think down here around the $42 level i think you can start nibbling away at whole foods. >> nibbling no pun intended. i'm mandy drury, catch fast mon again tomorrow night at my mission is simple -- to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts no --. hi i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends i'm trying to save you money. i'm trying to educate and teach and coach you, so call me at 1800-743-cnbc or tweet me @jimcramer. thanks for nothing, janet yellen. sheaf used frightening terms to describe the stocks today saying that valuations quote, generally
are quite high end quote and that they represent quote potential dangers. yeah, i think her comments contributed to one more nasty session, dow plunging 86 points. nasdaq tumbling 0.40%. everyone is entitled to their opinion. that doesn't mean i think everyone should express that opinion especially when they run the federal reserve and the topic is stocks. why do i say that? as a grizzled veteran of the markets i know this can be unhelpful. i remember in december of 1996 when alan greenspan panicked many talking about how stocks are suffering from irrational exuberance. how did you do if you listened to greenspan? forget the fact that you would have missed out on one of the greatest bull runs. the dow was at 6308 and now it's over 17300.
come on. same thing happened in july of last year. when janet yellen herself said that valuation metrics in some sectors particularly biotech and social media and i quote, do appear substantially stretched. hmm. how'd that go? okay, at the biotech was up. regeneron was at 317. biogen 318. some biogens are stretched at $98 but add -- a bidding war and add in j&j to the greatest pharmaceutical companies on the earth and now they're at 275. and this morning alexion agreed to buy it a big premium well
above yellen said these stocks were stretched. how about social media, facebook was at 66 and now it's at 78. maybe she meant twitter? nailed it. unchanged year over year. i just wish she had said social media was overstretched at 82. yellen would have a cow if microsoft paid say like 85 bucks for salesforce.com. oh boy that would be a black day for the feds prognosticator in chief for certain. the fact is that when you're in yellen's position nothing good comes with calling stocks overvalued. why not raise the margin requirements? that's something she has the ability to do. we know the real worry about stock valuations comes from those who buy stocks with borrowed money. those people can do serious damage including institutions to themselves and the entire market. especially during a down turn of course. every precipitous decline of my life has been xas brated by margin clerks that were bought
using borrowed or margin money. on margin, bad. so miss yellen if you think the stocks are too expensive raise the margin requirements but don't raise interest rates to pop this perceived bubble in valuation because too often they have nothing to do with each other. i wish the feds had raised the margin rates and not the interest rates. the feds raised the rates 17 times but it would have been a heck of a lot smarter to rise on the stocks rather than damaging the actual businesses and wiping out the economy. we are left with the low rates because of -- because of the fed induced debacle. now yellen did mention that bonds give you a low rate of return but did not flag them as dangerous. however, i would argue that bonds are where the real bubble is. they offer not much real return at all, particularly in germany where i think people will get slaughtered owning those bonds.
stocks with excellent balance sheets that i do not go out of style and they seem reasonably valued. i said that as someone who watches this show thinks the world of this woman. but in this case i think yellen made a mistake and i'll give you three reasons why her valuation comments are wrong. first, i have to tell you ever since i bought the first stock in 1979 people have been telling me the market is overvalued. s&p is at 100 when i made the initial purchase and now it's at 28. i can't remember a time when someone wasn't worried about the stocks being expensive. it's something you should be worried about. i'm not saying it's irresponsible for the fed chief to give us warning about her views. it only shakes the long term investor, shake them out of the market. encouraging people to trade out of the index funds and go into cash with the retirement funds. we know that's a bad call over the last 20 years aside from two or three cases.
