Cramer's Recession Draft Picks (PEP, MHS, MO, NOC, MCD, PG)

On tonight’s MAD MONEY, Jim Cramer said he was equating a stock picking portfolio like a fantasy football draft.  He has been discussing rising unemployment, houses being lost, and a recession coming for months.  As far as the FED cutting rates, he thinks the FED will only cut rates by 0.25% this month instead of the 0.50% rate cut that is needed.  The Fed governor speeches today noted that the ‘weak jobs numbers’ are a trend rather than a one-instance. Cramer said that he is creating a draft list of stock picks like a fantasy football team that he thinks can make money regardless of the Fed being late on policy.  On Friday, I gave a huge list of 17 defensive stocks that we edited from prior defensive stock lists.  Here are some of Cramer’s picks:

A defensive lineman draft is Pepsico (NYSE:PEP), and another is Medco Health (NYSE:MHS) for cost controls in medical and drugs.  Altria (NYSE:MO) is also on there with a 4.4% yield. Northrup Grumman (NYSE:NOC) is also on his list and the business has no dependence on the Fed.  McDonald’s (NYSE:MCD) is on his list, and Proctor & Gamble (NYSE:PG) made his list tonight.  Four of Cramer’s Six Picks were on my list from Friday morning.

Jon C. Ogg
September 10, 2007