for those of you just tuning in now. >> see you tomorrow. have an awesome day, everybody. i always like to say there is a bull market somewhere. "mad money," you can't afford to miss it. hey, i'm cramer. >> i'm jim cramer. welcome to my world. >> you need to get in the game. firms are going to go out business and he's nuts! they are nuts! they know nothing! i always like to say there is 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 just want to help you save some money. my job so educate you, not just to entertain you. so call me at 1-800-743-cnbc. the bears, they want it both ways. they want to send everything down all at once, from companies that benefit to a slowdown to companies that get hammered by one. that's what we saw today. worst day of the year, dow tumbling 214 points.
s&p and nasdaq clobbered. nasty day. now, before we get to today's action and the internal contradictions that i am seeing, i want to point out that the instant we went down again today, the cat callers, the negativists, the people who just love to get -- to just -- love a down day, they were out in full force, saying that i was slaughtering people by recommending stocks, even as the companies beneath them are doing quite well. i'm slaughtering them. first, look, i totally get why the market is selling off. it's not irrational. the news flow has been awful of late. i mean, it's been terrible. >> the house of pain! >> ever since the fed said that things may be getting better, they seem to have gotten much worse. we got weak employment numbers friday. we got a dismal small business survey today showing a downturn in confidence, china showed a big decline in imports last
night, which means they are ratcheting back. and the italian market had a bloodbath last night. >> the house of pain! >> and spain has gone from being a hopeful turn to what can only be regarded as a sure as shooting bailout candidate. spain has a pretty big economy. some of the banks are huge. can they cause a domino-like decline if the bond market there gets ugly? a lot of people think that's what's at stake. plus, based on all this negative news, the technicals went negative. that caused a tsunami, a sudden sell. did you see that? more on that later. i'm not ignoring these negatives. i'm trying to factor them in, because, against them, we have an almost 5% decline from the highs. meaning there is some negative discounting going on, and the market looks bad and not what looks good, like the terrific earnings report out of alcoa.
alcoa of all things, this evening. given that we were at four-year highs just a few sessions ago, you can easily argue we're not done going down. i won't dispute that. given the remarkable run we've had, one of the greatest sustained runs from the september bottom to say we are due for a decline is an understatement. i won't dispute that. could we go down tomorrow, i am not disputing that. could we go down tomorrow? i'm not disputing. does that mean my focus this week is misplaced? does it mean my willingness to be positive is simply ludicrous, given these setbacks, including some that could happen ahead? let me answer in two ways. first, i want to talk about a totally different venue for a moment. a little lighter, because everyone else is darker, and also because sometimes analogies to other endeavors help clarify moments. i want to talk to you about the philadelphia phillies, not just because i'm a ridiculous
phillies fan and worked as an ice cream vendor for years and years and years, hey, ice cream here. vanilla and chocolate. last year they won 102 games, a franchise record. this year, they lost three of the first four games. three of the first four games they played, including two to the less than stellar pittsburgh pirates. the "philadelphia inquirer" ran a poll today gauging the confidence of people had in the phils after dropping three of the fabled four games in a 162-game season. first confidence, and it's too early to judge. second, not in panic mode yet, but worried. hey, this, but not this. and finally the third, losing two games to the pitiful pirates says the phils are in for a hard time being competitive in 2012 and are basically done. >> the house of pain! >> while i know these don't add up to 100%, 10% said they were confident.
15% said they were going to panic. and 55% had already given up on the team. after four games, after they won a franchise record 102 games last year. worse, what did i do? i voted i would give up on the phils twice. i threw in the towel myself. that's how people feel about this market. five days after the sell-off of a record-breaking quarter. i have to restrain to myself from turning too negative like i did on the phils today, given the new set of horribles that have just sprung up. i feel guilty about the two votes. anyway, that's why i struggle to find stocks to buy, not sell into the weakness. that's why i'm emphasizing high growth stocks to you all week. the kinds of companies that bought into the slowdown, the kinds of ones that might be judged by the most recent data, are doing well. that's why i'm staying away from the cyclical stocks in favor of those that do better in a slower growth environment.