maybe yellen thinks this is march of 2000 with the dotcom implosion on the rise. that would be bad. maybe she thinks it's 2007-8 and we're about to go into the great recession. i found them reasonable very us is those moments and that's what matters. second, i think the whole idea of the whole market being overvalued, the notion that the stocks represents pieces of individual businesses. something that warren buffett taught us. we don't want to flit in and out of stocks in general. we want to own the stocks of companies we like at prices we like to buy. sure, if individual stocks are indeed overvalued then ring the register. that makes all the sense. we're rational thinkers here. calling the market overvalue scares people away from making long term investments. and last year it was bargains both for the investors and more important for big pharmaceutical companies that have been scooping them unlike mad because they have an unmet need -- new
product. does yellen know more about health care valuations than johnson & johnson? no, she doesn't. perhaps are overvalued but if things have changed will yellen tell us things have gotten cheap and get back in? i doubt it. if rates go higher, will we get out of stocks? is she taking the stocks higher? maybe she is thinking 10% correction we're out of woods? is she deciding the strong dollar will wipe out the upside? maybe she's concerned about inflation. we don't know. sorry it's too amorphous. other than an excuse to dump stocks with no rationale beyond something relevant. again, if this is what she really believes then she should take advantage of the tools she has in her arsenal. make it expensive to gamble on stocks rather than saying they're too expensive. raise the cost of credit janet yellen, her call. it is a call. somewhat ironic considering how many companies want to buy back their stocks and go at a low
growth environment. for example, i think alexion severely overpaid for this deal that i mentioned. given that the company has no revenue and just one drug close to fruition that only helps close to 35 people. gilead spent $11 billion to buy farm asset which had no revenues to speak of, but had one for help "c." overvalued? i don't think so. if you want to go a -- go ahead and take something off the table because of yellen's amorphous warning but greenspan didn't tell us when to get back in in '96 and yellen was plain wrong about biotech. don't let her call freak you out. i think she's terrific at running the federal reserve, but when it comes to making the calls on the stock market she's 0 for 1. don't take your investment advice from the chief of the
federal reserve of the united states. tony? >> caller: booyah from california. >> beautiful out there. how can i help you? >> caller: well, we can use some rain, but mcdonald's made the news big this week with their recovery plan but meanwhile, burger king and tim horton are growing their sales nicely. they're owned by a canadian company restaurant brands international. whose profits have been trading in the narrow range. so jim, are there problems with qsr -- >> no, no. qsr is good. it isn't just a class. look at wendy's. that was stellar. wendy's doing a fantastic job. i prefer that to both of those. let's go to rudy in florida. >> caller: booyah, jim. anheuser-busch, should i buy more? >> geez, that was a fabulous quarter. they're making so much money. hey, listen, we hood a -- we had a big nightal. that's stz, that's corona. bud and constellation are doing
fabulously. i like that group. boy, they make a lot of money selling beer. sam in california, sam. >> caller: booyah jim. what are your thoughts on zillow on terms -- >> we are so close to zillow being reporting let's look at it. now, last time rascon the ceo was on the show, he did guide down expectations hopefully to levels that are reasonable that he can beat. so let's look and do the homework. devin in connecticut. >> caller: hey a big fan of yours. thanks for taking my call. >> thank you. >> caller: my call is about mci. after listening to the q3 conference call they attributed their lack of revenue to the west coast port strike and i understand that, but the lack of minor projects completed struck me as kind of a red flag. >> i think you're right. i mean look i think you're right. i'm going to go home and listen to corvo tonight. didn't have any problems. sky work solutions didn't have any problems. i'm with you. i think that that is a red flag.
okay, guys janet yellen listen up, because i know you watch. well, maybe not. that's all right. i say yellen stop yelling. when did the fed chief become a stock market commentator? she's great in her field but i don't think she's right when it comes to the stock market or at least how to talk about it. "mad money" tonight my exclusive with a major player in transforming food. i'm going to ask the ceo of hain celestial about the grub. and a new target launched an all out assault on the fracking industry. and stocks have been in the red this year, i'm going to ask the ceo if the company can paint a prettier picture. stick with cramer. don't miss a second of "mad money." follow @jimcramer on twitter. have a question?
what consumers want today is full disclosure. for them to look at a product and say right on the back it says no gmos. that's all i ask for. at hain 99.9% of our products today are gmo free. >> we know that the natural organic trend is here to say. panera bread's announcement of the unacceptable ingreed yents list. hain is one of our long time favorites here on "mad money." do you know it's up 500% since we interviewed him last? the stock is now down more than 10%, since late march.
