'Mad Mail'

Unitedhealth Group, Inc. (UNH)

Q:      Jim,
I’ve been watching your show and have heard your warnings about investing in stocks that are in Obama’s crosshairs, such as pharma and health. Your reasoning is that Obama wants to make healthcare cheap, and so this will negatively impact growth and revenue for these companies. However, I have to disagree with this argument. Obama’s plan to make healthcare cheaper is not by forcing a reduction in the cost of drugs. Obama’s plan is to use taxpayer money to make healthcare more available to those who cannot afford it. Therefore, the drug companies should not be affected. What do you think?
Vandad

Jim:    Actually President Obama wants to do that too, that is why I don’t like United Health… why I don’t like Cigna… but you have to understand, he is approaching it very rationally… not in a pro-shareholder way, but maybe in a pro-healthcare way… there are many need to drugs, there are many companies that have drugs that are just kind of fighting back and forth… and could be pitted against each other… and Obama wants to pit them to get lower prices for all Americans… it is not a bad goal… it is bad if you own the drug stocks.

'Mad Mail'

CIGNA Corp. (CI)

See UNH comments above for:
CI

'Mad Mail'

Chubb (CB)

Q:      Jim,
I bought the Chubb Corp. a while back and have heard you recommend this stock as a good stock. Why is it continuing to go down? What is the catalyst driving it down, or lack of catalyst to drive it up?
Chuck

Jim:    I was hoping that they would be able to be along with Travelers (TRV), buyers of the Hartford Casualty division, but it looks like Hartford (HIG) got the TARP money, and they do not have to sell it… Chubb and Traveler’s are the two insurance companies that do not need the government help… that is why I like them… I think in the end that works to their favor.

'Mad Mail'

Travelers (TRV)

See CB comments above for:
TRV

'Mad Mail'

General Question

Q:      Hey Cramer!
I was watching your show yesterday and you were talking about the zomie stocks such as AIG (AIG), Fannie Mae (FNM), Freddie Mac (FRE) and General Motors (GM).... I think you need to create a new category for the show in addition to the Sell Block and the Wall of Shame called ‘The Litter Box’ where you can put stocks that fit the description. Just a thought.
Mark

Jim:    He's right.   I say lets get that First Step, the Clorox product… but we need to avoid clumping.

'Mad Mail'

General Question

Q:      Dear Cramer,
If a company acquires another company for strategic long-term value, does that make the acquiring company less likely to be the target of a takeover, more likely, or totally irrelevant?
Tom

Jim:    I was debating this with NetApp, Inc. (NTAP) just today, saying hold it, why didn’t Netapp go down when it made that acquisition… I think that it is because people think that they are going to be acquired… it can be many different things, but I am just giving you that Netapp as one that shows me that people do not give up after a company has bought another company.

'Mad Mail'

General Question

Q:      Hello Jim,
With the autos likely to cease or slash production in the summer months, what impact do you see this having on electricity demand and natural gas prices? Natural gas supply is at high levels and industrial demand is shrinking. Jim, what do you see the price bottoming?
Dan

Jim:    Jim: I said last week that I though natural gas bottom at $3.40, it has not taken that price out… and I do not think that the auto companies are going to have an impact on electricity like we thought they would… or it has already been felt.