and alcoa says buy cyclicals, so does ppg. so does sherwin-williams. it's why i'm recommending the small regional banks other than the big behemoths. it brings me to the contradictions i'm seeing right now in the stock market. the biggest worry in the market is runaway oil. everyone knows that, you watch. and what to do about companies that are net users and those who will have to flinch at $5 a gallon gasoline that we seem to be headed for. but a lot of this is linked to oil stocks that are signalling a dramatic decline. oil is a big cohort in this market. one thing i'm never going to waver on as long as i'm out here. when energy goes down, i get bullish, not bearish. too much can go right when oil goes up, and second, we know there is an opportunity when all stocks are headed down.
plenty do well in a slower or slowing economy, especially those we're telling to you buy into weakness. when oil costs go down ahead of earnings season, they might give you decent quarters, like alcoa, but might tell you that we see that in energy. ceos may take heart, not take fear in the commodities route. and i know about something because of my previous career. almost all hedge funds underperform benchmarks in the first quarter. as i told you many times, they will stoop to nothing to try to show that they were bullish by buying into the markets at the quarter's end. remember the last two weeks? they try to fool their own investors rather than explaining where they missed the rally. ever since april 2nd, they have been smoked, and hence the exacerbated buying, the 50-day moving average breaking.
what we have to deal with here. am i flinching? i would be if i recommending nothing but the rails, the industrials, commodities stocks, minerals and mining. i would be shaky and said buy farm and construction equipment stocks, stocks that my charitable trust dumped when the dumping was good. all right. i plead guilty to liking higher yielding oils and master limited partnerships. i'm willing to take the pain there. but retailers with oil going down, restaurants, when you will be paying less at the pump. drugs, food, consumer products stocks that benefit from raw cost declines, i don't know. you have to give me a better reason to sell those than we took out the 50-day moving average. that's not enough for me. bottom line, nobody likes a streak of losses, right? even if they are preceded by record-breaking wins, the temptation to turn on what had been winning, not everything but the companies of companies that have great growth prospects that are going down, you have to
avoid that temptation. yes, there is no joy in mudville. but there is no panic either. speak of the devil. let's go to shelly in my old home state of pennsylvania. shelly. >> caller: hi, jim. i'm a speech therapist just getting into the game by watching your show. >> thank you. >> caller: thank you. i am following one oak, they are one of six proposed new pipelines from north dakota. >> i have liked them for a long time. i wish they hadn't done this. one of the things we learned at the bakken in august, a lot of companies want to put in these pipelines, and unless the bakken is as big as prudhoe bay there is going to be an excess of pipelines and tracks, they have put a lot of trains in. i kind of think there were other opportunities that they would take advantage of.
all right, the phils are off to a bad start, okay? after a record-breaking season. the market has had a bad few days, i guess we should throw in the towel for everything. excuse me for looking for opportunities. "mad money" will be right back. buy or buyer beware? after a monster first quarter, banks and builders have taken a breather. is it a solid foundation? or should you take the money and run? cramer goes off the charts to find out. and, later, go for growth. cramer's week-long hunt for growth continues. the street's cravings for guac and chips hasn't let up. can this healthier fast food fave continue to serve up sizzling profits for years to come? plus, making waves? a billion dollar buy is putting young energy company on the map in the gulf. could its offshore efforts fuel your portfolio? cramer is exploring the possibilities with energy xxi's ceo, all coming up on "mad money."
miss out on some "mad money?" get your mad money text alerts today. text mm to 26221 to get cramer right on your phone. for more info, visit "mad money.cnbc.com or give us a call at 1-800-743-cnbc. ♪ [ female announcer ] gross -- i'll tell you what's really gross: used dishcloths. they can have a history that they drag around with them. for a cleaner way to clean try bounty extra soft. in this lab demo, one sheet of bounty extra soft leaves this surface 3 times cleaner than a dishcloth. it's super durable too. it's the cleaner way to clean. bring it with bounty extra soft. in the pink pack.
