In a surprising change of heart, Cramer said President Obama, who he said is responsible for much of the market's recent declines, may have inadvertently set the market on fire Wednesday.
Buyback MistakesWhat will go down in history as one of the worst corporate blunders of all time? Cramer said the answer is big stock buybacks. He singled out three HMOs, Aetna ( AET), Wellpoint ( WLP) and United Healthcare ( UNH), as among the worst offenders.
Obama-ResistantCramer talked with Tom Farrell, chairman, president and CEO of Dominion Resources ( D), to learn how this utility is facing the changing economic and political times. Farrell announced that Dominion's directors and officers just purchased 75,000 shares of the company's stock because they feel the shares are under valued. Regarding Obama's cap-and-trade initiatives, Farrell said Dominion should fare well, as the company is already in the bottom third of utilities when it comes to carbon intensity. He said the company is looking into expanding its natural gas, bio mass and nuclear fleets. "Dominion is a lot more than just a utility," said Farrell. When asked about the credit crisis, Farrell said the company has a strong credit rating and has never had difficultly getting credit. Admittedly, he said, Dominion is paying more for credit, but the company has successfully issued $1 billion in new debt throughout the crisis. Finally, Cramer asked Farrell about Dominion's clean energy philosophy. Farrell said the company has a number of pilot programs in place, including subsidizing 2 million compact fluorescent light bulbs and developing smart meter technologies. Cramer called dominion an Obama resistant utility and said if Farrell is buying shares, he's buying too.