Transcripts For CNBC Mad Money 20131125

The day when we rallied in the motion and then gave it up right before the close. The dow inching up eight points and the s p declining. 1 and the nasdaq plunging. 7 higher. I like to look at this, and like all healthy bull markets ignores bad news and focuses on good news. Any bull move, any, can be sung to the tune of johnny mercer, a sej serve wait the positive and. This is Glass Half Full market. Let me show you how it really works okay . Because so many people have forgotten what theyre like. Im not talking about the faux bull market leading up to the crash of 2008. That market was led by china, not us with the minerals, coals and fertilizers and heavy Capital Equipment stocks leading the way. No, that had no breadth. Real bull markets are always rotational, rotational in nature and they have enduring qualities like perpetual Silver Linings as well as numerous buying opportunities that musting taken. Buy, buy, buy before they disappear. The best look at the a nat smee to ponder over the new dow jones average with terrific and frankly disappointing names when it comes to earnings. Lets just deal with the right of whats going on here. The Current Situation is terrific with the late 80s. People grew skittish of any rally and they were convinced that another crash lurked right around the corner so any twobit rally was shorted. Sell, sell, sell, sell, sell and you had a preponderance of smart people who hated the market. They despised each advance as being illegitimate, and questioned the staying power of a market that kept going higher. It was almost as if there was hersey to grant the moment a momentary respite from criticism. My hedge fund made a name of being 100 in cash from the crash of 2007 and made a judgement that we were going to get killed if we owned a lot of stock. The week before the crash is one of the worst on records and i was introducing buying and by a crash admonition which was quite contrary to what the supersmart people were thinking. A little less than a year to the crash, the stock market started to advance. Summer was ending. The stocks had stabilized and they were rallying on nothing, nothing in particular at all. In fact, i was suspicious, deeply suspicious of the move. If it were based on something, but the belief that things could get better then it was a rally i wanted to short and bet against, but karen cramer said that i had no business shorting it because the market wanted to lift. There was a lot of supply and there slumply werent that many sellers at that level and that kind of thinking was what the heck did supply ask demand have to do with the market going higher . There was big volume, high volume, it doesnt matter, but this was where i learned one of the major lessons that led to some serious and dramatic outperformance from a hedge fund. Advances arent phony if theyre broad based and take up stocks of companies that arent doing that well. Thats the definition of a bull market. And im glad i swallowed my pride because the forgiveness and the era of good feelings lasted for ages. At the time people fought it tooth and nail. You know what they were . They were wrong. Guess what . Same thing goes for the people fighting this rally and they fight it every day. They fight it for 5,000, 6,000, 7,000, or, i dont know, 10,000 points. Who knows . The endless buybacks have taken up so much talk and i dont talk about it as much. They take a swing like i did in the fall of 19 8 when people hated stocks so much. With that in mind lets consider the state of the dow jones average that blew it out. Who blew it and who blew it out . Okay. In other words, lets look at the disappointers and how theyve done because this shows you what im talking about, a Silver Lining bull market. Probably one of the most disappointing stocks in the dow. One thats got a lot of people down is caterpillar. Heres one thats done absolutely nothing to this quarter after missing the numbers and guiding down big time. Whoa, doesnt it is a something that the cats done nothing instead of being crushed . Caterpillar caught an upgrade from the bank of america and merrill based on the suspicious call about power systems. The cats well behind the market and therefore makes for a terrific catchup story and it will catch up despite the endless executioners and high inventories across the globe. A missed quarter, no real growth and lots of social. There was a lot of buying from 94 to 99 with the existential crisis corner. Give it a chance, theyll get it right and then theres merck. The company totally blew it with no real Growth Outlook and ral 45 to 49 and it seems it wants to go higher. Microsoft posted a significant markdown, and ceo steve balmer is retiring. That move wouldnt be happening at all and its another case of a gigantic buyback just like merck and mcdonalds. How about walmart . Recall, it turns out to be a fantastic buying opportunity and youre up a couple of bucks if you bought it with last weeks weakness. I dont even care. What matters is that the stock is higher after a panned quarter. No one like the visa quarter, either except the buyers who had the