exploration. what did you sea before? >> cramer has the ceo. >> looks like the stock has had a nice trajectory. hold off 24 for a couple times. i think it trades north of 33. >> i'm melissa. back here again at 5:00 for more "fast." "mad money" starts right now. 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, just trying to make you a little money. my job is not just to entertain you but to educate you, call me at 1-800-743-cnbc. tweet me @jimcramer. we have met the enemy, and the enemy is ourselves. or at least our fellow shareholders. that's what played havoc with the market. the dow slipped 26 points, s&p

declined .49%. and the nasdaq nose diving an incredible 1.18%. >> the house of pain. >> before i can explain why that is, i have to note that once again, i don't really particularly care for the action in this market. . i don't like that the initial public offerings are coming fast and furious this week like they did last week. i don't like how any words of caution are being met with anger. i've been on the defensive for days on end about my negative view of froth. this weekend, my twitter feed @jimcramer became a free fire zone from people who blame me for the reversals. and stocks as different as plug power, fuel cell energy, the 3d printing names. it's all cramer's fault. believe me, that's some seriously misplaced hate. i want every stock to go higher because i want you to make money. however, i do have a twofold job here, to help you make money and also to help you -- lose less money when things turn bad. that's why i emphasize being diversified.

something that could be an anchor to leeward when areas are running wild. but nice safety blanket when things turn ugly. and when it comes to helping you limit your losses, part of my mission is to let you know what i am actually concerned about. what i worry about. keep in mind that not much has worried me at all during this market's historic run, for those who have watched more for a long time. i've been on for nine years. i've been consistently bull market since about the time when i wrote "getting back to even" in 2009. that's a long time ago. but i recognize certain qualities of the market that can be a threat to the bull and we have a ton right now. earnings related events. and earnings are profits are the most important thing there is. one of the key underpinnings to my belief that the world may be returning to long-term growth mode has a sense that china and europe are getting better. however, we all pretty much know now that we lost china about six months ago. it keeps getting worse and

worse. remember when the game plan i told you to look for the industrial number? well, guess what -- it was worse than expected. hey, now with president obama over in europe, we have the possibility of some actual real antirussia sanctions that will cut into european growth. that wasn't in the cards for me three weeks ago, but it sure is now. especially when earnings seasons beckons. the russian standoff may have nothing to do with the priced to earnings ratio of bristol-myers. but russia's a big market for many of the industrial companies i follow. and even the consumer products companies. unless tensions cool, the numbers for the companies will come down, and that, indeed, does matter. then there's what's ailing this market right now. and that is eurco shareholders, or renters, because i'm not seeing a lot of owners staying in their stocks once they start falling. instead, i see them fearful that other sellers will beat them to the punch. >> sell, sell, sell! >> regardless of whether the companies are doing well or not.

one of the most important ideas in all of my books, columns, shows, you name it, is at times the action in stocks has nothing to do with the underlying business. i have two chapters in this book about that. the actual companies can get totally lost in the shuffle. what's dumped, what's kept. most investors, though, particularly the commentators don't want to deal with the divergence, unless it's the movie. they want to regard everything as moving in sync and making sense at all times, being rational. if there's a big decline in one of the cloud stocks or biotech or data management, it means there's something wrong with the company, not with the stock market. now this, unfortunately, is false. even as the stock's been pounded relentlessly after a terrific quarter. now down ten bucks from its top. i tried to defend gilead.