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could erase much of the market's recent gains? that's the single most important question out there. how do we answer it? fundamentally, forget the averages. buy good growth stocks, buy them on the way down, and it's your chance. a lot of the decline today was technical. we need to go off the charts to understand it. today's vicious decline didn't just knock your stocks down, it also transformed the charts in the eyes of many technicians. they went from resilient to repugnant in one session. tonight, we'll go to dan fitzpatrick, a terrific technician that works at thestreet.com to show you how stocks can turn from buys to sells for those who live and die by the charts intraday. take a look at the action of the s&p 500 over the last three days, okay? the s&p had been holding at 1370. this is the spy, so 137 on this chart. holding there. that's a critical level that marked the top back in late february, which we blew through
in mid march. traders were waiting, watching to see what would happen when the s&p tested. when it tested this key level. okay? would it hold, rebound, break down? when this morning came along, the s&p began selling off and didn't pause at 1370. it dropped through that like a rock. it didn't even blink. and you can see it precisely on the chart. pretty hideous, right? happened at 1150. once that key level is broken, everything broke apart according to fitzpatrick it crushed sector after sector. this was the reason we went down big today, people. that's not what people were expecting. after yesterday's shellacking, i asked how the market's strongest sectors were holding up. i was surprised by has response. tech, retail, financials, home builders, they were all holding up pretty darn well going into the session. in fact, as of 24 hours ago, these charts were signaling that
the pullback might be creating fabulous buying opportunities. the trouble with taking your cue from technicals, they can turn on a dime. we have a volatile market. fitzpatrick alerted me that the technical picture had deteriorated courtesy of that breakdown i'm showing. take a look at s & p home builder etf. one of the strongest performers in the first quarter. down more than 3% today. 24 hours ago, when fitzpatrick looked at this, he saw the look of a viable pullback. last time, three times, home building etf pulled back to the 50-day moving average, the blue. first in november and then december, once again in march, you caught a terrific buying opportunity to rebound. so last night, this truck was looking good, like the xhp set up for rebound number four. fitz had one big caveat.
it dipped beneath its moving average, then look out below, and that's exactly what happened today. home etf dropped below the key level on high volume. okay. on high volume and now the chart is really ugly. causing people who bought yesterday to sell today. this despite intraday upgrades of toll brothers and pulte homes by goldman sachs. s&p retail etf, after the xrt broke out it went into consolidation mode and moving sideways in a symmetrical triangle of lower highs and higher lows. during this triangle phase, buyers started stepped in on the xrt's 50-day moving average. the blue line. and the retail etf began trading higher, higher, much higher. as of this morning fitzpatrick's read on the chart was that the buyers would step in as the srt pulled back. it kept happening, around 60. didn't drop below that key
level, we liked it. but with the velocity of today's decline, the etf did break down, and now the sector has become toxic. didn't hold, going to go down. that's what they are saying. not everything is as bad as retailers and home builders. the xlf, financial select, spider etf. even though financials have pulled back 5.4% over the last week, fitz believes they are still in a powerful uptrend. the xlf experienced a golden cross, okay. the golden cross we saw that happening right here. that's where the 50-day moving average crosses above its 200-day moving average which captures the long-term trajectory. this is a loved moment, people. technicians see this as a very positive signal. because it means that the stock or etf is gaining momentum. this came in the period of consolidation.
and trading in a tight range from 1440 to 1550 for about a month and not long after they break out of the congestion area, the big move you saw, as of last night this chart was telling fitz we had a buyable opportunity in the financials. a pullback. but after today's pounding, now they have repealed all of its gains, and the etf is currently testing its critical floor of support at 15. and this morning at 10:00 a.m., the chart was still a buy. by the time we got to 1:00 p.m. it balanced on a knife's edge. the financials can hold above 15, fitzpatrick believes they can rebound if they drop below, then all bets are off. and they are suddenly cautious on this key move. how about tech? take a gander of the xlk. the technology select spider etf. this tech etf has been holding up pretty well over the last two days, pulling back .7%, 1.4% today, despite substantially larger declines in the broader averages. this a sector that's run up 20% this year.
fitz was confident if this held 29, buyers would come in. after today's action, he's not sure 29 can hold. the bottom line, during a horrific sell-off, rely on the fundamentals, because the technicals can change too darn fast to keep up with, unless you are sitting at a desk trading every second. which most of you aren't. i say use the charts, pick up the best stocks in the stock picking market. to me that's a much better way than trying to fathom these very difficult intraday technical moves. hopefully you may now know how your stocks may have been collateral damage to these critical chart breakdowns. after the break, i'll try to make you more money. coming up, go for growth. cramer's week-long hunt for growth continues. the street's cravings for guac and chips hasn't let up. can this healthier fast-food fave continue to serve up sizzling profits for years to come?
