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Transcripts For CNBC Mad Money 20130903

with the averages roaring higher at the open only to pull back over the course -- at one point, before ultimately trading back up dow edging higher, advancing, nasdaq climbing .63%. what is ailing this market? i think it's the fact that people expect too much from it. they want a perfect world, something they aren't going to get, some combination of low interest rates, cheap stock prices, the resignation of bashar al assad in syria. high commodity prices, but low inflation, a president that says no new taxes and that congress that says we need to help create more jobs and we're not going to worry about paying for it right now. i say, dream on. you aren't going to get that combination. it's too much. those leaning toward the bear camp, you need to settle for the following. one, while rates have, indeed and are going higher, they're no longer climbing at a breakdown pace they should so frighten you with their backing and filling along the journey to a 3% ten year. this market can handle a 3% figure, slightly higher than it is now. i do not expect a giant selloff when we get there. two, europe is now coming back very strong. aided by nokia. think about it, vodafone's amazing $131 billion, thank you, verizon. i know, those are just two deals, but europe is not that big that you can't feel the impact of that money coming their way, believe it or not. three, china's truly generating good manufacturing numbers now. and i'm asking you to trust at least some of them. i think the action of some of the bigger cyclical names ex-caterpillar testifies there are some believers. i get the skepticism. the chinese economy truly does at times live up to its name when it comes to reliability and transparency. verizon is pumping enough borrowed money into the stock market while stock markets worldwide say it's going to flow back here that it is a one-company stimulus plan. the $130 billion in new money can make people feel a little jiggy and i think you ought to recognize companies say, heck, if i don't do anything bold soon, rates will get away from me. let me do some acquisitions. finally, five, we're still seeing stocks react to pretty good news, right? household products came, jarden buys yankee candle and up huge $4.57. cbs gets a new cable deal, closing at 53.50, the banks involved in the verizon deal, they're going to see big vs. that's rational, that's what we want, that's what the bulls want. so, why didn't we sustain the rally? and why do we end up going in the red at one point today? all right. let's spell out the bear case. first, the bear brief as is often the case comes right from washington. yeah, washington's at fault. we have no idea what's going to happen in syria and why we'll discuss its impact later on in the show. not knowing what will happen will make it difficult to plan your portfolio management. some say your portfolio is small potatoes versus the real life woes of syria. i'm in that camp. but this is "mad money." and we're looking like a hesitant superpower to the market and hesitant doesn't create confidence in jobs or in stocks. second, we have no idea who the new fed chief is going to be, none. most people i talk to are professional ninvestors. they want janet yellen, but they don't want a bull in the china shop, but president obama's not taking accounts off anyone i speak to. he's in love with larry summers, some kind of bromance that knows no bounds. terrific that his tenure as harvard university means nothing at all to president obama. i can't wait to hear his views on women in the labor force because i love the theater. third, we're now -- a government shutdown. we must remember how dysfunctional washington is every time the market opens 100 points. nobody, but nobody cares about the stock market. do they have a terminal? nobody says we could hurt the economy, it's not part of the political calculus of either party. even the gop, once a party that cared about business has not a care in the world about business as i can tell, especially social worth. now, i don't know about you, but if i hear one more jolly and happy go lucky home builder, grab a mike and talk about how great everything is. i will scream. not only are homes not as affordable as they were, but if mortgage rates go above 5%, i don't care what the home builders say at all, their businesses are going to be hammered. that's what happens. interest rates go up and housing's hammered. they haven't repealed that cycle. that's what the stocks are saying. who am i to argue with the stocks? does anybody really truly believe that housing's any good anymore? have you seen those stocks? what they're saying is, wow, people aren't buying homes at all. well, maybe some. fifth, retails become totally treacherous. we have no idea how back to school season is really going. somehow i don't think we're going to hear good things because this new consumer seems to be addicted to buying hard goods not soft goods and apparels become a real bear and we think of retail, we think of apparel. six, i expect we could get a terrific employment number friday. which means we see rates go to 3.25%, as the fed will have to walk away from the bond buying to have a little credibility. doesn't the fed want credibility? of course if we lose housing and retail cools, things should get worse the month after. how long can auto loans stay this robust? really. what's the deal there? it's september! real dog of a month. there are 11 months of the year i don't care about. i never buy into that sell in may and go away. i say buy in june, august, may -- whatever. not very catchy, but right. i'm fretting about the month of september, i always do. i lost a ton of money trading at my hedge fund in september. my charitable trust has done really well in september. it's a crumby month. i don't like the odds. hey, that's okay, the odds are bad. what's the right thing to do? well, here you go. i think you need to raise cash ahead of a slew of data and a rambunctious bond market to get ready for lower levels. no need to panic. this morning showed you how to get terrific rallies and you've always got to sell those rallies. don't worry, there'll be more of them coming, almost always phony and today was no different. sell them. let me emphasize one more thing. right now the chinese and europeans have momentum. we had momentum too. but washington is squandering it. when i say washington, not picking on the president, not picking on congress, i'm picking on a system that's gone amuck where both parties sit there and pretend to do what's good for business. but we all know they aren't doing anything at all except helping to destroy it because you need confidence to start a business or to hire or expand and there's nothing confidence inspiring in washington. i think they know that even. we have no initiatives to create jobs, we have no energy policy. we're going to talk about that later on, that could generate a huge amount of employment. something neither party seems to care about at all even though the headlines are dominated by the middle east, how intractable and caught up we are in it. here's the bottom line, there's a ton that's good, ton. but right now, the nays have it because washington's coming back into session. that means we have to raise some cash, do some rally selling until we see exactly how horribly the republicans and democrats are going to handle themselves this time around. we must recognize who is the enemy of your portfolio. it's not capital, it's not labor, it's not the communist, not the unions, it's washington, plain and simple. what else can i say other than, they're back. frank in new york, please, frank? >> caller: hey, what's up, cramer. >> not much, how about you? what's shaking? >> caller: all right. boo-yah. >> i like that. that'll do. that's a bada bing club. what's up? >> caller: i want to know your take on wsm, william sonoma. >> that's so funny. i'm listening to the conference call. everything's good and suddenly they drop a bomb and say, hey, some things aren't that good and it took my breath away because this stock has moved up a great deal. that makes me lukewarm on willi william sonoma which is a great company and a classic example of what i want to buy after it goes down. keep your friends close, okay. you've got to keep your enemies closer. washington, it's up to its old tricks, so beware. "mad money" will be right back. coming up -- crude conundrum. while wall street's focused on events overseas, cramer's uncovering signals buried deep in the technicals that could get you ahead of the next big move when he goes "off the charts." and later, playing for keeps, football is back but why not draft up some dollars? cramer's putting together a dream team of stocks that could lead you to victory for this season and beyond. plus, keep on trucking, shares of west port innovations haven't been able to get out of first gear this year and the stock broke done when it reported earnings in august. is the future of the natural gas engine stalling? or is this your chance to fuel up before it hits the road? cramer's exclusive is ahead. all coming up on "mad money." boo-yah, cramerica, "mad money" is quickly approaching our 2,000th show. why do i come out here every night? to level the playing field, to fight for you, to remind you that the american dream is alive and well, that you have a fighting chance against the big guy. to celebrate our 2,000th show, i want to know why you, the citizens of cramerica watch. i ask y2 k. why is "mad money" important to you? >> boo-yah, jim, thanks for all you do for us little guys. >> i love "mad money" for the incredible ideas and insight jim offers. >> i love it. >> thanks for giving great advice. >> show me. make a video, tweet it, share it on facebook. use the #mmy2k and we might use it on the air. >> can i get a boo-yah? don't miss a second of "mad money," follow @jimcramer on twitter. have a question? tweet cramer #madtweets. send jim an e-mail to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. what should we do now that oil and gold are surging higher? do you see those today? it was gold's day to shine. whenever we have one of these big bad events, and believe me the obama administration and congress taking their time to decide whether to shoot missiles at syria counts as a big, bad event. i like to take a step back, try to distance myself from the hysteria a bit. you don't want to make emotionally driven decisions in this business. you need to stay analytical. people who make emotional decisions lose. that's why tonight we're going off the charts. take a look at the rise in gold and oil with the help of the co-founder of decarly trading. as well as being my colleague at realmoney.com and a terrific technician with a great record of late with the show. if you want to play either gold or oil, you're going to have to table the whole syria issue. you have to take a broader perspective. why don't we start with gold, please? garner points out that seasonally this could be a good time to buy the precious metal. it just happens to be annually the best time because it tends to rally through late september or early october. on the other hand, though, the price of gold has run up more than $200 from the lows of under $1,200. nobody likes to chase in that situation. that's why garner recommends waiting for significant pullback and doing buying. why is garner so confident that it will be worth buying? well, let's take a look at the weekly chart of the price of gold. down at the bottom, you can see what's known as -- this is the cot report. the trading commission commitment of traders. that's a c of t traders report. many time here on off the charts. this lets you know about the holdings of commercial hedgers, while large speculators, the big institutional players trying to figure out what to do. they're buying and selling gold as investment. earlier this year liquidated their holdings in a wave of panic selling. wave of panic selling, right? and gold came down hard. bing, looright, look at that. they've been building their positions back up. and last week, large speculators were holding 78,000, that's the green one is large, the gold future contracts. but that is still a low number. it suggested garner even though gold is rebounding hard off the bottom, it has more room to run. the gold trade is far from crowded and far from over. how do we play this? check out gold's daily chart. garner thinks we could catch a nice pullback in gold after our government decides what to do in syria, that's the certainty element that should bring down gold, she expects traders to buy on the rumor of a syrian strike and sell on a fact, whatever the fact may be. she believes gold prices might actually relax when it happens simply because most of the buying will have taken place in anticipation of the attack. and if our government refrains from hitting syria, many people will decide to ring the register. and if we get that syrian selloff in gold, that will be the time to buy. if you look at the bottom of the chart, the relative strength indicator, the rsi, an indicator we use all the time here as well as the percentage oscillator developed by larry williams helps measure whether securities are overbought or oversold. both of these have drifted down out of overbought territory. it's coming down. based on where the two indicators are standing, garner thinks we could be in a back and fill mode for decent interval, that would be like this. bouncing around without a clear trend. if we get a pullback in the futures contract, then that would pique garner's interest in buying the precious metal. that's her level. she'd like to see a knee jerk decline down to 170, that's this level in the wake of a strike on syria which means garner would be able to get bullish again. she wants to see it go down, this level be a deal and then she thinks that. how about oil. let's take a look at this very different picture. when it comes to crude, garner's the opposite position. she wants to buy gold into weakness and thinks you should sell oil into strength. how do you like this? take a gander at the weekly chart of west texas crude. garner knows oil has a tendency to top out in mid september. have you ever thought about that? i hadn't. beyond that, i need to interject something. some of that might be because summer driving season is over. while auto has been rallies in anticipation of attack on syria, you've got to remember what happened after the united states got involved in conflicts in the middle east and north africa. remember after moammar gadhafi in libya two years ago, the price of oil in the united states dropped 10% immediately. garner expects to see that same pattern with syria especially unlike iraq and libya, the country's not a major oil producer. since 2011, syria's a net importer. net importer of crude at the moment. take a look at the commitment of traders report. that's the c.o.t., you're going to see the opposite of gold here. right now the large speculators are holding record net long positions of oil. they're over -- they're stacked to the gills with oil. when they eventually start ringing the register and looking at positions she believes could be brutal. let's check out the detail of weekly charts to see how low it can go. garner points out the price of crude is consolidating in a violent, violent but relatively narrow trading range. if oil spikes to an attack on syria, then garner doesn't think it would go past 115 or 116 a barrel. if that would happen, she would start betting against it aggressively. once the dust settles or there's no further rally, garner sees oil falling and falling hard, the price of crude drops below $100. garner thinks we could see a watershed cell all the way down to 90. wow. possible floor of support 96, maybe not. that's one you want to catch if you're a short seller. now, check out the slow oscillator near the bottom here. that's a classic technical tool that measures whether something's overbought or oversold. crude's been overbought since july. that's above that line is overbought. and every time the oscillators reach these levels in the last couple of years and pull back, we have seen stunning declines in oil. stunning, look at that. look at that pattern, every time we get that we've seen stunning declines. right now these are close to falling out of overboard territory, garner expects the trend to turn bearish, at the same time the moving average, that macd we focus on helps technicians measure directional momentum beginning to wane. we could be approaching a dreaded bearish crossover where the blue line crosses over the, well, the red line, you have to just -- i mean, it was a bearish cross that will drive things down. we have seen this used to good effect. and it's right on the verge of warning that oil could be in a lot of trouble. yeah, crossover's always been bad. take a look again. all we're doing is measuring what's happened in the previous selloffs and it's developing. this one is developing just like these three. so let me give you the bottom line. the charts interpreted by garner suggest gold and oil could be about to pullback when our government decides to attack syria. but garner thinks gold will be a buy into that weakness because it can bounce back while oil needs to be sold before it gets hammered. boy, that would be some decline. i want you out of oil. that's going to happen. stay with cramer. coming up -- playing for keeps, football is back. but instead of spending all your time setting up your fantasy squad, why not draft up some dollars? cramer's putting together a dream team of stocks that could lead you to victory for this season and beyond. 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[ crows ] s the snooze button? with the 2013 nfl season kicking off this thursday, it's time to play fantasy football "mad money" style. believe it or not, putting together a top-notch portfolio is a lot like building a terrific fantasy football team. and don't i know it. i know how to do both. you need to have a diversified collection of stock players that can fill in all the important positions. and you might spend hours upon hours figuring out who was the perfect fit for your team. in a shameless effort to get you to treat investing as seriously as people treat sports, all week we'll be drafting our football portfolio. tonight we're drafting some running backs, quarterback and a tight end. you don't have to pick the tight end until the last few rounds, but bear with me. running backs are the principal scorers, the most important day-to-day players on your team. that's what you need to have, the core nucleus. in fantasy football, people are going with adrian peterson from minnesota, ray rice from baltimore and doug martin from tampa bay. we need stocks like them, outperformers with low risk and higher reward. and that makes me think of classic industrials with aerospace exposure. if you're looking for stock equivalent of adrian all day peterson, let me recommend drafting some boeing for your portfolio. just like peterson, boeing comes back from injuries and comes back stronger to keep on taking yards, up 39% this year dee spi despite the fires and the sequester and the choppy stock market. they rolled out the 787 dreamliner but nothing like a major concussion or torn acl and now back and better than ever. increasing production of the dream liner right in the midst of the high-profile battery investigation, well, they threw the flag, but that gamble is starting to pay off. boeing's the only business i know of that can give you a 20-year outlook. right now the company is -- has an undelivered order backlog of 4,800 commercial airplanes, equivalent to roughly eight years of production at current rates and it's not just the dreamliner in high demand, the number one cost, jet fuel by purchasing newer more fuel-efficient aircraft. last thursday, we learned that boeing scored a $6.3 billion order from west jet for 65 737 airplanes. boeing's fleet is always in high demand. the latest quarter report at the end of july was spectacular and the stock trading at 14.4 times next year's earnings estimates, no wonder they're going to pick it first. slight premium in the 13% long-term growth rate. i think it's got a lot more room to run, more touchdowns ahead. how about a running back like ray rice. who is that? that's united technologies. that's the analog like rice, new techs can run, catch and block, perfect for a ppr portfolio. it's a diversified industrial play. company makes elevators, heating ventilation systems, also known as hvac, various other components, fire and safety security equipment and last but not least, commercial and military choppers. we just talked about how aerospace is worried that boeing got all the bases covered. a little more than a year ago, utx closed in on the acquisition of goodrich, another big aerospace supplier that looked like a really good quarter. a deal that's expected to generate $500 million annual synergies, plus business galore. meanwhile, the elevator business is on fire. orders up 23% in the latest quarter driven by strength in china. if i were that good -- remember, anywhere from 45 million to 60 million people from the country into the cities in china, every year, how about that for a trend? that creates powerful demand for elevators climate control systems, firing safety equipment. utx sells for 14.6 times next year's earnings estimates, 13.7% growth, solid 2% yield. i think this is one of the running backs that can cover a lot of yardage. boy, it really does feel like ray, doesn't it? ray better be available tonight when i do my picking. next draft pick, we need another running back. what stock can play for your portfolio the way doug martin plays for the tampa bay buccaneers? how about honeywell, another diversified industrial, same as united technology, exposure to aerospace, commercial, not much daylight between these players. not that much drop down. and the turbo charger business that can save you major gas mileage and it's benefitting enormously with tighter emission standards. honeywell has a history of terrific execution, continues to win new business and just like boeing and utx, it's a cheap stock if you get any acceleration in the global economy. 14 times earnings, throws off mountains of cash. all three of these running back stocks are closely clustered. boeing, united technologies, honey well, all beating the s&p 500, continuing to outperform through the year and beyond. now, we need to draft a quarterback. perhaps most important, i think overrated you can probably save to the fifth round. you need a quarterback who is consistent. someone who can throw a lot of passes and put up a lot of points. everyone's talking about green bay's aaron rogers and talking about scott wapner. rogers stock equivalent is clearly starbucks, reliable company with flashing can do it all. the best of class operator, and howard schultz is the ultimate leader on and off the field. the most recent quarter, starbucks blew away the numbers. that's crazy, how could the number one largest company have the best same-store sales, 9% in america. starbucks is a massive chain, 18,000 locations, a ton of room to grow, plans to open 700 new units in the fiscal year. starbucks asian business, enfuego. everything for high-quality baked goods to the tivana acquisition. transforming from tea bags and teapots. asking you to come in at the stores when you can buy them at the mall. plus, they're boosting the speed of the in store wi-fi by a factor of ten, getting chargers going on in there. something that shows management understands the customer. they are social media personified. starbucks trades at next year's earnings, 19.6% growth rate. i think the stock can throw many more touchdowns before it gets sacked. some say i have a man crush on starbucks, could cloud my draft judgment. i say just like my late idol al davis, just win, baby. now, how about washington's rg3? i think overrated, but he can pass, he can play fake, and for me -- well, not a pocket passer, but disney. people think disney's hurt because the last quarter was lackluster. i think disney's healthy and it can anchor your portfolio. disney's cable properties including espn are fabulous businesses in tremendous shape. i felt that cbs deal disney is worth even more. and broad cast tv, a little weak. disney is ready to rebound and resume its march higher, but i hope not against monday night because that's versus the eagles. finally a portfolio needs a tight end, most flexible player on the field, you've got to be able to run, got to be able to block, catch passes. in short, you want a stock that's like jimmy graham of new orleans saints. i got one, it's a gross cyclical, 3m, should pay for the vikings, right? they're located in minnesota. but this is a consistent performer and any lift in the global economy will highlight the organic growth 3m has been posting sending the stock higher. 3m is a breeze. here's the bottom line, for your fantasy stock football portfolio you need runningbacks, who are we drafting? we're drafting the equivalent of adrian peterson, boeing, ray rice, united technology, honeywell, you need a quarterback, go with starbucks, like rogers or bet on disney, rg3, healthier than people think. and 3m, come back tomorrow, we'll be on the clock to fill out the rest of the team. let's go to mike in california, please, mike? >> caller: big eggplant boo-yah from california, jim. >> hey, man, what's shaking to you? >> caller: hey, i bought target a while ago was thinking about selling it, but now i hear they're getting in the film rental business. >> that's not good enough reason to -- look, that's a challenge. i've got to throw a challenge flag on that. that is not what we're in for target. target we need to rebound, consumer spending, i think the stock is inexpensive. but i have no catalyst. robert in indiana. robert. >> caller: how are you doing, jim? >> real good, robert how about you? >> caller: fantastic. i wanted to get your future predictions for sm radio. >> i think sirius satellite is going higher. i cannot believe how many people listen to sirius. why? auto sales. auto sales are up, that is the fact it moves the needle. that's the metric you need for sirius satellite, why i like that stock, it is well-managed company and it goes higher! tonight is the "mad money" draft. can you believe it? you should spend as much time on stocks as you do on football players. stay with cramer. you know throughout history, folks have suffered from frequent heartburn. but getting heartburn and then treating day after day is a thing of the past. block the acid with prilosec otc, and don't get heartburn in the first place. 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[ chainsaw buzzing ] humans. sometimes, life trips us up. sometimes, we trip ourselves up. and although the mistakes may seem to just keep coming at you, so do the solutions. like multi-policy discounts from liberty mutual insurance. save up to 10% just for combining your auto and home insurance. call liberty mutual insurance at... to speak with an insurance expert and ask about all the personalized savings available for when you get married, move into a new house, or add a car to your policy. personalized coverage and savings -- all the things humans need to make our world a little less imperfect. call... and ask about all the ways you could save. liberty mutual insurance -- responsibility. what's your policy? it is time -- it is time for the "lightning round" on cramer's "mad money." rapid-fire calls, 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 cramer's "mad money." steve in michigan. steve? >> caller: big monroe, michigan, b-b-boo-yah, jim. >> what do you got for me? >> caller: what's your thoughts on hertz? >> stick with it. i know a lot of people were disappointed with the call. it had a big rally and now -- it'll go again. kevin in california. kevin? >> caller: hey, jim, big boo-yah from california. good news came out recently with a deal recently and i'm wondering how high this thing can go. >> i do not know compugen and i must do work on that because that's a great mystery to me. i will come back. let's go to john in my home state of pennsylvania. john? >> caller: boo-yah, mr. cramer. this is chris, i'm 9 years old and i enjoy your show very much. my dad has a question for you. >> sure, man, i love the 9-year-old audience. that's key. what's up? >> caller: hey, mr. cramer, what do you think about peabody energy, btu. >> look, my charitable trust got enough hurt in joy global, don't need to compound the pain with the btu. sell the btu, if you need coal, go to joy. which is joyless right now. how about john in california? john? >> caller: yes, boo-yah. >> boo-yah. >> caller: thank you very much for taking my call. >> of course. >> caller: my stock is apple, i'm not sure what to do about it. >> which one? what stock? oh, apple's fine. i don't have a catalyst, it's fine. it's inexpensive stock. if it had a catalyst, it would go up dramatically. i'm going to say my charitable trust likes it. not much more to say. arthur in massachusetts? arthur? >> caller: yes. >> go ahead, arthur. >> caller: um, i've been following isis pharmaceutical. and it goes up and down, up and down, and when i want to sell it, it goes down. and my question is i'm hearing something about a takeover. >> no, no -- look, forget the takeover. it's a good stock on its own. we don't know it's going to get taken over or not. but it does have a lot of compounds and we're encouraged by it and i think you can own it. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade. 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[ male announcer ] one pill each morning. 24 hours. zero heartburn. you know i've been an outspoken advocate of natural gas powered surface vehicles. i think it's ridiculous that -- subsidies that would help pace the transition, create some jobs. does it make sense to speculate on the stocks. westport innovations makes the technology that allows engines to rely on the natural gas. company lowered the full-year guidance and the stock got slammed falling from under $32 in a single day now dipping as low as $27 and change. however, this was a confusing quarter. as westport doesn't report revenue, some of the strongest areas. the joint venture with cummins is on fire. but precisely because these are joint ventures, westport doesn't report revenue from them. income below the line i find it confusing. plus, westport is working on a number of new products that won't start to show up in the numbers until 2014 or 2015. including partnerships with volvo and caterpillar. is the weakness a viable pullback? or is it something that should give us pause? let's check in with the founder and ceo of westport innovations, find out more about his company and where it is headed. welcome back to "mad money." >> hi, jim, great to be back. >> thank you, david. i want to go 30,000 feet, it's a little harder for me to analyze the company right now because you've got irons in the fire and the revenue lines aren't as clear for me. where are we in the ultimate transition from using diesel to natural gas for trucks light and heavy? >> well, obviously we're right at the very beginning at this stage, jim. if you look at the numbers, we're well under 1% of the vehicles that are sold in the market have natural gas. what's great is the trend line. and if you look at the trend line in north america and in china, you can see great growth. and as you know, we've been at this a long time and we've declared this year as the year we can see this happening. and i think most market analysts agree with us that we're going to see a substantial percentage of certainly heavy duty vehicles run on natural gas. it could be -- it could be very large percentage of the vehicles running on natural gas. but now everybody's scrambling to get product into the market and get the infrastructure in place and that's going to take time. >> let's talk about the scramble to get the infrastructure in place. i know you've got a close relationship with close energy fuel. but where is the shell? where is the bp? where are the giant oil companies that should be offering natural gas filling stations so if i take a westport truck, i can go clear across the country on any route i want and not worry? >> yeah, i think, i think you're seeing it. if you look closely, certainly it's not in the numbers because these guys are -- this is a rounding error for them, but if you look at the work we've been doing with shell for the past two years, building large-scale liquefiers that will be dedicated to supplying the true verdict market. we've got stations being built with them in canada. it does take some time. that said, these are large companies that have to watch their capital expenditures too. they're looking for customers. we have to be the matchmakers between the customers who are ready to go, where do we put the infrastructure? so it's early days, it's hard to see if you look backwards, but i think looking forwards, you can see all over the world we're going to see natural gas become a major fuel for transport. >> do you think the entrenched interests create a problem? i was working on cummins, which i think is the greatest company and it's very clear they're a good partner and they've got a couple of irons in the fire with you. but they've developed this diesel engine that was so clean that i would say, look, i don't need to switch to natural gas, the new cummins diesel engine is going to make it so all of the regulatory authorities around the world will be in love, again, with diesel. what are you going to do with the fact that diesel will be so clean? >> i think we've always said that you're going to see people buy products that meet emission standards. that's quite straightforward. natural gas is always going to be cleaner than diesel fuel. but whether people buy it for that reason or not is, you know, is really important. i think people are looking for natural gas because it's clean and cheap. and the third is we're going to see domestic availability in a lot of key markets like the united states. they have natural gas, they can get access to natural gas and avoid buying foreign oil. so this is a much more powerful long-term driver, we think of adoption rate than the environmental performance, the environmental performance comes for free. but, of course, we're going to see massive change in -- all across the automotive industry around emissions. and emissions is a powerful driver of technology change in this industry. we have to keep up, we have to exceed. but we're also convinced that if we can offer people a cheaper fuel, we're going to see a big shift. >> all right, david, we were at the -- we brought "mad money" to the f-150 -- the plant where they make them. you've got a good relationship with ford. demand, how is it? >> it's going really well. i think that the acquisition of baf really consolidated us as the leader with ford in their qvm program. they have a specific program for natural gas products where we design it and deliver it through their system. so that combination of those two makes us by far the biggest ford partner. i think we've got 10 or 11 products out there with them and the f-150 next year, which, of course, is really exciting will just be the latest in that. >> all right, david, one last question, you went over and over again on the conference call saying, look, because of your revenue streams for 2014, you do not need to worry about our cash burn. then i pick up the analyst reports and three of them say the cash burn is a real worry and westport is going to need to raise money. which is it? >> welm, that's a tough question. i think the short answer is we've never made a secret out of saying, look, if there's good ideas for deploying capital and we think there's lots of them around the world, we'll be back to shareholders to say what do you think about this idea? this is what we did around the caterpillar deal last year, as well. we went and funded that so we could pursue that opportunity, which we think is huge. but at the same time, we're confident that we've got a business plan that can get us to cash flow. you can see us making big investments in things like the 12-liter engine with cummins we launched this year. we think what's going to happen is that cash drain will drop substantially and that says we don't need to raise money if we're going to continue with our current business. will we raise more money for future opportunities while that depends on the opportunity and the timing? but no immediate plans. >> fair enough. thank you so much, david demers of westport innovations which is the natural gas engine company. thank you so much for coming on the show. >> thanks, jim. good talking to you. >> guys, this is -- i know some probably say, it's always going to come, what's the deal. but we all know that the adoption has taken far longer than we would like. but in the world of trucks, it's happening at lightning speed. wprt, do the work, stay with cramer. tomorrow, kick off the trading day with "squawk on the street." live from post 9:00 at the nyse. >> it's about being nice. last i looked it's about money. >> it is. >> it all starts at 9:00 a.m. eastern. humans. we are beautifully imperfect creatures living in an imperfect world. that's why liberty mutual insurance has your back, offering exclusive products like optional better car replacement, where if your car is totaled, we give you the money to buy one a model year newer. call... and ask an insurance expert about all our benefits today, like our 24/7 support and service, because at liberty mutual insurance, we believe our customers do their best out there in the world, so we do everything we can to be there for them when they need us. plus, you could save hundreds when you switch, up to $423. call... today. liberty mutual insurance -- responsibility. what's your policy? verizon's making the right move. microsoft's making a mistake. sure, maybe we'll regret the news when the handset division turns into a power house that crushes samsung and apple while verizon flounders and cuts its dividends because it paid too much when it shelled out $130 billion to buy the stake it doesn't own already. maybe microsoft got a deal with the handset business. maybe this is really microsoft's chance to get big into mobile and you have to respect it's better late than never. my problem, though, is that one company's throwing good money after a winner, verizon wireless, and the other's throwing good money after bad with a loser like nokia. verizon wireless is the 100 million subscriber gorilla. i know there's new competition t-mobile has a new ceo ready to pony up what's necessary to be competitive. i don't like verizon wireless as much as i did. i wish verizon only paid $130 billion and not $130 billion. i happen to be personally conservative about debt. but i guess the train is pulling out of the interest rate station so action is required and vodafone was motivated that the competition in u.s. could cut down on profitability here. verizon's numbers, they're going higher. when the deal was done, which means the stock is a buy when the smoke clears and settles down. you know what, maybe the stock is a buy right here. microsoft, i don't know why i would want to buy it unless it's going to split itself up and we have no idea if that's the case. we have an entertainment company and mobile company built with skype into this nokia phone. get it back to 28 where it was two quarters ago, down from $38.88. i think it might be worth a look. but that's a 10% fall from here. i wouldn't own the stock through that decline. nokia's a better play. it'll have large intellectual mapping portfolio plus all that cash. someone might take a run at it. that said f you bought it on my july call, it's time to sell. please, at least half your position and maybe all of it because i don't want to wait around for something to develop when it already has. you have the win, people. i think that microsoft deal smacks of desperation. apple's struggling with samsung and apple's a brilliant company that knows what it's doing. what has microsoft done right in the last decade other than xbox? verizon deal, verizon was fed up with doing everything right and forking over so much money to pay for vodafone, so much that it's borrowing cheaply to buy back its own shares. i keep thinking back to when i sat next to steve balmer at the college reunion and he showed me the nokia phone. it was fabulous, i couldn't believe how good it was. but many thought the zoom was superior to the ipod. where did that get you? it doesn't mean that much if the game is already over. with apple and samsung, i think the game is over because as much as i like the microsoft nokia phone, there isn't that much that's better about it, differentiation isn't that great enough. market dominance is too impossible to ignore unless microsoft actually pays verizon to take its phone instead of vice versa, i don't know. i don't see many people picking it up. and as the ceo of verizon told me today, he's going to wait by the phone for microsoft to call and offer to pay verizon to sell their phones. but i shouldn't get my hopes up. i can't think of another way they can beat the entrenched competition and paying verizon, that would be a costly way to do business. stay with cramer. building animatronics is all about getting things to work together. the timing, the actions, the reactions. everything has to synch up. my expenses are no different. receipt match from american express synchronizes your business expenses. just shoot your business card receipts and they're automatically matched up with the charges on your online statement. i'm john kaplan and i'm a member of a synchronized world. this is what membership is. this is what membership does. 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(announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies." a lot of stock coming in for sale in secondaries tonight. linkedin with a giant piece of stock. you know i think that one's great. hain, i know you won't like to see insider selling, but remember, please, hain had a monster quarter. it's completely okay that eventually people take profits. i want to look at both these, solar city, that's another hot one. so, one thing that we have to conclude, a little too much stock coming all at once. let's be a little careful. there's always a bull market somewhere, i'm jim cramer and i'll see you tomorrow! key leadership lawmakers in both political parties came out in support of military action in syria after today's meeting with the president. but it may be a tough close slog for mr. obama. and it's noteworthy, by the way, that stocks fell when the leadership endorsed an attack. and might a majority bipartisan vote on syria spill over to fights on the budget deal and the debt ceiling? is such a thing possible? by the way, the fed's next meeting, september 17th and 18th, that might be smack in the middle of a syrian bombing operation. what might that mean for the central bank? oh, my goodness. hon.

Transcripts For CNBC Mad Money 20130904

terrible battleground, when it should be at peace. and we saw this once again today with the averages roaring higher at the open only to pull back over the course of the session. at one point in the red before ultimately trading back up, dow edging higher, s&p advancing, nasdaq climbing .63%. what is ailing this market? i think it's the fact that people expect too much from it. they want a perfect world, they want something they aren't going to get, some combination of low interest rates, cheap stock prices, the resignation of bashar al assad in syria. higher commodity prices, but low inflation, a president that says no new taxes and a congress that says we need to help create more jobs and we're not going to worry about paying for it right now. i say, dream on. you aren't going to get that combination. it's too much. those leaning toward the bear camp, you need to settle for the following. one, while rates have, indeed and are going higher, they're no longer climbing at a breakneck pace that should so frighten you with their backing and filling along the journey to a 3% ten year. this market can handle a 3% figure, slightly higher than it is now. i do not expect a giant selloff when we get there. two, europe is now coming back very strong, aided by nokia. think about it, nokia's new cash, vodafone's amazing $131 billion hoard, thank you, verizon. i know, those are just two deals, but europe is not that big that you can't feel the impact of that money coming their way, believe it or not. three, china's truly generating good manufacturing numbers now. and i'm asking you to trust at least some of them. i think the action of some of the bigger cyclical names ex-caterpillar testifies there are some believers. i get the skepticism. the chinese communist party truly does at times live up to its name when it comes to reliability and transparency. not. verizon is pumping enough borrowed money into the stock market while stock markets worldwide say it's going to flow back here that it is a one-company stimulus plan. the $130 billion in new money can make people feel a little jiggy and i think you ought to recognize that other companies will say, heck, if i don't do anything bold soon, rates will get away from me. let me do some acquisitions. finally, five, we're still seeing stocks react to pretty good news, right? household products king jarden buys yankee candle and the acquirer roars, up huge $4.57. cbs gets a new cable deal, closing at 53.50, the banks involved in the verizon deal, they're going to see big vs. that's rational, that's what we want, that's what the bulls want. so, why didn't we sustain the rally and why do we end up going in the red at one point today? all right. let's spell out the bear case. first, the bear brief, as is often the case, comes right from washington. yeah, washington's at fault. we have no idea what's going to happen in syria and why we'll discuss its impact later on in the show. not knowing what will happen will make it difficult to plan your portfolio management. some would say your portfolio is small potatoes versus the real life woes of syria. i'm in that camp. but this is "mad money." and we're looking like a hesitant superpower to the market, and hesitant doesn't create confidence in jobs or in stocks. second, we have no idea who the new fed chief is going to be, none. most people i talk to are professional investors. they want janet yellen, but they don't want a bull in the china shop, but president obama's not taking accounts off anyone i speak to. he's in love with larry summers, some sort of bromance that knows no bounds. terrific that his gaffe-studded tenure as president of harvard university means nothing at all to president obama. i can't wait to hear his views on women in the labor force because i love the theater. third, we're now facing a government shutdown. we must remember how dysfunctional washington is every time the market opens 100 points. nobody, but nobody cares about the stock market. do they have a terminal? nobody says we could hurt the economy with our partisan rancor, it's not part of the political calculus of either party. even the gop, once a party that cared about business has not a care in the world about business as i can tell, especially social worth. now, i don't know about you, but if i hear one more jolly and happy-go-lucky home builder grab a mike and talk about how great everything is, i will scream. not only are homes not as affordable as they were, but if mortgage rates go above 5%, i simply don't care what the home builders say at all, their businesses are going to be hammered. that's what happens. interest rates go up and housing's hammered. they haven't repealed that cycle. that's what the stocks are saying. who am i to argue with the stocks? does anybody really, truly believe that housing's any good anymore? have you seen those stocks? what they're saying is, wow, people aren't buying homes at all. well, maybe some. fifth, retails become totally treacherous. we have no idea how back to school season is really going. somehow i don't think we're going to hear good things because this new consumer seems to be addicted to buying hard goods, not soft goods, and apparel's become a real bear and we think of retail, we think of apparel. six, i expect we could get a terrific employment number friday, which means we see rates go to 3.25%, as the fed will have to walk away from the bond buying to have some credibility. doesn't the fed want a little credibility? of course if we lose housing and retail cools, things should get worse the month after. how long can auto loans stay this robust? really. what's the deal there? it's september! real dog of a month. there are 11 months of the year i don't care about. i never buy into that sell in may and go away nonsense. i say buy in june, july, august, may -- whatever. not very catchy, but right. i'm fretting about the month of september, i always do. i lost a ton of money trading at my hedge fund in september. my charitable trust has rarely done well in september. it's a crumby month. i don't like the odds. hey, that's okay, the odds are bad. what's the right thing to do? well, here you go. i think you need to raise cash ahead of a slew of data and a rambunctious bond market so you can get ready for lower levels. no need to panic. this morning showed you how to get terrific rallies and you've always got to sell those morning rallies. don't worry, there'll be more of them coming, almost always phony and today was no different. sell them. let me just emphasize one more thing. right now the chinese and europeans have some momentum. we had momentum too. but washington is squandering it. when i say washington, not picking on the president, not picking on congress, i'm picking on a system that's gone amok where both parties sit there and pretend to do what's good for business. but we all know they aren't doing anything at all except helping to destroy it, because you need confidence to start a business or to hire or expand and last i looked, there's nothing confidence inspiring in washington. i think they know that even. we have no initiatives to create jobs, we have no energy policy. we're going to talk about that later on, that could generate a huge amount of employment. same time making us immunized against the middle east, something neither party seems to care about at all even though the headlines are dominated by the middle east, how intractable and caught up we are in it. here's the bottom line, there's a ton that's good, ton. but right now, the nays have it because washington's coming back into session. that means we have to raise some cash, do some rally selling until we see exactly how horribly the republicans and democrats are going to handle themselves this time around. we must recognize who is the enemy of your portfolio. it's not capital, it's not labor, it's not the communists, not the unions, not the middle east, it's washington, plain and simple. what else can i say other than, they're back. frank in new york, please, frank? >> caller: hey, what's up, cramer. >> not much, how about you? what's shaking? >> caller: all right. boo-yah. >> i like that. that'll do. that's a bada bing club. i've driven by it. what's up? >> caller: i want to know your take on wsm, williams sonoma. >> that's so funny. i'm listening to the conference call. everything's good and suddenly they drop a bomb and say, hey, some things aren't that good and it kind of took my breath away because this stock has moved up a great deal. that makes me lukewarm on williams sonoma which is a great company and a classic example of what i want to buy after it goes down. keep your friends close, okay. you've got to keep your enemies closer. washington, it's up to its old tricks, so beware. "mad money" will be right back. coming up -- crude conundrum. while wall street's focused on events overseas, cramer's uncovering signals buried deep in the technicals that could get you ahead of the next big move when he goes "off the charts." and later, playing for keeps, football is back but instead of studying your fantasy squad, why not draft up some dollars? cramer's putting together a dream team of stocks that could lead you to victory for this season and beyond. plus, keep on trucking, shares of west port innovations haven't been able to get out of first gear this year, and the stock broke down when it reported earnings in august. is the future of the natural gas engine stalling, or is this your chance to fuel up before it hits the road? cramer's exclusive is ahead. all coming up on "mad money." boo-yah, cramerica, "mad money" is quickly approaching our 2,000th show. why do i come out here every night? to level the playing field, to fight for you, to remind you that the american dream is alive and well, that you have a fighting chance against the big guys. to celebrate our 2,000th show, i want to know why you, the citizens of cramerica, watch. i ask why 2k. why is "mad money" important to you? >> boo-yah, jim, thanks for all you do for us little guys. >> i love "mad money" for the incredible ideas and insight jim offers. >> i love it. >> thanks for giving great advice. >> show me. send me a vine. make a video, tweet it, share it on facebook. use the hash tag #mmy2k and we might use it on the air. >> can i get a boo-yah? don't miss a second of "mad money," follow @jimcramer on twitter. have a question? tweet cramer #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. what should we do now that oil and gold are surging higher? do you see those today? at least partially in anticipation of syria, it was gold's day to shine. whenever we have one of these big bad events, and believe me the obama administration and congress taking their time to decide whether to shoot missiles at syria counts as a big, bad event. i like to take a step back, try to distance myself from the hysteria a bit. you don't want to make emotionally driven decisions in this business. you need to stay analytical. people who make emotional decisions lose. that's why tonight we're going off the charts. take a closer look at the rise in gold and oil with the help of the co-founder of decarly trading. an author of a book on commodities as well as being my colleague at realmoney.com and a terrific technician with a great record of late with the show. if you want to play either gold or oil, you're going to have to table the whole syria issue. you have to take a broader perspective. why don't we start with gold, please? garner points out that seasonally this could be a good time to buy the precious metal. it just happens to be annually the best time because it tends to rally through late september or early october. on the other hand, though, the price of gold has already run up more than $200 from the lows of under $1,200. nobody likes to chase in that situation. that's why garner recommends waiting for a significant pullback and doing buying. why is garner so confident that it will be worth buying? well, let's take a look at the weekly chart of the price of gold. down at the bottom, you can see what's known as -- this is the cot report. the commodity futures trading commission commitment of traders. that's a c of t traders report. many time here on off the charts. this lets you know about the holdings of commercial hedgers, while large speculators, the big institutional players trying to figure out what to do in the hedge funds. they're buying and selling gold as investment. earlier this year liquidated their holdings in a wave of panic selling. wave of panic selling, right? and gold came down hard. bing, right, look at that. they've been building their positions back up. and of last week, large speculators were holding 78,000, that's the green one is large, the gold future contracts. but that is still a very low number. it suggested garner, even though gold is rebounding hard off the bottom, it has more room to run. the gold trade is far from crowded and far from over. how do we play this? check out gold's daily chart. garner thinks we could catch a nice pullback in gold once our government decides what to do in syria, that's the certainty element that should bring down gold, she expects traders to buy on the rumor of a syrian strike and sell on a fact, whatever that fact may be. if the u.s. shoots missiles at syria, she believes gold prices might actually relax when it happens simply because most of the buying will have taken place in anticipation of the attack. and if our government refrains from hitting syria, many people will decide to ring the register. and if we get that syrian selloff in gold, garner says that will be the time to buy. if you look at the bottom of the chart, the relative strength indicator, the rsi, an indicator we use all the time here as well as the percentage r