Jim Cramer: Marsh & McLennan, Avon, Bausch & Lomb

(Corrects spelling of Marsh & McLennan in the headline.)

Marsh & McLennan Cos., Avon Products Inc. (AVP) and Bausch & Lomb Inc. should be bought by investors if their chief executive officers step down, Jim Cramer said on his ``Mad Money'' television program on CNBC.

Marsh & McLennan, the world's largest insurance broker, may rise to $32 a share if CEO Mike Cherkasky resigns because of his lack of knowledge about the company's units, said Cramer, a market commentator and former hedge-fund manager.

The company missed earnings estimates for its most recent quarter while its Putnam mutual-funds business is losing money, Cramer said.

Avon, the world's largest door-to-door seller of cosmetics, may advance to $35 a share if CEO Andrea Jung steps down because its most recent quarter was ``terrible'' and its Latin America operations are struggling while other companies are doing well in the region, Cramer said.

Cramer said Bausch & Lomb, an eye-care company whose cleaning solutions are used by one in four Americans with contact lenses, may rise to $55 a share if CEO Ronald Zarrella were to retire because the company didn't communicate with analysts or the public when it recently had to recall a product.

Bristol-Myers Squibb Co. (BMY), which makes top-selling drug Plavix, may advance to $26 a share if CEO Peter Dolan steps down because the company's patent protection on the drug was shortened by five years on negotiations with a Canadian company and Dolan's office was raided by the FBI, said Cramer, who called Dolan ``an idiot.''

Home Depot Inc. (HD), the world's largest home-improvement retailer, may rise $5 a share if Robert Nardelli resigns because of his ``arrogance'' and the company's ``Soviet factory-floor mentality,'' Cramer said.

Cramer also recommended Dell Inc. (DELL), the world's largest personal-computer maker, and 3M Co. (MMM), the maker of products ranging from Post-it Notes to electronic road signs, should chiefs Kevin Rollins and George Buckley step down.

Investors should buy Hershey Co. because the biggest U.S. chocolate maker has been ``unfairly'' criticized by analysts, Cramer said.

The company is near its 52-week low, while an analyst's prediction that sales would be hurt by hot weather and high gas prices is inaccurate, Cramer said.

The shares of American International Group Inc., the world's largest insurer, should be bought because its stock was depressed by an investigation by New York Attorney General Eliot Spitzer and its units have all rebounded, Cramer said.

AIG, whose auto insurance division is increasing its market share, is ``best-of-breed in the insurance space,'' Cramer said.

Other insurance companies that investors should buy include MetLife Inc. (MET) and Chubb Corp. (CB), while Montpelier Re Holdings Ltd. (MRH) should be avoided, Cramer said.

Investors should sell Aon Corp., the world's No. 2 insurance broker, because it missed earnings estimates for the most recent quarter and its overseas business has been declining, said Cramer.

TD Ameritrade Holding Corp. (AMTD), the third-biggest online brokerage, should be bought because of its recent stock buyback and an increase in trading on the Nasdaq Stock Market, Cramer said.

Cramer recommended Becton Dickinson and Co. (BDX), XM Satellite Radio Holdings Inc., Dean Foods Co. (DF), Nuance Communications Inc. (NUAN), Valero Energy Corp. (VLO), Consol Energy Inc. (CNX), China Life Insurance Co., Dow Chemical Co. (DOW), Cisco Systems Inc. (CSCO), Sunrise Senior Living Inc., Jack in the Box Inc. (JACK), Sonic Corp. (SONC) and Ford Motor Co. (F) in response to questions during the show's regular ``Lightning Round'' segment, and Qualcomm Inc. (QCOM), Apple Computer Inc. and Evergreen Solar Inc. in the shorter, ``Sudden Death'' round.

He also said Altria Group Inc. (MO) may advance to $85, then $100 once certain units are spun off. Intel Corp. (INTC) should be bought until it reaches $20 a share, then sold, said Cramer, who also mentioned Sirius Satellite Radio Inc.

Cramer told viewers to avoid Abraxis Bioscience Inc., Delek US Holdings Inc. (DK) and Ciena Corp. (CIEN) in the regular ``Lightning Round,'' and Brightpoint Inc., Weyerhaeuser Co. (WY) and Suntech Power Holdings Co. in the ``Sudden Death'' version.

He also said Vonage Holdings Corp. (VG)'s ``decline is starting to slow.''

Cramer said he owned Bristol-Myers and Qualcomm for his charitable trust.

To contact the reporter on this story: Danny King in Los Angeles at dking19@bloomberg.net

To contact the editor responsible for this story: Aimee Sullivan at asullivan@bloomberg.net.

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