Transcripts For CNBC Mad Money 20150203

1. 44 and the nasdaq climb 1. 09 . House of pleasure. Yep its the second day in a row reputation of january, a month that broke real bad. And that seems to be without a february sequel. Better call bull, now seems to be upon us. Okay. Actually the breaking good analogy really works for this market. Things were there were so many things breaking bad in january that are suddenly breaking good in february. You know what, i just got to spell them out. I really do. This is a remarkable transformation. And it is making the difference behind this remarkable twoday rallies. Lets start with the dollar. Do you know that just last week today, we were worried that the euro would remain in freefall and the dollar would stay strong from here until eternity hurting our exports, threatening fragile recovery. In fact, if you go back to last tuesday, the chatter was all about how the dollar was going to move another 10 higher versus the cratering endlessly debased euro. That was the chatter. Maybe it would move that way even overnight. Sure enough thats precisely when the euro seemed to have bottomed versus the dollar and made a sharp uturn. As of today, the euros been killing the dollar. Whats behind the reversal . Ive got theorys. One is that currency traders were betting that the greek election would destroy the euro and use that funny term like they knew what they were talking about. That didnt happen. Instead, we got a greek government that repudiated austerity for the fraud its been and demanded the rest of europe relent and take the jack boot off greeces neck. I think the greeks are going to win this one. Looks like this greek election came at the right time for a fraught europe. Terrorist action in france admission of a super right wing party into the coalition in greece has finally scared germany into going easier on the rest of the continent, including greece. Europes number one priority isnt like fiscal discipline or trying to please the republicans or anything like that. Its avoiding anything that might lead to war, fascism or takeover. It can only be quelled by germany going soft and giving in. Thats the chatter of a whole host of translated german publications i read daily. Story gets better. Turns out the new greek finance minister turns out hes a smart, impressive guy. Cannot easily be dismissed. I like the fact that out of the gate, he called him the worst banker in history. Youve got to like that. It makes sense. Two rate hikes right when europe was headed into a hideous recession and serious bout of deflation. The germans are losing their balance budget momentum. Its everything. Second, i think theres a possible economic rebound going on in europe. I see green shoots its not idle speculation anymore. Weve got decent german auto sales yesterday. Manpower group, the Staffing Company has a huge european business, just told us it saw very strong growth get this, northern europe, high Single Digits italy, plus 15 , spain, plus 26 . Lower energy costs, they dont hurt it either. Lets say europes breaking good for once. You dont get this kind of currency rally unless its backed up by Something Real Something Real that well all be reading about very soon. Next up is oil. A week ail, we were concerned that oil still couldnt find the footing. Crude was trading below 40 seems like it was headed for the 40s. Oil and gas bankruptcies would be the talk of the town. One week later oils up a quick ten bucks, taking out the 50 level. Going right through to 53 today. Thats a staggering 19 rally. 19 rally in one week major trend change. And a matter of days weve gone from believing there was no bottom to a slow bottom to a rapid vshaped bottom. Its a huge transformation. Now, weve seen immense guide downs from the Oil Companies that have reported in the last ten days, weve seen endless downgrades in the group, individual stocks, downgraded, hold to sell hold to sell. Thats a prelude to a bottom. Right on key, the stocks are flying despite the number of cuts and downgrades. Downgrades accompanied by rallies in get rich carefully, i say the way the bottom is formed a lot of downgrades, a lot of rallies. Take world dutch. During the last two days, the stock has been subject of not one, but two huge downgrades spelling out that the dividend disaster is about to occur for one of the highest yielding dividend plays left in oil. What has the stock done . Gone from 61 to 67 in the faces of these analysts who finally decide to downgrade the stock. Thanks for nothing beyond that a week ago, we began to fret that the consumer might once again be tapped out. Weak retail sales, bad consumer sales numbers, started freaking out the big gains were something of the past. Department help when they gave us cautionary spending data. Then today, the best january autosales numbers in seven years. 17 Million Units in this country. I figured it out. You dont pay for a car with visa or mastercard. Plus the big gas guzzlers, they seem to be the besz best sellers right here. You know what that means . Gm goes higher. A week ago, we thought Interest Rates were going through the floor. Looked like the treasury was going to yield 1. 5 . Oh, really scary. Historic level that really frightened people. Seemed like Something Big was about to break bad. Real flight to safety. Now rates have turned theyre going higher back to 1. 