Mad Money Play-by-Play: Cramer Talks Energy (Live 8/9/12 Recap)
Mad Money on the monster rally in the market today with the DOW’s 4-day winning streak officially snapped. Is this such a bad thing though? Has the market become a house of pain, or a house of pleasure? When does firing become better than hiring? (Take for example, P&G and Cisco whose stocks have gone up after some firing.) How about Europe? Germany is up 18%. With all the problems in the Eu weighing worldwide markets down, shouldn’t WE be at least up to par with Germany? Speaking of which, how about OUR government which was expected to default last summer and was downgraded? Cramer tackels all this fear and loathing around the market today on Nerdles’ live play-by-play recap of Mad Money. Stick around with us as Cramer clears the market’s dirty air.
Retails sales, housing, autos, Cramer says, are the U.S. economy. Forget about waiting on the EU to get better. The bottom line: the market is heading up and can continue to do so.
Cramer takes some calls:
Stafford in OR on oil stocks like Chevron (CVX): Jim’s Charitable Trust owns the stock. Enough said, we believe.
Brad in CA on Macy’s (M): Cramer would buy on any of Macy’s weaknesses as it’s much cheaper than Nordstrom.
Cramer on American Electric Power (AEP): Since June 6, the stock has given back 11% returns. On Executive Decision now is AEP’s CEO, Nick Akins. He says they’re not yet through their Ohio regulation issues but they’re off to a good start. In regards to their corporate regulation in Ohio, they’ll be about 84% regulated and 16% unregulated. Also, to comply with EPA regulations, AEP has reduced 85$ of their sulfur dioxide emissions. If AEP gets the okay in Ohio, Akins says their dividend will be higher than expected. Cramer’s last words: “This is a good one.”
Cramer on Continental Resources (CLR): there’s more to CLR’s story behind their earnings – look at their other metrics, Cramer says. Pm Executive Decision is CLR’s CEO, Harold Hamm. They produce about 100,000 barrels a day, and it’s bound to get bigger as their expansion and production fire up. This makes Cramer believes that CLR’s selloff yesterday was highly uncalled for, that it was a mistake to sell the stock. Moreovfer, Gov. Romney has named Mr. Hamm as Chairman of his energy policy advisory group. Oil is best, as Hamm says, but he continues on to say that he likes natural gas as it’s clean, abundant, but the value right now is in oil for CLR for the time being. In 10 years, he believes the U.S. can be energy dependent. In 5 years, he doesn’t think we’ll be using much of mid-East oil. Cramer asks about Boone Pickens Natural Gas Act (Cramer says he wants to “crush” OPEC and we agree), and Hamm agrees that natural gas is key to energy independence in the U.S saying that Gov. Romney wants to see it happen. Should and when this happens, contsruction of an infrastructure of pipe lines could generate about 200,000 jobs according to Hamm.
Robert in NJ on Millenial Media (MM): BUY. He believes it’ll get bought by Facebook or Google in a couple of years.
Vic in PA on Allergan (AGN): BUY.
Peter in CN on Youku.com (YOKU): SELL. Cramer will not recommend any Chinese stocks.
Dino in FL on Cisco Systems (CSCO): BUY. Then SELL at $19.
Keith in MA on NiSourse (NI): Cramer says it’s fabulous. BUY.
Am I Diversified?:
Arnold Valentino (over Twitter) holds Apple, Altria, Craft Foods, Lulu Athletica, Energy Transfer Partners. Approved.
Michael in IL holds McDonalds, Bank of America, Goldman Sachs, Chipotle, Citibank. Fail. Cramer changes it up: JP Morgan, Bristol Myers, American Electric Power, and keeps McDonalds.
Nick in NJ holds Cirrus Logic, Apple, Bank of America, Dunkin Brands, Microsoft, and 3M. Cramer adds Bristol Myers to the mix.
Cramer on the oil and gas industry: National Oilwell Varco (NOV) bid for Robinson Myers and other possible takeover deals is not something Cramer is so sure about as he says that buying companies with declining fundamentals is a losers move. Rather, he prefers the “King” of the oil service business (unlike Weatherford) Schlumberger (SLB). Jim’s Charitable Trust owns SLB.
With some parting words on Google, Cramer says it’s taken the lead and the torch and will be the first between it, Amazon, and Apple that will go back to it’s 52-week high.
Check out Jim Cramer’s past advice and stock picks on Nerdles’ Mad Money archives HERE.
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