>> [ inaudible ]. >> brian stutland. >> i still like netflix, but i want to own a put, so buy that april downside split. >> mike khouw. >> i like5ú0g■ netflix, too, bu think a put spread is a less expensive way think there's thi(l much need to flankly. and in lulu'sjf case i like cal spreads going into earnings. >> that dom&mo=7ç it for us. "mad money" with jim cramer 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. ♪ haz,clujah ♪ other people want to makesn■ friends. my job not to entertainçó but educate, teach, put in perspective. call me. 1-800-743-cnbc. tweet me @jimcramer.

we are back into the european hostage game where if a european bank catches aw3 cold we can gea pneumonia. but unlike europe we give up thatxd pneumonia the moment the markets close, which is how you can end up doing pretty darn well after a horrible çóopening. our÷■ market opened down huge because of worries aboutçó the health of the german colossus tq deutschebank. then we rallied hard with the dow onlyq finishing up 132 poins s&p gaining, nasdaq advancing .31%. quite a comeback from what looked like a real bad e1friday. i think some of this is because deutsche bank is not nearly as bad as credit suisse but some of it's because hey, we don't live in germany.çó we know our traders are worried about a credit suisse situation where you leave on friday and the bank's functioning with a $17 billion valuation and $2 stock and then you come back on monday and theok stock's down 5. ts bonds are wiped out. the whole bank isñi owned by ub thanks to a government-assik ! shotgun wedding. which brings us right back to our game plan for next week.

our markets are fixated on the especially first republic bank which has been one of the worst could easily go down a lotçó mo from its current perch at 12 bucks.ht■ people continue to lose confidence in the situation it could end up like siliconçó valy bank which went be to zero. the thing is we don't know a lot about how first republic's really doinge1 and that really rankles me. we just3w■ know it's a terrible mismatch between a deposit base u to leave and its investments which it's really stuck with which is the kiss of death for svb signature bank and silvergate and they're all gone. i thought first republic had a chance of getting out of this thing whole when i heard a confident fed chief jay powell speak on wednesday after the tuesday open marketq committee meeting. but then everything was unraveled when treasury secretary janet yellen gave an ill-advised statement about not havingfác an all encompassing p to save the banking system baez know it. she went out all populist. she didn't bother to educate co#sess that it really doesn't count if the depositors are

bailed out as long as you wipe outt( the shareholders and bond holders. which happened withfá silvergat and -- with silicon valley bank. it happened with signature. only depositors were bailed out. that seems like a much easier sell politically. that's disappointing. yellen tried to retract yesterday but the damage was done. quickly took another leg down to 12. remember banking is a business of confidence so words really matter much more than when things aren't good. especially when they're coming to the treasury secretary who should certainly know better.e9 there are no free passes on this show. okay? there is some education to be done here. this crisisxd is notq at all analogous to the financial cataclysm of tws to 2009. back then the banks made a ton of bad loans, they brought it oq themselves. this time it's about liquidity. p many banks likefáe1 first repc took in huge deposits during covid and then invested them in incredibly safe bonds but still they dropped hard in value once

the fed accelerated its rate hikes. they were foolish to put so much into -- really all this deposit money into long-term debt. i wouldn't go so far as to call it reckless letñi alone -- make feckless whichñi fits best and happens to rhyme.q we come inñi on monday and this fibs%■ republic situation is resolved regularly we're going to start with our own pneumonia. if the common stocks and bonds are preserved i think we have another -- another positive çór. what really happened with silicon valley bank or signature ñ those threeht■ now well-known ne'er-do-wells that were seized, i think we can get some insight from thoset( closus from michael barr. the senate's vice chair for supervision gets hauled in front of the committee onñi wednesday wednesday. i expect withering criticism some of it maybe even deserved. what matters to me is do we have a way took stem this stuff? because it getse1 to the good banks if things aren't stopped right here.4,a8the ones that dig

wrong. i'mw3e1 not sure.ñi but if we were to find out the fed has somet( sort of blueprin this market may go higher. i don't think we have one yet. i have an idea, though. why not install ai and get second by second data on withdrawals? do you know now they're getting next day data? no wonder they didn't c$h it. it's too late in this world where you can punch a button and billions go from one bank to the next. tuesday's busyñr on the earning front. in the morning we hear from mccormick the spice company which has been dealing with price inflation it's been a tough run for them which is surprising xwichb how high quality the company is. so)÷ blue companies like hershey, mondelez, conagra,e1 campbells andfá japgeneralfá mi. tzxu) recenti] inability to do has not inspired confidence. we also get results from walgreen'sok and i'm really worried about this one. i don't know if they'ree1 planng to dive more into health care by aacquiring summit health will be

