tv Mad Money CNBC February 16, 2012 11:00pm-12:00am EST
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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 just want to help you to save money. my job is to educate and teach you so call me at 1-800-743-cnbc. the symphony today sounded much better, didn't it? the discordant tones, the band. the notes we didn't want to hear. the dow surged 123 points. nasdaq soared 1.5%. it was the session where the major chords prevailed.
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big theme for 2012, they're back in action! so let's play it out. what exactly are the big positive themes that are trumping the nasty discordant notes that on a given day like yesterday tend to take over the whole concert that is the stock market. all the good themes were on display from the get-go today. let's go over them. first, 8:30 unemployment claims, i don't want you to lose sight of the real prize. that prize is jobs. this isn't a political show, but that is driving the stock market. employment growth is the single most important issue when it comes to determining direction of the stock market. nothing else. not even earnings. when i saw the weekly jobless claims this morning, the lowest in four years, i cheered. i cheered. that was music to my ears. [ applause ] a real good symphony. like one of those tunes, it means we're very much on course for a turn in the economy. more jobs, more spending. which matters tremendously when you have an economy dominated by
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retail sales, as ours is. more jobs and the price of the pump is less of an issue. the deficit goes down, terrific to have an extension of unemployment benefits by the federal government, something now looks like it's in the cards. but we need private sector jobs, not public sector dull if we get out of this morass. that big if, the kipling poem, getting less, well, iffy by the day. the claims, they reaffirmed a trend that says the united states is coming back after a long slumber. that can blunt bad chart patterns, negative divergences and even a greek chorus. second, we got really great auto sales, this time from general motors. at first people weren't sure, it went down hard, didn't make enough money per car. that only obscures the bigger issue, that gm is selling a huge number of cars again. the company will figure out how to make more money and lose less in europe. what is good for general motors is great for america and yes,
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the stock market. with employment growth the numbers will only get better over time. closed at $27.17. gm is up 34% for the year. third, you know we're heavily reliant on housing, if it had not gotten so overheated we never would have had the great recession that we're still trying to come back from. today a rise in housing starts, we may see a 15% increase in new builds. oh, yeah, i heard jim, it was the weather, too warm, many. starts, give me a break! in the last couple days we have been able to have dismal earnings like masco and owens corning. those numbers today were brighter. finally the most misunderstood story out there, the success of the europeans have had in changing the narrative of the collapsing continent. success that obscured by the bears in our ears telling us nothing can go right.
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the programs the european central bank put in place, the long term refinancing operation, it worked like a charm. bond yields from so-called failed states coming down in a major way you can't help but realize problems are running their course without taking us all down. i'm the only guy that says it. i was out to dinner, a real sophisticated guy says how come you're one of the two guys that say this, he's in a position of power, i'm a tv host. the leaders of europe have taken it off the table. banks in europe reporting good numbers, interest rates going down, last night that is good for growth. plus last night the europeans reached a tentative deal that will put the greek issue on ice for a while with the medium term fix that gives europe a chance to repair itself. when europe is good our banks are good. they reversed direction after a funky session that scared a lot of people. these major themes playing out you had to think long and hard about what was actually ailing the market, why did it go down? the nasty minor chords were
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drowned out by the sweet bullish notes we heard today. which brings me to a bigger issue. last night i told you the negatives had it had to be put in the context of bad notes of an errant orchestra. i was greeted with cat calls and judgments how things are much worse than i said they were, i was glossing over. i felt the same way when i started "squawk on the street," people once again turned on the market, threw it under the bus, dismissed it as if nothing good happened or ever will happen. this was nasty from those who said apple was finished and power to pull the whole market down. i found myself having to reassure people as long as the earnings held up, the stock would hold up. might be rebalancing the nasdaq. whatever other people are saying, i'm getting real sick of reassuring people about apple every night. my charitable trust owns it. the only problem i worry is they
