>> i'm jim cramer. 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 want to coach and teach you. call me at 800-743-cnbc. what does this market want out of a stock? what's it demanding? >> right now you can say not much in 2012 since we just had the best january in 15 years! ♪ hallelujah >> despite today's bull action, dow sinking 21 points and s&p

below 5%, nasdaq up 7%, to me, as january goes, so goes nothing else so i'm not putting much stock in this month as a predictor, but the correlations between what i've seen in january and the rest of the year, they give you a false sense of security and i'm not going to let you get complacent because of them. you can forget about me giving you prognostications based on how glorious this month finished. if you bought amazon because january was terrific, you're already hurting -- whoa! from the company's nasty guidance and it isn't even february 1st yet. i want to focus on something far more important. i think you got an incredible glimpse into what the market wants and what it doesn't want on a scale that is so obvious, i have no choice, but to talk about it right at the top of the show unless you missed it, and i know most did. where can we find insight into the market's turn-ons and turnoffs? check out what happened today with the good -- that's mattel,

the maker of barbie along with limited brands, think victoria's secret. the bad, which is exxon, where you just paid a fortune at the pump, but they made much less than i thought they would, and the truly ugly radio shack, which has become a pathetic parody of a retailer. mattel reported a fine quarter today with decent revenue gains operating income up 16%, 7 cents better than what people were looking for. that's all well and good, but it's not what made the stock roar to levels that are 36% higher than where it was a year ago. no. mattel made a new 52-week high today thanks to the company's decision to boost its dividend by an astounding 35% to $1.24 a share. [ applause ] >> that means mattel yields 4% better than treasuries. mattel's management wasn't

content with buying back the usual stock. they want to return a ton of shareholders, and they can do so because the barbie, the hot wheels, the fisher-price, and the american girl and disney toy portfolios are so consistently loved, and no wonder the stock rallied $1.47 or nearly 5%. how could it not? >> all aboard! >> mattel created a huge amount of income for shareholders, so much that it drove the stock immediately higher. how about this limited? limited brands, one amazing stock rallying 57% over the last year. limited is a house of great brands including the aforementioned victoria's secret, pink, bath and body works and henri bendel. they have momentum for certain, but what really matters is limited put out tiny announcement that frankly, blew me away -- and i quote, as part of its ongoing commitment to increasing shareholder value, limited brands announced a 25%

increase in its dividend to $1 from 80 cents a share. nothing! in one fell swoop this retailing conglomerate rewarded the people sticking with it for the long haul. not the people selling. that's what buyback does. limited wants you to be a shareholder. they want you to own and hang out with them, reinvesting that dividend, becoming a long-term owner of the company. i say it's capitalism at its best. i expect them to have a terrific quarter. limited brands has a much better first quarter than most retailers thanks to valentine's day since their stores are the places where men shop for women, although when women are shopping for themselves, believe me. gallant companies in the tradition of highlights magazine, which you can read pretty much at every dentist's office on earth. so if the waiting room is fun for these two companies, who's getting the root canal? who's goofus? how about the shareholders of radio shack and exxon mobil?

nobody has a bad word about exxon, nobody except for me. the oil companies are making so much money they're attracting the wrath of governments everywhere. somehow exxon mobil the acknowledged dean all oil companies managed to take the tiger out of your tank and delivered a terrible quarter! >> boo! >> reminding me of president nixon's admonition about america. exxon has become a pitiful, helpless giant. how did they blow it? how about oil and natural gas production dropping, chemical profits falling 40%? how about refining and marketing profits plummeting 63%? did you pay that much less at the pump? remember a discount? i don't remember. and let's not forget that exxon made the single worst purchase, worst purchase of the millennium, buying xto. >> the house of pain! >> a gigantic natural gas concern at the absolute high for natural gas which has plummeted to 20-year lows. $31 million for xtl.