enough to give this stock a boost. one of the worst performers among retailers with decent balance sheets. here's what we need to hear about, the stealing, the pilfering and the locking. i'm simply -- you know why i stopped going to my walgreen's? because it's such a pain in the neck to buy e1anything. practically everything you might want is under lock and key. you need to wait for an associate to come help you out. at this point i've given up. easier to get this stuch from amazon. comes the next ■kday. which at this point for me is almost as fast as you're going to get it at w3walgreen's. after the close two of the most disliked stocks report micron andi@ñlululemon. micron's a commodity qqnemiconductor company it's be down and out for ages because of anxd inventory glut. their ceo tells us the glut'sxd almost over. this thing could go to 80 bucks. lulu i know the last quarter wasn't perfect but this may be the best retailer going. i like it here. i'm a buyer. we're also worried abou4 being too hot but that was what was behind the fed raising rates this week despite problems in the banking system. who can help us figure this out?

i don't know. you know what i like to do. i like companies.e1 i like stocks. i like companies that can fill us in on what's really happening. all right?t( sintas. largest retailer of uniforms to small and medium sized businesses around the country. paychex. the largest payroll processort( for that same cohort. they both report wednesday morning. i bet they can give us a lot better insight than these washington numbers we have to deal with that really don't tell us much. we're going to get a slowdown? they are going to see it first. all right? after theñ from rh, the old restoration.x hardware. i like th2l■ company but it's been puppetingfá up some suboptimal numbers. accounting issues, didn't inspire confidence at all. if anyone wants to take a longer-term view here you can buy some but i have no confidence whatsoever there will be a turn this quarter. i know that people likee1 me to call -- to call in the "lightning round," they want 4n reassure themselves all the time on the oldies but goodies seeking my backing. i say do not buy the stocks of any companies losing money. they are oldies but baddies.

chief among them blackberry which has proven to be one of the biggest losers of the generation. with the stock 3 bucks and change. i have no opinion. you know what i would say? zbloent buy. >> finally on friday john williams very smart guy president of the fed speaks and he might give us more insight into what the fed expects to see now that this mini banking crisis may be causinge1 credit problems. he's cerebral, he's thoughtful, maybe he can just calm things down. bottom line, steel yourself for next week and maybe pray the government finds a solution to the run on first republic this weekend because we need all the help -- if it e1doesn't. but a lifeline. we're going to come here and sae over. rick in wisconsin.fá rick. >> caller: hi, jim. thanks for taking my call. >> you're quite welcome, rick. >> caller: yeah. my question is i have 850 shares of procter & gamble stock that i've held on for over four years

now. recently in the pastñi period o time it's lospk 20 points. the stock is a nice dividend stock but it's lacking growth lately. my question to you is should i sell some, all or hold it? >> you offered me sell some, sell all or hold it. to. you know what it is? >> buy buy buy! >> i think procter's very expensive. we had our morning meeting this morning. if you're a member of the investment club you get to go to our morning meeting with me and jeff marks. and i said procter & gambleçó i the stock to buy in this particular environment. the answer is ie1 don't know ho much is in youre1 portfolio but i've got to tell you buying procter's the right way to go, not selling it. it's too great a company and it will do really well in this environment where raw cost go down but they haven't had to cut level. let's go to chuck. >> calling from boynton beach, florida right next toe1 delray >> did you see my -- you didn't come to -- bottle signing laste

week for mezcal. down there ine1 boca. not that far from you. i leek boynton. values are going up there. i like boint as much as i like my good stocks. what can i do to help you? >> caller: i want to ask you about an oil stock. d)q first is ie1 want to know i you think the dividend isxd sustainable. and secondly i want to know if you agree with the ceo who stated that he thinks oil is going to reach close to $100 a barrel by the summer.e1 and the stock is pxd, pioneer natural resources. >>e1 you know scott sheffield sd that. we do have -- later in the e1sh. i believe he shares the belief oil could go higher. pioneer, it will not stay the same. if oil keeps going down they'll have to cut the dividend again. investment club. we bought it just thee1 other d. why? because it went all the way down to 180 and change and that's enough is enough. i think scott sheffii ñ i'm banking with and oil's come down

