Cramer's TheStreet.com TV

Return to Article

RealMoney Radio Recap: Election Fright

TheStreet.com Staff

"This election has become why stocks go up or down," he said.

Lockheed (LMT Quote) is getting "killed" today, and big pharma is down as well, Cramer said. In addition, HMOs should be much higher.

To Cramer this means that when people wake up on Nov. 8, the Democrats are going to be in control of both houses.

People should be thinking about whether they have the "ability to weather the pain on the possibility of a Democratic takeover," he said. They might need to take some off the table and then buy it back later on.

"Be aware of anything big -- big pharma, big HMO, big defense, big oil. These are all targets," Cramer said. "They require caution until the Monday before the election."

Although "it can be pretty intimidating sifting through stocks and figuring out which ones you want to invest in," there are opportunities out there, he said. "You just have to be prepared and have conviction."

For example, when one of Cramer's "Mad Money" TV show viewers asked him about Joy Global (JOYG Quote) last night during the lightning round, he defaulted to Caterpillar (CAT Quote).

Cramer said there was a time when he would have called Joy Global the "best in show," but then "it missed a quarter down the road, and the Street turned on it."

"It was some turn," he said. "The stock lost more than half its value from the miss and from the errant May Fed tightening."

After recommending a swap into Caterpillar, another viewer emailed Cramer Thursday morning and commented on how "mining companies are ramping up production at an unprecedented rate to mine lower grades," which requires a larger number of replacement vehicles and aftermarket services.

Because there are only two companies in this sector -- Joy Global and Bucyrus (BUCY Quote) -- the viewer asked how Cramer could not recommend Joy Global.

Cramer believes that the viewer is right and that there is a "tremendous scarcity of assets in this group."

Although he wanted to be consistent with his Monday recommendation of Caterpillar, "things are still smoking" at Joy Global and "the stock is worth recommending," Cramer said.

The real lesson here is that there are opportunities, Cramer said. "Stay at the table."

Out of the Woods

After spending five years in the "wilderness," Comcast (CMCSA Quote) became "one of the big ones, or among the top-five performers in the stock market for two decades," said Cramer.

"The Street lost faith in these guys and decided that the bid for Disney (DIS Quote) was just some sort of desperate gambit to grow when growth was tapped," he said.

Comcast went through a period where it had to hear how it was being beaten by Verizon (VZ Quote) and EchoStar (DISH Quote), Cramer went on to say.

"They were considered buffoons for trying to make a plain old cable business into a real growth story," he said.

But now, it must be "sweet" to work there. The triple play, technology and service are all driving the stock, and "the growth of Adelphia is ahead of them," Cramer said.

It is not too late to get into Comcast, he added. "There's too much growth ahead, too much profitability and too much belief."

"The future is so bright."

Every week readers of TheStreet.com vote on the stock they most want Cramer to talk about. This week's "Cramer on Demand" stock was Norfolk Southern (NSC Quote).

The company reported a "very good" quarter on Wednesday, he said. But the stock has moved up too much, and Cramer only recommended pulling the trigger on a pullback.

Cramer's Callers

As Black & Decker (BDK Quote) reported a good quarter today, Fortune Brands (FO Quote) should as well, Cramer told a caller.

"I believe Fortune Brands is going higher," he said.

Responding to another caller, Cramer said he did not agree with a recent downgrade issued to Arena Pharmaceuticals (ARNA Quote).

People should be in this stock for its cancer and obesity drug, as "near-term earnings have never been an issue for biotech stocks," he said.

"When you see this type of decline in such a stock, you must pile up on it," Cramer advised.

Chipotle (CMG Quote) is "here to stay and is very well run," he told his next caller.

In regard to Lennar (LEN Quote), Cramer told a caller it is a "great homebuilder."

But because it's had a big run, Cramer advised taking a little off the table and allowing the rest to run.

Cramer told another listener he "vastly prefers" Goldman Sachs (GS Quote), which he owns for his charitable trust, Action Alerts PLUS, to Wells Fargo (WFC Quote).

Here's your chance to pick the stock you'd like me to feature on my radio show Nov. 2. AT&T Corning Monster Netflix Pulte Homes Whole Foods

REMEMBER to listen in on Thursday for my take on the stock that wins this poll!