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RealMoney Radio Recap: Election Fright

Cramer says that a change in the guard may mean taking some off the table and buying back later.

"Election day is less than two weeks away, but the market is already reacting right now to the possibility of a big Democratic win," Jim Cramer said on his "RealMoney" radio show Thursday.

"This election has become why stocks go up or down," he said.

Lockheed

(LMT) - Get Lockheed Martin Corporation Report

is getting "killed" today, and big pharma is down as well, Cramer said. In addition, HMOs should be much higher.

To Cramer this means that when people wake up on Nov. 8, the Democrats are going to be in control of both houses.

People should be thinking about whether they have the "ability to weather the pain on the possibility of a Democratic takeover," he said. They might need to take some off the table and then buy it back later on.

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"Be aware of anything big -- big pharma, big HMO, big defense, big oil. These are all targets," Cramer said. "They require caution until the Monday before the election."

Although "it can be pretty intimidating sifting through stocks and figuring out which ones you want to invest in," there are opportunities out there, he said. "You just have to be prepared and have conviction."

For example, when one of Cramer's "Mad Money" TV show viewers asked him about

Joy Global

(JOYG)

last night during the lightning round, he defaulted to

Caterpillar

(CAT) - Get Caterpillar Inc. Report

TheStreet Recommends

.

Cramer said there was a time when he would have called Joy Global the "best in show," but then "it missed a quarter down the road, and the Street turned on it."

"It was some turn," he said. "The stock lost more than half its value from the miss and from the errant May

Fed

tightening."

After recommending a swap into Caterpillar, another viewer emailed Cramer Thursday morning and commented on how "mining companies are ramping up production at an unprecedented rate to mine lower grades," which requires a larger number of replacement vehicles and aftermarket services.

Because there are only two companies in this sector -- Joy Global and

Bucyrus

(BUCY)

-- the viewer asked how Cramer could not recommend Joy Global.

Cramer believes that the viewer is right and that there is a "tremendous scarcity of assets in this group."

Although he wanted to be consistent with his Monday recommendation of Caterpillar, "things are still smoking" at Joy Global and "the stock is worth recommending," Cramer said.

The real lesson here is that there are opportunities, Cramer said. "Stay at the table."

Out of the Woods

After spending five years in the "wilderness,"

Comcast

(CMCSA) - Get Comcast Corporation Class A Report

became "one of the big ones, or among the top-five performers in the stock market for two decades," said Cramer.

"The Street lost faith in these guys and decided that the bid for

Disney

(DIS) - Get Walt Disney Company Report

was just some sort of desperate gambit to grow when growth was tapped," he said.

Comcast went through a period where it had to hear how it was being beaten by

Verizon

(VZ) - Get Verizon Communications Inc. Report

and

EchoStar

(DISH) - Get DISH Network Corporation Class A Report

, Cramer went on to say.

"They were considered buffoons for trying to make a plain old cable business into a real growth story," he said.

But now, it must be "sweet" to work there. The triple play, technology and service are all driving the stock, and "the growth of

Adelphia

is ahead of them," Cramer said.

It is not too late to get into Comcast, he added. "There's too much growth ahead, too much profitability and too much belief."

"The future is so bright."

Every week readers of

TheStreet.com

vote on the stock they most want Cramer to talk about. This week's "Cramer on Demand" stock was

Norfolk Southern

(NSC) - Get Norfolk Southern Corporation Report

.

The company reported a "very good" quarter on Wednesday, he said. But the stock has moved up too much, and Cramer only recommended pulling the trigger on a pullback.

Cramer's Callers

As

Black & Decker

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reported a good quarter today,

Fortune Brands

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should as well, Cramer told a caller.

"I believe Fortune Brands is going higher," he said.

Responding to another caller, Cramer said he did not agree with a recent downgrade issued to

Arena Pharmaceuticals

(ARNA) - Get Arena Pharmaceuticals, Inc. Report

.

People should be in this stock for its cancer and obesity drug, as "near-term earnings have never been an issue for biotech stocks," he said.

"When you see this type of decline in such a stock, you must pile up on it," Cramer advised.

Chipotle

(CMG) - Get Chipotle Mexican Grill, Inc. Report

is "here to stay and is very well run," he told his next caller.

In regard to

Lennar

(LEN) - Get Lennar Corporation Class A Report

, Cramer told a caller it is a "great homebuilder."

But because it's had a big run, Cramer advised taking a little off the table and allowing the rest to run.

Cramer told another listener he "vastly prefers"

Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. Report

, which he owns for his charitable trust,

Action Alerts PLUS, to

Wells Fargo

(WFC) - Get Wells Fargo & Company Report

.

At the time of publication, Cramer was long Goldman Sachs.

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

Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click

here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click

here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click

here to get his second book, "You Got Screwed!" and click

here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here.

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