then this morning hain celestrial reported a pretty solid quarter. despite the impact of the strong dollar and the sizeable business overseas. the gross margin got squeezed some real costs have gone up. still management raised the full year forecast, earnings for sale -- raised the forecast and it got slammed. the reason -- i think actually a lot of it has to do with the high expectations. we have gotten used to hain celestrial being a performer, so while it's not totally perfect it gets hit. however, they're going up in a straight line for years. i think you need to look at this recent pull back as a chance to buy a high quality stock at a nice discount. let's check in with irwin simon, the chairman, founder and ceo of hain celestrial. welcome back to "mad money." >> thank you. >> you had a problem and i want to summarize it as the other dollar. if almonds had not gone up so quickly in price, wouldn't this
gross margin quarter been pretty good? >> we had a great quarter, almost 19% growth single digit organic growth. we grew across the country. we spent more on advertising so it affected our gross margin. but hain is not about a quarter to quarter. listen, we are changing the way that the way the world eats. we started this company 20 years ago. when you mention the word gmo, organic, no one understood it. there's close to 500 whole foods. there's easter certain promotions. i thought we had a great quarter. >> no look, i think in the transcript if people would bother to read it, because they tend to make snap judgments. kroger walmart, they don't have any choice but to go to you because you have so many units. >> well there's 93 millennials out there. we both have daughters who are millennials and we see how consumers are eating. no genetic modified foods.
you saw panera and chipotle and they want more and more ingredients for their consumers. you look at snacks it's replacing the big company snackbes out. there one of the questions asked, millennials are drinking more tea than coffee today. you come back and you say juice. fresh pressed juices where were they a couple of years ago? with that we today have so many products, so many categories. hain has no one product, no one category that represents 14 or 15% of the sales. then a customer well diversified in our base. >> well, tomorrow morning i'm interviewing the ceo of whole foods. people tend to say if whole foods is doing poorly, hain must be doing poorly. it actually may be the opposite.
because, you know we think the world of walter. >> i think the world of walter and of whole foods. listen, whole foods has been out in front of the innovation, of gmo foods and there's so many other retailers that are seeing what consumers want. >> right. brian cornell at target. doug mcmillen at walmart, they have to have more natural organic. >> i have been with both of them and i have been out there talking to them and where they're changing and what their consumers are telling them. that's the thing, if you're a retailer -- if you're in retail, you have to listen to your consumers. especially millennials. if you don't have the product they're looking for they're going somewhere else. >> but i'll tell you something else. we have been speaking with a gentleman, an investor in the farmland lp. are the farmers getting it? jack what are tongue said we have to get this food chain so we can have supply to meet our demand. are they getting it? >> so jim, great question. i think that is one of the
assets that's within hain that no one realized. is our procurement of ingredients. today we're procuring ingredients all around the world. i'm in india, the middle east next week and where we're finding more and more ingredients. 99% of our products they are gmo free. >> right. >> if i had to say what is one of the biggest challenges is finding more and more supply. more and more ingredients that we can continue with our grow. it's not that consumption is growing. it's that consumers are looking for more and more product and converting on the other side. listen, there are two models out there, jim. there's organic growth which is for organic products or takes the heinz kraft model. >> like warren buffett -- >> you can take heinz and kraft, there's no growth. >> you don't think the millennials will get turned on by velveeta? are you a guru a hippie? >> it's not only velveeta, it's
kraft mac roney and cheese. they're not putting the color in there. and so jim, for us and that's where i come back at hain, it's not about the quarter. it's about the long term. it's where the consumers -- >> well, does this have as many chemicals as pringles? >> it has no chemicals and it will more than $50 million at walmart. who heard of kale chips years ago? >> people who don't smile according to warren buffett. anyway, i'm with you. so are my kids. that's irwin simon, who has more chemicals in their food, you or ppg? coming up -- >> we call it the mother fraccer. >> a big activist investor put the smack down on the drilling stocks but is he dead fracking wrong? don't miss cramer's take.
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time for your business entrepreneur of the week. it was only natural that linda started helping christina out when she started her jewelry company christina v. neither of them ever guessed that linda would become the number one employee. for more watch "your business" sunday mornings, 7:30 on msnbc. okay listen to me. not all oil companies are created equally. yet, they're attacked equally and the stocks can fall equally. that's what we learned yesterday when energy resources a stock we own in my charitable trust plummeted almost 500 bucks from 99 to 94 and change.