oscillator developed by larry williams helps measure whether securities are overbought or oversold. both of these key indicators have drifted down out of overbought territory. it's coming down. based on where these two indicators are standing, garner thinks we could be in a back and fill mode for a decent interval, that would be like this. bouncing around without a clear trend. if we get a pullback in the december gold futures contract, then that would pique garner's interest in buying the precious metal. that's her level. she'd like to see a knee jerk decline down to 1270, that's this level in the wake of a strike on syria which means garner would be able to get bullish again. she wants to see it go down, this level be a deal and then she thinks that. how about oil. let's take a look at this very different picture. when it comes to crude, garner's the exactly opposite position. she wants to buy gold into weakness and thinks you should sell oil into strength. how do you like this? take a gander at the weekly chart of west texas intermediate crude. garner knows oil has a strong tendency to top out in mid september. have you ever thought about that? i hadn't. beyond that, i need to interject something. some of that might be because summer driving season is over. while oil has been rallying in anticipation of attack on syria, you've got to remember what happened after the united states got involved in conflicts in the middle east and north africa. remember after moammar gadhafi in libya two years ago, the price of oil in the united states dropped 10% almost immediately. garner expects to see that same pattern repeat itself with syria especially unlike iraq and libya, the country's not a major oil producer. since 2011, syria's actually a net importer. net importer of crude at the moment. take a look at the commitment of traders report. that's the c.o.t., you're going to see the opposite of gold here. right now the large speculators are holding record net long positions of oil. they're over -- they're stacked to the gills with oil. when they eventually start ringing the register and looking at positions, the carnage she believes could be brutal. let's check out the detail of weekly charts to see how low it can go. garner points out the price of crude is consolidating in a violent, violent but relatively narrow trading range. if oil spikes due to an attack on syria, then garner doesn't think it would go past 115 or 116 a barrel. if that should happen, she would start betting against it aggressively. once the dust settles or if there's no further rally, garner sees oil falling and falling hard, the price of crude drops below $100. garner thinks we could see a watershed sell all the way down to 90. wow. possible floor of support 96, maybe not. that's one you want to catch if you're a short seller. now, check out the slow stochastic oscillator near the bottom here. that's a classic technical tool that measures whether something's overbought or oversold. crude's been overbought since july. that's above that line is overbought. and every time the oscillators reach these overbought levels in the last couple of years and then pull back, we have seen stunning declines in oil. stunning, look at that. look at that pattern, every time we get that we've seen stunning declines. right now these stochastics are close to falling out of overbought territory, garner expects the trend to turn bearish, at the same time the moving average, that macd we focus on helps technicians measure directional momentum beginning to wane. we could be approaching a dreaded bearish crossover where the blue line crosses over the, well, the red line, you have to just -- i mean, it was a bearish cross that will drive things down. we have seen this used to good effect lately, and it's right on the verge of warning that oil could be in a lot of trouble. yeah, crossover's always been bad. take a look again. all we're doing is measuring what's happened in these previous selloffs and it's developing. this one is developing just like these three. so let me give you the bottom line. the charts interpreted by carly garner suggest gold and oil could be about to pullback when our government decides to attack syria. but garner thinks that gold will be a buy into that weakness because it can bounce back while oil needs to be sold before it gets hammered. boy, that would be some decline. i want you out of oil. that's going to happen. stay with cramer. coming up -- playing for keeps. football is back. but instead of spending all your time setting up your fantasy squad, why not draft up some dollars? cramer's putting together a dream team of stocks that could lead you to victory for this season and beyond. with the 2013 nfl season kicking off this thursday, it's time to play fantasy football "mad money" style. believe it or not, putting together a top-notch portfolio is a lot like building a terrific fantasy football team. and don't i know it. i know how to do both. you need to have a diversified collection of stock players that can fill in all the important positions, and you might spend hours upon hours figuring out who is the perfect fit for your team. in a shameless effort to get you to treat investing as seriously as many people treat sports, all week we'll be drafting our ideal fantasy stock football portfolio. tonight we're drafting some running backs, a quarterback and a tight end. you don't have to pick the tight end until the last few rounds, but bear with me, fantasy freaks. running backs are the principal scorers, the most important day-to-day players on your team. that's what you need to have, the core nucleus. they need strength, experience. in fantasy football, people are going with adrian peterson from minnesota, ray rice from baltimore and doug martin from tampa bay. we need stocks like them, outperformers with low risk and high reward. and that makes me think of classic industrials with aerospace exposure. if you're looking for a stock equivalent of adrian all day peterson, let me recommend drafting some boeing for your portfolio. just like peterson, boeing comes back from injuries and comes back stronger to keep on taking yards, up 39% this year despite the fires and the sequester and the choppy stock market. they rolled out the 787 dreamliner but nothing like a major concussion or a torn acl and now the company is back and better than ever. increasing production of the dream liner right in the midst of the high-profile battery investigation, well, they threw the flag, but now that gamble is starting to pay off. boeing's the only business i know of that can give you a 20-year outlook. right now the company has an undelivered order backlog of 4,800 commercial airplanes, equivalent to roughly eight years of production at current rates, and it's not just the dreamliner that's in high demand, airlines seek to lower the number one cost, jet fuel by purchasing newer more fuel-efficient aircraft. last thursday, we learned that boeing scored a $6.3 billion order from west jet for 65 737 airplanes. boeing's fleet is always in high demand. the latest quarter report at the end of july was spectacular and the stock is still only trading at 14.4 times next year's earnings estimates, no wonder they're going to pick it first. slight premium in the 13% long-term growth rate. i think it's got a lot more room to run, a lot of touchdowns ahead. how about a running back like ray rice? who is that? that's united technologies. that's the analog. like rice, new techs can run, catch and block, perfect for a ppr portfolio. it's a diversified industrial play with six divisions. company makes elevators, heating ventilation systems, also known as hvac, various other components, fire and safety security equipment and last but not least, both commercial and military choppers. we just talked about how aerospace is worried that boeing got all the bases covered. a little more than a year ago, utx closed in on the acquisition of goodrich, another big aerospace supplier that looked like a really good quarter. a deal that's now expected to generate $500 million annual synergies, plus business galore. meanwhile, the elevator business is on fire. orders are up 23% in the latest quarter driven by strength in china. if i were that good -- remember, anywhere from 45 million to 60 million people from the country into the cities in china, every year, how about that for a trend? that creates powerful demand for elevators, climate control systems, fire and safety equipment. utx sells for 14.6 times next year's earnings estimates, 13.7% growth, solid 2% yield. i think this is one of those running backs that can still cover a lot of yardage. boy, it really does feel like ray, doesn't it? ray better be available tonight when i do my picking. next draft pick, we need another running back. what stock can play for your portfolio the way doug martin plays for the tampa bay buccaneers? how about honeywell, another diversified industrial, same as united technology, exposure to aerospace, commercial, residential construction, not much daylight between these players. not that much drop down. and the turbo charger business that can save you major gas mileage and it's benefitting enormously with tighter emission standards. honeywell has a history of terrific execution, continues to win new business and just like boeing and utx, it's a real cheap stock if you get any acceleration in the global economy. 14 times earnings, throws off mountains of cash. all three of these running back stocks are closely clustered. boeing, united technologies, honeywell, all beating the s&p 500, continuing to outperform through the year and beyond. now, we need to draft a quarterback. perhaps most important, i think overrated, you can probably save to the fifth round. you need a quarterback who is consistent, someone who can throw a lot of passes and put up a lot of points. everyone's talking about green bay's aaron rogers and talking about scott wapner's redskins and rgiii rogers stock equivalent is clearly starbucks, reliable company with flash and can do it all. the best of class operator, and howard schultz is the ultimate leader on and off the field. the most recent quarter, starbucks blew away the numbers. same store sales up 8%. that's crazy, how could the number one largest company have the best same-store sales, 9% in america. starbucks is a massive chain, 18,000 locations, a ton of room to grow, plans to open 700 new units in the fiscal year. starbucks asian business, en fuego. everything from high-quality baked goods to the teavana acquisition. transforming from a retailer of tea bags and teapots, asking you to come in at the stores when you can buy them at the mall. plus, they're boosting the speed of the in store wi-fi by a factor of ten, getting chargers going on in there. something that shows management understands the customer. they are social media personified. starbucks trades at 26.8 times next year's earnings, 19.6% growth rate. i think the stock can throw many more touchdowns before it gets sacked. some say i've got a man crush on starbucks, could cloud my draft judgment. i say just like my late idol al davis, just win, baby. now, how about washington's rgiii? i think overrated, but he can run, he can pass, he can play fake, and for me -- well, not a pocket passer, but disney. people think disney's hurt because the last quarter was lackluster. i think disney's healthy and it can anchor your portfolio. disney's cable properties including espn are fabulous businesses in tremendous shape. i felt that cbs deal, disney is worth even more. and while broadcast tv, a little weak, disney is ready to rebound and resume its march higher, but i hope not against monday night because that's versus the eagles. finally a portfolio needs a tight end, most flexible player on the field, you've got to be able to run, got to be able to block, got to be able to catch passes. in short, you want a stock that's like jimmy graham of the new orleans saints. i got one, it's a gross cyclical, 3m, should play for the vikings, right? they're located in minnesota. but this is a consistent performer and any lift in the global economy will highlight the organic growth 3m has been posting lately, also sending the stock higher. 3m is a breeze. here's the bottom line, for your fantasy stock football portfolio you need running backs, so who are we drafting? we're drafting the equivalent of adrian peterson, boeing, ray rice, united technology, doug martin, honeywell, you need a quarterback, go with starbucks, like rogers or bet on disney, rg3, healthier than people think. and finally a tight end, 3m, come back tomorrow, we'll be on the clock to fill out the rest of the team. let's go to mike in california, please, mike? >> caller: big eggplant boo-yah from california, jim. >> hey, man, what's shaking to you? >> caller: hey, i bought target a while ago, was thinking about selling it, but now i hear they're getting in the film rental business. should i keep it? >> that's not good enough reason to -- look, that's a challenge. i've got to throw a challenge flag on that. that is not what we're in for target. target we need to rebound consumer spending, i think the stock is inexpensive. but i have no catalyst. robert in indiana. robert. >> caller: how are you doing, jim? >> real good, robert, how about you? >> caller: fantastic. i just wanted to get your future predictions for sm radio. where do you see them going? >> i think sirius satellite is going higher. i cannot believe how many people listen to sirius. why? auto sales. auto sales are up. that is the factor that moves the needle. that's the metric you need for sirius satellite, why i like that stock, it is well-managed company and it goes higher! tonight is the "mad money" draft. can you believe it? you should spend as much time on stocks as you do on football players. stay with cramer. it is time -- it is time for the "lightning round" on cramer's "mad money." rapid-fire calls, 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 skidaddy? time for the "lightning round" on cramer's "mad money." steve in michigan. steve? >> caller: big monroe, michigan, b-b-boo-yah, jim. >> what do you got for me? >> caller: what's your thoughts on hertz? >> i want you to stick with it. i know a lot of people were disappointed with the call. it had a big rally and now -- it'll go again. kevin in california. kevin? >> caller: hey, jim, big boo-yah from california. good news came out recently with a deal with bayer recently and i'm wondering how high this thing can go. >> i do not know compugen and i must do work on that because that's a great mystery to me. i will come back. let's go to john in my old home state of pennsylvania. john? >> caller: boo-yah, mr. cramer. this is chris, i'm 9 years old and enjoy your show very much. my dad has a question for you. >> sure, man, i love the 9-year-old audience. that's key. what's up? >> caller: hey, mr. cramer, what do you think about peabody energy, btu. >> look, my charitable trust got enough hurt in joy global. don't need to compound the pain with the btu. sell the btu, if you need coal, go to joy. which is joyless right now. how about john in california? john? >> caller: yes, boo-yah. >> boo-yah. >> caller: thank you very much for taking my call. >> of course. >> caller: my stock is apple, i'm not sure what to do about it. >> which one? what stock? oh, apple's fine. i don't have a catalyst, i think it's fine. it's an inexpensive stock. if it had a catalyst, it would go up dramatically. i'm going to say my charitable trust likes it. not much more to say. arthur in massachusetts? arthur? >> caller: yes. >> go ahead, arthur. >> caller: i've been following isis pharmaceutical, and it goes up and down, up and down, and when i want to sell it, it goes down. and my question is i'm hearing something about a takeover. >> no, no -- look, forget the takeover. it's a good stock on its own. we don't know it's going to get taken over or not. but it does have a lot of compounds and we're encouraged by it and i think you can own it. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> the "lightning round" is >> th[ indistinct shouting ] you know i've been an outspoken advocate of natural gas powered surface vehicles. i think it's ridiculous that washington hasn't embraced this fuel with subsidies that would help pace the transition, create some jobs. does it make sense to speculate on the stocks. westport innovations makes the technology that allows engines to rely on the natural gas. company lowered the full-year guidance and the stock got slammed falling from under $32 in a single day now dipping as low as $27 and change. however, this was a confusing quarter, as westport doesn't report revenue in some of the strongest areas. the joint venture with cummins is on fire. the chinese joint venture is roaring. but precisely because these are joint ventures, westport doesn't report revenue from them. income below the line i find it confusing. plus, westport is working on a number of new products that won't start to show up in the numbers until 2014 or 2015, including partnerships with volvo and caterpillar. is the weakness a viable pullback or is it something that should give us pause? let's check in with the founder and ceo of westport innovations, find out more about his company and where it is headed. welcome back to "mad money." >> hi, jim, great to be back. >> thank you, david. i want to go first 30,000 feet, it's a little harder for me to analyze the company right now because you've got irons in the fire and the revenue lines aren't as clear for me. where are we in the ultimate transition from using diesel to natural gas for trucks light and heavy? >> well, obviously we're right at the very beginning at this stage, jim. if you look at the numbers, we're well under 1% of the vehicles that are sold in the market have natural gas. what's great is the trend line. and if you look at the trend line in north america and in china, you can see great growth. and as you know, we've been at this a long time and we've declared this year as the year we can see this happening, and i think most market analysts agree with us that we're going to see a substantial percentage of certainly heavy duty vehicles run on natural gas. it could be a very large percentage of the vehicles running on natural gas. but now everybody's scrambling to get product into the market and to get the infrastructure in place and that's going to take time. >> let's talk about the scramble to get the infrastructure in place. i know you've got a close relationship with clean energy fuel. but where is the shell? where is the bp? where are the giant oil companies that should be offering natural gas filling stations, so if i take a westport truck, i can go clear across the country on any route i want and not worry? >> yeah, i think you're seeing it. if you look closely, certainly it's not in the numbers because these guys are -- this is a rounding error for them, but if you look at the work we've been doing with shell for the past two years, shell are building large-scale liquefiers that will be dedicated to supplying the trucking market. we've got stations being built with them in canada. it does take some time. that said, these are large companies that have to watch their capital expenditures too. they're looking for customers. we have to be the matchmakers between the customers who are ready to go, where do we put the infrastructure? so it's early days, it's hard to see if you look backwards, but i think looking forwards, you can see all over the world we're going to see natural gas become a major fuel for transport. >> do you think the entrenched interests create a problem? i was working on cummins, which i think is the greatest company, and it's very clear they're a good partner and they've got a couple of irons in the fire with you. but they've developed this diesel engine that is so clean that i would say, look, i don't need to switch to natural gas, the new cummins diesel engine is going to be able to make it so all of the regulatory authorities around the world will be in love again with diesel. what are you going to do with the fact that diesel will be so clean? >> i think we've always said that you're going to see people buy products that meet emission standards. that's quite straightforward. natural gas is always going to be cleaner than diesel fuel, but whether people buy it for that reason or not is, you know, is really important. i think people are looking for natural gas because it's clean and cheap. and the third is we're going to see domestic availability in a lot of key markets like the united states. china has the same motivation. they have natural gas, they can get access to natural gas and avoid buying foreign oil. so this is a much more powerful long-term driver, we think of adoption rate than the environmental performance. the environmental performance comes for free. but, of course, we're going to see massive change in -- all across the automotive industry around emissions. and emissions is a powerful driver of technology change in this industry. we have to keep up, we have to exceed. but we're also convinced that if we can offer people a cheaper fuel, we're going to see a big shift. >> all right, david, we were at the -- we brought "mad money" to the f-150 -- the plant where they make them. you've got a good relationship now with ford. demand, how is it? >> it's going really well. i think that the acquisition of baf really consolidated us as the leader with ford in their qvm program. they have a specific program for natural gas products where we design it and we deliver it through their system. so that combination of those two makes us by far the biggest ford partner. i think we've got 10 or 11 products out there with them and the f-150 next year, which, of course, is really exciting, will just be the latest in that. >> all right, david, one last question, you went over and over again on the conference call saying look, because of your revenue streams for 2014, you do not need to worry about our cash burn. then i pick up all the analyst reports and three of them say the cash burn is a real worry and westport is going to need to raise money. which is it? >> well, that's a tough question. i think the short answer is we've never made a secret out of saying, look, if there's good ideas for deploying capital and we think there's lots of them around the world, we'll be back to shareholders to say what do you think about this idea? this is really what we did around the caterpillar deal last year, as well. we went and funded that so we could pursue that opportunity, which we think is huge. but at the same time, we're confident that we've got a business plan that can get us to cash flow. you can see us making big investments in things like the 12-liter engine with cummins we launched this year. we think what's going to happen over the next twelve months is that cash drain will drop substantially and that says we don't need to raise money if we're going to continue with our current business. will we raise more money for future opportunities? that depends on the opportunity and the timing. but no immediate plans. >> fair enough. thank you so much, david demers of westport innovations which is the natural gas engine company. thank you so much for coming on the show. >> thanks, jim. good talking to you. >> guys, this is -- i know some probably say, it's always going to come, what's the deal. but we all know that the adoption has taken far longer than we would like, but in the world of trucks, it's happening at lightning speed. wprt, do the work, stay with cramer. tomorrow, kick off the trading day with "squawk on the street" live from post nine at the nyse. >> it's about being nice. last i looked it's about money. >> it is. >> it all starts at 9:00 a.m. eastern. verizon's making the right move. microsoft's making a mistake. sure, maybe we'll regret those words when the new handset division turns into a power house that crushes samsung and apple while verizon flounders and cuts its dividends because it paid too much when it shelled out $130 billion to buy the stake it doesn't own already. maybe microsoft got a bargain with the handset business. maybe this is really microsoft's chance to get big into mobile, and you have to respect that it's better late than never. my problem, though, is that one company's throwing good money after a winner, verizon wireless, and the other's throwing good money after bad with a loser like nokia. verizon wireless is the 100 million subscriber gorilla. i know there's new competition now that sprint is with softbank and t-mobile has a new ceo ready to pony up what's necessary to be competitive. i don't like verizon wireless as much as i did. i wish verizon only paid $100 billion and not $130 billion. i happen to be personally conservative about debt, but i guess the train is pulling out of the interest rate station so action was required and vodafone was motivated that the competition in u.s. could cut down on profitability here. verizon's numbers, they're going higher. when the deal was done, which means the stock is a buy when the smoke clears and settles down. you know what, maybe the stock is a buy right here. microsoft, i don't know why i would want to buy it unless it's going to split itself up and we have no idea if that's the case. we have a utility, an entertainment company and mobile company built with skype into this nokia phone. kind of attractive. get it back to 28 where it was two quarters ago, down from $38.88. i think it might be worth a look. but that's a 10% fall from here. i wouldn't own the stock through that kind of decline. nokia's a better play. it'll have wireless infrastructure, mapping, a large intellectual mapping portfolio plus all that cash. someone might take a run at it. that said if you bought it on my july call, it's time to sell. please, at least half your position and maybe all of it because i don't want to wait around for something to develop when it already has. you have the win, people. i think that microsoft deal smacks of desperation. apple's struggling with samsung and apple's a brilliant company that knows what it's doing. what has microsoft done right in the last decade other than xbox? i can't think of anything. verizon deal, verizon was fed up with doing everything right and forking over so much money to pay for vodafone, so much that it's borrowing cheaply to buy back its own shares. i keep thinking back to when i sat next to steve balmer at our college reunion and he showed me the nokia phone. it was fabulous, i couldn't believe how good it was. but many thought the zoom was superior to the ipod. where did that get you? it doesn't mean that much if the game is already over. with apple and samsung, i think the game is already over because as much as i like the microsoft nokia phone, there simply isn't that much that's better about it, differentiation isn't that great enough. market dominance is too impossible to ignore unless microsoft actually pays verizon to take its phone instead of vice versa, i don't know. i don't see many people picking it up. and as the ceo of verizon told me today, he's going to wait by the phone for microsoft to call and offer to pay verizon to sell their phones. but i shouldn't get my hopes up. i can't think of another way they could beat the entrenched competition and paying verizon, that would be a pretty costly way to do business. stay with cramer. a lot of stock coming in for sale in secondaries tonight. linkedin with a giant piece of stock. you know i think that one's great. hain, i know you won't like to see insider selling, but remember, please, hain had a monster quarter. it's completely okay that eventually people take profits. i want to look at both these, solar city, that's another hot one. so, one thing that we have to conclude, a little too much stock coming all at once. let's be a little careful. there's always a bull market somewhere, i'm jim cramer and somewhere, i'm jim cramer and i'll see you tomorrow! of insider trading in history, and it's all caught on tape. raj rajaratnam had it all -- a wildly successful hedge fund, billions in the bank, and the respect of wall street. >> raj was a competitor first. he wanted to win. he wanted to win every day. >> narrator: but behind closed doors, rajaratnam was gaming the system -- to the tune of $75 million dollars. >> inside trading became his business model. >> narrator: and each time rajaratnam's phone is ringing, the feds are listening.

