport (NYSE:FCX), McDonald's (NYSE:MCD), CVS Caremark (NYSE:CVS), TJ Maxx (NYSE:TJX), Union Pacific (NYSE:UNP), CSX (NYSE:CSX), Burlington Northern, Capital One (NYSE:COF), Merrill Lynch (MER), Washington Mutual (NYSE:WM), Citigroup (NYSE:C), NYSE Euronext (NYSE:NYX), Microsoft (NASDAQ:MSFT), Yahoo! (YHOO)

Formerly slow sectors are finally moving, and Cramer would buy retail stocks, homebuilders and banks. He even removed Wal-Mart CEO Lee Scott from his Wall of Shame, and said, "It doesn't matter who runs Walmart, because people shop at Wal-Mart during times of economic slowdowns." Although he has hated Capital One, the stock now looks good to him because of lowered interest rates. Bad news isn't even touching some stocks like Freeport, which is up 20 points since its lackluster quarter. Cramer would also buy MSFT on its bid to buy Yahoo. He also likes FCX, MCD, CVS, TJX, UNP, CSX, COF, MER, WM, C, NYX, MSFT, YHOO.

Gushan Energy (NYSE:GU)

While Chinese stocks have not been so popular lately and the interest in bio-diesel fuel has not yet caught on the States because of a “politically mandated marriage to ethanol,” Cramer thinks both will be hot and is bullish on Gushan Energy. This under the radar stock produces fuel from trash such as animal fats and vegetable oils, and plays on the trend on the rising middle class in China and the rising demand for cleaner fuels. The Chinese government has mandated that 15% of fuel must be renewable by 2020 and Gushan has a 48% increase in earnings in year-over-year and a 20% growth rate.

Related: Debra Fiakas says Gushan is not a typical corn-for-gas story.

Black & Decker (NYSE:BKD)

Cramer says BKD is the stock with the best risk-reward potential and is a great play on the potential recovery of housing, when people will once again be making purchases to renovate their homes. Although this is a hated stock, all the negativity is "baked in" and it should not go any lower than $65. Cramer also thinks this $7.3 billion company could be an attractive takeover target.

Interview with Brian Ferguson, Manager of Dreyfus Premier Strategic Value Fund

When it comes to mutual funds, Cramer likes growth, and welcomed Brian Ferguson who discussed his fund's focus on stock valuation and proven momentum which was responsible for the fund's 43% gain. He agreed with Cramer that now may be the “single greatest moment” since 1990 to by financials, and Cramer recommended Dreyfus as a great aggressive growth fund.

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