my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now. >> hey, i'm cramer, welcome to "mad money," welcome to cramerica. other people want to make friends, i'm just trying to make you a little money. my job is not just to entertain you but to educate you and teach you. so call me at 1-800-743-cnbc. it's happening. i was over at the stand where i buy my coffee every day.

a couple people asked me what was going to happen, said, hey, cramer, boo-yah, is this thing for real now? i mean, are we really in trouble? i knew right then we'd have a nasty selloff and we did, dow sinking 137 points, s&p giving up .90%. nasdaq plunging. i knew it because the politicians have finally been able to create enough concern in enough people that it's being chatted about in the street. now it is ironic and tragic and sad that washington was also the scene of a real life and death drama today. i'm talking about the artificial one created by the politicians. both sides have started accomplishing what i perceive as their actual goal, which is to embarrass each other, stigmatize each other, make us feel the other side has a reason to worry about being reelected. our savings are also affected by the debate in washington. one side, the other side or both are able to paralyze us with enough fear and truly hurt us

with the collateral damage. well, we haven't really cared about it. but today, we started caring. now, i'm not going to tell you how i feel what can or should happen. i want them to settle their differences, allow the country to sell some bonds without defaulting. i don't know why the republicans don't just give in on the debt ceiling thing. they're playing real hardball over the budget, offering substantive, not rejectionist changes that make life better for most of the citizens. i, like you, am tired of hearing that either side wants to negotiate. i know nothing will get done until there is more hardship. we have to have more hardship. market has to go still lower because nobody pressures washington until it really hurts much more than it's hurting now. it's not hurting enough yet. i kept thinking if i were a politician in that coffee cart this morning listening i'd be jumping up with joy to see how people are really finally getting scared. it's kind of like the village burning with napalm in "apocalypse now", it's the smell of victory for these

politicians. let's leave the fantasy and deal with reality. the moment we transition into this is for real, there are going to be insanely stupid and vicious and unwilling to compromise. that's the moment when it's time to do what actually worries me. as me, as involved with the business world. you know what it is? you know what moment we're at? it's the moment we start cutting the earnings estimates of the companies we follow. this goes to this. hey, we saw that yesterday in united technology, a great american company said there are 5,000 jobs at risk because the government closure. terrific, 5,000 people at utex alone about to lose their jobs because of the principle of what? what are they fighting for? do you have any idea how hard it is for washington to make up for the 5,000 jobs they're costing? they can wipe them out in a three-day shutdown. hey, hey. you think it's going to be any different for lockheed martin or

general dynamics? if i were an analyst following the companies, i would cut numbers before tomorrow morning, before the open. why not get ahead of this thing? saying, hey, i'm taking down my rating. obviously, though, the pervasive nature of all of this is percolating through the system. last night we had ceo of paychex on the show. i happen to be a customer of paychex and i have to tell you that i met with partners in the businesses i'm involved in, and in every case, we had to estimate how much business we could lose or how we could slow things down spending wise because we're no longer in a hurry to do things fast. why bother if three weeks from now the government's going to default? who is going to spend? who is going to travel? who is going to want to eat out in that situation? each business i'm involved is a service business which caters to that trade. i know what i'm talking about here. i'm nervous. take this morning, one of my colleagues at thestreet.com who picks stocks for a living asked me advice on a company that leases and maintains uniforms. i said sell it. colleague says why? i said because the numbers are

too high given what's going on in washington. why would you expand and need more uniforms if the politicians have made it clear that the economy's going to collapse. who starts spending ahead of a calamity? hey, calamity coming, let me spend a lot of money? now, you could argue that all this is fanciful and soon to be a resolution to which i say why do you think that? you having a lot of pain? i think pain factor is just beginning here. there hasn't been enough heartache. they want more heartache and pain. there haven't been enough days where it's hard to make ends meet. we haven't had enough down 137 days yet. but if you're involved in real business, you know that when people are buzzing about a calamity, you better get ahead of it and stop your hiring and start your firing. just like stages of hiring and firing in the real world. there are stages of buying and selling in the stock world. today as it sank in there's a siege going on and the odds of solving this thing are growing

