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tv   Mad Money  CNBC  April 5, 2012 6:00pm-7:00pm EDT

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it right now. >> karen? >> i like pacific drilling, pacd. >> bks? >> and book end renovation nation with usg. buy some. >> all right. i'm melissa lee. thanks of "squawk box" tomorrow starting at 7:00. see you monday for "squawk on the street." i'm jim cramer, and welcome to my world. >> you need to get in the game. >> going out of business and he's nuts! they're nuts! they know nothing! i always like to say there's a bull market somewhere. "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money," welcome to cramerica. other people want to make friends, i'm trying to save you some money. my job is not just to entertain but educate and do teaching, call me 1-800-743-cnbc. at the end of the ugly week, the worst week of the year it felt like europe was in the driver's seat, averages getting kicked down to the curb again, the dow off 15 points, s&p up .6%, nasdaq bounced .4%. i need you to take a deep breath
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and remember, when it comes to the global economy, the united states is still driving the car. sure, there'll be days when we trade off europe, but this isn't 2011 anymore, people. and with earnings season beginning next week, i bet it will happen sooner rather than later. what's the game plan? before we get to earnings, monday starts with the digesting of tomorrow's payroll employment data. okay? the labor department stupidly and i think unreasonably issues the support tomorrow. bli blissfully ignorant that the stock has closed -- hey, come on, it's a regular working day for a lot of people. i care about the market and you and the individual investor and how you won't be able to have the information and people will be trading all over in the future. it's an unfair thing. it's unfair. so the impact will be on monday's trading. i think the numbers won't matter that much because i think it's going to be in line. which means we will then default what we always do in the second week of april, we focus on quarterly earnings reports.
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super value and alcoa kicked things off on tuesday. i think it's tragic that earnings period has to start out with these two companies. a poorly run supermarket chain and an aluminum company that sells into an irrational market. super value which hit a 52-week low is an overleveraged performer with a hefty 6.7% yield. this is one of the dividends that management will keep telling us they're going to preserve right up until the moment that it is cut. i don't want you anywhere near this stock. alcoa on the other hand, much tougher call. here's a company run by terrific chief executive claus kleinfeld. he's made alcoa's aluminum competitive with many other materials. they make the aluminum case for your ipad, the material for natural gas turbines, coke bottles with the interesting print on it. we could be selling 15 million cars this year and they need a
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ton of aluminum. and it's so cheap, it can replace copper as a conductor. but this is a big but, as we saw today with the cuts and capacity that alcoa announced, including takeouts of jobs in italy and spain, there's way too much aluminum being produced the world over. and a lot of it is made in china. where you're allowed to pollute the heck out of the air and where making this stuff is basically a communist works project. here it is, make more aluminum than you need. that's like the first chapter. the prc puts people to work making 5 million tons too much aluminum. there's the overcapacity, and the 390,000 tons that alcoa took out with this announcement, that's a drop in the bucket. sacrifice it to say that alcoa will make a subpar impression for the start of the earnings season and whatever good won't happen until the next quarter. don't freak out if tuesday's full of bad news from svu and in the morning and alcoa after the
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close. wednesday, we'll hear from a little guy, i like to watch these little companies. east group properties this week. i like to hear what they say in order to make a broader view of things. this one's called titan machinery. if you want to read on the agriculture and construction industries before the big ag companies, this little company maybe can give you both. they sell and rent equipment. given that titan carries earth-moving equipment and looks a lot like united rentals, we could get a sense of what bigger companies like caterpillar might report. this is just a fabulous tell on the future. i want you to pay attention to it. i will do it too. google reports on thursday after the close. we may not like how far flung the google empire has now become with so many moving parts, including the motorola mobility deal to get key patents. i know europe's trying to block that, as well as a non-needle mover, the augmented reality glasses and a reinstated lawsuit
