tv Mad Money CNBC June 18, 2012 11:00pm-12:00am EDT
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i'm jim cramer, and welcome to my world. >> you need to get in the game. >> firming are going to go out of business and they're nuts. they know nothing. >> i always like to see there's a bull market somewhere. >> "image awardmad money, you c to miss it. i'm cramer and welcome to mad money and well ko cramerica. i'm just trying to save you money. my job is not to entertain you but to educate and teach so call me me. we are blessed with not one but two eyes, two of them. on days like today where the dow slipped 25 points, s&p edged up 1.4% and the nasdaq gained 4.8%,
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we have to use both eyes. why do i start this show with this manic anatomical lesson. pretty simple. all eyes are on greece. yesterday's election results and all eyes are on spain. spanish tenure where countries run into trouble paying bills. all eyes on germany since they have to recognize if they don't share their wealth, everybody loses. i disagree with all this nonsense. i'm not a foreign correspondent. i'm not a professor of geopolitics and i don't run a macrohedge fund. the fact is i don't need both eyes on germany or france or greece or anywhere in europe. one eye will suffice. the moment i take both eyes off of america and put them on europe, i am going to lose my chance to help to try to make you big money, and that's what i'm paid to do. this morning when i was chatting with david faber and melissa lee
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on "squawk on the street," we were struck by how we talk about how bad europe is and how it could hurt us and keep talking about for the next year. while we have to focus on it, we can't let it blind us to the next big opportunity. now, i know that europe is totally perilous, i know it is, and i'm not telling you to ignore it. my co-host did get my thinking. what if we had one eye on america last year instead of both eyes on europe, all eyes on europe? could we have made some money? would it have been too hard with the winning stocks too obscure to that one eye to let us see them? it was certainly too obscure if you only looked at the averages as a whole, and i think they do blind you. the s&p made you about 6%, dow about 5%. not chump change, but maybe not rewarding enough to keep you in the game for the next year given
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how horrid europe is. however, we're not indexers here on "mad money." this is dedicated to the proposition you can beat the averages with your brain. you can score above-average returns by looking around and doing some homework and exercising common sense, not macrohedge funditis. what about that one eye on the domestic side of things produce? what would you have seen it? let's look at the world for the last year and overlay it. the dow jones 30 industrials have done. there's 30 stocks we all know. first, our one eye that's kept on europe would tell us to avoid any up company that does a substantial business over there. let's take aththat part of the out. we knew that last year. stay away from the financial companies and the dow because they could be linked to the european banks in way we don't understand. take out the financials. our single eye on europe will tell us to avoid companies that produce commodities because
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europe is going to slow down the use of commodities. that same eye would let us see we're mired in a low growth world. we seek higher yields, whether it be bonds on or stocks, because in a low growth world interest rates go lower. how can we get the most income? what would that leave us? you get rid of all those things, what would it leave us? it would leave us with, let's see. our eagle eye on europe would have kept us out of about two-thirds the dow and left us with one-third. first, it would have been drawn to the stocks with no european exposure in the index. how did they do? take a look at this index. to home depot and walmart. they're the two uniquely american places and they were up 52% year-over-year, the first and third best performers in the index. would it have been that hard to spot these? wouldn't it dove tail with the
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negative look in europe? as one that shops at both stores, it's reasonable to presume you could visit the places and seen the crowds and pull the files and recognize american companies can pay the dividend and boost the dividend and you would have nailed them. who else in the dow is purely domestic besides home depot and walmart? how about verizon and at&t? sure enough verizon rallied. would they have been that hard to spot since they was yielding 5.5% and 5.6% respectively. they were there for the asking, specific alally because you kep one eye on europe. consider again the notion of the need for yield in a low growth environment. from companies that cannot only pay the higher dividends but boost them. who fits that depiction in the dow? how about intel? that yielded 4% a year ago. microsoft yielded 2.6%. they had far more exposure to emerging markets than europe. both have amazing balance sheets so they were in a fantastic