guess what. i think they could have got it for half, maybe less, and that's a deal that was done less than three years ago. what's exxon doing with all its cash? it boosted the dividend by 7%. it's got a relatively low 2.2% yield especially given that this company has become a value stock with almost no growth. the pharmaceutical companies pay twice that. what exxon seems to be most proud of is what they're always bragging about, is the astounding $22 billion that companies spend buying back 278 million shares. in my view, that's moolah down the drain, giving you 6% gain over year. the money spent on xto could have allowed the company to pay a much larger dividend and the stock would have been much higher. all right, finally, oh, boy. there's radio shack. all right. what can i say? this company has redefined the term pathetic. not only did it preannounce a

horrendous number, expecting 13 cents when looking for 37 cents. if you google massive shortfall. radio shack should be first. not only did they fail to execute. it's almost too funny. the company blamed sprint, blamed sprint for its poor performance and sprint's fault they were awful saying that sprint's prepaid phones failed to sell. last i looked you don't blame suppliers for performance. as shakespeare told us in julius caesar. and what's the shack doing to fix things? suspending its buyback. that's the bold action. the company's been buying back stock all of the way down. i'm sorry -- it's too ridiculous. the stock's fallen 50% in the last year. you know what i'm calling that? buy high, stop buying low,

that's what i think they're doing. brilliant! funny so many people speculated that radio shack would be taken over and as i say never invest in a company based on takeover speculation if the fundamentals are faltering. here's the bottom line. we have the true dichotomy of what's working and what's not in 2012 today. mattel and limited brands and the buyers come a calling. you waste a huge amount of money buying back stock and the shareholders head for the exits and who can blame them. let's go to mike in colorado. mike? >> a big boulder, colorado, rocky mountain high booyah to you, jim. >> that's a better high than what i can come up with. >> first, what's your take on apple's prize with the retailer? it seems strange with the cheap retail model compared to apple's high-end model, and secondly, at what point should we consider taking profit off of it with the possible european fall? >> these are great questions. i did not know that fellow from dixon's who had become the guru of retail there, but i have to believe that tim cook, i'm not going to second guess this

fellow, he's making us too much money, and when the stock gets expensive is when we will sell it and it's not expensive. let's go to chris in new jersey, chris? >> hey, jim, a garden state exit 109 boo-yah to you. >> i'm an exit 141 guy myself. what's on your mind? >> excellent. with the recent earnings taking a hit from the generic competitors, who is benefiting? >> we like big pharma and they have drugs on the pipe. i'm not worried about eli lilly at all. what's hot and what's not? what's working and what's not? there's a dichotomy in the market in 2012. dividends versus buybacks, i know i want to be on team dividend. you should, too. "mad money" will be right back. coming up, golden opportunity? could what happened today make or break the market for the next six months? cramer is checking the technicals to find out, on an all new off the charts.

later, indiscretionary spending the rich get richer and they love to show off. cramer says if you can't beat them, join them and find companies behind the toys for the wealthy. hold on tight for a stock that can take you on a wild ride. plus, down, but not out. while january's been one of the best for the markets in over a decade, dominion resources has been running on fumes, down about 6%, but could exporting nat gas fuel the stock higher? cramer drills down with the company's ceo all coming up on "mad money." miss out on some "mad money?" get your mad money text alert today. text mm to 26221 to get cramer right on your phone. for more info, visit madmoney.cnbc.com. or give us a call at 1-800-743-cnbc.

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>> if you paid any attention whatsoever to the market today then you probably heard about the so-called golden cross in the chart of the s&p 500 because

the business media, including yours truly, has been chatting about it nonstop. to hear some people tell it, this pattern is like the holy grail for chart watchers. the ultimate bullish signal, an infallible green light that means it's time to buy stocks hand over fist. okay. so maybe i'm exaggerating a little, but depending on whom you listen to, this golden cross could be the chart story of the week, the month or even the year 2012. so tonight we're going off the charts with some of our favorite technicians and how to bring them all into this one to explain what the heck this golden cross actually is, as well as what it means for the market and of course, for your portfolio. first, what is it? okay. i have to do a pictorographically. take a look at the s&p 500 and this is going back to 2007. a golden cross, not to be confused with the cross of gold, which they warned us not to crucify ourselves on. golden cross is what the

chartists call it when an index's 50-day moving average crosses above its 200-day moving average. something that happened to the s&p 500 just this morning. why is that considered so bullish? remember what these moving averages represent. the 200-day moving average measures the long-term trajectory. it's the average price of the s&p 500 over the last 200 days, and the 50, with 50-day measures it's short term trajectory, so, when the 50-day crosses above the 200-day, it means that the s&p 500's performance has been improving. the trend over the last two and a half months is better than the trend over the past ten months. that's bullish. as many of the technicians i talked to pointed out, these are lagging indicators meaning they tell you more about the past, not the future. just because the s&p 500 has been getting more positive doesn't mean it will keep getting more positive. why the heck are so many people excited about this crossover then? because it also has a pretty terrific track record of predicting which direction the market will move.

