1. 02 and the nasdaq plunged 1. 14 . I think being old is a good thing. Whats so great about being old, simple, i remember things. Things that can be valuable to all of you because ive lived and traded through them. Right now, of course, were in the midst of earnings season. Boeing missed the forecast, is the honey moon at yahoo finished in the wake of the not so hot quarter and the slowdown . In a normal day, we pick them apart, questioning whether facebooks quarter as good as it looks. I think it is. These are in the normal times. Forces that are not necessarily bigger than individual companies that make up our stock market can still trump them shortterm. Lets set the tableau you and me. Nothing to do with the earnings report, which like every other day have been good with only a few real stinkers. Typically on the guidance, too, not the quarters themselves. The weakness is from emerging markets and likely impact on our own stock market. This spillover effect, this waterfall is something im uniquely qualified to riff on because im old enough to remember investing through several other emerging market panics, just like were having right now. And i want to give you that Historical Perspective so you can make up your own minds about whether to cut your losses, start buying some highquality stocks, one or the other. I know this stuff can drive you to drink, or as Joseph Conrad wrote in one of my favorite stories fittingly youth pass the bottle. My first tussle we merging markets was turkey itself. Betting that people would stop pulling money out of this country as it needs socalled foreign hot money to pay for its debts. 22 years ago, i was real hot on turkey. The economy had taken off, the secular government seemed to be turning the country into an Eastern Power house and there was talks, tons of talk about how it was going to be the next germany. I couldnt resist, i had to have some. And after examining the best prospects, i bought a ton of the bank of america of turkey and the turkish whirlpool. There were two thoughts behind those purchases. One, the emerging middle class and the region was beginning to buy homes to start businesses so the banks would have to boom and it was going to be the lowcost supplier of the emerging middle class of central and Eastern Europe for washing machines. Believe me, the hook is always the emerging middle class. So irresistible. Give me some rocky, the National Liquor of turkey then like now, though, turkey had far more political risks than i realized. It needed capital for its growth and higher interest rates. Sure enough, the country started faltering. First the stocks didnt seem to be going down, but thats only because they were priced in turkish lira and didnt reflect the decline in the currency. When i started translating the currencies, in a month my investments were cut in half. Next thing i know, i got about a quarter of my money back. It was a total disaster, people. Emerging markets, so great. However, i kept mash close to home, i would have made a fortune. In part because we werent nearly as linked as we are today and the media didnt cover the place back then. These days, we have lots of cash thats interconnected, flying all over the place, borrowing money to pay turkey, many others worried about contagion to other countries. Some stress here, argentina, south africa, indonesia. Some blaming the fed for causing the spiral, but thats because theyre fed centric and would blame the fed if the favored broncos lose in the super bowl on sunday. My next big emerging crisis, well, how about mexico. In 1994, the emerging market of mexico was all the rage. I remember Morgan Stanley trying to talk them into buying mexican stocks, but i learned to stick to my knitting after turkey. And we had the peso crisis also known as the tequila crisis. Im not kidding. And by the way, thats not the same as when we ran out of highquality tequila. That wont happen again. Pass the bottle. You should have seen the panic during the tequila crisis, you would thought every speculator had swallowed the worm that they put at the bottom of the bottle and real mexico. Before that happened, our stock market got pounded, 470 down to 445. A year later, trading at 627, hmm, scaredy cats freaked out. Those with patients and fortitude caught a 40 gain over the next year. Fast forward to 1997, the emerging market pied pipers, hong kong, singapore, taiwan, hey, the four tigers of east asia. Thailand, a tiger cub was trying to get in on the action, but got too overheated. And its currency, the tibat got clobbered. The contagion spread to four tigers reduced to a bunch of tabbies. Guess what, you cant see the decline. Going into the Asian Financial crisis, the s p 500 stood at 865, a year later emerged at 1,098, 27 gain, ill take that any day of the week. But a lot of people didnt take it because they panicked about a currency theyd never heard of. And now, when you see this, its pretty darn funny, isnt it . Final tribute to emerging market lunacy, the russian collapse of 19 8 where the stocks and bonds of that capitalist nation had way too much vodka to drink and annihilated their markets. Once again, id been urged to get involved shortly before it went bust. Others who hadnt lived through my turkey experience followed that advice and their panic brought the s p down from 1,174 to 1,096, a 6. 