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pick a fight with the chinese the way google did. that has to be resolved before it spins out of control and the chinese government turns on apple. that is a concern, thank you david faber, i noticed a story about how apple's management is talking about hiring more people. this is the kind of financial cooperation that the people's republican can't get enough of. i have hope the issue will be resolved positively and that might be behind a rebound for the stock and quarter that needs to have strong chinese sales. it didn't hurt that old tech, microsoft, intel, ibm, they held up terrifically. old tech and new tech come together. crucial part of the markets as much as financials, a third of the market, financials and tech, bottom line, those who walked out of the concert yesterday because they didn't like what they were hearing, they are today's big losers. those who decide they had were listening to discordant dress
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rehearsal, they were rewarded. this is beethoven's third. we have a ton of fabulous symphony music ahead, he wrote nine of them. got a lot of room before this rally runs its course. ron in virginia. >> caller: hi, jim, retired u.s. army officer booyah from virginia. >> thank you for serving booyah, right back at you, sir. >> you guys made it all worth it. >> they go at it, those guys are on my 9:00 "squawk on the street," what's up? >> i want to thank you for making my hobby fun again, two years ago i started watching your show, read your books. my question is i'm long in general mills, but since kellogg has got pringles, i'm wondering if i should augment my position. >> someone upgraded general mills, kellogg, that new ceo has
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real horse sense picking off that pringles. stick with mills, if kellogg goes back to 51 i'll buy it. joe in pennsylvania! >> caller: booyah, from philadelphia. >> negative story about the inquirer. i love the paper, what is on your mind? >> caller: i got a question, i want to know if i should be buying, looks like it's going straight up, they went through a deal for $4.3 billion worth of soybeans with china. them and a couple people, any help there? >> i'm nervous, because john deere's report, de, i didn't like the tone. i felt they were calling the top of the ag. i can't tell to you buy bunga if it's true that deere thinks there could be a top.
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sorry, i do like philadelphia. this is today's remix of beethoven. i got another six symphonies coming up. yesterday was a bad dress rehearsal for the beautiful heroic which is what the market really is. "mad money" will be right back. gold digger, getting harder to pull the yellow metal out of the ground. could this fast-growing gold producer be the hidden treasure you have been mining for? cramer's earnings exclusive with goldcorp's ceo. later, yummy, you know it's mouth watering brands, kfc, taco bell and pizza hut. could overseas patrons hungry for more help the company continue to serve up profits? cramer is setting the table for a sit down with yum brands ceo. now boarding, sky high fuel prices have been hurting airlines, but could this lesser known aircraft manufacturer
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change the landscape by making fuel efficient planes to rival boeing and airbus? captain cramer will find out on "mad money." get your "mad money" text alert today. text mm to get cramer on your phone. for more info, visit madmoney.cnbc.com or give us a call at 1-800-743-cnbc. [ malthe day starts 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. sealing the deal... when, hang on... her doctor recommended aleve. it can relieve pain all day with fewer pills than tylenol.
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♪ you know i'm a huge fan of gold, always have been since the show began. it's had a remarkable run. a necessary part of everyone's portfolio. i'm more skeptical about the actual gold miners. i advocate the gld. when you look back over the last 12 months, the gld up 25% reflecting the terrific rally of the commodity. the gold stocks have a much more
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mixed track record. many down big, even goldcorp, the best of the big gold producers only up a little over 7%. problem with the miners, the stuff is incredibly scarce and all the easy-to-mine gold has been found. more expensive to get it out of the ground that is not going away unless we get new break-throughs like the golden volcano from the serious island, the latest movie from the rock. he told me he's a huge fan of the show. no accounting for taste. the thing is it didn't used to be like this for the gold miners. goldcorp, the stock is up 525% over the last ten years. outperforming the rise in gold. could things be going back to the way they were? where you had to own the gold stocks because they outperformed the metal? we have to remain open to the possibility. goldcorp just reported a terrific quarter, five cent earnings beat with in line
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revenues and net cash costs of just $261 an ounce. making the industry low cost leader and fastest growing. projecting 70% increase in production by 2016. four new major mines comiing online. the balance sheet, a thing of beauty. let's check in with chuck, the bankable ceo of goldcorp. find out what is going ahead. welcome back to "mad money." >> great to be back, jim, thanks. >> chuck, you were always the guy i said, listen, that is great to own gold but there is a company, gg, that has consistently outperformed the metal. i thought this was a breakout quarter. am i being too bullish or is there a people say buy gold, buy gold corp., they could be synonymous? >> we continue to run the business, we continue to generate the cash, the quarter