carolyn broaden, the fabulous technician who runs fibonacciqueen.com looked at the average of the s&p 500 for us since the market peaked in 2007. the results are pretty staggering. the chart includes both golden crosses above the 200-day, and deaths crosses where it goes below the 200 day and we get the full balance here. since the 2007 top, these crossovers have created big up or down moves in the s&p 500, four out of five times. guys, that's too many just to be circumstantial or coincidental. first it was a negative death cross, in december 2007, and at first we saw an extended, horrible decline that you had to avoid, right? all of the way through until the generational low in march 2009. second, was there a golden cross in june of 2009, which was followed by a healthy rally all the way into the april 2010 high.

so far, so good. third, another death cross in early july of 2010, this one fooled people. it didn't work. instead the s&p actually rallied 118 points from the july 1st low before we saw a bit of a decline but not enough to take out the previous low. so in this case, listening to the death cross didn't pay off. fourth, in october 2010, we got the latest golden cross. it was golden, too, followed by a beautiful run that lasted until may of 2011. that was a rally about 190 points. in other words, last golden cross was really dispositive, right? and then fifth, we got hit with the death cross in the middle of last august, which was eventually followed by a substantial decline into the october lows. the s&p traded sideways before that happened. i have to tell you, this was a great call. this was a great call and so this was not a great call, but i've got to tell you, man, four out of five, monster calls. four out of five ain't bad in

terms of accuracy. it seems poised for pretty healthy crossover. if the 50-day does keep breaking out then they think we could see much, much higher prices for the s&p 500. however, that doesn't mean we won't also experience a healthy downside correction in the process. most importantly, broaden is adamant that this golden cross is only a single tool in your tool box and it's not worth using as a stand alone signal. it's positive, but not definitive. every great technician we talked to said the same thing. one tool, people. one tool. all that said, was the managing director from barchetta capital management and the another terrific technician that while it is a track ridiculous for the last 50 years, there were times when it didn't work well at all. they are used by people that only go back to the 1960s, but between 1930 and 1960 there were 11 instances of the golden cross

of the s&p composite index and it was correct only about half the time meaning it gave no edge at all. ponzi's takeaway, we can't ignore the recent effectiveness but we shouldn't forget there were long stretches of time where it was useless. and dan fitzpatrick, brilliant technician and my colleague at thestreet.com. you see him many times on cnbc. he says even though the golden cross is a bullish development, he thinks it's not, i repeat, not a tradable event. he says it's more likely to bring in more investors from the sidelines as the stocks can make money which would push the s&p higher over time. also fitz points out not all golden crosses are the same, and this one could be a good one. the 200 day could be moving flat to down while the 50-day moving average has been moving flat to up. it spanned a long period of sideways movement from august to january and that's a base he thinks you can build on. because of the moves here are

fairly flat, it means you're not too late to get in on the action, although fitz does think the current pullback could last longer before the rally resumes. here's the bottom line. don't take the golden cross stuff too seriously. it's not a reason to go crazy and buy the s&p 500 hand over fist. you know what? i regard it as a nice confirmation that you don't have to be totally out of your mind with cock-eyed optimism. after the break i'll try to make you even more money. coming up, indiscretionary spending. the rich get richer and they love to show off. cramer says if you can't beat them, join them. and finds companies behind the toys for the wealthy. hold on tight for a stock that could take you on a wild ride.

right now we're witnessing an honest to goodness renaissance in people buying stuff they don't need. stuff that nobody could ever need, ultra-discretionary merchandise that's downright frankly embarrassing and should make us feel the tiniest bit of ashamed of capitalism.

objects of wealth that must make president obama think the tax rates are way too low and it's not because they've suddenly become frivolous. the average consumer can't afford this junk. no, because the richest of the rich are spending on their favorite toys. that's why all week we're highlighting showoff stocks. we kicked off the series with brunswick last night as a way to play the resurgent boat business. i'm sure you find this needs versus wants thesis a little hard to swallow, right? the economy is still not that hot. there's plenty of uncertainty, so does it really make sense that we'd be seeing a boom in useless big-ticket items? yeah. it's empirical. it does, and that's not just because the rich have been getting richer even as the rest of the country has been treading water. f. scott fitzgerald was right. the rich aren't different from you and me and i can get away with saying that as a 1 percenter, because i'm a cheapskate.

