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tv   Mad Money  CNBC  December 9, 2016 6:00pm-7:01pm EST

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play. >> dan nathan. >> february risk reversal. >> thanks for watching. i'm melissa lee. we'll see you back here next friday at 5:30 p.m. eastern time. in the meantime, don't go anywhere. my mission is simple -- to make you money. i'm here to level the playing field frl all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now. hey, i'm cramer! welcome to "mad money," welcome to cramerica. other people want to make friends, i just want to make you some money. my job isn't just to entertain but ij kaeducate you so call me 800-747-cnbc or tweet me @jim cramer. these are heady times on wall street, some would say giddy times when you consider our
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president-elect is driving his own personal bull market with a message that resonates with stock buyers all over the world. once again we hit new records. dow soaring 142 points, s&p gaining .59%, nasdaq climbing.50% like we've done every single week since the election. we have had 14 record closes on the dough since the election. 14. six for the s&p. next week, though, could be a weekup call. it may be -- it may cause this rally to pause, not necessarily collapse. there are way too many people who don't want to sell this year and want to take profit, get better tax breaks next year and there are many institutions that don't own enough stock, at least to fulfill their fiduciary duties, meaning they look like idiots. still ads early as monday we could get news that could stop this rally in its tracks. or at least that's what it would have done not that long ago. did you know that 20 years before christopher columbus
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sailed the ocean blue the oldest surviving bank in the world, banca monte dei paschi was founded in sienna. it's one of the greatest towns in the world. and this bank is a standout. it's 544 year history. but after surviving the board, invasions of italy by france france and spin, monte p aschi needs to be bailed. there's no plan to save it from its current form. when a bank goes busted in italy, everyone gets hurt, subordinated debt is wiped out, depositors can take a hit as deposit insurance covers 100,000 euro. this is not a small bank. it has $48 billion in public debt. it will take a monstrous hit.
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the situation could force italy to take action. can they let the oldest bank in the world fail? it willsy the third-largest bond market on earth. this is the third largest bank in italy. i don't think there's enough money in the till to get something done without a huge amount of pain in anything remotely involved with monte paschi. there was a time we would be talking about this. every morning and every night. it would be the focal point of everything. other than the strong dollar hurting 2 earnings in the spike in interest rates, this thing could be top of mind. in that sense, it's just one of a couple things that probably won't derail the bull market. i mean, will there be a wipeout? will people care? monte paschi is the biggest event? this market. we won't have to wait to find out the answer.
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maybe it won't matter. the trump rally is taking up a lot of stocks including many we don't have a sense of how they're currently doing. one of my favorite trump stocks, a company that benefits from lower taxes and the ability to repatriate overseas earnings as well as deregulation is 3m. i've always described 3m as a core holding, a company with a stock that can be owned and put away because its long representation. i bet we'll hear positive projections for 2017. the ceo has delivered time and time and time again under difficult circumstances. i don't believe it will be different this time. oh, by the way, happy birthday to scotch tape which launched december 8, 1930. i've always been found of this company because my father repped all their products and i bet he sold more scotch tape in his lifetime than anyone selling it during those 50 years. of course there's the coming fed meeting. now there was a time not that long ago when this would have been all anybody was talking
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about, too, a fed meeting where we actually expect to get an interest rate hike. it would have been disastrous. i've always felt we should hold off from raising rates until things get better. here we are. things have gotten better. we have tremendous advances through stocks of companies that benefit from a rate hike, namely the banks. so we're in the odd position that we'll have a pretty horrific selloff in this bull market's most extended group, the banks, if we don't get a rate hike. in fact, we want to hear that the fed's seen better growth and might tighten more in the future. can you imagine what ailed us a few months sag now welcomed by the market? but that's what growth does so chairwoman yellen, bring on your quarter point hike, we're ready for you. next up, have you notice general electric, unlike so many other industrials, failed to break out as it stands to have huge gains under son to be president trump? maybe that can change when the company holds its analyst meeting wednesday. i'd love to hear about bigger dividends, buybacks, possible acquisitions as well as the spinoff of its energy business