6 decline. But a year later stood at 1,348, 20 gain for those who didnt vomit up their stocks. Pass the bottle. Which brings me to the point of these old war stories. Here we are again gripped by panics. Many seem to believe this has to be europe all over again where we took a serious shellacking. One that was deeply and linked to many of our countries. Whats happening now is nothing like that. Others are thinking what happens if china crashes is into a retaining wall. That could bruise us badly. Im merging patience here in what could be a 5 , 6 decline. What we talked about last night on or off the charts. If you only think 365 minutes out, if youre thinking 365 hours out, you might want to trim some good ones. But those who think 365 days out, get your Shopping List ready. In a few days, you might need it. Mike in california, please, mike . Caller booyah, this is medical mike from california. And i was wondering about lexmarx, i bought it a couple days ago. Im wondering if you think i should take some profits or if itll keep going up. Im not a fan of lexmark. Its a commodity company. I like hewlettpackard more. Vinnie in texas, vinnie . Caller booyah, jim. My question is on home depot. I understand that home depot acquired blind. Com, the stock has been going down for the past month. Shortterms and longterms of home depot . People are concerned about home depot because theyre concerned about retail. Theyre concerned about retail because the consumers pinched. Im not as nervous about retail when it comes to home depot because its an excellent operator, particularly with all of these storms around the country. I believe in frank blake, does that mean it can go to 73 . Oh, sure, does it mean id buy it at 73 . You bet. Today might have you reaching for a cold one, but please, patience. Nurse those drinks, pass the bottle. Mad money will be right back. Coming up sweet spot . Whether its the ground floor, freeway or 30,000 feet in the sky, honeywell has the technology that powers it all. The company just delivered a solid quarter. But can the stock stay sweet amid a potentially sour Global Economy . Cramer talks with the ceo. And later, cleared for takeoff . American airlines emerged from bankruptcy to become the Worlds Largest air carrier. And in todays turbulent market, strong earnings kept the stock above the clouds. Can it give you a smooth ride . Or will it need to refuel after its 30 rise . Dont miss cramers exclusive with the ceo. Plus, executive order, the president talked up natural gas on last nights state of the union. Its the bridge fuel that can power our economy with less of the Carbon Pollution that causes climate change. Is it just hot air or is there a way to play it . All coming up on mad money. Dont 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 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. Weights. Four hours on the slopes. And two hours doing this stuff. Which leaves me approximately two minutes to get my banking done. So i use the citi mobile app to quickly check my accounts and pay my bills. Which leaves me about five seconds to kick back. That was nice. Bank from almost anywhere with the citi mobile app. Citi, with you every step of the way. Even a difficult moment like this one where everyone seems terrified about the Global Economy, please, lets not get too despondent, there are highquality companies out there that are executing fabulously and the stocks of those companies are holding up better than the rest of the market as they should. Consider cramer fave honeywell, everything from Aerospace Components to Energy SavingClimate Control systems, turbo chargers that can dramatically increase your cars gas mileage. Last friday, reported the results were darn good. Ended up getting lost in the shuffle of the markets hideous selloff. Company delivered strong headline numbers, 2cent earnings beat with higher than expected revenues. But the really impressive number was honeywells organic revenue growth, up 5 , much higher than management anticipated. On top of that, the Transportation Business where they sell those for cars and trucks was incredibly robust. Management said that china did extremely well during the quarter. These are both good news stories at a moment when people were terrified about china. Dave kote, but look, its up less than a point since reported on friday. I think it deserves to go higher, especially with the analyst day coming up in march. Dont take it from me. Lets check in with honeywells chairman and ceo and hear what it means for his company and the Global Economy. Welcome back to mad money. Nice to see you again. Have a seat. Have a seat. Im going to get to the economy for a second, but boeing was down horribly today and seems like a weird juxtaposition. Aerospace was so strong for your company. I have to believe that to some degree whatever got into boeings stock today is not necessarily reflective of the longer term view that you have about the Aerospace Industry. Well, i would say, yeah, the Aerospace Industry is one that im very bullish on generally. As you know, ive tried to position ourselves within macro trends, stuff i look at and go, okay, over decades, this is likely to keep moving in this direction. And i just dont see a future where planes arent a bigger and bigger piece of the overall pie as the world becomes more wealthy, especially on gdp per capita, families become more disper dispersed, businesses more global, people are going to travel. And cars arent going to get you all those places. And you cover the panaplea. Not everybodys doing well, but its a rising tide for everybody. Yeah. For me, a lot of times i