78 of today. Now im hearing the tenyear 2 . What a gigantic change of tone. What does that mean . Its incredibly positive for the 17 of the s p which are the financials and theyve been falling behind the market since the disappointments from the big banks. Hurting their net interest margins. The financials need higher rates, looks like they might be getting them. Those stocks they are now stepping up. Buy, buy, buy lively. Finally, heres something i never thought would happen, copper. Coppers going higher. Week ago, copper was plummeting. Barometer for chinese growth. Thats where most of the growth comes from for copper anyways, where most of it goes. For me the weakness in copper meant china was taking another leg down. One week later coppers roaring. Maybe its kicking in. Maybe chinas turning. So why are these changes in the dollar oil Interest Rates, Consumer Spending and copper having an impact here to the stock market . Because this quarter, we have had a ton of reports from companies that disappointed, pre precisely because these things were going the wrong way. Companies issue earnings, which matter but then give forward guidance, which matters much more. If the trends of the last few days hold up, then the recent downbeat guidance and number cuts, they wont hold up. They will be repudiated to the positive. Thats right, the expectations have now been set too low versus the dollar versus oil, Interest Rates, Consumer Spending copper, the proxy for china. If all of those companies that reported last month would report today, you would have seen far more guideups than guide downs. Its a gigantic doover people and thats why the market is roaring. A gigantic do over. These change the entire narrative from negative to positive. This morning went out positive on squawk on the street based on the key changes ive been seeing. Said it again last night on the show. You got it first. Its a fire storm of criticism of this sanguine view on jimcramer. Here ive had to block 60 people already. Thats twice more than my usual quota by 6 00. Good sign. Look, i recognize the absurdity of the landscape changes dramatically from last week to this. You have to remember why the market was so awful in january. No bottom to euro or oil. There looks to be a bottom in oil, euro, Interest Rates, copper. Consumer spending looks much better than we thought. In january, every important input was breaking bad. In the first two days of february, every important data point is breaking good. You can dig in your heels, you can stay negative you can fight this move. Or you can say, aha, the facts are changing. Maybe i should change with them. Chris in california. Chris . Professor cramer. Yeah . Im a big fan of the show thank you for everything you do for us home gamers. What do you think of lending club joining forces with alibaba . The best board and a lot of momentum and making deals with people and i dont like it. I dont like it because i dont trust their Business Model longterm. Id like them to come on the show and tell me about how they are not exposed to what i call to be you know some of the things that go wrong at banks, so to speak. Lending club is not my cup of tea. Lets go to gene in minnesota. Gene . Caller cramer, booyah from frozen minnesota. Its frozen here too. Caller long time viewer firsttime caller here. Thank you so much for educating us every night. You are a great american. Just like tom brady. Thank you. Caller hey i got a selection for you. Last week sold one of their Broadband Networks to com scope. Id like your thoughts on the deal. Who do you think are the winners here . And what potential do you see for the industry as a whole . I dont want to cuff this. I saw that deal, i didnt really understand the import of the deal. Because i like that division but i liked it within t. E. Let me do work on it rather than say, hey, i think thats cool. I cant do that. Lets go to jim in new jersey. Jim . Caller hey, punxsutawney jim, how are you doing . Im doing all right. How about you, partner . Caller listen with the new american renaissance, we talked about the automobile renaissance, now theres an oil renaissance, doubtful we are going to surpass everybody. So my question to you is tanker stocks am i in for rough seas . Im not a trader well heres your problem with tanker stocks. The Tanker Companies will not agree with me. Heres the deal Tanker Companies exist to send oil from nigeria to the United States. Oil from venezuela to the United States. The Tanker Companies were import companies, and ive got to tell you, we dont need their oil anymore so all youre playing now is china. And ive got to tell you, china, so far, the oil business hasnt picked up. And youre doing a financial arbitrage, too, a lot of hedge funds buying tankers, day rates, storing oil, i dont like that trade either. Mike in new jersey mike mike mike. Hey, jim. Love to the show. Thank you. Im here with my buddy tom. Were both students in hoboken. Fabulous you ought to come in for a little cotwell. We were doing a Little Research in the oil market and came across confidential resources incorporated. We realized their ceo sold all of their hedges on Oil Prices Back in november. And it came as quite a shock. We just wanted your thoughts based on your ushaped recovery theory of what to do with a company like this or any company that doesnt well, if you want a ushape recovery stock, ill send