way too much and that is my favorite growth oil. we have to keep our eye on the banks this weekend because they could dictatee1 how we open on monday. we need to put this first republic to bed one way or the other. on "mad money" tonight with questions surrounding its ability to quickly cut costs while transforming its business is ford built ford tough? i say buckle your seat beltsi] d take you behind the wheel. then the fed speaks and the market listens. but is something getting lost in translation? i'm breaking down the post-fedç meeting. they're very, very eye-opening. fresh signs the distress of the bank sector weighed on the commodities. but is the move warranted? we just talked about pioneer. what you've got to do is bring in rusty brazil to find out more. stay with cramer. >> announcer: don't miss a second of "mad money." have a question? tweete1 cramer. hashtag madtweets. send jim an e-mail tofá madmoney@cnbc.com. or give us a call at

1-800-743-cnbc. othing? head to madmoney.cnbc.com. lily! welcome to our third bark-ery. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business.

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what the heck are we supposed to do with a stock like ford motor in this kind of environment? here's a stock that gave us a tremendous run when ceo jim farley first came in in 2020.ñi finally brought in a car guy to run a car company. but after surgingw3vol to 26çó year -- it's been a bow wow. we bought ford for the charitable trust not long ago. we sold a lot higher. it's still down 55% from its highs, which is not good. it's juste■ one thing after another here. first the semiconductor shortage. supply chain disruptions. they had surging cost pressures, w!■ some operational issues, pension problems.

much as i do like jim farley, this show's about making money not about making friends. my patience is starting to wear a little thin. as you could expect. as everyone's expecting. if ford can't deliver the last couple quarters we might have to couple quarters we might have to dit#iq stock for the trust. even though i love my/t maveric pickup and my daughter loves her sweetq blue bronco. that's why i pay close attention to ford's so-called teach-in yesterday, basically an analyst and investorq event that sounds and investorq event that sounds like a vietnam war the message i got yesterday is ford knows itñr has a problem they're not in denial they're trying to turn things around. specifically a year ago the company announced a vast restructuring effort. rather than dividing itself into different divisions based on geography the whole business has been reorganized into three simple segments. there's ford blue for regular gasoline andq@á%ju)q vehicles. there's ford model e for electrics and software. then there's ford pro forr vehicles.qí@r(t&ho yesterdayq theye1 updated resul for these new segments.

they rolled out the financial forecast for these groups while also explaining how they'll encourage accountability. excuse me. okay. so what did we learn? cial result. they gave us a better read on each of these new divisions. and this is really important. ford pro and ford blue didxd grt last year but these results weró offset by enormousq losses at ford model e wheree1 the earnin before interest, taxes, no losses let's call it, were down more than 2 billion. that's anq awful lot. management also unveiled their segment-level forecast for 2023. again, ford blue was good andi] ford pro looks fantastic. they expect it to nearly double in profitabilityxd this year. now talking about losses as much as 3 billione1 this year disappointing no matter how you frame it. when ford's ceo -- cfo john lawler -- he wase1 on "squawk b" yesterday morning. he described the electric vehicle business as theq sort o internal startup, gradually scalingsá up.

but they're committedlplp to geg that business to profitability in 2026 with an 8% margin. that would be amazing. at the teach-in they went into more detail about how that could happen. it's about economies of ñiscale. it costs a fortune to build up the electrical vehicle business. but eventually i believe it's going to be profitable. unfortunately it's not happening anytime soon. and this market isn't in love with unprofitable growth, even when one division is buried within a larger enterprise. at the same moment management went into great detailozabout hw they plan to cut costs at their old school auto businessfá ford blue. kind ofu■q blue, the breakthrou miles davis album with coltrane. they then went into accounting changes that are too boring for basic cable. this is something management transparency in business so they can delivert( bette:■]ok resultl learn nor about this at ford's capital markets day event in may. listen, i'm glad these guys are n order. ford hasokñ established an unfortunate reputation asi] ae1 company that never seems to be able to get its costs low as it

should orwfñ generally be as profitable as it should be. before farley took over they didn't even seem that committed to profitability. they were happy to make cars all over the world even in areas they $ there were far more of them than expected. i don't know if all these changes can help turn things around é5u the at the very leas1 if ford keeps dropping the ball have ap(r picture of why that's happening. in the end i'm still willing to stick with this for a while longere1 i've been very impress wit rford's first few electrical ofrpgz especially the f-150 lightning. which has a potentialçó to take electric vehicles mainstream in a way that nothing elsex least nothing we've seen before. including by the way from what musk has on the drawing board over atqe1 tesla. we also already know the electric business was losing money but the commercial andok otherko■ business76o -- i'm goi to -- what iw3 like most about yesterday's teach-in was the factok management kept saying or