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which will be combined with baker hughes, the oil service firm. we need to hear something more positive than the meager penny dividend boost we got. come on. thursday, thursday is the big day for earnings next week. and also for analyst meetings, frankly, after the close we hear from adobe and other kouala lumpur. i've thought of it as the artificial intelligence learning company as it's become the arbitor of whether black friday is any good. this cloud-based company running -- will tell a fabulous story befitting the strength of the business that the ceo outlined in october. we'll hear from oracle and it could be a day to boast as oracle has successfully acquired net sweep which does cloud based small to medium size relationship management software. that combination of these two companies could give them bragging rights about the size of their cloud business. i'm concerned about big enterprise spending on software
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ever since that work day forecast cut. work day competes with oracle. i wonder if they're seeing the same weakness. if it isn't, though, i expect oracle to advance smartly after they report. we've got three important and investable analyst meetings on thursday so listen up -- delta, cvs, that's the charlie victor comm and danaher. some of the airlines had amazing year but not delta. if delta says it's seeing the same trends that southwest gary kelly told us here the other day you might have good trade in delta, dal. danaher is a well run manufacturer that spun off its less proprietary divisions into a company called forive the. i think the new danaher will have an amazing story to tell. cvs is beaten up because it owns pharmacy benefit manager and that group has become more competitive. plus i'd turn negative on the company for a while. down 18, too late, probably a buying opportunity.
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finally, few groups have been hotter than agricultural equipment. you know we believe in what martin reeshen haggen has done for a.g. co, cutting back, buying stocks, it looks like we aren't the only believers, the stock is up 32% for the year. i feel terrific because we've been front and center believers to the point of taking a spin. probably sitting in one of those monster trucks. i doubt martin will throw cold water on the move but know you are getting late to the party if you come in here. here's the bottom line. it's been a remarkable five weeks since the election. the markets an energizer buddy fueled by tweets and nominations for cabinet posts and terrific data for the broader economy. but coming up, we have the most fraught week since the election so try not to let your giddiness get the best of you. sara and pedro in connecticut. vary and pedro? >> caller: booyah, jim! >> caller: based on yesterday's
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earnings and guidance, buy more share or sell existing shares? >> that restoration hardware, that conversation call, listen, they just said we are just not doing it right at all. they even had bad sales after the election. the only retailer, the only retailer in all the group that i think. sara, have you been by the stores lately? sara? >> caller: hello? >> well, anyway, that was good. it was kind of like a joint thing, it was like, you know -- um, car karaoke kind of thing, you know what i mean? craig in rhode island, craig? >> caller: happy greetings from the ocean state. i'd just like to tell you i'm a very loyal watcher of cnbc, thank you for taking my call. my question is many financials have doubled from their 52-week low. that would mean citigroup would go to at least 70.
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your thoughts, professor cramer? >> i think it goes higher. my charitable trust owns sciti, don't just hold on but buy and not just because trump stock. phil in my home state of new jersey. phil? >> caller: dr. cramer, how are you, my friend? happy friday to you. >> i always like to get a doctorate now and then. happy friday right back. what's up? >> caller: thank you, bro. i'm calling -- i purchased alta cosmetics at around $263 and after the earnings came out stock was up $16, it quickly sold off. same thing happened last quarter, good guidance, beat earnings and it fell off. now past week and a half it's been down, it hasn't even participated even though the reality has been spreading around. do i buy more of the stock? >> let me tell you the problem, people want the retailers that were doing badly that can now do well because the economy is
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better. they don't want the consistent ones. ulta is consistent. i'm banking with mary dillon. it may not happen again, another leg up right now, but that company had a fantastic quarter. we'll never sell good companies because this stock ain't doing much right now. all right, the trump rally keeps going and going and going but next we could be the biggest yet for the post-election momentum. keep your eyes on the data and on monte pasche. just like barbra streisand, memories from the corners of my mind, see what hess's memories are. then there seems to be plenty of bull market to choose from this this trump rally, but what? a bear market. there are other opportunities lurking. i'm buying the tech sector to see if it's time to do buy. and one of my absolute favorite companies joining me tonight. don't miss my exclusive with one of the greatest oil independents in the world, similar rax. stick with cramer.
