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A Bet on One-Term Obama?

McDermott’s split into two companies will offer investors two votes, Cramer said during Wednesday’s Mad Money, one for the current administration and one against.

The company’s main divisions – a maker of power-generation systems and nuclear components, and an oil-services business – should be operating independently by the end of the year. The former, called Babcock & Wilcox, will be spun off tax free to McDermott shareholders, and the remaining company will be named J Ray McDermott. Cramer thinks this latter one is the play on President Obama leaving the White House in 2012.

J Ray is an offshore drilling play that designs and constructs offshore rigs and pipelines, in addition to managing construction projects for what Cramer called “the Obama-despised oil companies.” But the fossil-fuel-based division was responsible for MDR’s earnings beat in the most recent quarter, thanks to those companies’ scramble to find new reserves (something Cramer highlighted last week). Regardless of the present White House occupant, though, this carbon-heavy business is largely out of reach, as it earns 90% of revenues overseas.

Cramer said that between Babcock & Wilcox and J Ray, J Ray is the much stronger business. So if you believe its four and out for Obama, then you might want to get in on the split. In the meantime, Weatherford International works well as a play on oil services.

What if you believe the president’s a guaranteed two-termer? Then you might buy some Babcock & Wilcox. Watch the video for Cramer’s full report on that company.

Cramer's charitable trust owns Weatherford International.

Call Cramer: 1-800-743-CNBC

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