longer, not shorter, by the day, we started having to include what i call the mickey mouse factor when it comes to stocks. yes, as in the u.s. has become a mickey mouse place to invest. we need to understand the lack of primacy the united states has these days. when i was in the money management business in the '80s and '90s, there were two worlds, the u.s. and everyone else. we were no longer so big we can stand on our own. we need people from other countries. but investors around the world, they don't want any mickey mouse factors at all when they're choosing where to put their money. like, oh, yeah, they may not pay their debt. that's called mickey mouse. who needs this market when it could implode two weeks from now? why not go to more stable markets like germany or united kingdom or japan? they have a very low to no mickey mouse factor. italy's got it. they dealt with their mickey mouse problem much better than we have. now, i know that in the end we have a government that's not as good as its people and its corporations. i'm totally confident that you

and i and the stock market will get through this period. everyone has to recognize this was day one when chaos intruded into daily life. it will take another week before the majority realizes the pickle we're in and knows we're really looking mickey mouse to everyone else on earth. i'm sure we'll fly up at one point tomorrow, as we always do on fridays when the short sellers fear that there could be a deal over the weekend. that's how it always is with these political fights. the cycle will start all over again on monday if there's no deal. here's the bottom line. the fear factor and mouse factor are now percolating, and with that, we're going to get number cuts and downgrades galore as analysts try to get ahead of events. i have warned that it was going to get ugly before it gets pretty. thanks, washington, for welcoming us to the club, the mickey mouse club of lowered estimates, lowered expectations and lower stock prices. in the name of, oh, when you figure that out, would you let me know? it's way beyond my pay grade. michael in michigan. michael? >> caller: jim, thanks for taking my call and let me give

you a big michigan go blue boo-yah. >> okay. sounds good. what's up? >> caller: all right. ticker symbol ael, american investments, american equity investment life holding. it's a predominantly fixed index annuity and fixed annuity company, like 95% of their investments, that's where it comes from. and i'm a little confused because a lot of it is a ten-year treasury. and i'll try to make this quick, but -- >> people like annuities. >> caller: huh? >> people like annuities. they think it's a better deal than owning just cds. >> caller: i know. >> i'm sorry. go ahead. >> caller: i know. my point is with everybody like yourself saying you need to be out of treasuries and be in equities so forth, i see and look at the stock and i'm in and out of it and the float is just crazy right now, it's like 29%. there isn't any shorts available

at least to the brokerage i go through. is this a short squeeze? >> yeah, i think it is a short squeeze. a huge amount of stocks short. i'd be careful on that. i don't like those situations. a lot of people like to go on the backs of the short sellers. we want to have fundamentals going for us. this stock's up a lot. maybe it's -- you know, i'd be a seller rather than a buyer. let's go to max in florida. max? >> caller: boo-yah to you, dr. cramer. >> exactly. >> caller: i want to know if you feel as i do that elon musk and his world class engineers will engineer their way through the recent problems much like boeing would, and maybe downgrade would be the rain on the parade. do you think this stock will run until the end of the year? >> you know, when you see the video of the tesla car, i must have watched it ten times, i was fascinated. and when you're fascinated and the stock is up 400%, there'll be people who say i'm not waiting around for the second

fire, and that's where you are right now. i have always said this stock goes up until they execute poorly. this was not their fault, but when people read a video, and they own that stock, they'll say i'm selling it because the next one will be as bad. unless there's not a next one, the stock is going to go lower. that's the problem, people are going to keep waiting for the next one. tesla, it's finally time to take a little profit if you -- i've stood by and watched it as a cult stock. if i were part of the cult, i would feel less cultish after today. can i go to dominic in new jersey, please, dominic? >> caller: hey, jim, how's it going? >> all right. how about you? >> caller: hanging in there. my question to you is around imfa. >> yes. >> as we continue to see corporate push to cloud technology, it appears well positioned to benefit their daily integration systems. and the signal that we're getting, guidance from the company and the ceo is that