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just last week we spoke with the ceo of marathon petroleum and we talked about the things that have driven the stocks magnificent rally. that rally continued since our interview. i mention this because one of the things driving marathon peet higher beyond the fact that they just got a new pro petroleum president is the emergence of an activist investor, namely paul singer's management that bought 4% in the company. however this move into marathon petroleum people with longer memories pause because this isn't the first time elliot management has tried to run an activist campaign with an energy company and the most recent public tussle with hess which
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dates back to early 2013 has been, as we say on "mad money," suboptimal. at least as of the end of september, hess remains elliot's third-largest position and they're hess' second largest shareholder but to use less diplomatic language, this investment, not so hot. so given how worked up everyone has gotten about this fund's involvement with marathon petroleum, tonight i want to use elliot's experience with hess as a case study for you to show you what can go wrong even when there's very smart activist pushing for something to happen. elliot management announced their stake inness in january of 2013, that was at a time when the stock was trading low to mid-50s. initially this investment was a huge success, stocks spiked up to 105 july 2013 and if elliott sold everything right then, that would be the story but they hung on. as the price of oil collapsed, so, too, did hess' stock price. the thing is down more than 50% from its highs and this is after the stock has run up tremendously in recent weeks courtesy of the trump rally boosting all things oil and opec production freeze helping to push up the price of crude.
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they got into the stock in the low 50s and three years later it's 62 and change. well, that's a ballpark, elliott management has a 20% gain in hess during a period where the s&p 500 is up more than 60%. that's better than a sharp stick in the eye but not necessarily the performance we would expect from the smartest activist around. so what happened? when elliott announced their stake in hess three years ago, the company was in the middle of a multiyear restructuring effort that included selling off many of their non-core assets, midstream and downstream businesses not relating to refining oil and gas but then elliott management releases their usual letter which in this case was incredibly scathing, they said hess was undervalued because of a lack of focus, poor execution. they argued hess should sell off more assets in order to unlock value. over the next few months, elliott got into a public fight with the company's chairman and ceo, john hess, namesake, with open letters to shareholders flying from both sides along with threats of a proxy fight. as all this was unfolding hess
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announced "the culmination of a multiyear strategic transformation into a pure play exploration company" meaning they were going from being a gersh phied integrated oil to one more production to placate the guys presumably, at elliot management. they increased the dividend by 150%, authorized a buyback and did the moves elliott wanted to see. after agreeing to the changes therm able to reach a deal with elliott in the early morning hours right before the company's annual meeting giving the activist fund three of the company's 14 board seat which is hess chose to do to avoid a proxy fight. from that point, it almost seems as if elliott was in control and the asset sales accelerated. hess sold its energy marketing business in the east coast, its indonesia offshore assets in 2013, in 2014 the company sold a big heap of utica shale, thailand productioning a sets but the one that most reflects elliott's influence came in may of 2014 when hess sold its retail business to that iconic
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chain, more than 1300 gas stations to, ironically, marathon petroleum for $2.6 billion. at the same time, hess announced it was raising its buyback to $6.5 billion. for those of you who remember, the timing here, horrendous. a few months before the price of oil peaked hess sold all its retail business so it could become a pure play on oil and gas which then, of course, got hammered. now, initially these asset sales were huge hits, the stock basically doubled in 18 months then oil peaked in june of 2014, hess got crushed plummeting far worse than had it done nothing to transform itself. in other words they were acting like oil would stay expensive forever and hess transformed itself into a pure play exploration production company at literally the worst time possible because, as we saw during the downturn, it was the diversified guys, the exxon, the chevron that held out best. hess would have been one of those diversified names but elliott management pressured them to become undiversified. no wonder the stock declined 70% from 2014 peak to its trough
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this past january. even worse, the share repurchases became a very public black eye for hess. not only were they selling off important divisions at the worst possible time, but the company was buying back its stock aggressively at much higher prices than they could have gotten if they just waited from august of 2013 to the end of 2014 hess spent $5.26 billion, $5.26 billion to repurchase more than 62 million shares. average price, 84. even after the recent rebound, hess is at 62. while the company initially used the asset sales to pay down its debt load, by 2014 they were borrowing money to do that buyback and increased dividend. fast forward to this past february, what did hess have to do? a humbled hess needed to do a 25 million share secondary, offering at 39. part of a major fund-raising effort. okay, let's put it together. they bought 63 million shares in the middle '80s and then a