you to eog because theyve got the properties that i think have the lowest break even costs. If you buy eog, theyre going to make a ton of money. Now, the stock has been up a lot. Its up 16 straight points from 80, but i still prefer it to continental resources. Better properties these days. Move over walter white. So far this month the datas breaking good. And you know what, if the facts are changing maybe ill do a little changing with them. Mad money tonight, the chaotic moves in oil with a Company Whose pipes could circle the globe three times over. What can kmi tell us about the price of crude . Ive got the ceo. Then its been a tale of two Earnings Seasons with a difference between the winners and losers. Ill show you how to stay on victorys side. Plus one of the biggest threats our countrys facing right now. Cyber criminals are lurking and fortnet is leading the crush against hackers. So why dont you stick with cramer. 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. With the price of oil up 7 today, 19 in the last week 19 lets not forget about one of my favorite energyrelated stocks Kinder Morgan incorporated. The gigantic pipeline operator that supports a b fabulous template for growth. The new kmi was created in december from the mega merger of all the Master Limited partnerships. Create one regular company that can really be able to buy when it wants to with a cheap cost of capital. Now, Kinder Morgan inc. Is the largest transporter of natural gas, Refined Petroleum products and carbon dioxide, very important for north american production. Not particularly sensitive to fluctuations in the price of crude. Hence why it sat out the rally today. The Growth Opportunities in the pipeline space and outperformed every other Energy Company ive followed since the decline. This Company Gives you the rare combination of growth and yield. Management says they plan to pay 2 a share in dividends, works out to 4. 8 and a strong first quarter. And a week ago, i love the numbers. Lets drill down with the visionary chairman and ceo of Kinder Morgan inc. And get a sense of where the company is headed. Withing welcome back to mad money. Thank you, jim. Glad to be here. You had an analyst meeting. You said that oil should be at the 65 to 75 range. Its rallied from where you thought it was too cheap. Is it headed to 65 75 . All i said really jim, you cant meet World Oil Demand at a 45, 50 wti price. And i dont know what the magic number is but i suspect its something in the 65 to 75 range. So eventually, to get equilibrium equilibrium, i think youre going to go back there. But as to when and whether its going to be a vshaped recovery or a ushaped recovery, im not smart enough to predict. But im pretty confident that in the long run, youre going to have prices that justify satisfying the demand thats out there. Then you, is it better to be lucky or goodrich . At the absolute top, you were able to put the company together in a way you said you needed cheaper capital if you needed a chance to do some buying if things broke. Thats what happened. You already made your first big acquisition. Is this the time to really roll up all the guys a little bit in trouble and create maybe the Largest Oil Company in the world . Well, i dont know about that. But certainly, there are going to be opportunities to do rollups, and acquisitions in this kind of environment. And weve already done one and i think you can expect us to do more. Again, were going to stick with our toll road concept, which largely insulates us from commodity pricing issues. But were on the prowl, wed like to make more acquisitions if they can be Accretive Acquisitions that work for our shareholders. All right. One of the things i was telling people why i like your stocks so much and they said, well you know, have you looked at that Balance Sheet . The Balance Sheets loaded down with debt. I come back and say youve always cared passionately and youve got tremendous coverage. Well, we do. We think well have tremendous excess coverage we said in our original budget, which was based on 70 oil that wed have pay a 2 dividend which as you pointed out is up 15 from 2014. That in this year, we would pay that and have over 650 million of excess coverage. Now, that wont be that much if we average less than 70. But rather than redoing the budget, we just gave everybody a sensitivity and said its about 10 million for every dollar. So if you had 50 oil all year, the matrix would suggest you still have 450 million of coverage. So very good coverage of the dividend. But obviously there are a lot of other factors, too. And that doesnt include any acquisitions like the one weve already made. Now, rich will you put hedges on immediately after you make that acquisition . I know harold hamm did need to raise some money. To me, thats another toll road. But im sure there are people that say listen taking on some commodity risk for some of these deals. Well, youre not taking very much commodity risk, per se, but you are taking volume risk on some of these plays. So indirectly if you have a draconian drop in the amount of production in a particular basin in the long run, you would suffer less throughput. Now, what attracted us to this particular asset was, number one, we were not in the bakken this gives us a tremendous platform not only to serve the present customers but to deal with a lot of other producers