after putting up fabulous numbers so what happened? energy was singled out on monday during the frac attack by david einhorn. i'm struggling to understand his beef with this particular company. >> mother fracker. but everyone else will know it as pioneer natural resources, ticker pxd. it's the second largest shale oil producer behind eog which is the father fracker. >> eog, father fracker. i bear no animus against einhorn, he directly attacked me as the primary advocate for that stock. seemed prettied a hom nam. so it was a little gratifying to say the least when the "new york times" wrote last november that
ion horn's green light capital ultimately covered the short position of 67 bucks, writing that the bet was and i quote ultimately unsuccessful. it was a good cover to a terrible trade as keurig tripled. i have lost my enthusiasm for the company after the miserable quarter that came out tonight. i have said play this one through coca-cola which has a large stake in it. yet, even after keurig's huge decline it's above where it was when einhorn shorted it. einhorn revealed he was going after amazon as the next target. it's now at 419. nevertheless ion horn included eog in the frac attack calling it overvalued. you saw the clip from monday along with a bunch of other oil producers. i think that judgment weighed heavily on the eog stock after an amazing quarter all things considered. yes, it managed to lower the cost in all three of the major players.
in new mexico and in bakken. it brought it in half the price of two years ago. as they pointed out, eog has better economics at $65 a barrel than at $95 a barrel three years ago. i think that says something. no one disputes that eog is the best rate of return of all the independent oil companies in the u.s. and it has the least leverage. and they produce more oil per well than every single company it competes against. it gets lumped in with the rest of the group, and i think it's ten months too late given that crude is going back up and the independent wells are well off the high. look eog was at 93 when oil was at 44 in january. now at 95 with oil at 61. but i think it's safe to say that this company cut back on the drilling at the right time and is ready with the huge number of soon to produce wells that are extremely lucrative as oil goes higher. i think it did exactly the right
thing as opposed to other companies that started to pump aggressively when oil was lower. no matter the same guy who isolated the big keurig short incorrectly and the huge amazon short which is wrong has declared eog overvalued. we lap it up but with all due respect, i think he was dead wrong to single out eog with the rest of this group. my bottom line to put it diplomatically, perhaps his appraisal of eog will be erroneous and he'll be wrong about amazon. to pronounce him right, i wouldn't bet that way. let's go to john in texas. john? >> caller: good afternoon, john. greetings from stephenville, deep in the heart of texas. >> i'm liking texas tonight what's up? >> caller: i'm looking at large integrated oil and i want your opinion on royal dutch shell. >> i thought they didn't do that acquisition at a good price, and i prefer not to be in that stock. i think there are better oil stocks like eog.
it has the growth that i seek out of the stock. mitch in new jersey. >> caller: hey, jim, thanks so much for having me on the show. >> absolutely. >> caller: i was wondering what's your take on jetblue considering it's up over 30% year to date in the recent rise in oil prices? >> well, i'm not as bullish on jetblue -- it's a good one. i have liked the oil a long time -- i mean all the airlines. i got cooler in the group and lately i have been saying it's southwest. lvu that you want to be in. i know that i love the whole group for a long time because of the consolidation. but there was twice cutting in the last quarter for some of the airlines. let's stick with southwest right here. how about greg in illinois, greg? >> caller: hey, jim, booyah. >> booyah. >> caller: hey, congratulations on all your success. >> thank you. >> caller: hey, jim, a question for you. i have a large portfolio of stocks. i have a question on one in particular chevron. >> look, chevron is good
particularly in the gulf of mexico. i was surprised that stay stopped buying back stock when it was low. i don't like when they buy back stock when it's high and then they step away. disney did the opposite. one of the reasons why i think disney and bob ieger are soar theic are. well, i say we wait and see. my exclusive on the company is so much more than cans of paint. can ppg put a fresh coat of pipe on your portfolio? and are the pipelines a much safer way to move oil? i'll ask the ceo of pipeline energy. and plus a special edition of lightning round so stick with cramer.
this mr. cramer i love the show. >> we really appreciate you out there. >> booyah to my kids aidan, they're learning so much from you. >> booyah, mr. cramer. >> i know you hear this all the time, jim, but thank you, thank you, thank you so much. >> this has been my best year by far and away in the market. >> i want to thank you you know for look out for the regular guys out there. >> i am trying to teach people to be better investors and i'm doing my darn best. that's the goal here. >> great to hear your voice and know that you're there for us.
there's some american companies that are so strong and so well managed that the stocks are worth buying into any meaningful pull back. stocks like ppg who make all kinds of proprietary coatings and paints. they have been chugging their way higher for years under charles bunch. we've heard him many times via satellite. tonight is is a treat because he's in studio. i'm delighted to him on here to hear what he and his company are up to. have a seat. >> thank you. great to be here. >> you have reinvented this company in a way that very -- a lot of people have tried and haven't been able to. i'm looking at a chart, in 2004 you were all sorts of different? k578 chemicals. other people are trying to catch up to you.
