Equity Research and Investment Analysis

With a multi-year restructuring phase finally starting to show positive results, packaged foods maker Sara Lee Corp (SLE) has announced a great expansion to their existing share repurchase program. Following the sales of some of its slower growth units, Sara Lee will use the proceeds to buy back $2.5-$3 billion worth of shares over the next three years.

From a valuation perspective, we are in complete agreement with Cramer that WellPoint is certainly attractive as the fundamentals have continued to improve for this huge insurer. There are simply too many questions that are unanswerable for us to subscribe to the theory that WellPoint is part of a defensive strategy. Simply because a stock is attractively valued does not mean that it is not speculative as well.

On Thursday evening Cramer took a closer look at jobs creation or lack there of comparing China and the U.S., with a looming job report for September on tap for Friday morning. Job creation is an essential part of a fundamentally strong recovery. At this point, the U.S. continues to shed jobs month after month.

Cramer makes a great point by looking at the recent performance of Fortune Brands (FO) which is up 135% from its March lows and Procter & Gamble (PG) which is down about 20% year to date and only up slightly since the market bottomed. Never mind the fact that Fortune Brands has seen earnings fall through the floor recently, with two straight quarters of major surprises to the downside.

Procter & Gamble is a Cramer favorite because of the companies significant exposure to overseas markets. He believes that a devaluation of the dollar will likely be to PG's benefit.

Cramer is still advocating buying of trade down defensive stocks like McDonald's and Walmart. He also quickly responded to the critisism that are being thrown his way by Conedy Central's John Stewart.

Oracle has been flying under the radar recently as they have been picking out there favorite small software makers and buying them up while they are strapped for resources. This seems to us to be a win-win for Oracle and the small companies that might otherwise have to declare bankruptcy. Oracle is strengthening is product offerings and doing it relatively cheaply.

Procter and Gamble reported a great quarter for their fiscal 4Q. We have downgraded them to a Hold as the price has seen some recent appreciation, but we believe there is value in managements aggressive efforts to continue to grow.