feel youre concerned its tepid. I think that you reading through the lines you think its slightly better than its been. I would say you used the right words there. Slightly better. And as you know, ive been one of the guys who has been a little nervous, a little skittish about it for the last three years and ive played it that way. And i can see even at our Senior Leadership meeting this year, which i did two weeks ago, my message was this is the fourth year where our theme is winning in a slowgrowth Global Economy. That parts still true. Right. However, i do feel its slightly better than it was. I dont know if i buy into the 3 Growth Scenario for the u. S. , but i do believe slightly better than we have been. Which is good, as long as its getting accelerating, thats where we want and you i know youre close enough to china to know a slight down tick could matter. Argentina, indonesia. Your world view fits that all in, right . I was always nervous about argenti argentina. How could you not be . Turkey can be a little disturbing. I hope that they sort that out. But its not like it drives the world. Right. China is one to pay a lot of attention to because its got 1. 4 billion people second biggest economy in the world. And interestingly for us became the second Biggest Country in the world for our sales last year. Wow. And i think thats an important dynamic and one of the reasons why i talk about why its so important to become the chinese competitor. Its going to be increasingly important. Right. I dont think we can always rely on the Economic Statistics that come out of china to quite the extent that people want to. If its really good, they say you cant believe that. If its really bad they go, oh, my god. Youre right. Its not like a labor report that comes out on the first friday. Yeah. Exactly. So weve been pretty bullish on it. Our sales were up double digit in china last year. Fantastic. One of the moments in the Conference Call that was you just saying telling it like it is. If you want to meet cafe standards, raise how much gasoline, you know, cut the use of gasoline. Yep. You need your product. Yes. You need turbo chargers. Why does no one else have it . And what does it really do . The significance of a turbo charger, think of it this way, you can have a v6 engine that performs like a v8 engine but with about 1 4 to 1 3 less fuel usage. Dont you think most people say i dont believe that. Its not possible. Well, weve been doing it now for 20 years. Actually, longer than that. This is a deal that was actually struck by one of our founder companies, garrett turbo chargers. Oh, sure. Working it was actually the garrett engine business working with caterpillar. And the thought was, is there some way to adapt jet Engine Technology for use on an engine. At the time they were thinking to make it more powerful. You didnt need as much fuel either. Its one of the reasons that we have an advantage in turbo chargers that will last forever. If you look at a turbo, it really is just a small jet engine, material science,er flow handling, same for that as it is for a jet engine. Guess who the only turbo charger manufacturer is who has a jet engine business . Just you. We have a Technology Advantage that nobody else is going to match. And thats a technology that is just so easy to put into a car because ive often said people want to save energy, but they dont want to do it if it means being warmer in the summer, colder in the winter or a car that costs more and doesnt go as well as the last one. You need to be thinking about how do you manage comfort with savings . How do you manage performance in a car with savings . And a turbo charger allows you to do that. Speaking about technology and cold weather climate, 2 3 of it worse since 1977. Im thinking thermostat. I want to know whether you think given the technology of your thermostats whether you had a laugh, a chuckle when google bought nest when it seems like your you can speak right to your Climate Control. My comment was that multiple, they can have honeywell. Ill sell them the whole thing. They can have everything. They had to. I mean the people at apple were like, oh, holy cow, they could pay anything and people love google. It was kind of like that, wasnt it . Yours do a lot of good stuff. I was incredulous. Even Something Like a wifi thermostat, weve had that for three years where you could do it on your smartphone. I love it. Ive got it like that. It works fine and weve got the voicecontrolled thermostat now which is really pretty neat. And theres been significant patent violations, as you know, which were continuing to pursue. Right. Right. Like i said, my thought was, hey, you can have the whole thing. Exactly right. You paid that multiple. We dont even need to negotiate. You can have the whole thing. I like that. Theyve got the cash. Now, youve always been a big thinker, too, about the United States and the government. It looks like when i look at some of the numbers that we are getting a little better on the deficit, a little bit religion. Still very big issues. Heartened, disheartened, where are you . Im kind of in the middle with it. All right. Because were semideclaring victory because we only have about a 70 debt to gdp ratio, which, by the way, is the highest in the history of the country over 240 years, close. Other than world war ii. So as much as everybody complained about the Ronald Reagan debt and deficits and complained about any one of the wars, this is the worst it has ever