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tv   Mad Money  CNBC  October 16, 2013 6:00pm-7:01pm EDT

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>> special dip coming. stay in that name. >> tup is the next 100 $roll. >> vegas, still room to go higher. >> conoco phillips has been a my mission is simple, to make you money. i'm here to level the playing field for all investors. there is 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. trying to save you money. call me at 1-800-743-cnbc. just think of all the good washington has been obscuring. think of all the greatness so many of our executives deliver. something that shines through when politics steps out of the way and business gets to do its
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job! which is what happened today. with the dow roaring 206 points s&p volted 103 points. i know plenty of team think all that matters is washington -- i think that all that mat is getting washington out of the picture! which may be exactly what is happening now that compromises is in the air. extending borrowing until february of next year and stop the government shutdown with agreement to fund operations million january 15. if we dissect this one day, one day in the life of the market, you can see what the stock world looks like when washington is not wrecking the economy. the good news -- i was up all might. i will share that with you. it started at 1:00 a.m. when santafe announced results for a drug i have been calling you,
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anti-cholesterol from merck. this compound that reduces bad cholesterol that can't take the current statin drugs could easily mean $3 billion in sales. a blockbuster that will be fast tracked because of the results. that's why regn jumped 17 points in one session. few hours later got european numbers. best in two years. august was the worst month. i don't think they realized how bad this news is for ford. charitable trust. and general motors. both of which able to report much better because of this turn. chinese sales! then once the sun rose in america we saw the earnings from bank of america and they were spectacular. what was the last time i said that? in the same sent sense as bank of america? i know this company cost as lot of people a lot of money. all right. but interest didn't today. it shows year oar year and
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quarter over quarter growth. putting the same loans and liquidation behind it. companies showed thank you small medium sized loans being made in the country are coming back. growing. i can see bank of america return this greatest once again headed back to 20 bucks. big dividend on the horizon and consistent growth. let's call it 18 months. then pepsi company reports better than excellent numbers in snacks. thank you. diverse model allowed the company to beat carbonated soda sales. they did stall. it made ton of sense the stock rocketed $1.67. we haven't seen a lot of growth in pharma. monster dividend 14 to 22 cents. we are seeing if benefits to split into two companies. avid puts on would bucks and change. there has been worry about the oil parts group. it has been lagging. advanced auto parts decided to take matters into its own hand. spending $2 billion. carquest. as seen over and over again
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nothing like management that goes out and buy as company that has been trying to bash his head in. we have seen it in the rental space and now in the auto parts group. acquire no wonder. advanced auto parts rallies $13.60. finished at $9 .16. remember, aap is the company doing the buying. typically spent that from the target. or consider how the research got things moving today. will you? not one but would brokerage houses recommended pioneer natural resources. pxd is the stock i will be telling you about. huge peeled. this may the second largest oil field on earth. it soars 12 bucks. the other big independent oils, the kings of eagle. tell you, they all jumped. gaining $2.32. and a buck 90 respectively. speaking of oil and gas, raised
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price target for cheniere energy. this stock has only yard rupeled from first time recommended. how about the gigantic fedex announced yesterday is a harbinger of the restructuring? causing stock to leap to three points. yesterday's four-point increase. it said without it make changes to ensure that didn't happen again. victory lap to ceo and squawk box fred smith for doing this. fred is an economist by nature but really an operator. solar city. i ain't going to play solar city. i'm playing price is 3.4 million shares. and the stock rallies to $52. why? management dramatically raised the numbers solar panels it will install next year. that's a testament to the brilliance. i compare him to henry ford. and he is a serial genius.