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was outstanding and the year an outstanding one. it's interesting we generated a billion dollars more of earnings this year than last year and as you just mentioned in your opening, it really hasn't been reflected yet in the share price. so we would like to see that but all we can control is the business and we've got our heads down and are working hard to produce the gold at the low cost that you described. >> chuck, what is going on in this mining business that everybody with gold so high, has not been able to just turn on the spigot? we think of these resource companies very similarly. oil goes to $100 and suddenly discovering oil everywhere in the country because the cost of oil is so expensive we can go to places and drill it and it's there. why with gold so high can't we discover all these new places that have gold? >> it is a very rare commodity, and as you know, we've only had even through this 11 year cycle of greatly increased gold prices we're seeing single digit increases in the amount of
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supply, and that's exactly why the gold price continues to improve and go up so much. the demand is increasing, supply is staying pretty flat, and we're doing a good job as a company, adding reserves. we just reported reserves growth of about 8% year on year, finding new ounces in and around our mines, and so i think that you have to look like anything else that individual companies rather than the sector as a whole. >> even your company has got the labor costs have gone up, some of the mining costs have gone up. seems like the costs are going up almost in lock step with the price of gold for some of the companies, you have better luck because you are finding costs are low and it's not gotten cheaper to mine, has it? >> it has not gotten cheaper but it is interesting. our margins have grown every year for the last six or seven
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years, and so we're capturing more and more of that gold price increase each year, the costs are going up, no question. if they go up at a lower rate than the gold price the margins increase. that is what we saw again in the fourth quarter and in 2011 as a whole. >> chuck, you have a line-up, fantastic presentation where you talk about a robust development pipeline. looks like like between now and 2014 you have major mines, sierra negro, how big could they be to getting double digits in reserves? >> we continue to have good success of growing reserves at each of these mines. what is unique most of the assets are fairly young, there is still plenty of opportunity for them to grow. we expect sierra negro in argentina to grow for many years. we acquired it last year. we have new mines coming on line starting at pueblo viejo in
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2012, this year, sierra negro will start production next year. two new mines in canada will see first gold in 2014. a lot on the go and in addition to the new production you will also see reserve growth. >> a lot of people are saying that gold is topped out. we only grew the whole world's assets of gold 1% last year. do you believe with a 1% increase in this incredibly scarce asset and demand coming from india and china that is off the charts, gold can stay at the $1700 level for a long time or does it not have to bust out to the $2,000s? >> i think it will break out. when that happens, i don't know. you can't ignore the supply and demand fundamentals. new mine supply is very limited. it has been for years. it's not going to change any time soon. and the demand is increasing
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dramatically, in asia primarily, but don't forget the central banks. we saw new reports this morning on central bank growth year on year that is almost five times the amount of gold that was purchased in 2011 compared to 2010. those are trends i just don't think can support anything other than the gold price continuing to go up. >> chuck, i want to congratulate you for two things, one a great quarter, two, when things were bad you talked about this year where everything went wrong, you still came on the show, still told us things would get better and they did. congratulations on a great quarter, chuck jeannes, thank you. >> thanks very much, jim. all right guys, you know i like the gld, but we're back, if you believe you have to own a stock we found it, it's gg, goldcorp. went away for a little because
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the cost the got bad, they have a five year plan that will work out. you heard it from the ceo, gg, which has regained the title as best in show, gold miners, stay with cramer. coming up, yummy. you know already its mouth-watering brands like kfc, taco bell and pizza hut. but could overseas patrons hungry for more help this company continue to serve up profits? cramer is setting the table for a sit down with yum brands ceo. later, now boarding? sky high fuel prices have been hurting airlines, but could this lesser known aircraft manufacturer change the landscape by making fuel efficient planes to rival boeing and airbus? captain cramer's finding out when he talks to the ceo of bombardier, all coming up on "mad money." ♪
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♪ 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 fly without putting your life on pause. be yourself. nonstop. american airlines. everybody wants a piece of china, which seems to be the great growth story of of our generation. along with the other emerging economies like india, it's hard to find good direct ways to play the theme other than google of china i never recommended chinese stocks. they are trying to figure -- out how to regulate the economy.
