Cramer's 'Mad Money' Recap: Separating Fact From Fiction

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NEW YORK ( TheStreet) -- After last night's presidential debate, the markets were abuzz with ideas of how to profit from an Obama or Romney win.

That's why Jim Cramer offered his take on the event for his "Mad Money" viewers Thursday to help separate the facts from the fiction.

Cramer said while Mitt Romney supports North American energy independence, that's not a sign to buy the coal stocks. Coal's fate rests with Chinese demand, not U.S. demand.

He said the real beneficiaries would be utilities American Electric Power ( AEP) and Southern Company ( SO), which would likely spend less to update their coal-fired power plants under Romney.

Cramer also gave the nod to buy Union Pacific ( UNP), which is levered to cleaner coal.

In the aerospace and defense sector, Cramer said General Dynamic ( GD) would prosper under Romney, but its corporate jet division, Gulfstream, suffer under President Obama. The opposite is try for automaker Tesla ( TSLA), which would be no friend of Romney.

In the oil patch, Cramer said that Schlumberger ( SLB) and National Oilwell Varco ( NOV) would benefit from a Romney win, as would regional banks like Huntington Bancshares ( HBAN), US Bancorp ( USB) and KeyCorp ( KEY), a stock Cramer owns for his charitable trust, Action Alerts PLUS .

Under Romney, small business is likely to prosper, meaning a boost for Paychex ( PAYX), but dollar stores Dollar General ( DG) and Family Dollar ( FDO) may be hurt by a reduction in food stamps.

Everyone was trying to game health care, but Cramer said drug makers and HMOs have made peace with "Obamacare," and would actually be hurt if it was repealed this late in the game.

Cramer said no matter who wins the elections, investors should always buy stocks with strong fundamentals and never pay up.

Executive Decision

In the "Executive Decision" segment, Cramer spoke with Al Monaco, the new president and CEO of Enbridge ( ENB), one of the largest oil and liquids pipeline operators in the country. Shares of Enbridge are up 30% since Cramer last checked in with the company a year ago.

Cramer started off by asking Monaco about Mitt Romney's claims that investing in energy independence could create four million jobs. Monaco said that target is absolutely possible because there simply isn't enough connectivity between where the oil and gas in America is and where it needs to go.

When asked whether the political and environmental worlds would support that growth, Monaco noted that people today just want projects done right, and Enbridge is willing to work with the government, no matter who is president, to get the job done.

Turning to his company's growth target of 12% a year, Monaco said Enbridge currently has $18 billion worth of secured projects ready to go which would account for growth of 10% a year. By adding on just a few of the company's other potential projects, Monaco said that Enbridge could definitely hit its 12% target.

Circling back to hiring and jobs, Monaco said Enbridge has already hired 2,500 new employees this year and will need to hire tens of thousands more to complete all of the projects currently under development.

Cramer called Enbridge's presentation at its analyst day "brilliant" and said he still likes the stock.

Siding With the Bulls

When analysts disagree, investors win. That's why Cramer endorsed buying shares of Alliant Tech ( ATK), a defense company that received both an upgrade and a downgrade from competing firms on Monday.

Cramer noted analysts at Jeffries downgraded Alliant Tech from a buy to a hold, citing worries about the company's aerospace division ahead of the looming economic "fiscal cliff" that could take a chunk out of defense spending. The firm also cited the declining war in Afghanistan as a drag on the company's earnings.

Meanwhile, analysts at Cowen noted that after winning a major federal contract for ammunition, Alliant Tech could outperform the market by 20% over the next six months.

So who's right? Cramer said while he understands the bear case, he's siding with the bulls because most of the worries about Alliant Tech are already baked into the stock, which currently trades for only 7.6 times next year's earnings.

Additionally, Cramer said that Alliant's stock buyback program, valued at $175 million or 10% of outstanding shares, would also be a boon for shareholders.

Lightning Round

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

BP ( BP): "Take a pass. There are so many better oil plays. I like Statoil ( STO)."

Boardwalk Partners ( BWP): "I think we're fine. I would buy more. It's best in show and I like it."

Caterpillar ( CAT): "I need more data. It's too hard. I'm not confident to make a judgment."

Sirius XM Radio ( SIRI): "I think that Liberty Media ( LMCA) could cap your upside. I like the company but I think you'll be capped."

Chicago Bridge & Iron ( CBI): "I think this will be a strong quarter."

Mellanox Technologies ( MLNX): "No. I've walked away from this one. We've moved on."

Eaton ( ETN): "That stock is a buy, buy, buy."

Taiwan Semiconductor ( TSM): "I would ring the register on the semiconductors."

Sell Block

In the Thursday "Sell Block" segment, Cramer released Symantec ( SYMC) from the block, saying that after years of trading sideways, the company is now investable.

Cramer explained that while Symantec operates in the red-hot cyber security and consulting sectors, the company has be unable to deliver anything in the way of growth.

Symantec made over $3 billion in acquisitions, yet was able to eek out revenue gains, let alone profits. Making matters worse, Symantec management was complacent, ignoring calls from activist investors to shake things up.

But then Symantec's board heeded the calls, ousting its CEO on July 25 and replacing him with Steve Bennett, formerly of Intuit ( INTU). That news alone was enough to send shares from $13 to $17 in just two weeks and to $19 within the first six weeks.

Cramer said there are a lot of ways Bennett can cut costs and streamline Symantec's operations, and if his huge recent purchase of Symantec stock is any indication, that's exactly what Bennett plans to do.

Additionally, Bennett now has the opportunity to diversify Symantec away from the ailing PC market and into mobile devices, as well as grow the company's enterprise businesses.

So with Bennett now in command, Cramer said Symantec has finally become safe for investors again. He suggested building a position ahead of the company's Oct. 24 earnings and buying even more on weakness after their release.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer reiterated there is absolutely no reason to own shares of Hewlett-Packard ( HPQ) after interviewing company's CEO Meg Whitman earlier today.

Cramer said that unlike Steve Job's famed "reality distortion field," Whitman's distortions made her sound like a politician, full of hope and promise but severely lacking in a plan to get the job done.

Whitman offered no case for owning HP, said Cramer, and even said the company likely won't be able to turn things around until 2014.

It may be hard to fathom that such venerable companies like HP can one day just disappear, but Cramer said that's just the way of technology -- as we saw with Digital Equipment, Wang and, more recently, Kodak.

Hewlett-Packard, Cramer concluded, may be having its Kodak moment right now.

--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

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
At the time of publication, Cramer's Action Alerts PLUS had positions in DB, ETN, KEY and SLB.

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."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

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