incredibly wellrun secular winner of the company that is still rung with the revolution. The sixpoint decline was a terrific entry point as visa now is only two points below where it reported and i sense theyll take that price out, too. Chevron missed and quickly dropped three points in what looked to be less healthy paradoxing growth and not as exxon and not so hot refining margins and the stock is nicely above where they were, we have to be thank of the for the pullback. Remember the woe is me Goldman Sachs quarter . The stocks now up 12 points from the 158 level that used the discipline and what an opportunity that was. It was viciously disliked by the Analyst Community and that stock had dropped two points, and the night it reported, boom, just like that and by the close it was up by the next day. The next day it was up and continued on that trajectory ever since and even cocacola has managed to rally on the support. In fact, only ibm and cisco havent bounced back and i think because both are experiencing serious challenges and those are two proud companies that both insist everything is terrific and theyre the only two dow stocks that havent been able to mount significant rallies. Here ate bottom line,s in bull markets there are Silver Linings galore, there are come back kids and there are glasses of half full and rosecolored variety and they have the persistent negativity and the insistence that everything good can be placed at the feet of the fed and i think it could be faced at the feet of the buyers which have been the biggest buyers all along. Mohan in new york. Mohan. Booyah, jimmy thank you. Youve made me a ton of money on chipotle. Go to twitter where there say debate about how much money ive lost everybody. Whats up . My question today is about theraputic symbol orex. I have a small position in my retirement account and ive been painfully watching it go down the last couple of weeks. Nice to see it spike up today on positive news of the obesity drug. Should use this opportunity to sell or i dont like the way they are in general. Theres too much cult. I have to tell you, as long as you accept the risk that youre in the solar city and amazon situation, but mohan is not the kind of risk im willing to accept. Can i go to steve, please, in tennessee, steve . My stock has been a good performer in the last couple of years, but with recent downgrades should i buy, sell or hold clorox . Clorox, i dont think theres any reason to do anything. I saw the goldman. The stock moved up from 92 to 94. I know that its a bond market equivalent story. Could it go to 87 or 88 . Im willing to accept that risk and you should, too. There are always Silver Linings in a bull market. Id like to help you find them by accentuating the positive because im trying to make you money. Thats what its about, people. Mad money will be right back. Coming up, pain gains . Organic foods are taking over the grocery and as more consumers demand these dishes cramers looking at the companies coming out on top. Is it time to gobble up the stock ahead of the thanksgiving holiday . Cramer carves into the story ahead. And later, cosmic cash . The solar sector went from cloudy to shooting star this year. Can standout stock first solar has been leading the charge. Its nearly doubled this year, but is its future still brighter . Dont miss out when cramer talks exclusively to the ceo. Plus, gold finger . Precious metal miner rand Gold Resources recently dug up a quarter that beat the street. Was this just a flash in the pan or is the Company Strong enough to keep shining amid the falling price of bullion all coming up on mad money. Dont miss a second of mad money, follow atjimcramer on twitter. Have a question . Tweet cramer, madtweets. Send jim an email to madmoney cnbc. Com or give us a call at 1800743cnbc. Miss something . Ed this madmoney. Cnbc. Com. H mad. Ya know, with new fedex one rate you can fill that box and pay one flat rate. I didnt know the coal thing was real. Its very real. David rivera. Rivera, david. [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. [ male announcer ] this december, experience the gift of true artistry and some of the best offers of the year at the lexus december to remember sales event. This is the pursuit of perfection. At the lexus december to remember sales event. In a we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Thanksgiving is right around the corner and its time to talk about the true meaning of this particular holiday. You might think its about sharing or family or getting to sleep early so you can shop until you drop on black friday, but in the end its all about food. Thats why today i want to check in with my absolute favorite organic food company, haynes celestial, greek gods yogurt and many more. Latest weve seen the organic and Natural Grocery stores put up hideous number, frankly. The reason that places like whole foods and sprouts arent doing that well, although sproits is hanging in, because theyre facing increased competition. The entire world seems to want to get in on the natural and organic action. If you want supermarkets wanting to stock the stuff, thats good for