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he's also the man behind tesla. secondary making petroleum. we got a terrific ppo for pharmaceuticals i told to you watch out for and rye to get a piece of lee weeks ago. it came to 20. finished at 37. how else will you make that money so quickly? you think -- your boss, get a raise like that? twitter announced shocks and gave a peek at how fast the office is growing. that lit a fire under linkedin which took off again. this is all one day. one day where the stocks were hire creating tremendous wealth for shareholders. one day where companies could raise money, put people to work. one day when banks reported numbers that told the economy is expanding and credit is falling. duplicated to oil companies. bill women and ebay. they did it when stocks were plummeting after the bell. still i think they are outliers
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for the rest of the day. that was a dark number. what's so painful to she none of this matters to the people in washington. everything i talked about means nothing to them. probably like need -- english to wall street dictionary. they spend their time attacking each other. they are happy to fight over things like medical device tax. do you think they know abbott labs makes medical devices and doing fabulously? doesn't need that. shut off the spigot that just opened which is what a key fault would do. all the work bank of america has done since 2008 to get its house back in order which would be meaningless, don't they know that? it is not a republican or democratic thing to say. get it going from bank of america has been hit and hit hard by washington. not by my business work. by washington. all of the confidence it takes to sum it up to buy a new house, washington. when we were starting to see good numbers, like they have been deliberately trying to sabotage the economy. how about the fact washington can't see the process of tremendous domestic oil and gas?
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they tell haven't figured out we can get the portion of the gigantic military budget to protect the middle east. all we are doing over there is ensuring china can import all the oil it needs. we are protecting china. that's a great mission. nor had they realized some companies will allow the u.s. government for major part of the sales. hence why companies like cisco and networking equipment are getting bled to death by the government shutdown. thank good must it is coming to an end. celebrate business in this country. something that used to be able to count on from the republicans. remember when the xwop was the party that helped business in washington instead of scaring it to death? today we saw what this market can do when washington gets its act together and gets off the backs of its people. you know what i say? i say hallelujah! bruce in arizona. bruce. >> caller: hello, jim. >> bruce! >> caller: yes. i'm curious to see how obama care will impact large
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corporations like fedex and 40-hour a week workweek and read where ups cut business for dependents on nonunion workers. >> well, i will tell you. these -- i -- here is my -- on obama care. it is big for companies because they can figure it out. can i go to mike in new jersey? mike? >> caller: boo-yah! >> hump day, mike. >> caller: hta. steady. actually the -- acquired property 99% occupied. it looks good to me. balance sheet looks real clean. >> i totally agree with you. naysayers are completely wrong. i think we will show them. okay. i'm taking one more. sam in illinois. sam. >> caller: jim. boo-yah! >> boo-yah, chief. what's up? >> caller: i would like to get your thoughts on bail corp, the
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rise over the last year. >> you know what, jewelry business has been strong. let me do a take out on zale. that stock is way too high for me. jim in practice. jim. >> caller: hey. jim. triple boo-yah. >> yeah. i love boca raton. i wish i was at that hotel i love so much. what's up? >> caller: i wish you were my portfolio manager. pioneer natural. my question is wynn resorts. what are their prospects? >> 200 bucks. steve wynn is best in show. i like adelson, too. steve, i know you watch the show. you are always welcome on the show just as you always welcomed me to your casino. today we saw what happens when washington gets out of the way. let's do a little celebration. coming up -- the right key?
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don't -- why not look a little closer to home? regional key corp nicely other thannings. is it time to make a deposit? find out. later, buffett talks. >> if a cop follows you for 500 miles you are going get a ticket. >> orator of omaha stepped into the ring. does buffett's blessing make the stock a buy? cramer is making the final call. slick stock. the u.s. is finding more black gold than ever before. oil core labs is on for more. will it push the stock higher or has this well already been tapped? don't miss cramer's earnings exclusive with the ceo. all coming up on "mad money." [ man ] on december 17, 1903,
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the wright brothers became the first in flight. [ goodall ] i think the most amazing thing is how like us these chimpanzees are. [ laughing ] [ woman ] can you hear me? and you hear your voice? oh, it's exciting! [ man ] touchdown confirmed. we're safe on mars. [ cheers and applause ]
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with compromise in the air in washington maybe we can get back to talking about earnings. who would have guessed the banks would actually be reporting great number this earning season? i'm not -- talking about the big guys, not just talking about bank of america which could deliver a good report. no, i'm talking about the kind of banks i tend to favor above all others, the regionals. this is key. reporting terrific numbers. fell 2% on the news. 50 cents away from its 52-week high. the cleveland ohio based key is one of my favorite banks out there. over a thousand branch essay ross 24 states in the midwest, northeast and pacific northwest.