been. And while this decade will probably hover around there, it starts to climb up toward 90 in the second decade because we are not doing the stuff we should. And i try to put this in the context of how do we compete as a country on a global scale . The world has changed for us, weve gone from 1 billion people to 4 billion. Now you have china, india, russia, all of them. And you cant compete with a bad balance sheet. Right. You cant. And thats what we have. Thats the bottom line. Yeah. Thats what we have. All right. Dave, youve always been sober but i also like yours slightly better. Chairman and ceo of honeywell. You see why i think this stock is so terrific. Stay with cramer. Coming up, cloud 9 . With more than 3,000 flights a day, chances are youve booked a ticket on American Airlines. But is the stock a better way to fly . Stay tuned. [ male announcer ] heres a question for you when electricity is generated with natural gas instead of todays most used source, how much are co2 emissions reduced . Up to 30 . 45 . 60 . The answer is. Up to 60 less. And thats a big reason why the u. S. Is a world leader in reducing co2 emissions. Take the energy quiz. Energy lives here. One more hideous day, what managed to buck the gravitational pull and rally quite nicely . How about the brand new American Airlines, aal, the cramer fave product of the merger between u. S. Airways and amr. Moved up another 1. 02 today, thats 3. 19 after reporting a topnotch quarter yesterday morning. Let me give you background. For decades, my view on the airlines was very simple, you never ever buy them because the ruinous competition in the industry was constantly pushing ticket prices lower, often sending Great Companies into bankruptcy. Then, over the last several years weve seen a way of consolidation culminating this deal that almost got bought by the regulators for antitrust issues. And thanks to this merger and others, the Airline Business has become an actual investable business. Four carriers handle 80 of air travel. And as i tell you in get rich carefully, represents a fantastic longterm theme. And in my opinion the best one to own is the new American Airlines. I recommended almost a year ago and since then, its given you 135 gain. But the actual deals only just closed, i see a lot more upside, especially since american reported yesterday and delivered spectacular numbers. Lets take a closer look with doug parker to learn more about this company and where its headed after the mergers complete. Mr. Parker, welcome to mad money. Hey, jim. How are you. Great to have you on the show. I dont want to slight the other airlines, i like them more than other companies anyway. Good. You heard my intro. I remember the first stock i bought was american air, i went from 80 to 35 in a heartbeat. You say right now in your Conference Call its night and day different. It is night and day different. You know, look, ive heard a lot of stories like that over time. Our business for the longest time wasnt a very good business. Indeed, hadnt produced returns on capital for anyone since deregulation and probably before that. But it is different now. Weve got the the industry has through a number of mergers has gotten to a scale that makes sense where we can provide to customers the what they want, which is take them where they want to go and do it efficiently. And the result is now we have a business that works. And it can work for investors and customers. But every time thats ever happened before, somebody has broken ranks. Your company would order, say, if it works for 100 planes, youd order another 50 planes and everyone else would do the same thing and thad be ttd be end. Fair enough. The reality is, before we were all trying, as airlines, trying to get to enough scale to get customers where they want. All the places they want to fly. And in a fragmented business, what that meant is every time you had a whiff of profitability, someone would decide im making a little bit of money, if i had 150, id make a little bit more, doesnt work that way. And everybody would get more airplanes and wed be back. With the merger and the prior mergers at delta northwest, delta and united, of course, we have an industry where we have stlooes three Large Airlines that can do that. Very competitive but can take people everywhere they want to fly for the most part as well as some strong competitors like southwest and jetblues and others that fly point to point. The ceo of boeing, stock was down today, what an opportunity to buy. And what he said when he was on our show was if someone wanted to get a new plane, it would be difficult. If i wanted to do an upstart, i cant go 25 planes that are fuelefficient, can i . No, not new ones. We all have orders in place. A lot of that for replacement. The reason jims doing so well, theyre building some really efficient airplanes. And, you know, we at american are retiring a number of old of older super 80s less fuelefficient and bringing in and using some of our capital, anyway, to make some really positive investments and bringing in new airplanes more fuelefficient, better for customers and p l. When i go on a plane, its packed, theyre not making any money. Now when i see a packed plane, i have to presume thats a profitable plane. I hope so. Thats a fair presumption. Again, in the past, we can always fill airplanes. Thats never been a problem. Its a perishable product, we know how to fill the last seat, you do it by lowering the fare low enough. You should never