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against viacom. what really matters here, earnings. and on that front, i think google's doing quite well. the stock has gotten inexpensive because it's got good growth. web search is google's game. and every time you read something negative about yahoo, that means good news for google, they're taking share. and don't forget, google has mobile, social, and cloud. and that's the holy trinity of tech. and i'm sure there'll be confusion around the number, i believe google's doing just fine. therest a little too much guess work for me to say buy, buy, buy, but i like it as a tech value play. who would've ever thought that goggle would be a tech value play. but it is versus its growth rate. friday is bank day with the results from jpmorgan and wells fargo coming that morning. jpmorgan told you how it was doing in ceo jamie dimon's just released letter to shareholders. i took a lot of heat by saying i thought he was whining. but there is a lot of -- anyway,
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to put it simply, the company's making pretty good money, but could be doing much better if it were not for all the regulations, bad mortgages and the rules that require him to play with one arm tied behind his back against foreign companies as well as rules that require him to keep more capital on the balance sheet than he needs to. my charitable trust owns jpmorgan and by the way, i bank at jpmorgan and i wouldn't be surprised if it goes higher. don't take it all that personally, although i know you will. wells fargo will tell us its cross selling and mortgage businesses are stronger and getting stronger and they will not whine. they will say hey, listen, we'll deal with any environment. i believe wells fargo with less of a tie to europe, meaning like none will be viewed as the better buy now that europe's on the front-burner courtesy of worries about growth and spain. jpmorgan, morgan stanley, and goldman sachs, but not to domestics like wells. beyond earnings, we have some important chinese inflation data
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over the weekend. i don't know, both the consumer price index and producer price index come out sunday. the chinese didn't cut rates last week. business was strong. strong enough not to merit it. but i've got to tell you, i believe that if they get inflation under control as represented by these numbers, the tricomes might play their hand and say the rates must come down. we need to offset the nastiness in europe, it's a tall order, but better happen soon because we're going to be trapped. then the beige book comes out from the fed. they did that nice beige. isn't that good? i think it might reverse the notion that ben bernanke's not going to keep printing money if we see weakness in the economy beyond what's occurred, which caused stocks to get hammered, remember. this is not as important as something from the fed chairman himself, but a key piece to the mosaic of fed thinking. finally on friday, we get industrial data from italy, all right? this is industrial -- picture for industrial data. this is like draw something.
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omgpop, someone did that, it's very good. and it took me like i could figure it out like -- play the game, it's really cool. if we get a weak italian industrial production number, we've got to risk having italy on the red hot griddle. i don't fear italy as much as spain. i'm certain that i'll be the only one that doesn't fear it and people will be saying, well, that industrial data number, italy in more trouble than we thought. here's the bottom line. everybody's making a fuss about tomorrow's unemployment report from the labor department. but when the market digests it monday and it should have been out yesterday. i bet the numbers will be in line and close to a non-event. after that, we default to earnings season. remember that super value and alcoa, the to two companies that kick things off are not representative of what's going to come after. super value, perpetual loser. alcoa, many fine points that are still being crushed like a tin can by china's relentless overproduction of aluminum. as long as you don't take your cue from these two companies and
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be attuned to the better reports later in the week, i think you will do as my phillies did opening day. meaning, you'll do just fine. let's go to sam in ohio. sam? >> caller: jim, thanks for taking my call. >> my pleasure. >> caller: a lot of success this year and i've done very well trading in. with that said, how will passing on the jobs act today change trading ipos from this point forward? >> a lot ado about nothing. it is very difficult -- a lot of companies don't want to come public. i think it's a good thing that they're going to be able to do it. i'm sure there'll be a lot of what herb greenberg said, increased chicanery. debra said the same thing at the "closing bell." i'm not as concerned. i think it's good, too much regulation for small cap companies that want to come public. let's go to dwayne in kansas. dwayne?