and we shouldn't be concerned with the congressional meddling over how the drug is priced because the insurance companies are probably thrilled to pay it versus not treating the disease unsuccessfully. i have to admit it bounced today. but at one point, it was down hideously. right now, this market's about renters fleeing stocks. you know what i've decided. let me pick a neutral stock, okay? one that reported maybe one of the best quarters of 2014. and that's in a very hot area but doesn't seem to attract a lot of attention and therefore a lot of haters, to me, @jimcramer on twitter. i'm talking about splunk, the company that mines all the web applications. web application software, company software collects and analyzes data that's generated by websites. no one doubts when you speak with people at tech conferences that splunk is among the best in the business. and it's also in the sweetest of sweet spots, big data analytics. and growing by leaps and bounds

by all, even the critics would tell you how fabulous that is. it's no wonder they have incredible revenue growth, 52%. terrific licensing growth, 47%, remember, that ensures that the numbers in the future. that made it among the fastest grower of any company i followed. of course it's not yet profitable. but, you can take profitability as a given if the company wanted to show it. right now, though, the company feels the opportunities are so great that it has indeed adopted what i call an amazon style model of taking share in what could be $160 billion total addressable market among the biggest and fastest growing of all tech applications. the stock is up 12% for the year. again, not bad, right? given that growth, that's something you want to preserve. think about that word, preserve. okay. what's splunk doing today with the nasdaq down more than a percent? well, it's down 8.8%, shedding $7.51.

why? several reasons. but i have to tell you, nothing having to do with the fundamentals. first, there's been relentless insider selling. i mean, relentless. i've got to tell you. you're going to see it. and i know that's been scaring the heck out of people. scared the heck out of me. second, the gains for the year and for the stock are still gigantic. remember, this stock was in the 50s five months ago and it's still at $77.27 after this. that says, hey, it's not too late to sell, you can still sell. third, splunk's chart has grown from a pattern of higher lows and higher highs to a pattern that looks more like everest like so many others. even after this decline, the chart suggests it has much further to fall. consider us base camp 3 out of 4 but this time going down. so many of your fellow renters just want to get out before they give up more of their gains because they don't care about

valuation anymore. it's every man for himself or herself. they only care about sales momentum and the momentum of the stock. the problem analysts face now is they can't come up with a multiple to anything that makes splunk cheap, even after the decline versus where it was after it hit $106 a month ago before falling to 77 and change. it never traded at a multiple earnings anyway. it can't be valued in any way that might cause shareholders to stop in. the analysts could only talk about how big the opportunity is. but when the stock like splunk is in freefall, no buyback, no dividend, no earnings. there's nothing to break it until the sellers are exhausted and the momentum for the stock -- well, that just disappeared. they've lost their underpinnings for the momentum investors, or renters, i should say. now, just for comparison's sake, let me put splunk head to head, side to side to another company

with excellent data analytics, some say superior to splunk. and that company is ibm. here's the stock that sells ten times earnings, earnings, not sales. 2% yield, voracious buyback and it's flat for 2014. you're not going to miss -- need to lock in anything. how about this? a year ago ibm was at 213, now it's at 188, wow, people have losses, don't have to worry about the gains being locked in. it has warren buffett as its largest shareholder. huh, well, i mean, is there anybody else you possibly want to be in like that? you think he's a momentum trader? and he likes it because of the buyback, because of the bountiful operating cash flow. that's not going away. it's still good. ibm's revenue growth is new or negative. if you get a turn, you might get a 1% or 2% revenue growth here. and that might cause ibm growth to crush the earnings estimates. it's holding up better than any other stock. it was up nicely the whole day

today. what does that tell you? the contrast is so simple, people. ibm shareholder base is happy and confident. the splunk shareholder base, it is on the run. i think splunk may not be a good buy until you see the shareholder base stabilize. and you can't tell when that will be because you don't know when the sellers are done. ibm, it's stabilized here. i think their prospects are great but the shareholders are an abomination right now. not so with the buffett-led ibm backers. and it's all about your fellow shareholders. the renters versus the owners. with the former being restive and scared and the latter sitting comfortably and patient. if you own something like splunk, the shareholders, your co-shareholders are your enemy if you own an ibm, they're your best friend. can i go to paul in texas, please? paul? >> caller: boo-yah, cramer.

