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Capitalize on the chaos in the Capitol?

GameStop, Viacom & more buying back stock

(Click for video linked to a searchable transcript of this Mad Money segment)

If negotiations fall apart, "A handful of companies may view any significant market decline as a buying opportunity," Cramer said.

Because their businesses are strong enough to withstand fall out from the debt debacle, a sell-off may actually be greeted by management with enthusiasm.

That is, managements that have already implemented buybacks may view a Washington-induced sell-off as an opportunity to buy back even more.

Which companies may pounce if stocks swoon? Cramer has identified 7 possibilities. They follow:


"When everyone was scared to death about the gaming business, what did GameStop do? They paid down debt and bought back about a third of the company," Cramer said. That was when the viability of the company was called into question.

Considering now it's widely believed the new video game cycle will benefit GameStop significantly, Cramer sees every reason for the company to scoop up more shares in the event they become significantly cheaper.


"Viacom had 716 million shares outstanding just before the start of the Great Recession," Cramer said. "Now it has 491 million shares. This company loves to buy back stock. I bet Sumner Redstone's Viacom will be bidding for every share that comes in during the impending crisis."

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"The share count at CBS dropped from 771 million in 2006 to 624 million now." Cramer explained. "I suspect that trend continues, especially if this debt-related artificial calamity occurs."

Time Warner

Cramer thinks that Time Warner must think it's stock is too cheap.

"Seven years ago Time Warner had 1.4 billion shares outstanding. Now it has 950 million." If the stock declines, won't Time Warner just want more?

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"In the case of AOL, Tim Armstrong has been deploying that capital in a smart way," Cramer said. And what could be smarter than buying back shares that have become incrementally less expensive.

Wyndham Worldwide

"Four years ago there were 182 million shares of Wyndham outstanding. Now there are 136 million," Cramer said. Again, a decline may trigger buying.


"In six years Autozone has literally bought half the shares outstanding. Don't you think it will have a field day as the food fight in Washington continues? I think it will."

Cramer added that he thinks large institutional investors are also aware of the patterns outlined above.

"I think those huge buyers will be fighting with Gamestop, Viacom, CBS, Time Warner, AOL, Wyndham Worldwide and Autozone for every share. If these companies weren't worried and bought all through the Great Recession, which was real and lasting, don't you think they'll be buying through the debt ceiling debacle, which is phony and not lasting? "

Call Cramer: 1-800-743-CNBC

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