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Cramer: Sell the HMOs

Wednesday, 30 Sep 2009 | 3:09 PM ET

If the recent performance of HMO stocks is any indication, Cramer said during Wednesday’s Stop Trading!, then some form of a public-option insurance plan will be available to consumers.

Stop Trading, Listen to Cramer!
Mad Money host Jim Cramer shares his stock picks with CNBC's Erin Burnett.

Unitedhealth Group , WellPoint and Humana have seen significant declines over the past couple of weeks, which Cramer attributed to a compromise being struck on this contentious piece of President Obama’s intended health-care reforms.

The public option was voted down in the Senate Finance Committee on Tuesday, but he said he expected a lesser version to pass. That could be bad news for the HMOs.

“This group must be sold,” Cramer said, reiterating his Tuesday call.

Elsewhere in the market, Exelon is “the real winner” when it comes to the Senate’s cap-and-trade bill, Cramer said. The company’s nuclear-power exposure offers the biggest advantage under the proposed legislation.

“The stock’s way off,” Cramer said, giving investors a great entry point.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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  Price   Change %Change
EXC
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HUM
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UNH
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WLP
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