look at load factors to try to make an assumptions. We can always fill the seat. What really matters, can you fill the seat at a level that covers the cost . And thats what weve done poorly in the past and were doing much, much better. I think its going to get better as we go forward. Every time ive ever looked at an airlines balance sheet, it has always been terrible. Yours has a lot of excess capital. Youre going to have to do something with it. Yeah. At some point we will. Thats a highclass problem, of course. It is a highclass problem never seen an airline have. Given the history youre talking about, this is new for us, as well. No, we have over 10 billion in cash. And thats, you know, and it doesnt earn a nice return for our shareholders. We know that. But, you know, just put the two companies together. They each had ample amounts of cash on hand. Now we have a really ample amount. And look, so were going to look forward, look d see what we should do. Wed like to get a few months of actuals under our belt and see how things come in but feel really good about the future. And well be paying down debt and be looking to return that to our shareholders. I look at the market today and last week and i think people are saying the world is slowing down. Are you seeing cancellations . Are you seeing slow down among your travelers . Goodness, no. Bookings are strong, were seeing and everything we see just looks very strong. And all the other years ive been following the industry, i see some bad weather, go to the Weather Channel means short the airlines theyre going to start losing money. Not happening in this bad weather now . Weather hurts, of course. But weve gotten much better as an airline. At u. S. Airways, gotten much better at handling these disruptions. Dont try to fly through them. We follow the weather, know whats going to happen. And make sure we dont fly airplanes into that, wait for the weather to subside and then we have the people in the right place, our pilots in the right place. Get started the next day fresh. That works better for our customers because we dont end up having them trapped in places we cant get airplanes out of it and works for the airlines in terms of being able to handle this in a way that doesnt hurt your profitability. How about labor. Historically another thing gone wrong with the airlines, there are strikes, so many different unions, they feel ripped off, picked on. Well, one of the best thing about this merger is the great support weve had from the employees on both sides. Both airlines have gone through a lot, bankruptcies in both cases. Right. Which has been really hard on employees. By putting these two companies together, we created one so much stronger that gives them one that they can build a future and one where they can have a career if they want to. And that i think the labor unions now appreciate is what their constituents really want, a Strong Company allows for our employees to build the careers they want to build. And, anyway, not to say there wont be some issues in the future because there always could be. But it doesnt feel anything like it did in the 80s and 90s where we had those types. Last question, in the Conference Call an analyst asked that, look, youre only going to grow 3. 5 , why bother to put these two together . Wheres the synergy . Where do you make more money . I read the question. I thought it was funny, too. But i figure, you know what no, its a fine question. The fact of the matter, we put the two networks together and we can provide. We can get customers now that neither of us can get independent American Airlines didnt have a network that went down the east coast. Put those two networks together, and even though theres no capacity coming out, we dont want to take capacity out because the two networks together are so much stronger than either independently. And that allows us to serve customers and provide a return that neither of us could independently. Thank you so much. Thats doug parker the ceo of American Airlines group, this is a Different Company and different industry. I say forget the past, think about the future. Stay with cramer. I need proof of insurance. Thats my geico Digital Insurance id card gots all my pertinents on it and such. Works for me. Turn to the camera. Ah, actually i think my eyes might ha. Next Digital Insurance id cards. Just a tap away on the geico app. Could save you fifteen percent or more on car insurance. Everybody knows that. Well, did you know that when a tree falls in the forest and no ones around, it does make a sound . Ohhh. Ugh. Geico. Little help here. We do . I took the trash out. I know. And thank you so much for that. I think we should get a Medicare Supplement insurance plan. Right now . [ male announcer ] whether youre new to medicare or not, you may know it only covers about 80 of your part b medical expenses. Its up to you to pay the difference. So think about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans, they help cover some of what medicare doesnt pay and could really save you in outofpocket medical costs. Call now. With a Medicare Supplement plan, youll be able to stay with your doctor. Oh, you know, i love that guy. Mmhmm. [ male announcer ] these types of plans let you visit any doctor or hospital that accepts medicare patients. And there are no networks. You do your pushups today . Prepare to be amazed. [ male announcer ] dont wait. Call today to request your free decision guide and find the aarp Medicare