Lucrative. [ ka ching ] especially when the risk seems washed out by multiple town days including days like today that opened horrendously. The dow at one point down 135 points but then finishing strong. Hallelujah the dow gaining only 68. Nasdaq climbing. 86 . It was the kind of comeback that only happens when a market is oversold and investors have said, enough already. Im going to hold on to what i have left. What do i mean when i say the market is making sense . How about the fact that the slowing growth of the Global Economy and the negative manufacturing data we have seen in this country of late have caused Interest Rates to go low and thats logical. Rates are low. Housing becomes affordable. When housing is affordable people switch from renting. Especially in a situation where rents are about the highest they have ever been when you relate it to the cost of buying a home. Throw in that the banks are willing to lend a bit more with less of a down payment to people who need a loan, not just the one who is are rich enough that dont need to take it and you have a mini movement in housing. No wonder Home Building confidence is at a tenyear high. We have a housing shortage brewing. We knew this had to happen. We are finally back in new household formation mode. For years after the Great Recession young people would live with their parents if they were single or with the inlaws when they got married. Young families are now out buying homes which is causing that democrat graphically inspired and longlasting housing shortage. In some cases homes have increased in value while they are on the market. This is an extraordinary moment. I have seen it in brooklyn where i live part time. Toll brothers on the water front started at a 3x. In a market that makes sense, you could buy the stocks the Home Builders and expect to make money. T. R. Horton, builder of entry level home led the charge up 23 for the year. Toll which i mentioned has been pushing relentlessly. Le noer, same. They broke through levels that would have been unthinkable because of commodities going lower and the worldwide turmoil. There was a positive in the end. Whats extraordinary to me is this move is happening right under the noses of people who should know better. But they keep waiting. They keep waiting for the bell to go off, for the Federal Reserve to signal that it will raise rates. You dont do it if you are serious. You tune out the fed talk and figure out who does better in the environment you have. You play the hand that you have been given. The answer, the Home Builders. One derivative further. Once you buy a house you have to fill it with goods. Cant just buy a house. There are a host of web based opportunities like amazon and wayfair. They are on the hot seat because of the New York Times and working conditions. Excuse me for thinking this is not really important to the stock. Moreover, its really not that new. I remember watching david fabers documentary and the nature of am ston which puts up factories in onehorse towns desperate for employment. I cant bemoan what i knew about their labor practices but an easy 3. 70 gainer today. Same for wayfair. The Online Furniture play. After a spectacular quarter not many people expected it judging by the 42 short interest. Thats the amount of people betting against it. When i see so many shorts its the initial run in zulil, y which caught a take over bid. It drove the stock from 22 to 73 months later. Of course zulily was acquired for less than 19 a share. Im saying tonight be greedy with a terrific stock like w wayfair. It makes it difficult to own home depot and lowes. They have had monster moves already. That said, at a time when the trading partners seem to be hurting, there is nothing wrong with owning the stocks of two domestic stalwarts. Of to buy more. Leave room. Even wants pure plays to sell at home despot and lowes. It makes sense to remodel the kitchen and bath if you are trying to invest in the house rather than lose money. How about these . Sherwin williams, ppg. Whirlpool, stanley, black decker make sense. They were well off the highs because they have more International Exposure than you might like. Its coming down rapidly. Thats a good reason why you can buy them there. Do you know what makes sense to me . Remember the airlines . The red hot group caused by the super strong dollar and oils rebound super freaking. Oils rebound is 60. The dollar seems topping to me unless the fed is tightening it. Tonight forget, they trade on the supply of roots known as capacity. Remember there was a worry about the big slug of new capacity coming on. Doesnt look it will will happen. Thats why southwest and delta can keep going. America has legs. Im concerned about merger integration. I think they will figure it out about how to make it so america and u. S. Air seem to operate in a seamless fashion. I wish they made that less complicated and had done the deal together earlier. Those are on warehouse plays on lower Interest Rates and oil. However there is a second tier of investment on todays when rates are this low. I was shocked by the run in con ed which rebounded from 57 to 66 and change today. It can go higher but is less than 3. 