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the best way to play the emerging markets is by latching on to america's greatest export, i'm not talking machinery, we're good at that. technology, we're good at. i mean food. fast food. yes. nobody does casual dining better than the united states. great american companies are having so much success exporting the concept all over the globe. it's the best way to play china as i have been saying is yum brands. parent company of kfc, taco bell and pizza hut, 42% of the operating costs from the people's republican. excellent quarter on february 6th, spectacular 21% same store sales growth. general stillwell may have lost china but colonel sanders is taking it back. yum is one of the best growth stories around. i'm thrilled to have david novak, the chairman and ceo, the author of "taking people with you the only way to make big
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things happen." he's with us to talk about the success and mr. novak, welcome back to "mad money." great to see you, sir. thank you for everything you're doing for shareholders. >> appreciate it. >> periodically i read books, the guy may not know it but he has written the best stock picking book. your book is about leadership, your book about the intangibles that make great companies, not picked up by the price to earnings multiple, not picked up by return on equity. how is it possible that in empowering people within the work place produces such success? >> what i say, show me a good leader and i'll show you a good business. i spend the vast majority of my time on just developing leaders and making sure we have the right work environment to get the best out of people. in fact i've been teaching leadership program called "taking people with you" for the last 15 years and this book encapsulates all the learning so a reader can develop an action plan to make big things happen in their business. so to me, if you want to have great results, you have to build your people capability, you will
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satisfy more customers and you will make more money. people want to work where they feel involved and know they matter and count. and so we have a lot of fun celebrating the achievements of others, making sure everybody from administrative assistant to vice president, everybody if they do what needs to be done in their piece of yum, our stock will grow. >> 21% growth in china. how much of that is mark chu, who you identify as being a fabulous leader? you have been able to get a culture people didn't think worked? >> i think it starts with the local team that we had in china. sam and mark, angela low, they have been together a number of years, and we have an incredible group of restaurant managers there. we have now over 4,000 stores in china, 90% of the restaurant general managers have at least a college education, processed and disciplined what matters.
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brands are loved and aspirational in china. we look at china as the growth opportunity of the 21st century for sure in retail. >> i joke with people, they like to get married at kfc, it's the best food in china, safest food, that matters to people. >> absolutely. not only just in china, we're growing in emerging markets. in africa, i do an internal blog and share what is going on. i have a picture of a couple in nigeria having their wedding reception in a kfc. we're aspirational in these emerging markets. in the united states we have 60 restaurants per one million people. when you go to the emerging markets which now represent about half of our profits, half of our overall profits, we only have two restaurants per million people in the top ten emerging markets. >> that sounds great but why is it you are having such success
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in china and everybody else is having a tough time? >> it starts with the fact you have to have the people. and i think we have been there for well over 25 years now, we have a local team, whenever we have a great local management team that understands the culture, understands how to work through all the systems that there are in a particular country, and they do vary, then they know how to localize the brands, we can take our core recipes, pan pizza, then we make it relevant in the country we're in. >> we know there has been good news. this quarter was i felt a very hopeful quarter for some divisions that you admitted were tough, including pizza hut. you have the new advertisement with the box with the sticks and the cinnamon. you see the turn? >> we really feel very good about our u.s. business. in particular taco bell this year we expect to have a very strong year, major product innovation coming. we teamed up with frito-lay and
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developed a taco shell made out of nacho cheese doritos. we launched breakfast in 800 stores on the west coast, we have a premium line of products that will be value priced coming at taco bell, and we have lots of good news, pizza hut and kfc as well. >> one of the themes i want to address, because you have great quote from steve burke, one of our bosses from comcast, which talks about mistakes. you have been very upfront, taco bell had mistakes. are they past? >> yeah. >> you have been up front, you talk about it in the book. >> listen, you don't get it right every time and if you got it every right you wouldn't be taking the right kind of risk. breakfast at taco bell we tried a couple times, didn't get it right. now we think we're going after it with the right products, right partners, co-partnered with seattle's best to have coffee credibility, great dessert or breakfast products that are fantastic, and we're hoping up at 8:00 like we opened up later at night and developed the fourth meal, late night for taco bell. we're opening up at 8:00, then
