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tv   Mad Money  NBC  April 14, 2012 3:00am-4:00am EDT

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-- captions by vitac -- i'm jim cramer, and welcome to my world. >> you need to get in the game! >> firms are going to go 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 just glad this day was over. my job is not justo entertain you but to educate and teach you. so call me at 1-800-743-cnbc. it's pin the tail on the sell-off again. that's what we were doing again on a day when the averages just were obliterated. dow sinking 137 points. s&p giving up 1.2%. nasdaq plunging 1.45%. people want so much to be able to say this market plummeted because of chinese weakness
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overnight. of course, the chinese stock market was up. or maybe european worries. or because a couple of banks and tech companies reported numbers that looked disappointing. i'm not buying that rap. not at all. truth is we shed some points today because we rallied huge the last two days, biggest two-day rally of the year, and in a healthy market, one that's reliable and bankable, you just don't go up in a straight line. now, i know today's action was unsettling for many. but i remain committed to the notion that the global economy were a game of poker, simple five card stud, then right now we've got a pair of kings, and that could win. in the form of chinese central bank easing that i'm expecting momentarily. much more likely after last night's softer than expected china gdp number and terrific corporate earnings. despite the declines in stocks of google, jpmorgan, and wells fargo. more on that later in the show. yep, earnings aren't going to define this market, which means that next week is about as important as it gets. so what's our game plan?
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well, this is the real report card, boy. this is the biggest set of earnings imaginable. it's going to be the toughest weak of the year for me because i've got so much homework to do. it will be total fog of war and confusion will reign. so as i four times a year warn you, we're going to see a lot of craziness next week as traders take quick action right after a earnings report without doing a stitch of homework. how dangerous is that? well, consider what happened just last night in this market. without listening to the google conference call, morons took the stock up 18 points from the close. people said jim, why didn't you comment on it, do you mind if i listen to the conference call? you know why? those people who bought it 18 points up. it sold off 45 points from where those jokers did their buying. jpmorgan rallied a point and you a half and then proceeded to cascade 2 1/2 bucks from when these brain dead quick draw mcgraws took action. i'm not saying these stocks
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aren't now buys. i think they are. down here. i just need you to be wary of next week because it will be more of the google, jpmorgan nonsense on a daily basis. so listen to the conference call, do your homework, and don't shoot first. lots of traders decided to blow out of the banks after jpmorgan and wells fargo. they were terrific earnings. just because the stock was down people said that was bad. i don't play that game. they got obliterated anyway. you want to turn that whole banking group around you'd better hope that citigroup reports a darn good number on monday. we need to hear about growth turning positive overseas. we need to hear about a cleaner fed-pleasing balance sheet. we need to hear about some sort of return to capital dividend buyback, i'll take anything, or at least a plan the fed could approve. but if we don't get good news, look for more of the same from the banking group after the big c reports. tuesday begins the real parade, and it is a little overwhelming. goldman sachs gives you its quarter. and unlike pretty much anytime i can remember -- of course i worked there in the '80s. i have no well how well they'll do. goldman's become a total black box. my thinking, though, is the company's gone so conservative that even if they report a good number they will be less than
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enthusiastic when they explain the quarter in the conference call. could be still one more down day for the banks if goldman sachs didn't get a little exuberant here. we're also going to hear from the brothers johnson, j & j. and it would shock me if they have anything positive to say at all. other than a long-awaited good-bye to ceo william weldon, who's done a fantastic job at tarnishing j&j's once sterling reputation. lawsuits, recalls, defective products, fines. that's become the hallmark of this once fabulous company. it's almost become their cost of doing business, like a regular line item. pretty disgraceful if you ask me. but the good news is we do have a couple of serial outperformers reporting on tuesday, too, notably coca-cola before the bell and ibm after the close. i think both will light up the sky with good chatter. and i bet we'll be pleasantly surprised when we hear intel's report after the bell because personal computer sales seem to have stabilized because intel's got this terrific server
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business that backs the web. huge servers filled with intel machines and an amazing new chip that's powering smaller form factor pc ands they're selling much better than anyone would have predicted. the semiconductor love's going to continue i think wednesday. that's qualcomm day. oh, boy, do people love that stock. why not? it's the brains behind apple and almost all the smartphones out there. it gives you a delicious opportunity to buy. you know why? because it was off 1.68, 66 today. if it drops a point or two from here you might want to buy it. maybe tuesday evening. right? tuesday at the last hour. ahead of this quarter. qualcomm will not be able to mention apple by name without fear of losing their business, but you might want to pick some of the world's largest company up too. before qualcomm reports. because apple was pretty horrible today. we also hear from american express wednesday afternoon. i think axp will tell you that business is coming back strong. the stock tends to get hammered instantaneous to when it reports. and then spends a couple of days wandering the wilderness before then rocketing higher. since it's owned by my charitable trust you can follow along by subscribing to