Transcripts For CNBC Mad Money 20130309

a confident retirement. those dreams have taken a beating lately. but no way we're going to let them die. ♪ ameriprise advisors can help keep your dreams alive like they helped millions of others. by listening. planning. working one on one. that's what ameriprise financial does. and that's what they can do with you. that's how ameriprise puts more within reach. ♪ i'm jim cramer, and welcome to my world. >> you need to get in the game! >> firms are going to go out of business, and he's nuts! they're nuts! they know nothing! >> i always like to say there's a bull market somewhere -- >> "mad money," you can't afford to miss it. hey, i'm cramer! welcome to "mad money." welcome to cramerica. some people want to make friends, i'm just trying to save you some money. my job is not just to entertain, but i'm coaching and i'm teaching, so call me at 1-800-743-cnbc. now -- now we've figured it out. now we know why we've been climbing. that's how you have to view this labor department hiring number that came out this morning. this is terrific. stunningly good 236,000 jobs that were created last month. it's one of the best numbers in years. okay, now, look. you say well, wait a second, the market didn't roar. the dow gained 68 points. but we've been rallying for weeks on end, including five straight days. taking out the all-time high. i think that's because the market anticipated this newfound job growth. you know i have been adamant that the economy started getting better the moment we had some certainty out of washington, and i don't regard the sequester as being major. it was taxes that i worried about. i measure things like housing, the auto sales. i measure shopping, lending. plus the boom coming from all of our oil and gas. and these have been signaling these kinds of terrific quotes. of course, the same people who want you to stay in your paycheck chains came out of their multi-million-dollar mansions all week to tell you that you can't buy stocks here because the economy is humming to the point where the fed has to stop its bond buying program. maybe stifle growth, and rates will shoot up when they try to sell all those bonds. these critics don't believe the fed chief ben bernanke knows what he is doing. and they've wanted you to sell all of your stocks for the same reason over and over again for thousands of dow points. these are the same wealthy souls who bemoan anything good that happens, because they've already made it and they don't care if you make it, too. look, it's entirely possible that bernanke actually does the right thing. interest rates go up. but the economy still gains steam and earnings, they're not crushed. that's been what's happened before. now, i know there's been billions of bonds bought. okay? but look, it's the earnings of the companies that are driving stocks higher. not the fed. those earnings are real. the fed isn't buying back the stock. the fed isn't issuing the dividends. these are profits and the profits are creating this rally. believe me, the earnings aren't going away any time soon. we know the truth. they're getting stronger. there's way too much emphasis from the talking head committee about how the rally has to end, and not enough talk about what if bernanke can wean us off cheap money as hiring improves and both consumers and corporations keep doing better. that's demonstrated from the transport index, from the dow. these are all-time highs, aren't done lightly. take it from me, five years ago, i think i was the biggest critic of ben bernanke around when the fed chief failed to realize the jam we were in with the financial crisis. they know nothing, they know nothing. but when uncle ben got it, he saved the banking system, something many of the critics didn't believe was possible and a lot of smart people said they should have nationalized the banks. they should give bernanke a little more credit and show humility in this fabulous rally in stocks that they couldn't have done a better job keeping you out of the that was their mission, if that's what they tried to do. with all that in mind, let's take a look at what's happening next week. yes, profit from it. unlike a lot of these guys, i actually want you to make money. that's why i do this show. first on monday, we've dick's and we have to be prepared. under armour, the smaller one, and nike, the larger one. i get a lot of questions @jimcramer on twitter about which is better, nike or under armour. nike has a big business in china. i'm going to defer any decision about u.a. versus nke until we do the dick's conference call because they're going to tell us. that's why we listen to these calls, they're going to tell us. yes, i do like dick's. after the close, we get some real controversy. i know a lot of you are angry that heckmann came on. this is a company that disposes fracking water. as the glutton in natural glass grew, heckmann's earnings got hurt. it's been recalibrating via acquisition. i think they will -- let's say this. they have to say something that will make us patient about a turn and i think they'll do that. tuesday is costco day. here is a stock that's been on hold since they paid a special dividend last year. all that happened in the interim is that the company's gotten stronger and stronger. travel trust used to own this. like a lot of other managers, we wanted to get back in. keep hoping for a fullback. but given that lowe's, walmart, or target gave us tepid guidance and yet still soared anyway, i just don't think costco is going to go down very much, if at all, even if it doesn't do a good job. and if it does, well let me say, if it disappoints, it won't stay down for long. it's a buy. also chevron hosts an important analyst meeting. this is one of my favorite oil companies, with prospects and a really amazing long-term positive view of natural gas. what are chevron's plans for all the natural gas in this country? how does it feel about splitting off refining and marketing operations? we've seen it. we've seen phillip's 66 and conoco. marathon petroleum, marathon oil. the two refining companies, they've rallied 24% and 40% respectively since the year began, hence why i'm always telling you breaking up is easy to do. i mean, look, chevron, if they split up, if they unlock that kind of value, they'll be gigantic. starwood, one of our absolute favorite hotels. i think this could be a great one. the ceo has done a magnificent job growing this company. don't forget, starwood is letting 100 new hotels bloom in china. i think that the hotel business remains stronger in the people's republic. even with the real estate business cooling over there. ideally, the plans to break up the company, splitting it into a management enterprise, the timeshare business. the hotel business can be fabulously lucrative if you get it right. wyndham worldwide hit another new high. may i say congratulations to steve holmes. he's the ceo of wyndham, which happens to be one of the most shareholder friendly bosses in the publicly traded world. thursday -- this is a new one for me. at least for a while. thursday we get results from diana shipping. we've hated them forever, but you know what? the freight index has i believe put in the bottom, it keeps up a little bit every day, it seems. while diana isn't necessarily cheap, it's already run up 22% for the year, i bet we'll actually like what we hear. i want to stay focused on this shipping group all next week. we also get a report from ulta salon, a franchise beauty retailer that we've liked for a long time. the management turnover -- we're not touching ulta anymore. i'm going to be in total listen mode. i will say i am concerned about ulta. i think this is going to generate a lot of excitement, a lot of buzz. honeywell hit an all-time high this week, that fabulous company's prospects at his analyst meeting. i would be a buyer ahead of this meeting for united technologies. price break from the market going down off of some number or spain or italy. some guy coming on tv saying the fed is drinking the punch bowl, whatever. most important, on thursday, we get the results of the second round of banks. we had the first round, okay? i'm reiterating, i think that the second round is going to be a big -- let's just say a wake-up call for people looking at sun trust. that's a bank that failed last time. we talked about it last night. we're thinking a nice return of capital, perhaps a 5% buyback, and a sweet bump in the currently american league dividend might be in order for sti, a once very proud bank that's no longer considered to be a blue chip. finally on friday, we get february industrial production numbers. i usually don't highlight this number, but in a nod to all the managers who fret endlessly about when the fed will start hurting the economy, these industry production numbers figured mightily in the tightening decision of alan greenspan. i bet if we get a number that shows strong industrial production, these bernanke blasters will call for his head for not immediately raising rates. maybe they're all short stocks. maybe they're not all in the market. i bet you some of them are actually not making money this year. let me give you the bottom line. unlike so many other talking heads, i actually like it when people are higher. i like it when you make money. i actually think that it's good, not bad for the economy. i actually trust ben bernanke, silly me. i say what's good for the economy is good for the stock market and good for corporate profits and good for you. which once again, we will hear about from a host of great american companies when they talk to us next week. let's go to denise in california, please. denise. >> caller: boo-yah. is this that sexy jim with a smoking hot body? >> no, no. this is a different jim. he's taken over that guy. >> caller: i have a question about petsmart. it's gone down since i bought it. and i know they offered poor guidance for the year. and also ross stores have gone down, too. should i buy more of each one? >> what did you start -- when you started you were talking about -- oh, never mind. you were discussing me. just trying to get the physique thing down. petsmart i actually think was an overreaction. i think it went down too much. ross stores was an overreaction. i think that went down too much. these stocks are now in the penalty box. we actually can't touch them until we see the next quarter. that may be a long time to wait, but i fear that people think like bed, bath & beyond that there's no coming back from these quarters. we've got to wait. patience. victor in ohio. victor? >> caller: yes, sir. jimmy, this is victor in columbus, ohio. great big urban meyer. >> man, i like urban meyer. what a powerhouse. and you know what? can we just stipulate that we don't need to watch s.e.c. football every single weekend? there are other conferences! go ahead. >> caller: hey, the reason i was calling, i'm a longtime investor in h&r block because of the great yield. i've been licking my wounds the last couple years. their story has changed here recently. they finally divested some of their toxic mortgage investments and they're refocused on their core business. i sold 20% stake at 24.80. it's now at 27. big run today. how much run do they have left? >> i remember when the stock was considerably higher. i've got to tell you. i remember when they turned down all the other things they were doing that were bad. i don't want you to sell anymore. i think this is a very compelling story. all right, what's good for jobs is good for the economy. what's good for the economy is good for the market. and if it's good for the market, it's good for corporate profits. so make sure you're listening to what these companies have to say. because i've got to tell you, it could be just still one more good week for those who are not frightened out of their wits and sitting with all their money in their mattress. "mad money" will be right back. coming up, train time? from trucks to now trains. >> it's real enough so we're spending real money. >> natural gas seems to be getting another shot at being a fuel of the future. westport innovations has the technology to make these engines roar to life. and after reporting better than expected earnings, is now the time to ride? or should you ease off the gas? cramer talks to the ceo just ahead. and later, medical might? the business of biotech is taking off. so cramer's focusing on the companies developing breakthrough drugs with cutting edge science. tonight, he spotted a speculative play that could be on the verge of the next big thing. all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. acceler-rental. at a hertz expressrent kiosk, you can rent a car without a reservation... and without a line. now that's a fast car. it's just another way you'll be traveling at the speed of hertz. you name it...i've hooked it. but there's one... one that's always eluded me. thought i had it in the blizzard of '93. ha! never even came close. sometimes, i actually think it's mocking me. [ engine revs ] what?! quattro!!!!! ♪ try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. on monday morning, warren buffett came on "squawk box" and in a stunner endorsed a cause that i've been championing for years. america's cheap plentiful natural gas as a replacement fuel for all sorts of surface vehicles. anything with an engine. he even told becky quick straight out that burlington northern, his railroad, was experimenting with natural gas powered trains. take a look. >> the railroads are definitely experimenting with converting to natural gas. it's not a simple matter and i can't tell you the technicalities of it, but it's real enough so we're spending real money. in fact, i think we ordered a couple units that we're working with. so when you get natural gas, three and a half dollars and you look at where oil is, you've got to look at converting any kind of an engine to natural gas. >> when i heard that, i thought that's westport innovations, wprt. they're involved in those engines. and makes the technology that allows engines to run on compressed to natural gas. and now locomotives. all that is still in the development stage and could take years to hit the market. the company has terrific partnerships, including one with cummings and another with caterpillar. we've been waiting for washington to embrace natural gas but i feel like it's pretty much a lost cause. as this fuel is just so much cheaper than anything oil-based. westport reported just last night the company missed the expectations, delivering a wider than expected loss, the stock jumped 89 cents or 3.15% today. westport is still around 20 points off its high, but the stock has rallied 12% since we last spoke to the ceo on november 12th. could 2013 be the year of the natural gas vehicles? could it be the year where westport gets closer to profitability? let's talk with david demers, the founder and ceo of westport innovations and find out more about the quarter and where the industry is headed. mr. demers, welcome back to "mad money." >> good to see you again, jim. >> all right, david, no doubt you heard the warren buffett comments. where is burlington northern, where is csx, where is union pacific in terms of the seriousness with which they're addressing locomotive engines for natural gas? >> i think it's very serious. it's been no secret, we're also working with cn rail, another one of the big players, and with the announcement with caterpillar and their emd division last june, it's no secret that everybody is really excited about the opportunity, and frankly, i don't think it's going to be years away. you can see everybody's moving now. they have to move. whether we get the entire rail industry converted over the next decade is another question. but people are moving now. it's really exciting. >> couldn't you just tell me what it looks like? here's what i'm thinking, you tell me. there's a train and behind it are some tanks, and because they carry the stuff, they could have tank after tank. do today really need to stop and get filled up all the time? >> no, it's one of the beauties of what's going on. i'm sure you've seen that we're moving a lot of oil by rail these days. well, we're starting to move natural gas by rail, too. it's dawning on a lot of people that we don't need to have refueling of locomotives in the yard. we can haul container loads, rail carloads behind the locomotive and fuel it as far as we want. we can refuel at one big central location. that's why you're seeing a lot of the gas providers get really excited about this opportunity. that does a bunch of things. it lets us get the rail business into moving natural gas, which is a new business. it gets them using a much cheaper fuel. it lets the gas providers find a great big new market, because as you know, these guys use a lot of fuel every year. so it's a really compelling opportunity, and what we have to do with our partners at caterpillar is work out the solution for everybody. and that's what's up. >> so why don't we ever just hear people say you bet, we're ordering 30 of these right now, it's just really terrific, they've got them, we'll take them. >> well, actually, we're hearing that. but maybe they don't want to go public with it, i don't know. but everybody's looking at it. we're in the stage now -- as we talked before, jim, there's always a stage in a new technology where you see doctors get out there and prove that the thing works, and that gets everybody's attention. and then the next phase is bit of a pause while everything else gets organized to get the price points, get all the details sorted out, and i think that's the pause we're in now. it's what i've been saying to our shareholders, that clearly the tipping point has happened but now they're getting ready for big search, which will take a few years. >> one of the reasons people get angry with me when i say i like this stock, is they say jim is there any hope in the near-term future, in the next two or three years that they can be profitable? sure, they've got good revenues, but they keep losing money. >> well, we said it yesterday, jim. i admit, we have been a bit rude about the word profit. it's still hard for me to say it. because in the early stages, i think you have to invest. we invest, invest, invest to get ready with technology, to get the market position, to get the strategic position, to get our i.p. portfolio. when you're ready to launch, it's time to focus on traditional business metrics. now we're look at growth margins and efficiencies and all that good stuff. so that's what we said yesterday. we think the business units that we organized into yesterday will show cash flow, positive cash flow this year, total company cash flow next year, and profitable in 15. so we're on it. >> i'll take it. i was with some truckers -- trucking companies, the largest ones during the super bowl in new orleans beginning last month. and one of the things they said is listen, it's the 12-liter engine and when are we going get 12-liter engine? that has been delayed. it's for trucks. that's the popular size. can that be made mass produced in volume by year end 2013? >> yeah, it is. and the delay, by the way, is people are waiting to get their hands on them. we haven't had any delays in announcement. we've got trucks on the road in test for about a year, and as you know, it's quite public that we're starting to ship them in april. it's next month. there's going to be a -- you know, a controlled release between now and probably august is what we're thinking right now. probably that early stage is what we're going to need to be cautious about. these are the first natural gas engines coming out of cummings jamestown plant. we want to release them to all of the oems, so there will be some start-up caution, but we're ready to mass produce end of this year, and it will be as many as the market would like, i think. >> and as you said, we are getting to that point now where it's about -- it's now -- it's proven. the technology is proven. >> yep. >> and now is the time. all right. >> thanks, jim. >> okay, good to see you, sir. david demers, the ceo of westport innovations. guys, can't give up. we're almost there! wprt. stay with cramer. coming up, medical might? the business of biotech is taking off. so cramer's focusing on the companies developing breakthrough drugs with cutting edge science. tonight, he spotted a speculative play that could be on the verge of the next big thing. aw this is tragic man, investors just like you could lose tens of thousands of dollars on their 401(k) to hidden fees. thankfully e-trade has low cost investments and no hidden fees. but, you know, if you're still bent on blowing this fat stack of cash, there's a couple of ways you could do it. ♪ ♪ or just go to e-trade and save it. boom. ♪ a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪ sure, the market is roaring of late. yes, there's plenty of money to be made in the old fashioned blue chips. that can take away from the desire to speculate. do you need to try to hit it out of the park with high-risk, high-reward plays when you can make so much money with kimberly clark? that said, we aren't going to stop trying terrific specs for you every friday. for those of you who want to go for the long ball, provided it's only a small part of your portfolio -- by the way, the federal reserve, they're not really involved with this part of the process. so, with that in mind, allow me to introduce you to a new name for speculation friday, or rather a very old name that we haven't tapped into in a long time, and the name is -- viropharma. vphm. it is my favorite kind of biotech, it's an orphan drug play. develops drugs for rare diseases. two stocks that have given us enormous gains since i first got behind them in october of 2010. many of you bought biomarin. orphan drugs are in the pharmaceutical sweet spots since they get extra incentives from the government. because otherwise they would go untreated. they're also the most expensive drugs out there. hundreds of thousands of dollars a year in some cases, because the people taking them, they don't have any other alternative. viropharma -- most people don't think of it as an orphan drug company at all because it didn't used to be one. the stock is off most investors' radar screens because the main product, an antibiotic went generic a year ago. i remember i said i'll write these guys off. companies had some manufacturing issues in the past. uncertainty about how the company would do. it fell from $27 and change, a 16% decline. not great. but something happened while everyone was either ignoring or selling this stock. viropharma transformed itself into an orphan drug company and now it's paying off. both for the underlying business and for the stock, which has rallied nicely 12% since the beginning of 2013. you know what? vphm, it's got a lot more room to run. >> all aboard! >> the new viropharma doesn't care about boring antibiotics. it's got a whole slate of sexy orphan drugs, the kind that wall street gets so excited about it. we have all these companies on air. they've got even more coming down the pipeline. first there's simrise for a disorder that can cause swelling in the face and the extremities. can send a person to the hospital. if the swelling happens in the upper airways, it can be life threatening. they have the only therapy on the market that is designed to prevent these attacks from happening, which is why they can charge something like $350,000 a year for the treatment. which is viropharma's new drug. the company bought it from a place called lev pharmaceutical. they paid $500 million. five months later, they got fda approval. and last august, they finally got industrial scale approval. which means the company can manufacture as much of the drug that it wants. when viropharma purchased them in 2008, they initially forecasted the drug could do peak sales of 350 to $450 million in the united states. four years later, they said peak sales could be double in one year. about double what they're doing now. viropharma's original forecast turned out to be way too conservative. i think the new one is, too. there are about 5,000 people in the united states who suffer, that we know of, from this disease, and in the four years since cinryze has been on the market, the company has penetrated just 20% of the patients. the vast majority of the people with this condition still go untreated. cinryze's sales should continue to exceed wall street's expectations. remember, they only paid $500 million for this drug in 2008. it's a steal considering how much money they're making off of it now. the fact that it could conservatively earn $700 million in peak sales down the road, it's not the stock, people. there is a concern you'll be hearing about. cinryze loses its market exclusivity. people are worried they could face competition from cfo pharmacists, a similar drug. i think these worries are overdone. with these rare orphan conditions, people are very unlikely to switch drugs. that's been the pattern that we've discovered once they find out it works. the drug people are worried about as competition -- the one that they're worried about, it has a shorter half-life than cinryze. it may not be as good at protecting against hie attacks. they are developing a more convenient version of cinryze. the current version needs to be taken via iv. the new one could be taken to last longer. even if the worst fears come true, this market is bigger than wall street believes it to be. so there should be room enough for two players to make plenty of money, but i'm betting on viropharma. it isn't a one-drug wonder. it's a very well-managed company. 2011, they brought a drug for adrenal insufficiency. they paid $37 million. these guys are very shrewd buyers. the drug has been approved in europe, just launched there a few months ago. now they are planning peak sales to 150 to $250 million in the eu alone. the fda asked for more data on this drug, so they'll have to do some additional study. in april, we should get more clarity on whether the united states would consider this one. we're going to stay on this story. the key is that viropharma -- i think we should be in the stock before we hear more about this drug's prospects in april in the united states. here's the bottom line. viropharma has transformed itself from a dally purveyor of antibiotics that nobody cared about to a rapidly growing red hot orphan drug company that nobody seems to know about, and wall street is just now starting to notice. the stock is picking up sponsorship. deutsche bank just upgraded to a buy. $37 price target on monday. i think you want to get onboard before more people realize how terrific the viropharma story has become. nothing is going to happen immediately. so do the homework. check it out. and only then can you pull the trigger. let's go to zack in my home state of new jersey. >> caller: boo-yah, mr. cramer! >> all right, an excellent stutter boo-yah to kick off this segment. >> caller: coming at you from the beautiful garden state. i want to get your opinion on pfizer. is this a good long-term bet? >> yes. i like pfizer, a lot of ways a key to this market, meaning it represents a blueprint drug stock that can go higher. they spun off the animal health division, they are doing so many things right, it's incredible. speculation in this market means finding stocks flying under the radar. that's what we're trying to do at this stage of the cycle. wall street doesn't get fully recognized to transform viropharma. take the time to do the homework. do it right. i've got to tell you, i think this could be a very good one. lightning round is next. coming up, you sent cramer to the books. he's got the answers you need. jim responds to your tweets @jimcramer #madtweets, and your e-mails just ahead. it is time! it's time for the lightning round! you think i'm just getting started, that's right. are you ready? time for the lightning round! start with christina in pennsylvania. christina? >> caller: what's going on, jim? >> not much. just kicking back for the weekend, like i know how to do that. what's up with you? >> caller: i just wanted to say boo-yah from pittsburgh. but here's my husband with the stock question. we love you. >> okay. >> c.a.b. record quarter, growth ahead. how much higher can it go? >> they're going to report this week. what i fear is that there's other moving parts here. why don't you do this, take half off ahead of the court. last time it got nailed. i don't want you to get nailed with the stock. let's go to jared in kentucky. >> caller: yeah! >> what's up, jared? >> caller: i'm calling from the cumberland river. >> boo-yah. what's going on? >> caller: i was wondering if i should buy rtk. >> no, no, no. no, we're not going to -- it's a real speculative. we decided we played gtls, which is gas to liquids, and the stock was down a buck and a quarter today. let's go to chris in virginia. chris. >> caller: boo-yah, jim. >> boo-yah, chris. >> caller: stock symbol ng. >> i saw this gold fund was down something like more than 26%. and it's got a big position at ng novagold, which is not good. i just think that you can hold on to it. but there's nothing exciting happening there. let's go to richard in florida. >> caller: hello, jim. faithful viewer at 6. the stock is oak tree. >> i like it. howard marx. he's a good friend. a real money pro at the street.com and will be grilling warren buffett at the big annual festival. let's go to frank in new york. frank? >> caller: boo-yah from nanuet, new york. >> i pass right by you on my way to work. so i hi to you all the time. what's up? >> i've had chesapeake in the portfolio and it's been red all year. it finally turned to green over the last two days. so i'm wondering if chesapeake has enough gas to keep going or should i take a modest profit and do something else. >> natural gas price is going up. this is not the nat gas stock i want you in. i think you wait until 23 and then sayonara! and that, ladies and gentlemen, is the conclusion of the lightning round! >> the lightning round is sponsored by td ameritrade. >> caller: hi, jim. this is bill from state college, pennsylvania. >> yes, nittany lions! >> how's pops? >> how's pops? we had the best time this weekend. went to dollar tree. it was just terrific. went to morning glory for brunch. got a lot of candy. met this woman. she said what are you doing here at the checkout? dollar tree. karen. in my home state of new jersey. >> caller: hi, jim. >> hi, karen. >> caller: i recently enjoyed a "mad money" burger at the hatch. >> you had the burger? did you like the dollar sign? i got a burger named after me. it's a cheeseburger -- it's -- anyway. >> caller: boo-yah from cincinnati. >> what's going on out there? >> caller: well, it's a little cloudy, but it's very nice, warm weather. >> that's good. a little chilly here today. i hope you had the relish. it's what really makes the burger work. do we have any swiss cheese? there are some things even this market cannot forgive. at the top of the list of unforgivable offenses, dividend cuts. you've got to beware of falling dividends. when i saw that atlantic power had a 10% yield, let's just say that was about as big a red flag as you can -- okay, what am i? i'm not lebron, what can i tell you? as big a red flag as you can get. i am lebron. >> wow! [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ but at xerox we've embraced a new role. working behind the scenes to provide companies with services... like helping hr departments manage benefits and pensions for over 11 million employees. reducing document costs by up to 30%... and processing $421 billion dollars in accounts payables each year. helping thousands of companies simplify how work gets done. how's that for an encore? with xerox, you're ready for real business. carfirmation. only hertz gives you a carfirmation. hey, this is challenger. i'll be waiting for you in stall 5. it confirms your reservation and the location your car is in, the moment you land. it's just another way you'll be traveling at the speed of hertz. before we get to your tweets, which are sent to @jimcramer on twitter, time to do some homework. on the last day of january, krex, a tiny biostock tech. i told deanna to hold off. i did some work here. on january 28th, keryx wowed the drug community. the data showed that the drug is doing much better than expensive i.v. drugs that are on the market right now. the news was a game changer. it had multi-billion-dollar potential. deanna called me, 162% move in five days. after that kind of run, i had no choice but to do some homework to see if there was upside left. since then, keryx has had an 18% decline. the analytics report created doubts about the company's ability to obtain a patent term extension. along with new chemical entity status for the drug. in my view, unless you can afford to buy a whole battalion of scientists and patent lawyers, it's too difficult for me. there's easier ways to make money out there. i don't need to nail everything. i just need to nail the real ones that are easier to do. because there's some easy ones right now. next up, february 7th, jason in massachusetts talked about liquidity services, lqdt, the world that finds the most transparent services. 