tv Mad Money CNBC December 6, 2016 6:00pm-7:01pm EST
6:00 pm
>> >> ooh. >> guy. >> some belligerence what do you think? >> belligerence? >> me! i will -- thanks for watching. see you back here tomorrow at 5:00. in the meantime, 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 friend. i'm just trying to make you money. my job, not just to entertain, but also to educate. so call me at or tweet me @jimcramer. more cracks started to appear in
6:01 pm
the trump rally. don't get me wrong, i still think the president-elect has a very pro business agenda. it is just more proing soises than others and the list of others keeps going. consider the defense sector which seemed like no-brainer given that trump want to buy more fighter planes and warships. today, he though, i think the story got a little more complicated than that. first this infuriating headline. pentagon hid study revealing $125 billion in waste. we all know it is about impossible to reign in the defense budget, right? or maybe not. because later today donald trump tweeted, and i quote, beauing is building a brand-new 747 air force one for future presidents but costs are are out control. more than $4 billion. cancel order. boeing disputed that.
6:02 pm
they say they have a $1. 70 million contract to figure out how the president can play. you know what, that all misses the point. the real issue here is swags. what teddy roosevelt called the bully pulpit. just like what trump did when he crawled greg heys, ceo of united technologies, to convince him not to move the jobs to mexico. greg admitted there is no quid pro quo. but he is cognizant of his company, $6 billion in contracts that could be put at risk. how did he put it again? >> ways born at night but not last night i also know that about 10% of revenue comes from the u.s. government. and i know that a bet her regulatory environment, lower tax rate can eventually help utc over the long run. >> sew made a deal he couldn't refuse, right?
6:03 pm
now it seems to be boeing's turn. there is an overrun since we don't know where that $4 billion figure comes from. the next air force one is a worth of genius so of course it's expensive. until today, i figured the cost overruns the military procurement like death and taxes. now there is a chance that that could change. i can imagine trump thinking, i don have a plane, i know what it costs, this is beabsurd. getting on the president's bad side could be a problem for boeing. they have $18 billion in contracts. trump didn't say or do anything to suggest those contracts were threatened. but i'm pretty sure boeing got the message. maybe they will roll back the price of the plane or maybe this comes to nothing. either way a brand-new risk factor that you need to be aware
6:04 pm
of if you own the defense stocks. remember trump was elected to drain the swamp in washington. and the military industrial complex is about as swampy as it gets. people are warning us about the way too cozy relationship between the government and defense contractors since eisenhower's incredibly smart farewell address. maybe trump is taking his cue from ike. maybe he is just fed up. as he said he wants beauing to ma beau /* bowing boeing to make t of money but not this much money. there are tons of wide-bodied planes. i'm sure trump, who owns place himself, knows this. i don't expect him to take the order away since they are the only company to build a wide-body jet like this for air force one is airbus. that would be harassy. but trump might be sending a message. if you're feeding at the public trough you may have a pay a price that price is a bet her deal.
