>> it's hemp >> dan >> listen, we have xli, he was talking about the volatility and those options really are cheap i think that's why traders are focused there, but if you want to pick a direction they're even chpethe. noffense to you back here at 5r more "fast." "mad money" starts right now my mission is simple -- to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer! welcome to "mad money. welcome to cramerica my friends, i'm just trying to make you some money. my job is to entertain, educate and teach you. so call me or tweet m me @jimcramer. here we go after a nasty day like today, the dow lost 190 points, the nasdaq climbed 0.56% the top callers, they're back,

and they're coming out of the woodwork and if you're an investor, the most terrifying phrase in the english language is, we're in a top! let me say up front, i don't think this market's peaking. i don't think we're at a top, but the average has rallied so hard so long that it's rational to expect a pullback and every time we get pulled down, you'll be bombarded by this endless and yes, i think worrisome, if not frightening top talk so, tonight i want to vaccinate you against these vociferous top callers by laying out the ten best reasons why the market might be peaking again, i don't think that's what's going to happen, but i want you to be prepared when you hear pundits and portfolio managers make these arguments in a more emphatic, and yes, hysterical way in tone, rather than calm and rational, which will allow you to think about what you should do, some selling, maybe you raise some cash i don't want to spook you. they do. so, what is the number one concern you're going to hear talked about it's going to be the worldwide

slowdown i'll tell you, the imf cut its forecast for global growth, and i get why someone would look and assume the stock market's about to nose dive i get that but as someone who's followed stocks for decades, i can tell you that these imf numbers are lagging indicators stock market is a forecasting machine and we baked in a global slowdown a while ago the important thing is what happens next and this international weakness makes it a lot less likely that the federal reserve will raise interest rates so even though the media may characterize the data as bearish -- and i heard them do it all day -- the actual indications as far as the stock market are bullish second source of top calls, china, deal or no deal this argument is legitimate. if the trade talks break down, that will do a lot of damage to the averages we've seen many internationally oriented stocks lately just soar precisely because people believe that a bargain is imminent my fear is we may not get a trade deal at all, unless both sides desperately need one and as long as our stock market holds up, we don't need one. china might need a deal to

continue to breathe new life into its economy as its market's been going up, but there are some sticking points chin chinese understandably want trump to roll back tariffs as any part of an agreement he is reluctant to do that because they're aen enforcement mechanism. it's a mess, people! however, even if we get a deal, even if it's not that good, i think the market goes higher even if that's a possibility, well, do you really want to panic? remember, nobody made a dime panicking. third, you're going to hear this market's gotten overbought regular viewers know i pay for the standard & poor's oscillator, which tells you when stocks are in overbought or oversold territory anything north of five means it's too late to buy because we're due for a pullback the reading was six! which means we put our buys on hold and trimmed positions from my charitable trust, which you can join at chindlersplus.com club but we're already getting the cure for an overbought market, lower stock prices like we saw today. you don't need to worry about the oscillator unless the averages surged higher again,

and they didn't this afternoon fourth worry, the inverted yield curve. i know we're supposed to be terrified when short-term interest rates cross over long-term rates as it's a traditional arbor picture of recession, but i can't worry that much. the yield curve got inverted because the fed misread the economy and foolishly tightened one time too many, hitting us with a rate hike when every indicator i followed had turned down the thing is we are really heading to a recession fed chief jay powell, who's learned his lesson, will simply cut rates to juice the economy bye, bye, inverted yield curve will those who told you to sell me, inverted yield curve, tell you to buy on its repeal i don't think so the fifth argument for why we are at a top -- earnings season! lots of people seem concerned that the results will be weaker than expected. as i pointed out last night, when companies like 3m and fedex have disappointed, their stocks go down for a bit and then, boom they give us a decisive rally. so i'm not worried about weak earnings if the stocks are bad

that said, i think today is very healthy because it's good for stocks to go down heading into earnings season. that way -- well, let's say they have plenty of room to rally if they beat the numbers. today removed a lot of the froth that i don't like. one more pullback like this before the big banks start reporting on friday and i think we're going to be in very good shape. sixth top call, oil. the presumption is when oil goes higher, stocks should go lower if only that were true stocks and oil have been trading, well, i'd say rallying side by side for ages. so you're going to see that later in the show. you will not believe the correlation. it's extraordinary look, i see, because when the economy's strong, the price of crude rises, they correlate. so, oil can keep climbing for a while, and i'm not going to sweat the program. plus, cars are a lot more fuel-efficient these days, so no need to freak out about gasoline-led inflation, yet i hear it all the time seventh, boeing. hey, make it a class unto itself

