Cramer Looks at Defensive Stocks for Bargains

On tonight’s MAD MONEY on CNBC, Cramer said that the traders are selling everything and Cramer said he is looking at sub-prime like the plague because no lender can be immune.  He thinks others will recover though and some were marked down for wrong reasons.  Cramer says he is NOT going to do a medical device company tonight because the tape is ugly and because they are selling out of everything and anything that is tied to the S&P 500.

In fact, ALL 20 of the FIRST-LINE DEFENSIVE names I gave previously were down on the day, as were EVERY ONE of the 15 SECOND-LINE OF DEFENSIVE STOCKS.  That is truly throwing the baby out with the bath water.

Cramer said that you really need to consider sitting on your hands until the dust settles.  You have to consider buying these defensive names according to Cramer, but you have to make sure you are looking at damaged stocks rather than damaged companies.  He still maintains that you can’t buy the brokers until Friday. 

Cramer says there is nothing more defensive than cigarettes.  Altria (MO) is breaking up and he notes that it already went when-issued today and he said the when-issued (MO-WI) shares are his #1 Pick Right Now.  We discussed this today, plus the implications of how that will affect the larger DJIA components.  Cramer wants you in the MO-WI shares ahead of the event but he doesn’t want you in the KFT shares.  He doesn’t hate KFT, he just doesnt love it and in food he likes General Mills (GIS), Kellogg (K) and Heinz (HNZ). Cramer thinks the MO-WI shares are actually about $10.00 Undervalued.  He likes the dividend at 4.4% after the spin-off and the pure-play on tobacco, and he likes that you can compare these directly to competitors now in tobacco.

Jon C. Ogg
March 13, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.