6:05 pm
want a plane or tank or jet engine. to me this says maybe we shouldn't pay as much for defense contractors stocks. enough tweets like this one and we might regret buying lockheed martin up 22%, general dynamics up 30, northrop grumman up 31%. even if i'm reading too much into this and this is really just maybe nothing about actual military spending but about boeing and chinese trading. it is clear, there is a developing. a risk to stocks we thought were risk-free. second note, there is still the upside of the trump agenda. companies heavily regulated by the government will get more after free pass under the administration if they provide jobs for the american people. banks provide jobs within their business and more important with the lending. donald trump knowes a thing or two about lending. he recognizes that excessive regulation crimped home building and construction. these companies will continue to do bet her as are their stocks even though a saw a tremendous
6:06 pm
number down wage in the last few weeks, down wage that have been wrong. using fossil fuel i think is an skesten shl threat. president trump will side with energy companies from the drillers to oil producers. he is on the other side of the dakota pipeline protesters and i'm sure he rebuked the officers that blocked it. no, i take that back. he would just fire them. put in his own people and reverse the decision and of course tweet about it. sure there will be a court case but next time the federal government is involved in a controversial pipeline approval, which way do you think that will go? finally i think the whole issue of trump sending tweets like this from the oval office means we should pay more after premium for classic stocks that don't need or want government intervention in order to thrive. stocks like netflix. sure they won't benefit as much as others with the economy but we may want it pay a premium from pure growth. in other words companies that don't need defense money or
6:07 pm
medicare money which could be the next place we see blistering tweets. i would be careful there. allergen warned us there could be more tweets from trump that could be more damaging and he used the word, vicious, than anything hillary would tweet. in case you're worried that trump behavior is unpresidential, you know what you got to do? brush up on your history. when president truman's daughter sang at a concert and got a scathing review from the washington post, truman wrote the critical letter and i quote, some day i hope to meet you. when that happens you'll need a new nose, a lot of beef steak for eyes and a supporter glow. end quote. andrew jackson killed a guy in an argument over a horse race. puts these it tweets in perspective, don't it? bottom line, it's a brew new world. he have to be careful ton pay too much for the manufacturers
6:08 pm
that rely on the federal teet. but maybe we should pay more for those that don't. aaron in virginia, aaron? >> caller: boo-yah, cramer. >> a stuttering boo-yah to start the show. >> caller: long time listener, first time caller. i have a request about iconic. >> okay. >> caller: i hold some shares in my roth ira, since the split from alcoa, iconic received its first year with airbus but just last week, george issued both with accelerating. is icon ache good investment for the long-term. also would the new trump administration and with peak auto, what effects do you think this will have on the stock? >> okay, i that i deutsche just didn't like alcoa double a. they recommended taking profit because alcoa has been an incredibly hot stock since the split into two. i agree with that analysis.
6:09 pm
remember iconic owns 18% of aa and can sell within 60 day he of the deal. buying arsonic, we tell people that this is one of the cheapest stocks out there. they have business with boeing and airbus. they have business with ford f 150. they like weight the stock is too cheap and i that i one day it could be taken over. all right, nancy in california. nancy? >> caller: hi, jim, this is nancy from california. i'm concerned about cvs stock dropping versus wallgreen's and possibly how the new health care could -- the tank in new health care could affect pharmacy retail stock. >> yeah, i don't know. i thought there was a good upgrade today. i think cvs represents great value here. it has fallen nonstop. mr. merlot, the ceo, he is good. i think he's got a good story to tell. this level seems right to me. thomas in california. thomas? tell tell yes.
6:10 pm
jim, an honor to speak to you. i worked at coca-cola enterprise for 25 years. >> okay. >> caller: i would like your opinion on the new company, where you think it is going. >> well, the one here is the european partners. i think the dollar is going much stronger. that would make it so this is not a good bet, sir. alex in my home state of new jersey. alex? >> i just got a question about go pro four. >> yeah. >> caller: where do you see go pro a year from now app and a year from now, sport companies and athletes all over the world, you think it will get back to its peak in the near future, even with companies like sony and nokia? >> no. i think go pro turned out to be a niche product as did fit bit. i would not recommend that stock because i don't think it is as special as a lot of people thought it was. all right, twitter president, does that sound like the beginning of some kind of joke? think again.
6:11 pm
president-elect's tweets mean we're in a new world. we may have to revallate the risk of those on government contracts and pay up for those independent of the noise. buy why tech co-hotter on fire since the connection. today a women's health care spekt up 20% in trading today. with so many moving parts, how do we know if a trump rally really is on track? i'm going off the traction to find out. plus, keeping joey and the profits? i've got the exclusive with the ceo. so stick with cramer. >> don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer machine tag mad tweets. send jim an e-mail to "mad money" at cnbc.com. or give us a call at 1-800-747-cnbc. miss something?