this longtime market leader is under assault from every corner thanks to the 737 max debacle. what if we lose boeing as a leader i say we'll find new leaders boeing is a special situation, it's not easily replicated you can't extrapolate to the rest of the market or the economy, so stop worrying about it eighth top call -- overvaluation. i heard this all day i bring out the same ones -- oh, ultabeauty, chipotle, oh, give me a break at any given management, there will be market darlings, overvalued stocks for the near term that might be cheap in the out years. that was the case with chipotle, with ultrabeauty with salesforce. i can go on! but i refuse to get scared about a time-honored concept like overvaluation that's been with us for ages that people try to scare you about. nine -- okay, autos and housing. guilty they're weak the former's plain true, legitimate worry again, there are structural issues bedevilling the auto

industry uber and lyft make the prospect of owning a car less attractive. auto loans have gotten expensive. cars last longer than they used to i can see selling the auto stocks here. they're so darn cheap that i want to take the other side of the trade. i'll ask you, look inside yourself -- do you really want to sell the stock of ford here ford i don't. that's as close to a buy recommendation i've given on ford i'm putting -- i don't know, it's something in my head. how about housing? look, we don't have enough houses i mean, they're getting harder and harder to build. it's called zoning mortgage rates have come down dramatically maybe things get better in the spring, but don't cry for the home own yours finally, f.a.n.g. these stocks have equipped themselves fairly well in 2018 people hate it i wish i never coined it, but i did. the people who have been betting against these for a decade, i'm sick of those people they never get to any of my parties, including friday.

never. i never have them in my restaurants. i don't invite anyone who challenges me on f.a.n.g. anywhere okay have i made that clear i've seen the remarkable rise of apple. okay, reverse day, you were probably happy it didn't probably made me feel bad, it didn't i'm saying it's not that expensive, 15 times earnings facebook never lost the customers that the whole press said it would have to! amazon is crushing web services and advertising. the netflix survey, if there's another survey that says things aren't great i didn't care for the bonnie and clyde spinoff. i fell asleep twice. not kidding, twice and alphabet, nothing good, but it's awfully cheap versus say the consumer packaged good stocks with better balance sheet and faster growth. okay, i do worry about these being a source of funds for new ipos, but the lyft deal and the crunching of the prospective pinterest offering, it makes me less concerned here's the bottom line -- after one of the worst days of the

year, although i felt personally pretty good, i want you to be prepared for all the people who are trying to call a top in this market now you know the top ten reasons why all the blabbermouths are going to say that we're peaking, right? and you know what, look, some of them are true! we could be going down a little bit, but the next time you freak out because one of these, remember that i did this you're the top -- you know, like that it's pretty good, isn't it okay you're the cat's pajamas there and all i can say is now you've seen them and now you know what the enemy is, and it is us can i see -- no, i want to speak to -- i'd like to speak to dee dee. >> caller: yay boo-yah, jim >> boo-yah, dee. >> caller: first, may i please give a big shout-out to my amazing husband, alonzo, also from virginia who got me started investing in stocks -- >> we love alonzo! do we love alonzo in here? yes. >> alonzo! >> very cool alonzo zo

we call him zo i'm sorry. i shouldn't interrupt. >> caller: he did call recently. and we love your show, jim it's definitely the most interactive, educational we watch it every day, so thank you. >> thank you thank you. i need to feel relevant. i need this. >> caller: oh, thank you tonight i wanted to ask you about another one of my favorite things, which is etsy. i am part of the etsy cult following. i love shopping. i love unique everything and i have found some really good finds, especially recently on etsy. so, my question for you is at almost $57 a share, should i make etsy inc. a part of my long-term stock portfolio? >> yes josh silberman and etsy, they are fabulous believe it or not, even with this stock at $8 billion, i think it is dramatically undervalued. i am with you! i think it is the craft malt for the ages, and a twofer, i'm throwing in shopify!

casey in missouri. >> caller: boo-yah, jim! >> boo-yah, case. >> caller: i've been following the show for a long time i started watching with my dad when i was in college. and i just have to say that as a young, female investor -- >> yes >> caller: the spotlight you shine on the importance of women in leadership and management and investment world is so awesome and appreciated. >> oh, wow that's fantastic and we've got a lot of people who aren't supposed to be liking stocks who are in the market the surveys are wrong. welcome aboard. >> caller: we need more of it. definitely so, i purchased domo back in december shortly after their ceo was on your show. >> yeah! i liked him! didn't you like him? >> caller: yes he was great and really inspired me to purchase and since the first of the year, it's done very well. peaked last month and has since pulled back a bit, so -- >> oh, i think we're fine. i always love the fact that it was a utah-based cloud company i think, casey, it's a winner. i like these guys. i thought -- hey, josh should come back on the show.