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style in 2012, although it can be really hard to tell in the midst of a massive sell-off. i'm talking about turbocharged secular sell-offs. even in the global economy is in lousy shape, as some people think, they have so many good things going for them individually as companies. these are the stocks you need to circle the wagons around. stocks like apple and starbucks. when the sell-off does end, and they all do, high growth names will be the first stocks to rebound and they'll bounce back harder than any other group. i'm highlighting new names every day this week into the sell-off to build the ultimate growth portfolio for 2012. all stocks i think you can buy into the pullback as long as you use wide scales on the way down, meaning put room in between, the long-term storage so powerful, they will still be alive and kicking with plenty of juice whenever the dust settles. who joins the growth pantheon tonight? how about cramer fave chipotle? even after today's drubbing,
it's still growing up in practically a straight line to the point where it seemed like the stock had achieved permanent status on the new high list until last week. it felt like waiting for a pullback. and thanks to the hideous market wide sell-off, you can pick up chipotle at a discount. don't run from it, go to it. scale in slowly. in other words if you want to build a $5,000 position, buy two shares tomorrow when i expect it to be hammered, and only if it's hammered, and wait another 15 points and another 15 points to buy another couple shares. in other words, i'm saying one, this one is going down. two, that's your opportunity to buy a stock that hasn't given you a pullback in ages. if chipotle rallies, i don't want you to chase, even if you love the stores. i had a chicken salad from there today.
what am i supposed to do? suggest you buy it higher? that's not my style. you know the how. why chipotle? i want you to be able to analyze stocks on your own. i rolled out a ten-point system, for evaluating high growth plays that you need to keep in mind. chipotle scores high marks in every metric that counts. first and foremost, we want companies with the potential for multi year growth with high visibility, meaning we can see where the growth is coming from many years in the future. this one has long-term growth in spades. last year, the company reported strongest same store sales in the business. up 11%. and they raised forecast for 2012. the real story isn't the existing locations, it's the new ones they have the capacity to open down the road. they have 1,230 units. over the course this year, they plan to open 155 to 165 new ones, a 13% increase. terrific growth. and the best part, chipotle can keep opening stores at this pace
for nine or ten years before they run out of room to expand. as management estimates, there is enough demand to support 3,500 to 4,000 chipotles in this country alone. the expansion phase is still in early innings, and chipotle has the special sauce that makes the growth stock extra savvy. multiple revenue streams. they are expanding internationally and opened the second restaurant in london, and the first paris location set to open in the spring, and chop house, the asian noodle concept, slowly being rolled out in washington, dc, get the kinks out. when chipotle has saturated the domestic market, they have a couple more legs of growth. international, chop house. can they support the growth we're looking for? absolutely. fast food business, gigantic. can the company stay competitive? please. the idea of healthy fast food was an oxymoron before chipotle. this company has managed to find an incredible niche in the quick serve space, offering healthy, natural organic food that is tasty and good for you.
this is food with integrity. a huge differentiator, allowing them to charge higher prices and raise when needed. the customer knows they are paying for quality. chipotle understand their customer base better than any other restaurant in the world and it's great at giving people what they want. fourth, is a there a possibility of a dividend? the company has such a well-defined growth path, they need to plow the money back into the business for growth. this is the quintessential growth company. no dividend here. management will keep investing the business, which will create more value for shareholders. too much opportunity for them to return money to you right now. fifth, can it expand internationally? yep, we already know chipotle is making a move into europe. asia is next. sixth, is the balance sheet strong enough to support the growth we're looking for? oh, yeah. they are increasing net cash by $235 million last year and the company has hardly any debt. we want the money to grow stores right now. seven, is the stock expensive when it comes to out years?