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like it so much we have it for the travel trust. this morning, key deliver ad five cent earnings bead off of a 20 cent basis driven by lower expenses and tax rate and net interest margin but the bank makes a difference between the low rate they pay few for deposits and dlimed by basis points. -- climbed by two basis points. net charge loss for bad loans at their lowest levels since the beginning of 2007. a lot of excess capital and returning aggressive to shareholders. bought back 16 million shares. 2%. 30% gains last time we spoke with the ceo in january. let's check in with beth. the chairman and president and ceo of key corp. learn where her sbabank is head. welcome back. >> thank you. >> congratulations on what i
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thought was the best net interest margin quarter of all the banks i have seen. how are you able to make so much money off of the deposits when everyone else is shrinking so fast? >> you are right. we had a very strong net interest margin quarter. we did not see the contraction predicted or has been seen in many other banks. it is relay combination of managing our liquidity levels, reducing the costs of interest-bearing h, cramer. >> yeah. >> i can't to give you a big boo-yah today. >> i will take one. i need one. i'm upset here. what's up? >> caller: i want to talk to you about wells fargo. last quarter they laid off a bunch of employees. their sales were down. profits did pretty well. i'm curious if i should hold on to it or should i go ahead -- >> let me tell you what stephanie and i are doing. we believe in -- we can't believe how well the bank did. when those rates start going up, that company is going to make a
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fortune. it john is the best banker in america. >> caller: hi. how are you? about really good. how about you? >> caller: good. calling about citigroup. i noticed with the government shutdown the stock has gone down like a lot of the financials and then they had some, you know, some that has gone up and down. it hasn't moved the way i thought it would. what's your opinion of that? >> yeah. i was not impressed with that quarter. i think that it is going to be another couple of quarters. that just -- didn't deliver, frankly. and -- i'm disappointed. i thought that citi had more going. perhaps next quarter but that was not a good quarter. let's go to tom in new jersey. tom? >> caller: jimmy from the city. boo-yah. >> boo-yah, tom. >> caller: thank you for taking my call. jim, thank you for talking to investors and not at them. my question, blackstone. i have a large position in it
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and love it. is there something that i'm missing? something i should be worried about? >> no. i think that this was just turned out to be a very undervalued story the whole way. i think there is a lot more movement ahead. this is a good buy. you should hold on to it. any pullback, it is a buy. they are doing everything right. there aren't many of us who are happy with what has been going on with d.c. these days for many reasons. jpmorgan has been getting roasted for a litany of things. some of which it did but much of which it didn't do. no justice, no peace. no good deed goes unpunished. >> mad about "mad money"? immerse yourself into cramer's world while you watch the show with zeebox, on your phone, tab let or web, get sneak peeks. go behind the scenes and join the conversation. download the free app today. ♪
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are you ready? lightning round. start with joy in florida. joy. >> caller: yes. >> joy, how are you? >> caller: i'm fine. how are you? >> couldn't be better. thank you. go ahead. >> caller: i would like to ask you, my mother left me gpc stock, general wine parts company. i was wondering if i should hold on to it. >> your mother had a great investing sense. that's a conservative company with a terrific yield that i always liked. i want you to hold on to it. let's go to jennifer in ohio. jennifer. >> caller: yes, jim. >> go ahead, jen. >> caller: jim, can you tell me about sysco -- >> i think sysco is overdidn't and going over -- with stephanie. we have been buying cisco at 20 for the trust. why? because we think it is down because of government orders and that government orders are going to come back once this compromise is reached. i don't know want to leave cisco here at the 22 level. louise in north carolina. louise. >> caller: boo-yah, jim, from
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the tar heel state. how are you doing? >> real good. how about you? >> caller: fantastic. i know you have been pushing the arab state a lot. i appreciate that. so i want to know with the same side. i want to you tell me what you think of allegheny technology. >> take some losses and get on out of bad portfolio and make changes is all good. doable. stick with it. let's go to greg in nevada. greg. >> caller: greetings and saltations from sin city. >> go ahead. >> caller: my stock is beycery. >> they came on and had that new product but remember, they did die down. i think the stock is in the penalty box until they report the next quarter. i don't think it is expensive. nate in delaware. nate. >> caller: yes.
