RealMoney Radio: A Chevron Proposition

Filling in for Cramer, Farnoosh Torabi and Gregg Greenberg mull the election's possible effect on oil.
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Americans need to "get out and vote because it counts," Gregg Greenberg and Farnoosh Torabi said on Jim Cramer's

"RealMoney" radio show Monday.

In a pre-Election Day special, Greenberg and Torabi, reporters at

TheStreet.com

, filled in as guest hosts for Cramer.

Although people might believe that their individual votes don't matter, they do, Greenberg said. As an incentive, he suggested canceling the Fourth of July as a national holiday and making Election Day one, so people wouldn't have to hustle in between work to vote -- and more importantly -- people wouldn't have an excuse not to vote.

However, Torabi, quoting former U.S. president Calvin Coolidge, pointed out how "the business of America is business," and vetoed Greenberg's suggestion.

Switching the topic to oil, Greenberg and Torabi discussed what might happen if the Democrats win the election and how that might sway the market.

Giving a primer on oil, Torabi said that crude is down for December delivery. However, oil profits surged as third-quarter earnings for

Exxon Mobil

(XOM) - Get Report

totaled $10 billion and reached $5 billion for

Chevron

(CVX) - Get Report

.

If California's Proposition 87 a "special tax on oil producers in the state" is passed it will affect Chevron because it is the largest oil producer in California, Greenberg said.

However, implementing the tax would create a lot of problems, he said.

"If you're going to tax oil, oil companies are going to stop looking for it," Greenberg said, adding that the proposition is a "predatory tax" in his opinion. "Oil companies are making money because of demand from India and China. It's not Chevron's fault," he said.

Back on his Oct. 30 "Mad Money" TV show, Cramer said he had "little doubt" that on Nov. 7, voters in California will pass Proposition 87, which "seeks to lessen dependence on foreign and domestic oil."

Chevron said this initiative might cost the company $200 million, Cramer said on the show. The measure would impose a tax on oil production. It seeks to raise $4 billion to develop and promote alternative energy technologies and promote the reduction of petroleum use.

After the "excellent" Chevron quarter and the company's "big find" in the Gulf of Mexico, it will be time to buy the stock Wednesday or Thursday (postelection), when it gets hit by this initiative, Cramer continued.

If Proposition 87 passes, and it is expected to, analysts who cover Chevron are going to have to cut numbers, he explained. "When it gets put on sale, people should buy it."

Aside from improvements in Big Oil's prospects, another reason to buy Chevron is that it had the "biggest earnings upside surprise," almost a 15% beat, Cramer said.

Plus, the company has "stronger marketing," he said. "It's not burning money any more; now it's spending it."

Also, it's still cheaper than Exxon Mobil and has a "hefty" 3% dividend, Cramer said. In addition to the yield, Chevron has a "sweet buyback," which shows that the company is confident and has "very little debt," he said.

"The last and best reason to buy it is that Chevron has great long-term prospects," Cramer said. "It has taken us out of the House of Pain after its great quarter."

To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.

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