up there where we have great relationships in other producing areas. We think we can expand the footprint dramatically over the next 3 to 5 years. Secondly, the hh pipeline is starting up the doubleh pipeline. Thats one of the most economic ways to get crude out of the bakken. Were just starting it now, and im happy to say that based on our nominations, were going to be basically full the first month. We plan to expand that by yearend this year and hopefully expand it further in the future. Weve got longterm contracts. Were in the tier 1 acreage in the bakken. Did a well by well analysis. Were comfortable with the position. Its accretive in 15 and gets more accretive in the out years. Were very pleased with the acquisition. All right. One last thing. I know that people said jim, you love rich you love rich but rich is retiring. I say you said that you were going to die with your boots on in the Conference Call, which means to me were going to be talking many more times and its not going to be you riding off into the sunset. No im not runiding off into the sunset but steve kane is going to be a great ceo, weve got a Great Management Team im going to be there to participate in all the major decisions, including acquisitions including big projects. And as steve said on the call last week this will be the smoothest transition youve ever seen. And were going to be open for business and do just as well in the future as weve done in the past. All right, rich, one last question. Said, listen were not going back to 100, but do you think its possible for us to go below 40 given what you said about the supply and demand in the world right now . I think, you know anything can happen over a short period of time. But longterm you cant sustain these low prices. You know, if you want to look at the macro economics of the situation, jim, we have a total world demand in the low 90 Million Barrels per day. We are some place between 1 million, probably 1. 5 million to 2 Million Barrels oversupplied at the present time. So this is not like we have 5 Million Barrels of excess capacity sloshing around. And we have obviously, a lot of producing areas in other countries susceptible to political issues. So i dont think youre going to see a longterm very low oil price. You just youre going to see the return of a balanced equilibrium price, in my opinion. Well, look, youve done a great job. This is the right vehicle. I think people should, in terms of yield and growth its my favorite name in the s p 500. Thank you so much rich kinder chairman and ceo of Kinder Morgan. Good to see you, sir. Thank you, jim. You heard him, this is the business, when youre looking for yield, when youre looking for growth which is why its in my charitable trust, you should be thinking kmi. And by the way, i think you should be thinking excellence. What a Great Company and great Conference Call it was too. Mad moneys back after the break. Coming up, halting the hackers. From your checking account, to the most powerful government on the planet a global army of hackers is determined to Spark Digital disaster. But can the cyber Crime Fighting fortnet protect you and your money. Cramers investigating. Hey matt, whats up . Im just looking over the company bills. Is that what we pay for internet . Yup. Dsl is about 90 bucks a month. Thats funny, for that price with comcast business, i think you get like 50 megabits. Wow, thats fast. Personally, i prefer a slow internet. There is something about the sweet meditative glow of a loading website. Dont listen to the naysayer. Switch to comcast Business Today and get 50 megabits per second for 89. 95. Comcast business. Built for business. So now that weve made it through the bulk of earnings season, whats the verdict . Im going to give you two answers. The first one like everyone else will give you. Reporting seasons been mildly disappointing. A lot of companies guiding down. The reality is there are two Earnings Seasons. We have the domestic companies, almost all of which so far have been spectacular. And i think will only get better as the rest of the season goes on. And we have the Big International companies with the exception of an alcoa, boeing honeywell and 3m have been suboptimal. The domestic names, of course oh, theyre all about the job rebound. A couple with decline in raw commodity costs, including oil. Its hard to think of any glaring disappointments aside from the oil stocks. There are a lot more costcos up 7. 25 today. Although, that ones even coming back. But the internationals, there were mostly guide downs. Some of them were for real. They were caused by the strong dollar making it hard to sell product overseas in weak currencies and translate back into the greenbacks, very Unfavorable Exchange rate. You only understand this stuff if youre a foreigner coming here experiencing sticker shock trying to buy something with the weakened currency. There are other companies, though hiding behind the strong dollar and actually doing okay not great. Chiefly the drug and Consumer Product companies, almost all of which have been a bummer in my view. Major techs doing wining too. But you know whats been difficult about this earnings season . The fact that if your stock had run going into it, it didnt work out well. Classic cases right from the start, alcoa. I notice that almost every single line item one stronger than expected, especially