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position to raise the dividends. how did they do? it rallied 29%. microsoft was up 23%. what else might have appealed to us with that one eye on europe instead of both? how about the walt disney company? there's euro disney, the main drivers are american theme parks and american movies and american television networks, espn. do any wonder that dizzy rallied 24%, the dow's fourth best performer. i think that one eye on europe would have spotted disney by not having it over there. that's seven of the top ten performers in the dow were available. i don't think the one-eye prism would have produced the others. all three have substantial businesses in europe. only coke was attractive. still, though, i would say precisely because you were aaware of the issues in europe, you should have isolated the best performers and pounce on them. some of the wise acres in the audience say it's rear view. do not underestimate the importance of the exercises i
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walked us through. too many lazy people want to wallow in the macro and tell you not to pick any stocks at all because of the hazards of europe and say that the money has to go somewhere. it can't all go towards u.s. treasuries. that is not how that big money is managed around the globe. a certain percent goes into equities. it will flow into big cap companies far away from europe geographically or protected by high yields from the slow to no growth contagion that it represents. a guy at home depot says i'm worried about greece. home depot is packed. it can be that obvious. by all means, keep one eye on europe since you need to know what can go wrong, but please keep the other eye focused on the opportunities in american stocks that are created by the insanities aacross the atlantic. they're the corollary, and they're the reaction. we're talking about europe a year from now, and just like we could have said last year, we
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could have thrown our hands up and said, europe, no. there's a big difference. on this show we're going to keep an eye on america. if you kept an eye on the 30 stocks in the dow jones industrial average, you would have had a darn good idea which ones would be up double-digits. why not presume europe will mire us for another year and demand similar performance? let's go to bo in michigan, please. >> caller: a big boo-yah from south dade, michigan. >> i like that. what's on your mind, chief? >> caller: a michigan student, looking to invest money and watching first solar for a few weeks here. with the recent demand in solar panels in japan, what do you think about the company? >> you know, look. you'd be playing it for a rumor. you'd be playing for an alleged take-over and subsidies out of japan which boosted it today. that's not good enough for me. apply materials, and go there. applied terms has a decent
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business in solar, okay? applied materials has a nice yield. i would rather see you in applied materials yielding 3.2% than i would have you be in first solar. let's go to mark in florida, please. mark. >> caller: jim, big boo yaw from central florida. how are you doing today? >> real good. >> caller: i wanted to check on your strategy if you have any on bank of ireland and what's going to happen after the elections and what are you thinking about that? >> i think that bank of ireland is a sucker's play. a lot of people are draub to lower dollar stocks. i get that. i have to tell you that i think ireland is in terrible trouble. i just came back from there, and i don't think that bank's stock represents any real value. i don't want you there. 20/20 vision these days means one eye on europe. i just don't want both eyes on europe, because if you have one eye on the good old usa, you will see what is going to do well simply because europe is so bad. we can focus all we want on the losers, or we can try to figure
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out how that makes winners in the united states. "mad money" will be right back. coming up, on the flipside, not everyone is expressing sorrow about the dramatic slide in natural gas in the past year. in fact, some companies are cashing in. tonight cramer checks out one name that could fuel up as the dmod did its tumble. and later, starbucks showdown. two analysts, two sides to this java giant. this market is only big enough for one. things could get rough as jim takes a stand on whether the coffee king can continue to grind out profits, or if it's overcaffeinated. all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer. tweet cramer at #madtweets or give us a call at 1-800-743-c c
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as much as markets are hostage to the european mess, trying to invest in europe is a sucker's gain. we heard that the greeks had to elect the pro-euro faction or the western world could collapse. greece did everything it was supposed to and didn't matter. our averages barely budged today and shifted our focus to the next crisis. it happened within 66 minutes of celebrating greece, which leads me to this observation. stop trying to game europe. i know it's super important which is i'm giving you apprised of situation over there. there's nothing to do about it as an investor unless you aavoid in entirely and focus on domestic winners, not international losers. that's why i'm always looking for stories regardless of what goes dune in the european union.