>> boo-yah, paul. >> caller: i want to talk to you about symc. the stock dropped 13% on friday. it was very close to 52-week low. what can you tell me at this point, jim? >> i said, look, it's got limited upside. here's why, even that they absolutely represent kind of an inexpensive stock versus some of the others. it's really very desk top oriented. new guy comes in, going to try to shuffle the chairs until something good happens. i don't want you in symantec. went north of 21, i'd sell it. bob in new york? bob? >> caller: how you doing, jimmy? >> i'm doing okay, bob. i don't know, i had a thai chicken salad today. it's not setting well, frankly. >> caller: i'm sorry to hear that. >> i am, too, because it's really overshadowing how great i'm doing in the espn celebrity tournament. go ahead. >> caller: anyways, i wanted to first of all thank you for

getting me out, i got out at 7.50. >> and you don't hate me. >> caller: no, i love you. you saved me a lot of money. and secondly, i purchased jc penney and i've been watching very closely in the mall and store is on their a-game. i wanted to get your input. >> well, i saw mike oman last week. he's a very nice man, too. i think you're on to something. i think they can go to 10 or 11 without a problem. i hated it all the way down, then when it got to 11, thought it was okay, 12, that was wrong. but i think it's okay because the consumer's coming back when the weather gets better. what is threatening the bull here? there are head winds everywhere. but really what it is, people just not wanting to give up those beautiful gains. once the stocks go through where they were and are in the negative for the last year, i think you're going to see a

selling. not until then do you want to make a move. "mad money" will be right back. coming up, digging deeper. domestic shale player northern oil and gas works with some of the biggest names in our nation's best mines. but the stock hasn't shared in the spoils. has the well run dry? or is it ready to gush? and later, hate hotels? forget small spaces and sky high prices. airbnb has changed travel for millions. but, should you book a reservation when it hits the street? or is it too hot to handle? 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.

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when you have a tremendous

multi-year theme like the domestic oil and gas renaissance, a story that's so powerful and so long lasting that i wrote about it in "get rich carefully." often an expectation that a rising tide will lift all ships. you might think all companies that have exposure to the booming u.s. oil plays, i'm talking about the bakken, permian basin, they should see their stocks climb higher over time. but in reality, that's not the way it works. even the greatest theme can have laggards. i want you to consider northern oil and gas, n.o.g., a pure play on the area that includes the bakken shale we like so much. while most names have been on fire over the last three years, continental resources up 72% over that period, northern oil and gas stock has been nearly half. what's the problem here? can it be fixed? northern oil and gas has an unusual business model. when i look through the filings, it's very interesting. should be compelling. the company controls 187,000 acres across north dakota and montana, they've participated in

over 2,000 wells since 2006. but they don't do any of the drilling themselves. basically, they put up capital, take a minority interest in wells drilled by other companies. like eog, like continental resources. if n.o.g. pays for 10% of the well, they get 10% of the production. and the company has had leasehold interest in a fifth of the wells permitted and drilled north dakota since 2006. the idea here is that northern oil and gas is sort of like an etf that gives you exposure to oil wells all over the basin. but in practice, the stock has dramatically lagged the bakken operators that do the drilling. when the company last reported a month ago, it missed estimates by 5 cents off a 27-cent basis. and now there are concerns that the balance sheet might be overstretched while the drilling of the n.o.g.'s exposed to seems to have gotten off to a slow start. is it a broken company with a business model less appealing than your typical exploration production play? or is this merely a broken stock that give you a chance for a powerful rally to catch up? let's dig in with mike reuger,

learn more about his company and where it's headed. welcome to "mad money." >> thanks for having me, jim. thanks. >> okay. candidly, because we've been up at the bakken, always looking for bargains there. we noticed your stock, noticed it's come down, but we noticed you have tremendous production growth, 145% compound annual since 2008. trying to figure out the disparity. is it that people just don't understand the model? >> yeah. i think the biggest misunderstanding, jim, is that they don't believe that northern has control over its drilling activity and its capex. and really, the opposite is true. as long as the bakken is being actively developed, northern's acreage is going to be actively developed. our acres are in the core of the play. we've seen a tremendous amount of the activity since 2006. we've been in -- like you said, 2,000 wells since the play kicked off in 2006, which is over 20% of all the wells in the play. and so, as long as activity in the bakken remains robust,