out years matter to growth investing. they sell 38 times next year's earnings. it might sound expensive to you. but given the company has a 22% long-term growth rate, they have a peg ratio of 1.72. totally reasonable for such a high-quality business. if chipotle can earn $16.50 in 2015, it will be trading at 25 times forward earnings. and that's not that expensive. management? with steve els at the hem, chipotle has the best management team in the fast food business, maybe even in the entire restaurant industry. nine, is the company hostage to global economic growth or the domestic economy? nope. they are a unit growth story, not to mention a play on healthy eating, one of the strongest secular trends out there. last but not least, can the company grow its margins or be overpowered by raw costs? last quarter, they increased by 20 basis points despite higher
food costs. they have more than enough pricing power. if you are searching for stocks to buy into the weakness, like you should be, look for growth stocks. i'm adding chipotle to the ultimate growth stock portfolio. a terrific story. you can own it if you remember to buy it slowly using wide scales on the way down. i'm adamant this stock has room to fall before it resumes its climb. ted, in my home state of new jersey. >> caller: a new york mets booyah. >> rub it in booyah. >> caller: we spoke about a month ago about soda stream and you said stay away from it. i read about a new product that they plan on launching, a cosmetics company, they have actually got something coming out this week and there's a large short interest in it and
it held up pretty well in a lousy market this past week. i'm wondering if anything changed from your perspective? >> no, i don't like the new initiatives, they won't move the needle. the company is slowing. it is what matters with growth investing. let's go to bruce in connecticut. bruce. bruce, how are you? >> caller: hey, i'm right here. today was worse than my first night as an intern in king's county hospital. isrg down 18 in three days. this is irrational. america will not end robotic surgery, iphones, ipads vacations and eating out. am i thinking? keep your faith in america and our kids and keep the money in the market. comments, sir? >> agree with everything, other than say, listen, the sell-off is not irrational. we had a big gain. big gains can we expected. you don't win every game in a 162-game season. you lose some games. a couple lost games.
i say stay the course. isrg, i agree with you about the fundamentals. brett in california? >> caller: booyah, nu skin. do you think it will keep on growing? >> it doesn't have the kind of pedigree i'm looking for in this growth stock series. i'm sorry. look, we had a dismal decline today. i want you to do something about it. look for opportunities of things to buy. high-quality growth stocks like chipotle, which obviously from the chart and action will go lower, but i'm telling you not to run away from them. i'm telling you to walk slowly toward them and pick some up. stay with cramer. coming up, the clock is ticking. call cramer at 1-800-743-cnbc to find out how to fire away at cramer on the lightning round. can he withstand your thunderous onslaught of stocks? later, making waves.
buy, buy, buy, sell, sell, sell. and my staff will make this sound and the lightning round is over. are you ready, skeedaddy? let's start with randy in california. >> caller: how you doing? i'd appreciate any thoughts on sun core energy? >> they need oil to continue to go up. suncor is not fitting what i want to own. no dividend to speak of. i agree oil is coming lower. i want to buy something that doesn't yield 1.5% like suncor, but yields 4% or 4.5%. let's go to nicholas in new york. >> caller: jim, united states merchant marine academy booyah to you, buddy. >> thank you for serving booyah, back at you. >> caller: i own fine materials, amat. my question, buy, sell, or hold, and long or short? >> look, yields 3%, not going anywhere, neither a long nor
short. i'm sorry. i'm going to say don't buy. arlene in california. >> caller: hi, jim. my question concerns monsanto, mon. >> look, this stock has just been destroyed, as has the whole ag sector. deere is now down another 3. monsanto is not that bad. i like monsanto. do i want to make a stand? the stock is in free fall, i would do some buying rather than yelling. denise in vermont. >> caller: hi, jim. booyah from the green mountains. >> green mountain coffee, no thanks. go ahead. >> caller: what the heck, man, hek. >> hek is probably most ridiculed. i said, the stock could go down. i believe it in long term. i do believe it in long term? no. that's not the way i work. i believe in mr. heckman and believe it will come back. do you load up the boat and do it? don't load up the boat in anything, okay?
