Cramer's 'Mad Money' Recap: Game Plan How-To

Cash From Trash

"There is good money in the garbage business," Cramer said. "That's because you can always count on Americans to generate tons of waste."

But the industry now has the added benefit of a changing political picture in Washington, D.C.

"The Bolsheviks are already in Congress and could storm the White House," Cramer said in reference to Democrats.

He expects the Democratic Party will try to introduce more business regulations. Although such factors may be bad for many stocks, that isn't necessarily so for the garbage sector.

"Some businesses thrive on regulation, and one of those businesses is trash," said Cramer.

Cramer's picks are Clean Harbors(CLHB Quote) and Allied Waste Industries(AW Quote).

"Clean Harbors is an end-to-end hazardous-waste play," Cramer said. It has been able to pass through price increases recently, he explained. "That's because customers can't fight it."

He also adds that Fidelity Investments is buying Clean Harbors shares, which should help push the stock price higher.

"Allied Waste is more boring; it's just a garbage company," said Cramer. "But it's one of best."

He explained that the company was caught in a virtuous circle of deleveraging. Because the company is using its strong cash flows to reduce its debt level, that improves cash flow and allows continued retiring of debt.