northern's activity's going to remain robust. the other issue -- the thought we don't have control over our drilling capex. well, in fact, northern as a non-operator doesn't share the same long-term rig contracts and pressure pumping contracts. so, we actually have the ability to be more nimble on our capex. and we can, based on commodity prices and returns increase or decrease our capex deployed. >> in other words, if the company planned to spend $430 million this year on capex and you don't have enough money, you can cut that back? >> yeah, absolutely, but we have plenty of liquidity to keep drilling. we had a $450 million base, deployed at the end of the year. and next week, we're expecting another borrowing base increase. we'll get up to 500 million. so we have plenty of liquidity. that's over $400 million in dry powder to keep drilling in the bakken. and this year, we expect about $100 million capex deficit relative to cash flow. we've got plenty of liquidity to

continue to drill. but what we're really going to do in 2014 is different than 2013 and the past is we're going to be more selective with the wells we participate in. we're going to high grade our capex and i believe our returns are going to continue to go up. >> is it possible that some of your wells weren't as good as the average well in the bakken? >> well, in 2011 and 2012, you saw the rigs move out to the fringes, to hold acreage, some of the operators out there on the edges. and they left the core of the play to go test new areas. and what we've seen in the last year is that the rigs have really come back into the core. and our infill drilling and down spacing is going to be driving our production growth and returns. the wells are getting better because the completion designs are getting better, the costs are going down, the areas that they're drilling currently are in the core. most of our drilling right now is in montreal county. some of the wells we're adding in 2011 and 2012 didn't have the same rates of return we think we're going to be seeing in

2014. >> now, you have a very big disparity between your net asset value and where the stock is trading. it know it's unconventional to think that an oil driller should buy its own stock back. how do you close the disparity here? >> well, i think what we've announced this morning, is we've acquired 5% of our stock back. what's unique about northern's current market cap or enterprise value, in fact, is actually below our pv-10. and we have a core acreage position in the bakken. it's unheard of that an oil company should trade below pv-10. if you take our debt adjusted pv-10 per share, it's $15.50 per share and we're trading $13.50 a share. so, and last year, we added $3.50 per share in pv-10. so for us to be trading below pv-10 is unheard of and that's the most frustrating part, jim. >> i totally understand. that's one of the reasons i wanted you on. i don't understand the disparity

and i want our viewers to figure it out. you've given us the present value, told us where you are, and bought back stock. let's take a look and see if this isn't one that shouldn't play catch-up. thanks for coming on the show. >> appreciate it. thank you. >> that's michael reger, the chairman and ceo of northern oil and gas. there's a terrific presentation, by the way, i got the march 2014 one step ahead of the drill. try to understand the story. don't take it from me, read the documents. stay with cramer. coming up -- hate hotels? forget small spaces and sky high prices, airbnb has changed travel for millions by connecting travelers to private homes from vacation rentals worldwide. should you book a reservation when it hits the street? or is it too hot to handle? gunderman group.

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last week, we find out that airbnb, the marketplace that lets people rent out their homes to strangers, everything from the entire house to the couch is being valued at more than $10 billion. according to the "new york times." ♪ hallelujah . >> the company's in talks to raise $400 million in capital at the $10 billion valuation, a huge jump from where it was when it raised capital a couple of

years ago. airbnb, a highly disruptive social traveling company is now worth more than a giant hotel chain like hyatt where the number one timeshare player out there wyndham worldwide, which we've liked forever. obviously, you can't invest in airbnb, it's not publicly traded. but i think the fact that investors are hungry for a piece of this fast-growing start-up is a very big deal. we've got a puzzle over it. and airbnb is the latest example. consider the $19 billion that facebook paid for whatsapp. first of all, i don't want to totally dismiss this as a case of investors paying through the nose for anything touching on the mobile and cloud theme. this is not, i repeat, not the dot com era come again. why? because airbnb is a real company with an incredibly compelling successful business model, one that draws in roughly 11 million guests in more than 34,000 cities. the stock may be too expensive, but there's no denying this