>> we were more diversified but in the late '90s we saw the coatings as the best opportunity. the biggest, best businesses, technology, innovation and very consistent cash flow and earnings. so we said let's focus here and let's make some tough choices, but move and get bigger and now we're the number one player in the global coatings industry. >> this market this paint market now you did ax sew nobel and this coe max acquisition in mexico, paying off already. >> yes. we have owned them now six months. we closed on the deal last november. they're off to a great start. high single digit sales and earnings growth. we're really pleased with the opportunities. it will build on our automotive and industrial platform there. so we're pleased to be part of this long term growth story. >> people have to know it's an american company that makes the coatings for the foreign cars that everyone is ga-ga about. >> yes we're a key supply tore the global brands.
bmw, mercedes toyotas. we're involved in supplying them. >> you in this most recent conference call were one of the few executives to say china is good and you used the term encouraged about europe, sticking with that, it's been a month now since you spoke? >> yes, what we see, we see one market the automotive oem sales market in europe has taken off. these first three or four months. now our sales come with the builds. that's trailing a little bit. but we're really encouraged. high single digit growth in oem sales in europe. we think this is the start of something now much better. we have had a few false starts in europe. >> right. >> but we think now with low interest rates, qe lower oil prices, weaker euro it's going to set the stage for further growth. >> you did something very novel only a couple companies have done it.
you did a $1.3 billion euro denominated bond. you have cut your interest bill down dramatically in the last year. >> in half. you know the european interest rates are very low. so we thought this was the best time to position ourselves, some longer term, seven and 12 year debt. a little over 1% rate. it is great time to borrow money in europe. we think it's helping us but it's going to help the economy there. >> we have been watching the dollar. we think it peaked. this is my view on the show a lot. people think the dollar has to go way, way higher but if it peaked you'd have a dramatic change in the numbers that you actually report, right? >> yeah. we were facing a little bit of a currency head wind the last quarter, especially with this stronger dollar. we have seen the dollar pull back a little bit over the last few weeks. it was almost at 105. now it's closer to 111, 112. that helps us. that willen strengthen our translated sales and earnings and should position us better and it gets a little weaker from
here. >> people think that paint is not that intel jechbt of a business but you have taken up r&d rather radically even as you cut costs out of the company. >> right. we're still in innovation and technology company at our heart. if you look at our big customers these are in the aerospace, automotive. marine. these are key markets where they're looking for technology to help them save energy. to better protect or beautify the assets so we think innovation has a real role. we're the innovation and technology leader in terms of expenses and for all of our business. including architectural. so we think it's an important part of our strategy going forward. >> i was going to ask you about the last one, because you have a good read. and you're -- when he says that europe is encouraging that's meaningful. north american architectural are we worried how we feel? >> i feel good about it. we had patchy weather there especially from mid january through mid march. but the overall trend over the
last few years, commercial construction is i havemproving. i think that will continue as the weather picks up in the spring. >> i have a lot of individual investors who have bought this stock because of you coming on regularly. i typically don't want to say there's a -- this split implies more vaultlue. but you're doing a two for one split. >> yes, we think that will help liquidity so we're having a two for one split coming. >> 165 million shares down to 137. last five years. it sound like you're on the lookout for acquisitions but you're going to continue to bring in stock. >> yes, we have a good cash flow generating business model for ppg and so we have cash to deploy both in acquisitions and share buy backs. we did $200 million buy yaks and
we're continuing now. but as you know, we have continued on the acquisition program comex and then followed it up last month with an automotive adhesives and sealants player. we have another one in the third quarter, in the aerospace. but with we're supporting the stock with buy backs and that should continue. >> well, you have had the most consistent of the cyclical companies we have had since we started this show. that's chuck bunch, chairman and ceo of ppg industries. you see why i like ppg so much. it's consistent and reliable. so is chuck. "mad money" is back after the break. tomorrow -- kick off the trading day with "squawk on the street." live from post nine at the nyse. >> i couldn't get a table. it kind of irked me. like no table. it's my place. >> it all starts at 9:00 a.m. eastern.
