Jim Cramer donned his doctor's lab coat on Wednesday's edition of his "Mad Money" TV show to help investors diagnose the markets as well as individual stocks. While every stock was assumed to be in critical condition last year, many of those diagnoses were wrong, he said. Cramer said investors need to think like a good doctor and examine each sector, determine what ails it, and decide what the prescription for recovery will be. He said not everything in the economy should be on life support and not everything is in recession.
Wiring Money HomeThere is a stock that can benefit from Obama's political agenda, said Cramer, and it's Western Union ( WU). He said President Obama's plans to overhaul immigration in this country, along with the hopes of a global recovery, spells profits for this well-run leader of money transfers. Cramer expects Obama's reforms to go easy on illegal immigration, which should translate into a big boost for Western Union. Likewise, as the economy recovers, both here and abroad, remittances through Western Union should also increase. Finally, Cramer said the near collapse of competitor Moneygram ( MGI) will also allow Western Union to further secure it's position as the premier player. Cramer said Western Union's last quarter was only slightly better than expected, but noted that the company affirmed its fiscal 2009 guidance. He said now is the perfect time in the cycle to establish a position, as wiring money home is a necessity and not a luxury for many families.
Banning Ultra-Leveraged ETFsIn his "Eureka Moment!" segment, Cramer shouted "bravo!" to the brokerage of Edward Jones & Co. for their decision to stop selling ultra-leveraged ETFs to their clients. Cramer, a long time critic of ultra levered ETFs, said he hopes every brokerage takes a stand and follows in Edward Jones' footsteps. Cramer reminded viewers that these ultra-leverageed funds do not do what they advertise and are designed for day traders to bypass margin requirements and beat down stocks with incredible potency. He said that for most retail investors, these funds lose money, and at the heart of the financial crisis, cost the American taxpayers billions, as the government stepped in to bailout firms as their stocks faltered under the assaults from theses funds. Cramer applauded Edward Jones, and again pleaded to regulators and brokers alike, to do the right thing and ban these funds.