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i have a terrific one tonight. i talk about how to profit from the ultra low price of natural gas here until the u.s. we know who the losers are from cheap natural gas. all the companies that find and produce the stuff, the ones that come up to me at jim cramer say, why are these down? there are a ton of nat gas winners that we don't talk about, mainly all the companies that need to buy natural gas as a larger input cost other than labor. last quarter we got terrific results from owens, illinois. ppg, that was fantastic, sherwin williams. they consume huge quantities of natural gas, and the natural gas winner trade is still on especially with the chemical companies. lately there's signs of a natural gas bottom. it was up again today. it's something people have predicted for ages despite the continued weakness in the fuel. the reality is the price remains
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low in america for the foreseeable future. it trades with british thermal units, and we have such a glut in the fuel with no way to export it for years that i get prices remain down in the dumps for a very long time. many, many years, certainly long enough to put up plants and capitalize on it. unlike the nonstop craziness in europe, cheap natural gas is go to roll out. let me introduce you to a company that is thinking of this. it's right not to like. it's a company called ce for all of people. it's only been around since 2005, when the company was bought public by the blackstone group, they took it private a little more than a year earlier. the stock has been hammered and that's one of the reasons why i want to call your attention to it. it's awful. it's fallen 27% from the early february highs. at these levels it got to a point where it's too attractive to ignore given natural gas prices. what does it do?
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four main business lines. they made intermediates which are building block chemicals used as starting materials for adhesives and coating and medicines and engineering resins and a type of high strength plastic used to create lightweight car parts. t they make acetate toe that's a soft material used in filtration products and they have an industrial business where they make emulsion used in paints and coating as well as lamination films and solar panels and medical devices. these are the building blocks of the economy. what do they have in common? they all use natural gas as a feed stock. it's a crucial input needed to create virtually all of the products i just mentioned. it uses so much natural gas every $1 of the commodity adds 15 to 20 cent to the company's bottom line. pretty significant given that the company expect to earn $4.52
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a share and the price is down 2 bucks from 12 months ago. not only that, it's jumping on the natural gas bandwagon making moves to capitalize further on the ultra low price of the commodity. companies spends $500 million on a new methanol facility in texas that should be profitable. remember, our country is much lower than every other country in the world. the facility should be up and running and expect to add 65 cents to the company's earnings per share in 2016 simply because they take advantage of a loser commodity. beyond being a natural gas winner, this company is a turn-around story. the company's most recent on april 24th was a disappointment. if it weren't for natural gas going down, i won't like celnenes. they blame europe for the weakness. that's one of the reasons the stock has been crushed. it has a terrific new ceo who took over just before the latest
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quarter, and he can dplieliver the long term. the chairman and ceo of abamar which is another chemical company. under his leadership the company's earnings rose at 22% compound annual growth rate for the eight years in charge. that's darn impressive. i like what he has done since coming to the company. we know that to execute a term you need to underpromise and overdeliver. i'm happy he reduced the guidance from 2013 from 6 to 5.50. you need to borrow lower when a new guy comes in. it's easier to beat. he plans to double the company's profits in five years based on the past record. i think he can do it. i like the fact he raised the dividend. they plan to boost the yield up to 1.5%, and that inspires confidence from me. we know it has industry-leading technology with a big cost advantage over the competition. i like the fact that the company
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gets 30% of sales from asia where the slowdown may not as bad as people think, especially with china cutting rates. see the transports today? we think china is cutting rates going higher. we've seen improvements in the business, and many company's end markets are getting stronger, auto, aerospace and the u.s. housing market. this trades at seven times forward earnings, and that's a bargain. one i don't think will last by the huge analyst meetings come september. the bottom line in this topsy-turvy market you need to search for trends you count on. trends like the ultra cheap price of natural gas and who can capitalize on it? understand most of the industrial companies haven't figured out a way to harness this incredible national competitive edge we have in the world. it's putting money to work and hiring people here and recognizing it can make product cheaper here, too.
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that's why i believe the long term story for ce is brighter than its competitors. ce may be one of the biggest beneficiaries of the north american industrial renaissance that i talk about that's coming here because of our national glut of natural gas. after the break i'll try to make you even more money. coming up, starbucks showdown. two analysts and two sides to this java giant. this market is big enough for one. things can get rough as jim takes a stand whether the coffee king can continue to grind out profits or if it's overcaffeinated. later, head west? nat gas went from sliding to recently rebounding off its lows, but is it enough to drive growth for pipeline player west energy. cramer talks to their ceo just aahea
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[ donovan ] i hit a wall. and i thought "i can't do this, it's just too hard." then there was a moment. when i decided to find a way to keep going. go for olympic gold and go to college too. [ male announcer ] every day we help students earn their bachelor's or master's degree for tomorrow's careers. this is your moment. let nothing stand in your way. devry university, proud to support the education of our u.s. olympic team. ♪ they've got an awful lot of coffee in brazil ♪ what should we do with starbucks? it's not easy these days. last friday two different brokerage houses had different takes on this fabulous growth company that made so much money for shareholders.