6:14 pm
i don't know what she's up to, but it's not good. can't the world be my noodles and butter? get your mind out of the gutter. mornings are for coffee and contemplation. that was a really profound observation. you got a mean case of the detox blues. don't start a war you know you're going to lose. finally you can now find all of netflix in the same place as all your other entertainment. on xfinity x1. you know the biotech cohort has been stronger since the election. as investors eye assume a trump administration would be left
6:15 pm
hostile to drug prices than hillary would have been. let's not forget the development stage biotechs. and fda approvals by just who is in the white house. look at therapeutics symbol txmd, for you home gamers. focused on hormone replacement therapies for women's health. the company announced very strong results for their league drug which helps alleviate symptoms of menopause. like hot flashes, sleep disturbances. gave back some of those gains. if therapeutics md is down significantly for the year. depiet the latest data and the fact they have a second treatment for vaginal atrophy, ouch. can the stock keep climbing? let's look at robert, co-founder and ceo of therapeutics md. find out more about his company and product. welcome back to "mad money." good to see you, sir.
6:16 pm
>> thank you. >> initial spike is gigantic. i think that was right because i think this market is huge. if this drug works, especially the 2017 prod spekt, it could be big. but i want you to tell us about it. to me, it is a gigantic market. >> it is very large. thanks for having us. >> of course. >> really glad to be back. we are beyond pleased with our data. to understand what the data really means, there are two hormones that when they decline in a woman's body causes hot flash, menopause, side effects and for the first time we've been able to co-formulate those natural two hormones in a single dosage form and data suggests in this phase 3 study that it is both safe and effective and the reeb this is important is there is approximately 18 million prescriptions of these natural unapproved hormones being sold by pharmacies that are either independent or community based pharmacies, mixed or or what is
6:17 pm
called compounded. doctors and women are choosing these more hoens over the fda approves hormones that are prove ren why safe and effective, but sin thet ping all combinations fda approved are synthetic. why does that matter? that translates at fda price with no improvement for innovation. 3.5 to 4.5 billion for the drug just in the u.s. and there's two really unique things here that you probably have never seen in a pharmaceutical company before. i haven't in any career. number one a law that passed called drug quality and security act. just two years ago, mandates that when there's an fda approved drug compounding pharmacy -- >> take it away. >> can no longer mix it up. >> we though there's 3 billion on compound mix-ups which i don't really trust way. and this could replace it. >> absolutely. more importantly these independent community-based pharmacies that compound these
6:18 pm
products are key for us. in a launch strategy and partnership. >> because they already have the customers? >> not just that. they lost all reimboresment. they would pay the pharmacies for these unapproved drugs that are bioidentical. that's gone or almost completely eliminated in the last year. they are only netting $3 to $5 a script on what used to be a very high profit margin. >> i need to understand how did this do versus the placebo? >> very, very good. showing clear statistical and i want to be clear on these statistical threshold the fda wanted. 0.05 value. we cleared that in top two doses. and also statistically significant and hit the safety end points. so clear efficacy, clinical meaningfulness. >> that doesn't mean it is available right now. it still has to go through more process, right? >> we will plan it file it in q3. between here and there --
6:19 pm
>> q 3 of 2017 and 10-no review. between here and there we will get our launch plans together. but continue to work with the community based pharmacies. we will improve net margins significantly since they lost reimbursement. this is now reimburse fed approved and in addition to that women and doctors that continually choose this will have a proven safe and effective product that can be obtained from any of these pharmacies.ho safe and effective product that can be obtained from any of these pharmacies. >> would it be good to raise money to have a bigger launch? >> good point. we don't know yet. we just hired two really heavy hitters on a commerciallization inside. as you can tell, i'm not a clinical researcher but we went out and got best. from 12th grade back to 3rd grade and they produced two great drugs. same thing on commerciallization side. we have these unique regulatory and commercial reimbursement
6:20 pm
tail end and this is an unmanaged class with payers. very hot topic right now. >> explain what that means to people. >> most times when drugs are approved people put a premium on them, a big one, go to the insurance companies and it takes a while to get reimbursed. these more moans for menopause are unmanaged classes. if i get approved, assuming the fda approves us -- >> for 18 million women. >> 18 million prescriptions. 2.5 million women approximately. assuming it gets approved, you get a key code. new number. na would be at almost every major sharer would pick that up within six months without a review as long as you price it as parity. >> if you don't jack the price up and don't get in trouble with the gov and no tweet from president-elect or anybody else that will give you a big profit margin that you will do well in and stay under the radar of people who are saying there's gouging. >> last year when ways here with governor thompson, secretary
6:21 pm
thompson, we committed to that and we will stick to that. the market is so big, why price it that high. >> that is exciting to me. president of therapeutics mb. stock is up but there is still much upside. "mad money" is back of the break. >> coming up, the sectors that keeps the world's lights on. and from north dakota to trump tower, everybody wants to know where the future of energy is heading. a double shot of oil when the cramer speaks and the ceo of -- >> we had two christmas presents for november. trump come into off and secondly a successful opec meeting. >> and rusty brazil. >> the oil and gas industry will get things done. >> when "mad money" returns.
