more "fast" and "mad money" with jim cramer starts rights now. . my in addition 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 kramer. welcome to "mad money." welcome to cramerica. other people want to make friends, i'm trying to make you money. my job, entertain, educate, teach. call me, 1-800. -cnbc. or tweet me@jim cramer. when this market gives you a cans, do you take it? that's what i think to myself any team we have a mini swoop or a pullback in a certain sector

as we did earlier today. only the dow inched off, s&p slid .20%. nasdaq advanced.04%. take this morning, i'm walking out of the new york stock exchange after "squawkon the street," going in at the exact same time is the co-manager of my charitable trust. she sees me and said what do you think of the decline in aerospace here? i said, it makes no sense to me. we know business is trick. she couldn't think of any reason for the weakness either. i said, maybe it's the failed sale of b.e. aerospace. they make seating and galleys. not that long ago, the company decided to explore strategic value. we know there has been tremendous takeover lately. when i read that b.e. is going to break itself up rather than sell itself, i figured that maybe someone's using this news

to make the case the aerospace cycle has slowed down. b.e. was down 5% when we saw each other. it did reflect poorly on the airline business. at least as of that moment. she said, how about buying united technologies for the trust, which is down for the sector. i said, great idea. give them a book of business, which includes residential construction, heatinging ventilation, air-conditioning known as hvac. that is finally turned around. steph opined to me h.d. supply, a very good barometer of construction reported this morning and told us business steadily improved and architectural billing, remember, united technologies makes elevators besides air conditioners has stayed strong. coin cut the reserve ratio last night. so what do we do? we took it altogether.

and we brought some united technologies for the charitable trust. why does this exercise matter? why am i going through the nitty-gritty of why you pull the trigger? because i think that kind of discussion, frankly, unfortunately, is pretty rare these days. now, we like to explain our moves in real time the subscribers, we laid out this logic pretty much as i described before we pull the trigger. typically, i see the opposite happening in this market. people want to boy united technologies or any other stock when it's hot, not when it's not. they don't want to use the price break to scoop some up. they usually believe any pull back is just the beginning of some roar ren discuss sell-off. sell, sell, sell! >> they will look like idiots for buying into this initial weakness. now, i'll admit, it's certainly

a possibility. the rational for united technologies may notplay play out. maybe we catch a downdprad tomorrow, sell, sell, sell, by some firm. wab it was weak. sadly, that's been known to happen. whatever let's say the whole men felt since 2009 can be summed up in a couple words. every decline is a selling opportunity except the vicious ones, which are panic opportunities people simply don't believe a discount is the. a discount they see in the supermarket, buy one, get one. in the mall, they'd take it. but not when it comes to these expensive pieces of merchandise i absolutely late this thinking. if you think a thesis is intact for a stock, you should be a buyer, not a seller. there are some going out of fax. that could be different.

we know, for example, this software is a service fame got simply too high, too hot. they were crushed by a deluge of ipos posing and these companies were all valued relevant for the each other, not the overall market and whenever that's the case, there is always the possibility of a real hammer. they're in the vacuum, air cams out of the vacuum, however, it's a mistake to extrapolate the software as a service base to the rest of the market. when you are dealing with high stock companies that aren't expensive relative to the average stock and the s&p on an earnings per share basis, not some dock a maim my -- cocamamy measurement. it's generally a buying opportunity and i think if you really like the stock, you should take it. i use the same lodgeic we applied to united technologies, pretty much every day on this show. i look for price breaks and good

companies and run toward them. not away from them. of course, you don't boy all at once. look, i love to scoop up new sects for the trucks and better level, i do not fear lower levels. i like sales, have cash on the side lines. that's the lesson. now, it might not go down from here. maybe the trust doesn't get a chance for i bog lower. so be it. got some in. >> that said, not all discounts are created equally. sometimes they can be agonizing, for example for the trust, we started buying general motors too early. i thought the worst was over. however, we leave some room in case the decline can be prolonged. when gm came down to $39, i told everyone it wasn't last to buy. ied a been waiting because i figured the terrible incidence were lastly fully discounted by a lower stock price. more important, it had become a yield after 3.5%.