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couple years later they had to sell 25 million shares for less than half that price. that defines buy low, right, that -- that defines sell low after buying high. they sold the stock all the way down here under pressure from an activist. the bottom line -- no matter how smart an activist investor may seem, they're not clairvoyant. elliott management debacle with hess is enlightning because at the time they seemed like they knew what they were doing but they put hess in a poor position to deal with a huge selloff in oil so when it comes to elliott's involvement in marathon petroleum, remember even the best activist cans get it wrong. i'm not saying marathon peet is a sell, just the opposite. but i think elliott's pressure is not always a good thing and i'm glad hemminger is taking counsel of himself not the activist fund that almost ran hess into the ground. much more ahead. i'm searching for bargains in the bear market. don't miss my take on the tech
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sector. find out which stocks are down not out. cimarex is up 60% year to date? i have the exclusive with the ceo and my interview with united technologies greg hayes made headlines earlier this week. tonight i'm bringing you more of our conversation. you won't want to miss that. stick with cramer.
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ever since donald trump shocked the world by winning the presidency a month ago, nearly the whole stock market has been in rally mode. in fact, there are almost too many bull markets to count. energy infrastructure, just so many other companies just generally industrials. but what happened the no trumps? i'm talking about the few genuine bear markets that have emerged since the election or at least stocks that have a bearish
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phase. take technology. many stocks have been on the skids since trump got elected. at first that's because i thought they were selling at source of funds, saying good-bye to many stocks that got in favor like industrials but with all the money pouring from bonds in the stocks i'm not sure if that argument is as central as i thought, of course there's another reason so much of tech might be down since the election. while trump himself hasn't said much of anything about this industry, we know tech ceos have had a lot to say about trump. they've poked him. during the seemingly endless runup to the election, the tech sector kept pushing the same message, trump presidency catastrophic for innovation so people took the business leaders at their word, you can understand why they might be afraid right now. silicon valley is a democratic party stronghold and many executives decided to play politics. while they may not like trump, they love his tax cuts. in short, the trump administration will be less
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inimkabl to tech than many of us believe and i'm less worried about these stocks used as the source of funds now. broadcom, the company created by the powerful merger of two semiconductor companies avago and broadcom exploded higher after reporting a really fabulous quarter last night. good job to by the ceo. going into today, broadcom is down 4% since the election despite the fact the company has a lot going for it. when avago acquired the old broadcom, they created a new tie tab of the industry and the deal helped them diversify away from cell phones. now the new broad koblg has a 50% market share in wireless infrastructure, 50% share in enterprise storage. in short, there was no reason to think the business was anything but amazing. and that's what we found out when they reported. the stocks soared eed up more
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eight bucks trading where it was on election day. if you think you're missing the move, think again. broadcom 12.5 times earnings, incredibly cheap. i think they could be prepared to get more acquisitions even after the deal they just did. i don't like the chase but when it comes in you have to buy it, by the way it helped move the stock of key customer apple today, too. with that in mind, i want to look at other tech names in the s&p 500 have that have fallen farthest behind since the election and give you my prediction. many companies can't stay down that long. they have to rebound and if you can buy them that's the better for you. first, there's salesforce.com, the king of cloud computing. down 7% since the election. what makes this move more outrage jouou outrageous is salesforce had a fabulous year. to wall street these were hillary stocks, they needed to be dump sod they could load up on trump stocks. the truth is that salesforce isn't anybody's stock. they'll keep growing like crazy no matter who's in the white
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house courtesy of their visionary founder and ceo. the company's latest quarter marked acceleration and salesforce looks like it's on track to become the fastest company to generate $10 billion in annual sale. as benioff said "no enterprise software company is delivering this kind of growth at this scale." and with this pullback since the election, you're getting a chance to buy salesforce at 13 bucks off its highs. i say add it to your shopping list, maybe do buying next time it goes down. second, adobe, a stock we added from my charitable trust last month as you might know if you follow along actionalertsplus.com. adobe is the rare 1990s era software company undergoing a major transformation and yet its stock is down 4% since the election even though business is booming. you know adobe is a classic maker of digital media and marketing software but in recent years the company started making the switch from traditional software licensing to a cloud-based software as a service model that's so popular.