3:06 am i'm going to be all over and give you i hope a good quarterly analysis when we come in the next day. thursday will be the roughest day of the week, and not because of earnings. we have a gigantic spanish bond auction that morning. a ten-year bond. and i've got to tell you, i think that auction could go terribly. i think it will be awful. and that's going to control the action in the a.m. you need to know this so you don't get too aggressive on wednesday and then find out that spain did you in if the auction crashes. and i actually suspect it might. by the way, i'll tweet my view of the auction @jimcramer at about 5:25 a.m. thursday morning. okay? a miserable spanish auction might give you a chance to buy morgan stanley. constantly trashed stock. it was down huge today. you might get it as low as the 16s. that could be an excellent opportunity since when morgan stanley reports tuesday morning i think it will be one of the stronger calls out there. morgan stanley is a fabulous firm. i know it doesn't seem like that anymore. i know it's been tarnished as
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the european step child. that's nonsense. bank of america reports that morning too. if the banks continue to go down into this quarter and spain's terrible, then b.a.c. might be ready to rally no matter what. even if its results aren't that good. particularly if it's got what's known as a 7 handle, meaning its stock is only worth $7. otherwise, it's not going to be my favorite. let's think about it. if jpmorgan and wells fargo got pulverized on those excellent quarter, it's hard for me to get behind this poorly performing operation that is bank of america. even if the stock's done well in 2012. but that's because it's so cratered in 2011. after the bell microsoft reports. mr. softy has a new product cycle going for it and that's always been a good time to buy the stock. the bad news, the stock's been red hot. makes me wary going into the quarter. technically we felt if the stock broke below 30 that's when we'd be buyers. usually fridays are light but not during earnings season. we've got four incredibly important reports this friday. it starts with general electric. okay? which i think will be terrific. hence why my charitable trust's been buying it.
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ge's got a 3.5% yield. and i think there's some nifty dividend boosts coming soon. we'll also hear from two other companies that i think are just plain old buys. if they're down ahead of the reports. because the rain in spain hits more than the plain. i'm talking about honeywell and under armour. you've heard me talk about these companies endlessly. and one that should be bought after it disappoints. kimberly clark. magnificent and growing dividend, and it is less than a point off its high. people won't like it. they'll throw it out. and that's your chance. best for last. we hear from schlumberger on friday. and the oil stocks have entered bear market levels now. amazing. because of the collapse in natural gas prices. don't buy slob, as we call it on the trading desk because of its symbol slb. i bet they'll tell you it's an oil drilling renaissance even as it's a natural gas disaster. in sum i think the overall earnings next week will be terrific. you just might not know it, though, until like in football you get a further review. which comes not from looking at the videotape but listening to the conference call.
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not watching the trading. be smart. listen and learn. and only then pull the trigger. let's take some questions. i think we may be going to steve arheino in pennsylvania. steve. >> caller: tgif boo-yah from huntington valley! >> i got good seats me and pop on sunday there, chief. what's up? >> caller: what's up? the ipo market has been vibrant lately. >> yes, it has, steve. >> caller: it recently opened a facebook account and reconnected with some special people from the past. however, with market volatility returning, the instagram, would you be a buyer of the upcoming facebook ipo? >> i think this question is a great one. it's the one that i'm probably most asked when i'm on the street. it's the one i'm most asked @jimcramer on twitter. here's the answer. it all depends on the pricing. that's why i'm going to keep you so close with "mad money" with the pricing that we will be doing an almost -- no, we will
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be doing a daily update of where facebook should be priced because if it's priced below $100 billion, i know that sounds like a lot of money, bingo -- >> buy buy buy! >> and thanks for the call. walter in florida. walter. >> caller: boo-yah, jim, from beautiful del rey beach, florida. >> you do have the edge on us. >> caller: thank you for making all of us real money, "mad money" real money. >> thank you. >> caller: surgical gld and management of -- 450% since you first recommended them. >> thank you. >> caller: reported 8.1 gdp growth. china being the world's largest consumer of raw materials and potential profits and commodity etfs. would you recommend increasing your commodity position now on their present pullback, or would you wait for china to actually announce stronger gdp? >> it's a great question because
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-- let me just take it here because i've got to tell you something, walter. iron ore's already creeping back up. i think copper may have bottomed. i do not want to sell the mineral stocks. they are down too low. if anything, i am a buyer, not a seller. i think the earnings next week should be good. but i remind you, i implore you, don't be a quick draw mcgraw. and the biggest thing next week isn't earnings. it's that miserable spanish bond auction on thursday. stay with cramer. >> announcer: coming up -- out of thin air? with nat gas hitting new decade lows daily, exporting america's most abundant resource is the new reality. cramer's got one stock that could cash in on the trend. jim's exclusive with the ceo of chart industries is next. and later, growth gear. cramer's getting a workout tonight as his hunt for growth has him breaking a sweat. ♪ i work out could this zen stock give your portfolio the right chi?