i mean, maybe -- i believe maybe i'm -- talk about kacapitulation. look at p&g it's down 25%. >> if that stock is there, go and buy it. that's not a -- >> that stock was down -- >> go buy it. >> this is an unprecedented -- >> just go buy proctor & gamble. they have a decent quarter. >> is there a distress -- >> who cares? 49 and a quarter bid for 50,000 proctor if i were at my hedge fund. >> that's -- i mean, that's -- >> see, when i walked out -- i'm not that interested in it. at 47 that's a different security entirely. you have to use limited orders because it jumped seven points because i liked it. it's a fast market. >> now down 688. >> i now flip it at a 59. i paid 500 gs. >> well, five years ago the flash crash. sometimes it's better to be lucky than good. and now it is time -- it is time for the lightning round. you say the name of the stock. i don't know the calls or the name of the stock ahead of time. i tell you whether to buy or
sell. when you hear this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? time for the lightning round. cramer's "mad money." i'll start with mike in florida. >> caller: booyah, jim. happy hump day. i'm calling about cisco -- ticker symbol -- >> they're stuck. if the ftc breaks it it goes up 5% and i don't think they'll go with it. mike in new hampshire. mike mike mike. >> caller: booyah from the granite state. thanks for taking my call. i was considering adding fright car america to my portfolio in the recent dip. what do you think, jim? >> don't -- you know, to me no real conviction at all. i don't think that dip is when to buy. if you want to buy stocks on dip go for yielders. scott in california. scott? >> caller: hey, thanks for having me on the show. >> of course. >> caller: i was wondering what you think of the cold sectors, stock symbol allp --
>> that's grounded in coal. i don't recommend any coal stocks at all. the train has left for that station. let's go to steve in new york. steve? >> caller: booyah jim. i'm a law student but i watch your show every night. i bought this stock on your recommendation at 52 but now it's down about $9 off the $78 high. earnings call tomorrow. do i ring the register on kroger? >> no i'm going to buy it tomorrow and i'm going to interview the ceo tomorrow at 9:00. you want to buy it. one of the reasons it's struggling a bit is kroger. matt in arkansas? >> caller: booyah, jim. >> excellent. >> caller: i wanted to get your
thoughts on rad ware. >> i haven't talked enough about it i remember it. i like palo alto best. but this should be considered as a terrific cyber security play. eric in south carolina, eric? >> caller: hey, booyah, jim. >> booyah. >> caller: calling about l.e. -- >> it looked good when it first came public. the spinoff, it's been down hill. i say stay away. lots of rumors that ann taylor could be acquired. let's go to jared. >> caller: cramer, simply put, you are fiery. i love your passion about stocks. it's contagious. i learn a lot from you and you continue to inspire. i'm calling to ask you about bristol-myers. i want to know your current evaluation. >> well, i thought that bristol-myers conference call was great and i say buy. violet? >> caller: yes, jim, first time caller. >> okay. >> caller: -- aris capital.
>> it's a black box situation, therefore it makes it difficult for me to reach that conclusion so i say stay away. i need to go to phil in ohio. phil. >> caller: yes phil in ohio. jim, how are you? >> i'm doing well, how about you? >> caller: good. love the show. love the enthusiasm. i have a question about the container store. >> boo! >> really one of the worst quarters of the year. when you have a bad quarter and then another bad quarter and then you put two bad quarters together you have a bad hatchlf and that's what the container store has. that's the conclusion of lightning round sclk >> announcer: the lightning round is sponsored by td ameritrade. there's always a bull market that updates to all your devices. and you can share it with one click. wow. how do you find the time to do all this? easy. we combined every birthday and holiday into one celebration. (different holidays being shouted) back to work, guys! i love this times of year. for all the confidence you
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with oil back above $60, natural gas rebounding nicely over the past week how should we approach the pipeline companies that are still well off the highs? consider spectra energy, one of the biggest players out there especially for transporting oil all across the u.s. and canada. i have been a big fan of spectra because they're basically utilities. i can think of the toll road operators consistently high dividends like spectra's down with the 4% yield. something they augmented with a penny. as the price of energy collapsed in 2014 their stock fell from the peak last july.