haynes celestial because you cant have a decent selection of natural food selection without hain. Its been a terrific longterm performer and the stock is up 47 year to date and that continued today and lets call will a spade a spade. The stock is trading below where it was before we reported that number two and a half weeks ago. I think you may be given a real bargain here and perhaps in celebration of the companys 20year anniversary. Dont take it from me. Lets check in with the bankable irwin simon, the ceo of hain celestial. Hi, jim. Happy thanksgiving. Boy, this looks good. Im reading my friends piece in the new york times. A lot of people care about the way a turkey is raised. Im just eating a turkey and i group up on the butterball and the big frozen thing. Boy, how things have changed. We will sell over 1. 5 million turkeys this year at thanksgiving. Hain plainville turkeys and we own 49 of it all vegetarian fed, humanely raised ask antibiotic free organic turk edges and the demand has been incredible and the chicken under free bird and consumers today, and youve heard of a shortage of particularies. Right. Consumers, jim, are so on top of what they eat today and if theyre going eat protein, theyre going eat healthy protein. Okay. Look, i am, too. Im part of that, okay, but just tell people, like, what is the linkage . Why are they worried . What does it mean . The things dead either way. It is kind of a fact. Number one is, they used to slaughter particularies and today they process. Its raised humanely today. Its not its not raised in a cage. Okay. No antibiotics, no hormones. The animal the bird is only fed vegetarian. So youre eating today and you will see the difference in taste and quality of this here product. Its amazing how many consumers are educated. Walk into chipotle. What is it youre looking at . The way the bird has been raised. Absolutely. And the way its treated and the same with the environment and not only are consumers concerned about eating healthy and its the environment and the protein in the bird today. Thats one of the reasons ive liked hain for a long time and its important that you buy as much as you can and dominate as much as you can as opposed to campbells that cant seem to find its way at all. Im just going read this. Hains Free Cash Flow fell by half to 48 million. This was after hain told barrons to watch the Free Cash Flow. So barrons is saying gotcha here. I started this company 20 years ago and we had 4 billion in sales and market cap. I built this company on big acquisitions. Earths best is the largest brand. When i bought it was a 14 million and today its 2 hu00 million. Listen, theres so much growth out there. We spent 300 million, 400 million in acquisition. Unfortunately, barrons come back and said our Free Cash Flow has a hole in it. We earned close to 200 million last year. Maybe i should be i tech company and not earn and money and get some of the valuation out there. We came back and grew high single digits. Theres not Many Companies throughout in the Food Industry growing like that. In the last numbers we were up over 11 consumption and he also mentions that hey, how do you know the difference between organic growth and acquisition growth . We report organic growth and segment growth. Look at our financials. I understand this. Im amazed that they can write this stuff and get away with it. Its the first amendment. I like to second the others you can have, but heres the issue that i see. Okay . I dont understand this kind of article versus what my supermarket friends and my consumer package good friends tell me which is the only stufr thats really selling is yours and the other stuff you may think its valued. You may think campbell represents value here. Its a value trap, but jim, whats going on today . Ive been on the show and cans are going away. Yes, going away. Going away. Consumer does not want soup in a can. We want fresh soup, who has it . In the uk here its coming here. Its coming here. Soda, going away. I have four kids. Going away. What are we drinking today . Juice, paying 10 for this and we cant make enough of this. Antibioticfree and organic. Listen, whole foods last quarter and the numbers are still growing high single digits. That is a great quarter in retrospect. Thai have 367 stores and they will go to 1,000 stores and its hains biggest customer. Walmart is the second biggest customer and i know were looking at challenges at walmart, but most recently in Washington State they voted whether they wanted true labelling in regard to gmofree. Right. 