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7:00, 6:00 as we go forward. we think we have a way to do it so operators can make money. >> do you think that the people who follow your stock and you're not a critical guy. i want to get to a thing you mentioned. they focused on margins, they don't focus on the leadership, is it because i come out here and struggle until your book, i struggle to explain why minutiae is not as important as leadership and culture. >> i studied all the great companies in the world when we were spun off from pepsico. we had a chance to do it right. the culture is the bedrock of every great company. we spend a lot of time making sure we create the right work environment, have the right people. if you start out thinking about the profits and margins, that is where your focus is, you forget how you get there, you get there through people and satisfy the customers. we work on that formula all the time. we don't get it right all the time but we sure know what it is and know what we want to get done. >> one of the things i was
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encouraged by, john deere reported. they are talking about a potential peak in food inflation. how fabulous would that be for your company? >> in terms of leveling off? >> maybe it levels off. >> that is always a good situation for us, the good thing for us is that we've got leading brands, so we can weather any particular storm, which we've done whether inflation has gone up or down. the great things about our products is we are affordable. >> in the time we have left, we have a little, maybe the most important point for investing but also for leadership. you have to get rid of the cynics, they are keeping us back as a country they are keeping companies back and from people investing. how do you get rid of the cynics? that is easier said than done. >> you have to say to yourself how many cynics have you ever seen people look up to and want to follow? not many. not many.
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i think one of the things our country has to do is have an intense belief what we're capable of. leaders help people understand what they are capable of and get everybody galvanized around the point and that is what i think the country needs more than anything. we need people to stand up, believe in what this country is all about. nobody can stop us, i heard you talk on the show, so much capacity, we need to believe in it and then more importantly not just talk about the belief, put the action plans behind it that will really change and make a difference in the united states and in the world, which we can do. >> you're the living embodiment of it, you didn't talk about the early story but this book is the way to be able to explain how business really can work and we have a company that put it in action and that is yum brands. this is david novak, chairman and ceo. remember, taking people with you is not just a leadership book, it's a stock hand book. i wish i had written a lot of it myself. stay with cramer. coming up, can you handle the heat? cramer gets you fired up for a searing hot lightning round.
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it is time, for the lightning round on cramer's mad money. are you ready, skee-daddy? the lightning round starts with john in florida. john. >> caller: jimmy, booyah from miami beach. >> i stayed at the w last time. chick magnet. not. go ahead. >> caller: listen, jimmy, my most profitable investment, mark west energy partners, where do you see the future of the stock price going? is this stock ready to continue to go further? >> it could, it could, it could
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because of growth and the fact it yields five. i've seen these go down do 4.75. i expect it could stall out 59, 60. don't get impatient. hold on to mwe, a name we have sponsored. brendan in maryland. >> caller: booyah, jim. >> booyah, brendan. >> you went to college in maryland. >> they are fabulous, one went to summit high with my daughter, what's up. >> caller: one stock making me go insane. that is nike, n-i-k-e. >> i have been liking that stock ever since they boosted the dividend. it goes higher. >> caller: solar capital. >> good yield, stock has been consistent, i think the yield is safe.
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michael in florida. >> caller: how are you, jim? happy birthday, many more. we miss you very, very much. my stock is hca. >> not getting any credit because they evened up the balance sheet. >> don't buy. >> i think hca is not for me, i think it goes down. john in new york, john? >> caller: hey, booyah, jim. my stock is hes. >> i'm disappointed in hess. i think they communicate the story poorly, i'll say i would rather see you in eog, take advantage of the run in hess and do some schnitzeling. let's go to ike in pennsylvania. >> caller: hi, jim, booyah. >> booyah, ike. >> caller: okay, my stock is caribou coffee, speculation and
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i thought vis-a-vis starbucks. >> no merger there. caribou is an up stock. i like the company, i prefer starbucks, why? because howard schultz and the people at nike, they are my two favorite -- nike, starbucks and mcdonald's, all companies that are just hugely valuable growth stocks, let's throw in yum brands while we're at it. >> matthew in florida. >> caller: jim! how are you? >> pretty darned good, matthew, how are you? >> caller: i'm good, i'm good. i've got the bakken fever. with the oil prices going up and earnings coming out in two weeks, tell me what you think about kodiak oil and gas. >> i can't cure that fever. up to 106 when kodiak reports. buy. let's not forget continental resources and eog. john in florida?