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>> caller: hey, big boo-yah. >> boo-yah back at you. sorry about the loss, but that's all right. good to be in. >> anyway, love you -- love that. >> thank you. >> caller: you called that right out. i'm looking at consolation brands now. and i know they got beaten up, is there a buying point? >> no, i heard the ceo, he was on "closing bell." i was surprised he came on given how bad the quarter was and the guidance was. goldman sachs recommended it earlier this week and took beam off the list. and everyone figured it must be really good or goldman wouldn't recommend it. that was wrong. i'll pay that guy at goldman another $4 million or $5 million. i think tomorrow's employer report will be in line, all right. and another big impact, shame on the labor department for putting it out on good friday. and next earnings season, we're not going to pay attention to these, we're going to pay attention to the rest of these. particularly that one which i
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think is going to be very good. "mad money" will be right back. coming up -- shales away? with nat gas prices near ten-year lows, u.s. are feeling the pinch. can rich oil plays give these wildcatters a strong cash flow? cramer's exclusive with devon energy's ceo is next. and later, bad apple? its products have dominated the competition. while the stock has continued to make new all-time highs, now apple sits atop the tape as one of the most valuable companies in the world. what affect is this having on the market? cramer slices into the issue all coming up on "mad money." miss out on "mad money"? get your text alert today, text "mm" to 26221 to get cramer on your phone. for more information, visit
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madmoney@cnbc.com. or give us a call at 1-800-743-cnbc.
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never let a garden variety selloff like we've had this week blind you to opportunity. whenever we get a nasty pullback like the one we had yesterday, lots of good news tends to slip through the cracks because people were too panicked to notice anything positive. and that can create some incredible bargains. take devon energy, dvn, oil and gas company, i like it so much my charitable trust owns it, you can follow along at actionsalertplus.com. devon is an example of how companies can and do change their stripes. used to be a global exploration and production player with offshore assets, but starting in 2010, the company sold off the international and offshore business, turning itself into a north american oil and gas play. now focusing like a laser on finding new oil and higher priced nat gas liquids rather than cheap, dry, natural gas. for 2012, 90% of the capital expenditure budget is guaranteed to oil and oil liquids.
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yesterday devon held what i thought was a bullish analyst meeting, but the news was largely ignored because of the selloff and the stock barely budged. today it went down even though the price of gas rebounded about $1.80. they talked about their acreage in the barnette shale, and we talked about that one, the one in canada, and a new one called the kline shale in texas. undisclosed play where they plan to drill 15 wells this year. devon is getting more aggressive with the company up against the annual expenditure by $6.3 billion. devon plans to grow oil 22% to 24%. that's a growth stock, everybody. increased the output by 11% to 13%. a minor decline in natural gas, it's very impressive. and by the way, we don't care about natural gas at this point. the stock has lagged the rest of the group because investors are skeptical. and they've underestimated the
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value of devon's new oil projects to the point where the stock sits at a 22% discount at asset value and is probably the cheapest of the majors on interest taxes and depreciation. after yesterday's analyst day, you know, i bet it's ready to move higher. i am not kidding. don't take it from me. let's check in with john richelles, president and ceo of devon energy to find out more about what's ahead for his company. welcome back to "mad money." >> it's nice to be with you again, jim, h] are you? >> i'm real good. here's the thing, page 23 of your excellent analyst day i'm going through. i'm going to start with it, even though you could argue we should start with the budget increase because it's misconceptions about devon. and i want to explain to people how the disconnect is wrong between your valuation what the stock goes for. that -- true or false?
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natural gas focus with mineral liquids exposure. >> that's not the case at all, jim. and in fact, we've always had a strategy of being balanced producer, liquids on one hand and natural gas on the other. and in 2000 -- currently, we're producing about 35% or so in the form of oil and liquids. and that's a lot. i mean, we've got a big production base. we're talking about 250,000 barrels a day of oil and liquids of which 150,000 is crude oil. so we haven't been really a natural gas player even though we have a large natural gas inventory. this year as you've pointed out, we're spending zero on drilling any dry gas wells and only growing our oil and liquids. >> yeah, there's a new one. another one people talk about, key assets are maturing. >> that's because we've got assets like the barnette shale which a lot of people got in, you know, a lot of other companies got in kind of late,