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on the one hand ups comes out and says the momentum at starbucks might be slowing. they see the same store sales decelerating and don't see any real catalyst. the very same day opco says starbucks has a wave of catalysts coming and you can get in. you know what we like to do here on "mad money" when we get the analyst face-off, picture two pieces of research that disagree against each other is a great way to familiarize yourself with the strongest parts of both arguments and figure out what you really believe. why is that so important? let's say starbucks drops 2 bucks tomorrow. at least you know why someone might say something negative. what's the right thing to do with starbucks, which was up nicely today? first of all, both ups and opco do rate the stock a buy. they both like starbucks, but there's a big difference between giving a stock a buy rating and saying its momentum is slowing and rating it a buy while you
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predict a huge wave of catalyst. let's start with the more bearish case. ups thinks starbucks may trade sideways in the near term. they're taking the pedal off the gas and ordering decaf. what's the problem? ups did this analysis and they predict a slowdown during the first two months of the third quarter. that would be bad. starbucks has same-store sales growth of 6% for the quarter. not super fantastic or terrible early but better than most retailers out there. not what you want to see if the stock goes higher? ups cut numbers for starbucks, but that's because the company itself cut the earnings guidance. starbucksed the cost of $100 million of a smak bakery brand not different from panera bread. the other reason ups cut numbers? they're concerned as is everybody else that starbucks
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european business isn't doing too well, only 2% of the profits. they have europe, so it's sell, sell, sell. all and all the guys at ups like starbucks. they think the stock might be dead money for a while as we get a rotation toward more long-term holders. when i read the piece, i wanted to sell and i liked starbucks. how about the bullish annists at opco? that's my cup of coffee. it's so positive that you think they were talking about a different company from the previous case. opco makes the case starbucks is running on all cylinders like running on duncan and a deceleration is unlike lie to say the least. they think the fundamentals are robust and can get better in 2013. they make more money for the k-cup business. green mountain's popular coffee brewer. these analysts at opco have a hot hand in the space. i like that. now i like. they downgraded at the top mcdonald's from plain old
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perform. that was back on january 24th. now mcdonald's is at $90. my charitable trust buys it under 90. i like they told you to get out when it was much higher. that's good analytical work. these guys aren't wearing bullish blinders. so when opco says starbucks should benefit from a wave of catalystsingi catalysts going forward. starbucks is launching a whole new slate of products this summer to premium fruit juices. on top of that starbucks is taking share in coffee pods from green mountain cukeurig. they challenge with their own machine that competes with keurig. they will sell this and all the associated coffeepots across
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multiple companies. when they announced this move, it caused green mountain to lose 15% of the profit every day. what else? okay. europe by not being in good case, but opco says their china business is expanding rapidly. that's one of the main reasons i'm a fan of starbucks for so long. they can ban the stores from 550 locations to thousands and thousands of them in the future, and i am with management. starbucks partnered up with coin star. it's a hyped stock. they partnered up with coin star on the red box kiosk things. they have 500 coffee kiosks all over the country. they will several seattle best coffee brand. that's just the beginning. they plan to have thousands of kye jofks in grocery stores and they're moving to the energy drink business. don't underestimate them. by the end of the year they launch the low calorie energy
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drink product all over the country. look at aha that monster beverage. have you seen that stock? all these great things happening in the next six months. they could ride a wave of catalysts higher. i think opco is right and ups is too negative. it's hard not to be very bullish, when you consider the howard shuttchultz has a tremen track record of executing on big ideas and promised us he will not rest. credibility? hey, come on, this man promised us he could turn around the whole company of starbucks when he returned as ceo in january of 2008. the stock was at $19. $19.86. now the stock is at $54.18. that's up 179% including dividends, and come on. i mean, he turned around the whole country tinkering with europe and it will be easier than turning around the whole chainment the price of coffee is going down big. that's terrific for starbucks.