fitzgerald is even more overrated than that hack steinbeck, but what do i know? i think stephen king is the greatest writer of our generation. and tonight i'm going out of my way to prove my point. the rich are different and they're spending like crazy on show off big-ticket items. exhibit a -- ♪ >> snow mobiles! there's been almost no snow to speak of this winter so you have to be crazy to invest in it, right? wrong! just take a look at polaris, pii. the maker of snow mobiles, some of the latter are used for purposes, and they're used for entertainment and they're the rich people's toys and despite the environment with no snow to speak of, polaris is less than two points off its 52-week high and the stock's up 14% year to date. not only that, but when you look at the action in this one, it sent out one of the strongest tells i've seen in the stock market, an indication that

polaris, the stock, may actually be almost bulletproof. like it's living in some kind of privileged alternate universe, the fourth world where the ordinary rules of the market don't apply. polaris reported back on tuesday of last week with the results coming up after the close and the quarterly results were pretty good and they were substantially better than expected revenues that rose 26.5% year over year. management's guidance from 2012 came in below expectations, kind of like amazon. remember, things didn't get confusing during the earnings season, but the guidance is a lot more important than the rear-view mirror results because as investors we care about the future, not the past. normally, if a company the size of polaris has a market cap of $4.4 billion gave disappointing guidance we would expect it to see amazon and the gigantic slashing of value and maybe a 10% haircut, but that's not what happened with polaris.

right before polaris reported it closed at $60.69. the next day, last wednesday it initially does what you'd expect, trading down to 59 bucks and stopped trading and then the stock reverses and starts to rally like crazy. and it's $65.32, turning a 5% decline into a 4.1% surge higher. >> the house of pain. >> house of pleasure. >> since then polaris pulled back a touch, coming down more than a point and it's up from where it reported the discouraging guidance. look, guys, even more ridiculous than this outfit, that's extraordinary and the many stocks i followed, this was one of a small handful that rallied after downbeat guidance. so what does polaris' remarkable rebound tell us? you have to listen to it. i'm like a stock whisperer, to me it says investors believe in this company so strongly that

they think management's guidance must be too conservative. they refuse to hear anything remotely negative even when it comes straight from the company itself and it's remarkable, but it makes sense. after all, polaris did deliver a truly incredible quarter with off-road vehicle sales increasing 16% and snow mobiles, some were up 63%, on-road vehicles up 69%. parts, garments and accessories rising 90% from last year. the company's inventory is elite and they're stuffed with the light snowfall this winter, the dealers would have a ton? polaris has a gross margin, they make on every dollar sales improved over 2010, and despite pressure from higher commodity prices, something that should subside, they're even a bigger gross margin improvement and this is a remarkable story.

as for the guidance, the assumption is that it's more underpromised and overdelivered from a company that's turned upod under promise over delivered into an art form. these guys are the rothco of upon. they're smashing the four walls of the estimate canvas and each of the last four quarters, polaris' actual results, the average of all of the analyst estimates and this company is what i call a serial outperformer. polaris is targeting 5% earnings growth, and earnings per share growth of 14% to 19%. people just take those numbers with a grain of salt and not a box of morton's and just consider how the company's low-ball guidance for last year. at the beginning of 2011, polaris talked about 11% revenue growth tops, and no more than 13% increase in earnings. however, the company actually delivered was different, a 33% rise in revenue with earnings per share up 50%! ♪ hallelujah >> last year they promised guidance that was too conservative and they blew away

the numbers and i bet they'll repeat that performance in 2012. they have side by side off road vehicles that seat four people not just two as well as lower priced models. second, they also have a joint venture with bobcat and the work utility segment that could be worth $100 million over the next three to five years. third and most important, polaris is building out its international business. at the moment the company has a limited exposure to rapidly growing markets like brazil, russia, india, china and indonesia, don't know how much snow they get there. right now honda is the market leader in these areas and polaris beat the manufacturing plant in 2010, and last year the company began building out its distribution network and something that started paying off in the not too distant future and because it's coming off a very low base, it's extremely valuable and polaris doesn't have to deal with tough comparisons. the company does have some exposure to europe which makes up 10% of its offroad vehicle sales and it set off most of the