let me tell you i say every time i saw cnbc's phil lebeau on air talking about gm i cringed. i knew the papers wouldn't stop hammering the company. of course the lawsuits are ugly, no doubt about i. that said, unless you believed these lawsuits were going to be like the asbestos suits or the oil spill that slashed bp's dividend, neither of which i think are good comparison, them that was your chance to buy gm. it rallied 10%. maybe that cans doesn't come around again. of course, you can't always nail the bottom. i like rite aid very much. so when it delivered its earnings last week, i said to keep buying it. the stock still hasn't settled down. >> that hasn't bothered me. rite aid is a long-term story, yet, judging by my twitter feed, many of you are furious. you need to ask yourselves something. you need to ask yourself if you are in the stock for a quick pop, you are not going to get that. for bigger long haul, right?

a long haul, long term, which is why we recommended the stock at 13. i like it for the latter. here's two words you never want to hear. stay patient. some of the decarolinas are horrendous but viempblt i stayed faithful to facebook because while many internet stocks had become super expensive, facebook is not that pricey, based on actual earnings per share. when earnings estimates for the out years, let's say 2016, facebook, for example, is very different from athena health, whose ceo we spoke to last night. remember when you are valuateing gross store, you have to go out further than this year. athena sells 17 times 2016 earnings estimates, even after its huge decline. facebook, on the other hand, sells for roughly 25 times 2016 numbers. given that facebook halls had far superior growth to athena, along with a host of all the

other internet ecommerce and software and service plays, i wanted to boy facebook on weakness for the charitable trust and i did. others said, listen, there's got to be something wrong, jim. to me the only thing wrong was the stock price, that's what was wrong and it rallied 4 is.6%. it doesn't mean nothing will go wrong down the lean. when you break in a high quality stock that no longer is expensive, because it's come down, you should do some buying. let me give you the bottom line, yes, sometimes a pullback has been a hashinger of worst things to come. but the vast majority of decline since 2009 had been the exact opposite, remember that. often the discounts this market gives you are wrong and one off. the market overreacts, especially in this area dominated by futures, high frequency trading and ets. the market gives you a chance. and you need to understand that sometimes, sometimes that chance

is, indeed, worth taking. let's go to christian in new york. >> jim, i got a position in wendy's, it was going up nicely. it took a nose dive. i wonder if this is the chance i need to hang on or get to out? >> i saw it was downgraded. a lot of people feel it lost momentum. i like to think if it doubles quickly, it has to spend some time churning before it moves ahead yet again. >> that is the case with yen wendys. my wendys looks darn good by the way. i think as people remodel wendy's they go. let's go to ray in florida. >> caller: i'm heavy into the new york teams. a vend the reason i'm so heavy here i'm a retired 18-wheeled truck driver for 35 years. and i retired about 15 years ago and i have been through lot of the new york times and i want to

know what you think of it. >> i like the new york times in full disclosure. a very close friend of mine, i think jill did a fabulous job. i think the franchise is intact. it's a good company. i think the stock can go to 18. by the way, why do i pick 18? we recommended it around nine and said it can double. carp spe di em, sometimes discounts aren't right. >> that, my friend, may be a chance that just maybe is worth your taking. on "mad money" tonight, a company that selects information from hundreds of businesses world wide, can their data deliver dollars for you? then don draper may have anti-ing deal. i have a advertising price that makes it look like small potatos. plus, are you in good hands with allstate? stay with kramer.

oh my god! look. you need to see this. show 'em the curve. ♪ do you know what this means? the greater the curvature, the bigger the difference. [sci-fi tractor beam sound] ...sucked me right in... it's beautiful. gotta admit one thing... ...can't beat the view. ♪ introducing the world's first curved ultra high definition television from samsung.

could save you fifteen percent or more on car insurance. mmmhmmm...everybody knows that. well, did you know that old macdonald was a really bad speller? your word is...cow. cow. cow. c...o...w... ...e...i...e...i...o. [buzzer] dangnabbit. geico. fifteen minutes could save you...well, you know.