he was a dynamite guy. and thank you for the kind comments and we've got a lot of sons and dads and moms and dads, the whole shooting match, they're all watching, and that's what we want all right, you may start to hear the top callers. i gave you the list, so it doesn't shock you, except they're going to go, oh, scary, sell and i'm, on the other hand, going to say here's something i'm concerned about, because i am a person of great reason. now, i don't agree with all these, but i want you to prepare when you start hearing rumblings about why you should be scared out of your wits and your pants and all the other stuff! on "mad money" tonight, who says you can't go home? i always liked that song zillow's new ceo is taking over the online retail giant he launched 14 years ago. he's back! i'm eyeing its curb appeal. then, this market has been heading higher, thanks to the moves in tech and oil plays, but after today's decline, i'm tackling the technicals. find out. and as investors seek opportunities to boost the environment in their bank accounts, could an under-the-radar, but hard-nosed

money play about energy be worth eyeing i'm investigating, so stay with cramer >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer #madtweets. send jim an email to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. 300 miles an hour, that's where i feel normal. having an annuity tells me my retirement is protected. learn more at retire your risk dot org.

-it's our confident forever plan. -welcome to our complete freedom plan. -it's all possible with a cfp professional. ♪ -find your certified financial planner™ professional at letsmakeaplan.org. -find your certified financial planner™ professional at&t provides edge-to-edge intelligence, covering virtually every part of your manufacturing business. ... & so this... won't happen... ...because you've made sure this sensor and this machine are integrated. ...& she can talk to him &... ...yes...some people assign genders to machines... atta, boy.

... & you can be sure you won't have any problems... except for the daily theft of your danish. at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & this shipment will be delivered.... all of you. how you live, what you love. that's what inspired us to create america's most advanced internet. internet that puts you in charge. that protects what's important.

it handles everything, and reaches everywhere. this is beyond wifi, this is xfi. simple. easy. awesome. xfinity, the future of awesome. ♪ you know i'm a big believer in management, the decisions made at the top can make or break a company, but good management alone is not enough even a brilliant ceo can't suspend the law of physics, or economics, for that matter just look at zillow. the online real estate kingpin that made a very bizarre decision last year for the entirety of its existence, this company had a pretty straightforward business model. their website provides users with all sorts of information about home values, then they sell ads to real estate agents easy peasy but zillow has a high-quality

problem. they have become so dominant in their core business that growth's become a lot harder to come by. last year, ceo spencer racicot announced that zillow would start flipping houses! >> buy, buy, buy >> sell, sell, sell! >> yeah, flipping houses given that they have a tremendous knowledge on the housing market, he figured they could buy homes and quickly sell them for a nice profit right out of the box i was skeptical about this new business and grew more skeptical as the company reported a series of disastrous quarters last october i told you to sell zillow, even after the stock had been hammered, because the pivot to actually investing in real estate seems so ill-considered to me that i just didn't want to see anyone lose money in the stock. the business of flipping houses is inherently more risky than maintaining an online repository of housing data, plus it didn't make me confident that they started this just after the housing market froze over last year at the time it was trading at $40 and went to $26 over a month and a half

while it's rebounded to $36 today, you got a 10% decline if you got out on my recommendation but a lot has changed since i told you to sell the stock when zillow first reported in february, results were better than many feared and we learned that the ceo suspensing rascoff was stepping down. with rick barton, co-founder and chairman who served as ceo until 2010, taking his place, this guy's a legend he didn't just start zillow, he co-feeded expedia in the '90s, then glass door a dozen years ago. we all love glass door he's been on the board of netflix since it was a privately held dvd rental service. he knows how to transform a business, which is what zillow's trying to do when the news broke, the stock went up to $34 in a single session. however, since then, it's give up nearly all those gains. so, what do we make of it now? is it time to buy zillow now that they broomed the old leadership and brought in somebody wall street seems to believe in not so fast.