they're looking to more than double in size over the next two years, whether it's by -- >> you remember the couple of shortfalls we had here. you know, we just had some really bad shortfalls. we felt the last shortfall was the one that was the bottom. but now it's up a lot from the shortfall. i'd like to see a couple of really good quarters before i get as bullish as you are. congrats, washington, your mickey mouse antics -- what can i say? you've officially lowered the bar, and when we get out, well, beats me, but i do know this, no matter what, m-i-c-k-e-y, we'll get it together. "mad money" will be right back. >> coming up -- time to connect? from cyber security to server performance, f-5 networks is becoming one of the biggest players in the i.t. game. does the recent price dip make it prime for plugging in, or should you browse for a better portal? don't miss cramer's take. and later, hidden find? cramer's been blazing a trail

through the energy industry, tapping into the companies striking black gold. now a newly minted stock has caught his eye and could be ready to heat things up. stick around for the big reveal. plus, export economy? dominion resources is leading the charge toward exporting american natural gas. as we move closer to shipping out our vast reserves, is now the time to hop aboard? don't miss cramer's exclusive with its ceo, all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.

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after today's delayed reaction session where the market finally really did get crushed thanks to the budget fight, we're going to have to start getting a little

opportunistic. the government shutdown has only just begun and even worse the debt ceiling drama is coming to a head two weeks from now. consider it the second barrel of a double-barrelled shotgun that our elected leaders have aimed right at the heart of the financial markets. that doesn't mean we have to give up. doesn't mean we sit on the sidelines like spectators until everything gets resolved. although you should have been raising cash in your portfolio for weeks. didn't look that smart when it kept rallying every night, but feels a lot smarter now. you know what, if you've got that cash on the sidelines, let's start thinking about how to put it to work in more days like we had today, because there will be more weakness. see, on days like today, i find it important to remember that when stocks go down, shocker, they get cheaper. they become more, not less, attractive. selloffs like this one create opportunities. this is a stock you can pick out on the way down, gradually build a position as the averages head lower. it would not have been down today if the stock market hadn't been done.

see, that's right, washington is giving us a fire sale. i want you to put f5 networks. i have not liked this stock in years. ffiv, right at the top of your shopping list. f5 is the leading player in the application delivery networking business, don't let your eyes glaze over. means they provide hardware and software that helps companies securely and efficiently manage the delivery of application and data traffic on their networks. big data management. their products ensure that the traffic doesn't jam up the network and they also make everything secure which is important. although they sell both hardware and software here, it's on the software side where f5 truly excels, which is why they have a sky high 83% gross margin. usually gross margins at the 60% level and the gross margin being what the company makes after the cost of the sales of a software business. i want you to think of f5 as an agnostic software provider. with the use of cloud computing,

it's more important than ever that the information stored in data centers be able to flow quickly and securely to the right people, not just people, but to the right ones. now, i used to say that f-5 represented the fast lane of the information superhighway. i've been rethinking that. it's not clear. this company is more like the person who directs all of the stoplights in the big city, keeping the traffic moving as fast as possible while still ensuring safety. we need f5 considering that internet protocol traffic should triple between now and 2017 as networks move data, voice, video and all sorts of additional services throughout the web. but here's the thing, after delivering some incredible outperformance in the rebound from the great recession, f5 has turned into a genuine bow wow, a real dog. the stock is down 9% for the year even though the nasdaq is flying, in part because the company missed numbers in a big

way during the spring. took another nasty hit today along with the rest of the market falling above 43. f5 is still down 4% while cisco has given you an 11% gain even though they've disappointed too. that's the same period. and remember, during much of that time, cisco was not doing well. cisco's outperformed f5 even though they've both been doing okay. why am i telling you to put f5 on your shopping list? f5 is working aggressively to turn things around. this could become a comeback play, a turnaround. the stock has come down to the point where it's extremely cheap. it's never been cheap before. and as the crisis in washington continues to unfold, i bet it gets cheaper. $16 of cash per share, the stock is selling for 17.3 times next year's earnings, that multiple falls to less than 15 times earnings when you back out the cash. this is usually a company that has had twice the market multiple, now it's below the market multiple. let me put that valuation in perspective, please.

