RealMoney Radio Recap: Dems Won't Damage Oil

Cramer says that the election won't make a big difference to big oil. Also, welcome back, class-action.
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With the Democrats having a hold on the House and maybe the Senate, people should brace themselves for "nasty subpoenas" in the oil sector, but nothing else, Jim Cramer said on his

"RealMoney" radio show Wednesday.

Although the Democrats might try to "tack on higher taxes to the oils" and "make noise" for a windfall tax, these taxes won't stick, he said.

"The Democrats know that these guys simply won't drill if they get penalized too much, and we can't have that," Cramer said. "There will some noise, but in the end nothing will hurt these guys."

In fact, oil stocks have actually been rallying, he said.

Valero

(VLO) - Get Report

is one such stock.

However, although the company's numbers should be good, Cramer believes that it will be a target. After all, Valero is the No. 1 refiner, he said.

Dems at the Head of Class-Action

Although this is not a political show, where the left vs. right is discussed, whenever there is a big election with a political shift, it is important to focus on the financial realities of such a change, said Cramer.

"One such reality is class-action lawsuits," he said. "One area that nobody's talking about with the Democrats coming in is the repeal of the reform against class-actions."

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Cramer said he fears that one of the "unintended consequences" of the Democrats taking over the House is that the people who bring these lawsuits are going to be back, and drug stocks are going to be sued.

In addition, "we will not have any asbestos reform," he said. Today there is an article in

The Wall Street Journal

that says the asbestos companies are coming out of bankruptcy at the wrong time. But Cramer doesn't agree.

"By getting out of the asbestos morass before this change in Congress, these guys saved themselves," he said.

On a separate note, Cramer urged market players to use the recent upgrade in

Whole Foods

(WFMI)

to lighten up on the stock.

Also, as California has decided it is not going to penalize tobacco companies, there's been a "terrific" rally in tobacco stocks, Cramer said.

Altria

(MO) - Get Report

, which he owns for his charitable trust,

Action Alerts PLUS, is "going up here and is not done," Cramer said.

With the new makeup of Congress, there are two areas to look at to make money on a long-term basis: homeland security and mortgages, he said.

In terms of domestic security, Cramer said that the Democrats like to spend just like Republicans when it comes to security -- only they like to spend locally, not internationally.

Thermo Electron

(TMO) - Get Report

is going to be a "real winner" here as a bomb-detection play, he said.

In addition,

American Science & Engineering

(ASEI)

, while not Cramer's favorite, is also good, he said.

He said he also likes

L-3 Communications

(LLL) - Get Report

and

FLIR Systems

(FLIR) - Get Report

as inspection plays.

In terms of mortgages, Cramer said that

Fannie Mae

(FNM)

is one of the few stocks that is not done going up.

Moving on, he said

Barnes & Noble

(BKS) - Get Report

and

Borders

(BGP)

are "good places to be."

And if people like

Verizon

(VZ) - Get Report

and

Comcast

(CMCSA) - Get Report

, they should love

Cisco

(CSCO) - Get Report

, Cramer said.

While Cisco should report a good quarter, Cramer is hoping it won't so that a buying opportunity can present itself.

"

Humana

(HUM) - Get Report

is down 13 straight points, and that's not right," Cramer added. "Enough. It's time to buy Humana, not sell it."

Cramer's Callers

Google

(GOOG) - Get Report

is not dependent on the election outcome, but "is a growth story," Cramer told a caller.

If you can own one share of it, do so because "this stock is going higher," he said.

Responding to another caller, Cramer said he is "concerned about

Pfizer

(PFE) - Get Report

" and doesn't advise pulling the trigger on this stock.

Walgreen

(WAG)

is a best-of-breed story, but Cramer said he is worried about it because

Wal-Mart

(WMT) - Get Report

has hurt companies in its sector.

"Be careful with Walgreen," he warned. "It is treading water, but should go higher."

When a caller inquired about

GlaxoSmithKline

(GSK) - Get Report

, Cramer said the reason to buy this stock is that it has a number of consumer products.

Moreover, he believes that the stock can go back to its 52-week high in six months.

As

Harrah's

(HET)

, which is being taken over by private-equity firms, "has had most of its upside," Cramer was not ready to recommend buying it.

"You should be thinking about more aggressive plays, particularly in technology," he told the caller.

"

Bank of America

(BAC) - Get Report

is terrific," Cramer told his next caller.

"It's a well-run bank, inexpensive stock and has already made its acquisitions," he said. "I like it and would not sell it."

At the time of publication, Cramer was long Altria.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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