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jim. >> yeah. >> caller: i think i have a diamond in the rough. it is called synta. >> it is a diamond in the rough. i have to do more work. ted graham. bio tech expert and will come back with more on that situation. >> caller: jim. boo-yah. >> boo-yah. >> caller: we spoke would years ag ago objects -- farther suit cal, opko at $3. >> had a stock is now at $welfare. we had him on full mihm times. how great is he? how bank sabl he? well done. how bankable is he? that's the lightning round. ♪ [ bell ringing, applause ]
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shutdown mess i kept come back to intend oil producers as my pave rat groups. you have to remember all these gigantic oil were made possible by advances in tech knowledge. since then the oil and gas has gotten a lot more tech heavy. when it comes to tech stocks in the oil my view is you need to look no further than core labs. they analyze the rock 'n' fluids in oil reservoirs in order to help the clients produce more oil on a day-to-day basis as well as helping them get royal more oil it of the ground out of the entire life of the reservoir. the reservoir description business tells oil and business companies how to drill in order to get the most value out of their assets. core's other big division enhancement does the analysis of oil companies of what they need before they can drill a well to perfection including picking up the best way to approach and design the process of hydraulic
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fracturing, drilling technique unlocked all of the oil and shale i'm constantly talking about. core has given you a 35% gain since april and company reported a record breaking quarter. magnificent quarter. off $1.34 basis. higher than expected revenues. 11% year over year. management raised it high for the next quarter and return on investment here is extraordinary. let's talk to david, chairman and president of core labs. hear more about the quarter and what comes next. welcome back to "mad money." >> jim, thanks having me back on "mad money." our tents visit. you are exactly right. very good quarter. record levels of eps. net income. revenue. actually our fourth great all-time record quarter. >> your finest in part because you are really in the sweet spot. everyone is turning to you and your company to find out how much oil there really is. we had a company last week,
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scott sheffield. we have been recommending it. jumped 20 points in the last ten days. i need to know, he mentioned that he bought older fields from other companies that didn't know there was anything in will. is this the type of thing that core labs does? take -- find oil where -- people didn't think there was recoverable oil? >> yes. jim, exactly right. you look at pioneer. scott sheffield and tim were doing a great -- are doing a great job there. one of core laboratories most sophisticated technological clients. we are helping them in the basin and also in the eagleford. now, when you look at applied technology as you mentioned we are going to help them produce more oil and gas every day but more importantly, we are going to apply the technology so we cover more amounts of oil from that reservoir over the life of the reservoir. >> now, i understand that this -- this may be it. you did come on once and last time because i was telling you i thought it would be big. you said there might be something else big or even
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bigger. is this possibly the second largest oil field in the world? >> that is correct, jim. it is only behind -- only behind the guar field in saudi arabia which had about 160 billion barrels much recoverable oil. if we look at the trends together those can produce over 50 billion barrels of recoverable oil. it is a giant oil field. second largest in the world. >> you basically -- it is your technology that -- that made us figure out that. right? you could not figure that out by drilling a hole. >> that's exactly right, jim. as you mentioned we had -- analyzed the reservoir and more importantly, the reservoir fluids and see how the fluids can transmit through the rocks. and in doing this, trying to put -- technology to bear on hydraulic fracturing and over the last year, we had been recommending to our clients that they have more hydraulic stages in their horizontal wells and have these stages closer together and pump more sand to
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frack the wells more intensely. you get more production every day and over the life. you end up with a situation like our friends at pioneer are doing. they are an ex- -- in excellent shape and excellent position. >> you had something in our reservoir situation. we have been there and love it. then you mentioned -- wolfberry, the paradox basin. now when i look that up on the map that's in -- in -- our northern arizona. we haven't looked at a that at all. is will something there that's big? >> actually right now, jim, we're valuating a couple of plays there that are shale play was potential oil finds. so more on that over the next couple of quarters to come. >> wow. okay. now i want people to understand when i say technology, you have got this flow profile. three years in development. i would say i would hire you when i use that. what do i get out of it? >> yes, jim. when you look at the horizontal
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tells you have as many as 35 individual stages that are going to produce oil and gas. what our profiler can do is tell you exactly how each stage is performing. so if, for instance, in a well that's underperforming, we go back in and tell you stages 10, 15, 17 are not up to par and we can go back and remediate those. it identifies the stages that are underperforming and moreover, tells us how much oil is coming out of all the other stages as well. so in your next well, you can plan it even better. >> i have to tell you, you are the reason you do not get enough credit because there are a lot of fields that were given up on that turned out they had a lot more oil. the only way we would have known it is through core labs. thank you so much. a ragreat quarter. fabulous job. >> this stock is not done. you heard what i have been talking about in a nutshell. core labs, engineering, science,
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that's why this stock is going to 200. tomorrow kick off the trading day with "squawk on the street." live from the nysc. >> i'm not in expert in clothes. this thing cost $2.95. the ocean gets warmer. the peruvian anchovy harvest suffers. it raises the price of fishmeal, cattle feed and beef.