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drilled up their inventory and have left for us because we got in so early. we have just tons of running room still in the barnette shale. we've got probably 2,500 risked drilling locations in just the liquids rich part of it. let alone the dry gas. so we're going to be there for years and it's continuing to grow the field outside oklahoma city that we've talked about before is continuing to grow. so our development assets have a lot of growth in them. and what we're doing now is adding on a lot of new emerging exploration opportunities in the oil side. >> all right. last one of the misconceptions. they've got $7.1 billion in cash burning a hole in their pocket and they're going to spend it on something. what about an acquisition? >> that's probably the most frustrating one for me. we've tried to communicate our strategy. our strategy is to build growth organically. we do a lot better when we can create things wholesale rather than going out and buying something retail. and we've got the capability and the inventory to grow internally
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and to allocate that cash we have. which by the way gives us a huge competitive advantage. we've got a big asset base and we have the cash to develop it. and that's a better place for us to allocate our money. >> i've got half the guys come on here and they don't have any money and they're drilling like mad and they keep funding gap. that's what worries me, not the fact you have $7 billion in cash. how about this one? you would not reveal last time the field because you were still -- you were still trying to get all the leases in. this cline field, 500,000 acres, a lot of oil in that one? >> yeah, there's a lot of oil, jim. we're really excited about it. this is in the eastern flank of the permian basin. that's a very oil-rich area multi-horizon and we're really focused there on this cline shale. we have a lot of optimism about it and a lot of confidence it's going to work out well. so a number of other horizons
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that are that have oil potential, as well. so it's an area that we're going to be aggressive in in the next few years and we're going to move ahead and develop fairly quickly. >> all right, one of the things i know is going to keep you back. people do know there is a lot of nat gas. is it going to take out $2? >> i think we're going to see one hand natural gas this summer at some point in time because of where we are on the -- at least on the spot market. just because of where we are in the storage picture right now. we probably have in north america a tcf or something like that over our normal storage and in the summer it's going to get filled up pretty quickly. but we see activities slowing down in a lot of areas. and it should be slowing down in a lot of areas where people were drilling dry gas. and so we have a bit more of an optimistic feeling as we get into 2013 and beyond. >> and brent at $120, surprising, could it go to $140? the way boone pickens is saying?
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>> well, it sure could. in the past what we've seen -- and fundamentals of oil are so much different and all the geopolitical issues around the world keep the price of it high, as well. but as we've seen in the past as we get much past $120 a barrel, you start to have demand erosion, as well. i don't know whether that's sustainable for any period of time. >> now, we've had this decline even since the last time we saw you. further decline in natural gas, and yet i still don't see any of the big chains saying we're going to put natural gas stations in our -- we're going to put natural gas pumps in our stations. instead, i hear that shell's thinking about building a $10 billion refinery to turn natural gas into diesel. why do they need to do that if we have west port innovations and cummings making natural gas trucks? >> well, that's -- that's a great question. and i think we are going to start to see a lot more natural gas used in the future and
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transportation. i think it will really help. we've got some car manufacturers that the vehicle manufacturers now putting out pickup trucks that come ready for -- ready to use natural gas rather than being after market conversions, and you've got companies like west port and others working hard in that area. where we're starting to see it quite a bit is in fleet vehicles, buses, and that type of thing. it's a little bit more challenging for long haul and long distance travel just because it requires more work on the infrastructure, the fuel delivery system. >> all right. one last line of inquiry that matters to me because people don't give you credit for it. you do have a gigantic canadian operation, don't you? >> yeah, we have. it's about a third -- about 30% of our company. >> and people say, hold on, there's this no keystone pipeline, that's not true either, right? >> it's not. there are other work -- there are other pipelines available and other companies are developing pipelines to get it out. and with the president's position recently and not having approved the northern portion of
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the keystone pipeline, there's tremendous pressure in canada now to move that oil to the west coast and send it to asia. so that oil is going to be produced and it's going somewhere. we hope it's going to come here to the u.s. but if it doesn't and if we don't get that pipeline approved, it may well go to the west coast. >> and if we don't start using natural gas? energy is going to send our natural gas overseas too, isn't it? >> well, there's certainly some movement. as you know to build lng terminals to export natural gas, we're seeing that in the gulf coast area and we're seeing in the west coast of canada. >> so the world's pretty up -- the united states is upside down when it comes to nonenergy policy. not only take advantage of a huge natural gas resource, but what is also becoming evident as a huge oil resource, we need to get after it. >> it's so -- i've gotten very cynical about it, john.