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it can be tough to remember that even though we have more gas than we can use, in other countries this stuff is actually in incredibly high demand. nat gas is much, much more expensive than the rest of the world. where the commodity's actually wanted, even though they have much less of it than we do. normally when something costs a lot less in europe or china than it does here in the u.s., we just export it. but natural gas is incredibly difficult to transport. because while it's a gas and then takes up a lot of space. if you want to move it around you need to turn natural gas into more compact liquid form by freezing it using huge technologically complex liquefied natural gas, or lng terminals. enter chart industries, gtns for
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all you home gamers. this company's a crucial part of the food chain. they make precision engineered cryogenic equipment which converts natural gas into liquefied natural gas. and the engine tanks that hold lng for heavy trucks that run on the stuff. this company also uses its freezing expertise to deal with industrial gases and they have a terrific consistent biomedical business where they make liquid oxygen therapy systems too. chart gets about 60% of its sales from overseas doing a brisk business as numerous lng facilities are built all over the globe. last month the company tripled its backlog. that's pretty incredible for an engineering construction company. the stock is up a spectacular 88% since the last time we spoke with the ceo back in february of last year. i identified this as a play on natural gas. it's about five points off its high at these levels. does it have even more room to run? let's check in with sam thomas, chairman and ceo of chart industries, to find out more about his company and how other countries use natural gas. mr. thomas, welcome back to "mad money." thank you so much for coming. >> hi, jim. >> have a seat. >> thank you. >> your symbol is gtls. that really is a major part of your story, right? >> it is. gas to liquid systems. >> and nobody else really does
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this, do they? >> well, there's others playin around the edges but not anyone that's as devoted to it as we are and has put as much effort into it as we have. >> okay. you know because you watch the show that i'm a huge backer of natural gas to be used in many different businesses including trucks. can you really scale natural gas without using chart? >> we're involved in just about every application to bring natural gas to market, whether it's processing it to take out the high value liquids, liquefying it, or throughout the value chain if you're not transporting it by pipeline. so if it's being transported as a cryogenic liquid, our equipment's involved. >> so should we care about, for instance, next year lng, another great symbol like gtls? to see if they can get approval for their giant export plant. is that the kind of thing we should be looking more toward if we're going to buy a share in chart? >> that's certainly an
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opportunity. we've currently booked several orders for global scale lng liquefiers in australia. there's quite a few more to come. a number around the world. but certainly we think a few will be built in the u.s. for export. despite the fact that there's lots of uses for natural gas here, there's also constraints on it. but exporting lng is certainly viable because it's worth a lot more outside the u.s. than it is currently in the u.s. >> are you actually -- i don't think you are cheniere, though, right? >> no, we have no relation with them. potential customer. >> right. in some ways most companies come on and they say listen, we have a little china business, could be big. your china business is huge right now. >> it is. it's very strong. we're exporting our heat exchangers for liquefiers into china, also for industrial air separation plants, and then we're manufacturing in china. the full range of our distribution and storage equipment. and in fact, it's now grown so that our lng-related business with distribution and storage is
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larger than our industrial gas business in china. and we're looking at it growing at -- the business growing at 40% to 50% per year for the next five to six years. >> were you guys always in this business, or did -- this became a huge business. nuclear kind of went out. oil went up in price. diesel's really expensive. this was your niche and it just turned out to be a huge business? >> we've always been focused on cryogenic applications and have been involved with natural gas processing for 30 years. we developed a lot of these applications for lng in the early '90s and started to commercialize it. and then of course as there were constraints on natural gas supply it was no longer economic. >> right. >> it's now come back. and with the oil and gas boom in the u.s., particularly because of shale gas, it's not going to go away. this is big, and it's global scale big. >> we feature companies like westport, which is an innovative company -- westport innovation. we featured clean energy fuels. and we get the sense from
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navistar, from cummins, that the truck engines, nat gas truck engines are coming. but that will also be difficult to do without chart, right? >> exactly. we're working with all of those companies. they're all customers. we're doing development contracts with them. and we're bringing to market -- it really has gained incredible momentum over the last six months, particularly as the administration has started to acknowledge it and our energy secretary, steven chu, has really started -- has really come aboard and seeing natural gas as viable, a way to create jobs, as well as reduce our dependence on foreign oil. >> of course. now, we have about 150 natural gas stations in the country. if we put up -- right now there's 100,000 or more regular stations. let's say we put up 2,000 natural gas stations. would it be natural to think a lot of those would be using chart equipment? >> we would certainly hope so. in the initial buildout of the next 150 stations we've won quite a bit of equipment orders on those and are looking forward to it.