49 of voters out there voted for it. But our country isnt a gmobased country. We decided that and its hard to get off that. But, jim, half the population still wants it. Thats a big, big market for hain. Were in the early innings and were in the third inning of where were selling food. We should judge you by earnings per share . Cash flow and now youre saying earnings per share . First of all, you should look at uses. Were a growth company, organic growth, organic growth, organic growth, okay . Thats what i want out of a company. Were also making money while were doing it and were paying down debt and come back and look in 20 years what hain has done, look at portfolio brand. If you dont buy these, if you dont buy these clorox will buy them. If clorox doesnt buy them General Mills will buy them. You have to buy them. Its not just buy them, buy them and grow them. Listen, we bought this last december and it was 20 million and it will do 50 million. You can come back and talk about nondairy and you had one of my competitors talk about nondairy and organic growth. I just came back from europe. Our business in europe is growing nicely. Here, vegetarian. Hey, theres 30 Million Students out there and a big percentage of them are going vegetarian. Are you talking to me offcamera, but you come back and look at consumer, looking for less protein today and here is a big growth area for us. Heres the nondairy, glutenfree. Its a hain thanksgiving right here. Here is glutenfree. So all of these products are hain products today and like i said, the consumers will buy 50 million turkeys during thanksgiving. What is it . 78 of the population will eat turkey during thanksgiving or vegetarian turkey. You have every base covered. I have a hard time with the critic because the stock has made a lot of money. Irwin simon, hain celestial, after the break, well try to make you more money. Coming up, cosmic cash . The solar sector went from cloudy to shooting star this year. Can standout stock first solar has been leading the charge. Its nearly doubled this year and is its future still brighter . Dont miss out when cramer talks exclusively to the ceo. What you wear to bed is your business. So, if youre sleeping in your contact lenses, ask about the air optix® contacts so breathable theyre approved for up to 30 nights of continuous wear. Serious eye problems may occur. Ask your doctor and visit airoptix. Com for Safety Information and a free onemonth trial. Okay, who helps you focus on your recovery . Yo, yo, yo. Aflac. Wow. [ under his breath ] that was horrible. Pays you cash when youre sick or hurt . [ japanese accent ] aflac. Love it. [ under his breath ] hate it. Helps you focus on getting back to normal . [ as a Southern Belle ] aflac. [ as a cowboy ] aflac. [ sassily ] aflac. Uh huh. [ under his breath ] i am so fired. Youre on in 5, duck. [ male announcer ] when youre sick or hurt, aflac pays you cash. Find out more at aflac. Com. [ male announcer ] when youre sick or hurt, aflac pays you cash. announcer scottrade knows our and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. You can fill that box and pay one flat rate. How naughty was he . Oh boy. [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. Is solar power making a comeback in sure looks like it, but maybe it never left. Maybe its just now economic. Consider first solar. Fslr the best of breed player in the place, its the manufacturer of solar modules, like site development, engineering, planning construction and operating and management and onestop shop and just three months and first solars managed 54 and the Company Reported the end of october and they knocked it out of the ballpark. Although some say it was a lot of onetime stuff. This is starting to feel to me like the good old days. Back before the Great Recession when it seemed like first solar could not be stopped and before europe went into a tailspin, this was the 150 stock, and they get 90 of the revenue from north america. Its become a fabulous growth story and wall street is agreeing with me. J. P. Morgan came out with a terrific piece of research and the next three to five years. I think the stock has more room to run. So lets take a closer look and the ceo of first solar. Welcome to mad money. Thanks, jim. This is breakout time for you guys and i was just shocked that you this is the largest quarterly decline in cost per watt in the companys history . Thats correct. How does that happen . A combination of our rnd team and executing according to the technology road map that i set out last year. Its just a fantastic performan performance. Why do people still doubt you . I was shocked when you had the Analyst Meeting. That was a great Analyst Meeting and people were saying maybe they are for real, but maybe you just executed on your plan. There was so much negativity for so long and i think it takes a long time to earn back the credibility after youve been in that kind of a tailspin as we found ourselves in nearly two years ago and well just continue executing and well earn booms trust over time. Lets get to the numbers and be imperical. Cost per watt fell to 59 cents. Where was it . It was in the mid60s prior to that and before that it had been up in the 70s and in the 80s. When is it head to head and say listen, this solar say bargain . Any if you look across the globe there are numerous circumstances where theyre coveragetive. Its competitive today. As we continue to execute on our cost road map it will get competitive in more and more circumstances over time. Now, solid improvement in manufacturing costs, but it seems to me that people once again dont think you can take it dramatically below this level, but you think it can. We have a technology road map that weve laid out and a cost road map that weve laid out. Weve executed it today so far and we think well continue to execute it against it and it will take us down in the neighborhood of 40 cents within the next several years. What happens at 40 cents . What happens to the Utility Companies . What do they do . How much do they allocate, not just the californians. Were already starting to see big utilities allocate some to solar. Well simply see more and more as costs come down. Lets look at the bigger picture. Its still. 