in hindsight. Companies writing some of the most positive trends. Aerospace, auto trucks turbines, those are precisely the sectors doing extremely well. Theyve been able to pop throughout this period. Think of eaton today. And reported a spectacular quarter as we heard from sandy cutler from the ceo. Same with honeywell. But alcoa had the misfortune of having a stock that ran right into the announcement. Honeywell hadnt run that much and was able to break out. Boeing had pulled back and was supposed to miss. The short sellers were crushed and eaton had terrific numbers last summer so it stunned. Of course, 3m as always was incredible. Just like clock work the core holding, disney what can i say . Definition of blowout. Worst in show so far the pharmaceuticals and the Technology Stocks and the smattering of industrials. Now, we begun to believe, for example, the personal computer space was doing better. So everything related to the pc space had rallied going into earnings season. Turns out, personal computers arent better and every stock related to pcs disappointed, worst of all, microsoflttmicrosoft. We also believe cell phones would be stellar, yes, apples were, but the other companies that ran into the quarter, no. Havent moved at all. Not good enough. We believe the internet would be terrific. Again, though, the stocks ran up. And the only real surprise was google wasnt as horrible as we thought. Even facebook is trading below where it was before when reported last week. I say the stock is wrong. I say stick with it. I say buy it. Period. Oh and specialty hightech growth. Take a look at 3d systems. Take a look at it down 28 . So much for that. Big pharma got crushed by the dollar and hideous, almost didnt matter what they said. But when they did Say Something not that encouraging. Money shifted to the biotechs until they too, got bit up to the point where you can see the money shifting out of them until the now surprising industrials. Caterpillar, though personified the heavy Machinery Companies with a disastrous quarter. Let me give you the bottom line. In the end, as usual, expectations are everything. If your stock ran and the quarter was perfect, it has meant nothing if youre international. Pretty good if youre domestic. If the number was less than perfect, your stock was i annihilated domestic or international. Well, even if the numbers were just okay like the oils or if they were good like eaton, you got winners not whiners. Big winners, like the ones that led todays remarkable rally. John . Caller baltimore booyah, cramer. Excellent, excellent attempt there at a major booyah. Thanks jim. I picked up Royal Caribbean at 60 back in october. Went up 30 over the last three months as oil prices dropped in the last week started sliding weaker than expected quarter. I was wondering if you see a rebound from here, or do you think no, i didnt like that quarter. I think its time to ring the register. A nice gain. Lets move on. I didnt like it. Plus, you know, the dollars playing havoc with a lot of travel. Lets go to rich in california, rich . Caller thanks, jim for taking my call. Of course. Caller big booyah to new England Patriots winning the super bowl. My question is about tesla and their Growth Prospects domestically and internationally given the strength of the u. S. Dollar. Tesla is a cold stock, i imagine it can bottom. Amazon bottomed starting going up. Im sure theres some thesis that could make it so tesla bottoms go up. Id say this oils up 19 , people selling tesla because of the electronic car wash oils going up, some will buy that because thats what people do. Earnings seasons almost over and its got a lot to do with expectations. If the stock hadnt been crushed heading into the report, even if it posted an okay quarter, the market liked it. Much more mad money ahead, including my exclusive with a cyber crime fighter that surged more than 60 last year. Im investigating. Everything from trucks to airplanes to the stocks flying high today on a strong quarter. Ill see if eaton can keep soaring. And heres a hint i think so. Plus a brand new edition of the lightning round coming around. Stick with cramer. With the market rallying nicely for the second day in a row, i think its worth revisiting companies that reported during the ugly days of last week to make sure that we didnt miss anything. Take fortnet, the Cyber Security company, major player in the unified Threat Management business. What exactly does that mean . Offers a comprehensive integrated suite of products and services that allow the clients to detect and eliminate complex threats without locking down the computer systems. A lot of success with small and medium size businesses. Lately gaining traction with larger ones too. And lets not forget president obamas proposing 14 billion of Cyber Security spending in his new budget. Perhaps one of the few parts that the republicans in Congress Might agree with. Delivering in line earnings and higher than expected revenues up 26. 