eric in california. >> caller: jim, how is it going? >> real good, how about you? >> caller: real fine. i'm wondering about broadcom. >> my favorite semiconductor play. the research director of my charitable trust and i, we think broadcom is the cheapest tech stock there is. buy. wendell in indiana. >> caller: jim cramer, booyah from evansville, indiana. how about that owens corning? >> i think the stock could go down to 30, 31 before i pull the trigger. i want to buy it right. gary in florida. >> caller: booyah from gainesville, florida, jim, how are you doing tonight? >> real good, how about you, sunshine? >> caller: doing great. i want to know the epidemic hitting america, what you think about vivus.
>> i wanted to say ring the register. good news is now out. tim in west virginia. tim. >> caller: mr. cramer. >> yeah. >> caller: this is tim with a mountaineer booyah from fairmont, west virginia. >> about as beautiful as it gets there. what's up? >> caller: i got into silicon graphics at about $19 a share. should i take the loss or look into buying more? >> this stock is down, way way too much. now, they did miss and they missed and they missed, we had to go negative on it. i won't tell to you sell it, it's too low. too low to sell. and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade. is. it's something you smell.
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oil is heading down. some say down big. stocks are saying brent crude, currently 120, could break as low as 100. west texas intermediate, flirting with 100, people talking about going to 80. many of the oil and gas related stocks have retreated to levels we saw last time crude plummeted. i'm curious to hear from a real oil company, not oil and gas. one that drills, pumps, and sells crude into these markets, as to where oil can go and how much money can be made with oil, even if the price breaks further. tonight we have on a real oil company. one you may have never heard of, energy xxi, the third largest oil producer in the gulf of mexico shelf.
they purchase fields from exxon, huge drivers of growth and cash flow. it's not levered to the crashing price of that glutted fuel. we have to find out what's going on in the patch now. so many have given up on oil and selling all the stocks and convinced they all go lower. we have to find out if there is still money to be made despite these declines. i would like to welcome john schiller, founder, chairman and ceo of energy xxi. which is exxi for you home gamers. welcome to "mad money." >> glad to be here, how you doing, jim? >> real good. thank you. i went through the 40th annual howard wheeler energy conference. you have to explain how we got great technology here. i found fields discovered in 1948, 1956 and 1973 that are like young fields. how can this be?
>> you know, we went out into the gulf of mexico back then and found some of the -- obviously the largest, biggest structures, shallow and big oil fields. the stunning thing about it, jim, we made 1.7 billion barrels of oil from our six largest fields and we've got a lot more to come out. just 5% more out of the ground equals our total reserves today. almost 100 million barrels of oil and with the technology and pricing available, that's almost a slam dunk. >> why the heck did exxon give up the fields and sell them to you for so little money? >> you know, it's really about a capital opportunity. what they could do there didn't move the dial for them. they took that money and took it to places where they could move it. and, frankly, over the last ten years, the economics have changed dramatically. we drilled a half million barrel opportunity today. we'll make $65 million in revenue for a cost of $10 million. the last time they had a rig
there, ten years ago, that opportunity still cost $8 million to $10 million, but was only a $15 million revenue opportunity. the economics have changed dramatically as crude prices have gone up. >> a field that is producing 10,000 a day, now producing 14,000? >> that's correct. one of our main pass area fields we took over and to tell you the truth, we just finished recompleting two wells at 4,900 feet in the onyx area and we'll change out the pipe and when we're done, we'll have three wells producing close to 10,000 barrels of oil a day, some of the top producers on the shelf. >> that's incredible. mr. schiller, a lot of people are telling me, listen, jim, oil is headed down, and down big, and these oil companies will make a lot less money. are you selling your oil into what? you can sell at brent prices, can't you? >> listen, we are averaging $2 to $3 a barrel above brent. we get heavy louisiana sweet,
and we average $125 at the wellhead. >> if you're $125 and it goes down to $115, you're still making a lot of money, aren't you? >> we make $1.50 present gas discount, every dollar we spend down to $75 oil. >> i know there was a great article today in "the wall street journal." new life for the gulf's dead sea. it really is about your company. and i'm trying to figure out when i look at how much money you are making, what should you be doing with that cash flow? you don't pay a dividend. but you're in a situation where you made in one of your conference calls, you said you spent $8 million and made $40 million almost instantly. that sounds like something you should be returning cash to the shareholders.