volume weakness with price increases and they didn't lose market share and another snow mobile and all-terrain vehicle maker has also been on a tear lately, soaring 32% and polaris is the superior player in terms of its scale and the offerings and the excellence of management's execution. the dealer network for these power sports vehicles makes more money from polaris' products in part because polaris lets its dealers adjust orders twice per month and arctic cat does every three or four months. do not be alarmed by the fact that polaris has soared 67% over the last 12 months. i know that's a lot and you missed it, but this stock is only trading at 17 times earnings and less than one-time growth and this was best bought and don't worry. we will get one. i know, best january since 1997, believe me there will be down days and those are days when polaris will rise up from

underneath the water. the rich are different. they buy things like snow mobiles even when it's not snowing and off-road vehicles with high ball earnings such a terrific buy on a pullback you have to write this one down and particularly when it snows again. can i go to john in utah? >> i am a big fan. thanks for everything. i'm calling about mgm. buy, sell or hold? >> mgm, i think, is a -- i've got to tell you, first of all, the casino stocks are coming back. second, vegas real estate has come back. henderson county is coming back. i think mgm is now the steal of the three. it is speculative, but i really, really like it here. now we're going go to larry who is super bowl bound, no doubt, in indiana, larry. >> hey, jim, a boilermaker boo-yah from west lafayette. >> holy cow! boilermakers, i was thinking it

was a larry bird. >> which high-end alcoholic beverage company do you like better long-term as the economy continues to recover and should we wait for a pullback considering both companies are near their 52-week high? >> you know, i happened to have sampled both in great abundance this very weekend. i can give you a taste test. diageo is cheaper. listen, if they had a bottle of jack i could at least use a little mouth wash. i think diageo represents better long-term growth. i'll say diageo, brown-forman and then jim beam. although i have to tell you, the new high-end beams are pretty darn good. all right, as fitzgerald said, the rich are different from you and me. they love those toys. they love polaris, which is snowed in with profits. stay with cramer.

coming up, ride the lightning. take a nonstop thrill ride as cramer goes stock after stock. all your calls taken rapid fire on the lightning round. later, down, but not out. january's been one of the best for the markets in over a decade, dominion resources has been running on fumes, down about 6%, but could exporting nat gas fuel this stock higher? cramer drills down with the company's ceo. all coming up on "mad money."

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>> it is time -- it is time for the lightning round! [ indiscernible ] play until you hear this sound and then the lightning round is over, are you ready skee-daddy? start with joe in new york. joe! >> from the son of two fellow spartan alumni, a big boo-yah to you, jim. >> holy cow? i'm back home! what's going on? >> not too much. yesterday i saw my stock go way down and i didn't find out until

the end of the day that there was a rumor about nationalization. are you worried about that? yes! they're making so much money they're in the crosshairs of every government trying to make money. i do not want to recommend that stock knowing that it could be a venezuelan situation. >> let's go to barbara in new york. >> boo-yah! >> boo-yah, barbara. what about bgs? it's going nowhere. >> it's marking time and you're getting that dividend. what's not to like? if the stock comes in i'll tell you to pull the trigger. let's go to ian in illinois. >> hey, jim, this is ian in rock town illinois boo-yah to you. >> liking that. what's go on there, chief? >> i pulled up a five-year chart of jc penney, and i'm looking at five years and the fifth-year average, the fifth-year average is above the 200-day moving average so that it's never been this tight, and i'm wondering

if -- >> we don't care about the technicals here. we have a new ceo. ron johnson, late of apple, before that, target. and this stock has moved up too much, and when it comes back down i'll be a buyer again, but i cannot sit there and say listen, to pile in, if it was seven. let's go to dave in florida. >> my uncle angelo wants your opinion on transcanada. >> the answer is 4% growth and i think you buy some here. and you buy some more. greg in arkansas. good afternoon, jim cramer and big boo-yah to you, sir. >> love the razorbacks. >> one of my favorite teams, right?

>> thank you, jim. i'd like your professional opinion on a company in my home state, tyson foods. >> they had a fabulous quarter. a lot of that was the feed cost going down. nobody cared. the commodity business and i'd love to recommend tyson, and i think it's a great company, and i think they'd do a fabulous job, and it reminds me of archer daniels, they're like airlines that they're such hard businesses and they will let you down even if they're well run, and that, ladies and gentlemen, is the conclusion of the lightning round! [ male announcer ] let's level the playing field. take the privileged investing tools of wall street and make them simple, intuitive, and available to all. distill all that data. make information instinctual, visual. introducing trade architect, td ameritrade's empowering web-based trading platform. take control of your portfolio today.

