To materialize. I think thats whats behind many of the movements in todays terrific session. The s p climbed and the nasdaq jumped up. Lets start with the most salient positive that was a negative, the banks. Heres a group thats a largest part of the s p 500, the financials that is not supposed to be going higher. They always seem to have some number, statistics, some government investigation that just hammers the heck out of them, crushes them beyond recognition after they report and we end up resenting that we owned them. Last week i highlighted bank of america as a potential breakout using the work from technician extraordinary tim collins. Do you know what kind of flak i took for that . On twitter i think i caught holy hell for this. I have a whole chapter devoted to them in get rich carefully but ive never seen such a negative response to my decision to highlight it. With all the talk of tapering and the chatter of the Housing Market it was natural to think this would be a year that the banks, already laggards and dullards, would keep getting hammered when they announced their earnings. Wrong today bank of america posted a legitimate upside surprise. Thats right, a bank that substantially beat the estimates, and not in a one time way either. In fact, i would go as far as to say that this bank of america quarter, are you ready, was a truly blowout quarter with an amazing growth in deposits, terrific investment banking, simply incredible net interest margins. It didnt matter that Mortgage Markets were declining because that business is really overblown. Mortgages arent just a commodity. It didnt matter that there was still a 2 billion litigation. The money bank of america is making when it turns on the lights each day is staggering. Ceo Brian Moynihan has done many things right in the last couple of years. It was a remarkable quarter and it wasnt supposed to happen to this dow stock. Its more than ten percent for the year already. That is amazing. It spread to the other banks, jpmorgan, while it didnt report as good a number as bank of america i cant believe i said that still managed to rally again in an impressive way. Lets take another dog of the dow, intel. Another upgrade from intel, this time from bank of montreal. Why . Because they verified several times that the personal Computer Market is bottoming. Thats also the reason for the endless rallies in sea gate and western digital. It was supposed to be the layup short for 2014, the pc business. Im astounded by the action in these stocks. My Charitable Trust owns a position in intel. Im concerned the stock has moved up too far too fast. But my instincts tell me to stay along for the ride. Its been ages since intel has done anything. Im sure there is something very good and fundamental happening there. How about the newfound activism in tech stocks. Thats something new for 2014. Elliott management, smart activist fund, makes you go back over many of the hardware and Software Companies that have seemingly done nothing for years and years and yet suddenly could be worth a lot more than people thought. This group is so sleepy, its ripe for a shakeup, hence one of the reasons why the stocks have truly broken out and rallied up to its old high of 2007 today. I urge you to look at xilinx. It had been a pushout of chinese telco orders. Those orders are now here. No more pushouts. No more stalling at the 45 or 46 level. The analysts are starting to wake up because theyre starting to upgrade stocks that they havent done in a long time. Or take construction equipment. For many people, including some clever hedge fund managers, caterpillar was supposed to be the short of the year. China is falling apart. No disagreement there. The rest of the world we know is doing terribly, isnt it . France is doing terribly. Business has become quite strong in the United States lately and inventories have gone down to more acceptable levels. Thats how a stock like cat that was down last year is starting to get momentum. If cat has a surge in u. S. Orders to fill inventory, this sucker is going higher. Then there is the oil tanker business. Listen to me, dont look now but the day rates for oil tankers are soaring, going as high as 100,000 a day on some routes. Thats up to 80 or 90,000 from the end of the year. Lay some plywood down, get a band. Probably smells bad. Anyway, lots of this is because oil would normally have gone from venezuela to the United States and is now going all the way to china. We dont need that oil. Plus there are Oil Shortages in a bunch of places. Still its not supposed to happen. Thats the theme of this. But unlike the other instances that are moving up, nordic american tanker, a stock that i thought had been left for dead, that i thought was roadkill, is actually beginning to look mighty attractive again because the companies costs are only about 10,000 a day. Maybe the stock will finally catch a bid. Stranger things have happened, although the 10 stock that nat has been has indeed been a stock to dread. Last but not least, there is cable. We were supposed to be moving away from cable almost universally, right, the cord cutting, the lack of need for that programming. Look at the move in comcast, the Parent Company of this network, up a buck and change today, another 52week high, or consider the bidding war for time warner cable, led by charter, and you know that that group is a leader this year. Its true there are some negatives that are hard to get your arms around, the Consumer Spending on bricks and mortars has taken our breath away. I was taking a huge amount of heat for liking the group two days ago. When the criticism turns outright hostile, that usually means youre in a positive