9. Thats the level where i dont want to buy the you tile tis under. North of four, i like it. The most amazing runner is the Oil Gas Limited partnerships. They were laying low by bad operators and a couple bad shareholders who borrowed money. They seemed to be tone blowing out their positions now. How do you evaluate them . Stay tuned and i will tell you how later in the show. What else . Lower rates signal inflation is tame. Thats when you buy Aggressive Growth stocks like tesla or netflix. Netflix is a play on increased household formation and the worldwide bargain of noncord entertainment. Tesla is the product of Morgan Stanley slapping on an insanely high price target on the stock. When you put a 465 price target on the stock im not talking about the bookcase north of 600. You will get a rise. Even if its based on the notion that one day in the not too distant future tesla will be part of the shared economy. Maybe selfdriving vehicles. I dont know. Up almost 5 . Never forget the low inflation means there is more money for the highest Growth Stocks as earnings in the out years the Companies Might have gain in value when we think inflation will be tamed. Once more, back to the biotechs. Do you know what else is heartening . The way disney has been able to craft a better story. The stock bottomed last week. You could tell it was washed out. How do you create a better story . Discussion of the new acreage. Listen to me. Any sound bite, any picture, any narrative away from some subscriber losses, that was in quotes. The three most devastating words in the media lexicon is a total win. Comcast Parent Company has been able to change the narrative thanks to a red hot movie schedule. The others, not enough diversification. Comcast, 1. 53. Why was the market able to make so much sense after a negative opening . The bottom line is the gloom has gotten too palpable. That controls. The ugly news from overseas wasnt ugly enough, at least last night to derail us. Thats what we need for the market to logically move higher. And today we got logic. Andrew in florida. Andrew. Hey, jimmy. Thanks for taking the call. Of course. Real quick, just want to give a shoutout to my lovely wife who serves our country every day in the u. S. Air force. Thank you, honey. I thank her, too, for serving. Terrific. Caller my question is on alcoa. You have talked about the company being a 2016 play. Im curious as to what wrote think of it now. I have been stock piling shares as it goes down. Do you see a bottom coming soon . This is tough. Heres why. First of all, happy birthday to your wife. Here is the problem with alcoa. Every day you read about china dumping aluminum. Every day you know on the last Conference Call the ceo said this was going to be a problem. So alcoa has been driven down. This is a new alcoa less levered to the price of aluminum but people have to wait to see the quarter before they believe me. You should own it. No, i dont expect toyota pop until the quarter. Mohamed in new york. Caller hi, jim. I would like to know your position on micron. I purchased it at 19. I wonder if its Worth Holding onto. We have two town grades today and one upgrade. The two downgrades didnt knock the stock down. That way we were talking to ben salvo, research with me, for the show. We were saying we have to look at the micron downgrades. If thats the case, maybe we smell a bottom. I love it when markets make sense. Bad news over seas wasnt bad enough to derail us. At any time happen. All aboard giving you plenty of opportunity. On mad money tonight, the hottest Cyber Security names in the whole market. Stocks up 50 this year but people are throwing away cyber arc. Does it make sense . I have the ceo. Whats going on with jcpenney . The stock popped. Are the disasters finally in the rear view . Hear my bold call. And the prepaid gift cards. You see them at the cash register. Can Blackhawk Network hang in the digital age . You know what i think. I have the exclusive. Stick with cramer announcer surprised by the big swing in stocks today . Find out cramers final thoughts before tomorrows trade coming up on last minute mad. Announcer dont miss a second of mad money. Follow jimcramer on twitter. Tweet madtweets. Send jim an email to madmoney cnbc. Com or give us a call at 800743cnbc. Why should over two hundred years of citi history matter to you . Well, because it tells us something powerful about progress that whether times are good or bad, people and their ideas will continue to move the world forward. As long as they have someone to believe in them. Citi financed the transatlantic cable that connected continents. And the panama canal, that made our world a smaller place. We backed the Marshall Plan that helped europe regain its strength. And pioneered the atm, for cash, anytime. For over two centuries weve supported dreams like these, and the people and companies behind them. So why should that matter to you . Because, today, we are still helping progress makers turn their ideas into reality. And the next great idea could be yours. Group out there. A couple months ago the names sold off to cybr. This Cyber Security stock that was the hottest name. They have built a terrific business for itself by helping companies protect what are known as Privileged Accounts or administrator accounts which are use juicy for hackers because they have the key to the Information Technology kingdom. Historically when a hacker gets that privileged account he owns your entire system. Cyber arc proactively protects against and responds to attacks using the accounts. The stock has been on a run. Nearly doubled on the first day of trading. We told you to hold on. Its still down more than 16 from the june highs. Cyber arc had a Strong Quarter last week. They beat earnings estimates. Higher than estimated sales. Okay. I know its expensive. 