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in fact, we're adding factory capacity just to be able to develop that. that's one of our biggest challenges now, jim-s expanding our capacity and keeping it in mine with as the demand develops. >> one last question. you're saying a big constraint is being able to expand at the speed you need to and i imagine also hiring, right? >> that's exactly right. we've gotten to the point where for our welders, our skilled engineers we're doing that training ourselves. >> really? >> and we have to bring them along. the people don't exist. we're having an energy boom in this country. and so qualified engineers with experience here are all employed. >> let me just do because i know you've got to go. i'm sensing that there are people here watching and maybe they need a job and they have that skill. what do they do? go to your website? >> contact us through our website. that's the best opportunity. >> and you're hired. >> yep. >> that's a great story.
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sam thomas, chairman and president and ceo of chart industries. you can see why i've been behind gas to liquids for a very long time. stay with chart. stay with cramer. >> announcer: coming up, growth gear. cramer's getting a workout tonight as his hunt for growth has his breaking a sweat. ♪ i work out could this zen stock give your portfolio the right chi? charlot, where i spent the day with geico driver casey mears. i told him the secret to saving money on car insurance. he told me the secret to his car setup. first he adjusts... first he adjusts... (sfx:engine revving drowns out gecko's dialogue) then he... then he... (sfx:loud drilling noise continues to drown out gecko's dialogue) ...and a quarter cup of then he... neapple juice. or was that the secret to his barbecue sauce? hey, "secret" sauce. geico®. fifteen minutes could save you fifteen percent or more on car insurance. and got this one free. wow! [ tires screech ] buy one 6" sub? [ tires screech ] ...and get another one free? before 9am. all april long.
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mmmmmmmmm. hey. you want to be a really good investor? then you need to change the way you think about your life. or at least sell-offs. like the nasty one we had today and the much larger one earlier in the week. people are naturally prone to panic. so we see a pullback as a sign that we'd better sell everything immediately before it's too late. but the truth is you almost always get a better chance to sell, like we did yesterday. and when stocks are going down, you should be looking for buying opportunities. when they throw a sale at macy's, which you can't get this stuff at, by the way, you don't run out of the store. you load up on the cheaper merchandise. that's why after the best first quarter since 1998, remember that, you need to stop worrying and learn to love declines. since they're pretty much the only way you can buy high-quality stocks at discount prices.
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in this market when i say high-quality, i mean companies with powerful long-term secular growth stories. the kind of rapid yet consistent growth that's coveted in an environment where economies around the globe seem to be slowing. i mean, isn't that what happened today? that's why i spent every day this week putting together the ultimate growth portfolio for 2012. apple, starbucks, chipotle, ross stores, celgene, allergen, all stocks which you can confidently buy into weakness because their growth is so robust that they'll bounce back harder and faster than the rest of the market. with the exception of apple, all of these stocks performed much better than the market today. and many of them were the first to rally when things were ugliest and held up at the end of the day because they have nothing to do with what drove us down. spanish banks, italian bonds, and alleged chinese weakness. allergan and starbucks were up more than a buck.
