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NEW YORK (
) -- "If I was a broker, I'd be telling my clients to sell, " Jim Cramer told
viewers Wednesday, as he explained the thinking behind today's post-election selloff.
Brokers are always looking for excuses to get their clients trading so they can earn more commissions, and Tuesday's presidential election provided them with plenty.
First, there was an expectation by some in the markets that Mitt Romney may actually pull off a win, and those trades in coal, defense and health-care stocks are now being unwound in a hurry. Second, there are still worries in Europe, as Germany announced Wednesday that even its strong economy may be showing signs of a slowdown.
If those two excuses don't convince a client to sell, Cramer said there's still the elephant in the room, the fiscal cliff. Nothing changed in last night's election, he noted, the President is still the President and the Democrats and Republicans still control their respective houses of Congress.
That means the fiscal cliff is just as likely to occur today as it was last week. Thus it would only be wise, a broker would say, to take some profits ahead of what could be increased capital gains taxes next year.
That thinking would lead brokers to advise selling the big winners, said Cramer, stocks like retail and of course,
, a stock he owns for his charitable trust,
Action Alerts PLUS.
That would also lead to selling in the big dividend stocks including
because as both of those companies' dividends would be affected by the fiscal cliff.
"Raise cash and avoid Europe" are likely the mantras being repeated by brokers nationwide, said Cramer, which makes today's selloff totally logical. It's just too easy for the brokers to pass up, he concluded.
In the "Executive Decision" segment, Cramer once again spoke with Alan McKim, chairman and CEO of
, a company whose stock rose 3% Wednesday after the company reported strong earnings. Cramer last spoke with McKim last week after Clean Harbors announced the acquisition of privately held
McKim said Clean Harbors currently has over 700 people working to help clean up after Hurricane Sandy. He said his company is providing logistics support for fuel and generators as well as actual cleanup services for governments, corporations and private individuals.
McKim also noted Clean Harbors maintains a standby response group for disasters just like Sandy or the Macondo oil spill in the Gulf of Mexico. He said that group is constantly providing training for disasters and is always at the ready when needed. Clean Harbors has a unique advantage because it has people and systems specifically for disaster cleanup work.
Another area contributing to earnings for Clean Harbors continues to be oil and gas refineries. McKim said his company works with 145 refineries in the U.S. and refiners continue to be a strong market for the company as big investments are being made in the space. He said that all 11 of Clean Harbors' landfills have been busy processing waste products from the oil and gas boom.
When asked whether the election results will hurt his company, McKim said he's hoping for unified federal guidelines on hydraulic fracturing from President Obama so the oil and gas industries can standardize and move even faster with their growth.
Cramer said that Clean Harbors remains a company with experience and opportunity for investors.
Pickings From the Rubble
Way too many people thought Mitt Romney was going to win, Cramer told viewers, and those investors are now leaving the building. But are there any stocks worth buying amongst the Romney rubble? Cramer said there are.
Cramer said he's not a fan of the coal stocks, which had run big hoping for a Romney victory. He said this group has no earnings and no safety net. Cramer would only recommend railroad
if investors feel export coal to China may be on the mend.
Cramer said he's also not a fan of the defense stocks, nor those that would have benefited from getting tougher on Chinese imports, such as chemicals, tires and steel. He was also not a fan of the retail names, like
as these stocks have run big and are facing lower disposable consumer income going forward.
Cramer would be a buyer of the oil and gas names into weakness, however, as he sees no reason for them to fall further. He likes
. Cramer was also bullish on the banks, those that are actually making money, as well as the HMOs, but not any hospital stocks.
Cramer also recommended owning gold, as well as packaged goods makers that sell overseas like
Johnson & Johnson
Finally, Cramer said he likes
as it helps the Northeast rebuild from the hurricane, as well as
, which has gotten cheap going into the cold, winter season.
In the Lightning Round, Cramer was bullish on
Cramer was bearish on
In the Pipeline
In his second "Executive Decision" segment, Cramer spoke with Dr. Phillip Frost, chairman and CEO of
, a speculative biotech company with no less than six exciting new products under development.
Frost talked about his company's efforts in the Vitamin D market, which is a $2.5 billion market in the U.S. He said that Opko's new Vitamin D test can be done in the doctor's office, avoiding the need to send a sample to a lab for analysis, which saves both time and money.
Frost also talked about Opko's new prostate cancer screening, called a 4K Score. He said that with a simple drop of blood, the 4K test provides patients with a number determining the likelihood that they have prostate cancer and how aggressive that cancer might be. He said the test can eliminate the need for millions of needless biopsies preformed every year. The test is already on the market in the U.K. and could reach the U.S. by early 2013.
Cramer said Opko remains one of his favorite long-term biotech stories.
Am I Diversified?
In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to
to see if investors' portfolios have what it takes for today's markets.
The first portfolio included:
Cramer advised selling Sony and Hewlett and adding
The second portfolio's top holdings included:
Sirius XM Radio
BioMed Realty Trust
Cramer said he'd bless this portfolio, even though BioMed and Kimco are both REITs, since they operate in different sectors.
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-- Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL and BMY.
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