77 times earnings with tremendous growth. Valuations have never been much of a barrier to these plays in the past. You can make a case that the 1. 9 billion market cap it has too much upward mobility for that. The ceo joins me now. Welcome back to mad money. Thank you very much. There is something interesting. You talk about it twice in your Conference Call. You had to have Cyber Security protection because you thought the auditors needed i. Then it was no longer the auditors but theyve got the goods. The sony and anthem breach were a wake up call. The auditor isnt the enemy. They are trying to help you be compliant. What are the attackers going after . They are trying to own the business like they did in those cases. You talk about partnering. Youre not saying you are up against fire eye, being up against pelator. The berarc oub cyberark own it is space. We complement the security investments like palo alto and create a new layer inside. While we have mild competition, we were focused on it for years and have a strong advantage. I want to talk about this health care vertical. It scares people to have their information be brought out. How did they get in . Getting in is easy. You send phishing attacks and somebody will click on it. The problem is what happens afterwards . Organizations were only protecting the outside. Once you are in, attackers were free to roam around, steal credentials and get to the goods. You have pass word protection that works . The platform finds the credentials and allows only trusted users to use them. We alert on anomalous behavior. Thats realtime . Realtime. Its measurable security which is rare. Customers talk about how many accounts they have under kro control. They have hardened themselves. The reason i mention it is because, you know, youre not going to get credit for nobody hacking. But you will get blasted if somebody does. Thats an odd asymmetrical loss for you, isnt it . We help customers be more secure. They run tests and see if it is harder. Even if breached it is harder for the attacker to get to the goods. We make sure they implement correctly, discover all the Privileged Accounts and not just what the auditor pointed them to. We have been focused on what the irs is up to. Not necessarily that you are the customer or not. Thieves stole Tax Information from thousands. Much bigger than we thought. We had the ceo of h r block on. They get your tax i. D. And apply for your the attack. Now its Health Care Records and these things. When you steal personally identifiable information like the records you can be that person. Even when you steal a health care record. You can then go, use the Social Security number and apply for tax returns. Again, to the customers we advise to be worried and not protect the outside. To the consumer they have to be very watch out all the time to see their Credit Scores and all of that. How did my wife get a 103 charge from a luxembourg account . Im not saying a hundred dollars isnt a lot of money for people. How do they get that . Is that privileged or they they got in somehow. They got the credit. They could have been listening to the point offal sale device like in the target breach. That had to do with Privileged Accounts. The hvac manufacturer supplier got in, got to the credit cards. Utilities, too. They are a big vertical for you. Yes, in q2 we talked about more than doubling. What are they doing . Its critical infrastructure. If you bring it down you are causing major damage. Not all hackers oh are for profit. Some are for damage. This is a vertical awoken Like Health Care and others. Every time i talk to you i get scared. Were on the good side. Fair enough. Udi mokati of cyberark software. They dont have any competitors. This is the software and Cyber Security we have to deal with for a long time. Mad money is back after the break. Announcer coming up, top and bottom line beats. Seeing green on the day. Jcpenney is on the rise after posting Solid Earnings but the chain is down for the year. Will shoppers make up for losses or should you ring the register . Cramer is on the case. Next. Out of nowhere jcpenney got its groove back. I think it is rolling all the other merchant s out there. The ceo has a level of competitiveness thats outstanding. So much that he recognizes the goal isnt just to get into the playoffs but to be the champion. That. A ambiguous has been sorely lacking in the struggling retailers dna. Hes backing it up with 4 same store sales growth and a plan to get it to 5 . Fantastic for this old horse of a store chain. Its a given that ron johnson almost destroyed jcpenney bs consistently taking same store sales down into the high negative 20s. You almost have to actively