the good ship zillow may have a new captain, but i'll tell you, this guy, barton, he has got his work cut out for him, and it's not going to be easy don't get me wrong, i believe he can eventually turn things around he's absolutely the right choice for the job. still, no matter how amazing barton may be, this is a troubled company people, turn-around don't happen overnight. they take time while he's trying to right the ship, i don't expect the stock to do much, meaning there are better places to put your money. i think it's too early to bet on zillow first up, address the counterargument. when zillow reported in late february, they delivered a upside surprise. you had a top and bottom line beat with robust revenue guidance for the next quarter, although the earnings forecast was a lot less upbeat. zillow also rolled out some ambitious long-term targets. over three to five years, management expects the core online real estate division to hit $2 billion in revenue, a 56% increase versus 2018 with ebitda margin climbing to 30% from 16.2% last quarter. oh, good zillow's also planning to reach

a point where they're buying 5,000 houses a month in the real estate flipping division with $20 billion in annualized revenues, and the company wants their mortgage business to originate more than 3,000 loans per month. now, these numbers combined with the management reshuffle caused the stock to spike nearly 25% in a single day, even if most of the gains have now been erased, but i wonder, what exactly was zillow's stock responding to here was it the better-than-feared numbers? after truly terrible quarter in november was it the guidance? was it simply zillow had gotten rid of spencer rascoff, the architect of the company's recent misfortunes considering what analysts were saying, yesterday cowen upgraded it to outperform, raising the price target to 46 bucks their thesis first of all, they believe in rich barton and allen parker, the new cfo. as they put it, quote, new leadership looks well suited for massive change, end quote. these analysts also think zillow's being too conservative

with its guidance for the internet business, talking about 6% revenue growth in the current quarter, down from 16% last quarter, and they don't think zillow will have much trouble hitting the targets they laid out in february. in short, cowen argues that they have a terrific core business and if management can hit their new targets in the housing division, that could represent an enormous amount of up side, even though it also makes the story more risky what about the bear thesis little less than a month ago, barclays went from hold to sell with a $32 price target. even these bearish analysts have glowing praise for rich barton, calling him one of the best executives in the internet with a track record second to none. but when it comes to the house-flipping business, barclays goes on to say they, and i quote, think the deck is stacked heavily against zillow, given macro competencies and challenges in home-flipping compared to its profitable core business, end quote. they make a couple important points here. so far, zillow's bought 686

homes and sold 177 of them they're up and running in seven markets and expect to double that by the end of the year. barclays notes they've been doing okay with home sales but think zillow's building up a backlog of unprofitable inventory. yeah they're currently sitting on 509 homes, and it's the good ones that sell first. the second problem -- they think wall street's underestimating just how expensive the business can get. zillow only wants to buy 5,000 homes a month, then fix them up and sell them? hey, doing that at scale can be very expensive according to barclays, wall street is underestimating the cost and complexity of this move third, they're a little more skeptical about the core business, given that zillow's so focused on the housing side of things so where do i come out here? look, i respect rich barton enormously i've certainly read enough about him to say that. if anyone can make this transformation work, it will be him, but even the bulls at cowen talk about the housing business burning cash through 2023 or 2024 we need to wait a full four or five years before zillow starts making money on this

no, thank you! the bottom line -- maybe rich barton can orchestrate a phenomenal turnaround at zillow. i'm glad he's running things again. but i think this head-long rush into the house flipping business could prove to be very risky and even if it works, there will absolutely be some brutal speed bumps along the way. i like the old zillow, even if it was slowing down a bit, as it was a lot less risky i'm not yet sold on the new zillow, even with a much better class of ceo stick with cramer.

you can understand a lot about the market if you know the leadership and every market has leaders for the past few months, the averages have charged higher with tech and oils leading the way. there are generals, and today they got their heads handed to them hence the broader pullback

so, can they keep it up or will the generals end up being lined up against the wall and shot for the newfound cowardess in the face of the enemy? tonight we're going "off the charts" with the help of carly garner, the brilliant technician with carly trading, to figure out whether tech and the oils can keep climbing after the incredible gains they've already racked up this year. so, let's start with something weird. i mean, this is weird! take a look at this. if you didn't know what these are, this is incredible. daily chart plotting the action in both the tech-heavy nasdaq 100, the 100 largest nonfinancial stocks in the nasdaq composite, and the price of crude oil you wouldn't think these two things would be joined at the hip. nobody ever talks about the technology-oil complex, do they? but over the past 180 trading days, garner points out that these futures have settled in the same direction about 84% of the time hey, listen, just in the last 90 trading days, the correlation rises to a stunning 94%! in other words, oil and tech are practically trading in lockstep