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trade commission-free for 60 days, and we'll throw in up $600 when you open an account. >> your portfolio is a lot like a football team. it's nothing without a good defense even if you believe as i do that the economy in the united states is getting better, much better than most people would believe. even if you think the stock market is no longer hostage to europe, that doesn't mean it's okay to let your guard down. no matter what, even in the hottest of bull markets your portfolio will also always need some nice, safe, consistent companies with terrific management and high yields, companies like dominion resources, letter d for you home gamers.

the utility gave a 7% dividend boost on january 20th and got a 4.2% yield. dominion is one of the largest producers and transporters of energy. dominion is a retail energy segment and a power generation division and nat gas processing, transmission and storage biz. in fact, they have the large of the gas storage operator in the country. it pushed prices on down to what i would regard to absurdly low levels. i like dominion because they understand the need for consistency better than anybody. it's called dominion resources because in the old days most of the money came from producing oil and gas which is a much more volatile business than running power plants. different businesses and it was hard enough to get your head around. management made the call to get out of oil and gas game, in retrospect, a brilliant decision and they held on to the storage

assets since they're not as levered to the price of the actual commodity and are much more a utility. they were coming in 2 cents higher than the 64-cent basis. i have to dig deeper. so let's check in with tom farrell, chairman and ceo of dominion resources to find out more about the quarter. mr. farrell, welcome back to "mad money." jim, it's great to be with you. >> first of all, i always check insider buying and insider selling, because if the ceo's dumping stock it gives me a bad taste in my mouth. i see a series of the opposite. you guys just bought a lot of stock, didn't you? >> we did. a couple officers and three or four of our directors have been buying stock. >> that's part of a program you have. this is not idle buying. this is a series -- this is real money you're putting down, right? >> these are not grants. these are cash -- using our own cash to buy stock. >> there is a guy, i'm not going

to pick on them. no, i'm not. bank of america and merrill lynch is calling this stock underweight and says that you've got $2.5 billion in debt financing in fiscal year '12 and feels that the merchant generation isn't going well. you are obviously putting money where your mouth is and do not agree with this underweight sell report. >> no. i know the company pretty well, and been working there close to 20 years. i can't think of a better place to put my own money than in this company. you're not worried about that $2.5 billion in debt and you have dividend reinvestment plans that will raise money in itself, right? >> we've always had great access to the debt markets. utilities have to issue a lot of debt. we build a lot of things and we've always said we have great credit ratings and we've always had oversubscribed bond offerings. >> earlier in the show i talked about how exxon, at the top, paid a fortune for a very good company, xto. you guys at the top sold a very good natural gas company, was that because you saw a glut coming or you felt that it was time to get out of that

business? >> it was more the latter, jim. it just -- you said this in the introduction, it just didn't fit with the rest of the company even though it was very well -- we had great people doing it. we had great assets and it just didn't really fit with the rest of our stuff. >> in the conference call i was surprised because one of the things that you guys are at the forefront of is the idea that perhaps natural gas is so cheap that we have to make a lot of money overseas. on the page 16 of the conference call, when a merrill lynch analyst asked you, but this cold point, you're moving along and what would be the ideal -- let's say, the ideal timeframe of when you'll be able to export natural gas to when they're paying $16, eight times what they're paying here for. >> the way we're trying to set it up is we have a lot of interest in europe and asia for this gas. we have a facility there that imports the gas. we would reverse the flow,

liquefy the gas and export it. we would never actually own the gas. we would provide that service for those who want to sell that gas overseas. we can take the super tankers, the panama canal's opening in 2014. we are very close to the marcellus and utica shales. if everything works out like we would like it to, it would be late 2016 or early '17. >> they're an earning driver in the out years, right? i know that given your balance sheet and what you're able to do, unlike the other companies trying to do it, you actually can get this thing going and make a ton of money for people. >> we can do well. if we do it right, we can do well. >> natural gas is so low. is there a time that you've got to go back and just go and make long-term contracts with natural gas companies that are really hurting for capital right now? >> that's something that we're looking at for -- we produce a lot of power through natural gas as the fuel, and we're getting ready to build a very large

plant that will burn 250 decatherms of fuel a day. that's a lot of gas. gas is low now. i don't believe it will stay this low for an extended period of time. so you've got to look at the volatility of the fuel mix for your customers. so hedging makes sense. >> speaking of hedging, tom, i look at this election and i've got to bring it up. if the republicans win i think your coal plants and you have considerable coal plants and you'll be able to stretch them out. if the democrats win i imagine the cpa will push you again. and what do you think as one of the best-run companies. it's basically a coin toss, how do you run a business knowing that in november the whole business can change? >> we made a decision that we're going not take issue with the epa on these regulations. >> right. >> we don't have very many plants that are affected by it because we've cleaned our plants up over the last 15 years. we're in a very good position.