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that's pretty incredible, isn't it? chipotle, off the charts. and tonight i've got one more for to you round out the list. lulu lemon athletica. lulu. the maker of cool yoga-inspired apparel. it's one of the fastest growing retailers i know. yuelemon has been red hot all year. in part because the company posted fabulous numbers. but also because this is a peter lynch style story. the great magellan fund manager of yore. where people love the stores. they love the products. so they want to buy the stock. as i wish i could every time i duck into my store in summit, new jersey. it's no wonder lululemon rallied practically in a straight line through the first quarter and spent most of march on the new high list. of course i hate chasing stocks. makes you feel like a dope for paying top dollar. i much prefer to buy on a nice juicy pullback. that's what you do. so you should thank your lucky stars that this week's sell-off
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has knocked lulu lemon from its perch. with the stock now down nearly three points off its high, even after it rebounded 38 cents today. still, i -- look, i was hoping for a down day to do this piece. but it is the end of the week and i've waited long enough. why am i so convinced that lulu lemon is worth buying into weakness? as much as i pressure how women look in lulu and as much as i like and need their anti-stink pants, remember that liking the product is only a starting point. it's where you get your inspiration. but after that you've got to do your homework on the actual company. you've got to kick the tires, so to speak. and that's what we try to teach, is how to do homework on "mad money." that's where my ten-point checklist comes in. it's the rubric i've been wheeling out all week to show you how to analyze these fast growing companies. some of you say jim, that's repetitive. but you see, that's kind of the whole point. i'm trying to give you a blueprint here, one that you can use over and over again all by yourself on days like we have today where you're saying, oh,
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geez, i'm just getting crushed. well, maybe this is the antidote to that. step one, does lulu lemmon have the potential for highly visible multiyear growth? come on, not just can it grow but can we see right now how that growth will unfold many years in the future? absolutely. lulu lemon's what i like to call a junior growth stock, meaning it's a relatively small company that's still in the early stages of expanding. in fact, lulu just held a very bullish analysts' day on wednesday, where they clearly laid out their multiyear trajectory. first of all, lulu lemon has a proven concept that its customers, mainly adult women, love, which has allowed the company to generate consistently spectacular same-store sales. up 26% last quarter. up -- oh, much better. up 26% last year compared to just 4% or 5% for the average retailer. that's the highest of any chain
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store i follow. second, the company has a huge runway for increasing its store count. right now lulu lemon has only 150 locations in north america. that's less than halfway to management's ultimate target of 350 stores. and that's just the domestic opportunity. i'm going to get to the international opportunity later. on top of that lulu's already rolled out a second concept. eviva which is their children's store for 6 to 14-year-olds. six locations in canada two, more coming this year, along with five showrooms in the u.s. this company also has a terrific online business. 85% growth clip last year. and they're constantly moving beyond athletic apparel, with a swim line coming up later this quarter. i cannot wait. as well as road biking clothes, more clothing for men, so i can keep on styling. there's a lot happening here. and it all adds up to a pathway for years of highly visible growth. point two. are lulu's end markets big enough to support its plans? i think there's no question that the answer is yes. athletic apparel's a huge
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category. and as the company moves into regular apparel and children's clothes, the total addressable market just gets bigger and bigger. more important, you could argue that lulu's addressable market is really not just the people who do yoga or want to stay in shape but 50.5% of the world, as i have yet to meet a woman who doesn't like this stuff. it's a female version of nike. maybe even bigger. point 3. can the company stay competitive? heck, yeah. not only has lulu lemon built itself into a beloved lifestyle brand with stores where the people love to shop, creating tremendous customer loyalty, but i believe you need to look at lulu as a tech company because it's so innovative. you've got the proprietary technology like the nylon and lycra blend. dries quickly. the anti-bacteria slash anti-stink pants. and the company's constantly inventing new products. new fabrics. then gradually introducing them to a product line and a cycle of innovation that allows lulu to
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perpetually differentiate its products from the competition. point 4. is there any possibility of a dividend in the near future or alternatively we'll take it if it makes more sense for lulu to keep investing that cash in the expanding business. this is a quintessential junior growth company, so it makes a lot more sense for lulu to invest in itself, something that should ultimately reward shareholders via higher share price. point 5. can lulu grow internationally? come on, they already have 19 stores in australia and new zealand, and this year the company plans on seeding various international markets. london showroom opening this month. can you imagine how big it's going to be there? second hong kong showroom coming in the end of may. long-term management sees the potential for at least 300 stores outside north america. i think they're being radically conservative. six, is a balance sheet strong enough to support all this growth? oh, man, this is a pristine balance sheet. they ended last year with 409 million of cash. they don't have a penny of debt. 7. is the stock expensive when it comes to the out years? near term, yes. right now lulu sells for 35
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times next year's earnings estimates but it's not that expensive when you consider the company's 30% long-term growth rate. remember, we have to compare the multiple to the growth rate and that means earnings should be a heck of a lot higher in 2015 and 16. can management execute on this plan? this is a high growth plan. you need good management. and i've got a ton of confidence in lulu's ceo christine day, who took over in june of 2008 after spending 20 years at starbucks, one of the other fabulous growth companies that hit a 52-week high today. howard schultz wrote a letter to all his associates saying don't get bigheaded about that. 9, is lulu hostage to global or domestic economic growth? lulu's a retailer. so a healthy economy helps. but at the end of the day this story's really about the secular growth of a lifestyle brand that won't be daunted by a slowing economy. banco santander not going to hurt this one. last but not heart can lulu grow its margins or will it be overwhelmed by raw costs? it can make its existing stores more productive.