down to its trough this january with the oil -- when oil finally bottomed. since then it's rebounded, 36 bucks and change it's only 4 bucks above the 52 week low. they do need some parsing, so let's look with the chairman and the ceo of spectra energy to find out more about the quarter and where they're headed. welcome back to "mad money." >> jim, great to be with you. it's been a while. >> yeah. too long. especially because i like that 4% yield and the 30 consecutive quarters of raising the dividends no problem with the distribution, even though oil and gas went down in price. >> absolutely. i think i saw you say 20 months ago, the distribution's up 20% at sep. the dividends are up 20% and we have committed to raise se's dividends by 14 cents a year. right through 2017 because pipe lines are needed regardless of the price of oil or gas. they have to get to demand markets and that's what we're
doing. >> let's talk about that. you have two interesting things happening at your company that really are indicative of the whole country. first we'll get cheap natural gas to the northeast and new england. that is yours. second, we'll be able to get all this natural gas that used to go up from the south down to the south, marseilles and utica. you're key in that. >> that's right. we started to bring gas to your neck of the woods on manhattan just at late 2013. that's the first time in 30 years anybody did that. big benefits there. we're now building two projects currently in to new england and proposing a $3 billion plus project with partners up there, such as ever source. national grid to take gas right into the rest of new england. the most expensive gas in this world was in new england. that's just criminal in many respects. great that we're going to build pipe lines there. then as you said by 2017 we'll move 2.5 bcf of gas to texas
eastern. so we have helped the yankee fans and we're about to help the boston fans and we have a proposal cause proposal called the philly lateral. >> i saw that philly lateral. i was thinking that we're not doing that well. but that's okay, it's early. at greg, you had an issue both canadian currency which is weak and i know you do have one division that's split 50-50. where you have some commodity exposure. can we reassure our viewers that it couldn't necessarily to derail your plans to continue to boost that distribution nor could the canadian currency? >> absolutely. so as i said off the top, we expect to increase the dividend by 14 cents a year right through 2017. we expect no generation of cash to help pay that dividend from that division you're talking about which is dcp. and our currency is largely hedged naturally. so two-thirds of fx impact
actually off set by lower interest expenses. i'm not concerned about that. obviously, dcp over the long run is a great free option for shareholders, it is the number one ngl producer. the number one ngl -- or natural gas processorled and a number one in transportation. you're getting an upside opportunity at dcp as we move forward. >> i know you're mostly in national gas and there was a train crash in north dakota. i think people are under the impression that pipelines are dangerous. if you had to ship via train or pipe line which is the safest? >> well without a doubt i think that's -- may be the safest maybe that doesn't matter. the u.s. government has recognized over and over again that the pipelines are the safest way to move oil and natural gas liquids. that's what i you're seeing a big move to get the pipe lines in place. they're not easy as you know. but it's the safest way and the
cheapest and best way to get it to consumers. >> i think i want to leave it at that. i think people think there's an impression that maybe you can't build them but i know you have rights of way. and that it's somehow going to be stalled. but it's not at all. your company is doing everything right. chairman president and ceo of spectra energy. good to see you. >> you too. >> we like steady distribution gains on "mad money." we like 4% yielders. this is the kind of stock that you need in your portfolio. stay with cramer. jim cramer you're one of my heroes. >>i look forward to your show every weeknight. >> thank you for helping beginning investors like me. >> when you talk about the market i believe you're spot on. >> i love it. thank you so much. every night we watch you. i have learned and earned.
there's some facts about seaworld we'd like you to know. we don't collect killer whales from the wild. and haven't for 35 years. with the hightest standard of animal care in the world, our whales are healthy. they're thriving. i wouldn't work here if they weren't. and government research shows they live just as long as whales in the wild. caring for these whales, we have a great responsibility to get that right. and we take it very seriously. because we love them. and we know you love them too.
all right. take the good with the bad. corvo, terrific semiconductor company with an amazing number after the close. maybe it re-ignites the group. whole foods not that good. i'm interviewing the co-ceo of whole foods tomorrow morning on "squawk on the street." we have to find out whether that slowdown is cyclical or whether it's just kind of a secular decline. don't know until we speak to the co-ceo. i'd like to say there's always a bull market somewhere, i promise to find it just for you right here on "mad money." i'm jim cramer and see you tomorrow.
>> all: cheers. tonight on the profit, amazing grapes is a wine bar and retail shop, the brainchild of a real estate developer who seems more interested in sipping than selling. this is ridiculous. even with more than $3.5 million in sales this past year, amazing grapes is operating at a loss and still can't pay down their mounting debt. this is a business without leadership or direction. i wish that you had passion for the business. you wouldn't be losing money. if i can't find somebody from within to take over amazing grapes and manage its assets this business will be crushed. >> are you the grim reaper, or-- >> sometimes. my name is marcus lemonis, and i fix failing businesses. >> we're out of business. >> we were out of business before, we just didn't know it.