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i'm not even skeptical. i'm downright cynical. john richels, fantastic job. great to see you, sir. >> great to see you too, jim. thanks for having me on. >> all right, john richels runs a fabulous, fabulous oil and gas company. it is shifting quickly and that has made it so it is the cheapest in the group. john richels president and ceo of devon energy. stick with devon and stick with cramer. coming up -- bad apple? its products have dominated the competition. while the stock has continued to make new all-time highs. now apple sits atop the tape as one of the most valuable companies in the world. but what affect is this having on the market? cramer slices into the issue. s. find out more online.
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arrival. with hertz gold plus rewards, you skip the counters, the lines, and the paperwork. zap. it's our fastest and easiest way to get you into your car. it's just another way you'll be traveling at the speed of hertz. do the averages tell the real story of this market? or do we have a tail wagging the dog situation where the benchmarks are skewed by the tremendous outperformance of a single huge stock? is it possible that an individual stock could have too much influence on the standard & poors 500? the index that's the most widely used for the overall market? in other words, go on, has apple become too powerful? i've seen and heard a lot of chatter lately. especially twitter@jimcramer, people are really bringing this
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up. worried that the fantastic rally at apple has distorted the performance of the tech-heavy nasdaq and the much broader s&p 500 stock index and inconceivable proposition for this or any individual stock not that long ago. so is this something you should be worried about? like so many are on twitter? has apple's huge run made the market look better than it really is? i think we need to approach this iss issue. to figure out exactly how much influence apple really has on the entire index that is the s&p 500. and i've got to tell you, the results from tim's analysis were striking. before i show you the charts, though, let me explain a little bit about how an index like the s&p works. the s&p 500 is what's known as a capitalization weighted index. which means the components are weighted according to the size of the market cap and that's how an individual stock like apple can make up over 4% of the index even though there's 499 other
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stocks there. since apple's the biggest company, it gets the most weight followed by exxon, ibm, for instance. simply by virtue of the size, apple has more influence over the performance to s&p than any other stock, logical, right? in fact, it accounts for about 20 times as much as the average stock in the index. when you combine that outsize weighting with the fact that app apple's up a staggering 15% year-to-date, you can see why people might be concerned the strength in this one stock may be covering up underlying weakness in the rest of the market? that's what the pundits are telling me. and it's true that apple's had a huge impact. check this chart out. it shows year-to-date performance of apple, the ten largest stocks in the s&p as a separate one and then the index itself and how the s&p would've done without apple. so you've got apple top ten and then i'm sorry you've got apple up here, the top ten, and then you've got the index and then the index without apple.
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you see the bottom one, the black one, without apple. i think that's frankly pretty stunning. you can see a bunch of things here. when you remove apple, it makes a significance difference. look at that. without the lift provided by apple, the s&p 500 would be meaningfully lower, although not usually lower, it wouldn't be like down. and second, not only apple but the ten biggest companies in the index have dramatically outperformed the s&p as a whole. when you consider these components pick up more than 20% of the index, that's a big deal. that's why it'll really measure apple's impact. decided to break down what's happening within the ten largest companies of the s&p. take a look at this graph, it shows you the performance of each stock in the top ten. even with this group of names, apple soars above the rest. microsoft makes a distant second, up a little more than 20%, ibm comes in third, 12%, but the other seven stocks are much less impressive.
