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Thursday, August 24, 2006

Cramer's MAD MONEY Recap (Aug. 24, 2006)

Stock Tickers: DA, TR, CHTT, MTXX, PRGO

Cramer tonight went to the Supermarkets and the Drugstore to see where investors can make money when the going gets tough and the tough get going.

The way to make money right now is knowing how the money managers think and to obey the business cycle. Since we are in a bad cycle and it will be that way for the next 3 months. He still likes BUD, K, KMB, PG and others but they are obvious and already up. Cramer says the hidden names in the supermarkets to make money on are are Dannon (DA) and Tootsie Roll (TR). He said he likes Hain Celestial (HAIN), but it is too speculative. DA is up 30% since he first liked it but he still likes it. TR is much smaller with a $1B market cap and it is in the cusp of the turnaround with about 8% growth and may be a true secular growth story.

In a call-in question Cramer said Hansen (HANS) is basically played out since they only met expectations. Cramer said he even rather be in Pepsi (PEP) than HANS. In another call about Hershey (HSY) afterthe recent offering announcement, Cramer said he actually thinks the stock is cheap even though they did the "borrow money to buyback stock" but prefers DA ot TR.

TR rose as much as 1.5% to $28.15 and DA rose 0.9% to $28.52 in after-hours trading right after mentioning these.

In the drugstore Cramer said the undiscovered and less exploited plays are these Chattem (CHTT), Matrix Initiatives (MTXX) and Perrigo (PRGO).

Jon C. Ogg
August 24, 2006

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