Green & the Democrats
If you think green stocks are working now, it’s nothing compared to what they could do if a Democrat wins the presidency in November.
On Wednesday’s Mad Money, Cramer highlighted the environmentally friendly companies that have the best chances to soar under each potential presidential candidate. When it comes to the Democrats, Sen. Hillary Clinton and Sen. Barack Obama are both proposing similar green initiatives that focus on reducing carbon emissions, improving electricity efficiency and promoting renewable fuels and clean energy. So, the question for Mad Money viewers is obvious: Which companies would profit from these proposals?
First Solar , for one. FSLR is already Cramer’s favorite solar play and it could get even hotter if a democrat wins because both candidates have plans to subsidize solar (FSLR hasn’t needed subsidies, which is why Cramer’s such a fan, but that doesn’t mean they would hurt). As far as he is concerned, either candidate could call in FSLR soon after they are inaugurated, and he’d want to be in the stock before that.
Finally, the biggest winners under a Democrat are, as far as Cramer’s concerned, the stocks that are already working pretty well right now: those in the agriculture complex. Remember, no matter who the next president is, they’re going to have to get all their proposals through Congress. It would make sense to count on the companies that already have their hands in the congressional pocketbook to win from this – and that’s ag.
For fertilizer, there’s the usual suspects of Potash , Agrium and Mosaic . For farm equipment, you have Deere and for seeds there’s Dupont and Monsanto . And then don’t forget Archer Daniels Midland , the ethanol king that Cramer has been recommending on a pullback -- which has just arrived.
Save nuclear, a Democratic president should be good for just about everything green. But these stocks, in Cramer’s view at least, could be the ones that stand to benefit the most from the federal trough.
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