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NEW YORK ( TheStreet) -- Politics is overrated as a way to predict stock performance, Jim Cramer told "Mad Money" viewers Monday on the eve of the presidential election. What really matters to stock prices, he said, is management and a company's business model, not who happens to occupy the White House. When it came to technology, both Hewlett-Packard ( HPQ) and IBM ( IBM) made the decision five years ago to focus less on hardware and more on software and services. Yet, IBM shares are up 75% since then while Hewlett lost 71% during the same time. Why the difference? Execution and management. During the Obama administration, Apple ( AAPL), a stock Cramer owns for his charitable trust,
The Difference Is CarbonWhile both presidential candidates want America to become energy self-sufficient, only one thinks we should do so with fossil fuels, Cramer told viewers -- which is why if you think Mitt Romney will pull off an upset Tuesday, there's a whole host of stocks they should consider buying. The difference between the candidates comes down to carbon. Obama hates it, while Romney feels we need energy independence by any means necessary, which means using more coal and oil along with natural gas as a surface fuel. That's why Cramer said Romney investors should consider stocks like Peabody Energy ( BTU) and Arch Coal ( ACI) in the coal patch, along with Schlumberger ( SLB) and Halliburton ( HAL) in the oil patch.
Cramer also recommended TransCanada ( TRP) and Enbridge ( ENB) as plays on the TransCanada pipeline, a project Romney supports, along with natural gas and oil shale players like EOG Resources ( EOG) and Continental Resources ( CLR). All of these companies will be in demand if Romney wins, according to Cramer.
Jumping on the BP BandwagonOil giant BP ( BP) has come a long way since its Macondo oil spill in 2010, Cramer told viewers. The company was forced to pay over $50 billion in damages, which led to the shedding of nearly $35 billion in assets so far, he noted, assets that other companies have profited from handsomely. In the refining space, Cramer said Marathon Petroleum ( MPC) and Teroso ( TSO) picked up some of BP's refineries, leading to substantial profits for both companies. Meanwhile, master limited partnerships like Linn Energy ( LINE) were able to acquire $2.2 billion properties so far, boosting that company's bottom line, as was Plains All American ( PAA), which also purchased BP assets. In the exploration space, Cramer said Apache ( APA) has been the real winner, picking up BP prospects for a song, which led him to Plains Exploration ( PXP), the next drilling and exploration company to jump onto the BP bandwagon. Cramer said Plains has an eight-year plan to develop its new BP projects, something that should translate to shareholders' bottom line in the very near future.
Lightning RoundIn the Lightning Round, Cramer was bullish on Walgreens ( WAG), Matrix Service ( MTRX), Yamana Gold ( AUY), SPDR Gold Shares ( GLD) and Protein Design Labs ( PDLI). Cramer was bearish on Intel ( INTC), Align Technology ( ALGN), MGM Resorts ( MGM) and McDonald's ( MCD).
Executive DecisionIn the "Executive Decision" segment, Cramer sat down with Irwin Simon, chairman and CEO of Hain Celestial ( HAIN), the health food company that's up 216% since Cramer first recommended it in April 2010. Simon said while Hurricane Sandy was tragic for many, it has lead to strong demand for Hain products as people stocked up before the storm, ate lots of the company's food during the storm and, unfortunately, had to restock after many lost power in their homes. Hain continues to donate baby food and other items to those in need and is working hard to resupply stores as quickly as possible, he said.
Turning to the company's latest acquisition, Simon noted that BluePrint, the organic fruit and vegetable juice company, is a big opportunity for Hain. When asked about concerns voiced during the company's conference call about slowing growth, Simon said all of his company's products can't grow at 40% forever. However, in the case of Earth's Best baby food and Greek Gods yogurts, Hain is having trouble meeting demand, which is leading to lower sales overall. Cramer said he continues to believe in Hain's healthy eating story and would be a buyer given the decline in the company's shares.