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and the fact they use so many synthetic products as opposed to cotton that helps control input costs. here's the bottom line. in this market i need you to be constantly on the lookout for pullbacks in great growth stocks like lulu lemon because it's the exact kind of company you can buy into the wackness. but for heaven's sake wait for the weakness. no need to jump the gun on a red hot stock when the market will always give you a price break if you're patient. go do some yoga and wait for a downward facing dog day, and then pull the trigger. matt in new york. matt. >> caller: hey, jim. a big philadelphia phillies boo-yah. >> well, man, i'm going sunday with pop. so i'm looking forward to a boo-yah like that. >> caller: yes, sir. i'm calling about hot topic. >> right. >> caller: now, it's coming off this 52-week high. and i have a lot of shares in it. and i just want to know if you think it's still a good idea to hold it or get rid of it. >> no, it's just not consistent enough.
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i blew up on that one, you know, a long time ago. and then it didn't rally. and it's just not a consistent enough stock for me to recommend. i'm sorry. let's go to cory in massachusetts. cory. >> caller: hey, what's going on, jim? i love the show. >> oh, thanks. i'm just trying out some new clothes tonight. what's up? >> caller: i got a question about pharmaceuticals. as i'm sure you know obesity has beme a major issue in our country and also in europe. with arena's drug already meeting one of the two fda standards in achieving their clinical results and having the ema accept the drug followed by sci inc. marketing it, where could you see this -- >> you know, as i told a policeman who asked me yesterday when i was getting my cup of coffee at maxude's, the place i get coffee from for the last 42,000 years, it's sold out. vivus too. ixnay obesitynay. when i see a day like today i o'breathe through my left nostril and look for pullbacks in great stocks like lulu lemon.
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wait for a pullback and pull the trigger. man, i'm feeling relaxed and confident and real smart. stay with cramer. ♪ sail away, sail away >> announcer: stay tuned as we crank up the volume. cramer goes all out as the calls keep coming in. try to keep up on the high-impact "lightning round." and later, cramer's taking your questions on the air. so tweet him @jimcramer #madtweets. and stay tuned for an all new edition of "mad tweets."
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it is time! it's time for the "lightning round" on cramer's "mad money." say the name of the stock. tell you whether to buy buy or sell sell sell. my staff prepares the -- the "lightning round" is over. are you ready, skee-daddy? it's time for the "lightning round" on cramer's "mad money." i want to start with eric in arizona. eric! >> caller: a big desert boo-yah from phoenix, arizona. >> all the way to tacoma. what have you got for me, chief? >> caller: gulfport energy. the company looks solid fundamentally but technically it looks a little weak lately. >> the technicals are right. >> sell sell sell. >> there are so many high-quality oil companies going down. i don't need a not as high quality gas play. lionel in connecticut. lionel. >> caller: boo-yah, jim. >> boo-yah. >> caller: how are you doing, buddy? >> all right.
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how about you? >> caller: pretty good. my stock has a nice dividend. what's your take on international paper? >> oh, man, international paper's just terrific. we have got -- that's a charitable trust name, stephanie link was on tv today talking about how the yield looks great. from feracci is a terrific ceo. and summit's own. new jersey. our town. not my town. joe in indiana. >> caller: can i have your opinion, please, on telecom argentina? >> argentina. me no go argentina. not after what they did with ypf, the oil company. got to stay away from argentina. it's bock a confiscatory environment. jeff in rhode island. >> caller: sir james, how are you? >> i'm better than the rhode island financial -- the government there. what's up? >> caller: exactly. and the red sox having a slow start as usual. but be that as it may, they'll pick it up. fwlt.
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>> no, no, no. >> sell sell sell sell sell. >> you've got oil and gas infrastructure and energy and construction, it's not doing well. gus in arizona. gus. >> caller: a big boo-yah from the university of arizona! how are you doing? >> yeah. we got one of our own there. kate's from the university of arizona. what's going on? >> caller: all right. me and my fraternity brother are trying to make a little money. we bought marriott at 32. mar. >> i like marriott. i do not like it as much as wyndham, which is win, or hot, which is starwood. and that, ladies and gentlemen, is the conclusion of the "lightning round"! ♪ ♪ hey, hockey fans. nobody likes a good power play more than i do. gives you an edge in hockey. but i like the -- that doesn't make sense.
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[ bleep ] what? out of the penalty box and into the goal. >> and into the net. >> that sounds bad. >> i've got to take a nap. >> stay tuned. i'll show you how to stay out of the penalty box and ice the competition. >> one that was bigger that said cramer all over it. >> announcer: and now jim cramer explains dollar tree. >> i shop at dollar tree, and i love it. i bought $34 worth of candy there on sunday including boston baked beans, bottomwood turkish toffee and cow tails. remember them? >> announcer: this has been jim cramer explains dollar tree. ♪ they've got an awful lot of coffee in brazil ♪ >> starbucks. with its bottle frapz and tay-zo teas. tazo. i don't order tea. green mountain coffee. no thanks, go ahead. >> cappuccino with skim.
