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NEW YORK (
) -- "Don't try and game health care reform," Jim Cramer cautiously told viewers of his "Mad Money" TV show Wednesday.
He told investors to forget about President Obama's health care speech tonight, and instead focus on the real story, the H1N1, or "swine flu," virus.
Cramer said while everyone's talking about Obama's proposed reforms, the fact remains that any legislation that's actually proposed will not have any serious bite that could harm health care stocks. He likened Obama's position to being "third and long, hoping for a field goal" in football. He said there will be no touchdown dance in the White House.
Because of these weakened reforms, Cramer said it's OK to buy health care stocks, including HMO's like
, a stock which he owns for his charitable trust,
Action Alerts PLUS. Cramer said he also likes device makers such as
St Jude Medical
What's really going to move healthcare stocks? Cramer said its swine flu, an epidemic that will hitting hard this flu season. He said the way to play it is with
, another Action Alerts Plus name, and not with speculative names such as
While Gilead derives 80% of its revenue from treatments for the HIV virus, the company also licenses Tamiflu, one of the few drugs to combat swine flu. According to its licensing agreements, the company makes more money from Tamiflu as sales increase. Cramer said to watch this drug hit the company's bottom line hard as the flu hits.
Cramer also advises avoiding HMOs with a large exposure to Medicare, as the swine flu often hits the young and the elderly. He said while Wellpoint only has a 10% exposure to Medicare, others such as
have almost a third of their payouts headed to the program.
Cramer welcomed David Aldridge, president and CEO of mobile chipmaker
, to get the latest take on Cramer's "mobile Internet tsunami" theory of exploding growth in the mobile Internet market.
Aldridge confirmed that Skyworks' outlook "has gotten much better" as demand for smartphones and small netbook computers continues to accelerate. He said these devices are being promoted more and more by the carriers, which can charge more for increased data access on their networks.
Aldridge also commented on some of Skyworks' other businesses, such as supplying chips for smart grid power devices such as smart-power meters that can alert consumers and appliances of power usage. He also noted that the company makes chips for many of the 400 million devices that are being produced with embedded WiFi technology.
In a second interview, Cramer sat down with Wes Card, president and CEO of apparel maker and retailer
Jones Apparel Group
, for the latest read on the retail sector and the health of the American consumer.
Card said that Jones has been focused on a conservative and cautious approach throughout the market turbulence, and has been able to weather the storm quite well. He said the company has been revamping its balance sheet, controlling both inventory and expenses, and closing 250 underperforming stores at a savings of $20 million in operation costs.
Because of its fiscal discipline, Jones has also been able to grow, and is today launching it's Rachel Roy line of clothing at
. Card said Roy is the company's first foray into designer retail but noted that the brand is being met with much buzz via the web and social media outlets.
Card also took at shot at the news media, stating that they're too negative on the retail sector and too focused on top-line growth and same-store sales. He said at Jones, the company is actually able to make more money selling less inventory at full prices, than it would selling more inventory, but then having to discount much of it. He said the media needs to focus on the fundamentals.
Cramer continued to throw his support behind Skyworks, and all of the mobile Internet sector.
Am I Diversified?
Cramer played "Am I Diversified" with callers to see if their portfolios have what it takes. The first caller's portfolio included:
Bank Of America
Cramer called this portfolio simply "magnificent."
The second caller's top holdings included
Cramer said this portfolio, despite the fact it concentrates on stocks starting with the letter "G", is also diversified.
The third caller had
Bank Of America
as their top five stocks.
Cramer said this portfolio was also perfectly diversified.
Cramer was bullish on
He was bearish on
Clean Energy Fuels
-- Written by Scott Rutt in Washington
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At the time of publication, Cramer was long Express Scripts, Gilead Sciences, Bank of America, Goldman Sachs.
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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