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coffee is already down 33% year-to-date. that price is expected to decline further in the second half. this is a big cost for starbucks, and it's no shrinking, although i know i pay the same high price for my triple cappuccino this morning than i did when coffee was much higher. you have to like a business that charges me the same price for the cappuccino with skim wet even though the raw cost is down dramatically. that's a good business. starbucks about 9 points off the high. 20% growth rate, and i think this stock is too good it to pass up at these levels. ups sees a company with very few catalysts and think half, right? could be 50/50. as we see the more bullish annists were right to talk about a wave of catalysts and it should push starbucks higher. it's a buy and weakness. ups looks at this coffee cup and says it's half-empty. opco views it as half-full. i'd rather pay the low price now than pay much more when everyone
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can see the cup is filled to the brim with red hot latte. let's go to carol in california. >> hi, jim. boo-y boo-yah. i like to know what you think of green mountain coffee roasters? i feel like i should have sold it weeking ago. nouf we have the news today about the grocery stores coming up with their own cup. >> i don't want to touch it. i don't want to touch it. my friend herb greenberg has raised enough questions. he doesn't tell you whether to buy or sell. his job is to present skepticism. he's skeptical. the lack of skepticism by the other people who like green mountain is just wrong. i'm with herb. green mountain still makes me nervous. i'd rather see you in starbucks. jerry in new jersey. jerry. >> caller: how you doing, jim? jim, my wife and i are eating healthier with food products from smart balance, smbl.
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what's your opinion of this stock? >> wow. i got to do work, man. i got to do work. i like han and i like whole foods very much and i like dean foods very much. maybe this is the kind of -- look at that dean foods' 52-week high. let me come back. i have work to do. when you give me new ideas, it makes my day, but i'm never going to tell you i like it if i don't know it. i don't know it well enough to opine on it. opco thinks starbucks can be the cream in your portfolio copy. i wish the stock weren't up so much today. i was trying to nail it all weekend. it's not too late, starbucks is going higher and not lower. stay with cramer. coming up, ride the lightning. take a nonstop thrill ride as cramer goes stock after stock. all your calls taking rapid fire on the lightning round. later, head west? nat gas went from sliding over
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the past year to recently rebounding off its lows. is it enough to drive growth for pipeline player mark west energy. we talk to the ceo just ahead. all coming up on "mad money." people have doubts about taking aspirin for pain. but they haven't experienced extra strength bayer advanced aspirin. in fact, in a recent survey, 95% of people who tried it agreed that it relieved their headache fast. visit fastreliefchallenge.com today for a special trial offer. [ male announcer ] ok, so you're no marathon man. but thanks to the htc one x from at&t, with its built in beats audio, every note sounds amazingly clear. ...making it easy to get lost in the music...
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it is time. it's time for the lightning round. buy buy buy or sell sell sell. i play this sound and the lightning round is over. are you ready? i'm time for the lightning round. frank in new york. frank. >> caller: new york city boo-yah to you, jim. want to say that me and my family love you and your show. thank you for the hard work you do. my stock i've been holding onto it. ssly, shutter fly. >> you know what? i'm not going to opine to shutter fly, because recently i used it and i liked it so much -- thank you to linda who brought me my pictures that i have to go back and look at this company again. let me do that rather than make a determination.
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within the seven days i'll have a judgment. niko in california. >> caller: hey, buddy. my symbol is dn, dn. >> no, no. too risky. it's been all up and down the block on this one, and you know, it's not selling as well as it should. there's a lot in place. i'm going to send you to johnson & johnson. a lot less risk and a lot more reward. mike in new york. >> caller: hi, jim. thanks for all you do to educate us retail investors. >> i sure try. >> caller: my question is on pitney boez, pbi. >> we have to call that company. the last time they were on the stock was around 19. they said don't worry about the dividend and they were find. i have to be worried about the dividend. it's total red flag territory. what does it yield? it yeields 10%. something is wrong there. i want them to say why i shouldn't be worried about the dividend. jose in texas. jose. >> jim, boo-yah from houston, texas. >> good to have you. >> all right.