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with some of them hovering around the 1% level. and chevron actually in negative territory. isn't that funny with oil at $120 and change? chevron's off 2% for the year. in the first chart, it looked like the components left the broader index in the dust. however, upon closer inspection, it appears it was caused almost exclusively by apple. consider this next graph of the nine largest holdings of the index. excludeing apple, this one's really telling. let's see the excludeing one. as you can see, the s&p is up 11.2% and made that in red. it was easy to see. within this group of mega cap stocks, only microsoft and ibm actually outperformed the index, okay? and ibm only did so slightly. all seven of the other heavily weighted names lagged the broader index. in short, you remove apple and the performance of the other nine trails the overall s&p 500. pretty interesting, that gives
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you a real good sense of apple's power. this stock is so big and has so much momentum. not only canceled out the underperformance of the nine next largest companies, apple made it so the top ten dramatically beat the s&p as a whole. based on the work, there's no doubt apple has played an enormous role in the spectacular r rally from the beginning of the year. we've seen what it's like when a single sector takes over the market and that's what happened in 2008 and 2009 when a handful of bank stocks brought the averages to their knees. for a bull market to be sustainable, it needs to be broad-based. however, i could argue that's exactly the market we have. apple's monster run may be tipping the scales further into positive territory, but even without apple, the s&p 500 is still real darn good shape. for years, the standard & poor's has maintained an alternate version of the s&p 500 where every stock gets weighted
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evenly. and the equal weight at s&p 500 is still up 9.2% for the year, not as good as the real s&p 500, but come on, if you just weighted the stocks equally, s&p's up a lot. how about this? consider the dow jones average only 30 stocks and usually being less representative of the market than the broader s&p 500, even after the recent pullback, the dow is still up 7% for the year and doesn't have apple at all as a component. that's pretty good too. bottom line, based on the terrific work from tim collins, we know that apple exercises a tremendous amount of influence and performance of the s&p 500, but is it too powerful? i don't think so. is the fabulous bull market this year really nothing more than an apple rally in disguise? no way. sure, apple's run makes the s&p look better than it would without apple. but apple's the largest company in the world, it's a stock that tons of people own. the truth is the strength in apple should count for a lot. if we reach a point where
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apple's the only thing propping up the entire s&p 500, then it's a different story. but until then, don't let one stock's strength let you doubt the broader market which is pretty darn good even considering this selloff this week, the worst week of the year so far. ruth in washington, d.c., ruth? >> caller: hi, jim, how are you? >> real good, ruth. >> caller: it's a good day for baseball and it's opening day here and why aren't you at the ballpark? >> i'm not at the ballpark because it's in pittsburgh. >> caller: i know, i'm not at the ballpark either because they're playing the cubbies. >> there's this thing on mlb.com which i never use at work, although i did have to call, you know, george, he's doing their executive producer today to see if i couldn't get i.t. down there to get rid of the spanish language version -- never mind, go ahead. >> caller: well, i'm watching it and we're tied 1-1 in the eighth inning.
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anyway, and i know how much you love baseball. >> i do! i do! i just love it! i admit it! i love baseball. i love baseball! >> i do too. i love it. my stock is verifone, p.a.y. and i see it as huge. >> i have to tell you, i agree with you incredibly both about baseball, ruth, and about p.a.y. that goldman sachs report coming out today recommending it made me want to jump up and down to say everyone should be in p.a.y. precisely for the reasons ruth said, except ruth's not paying the $2 million that goldman sachs pays you to make that statement. the strength in big apple counts a lot. but the rest of the market's pretty darn strong too. don't write off the market by saying it's all apple. because you know what? it's all apple and a bunch of other stocks too. stay with cramer.
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coming up, can you handle the heat? cramer gets you fired up for a searing hot lightning round. tweet week continues as cramer goes off the charts. and the question, tweet it to @jimcramer #madtweets and it might be on the air. [ artis brown ] america is facing some tough challenges right now. two of the most important are energy security and economic growth. north america actually has one of the largest oil reserves in the world. a large part of that is oil sands. this resource has the ability to create hundreds of thousands of jobs. at our kearl project in canada, we'll be able to produce these oil sands with the same emissions as many other oils and that's a huge breakthrough.
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that's good for our country's energy security and our economy.
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it is time -- it's time for the "lightning round" on cramer's "mad money." rapid-fire calls, say the name of the stock, i tell you whether to buy or sell. play until this sound -- [ buzzer ] and then the "lightning round" is over. are you ready skee-daddy. i'm going to start with teri in pennsylvania. >> caller: hi, jim, thanks for everything. my stock is ryn. >> i like them but i'm going to see you with timber, which i like even more. john in florida? >> caller: hi, jim, it's john in florida. >> oh, man, i'm not done eating.
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go ahead. >> caller: i've spoken to you before and my opinion you're the go-to guy for an honest opinion and advice. and i want to say your two girls kate and heather, they're an asset how they treat callers. >> they are fabulous and i do love them. let's get to work. >> caller: anyway, callaway golf, ely. >> i know people saying golf's coming back, i'm a sell, sell, sell. buy dks, that's better. richard in hawaii. richard? >> caller: hello, sir, and aloha from honolulu. i have a question about cheniere energy partners, and they're working on a facility in louisiana, blackstone put $2 billion in the company in february, and i was wondering what you think the long-term prospects of that are?