5. When is it going to be 5 of the worlds generation . I think within the next five to ten years. Thats pretty quick. How much subsidized and how much not subsidized . The vast majority of that will be unsubsidized. Subsidy is not necessary and once that happens its whats healthiest for the industry is that we proceed on our own two legs without the assistance of subsidy. People are watching and they want solar panels and they hear about solar city. Are you talking about big utilities and that cost with solo, i want to get involved. Solar city works on residential rooftop model and thats not our market. People shouldnt confuse the two. Theyre a good company and they have a great product, but we focus on the industrial users and the large utility scale power plants. You had a 7. 7 giga watt opportunity to talk about, but latin america, north after qaa, europe, india . Do you have sales people there . Oh, yes. We have a global sales force. We started putting that sales force in place about a year and a half ago and we got a solid base of talent. Were starting to get traction. Well also have a very solid north american business, but we hope to see growth out of a lot of the new markets that weve entersed over the course of the last 18 months. Say you want to be a shareholder in this. Should we be measuring you out of pipeline additions . Book to bill . What are the best and different ways to be able to judge how first sole sarre doing by what first solar thinks . I think we put out the opportunities that we are pursuing. Okay. Thats a good sign of the overall activity levels in the marketplace and thats important to watch. And then you look at how many of those we converted into bookings and you want to see that were continuing to perform well on a book to bill ratio, and then you want to see that were delivering a return on invested capital and margin out of bookings as we move forward. Thats what we want to see from intel. Youre finally there. Yeah. Chinas big country, but a lot of the Chinese Companies did fall by the wayside. What are you doing wrong versus what youre doing right. They participate primarily in the nowed you willonly business. Theyre exposed to periods of excess capacity and weve been through a nasty period of excess capacity and we pursued the entire value chain and as the margin disappears in modules and engineering procurement and construction, and financing and the whole value chain as opposed to being limited to one component of the whole system. What did solyndra do to your business. It had a negative perception with the public and the politicians. I mean, thats still kind of what youre dealing with. To a certain extent, yeah. We dont, frankly, we didnt think the government needed to be in the business of investing in startups, but by the same token, sometimes its useful to bridge new technologies to a presence in the marketplace. Im less focused on judging that or investment or the entire program or more focused on allowing people to understand that theres far more successes in the solar space than there are solyndras. Do you think that this j. P. Morgan peak earnings per share 7 in the next three to five years, is that pie in the sky or do you think it can happen . We put out a threeyear target in the last analyst day and those show solid progress in that direction and we havent commented beyond that. Fair enough. Its not like the old days. Its a real company, and its a Manufacturing Company. The ceo of first solar. I want you to consider this as a Manufacturing Company that is in the solar business, not a Solar Company that may be a manufacturer. Mad money is back after the break. Tomorrow, kick off the trading day with squawk on the street. Live from post 9 at the nyse. Im raising my price target based on that. Youre high on the street . Im going high. It all starts at 9 00 a. M. Eastern. It is time. It is time for the lightning round on cramers mad money. [ indiscernible ] play until we hear this sound and then the lightning round is over. Are you ready, skeedaddy well start with morgan in california, morgan booyah, dr. Cramer, how are you . Im real good. How about you, partner . Oh, excellent. I wanted to thank you and those wonderful women you have working with you. Youre an Incredible Team and i want to thank you so much for what youve done for me. We have an amazing sta staff. Its an amazing staff. I dont get a lot of sleep, and im up in the wee hours looking at stocks and ive been having my eye on slunk, the mining company, and i noticed that they had tied down a lot of big contracts and i made a killing after the earnings that i pulled out and i want to