drive customers away with threats of physical violence to repeatedly deliver such horrendous numbers but jcpenney never wanted to be the best, just good enough to keep 87 Million People who shop there happy which meant lots of promotions around the holidays and a dedicated staff paid slightly higher than minimum wage. Still the case. Ellison wants jcpenney to be a world class retailer backing it up with the former v. P. Of Online Mobile and home depot and mike robins, supply chain chief from target. These are difference makers. They speak to the idea of making penney a better player on the web. Ellisson said it has an edge on competitors trying to have a buy online, pick up in store or bopus strategy. Im not sure. I dont know if they have a leg up. They have 1,060 stores versus walmart. If walmart wants to emphasize bopus, i dont know how jcpenney can compete. But ellison said what you see isnt what you get. Hell improve business with the new hires. I think the bar is low enough he can beat it. Everyone is struggling with omni channel. Norris had to spend billions. Liberty kwvs just shelled out 18 a share to buy zulily which fizzled as a stock. I liked the concept. It could be a good fit for a television retailer. Within the group i like jcpenney because wall street expects so little from the left for dead chain. Another aspect of the Conference Call i loved, his candid admission that jcpenney customers like promotions. This was so good. He said and i thought it was so candid. Quote, we are very committed to being promotional, end quote. Point blank, he acknowledged the drive to become another retailer that wasnt promotional hurt the faithful. They found their way back with new promotions and he wants to keep them there. I like the emphasis on private label. We have some here. Not necessarily the stuff he likes. More on that in a second. But it will grow. Private label is easy to discount because the margin is high. Thats what he intends to to. I wear a lot of private label stuff on weekends. How much damage can a revitalized jcpenney do do to the industry . Its like kohls. They couldnt deliver this quarter. Jcpenney can put the hurt on macys. Obviously you can take customers from sears like everybody else. Heres the bottom line. These areas, they acknowledge hes not there yet. The rest of the industry will have to do more than just sit up and take notice. They are going to have to react to the newfound threat. Just when they fought jcpenney was dead and gone as a competitor. Lets speak to chuck in tennessee. Caller jim, im calling about jd. Com. If this isnt a long term cycle waiting to happen i dont know what else. The merchandise metrics are off the chart and the Huge Investment in their own last Mile Delivery solution should pay dividends for years to come. With the confidence that the smartest guys on the street bar none are huge in the name and the fact that recent china weakness has nothing to do with the longterm Growth Prospects and fundamentals im inclined to add to my position, poke holes in the company if you can. I will poke holes not in the company. Everything you said is right, chuck. The country, im not going to recommend anyone invest in china. I hope china goes up a great deal. Im not going to hurt anybody in china. Steve in new york, please. Steve. Caller steve, new york. Booyah. Youre up. Caller costcos numbers are looking up. A great recovery so far. Costco and visa partnering up. Any recent news . No. The quarter was okay. Jack moore was the Research Director of action owners plus. Com, my Charitable Trust. He and i kicked it around and didnt want to pull the trigger. We see other retailers doing better now than costco. Ill tell you, costcos bar is set so high. Jcpenney is lower. Thats what i like. All right. Looks like jcpenney got the groove back. The rest of the industry, beware. We have much more mad money ahead including my exclusive with the king of the gift card game, black hawk network up nearly 60 since i fist recommended it less than a year ago. I have the ceo. The chaos in crude is punishing Everything Oil and gas and may give you an awesome opportunity to pick up yield. I will unveil it ahead. Of course, the lightning round is coming up. Stick with cramer. Announcer tomorrow, kick off the trading day with squawk box squawk on the street. The moon has shake shake. Its white space. Announcer it starts at 9 00 a. M. Eastern. More data means more freedom to do. Whatever. Thats why at t is giving you 50 more data. Thats 15 gigs of data for the price of 10. Because the more data you have, the better. And right now at at t get 300 credit for every line you switch when you trade in a smartphone and buy any smartphone on at t next. Is as easy as it gets. Wouldnt it be great if hiring plumbers, carpenters and even piano tuners. Were just as simple . Thanks to angies list, now it is. Start shopping online. From a list of top rated providers. Visit angieslist. Com today. At ally bank no branches equalsits a fact. Kind of like mute buttons equal danger. That sound good . Not being on this phone call sounds good. Its not muted. Was that you jason . It was geoffrey it was jason. It couldve been brenda. When you get a smalle pull back in the stock after a fabulous Company