at the moment, f5 has a long-term growth rate of 13.9%, trading at slightly more than one times growth. consider the historical context. since 2007 on average f5 has sold for 24 times earnings. if you gave this stock that multiple, you know what, this thing would be at 122. that'd be almost 40% higher than it was if it just reverted. however, i'm not simply banking on reversion here. statistics speak to the fact that all sorts of things return to their historical average. maybe much higher as well as higher earnings estimates. remember, you get the price of a stock by multiplying the estimates and then the estimates and then figuring out what the "p" is, m times e equals p. two weeks ago cantor fitzgerald initiated coverage with a very compelling buy recommendation, slapped a 110 price target on the stock. and would represent a gain of more than 21 points from these levels. how can f5 get there? when we talk about tech, tech trades on new product cycles.

as products get older, the sales decline and then companies come out with new and significantly improved models and sales come roaring back with a vengeance. that's the tale of the tech. in the most recent quarter, they posted a 10% year-over-year decline in product revenues. that's because it was at the trough of the key product cycle. the company now has the biggest product line refresh in four years in the works and when these new products hit the market, they'll return to growth. plus the company will be up against easy comparisons thanks to the softness of its recent quarters. f5's core application represents a $5 billion total adjustable market, one that can expand to $14 billion. f5 is a big chunk of that pie. and their market share could grow as cisco has dropped out of direct competition here. about a year ago, they stopped designing new application delivery products and with f5's next generation product line

coming through, they could sweep away the remaining market share in this space. i thought this was a compelling fact. beyond that, f5 is moving to new areas with big sales coming related to mobile, security and the cloud. three incredible themes. according to cantor fitzgerald, f5 could have a $20 billion total adjustable market. keep in mind this is a fierce competitor. how about some catalyst here? first of all, the company reports on october 23rd. i'm actually giving you this story ahead. i usually wait for the quarter. i wouldn't be at all surprised if they actually beat the expectations because they've been reduced so heavily. however, that's right after the debt ceiling debacle is expected to hit. if washington is still a mess at the time, f5 may not go up even on a good number. but then on november 14th, the company has an analyst meeting where i think they'll tell a positive story. ideally we'll be out of the woods by then with the shutdown and debt ceiling. i hope. here's the bottom line, f5 has been bent, spindled and mutilated but this company is turning things around with a crucial product refresh coming.

biggest in four years. the networking business is healthy here and i think the stock deserves to be bought. i want you to use the washington-induced weakness to buy f5 incrementally over the next month. keep in mind i haven't recommended this stock in years and years and years. it'll get cheaper as it goes low. and i bet it springs back once everything gets resolved in the capital. stay with f5, stay with cramer. coming up -- hidden find? cramer's been blazing a trail through the energy industry, tapping into the companies striking black gold. now a newly minted stock caught his eye and could be ready to heat things up. stick around for the big reveal. ♪

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no hidden fees. it's just that i'm worried about you know "hidden things." ok, why's that? well uhhh... hey daddy, what's your job? daddy's a uhh florist. are you really a florist? dad, why are there shovels in the trunk? there's no shovels in my trunk. i see shovels... you don't see no shovels.

just am. well, it's true. at ally there are no hidden fees. not one. that's nice. no hidden fees, no worries. ally bank. your money needs an ally. all week i've been trying to help you find stocks that can transcend the washington morass. that means looking for high quality names in industries that don't need the government to thrive. which is why tonight i want to introduce you to a whole new one, it's a pal of mine, a buddy even, it's called frank. as in frank's international, fi. the global oil service play. now, you know that we have this drilling boom happening here in the united states thanks to the new red hot shale plays. dominion, you keep hearing about

it. it's all these new companies. but it's actually not just on domestic land, not just here. the price of crude remains high all over the world. and many companies are making use of fancy new technologies to get more of the stuff out of the ground often in places that were previously considered inaccessible, simply not economic, using old-fashioned drilling techniques and with a lower price of oil. this is a niche oil service play named for a guy named frank. company's from 1938 but only did come public this past august and a lot of people overlooked it when it did. while it may not be a household name to you, it is a household name within the oil patch. everyone knows franks. franks is a key player in what's known as the tubular services space. may sound like a piece of early '90s slang, but it's a crucial part of building an oil well. when you drill a well, you need to install casing pipe to keep the well bore stable as well as production tubing to pump the oil to the surface. there are two major players in

the casing and tubing segment of the oil patch, frank's international and then weatherford which each control about 20% of the business with the rest of the competition being pretty fragmented. giving that weatherford is stumbling of late, i think that frank's has a fabulous opportunity to take share from its number one competitor. even without the opportunity to steal lunch money, the company gets 74% of the revenues from offshore drilling. more than half of the business coming from deep water and ultra deep water sites that require a heck of a lot of tubing. franks is more international and domestic, get about 50% of sales overseas which is a hot area right now and only 15% in a crowded and oversaturated north american land drilling market where pricing has been under serious pressure. go ask baker hughes, go ask halliburton, they'll tell you, this country is not a great country for oil service. why is offshore so much better for an oil service company than onshore? because offshore is where the real growth opportunities are right now, especially in deep and ultra deep waters.