buy shares now, but i dont know if i should wait or its a great quarter and i dont mean to con flight the two, but its the umbrella for the highly valued companies that are in software and the Software Platform and this company we did a very good piece about it, if you want to look it up on the web. I say youre right, and id be a buyer. What a quarter that was. Lets go to nell in maryland. Hi, jim. Hi, nell. Thank you for taking my call. Youre welcome. I listen to you all of the time and im wondering what you think of comstock resources. What do you suggest . Should i buy it . Look, 17 stock versus a 160 in eog. I have to tell you eog i feel better about and i want to be in the highest quality in america. Can i go to parth. A big booyah from chicago. Oh, chicago, wow bears whats up . Ahh ive been looking for a gain in the aerodefense market, orbital sciences, satellite manufacturer. Its a winner and i like it. I like the management and youre in good shape with that. Thats a good one. Lets go to paul in california. Paul booyah, jim cramer. This is shindig from ventura, california. Good to have you sir. Whats going on. Im looking at i robot, symbol irbt who was down after consolidation and im thinking that roomba might be one of the big items for the hol gains. I dont want to play that. Its too dangerous. Thats too big a leap and im not going to endorse that as a strategy for irobot. Lets go to eric in texas. Eric hey, jim, a big san antonio booyah to you, sir. Oh, wow san antonio. Good basketball. Whats up . Hormel foods, Ticker Symbol hrl, is it a buy or hold . They report this week. Last quarter i wasnt that crazy about, frankly, but why dont we wait to see that quarter . Its got a great, long, track record when it comes to dividends. Sydney in virginia. Sydney professor cramer, booyah, booyah, booyah. Triple booyah right back. I did my homework like you assign your pupils every night and i want to know about magnum hunter, symbol mhr. The price of west texas is going down, but ive looked into the eyes of gary evans and heres what happened. I went too hard on gary, vance after they had a couple of messy seasons and than i should have just immediately switched when they cured them. That is a cured situation. I talk about that in my next book. I think magnum hunter is now good to buy and if you get it under seven, thats great. They solved the sec problems and thats what matters. Irregularities equal sell and you fix the accounting irregularities and it often means buy lets go to daniel in california. Daniel hey, jim, thanks for taking my call. Absolutely. So i just bought into a stake of Ariad Pharmaceuticals last week, and they got the goahead from the european regulators to market iclusig in europe and they restructured their budget this quarter cutting production expenses by a percent in 2014. Yeah. Id really like to take a larger position. No, no, no, no. Look, i think youre absolutely right that this is a deeprisk stock, but what happened was so jarring i dont want you to get in any bigger in it than you are and that was very big in the United States with that rejection. Keep the position you have and dont get any bigger, please. Can i go to tom in new york, tom . Whats going on, buddy . Not much. How are you, todd . Good. Whats the skinny on dlr. Oh, man. I dont like these technologyrelated real estate play, but i do like the fact that f5 did a big buyback at the close. Ink thats a good one, but thats not been my favorite, really. Its gotten pounded and lets go to pat in virginia, please. Pat hi, jim, brrbrrbrrbooyah. Whats up . I was wondering what your take is here on geneac. I think generac is here to stay and i think it has the best technology and i think there will always be stormis and think i ought to go get one. And that, ladies and gentlemen, is the conclusion of the lightning round the lightning round is sponsored by td ameritrade. Jim, you dont understand africa. Its not for sissy, but its not as risky as you said. Normally im not that into people who call me sissy, and ill make the exception. Its been a rough year for gold. Even the recent shellacking i think its gold exposure in the portfolio. Insurance gets inflation economic attachment and people think thats going to happen no matter what. You want to own the gld. The etf does a terrific job of tracking the commodity and i used to recommend gold mining and in the end, you have to mess up in the execution and there are too many things that can go wrong. The flip side of the observation is if it executes flawless and then things can go much better than youd expect and even in an environment where its taking in freefall. Take rand Gold Resources with five mines in subsaharan africa. It reported an excellent quarter which just goes on show that sometimes things can go unexpectedly right in this business. The company blew away earningsest the mas thanks to the better than expected predictions and the fact that it got a new mine in the democratic republic of congo up ask rnd running. If we get a turn in the price of gold then rand gold could do quite well and if we dont get it, it will outperform the underlying commodity and the rest