let me tell you about a stock, a stock quietly moving higher for months. nobody talks about this one. and it now sits a few cents away from its 52-week high. i'm talking about allstate. all. it's a property and casualty company has a smaller life insurance business, sells retirement investment products. i use them. they're the ones that use president david palmer in their ads. aka dennis hayes. i go through the acquisitions why companies may be worth a heck of a lot more than we have been paying for them. bailsed on the prices that inquirers, not portfolio buyers, real buyers, i did you a

disservice. protective life bought for a 34% prem dwrum. that tells me the whole insurance based not the whole play, i'm talking about the whole group. maybe it needs to be revalued upwards, including allstate. so tonight, we're going off the charts on this one, i love lying stuff because it's so clear that, technician, founder and senior strategist explosive options dot .net. they only recommend stocks that look good from a technic alper specttive and a quantitative perspective and fundament u fundamental perspective. lang thinks allstate's chart, pulpitude saying you are in good hands with allstate's stock. everyone is tired of asking, it's just a bone spur. all right. let move past it. anyway, what exactly is so great about allstate?

why is the insure ear giving you a 10% return? it's not done take a look at allstate another daily cart. will you? oh, picasso. this picture is about a thousand words, it's about two words, staleing power. ever since the les in february allstate has been slowly, surely, cloiming to higher levels. in fact, this is a textbook bullish chart. that's what i leak about it this is what you are looking for allstate has been making higher high, lower lows. >> that is a classic seen you are looking at the chart of a stock that halls much more upside in front of it. it's not just that allstate is making techbook bullish moves here. lang points out the volume is indicating big institutions could be buying this one in a major way. we say a lie detector when it comes to the chart, high volume

means the move is telling the truth:you see volume spikes, the stock spikeing. a low ride means it could be misleading n. allstate's case is, we see the boy is specked up when the day is strong. that again, techbook of what big money is probably doing. it's telling you what big money is doing. then there is the william's percentage r oscillator. that's a tools developed by commodities trader larry williams. measured by the securities overbought or oversold. in the case of allstate, the stock has been an overbought territory since early may which ordinarily you might think would be a yellow flag telling you shares have come up too far too fast. could be do you for a pullback. here's the thing, allstate has pretty much stayed overbought ever since, when a stock gets overbought and stays there, we switch directions about it. lavpg calls it embedded. that's a word that said, this is a good sign it's lasted so long.

it's a sign a stock can roar higher it probably won't pull back. in other words, when the stock stays overbought, gets embedded, for a month like allstate, it's positive. last but not least. lang likes that allstate has been one of the best insurers, we are including met life prudential and lincoln, showing terrific relative strength to the entire group. now. let's take a step back and look at allstate's weekly chart. this picture puts things in perspective. here we see a stock basically making a chairman mal-style long march higher, for more than two years. another chart text b.c. for you. >> in fact effect allstate has more than doubled since early 2012. you caught a fabulous buying opportunity and pulled back to its 50-week moving average.

i love. that i love that time frame. but more important, look at the relative strength index at the top of the chart here. this is an important momentum indicator. lang points out something crucial here. allstate has climbed up to levels we haven't seen since may of 2013. wow, since the early 2013, get this, the last time it rose this high the stock caught an enormous rally, basically running from 40 to 50. you can see it just took off. now, what we know is that the rsi is, once again, at the same lofty levels. that tells larpg all state could be prepared to rock it higher. just leak 18 months ago. in other words, it's not done. it can turn up. that's not all. there is more. the moving average convergence divergence or mack d-line, they use it to change the stock

changes trajectory. back if early march, the macd-d as the condesending call it name what was known as a bullish crossover. that's when the black line crosses above the red. again for the cart watcher community out there this is a totally textbook single. it may say buy, buy, buy. the truth is the mack-d indicator right after bullish crossovers leak allstate had months ago. they often have tremendous staying power. there is a beautiful bullish crossover right there. that's just a gorgeous one. very rair rare that you get that. put it altogether, langley's says allstate may show pretty much every single sign a technician would want to see. allstate is a very low run company, it's bunting up a low interest rate voirmt not favorable to the insurance. they benefit from higher rates. they take your premiums and invest them in bonds. the good news is it seems like