Riding a powerful multi year theme you have to jump all over it. Thats how i feel about black hawk network holdings. Its up almost 20 since we last spoke to the ceo in february. Its given us a 59 fwan since i recommended it 11 months ago. Blackhawk is a leading distributor of prepaid cards and gift cards serving hundreds of brands. Running programs for over 2,000 business partners. We know the business has been red hot. Blackhawk is one of the best ways to play it. The Company Reported huge top and bottom line beats, upsidele sales and earnings guidance. Earlier last month blackhawk announced an intriguing acquisition of the leading provider of Employee Recognition and rewards solutions to help make workers more engaged giving them a strong foothold in a rapidly growing category. Blackhawk is now down 4 from highs and this could be a good entry point. Lets speak with the chairman and ce o of Blackhawk Network holdings to learn more. Welcome back to mad money. Good to see you, sir. Last time you were on, bill, we were in the grips of people not really understanding the story, thinking somehow your organic growth slowed or you missed the digital side and you were just the cards. What happened to finally get people to realize it was a great quarter . Part of it was we had to simplify the way we broke out the numbers. Partly we had to tell it multiple times. You know, we had a series of events. We increased the am acquisiti acquisitions. We have a Digital Business growing like mad. Everybody assumes something must be wrong somewhere. It didnt seem to make sense. In fact, when they got all the numbers they found each one of the cylinders is hitting well. Right. The growth of accounts, just give them five years ago versus how many you have now. Well, of course, now in 24 countries, we have literally gone to 200,000 Different Stores around the world that are actively trading gift cards. We had less than half of that if you go back three or four years. The business has grown, probably somewhere in the neighborhood from a profit standpoint over five years about five times. Incredible. This whole foods distribution teal, it wasnt clear to me how its tichbt. They ran a pilot program, loved what you did and they are doing a full blowout. What will it look like . Whole foods is an interesting animal. We all know about them. They have designed a special program. Even the cards cant be plastic. They will have a Loyalty Program tied to a charity thing. They will be huge because of their demographic. They have huge traffic and a high democrat fwrafk. People who buy gift cards a lot. We have the approvals for it to roll out over the course of the next year. It will be large. Its important because people felt they lagged in loyalty. Thats what i needed to hear. You just made a good acquisition. I want people to understand even an outfit like lions data is part of your client base. Talk about the new acquisition. Achievers is fascinating. People have given employees rewards when they reach ten years. You throw it in the corner of the decembering. Achievers recognizes that especially in younger employees rewards need to be about accomplishments, project wins, et cetera. They need to be tied with recognition. This Company Built a platform. It will be the next h. R. Platform where it manages all of that stuff to a budget. Let management do what it wants from employee tracking and incentive but does inside the corporate infrastructure, socially, tons of recognition tied to rewards. What confused me is i know if you do gift cards at christmas and holiday time then the irs doesnt mind. How are l you take the taxes out . How will achievers make it so people dont pay tax on a gift card . Its all managed as part of the platform. There are taxes required. Its managed. Historically all incentive programs started as merchandise. Then there was travel. Its migrating now to gift cards. There is more flexibilitile and the dominations and choices you get. It makes it a growth industry. Are there companies that dont have achievers and you will cross that . Its a beautiful thing. This is a large corporation, a company focused on large corporations with lots of employees. We are full of retailers. Large corporations with lots of employees. We are working hard to get them introduced to it. When i see your cards on the wall are people saying, thats jims generation. We dont to that. We do dinl tall cards. I like them. I send them to my kids as gifts if its their birthday, valentines day, whatever. Am i Old Fashioned and i should be using the daj tall version . The digital thing got so much noise. People said it has to be the end of blackhawk. The truth is we are a leader in the digital space. Go on amazon, as an example. All but the amazon gift cards we supply. Ebay, same story. If you go on a series of websites to the bigs retailers, same story. If you go to programs using gift cards to reward people as part of the credit card Loyalty Program we have several of those i. s only 3 or 4 of the business. Its grown 100 . So far its been incremental. One of the problems with an electronic gift card is they are hard to redeem because Electronic Payments arent ready for redemption. Theyre not. I feel with the card i feel so good. And they