1.7 million buying customers. on january 31st, liquidity services reported beefy estimates, but also cut guidance. reflecting the company's need to invest in online platforms, that is not a simple task, the stock is down 22% since the beginning of the year. however, we have been worried about liquidity services in the past. back on june 28th, i told you to stay away from this thing because e-bay was entering the wholesales base. warned about declining margins. the ceo wanted to sell a big chunk of its holdings. the company kept cutting guidance, and as a result the stock is down 37% from where i told you to sell it. so this is a company where management lacks credibility, faces lots of competition and also has high exposure to the department of defense. so i'm telling you right now stay away. let's go do some tweets. i'm going to go over here because someone always says jim, go over there. you just don't see them. first up, that's a little tv. there's other people in this room besides me. shocker. first up, we have @protraderx, who says @jimcramer, boo-yah, jim, i need your advice on kkd. take profits here or hold on? this guy does a lot of hash tagging. i think you sell kkd and roll it into dunkin' donuts where there's an incredibly strong multi-year story, not unlike domino's pizza. isn't it funny? i like dunkin' donuts and i also like to go and eat domino's pizza. this tweet is from @mestabule and she wrote to @jimcramerer thoughts on tibx. poised for recovery or a good exit point? they blew the quarter. i'm going to say that because that's what they did. they were just up 10%. i cannot recommend a stock -- i think it pulls back and we'll look at it again. i said we need to see the next quarter before i pull the trigger. "mad money" is back after the break. if you think running a restaurant is hard, try running four. fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. exploited versus unexploited. new names versus old names. overheated and overowned sectors versus underowned sectors that haven't heated up yet. that's where i think we are in the stock market. money managers all over the country are looking at stocks of countries hitting all-time highs. i said wait a second, give me something that's still behind long-term, behind the averages. you know, give me something i can make a thesis for buying. they want to know where there still might be value and right now they are finding little value in the consumer second supervisor. and a ton of value in the once growth names in tech, both hardware and software. companies like jbs uniphase, bmc software, computer sciences. before you jump up and down for these names because i tell you the hot money is flowing in, let me go ahead and tell you thousand money management business works. you know when you get to the supermarket and you see something labeled new, you might actually be more likely to try it than not, at least that's what all the brand people i have ever talked to tell me. it's not that much different than the money management business. there's an insatiable desire to hear new ideas and to take action on new ideas. even if they are companies that dazzle in a different time in yesteryear. when i first got in this business, texas instruments. think about all the electronic instruments that are now in your car versus what used to be in it. if you ever get a look at a late model ford or chevy, you will be in shock at how little instrumentation there was back then. these days cars are chock full of semiconductors. what was then called high-technology. the stock market equivalent of ancient history now. texas industry now considered gross domestic secular play. if there's growth in the economy -- if there's no growth, it languishes. an update showed the company might be having a growth spurt. inventories are leaner. things are getting better. the stock is highly anticipated, so it didn't gallop as much as you might have thought. no matter. texas instruments is getting talked about more than i've heard this years by fund managers who haven't looked at it in ages and i suspect it will be charging higher soon. breaking out of this long constraining range, these are things that indeed getting better than the earnings estimates for txn are probably too low in. the interim, it has raised the dividend to the point where it yields nearly 3.2%. that is an awfully nice cushion if the stock gets hit while you're waiting. think about the telecommunications companies. companies that haven't spent a lot of technology of late. think verizon and at&t. they're starting to spend again and they're making sense, too. in the meantime, companies that from provide information technology up, computer sciences, cse. cpwr? bmc? they're coming back to life as new and inexpensive speculations. companies are feeling more confident about spending. it's out with the old and in with the new, people. and the new in this case is overlooked, unloved technology from yesteryear. it's beginning to work and i suspect it keeps working as long as the stocks don't go so high that they're no longer considered cheap. the move into old tech is in its infancy, and those left behind stocks, they're now ready to run. stick with cramer. for over 75 years people have saved money with...ohhh... ...with geico... ohhh...sorry! director's voice: here we go. from the top. and action for over 75 years people have saved money with gecko so.... director's voice: cut it! ...what...what did i say? gecko? i said gecko? aw... for over 75 year...(laughs. but still trying to keep it contained) director's voice: keep it together. i'm good. i'm good. for over 75...(uncontrollable laughter). what are you doing there? stop making me laugh. vo: geico. saving people money for over seventy-five years. gecko: don't look at me. don't look at me. sales event has begun. ♪ featuring the powerful gs. ♪ just when you thought you had experienced performance a new ride comes along

Transcripts For CNBC Mad Money 20130309

paycheck chains came out of their multi-million-dollar mansions all week to tell you that you can't buy stocks here because the economy is humming to the point where the fed has to stop its bond buying program. maybe stifle growth, and rates will shoot up when they try to sell all those bonds. these critics don't believe the fed chief ben bernanke knows what he is doing. and they've wanted you to sell all of your stocks for the same reason over and over again for thousands of dow points. these are the same wealthy souls who bemoan anything good that happens, because they've already made it and they don't care if you make it, too. look, it's entirely possible that bernanke actually does the right thing. interest rates go up. but the economy still gains steam and earnings, they're not crushed. that's been what's happened before. now, i know there's been billions of bonds bought. okay? but look, it's the earnings of the companies that are driving stocks higher. not the fed. those earnings are real. the fed isn't buying back the stock. the fed isn't issuing the dividends. these are profits and the profits are creating this rally. believe me, the earnings aren't going away any time soon. we know the truth. they're getting stronger. there's way too much emphasis from the talking head committee about how the rally has to end, and not enough talk about what if bernanke can wean us off cheap money as hiring improves and both consumers and corporations keep doing better. that's demonstrated from the transport index, from the dow. these are all-time highs, aren't done lightly. take it from me, five years ago, i think i was the biggest critic of ben bernanke around when the fed chief failed to realize the jam we were in with the financial crisis. they know nothing, they know nothing. but when uncle ben got it, he saved the banking system, something many of the critics didn't believe was possible and a lot of smart people said they should have nationalized the banks. they should give bernanke a little more credit and show humility in this fabulous rally in stocks that they couldn't have done a better job keeping you out of the that was their mission, if that's what they tried to do. with all that in mind, let's take a look at what's happening next week. yes, profit from it. unlike a lot of these guys, i actually want you to make money. that's why i do this show. first on monday, we've dick's and we have to be prepared. under armour, the smaller one, and nike, the larger one. i get a lot of questions @jimcramer on twitter about which is better, nike or under armour. nike has a big business in china. i'm going to defer any decision about u.a. versus nke until we do the dick's conference call because they're going to tell us. that's why we listen to these calls, they're going to tell us. yes, i do like dick's. after the close, we get some real controversy. i know a lot of you are angry that heckmann came on. this is a company that disposes fracking water. as the glutton in natural glass grew, heckmann's earnings got hurt. it's been recalibrating via acquisition. i think they will -- let's say this. they have to say something that will make us patient about a turn and i think they'll do that. tuesday is costco day. here is a stock that's been on hold since they paid a special dividend last year. all that happened in the interim is that the company's gotten stronger and stronger. travel trust used to own this. like a lot of other managers, we wanted to get back in. keep hoping for a fullback. but given that lowe's, walmart, or target gave us tepid guidance and yet still soared anyway, i just don't think costco is going to go down very much, if at all, even if it doesn't do a good job. and if it does, well let me say, if it disappoints, it won't stay down for long. it's a buy. also chevron hosts an important analyst meeting. this is one of my favorite oil companies, with prospects and a really amazing long-term positive view of natural gas. what are chevron's plans for all the natural gas in this country? how does it feel about splitting off refining and marketing operations? we've seen it. we've seen phillip's 66 and conoco. marathon petroleum, marathon oil. the two refining companies, they've rallied 24% and 40% respectively since the year began, hence why i'm always telling you breaking up is easy to do. i mean, look, chevron, if they split up, if they unlock that kind of value, they'll be gigantic. starwood, one of our absolute favorite hotels. i think this could be a great one. the ceo has done a magnificent job growing this company. don't forget, starwood is letting 100 new hotels bloom in china. i think that the hotel business remains stronger in the people's republic. even with the real estate business cooling over there. ideally, the plans to break up the company, splitting it into a management enterprise, the timeshare business. the hotel business can be fabulously lucrative if you get it right. wyndham worldwide hit another new high. may i say congratulations to steve holmes. he's the ceo of wyndham, which happens to be one of the most shareholder friendly bosses in the publicly traded world. thursday -- this is a new one for me. at least for a while. thursday we get results from diana shipping. we've hated them forever, but you know what? the freight index has i believe put in the bottom, it keeps up a little bit every day, it seems. while diana isn't necessarily cheap, it's already run up 22% for the year, i bet we'll actually like what we hear. i want to stay focused on this shipping group all next week. we also get a report from ulta salon, a franchise beauty retailer that we've liked for a long time. the management turnover -- we're not touching ulta anymore. i'm going to be in total listen mode. i will say i am concerned about ulta. i think this is going to generate a lot of excitement, a lot of buzz. honeywell hit an all-time high this week, that fabulous company's prospects at his analyst meeting. i would be a buyer ahead of this meeting for united technologies. price break from the market going down off of some number or spain or italy. some guy coming on tv saying the fed is drinking the punch bowl, whatever. most important, on thursday, we get the results of the second round of banks. we had the first round, okay? i'm reiterating, i think that the second round is going to be a big -- let's just say a wake-up call for people looking at sun trust. that's a bank that failed last time. we talked about it last night. we're thinking a nice return of capital, perhaps a 5% buyback, and a sweet bump in the currently american league dividend might be in order for sti, a once very proud bank that's no longer considered to be a blue chip. finally on friday, we get february industrial production numbers. i usually don't highlight this number, but in a nod to all the managers who fret endlessly about when the fed will start hurting the economy, these industry production numbers figured mightily in the tightening decision of alan greenspan. i bet if we get a number that shows strong industrial production, these bernanke blasters will call for his head for not immediately raising rates. maybe they're all short stocks. maybe they're not all in the market. i bet you some of them are actually not making money this year. let me give you the bottom line. unlike so many other talking heads, i actually like it when people are higher. i like it when you make money. i actually think that it's good, not bad for the economy. i actually trust ben bernanke, silly me. i say what's good for the economy is good for the stock market and good for corporate profits and good for you. which once again, we will hear about from a host of great american companies when they talk to us next week. let's go to denise in california, please. denise. >> caller: boo-yah. is this that sexy jim with a smoking hot body? >> no, no. this is a different jim. he's taken over that guy. >> caller: i have a question about petsmart. it's gone down since i bought it. and i know they offered poor guidance for the year. and also ross stores have gone down, too. should i buy more of each one? >> what did you start -- when you started you were talking about -- oh, never mind. you were discussing me. just trying to get the physique thing down. petsmart i actually think was an overreaction. i think it went down too much. ross stores was an overreaction. i think that went down too much. these stocks are now in the penalty box. we actually can't touch them until we see the next quarter. that may be a long time to wait, but i fear that people think like bed, bath & beyond that there's no coming back from these quarters. we've got to wait. patience. victor in ohio. victor? >> caller: yes, sir. jimmy, this is victor in columbus, ohio. great big urban meyer. >> man, i like urban meyer. what a powerhouse. and you know what? can we just stipulate that we don't need to watch s.e.c. football every single weekend? there are other conferences! go ahead. >> caller: hey, the reason i was calling, i'm a longtime investor in h&r block because of the great yield. i've been licking my wounds the last couple years. their story has changed here recently. they finally divested some of their toxic mortgage investments and they're refocused on their core business. i sold 20% stake at 24.80. it's now at 27. big run today. how much run do they have left? >> i remember when the stock was considerably higher. i've got to tell you. i remember when they turned down all the other things they were doing that were bad. i don't want you to sell anymore. i think this is a very compelling story. all right, what's good for jobs is good for the economy. what's good for the economy is good for the market. and if it's good for the market, it's good for corporate profits. so make sure you're listening to what these companies have to say. because i've got to tell you, it could be just still one more good week for those who are not frightened out of their wits and sitting with all their money in their mattress. "mad money" will be right back. coming up, train time? from trucks to now trains. >> it's real enough so we're spending real money. >> natural gas seems to be getting another shot at being a fuel of the future. westport innovations has the technology to make these engines roar to life. and after reporting better than expected earnings, is now the time to ride? or should you ease off the gas? cramer talks to the ceo just ahead. and later, medical might? the business of biotech is taking off. so cramer's focusing on the companies developing breakthrough drugs with cutting edge science. tonight, he spotted a speculative play that could be on the verge of the next big thing. all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. on monday morning, warren buffett came on "squawk box" and in a stunner endorsed a cause that i've been championing for years. america's cheap plentiful natural gas as a replacement fuel for all sorts of surface vehicles. anything with an engine. he even told becky quick straight out that burlington northern, his railroad, was experimenting with natural gas powered trains. take a look. >> the railroads are definitely experimenting with converting to natural gas. it's not a simple matter and i can't tell you the technicalities of it, but it's real enough so we're spending real money. in fact, i think we ordered a couple units that we're working with. so when you get natural gas, three and a half dollars and you look at where oil is, you've got to look at converting any kind of an engine to natural gas. >> when i heard that, i thought that's westport innovations, wprt. they're involved in those engines. and makes the technology that allows engines to run on compressed to natural gas. and now locomotives. all that is still in the development stage and could take years to hit the market. the company has terrific partnerships, including one with cummings and another with caterpillar. we've been waiting for washington to embrace natural gas but i feel like it's pretty much a lost cause. as this fuel is just so much cheaper than anything oil-based. westport reported just last night the company missed the expectations, delivering a wider than expected loss, the stock jumped 89 cents or 3.15% today. westport is still around 20 points off its high, but the stock has rallied 12% since we last spoke to the ceo on november 12th. could 2013 be the year of the natural gas vehicles? could it be the year where westport gets closer to profitability? let's talk with david demers, the founder and ceo of westport innovations and find out more about the quarter and where the industry is headed. mr. demers, welcome back to "mad money." >> good to see you again, jim. >> all right, david, no doubt you heard the warren buffett comments. where is burlington northern, where is csx, where is union pacific in terms of the seriousness with which they're addressing locomotive engines for natural gas? >> i think it's very serious. it's been no secret, we're also working with cn rail, another one of the big players, and with the announcement with caterpillar and their emd division last june, it's no secret that everybody is really excited about the opportunity, and frankly, i don't think it's going to be years away. you can see everybody's moving now. they have to move. whether we get the entire rail industry converted over the next decade is another question. but people are moving now. it's really exciting. >> couldn't you just tell me what it looks like? here's what i'm thinking, you tell me. there's a train and behind it are some tanks, and because they carry the stuff, they could have tank after tank. do today really need to stop and get filled up all the time? >> no, it's one of the beauties of what's going on. i'm sure you've seen that we're moving a lot of oil by rail these days. well, we're starting to move natural gas by rail, too. it's dawning on a lot of people that we don't need to have refueling of locomotives in the yard. we can haul container loads, rail carloads behind the locomotive and fuel it as far as we want. we can refuel at one big central location. that's why you're seeing a lot of the gas providers get really excited about this opportunity. that does a bunch of things. it lets us get the rail business into moving natural gas, which is a new business. it gets them using a much cheaper fuel. it lets the gas providers find a great big new market, because as you know, these guys use a lot of fuel every year. so it's a really compelling opportunity, and what we have to do with our partners at caterpillar is work out the solution for everybody. and that's what's up. >> so why don't we ever just hear people say you bet, we're ordering 30 of these right now, it's just really terrific, they've got them, we'll take them. >> well, actually, we're hearing that. but maybe they don't want to go public with it, i don't know. but everybody's looking at it. we're in the stage now -- as we talked before, jim, there's always a stage in a new technology where you see doctors get out there and prove that the thing works, and that gets everybody's attention. and then the next phase is bit of a pause while everything else gets organized to get the price points, get all the details sorted out, and i think that's the pause we're in now. it's what i've been saying to our shareholders, that clearly the tipping point has happened but now they're getting ready for big search, which will take a few years. >> one of the reasons people get angry with me when i say i like this stock, is they say jim is there any hope in the near-term future, in the next two or three years that they can be profitable? sure, they've got good revenues, but they keep losing money. >> well, we said it yesterday, jim. i admit, we have been a bit rude about the word profit. it's still hard for me to say it. because in the early stages, i think you have to invest. we invest, invest, invest to get ready with technology, to get the market position, to get the strategic position, to get our i.p. portfolio. when you're ready to launch, it's time to focus on traditional business metrics. now we're look at growth margins and efficiencies and all that good stuff. so that's what we said yesterday. we think the business units that we organized into yesterday will show cash flow, positive cash flow this year, total company cash flow next year, and profitable in 15. so we're on it. >> i'll take it. i was with some truckers -- trucking companies, the largest ones during the super bowl in new orleans beginning last month. and one of the things they said is listen, it's the 12-liter engine and when are we going get 12-liter engine? that has been delayed. it's for trucks. that's the popular size. can that be made mass produced in volume by year end 2013? >> yeah, it is. and the delay, by the way, is people are waiting to get their hands on them. we haven't had any delays in announcement. we've got trucks on the road in test for about a year, and as you know, it's quite public that we're starting to ship them in april. it's next month. there's going to be a -- you know, a controlled release between now and probably august is what we're thinking right now. probably that early stage is what we're going to need to be cautious about. these are the first natural gas engines coming out of cummings jamestown plant. we want to release them to all of the oems, so there will be some start-up caution, but we're ready to mass produce end of this year, and it will be as many as the market would like, i think. >> and as you said, we are getting to that point now where it's about -- it's now -- it's proven. the technology is proven. >> yep. >> and now is the time. all right. >> thanks, jim. >> okay, good to see you, sir. david demers, the ceo of westport innovations. guys, can't give up. we're almost there! wprt. stay with cramer. coming up, medical might? the business of biotech is taking off. so cramer's focusing on the companies developing breakthrough drugs with cutting edge science. tonight, he spotted a speculative play that could be on the verge of the next big thing. 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[singing] hoveround takes me where i wanna go. call or log on to hoveround.com to find out where a hoveround can take you! sure, the market is roaring of late. yes, there's plenty of money to be made in the old fashioned blue chips. that can take away from the desire to speculate. do you need to try to hit it out of the park with high-risk, high-reward plays when you can make so much money with kimberly clark? that said, we aren't going to stop trying terrific specs for you every friday. for those of you who want to go for the long ball, provided it's only a small part of your portfolio -- by the way, the federal reserve, they're not really involved with this part of the process. so, with that in mind, allow me to introduce you to a new name for speculation friday, or rather a very old name that we haven't tapped into in a long time, and the name is -- viropharma. vphm. it is my favorite kind of biotech, it's an orphan drug play. develops drugs for rare diseases. two stocks that have given us enormous gains since i first got behind them in october of 2010. many of you bought biomarin. orphan drugs are in the pharmaceutical sweet spots since they get extra incentives from the government. because otherwise they would go untreated. they're also the most expensive drugs out there. hundreds of thousands of dollars a year in some cases, because the people taking them, they don't have any other alternative. viropharma -- most people don't think of it as an orphan drug company at all because it didn't used to be one. the stock is off most investors' radar screens because the main product, an antibiotic went generic a year ago. i remember i said i'll write these guys off. companies had some manufacturing issues in the past. uncertainty about how the company would do. it fell from $27 and change, a 16% decline. not great. but something happened while everyone was either ignoring or selling this stock. viropharma transformed itself into an orphan drug company and now it's paying off. both for the underlying business and for the stock, which has rallied nicely 12% since the beginning of 2013. you know what? vphm, it's got a lot more room to run. >> all aboard! >> the new viropharma doesn't care about boring antibiotics. it's got a whole slate of sexy orphan drugs, the kind that wall street gets so excited about it. we have all these companies on air. they've got even more coming down the pipeline. first there's simrise for a disorder that can cause swelling in the face and the extremities. can send a person to the hospital. if the swelling happens in the upper airways, it can be life threatening. they have the only therapy on the market that is designed to prevent these attacks from happening, which is why they can charge something like $350,000 a year for the treatment. which is viropharma's new drug. the company bought it from a place called lev pharmaceutical. they paid $500 million. five months later, they got fda approval. and last august, they finally got industrial scale approval. which means the company can manufacture as much of the drug that it wants. when viropharma purchased them in 2008, they initially forecasted the drug could do peak sales of 350 to $450 million in the united states. four years later, they said peak sales could be double in one year. about double what they're doing now. viropharma's original forecast turned out to be way too conservative. i think the new one is, too. there are about 5,000 people in the united states who suffer, that we know of, from this disease, and in the four years since cinryze has been on the market, the company has penetrated just 20% of the patients. the vast majority of the people with this condition still go untreated. cinryze's sales should continue to exceed wall street's expectations. remember, they only paid $500 million for this drug in 2008. it's a steal considering how much money they're making off of it now. the fact that it could conservatively earn $700 million in peak sales down the road, it's not the stock, people. there is a concern you'll be hearing about. cinryze loses its market exclusivity. people are worried they could face competition from cfo pharmacists, a similar drug. i think these worries are overdone. with these rare orphan conditions, people are very unlikely to switch drugs. that's been the pattern that we've discovered once they find out it works. the drug people are worried about as competition -- the one that they're worried about, it has a shorter half-life than cinryze. it may not be as good at protecting against hie attacks. they are developing a more convenient version of cinryze. the current version needs to be taken via iv. the new one could be taken to last longer. even if the worst fears come true, this market is bigger than wall street believes it to be. so there should be room enough for two players to make plenty of money, but i'm betting on viropharma. it isn't a one-drug wonder. it's a very well-managed company. 