6:22 pm
this car is traveling over 200 miles per hour. to win, every millisecond matters. both on the track and thousands of miles away. with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere. brakes are getting warm. confirmed, daniel you need to cool your brakes. understood, brake bias back 2 clicks. giving them the agility to have speed & precision. because no one knows & like at&t.
6:24 pm
ever since donald trump's surprise victory a m month ago, things changed. longer term really everybody agreed the economy is poised to accelerate. that's terrific. but that's god side effects. a stronger economy means interest rates are headed higher. dollars would get stronger. we need to watch all three in order to make sure the trump rally remains on track. so tonight i want to go off the chart with the help of rob, a brilliant technician, who happens to be my colleague at real money upon the km as well as being the publishers of right view trading pn.com. look at three etfs. we're not recommending etfs, just showing you. short term rates are controlled by the fed. but long-term command the supply and demand for money. this is the yield for 20-year treasuries going back two decades. for years, long-term interest rates kept going lower and
6:25 pm
trae treasury bonds went higher. lately their yield have been rising. thanks to the skpla nexplanatio feds will tighten next month. at the very least trump wants to borrow money and that will push up the interest that government has it pay on treasuries. when bonn yields go up that means bond prices are going lower. that is the next chart, don't get freaked out, the 20-plus year etf. this is what the hedge funds love to trade, people. this is one of those leveraged etfs that lets treasurers double with firepower. i think that they are really unsuited to invest in because they rebounce everyday. you can lose a fortune on them and they can eat into your returns. but it is worth watching to see where things are going. we are using this as an illustration. what is said about the tbt? the tbt blew 30 in july.
6:26 pm
you can see the bottom. this is december. since then it's been on the rebound. lately the darn thing, the recent break out within he thinks it is for real which reflects the break down in bond price possess thp is ultra short etf. when bonds go down it goes up. if marina is right bonds have a long way to go. and rates have a long way to rise. traul short long-term treasury etf, momentum indicators like relative strength index, that is signalling. great. moving average convergence, wow, look at that. both tracking hard. tbt's recent run came heavy. volume and volume is another sign this is for real. meanwhile malina points out the accumulation distribution line made a bullish crossover, all right? and money flow, cmf, look at this. this oscillator moves into positive territory. look at this. you don't see this anywhere.