we know that the ultra deep water of oil rig fleet is expected to grow by 40% between now and 2016. that's not so good for some of the fleet makers, i mean for some of the actual fleets. but offshore drilling is a much more service and technology-intensive activity than the onshore variety, which means it's a lot more profitable for a company like franks international. for example, the average land welling in the united states requires about $50,000 worth of tubular services. but the average deepwater well in the gulf of mexico requiring roughly $2 million of tubular services. 40 times what an oil company would spend drilling on land. even though you hear about these land drilling projects, they're not as lucrative for franks. we've got 65 new ultra deepwater rigs coming online by 2016, representing $500 million opportunity for the industry. that's not crazy. it's not a crazy assumption given the company's expertise. these rigs could be worth $200 million in new sales, that's huge for a company expected to

produce $1.14 billion in revenues this year. not only does franks have growth but visibility too. it's easy to see how much money they'll make down the road. that's because on newly built rigs, contracts for the tubular services that franks provides are typically signed anywhere from 2 to 5 months before the rig is developed, is delivered. and once these contracts are awarded, they tend to be pretty sticky, as the companies that are drilling in deep waters don't like to switch contractors mid project because it's very expensive to switch once you're in. it's also labor-intensive. at that point, franks international equipment will already be fully integrated into the rigs and it's needed to run production tubing which can come months or even years after they lay the initial casing on the well. plus, everybody in the oil patch tells me this, franks is a terrific operator. terrific operator. because the company has a niche focus, they pretty much only do tubular casing, that puts them in a competitive advantage. unlike weatherford where tubing is 6% of the business. and franks international is more

than just an oil service company. it's really an oil service technology play. in the same mode of core labs. have you seen that stock? that's given us tremendous gains. not only does franks have state of the art engineering capabilities but they're sitting on a boatload of patents. as a 43% margin on earnings before interest, taxes, depreciation and amortization margins while the peers closer to 19% on average. some technology companies have much higher margins. but in this patch, the oil service, these margins are unheard of. it's really the only sizable competitor out there. and franks is disciplined on bidding for new contracts. they won't give in on pricing in order to win on a business that would be less profitable. even though franks is new, it's unique for a newly public company in that it didn't need to raise money. the company has a solid balance sheet with barely any long-term debt.

i think they came public in order to use their stock currency. stock is a currency, they can make acquisitions with the stock. management has said they want to do some small highly targeted takeovers, buying companies that offer similar services that could easily be added to their product lineup. right now frank sells for 19 times next year's earnings estimates, about the same multiple as fmc technologies. good company. but considering that franks has substantially larger margins, i think the company deserves a higher multiple than fmc. the stock barely batted an eyelash despite the epic falloff of the market. here's the bottom line, we're on the hunt for companies that can thrive even in this domestic environment that's so troubled by washington. franks international fits the bill. it's a brand new oil service ipo. it's mostly overseas, mostly offshore, and the company's a fantastic operator. i think it's a buy here into any washington-induced weakness, although i can't say i expect that much of a pullback because it has so little to do with the capital. peter in connecticut. peter? >> caller: jim, how are you, buddy? >> real good.