2011, they brought a drug for adrenal insufficiency. they paid $37 million. these guys are very shrewd buyers. the drug has been approved in europe, just launched there a few months ago. now they are planning peak sales to 150 to $250 million in the eu alone. the fda asked for more data on this drug, so they'll have to do some additional study. in april, we should get more clarity on whether the united states would consider this one. we're going to stay on this story. the key is that viropharma -- i think we should be in the stock before we hear more about this drug's prospects in april in the united states. here's the bottom line. viropharma has transformed itself from a dally purveyor of antibiotics that nobody cared about to a rapidly growing red hot orphan drug company that nobody seems to know about, and wall street is just now starting to notice. the stock is picking up sponsorship. deutsche bank just upgraded to a buy. $37 price target on monday. i think you want to get onboard before more people realize how terrific the viropharma story has become. nothing is going to happen immediately. so do the homework. check it out. and only then can you pull the trigger. let's go to zack in my home state of new jersey. >> caller: boo-yah, mr. cramer! >> all right, an excellent stutter boo-yah to kick off this segment. >> caller: coming at you from the beautiful garden state. i want to get your opinion on pfizer. is this a good long-term bet? >> yes. i like pfizer, a lot of ways a key to this market, meaning it represents a blueprint drug stock that can go higher. they spun off the animal health division, they are doing so many things right, it's incredible. speculation in this market means finding stocks flying under the radar. that's what we're trying to do at this stage of the cycle. wall street doesn't get fully recognized to transform viropharma. take the time to do the homework. do it right. i've got to tell you, i think this could be a very good one. lightning round is next. coming up, you sent cramer to the books. he's got the answers you need. jim responds to your tweets @jimcramer #madtweets, and your e-mails just ahead. it is time! it's time for the lightning round! it is time! it's time for the lightning round! you think i'm just getting started, that's right. are you ready? time for the lightning round! start with christina in pennsylvania. christina? >> caller: what's going on, jim? >> not much. just kicking back for the weekend, like i know how to do that. what's up with you? >> caller: i just wanted to say boo-yah from pittsburgh. but here's my husband with the stock question. we love you. >> okay. >> c.a.b. record quarter, growth ahead. how much higher can it go? >> they're going to report this week. what i fear is that there's other moving parts here. why don't you do this, take half off ahead of the court. last time it got nailed. i don't want you to get nailed with the stock. let's go to jared in kentucky. >> caller: yeah! >> what's up, jared? >> caller: i'm calling from the cumberland river. >> boo-yah. what's going on? >> caller: i was wondering if i should buy rtk. >> no, no, no. no, we're not going to -- it's a real speculative. we decided we played gtls, which is gas to liquids, and the stock was down a buck and a quarter today. let's go to chris in virginia. chris. >> caller: boo-yah, jim. >> boo-yah, chris. >> caller: stock symbol ng. >> i saw this gold fund was down something like more than 26%. and it's got a big position at ng novagold, which is not good. i just think that you can hold on to it. but there's nothing exciting happening there. let's go to richard in florida. >> caller: hello, jim. faithful viewer at 6. the stock is oak tree. >> i like it. howard marx. he's a good friend. a real money pro at the street.com and will be grilling warren buffett at the big annual festival. let's go to frank in new york. frank? >> caller: boo-yah from nanuet, new york. >> i pass right by you on my way to work. so i hi to you all the time. what's up? >> i've had chesapeake in the portfolio and it's been red all year. it finally turned to green over the last two days. so i'm wondering if chesapeake has enough gas to keep going or should i take a modest profit and do something else. >> natural gas price is going up. this is not the nat gas stock i want you in. i think you wait until 23 and then sayonara! and that, ladies and gentlemen, is the conclusion of the lightning round! >> the lightning round is sponsored by td ameritrade. >> caller: hi, jim. this is bill from state college, pennsylvania. >> yes, nittany lions! >> how's pops? >> how's pops? we had the best time this weekend. went to dollar tree. it was just terrific. went to morning glory for brunch. got a lot of candy. met this woman. she said what are you doing here at the checkout? dollar tree. karen. in my home state of new jersey. >> caller: hi, jim. >> hi, karen. >> caller: i recently enjoyed a "mad money" burger at the hatch. >> you had the burger? did you like the dollar sign? i got a burger named after me. it's a cheeseburger -- it's -- anyway. >> caller: boo-yah from cincinnati. >> what's going on out there? >> caller: well, it's a little cloudy, but it's very nice, warm weather. >> that's good. a little chilly here today. i hope you had the relish. it's what really makes the burger work. do we have any swiss cheese? there are some things even this market cannot forgive. at the top of the list of unforgivable offenses, dividend cuts. you've got to beware of falling dividends. when i saw that atlantic power had a 10% yield, let's just say that was about as big a red flag as you can -- okay, what am i? i'm not lebron, what can i tell you? as big a red flag as you can get. i am lebron. >> wow! no matter what, people can count on me to get the job done. so, when my prostate cancer returned, my doctor told me that this time can be different with provenge, a personalized treatment that lets me count on my own body to fight back. provenge is clinically proven to help extend life in certain men with advanced prostate cancer by taking your own blood cells and reprogramming them to jump-start your immune system, so it can attack your prostate cancer. provenge can cause serious reactions including those resulting from the infusion, and stroke. severe but infrequent infusion reactions include chills, fever, fatigue, weakness, breathing difficulties like shortness of breath, decreased oxygen and wheezing, dizziness, headache, high blood pressure, muscle ache, nausea, and vomiting. tell your doctor about all of your medical problems, including heart problems, lung problems, or history of stroke. call 1-800-843-8193 for more information. talk to your doctor and find out if the time is right for provenge. before we get to your tweets, which are sent to @jimcramer on twitter, time to do some homework. on the last day of january, krex, a tiny biostock tech. i told deanna to hold off. i did some work here. on january 28th, keryx wowed the drug community. the data showed that the drug is doing much better than expensive i.v. drugs that are on the market right now. the news was a game changer. it had multi-billion-dollar potential. deanna called me, 162% move in five days. after that kind of run, i had no choice but to do some homework to see if there was upside left. since then, keryx has had an 18% decline. the analytics report created doubts about the company's ability to obtain a patent term extension. along with new chemical entity status for the drug. in my view, unless you can afford to buy a whole battalion of scientists and patent lawyers, it's too difficult for me. there's easier ways to make money out there. i don't need to nail everything. i just need to nail the real ones that are easier to do. because there's some easy ones right now. next up, february 7th, jason in massachusetts talked about liquidity services, lqdt, the world that finds the most transparent services. 1.7 million buying customers. on january 31st, liquidity services reported beefy estimates, but also cut guidance. reflecting the company's need to invest in online platforms, that is not a simple task, the stock is down 22% since the beginning of the year. however, we have been worried about liquidity services in the past. back on june 28th, i told you to stay away from this thing because e-bay was entering the wholesales base. warned about declining margins. the ceo wanted to sell a big chunk of its holdings. the company kept cutting guidance, and as a result the stock is down 37% from where i told you to sell it. so this is a company where management lacks credibility, faces lots of competition and also has high exposure to the department of defense. so i'm telling you right now stay away. let's go do some tweets. i'm going to go over here because someone always says jim, go over there. you just don't see them. first up, that's a little tv. there's other people in this room besides me. shocker. first up, we have @protraderx, who says @jimcramer, boo-yah, jim, i need your advice on kkd. take profits here or hold on? this guy does a lot of hash tagging. i think you sell kkd and roll it into dunkin' donuts where there's an incredibly strong multi-year story, not unlike domino's pizza. isn't it funny? i like dunkin' donuts and i also like to go and eat domino's pizza. this tweet is from @mestabule and she wrote to @jimcramerer thoughts on tibx. poised for recovery or a good exit point? they blew the quarter. i'm going to say that because that's what they did. they were just up 10%. i cannot recommend a stock -- i think it pulls back and we'll look at it again. i said we need to see the next quarter before i pull the trigger. "mad money" is back after the break. exploited versus unexploited. new names versus old names. overheated and overowned sectors versus underowned sectors that haven't heated up yet. that's where i think we are in the stock market. money managers all over the country are looking at stocks of countries hitting all-time highs. i said wait a second, give me something that's still behind long-term, behind the averages. you know, give me something i can make a thesis for buying. they want to know where there still might be value and right now they are finding little value in the consumer second supervisor. and a ton of value in the once growth names in tech, both hardware and software. companies like jbs uniphase, bmc software, computer sciences. before you jump up and down for these names because i tell you the hot money is flowing in, let me go ahead and tell you thousand money management business works. you know when you get to the supermarket and you see something labeled new, you might actually be more likely to try it than not, at least that's what all the brand people i have ever talked to tell me. it's not that much different than the money management business. there's an insatiable desire to hear new ideas and to take action on new ideas. even if they are companies that dazzle in a different time in yesteryear. when i first got in this business, texas instruments. think about all the electronic instruments that are now in your car versus what used to be in it. if you ever get a look at a late model ford or chevy, you will be in shock at how little instrumentation there was back then. these days cars are chock full of semiconductors. what was then called high-technology. the stock market equivalent of ancient history now. texas industry now considered gross domestic secular play. if there's growth in the economy -- if there's no growth, it languishes. an update showed the company might be having a growth spurt. inventories are leaner. things are getting better. the stock is highly anticipated, so it didn't gallop as much as you might have thought. no matter. texas instruments is getting talked about more than i've heard this years by fund managers who haven't looked at it in ages and i suspect it will be charging higher soon. breaking out of this long constraining range, these are things that indeed getting better than the earnings estimates for txn are probably too low in. the interim, it has raised the dividend to the point where it yields nearly 3.2%. that is an awfully nice cushion if the stock gets hit while you're waiting. think about the telecommunications companies. companies that haven't spent a lot of technology of late. think verizon and at&t. they're starting to spend again and they're making sense, too. in the meantime, companies that from provide information technology up, computer sciences, cse. cpwr? bmc? they're coming back to life as new and inexpensive speculations. companies are feeling more confident about spending. it's out with the old and in with the new, people. and the new in this case is overlooked, unloved technology from yesteryear. it's beginning to work and i suspect it keeps working as long as the stocks don't go so high that they're no longer considered cheap. the move into old tech is in its infancy, and those left behind stocks, they're now ready to run. stick with cramer. no matter what, people can count on me to get the job done. so, when my prostate cancer returned, my doctor told me that this time can be different with provenge, a personalized treatment that lets me count on my own body to fight back.

Transcripts For CNBC Mad Money 20130311

s&p rose 0.45%. nasdaqed advanced 0.38%. but we've been rallying for weeks on end, including five straight days. taking out the all-time high. i think that's because the market anticipated this newfound job growth. you know i have been adamant that the economy started getting better the moment we had some certainty out of washington, and i don't regard the sequester as being major. it was taxes that i worried about. i measure things like housing, the auto sales. i measure shopping, lending. plus the boom coming from all of our oil and gas. and these have been signaling these kinds of terrific quotes. of course, the same people who want you to stay in your paycheck chains came out of their multi-million-dollar mansions all week to tell you that you can't buy stocks here because the economy is humming to the point where the fed has to stop its bond buying program. maybe stifle growth, and rates will shoot up when they try to sell all those bonds. these critics don't believe the fed chief ben bernanke knows what he is doing. and they've wanted you to sell all of your stocks for the same reason over and over again for thousands of dow points. these are the same wealthy souls who bemoan anything good that happens, because they've already made it and they don't care if you make it, too. look, it's entirely possible that bernanke actually does the right thing. interest rates go up. but the economy still gains steam and earnings, they're not crushed. that's been what's happened before. now, i know there's been billions of bonds bought. okay? but look, it's the earnings of the companies that are driving stocks higher. not the fed. those earnings are real. the fed isn't buying back the stock. the fed isn't issuing the dividends. these are profits and the profits are creating this rally. believe me, the earnings aren't going away any time soon. we know the truth. they're getting stronger. there's way too much emphasis from the talking head committee about how the rally has to end, and not enough talk about what if bernanke can wean us off cheap money as hiring improves and both consumers and corporations keep doing better. that's demonstrated from the transport index, from the dow. these are all-time highs, aren't done lightly. take it from me, five years ago, i think i was the biggest critic of ben bernanke around when the fed chief failed to realize the jam we were in with the financial crisis. they know nothing, they know nothing. but when uncle ben got it, he saved the banking system, something many of the critics didn't believe was possible and a lot of smart people said they should have nationalized the banks. they should give bernanke a little more credit and show humility in this fabulous rally in stocks that they couldn't have done a better job keeping you out of the that was their mission, if that's what they tried to do. with all that in mind, let's take a look at what's happening next week. yes, profit from it. unlike a lot of these guys, i actually want you to make money. that's why i do this show. first on monday, we've dick's and we have to be prepared. under armour, the smaller one, and nike, the larger one. i get a lot of questions @jimcramer on twitter about which is better, nike or under armour. nike has a big business in china. i'm going to defer any decision about u.a. versus nke until we do the dick's conference call because they're going to tell us. that's why we listen to these calls, they're going to tell us. yes, i do like dick's. after the close, we get some real controversy. i know a lot of you are angry that heckmann came on. this is a company that disposes fracking water. as the glutton in natural glass grew, heckmann's earnings got hurt. it's been recalibrating via acquisition. i think they will -- let's say this. they have to say something that will make us patient about a turn and i think they'll do that. tuesday is costco day. here is a stock that's been on hold since they paid a special dividend last year. all that happened in the interim is that the company's gotten stronger and stronger. travel trust used to own this. like a lot of other managers, we wanted to get back in. keep hoping for a fullback. but given that lowe's, walmart, or target gave us tepid guidance and yet still soared anyway, i just don't think costco is going to go down very much, if at all, even if it doesn't do a good job. and if it does, well let me say, if it disappoints, it won't stay down for long. it's a buy. also chevron hosts an important analyst meeting. this is one of my favorite oil companies, with prospects and a really amazing long-term positive view of natural gas. what are chevron's plans for all the natural gas in this country? how does it feel about splitting off refining and marketing operations? we've seen it. we've seen phillip's 66 and conoco. marathon petroleum, marathon oil. the two refining companies, they've rallied 24% and 40% respectively since the year began, hence why i'm always telling you breaking up is easy to do. i mean, look, chevron, if they split up, if they unlock that kind of value, they'll be gigantic. starwood, one of our absolute favorite hotels. i think this could be a great one. the ceo has done a magnificent job growing this company. don't forget, starwood is letting 100 new hotels bloom in china. i think that the hotel business remains stronger in the people's republic. even with the real estate business cooling over there. ideally, the plans to break up the company, splitting it into a management enterprise, the timeshare business. the hotel business can be fabulously lucrative if you get it right. wyndham worldwide hit another new high. may i say congratulations to steve holmes. he's the ceo of wyndham, which happens to be one of the most shareholder friendly bosses in the publicly traded world. thursday -- this is a new one for me. at least for a while. thursday we get results from diana shipping. we've hated them forever, but you know what? the freight index has i believe put in the bottom, it keeps up a little bit every day, it seems. while diana isn't necessarily cheap, it's already run up 22% for the year, i bet we'll actually like what we hear. i want to stay focused on this shipping group all next week. we also get a report from ulta salon, a franchise beauty retailer that we've liked for a long time. the management turnover -- we're not touching ulta anymore. i'm going to be in total listen mode. i will say i am concerned about ulta. i think this is going to generate a lot of excitement, a lot of buzz. honeywell hit an all-time high this week, that fabulous company's prospects at his analyst meeting. i would be a buyer ahead of this meeting for united technologies. price break from the market going down off of some number or spain or italy. some guy coming on tv saying the fed is drinking the punch bowl, whatever. most important, on thursday, we get the results of the second round of banks. we had the first round, okay? i'm reiterating, i think that the second round is going to be a big -- let's just say a wake-up call for people looking at sun trust. that's a bank that failed last time. we talked about it last night. we're thinking a nice return of capital, perhaps a 5% buyback, and a sweet bump in the currently american league dividend might be in order for sti, a once very proud bank that's no longer considered to be a blue chip. finally on friday, we get february industrial production numbers. i usually don't highlight this number, but in a nod to all the managers who fret endlessly about when the fed will start hurting the economy, these industry production numbers figured mightily in the tightening decision of alan greenspan. i bet if we get a number that shows strong industrial production, these bernanke blasters will call for his head for not immediately raising rates. maybe they're all short stocks. maybe they're not all in the market. i bet you some of them are actually not making money this year. let me give you the bottom line. unlike so many other talking heads, i actually like it when people are higher. i like it when you make money. i actually think that it's good, not bad for the economy. i actually trust ben bernanke, silly me. i say what's good for the economy is good for the stock market and good for corporate profits and good for you. which once again, we will hear about from a host of great american companies when they talk to us next week. let's go to denise in california, please. denise. >> caller: boo-yah. is this that sexy jim with a smoking hot body? >> no, no. this is a different jim. he's taken over that guy. >> caller: i have a question about petsmart. it's gone down since i bought it. and i know they offered poor guidance for the year. and also ross stores have gone down, too. should i buy more of each one? >> what did you start -- when you started you were talking about -- oh, never mind. you were discussing me. just trying to get the physique thing down. petsmart i actually think was an overreaction. i think it went down too much. ross stores was an overreaction. i think that went down too much. these stocks are now in the penalty box. we actually can't touch them until we see the next quarter. that may be a long time to wait, but i fear that people think like bed, bath & beyond that there's no coming back from these quarters. we've got to wait. patience. victor in ohio. victor? >> caller: yes, sir. jimmy, this is victor in columbus, ohio. great big urban meyer. buckeye booyah to you, jimmy. >> man, i like urban meyer. what a powerhouse. and you know what? can we just stipulate that we don't need to watch s.e.c. football every single weekend? there are other conferences! go ahead. >> caller: hey, the reason i was calling, i'm a longtime investor in h&r block because of the great yield. i've been licking my wounds the last couple years. their story has changed here recently. they finally divested some of their toxic mortgage investments and they're refocused on their core business. i sold 20% stake at 24.80. it's now at 27. big run today. how much run do they have left? >> i remember when the stock was considerably higher. i've got to tell you. i remember when they turned down all the other things they were doing that were bad. i don't want you to sell anymore. i think this is a very compelling story. all right, what's good for jobs is good for the economy. what's good for the economy is good for the market. and if it's good for the market, it's good for corporate profits. so make sure you're listening to what these companies have to say. because i've got to tell you, it could be just still one more good week for those who are not frightened out of their wits and sitting with all their money in their mattress. "mad money" will be right back. coming up, train time? from trucks to now trains. >> it's real enough so we're spending real money. >> natural gas seems to be getting another shot at being a fuel of the future. westport innovations has the technology to make these engines roar to life. and after reporting better than expected earnings, is now the time to ride? or should you ease off the gas? cramer talks to the ceo just ahead. and later, medical might? the business of biotech is taking off. so cramer's focusing on the companies developing breakthrough drugs with cutting edge science. tonight, he spotted a speculative play that could be on the verge of the next big thing. all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. on monday morning, warren buffett came on "squawk box" and in a stunner endorsed a cause that i've been championing for years. america's cheap plentiful natural gas as a replacement fuel for all sorts of surface vehicles. anything with an engine. he even told becky quick straight out that burlington northern, his railroad, was experimenting with natural gas powered trains. take a look. >> the railroads are definitely experimenting with converting to natural gas. it's not a simple matter and i can't tell you the technicalities of it, but it's real enough so we're spending real money. in fact, i think we ordered a couple units that we're working with. so when you get natural gas, three and a half dollars and you look at where oil is, you've got to look at converting any kind of an engine to natural gas. >> when i heard that, i thought that's westport innovations, wprt. they're involved in those engines. and makes the technology that allows engines to run on compressed to natural gas. and now locomotives. all that is still in the development stage and could take years to hit the market. the company has terrific partnerships, including one with cummings and another with caterpillar. we've been waiting for washington to embrace natural gas but i feel like it's pretty much a lost cause. as this fuel is just so much cheaper than anything oil-based. westport reported just last night the company missed the expectations, delivering a wider than expected loss, the stock jumped 89 cents or 3.15% today. westport is still around 20 points off its high, but the stock has rallied 12% since we last spoke to the ceo on november 12th. could 2013 be the year of the natural gas vehicles? could it be the year where westport gets closer to profitability? let's talk with david demers, the founder and ceo of westport innovations and find out more about the quarter and where the industry is headed. mr. demers, welcome back to "mad money." >> good to see you again, jim. >> all right, david, no doubt you heard the warren buffett comments. where is burlington northern, where is csx, where is union pacific in terms of the seriousness with which they're addressing locomotive engines for natural gas? >> i think it's very serious. it's been no secret, we're also working with cn rail, another one of the big players, and with the announcement with caterpillar and their emd division last june, it's no secret that everybody is really excited about the opportunity, and frankly, i don't think it's going to be years away. you can see everybody's moving now. they have to move. whether we get the entire rail industry converted over the next decade is another question. but people are moving now. it's really exciting. >> couldn't you just tell me what it looks like? here's what i'm thinking, you tell me. there's a train and behind it are some tanks, and because they carry the stuff, they could have tank after tank. do today really need to stop and get filled up all the time? >> no, it's one of the beauties of what's going on. i'm sure you've seen that we're moving a lot of oil by rail these days. well, we're starting to move natural gas by rail, too. it's dawning on a lot of people that we don't need to have refueling of locomotives in the yard. we can haul container loads, rail carloads behind the locomotive and fuel it as far as we want. we can refuel at one big central location. that's why you're seeing a lot of the gas providers get really excited about this opportunity. that does a bunch of things. it lets us get the rail business into moving natural gas, which is a new business. it gets them using a much cheaper fuel. it lets the gas providers find a great big new market, because as you know, these