Supplement plan to go the distance with you. Go long. Listen up. Before we get to the lightning round, a little reminder for you cramerica to join me for a book signing one week from today. At the barnes noble in new york city on february 4th, next tuesday at 7 30 p. M. Come there early because ive got to tell you we ran out of books at the last signing we had there. I would love to see you there. Now, it is time, it is time for the lightning round on cramers mad money. You say the name of the stock, i tell you whether to buy or sell, you play until this sound and the lightning round is over. Are you ready skedaddy, time for the lightning round on cramers mad money. Louise in north carolina. Louise . Caller booyah to the chief of cramerica. How are you doing tonight. Caller doing great. I want you to tell me two years from now, how would you like aig . Well, since hes one of my bankable 21 in get rich carefully, i dont want him to leave. One of the reasons i do like the stock of aig. May i go to Mike Mike Mike in new jersey. Mike . Caller facebook booyah, jim. Its darn good and thats one of those social mobile cloud stocks ive been recommending. How can i help . Caller been following since you had the ceo on, what are your thoughts on a buyout . I dont think theres going to be a buyout there. But i like that. Ive always played that issue with allergen. And thats been steadier than zeltiq. Scott in new jersey, please, scott . Caller booyah, jim. Booyah, scott. Caller my stock is a recent ipo, jones energy. Yeah, my problem with jones energy, ive got a lot of seasoned companies down on their luck lately like a continental, pioneer, eog, and i think theyre cheaper. Sal in new york, sal . Caller booyah, jim cramer. This is sal. Hey. Caller get rich carefully. We love you, love your book, my stock is medallion financial. Its a small cap new york city kind of issue, and i dont know enough about the finances in the city Going Forward to want to recommend that stock. Paul in texas, please, paul . Caller booyah, cramer. Booyah, paul. Caller so this company had an earnings report, beat on top and bottom line and still down 3 today, what can you tell me about jetblue . Yeah, i know they were on an earlier show. Heres what i tell you about jetblue, no, no, no, no. The one to buy is american air, aal, doug parker. Lets stick with the highest quality. Steven in new york, steven . Caller hey, hello professor cramer thanks for making my life a little happier place to be. I like that. I like that analysis. Thank you. Caller heres what i have. I have a position in henry, hsic for well over a year and enjoyed a 60 plus gain. What do you think the future should be . Hold it, buy more, or realize my gain . Play with the houses money, but i said you know what, i am all in, henry scein, that stock is a stock for the ages. Dorothy in florida, dorothy . Caller hi, jim, greetings from boca raton. Thank you for taking my call and keeping us grounded with your knowledge and experience during these rocky times. Thanks. Caller my stock is conagra. A 3 yield, it is not my favorite food stock. I would prefer you to be in bgs, b g foods, i think it has more upside. And id like the fact that when david comes on, i feel so good about the quarter and the dividend which is a little bit higher in terms of yield than con agra. And that, ladies and gentlemen, is the conclusion of the lightning round. The lightning round is sponsored by td ameritrade. Coming up executive order, the president talked up natural gas in last nights state of the union. Its the bridge fuel that can power our economy with less of the Carbon Pollution that causes climate change. But is it just hot air . Or is there a way to play it . Wh. It told him what was happening on the Trading Floor in real time. The shell brought him great fame. But then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their Trading Platform. [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a. Shell. Get live squawks right in your Trading Platform with think or swim from td ameritrade. Get live squawks right in your Trading Platform some Brokerage Firms are but way too many arent. Why . Because selling their funds makes them more money. Which makes you wonder. Isnt that a conflict . Search proprietary mutual funds. Yikes then go to e trade. Weve got over 8,000 mutual funds and not one of them has our name on it. Were in the business of finding the right investments for you. E trade. Less for us, more for you. The funds prospectus contains its investment objectives, risks, charges, expenses and other Important Information and should be read and considered carefully before investing. For a current prospectus visit www. Etrade. Com mutualfunds. How much money do you think youll need when you retire . Then we gave each person a ribbon to show how many years that amount might last. I was trying to, like, pull it a little further. [ woman ] got me to 70 years old. Im going to have to rethink this thing. Its hard to imagine how much well need for a retirement that could last 30 years or more. So maybe we need to approach things differently, if we want to be ready for a longer retirement. At moments like this when everyones panicking about overseas crisis, i always tell you to fall back on some favorite longterm themes. Themes that will still be there. One of the huge themes i highlight in get rich carefully is the oil and gas resolution. Crude and natural gas that were previously thought to be uneconomical. This is not only caused