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NEW YORK (
) -- "The most important winner in yesterday's election was the American shareholder," Jim Cramer proclaimed to the viewers of his
TV show Wednesday, as he recapped what the election results mean for individual investors.
Cramer said the markets received not one, but two multiple enhancing events this week. First, the Republicans taking control of the House, and second, the
announcement that it's buying up to $600 billion in securities in order to make the dollar more competitive overseas.
Cramer explained that in 2006, the average multiple on a stock in the
was 18.6, but since the Democrats took over both houses of Congress, that multiple has slipped to just 15.1. This means that the Democrats have been causing stocks to trade at a discount, and that also means that the discount is likely to reverse going forward, he said.
Cramer singled out House Speaker Nancy Pelosi as the stock market's worst enemy. He said with Pelosi, and her anti-business policies like card check unions and cap and trade, on the way out, stock multiples should expand by a full point.
For a stock like
, a stock which Cramer owns for his charitable trust,
Action Alerts PLUS, an increase of one point in the stock's multiple would translate to a $22 pop. Cramer said this exercise can be repeated with just about every stock.
But Cramer said an even bigger winner in last night's election is the coal industry, which made solid investments in the campaigns of many successful candidates.
Cramer said the coal lobby's new "friends" in Congress could help it reel in the EPA and make more profits for shareholders. Cramer recommended
as his favorite in that group. He said the stock of Peabody could see $75 a share with the Republicans, at least partially, back in charge.
In the "Know Your IPO" segment, Cramer sat down with Daniel Birnbaum, CEO of
, manufacturer of a home beverage carbonation system, which began trading today.
Birnbaum demonstrated his company's system by making Cramer a carbonated soda beverage in just seconds. SodaStream makes the beverage machine, CO2 refills and also flavorings for over 100 types of soda. SodaStream is already popular in Europe, with 20% home penetration in Sweden among other countries.
Birnbaum said there are many benefits to the SodaStream system. First, it's convenient. Consumers no longer need to lug bottles or cans home from the store. It's also healthier, he said, as none of the company's favorings use high fructose corn syrup, and diet products all use Splenda sweeteners.
SodaStream is also economical, costing up to 70% less than store bough beverages, said Birnbaum. Finally, he said that SodaStream is eco-friendly, eliminating the need for bottles and cans, and replacing them with a single reusable pitcher.
Continuing on the eco theme, Birnbaum explained that CO2 canisters, which make up to the equivalent of 180 cans of soda, can be exchanged at retailers who carry the device, or exchanged online, making the product even better for the environment. SodaStream machines retail between $99 and $149.
Cramer called SodaStream an exciting story, and one he will continue to follow closely, but fell short of offering a recommendation.
In the "Executive Decision" segment, Cramer spoke with Mark Ellis, president and CEO of
, an oil and gas driller with a 7.7% dividend yield that's up a stunning 105% since Cramer first recommended it on May 20, 2009.
Ellis said Linn Energy has been benefiting from both higher oil prices and the company's impressive 25% organic growth. He said the company also has lots of "dry powder" to purchase new assets. Linn Energy is "well poised to continue to build its cash flow for shareholders," said Ellis.
When asked how Linn is able to deliver such great results while others struggle, Ellis said that not every company has the quality of assets that Linn does. He said the company derives 20% of its revenues from the Permian Basin region of the country, and is applying new technology to older oil and gas fields with great success.
Ellis was also bullish on the president's mention of natural gas in a speech earlier today. He said the whole industry will benefit if Washington gets behind natural gas. "There's clearly more supply than demand," Ellis said, and Washington can jump start the demand side of the equation.
Cramer said Linn is a great company that's consistently delivered results for shareholders. He gave the company his highest "buy, buy, buy."
Am I Diversified?
Cramer spoke with callers to see if their portfolios have what it takes. The first caller's portfolio included
National Oilwell Varco
Kinder Morgan Energy Partners
Cramer said he would bless this portfolio and was proud at the good work this caller did.
The second caller's top holdings included
Cramer said this portfolio was also perfectly diversified.
Cramer was bullish on
RF Micro Devices
He was bearish on
First Horizon National
Cramer said that the pending IPO of General Motors will be a bullish event for
. He said that with Ford firing on all cylinders and gaining share both here and abroad, it's clearly the better company.
With all the hype surrounding GM's IPO, Cramer said the event will have to lift both company's stock valuations. "Keep believing in Ford," Cramer concluded.
--Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer was long Apple.
Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."
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