of the group. So lets check in with the ceo of rand Gold Resources and he had a better sense of his companys prospects. Welcome back to mad money. Hi, jim. Nice to be on your show again. You had a great quarter and one of the things that i thought that you explained was you kind of took the attitude of a tech stock. A tech stock, a tech company thats great, invest in the future and doesnt cut back because theres a big payoff down the road. Isnt that what rand gold is doing . Absolutely, jim. You know, we said that our successes today is what we did last year and the year before and even five years ago and what we do today is going to, you know, position us for the future. Now, it looks like that you had a couple of mines both in the ivory coast has turned out to be phenomenal. I know a lot of people said why would they let rand gold in . You were giving compelling figures that your a huge part of the Gross Domestic Product and a force for employment in that country. We have 12. 5 of the gdp of the country and the ivory coast about 1. 5 and we are destined to be a significant part of the drc gdp once we get the mine up and running in kabai. Lets talk about the drc because i was struck by how hard it is to mine gold. The huge number of Infrastructure Projects you have to do there before you even start mining in bulk yes, jim, weve got thats been a great project, and you know, a lot of people talk about the drc as this highrisk, you know, wild place, but we are both one of the biggest gold mines on the continent on time and we report first gold ahead of schedule and youve got to give some of that credit not only to our team at rand Gold Resources, but also all of the administrators and both regional and provincial Government People who are behind us and working with us to make sure we can get our trucks in on time and all of the equipment in the right place. Some of the other mierngs actually, youre actually upgrading the ore. A lot of the guys i dealt with in the gold mining business say the gold mine is petering out. You have gold mines that are accelerating. Why is that breaking the pattern with the other guys . You know, the only way to create value is to make discoveries and develop your own minds because if you go and buy them you will always pay a premium, even today the industry is still trading at a premium. So, you know, and once you start them on, you will start consuming their assets so you have to reinvest them. As you saw in kabaly, we added more reserves even before we produced the first bar of gold. So how do we deal with the gold that the average gold stock i follow is down 50 . Youre only down 40 . How do you deal that youre down 40 and deliveringing far more than anybody thought you could deliver . You know, jim, its a longterm game and mining is about allocating your capital properly and weve allocated our capital to make returns that are 1,000 an ounce and a lot of people criticized us when gold went to 1,000 to 1900, but weve been rapt and we will make money above 1,000. Thats the point. A lot of people run Gold Companies on the premise that the proprice is always going go up and we know thats not true. So i think, you know, what weve seen, and i often say this, you know, you talked about risk in africa. Investing in gold stocks, the biggest risk you take as youve highlighted in your intro is management, not really the geopolitical location of your assets. Now, are you indifferent, then . It sounds like you are indifferent. Gold at 2,000,000, but you are the only guy i know who is finding a lot of gold. A lot of the other companies i lost interest in because they said its too hard to find at these prices. Doesnt that mean over a multipleyear period if you dont have a lot of supply and demand stays steady, the price of gold has to go back up . Absolutely its an exciting time. I must say, its always uncomfortable to deal with a lot of gold prices and it was great to have higher gold prices particularly when you allocate capital like rand Gold Resource e but the Building Blocks of any Resource Company is investing in your future because you have to, and its not a shortterm game. You cant just turn on the switch and rnd rmgs. As you know whether youre a Pharmaceutical Company or i. T. Company, you to invest in intellectual capital and no difference to mining and you have to invest in your future otherwise you will have to have lower and lower grades and big driver in our results is grade. Grade is king. You nailed it. I want to thank you. You stuck by your guns. Its a great situation for those who like gold. Thank you very much, dr. Mark bristol, ceo of rand gold. Thank you, jim. Im never losing my interest in gold, okay . If you want to own a miner it is rand gold. Stay with cramer. Keep up with cramer all day long, follow jimcramer on twitter and tweet your questions madtweets. Ready to run your lines . Okay, who helps you focus on your recovery . Yo, yo, yo. Aflac. Wow. [ under his breath ] that was horrible. Pays you cash when youre sick or hurt . [ japanese accent ] aflac. Love it. [ under his breath ] hate it. Helps you focus on getting back to normal . [ as a Southern Belle ] aflac. [ as a cowboy ] aflac. [ sassily ] aflac. Uh huh. [ under his breath ] i am so fired. Youre on in 5, duck. [ male announcer ] when youre sick or hurt, aflac pays you cash. Find out more at aflac. Com. [ male announcer ] when youre sick or hurt, aflac pays you cash. In a we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Why isnt oil down more today . I its barely down 0. 