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>> you know we have had him on the show. i like that guy a lot, man. we made a bunch of money in the stock. that means we've got to wait for it to cool down a little. it drops a couple bucks, then bingo! eric in arizona. eric? >> caller: hey, jim. how you doing? >> real good, eric. how about you? >> caller: good. slb, schlumberger, i own the stock, seen it in the 90s, but last august after poor earnings, the stock has never recovered. is this a long-term stock for me? or should i look at it in the high 80s low 90s? >> short-term, i don't think it's going to do anything, there's a lot of charter. schlumberger is the best company in the industry long-term. and i want to own the stock right into the weakness. now we're going to austin in florida. austin? >> caller: big boo-yah from austin. dr. phillips, florida. >> i'm not familiar with that. >> caller: the question is on pandora, p, we bought it at 14
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and wondered what you think we should do with it? >> sell, sell, sell, sell, sell, sell! >> you've got to have a business model, and i don't see pandora having a business model. it's an interesting product, but sometimes a product does not make a stock. let's go to hershey in new york. >> i wanted to ask you, what's your take on broad vision? >> i don't know. you know, i don't like that company at all. here's what i would do. hershey, i would change my name to broadvision and call me and ask me about hershey and i would say two thumbs up. couldn't resist. and that, ladies and gentlemen is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade. take the privileged investing tools of wall street and make them simple, intuitive, and available to all. distill all that data. make information instinctual, visual. introducing trade architect,
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i want to take a few minutes to respond to your tweets, but first, housekeeping to take care of. back on march 21st, howard from arizona wanted to know my thoughts on imos. i needed to look at the exposure to apple given all the stocks related to apple have ripped to
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the upside. a leading provider in test services with exposure to smartphones and tablets, cloud computing centers and gaming. all areas that are hot right now. while it benefits from apple's success, this has other end markets and high customer concentrations with novatech, neither company i want to be levered to, in addition, shares are up 2.1% year-to-date, despite losing 13% in the last few days, while this is part of the teardown trade, i think it's time to take profits here. i should have had this one last year. on march 22nd we heard from nathan in my home state of pennsylvania last thursday asked for input on ticker symbol invn. these techies are market pioneer and global leaders in intelligent motion processing solutions that enable a motion-based user interface with six axis and nine axis
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technologies for consumer technology products. power items like nintendos wii, remember the one that lets you play golf at home? when you come to your house, talk about the -- all right, the demand for motion control is spreading deeper and products are getting more sophisticated. today mobile devices like smartphones and tablets are the second major market to adopt motion interspace. it's up 60% year-to-date. also 27 times earnings, even though it's got a 27% long-term growth rate. i think a lot of good news is priced in. you know what? you're going to get a better chance to buy this name during a market pullback. be patient. all right, now some tweets. the punisher 801 -- i'm punisher 800. is roundies? somebody else on twitter was
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saying they went to one of the stores and it was dirty. there's more to it maybe your store's an aberration, that's called anecdotal evidence, with don't use that on "mad money." here's one from top tim lattes? is the nokia lumina a needle mover? it sounded like a needle mover, but it is a late entry into the cell phone business, and i don't think they're going to be able to crack anything new there. no, i'm not a buyer of nokia. some guy may upgrade nokia on monday and probably you should sell it. dow of patrick, jim, i am your age. got to get it together. you know, twitter, they have just a few characters, people use pigeon english. how long do you work out of the morning? how many days a week? i work out hour and a half every day, my trainer jim comes to my house at 4:30 in the morning and beats the heck out of me. one of the things that happens and i love it because that's the
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kind of guy i am. i also do a lot of stretching. there's my whole routine. you do not want my routine. if i could sleep past 2:47 a.m. it would be the greatest thing that's ever happened. it won't happen, why? because my sister can't past 2:47 a.m. i can change the clock and i still get up at 2:47. come on, man, i'm just about -- go to @jimcramer tonight. all i'm going to do is tweet. all right. that is it. i'm just going to tweet and then you can get some answers. "mad money's" back after the break. from the man of steel to your friendly neighborhood web slinger, stories bought for a nickel have soared to billion dollar international blockbusters. >> comic books today are the most important talent pool for movies. >> go inside the evolution of comics and the revolutions in movie making that created the
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lots of people get mystified when i say a company is a poor executer of its operations. i've been critical of so many management teams on "mad money." i blasted sandisk management for being wildly inconsistent. overly critical of the avon company for not being able to deliver to shareholders. and despite the rise in bank of america, the execution of that bank's plan to return to health after the hideous countrywide accusation, and the horrid lending standards of both the original bank of america and then the successor that includes countrywide. the pushback i have been getting on these judgments. it isn't critical about the managements i've selected to be harsh on, most people agree with my choices. it's much more of a sense and this is @jimcramer on twitter. what does it mean to execute, jim? who is executing well?