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home of the soon-to-be houston texans super bowl champs. thank you for taking the call. my stock is krom castle international, ticker cci. what do you think? >> i think you have more horse sense when it comes to stocks than football. ground castle is real good and so is american tower. i'm with them all the way. you got good tower sense. let's go to matte new in new york. matthew. >> caller: jim, a big new york yankees boo-yah! >> yes, sweep this, sweep that boo-y boo-yah. >> caller: my question for you is regarding boeing,ticker simmer ba. should i hold it or sell it? >> oidz i'd be eating this hat. i have a yankees hat. ij boeing is terrific and mostly what i like about it is airbus can't seem to make it, and the 787 came off the assembly line. ba is a buy. warren in louisiana. warren. >> hello, jim. a big louisiana boo-yah to you,
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and many, many mores. >> i'm going to give you a tulane boo-yah back at you. >> caller: i'm calling to discuss the stoke inner digital corporation, idcc. >> steve miller is right. i want you to take the money on that gain and run. $6. we're not playing through that drama anymore. charlie in florida. charlie. >> caller: boo-yah, jim. calling from beautiful florida. >> man, fantastic. >> caller: i'm a first-time caller, long-time listener and my stock today is tipco. >> it has been acting badly. we heard good things about the cloud from oracle tonight. at that point, you know what? we are going to ring the register because we're tired of getting beat up. it's too inconsistent a stock even if the company generates
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consistent returns. now ladies and gentlemen is the conclusion of the lightning round! >> the lightning round is sponsored by td ameritrade. like in a special ops mission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account. x: sounds of marching bande and crowd cheering, sfx: sounds of marching band and crowd cheering so, i'm walking down the street, sfx: sounds of marching band and crowd cheering just you know walking, sfx: sounds of marching band and crowd cheering and i found myself in the middle of this parade honoring america's troops. which is actually quite fitting because geico has been serving the military for over 75 years. aawh no, look, i know this is about the troops and not about me. right, but i don't look like that.
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just because the greeks finally did the right thing this weekend doesn't mean we can aafford to stop playing it safe. in this market nothing provides more safety than a big, juicy dividend. take mark west partners, but it's been hammered over the last month and a half over the price of oil. at these levels i think it might be time to circle the wagons around this one. mark west is a natural gas gathering, processing and transportation play. the company owns a host of gathering systems, networks with small pipelines to collect natural gas near the wells to be taken to a larger pipeline. it has a processing businesses where it removes contaminants and various nat gas liquids, ngls we call them. even though they're down in the dumps, mark west is a driven business. they're the largest natural gas processor in marcellus shale and they're building in ohio, the
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next big shale play. the company has assets all over the southwest. not only does mark west give you the juicy 6.3% yield, it's growing that payout aggressively. the company's distributions have grown 216% since the company became public in 2002. mark west reported it came in better than expected. it was a bullish analyst day june 1st. don't take it from me, let's talk to the chairman and ceo to find out more about his company and where it's headed. welcome back to "mad money." have a seat. >> thank you so much. >> thank you for coming to the show. this morning on "squawk on the street," and david faber asked me who do you have on? i said i had you on. in my in box within the next hour same question over and over again. ask him what's the matter with them? are interest rates going down? i don't want to put you on the spot for your whole industry, but the weakness has been profound. what's behind if?
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>> it has been kind of an ugly six weeks or so. may was pretty ugly. generally mlps as an industry was down 8% during may. we were down significantly more than that, and it's driven primary by this uncertainty in the global markets, which is impacting commodities and crude oil specifically. a lot of companies have a lot of length in crudes and ngls. but to me it's sort of irrational when you think about it. >> this is what i want to get at. a lot of your business is fee-based. if you had to try to put a relationship, say, between an obsession dental or a sun oil hess versus, say, yes, the sensitivity is not nearly as graets, and yet you trade it as if you're every tick oil down you get hurt. >> yeah. i think that, again, as far as mark west is concerned specifically, we are long ngls and there's not a good
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understanding, natural gas liquids. there's not a good understand about our hedging program and how we protect the downside with our hedging program. plus the majority of our margins, our operating margin, operating income is fee-based and growing significantly. essentially 85% of all the investments we're making today are for fee-based type contracts. even though we do a lot to try to demystify our business, we are a gathering and processing company. we're in most of the large shale plays where a lot of natural gas liquids are produced. there's this perception that gathering and processing companies with ngl exposure have risk when it comes to the global economy as it relates to driven primarily by crude oil pricing. >> you in your big brochure, your show, you have propane, butane, natural gas,et ethane.