4 . The bigger deal isnt just about oil being added to the market. Its about ratcheting the down the tension in the middle east and make it, and that narrow bit at the end of the persian gulf that 20 of the worlds oil must pass through, but here ate thing. I do not believe this was a surprise agreement at all. The oil traders in addition to at times apparently rigging the entire market also seemed to know its up well ahead of time and although to be fair here, its not like the negotiations were secret. It hasnt fallen through 90 yet like so many were waiting for especially if there was real economic demand for oil. We know, for example, the exports are at the lowest levels in years. Iraq is puffing 3. 7 barrels per day. The United States is pumping more oil since 1989 and the production prices have not fallen like they were supposed to. So i dont think this new oil from iran will add enough supply to make a difference internationally. However, it is worth pointing out that the spread between america and west texas crude and brent crude, the International Benchmark which had narrow side firmly back in place with the 15 differential and west texas is substantially cheaper than brent. I think that can cause the stocks to come roaring back and i think the price of west texas might actually be irrelevant because the country has bottlenecks everywhere. Right now brent is showing that Global Demand for crude is pretty much insatiable. Just a little more oil from iran doesnt seem to matter which brings us back to the central issue. The price of oil is high because economies around the world are actually doing better than we think or talk about, especially china. The countrys big internationally Oriented Companies and how they have the business in europe is starting to go up a bit. The tightness of the International Oil market is emblematic of that as is the International Oil like bp and chevron, disappointing quarter. Look at that,ers have the domestics which do seem to be held hostage to the west texas price. Exxon has been a real standout, okay . And that quarter was a good quarter. I dont think the move is over. Warren buffetts right. Thats why its more important than ever to follow brent and to notice that the 108, to 109 and 110 level represents a strong market thats not going come down much at all, even with the 1. 5 million additional barrels expected to hit the market thanks to the loosening of the sanctions on iran. Im looking at the ratio of 109 to 112. I think thats probably right. Because the marks arent linked with those of brent right now, dont expect a further decline on west texas crude, either. Dont expect an increase that much either. I think this stays at the 93 level for crude seems right. The odds of which went down dramatically because of this historic agreement. I wouldnt is the domestic oils that had been so strong until recently when theyd been drugged, Companies Like noble, eog and pioneer. If history is any guide,s and, some of the analysts who were stuck with these stocks will begin to panic and downgrade them because of the next level down that weve seen today and that will be your chance to snap some of them up. First choice, i will go to noble energy and it has terrific international and natural gas business and i would suggest eog, and these are Fabulous Companies and the irrelevant iranianinspired weakness will be ideal tomorrow for the pickings. Stay with cramer. [ male announcer ] this december, experience the gift of exacting precision and some of the best offers of the year [ ding ] at the lexus december to remember sales event. 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You know, this hain celestial is very important because this was an article that did kilt stock and it is difficult to try to figure out what is going on when you read an article that is so negative, but i fall back on things like earnings per share where their company is doing so much better. We have doubledigit growth, but you have to make your peace with it because its obvious that the journal of thes dont care. Theres always a bull market m im jim cramer. I will see you tomorrow. President obama hits back at the criticism that he is getting from all sides on the iran nuclear deal. He says the critics, quote are, just talking tough. But what if theyre telling the truth . Were going to look at the political, diplomatic and financial repercussions of this agreement. And what will israel do in response . By making this deal, the white house has brought the deal between the white house and jerusalem to an alltime low. Will israel feel forced to defy the u. S. And strike iran on its own . And the one thing this deal is doing, its getting the Obama Health Care failure off the front pages, at least for now. But new