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>> this coffee tastes like feet. >> they're throwing out the foods. they're sticking a knife in them. yeah. the right time to load up on food stocks is when they're being tossed in the trash. which brings me to sarah lee. it's splitting. you've got to snap it up. ballpark franks. i've been waiting for this sausage throw for months. hillshire farms. sausage is great. you get the picture, right? you get the picture. you get the picture. sorry about the mess. sausagefest. with arthritis pain... a load of new listings... and two pills. after a morning of walk-ups, it's back to more pain, back to more pills. the evening showings bring more pain and more pills.
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sealing the deal... when, hang on... her doctor recommended aleve. it can relieve pain all day with fewer pills than tylenol. this is lois... who chose two aleve and fewer pills for a day free of pain. and get the all day pain relief of aleve in liquid gels. try resolve easy clean to deep clean your carpets. its upright brush with activating trigger removes 3 times more dirt than vacuuming alone. it's just 3 easy steps for beautifully clean carpets. resolve easy clean. don't just vacuum clean. resolve clean. and try resolve triple oxi. to remove stains the first time.
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want to answer a few tweets but first we've got a real backlog of homework. time for some housekeeping. back on march 23rd ted from texas asked about the howard hughes corporation. it's a real estate company spun off from general growth properties a couple years ago. it develops and operates both master plan communities and mixed use properties. assets in 18 states. hhc owns some interesting properties including south street seaport in manhattan. but ultimately it's extremely expensive. 166 times the one earnings estimate we have for next year. nothing written about these guys. doesn't pay a dividend. i'd much rather play real estate through a real estate invest trust with a decent yield like federal realty or tanger factory outlet centers. then on march 28th chris from
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california called about vocs. microcap stock with a tiny market cap of a quarter of a billion dollars. i wanted to do more homework before i rendered an opinion. it's a highly speculative provider of cloud-based marketing and public relations software that helps small businesses influence customers across the web, social networks and through the media. vocus recently bought a social and e-mail marketing firm called icontact for 169 million. but that's a huge deal for such a small company. a little worried about the integration risk going forward. this one's too speculative for me, especially in an environment where small businesses aren't in great shape. take a look at e.t. if you like that one. and on april 4th bill from hawaii wanted to know what to do with ubiquity networks. this one stunned me. i've got to tell you. it makes powerful wireless hardware and right now they're working on a way to use their technology to provide cost effective internet access to underserved rural areas. believe it or not, only about a quarter of the world's population has internet access. and even in developed countries large portions of the population still have little or no access
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to broadband. when ubiquiti became public at three bucks they had 15 platforms. now they have four more. this is a growth stock. it doesn't have anything like the long-term track record of my favorite growth names. get this. the stock's run up 129% since its ipo. we most certainly missed this one. okay? sells for 27 times next year's earnings estimates. the management's projecting about 25% revenue growth for the next several quarters -- next several years, i'm sorry. there might be some opportunity here. but you know what? i've got to have it cool off a bit before i get behind it. but it is interesting. all right? now, some tweets @jimcramer. here's -- let's start with @carapalin. hey, jim, i learned to tweet just so i could talk to you. this was my favorite tweet of the week frankly because it just shows me that i got something cooking here on twitter. and you know, i love reading your tweets. i just -- i do it every night. anyone who goes to @jimcramer knows it's actually me doing them. i put up articles. i answer.
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i like to do a big core download after i'm done with the show and right before i go to bed. what was my most successful tweet this week? when i said listen, guys, i've got to go. i've got to fade into darkness. avici. there must have been 1,000 people who came out and said cramer is much cooler than i thought. believe me, i'm not. my kids are cool. @scott how newski. is it better to own csx or nat? now you're talking about csx and northern american tankers. and the answer is it's okay to own both because they're not that alike. north american tanker's going to report a pretty good quarter. their dividend seems safe to me. csx run by the excellent michael ward. reports next week. they have a little too much coal for me. and coal is in a perma bear market i'm afraid because of the prices of natural gas. here's one. @fellbeast. what's your take on western digital? merger and cloud computing make them a good play. no. boo-yah. all right.