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all of these are in glut, so what does that say about your earnings per share if these products you gather are in glut? >> well, it's a great long-term situation to be in, because being long natural gas liquids, whether that's propane, met thain or the butanes, the natural gasolines, it's a great place to be long term. we can talk about that, because of the correlation with crude oil and the long term prospects for crude oil. the glut you talk about, jim, is driven for propane for lack of winter and for ethane, we've had a lot of the crackers in the gulf coast that have been down. >> the refinery process. >> 250,000 barrels a day, which is a significant part of the complex have been down. they're coming back up through the last half of the year. the long-term prospects for ethane are bright because more of the petro chemical industry is continue its to convert for their crackers. so i like to talk about the fact
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that long term, even with all the production of ethane coming online with the shell plays, the fact is ethane has a bright future because so many conversions are taking place. we're at an economy where we need the demand, continue to drive the demand for ethane. >> let's step back for a second, because your story gives you a yield. you have tremendous amounts of money in utica. which is ohio, a lot of jobs being generated in marcellus, pennsylvania. do we need to see for america to start their natural gas engines? is our issue your business could explode to the upside if we in this country recognize how much oil and gas there is in places like ohio and pennsylvania? >> well, jim, as you know, the demand for natural gas is really going to be driven over the long term by power generation and
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increased heating. transportation is a key part of that. the energy information agency is projecting that by 2020 natural gas demand will krez by 17%. that's a lot. four tcf. that is come from shale plays, so we're in the right place to be able to support that growth. absolutely is sort of a no-brainer. we need to continue to move towards more transportation-driven natural gas demand. it's happening. it's going to take a while. frankly that energy information agency projection really has little in it for transportation. it's the right thing to do. it's cleaner, 30% less emissions come from natural gas vehicles than gasoline engines, and obviously it's a lot cheaper, half the cost on a miles per gallon basis to use natural gas. that's a great article. >> i do, too. >> it's not the big explosion we like, but it happens gradually. >> it's a matter of time. >> absolutely. thank you so much, frank simple chairman of energy partners. i know the stock is down, and you get the great yield and it's
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decline going on. around this decline in volume it has to do with the d disintegration. they made no money for ages, although individual stocks produce incredible returns. the mechanism stops working well enough to maintain the trust of the average american like the crash flash and facebook is emblem mattic. people knew they took risk when is they took stocks. it revealed a broken system that can lose you a fortune because you did nothing more than bought stocks. not because the fundamentals that the stocks represented pieces of. it decoupled from the nijtsds and the companies they represent. the sudden decline in the face of nothing revealed the market was a play thing for high frequency traders that has nothing to do with savings or retirement. it changes things where you
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argue you're wregless if you do own stocks. the facebook fiasco took it one step further. they didn't let you sell. a difficult anddy par rajjing issue when you didn't know if you own the stock to begin with. i remember a month ago today where so many watched the decline of the stock. do i own it or not? i can't get a sell? it's liking your debit card swallowed by the atm machine without any 800 number to call. that's the definition of the kind of asset you can't bank off of. the institutions so much on the line here are doing so little to reverse the volume trend. i never hear brokers address the issues about the fraility of equities head on. given the degree to which regular people soured on stocks, you expect the brokers in
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exchanges would have a reasonable explanation with the government. there's no urgency about the volume issue among any constituencies. personally i don't care. i care about the price, as in can people make money owning the right equities? can they buy stocks that climb in price? as long as individual investors make money in stocks, i'm indifferent to volume. i find it shocking that those who are dependent on volume to make money seem to be doing nothing to reverse this trend. in the end the exchange is the brokers, not the owners of good stocks are the real losers in the post-flash crash, post-facebook regime. stay with cramer. [ male announcer ] this is corporate caterers, miami, florida. in here, great food demands a great presentation.
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♪ then we turned the page, creating the rx hybrid. ♪ now we've turned the page again with the all-new rx f sport. ♪ this is the next chapter for the rx. this is the next chapter for lexus. this is the pursuit of perfection. something's afoot here, and i saw it in the transports all day. not just the airlines, but i'm talking about union pacific, csf, norfolk southern, ups, these stocks run when something good is going to happen. they are tremendous tells, so to speak, of either liquidity coming in or chinese interest rate cuts. the reason why i felt today was pretty good, despite the spanish tenure
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