>> i think you'll see over the coming months, we've got about $100 million plus in the bank right now, starting to pile up the cash, you'll see us do some dividends, i think you'll see that very shortly, and then we'll look down the road. if things stay where they are, give more money back to the shareholders, but we have such a great drilling opportunity, a lot of the right now, trying to redeploy, and keep generating the type of returns you're talking about. >> is davey jones, this other -- this well that you have a stake in, it's called davey jones, people. do i have no worry about this? there was some chatter from one of your partners, it's still not ready yet. people thought we might have a better read on that and a big piece of your business allegedly? >> look, we're making a five-inch completion. that's not normal business in our business. we typically complete a seven-inch pipe. we're working five-inch pipe from 15,000 to 29,000 feet. so things are slower. i'm very encouraged. i think we have to open up these
zones, we will do it in mud, through casings, with wire line, which is not what we do state of the art. it is what it will take to get this well on line. and everyone is worn out and want instant answers, but the truth of the matter, we'll get it to them and we'll get it to them in the coming quarter. >> one last question. they are telling me i have to go. you think brent will head down to 100? >> i think you can touch $100 for a very short period of time. when you look out long term at what's going on around the world, we can add a lot of oil in the u.s. and you have a tremendous demand coming out of china, india, and the developing countries and you don't have any place that you bring out a bunch of supply. you know, opec is stymied, not a lot of growth. i think long term, you are looking at a 115-140 range around brent. >> you will make a lot of money, if that's the case. john schiller, chairman and ceo of energy xxi.
thank you for being on the show. >> thank you for having us. >> guys, look, a lot of money being made in oil in america and energy xxi is making more than its fair share. john schiller, chairman and ceo of energy xxi. stay with cramer. [ man ] do you think a bottle cap would float on the top of that head? uhhhh... -i don't. -no. ♪ oh!, that's cool, like i said. sweet mamasita [ koch ] a good head on a beer tells you that beer was made with a lot of malted barley. and that's going to deliver a lot of flavor. [ cannon ] a good thick rocky head -- that's really releasing a lot of the hop aroma. you taste the barley, you taste the hops, feels bold. good head on a beer shows that you did your job right and it's going to add to the enjoyment of boston lager. until they see this. the new oral-b pro-health clinical brush. its pro-flex sides adjust to teeth and gums for a better clean. the new pro-health clinical brush from oral-b.
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totally unexpected departure of brian dunn as ceo. or at least the people that follow me on twitter have spoken. and it is a resounding 20-1 view that this electronic chain may not survive. i'm not talking about not being successful. i'm talking about survival. chubs 258. what is that? why do you call yourself that? best buy is just a place to window shop for amazon. sunny_sang says it's just another circuit city. remember those guys? and billgunville doesn't even like to use it as an amazon showroom, noting i found it to be a high-pressure sales experience. what can i say? i agree with you negativists on twitter. i have been telling people to dump best buy for ages. they have to compete against a
low-cost competitor who -- that low-cost competitor brings heavy boxes filled with electronics right to your house, instead of you having to load them in your car and then unload them at home. plus, these are big-ticket items and if i can avoid taxes on big-ticket items, i will always do so, especially when the prices at best buy aren't even competitive, with, yes, amazon. i once did a segment called best buy, calling it best browse because of the amazon factor. it's not all amazon's fault, though. best buy has done a lot of stupid things, not moving aggressively into mobile. sticking with cds when itunes took over, and here is a twitter i'm familiar with, and as cnbc's herb greenberg tweets, best buy spent $1.5 billion buying back shares at $27.50 with the stock now at 22. i have to tell you, herb, and everyone else, i hate companies that decide their stock is cheap and then trash their balance
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