MAD MONEY Recap 11/19/12: Jim Cramer Adds Speaker Pelosi to the Fiscal Cliff Annex of the Wall of Shame
Tonight on Mad Money, Jim Cramer says we saw the world through the lens of compromise when Washington learned for a bit to compromise as the the market made gigantic moves today. Could this be a “Rise Above” rally? Jim advises that we consider companies that stand to benefit “the most” from a Fiscal Cliff compromise. The bottom line: You get a compromise in Washington, and you’ll get many more “glorious” days like this in the market (as Jim quotes the Founding Fathers in the Preamble).
TALKING ‘BOUT MY GENERATOR?
Briggs and Stratton (BGG) a business that takes advantage of the aftermath of Hurricane Sandy as they are the countries largest manufacturer of gasoline powered engines for outside use like generators. Jim Cramer is betting here that backup generators will have a ton of demand after Sandy as a sort of “storm insurance.” With generator sales making up about 10% of BGG’s sales, Jim sees BGG’s numbers improving. Plus, a housing recovery could also mean more potential profits for BGG as 70% of it’s business occurs here on U.S. soil. The bottom line: After Sandy, we’ve come to learn to never take electricity for granted, and BGG is the smart, stealth way to benefit from this new storm insurance mindset.
The rental car business recovery is in full swing and Jim is looking for the most profitable ways to play it. Hertz (HTZ), Avis (CAR), and Zipcar (ZIP) are the three major players in the industry that Jim takes into consideration. Of the three, Zipcar is the worst and Jim says he wouldn’t touch it with a ten foot pole. So far this year, Avis is doing the best. But despite all this, Jim thinks Hertz will do better as it just purchased the #4 player in the market, Dollar Thrifty (DTG). With this purchase, Hertz will become the largest player in the industry with over 37% market share. The bottom line: The rental car service is resurgent – sell Zipcar, ring the register on Avis, and buy buy on Hertz.
OraSure Tech (OSUR): It’s been a disaster, Jim says.
Cheniere Energy (LNG): CPQ is Jim’s preferred way to play here.
SPDR Gold Trust (GLD): Best in show, Jim says.
Anheuser Busch (BUD): BUY.
3D Systems (DDD): Jim likes it.
Annaly Capital (NLY): Lay low on this one, Jim says.
Jim explains the untapped potential of natural gas. The economics of natural gas may be there, but Jim doesn’t believe that the necessary infrastructure yet exists. The automobile industry is a prime example as natural gas vehicles not only cost more but refueling stations are far and few between. In addition, the President’s energy policies don’t embrace natural gas despite how cheap it is and Jim’s belief that it’s a cleaner, cheaper homegrown alternative fuel that could make our country more energy independent.
Former Speaker Nancy Pelosi is the first face to be added to Fiscal Cliff Annex of the Mad Money Wall of Shame. Jim says she makes it difficult to move forward on fiscal negotiations. Speaker Pelosi has said that she would not accept a deal to raise revenue on capping deductions alone. By simply saying “No”, Speaker Pelosi makes “rising above” and making a compromise supremely difficult as her views seem more punitive than practical. But it’s not just Pelosi as Jim says Republicans are also at fault. Washington, as a whole has to come ready to the table to make compromises. Or, maybe just maybe, they all want to be added to the Wall of Shame?
That’s our recap of Jim Cramer’s Mad Money today on 11/19/12. You can view Coach Cramer’s past advice and stock picks on Nerdles’ Mad Money archives HERE.
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