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NEW YORK (
) -- "Some things make the markets go higher, some things make the markets go lower," Jim Cramer told the viewers of his "Mad Money" TV show Monday.
In the case of today's special election in Massachusetts, Cramer said if the Republicans win, the markets are headed decidedly higher.
Cramer called today's rally "the rally from tomorrow," as he and many expect a Republican upset in the Massachusetts Senate race. What does a Republican win mean for the markets? Plenty, he said.
Cramer explained that a Republican win in Massachusetts means the Democratic majority in the Senate would be broken, stopping cold many of President Obama's anti-business agenda items such as health care reform, cap and trade, and union reforms. "A Republican win takes Washington out of the stock market equation," he said.
With Washington surely headed towards gridlock, Cramer said a rally would continue in not only the health care stocks, but also in the natural gas stocks, bank stocks and any company with a large union.
"We're not a political show," Cramer told viewers, "but wouldn't it be nice to stop worrying about Washington?"
High on Intel
In the "Off The Charts" segment, Cramer went head to head with colleague Dan Fitzpatrick over the chart of
, a stock which sold off sharply last week after reporting better than expected earnings.
Fitzpatrick noted that after trading in a narrow range for quite some time, Intel ran up ahead of its conference call, triggering investors to sell off on the news. He said the same thing happened in October, ahead of the company's third-quarter results. However looking at the larger picture, Fitzpatrick noted that Intel is seeing higher highs and higher lows, and he feels the stock is a buy under $20 a share.
Cramer agreed with Fitzpatrick whole heartedly, proclaiming himself an "Intel-a-holic." He said that at no point in history has the company been in better shape, or he more bullish on the stock, which is why he owns share for his charitable trust,
Action Alerts PLUS.
He said the company is firing on all cylinders, helped in part to strong sales in the netbook and mobile markets, as well as an upgrade cycle in PCs and business servers.
Cramer called Intel "the best semiconductor on Earth," citing its strong balance sheet, solid execution, cheap multiple and seemingly hobbled competitors. He said the company trades at just 12 times earnings compared to the 10 and 25 times earnings it historically fetches.
Cramer also noted the company's 3% dividend yield is one of the highest in the
Dow Jones Industrial Average
. He said Intel's earnings beat will not be an isolated event.
There's been a lot of talk recently about upgrading the country's electrical grid to so-called "smart-grid" technology that would allow utilities to manage the way they deliver power thanks to two-way digital communications. But can investors make money off the technology? Cramer said they can.
On Oct. 19, Cramer highlighted smart power meter manufacturer
. Since then, the stock has risen 27%.
But Cramer said there's also another way to play the smart-grid market with
, a stock which he owns for his charitable trust,
Action Alerts PLUS.
Cramer said smart-grid technology will be a $200 billion business worldwide in 2015, and that plays right into the hands of Cooper, which derives 88% of its revenues from electrical products. The company gets 61% of its sales from large industrial companies, many of which had stalled their construction efforts, but are now slowly entering recovery mode.
Cramer said smart-grid products are a large enough part of Cooper's business to make a difference, or "move the needle," when it comes to the company's earnings. Management estimates it could earn up to $3 a share in 2010 with just a 5% boost in its volume. With a strong balance sheet and a history of smart acquisitions, Cramer said Cooper is great way to play the coming revolution in energy efficiency and delivery.
Speculative Energy Play
Continuing on his smart energy grid theme, Cramer recommended little known
, as a speculative way to play the coming smart-grid revolution.
Like its rival Itron, Telvent also makes smart energy meters, but the company also has a pastiche of other businesses, including oil and gas delivery, transportation and agriculture systems. Cramer said Telvent has its hands in everything that is the future, and should do well as the U.S. builds out its energy and natural gas infrastructures, and as agriculture strives for even greater efficiencies.
With a $5.1 billion backlog of future sales, Cramer said Telvent will also benefit from more and more federaql stimulus money. The company trades at just 13 times its earnings, but has a 16% long-term growth rate.
Cramer said he hasn't recommended Telvent in the past because the company was largely owned by a Spanish conglomerate. However he said that conglomerate recently divested part of its position and currently owns only 40% of the company. Trading at just off its 52-week high, Cramer said Telvent is one speculative stock worth a second look.
Cramer was bullish on
Chipotle Mexican Grille
He was bearish on
Hartford Financial Services
Cramer said that
, a stock which he owns for his charitable trust,
Action Alerts PLUS, remains his favorite mobile Internet stock, and he feels that
will soon follow Apple's amazing run higher.
-- Written by Scott Rutt in Washington D.C.
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At the time of publication, Cramer was long Intel, Cooper Industries, 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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