3 year very strong billings growth. But the companys guidance for the next quarter in 2015 somewhat spooked investors because they plan to invest heavily and grow the business something they made clear on the Conference Call. Thats why the stock dropped 2 the next day. Its been coming back since then. Fortnets begun to bounce back because i think it has real upside at these levels when you start drilling down past the nittygritty. Lets check in with drew fortnets chief financial officer, learn more about the quarter and the companys prospects. Withing to mad money. Thank you, jim. I was going to ask you whats behind the 35 growth in bookings. I think whats behind is it whats behind us. Can you show me what i think is actually, and i had a chance to look before you came out, a frightening scenario. So this is fortnets threat map. And you can see realtime threats, threats happening in realtime, and this is developed by our labs team. We have a huge group of Global Security professionals around the world, Global Security experts, and theyre providing this information to illustrate basically whats going on right now. These are realtime threats. And also what they do is provide these updates among others. You wont see everything here because not everythings shared, quite frankly. But theyre providing them to our customers. Lets say im a ceo of a company that just is in that red circle right in dead center of the United States. And you come to see me and make a sales pitch. I mean i have to believe that theres this is all around me. Ive got to take your product. Thats right. I would say that look you need to make Security First, which i think is a big issue right now. The threats the threats are not only increasing becoming more severe. You need to be aware of that. And you really need to buy Security First versus buying security as just an add on to a network, if you will. When i talk with ceos now and ask whats bothering, they dont talk about the quarter, margin, europe, china. They talk about Cyber Security. The president , one of the few things it looks like he has any successes in terms of across the aisle, Cyber Security, how bad is it right now . Yeah, i think its bad. I think its ongoing. And i dont see much abatement in sight. Look at it i mean people a year ago, were talking about target and credit cards. Right. Now were talking about sony. Credit cards to crisis, if you will. Quite frankly, we were talking about transactions and companys information. But now i think corporations boards of director sea level people need top realize theyre stewards of personal information. Peoples intimate photos are being stolen. My intimate photos could be stolen. Nobody wants theirs stolen but they might want yours, jim. Banks, i check my bank account every day. Right to do or wrong to do . Good idea. I think always check on your information. Its that its that possible, huh . Yeah. I think anything is possible. Anything they can take a little bit take a lot. Anythings possible. Right. And how about, what is the sony situation in terms of a new level of cyber warfare . I think its an escalation. I think we heard president obama talk about cyber terrorism. So thats just an example of how the threats are becoming more severe. When i go over your Conference Calls, its clear you are not just going after the little guys youve got big enjoys and youre taking business from the majors. What Value Proposition are you offering that making so that Major Companies are losing share to you . We we offer a best of breed, integrated security fabric. And so best of breed matters because people have traditionally bought Network Security as part of a network, kind of a side dish if you will. Right. Security needs to be the main course. Integration matters, simply because you want threads that work together. Its when its cold outside, you dont really buy spools of thread, you buy a coat. You need that fully integrated protection, integration matters just like in an ipod or ipad where you want everything to work nicely together seamlessly, there are no holes, no breaches in between. And thats what we actually offer. In the call you make it very clear youre going to have to you have to spend more. A lot of people were turned off by the spend. It sounds like youve got to get the right people and smarter people, is that really possible . Thats right. We have been. And i mean if you look at our informs investments, they have been paying off. We doubled our rate of growth last year we grew 3x faster than the market and thats what were trying to go after. Thats about getting the right people to deliver the right message in the right place. We keep hearing about europe. Thats right. We have a great team in place in europe, and weve done exceedingly well there. Weve been very focused on enterprise customers there and made some investments early in the year that have paid off. We hope those continue to pay off, and were trying to replicate that globally. Can i ask for the map again . Because i want to ask, what is if you looked at this, whats the most frightening thing happening right now . Well, look, theres a variety of things going on there. If you look at the ed are, those are the most critical of the attacks. These could be denial of service attacks, could be botnet attacks, massive spam attacks and so on. So i think theyre all very worrisome, quite frankly. Wow. Im worried, too. Ive got to tell you. I think it illustrates the severity of the issue. I know no ones spending enough. The banks arent spending enough. They need fortnet. Thank you very much. Its sobering. A sobering look at things. Thats drew delmato. They spent a lot, the stocks not as high as it should be. It should be much higher. Mad moneys back after the break. It is time it is