guys use a lot of fuel every year. so it's a really compelling opportunity, and what we have to do with our partners at caterpillar is work out the solution for everybody. and that's what's up. >> so why don't we ever just hear people say you bet, we're ordering 30 of these right now, it's just really terrific, they've got them, we'll take them. >> well, actually, we're hearing that. but maybe they don't want to go public with it, i don't know. but everybody's looking at it. we're in the stage now -- as we talked before, jim, there's always a stage in a new technology where you see doctors get out there and prove that the thing works, and that gets everybody's attention. and then the next phase is bit of a pause while everything else gets organized to get the price points, get all the details sorted out, and i think that's the pause we're in now. it's what i've been saying to our shareholders, that clearly the tipping point has happened but now they're getting ready for big search, which will take a few years. >> one of the reasons people get angry with me when i say i like this stock, is they say jim is there any hope in the near-term future, in the next two or three years that they can be profitable? sure, they've got good revenues, but they keep losing money. >> well, we said it yesterday, jim. i admit, we have been a bit rude about the word profit. it's still hard for me to say it. because in the early stages, i think you have to invest. we invest, invest, invest to get ready with technology, to get the market position, to get the strategic position, to get our i.p. portfolio. when you're ready to launch, it's time to focus on traditional business metrics. now we're look at growth margins and efficiencies and all that good stuff. so that's what we said yesterday. we think the business units that we organized into yesterday will show cash flow, positive cash flow this year, total company cash flow next year, and profitable in 15. so we're on it. >> i'll take it. i was with some truckers -- trucking companies, the largest ones during the super bowl in new orleans beginning last month. and one of the things they said is listen, it's the 12-liter engine and when are we going get 12-liter engine? that has been delayed. it's for trucks. that's the popular size. can that be made mass produced in volume by year end 2013? >> yeah, it is. and the delay, by the way, is people are waiting to get their hands on them. we haven't had any delays in announcement. we've got trucks on the road in test for about a year, and as you know, it's quite public that we're starting to ship them in april. it's next month. there's going to be a -- you know, a controlled release between now and probably august is what we're thinking right now. probably that early stage is what we're going to need to be cautious about. these are the first natural gas engines coming out of cummings jamestown plant. we want to release them to all of the oems, so there will be some start-up caution, but we're ready to mass produce end of this year, and it will be as many as the market would like, i think. >> and as you said, we are getting to that point now where it's about -- it's now -- it's proven. the technology is proven. >> yep. >> and now is the time. all right. >> thanks, jim. >> okay, good to see you, sir. david demers, the ceo of westport innovations. guys, can't give up. we're almost there! wprt. stay with cramer. coming up, medical might? the business of biotech is taking off. so cramer's focusing on the companies developing breakthrough drugs with cutting edge science. tonight, he spotted a speculative play that could be on the verge of the next big thing. sure, the market is roaring of late. yes, there's plenty of money to be made in the old fashioned blue chips. that can take away from the desire to speculate. do you need to try to hit it out of the park with high-risk, high-reward plays when you can make so much money with kimberly clark? that said, we aren't going to stop trying terrific specs for you every friday. for those of you who want to go for the long ball, provided it's only a small part of your portfolio -- by the way, the federal reserve, they're not really involved with this part of the process. so, with that in mind, allow me to introduce you to a new name for speculation friday, or rather a very old name that we haven't tapped into in a long time, and the name is -- viropharma. vphm. it is my favorite kind of biotech, it's an orphan drug play. develops drugs for rare diseases. two stocks that have given us enormous gains since i first got behind them in october of 2010. many of you bought biomarin. orphan drugs are in the pharmaceutical sweet spots since they get extra incentives from the government. because otherwise they would go untreated. they're also the most expensive drugs out there. hundreds of thousands of dollars a year in some cases, because the people taking them, they don't have any other alternative. viropharma -- most people don't think of it as an orphan drug company at all because it didn't used to be one. the stock is off most investors' radar screens because the main product, an antibiotic went generic a year ago. i remember i said i'll write these guys off. companies had some manufacturing issues in the past. uncertainty about how the company would do. it fell from $27 and change, a 16% decline. not great. but something happened while everyone was either ignoring or selling this stock. viropharma transformed itself into an orphan drug company and now it's paying off. both for the underlying business and for the stock, which has rallied nicely 12% since the beginning of 2013. you know what? vphm, it's got a lot more room to run. >> all aboard! >> the new viropharma doesn't care about boring antibiotics. it's got a whole slate of sexy orphan drugs, the kind that wall street gets so excited about it. we have all these companies on air. they've got even more coming down the pipeline. first there's simrise for a disorder that can cause swelling in the face and the extremities. can send a person to the hospital. if the swelling happens in the upper airways, it can be life threatening. they have the only therapy on the market that is designed to prevent these attacks from happening, which is why they can charge something like $350,000 a year for the treatment. which is viropharma's new drug. the company bought it from a place called lev pharmaceutical. they paid $500 million. five months later, they got fda approval. and last august, they finally got industrial scale approval. which means the company can manufacture as much of the drug that it wants. when viropharma purchased them in 2008, they initially forecasted the drug could do peak sales of 350 to $450 million in the united states. four years later, they said peak sales could be double in one year. about double what they're doing now. viropharma's original forecast turned out to be way too conservative. i think the new one is, too. there are about 5,000 people in the united states who suffer, that we know of, from this disease, and in the four years since cinryze has been on the market, the company has penetrated just 20% of the patients. the vast majority of the people with this condition still go untreated. cinryze's sales should continue to exceed wall street's expectations. remember, they only paid $500 million for this drug in 2008. it's a steal considering how much money they're making off of it now. the fact that it could conservatively earn $700 million in peak sales down the road, it's not the stock, people. there is a concern you'll be hearing about. cinryze loses its market exclusivity. people are worried they could face competition from cfo pharmacists, a similar drug. i think these worries are overdone. with these rare orphan conditions, people are very unlikely to switch drugs. that's been the pattern that we've discovered once they find out it works. the drug people are worried about as competition -- the one that they're worried about, it has a shorter half-life than cinryze. it may not be as good at protecting against hie attacks. they are developing a more convenient version of cinryze. the current version needs to be taken via iv. the new one could be taken to last longer. even if the worst fears come true, this market is bigger than wall street believes it to be. so there should be room enough for two players to make plenty of money, but i'm betting on viropharma. it isn't a one-drug wonder. it's a very well-managed company. 2011, they brought a drug for adrenal insufficiency. they paid $37 million. these guys are very shrewd buyers. the drug has been approved in europe, just launched there a few months ago. now they are planning peak sales to 150 to $250 million in the eu alone. the fda asked for more data on this drug, so they'll have to do some additional study. in april, we should get more clarity on whether the united states would consider this one. we're going to stay on this story. the key is that viropharma -- i think we should be in the stock before we hear more about this drug's prospects in april in the united states. here's the bottom line. viropharma has transformed itself from a dally purveyor of antibiotics that nobody cared about to a rapidly growing red hot orphan drug company that nobody seems to know about, and wall street is just now starting to notice. the stock is picking up sponsorship. deutsche bank just upgraded to a buy. $37 price target on monday. i think you want to get onboard before more people realize how terrific the viropharma story has become. nothing is going to happen immediately. so do the homework. check it out. and only then can you pull the trigger. let's go to zack in my home state of new jersey. >> caller: boo-yah, mr. cramer! >> all right, an excellent stutter boo-yah to kick off this segment. >> caller: coming at you from the beautiful garden state. i want to get your opinion on pfizer. is this a good long-term bet? >> yes. i like pfizer, a lot of ways a key to this market, meaning it represents a blueprint drug stock that can go higher. they spun off the animal health division, they are doing so many things right, it's incredible. speculation in this market means finding stocks flying under the radar. that's what we're trying to do at this stage of the cycle. wall street doesn't get fully recognized to transform viropharma. take the time to do the homework. do it right. i've got to tell you, i think this could be a very good one. lightning round is next. coming up, you sent cramer to the books. he's got the answers you need. jim responds to your tweets @jimcramer #madtweets, and your e-mails just ahead. it is time! it's time for the lightning [ male announcer ] ah... retirement. sit back, relax, pull out the paper and what? another article that says investors could lose tens of thousands of dollars in hidden fees on their 401(k)s?! seriously? seriously. you don't believe it? search it. "401(k) hidden fees." then go to e-trade and roll over your old 401(k)s to a new e-trade retirement account. we have every type of retirement account. none of them charge annual fees and all of them offer low cost investments. why? because we're not your typical wall street firm that's why. so you keep more of your money. e-trade. less for us. more for you. round! you think i'm just getting started, that's right. and then the lightning round is over. are you ready, skedaddy? time for the lightning round! start with christina in pennsylvania. christina? >> caller: what's going on, jim? >> not much. just kicking back for the weekend, like i know how to do that. what's up with you? >> caller: i just wanted to say boo-yah from pittsburgh. but here's my husband with the stock question. we love you. >> okay. >> c.a.b. record quarter, growth ahead. how much higher can it go? >> they're going to report this week. what i fear is that there's other moving parts here. why don't you do this, take half off ahead of the court. last time it got nailed. i don't want you to get nailed with the stock. let's go to jared in kentucky. >> caller: yeah! >> what's up, jared? >> caller: i'm calling from the cumberland river. >> boo-yah. what's going on? >> caller: i was wondering if i should buy rtk. >> no, no, no. no, we're not going to -- it's a real speculative. we decided we played gtls, which is gas to liquids, and the stock was down a buck and a quarter today. let's go to chris in virginia. chris. >> caller: boo-yah, jim. >> boo-yah, chris. >> caller: stock symbol ng. >> i saw this gold fund was down something like more than 26%. and it's got a big position at ng novagold, which is not good. i just think that you can hold on to it. but there's nothing exciting happening there. let's go to richard in florida. >> caller: hello, jim. faithful viewer at 6. the stock is oak tree. >> i like it. howard marx. he's a good friend. a real money pro at the street.com and will be grilling warren buffett at the big annual festival. let's go to frank in new york. frank? >> caller: boo-yah from nanuet, new york. >> i pass right by you on my way to work. so i hi to you all the time. what's up? >> i've had chesapeake in the portfolio and it's been red all year. it finally turned to green over the last two days. so i'm wondering if chesapeake has enough gas to keep going or should i take a modest profit and do something else. >> natural gas price is going up. this is not the nat gas stock i want you in. i think you wait until 23 and then sayonara! and that, ladies and gentlemen, is the conclusion of the lightning round! >> the lightning round is sponsored by td ameritrade. >> caller: hi, jim. this is bill from state college, pennsylvania. >> yes, nittany lions! >> how's pops? >> how's pops? we had the best time this weekend. went to dollar tree. it was just terrific. went to morning glory for brunch. got a lot of candy. met this woman. she said what are you doing here at the checkout? dollar tree. karen. in my home state of new jersey. >> caller: hi, jim. >> hi, karen. >> caller: i recently enjoyed a "mad money" burger at the hatch. >> you had the burger? did you like the dollar sign? i got a burger named after me. it's a cheeseburger -- it's -- anyway. >> caller: boo-yah from cincinnati. >> what's going on out there? >> caller: well, it's a little cloudy, but it's very nice, warm weather. >> that's good. a little chilly here today. i hope you had the relish. it's what really makes the burger work. do we have any swiss cheese? there are some things even this market cannot forgive. at the top of the list of unforgivable offenses, dividend cuts. you've got to beware of falling dividends. when i saw that atlantic power had a 10% yield, let's just say that was about as big a red flag as you can -- okay, what am i? i'm not lebron, what can i tell you? as big a red flag as you can get. i am lebron. >> wow! before we get to your tweets, which are sent to @jimcramer on twitter, time to do some homework. on the last day of january, krex, a tiny biostock tech. i told deanna to hold off. i did some work here. on january 28th, keryx wowed the drug community. the data showed that the drug is doing much better than expensive i.v. drugs that are on the market right now. the news was a game changer. it had multi-billion-dollar potential. deanna called me, 162% move in five days. after that kind of run, i had no choice but to do some homework to see if there was upside left. since then, keryx has had an 18% decline. the analytics report created doubts about the company's ability to obtain a patent term extension. along with new chemical entity status for the drug. in my view, unless you can afford to buy a whole battalion of scientists and patent lawyers, it's too difficult for me. there's easier ways to make money out there. i don't need to nail everything. i just need to nail the real ones that are easier to do. because there's some easy ones right now. next up, february 7th, jason in massachusetts talked about liquidity services, lqdt, the world that finds the most transparent services. 1.7 million buying customers. on january 31st, liquidity services reported beefy estimates, but also cut guidance. reflecting the company's need to invest in online platforms, that is not a simple task, the stock is down 22% since the beginning of the year. however, we have been worried about liquidity services in the past. back on june 28th, i told you to stay away from this thing because e-bay was entering the wholesales base. warned about declining margins. the ceo wanted to sell a big chunk of its holdings. the company kept cutting guidance, and as a result the stock is down 37% from where i told you to sell it. so this is a company where management lacks credibility, faces lots of competition and also has high exposure to the department of defense. so i'm telling you right now stay away. let's go do some tweets. i'm going to go over here because someone always says jim, go over there. you just don't see them. first up, that's a little tv. there's other people in this room besides me. shocker. first up, we have @protraderx, who says @jimcramer, boo-yah, jim, i need your advice on kkd. take profits here or hold on? this guy does a lot of hash tagging. i think you sell kkd and roll it into dunkin' donuts where there's an incredibly strong multi-year story, not unlike domino's pizza. isn't it funny? i like dunkin' donuts and i also like to go and eat domino's pizza. this tweet is from @mestabule and she wrote to @jimcramerer thoughts on tibx. poised for recovery or a good exit point? they blew the quarter. i'm going to say that because that's what they did. they were just up 10%. i cannot recommend a stock -- i think it pulls back and we'll look at it again. i said we need to see the next quarter before i pull the trigger. "mad money" is back after the break. exploited versus unexploited. new names versus old names. overheated and overowned sectors versus underowned sectors that haven't heated up yet. that's where i think we are in the stock market. money managers all over the country are looking at stocks of countries hitting all-time highs. i said wait a second, give me something that's still behind long-term, behind the averages. you know, give me something i can make a thesis for buying. they want to know where there still might be value and right now they are finding little value in the consumer second supervisor. and a ton of value in the once growth names in tech, both hardware and software. companies like jbs uniphase, bmc software, computer sciences. before you jump up and down for these names because i tell you the hot money is flowing in, let me go ahead and tell you thousand money management business works. you know when you get to the supermarket and you see something labeled new, you might actually be more likely to try it than not, at least that's what all the brand people i have ever talked to tell me. it's not that much different than the money management business. there's an insatiable desire to hear new ideas and to take action on new ideas. even if they are companies that dazzle in a different time in yesteryear. when i first got in this business, texas instruments. think about all the electronic instruments that are now in your car versus what used to be in it. if you ever get a look at a late model ford or chevy, you will be in shock at how little instrumentation there was back then. these days cars are chock full of semiconductors. what was then called high-technology. the stock market equivalent of ancient history now. texas industry now considered gross domestic secular play. if there's growth in the economy -- if there's no growth, it languishes. an update showed the company might be having a growth spurt. inventories are leaner. things are getting better. the stock is highly anticipated, so it didn't gallop as much as you might have thought. no matter. texas instruments is getting talked about more than i've heard this years by fund managers who haven't looked at it in ages and i suspect it will be charging higher soon. breaking out of this long constraining range, these are things that indeed getting better than the earnings estimates for txn are probably too low in. the interim, it has raised the dividend to the point where it yields nearly 3.2%. that is an awfully nice cushion if the stock gets hit while you're waiting. think about the telecommunications companies. companies that haven't spent a lot of technology of late. think verizon and at&t. they're starting to spend again and they're making sense, too. in the meantime, companies that from provide information technology up, computer sciences, cse. cpwr? bmc? they're coming back to life as new and inexpensive speculations. companies are feeling more confident about spending. it's out with the old and in with the new, people. and the new in this case is overlooked, unloved technology from yesteryear. it's beginning to work and i suspect it keeps working as long as the stocks don't go so high that they're no longer considered cheap. the move into old tech is in its infancy, and those left behind stocks, they're now ready to run. stick with cramer.

Transcripts For CNBC Mad Money 20130308

coming up on mad money, cramer has a buyer spec that could be ready to run. then west point innovations, the company's technology behind a switch for trains to run on natural gas. plus the game plan for next week, all coming up at the top of the hour. we're not done yet. time for the buck stops here. final word. andy, kick it off upon. >> two events short the euro. wednesday the industrial production for eurozone and friday italy's parliament coming together for the first time. >> i like to be long dollars, long sweden. i like to be short yen and short swiss franc. >> brian? >> aussie, aussie, aussie. aussie dollar yen, love it. >> i'm keeping my short sterling trade. not even james bond can save the uk economy. 1.48 is the target. >> shaken not stirred. your next chance to afternoon. we'll see you next friday, 5:30 eastern only on cnbc. i'm jim cramer and welcome to my world. you need to get in the game! they're nuts! i always like to say there's a bull market somewhere. "mad money." you can't afford to miss it. hey, i'm cramer! welcome to "mad money." welcome to cramerica. i'm just trying to save you some money. my job, not just to entertain, but i'm coaching and i'm teaching, so call me at 1-800-743-cnbc. now -- now we've figured it out. now we know why we've been climbing. that's how you have to view this labor department hiring number that came out this morning. this is terrific. stunningly good 236,000 jobs that were created last month. it's one of the best numbers in years. okay, now, look. you say well, wait a second, the market didn't roar. the dow gained 68 points. but we've been rallying for weeks on end, including five straight days. taking out the all-time high. i think that's because the market anticipated this newfound job growth. you know i have been adamant that the economy started getting better the moment we had some certainty out of washington, and i don't regard the sequester as being major. it was taxes that i worried about. i measure things like housing, the auto sales. i measure shopping, lending. plus the boom coming from all of our oil and gas. and these have been signaling these kinds of terrific quotes. of course, the same people who want you to stay in your paycheck chains came out of their multi-million-dollar mansions all week to tell you that you can't buy stocks here because the economy is humming to the point where the fed has to stop its bond buying program. maybe stifle growth, and rates will shoot up when they try to sell all those bonds. these critics don't believe the fed chief ben bernanke knows what he is doing. and they've wanted you to sell all of your stocks for the same reason over and over again for thousands of dow points. these are the same wealthy souls who bemoan anything good that happens, because they've already made it and they don't care if you make it, too. look, it's entirely possible that bernanke actually does the right thing. interest rates go up. but the economy still gains steam and earnings, they're not crushed. that's been what's happened before. now, i know there's been billions of bonds bought. okay? but look, it's the earnings of the companies that are driving stocks higher. not the fed. those earnings are real. the fed isn't buying back the stock. the fed isn't issuing the dividends. these are profits and the profits are creating this rally. believe me, the earnings aren't going away any time soon. we know the truth. they're getting stronger. there's way too much emphasis from the talking head committee about how the rally has to end, and not enough talk about what if bernanke can wean us off cheap money as hiring improves and both consumers and corporations keep doing better. that's demonstrated from the transport index, from the dow. these are all-time highs, aren't done lightly. take it from me, five years ago, i think i was the biggest critic of ben bernanke around when the fed chief failed to realize the jam we were in with the financial crisis. they know nothing, they know nothing. but when uncle ben got it, he saved the banking system, something many of the critics didn't believe was possible and a lot of smart people said they should have nationalized the banks. they should give bernanke a little more credit and show humility in this fabulous rally in stocks that they couldn't have done a better job keeping you out of the that was their mission, if that's what they tried to do. with all that in mind, let's take a look at what's happening next week. yes, profit from it. unlike a lot of these guys, i actually want you to make money. that's why i do this show. first on monday, we've got dix. this is the-- dick's and we have to be prepared. under armour, the smaller one, and nike, the larger one. i get a lot of questio questions @jimcramer on twitter about which is better, nike or under armour. nike has a big business in china. i'm going to defer any decision about u.a. versus nke until we do the dick's conference call because they're going to tell us. that's why we listen to these calls, they're going to tell us. yes, i do like dick's. after the close, we get some real controversy. i know a lot of you are angry that heckman came on. this is a company that disposes fracking water. as the glutton in natural glass grew, heckmann's earnings got hurt. it's been recalibrating via acquisition. i think they will -- let's say this. they have to say something that will make us patient about a turn and i think they'll do that. tuesday is costco day. here is a stock that's been on hold since they paid a special dividend last year. all that happened in the interim is that the company's gotten stronger and stronger. travel trust used to own this. like a lot of other managers, we wanted to get back in. keep hoping for a fullback. but given that lowe's, walmart, or target gave us tepid guidance and yet still soared anyway, i just don't think costco is going to go down very much, if at all, even if it doesn't do a good job. and if it does, well let me say, if it disappoints, it won't stay down for long. it's a buy. also chevron hosts an important analyst meeting. this is one of my favorite oil companies, with prospects and a really amazing long-term positive view of natural gas. what are chevron's plans for all the natural gas in this country? how does it feel about splitting off refining and marketing operations? we've seen it. we've seen phillip's 66 and conoco. marathon petroleum, marathon oil. the two refining companies, they've rallied 24% and 40% respectively since the year began, hence why i'm always telling you breaking up is easy to do. i mean, look, chevron, if they split up, if they unlock that kind of value, they'll be gigantic. starwood, one of our absolute favorite hotels. i think this could be a great one. the ceo has done a man ngnifice job growing this company. don't forget, starwood is letting 100 new hotels bloom in china. i think that the hotel business remains stronger in the people's republic. even with the real estate business cooling over there. ideally, the plans to break up the company, splitting it into a management enterprise, the timeshare business. the hotel business can be fabulously lucrative if you get it right. wyndham worldwide hit another new high. may i say congratulations to steve holmes. he's the ceo of wyndham, which happens to be one of the most shareholder friendly bosses in the publicly traded world. thursday -- this is a new one for me. at least for a while. thursday we get results from diana shipping. we've hated them forever, but you know what? the freight index has i believe put in the bottom, it keeps up a little bit every day, it seems. while diana isn't necessarily cheap, it's already run up 22% for the year, i bet we'll actually like what we hear. i want to stay focused on this shipping group all next week. we also get a report from ulta salon, a franchise beauty retailer that we've liked for a long time. the management turnover -- we're not touching ulta anymore. i'm going to be in total listen mode. i will say i am concerned about ulta. i think this is going to generate a lot of excitement, a lot of buzz. honeywell hit an all-time high this week, that fabulous company's prospects at his analyst meeting. i would be a buyer ahead of this meeting for united technologies. price break from the market going down off of some number or spain or italy. some guy coming on tv saying the fed is drinking the punch bowl, whatever. most important, on thursday, we get the results of the second round of banks. we had the first round, okay? i'm reiterating, i think that the second round is going to be a big -- let's just say a wake-up call for people looking at sun trust. that's a bank that failed last time. we talked about it last night. we're thinking a nice return of capital, perhaps a 5% buyback, and a sweet bump in the currently meager differeamerica dividend might be in order for sti, a once very proud bank that's no longer considered to be a blue chip. finally on friday, we get february industrial production numbers. i usually don't highlight this number, but in a nod to all the managers who fret endlessly about when the fed will start