California Bills: Wal-Mart (WMT), Mattel (MAT), Charter Communications (CHTR), AMN Healthcare (AHS), Plantronics (PLT), L-1 Identity (ID), Lamson & Sessions (LMS), PW Eagle (PWEI), Palomar Medical (PMTI), Cutera (CUTR), Biolase Technology (BLTI), Pfizer (PFE), Merck (MRK), Bristol-Myers (BMY), American Standard (ASD), URS Corp (URS), and Vulcan Materials (VMC)
California, a state which is bigger than many countries, is the place many of America's trends begin, and Cramer sees a parallel between the State Legislature's new bills, which Republican Arnold Schwarzenegger's has to deal with, and what may happen if George Bush is faced with a Democratic Congress. First, there is what is termed as the "Anti-Wal-Mart" Bill, which penalizes stores which have more than 10,000 square feet and spells trouble for the retail Goliath. The "Booster-Seat Bill," which requires all children under the age of 8 have special seating in a car means a big boost for Mattel, and if the legistlation will be adopted nationally, Cramer believes that the company may be the best stock of 2007.
The Anti-Charter Communications Bill gives one statewide permit to phone companies which offer video services, and means trouble for Charter Communications which should get "beaten to a pulp," says Cramer. A law that will prevent illegal immigrants from working as nurses will intensify the nursing shortage, and will make AMN Healthcare more money. Planetronics, which is sitting at a 52-week low, is a good buy, because of the California law which makes it illegal drive and talk on a cellphone without wearing a headset.
Tamper-proof State ID cards will be a new requirement, and Cramer says that this will be "like an annuity" for L-1 Identity. The ban on lead pipes should mean big profits for LMS and PWEI, says Cramer, and permission for dentists to perform some types of surgery will make a lot of money for the "laser guys": PMTI, CUTR, and BLTI. Although lower prices on prescription drugs is great for the consumer, Cramer comments that PFE , MRK and BMY will suffer.
New California legislation restricting toilets that use more than 1.6 gallons of water per flush is great news for ASD, which already makes a good quality toilet that uses less water. The proposal to make levies more secure will mean more business for URS and Vulcan's services will be required to fix California's roads.
Seeking Alpha publishes a summary of Jim Cramer's stock picks every day including: Mad Money Recap, Lightening Round, Stop Trading and his Radio Show.
Get Cramer's Picks by email -- it's free and takes only a few seconds to sign up.