rates may finally have stock going lower. they now seem to be making tear way back up again, which is what you'd expect when the u.s. economy is improving and inflation rises. even with low rates, allstate has been able to combat the weakness by raising your premium. remember, there is that protective takeover from last week, which caused a low valuation t. group has little sponsors, nobody cares about these. i care about making money you know a low growth rate. here's the bottom line t. charts as interpreted by bob lang indicate that allstate is a thing of beauty. a stock with some of the strongest charts out there right now. i agree, allstate is absolutely worth owning. personally, i'd like to wait for a pullback. judging on what we've seen here, i don't think we will get one. after the brake, i'll take e try to make you even more money.

.

we have been talking a lot about that pun that i'm sick of hearing, urge to merge. the fact that right now we are seeing a rising tide of consolidation in a whole range of industries. all sorts of companies seem to realize as much as the stockmarket may have run. the stocks and competitors are worth a heck of a lot more to them than they are to the pension fun, to the public fund, mutual fund, you know. i planned all this out. i planned out how all the merger in activity means we have to do some new revaluation evaluations. we haven't won the war for taking over targets in industries where the deals are coming hot and heavy if the fundamental also are good. i promise you, i would redouble my efforts to find new names. but tonight i want to take a different tact. i want to talk about a failed deal i'm referring to the merger between omni com and publicist.

it would have created the largest advertising agency in the world. it was in the works since last summer. it fell apart two months ago. they couldn't come up with terms acceptable to each other. why is this important? i think the failure of omnicom publicist is probably the single best thing that could have happened for -- interpublic group. ipg. the 8.3 billion company, for those of you who watch "mad men" interpublic group is the eric zorn him always trying to buy sterling cooper on the show. they have a host of other brands, including low deutsche, mullen and many others. with the collapse of the merger, i think it's takeover target number one. >> buy, buy, buy! >> think about it. omnicom are roughly the same

saz, 18 billion and 17 billion respectively. both companies wanted to bulk up their scale in an industry getting increasingly competitive. banks take the data collection made possible by the internet and companies you see that do internet commerce. now omnicom publicists blew up. you have not one, but two advertising agencies i think are desperate to make an acquisition. in this viernlgs i would be surprised if one of them doesn't try to buy interpublic group have lal louia! >> why? because interpublic is a cash cow. and with that $8.3 billion market cap. it's slowly digestible for a omnicom or a publicist. you know i never recommend a stock solely on the basis of takeovers. we only buy the stocks of companies with strong or improving fundamental also.

ipg may look like a terrific takeover target. believe me, the business is deteriorating. then the stock could end up going much lower. who wants to buy a deteriorateing company? i never would have brought it up as a takeover play if i didn't like precisely what we are seeing with the fundamental also and what are we seeing? first of all, it needs to be pointed out, michael roth the chairman and ceo took over in 2005. he's executed a phenomenal turn around you pay not remember this, they had a huge number of acquisitions over the previous decade. when roth came in, he streamlined the company, selling off 51 different businesses during his first three years. mostly money losing foreign affiliates. roth has been in charge then years. he's turned it into a real atm machine of an advertising business. it's not just ipg's good leadership. right now we are spending on advertising and marketing is on the rise, rising and tides

within all votes. here's the thing, within the advertising world, it's hard to be a smaller independent player. it's much easier to be a global giantments. the whole industry is doing well here. including interpublic group. when ipg reported the latest quarter at the end of april, they promoted a 6.6% greater revenue growth. management said they would meet or exceed their four year organic growth and market forecast. i pg did well in the united states, up 6.5%. latin america, 18.3%. europe saw an increase. i think this european term will be big, big positive going forward. ipg has been winning major accounts, strictly in heck ake and the auto industry and when it represents general motors, which i believe, let's say, needs to spend pretty heavily on advertiseing, after some of the bad news, plus interpublic has