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adobe is killing in the the cloud. the new leader in digital marketsing software and the gross phenomenal. as i told you be prepared for good things when they report next week. i think it will be a good quarter and worth buying some beforehand and some after. how about facebook. that's down 4% since the election. granted the economy -- the companies seem to hit a speed bump that had nothing to do with the economy in early november. they reported a staggering quarter but made cautionary comments about the future. however i think people read too much. it's not like they cut their forecast, they just said the quarter was so amazing it would be hard to repeat. facebook stock was in purgatory up until november 21 when the company announced a monster $6 billion buyback. while the stock is off its highs it remains a long-term growth story with lots of assets left to monetize. like what's happening in instagram. we ordered it for the charitable trust. it's worth snapping up some. we get a market wide pullback,
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it will be a great place to go. this is not a fly-by-night dotcom. it's a company with amazing earnings and believe it or not it's cheap versus its growth rate now. next, i'm a huge believer in the video game thesis that these games are one of the general long-term sectors with real staying power. electronic arts, ea, the game studio with best sports franchises out, there madden nfl, ea sports fifa, a big hit in battlefield 1 world war i shooter that came out in october. you think video games stocks will suffer with people going out more now that the big bad election is over? i bet there are millions of democrats immersing themselves in games. that way they don't have to confront reality. [ rim shot [ rim shot ] my video game has been take two. it hasn't been punished at all. it's up 43% year to date. i bet it keeps climbing because
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this time of the year hedge fund managers have to load up on winners if only they can show their clients how smart they were. if you were thinking of buying these down and out but high quality tech names, today's action from broadcom should put you at ease. the post-election salesoff in names like salesforce, adobe, facebook and electronic arts has been a gift which is why these stocks belong on your shopping list. stacey in missouri, stacey. >> caller: booyah to ya, dr. crimer. >> booyah, stacy. >> caller: thank you. it seems they started to rotate back into the techies so i'm wondering if you think now is a good time for us to get back into them and what's your opinion of microsoft as a cloud service provider. >> i think they made a brilliant move in buying linked in. i think this price hanging
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around the 60s, i like your idea alex in my home state of new jersey. alex? >> caller: hey, jim, how's it going. a big booyah from engelwood, new jersey. >> love it, right around the corner, man. what's going on? >> caller: i'm looking at shares of fitbit, they're down at 70% year to date, their third quarter was awful and unit sales are flat. they sounded cautious on the earnings cause so given the recent positive comments from tim cook given the success of the iwatch, is now a good time to consider initiating a position? >> i think fitbit turned out that that market for wearables wasn't as big as we thought maybe you get a january bounce but i would not buy that until the end of the year. christmas is coming early this year. i think salesforce, adobe, facebook and electronic arts are wrapped and ready for the taking. maybe buy them on a pullback.
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much more "mad money" ahead with all eyes on opec. i'm sitting down with one of the top domestic players in the oil patch, see how the deal similar pacting business. don't my exclusive with the ceo of cimarex. and greg hayes had a lot to say when i sat down with him earlier this week. so much so we had too break it up into two parts. i'll bring you more of our conversation tonight and all your calls rapid fire in tonight's edition of the lightning round so stick with cramer.