and over again that thd[ understand the problem. the new reportingok structure exists to make sure everybody at the company's doing their job, as bill belichick would tell us. so going forward what do we see? ford model e needs to sell like crazy i> %ii"'rá their 600,000 unit production run rate exiting this year. in other e1v there now but if they can gsh the year at that run rate that will be really ñrextraordinary. ford blue with7ez those mini co cuts also putting up some growth. and ford probably needs to do both andu■ they need far fewer people in ford blue. the next couple months are crucial for the stock. we'll get ford'sñi first quarte earnings on may 2nd. then they'll hold that capital markets day on may 22 7bd where we'll get even more detail. let me say this, i do have concerns about the entire auto right . you better believe banks will get a lot stingier after offering auto loans in which -- the autos typically donn do well in a recession but i also have strong conviction that if ford can pull off this pivot the stock will eventually look like a bargain down here at 11 and change. particularly with that nice yield. if they can't pull it off i

expect the down side to be much less significant because the negativity being baked in and because of the e1dividend. bottom line ford's a company we need to watch closely. i'm just glad thefjdmanagement' also on the case here. the reorganizing the business precisely to make it easier to keep an eye on things that could go wrong. if they can finally deliver, wow, thise@sone's waye1 up.fá but you may need nerves vr steel to stick with this one and you have to be ready to throw in the towel if management cannot execute in the not too distant future. one can only wait for soe1 long befv=te1c you're buying the dou not ford. "mad money's" back after the >> announcer: coming up, powell% plays the tune and your favorite stocks march to the beat. unclip the sheet music. cramer shares notes. next.

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on wednesday after the averages fought valiantly to go higher in the immediate aftermath of the federal reserve's latest rate hike they eventually rolled over and plummeted to the close partly because treasury secretary janet yellen made some discouraging comments about how she plans to handle the banking crisis at the same time that chief jay powell made some encouraging comments about the way he was going to handle the crisis. i mean, come on, guys. get in the meeting and get it together. after that fed meeting what was so interesting about it was more or less what we saw coming. powell was actually a bit more hawkish than i expected. given that three banks went down in a row and many others receiving deposits flying out the door. he acknowledged the banking crisis could deal a true blow to inflation. he also didn't give an indication that he's done tightening. and by the way, the fed does these thought plots whichshow show their own interest rate expectations. they actually showed interest rates going higher. that said even though the fed's projecting a higher terminal interest rate the funds futures

are trading like they're we're going to see rate cuts later this year, during the summer. frankly i find it's a little confusing. we sold off on wednesday. we did a small comeback yesterday, doing pretty good today. in the morning dragged down by europe's financial sector and after the european sector closed boom as i said at the top of the show things loongd. looked good. still we're starting to see a pattern here. the market's going crazy right after the fed meeting but when you look over the data from the past year there's a real issue with the pattern in ways the initial moves reverse themselves later on or stay the course. we've been here before and it all started a little over a year ago when the fed raised interest rates for the first time in mid march. we've now had nine rate hikes in just over a year which is nupts by historical standards especially when you consider there were so many that were double or triple rate hikes. so now we've had a couple of days to take a breath and digest all this week's fed speak let's take a breath, have some tea,

you know, i want to take a look at how the market tends to behave in the aftermath of fed beatings because that can give us some insight into where we're headed and i want you to have a future. i don't care about the past. remember, where prices are going not where they've been. dating back to march of last year just before the tightening cycle began the s&p 500 seeing a large move of either -- no more than 1.15% in either direction. so let's call that the baseline. we've had fed's decisions nine times during this period. and on seven of those occasions the market had a larger than average move. the only exceptions were mid december and early february during that brief period where we thought the fed finally had a handle on inflation. those four first rate hikes were actually well received because back then everybody knew inflation was out of control. so higher rates were seen as inevitable. if anything she was frustrated with jay powell for being too slow to tighten. as inflation remains stubbornly high while rates went higher and higher the market's reaction to the fed meetings got

increasingly negative. but i'm not interested in the initial reaction. i'm interested in what happens next after the initial reaction. and when you look at the market's reaction after that first wednesday -- remember the announcement, then thursday and friday following the fed meeting something very interesting happens. after the market's initial move in the first three days we usually go in the opposite direction. the opposite direction. yep. but it's the initial move is almost always a head fake. after going over the market's response to the previous eight weeks -- eight rate cycles we found that seven out of eight times the market reversed itself over the following month. the only exception was the second rate hike in early march -- early may where we sold off hard during the first three days and then we were basically flat over the following month. when you zoom out three months the initial move reversed itself every time, at least for all the fed meetings of this cycle. i want you to digest this while i get my voice back for two seconds.