been aggressivantive about trimming -- aggressive about trimming the fat. they boosted business by 27%. that's a bullish signal him yields up to 1.9%. ipg is selling 16.5 times next year's estimates. i think it can easily get a 20% premium in a takeover scenario. if anything, that is probably conservative for knowing what dyeson did with the hillshire brands. a counter publicist might be wanting to spend more. ceo michael roth's efforts, the earnings per share increased by 20%, meaningful leverage. given ipg is expected to any a buck 20. i think the takeover or the stock takes the long way and moves higher as the earnings rise. so let me give you the bottom

line. now the merger between omni com and publicist has fallen apart. i have to believe one of the companies micks a bid for interpublic group an considering the fundamentals here, i think ipg is absolutely worth buying all by it's lonesome. jim in florida. jim. >> hey, mr. kramer, how are you? >> couldn't be better. how about you, partner? >> i'm doing fine. i'm holding yahoo. we all know about alibaba. what do you think about yahoo teaming up with clyde mason? don't you think that would be a big quest with an ad in pay per view? >> i want yahoo to buy open table, grub hundred and yelp and put it together in the most sophisticated app known to man. i believe in marissa meyer. i think she's doing a good job. the rest of yahoo is not going to hurt you. stay long.

robert in my home state of new jersey. robert. >> caller: hey, jim b-b-b-boo-yah. >> what's going on? >>. >> caller: two things, first, let me thank you for your great book. i love it. and i'm sure everybody loves it. >> thank you, nice comments on twitter today. thank you. >> caller: in stock, it's still buy, old? >> yelp, yeah. here's the problem with yelp. it's what i call a wild trader. it's a fractious horse. long term i think it's great. >> that means you got to stick wit. it sell, it's very expensive. but if you look at when they could make it profitable and they could if they stop one and two, it's immensely profitable at the moment they say they want it ob. they are throwing it all towards growth. when one door closes, another opens. omnicom public sils may not have

worked out. even if it doesn't get taken over, it's worth bike on its own. is there is more mad money ahead, including an oil and gas deal that meeks me think the stocks for american drillers, the ones with the prospects could be headed much higher. >> that list is coming up. why don't you stick with kramer neighborhood, just ahead, with a proprietary database pulled from more than 237 million companies globally, what can dun & bradstreet tell us about the world economy? ♪ ♪fame, makes a man take things over♪ ♪fame, lets him loose, hard to swallow♪ ♪fame, puts you there where things are hollow♪

the evolution of luxury continues. the next generation 2015 escalade. ♪fame

can an old dog learn new tricks? i'm talk you can dun & bradstreet t. world's leading source of commercial information they have been around 173 years, 90% of the fortune 500 clients. companies sign long-term contracts for dun & bradstreet commercial data and analysis. the trouble with the company is you are operating in a pretty mature industry at this point. while your business is dealing information. the fact that we are in a digital age represents a challenge. it's much easier to copy trade

data. which is historically what they've relied on better than anyone. they brought in native ceo to put the business on a sustainable long-term growth bet. i thisty at first the expectations got out of hand then to the veshs tumble they reported in the beginning of february. it became apparent it wouldn't happen overnight. hence the stock fell $10 in a single session. thins then, it is back to where it was before it reported in february. the most recent quarter, solid. dun & bradstreet brought back 58% of the share accounts since 2007, which is a pretty remarkable buy back, which shows no signs of letting up. can a new ceo modern ooisize this company? the president and ceo of dun & bradstreet, let's get a sense of how it is doing. welcome to "mad money." >> how are you? >> all right, philadelphia

native. thank you so much for coming. my dad lives around the block from you when my father was growing up as a sales person always relied on dunn an brood street to be outselling a customer, boxes and backs antsz come right back and find out how they were doing in his dun & bradstreet book. >> that doesn't work anymore, does it? >> it doesn't the way that way. you certainly have the same indispensable content, which is data and analytics and insights. today it's about making our data and insights available in more modern ways interest he'd have a handle? >> exactly. >> now, how do you twishs i distinguish yourself? i go into hoovers, a site owned by you. >> my friends. >> they have a competitor and experian. i go into experian's website, they claim they've got the same data that you have. >> look. we have 30,000 sources of da that we have turning data. increasingly more social and signal da that. we have a database that's the largest commercial database in