company has a real business. here's how it works. you get to list your home on their website and when someone else pays you to stay there, air bus takes a cut of this transaction. revolutionizing the lodging business. they're helping people rent, borrow or share spaces that ordinarily wouldn't be on the market. although, heaven help you if you live in one of those apartments in new york city and find out you're renting your couch out to strangers. even in my own little world, i know many people who have monetized their apartments this way, particularly younger people, that have -- they get the income to pay for their vacations by that monetization. it's a win/win for these people. and while it doesn't disclose its financial information, again, it's privately held. the numbers we do know, frankly, are incredible. we know there are 600,000 listings on the site. i mean, that's amazing. we know that on new year's eve, 2012, 141,000 people stayed somewhere they reserved on

airbnb. 141,000, that's about 50% more than you could fit in all of the rooms in the las vegas strip. the company reportedly raked in $150 million in sales back in 2012 and analysts believe airbnb can grow that figure to $1 billion in the near future. then its current $10 billion valuation might not be as insane as it seems. while airbnb has a lot of sizzle right now, it's true there are also some stake here. you can't participate in airbnb, at least not until the company decides to become public. and by then, who knows how expensive it will be. however, if it is getting $10 billion valuation right now, then using that valuation is a yardstick or reasonable exercise, there have been to be publicly traded ways to play the hype. obviously the main reason these big investors adore airbnb because it has a disruptive technology allowing them to take share left and right. but i think part of the

attraction may simply be because the travel and lodging space is looking very strong in this country and in the world. so, for more traditional lodging play if it's that good, i very much like starwood, hot for all of you home gamers. operates over 1,000 properties. starwood has embraced an asset light business model. meaning they understand the real expertise in running hotels and not owning realize, which is why they own just 25% of hotels they currently manage. plus, has terrific global growth. in faster growing emerging markets. now, how about if you like the online travel agent aspect of airbnb. in that case, yes, i'm going to circle back to a stock that's been crushed here, i think is wrong. i'm circling back to priceline. although, considering the rotation right now with money pouring out of consistent, fast-growing companies and

cyclical boom and bust names entirely in boom mode, i think you should take your time building a position by buying on weakness. but i am endorsing doing it. it's one of the momentum monsters that until recently was leading this market. and i've always said, when they get crushed, which is what's happening, you have to buy them. that's precisely why this stock got pole axed today falling nearly 41 points or 3.2% because the momentum's coming out. you have to take the other side of that trade in priceline. remember what i told you last week, priceline is not getting eviscerated because there's something wrong with the company. the latest quarter was downright fabulous thanks to the popular kayak smartphone app. the problem here is with the stock's shareholders. we're in rotation mode and that means the big boys are dumping fast, but consistent growers like priceline in favor of the cyclical stocks they think can deliver the best year-over-year growth for 2014. none of that takes anything from the strength of priceline's underlying business. it gives you a terrific chance

to buy a high-quality stock that could turn out to be relatively bargain basement prices. priceline selling for 19 times next year's earnings estimates, the s&p sells for 17 1/2, and this company has a 19.7% long-term growth rate. that makes the stock a relative steal. remember, relative's the word. especially how much private investors are willing to put a price for airbnb. it could go lower through rotation, it doesn't mean you wouldn't be smart to gradually pick up some. most of the companies are getting hammered here, part of that rotation, i mentioned. the two that come to mind most similar trip advisor and home away. again, these are names that could become very attractive as the rotation continues and they reduce the values. particularly this home away. now, trip advisor is the place to go for online travel reviews and home away is the largest

market for vacation rentals. virtually in the same kinds of business as airbnb. both stocks are getting slammed right now. but if they keep going lower, i would snag some home away. terrific growth and tremendous reservation management technology, a platform that's beloved by vacation rental owners, trust me on this one, i'm part owner of an inn in new jersey in addition to my brooklyn mexican restaurant. i know the power of these hospitality and travel sites, they simply rule the world. here's the bottom line, the eye-opening $10 billion plus valuation of the privately held airbnb should make you take a look at the stocks getting crushed here. the more technological ones like priceline, home away, they are being annihilated away from the consistently growing fast momentum stocks. i think today's pain could be some time in the future's opportunity. as these stocks get cheaper through no fault of their own and you can buy them into weakness as opposed to chasing them. on the other hand, if it makes