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we've been all over the oil patch ever since last week's opec production cut agreement sent the group soaring, particularly the domestic exploration production companies. take cimarex energy with red hot base and oklahoma's woodford shale. cimarex stock is on fire up 60% for the year and 17% since the election. this is an interesting one because what the company reported in november the results were suboptimal. but the stocks have been better in iway because investors are pumped about cimarex's prospects next year. we care about the future more than the past and with oil and gas prices on the rise a fossil
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fuel friendly president in the white house and cimarex set to boost production next year i can understand the excitement. let's take a closer look with tom jorden, the president and ceo of semcimarex energy and fi out where the entire industry is going. mr. jorden, welcome back to "mad money." >> thanks, jim, glad to be you here. >> you said something very interesting on a conference call that seemed to be different for an oil company. you said we manage the company by rate of return. why is that shocking for an oil company. yet pretty much status for everybody else. >> jim, that's a great question. i think i would answer that by different companies have different time horizons. some are private equity, some are built to flip, they're looking for an exit point. at cimarex we have a long-time horizon, we're trying to build a company of enduring value, we invest through the commodity cycle so when we make investments at cimarex, we understand that commodity can be up or down, we want to create real value, real measurable
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value for the long haul. so the ideal owner of cimarex is probably a long-term holder because we're creating long-term value. >> at the same time you do something, you said in the most recent conference call, that you were excited about, "we continue to push the envelope in completion, optimization and innovation." for our viewers who aren't familiar with the technical details, what does that mean for cimarex in terms of its break even if it wants to start drilling right now? >> well, it's been an amazing couple of years, jim. since the industry turned in 2014 and the oil price collapsed. the industry has been remarkably innovative in getting more productivity out of our wells, we're taking the advantage of the lowered cost and so we're drilling wells today that are longer, longer horizontal wells, we're getting them done faster, we are getting wells that have twice the productivity of what they had a couple years ago so
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today to answer your question cimarex with our assets and the quality of our assets, we look golden at a $45 oil, $2.50 gas world. we've gotten our cost down and we have well productivity that we can make a very healthy living and get our growth profile. >> even as much as three years ago, would that have been difficult to be able to say a 45 in that gas price? >> jim, if you asked me that three years ago, i'd have said you were crazy. three years ago if i looked at a $45 environment i would have said we're dead in the water and that's a testament not only to cimarex but our entire industry has been innovative and tremendously responsive and you just want to say it's a testament to free market, entrepreneurialism and good old competition. >> let's talk about free markets. now we have a soon to be president who has said on many
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occasions that fossil fuels are part of the answer and he's in favor of pipelines and drilling and wants to help the industry in anyway he can. what would that mean for cimarex? you may not need a president for or anti fossil fuel but this guy wants to help. >>. >> well, that's a great question, jim. things that we will welcome in our space, we'd certainly like to see a different regulatory environment and you've had people on your show talk about this but in the oil and gas industry we've had a fury of regulations that hit on a friday afternoon, they are complex, often the local agencies that have to administer them don't understand them and then we go into immediate enforcement mode. so what we're hoping for out of the federal government are compliance partners to work with us and not just enforcing these regulations. we can live with whatever regulatory environment that the united states wants to establish but we're going to fully comply
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but some of these regulations are horribly complex and we look forward to a compliance partner in the federal government. >> well, attorney general pruitt, will he be able to change things? these bureaucracies are very hide bound but i know he's very pro fossil fuel. can it make a difference. >> i don't know him personally. i know people that do know him and they speak highly of him and i think it can make a difference. i think we're very willing to honor any and all regulations but it's the tone and a more of a business-oriented results focus out of our regulatory regime that we'd like to see. >> last question, we had mr. sheffield on, old friend of the show, retiring, we had rusty brazil, i know you know him from rbn. they're saying there's so much oil that if you unleash us not only could we be continently independent but it's possible we could get the price down
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ourselves. are we capable of doing that? >> well, the u.s. independent producer has been remarkably resilient. a lot of people around the world thought we'd be dead or written off for dead in the 45 or $45 oil environment. i wouldn't sell the u.s. and oil and gas economy short on that, jim. technology is still on the move, we're seeing advancements and improvement and we can see singh continue oil growth in the united states with any kind of price stability. now that won't happen for everybody, companies like cimarex have outstanding assets, not everybody can sit and answer your question that we're profitable in $45 but i think that what we've seen out of our industry in the last couple of years is a tremendous resiliency. we've got a great emphasis on technology and i'm extremely optimistic about our industry's prospects in this new world of lower for longer prices. >> well, i'm extremely
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optimistic and have been for a long time about cimarex. i love your balance sheet, your technology and what you are doing. thank you so much for coming on the show. appreciate it. >> thank you, jim, a pleasure, thank you. >> tom jorden is the president and ceo of cimarex energy, about the best we have. "mad money" is back after the break. this car is traveling over 200 miles per hour.