time for the lightning round on cramers mad money. You say the name of the stock, i tell you to buy or sell play until this sound and then the lightning round is over. Are you ready, time for the lightning round on cramers mad money. Ester in florida, esther. Caller thank you for taking my call. Im calling about tyson foods. I thought they had a good year. They had about 17 earnings return. And its just trading in the wrong direction. Its had a big run. People feel that the easy comparisons are going to be over. Because, remember it is a commodity, but thats what it is. I am of the opinion dont buy, dont buy. I need to go to dave in new york. Dave . I love the knowledge. Thank you. I got a question for you. Now, i love biotech stocks. I want to know about celgene. Big rotation, in the names like eaton. Thats what happens periodically. Celgene has a real bad head and shoulders going. I say let it come down 5 and pull the trigger. Why . Because theyre putting out numbers for 2020 that are going to be amazing the stock looks dirt cheap in the outyears. Jared in new york, jared . Caller yes booyah, big fan, jim. Thanks for having me on. Excellent. Caller calling about c. R. Barnes, i want to know if its a buy, sell or hold or if you see anything with a better valuation. Got to go to bard. Its a terrific stock. The only thing i like more than that is everett life sciences. Mike mike mike in new jersey. Mike. Caller hi, how are you. Im mike from new jersey. Big booyah to ya. Long time listener first time caller. Love your show and hope you provide to the average investor. I purchased a lot out of Micron Technology in 2014 at the 32 level. Yeah. You know i think microns part of a whole cohort of tech stocks nobody wants right now. I think the stock can work its way back to 30 31 but i think youve got to cut your losses. I dont see a big upside coming from that stock anymore. If you want a tech stock, i prefer facebook or google. Lets go to mark in new jersey. Mark . Caller mr. Cramer, thank you for taking my call and all your support staff that help you run the show, the ladies have been great to me. Im calling to fcau. Its sensational, the managements accurate. Gm has a habit of screwing up the quarter. Thats a bummer, but the business is good. Aaron in pennsylvania, aaron . Caller hello, cramer this is aaron from allentown giving you a booyah hoping i have horse sense to ya. Well, whats the stock . Caller well, jim, hey, listen a few years ago, you recommended stocks that used to go from 80, would go up to 120. Yes. Caller what stocks a very big local company here i bought into it as of today, 148 a share. Do i have horse sense . Should i keep buying . Air products because youre from allentown and thats the biggest employer, it used to be hess. I think air products is a sensational situation and it is going higher. Its well run, much more better than it used to be. Air products is real good and you do indeed have horse sense. And that ladies and gentlemen, is the conclusion of the lightning round the lightning round is sponsored by td ameritrade. Have you heard of the new dialing procedure for for the 415 and 628 area codes . No what is it . Starting february 21, 2015 if you have a 415 or 628 number youll need to dial. 1 plus the area code plus the phone number for all calls. Okay, but what if i have a 415 number, and im calling a 415 number . Youll still need to dial. 1 plus the area code plus the phone number. So when in doubt, dial it out looks like its time to circle back to the highquality industrials. Thats what im wondering after eato, in eaton, hydraulics truck transmissions and Aerospace Systems reported this morning and blew away the numbers sending the stock into the stratosphere up 8. 37 . Eaton may be at the mercy of currency woes like other companies. But they still delivered a 7cent earnings beat with inline revenues, very strong bookings and the best organic growth since 2011. Plus, a nice jump in margins, something investors have been waiting for. Now eaton has been a huge longterm winner. Always like the stock when it supports about a 3 yield as it does right now. One of the reasons my charitable trust. Lets take a look to hear more about the quarter and whats next for the company. Welcome back to mad money. Hi jim, how are you this evening . Well, ive got to tell you, im good because this was the number i have been looking for. Bookings strong in electrical and aerospace. These are two incredibly important markets for you. Really a lot of positive tone lighting good. It all came together this quarter. Yeah really was a great quarter and a great year for us. Earnings up 18 this quarter, 13 for the full year as you mentioned 5 organic growth in the Fourth Quarter the strongest since the Fourth Quarter 2011. We think a great way to end the year and enter 2015 strongly. Well i want some people i want people to know which divisions were very exciting. And i felt that l. E. D. Really shot the proverbial lights out. Can you describe about residential and nonresidential and l. E. D. And why theyre so important for eaton . Yeah our electrical products, one of our five segments reported is a third of the company, 33 , and we report lighting as one of many products in that segment. You saw bookings up some 4 for the entire world, but they were up 7 in the United States and led by applications like lighting where 50 of our product is now l. E. D. Led by residential where were seeing that build on toward what we think will be 1. 