how about you, peter? >> caller: i'm doing wonderful. my question, stocks on gbx greenbrier. >> it's more of a commodity play than most people realize. i went around with greenbriar and trinity. these companies that make transportation equipment, they cut each other's throat off and make it very difficult. and this one's up 55%. i don't think you should buy greenbriar up here. can i go to florida? >> caller: hello, jim, i'm a big fan of your show. >> thank you. >> caller: i find your show very helpful in making stock decisions for me on a day-to-day basis. >> thank you. >> caller: i really appreciate your candid and straight talk on what's going on out there in the market without sugar coating it. and this really, really helps investors like me on an everyday basis. i really appreciate that. >> thank you. >> caller: i really like to have

your take on petrobras argentina, pze. >> no, that's too easy. it's had a nice run. argentina is not where i want to invest. i was willing to invest in petrobas. that's still cheap. hasn't done that much yet, i think that's a much better buy. i like pbr, not pze. don't let domestic politics cramp your portfolio's style. we're hunting around for d.c. resistant stocks. when we find them, we like them. you know what we like? we like franks international. buy franks and say thanks. stay with cramer. tomorrow, kick off the trading day with "squawk on the street" live from post 9 at the nyse. >> stay tuned, the negativity seems to be being cut by some of these calls. >> it all starts at 9:00 a.m. eastern.

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it is time -- it is time for the "lightning round" on cramer's "mad money." rapid-fire calls, you say the

name of the stock, i tell you whether to buy or sell. play until this sound and then the "lightning round" is over. are you ready ski daddy? time for the "lightning round" on cramer's "mad money." michael in new jersey. michael? >> caller: boo-yah, professor. >> oh, thank you for giving me tenure. what's going on? >> caller: yeah. hello, one question involves himx. is it still a buy? >> you know what, i've been thinking a lot about this. i thought the stock should have been 13, 14 by now because of that google investment. so i'm going to say yes. let's go to raj in texas. raj? >> caller: boo-yah, jim, from houston, texas. my question is annaly capital management. >> and the answer is, no, i'm not going to recommend that stock. i'm not recommending any of the mortgage real estate investment trusts. they're too hard to understand and difficult to manage during a taper/no taper situation. james in new york? james? >> caller: boo-yah, jimmy. >> that was one of the best ever. what's up? >> caller: what's up, man?

i'm trying to pick your brain today about iron mountain. >> well, this stock got hurt because people thought it would be a real estate investment trust. it happens to be a very good management records company. i'm actually going to say, yes, buy it. let's go to steve in new jersey. steve? >> caller: boo-yah, jim, thank you for my call. >> you're quite welcome. what's going on? >> caller: jim, i've had ibm longer than i've been married, two splits ago. and i've watched it go from 220 down to the 180s. what do you recommend? >> well, they missed the quarter. a lot of people feel warren buffett is selling. i don't know. i don't want to own ibm. linda in connecticut? >> caller: cramer, is now a good time to buy valmont industry? >> i don't know. just a mismatch, too hard for me. jimmy in florida. jimmy? >> caller: yes. >> go ahead. hello? >> caller: hello. >> you're up, jimmy. >> caller: okay. hi, jim, this is jim from

florida via rhode island. >> okay. >> caller: i wanted your opinion on a stock, hei, jim. >> i like heico, aerospace, a lot of good things going for it. i'd like to buy it even on this weakness. i think it's a good one. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> the "lightning round" is >> the "lightning round" is sponsored by td ameritrade.

what should we do with the so-called bond alternative stocks? the high yielders that thrive where the federal reserve bond buying program continues to keep the yields from fixed income artificially low? given what the capital could do to the economy, the fed might hold off on tapering for some time. consider dominion resources, the nation's largest -- one of the largest gas and electric utilities and it sports a 3.65% yield. dominion roared last month when it became clear that the fed wasn't going to ease up on the bond buying, and even after getting dinged with the rest of the market today, barely two points off of the 52-week high. it's not just a utility, though

it gets 80% from the regulated utilities. it has a distribution business in the marcellus shale positions and an export terminal they're building in virginia. this is a dependable company boosted its dividend by 7% annually by 2010, you don't get that from treasuries and with a potential debt ceiling looming on the horizon it's possible you get less. let's check with the chairman and ceo of dominion resources, find out more about how his company is doing. welcome back to "mad money." >> it's great to be with you. thank you. >> because of where your utility's located, will you see a decline in usage because of the shutdown? >> we're going to have to see how that goes over the course of the year. we had increased usage, actually, in residential customers in the second quarter. third quarter just finished, obviously. but we did have an impact in our government sales and some commercial sales in the second quarter. but it was fine in the first quarter.