the world. 235 million businesses globally. we mapped the landscape. it's updated 5 million times a day. so we have a substantial advantage over our competitors. it's also ability making that data available in modern ways. >> okay. now, right on your web page, a great thing, 260 businesses time for bankruptcy every day. if you put the trade data and you are looking at the social media data, is that because you have to be suspicious? because a guy who gives a, takes an order down and the company goes bankrupt in the interim, is a guy that really hurt his business. >> exactly. you see, customers today, they want all the foundational data we have given them. the stuff your dad looked at. >> yeah. >> they increasingly want modern data sets. they want social as well. for us, it's about structured and unstructured data, unstructured meaning social and signal data, making that available. it's not just about risks. a lot of our customers are using this data for sales and marking purposes.

>> right. >> fully a third of our business is in sales and marketing solutions, they're using this data to get information about the customers they should be pursuing. >> you have partnership, sales force, these are important, i imagine, do your people, can they download a particular app if they work for you? and then dial into? >> so with our line strategy, best companies like sales force, et cetera, we are making our data natively. if you are a sales force xherks our data is available to make sure the data you put in is clean and optimized and accurate. >> that itself a the key. not just a great software application in the cloud. it's about having the best data. >> i see you have a trick, i went back at one time and looked economists. i'm wondering why we don't use your data leak i do with paychecks. because they seem, you know small business better than anyone i think in the country. >> yes. >> how are we doing? >> your chief economist is terrific, i'd love to make him

available for your she. >> okay. >> it's correct am, palm has a wealth of information. we have this gigantic commercial database. we can see trends, we don't just have data. we have analytics, tools that help see business trends and understand where the risks are and the opportunities are. so our economists lock at our data and try to interpret sources and friends er trends and we communicate that to our customers. >> what empiric am look can you probably have? >> the largest commercial business in the world. >> i'm excited. i don't want to get ahead, in all your things, you said, listen, it's a multithing you are trying to do. i think you will be multiple year successful. that's the president and ceo of dunn and brad street. this is a company i think is going to do a lot of things over multiple years that are very positive. don't move, "lightning round" is next. . tomorrow, kij off the trading day with "squawk in the

street." live from post nine at the nyse. >> fresh step is birch bees when it's almost good, conscious updates colgate, maybe colgate will make a love. >> oh lord.

. before we get to lightning round, i'd like to bring your attention to someone who is wise way beyond his years and has incredibly good taste. no, i'm not talking about myself. check out this tweet, he tweeted us a picture of his little boy watching the show. it's never too early to learn to invest, maybe i suggest potty training. keep these pictures coming. tweet them e them @jim cramer or message "mad money" on facebook and of course tune in this friday for mad money, it's a family affair and now it is time for the lightening round! it's rapid fire calls and i tell you whether to buy, buy, boy, or sell, sell, sell. when you hear this sound, then the light nink round is over.

are you ready, ski daddy? top of the lightning round, ba bob in california. bob. >> caller: b-b-b-boo-yah professor kramer. >> i love it when they give me tenure in this show. how can i help you, bob? >> caller: in california the service xachlt let's talk. >> i like monsanto, genetically modifying things, i'm going all in. hey, why don't we go to devonn in missouri. caller b-b-b boo-yah. >> i like it. you showed me character. what do you have? >> caller: i just started watching the show a couple months ago, mine is concho. it's permian, it's a buy, buy, buy. i got to tell you something. in many ways it may be the best

involved. it can be swallowed. the conch man is $15 million in market cap. jersey, billy. >> caller: boo-yah, jimmy, i got a question for you. >> sure, what do you got? >> gme gamestop. >> i kind of like gamestop. ly go all the way to best buy because of that dividend increase and a faltering competitor. buy, buy, buy, buy, buy, buy. >> how about patrick in arizona. >> caller: mr. kramer. >> yes, patrick. >> i spoke to you several years ago. i'm finally back to even. do i keep it or swap it out for mar on the oil? >> which one is it? >> caller: marathon oil or chesapeake? >> sell marathon for chesapeake. i think chesapeake is going higher. don't get me wrong. ethink marathon gets there first. i need to go to jim in idaho. jim. >> yes, hello. jim, long-time listener of yours