shameless, huh? it doesn't seem to matter what direction the market moved in, positive or negative. it almost always seems to get repealed. the pattern's just too overwhelming for you to ignore. last march starting right up here the s&p 500 reacted positively to the fed's initial rate hike, running up 5% over the first three days. then we plunged 18% over the following three months. in may we initially sold off, then rallied slightly over the next three months. in june we had another strong sell-off followed by a 5% rally over the following three months. yeah, you've got to buy these, huh? in july we got a 5% initial rally but over the next three months we ended up down 5%. well, we've got to buy them over when we've got to sell. the denver rate hike was brutal causing a 4% decline in the next three days. but the s&p rallying over the -- what a buying opportunity that turned out to be. the november fed meeting resulted in an klein of more than 2% which turned out to be dead wrong. s&p then surged 10% over the

three months after that. again, that was a great opportunity. similar story in december. we initially got hit down 4% but over the following month the s&p was up 2.8%. while we don't have have enough data to run the same analysis in the february rate hike i can say this market reacted with a 1.5% gain in the initial three-day reaction period but since then the s&p's down 4.6%. once again the reaction seems like it was dead wrong. we're well on our way to being 8 for 8 with this pattern. while this initial reaction to the fed's rate hike wednesday, things may feel grim but there's a clear pattern here. the initial move always seems to reverse itself over the next one to three months. i have no idea as i sit right here, i have no idea if that trend's going to continue to hold. at a moment where it feels like we've got new emergencies popping up practically every day, especially the banking sector, it feels dangerous to think we're going to rally over the next three months just

because the market's initial reaction to the fed meetings seems wrong. it may happen again, it may not. i thought this was important, though, because you can see people just were so -- i remember these days like it was yesterday. how upset people were. they were so upset. here they were so joyous. here they were so down. this market, you can't look at it like that. you've got to just deal with the fact that the initial reaction's been wrong. that's the takeaway. bottom line, i wanted to call this pattern to your attention to give you some perspective at the end of a week full of fear. we've been here before. i want you to take a deep breath, drink some tea and remember the initial reaction to the fed's rate hikes has been wrong every time over the past year. maybe this week's sell-off simply won't be that meaningful just like the previous reactions. maybe as history shows you should take the other side of the trade. those who did right now are feeling pretty darn good. let's go to carlo in florida. carlo.

>> caller: hello, jimbo. how are you? thank you for taking my call. >> i'm coming along. thank you very much. >> caller: i'm one of the original members of the club and i was wondering why don't we include sofi in the membership, in the group of stocks? they now insure after $2 million of deposits. you know anthony. you should invite him to the show once again. i think it's a great company to have in our portfolio. what do you think? >> well, carlo, you know, i am a big buyer of anthony noto, tony. i do feel that the bank did a lot of wise things this week. but i'm looking for companies that i don't really like the financials. as you know because you're a club member. we've got one one straight up bank and a bank that's also more feebased and they're both doing terribly. and i have to account for myself and i have to as you know, because you're a club member, i have to do as best as i can. and right now one of the better things i've done is to have very few banks. but one of the worst things i've done is to have any banks at all. let's go to tyler in california,

please. tyler. >> caller: big boo-yah from california. how are you doing, jim? >> i sense a familial boo-yah, which has always made me happy, particularly at the end of the week. how can i help you? >> caller: awesome. as a content creator and the tiktok ban looming what do you think of snapchat? >> no, we're going to buy meta. i think by the way the way congress handled tiktok i have no doubt right now that unless the chinese communist party throws in the towel we're not going to look at a lot of tiktok. we'll be looking at reels. i've got to tell you we switched over to reels from tiktok. we had a pickup. so what do i know? i'm a sample of one. but i relieve that mark zuckerberg's spending a lot of time on reels and it's only a matter of time before it's better nan tiktok anyway. and 150 million people are on tiktok? how many of them vote? a million? because they're like 12. over the past year we've had some big reversals -- i know. stop it. we've had big reversals after a fed meeting. so stay patient. don't buy into all the

