Jim Cramer's 8-Point Plan for Higher Stock Prices

NEW YORK (TheStreet) -- Jim Cramer told "Mad Money" viewers Wednesday he's got an eight-point plan for higher stock prices and a better America, just in case either candidate wishes to adopt it.

  • 1. Eliminate the tax on dividends. Cramer said eliminating this tax would encourage more companies to pay dividends and reward shareholders for investing instead of trading stocks. He also supported raising the capital gains tax as further incentive to keep investors in the markets for the long-term.
  • 2. Level the playing field. Cramer said he would appoint a strong attorney general and SEC chairman to go after insider trading and clean up Wall Street for good.
  • 3. Embrace natural gas. Cramer said he'd mandate that all federal vehicles use American-made natural gas, a move that would not only force the needed infrastructure to be built, but also allow for the cutting of the defense budget, the balancing of the trade deficit and the elimination of the need to burn corn for ethanol. All by supporting U.S. fuels instead of OPEC oil from hostile nations.
  • 4. Put low interest rates to work. Cramer suggested the Treasury take advantage of historically low interest rates by issuing $500 billion in 30-year debt for infrastructure projects and another $500 billion to reduce the deficit and secure our financial future.
  • 5. Place tariffs on goods that pollute. Cramer said our country needs tariffs on goods that come from countries with lower pollution standards to level the playing field and stop companies from moving their manufacturing to places where the environment is not a concern.
  • 6. Teach financial literacy in schools. It goes without saying that our younger generation needs to be taught about money, savings, investing and how the global economy really works.
  • 7. Appoint a competition czar. Cramer said our country needs someone to aid U.S. businesses become more competitive around the globe and help them attract the best talent.
  • 8. Reappoint Ben Bernanke as Federal Reserve chairman. Cramer said Bernanke has done a stellar job so far and deserves the opportunity to continue his work.

    Implement these initiatives, said Cramer, and the stock market would rocket to all-time highs and America would be on a much more solid footing with a far brighter future.

    Executive Decision

    In the "Executive Decision" segment, Cramer spoke with Chris Garabedian, president and CEO of Sarepta Therapeutics ( SRPT), a small biotech firm that saw its shares soar over 200% after the company announced Wednesday positive data for its muscular dystrophy drug, Eteplirsen. Cramer recommended Sarepta as a speculative stock back on Sept. 21.

    Garabedian said his company is very excited about today's news and the market's response to it, as well as what the data mean to patients and their families. He then showed a chart of how patients taking Eteplirsen fared against those taking a placebo over a 48-week period.

    The data clearly showed those patients taking the placebo saw a steady progression of the disease until they were no longer able to walk, but those taking Eteplirsen not only stabilized but actually saw improvement in weeks 36 through 48. Sarepta has now switched those taking the placebo to Eteplirsen and is studying how the drug affects people in the later stages of the disease.

    Garabedian explained that while the data only include Phase II results and the sample size was 12 patients, this is not uncommon for a rare disease. What matters most is how much patients improved while taking the drug. He also responded to criticisms that two patients did not respond to the drug. He said in those cases the disease had already started progressing before the drug could take hold.

    Garabedian said Sarepta is amenable to taking on partners to help it speed up its Eteplirsen program and expand it overseas, but the company is also preparing to continue developing the drug in-house if necessary.

    Cramer said results like these don't come from a paycheck, or a bank CD or even a typical stock, they only come from speculating, which is why he has always said that speculation needs to be a part of everyone's portfolio.

    What's in Fashion

    In a second "Executive Decision" segment, Cramer sat down with Eric Wiseman, chairman, president and CEO of VF Corp ( VFC), the apparel maker that's seen its shares rise 55% since Cramer last spoke with Wiseman in April 2011.

    Wiseman said outdoor apparel remains a big driver for VF Corp, whether it be boots, socks or jackets. He said his company's acquisition of the Timberland brand in June 2011 is part of that strategy and VF looks to reintroduce Timberland apparel in the U.S. market by the fall of next year.

