Cramer's Mad Money - Obama's Enemy Number One (9/29/09)

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday September 29.

Wellpoint (WLP), Humana (HUM), United Health (UNH)

HMOs have become the White House's enemy number one and their stock prices have either crumbled already or are about to selloff. While analysts on The Street are still largely positive on HMOs, hedge funds dumped the stocks because they expected a week of "very painful headlines." Although there has been significant opposition to the President's reforms, they at least were not "dead on arrival." Montana Democrat and chairman of the Senate Finance Committee Max Baucus' plan is rough on HMOs, and these organizations are as popular as the banks, which means they are the "new villains" and should be avoided by investors.

Citigroup (C), AIG (AIG), MBIA (MBI), Bank of America (BAC), Hartford Financial (HIG)

After a mood of doom and gloom, the media is finally putting a positive spin on the economy. The front pages of the business sections of the Wall Street Journal, the New York Times and USA Today featured upbeat stories about M&A Activity, improving financials and the possibility of 10,000 for the Dow. Given how bearish the press has been, this new optimism is remarkable, although it would take a good jobs number to justify absolute confidence in the market, according to Cramer. He expects to see cynical articles return and stock prices drop, but Cramer suggested using declines to buy solid stocks. He noted financials that seemed moribund last year: Citigroup, AIG, MBIA, Bank of America and Hartford Financial are doubling and tripling in value.

CEO Interview: Jeff Gardner, Windstream (WIN)

While Cramer likes stocks with generous dividends, he emphasizes yields must be safe. A company like Windstream that has a 10% dividend and yet admits to having liquidity problems may well make investors leery. Windstream needs to raise $400 million to help pay for two acquisitions, and Cramer is naturally worried if the hefty dividend is sustainable.

CEO Jeff Gardner justified the company's acquisitions, and insisted they would bring Windstream savings and growth. "We've really managed this transition to broadband enterprise company aggressively, but we've maintained our payout ratio, actually improved upon it," said Gardner. He added he feels "great" about the dividend, because the company is doing the right things. Cramer says he trusts Gardner and Windstream.

Mad Mail: Apple (AAPL), AT&T (T)

Cramer's best play on the wireless internet tsunami is Apple, and the safest play is AT&T. He told another investor that a poor jobs number will have the worst effect on bank stocks.

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Comments

[Perry B:]

Who paid Cramer? Cramer who says he is educating the investor to make money. This may be true as the mentioned stocks are rising. The question is how and why? The AIG he says to buy is trading at $40.00. When in reality it is only worth $2.00. That is right TWO DOLLARS! So if BAC and C two other Cramer picks for profit fall overnight and they will. Because these greedy market manipulated stocks will take profit when they are ready without warning to the investors.. What profit is thier for you the investor to be holding $2.00 worth of pink paper on AIG. Having paid $40.00 ? Cramer and his pals will be laughing all the way to the bank with your mad money.

Sep 30 10:07 AM

[Gravity404:]

I listened to Cramer ONE TIME in my life several years ago. I bought UNH which he hyped for years.

A chimpanzee is just as effective; or more.

Sep 30 11:14 AM

[A. Nony Mouse:]

Hey look...the whole NBC / CNBC clot is a shill for the Obama administration...Don't get my news from NBC / MSNBC and I definitely don't believe financial advice on CNBC

Sep 30 11:32 AM

[Ekklesia:]

Here Here who died and left Cramer in charge. If I listen to anybody's advice The oracle of Omaha gets my vote

Sep 30 12:33 PM

[twitee:]

Cramer is a fraud! He is an entertainer and his information should only be utilized as an entertainment. His advice is NOT for investment or even a trade! You may get lucky sometimes following his advice once, but his financial information are politically biased. His views are biased toward policies of GE, the parent of the CNBC.
CNBC is used as a central bankers tool to manipulate the markets and to implement their political agenda. You really have to connect the dots in their programs to figure out what is their agenda. .

Refer to Cramer Vs. Jon Stewart
www.youtube.com/watch?...

Oct 01 04:59 PM

[bottoms-up:]

I would add...

1. Don't watch CNBC
2. Complain to your cable or satellite provider
3. Boycott any products advertised on CNBC
4. Urge that the V-chip have a ban-CNBC option.

Obama must have a peacock colored hot line telephone that he uses to call that network anytime he wants to spread a few rumors to pump the Ponzi scheme.


On Sep 30 11:32 AM A. Nony Mouse wrote:

> Hey look...the whole NBC / CNBC clot is a shill for the Obama administration...Don't
> get my news from NBC / MSNBC and I definitely don't believe financial
> advice on CNBC

Oct 01 08:05 PM

[bottoms-up:]

AND... GE is the parent of MSNBC and NBC


On Oct 01 04:59 PM twitee wrote:

> Cramer is a fraud! He is an entertainer and his information should
> only be utilized as an entertainment. His advice is NOT for investment
> or even a trade! You may get lucky sometimes following his advice
> once, but his financial information are politically biased. His views
> are biased toward policies of GE, the parent of the CNBC.
> CNBC is used as a central bankers tool to manipulate the markets
> and to implement their political agenda. You really have to connect
> the dots in their programs to figure out what is their agenda. .
>
>
> Refer to Cramer Vs. Jon Stewart
> www.youtube.com/watch?...

Oct 01 08:06 PM

[bottoms-up:]

Voting on your comment was like one of those trick questions... "When did you stop beating your dog?"

Cramer is an idiot, but then again Mr. Omaha has proved that scared cows make the best burger.

Anyhow... I had to abstain from voting.


On Sep 30 12:33 PM Ekklesia wrote:

> Here Here who died and left Cramer in charge. If I listen to anybody's
> advice The oracle of Omaha gets my vote

Oct 01 08:09 PM

[Robert.from.Ct:]

WHY does SA deal with Crammer???????????????...

Oct 01 08:57 PM

[437339:]

Jim Cramer is an a**hole ! I don't waste ANY time with CNBC . Every time I am in an office where CNBC is broadcasted , I'm ALWAYS reminded why I don't watch TV . Total waste of time .

Oct 01 10:29 PM

[Bill L.:]

I can't wait for Cramer's new book, "Getting Back to Even"
Then his next book, "Sorry about that... try this?"
Then his last book, "How I tricked you all"

Oct 01 11:51 PM

[Bill L.:]

AIG is worth 0.


On Sep 30 10:07 AM Perry B wrote:

> Who paid Cramer? Cramer who says he is educating the investor to
> make money. This may be true as the mentioned stocks are rising.
> The question is how and why? The AIG he says to buy is trading at
> $40.00. When in reality it is only worth $2.00. That is right TWO
> DOLLARS! So if BAC and C two other Cramer picks for profit fall overnight
> and they will. Because these greedy market manipulated stocks will
> take profit when they are ready without warning to the investors..
> What profit is thier for you the investor to be holding $2.00 worth
> of pink paper on AIG. Having paid $40.00 ? Cramer and his pals will
> be laughing all the way to the bank with your mad money.

Oct 01 11:53 PM