negativity that's out there. much more "mad money" ahead. oil's down so, what's up? i'm sitting down with rbn's rusty braziel to find out. we'll find out what it means -- and all your calls rapid fire in tonight's edition of the "lightning round." so stay with cramer. i think i'm ready for this. heck ya! with e*trade you're ready for anything. marriage. kids. college. kids moving back in after college. ♪ finally we can eat. ♪ you know you make me wanna...♪ and then we looked around and said, wait a minute, this isn't even our stroller! (laughing) you live with your parents, but you own a house in the metaverse? mhm. cool...i don't get it. here's to getting financially ready for anything! and here's to being single and ready to mingle. who's ready to cha-cha?! ♪ yeah, yeah ♪

there's a side effect of this mini banking crisis. the price of oil has crumbled. from around $80 less than three weeks ago to $69 and change today. that's up from lows of $64 earlier this week.

hey, it makes sense when banks are worried about going under they lend out less money which slows the economy and reduces demand for energy. but i wonder if that's the right call this time because we've got so many cross-currents. the sanctions on russian oil with russian supply pumping like mad. biden administration's attempts to refill the strategic oil reserve. when the situation's complicated you know what i like to do check in with the best energy analyst in the business. the one who is by the way not biassed in any way shape or form. that's rusty braziel. he's the founder equity and chairman of rbn energy. rusty, welcome back to "mad money." >> jim, good to be with you again. thanks for having me on. >> well, rusty, it's always great to talk to you. a little more than a decade ago you told me one of the greatest stories you're ever going to hear is production is coming back, that we may even get to the point we're self-sufficient. no one believed you and it all cape true. but now i'm starting to hear really good people even like the pioneer ceo scott sheffield say

maybe things have peaked. i hesitate to think it happened that fast. is it the end? >> no, it's not the end, jim. we're certainly not going to be growing at the rate we were in 2018, 2019, the boom days. that was 15% a year growth. then when we had producer discipline kick in and esg issues kick in that slowed things down and covid just shut the whole thing down for basically a year. but things have climbed back and they're going to climb back. our production forecast, we're looking at somewhere between 1.5 and 2% a year for at least the next five years or so. so it's not -- it's not crazy anymore but it's healthy growth. >> okay. that's good. now, i read you every morning. and you know that because i e-mail you about a second after i get it. and for instance, i've been

reading a lot about new mexico from you. last week was about utah. i'm starting to hear about places that may have had oil that went -- that aren't so good next thing you know you're going to pennsylvania. i don't know. but it does seem like our technology is such that we should be thinking of new mexico as a possible winner here. >> new mexico is already a winner. has been a winner. new mexico production growth is good and that is because like always what we've seen for the last ten years is that the more producers drill the more they figure out how the play works. and when they figure out how the rock works they figure out how to produce more with spending less money. that's definitely what's going on in new mexico. >> if that's the case it's telling me the gaining factor may be ultimately pipelines. you've been doing some great stuff about pipelines and lng and pipelines trying to get oil and gas all over the place. but we have failed miserably getting it to new england, haven't we? >> it's been a really tough

situation for new england. when you look at what's happened, they've really boxed themselves in. they've shut down coal plants. they've shut down some nukes. which you know, means that they need a lot more natural gas. and natural gas as a fuel to generate electricity has increased from like 10% 20 years ago to 50% today. that's not a problem during the summer, during most of the year, because there's enough pipeline capacity to get that much gas into new england. the problem happens when it gets cold. when it gets cold the natural gas has to go to the residential and commercial customers, which means there's less gas to go to power generation, which means power generators have to use something else. so take an example, what happened christmas last year. got cold. there wasn't enough gas for power generation and they ended up using oil to generate

electricity for about a third of their requirements in that area. i'm sure that's not what they planned but that's certainly the way it happened. and the more renewables they add to the generation mix in new england, the worse the problem's going to get. >> well, people start realizing that, the politicians better realize, there will be a lot of upset people. >> now, we just showed a chart of natural gas. i think it may be unnaturally low at two bucks but i look to you for that and i know it's not your job to say it's going to go to six, seven. not going to put you on the spot like that. but it seems like -- this request week when oil went to 64 these seem like lowser levels to me vs. unemployment where it is vs. the world where it is. maybe i'm looking at it too optimistically, though. >> no, the -- this is a weird year for natural gas. so what happens is that natural gas production has continued to increase. we're getting more gas per barrel of oil that gets produced. it's called a gas to oil ratio. there's more gas coming out of the ground for each barrel of