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it is the time for the lightning round! and then the lightning round is over. are you ready? time for the lightning round. frank? >> caller: hey, jim, how are you doing? >> i'm doing well, how about you, partner? >> caller: well, pretty good. look, can you help us with some dividend stocks? i'm interested in b.p. and at&t. >> listen, b.p. know. i think at&t will give you growth that will be better. joseph in jersey. joseph? >> caller: hello, cramer! i'm loving this slump rally and
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i hope it continues. with the rising interest rates do i still hold on to paycheck s? >> simple enough. how about jonathan in new york. jonathan? >> caller: hey, jim, how are you doing? jonathan in new york again and i want to know how do i play wendy's? >> i've been liking wendy's for a long time and i'm not relenting one bit. i'll throw in mcdonald's and let me give you another name, panera. new labor department secretary has a different idea about labor than the previous guy. let's go to graeme in south carolina. graeme? >> caller: booyah, jim. >> booyah. >>. >> caller: do you think who will win the national championship and a buy hold or sell at paypal? >> that's the one i'll handle. under 40, i like the stock, it hasn't been able to pass 40. people are buying the real bank stocks now. buying first national bank of
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trump, a.k.a. bank of america. how about jalil in texas. jalil? >> caller: booyah from houston, jim. >> nice, what's going on? >> i acquire petrobras and there have been mixed years ago. >> the brilliant government changed and the real got stronger. and thank you to the river tavern for overserving me. just kidding. kenneth in ohio? >> caller: booyah, jim. i wanted to buy trans-canada, trp stock. >> oh, my god! i mean, really! i like the stock very much and that, ladies and gentlemen, is the conclusion of the lightning round!
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welcome to cramerica. other people want to make friends -- just a second, i have a problem. >> caller: booyah, cramer. >> a stutter booyah to start the show. it does have as good a balance sheet as barclay's, it's better than royal bank of scotland. look, it's not the cleveland browns, maybe it's the cincinnati bengals. and by 19th century standards, trump tame. andrew jackson fought over 100 duals, actually killed a guy in an argument over a horse race. kind of puts these tweets in perspective. or to put in the the new language of this market, trump stock. and not a trump stock. get used to those. quick focus on invest iing in innovative medicines and -- >> that's okay. so we can share amazing trading knowledge.
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that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade.