with each other. they both peaked at the same time in october. they bottomed at the same time in december. the one difference is that tech has bounced harder but it's crystal clear these two generals are marching in the same direction, something i've tried to explain to you over and over again, that good news for stocks is when oil goes up and vice versa there are very compelling reasons for this linkage neither the nasdaq 100 nor the price of crude should have been hammered so much in the fourth quarter, like we've told you over and over again. most stocks never should have been down so much in the first place, and that's one of the biggest drivers of the 2019 rally so far plus, tech and oil both benefit from a stronger economy, so when the federal reserve took a more accommodative staps in early january, it created a backdrop where investors felt confident buying tech and buying oil that said, in the long run, it's kind of crazy to expect this correlation to continue, right especially with the nasdaq 100 within striking distance of its all-time highs but that brings us back to the original question, is the run in tech sustainable garner thinks that's a reasonable fear. she also expects a last hoorah

rally to new highs before any significant selling shows up both of these are important. last hoorah and then selling her reasoning -- ironically, in the futures market, big institutional investors are still betting heavily against stocks garner looks at the c.o.t. report, which contains amazingl useful data about how large speculators, major institutional money managers, are positioned in various futures markets when it comes to both the s&p 500 and the nasdaq 100 futures, these speculators are still net short, albeit only marginally, but that's not what you'd expect if wall street was getting complacent i felt good about this as someone who believes stocks can go higher. bears have been fueling the fire all year as the short sellers get squeezed me, stocks go up and they're forced to cover or exit their positions. shorts need to buy back the borrowed stock they previously sold i can always tell you, there's nothing better for a bull market than negativity, because negativity means you've got more potential buyers waiting to be converted to the bullish cause

now that the net short position's mostly crude, garner says we're witnessing a new dynamic. if tech stocks are going to keep rallying, those moves will need to be fueled by legitimate, bullish bets, not just short covering check out this ultra long-term monthly chart of the nasdaq 100, going back to 1999 based on its very long-term upturn, garner could see this tech-heavy index making its way back to its all-time high at 7835, up 3.5% from where it's currently trading, but that's where she says you need to start worrying about tech turning on you. that said, she expects any pullback from these levels would probably be temporary and relatively shallow on the other hand, if the nasdaq 100 can break out beyond its old highs, garner thinks we could get a kind of blow-off top that might take us as high as 8455. that's a phenomenal 11% from here as far as she's concerned, that's the most likely scenario. that's right, 11%'s the most

likely scenario, because april through late summer tends to be a good season for stocks and lots liquid dated their holdings last year and feel like they have to get back in the market i said this would happen, it would go up so much, then come back in, they don't sell if garner turns out to be wrong and the nasdaq 100 breaks down, we have a floor-supported 6550 another ominous floor than down 26%. here's the problem -- whether or not this tech rally has one more leg higher or not, garner says that sooner or later we're going to get a correction, and she expects it to be fairly painful. so, if the tech cohort keeps climbing from here, she recommends gradually ringing the register on the way up to protect your profits so maybe you do some selling here, some selling here, selling here, selling here, in a staged way. you know how i like to do that how about this market's other key general, though? how about oil? take a gander at this weekly chart of the west texas intermediate crude

that's the american number that we all focus on. it shows the cftc's commitment to traders data that i mentioned earlier, the c.o.t. trader's book garner's get a terrific track rod on this stuff. she's been calling for oil to go up to $63 since melting down to the low $40s last year record-long positions in the oil futures is why garner predicted the fourth-quarter breakdown in the first place. large speculators have built up their net long position back to 481,000 futures contracts, but last year the number got as high as 740,000, so you can see this is, you know, the buying's not still where it was before things fell apart in other words, garner thinks the bull could potentially have more buying power to take oil still higher, all right? how about this more granular weekly chart of west texas crude? oil has now rallied more than

$20 from its december lows retracing about half of its fourth-quarter decline garner thinks we could get profit-taking, but long term sees prices headed to $80 a barrel that's actually probably going to -- somebody's going to start selling stocks at that point this tends to be a seasonably strong period for crude. the one hurdle is the ceiling resistance the oil is brushing up against, that $64 if it can jump that hurdle, she thinks it could be smooth sailing to $79, where it runs into the downtrend line going back to 2014 if oil can jump that hurdle, too, then she thinks it could easily make its way to $85 at which point the bears would start to gain an edge. in the short term, garner says it could pull back to the floor of support at 55 bucks, but thinks that's unlikely and you'll want to be a buyer at those levels anyway. bottom line, oil and technology have led this market higher for months, and now the charts, carley garner suggests they're running into some resistance but thinks both groups could have it last one more hoorah with oil having more potential up side.