6:27 pm
this is major change, people. major. in short a lot of people are betting bond prices need to come down and interest rates come higher. maybe much higher. he agrees. how about the dollar? check out the u.s. dollar index. this measures green back and host foreign currency possess. we know the dollar is freakin' strong since it exploded, exploded higher in 2014. but where it thinks it's headed, get this, to new heights. the fed is about to raise interest rates. that means foreign investors want it take advantage of lower rates. remember how low they are overseas to do that they first need to buy our currency so they have to buy the dollar in order to wiley oto buy our bonds. that jacks it up. for last two years, trading side ways, at very high leveles. if rocketed higher pb breaking out, the resistance in defining training tra
6:28 pm
training range since last year. after this monster move wouldn't be surprise fed you we get a brief pull back but thinks it is the pause that will refresh. finally, third pillar, impending return of inflation. this is interesting. because inflation has been tanked forever. measure inflation, marina likes reuters jeffries rrb index. which inflicts the prices metals to oil to agriculture products.. which inflicts the prices metals to oil to agriculture products.. which inflicts the prices metals to oil to agriculture products. as you can see, it is pretty deflationary after nearly getting cut in after from mid 2014 through this past january. bounce it bounced back. guess what? here we have a cup, here we have a handle. yes. cup and handle pattern. looks like a cup. looks liengd el. pretty reliable. that is stoks index preparing to make a sizeable environment. we talk about how often this
6:29 pm
pattern turned out to be a true sign of something about to go like this. here is the bottom line. fundamentals of the charts is interpreted by rob marino suggestsing long-term interest rates are headed higher. dow will rally. inflation will soon rear its ugly head. that's how you know the economy has it back and why you have to watch all three. perhaps the most three important charts in the book right now. luke in california. luke? >> caller: yes, jim, big boo-yah to you, sir, how you doing? >> great. how about you, partner? >> caller: great. fantastic. thanks for taking my call. long-time listener. with president-elect trump coming in there, i have about 39, 40% of my "mad money" in stocks in niengy. i nike. i wonder if i should buy more, selling? what's your predicament? >> that's a hefty position. i like nike longer term. i think they will get it together. i have been recommending a
6:30 pm
aggressively for months foot locker. why? because when you see this explode you've got nike going agains against under armour going against adidas. who is the winner in foot locker, that's the one i like. aldo in pennsylvania. aldo? ? >> caller: yes, is it time to pull the trigger on this pull back? >> we own this at actioners plus.com. i've got tell you something, we felt that dip down to 75. and didn't last long enough. i see master card. i think vista is very undervalued. letter v. we own it big. wish we were bigger. much of the trump rallies rely on a robust growth and long-term interest rates and inexplanation seeing the signal things are ahead. i keep an eye on the indicators. much moreman "mad money" ahead including interview with pioneer
6:31 pm
natural resources, we want v a president that wants to get oil out of the ground. then for all of the ups and downs in recent months, only guy who got energy right and he is coming here tonight. don't want it miss what he has to say. tonight's special edition of the lightning round. so stick with cramer. tomorrow kick on with squawk on the street live from nyse. >> the app does not have it, thank heavens. >> oh my god pb i'm dead. the cramer app. >> have you other talents. >> if all starts at 9:00 a.m. eastern. will your business be ready when growth presents itself?
6:32 pm
6:34 pm
6:35 pm
this is the stock you want it walk because the company can make a killing at these leveles. pioneer vo pioneer owns vast amounts of acreage. drilling is very profitable with oil above $50. they also have attractive holdings in the shale in the rockies plus pioneer is one of the first to roll a strategy i adore they sold a bunch of their own stock for just $435 million in a deal that looks smarter and smarter by the day. i think the stock could have more room to run. it is genuine production growth. we are about to get a new president with pro fossil fuel possess. let's check in with ceo of pioneer resources who is retiring at the end of the year. i think he is a shoe-in to get into the investing hall of fame for "mad money." considering the adversity the whole industry faced, mr. sheffield, welcome back to "mad money." good to see you sir. >> good to be back. >> oh, thank you. you have been a great educator to me about what's going on. i need you to educate to me
6:36 pm
about how great the permin is, and what the opec agreement means for them and you. >> jim i've been saying since 2013 bb no one believed me then -- >> no, we did, remember? >> you did. but the basin is a $75 billion field recoverable. delaware is probably 40. this is the second largest in the world. >> in the world. >> nobody believed me. >> no. >> three years ago. now we have over half the u.s. rigs in the permian basin. most rigs drilling today are in the permian basin. it is ready to take off. >> one of the things you did is you point blank said look we will do equity offerings and buy choice areas and not stretch our balance sheet. every one of those equity offerings made killing, didn't they? >> yes they did. it is important for investors to make money. of our timing because i've learned my lesson with five downturns and you've got to have