hurting the economy, these industry production numbers figured mightily in the tightening decision of alan greenspan. i bet if we get a number that shows strong industrial production, these bernanke blasters will call for his head for not immediately raising rates. maybe they're all short stocks. maybe they're not all in the market. i bet you some of them are actually not making money this year. let me give you the bottom line. unlike so many other talking heads, i actually like it when people are higher. i like it when you make money. i actually think that it's good, not bad for the economy. i actually trust ben bernanke, silly me. i say what's good for the economy is good for the stock market and good for corporate profits and good for you. which once again, we will hear about from a host of great american companies when they talk to us next week. let's go to denise in california, please. denise. >> caller: boo-yah. is this that sexy jim with a smoking hot body? >> no, no. this is a different jim. he's taken over that guy. >> caller: i have a question about petsmart. it's gone down since i bought it. and i know they offered poor guidance for the year. and also ross stores have gone down, too. should i buy more of each one? >> what did you start -- when you started you were talking about -- oh, never mind. you were discussing me. just trying to get the physique thing down. petsmart i actually think was an overreaction. i think it went down too much. ross stores was an overreaction. i think that went down too much. these stocks are now in the penalty box. we actually can't touch them until we see the next quarter. that may be a long time to wait, but i fear that people think like bed, bath & beyond that there's no coming back from these quarters. we've got to wait. patience. victor in ohio. victor? >> caller: yes, sir. jimmy, this is victor in columbus, ohio. great big urban meyer. >> man, i like urban meyer. what a powerhouse. and you know what? can we just stipulate that we don't need to watch s.e.c. football every single weekend? there are other conferences! go ahead. >> caller: hey, the reason i was calling, i'm a longtime investor in h&r block because of the great yield. i've been licking my wounds the last couple years. their story has changed here recently. they finally divested some of their toxic mortgage investments and they're refocused on their core business. i sold 20% stake at 24.80. it's now at 27. big run today. how much run do they have left? >> i remember when the stock was considerably higher. i've got to tell you. i remember when they turned down all the other things they were doing that were bad. i don't want you to sell anymore. i think this is a very compelling story. all right, what's good for jobs is good for the economy. what's good for the economy is good for the market. and if it's good for the market, it's good for corporate profits. so make sure you're listening to what these companies have to say. because i've got to tell you, it could be just still one more good week for those who are not frightened out of their wits and sitting with all their money in their mattress. "mad money" will be right back. coming up, train time? from trucks to now trains. >> it's real enough so we're spending real money. >> natural gas seems to be getting another shot at being a fuel of the future. westport innovations has the technology to make these engines roar to life. and after reporting better than expected earnings, is now the time to ride? or should you ease off the gas? cramer talks to the ceo just ahead. and later, medical might? the business of biotech is taking off. so cramer's focusing on the companies developing breakthrough drugs with cutting edge science. tonight, he spott eted a speculative play that could be on the verge of the next big thing. all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. announcer: where can an investor be a name and not a number? scottrade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: scottrade- proud to be ranked "best overall client experience." makes it easy for anne to manage her finances when she's on the go. even when she's not going anywhere. citibank for ipad. easier banking. standard at citibank. to deposit checks from anywhere. [ wind howling ] easier than actually going to the bank. mobile check deposit. easier banking. standard at citibank. on monday morning, warren buffett came on "squawk box" and in a stunner endorsed a cause that i've been championing for years. america's cheap plentiful natural gas as a replacement fuel for all sorts of surface vehicles. anything with an engine. he even told becky quick straight out that burlington northern, his railroad, was experimenting with natural gas powered trains. take a look. >> the railroads are definitely experimenting with converting to natural gas. it's not a simple matter and i can't tell you the technicalities of it, but it's real enough so we're spending real money. in fact, i think we ordered a couple units that we're working with. so when you get natural gas, three and a half dollars and you look at where oil is, you've got to look at converting any kind of an engine to natural gas. >> when i heard that, i thought that's westport innovations, wprt. they're involved in those engines. and makes the technology that allows engines to run on compressed to natural gas. and now locomotives. all that is still in the development stage and could take years to hit the market. the company has terrific partnerships, including one with cummings and another with caterpillar. we've been waiting for washington to embrace natural gas but i feel like it's pretty much a lost cause. as this fuel is just so much cheaper than anything oil-based. westport reported just last night the company missed the expectations, delivering a wider than expected loss, the stock jumped 89 cents or 3.15% today. westport is still around 20 points off its high, but the stock has rallied 12% since we last spoke to the ceo on november 12th. could 2013 be the year of the natural gas vehicles? could it be the year where westport gets closer to profitability? let's talk with david demers, the founder and ceo of westport innovations and find out more about the quarter and where the industry is headed. mr. demers, welcome back to "mad money." >> good to see you again, jim. >> all right, david, no doubt you heard the warren buffett comments. where is burlington northern, where is csx, where is union pacific in terms of the seriousness with which they're addressing locomotive engines for natural gas? >> i think it's very serious. it's been no secret, we're also working with cn rail, another one of the big players, and with the announcement with caterpillar and their emd division last june, it's no secret that everybody is really excited about the opportunity, and frankly, i don't think it's going to be years away. you can see everybody's moving now. they have to move. whether we get the entire rail industry converted over the next decade is another question. but people are moving now. it's really exciting. >> couldn't you just tell me what it looks like? here's what i'm thinking, you tell me. there's a train and behind it are some tanks, and because they carry the stuff, they could have tank after tank. do today really need to stop and get filled up all the time? >> no, it's one of the beauties of what's going on. i'm sure you've seen that we're moving a lot of oil by rail these days. well, we're starting to move natural gas by rail, too. it's dawning on a lot of people that we don't need to have refueling of locomotives in the yard. we can haul container loads, rail carloads behind the locomotive and fuel it as far as we want. we can refuel at one big central location. that's why you're seeing a lot of the gas providers get really excited about this opportunity. that does a bunch of things. it lets us get the rail business into moving natural gas, which is a new business. it gets them using a much cheaper fuel. it lets the gas providers find a great big new market, because as you know, these guys use a lot of fuel every year. so it's a really compelling opportunity, and what we have to do with our partners at caterpillar is work out the solution for everybody. and that's what's up. >> so why don't we ever just hear people say you bet, we're ordering 30 of these right now, it's just really terrific, they've got them, we'll take them. >> well, actually, we're hearing that. but maybe they don't want to go public with it, i don't know. but everybody's looking at it. we're in the stage now -- as we talked before, jim, there's always a stage in a new technology where you see doctors get out there and prove that the thing works, and that gets everybody's attention. and then the next phase is bit of a pause while everything else gets organized to get the price points, get all the details sorted out, and i think that's the pause we're in now. it's what i've been saying to our shareholders, that clearly the tipping point has happened but now they're getting ready for big search, which will take a few years. >> one of the reasons people get angry with me when i say i like this stock, is they say jim is there any hope in the near-term future, in the next two or three years that they can be profitable? sure, they've got good revenues, but they keep losing money. >> well, we said it yesterday, jim. i admit, we have been a bit rude about the word profit. it's still hard for me to say it. because in the early stages, i think you have to invest. we invest, invest, invest to get ready with technology, to get the market position, to get the strategic position, to get our i.p. portfolio. when you're ready to launch, it's time to focus on traditional business metmetrics. now we're look at growth margins and efficiencies and all that good stuff. so that's what we said yesterday. we think the business units that we organized into yesterday will show cash flow, positive cash flow this year, total company cash flow next year, and profitable in 15. so we're on it. >> i'll take it. i was with some truckers -- trucking companies, the largest ones during the super bowl in new orleans beginning last month. and one of the things they said is listen, it's the 12-liter engine and when are we going get 12-liter engine? that has been delayed. it's for trucks. that's the popular size. can that be made mass produced in volume by year end 2013? >> yeah, it is. and the delay, by the way, is people are waiting to get their hands on them. we haven't had any delays in announcement. we've got trucks on the road in test for about a year, and as you know, it's quite public that we're starting to ship them in april. it's next month. there's going to be a -- you know, a controlled release between now and probably august is what we're thinking right now. probably that early stage is what we're going to need to be cautious about. these are the first natural gas engines coming out of cummings jamestown plant. we want to release them to all of the oems, so there will be some start-up caution, but we're ready to mass produce end of this year, and it will be as many as the market would like, i think. >> and as you said, we are getting to that point now where it's about -- it's now -- it's proven. the technology is proven. >> yep. >> and now is the time. all right. >> thanks, jim. >> okay, good to see you, sir. david demers, the ceo of westport innovations. guys, can't give up. we're almost there! wprt. stay with cramer. coming up, medical might? the business of biotech is taking off. so cramer's focusing on the companies developing breakthrough drugs with cutting edge science. tonight, he spotted a speculative play that could be on the verge of the next big thing. [ male announcer ] i've seen incredible things. otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪ sure, the market is roaring of late. yes, there's plenty of money to be made in the old fashioned blue chips. that can take away from the desire to speculate. do you need to try to hit it out of the park with high-risk, high-reward plays when you can make so much money with kimberly clark? that said, we aren't going to stop trying terrific specs for you every friday. for those of you who want to go for the long ball, provided it's only a small part of your portfolio -- by the way, the federal reserve, they're not really involved with this part of the process. so, with that in mind, allow me to introduce you to a new name for speculation friday, or rather a very old name that we haven't tapped into in a long time, and the name is -- viropharma. vphm. it is my favorite kind of biotech, it's an orphan drug play. develops drugs for rare diseases. two stocks that have given us enormous gains since i first got behind them in october of 2010. many of you bought biomarin. orphan drugs are in the pharmaceutical sweet spots since they get extra incentives from the government. because otherwise they would go untreated. they're also the most expensive drugs out there. hundreds of thousands of dollars a year in some cases, because the people taking them, they don't have any other alternative. viropharma -- most people don't think of it as an orphan drug company at all because it didn't used to be one. the stock is off most investors' radar screens because the main product, an antibiotic went generic a year ago. i remember i said i'll write these guys off. companies had some manufacturing issues in the past. uncertainty about how the company would do. it fell from $27 and change, a 16% decline. not great. but something happened while everyone was either ignoring or selling this stock. viropharma transformed itself into an orphan drug company and now it's paying off. both for the underlying business and for the stock, which has rallied nicely 12% since the beginning of 2013. you know what? vphm, it's got a lot more room to run. >> all aboard! >> the new viropharma doesn't care about boring antibiotics. it's got a whole slate of sexy orphan drugs, the kind that wall street gets so excited about it. we have all these companies on air. they've got even more coming down the pipeline. first there's simrise for a disorder that can cause swelling in the face and the extremities. can send a person to the hospital. if the swelling happens in the upper airways, it can be life threatening. they have the only therapy on the market that is designed to prevent these attacks from happening, which is why they can charge something like $350,000 a year for the treatment. which is viropharma's new drug. the company bought it from a place called lev pharmaceutical. they paid $500 million. five months later, they got fda approval. and last august, they finally got industrial scale approval. which means the company can manufacture as much of the drug that it wentants. when viropharma purchased them in 2008, they initially forecasted the drug could do peak sales of 350 to $450 million in the united states. four years later, they said peak sales could be double in one year. about double what they're doing now. viropharma's original forecast turned out to be way too conservative. i think the new one is, too. there are about 5,000 people in the united states who suffer, that we know of, from this disease, and in the four years since cinryze has been on the market, the company has penetrated just 20% of the patients. the vast majority of the people with this condition still go untreated. cinryze's sales should continue to exceed wall street's expectations. remember, they only paid $500 million for this drug in 2008. it's a steal considering how much money they're making off of it now. the fact that it could conservatively earn $700 million in peak sales down the road, it's not the stock, people. there is a concern you'll be hearing about. cinryze loses its market exclusivity. people are worried they could face competition from cfo pharmacists, a similar drug. i think these worries are overdone. with these rare orphan conditions, people are very unlikely to switch drugs. that's been the pattern that we've discovered once they find out it works. the drug people are worried about as competition -- the one that they're worried about, it has a shorter half-life than cinryze. it may not be as good at protecting against hie attacks. they are developing a more convenient version of cinryze. the current version needs to be taken via iv. the new one could be taken to last longer. even if the worst fears come true, this market is bigger than wall street believes it to be. so there should be room enough for two players to make plenty of money, but i'm betting on viropharma. it isn't a one-drug wonder. it's a very well-managed company. 2011, they brought a drug for adrenal insufficiency. they paid $37 million. these guys are very shrewd buyers. the drug has been approved in europe, just launched there a few months ago. now they are planning peak sales to 150 to $250 million in the eu alone. the fda asked for more data on this drug, so they'll have to do some additional study. in april, we should get more clarity on whether the united states would consider this one. we're going to stay on this story. the key is that viropharma -- i think we should be in the stock before we hear more about this drug's prospects in april in the united states. here's the bottom line. viropharma has transformed itself from a dally purveyor of antibiotics that nobody cared about to a rapidly growing red hot orphan drug company that nobody seems to know about, and wall street is just now starting to notice. the stock is picking up sponsorship. deutsche bank just upgraded to a buy. $37 price target on monday. i think you want to get onboard before more people realize how terrific the viropharma story has become. nothing is going to happen immediately. so do the homework. check it out. and only then can you pull the trigger. let's go to zack in my home state of new jersey. >> caller: boo-yah, mr. cramer! >> all right, an excellent stutter boo-yah to kick off this segment. >> caller: coming at you from the beautiful garden state. i want to get your opinion on pfizer. is this a good long-term bet? >> yes. i like pfizer, a lot of ways a key to this market, meaning it represents a blueprint drug stock that can go higher. they spun off the animal health division, they are doing so many things right, it's incredible. speculation in this market means finding stocks flying under the rad radar. that's what we're trying to do at this stage of the cycle. wall street doesn't get fully recognized to transform viropharma. take the time to do the homework. do it right. i've got to tell you, i think this could be a very good one. lightning round is next. coming up, you sent cramer to the books. he's got the answers you need. jim responds to your tweets @jimcramer #madtweets, and your e-mails just ahead. try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. but at xerox we've embraced a new role. working behind the scenes to provide companies with services... like helping hr departments manage benefits and pensions for over 11 million employees. reducing document costs by up to 30%... and processing $421 billion dollars in accounts payables each year. helping thousands of companies simplify how work gets done. how's that for an encore? with xerox, you're ready for real business. okay. 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[ wind howling ] easier than actually going to the bank. mobile check deposit. easier banking. standard at citibank. it is time! it's time for the lightning round! you think i'm just getting started, that's right. are you ready? time for the lightning round! start with christina in pennsylvania. christina? >> caller: what's going on, jim? >> not much. just kicking back for the weekend, like i know how to do that. what's up with you? >> caller: i just wanted to say boo-yah from pittsburgh. but here's my husband with the stock question. we love you. >> okay. >> c.a.b. record quarter, growth ahead. how much higher can it go? >> they're going to report this week. what i fear is that there's other moving parts here. why don't you do this, take half off ahead of the court. last time it got nailed. i don't want you to get nailed with the stock. let's go to jared in kentucky. >> caller: yeah! >> what's up, jared? >> caller: i'm calling from the cumberland river. >> boo-yah. what's going on? >> caller: i was wondering if i should buy rtk. >> no, no, no. no, we're not going to -- it's a real speculative. we decided we played gtls, which is gas to liquids, and the stock was down a buck and a quarter today. let's go to chris in virginia. chris. >> caller: boo-yah, jim. >> boo-yah, chris. >> caller: stock symbol ng. >> i saw this gold fund was down something like more than 26%. and it's got a big position at ng novagold, which is not good. i just think that you can hold on to it. but there's nothing exciting happening there. let's go to richard in florida. >> caller: hello, jim. faithful viewer at 6. the stock is oak tree. >> i like it. howard marx. he's a good friend. a real money pro at the street.com and will be grilling warren buffett at the big annual festival. let's go to frank in new york. frank? >> caller: boo-yah from nanuet, new york. >> i pass right by you on my way to work. so i hi to you all the time. what's up? >> i've had chesapeake in the portfolio and it's been red all year. it finally turned to green over the last two days. so i'm wondering if chesapeake has enough gas to keep going or should i take a modest profit and do something else. >> natural gas price is going up. this is not the nat gas stock i want you in. i think you wait until 23 and then sayonara! and that, ladies and gentlemen, is the conclusion of the lightning round! >> the lightning round is sponsored by td ameritrade. >> caller: hi, jim. this is bill from state college, pennsylvania. >> yes, nittany lions! >> how's pops? >> how's pops? we had the best time this weekend. went to dollar tree. it was just terrific. went to morning glory for brunch. got a lot of candy. met this woman. she said what are you doing here at the checkout? dollar tree. karen. in my home state of new jersey. >> caller: hi, jim. >> hi, karen. >> caller: i recently enjoyed a "mad money" burger at the hatch. >> you had theburger? did you like the dollar sign? i got a burger named after me. it's a cheeseburger -- it's -- anyway. >> caller: boo-yah from cincinnati. >> what's going on out there? >> caller: well, it's a little cloudy, but it's very nice, warm weather. >> that's good. a little chilly here today. i hope you had the relish. it's what really makes the burger work. do we have any swiss cheese? there are some things even this market cannot forgive. at the top of the list of unforgivable offenses, dividend cuts. you've got to beware of falling dividends. when i saw that atlantic power had a 10% yield, let's just say that was about as big a red flag as you can -- okay, what am i? i'm not lebron, what can i tell zblou as big a red flag as you can get. i am lebron. >> wow! [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. before we get to your tweets, which are sent to @jimcramer on twitter, time to do some homework. on the last day of january, krex, a tiny biostock tech. i told deanna to hold off. i did some work here. on january 28th, keryx wowed the drug community. the data showed that the drug is doing much better than expensive i.v. drugs that are on the market right now. the news was a game changer. it had multi-billion-dollar potential. deanna called me, 162% move in five days. after that kind of run, i had no choice but to do some homework to see if there was upside left. since then, keryx has had an 18% decline. the analytics report created doubts about the company's ability to obtain a patent term extension. along with new chemical entity status for the drug. in my view, unless you can afford to buy a whole battalion of scientists and patent lawyers, it's too difficult for me. there's easier ways to make money out there. i don't need to nail everything. i just need to nail the real ones that are easier to do. because there's some easy ones right now. next up, february 7th, jason in massachusetts talked about liquidity services, lqdt, the world that finds the most transparent services. 1.7 million buying customers. on january 31st, liquidity services reported beefy estimates, but also cut guidance. reflecting the company's need to invest in online platforms, that is not a simple task, the stock is down 22% since the beginning of the year. however, we have been worried about liquidity services in the past. back on june 28th, i told you to stay away from this thing because e-bay was entering the wholesales base. warned about declining margins. the ceo wanted to sell a big chunk of its holdings. the company kept cutting guidance, and as a result the stock is down 37% from where i told you to sell it. so this is a company where management lacks credibility, faces lots of competition and also has high exposure to the department of defense. so i'm telling you right now stay away. let's go do some tweets. i'm going to go over here because someone always says jim, go over there. you just don't see them. first up, that's a little tv. there's other people in this room besides me. shocker. first up, we have @protraderx, who says @jimcramer, boo-yah, jim, i need your advice on kkd. take profits here or hold on? this guy does a lot of hash tagging. i think you sell kkd and roll it into dunkin' donuts where there's an incredibly strong multi-year story, not unlike domino's pizza. isn't it funny? i like dunkin' donuts and i also like to go and eat domino's pizza. this tweet is from @mestabule and she wrote to @jimcramerer thoughts on tibx. poised for recovery or a good exit point? they blew the quarter. i'm going to say that because that's what they did. they were just up 10%. i cannot recommend a stock -- i think it pulls back and we'll look at it again. i said we need to see the next quarter before i pull the trigger. "mad money" is back after the break. [ kitt ] you know what's impressive? a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪ exploited versus unexplo unexploited. new names versus old names. overheated and overowned sectors versus underowned sectors that haven't heated up yet. that's where i think we are in the stock market. money managers all over the country are looking at stocks of countries hitting all-time highs. i said wait a second, give me something that's still behind long-term, behind the averages. you know, give me something i can make a thesis for buying. they want to know where there still might be value and right now they are finding little value in the consumer second supervisor. and a ton of value in the once growth names in tech, both hardware and software. companies like jbs uniphase, bmc software, computer sciences. before you jump up and down for these names because i tell you the hot money is flowing in, let me go ahead and tell you thousand money management business works. you know when you get to the supermarket and you see something labeled new, you might actually be more likely to try it than not, at least that's what all the brand people i have ever talked to tell me. it's not that much different than the money management business. there's an insatiable desire to hear new ideas and to take action on new ideas. even if they are companies that dazzle in a different time in yesteryear. when i first got in this business, texas industries we i. think about all the electronic instruments that are now in your car versus what used to be in it. if you ever get a look at a late model ford or chevy, you will be in shock at how little instrumentation there was back then. these days cars are chock full of semiconductors. what was then called high-technology. the stock market equivalent of ancient history now. texas industry now considered gross domestic secular play. if there's growth in the economy -- if there's no growth, it languishes. an update showed the company might be having a growth spurt. inventories are leaner. things are getting better. the stock is highly anticipated, so it didn't gallop as much as you might have thought. no matter. texas instruments is getting talked about more than i've heard this years by fund managers who haven't looked at it in ages and i suspect it will be charging higher soon. breaking out of this long constraining range, these are things that indeed getting better than the earnings estimates for txn are probably too low in. the interim, it has raised the dividend to the point where it yields nearly 3.2%. that is an awfully nice cushion if the stock gets hit while you're waiting. think about the telecommunications companies. companies that haven't spent a lot of technology of late. think verizon and at&t. they're starting to spend again and they're making sense, too. in the meantime, companies that from provide information technology up, computer sciences, cse. cpwr? bmc? they're coming back to life as new and inexpensive speculations. companies are feeling more confident about spending. it's out with the old and in with the new, people. and the new in this case is overlooked, unloved technology from yesteryear. it's beginning to work and i suspect it keeps working as long as the stocks don't go so high that they're no longer considered cheap. the move into old tech is in its infancy, and those left behind stocks, they're now ready to run. stick with cramer. the economy is better than you think. did bill clinton persuade michelle obama to become the republican schmoozer in chief? is governor chris christie the best republican young gun to be president? the patient, presented with a hairline fracture to the mandible and contusions to the metacarpus. what do you see? um, i see a duck. be more specific. i see the aflac duck. i see the aflac duck out of work and not making any money. i see him moving in with his parents and selling bootleg dvds out of the back of a van. dude, that's your life. remember, aflac will give him cash to help cover his rent, car payments and keep everything as normal as possible. i see lunch. [ monitor beeping ] let's move on. [ male announcer ] find out what a hospital stay could really cost you at aflac.com.

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