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earlier this week, i got a chance to visit greg hayes at his middletown connecticut pratt & whitney aircraft engine factory. there's been focus on how donald trump persuaded this company to keep those manufacturing jobs at their carrier air conditioning plant in indiana but when owe spend so much time talking about the politics odd trade i think you in miss the point which is
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that this is one of the most innovative industrials around. soon after greg uttered this all-time classic -- >> i was born at night but not last night. i also know about 10% of our revenue comes from the u.s. government and i know tha bette regulatory environment, lower tax rate can eventually help utc over the long run. >> he took me on a walk-and-talk tour of his assembly line and i think it tells you a lot about what united technologies is doing. look at this. where are we on the assembly line? >> the very start. what makes it different is you see these carriages above. we took a lesson from the auto industry and instead of building the engine vertically with people with ladders around the engine moving up and down, we've made the actual fixture here move up and down, sideways 360 so there's no ergonomic issues so you can access all parts of the engine more simply. that will take the assembly time
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about in half. >> and fewer people which is just the nature of progress. >> it's productivity. productive but more highly skilled so the mechanics we have here today, the 1400 mechanics we have on the line are some of the most highly skilled technicians we have anywhere in america. these are complex pieces of equipment. i'd say it's like a rolex watch except it's more expensive. >> walk me through what you're doing here, why is this special? >> what makes this engine so special, we talked about the gear set. you can't see the gear in here but it's a star gear system and that's the gear system attached to the rotor that allows the fan blades to spin at one-third of the speed of the turbo machinery. this engine is shorter than what you typically see for a large jet engine because all the work is being done by the fan up front as opposed to through the machinery. >> shorter means better for the environment. >> better noise, better fuel, better maintenance. >> and when you think about these things, this is not something -- we were not
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possessed by the idea of the environment at one point in our careers but now when we think about an engine and the advantages over others, you need to say this is better environmentally to get that order. >> it's one of those things that's almost non-negotiable. customers expect it. governments expect it. we have a commitment to -- this is nothing new for utc, we've been talking about sustainability goals for 20 years. >> you can't get the engineers you want without that commitment, can you? >> look, you won't attract millennials by doing business the old way. >> greg when we speak about fuel efficiency and saving the -- at least trying to reduce the footprint of an engine. >> carbon footprint. >> tell me what it does for co 2, fossil fuel. >> the key goes back to the gear which, again, all the work in the engine will be done by the fan and not the turbo machinery. at least 90% of the work is done by the fan. what that does is allows us to burn a lot less fuel reducing
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the carbon footprint so think about that that's the 16% fuel burn. if you talk to our customers the airlines that have taken delivery are seeing an 18% reduction in usage out of the gate. we certify 16% but with the design of the aircraft we'll give you 18% better fuel burn. >> that's their largest cost. >> it is 30 odd percent of an airlines cost is fuel, the other third is people. every engine that goes throughout will save the airlines about a million and a half dollars a year. that's real money. >> the airlines that they know they want to go the guy who has this engine so airbus is competitive to get those orders because they have this. >> so this, again, is an engine that has done very well versus the competition. >> if i were boeing i would think to be competitive i would have to take down some of the gt. >> well, there will be reaction. we talked about the new middle market aircraft, they're talking about a new 737-10. it's a very small market at the end of the day.
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you have boeing, airbus and regional parties like embraer and mitt bsubishi. we don't do wide body engines anymore, we do narrow body. >> the narrow body came into focus. unbelievable, greg hayes, chairman and ceo of united technologies, thank you for showing us around. >> thank you, jim, appreciate it. sometimes when brushing my gums bleed. no big deal. but my hygienist said, it is a big deal. go pro with crest pro health gum protection. it helps prevent gum bleeding by
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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) great earnings from a company called broadcom, symbol avgo triggered a tech rally, i gave you more teches to buy. remember, we have to get through this monte paschi thing. i won't minimize it. this is a $48 billion worth of debt bank and if we dismiss it we are just being too glip so let's see what happens monday. i like to say there's always a bull market somewhere, i promise to find it just for you on "mad money." i'm jim cramer and i will see you monday!
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male announcer: the economy is in crisis. many hardworking americans blame wealthy ceos, out of touch with what's going on in their own companies. but some bosses are willing to take extreme action to make their businesses better. each week, we follow the boss of a major corporation as they go undercover in their own company. this week the boss of america's largest trash company, waste management-- a $13 billion business with 50,000 employees and 21 million customers. he is going to trade his executive office and expense account for a hard hat and a bagged lunch.

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