This article originally appeared Feb. 26
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"It's all out war between Obama and the healthcare companies," Jim Cramer told the viewers of his "Mad Money" TV show Thursday.
He said that Obama's new healthcare plans completely changes the game in ways never thought possible.
"Obama is not Clinton," said Cramer, "Obama wants to turn healthcare companies into non-profits." He said it's clear no company is safe because Obama wants cuts in healthcare costs across the board.
Not matter what segment they're in, Cramer sees tough times ahead for healthcare providers like
, insurers like
, and even drug companies and biotechs like
Cramer said the winners have turned into big losers in just 24 hours. Furthermore, he said if health care can get attacked like this, anything could be next.
In a purely defensive posture, Cramer again advised investors to keep any money they need for big outlays in the next four years in cash or CDs. He said investors must stay diversified.
Cramer also said investors need to stick with companies that can raise their dividends, companies like
, two stocks under heavy selling pressures, but also ones benefiting big from falling raw costs.
Cramer said he's also still a big fan of gold and oil in this worsening market.
An Oil Play
What's the best way to play the stabilization of oil prices? Cramer said it's with
Permian Basin Royalty Trust
, an energy master limited partnership that's taken a beating but is now poised for recovery.
Cramer recommended selling Permian Basin on Nov. 20 at $15.73 a share, with oil hovering at $50 a barrel. Since then, the stock has fallen 49%, along with oil, and has slashed its dividend payout from 27.8 cents a share to just 4.3 cents a share.
But Cramer said Permian Basin and oil have reached a bottom. He said while natural gas prices remain unstable, Permian Basin has only 33% exposure to natural gas. Oil, however, is showing signs of stabilization and recovery, and that benefits Permian Basin.
Just off its 52-week low, Cramer said now is a good entry point for the stock, although he advised not paying more than $9 a share.
"We are keeping
Las Vegas Sands
in the Sell Block," Cramer told viewers. He said this despite the company getting an outperform rating from an analyst at Sanford Bernstein.
Cramer said Las Vegas Sands was up 31.9% on today's upgrade, and that's the perfect time to sell if you haven't already. Cramer turned bearish on the casinos on Jan. 17, and since then, shares of Las Vegas Sands have plummeted 96%, along with other casinos like
, down 77% and
International Game Technology
Cramer said the Bernstein analyst is just dead wrong when he says there will be a recovery at Las Vegas Sands, or any other casino, in 2010.
He said no one wants to gamble in tough economic times, and that's evident by the Sands' declining revenue 10 months in a row. The company's new casino in Singapore is experiencing major cost overruns and it needs $2 billion in additional revenues to meet its debt obligations.
Cramer said that the casinos aren't even worth a roll of the dice and that he'd stay away from them.
Cramer told a viewer to ring the register on
, saying he wanted the viewer out of that stock tomorrow.
Cramer was bullish on
Del Monte Foods
He was bearish on
AK Steel Holding
Valley National Bancorp
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At the time of publication, Cramer was not long on any stock.
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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