oil that gets produced. and at the same time the -- the primary market for natural gas increase in growth is the lng market and this year is the first year since we first started exporting lng in 2016 that we're not adding new export dock capacity. you've got production increasing. >> oh. >> you've got dock capacity that's not increasing. so you've got an oversupply of gas. there's a lot of gas in inventory. price goes down. it works exactly the way economics 101 tells you that it ought to work. here's the happy news. the happy news is starting next year and for several years to come there's a lot of new lng capacity coming online. gas prices are going to be increasing starting next year and probably increasing after that. i'm not saying we're going to

get back up to 7, 8, 9, $10. but you don't know because something important has happened to natural gas in the united states and that is we are now much more tied to what happens in the rest of the world. and what that means is volatility. when crazy things happen in the world, crazy things now can happen to natural gas. and of course now it's also become a political football as well. so you add that together with what's going on with supply-demand in the united states and prices are going to be higher and prices are going to be more volatile. >> that's what matters. $2 is too little for most gas companies. i like those companies very much. and i do share your view that it's an international price at last. you said that would happen too. no one believed in what you said. i'm banking with rusty braziel. rusty is the founder and executive chairman of rbn energy. great to see you. sorry i could not see you yesterday. that was my voice that caused the problem. i apologize. >> not a problem. hope you're feeling better. >> thank you, rusty.

sure do. have a good weekend. good to talk to you. >> all right. we'll see you. thanks. >> announcer: coming up, what's on your mind, cramerica? give us a call. the "lightning round" is storming the nyse. next. ♪ at morgan stanley, we see the world with the wonder of new eyes, ♪ helping you discover untapped possibilities and relentlessly working with you to make them real. ♪ because grit and vision working in lockstep ♪ puts you on the path to your full potential. ♪

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brett. >> caller: hey, what's up, jim? how are you doing? boo-yah. >> oh, boo-yah. thank you for calling, brett. what's going on? >> caller: all the -- you know, i'm calling about gold. barrick gold. what are your thoughts? >> someone asked me the other day when i was signing bottles in boca whether i'm backing away from gold, from barrick gold. and i said absolutely not. but only if you want to own a gold stock. and i'm not recommending gold stocks right now. other than as a small portion of your portfolio. let's go to taylor in tennessee. taylor. >> caller: hey, how's it going, jim? >> i'm doing well. how are you? >> caller: i'm good. i'm good. i was calling about occidental petroleum. >> ccidental is not my favorite. it's warren buffett's favorite. i know warren buffett likes occidental and that's why it's so darn high. let's go to dave in arkansas. >> caller: this is dave from oeberland park, kansas --

>> you're a very hard course to ski, my friend. what's going on? >> caller: what are your thoughts on mite? momentum holdings inc.? >> not a buyer. when you see a stock going down like that it doesn't matter what the earnings say they are it matters what's going on including that dividend situation. i say no. or non-situation. walter in california. walter. >> caller: jim, how are you? lakewood, california loves jim cramer. i know you're a busy guy. can i get your -- can i get your perspective on nordic american tanker? nat. >> happenen just keeps telling me business is going up, up, up. the stock's at 4 -- historically they've been a seller of common stock all the way which bothered me. let's go to michael in washington. michael. >> caller: jim, hi. first i want to say what a brilliant and important job you've done all these years

demystifying -- demystifying the market. >> i am trying to get this one right. i am trying to get it right. thank you. >> caller: well, it's been great. i picked up "confessions of a street addict." i'd met you a few times in the class of '84 in law school and i've been hooked ever since. it was just great. >> oh, you're very kind. that was some year, man. what's going on? >> caller: okay. the stock i'm interested in i think is a really deep value stock although it's a little bit speculative for a number of reasons. it's been beaten up with the price of oil declining recently and it was beaten up at the beginning of the year after the election in brazil, which seemed to spook wall street, and it's petrobras. pbr. >> well, what can i say? brazil spooks you. i mean, look, if this were in any other country with a yield like it has and the growth rate that it has you'd be buying the heck out of it. but you know what? it's in brazil. and that's really what matters. and the answer is you've got to

stay away. can't trust it. can't trust it at all. let's go to joel in texas. joel. >> caller: hey, jim, this is joel. club member and neurologist in north texas. >> wow. calling calling about -- it's up 10x. now has a pain relief drug that could help millions of pain sufferers such as those with headaches as you have. is vrtx now a buy? >> it's been a buy the whole way. and i'm glad you mentioned it i am chief spokesman of the american migraine foundation and i do feel very strongly that vertex is a remarkable company and deserves to be trading at a considerably higher level. i also like regeneron after the amazing good news about copd. both stocks are a buy. let's go to larry in illinois. >> caller: boo-yah, jim. thanks for all you and your team do. >> what a team we have. >> caller: ticker dan. >> i think it's a great company but at this point in the rate cycle you cannot buy an auto

