California's Proposition 87 which will strive to "lessen dependence on foreign and domestic oil" and will cost Chevron $200 million in taxes may be a good opportunity to pick up "a great stock," according to Cramer, who is bullish on the CVX because of its solid quarter and its "big find" in the Gulf of Mexico. However, he would wait until next Wednesday or Thursday before buying because he expects the oil company to get hit then. He likes Chevron's earnings upside surprise of 15% and its strong marketing in addition to the fact that CVX is less expensive than Exxon and gives a generous 3% dividend. "The last and best reason to buy it is that Chevron has great long-term prospects," Cramer said.
Related: Dan Carty warns of a correction in oil stocks.
Although it is likely that California's Proposition 86 to raise the taxes on cigarettes from 87 cents to $3.47 a pack will pass, Cramer still thinks that money can be made in tobacco stocks since these companies are fighting back by spending millions on political advertising. He prefers MO as best of breed to RAI and UST, although RAI has "been on a roll" and UST may be a takeover candidate. Good smaller companies are Vector and Carolina, Cramer said.
Delta Air Lines (DALRQ.PK), Continental Airlines (CAL) and AMR (AMR)
Although there has been some "furious trading" at Delta, Cramer reiterates his warning to avoid bankrupt stocks because of the risk, and based on other bankruptcies in the sector, the stock is likely to lose its value and the lion's share of the equity will go to bond holders. However, Cramer notes "when bankrupt stocks trade at a high volume, it could be good news for nonbankrupt peers," and he predicts that Continental (CAL) and AMR (AMR) will go up since there are fewer airlines worth the investment.
Related: Mick Weinstein discusses the competition between the major airlines for a new China route.
Interview with CEO Mary Sammons, Rite Aid (RAD)
When asked about Wal-Mart's lowered prices for generic drugs, Mary Sammons commented,"If you look at Wal-Mart taking a small percentage of generics and using them as a loss leader, it doesn't impact a drugstore that has a whole different business proposition ... In addition to the fact that 95% of drugs are paid by a third party, my customer would not pay much more than $4 at Rite Aid, and in many instances, they will pay less than $4." Concerning the Eckerd acquisition, Sammons describes it as "terrific" and notes that it will allow Rite Aid to put its "branding proposition out there for a tremendous amount of ... people."
More: Cramer's latest stock picks, 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.
Seeking Alpha is not affiliated with CNBC, Jim Cramer or TheStreet.com