5 million Housing Starts out a couple years from now, pretty good strength on the industrial side as well. And obviously, all those great benefits of our integration, theyre coming through there, as well. I think a strong feeling. You look in our Vehicle Business where heavy duty trucks is quite busy as are light vehicles today, organic growth was very strong there again. High Single Digits. High single dimgtgits in aerospace, as well. Weve got propellants moving ourselves forward now. People should know the organic growth was far better than the other companies i talk about quite regularly and kind of pass them all. And one of the things i thought was important is you actually gave us a feel that this is not a onetime only or oneyear only in the discussion that you gave about oil and gas. People were pushing back saying that oil and gas could be bad for you. You say there are a whole bunch of end markets that lower oil and gas actually help. Can you flush that out for us . We heard the grumblings that lower oil is not good. This is the first time ive heard any executive say, no wait until you hear what happens in this world. Most economists agree that lower oil helps to grow gdp. Its just uneven when you get to those pieces. When you look at our businesses sales, too, our oil and gas customers likely to go down this year. But, the positive impact for vehicles consumer obviously isnt spending as much money at the pump. Theyve got more money to spend on a vehicle, on a mortgage for a new home. Heavy duty trucks obviously, a very big operating cost for the fleets is diesel. Thats coming down. Aerospace, one of their two big drivers, fuel for airplanes, thats coming down. Makes them more profitable. So there are a whole bunch of individual knockoff effects of having more change in peoples pocket that will enable them to spend in other areas. So we think its probably about a net neutral for eaton, just changes which of our different businesses does well off of this change. But thats one of the benefits of eaton. Were a company thats made up of many, many end markets. Were taking Power Solutions across all of them. And thats what we think brings to investor that continuity of earnings through the cycle. Well i also felt that because of the continuity that you see, youve really stepped up your buyback, prelude to Something Bigger or a new consistent level . Well were really pleased. We brought back 2 of our shares last year about 9. 6 million shares 650 million we spent. We would expect normally to spend about 100 million a year in buying back. Weve said that were going to get to the middle of this year about june 30th. And well ought to be in a position to talk about what were going to do in terms of capital redeployment strategy going forward. Our Free Cash Flow our operating cash flow, we expect to be up 15 in 2015 over 14. The Acquisition Debt from the cooper acquisition. Maybe a mixture of things. We see attractive opportunities. We think its an exciting time. Weve got strong thats the most ive heard from you and obviously organic growth is extraordinary. Its a big step up. You think its possible to even top that . Weve given our guidance to what we think our growth is roughly 3 to 4 . And thats before negative 4. But clearly were positioned in a lot of these markets very well. Weve continued our spending in r d, we continue to believe that people are interested in sustainability and safety and economy when it comes to fuel. And those trends are still with us. So we think weve got a really good game plan going into 2015. There are a lot of head winds out there. Everybodys talked about. But there are ways to win in these markets, and by think weve got a good strategy for doing so. Well im in total agreement with you. Which is why it remains a good position. Thank you so much sandy cutler. Good to see you, sir. Thanks jim, always good to talk with you. You heard what he said. Later this year, there could be some very big news in eaton. Theyre in great shape to be able to do a lot, whether it be m a, dividend boost. Stay with cramer. Theres confidence. Then theres trusting your vehicle maintenance to ford service confidence. Our expertise, technology, and high quality parts mean your peace of mind. Now you can get the works, a multipoint inspection with a Synthetic Blend Oil change tire rotation, Brake Inspection and more. 29. 95 or less. Stop freaking out, chipotle its terrific and disneys getting better. Theres always a bull market somewhere, i promise to try to find it for you here on mad money. Im jim cramer and ill see you tomorrow male narrator tonight on restaurant startup two young and hungry teams from the big apple fight for a shot at funding a pair of metalheads with some rockin moroccan cuisine. Rock out, dude. Narrator a pair of sisters with a fresh take on a new york favorite. This tastes very much like a hot dog. Yeah, dog. Narrator with hundreds of thousands of dollars on the line, will one of them earn an investment from joe or tim . Joe bastianich owns a portfolio of 30 restaurants along with eataly, a highend italian market. Tim love is a celebrity chef with six awardwinning restaurants and a retail empire. Theyre both looking for the next food visionary, and theyre willing to put their money where their mouth is