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

by: Miriam Metzinger

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

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