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default, deadlock, destruction. we heard the word "deal" mentioned. your head is spinning like mine, join the club. market rallied today on optimism. we are so very far from being out woods in the economy. lot of bad disappointing number.
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it is not even funny. you immediate to focus on the most important deed of all, diversification. let's get to it. start protecting your money. sean, you are up. >> caller: hey, big about buckeye boo-yah, professor james cramer. undefeated heavyweight champion of helping the little guy make some money in this crazy market. >> well, thank you very much. i follow every ohio team. so thank you. >> caller: great. we are doing pretty well this year. >> yes. >> caller: in my portfolio, my top five right now are disney, dis. boeing, ba. genworth, bristol mars and noble energy. nbl. >> wow. this is a great portfolio. truly great portfolio. we have disney. entertainment company i think the world of. boeing, i'm -- can you believe
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that stock all-time high today? so deserving. bristol-myers, yes. another fantastic, fantastic period coming in. as it gets rerated as a bio tech company. noble. my charitable trust. they have the best positioning. genworth. those stocks aren't done going higher. chris in new york. >> caller: hey. how are you doing? i wanted to see what you think about my portfolio. >> okay. >> caller: yge. sirius xm radio. regi. >> all right. let me take it from there. now -- i want to say, this has way too much speculation in it. okay. i mean, sirius is speck. reg, renewable energy, yingli.
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they are all speculations. i like this because i believe that part of the economy is coming back, dry ships. hunting ton is not as good as key. i recognize it is very good. sirius is making a good comeback. let's call that entertainment bank, ship. renewable and yingli are the same. get rid of them. i want to put in a bristol-myers. you need a little solid drug company with a yield. then let's put in boeing. we just blessed boeing. lit go higher. i know those are higher priced stocks but i don't like all the speculation in this -- that portfolio. let's go to lucio in ohio. >> caller: hi, jim. i'm from the hawkeye state, iowa. >> yeah. fantastic. we are looking at -- we went there for the university and we had a great time. what's up? >> caller: i would like to thank you and your team for showing me how the make money. my stocks are sale force, american tower, facebook,
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huntington bank, and vale. >> vale, it is one of the largest. minera minerals. making a huge comeback. facebook and sales force are too much alike. man. oh, boy. i'm going tray on justify those two. i can't. huntington bank is a back, mineral. bank, tower. what do you do? eeny, meeny, miney, moe. keep facebook. sales force. no. do you mind if i just say that this one okay? these are so hot. those are both great tech companies. two cloud companies. let it go for now. i have such conviction in them. by next week i will have a decision.
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♪ [ male announcer ] eeny, meeny, miny, go. ♪ ♪ more adventures await in the new seven-passenger lexus gx. lease the 2014 gx 460 for $499 a month for 27 months. see your lexus dealer.
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for $49♪ ♪month for 27 months. so you can get out of your element. so you can explore a new frontier and a different discipline. get two times the points on travel and dining at restaurants from chase sapphire preferred. so you can be inspired by great food once again. chase sapphire preferred. so you can. when the clouds part over washington, look what you see. you see many stocks going
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higher. way to focus on something that was said. they said this basin, he confirmed it. second largest oil field in the world. paradox. doing work on that. charitable trust. big position on that one. that will be the next one. always more.somewhere. i promise to try to find it right here on "mad money." i'm jim cramer and i will see you tomorrow. we have a deal. the senate leaders made a deal earlier today to end the government shutdown and raise the debt ceiling, at least for a few more months. house and senate republicans have vowed not to block it. the impasse is over. but remember, folks, whether it's debt or spending, we may have to go through this entire exercise all over again this winter. we have all the angles covered on this story this evening. first up ace reporter robert costa has the latest on the budget votes and what the next step is for congressional
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republicans. the mark soared on the news a

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