inflection point. Heres the bottom line. When the negatives dont pan out, when good things happen when they arent supposed to, you get the action weve had for the last couple of days, and for some groups most of january. Sometimes the thing thats least banked upon is what causes the most upside. Craig in my old home state of pennsylvania. Caller craig from bedford county, pennsylvania. Love it. Caller ticker lmt, buy, sell or hold . I saw it up again today. Ive been recommending it for ages. You know what i said when i saw that . I was cursing myself. I said what have i done that i have not been able to get houston on this show, the ceo of lockheed martin. Would you please come on the show and talk about how your stock is the most amazing defense contractor ever . May i go to larry in florida . Caller a big and beautiful always warm and sunny boca raton, florida, booyah, jim. All right, kind of a nasty brooklyn booyah. Caller we love you so much down here. When are you coming down here with your wonderful new book . Im going nowhere with this book. Caller you got to come down here. Ive been trying to get rich carefully ever since i started watching you, but what the heck is happening with nuverra . I have not recommended this stock since ive been begging Dick Heckmann to come back on. Man, thats been a nasty ride. I got to tell you, dick, you got to come back on and explain to us when this thing is turning around. Can i go to shane in new jersey . Caller booyah, cramer, shane from flanders, new jersey. Holy cow, whats going on . Caller i have a large position in cree. I reinvested into it last midoctober. It took a hit two days ago after it was downgraded. What are your thoughts . Youre a glutton for punishment. Thats one of the toughest stocks to own. Thats like apollos chariot. I will not go on that ride. I like cree light bulbs. Thats why i like home depot. Frank blake said you can put them in your will. Im stepping off that roller coaster. I dont want to throw up on my rockports. What have we seen these past few days . Negatives that arent negatives at all, and positives coming out of nowhere. Bank of america natty dread maybe stocks cant be held down after all. Mad money will be right back. Announcer coming up, drilling for dollars. If you have been tuned in to cramer then youre well aware of Americas Energy revolution. Now two big players are linking up to form a new company in the heart of the oil and gas boom. Is this freshly uncovered find ready to open the flood gates . And later, mad money . The street is buzzing about apples new deal to sell iphones to china mobiles 760 million subscribers, but thats not whats got cramer excited. Find out what hes found in shares of the idevice maker. 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Suddenly the high yielders became less attractive, now that you can actually get a decent return from treasuries for the first time in years, with the yield in treasury ticking up to 2. 88 its worth asking which of the partnerships managed to thrive despite the steady climb in rates. Crosstex energy. This is a stock that has had a very rough time during the recession, but lately the company has taken its fate into its own hands. Its given a magnificent 80 return since we last spoke to the ceo a year ago despite an environment that was often downright hostile to mlps. Back in august, devon announced they were merging with crosstex in a deal that will close some time this quarter. Will be added to the combined companys cash flow. It should have enormous synergies. I think theyre going to have a terrific stock. Lets take a closer look at barry davis, who will lead the new company, find out about what it will look like and where its headed. Mr. Davis, welcome back to mad money. Thank you so much. The stock was at 15 when you came i you told us a very compelling story and not a lot of people believed it, but it sure did pan out. Its been a great year, jim, thank you. The partnerships that have gone up the most and have been the most consistent are the ones that dont have that much commodity sensitivity. In your excellent presentation on improved cash flow stability, i see right upfront that 90 of the contract is fee based, so we should be in good shape, right . You bet, jim. These are exciting times for us, and really a new era in the Energy Industry overall. This strategic combination with devon positions us to take full advantage of that. What were seeing with this combination is an enhancement of our financial strength as you referred to. What it does is it positions us to really triple in size from a pure financial size standpoint, with over 700 million a year of ebitda. As you said, it results in us having about 95 of our Gross Margins that are fee based, and it also gives us a great blend of assets, where were generating almost 75 of our Gross Margins from liquidsoriented plays. Thats what people want. People have to understand that even though youre merging with devon youve got lots of partners. Anadarko, eqt, apache. Can you explain to people how you can have those partners and yet still be with devon . A part of what makes us strong, jim, is a great diverse portfolio of relationships. Devon has been one of our largest customers over the last ten years, and that led to this opportunity presenting itself today. We have a great portfolio that had been built over the last 17 years in the energy space. We discovered companies that continue to add and add and add to their Pipeline Capacity and theyve a better shot at making that dividend go better provided you dont layer on too much debt. Are you in a position each year to make it a bigger pipeline . Thats one of the exciting things about