an incredible surge in domestic production, something the president highlighted, but also seeing Companies Deploy these new technologies for recovering oil and gas overseas. Who is the big winner from all of this . Ill tell you who it is, core labs, c. O. B. The best technology in the business here and abroad, 60 of the sales are international. They analyze the rock and fluids of Oil Reservoirs so their clients can produce more oil per day and helping them get more crude out of the ground. The oil and Gas Companies how and where to drill to get the most value. Their other big division does the analysis Oil Companies need to drill a well to perfection. And that includes designing the process of hydraulic fracturing or fracking, opening up the domestic shale plays im talking about. Reported after the close today and the numbers were excellent. Company delivered a 2cent earnings beat, more importantly, gave positive guidance for the next quarter and 2014. Core has tended to trade down after reports regardless of whether the quarter is any good if it gets hit tomorrow, thats your chance because the stock has always been higher, every time ive had the ceo on since last time. A 220 return since february of 2010. Core boosted the dividend two weeks ago, very positive sign. Lets take a closer look with the chairman, president and ceo of core labs, hear more about the company and the prospects. Welcome back to mad money. Thanks, jim, thanks for having us back on mad money. Our 11th appearance on cnbc. I know what i like about it. Every time youve been on the stock has been higher than the previous time. You must be doing something right. Weve been truly blessed and our guys put up a great quarter this time. Really propelled by new technology and driven by a lot of activities in the shale plays, these tight oil plays here in the u. S. , and also in the Golden Triangle which is the deep water areas offshore brazil, west africa and the gulf of mexico. The combination of those produced our fifth record quarter in a row, record levels of eps, net income and revenue. All right. So im watching someone talk about the upcoming earnings from the Oil Companies. And the wrap was this, oil not stabilized they wont drill as much. And two, the rig count not going up so theres not as much drilling. And made people feel after i listened to that that the Oil Service Business must be doing badly. Those dont correlate, though, do they . If we think about look at some of these shale plays, jim, we are drilling longer horizontal wells so even though its the same drilling rig, youre drilling more footage and were putting more of these hydraulic fractures into those rocks. Even though that one drilling rig is static, the length of the well that its drilling and the number of stages its put in could be 5 , 10 , 15 greater. And core lab has benefitted from that because every frac stage is a revenue opportunity for us. So we benefitted from additional drilling, longer laterals and more stages in those laterals. Excellent. Now, youve got a great release where you break down everything and youve covered america, but i want to talk about the reservoir description. You rip right through say gulf of mexico, but then youre talking about middle east, kurd kurd kurdistan. Because when youre brought in, maybe some people felt there wasnt oil there before but you find it . Well, the fact is, jim, they know its there, they just have a difficult time maximizing the recovery. So they hire core laboratories, we do core analysis to look at the rocks, we look at the reservoir fluid analysis, which is the analysis of the natural gas, crude oil and water. We combine those data sets so they can maximize their daily production but more importantly, maximize the recovery from those reservoirs. If we look at kurdistan, there have been multidiscoveries there, but the recovery rates are in the 10 to 15 range. For those to be economical, we need to get that recovery range up in the 20 to 25. Worldwide that averages about 40 . So combining those data sets generated by core allows them to maximize daily production. But more importantly, to maximize the recovery from those fields over the life of those fields. Does anyone have that technology besides you . Well, the major Oil Companies do. We tend to see ourselves as symbiotic on a technological basis with the major Oil Companies. So when their own internal staffs are full up, they outsource that work to us. So were always trying to innovate new technologies with them so they grow our technologies right along with the exxons and the shells and the bps and the chevrons of the world. You know, dave, i have been a believer that we have more oil. Ive been right but lately people have been doubting me saying, jim, the stocks arent doing well. Reservoir management continues to have a high level of activity in the Permian Basin projects, focused on the Delaware Basin in midland. People say those are played out. Why would you be doing this Reservoir Management if im too excited about nothing . Right. Not correct. We are high on the permian ba n basinsbasin asse assets. A number of plays where we think there are additional billions of barrels of oil to be recovered from the Permian Basin. Right now, if we look at the activity levels around the u. S. , the Permian Basin, the bakken, eagle ford, we see billions and billions of more barrels of oil to be recovered from these plays over the next several years. And these will be plays. If you look at the United