my view? hey, i'll take it. let's go to ted in arizona, please ted. >> caller: jim, thanks for taking my call i'm a huge fan. >> oh, well, i'm glad you're here >> caller: hey, i was thinking of adding energy to my portfolio, and i was wondering if you think the services area would be preferable to the production area? i was looking at core laboratory, clb. >> okay. i'm going to be -- you know, i can't be more emphatic about this core has been a disappointment you know, david dempster's been on a lot he's a terrific gentlemen, but core does not work at these levels because oil's not going straight up. i have often opined that schlumberger's number, but that's been bad, too so, i'm just not going to let you into -- >> the house of pain >> -- with me. it's not fair. misery does not want more company!

lauren in texas, please. lauren >> caller: hi. so, i wanted to talk about pioneer natural resources, pxd. >> pxd >> caller: yes may of last year, the stock price was $200 a share so, as you're aware, scott sheffield took over as ceo once again, replaced tim dunst, who you actually had on your show in 2017. >> sure, sure. >> caller: so, pioneer just announced layoffs. they're saying it could be 300, but i've heard it's more. >> really? >> caller: so, what is your recommendation stock price today is $149. should i sell my stock or hold on >> here's the thing, i'm never going to say no tosomeone who wants to own oil and pioneer, because pioneer's probably one of the best run along with eog, okay i earlier stumbled on anadarko and on apache. that has made me totally gun shy. and i'm gun shy because i've done a lot of work on these and i've looked at all the stuff that you can find, and i still got them wrong and i'll tell you, if i did

something with proctor and clorox, well, let's say i would have made more money. they may be an odd couple, but oil and technology has helped lead this market higher however, tonight's chartist thinks they could be headed for resistance, not yet, but soon. he thinks we could be in for one last hoorah upwards, so take a look. with stainless steel on the rise, could the energy industry profit off the trend for you i'm talking to a ceo of an underthe radar energy player, hannah armstrong then what will it take for oil stocks to hit a bottom well, we had great questions about it, but i'm going to give you my take. and all your takes and rapid fire in tonight's "lightning round" so stay with cramer.

to 20-20-20. ♪ every now and then, we get a caller who totally stumps with a stock that i don't know much about, and because this is the most interactive show on television, we need to do some serious homework last month, rob in kentucky got me with hannon armstrong sustainable infrastructure capital. that's hasi for all you home gamers when i looked into this, i realized this is a really cool story. it's an investment trust that

puts its money exclusively into projects that fight climate change energy efficiency, renewables and other sustainable infrastructure markets but the core of the do is elegant in simplicity. if you believe climate change is going to be a global cost if you, as i do, reasonable premise, then over the long haul, sustainable investment should take off. hannon armstrong is up and could it keep climbing jeff eckel is chairman and ceo of hannon armstrong sustainable infrastructure capital learn more about his company and his vision for the future. welcome to "mad money" good to see you, sir, have a seat >> good to be here >> we like to have you. >> i like to be here. >> start off by telling us, what are the three ds of the future electric power system? >> decentralization, digitalization and decarbonization. >> these are the vision that jerry brown once traced out to me in 1976 he said it could happen. you're bringing it to happen. >> absolutely. and we've been doing this for almost 40 years. i was doing solar projectsat

hannon armstrong in the '80s and those projects are still operating. and it has over time taken root, but something has happened in the market in the last three years, and it's a combination of incredible cost reductions in solar and wind technology, the emergence of storage, the incredible application of digitalization in the built environment where 40% of all greenhouse gas emissions come from and the nice part of all this is it needs investment. and that's what we're purpose built for is to make those kinds of investments. >> now, one of the things i loved about what you're talking about -- you said that "while we believe strong social and governance policies will improve stockable returns, it's the reactions typically vulnerable to climate change that are most near and dear to you you believe the policies will lead to higher returns >> i think it reduces risk more than necessarily returns. >> reduces risk?