    When asked about VF's terrific portfolio of brands, Wiseman commented that VF now has 30 brands in its stable, and while not every one performs well in every market, the diversity gives it many opportunities such as investing in its North Face brand in Germany and Vans in the U.K.

    Turning to the company's retail strategy, Wiseman acknowledged some of its retail customers were leery of the company opening factory stores around the corner, but the company has learned that as more stores open the brands become stronger for all of their customers.

    Among the other positives at VF are the falling price of cotton, which is a big component in denim, as well as currencies around the world turning in the company's favor.

    Cramer said the VF story remains intact, adding that with a great company and great management, "sometimes it is just that easy."

    Lightning Round

    Here's what Cramer had to say about callers' stocks during the "Lightning Round":

    Salesforce.com ( CRM): "I feel even better about Salesforce and how things are going over there."

    Waste Management ( WM): "You're being paid to wait while the construction market picks up."

    Enterprise Products Partners ( EPD): "I think this one is terrific."

    Universal Health Services ( UHS): "I believe in this company. It's one of the best health care REITs. I also like Health Care REIT ( HCN) at $59."

    Westport Innovations ( WPRT): "Very speculative situation. I believe in it but it's highly speculative. "

    Cisco Systems ( CSCO): "I think the stock could go to $21 and not have its valuation stretched."

    Walt Disney ( DIS): "With gasoline going down, Disney remains a buy. "

    Stillwater Mining ( SWC): "No. I like the SPDR Gold Shares ( GLD)."

    Am I Diversified?

    In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.

    The first portfolio included: Altria ( MO), Pepsico ( PEP), Procter & Gamble ( PG), ConocoPhillips ( COP) and New York Community Bank ( NYB).

    Cramer identified two consumer goods companies in Pepsico and P&G. He suggested selling P&G and adding a health-care stock such as Celgene ( CELG).

    The second portfolio's top holdings included: AFC Enterprises ( AFCE), American International Group ( AIG), Dynavax ( DVAX), Facebook ( FB) and Michael Kors ( KORS).

    Cramer said this portfolio was properly diversified.

    The third portfolio had: Target ( TGT), Sirius XM Radio ( SIRI), Clorox ( CLX), Walt Disney ( DIS) and Johnson & Johnson ( JNJ) as its top five stocks.

    Cramer said that Clorox was too much like Johnson & Johnson and he advised getting rid of Clorox in favor of an industrial like General Electric ( GE) or 3M ( MMM).

    The fourth portfolio's top stocks were: EMC ( EMC), Procter & Gamble ( PG), Bristol-Myers Squibb ( BMY), ConAgra ( CAG) and Vodaphone ( VOD).

    Cramer said this portfolio was also terrifically diversified.

    No Huddle Offense

    In his "No Huddle Offense" segment, Cramer said he doesn't care what Hewlett-Packard ( HPQ) CEO Meg Whitman has to say at the company's analyst day. The company is no longer relevant and it is a value trap for investors.

    Cramer said the only move that would make sense would be for HP to merge with Dell ( DELL) and take the excess capacity out of the PC market.

    But with that scenario very unlikely to happen, the best one could hope would be a spin-off of HP's PC business, as IBM ( IBM) did years ago after it realized it was offering no added value to consumers.

    Cramer said the problem with this scenario is HP wouldn't be left with a lot, only printers and consulting, and in the latter it pales by comparison to the likes of SAP ( SAP) or Acenture ( ACN).

    Without a tablet of a smartphone in its ecosystem, HP will slowly be pushed out of the enterprise, said Cramer. That notion may sound farfetched today, he concluded, but the funny thing about younger people is they get older and eventually replace those of the previous generation.

    --Written by Scott Rutt in Washington, D.C.

    To email Scott about this article, click here: Scott Rutt

    Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

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    At the time of publication, Cramer's Action Alerts PLUS had a position in AIG, BMY and EMC.

    Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC Universal or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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