States, were pushing almost 9 Million Barrels of Oil Production per day and when we add in natural gas liquids, thats over 11 million a day. Thats more than saudi arabias making. Technology is in a renaissance period where its going to add to recovery rates and production rates for decades to come. I have to say, when i listen to you, the people who are doubting me are doubting the science and the technology and the empirical vision your company has. Not just you cant really fight the facts is what im saying. Well, if you look at just from a scientific basis, we know that we are recovering more and more oil from these shale reservoirs. Back a number of years ago, the average recovery factor was maybe 5 to 7 . Now weve pushed that up to 9 to 12 , ultimately we think we can get it up in the mid to high teens, which for reservoirs will be very, very good, very, very encouraging for the energyproducing trends in this country, not only in this country, worldwide when we start looking at shales in russia, north africa, china, and australia because theyre right around the corner. Well, dave, i want to thank you again for delivering for shareholders, all viewers, viewers have all made money if they watch you because the stocks been up every time. Thank you, david. If you believe in the technology of oil, what youre really believing in is core labs. Stay with cramer. I know its hard to imagine, but there was a time when we used to hang on every word of the state of the Union Address because you could figure out where the money was going, where the federal government was about to spend your dollars. This speech used to be a totally investable event. I remember listening to Ronald Reagan when he was talking about building up the navy to 600 ships. Reagan had the ability to get it done and enough naval contracting stocks back then you could invest and catch multiyear moves. Under president clinton, there were technology initiatives, credits that would turn into earnings. It worked. I cant recall spending much time president bushs speeches because they were muddled. But even when obama first came to office, there were investments like the medical records companies, the apparent beneficiaries of universal health care. Its been incredible for the Health Care Cost containment stocks, cardinal health. I dont know if president obama realizes it but those four companies have been consistent winners during his time in office. And thats largely because of the need to rein in rising Health Care Costs, that the government has done little to help stop. These days, though, i find the state of the union a painful speech. I think the president means well, but dont they all . It would be terrific if we could cherry pick the good parts of globalization, block the bad forcing other countries to take more of our goods while not taking our jobs and polluting less with the jobs they do take. They import our jobs and export their goods and climate destruction. Not all that investment when you think about it. The m. Y. R. A. , count me in. Who wouldnt want a riskfree bond with high returns. The natural gas nod . Ill cut red tape to help states get those factories built and put folks to work. And this congress can help by putting people to work building fueling stations that shift more cars and trucks from foreign oil to american natural gas. I see people getting excited that obamas finally embracing natural gas as a bridge fuel. But then, again, i did an analysis of the 2012 state of the Union Address and he did the exact same thing and nothing happened, nothing at all from the federal governments perspective. The thing is, there isnt any real red tape that needs to be cut to build those factories that use natural gas and congress has refused to help put people to work building fuel stations that shift more cars and trucks from foreign oil to american natural gas. The excitement over his apparent embrace of natural gas spiked clean energy fuels, the biggest nat gas fueling station builder from 12 to 24. But the stock was back down to 12 two months later when nothing at all was done to move the ball. Same with westport innovations, which went from 27 to 48 in the aftermath of the state of the union speech and then fell back to 22 in the exact same arc. We wont be fooled again. We just have to face it, the president cant get anything through a divided congress. It was a very nice speech that would make america stronger if some of the initiatives could happen. But i sure wouldnt invest that way. You shouldnt either. Stick with cramer. As i was saying in get rich carefully, there are not many themes as strong and powerful as social, mobile and cloud, which is one of the reasons why facebook is soaring. Theyve got all three. And dont forget, google cutting its losses, another good thing. I like to say theres always a bull market somewhere, i promise to try to find it for you here on. The president s state of the Union Message last night was principally about inequality and it was not about growth. Therefore, it did not help the stock market. Meanwhile, the fed did as expected and continued cutting back on its bond buying. But of course stocking sold off sharply anyway. Some believe the fed writes the markets daily memo. Steve liesman and i will look closely at this whole story. Also the elephant in the middle of the living room. President obama talked about high tech hubs and broadband for kids and evils of inequality, but it sounded like a diversion from the continuing failure of