you long for traditional lodging play with a traditional valuation, there's always cramer fave starwood resorts. understand, this will spur interest and get people excited about the travel and leisure place again. so you probably need to be ready to snag some right into the unusual weakness. ron in california. ron? >> caller: jim, thanks for taking my call. long time listener, first-time caller. >> thank you. >> caller: my question is on genworth financial. on your recommendation, i picked it up nine months ago and had about a 55% return. i love the fundamentals on the stock. and the rumors on fannie mae and freddie mac, i don't know if i want to add to it or take some of the profits. >> you know, look, if you got it through me and you had a bigger gain, i'm going to take you to take profits. it's not as cheap as genworth. that said, the run is nosebleed.

you have to look for new investment ideas everywhere. sometimes these privately held companies that are about to get public, they give you some money-making signals. airbnb, okay, you've been reading about it, sky high valuation, but it says you should look at some of the smoking hot travel leisure plays out there right now. maybe priceline, trip advisor and home away. you know what, these are good companies, and as they get thrown away, maybe you do some -- >> buy, buy, buy! >> stay with cramer.

it is time -- it's time for the "lightning round" on cramer's "mad money." what is that about? rapid-fire calls, you say the name of the stock, i say whether to buy or sell. play until this sound and then the "lightning round" is over.

are you ready? it's time for the "lightning round" on cramer's "mad money." diane in north carolina, diane? >> caller: hey, jim, got into westport innovations knowing it was speculative. three different trades with an average out of 26. i'm getting a little nervous. what do you think? >> if they miss their quarter one more time, identify got to tell you, i may ban talking about the stock. it's been horrendous. and you know what, the company comes on, talks a good game. i'm tired of it. too many missed quarters. can i go to tim in california, tim? >> caller: hey, cramer, i wanted to follow up with you on stewart information services. >> don't care where you came from, just where it's going. that said, you know my rules, take the capital out you put in. let the rest run. play with the house's money. stacy in new jersey? stacy? >> boo-yah, jim. >> boo-yah, stacy. >> caller: i wanted to ask you about kandi.

>> people have been going crazy for this stock. we're polaris fans, i know that's $100 stock so people don't want it. if you like the group, buy polaris. matt? >> caller: boo-yah, jim. >> boo-yah, matt. how are you? >> caller: all right. and you? >> eagles, looks like they're going to sign sanchez. it's a tough day for me. >> caller: sorry about that. biotechs have been hit hard, mine have good pipelines, what's going on with isis? >> it is very good. they don't want biotech. we have to wait for gilead. now people are saying the charts are bad. i'm not going to tell you to stick a bid in until i see the selling done. how will we know the selling's done when the stock goes down big intraday and goes out much higher than when it started. that's the sign. trust me on that. justin in new jersey. justin? >> caller: jim, i want to thank you, i'm a rookie investor. my first year i gained over 50% because of you. i thank you so much.

>> thank you. >> caller: my question is sky works. >> it's held up really well. and that's one of the reasons why i'm getting nervous about it. so many other stocks have come down, i think skyworks is going to rest. i'm looking more at the pricelines that have gotten crushed than i am at the skyworks. i'm going andy in arkansas. andy? >> caller: hey, jim, what's your thoughts on boardwalk pipeline bwp? >> i don't know. he's unbelievable, guy that writes for the street for me. i don't want to touch bwp. they really missed. if i want to be on, i've got to be enterprise epd. and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> the "lightning round" is sponsored by td ameritrade. coming up -- promiseland? american energy star newfield exploration is surging in 2014 as it sheds its assets overseas. but will the renewed focus on

the red, white and blue produce more profit? or are the home fields getting too crowded? cramer's on the case? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. i don't have to leave my desk and get up and go to the post office anymore. [ male announcer ] with stamps.com you can print real u.s. postage for all your letters and packages. i have exactly the amount of postage i need,