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get this. western digital, there was a really good note this morning saying that it turns out that the earnings are going to be better than expected. it's a very inexpensive stock. why don't i like it? it's not proprietary. i think you should own an intel before you own western digital. "mad money's" back after the break. greetings from the windy city of chicago. people here sure are friendly but some have had a hard time understanding my accent. so to make sure people get every word of the geico savings message i've been practicing how to talk like a true chicagoan. switching to geico could save you hundreds of dollars on car insurance... da bears. haha... you people sure do talk funny. geico®. fifteen minutes could save you fifteen percent or more on car insurance. i'm in italy... ♪ ciao! ciao! ciao! dude!? [ male announcer ] try the delizioso italian b.m.t., one of our fresh takes on italian. subway. eat fresh.
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when i'm on the night shift. when they have more energy than i do. when i don't feel like working out. when there isn't enough of me to go around. ♪ when i have school. and work. every morning. it's faster and easier than coffee. every afternoon when that 2:30 feeling hits. -every day. -every day. every day is a 5-hour energy day. [ male announcer ] 5-hour energy. every day.
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it's so easy just to spike the ball and get so negative here. let me just tick down the bears' talking points. first, china's anemic worst growth in ages, be careful at this pace hard landing. second, europe's back in total crisis mode. given the bond market meltdown in spain and italy, you know the situation's gotten much worse. can banco santander even make it? third, earnings aren't as good as expected, right? google blew the revenues. it's going to have a hard time monetizing mobile.
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jpmorgan and wells fargo going to be in big trouble with mortgage claims for bad loans. not making as much money as we thought. in the card game of the markets no kings, no face cards, just 2s and 3s and 4s. so how come i'm not more upset? well, it a lot of it has to do with israel i've mentally dealt with in the past and refuse to reopen just because the stock market finished in the red after two great days. first i wanted china to get out of the range of 7% to 9% gdp growth with the former now where many people think they'll go after this 8.1 number last night. i need to see numbers that indicate they'll have a soft landing not a hard one. numbers that stop the chinese banks from keeping money tight. in short i needed to see the gdp number i saw last night. including the chinese. that's why their stock market was up today. second when it comes to europe i don't want any lehman style catastrophes. i can handle any slowdown and that's exactly what i expect. we've seen the europeans deal with their crises in a pretty exemplary way since the winter. i think they're going to do it again. i don't want to buy banco santander but i don't think it
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wipes out spain or vice versa. third my biggest worry with the banks has all been about revenue growth. we just haven't had any. suddenly we have it. wells fargo and jpmorgan both had terrific revenue growth. actually stellar. they're growing, they're lending they're making money. they're transcending the nation's weakness. and they are cheap. yes, google had issues. we don't want to see their cost per click a crucial metric go down 12%. that's what happened. we can't dismiss that. we like more robust revenue growth, didn't get it, we don't like the new stock issuance even in the form of a split because it's a tell a giant acquisition could be on the horizon. 30 billion for twitter? we don't like the lack of clarity on this motorola mobility deal. but you know what? the darn thing sells for 12 1/2 times earnings, 11 1/2 times next year's earnings, and even less when you back out the cash. it is as cheap as you can get. all in all, i think we were up big for two days. and today felt like a terrific time to take a profit. i get that. but if recent stock history has taught us one thing, it's never confuse the stock's present decline with what might occur in the future. especially if the stocks have
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run ahead of the numbers. stick with cramer. [ degeneres ] what's more beautiful than a covergirl? two covergirls. that's right. get two miracles in one product. covergirl makeup... and olay advanced hydrating serum. it's new tone rehab 2-in-1 foundation. one pump... covers spots, lines... and wrinkles. and one bottle helps improve skin tone over time. that's what i was supposed to say now. well, no one can understand you. ♪ new tone rehab 2-in-1 foundation from [ babbling ] ...covergirl. that's what i'm talking about. see? what did you just say? i'm looking for some "beeza-beeza-vuza-vuza." those spots are actually leftover food and detergent residue that can redeposit on your dishware during the rinse cycle. gross. jet-dry rinse agent helps wash them away so the only thing left behind is the shine. jet-dry rinses away residues for a sparkling shine.
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just want to talk a second about the banks. all right? everyone's decided that the banks are no good. i actually did a lot of homework on jpmorgan today, and i've got to tell you, not only do i feel jpmorgan's good, but you really want to hope, this is my charitable trust owns, it you really want to hope the stock goes to 40 because then i've got to tell you, i would be a monster buyer. that's how good the quarter is. people have to lighten up and realize that things are getting better in this country, not worse. i know that's hard to believe. but nobody understands that better than jpmorgan. except for maybe wells fargo which also had a really good quarter. yes, google is okay to buy down here. like i say there's always a bull market somewhere. i promise to try to find it for you right here on mmd. i'm jim cramer. i'll see you monday!


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