parts company. i would include lear. magna. i think magna's sort of -- at this point in the cycle you're going to get to be able to buy those lower. let's go to thomas in louisiana. thomas. >> caller: boo-yah, mr. jim cramer. thank you so much for taking my call. >> thank you. >> caller: yes, sir. i want to get one quick shout out to my wife bethany. and we're both huge fans and watched you for a long time. >> you're too kind. tell steph i like that. i'm a buyer. let's go. what's up? >> caller: cprx. >> okay. if you can tell me why this stock is only 16 and not much, much higher please let me nope this is a biotech company that makes a lot of money. it's mystifying. and that, ladies and gentlemen, is the "lightning round"! >> announcer: the "lightning round" is sponsored by td ameritrade. coming up, cramer sizes up the short report that has jack

dorsey in its sights. next. td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back. ♪♪ inner voice (kombucha brewer): if i just stare at these payroll forms... my business' payroll taxes will calculate themselves. right? uhh...nope. intuit quickbooks helps you manage your payroll taxes, cheers! with 100% accurate tax calculations guaranteed.

it's so easy to hate short sellers, isn't it? they want your stocks to go down. they make money at your expense. and i'm sure you despise the shorts if you own block right now. the payments company formerly known as square has been huge for small businesses. and i've long believed in the concept although not always in the stock.

fintech's been a nightmare for well over a year and this one's no exception. i'm glad i told people to buy it low but i'm also glad i told people to sell it high. i thought things were actually looking better of late though because it seems like that block was being more conservative making loans to retailers and that was exciting to me but it's not what we heard yesterday. yesterday a highly respected short selling firm recommended don't be in block. >> sell sell sell! >> in a very long thorough report that made me believe the stock is likely headed lower. notice i didn't say it should go lower or deserves to go lower. just that that's where i think it's headed. precisely because this firm hindenburg research has an excellent track record. they were sued by a company in india and they won. they're overall track record is terrific. they've gone after 11 stocks that are large enough for us to talk about on air and on eight of those occasions they nailed it. if you took their advice on most of the shorts you racked up giant gains. listen when you're talking money

management pretty magnificent performance but the trouble with high-profile short sellers is these gains can be self-fulfilling. look at block. it's been clobbered from $72 when this report came out to $60. that's a good gain for hindenburg. after all, while the firm acknowledges it's short block we have no idea how long that trade will last even as they project the stock will go substantially lower. if hindenburg's right about block i think some of the issues they raised are important. they call into question the way block gets new customers and the real cost of acquisition. there was a lot of subjectivity on this issue, somewhat marred by an emphasis on how criminals seem to be courted to open accounts. suboptimum. but there's another issue that cuts to the zeitgeist of the market and cuts positive for block. younger people like it. and they like its peer to peer payment option called cash app. kind of like t-mobile versus verizon att. guess who won there. they don't care about any of the stuff that hindenburg lists. even if they should. second, because so many young

people sign up, wall street loves it. although wall street's also assuming the fed will ease up later this year. if jay powell stays hawkish nothing can save fintech. third hindenburg correctly states that if block were to be regulated like, say, jpmorgan, it would be radically overvalued. that's true. but we don't live in that universe because block's not regulated like jpmorgan. it's not as ridiculously overvalued as it might look. despite the challenges hindenburg outlines including they paid too much for afterpay a buy now pay later outfit. you know i don't care for those anymore. some were more conservative than others. in the end i didn't see anything that would cause block's partners including many banks and credit cards to drop their relationships. and that would be the real killer. so no, no silver bullet here. but it raised enough questions that i wouldn't blame anyone. and as far as hindenburg's right to present its view even if it's short the stock i've read plenty of positive research that's much less accurate and a lot less disclosure that hindburg gives

you. as long as they disclose they're short and don't say anything false in any meaningful way it's okay with me. remember nikola a stock that's gone from $94 to $1.50. here's my best two cents, though, make up your own mind. don't let a short seller orr . why it may be far from over. to turn the screwsñiñi on big o profits, but does the plan actually cost you more money down the road? go ask your mom. first of its kind, utah could take tiktok and more social media out of theñi hands ofq