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>> caller: hi, jim, john kowalski, dunedin, florida. xerox? >> doesn't have it for me. i got -- i recommend texas instruments. i'm not going to go on board. let's take al in minnesota. >> caller: hey, jim, glad to see you. i have been watching you for years, love your show. the reason i'm calling, me and my grandson, we're following a stock called jbs uniphase, buy, hold or sell? >> used to be call, just don't sell, going down, just don't sue us. i'm not that in it, i know it was a good quarter. there are other optical plays, this is too hard to own. i'm not going to endorse jpsu. that, ladies and gentlemen, is the conclusion of the lightning round! the lightning round is
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huge opportunity here for any company that can help other businesses save money on fuel costs. enter bombardier, the canadian transportation company that makes both airplanes and locomotives. they have two-thirds of the john candy/steve martin, planes trains and automobile troika. it doesn't trade here, trades on the toronto exchange. you probably recognize their brands, lear jet, bombardier, big train business, expanding in emerging markets like china, india, and brazil, building new transportation infrastructure. on the aerospace side, making a big move with the c-series jet, super fuel efficient plane could represent a major competitive threat to boeing 737. no other similar size airplane comes close to their c-series in terms of fuel efficiency.
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bombardier has a $55 billion backlog, which gives them a ton of visibility, meaning it's easy to see how much money they can make, even far into the future. let's check in with pierre beaudoin and get a read on the transportation business. welcome to mad money. you were initially a snowmobile manufacturer. you're the sleeping giant of transportation around the world. can you tell me, first of all, how the world is doing? you have government, you've got corporate, you have infrastructure. probably the best barometer to come on "mad money" to tell us where we are in this world. >> i'm excited in 2012. there is investment in infrastructure, whether it's airport or rail across the
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world. >> you have big businesses with a lot of regional airlines. i know people when i talk about this company and why i like it so much they say is there more strapped companies than these airlines? how can they make any money? that is not the way the business works. not levered to amr's balance sheet. >> we sell an asset worth a lot of money and can move around the world. airlines would challenge but the product itself is in high demand. it can be used by many airlines in the world and there is a lot of growth in the airline world. >> we had a president, we have a president who attacked corporate jets. you are the premiere corporate jet company. did that hurt business and is business back? >> i find this unfortunate, i think it's a great business for the u.s. we build lear jets in the u.s., challenger brand, global brand. overall i think the business is doing well now, but there was a slow-down after '08. >> how about china? china, we always look for ways
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to play china. i think you may be the most levered to china of any other manufacturers. >> we're big in the rail business, 4,000 employees building high speed trains from 250 kilometers but the potential in aerospace is huge. >> they are building out. they could have -- they have not started building their airport infrastructure. >> there is good airports but a lot to do in china. we're seeing new airports appear all the time. business aircraft is growing in china. now we're seeing greater portion, for an airplane like the c-series, doesn't only address big cities but medium size city. in china they are quite large. >> i know. we were speaking with the ceo of kfc, of yum, and there are 30 cities larger than almost any city in the country we never
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heard of. i bet everyone could support a regional airline. >> supports regional but mainline also. in china there are a few airports in the high altitude. our airplane will do well in challenging conditions, for me this is a market that will present 20% to 30% of our volume. >> the infrastructure business, we see a lot of countries strapped. for instance germany cutting the subsidies for solar. a lot of countries subsidize rail because it's so fuel efficient. are you being hurt by the debt problems of major western countries? >> let's start by europe. in europe people like to move around when they go to work or around when they go to work or for leisure in trains. it's very efficient and they are putting a lot of pressure on their government if they choose priorities, they don't want them to compromise on the mass transit. and that was what we saw in the u.k. the budget was cut, they continued to invest in rails. i think that will continue, a great way to move people and we should see more. >> now, locomotives are the biggest user of diesel fuel.