6:37 pm
a great balance sheet. this is the first downturn we've add great balance sheet and the best in the business. we have essentially have zero debt today. how many companies do you know can grow up to a million barreles a day in one field without any more equity offerings, without any more assets over the next ten years. >> no, you are a true growth company. just like the others we talk about, there aren't that money, horizontal economics among the best in the world? >> yes. 50 to 60% returns. >> right is now? >> right now. exactly. >> and you're doing something you're not getting credit enough, how much does it cost these days versus three years ago to get something off the ground. >> this cost is about $8 to $10. >> how high was it? >> probably 15 to $18 range. >> you cut the price for american technology, pitting each other -- how did you do this? >> who efficiency than the
6:38 pm
service companies. service companies give us 35% back but the efficiency gains improving the size of the frack jobs doubling the size of the frack job using twice as much water, twice as much sand. we can drill the wells in half the amount of time in 20 or 25 da da days versus 40 dayes. that's why you see the permian continue through the downturn. >> you're not a risk taker. you have a hedging strategy the best in the industry that i've seen. >> we picked up $2.5 billion in value. >> in hedging. >> in hedging, yes. the last if i years. >> you're not making a bet oil is going back to 100? >> no. but we won't upside. between 40 and 50, we get 50. between 50 and 60, we get that price. we give away the upside for above $60 for 2017. we decided not to hedge for 18 because i think we will see supply demand start drawing in 18. i hope it happens in 17 with the
6:39 pm
opec agreement. definitely happen in 18. >> you have a chart that says permian basis, only growing oil shell play in this countries since 2015. they are all going down. >> exactly. >> were you open up eagle fir if it goes up there i know have you other areas to drill. >> if they stay in the mid 50 range we will drill 10 to 12 next year. >> okay. what does president trump mean for you? >> we have two christmas presents the way i look. for november trump come into office. second, he is successful opec meeting. with trump coming into the office they are are talking about skpendsing all expenditures. >> is that behind the scenes what they are talking about? >> that's what they are talking about and going into 17, 18, 19. and not just ours but all industryes. create new jobs. create new stability in this country. and i'm excited about what's happening.
6:40 pm
>> one of the christmas presents might be return to opec? >> no. i think if you read the speeches as he is traveling around the country, russia said they are going to cut 300,000 barreles a day in 2008. 2009. did they do it? no. i would be surprise fed russia cuts. jaud today do something. their budgets, shortfall, losing $200 million of phone reserves, 750 to 950. they are trying to reverse inventory down to get crude back in the 50s. hopefully we will have a draw second half of '17. >> do you have enough pipeline to get your oil and natural gas out of the ground and to its mark snets. >>. >> yes we do. the u.s. production bottomed out about will.6 million today and up to about 9.1 by the end of 17. up to about 9.5, 9.6 permian. u.s. production. >> right.
6:41 pm
>> most of it is permian growth. >> but if that's the case, oil will go back to $45, isn't it? >> big unknown is that most projects around the world stop coming on by the end of '17. all of the investments made in 2008 to 2014, last ones are coming on by the end of 2017. i would expect something to happen between 18 and 2021. there is only four places that can supply the world's dimanned. permian. saudi arabia. iraq. iran. four countries will supply the world's growth during four to five-year timeframe. >> incredible. this is it for you. what are you going to do? i know you will stay on executive chairman for a little bit. but you're not done, are you? >> i'm on williams board. >> i know that was -- i knew they were finally serious. >> your good friends, hopefully keith is excited. about the board changees. we have a couple more great board members we are interviewing now. joining recently john brown of
6:42 pm
letter 1. so i've joined that board. a group based in london. so stay involved in pioneer. very, very excited about it. >> congratulations for everything you've done for shareholders. when you did the deal for 1. -- 170, we said we have to get in. pioneer natural resources up 400%. what's not to like? "mad money" is back after the break. when a moment turns romantic, why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension,
6:43 pm
as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis and a $200 savings card. i am benedict arnold, the infamous traitor. and i know a thing or two about trading. so i trade with e*trade, where true traders trade on a trademarked trade platform that has all the... get off the computer traitor! i won't. (cannon sound)
6:45 pm
it is time for lightning round. and then the lightning round is over. are you ready? start with rick in ohio. rick? >> caller: big boo-yah to you, gym. thank you for taking my call. >> no problem. >> caller: my stock is western digital. i noticed insider buying that caught my attention at 43. >> yeah. big pronounce, unbelievable number. i think the stock is cheap. i recommend it last week if they actually buy micron.