and i've always admired your bullish attitude. >> thank you. >> what i'm calmling ab in 1990 i bought stock in general electric. the last few years i have been disillusioned. >> right. in 2009 they cut the dividend way down. >> right. >> they had restored part of it. it seems to me like they're more interested if restoreing larger and larger pay to their executives. >> well, i don't know, jim, look, i think you are right, ge has been disappointing, my charitable trust owns it. it has not done as well as i had liked. i wished they boosted the dividend most recently, my colleague on the street, both of us were discussing gene needs to break out here. i don't think that's true. i think their pay standards are like a lot of ceo ads pay standards. i do want some more growth i understand how you feel. let's go to al in georgia.

al. >> caller:. >> boo-yah. >> hey, i have been looking at 34 d systems for quite some time. what can you tell me? >> melissa lee in a previous show did a fabulous interview. i keep coming through saying the same thing. it is strategist i like. ssys. i don't care for ddd because i like staticist. >> that, ladies and gentlemen, is the conclusion of the lightning round. ♪ 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.

the most aggressive man in the oil business is back. i think he might be bigger than ever. that's the only conclusion that can be reefd by the co-founder of chesapeake energy announced $34.45 billion for his new company american energy part first yesterday, including 63,000 acres in the texas permian basis. aubrey is the man that built it into a powerhouse and tried to reinvent it on the fly with a series of moves that didn't, quite frankly, pan out. he was replaced by a board of directors many thought he had gotten too many things away from chesapeake or too swash buckler, whatever. but i know aubrey as a visioner,

a 56ary who above all others understood how we could have so much natural gas in this country it could be a game changer. plus, he always knew where the good fields were, the first to recognize the utica shale could be tremendous energy. people have been throwing money at him ever since, the debt was roughly $140 b. he's right back into the utica and marsalas shale. it seemed plentiful. it's the permian that's got my attention here, aubrey is buying acreage per flowing barrel, according to reports about the transaction. remember permian is a 1400-year-old field given sec life because of few american horizontal technology. >> that said, this is nevertheless remarkable sum to pay. the one that's most linked to the permian, again pioneer

natural resources the ceo claims his sits on the top of the second biggest oil field on earth. after the largest one in saudi arabia i admit i found it laughable, given middle east is away from saudi arabia and how the permian basis has been played out over time, however, when i see this kind of activity, by aubrey mcclennan, who love him or hate him. i know a lot of you hate him. she universally known as a shrewd accumulator of properties, i have if know how much it might be worth. i have to talk about it because they have apraech and terrific acreage, too. i think the deal revalues all these stocks higher, why would he be paying so much money for fields that are literally producing so much oil they can't get it all to morkt and when they do, there is a considerable

discount given the glut of supply? simple. i talked to that rbn has been talking about it, though. there are a series of pipelines opened up in the next 18 months that could end the glut and give all the permian players a much higher price for their oil than they are currently fetching. i think the stocks will keep going higher. with so many problems and the world's large oil-producing companies, iraq, libya with their shaky governments, fingeria with its unrest and brazil with its empty coiffeurss, the permian basin seems like a pretty good darn place to do business. welcome back, aubrey, we look forward to you coming back on the show in your new incarnation. stick with kramer.

. >> it's absolutely true this looks like a quarter that gets them back on track. remember i always thought it was one of the great growth companies that stumbled not

unlike tractor supply and lumber liquidators. i think it's very difficult. i don't want to trade them. like i said, there is always a bull mark somewhere. bull mark somewhere. i promise to find it >> in this episode of "secret lives of the super rich"... >> welcome to nirvana. >> oh...my...god. >> new york super broker dolly lenz is mega-home hunting for herself. >> wow, look at this waterfall here. >> this is extraordinary. >> don't mistake this for a party. >> this is the hunt for the next year's kentucky derby winner. [ horse neighs ] >> a really hot horse can go all the way into the millions of dollars, but the even crazier part... >> we have no idea if they can run. we have got no idea if they care to run. >> high-society types usually don't allow camera crews in their homes, but sale johnson is selling. and she does something else that totally shocked me. >> i'm very used to selling and storing and collecting semen.