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would you ever make natural gas engines which would save a lot of money because natural gas is so cheap here? >> we're the world leader in electric locomotives. i think that is where the growth will be. we make bi-modes that have diesel and electric. i think the right way to power and passenger if you want to go fast you have to go electric. >> the last thing, are you looking at -- i have been trying to figure out how to get your company more visible. nine times earnings, other aircraft manufacturers are much more expensive in terms of price to earnings multiple. i don't think you're getting credit for this tremendous train business. how are you going to bring out value to make it you're multiple would be somewhat similar to boeing when you have better growth in a lot of ways? >> first of all i think we need
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to tell our story like today. the same time we need to see how and when we could come to the new york stock exchange. not a priority for now, we have big projects in development but it's something in the future. >> you're too big not to be listed here. that is pierre beaudoin. i urge you to go to transcripts of different presentations. learn about the company, i got to tell you, it has tentacles around the world. stay with cramer.
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>> look, we can bemoan the ultra high price at the pump, or we can figure out which companies have decided this is a once in a lifetime opportunity to make more money than we've ever dreamed and we'll do it big for our shareholders. that is the lesson of devon, the time is right to take money and prospecting for oil in new places. makes sense, the stock tacking still more points, gaining $3.32 on top of yesterday's $4.80 post earnings advance. they have a new find. it could be gigantic, a real needle mover, we know needle movers get stocks rocking. feel the same way about magnum hunter, oil and gas company
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whose ceo we had on the show earlier. magnum is increasing output, transforming in what it called a drilling factory. as much as you might not want to hear it, tom ward is doing the same thing, he's buying properties left and right to take advantage of the sky high price of crude. i wish he wouldn't do so many deals. finally two others to keep in front of us, eog and continental resources. the companies that dominate. they are trying to turn north dakota into the second largest oil producing state in the union after texas. leapfrogging alaska and california. considering the size of the bakken, which the ceo said is as big as prudhoe bay. i have no trouble believing he could pull off the goal. eog remains one of the most undervalued oil companies on earth. i would bid $200 for them. their properties are worth the
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price of the company and you are getting the rest for free. fantastic value given how much more there is to the business. with every ceo on the show, and we have a ton of them, we're scratching the surface of our vast oil holdings in this country. the fabulous chief executive of devon told us if united states were to harness oil and natural gas assets and allow the importation of canadian crude, we could be energy self-sufficient in a few years. what i care about is making money off of it. buy the stocks of those who are exploiting the reserves better than anybody else. these drillers are like the companies of yore, the old tech companies growing faster than any sector. with oil staying elevated they could remain the best places to be for 2012. you want pay back for high gas prices? living well is the best revenge, go make back the money you lost at the pump and then some. stay with cramer. [ tom ] we invented the turbine business right here in schenectady.
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without the stuff that we make here, you wouldn't be able to walk in your house and flip on your lights. [ brad ] at ge we build turbines that power the world. they go into power plants which take some form of energy, harness it, and turn it into more efficient electricity. [ ron ] when i was a kid i wanted to work with my hands, that was my thing. i really enjoy building turbines.
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it's nice to know that what you're building is gonna do something for the world. when people think of ge, they typically don't think about beer. a lot of people may not realize that the power needed to keep their budweiser cold and even to make their beer comes from turbines made right here. wait, so you guys make the beer? no, we make the power that makes the beer. so without you there'd be no bud? that's right. well, we like you. [ laughter ] ♪ get on e-trade. set up a real plan. frank! oh wow, you didn't win? i wanna show you something... it's my shocked face. [ gasps ] [ male announcer ] get a retirement plan that works... at e-trade. [ male announcer ] the 2012 m-class continually monitors blind spots, scans the road to reveal potential threats, even helps awaken its driver if he begins to doze. so in the blink of an eye it will have performed more active safety measures than most cars will in a lifetime.
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