so for us it's not as critical an issue as it is for many of my colleagues in the industry, but they're all good, smart people. they'll make the right business choices. >> one last question, you have got an anomaly. you have the lowest cost power and there's a lot of technology companies that are using your utility. just talk for a moment about the big data farms and you are getting silicon valley to put the plants in your area. >> we like to think of it this way, the brains behind the internet may be on the west coast and in new england, but the backbone of it is in virginia. over 50% of the internet traffic in the united states flows through the washington, d.c. suburbs of northern virginia. the data centers there, we don't -- we provide the electricity for them which is their highest variable cost. they continue to locate in virginia and over a three-year period we will see that demand double.

each one that opens is 9,000 new homes being built and there are 40 operating right now. >> it's the best growth story utility that i know. tom farrell, thank you for delivering and you're delivering for yourself, too. great to talk to you, sir. >> thank you, jim. it's great being with you. >> he keeps coming back. letter d is the core utility that i like, okay? it's got growth, it's got safety and it's got yield, and tom farrell is in there buying along with some other executives. this is the one you need for an electric utility. stay with letter d. stay with cramer. spark miles gives me the most rewards of any small business credit card. the spark card earns double miles... so we really had to up our game. with spark, the boss earns double miles on every purchase, every day. that's setting the bar pretty high. owning my own business has never been more rewarding. coming through! [ male announcer ] introducing spark the small business credit cards from capital one. get more by choosing unlimited double miles or 2% cash back on every purchase, every day. what's in your wallet?

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>> i had a dust-up at 4:45 this morning. i have to share it with you not because i'm unhealthfully obsessed with social media, but it illuminates a lot about where we are right now in the market. i'm trying to make the point that europe has been put into perspective.

in response, was there an onslaught of people saying that portugal would default and how dare i suggest that a portuguese default wouldn't be completely devastating, and to what i said to the catcallers to portugal? maybe. to all of europe? doubtful. the united states, sorry, no way. that was really my point. see, something big happened when the european authorities decided to lend hundreds of billions of dollars to european banks and ultralow rates to do whatever they wanted for a couple of years now and the credit lines had to be used and it was spread by the bears because it was so wrong. they stopped selling existing bonds and the next thing you know, yields went down. bonds went up and that began the makings of a two-way market. i'm now realizing that the two-way market is salvaging everything. that more than anything else is hostaging our markets. let me explain. first, as long as these bond markets were in free fall you

had to bet everything in europe, to the euro that it's denominated in, but once you have a two-way market where supply dried up, once you got a sense that there were buyers out there, you not only had to stop shorting the stuff, you had to start buying it, in other words, you had to turn opportunistic. we saw in the weeks when the spanish bonds shot up in value after successful auctions, you borrowed billions to buy spanish debt, you had the same in italy. they had bountiful cornucopias. the largest bank in italy was a disaster. those who took the stock down made 16% overnight. american money started flowing into europe and getting the high-yielding bank paper from the more solid european institutions and now the bank options seem like the best way to make money, typically when you are an american and you also get a win in the currency, throw in the fact that the german markets have been the best in the world so far in 2012 and you can see how the tide has turned and say it's turning, at least it's a back and forth market.

that's the reason why europe is no longer holding us hostage and the ailing banks are no longer linked like the bears thought. witness the plum that morgan stanley got tonight, the huge facebook ipo. europe's not a one-way train anymore. the markets can now make you money on the long side, not just lose you money. you know what? let's hope it stays that way. stay with cramer. ♪ there's a place i dream about ♪ ♪ where the sun never goes out ♪ ♪ and the sky is deep and blue ♪ ♪ won't you take me american flight 280 to miami is now ready for boarding. ♪ there with you

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we find that we don't need to sleep that much. there's an easier way to save. geico. fifteen minutes could save you fifteen percent or more. >> some good news and some bad news, morgan stanley, the good news they land the facebook deal. i think morgan stanley is a very inexpensive stock and a buy here. amazon did exactly what it said it was going to do. remember when jeff bezos, the