so we'll have to see how this all works its way out through the course of the year. but relatively to many in our industry, i think we're in decent shape there. >> you made a lot of changes since we spoke last. divided into two things. first, you got the approval for cove point, and i want to get a sense of whether you have customers lined up or if you're feeling if you build it, they will come? which is it? >> jim, we have signed 20-year offtake agreements, terminal service agreements, one with sumitomo in japan and the other with gail in india, they'll take up all the capacity between the two of them for 20 years in what we would call a take or pay contract. whether they use it or not, they'll be paying for the right to use the facility. that's 20 years after we start operating which we expect to be in 2017. >> and you're sure -- there was a fabulous article in the "new york times" about your facility. it seems like it's much closer to reality than anybody -- and

maybe -- i don't know -- because of the amount of infrastructure you have, it really is why you're putting a lot of money in, you're much closer than anybody else. >> we've got -- we're only 100 miles from the marcellus and utica shales. we have a pipeline from the region dedicated to the facility already. we have 14 1/2 billion cubic foot of storage at the site. we have a terminal that can handle super tankers. we need a liquefier and a couple more permits that we're working on but hope to have in the first half of next year. but the big one for us was the export permit from the department of energy, which we got last month. >> how many more people are working at dominion right now than before the approval? >> we have -- the construction process, once it gets started, is going to employ thousands and thousands of people for four years. >> do people -- >> three years. >> do people in washington, d.c. understand that when you do a project like this, even though it does involve fossil fuels it does put people to work?

>> i think they do. the department of energy has been very supportive of lng exporting. this administration has generally been very supportive. they're going through a deliberate process. i think they want to make sure it's done right and cross their "ts" and dot their "is." this facility is in southeastern maryland in the local congressional delegation there, steny hoyer is the congressman there. i think they understand and the governor and others understand there's a lot of jobs created by a project like this. >> the second i want to ask you about is why mlp? because, you know, i like your set-up. i think it's easy to understand, but i know you can do an mlp. what is the advantage of doing an mlp for the parent? >> the real advantage for us, what we're talking about doing is an mlp that would include primarily two assets when it's up and running, cove point and a joint venture interest we have in a gathering and processing

partnership in ohio called blue racer. that's what we're looking at. we'll have to file an s1, do all the things by the book next year. it ought to be neutral or accretive to dominion because of the cash flows that come out of it. i know you understand how they work. but dominion should come out quite well with it once we start. >> do you target what the payout will be from the beginning, what the yield might be versus dominion's? >> we will, but i can't talk about that until we file the s1. >> okay. there's a guy who has been negative and candidly wrong at bank of america and merrill, he said the reason why you're doing this is because you're mitigating the adverse impacts of a rising interest rate environment. that's a major reason. was that really the motivator here? >> it wasn't considered at all, actually. we were trying to figure out our job at dominion, our management team's job was to figure out how to maximize value for our

shareholders, taking the assets we have and figuring out the way to get the most bang for our investors' dollars. that's our job. that's why we decided to explore that and explore an mlp. >> two constituencies that people have been upset. you seem to have solved the environmental side. you've got the environmental side with you. how about the chemical companies that feel it's unfair you're sending natural gas overseas? >> i think we -- there's, i think most of them are looking for there to be a balanced approach, send some overseas but make sure you don't send too much. it drives up the price of gas. i think the studies that have been done on it show that at almost any level of exports, you will not drive up the price of gas. it's got a self-correcting mechanism in it. the gas won't be exported if it gets too expensive. >> wow. terrific. well, you know what, tom, i saw when the stock popped and, boy, you're a growth utility with a great dividend and a tremendous commitment because i know your insiders are buying all the time. thank you so much for coming on.

tom farrell, chairman, president and ceo of dominion resources. great seeing you again. >> thanks, jim. >> you see why this has been my favorite utility for a long time. it's got growth, imagination, and a good dividend. stay with cramer. [ horn honks ] [ passenger ] airport, please. what airline? united. [ indian accent ] which airline, sir? [ passenger ] united. whoa taxi! [ british accent ] what airline, then? [ passenger ] united. all right. [ spanish ] what airline? [ passenger ] united. ♪ [ mandarin ] which airline? [ passenger ] united. [ arabic ] which airline? [ passenger ] united. [ italian ] where are we going? [ passenger ] united.