6:46 pm
ever since west digital built, they've been on fire. i like that stock very much. pete out in south carolina. >> caller: boo-yah, jim. love your show. >> thank you. >> caller: gat question on c-span corporation. >> i don't like the container ships. i think the dividend is a red flag. cla challenge flag by every coach. richard? >> thanks for taking my call. my first question today is about fedex and -- >> i like fedex. i think they are having a very good holiday season. sharon in pennsylvania. sharon? >> hi, jim. before the election with visions of a post election market melt done playing in my head, i decided it was time to go for the gold. i bought shares of a mining company called sabane gold. >> interesting mining company. our favorite is rand gold. but gold stocks have been real
quote
bad. so i understand they are just for insurance purposes. i node to go to dave . >> caller: boo-yah from manhattan. >> this evening i'm going to manhattan. what's happening. >> caller: a shout out to my boys. and number three, iivi. down a couple points. asking whether i should sell my options. i'll up about 300% on. >> stock is up. that isn't specialized enough for me. i say it could be a little ad partner and intro you gave, i'm a believer in every bit of it. let's go to bob in arizona. bob? >> caller: jim, boo-yah to you. >> boo-yah. >> caller: my stock is w
6:47 pm
6:48 pm
6:51 pm
investors when they got opec to cut to 1.2 million barrel a day. the price of crude is surging however opec ain't what it used to be. the world is flooded with crude thanks to the renaissance. if the saudis are cutting back you have to wonder if the u.s. will step up. this is an important moment for oil. that's why i want to catch up with the consultant for rbn energy and rbn energy website. i go there for information. and how the shale he is one of the few industry analyst on the way down and pretty much called the bottom of the last time he came on in january though he said they would be range bound after bounce off the lows. that's what happenen. has rusty gotten more balls or have we watched him curb enhughs
6:52 pm
y thus y enthusiasm. rusty, we got a lot of guys on. you said they would be range bound. opec, time to change our thinking or what you said last time. >> good thing for popec. they today do somethi had to do something. a good thing for opec, mostly about optics. >> really? russian, that was a big deal. >> yeah, russia is involved. they are an member of opec therefore they are on the honor system. >> okay. so that means if oil goes up a lot i would like it think that there's an umbrella. i've not saying that you've been riding rbn. this is the chance for the american companies, to start pumping like mad. >> they are tpumping like mad right now. but i think the 1.2, 1.8, i think the saudis have probably
6:53 pm
had a building full of consultants tell them exactly the number they needed to pick in order to be able to boost their revenue while not unleashing the beast. in other words right at the line where they have to get back to 50 bucks or so. >> and that's the sweet spot. >> that's the sweet spot. they want that because they want the extra 10 bucks or so. but they do not want to create the economics that will have the united states increasing production by an additional 100,000 barrels a day every month that happens. that's what was happening last time. >> okay. what if on their rack, what if on the ram, what are they doing? >> they are going to try to optimize the situation as best they can. to the extent they were able to boost production in the october reverence period they may have tried do that. we don't know for sure but it is a distinct possibility. to the extent they are doing mant nabs any wa
6:54 pm
maintenance any way, why not do it next year. there are all sort of things companies can do to optimize the situation and only at least initially a six-month deal. >> why did everyone get caught short looking the wrong way? >> because they -- it is head fake, right? >> right. >> if they said they were going to do it, they did. if they weren't going do it, they didn't. finally the fear factor, again, fear factor was enough, i think they are out of the market that where you got the boost but let's face it. now we are back down on 51 bucks. look at forward curve in 2021 the price is $56. >> hasn't changeed. >> it was $55. >> that tells you more than anything, now. we have a president who is not about keeping fossil fuels in the ground. he is about getting them out and he wants pipeline and if you listen to him, what you would think is, he wants an american renaissance in oil. didn't we have one? >> we did.