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tell us what good execution is. okay. so here we go. good execution means having a coherent strategy and then prosecuting that strategy with effective tactics that bring out value and rewards shareholders. so who's performing both tasks? how about a frequent guest of "mad money" who is ceo of ppg and that's the old pittsburgh plate glass. there was a time at hedge fund where every tick down in housing or autos, i would buy puts on this company. i knew that the glass in the cars would be backed up and over inventoried. when bunch came in, he looked at the businesses and decided strategically that he would steer ppg away from commodity kinds of work. commodity business with low priced to earnings multiples and proprietary businesses that the stock market values much more because they have higher margins and the street loves high margins. he picked the industries that
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have pure growth paths, such as high-performance plastics for aerospace as well as new kinds of glasses for optical wear. i know i wear them. most important, he expanded overseas as the parochial pittsburgh plate glass became the international ppg. he embraced europe and asia to hit growth markets as the u.s. stagnated. these are terrific strategies. a well thought out strategy, however, doesn't get you far if you don't execute on the tactics that fulfill those strategies. bunch excelled in the tactical too. coming up with automotive coatings. the best automakers in asia have embraced ppg's products over many others and those car makers are the gold standard in the business. at the same time, though, bunch has been tough as nails. when europe turned down, boom, what did he do? he trimmed and cut and the 2,000 layoffs he announced today despite the profit explosion that allowed him to pre-announce
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better than expected earnings were largely in european markets. finally bunch is one of the most shareholder friendly execs out there. doubters thought this was the same old ppg and perhaps it would even have to cut its dividend. instead bunch steered the company toward dividend increases and at one point we had a real accidental high yielder on our hands because people didn't believe. i believe. how good a job has he done? i think if google business execution, bunch should be first in the queue. no better than bunch, which is why ppg hit a 52-week high today when so many other chemical companies wallow at much lower levels. stick with cramer. next -- >> cut government spending. art lather believes it's the surest path to prosperity. create jobs in america. oil sands projects, like kearl, and the keystone pipeline
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will provide secure and reliable energy to the united states. over the coming years, projects like these could create more than half a million jobs in the us alone. from the canadian border, through the mid west, to the gulf coast. benefiting hundreds of thousands of families throughout the country. this is just what our economy needs right now. and then treats day after day... well, shoot, that's like checking on your burgers after they're burnt! [ male announcer ] treat your frequent heartburn by blocking the acid with prilosec otc. and don't get heartburn in the first place! [ male announcer ] one pill a day. 24 hours. zero heartburn.
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when you need it. it's another reason more investors are saying... [ all ] i'm with scottrade. departure. hertz gold plus rewards also offers ereturn-- our fastest way to return your car. just note your mileage and zap ! you're outta there ! we'll e-mail your receipt in a flash, too. it's just another way you'll be traveling at the speed of hertz. seconds away on the "kudlow report," the president still bullies the supreme court on obama care with a non-denial denial from the justice department. and why does president obama have a nixon's enemy list trying to bully business and everyone else into submission? and famed economist art laffer unveils the last of my commandments. the "kudlow report" is moments away. getting mixed signals from europe? confused by the action? don't miss my take coming up next on the "kudlow report."

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