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. you know i've stressed over and over again on this show the supply of oil here in america is growing by leaps and bounds. i love pointing the good ones out to you. take nfx. that's a $4 billion independent oil and gas. gets 40% from crude, 43% from natural gas, 17% from nat gas liquids. they've been selling off their international assets and using that money to fund drilling in four major domestic plays. the anadarko unit as well as the bakken shale and the eagle ford shale, a gigantic fine. for example, back in october, newfield sold malaysian holdings for $900 million, and in the process of selling chinese assets. by pouring that money back into the hot domestic plays expects to grow production by 31% this year. newfield reported a month ago and the numbers were, let's just say excellent. company expects their anadarko basin production to double from last year and they're forecasting 40% production in the bakken, 30% in the eagle

ford. the company has raised guidance while becoming a more efficient operator drilling wells more cheaply, increasing the reserves. i recommended the stock a year ago and it's given a 35% gain. let's check in with lee, the chairman and ceo of newfield exploration and find out more about his company's prospects. welcome to "mad money." >> thank you, jim. >> sir, we were on an oil rig two weeks ago in the gulf of mexico. and one of the executives there said, you know what, company like an exxon, they've got to go to malaysia, they've got to go to indonesia, china, to find really cheap oil. but we're going to take american oil and make money. you did the unthinkable, maybe even ten years ago. you sold malaysia. talk about the mindset that made it so malaysia wasn't as good as america. >> well, jim, for us the exit from international has been a strategic decision to refocus on what's an incredible story here in north america and the u.s. you know, first with natural gas and today with oil. and i think the opportunities we

see tell us there's an exciting time ahead. back to the future right here in the u.s., and i think the oil story and the ability to take the proceeds from international and pour it back into high return investments here in the u.s. is just too good to pass up. >> okay. let's talk about the back to the future. you are drilling in areas that i think people felt were peak. you're the first person i've had on that was saying the anadarko had a lot more oil left in it. >> well, jim, that's the neat thing. you know, 30 plus years ago, some of us that have been around that long were coming out of school into the industry, you know, the rocks that we're pursuing today were typically considered and/or seal. technology, the horizontal drilling, entrepreneurship and risk taking, i guess, the story of, you know, capitalism here in the u.s. have really given us this great gift of energy.

and i think it's the greatest energy gift for certain in our lifetimes and probably in the last 100 years. >> are you able to get all the oil that you have to market? and a lot of people are talking about this bottleneck that gives you a discount to the discount of west texas. how are you doing in terms of getting it to where it needs to be refined? >> well, i would tell you varies by area. can't say that we've had any specific bottleneck issues within our portfolio. we're focused in four key areas as you indicated. scoop and stack, the anadarko basin there in oklahoma. we've been able to move our product. clearly, you have to plan ahead, you've got to have gathering, transportation agreements in place, typically in each of these plays, you'll go through short-term bottlenecks. but the industry upstream, midstream, downstream tends to work through those. and it's good. one of the things we've got in our portfolio that we like, we call optionalty, we can shift capital and human resources between projects as things develop. you know, whether you're chasing the higher returns, if you had a bottleneck in one area, you can shift activity into another area

to take advantage of it and continue to execute on our plan. >> would you be plowing back the chinese money when you sell that right back into these properties again? >> yeah. china, we're looking to get resolution on china in 2014. china represents the last of our international portfolio. we expect to get that resolution in 2014 on the back end of that, we'll be 100% onshore north american focused. presently our product preference has been oil. it's been that way since 2009. we think it's the preferred commodity today and we've built a strong inventory of opportunities in our portfolio. and it's good to see that paying off. i think it's exciting, exciting for the industry, the nation, reshape, you know, the whole economic dynamic. and i think it's an exciting job creation vehicle, as well. for our young people, and i think it's a career that people can take a second look at today and i'm happy to see enrollments going up across the nation in science and geoscience