this. We have what an mlp needs in order to grow. We have four avenues or channels that we need for growth. Weve been able to grow from our platform by expanding that platform. This transaction expands our platform. Secondly, we have builtin dropdowns. Thats a term that we use in the mlp market where you have a financial sponsor like devon, one of the largest independent companies that continues to develop assets that will transfer to the mlp and result we think we will see good strong growth over time. The third avenue of growth, we also think that crosstex as well as devon, when we are able to work together, we think were going to really see some great strength as a team. One of the things that has been perplexing people is a lot of the domestic Oil Company Stocks have been going down, and a lot of that is because they cant get the oil to where its needed. We had thought that these were all problems that would have been solved by now. Do you see this still as a problem . I know youve got colorado, oklahoma. It seems so locked where we dont need it. Why is that . Thats part of what i refer to when i say a new era in the Energy Industry and thats getting the growing base of production. Weve seen extraordinary growth on the supply side of the energy market. From 25 to 50 growth from natural gas to crude oil to liquids. But its not in the right places, the same places its always been. Thats whats great about this time for a Midstream Company like us. Its exactly what we do, connect production to consumption. In the presentation it says that devon donated what you would say has attached hundreds of thousands of acres to this partnership. How does that work . One of the great things about this transaction, devon as a financial sponsor, as a significant owner in the company, will do everything it can, contributing at the outset over 800,000 acres of dedicated acreage that will come to us over time. In other words, as they drill it goes right into yours . Sure. Devon is able to do something here that is very important for them, and thats strategically position themselves to have an mlp in the efficiency of capital that can be accessed through an mlp to finance their midstream infrastructure growth that goes along with their e and p company. Doing this with an existing company like crosstex rapidly accelerates their plan. Devon could have done this standalone but it would have taken three to five years. A lot of these mlps were born of a time when Oil Companies were strapped. This is not the case. Clearly devon could have done this stand alone but they have accelerated the full valuation of their midstream assets. Fundamentally there is a difference in the way midstream assets are valued. As part of their e and p company, devon was really missing an opportunity to see that value. Not only do they get it but they get it quicker than they could have on their own. You did better than every other Oil Executive that came on the show in the last year. Im tempted to believe what you say and think that this is a good thing for individual investors. Thats barry davis, the ceo of crosstex energy. Check where this stock went to, and youll understand why i think this is a great idea. Stay with cramer. Announcer coming up, mac money, its not china mobiles 760 million subscribers thats got cramer excited about apple. So what is . Find out, next. Open to innovation. Open to ambition. Open to bold ideas. Thats why new york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and grows more businesses. Were open to it. Start a taxfree business at startupny. Com. So ally bank has a that wont trap me in a rate. Thats correct. Cause im really nervous about getting trapped. Whys that . Uh, mark . Go get help i have my reasons. Look, you dont have to feel trapped with our raise your rate cd. If our rate on this cd goes up, yours can too. Oh that sounds nice. Dont feel trapped with the ally raise your rate cd. Ally bank. Your money needs an ally. Theres nothing like being your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. When people interview me about my new book, get rich carefully, the part of the book that theyre most surprised by is my embrace of the charts, of technical analyses. They cant believe that this old dog fundamentalist has any use whatsoever for the charts, let alone that i devote an entire chapter to teaching you how to read them. I like to know what theyre saying and meld that with the fundamentals. Lets consider apple. Heres a stock that took off on ceo tim cooks interview where he talked about how the company is going to take china by storm because of his new deal with china mobile. Its the most important geographical entry ever for apple. Even under steve jobs the Company Never attempted to do anything this bold. Its bold because lots of people figured that the chinese wont pay apples inflated price point. Lets stick with samsung. Were not sure what the subsidies for iphone buyers will look like, so there is a sense of the unknown. I contend that samsung has lost its edge and pretty much everything lately including marketing. It had been so strong but its faltered, something i think most commentators disagree with. I dont care. Apple no longer seems to get the benefit of the doubt, no matter what it does. Three quarters ago the company was heckled on its Conference Call for not putting enough emphasis on china, so what does tim cook do . He makes it his priority. I think the cynicism about apple and its inability to wow the street, as opposed to google which saw its stock rally for a nonchirping Smoke Detector and a thermostat seems out of sync with reality, overly skeptical. That operating system is fabulous. To wall street it seems that goo