>> so you keep a stable workforce. you keep your intellectual property in the inhouse. you treat people well, they're going to do very well as owners, and virtually everybody in hannon armstrong is an owner in the business on corporate governance, simply, no modifications to governance it's the investors' business it should be well governed those two things are necessary i think the big opportunity and the big miss, frankly, is a really good definition of the "e," the environmental aspect. >> right, right. >> and that's where we have really tried to focus the discussion on carbon there are a lot of good intentions in the environment, but the one systemic threat, we believe, that will change investors' return profile and their risk is climate change so, we are laser-like focused on carbon in all of our investments. >> well, you know it's so weird. there are businesspeople the late jerry fishman who ran travelers, he once explained to

me, climate change is the most important thing. i won't even write along the beach because i see what's happening with the polar ice cap. he was a hard-nosed businessman. why are so many hard-nosed businesspeople averse to saying what we all know is going to be catastrophic for a lot of businesses >> i think you have legacy businesses who have a century or more in the fossil fuel energy it is generally profitable businesses it's hard to give up a profitable business. and until some kind of investor recognition that there is a long-term risk in some of those businesses, is priced into the stock, it's easy to keep going like with this quarter let's look at next year. >> that's a really good point. now, how about the cost of capital for you? are there anybody who wants to give you a break because we want you to win >> no. and our investment thesis is, to be clear -- and this is the primary takeaway i'd love to have your listeners focus in on. >> sure. >> is investing on the right

side of the climate change line is going to produce terrorist-adjusted returns we're notlooking for subsidize return we're not looking to sacrifice return this is really hard-nosed calculation of where risk and return lies in a future defined by climate change. now, we issue green bonds. we call them sustainable yield bonds. and the green bond industry i don't think has matured to the point where there's a pricing advantage. some day in the future there may be we'll keep issuing them and we'll keep certifying them with our carbon count metric. but i think until there's a very clear metric on the carbon count of a bond or a stock, yeah, greenish things will trade at about the same. >> all right, now you used a term that i think i want our viewers to get from this the behind the meter as opposed to grid-connected assets two different things you like one more than the other. >> we do and think of the electric power system as power plants that are

generating energy. they can be nuclear, coal, wind or solar transmission line. and then it gets to the customer premise. >> right. >> so, everything up to the customer premise is grid connected. the economics of those assets are defined by the price of natural gas. and with frac gas -- >> right, right, centralized natural gas, okay. >> behind the meter is a different aspect it's where we are investing in energy efficiency, like lighting, heating, cooling upgrades. >> right. >> solar, solar plus storage those investments are defined more by the retail price of electricity. if there's higher possible economic return, better economics for us. >> okay. one last question. you are in the end a hard-nosed businessperson who's doing the right thing in my view, but the green new deal, that doesn't seem hard-nosed, although it seems like the right thing what do you think? >> well, i think it's been wonderful to have the discussion pick up on climate change again.

>> right. >> it's been conversational desert for the last two years, post paris exit. i've been a student of public energy policy for 40 years, and i think it's time we did the one thing we've never done, which is price carbon carbon tax and dividend it don't let the government get it. get the money back to citizens but start to capture the -- start to internalize the socialized cost that fossil fuel interests are spreading out to everybody through climate change and other problems, and internalize it let them privatize the cost of the impacts of carbon. >> look, i'm glad you came on. i've been telling everyone, 2019 is the year where i kind of just say, listen, we're going to talk about this stuff. >> good! >> and i like to have it so companies make money, but we are going to talk about it, no matter what, because i'm not going to let my legacy of this show be that all i thought about was a dollar sign represented by a man. i thank you for what you do. >> thank you, sir. >> that is jeff eckel, president

and ceo of hannon armstrong, hasi good yield, very solid balance sheet. take a look at it. "mad money's" back after the break.

♪ cramerica! it's financial literacy month, and cnbc wants to know what you're saving up for here's what i want you to do right now. take a video of yourself showing us what you're saving up for post it to twitter and mention #savingupcontest in the caption. #savingupcontest that's it! at the end of april, we'll announce the ten most creative videos go to cnbc.com/savingupcontest for contest rules and details. boo-yah! and now, and now, it is time it is time for "lightning round. what is that it's rapid fire. >> sell, sell, sell! >> buy, buy, buy >> then the lightning round it soffar are you ready? i'm going to start with phil in new jersey phil could be the governor. governor phil! >> caller: boo-yah, cramer big phillies boo-yah to you. >> yeah.

what's up? >> caller: wanted to ask you about mcdonald's i bought it in the 180s, and i know it looks like it's going to break out at $100, but is it a good buy at this point >> i think it is still a good buy. i think he's doing a good job. i know i would have told my kids, he has not done his best to clean up the environment, but i think he's trying. i like the stock let's go to john in new york john >> caller: jimmy, boo-yah! >> boo-yah, john. >> caller: thank you, sir. thank you. i got my "mad money" toy, socks on, staten island. i got magurna. >> i like that pulled up in san francisco, they've got game lauren in -- >> come on, no, no, no what >> caller: okay, here we go. i've been ringing the register too much on illinois toolwork. >> no, ca-ching, ca-ching, it's guiding down one more bill in georgia. bill >> caller: yeah. >> bill, you're up.

