Cramer's Stop Trading! The Most Egregious Industry (6/23/09)

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Tuesday June 23.

Humana (HUM), WellPoint (WLP), Boston Scientific (BSX), Aetna (AET), Staples (SPLS), Office Depot (ODP), United Health (UNH)

Investors are worried about healthcare stocks in the face of Obama's proposed reforms. Cramer thinks the companies that are going to get hit the hardest are those who benefited most from Medicare's Advantage program as Obama wants to get tough and consumers feel ripped off by HMOs. “This is the most egregious industry of all industries,” Cramer said. “[It] generates gigantic cash flow and really has just done the wrong thing with it consistently.” Cramer thinks United Health, Humana and Aetna are much more vulnerable than WellPoint, which has less exposure to Medicare Advantage. He also recommended Boston Scientific, which recently tested a new heart device.

A private equity firms $350 million investment in Office Depot is one less reason to own Staples. Office Depot's prospects looked pretty bleak before this infusion of cash, but now the company has one advantage over the competition.

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Comments

[Jasper M:]

Don't hold back, man. Tell us how you Really feel!

Jun 24 12:06 AM

[Moon Kil Woong:]

Isn't the most egregious industry stock promoters like Jim Cramer?

Jun 24 04:18 AM

[y1531y:]

Why we bother with him? Did he beat the index?
Why I bother to write this?

Jun 24 08:53 AM

[User 436012:]

Exactly - why would anyone give you free stop tips anyway - besides the healthcare industry is right where they want to be and they will be a part of any Obama plan don't kid yourself. Humana has shown the most inovation over time and their willingness to look outside the box with technology, diesease and case management and prevention will go a long way in solidifying its position in the eyes of the administration. The only peopl who get ripped off in HMO's or PPO's are the ones that want something for nothing or don't follow the rules for network provides and then cry foul.

Jun 24 09:16 AM

[BlueOkie:]

Pick a stock any stock that Cramer either likes or hates. Wait 6 months and you'll see 180 degree position. It is a feel good when he agrees with your position.

Jun 26 08:04 AM