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we are now getting ambiguity left and right about what will really happen october 17th when we hit the debt ceiling.

will the government default on our bonds immediately? will we miss interest payments? will our credit ratings be downgraded? or will it be somewhat like business as usual because the government will still have some money on hand to pay the interest as well as the maturities of bonds that come through. given we had 17 government shutdowns and gotten through them without catastrophe, it's easy to believe this will be no different. the ones in '95 and '96 were catalysts to send the stock market higher not lower. but we keep hearing this debt ceiling thing is different. yesterday, erskine bowles scared a lot of us out of our wits when he said nothing is done about the debt ceiling by october 17th, it could be catastrophic for the country. we should be concerned it's not business as usual. however, warren buffett said this morning right here on "squawk box" that it won't be the end of the world and we can go beyond the 17th without problems, we just can't go for a whole year. i think he was being a little

hyperbolic about a year. the deadline is artifice and there's plenty of money kicking around to allow the government to pay the interest on the debt and any bonds that come due. he made a lot of us feel a heck of a lot better. and given that he's a modern day jpmorgan, it doesn't seem like our confidence is misplaced, maybe buffett knows more than anyone. buffett's comments were welcome because they explained how we can have this continuing spectacular rally in bonds, treasuries, as opposed to a selloff like you'd expect as we careen toward the so-called drop dead date. shouldn't bonds be getting crushed here as foreigners sell and people are retreating to something less risky? oh how the mighty have fallen. it's true. the longer we go after october 17th without raising the debt ceiling, the more likely that risk-free designation for treasuries will vanish and the full faith and credit provision will be rendered meaningless. still, though, buffett defined the cooler heads prevail thesis for the moment.

it was very refreshing and reassuring. but soon after buffett made his comments, jack lew came right out swinging, making it very clear that catastrophe is still on the table come october 18th. he made it seem more dire than ever. so i was scared again. what's the truth? that's the issue. we don't know what the truth is which is why during the last debt ceiling standoff in 2011 former president bill clinton said that president obama should invoke the 14th amendment of the constitution, without hesitation, he said, to raise the ceiling and force the courts to stop me. back then the president said his lawyers thought this argument wouldn't win. and the clause that emboldens clinton is subject to a lot of interpretation. seems like a winner if you read the phrase out of context. but the validity of the public debt including debts incurred for payments of pensions and bounties for services and suppressing insurrection of rebellion shall not be questioned. if you strip out the notion of insurrection of rebellion thing,

and i think you do have a good constitutional case. clinton wasn't saying the president would win on the merits, he was daring the courts and trying to find a way to help pay these bills. it's not outrageous to argue as people said it was on jim cramer on twitter all day. who's right? if you're the president, you need to force the hand of republicans. but is the president miscalculating? there are people who want to stop the president. and they want to close the budget deficit so badly that they will contest the legality of going above the debt ceiling. is there any difference between that and pleading the 14th amendment as a way to pay the bills? i don't think so. i fall back on the full faith and credit of warren buffett. i think we'll go through the 17th and i bet the stock market might go down into that day. but i think we'll live to play again and panic would simply not be an option because of this thing, certainly not, which is now looking more and more like just another political gambit, one that while certainly jarring simply can't be described as catastrophic until the bonds are actually in default.

and that's just not going to be the case come october 18th. stick with cramer. check it out...

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who will get to them first? don't miss it. twitter files, one thing you need to know from me, i'm not going to bless this deal. we have no idea when it's coming, what price, what market cap. let's do the work before we make a decision to get too excited. there's always a bull market somewhere, i promise to try to find it for you here on "mad money." i'm jim cramer. i will see you tomorrow. they were the heady, get-rich-quick days of the dot-com boom. >> promising internet riches was the way to get into somebody's wallet. >> narrator: among the companies that raises millions -- an online-video start-up with a famous pitchman who exudes trust. >> i'm sure you've heard of it. it's called the "internet." >> narrator: but the website is a sham. its only purpose is bilking investors of millions, and when the feds come knocking, one of the men who's allegedly running the scheme heads to sea. but first, street criminals turn to white-collar crime. >> this is the first time that i had seen people who graduated