Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Wednesday September 6. Click on a stock ticker for more analysis:
California Bills: Wal-Mart (NYSE:WMT), Mattel (NASDAQ:MAT), Charter Communications (NASDAQ:CHTR), AMN Healthcare (AHS), Plantronics (NYSE:PLT), L-1 Identity (NYSE:ID), Lamson & Sessions (LMS), PW Eagle (OTC:PWEI), Palomar Medical (NASDAQ:PMTI), Cutera (NASDAQ:CUTR), Biolase Technology (BLTI), Pfizer (NYSE:PFE), Merck (NYSE:MRK), Bristol-Myers (NYSE:BMY), American Standard (ASD), URS Corp (NYSE:URS), and Vulcan Materials (NYSE: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.
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