6:55 pm
and there's no doubt in my mind that with trump as president, that oil and gas industry will get things done. >> okay. but that means that they can pump a lot of oil. >> yeah. but even under the obama administration they got a lot of things done. they got so many things done, that they crushed the price of oil and gas. gee, now we get more things done. does that make you a little uncomfortable? >> a little ironic. you have the trump presidency that makes us pump more that brings the price back down? >> could happen. which would not be terrible for opec members. isn't that eye rironic? >> it is aronnic. eye /* our pipes, i think you showed me, our pipes, even though you can't reverse them because they are bigger on one end than the other, do we need more pipe and how does it work?
6:56 pm
>> we need a few more pipes and there are a number of pipeline projects in the middle of getting reversed right now. they were flowing north and east. now they will be north and south. guys have a project coming on, right now as we speak, that will do that. a lot of that gas will get back down into the south eeeast regi into texas and louisiana and skpo exported into the form of lng. >> okay, the important, 3.8 billion is spent on the dakota pipeline. will we see that in our lifetime? >> will that pipeline work? >> yes, i don't know. i think that president-elect trump has said it'll happen. so i think it's going to happen. and that will be good for producers and probably good for us of us that buy gasoline for our cars. >> we have enough pipes out in permian? >> we have enough crude oil
6:57 pm
pipes out of the permian now. gas makes me a little uncomfortable. i think we need some pipe lines up for gas out of the permian. >> i'm pro job. >> yeah. we will build pipes. >> i'm for all forms of energy, like every president ever says. how p that? >> energy market consultant at rbn krrenergy. we try to be and he is. "mad money" is back after the break. ♪ ♪ is it a force of nature? or a sales event? the season of audi sales event is here. audi will cover your first month's lease payment on select models during the season of audi sales event. mary buys a little lamb. one of millions of orders on this company's servers. accessible by thousands
6:58 pm
of suppliers and employees globally. but with cyber threats on the rise, mary's data could be under attack. with the help of at&t, and security that senses and mitigates cyber threats, their critical data is safer than ever. giving them the agility to be open & secure. because no one knows & like at&t. inside everyone is an incredible cook, someone who can cook an amazing meal any night of the week. farm fresh ingredients, step-by-step recipes, delivered to your door for less than $9 a meal. get $30 off your first delivery blueapron.com/cook.
6:59 pm
a brave new world out there and if you own shares in a company that relies on the federal government for a substantial part of its revenue, and here i'm thinking say medicare and drugs or defense stocks or any company that has big government contracts, you have to think, wait a second. there could be a tweet coming my way. so get ready. there's always a bull market somewhere. promise to find it. meet me here on "mad money." i'm jim cramer, and i'll see you
7:00 pm
tomorrow. lemonis: tonight on "the profit"... a new york fashion designer was once a phenomenal success... what's the biggest year that you've had? susana: 13 million. lemonis: ...but today, she finds herself under siege. susana: there's no respect here for me at all. there's no respect. where's the respect? lemonis: customers are deserting her label. anna: honestly, we didn't make any money since 2009. lemonis: friends and family are demanding a piece of her business. susana: the brothers think i owe them their birth right. lemonis: i feel like you're being kind of, like, shaken down. and instead of standing up for herself and fighting for her brand, she's letting it fall apart at the seams. susana: this is bull[bleep] it's total bull[bleep] lemonis: if i can't help her regain confidence and harness her incredible talent... susana: it's really stressful to...
470 Views
IN COLLECTIONS
CNBC Television Archive Television Archive News Search ServiceUploaded by TV Archive on