>> caller: this is bill. >> huh what's the stock >> caller: hello, this is bill >> what stock? >> caller: i'm calling about twlo i'm retired-- >> twilio! we love twilio we don't care! and that is the "lightning round" >> announcer: "the lightning round" is sponsored by td round" is sponsored by td ameritrade ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education um- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.

all right, you know what drives me batty? even though the price of crude

keeps ticking higher -- it's now $64 a barrel, the highest level in ages, even with a tiny pullback today -- many stocks in the oil complex can't get much love i often ask myself, is this the moment to say, you know what, everyone hates them! so, they hate them so much that, can you finally buy some for a major rally? but unfortunately, i felt that before middle of last year, i thought oil had the chance of going to $80. sure, the trade war was bad for congress, but the economy was going well enough and i thought could drag prices higher unfortunately, we got weakness it real estate, construction, housing, retail, then the next thing you know jay powell gives us one right in the kisser yeah, federal reserve raises interest rates into a slowing economy because he was too focused on employment and hadn't done enough homework away from that, crushed the price of oil but once powell realized the error of his ways and said he was done tightening for the moment, perhaps for the year, crude has come back with a vengeance. there's enough buoyancy, i'm wondering if i buy oil stocks.

carley garner told us earlier that she could see $80 for crude. i felt this bellishness last night. first i got a call from dean in washington who wanted to know whether to buy or sell kinder morgan you never get a top when people are only considering whether to buy or buy, buy, buy stocks tend to peak when people want to double down. however, the pipeline has played such nasty stocks to own, so with no real up side even as the underlying companies are making fortunes because they don't have much growth. people have lost their fortunes with financial advisers who told them to keep put in these stocks their dividends became less attractive, but unlike the utilities, they haven't snapped back one when the rates are going down kinder morgan's rich kinder has put millions towards the stock in the open market, so i simply said hold onto it, wishy-washy i just didn't want anyone else in the house of pain that is the pipeline space then i got a call from mike in

massachusetts, about hemric and pain with a 4.8% yield this is a great company, well run, conservative management i wanted to say, please, buy some more, but then again, we own schlumberger from my charitable trust and it's been killing us 4.32% yield, no one's biting on that one, so a said have to take a pass hp. not worth it as i lacked over the charitable trust portfolio, there was anadarko that missed the quarter horribly in a market where everything else but the oils when they missed stocks went up! i'm infuriated the only oil stock has been working for us is bp, because all of the big integrators have been doing well and this sports a 5.4% yield i'm tell you this for one reason, when you have a defeatist mind-set like i do, when you've watched oil stocks go nowhere but a huge run in the crude, maybe that's when you need to start thinking maybe i have to start buying them. admittedly, i don't have the heart to do so, though i hold these oils because i'd snap if i sold them and they went up without me

but that's another thing you tend to hear at the bottom in the end, though, sentiment isn't enough there needs to be more to it oil will have to reach some level where it starts stirring real interest. it's not there yet maybe we won't get there until every last bull kpit late. including me including me stick with cramer. ♪ including me stick with cramer. memories. what we deliver by delivering. oh, wow. you two are going to have such a great trip. thanks to you, we will. this is why voya helps reach today's goals... ...all while helping you to and through retirement. can you help with these? we're more of the plan, invest and protect kind of help... voya. helping you to

and through retirement.

tonight i really want you to tune in to "the profit," my roots. marcus returns to lebanon, the place of his birth, for the first time since he was adopted 44 years ago it is amazing! 9:00 p.m. eastern and pacific on cnbc i smell a chip downgrade i know one when i see one. it's kind of happening there will be some people taking profits tomorrow we're not done with the selling yet, but at least you know what to expect. i like to say there's always a bull market somewhere, i promise i'll find it just for you here on "mad money. i'm jim cramer and i'll see you tomorrow

>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ peter ferreira, and dennis iannoti, who are seeking an investment for their pumped-up nut butters. hi, sharks. i'm neil cameron. i'm peter ferreira. i'm dennis iannoti. and we're... all: nuts 'n more. we are seeking $250,000 for a 20% equity stake in our company. good ol' p.b. just got a face-lift.