engineering disciplines we need to feed the industry. >> i was going to ask you about wasatch, but i've got to stop with what you said. which is, just tell us, people are watching. i know people last weekend i talked about it with. do they call newfield? what do you do? who do they call to get a job? there's not a lot of jobs where we are and i know they want your jobs. >> well, i would tell you, jim, the industry has a lot of outreach programs, or a lot of executives that i know that serve on advisory boards at universities. i think that's a step that a lot of universities are taking. i know a lot of the young people, young professionals are coming in, investing time in elementary schools and high schools to tell the story. clearly it's an education process. i think folks like you can help. it's an exciting, high-tech industry and its best days are ahead. and i think it can drive, you know, the economy in the u.s. over the course of the next 100 years. you care about your kids and grand kids, this is the place to be and it's a superhighway to

the future as far as i'm concerned. >> couldn't agree more, you've done a remarkable job. the chairman, president and ceo of newfield exploration. thanks so much. >> thanks, jim. >> okay, guys. had a very big move, but i don't think it's done. it's just a re-rating of a story that people weren't interested in that are now interested in. i like newfield exploration. stay with cramer.

sometimes you need to approach the market as a veterinarian. maybe a large animal vet. and speaking as someone who has a lot of experience with livestock, it's downright funny how uninformed so many of those commentators are when they opine about what could -- kill the bull. they talk about higher rates as the bull killer, and that's a possibility, but only when rates get so high that we -- laugh again here, at dividends. the fed should have no desire to take rates to destructive levels. as much as the negatively oriented people whine about it, there's no inflation in the system except for beef and guacamole. yes, inflation is pernicious and slaying some bulls. fortunately it is not an issue at this moment. a nasty decline, employment can certainly clobber the profits of companies. not always going to wreck a bull market. but if you look at one of the most seminal crashes of all

time, that was caused by not hard economic times, in fact the s&p 500 did relatively well during that selloff, but by insider selling. the same kind of insider selling that we will most likely get six months from now when all these newly minted ipos. it might not be necessarily terrible. we know there were a flood of secondaries like linkedin, zillow and yelp. plus, there are enough big capitalization companies buying back stock not selling it that we're not dealing with a flood of equity. nevertheless, the sheer number of cloud and biotech ipos right now makes me nervous. for one, there are many aggressive acquirers in the cloud space from ibm, s&p to oracle and salesforce.com. why didn't any of these big acquirers possibly snap up some of the companies going public? why didn't workday or corner stone buy the human capital software management company. why didn't linkedin or oracle buy global force, social

recognition software and platform? why didn't they do it? and why wouldn't salesforce.com want to complement some of the businesses. it's a robust platform for banking software. why not snare q2 holdings which does community bank software. sold as a service, of course, and growing at 47%. wouldn't that be what a software cloud based company be a terrific gateway addition? i think the public markets have gained such an appetite for these kind of stocks, revenue growth and no earnings, that the owners of the companies recognize a good thing when they have one and it's better than selling to these other companies. i have to figure these deals will be accidents waiting to happen when the follow on offerings occur as we saw recently with a horrendous secondary 19 points ago. there are too many months to go and many lockouts to expire. but this much supply can hurt even the established players. notice salesforce.com as well as

the newbies. i don't like it. it's negative, plain and simple. no two ways about it. too much supply can kill a bull. that's what happened in 2000. we've got to happen it doesn't happen again. stick with cramer. (announcer) scottrade knows our clients trade

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all right. i like to say there's always a bull market somewhere and i promise to try to find it just for you here on "mad money." i'm jim cramer, and i will see you tomorrow. you tomorrow! u.s. and europe stand together and vote to kick russia out of the g-8. this comes on the same day that the obama administration is approving more natural gas imports. and the missing flight 370 jetliner must have crashed in the indian ocean, no survivor. but the search has intensified over the last few hours. tonight,