look just like the name plate and people love it. They do. Last time you were on was in the midst of when they were trying to explain to the analysts but analysts didnt get it. Now they do and thats why the stock is going where it should be going. One of the most exciting stocks i follow. You have to get involved with it. Mad money is back after the break. Qo e d8j8j8j announcer lightning round is sponsored by td ameritrade. It is time it is time for the lightning round. I take your calls and tell you buy, buy, sell, sell. Until we hear this sound and the lightning round is over. Are you ready . Time for the lightning round on cramers mad money. Starting with sudish in massachusetts. Caller im a huge fan of the show. Thank you for everything you do for us. Thank you caller so my question is my dad bought stocks for cree. My question is should he hold onto the stock . At this point, yes. Its down so much, i cant recommend you sell it. They have missed the quarter. Missed it so many times you will be punished. Thats where they are. Mike in florida. Mike. Jim, i continue to see Movement Toward design of wearable devices. I love my iwatch. I would like your opinion on which i thought would benefit from this direction is imbm. Yeah. A lot of people play this one. Maybe im conservative in my older age. This is too tiesy for me. I want to be in apple. Remember, i want people to own apple. People have given up and i say, you know what, see you later, i dont need you in the stock. You dont want to play, stay away. Want to trade, stay away. Craig in new york. Caller hey, how you doing, cramer . Booyah, baby. On bp, are they in danger of any kind because of the drop in oil . Put it in way. Everybody is in danger in the oil patch if it breaks through 30. With 40 fewer will be in danger. Bp has a good well run company with a lot of assets. That said lets understand each other. Speaking to the queen, she said be careful. It looks like we might be get ago buy signal. Dan dicker i work with at real money. Com. He thinks its a buy signal. My Charitable Trust owns them. I wrote a tough piece about it last week. We are not selling any oil. Rb in texas. Caller how are you, jim . Good. How about you, partner . Caller listen. I want you to look at ver, what do you think of the new leadership . This is a Real Estate Investment trust that doesnt deserve to be as low as it is. It doesnt make sense to me. Im fine with it. Gary in indiana. Caller yes how you doing, jim . Whats up . Caller im a novice. I wanted shake shack. All right. Lets talk about shake shack for a sec. Started going up after the hideous secondary. My line on shake shack is this is a stock thats over valued but if you love it, like if you love tesla, like if you love netflix im not going to fight you. Okay . Everybody has a right to buy a stock of a product they really like and hope that overall the Company Grows out to its market cap. Thats what shake shack has to do. Bryan in missouri. Caller booyah from st. Louis, missouri, jim. Nice. Caller looks like a good Fourth Quarter from these guys but Unfavorable Market reaction for solar edge. I we are doing a lot of whipping of ourselves and evaluating things. You can learn more from your mistakes than you can from your successes. Mike in connecticut. Mike. Caller booyah, cramer. Big fan. Thank you. Caller calling about xon. All right. This is the hottest biotech stock i have seen. We are going to do a deep download. I have a team of people working on this one. We are not going to declare it safe yet. And that, ladies and gentlemen, is the conclusion of the lightning round [ buzzer ] announcer the lightning round is sponsored by td ameritrade. Stickers. Hey also love whats up with these things, victor . We decided to give ourselves stickers for each feature we release. We read about 10,000 suggestions a week to create features that as traders wed want to use, like social signals, a tool that uses social media to help with research. 10,000 suggestions. Who reads all those . He does. For all the confidence you need. Td ameritrade. You got this. This is a great place to work. Not because they have yoga meetings and a juice bar. Because theyre getting comcast business internet. Comcast business offers convenient installation appointments that work around your schedule. And it takes done. About an hour. Get reliable internet thats up to five times faster than dsl from the phone company. Call 8005016000 to switch today. Perks are nice. But the best thing you can give your business is comcast business. Comcast business. Built for business. Wonderful, crazy mornings. We figure you probably dont have time to wait on hold. Thats why at xfinity were hard at work, building new apps like this one that lets you choose a time for us to call you. So instead of waiting on hold, well call you when things are just as wonderful. [phone rings] but a little less crazy. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. Is it finally time to start picking among the rubble of the Energy Related partnerships or mlps that have been completely obliterated . Courtesy of the plummeting price offal oil and of course fears that the Federal Reserve will raise Interest Rates. Making the high yielding mlps less attractive versus bonds. When you consider the Gold Standard redrently made a new fouryear low this month even as the price of oil seemed to stabilize above 40 for now. And the woes of the Global Economy think china make it likely to wait its easy to understand why a number of analystsed circling back. Last week Credit Suisse upgraded the entire group. Noting when the mlps rebound they do it dramatically. Since the stocks have given you a terrific return, nearly 40 in the fist eight months after they bottom. 40 . First of course the stocks need to stop going lower. Looks like they have but wait a second. There is plenty of value in the Energy RelatedMaster Limited partnerships. This is one area where you need to pick your spots. Thanks to the selloff the mlp space has been taken down in lockste step. The good coming down with the bad. And that means while some mlps are under valued others are still too dangerous and to deserve to go lower. Tonight in order to help you analyze the stocks and the cohort, i will present a case study of two different Master Limited partnerships that reported recently. They moved in lockstep together. The first is planes all american pipeline. The house of pain and Energy Transfer partners. House of pleasure. Etp. Before i dig in deeper let me say in this environment you want to own the mlps with the least Commodity Price Exposure like the pipeline plays which generally charge you fees based on the volume of oil or gas they are transporting rather than having a connection to the price of oil which can go lower even though i wrote a piece this weekend on real money. Com saying, listen, i was too bullish. I still think oil is a buy. But i was too early. How about plains all american pipeline and the Energy Transfer partners . Here are two pipeline oriented Master Limited partnerships that both reported the week before last and both saw the stocks get obliterated. Even as only the former plains reported a bad quarter. It was a better than expected one. Lets start with plains all american which came out with results that did stink up the joint causing the Energy Cohort to get slammed thanks to incredible negative pin action. Sell, sell, sell. Plains all american gets 75 of business from transporting crude oil via pipelines, barges, tankers, trucks, rail, you name it. The rest is storing nat gas and bulk storage. They were playing arbitrage here. When plains all american and plains gp, the general partner that managed plains all american reported on august 4, they did manage in the headlines it looked like they beat earnings estimates even as the revenues came in at 6. 6 billion or a 1. 33 billion less. Yes, they missed by 1. 33 billion dollars less. While some of the businesses were solid, plains supply division declined 42 year over year. Gp slashed the guidance and worst of all management cut the distribution growth forecast down to 6 for 2015. They even indicated in one of the hold your breath moments on the Conference Call they might hold the distribution flat rather than increasing it through the middle of next year. There are enormous red flags here. A big part of the reason to own the mlp is you think the Cash Distribution of shareholders will keep increasing. Thats why we liked kindermorgan but tts no longer an mlp. Plains all american is not as attractive as other mlps if it stays flat. It is not a stretch to go from paa Holding Distribution flat to this is what people fear actually reducing the distribution. Thats especially true given that plains all american only expects to generate enough cash flow to cover 93 of the distributions they plan to pay this year. Thats an alarmingly low,s called coverage ratio so i worry the bountiful looking 7. 7 yield may not be all that safe. Raises questions. In response to that quarter plains all american saw stock lose 10. 8 of value in the next day falling from 40 to 35 and change. It was all about the distribution growth. And the pin action from plains annihilated the sector causing the Energy Transfer partners to sink nearly 5 , same session. Later that exact day, Energy Transfer partners and the general partner Energy Transfer equity reported and their results were good. No one focused on it. No one noticed at the time. The hid rous result frts plains convinced the market that the mlp space was untouchable. Energy transfer partners is also a midstream Master Limited partnership. It has a lot of pipelines for oil and fwas. Etp has a 27 stake in Sunoco Logistics and a 44 stake in sunoco itself giving it exposure to the downstream retail side of the oil business. Thaez a good strong business. If you look at the headline numbers for Energy Transfer equity the quarters seem similar to what we saw from plains and earnings coupled with a big miss on the revenue side. When you dig deeper results look different. For starters Energy Transfer partners just boosted its distribution by 8 . Then management said they have more than enough cash to cover the distribution. They have 103 coverage ratio for etp. 119 for the general partner. Even better management indicated they are on track to continue growing the distribution going forward. Meaning you can go higher even if the stock does nothing unlike plains br the distribution is on hold or some say in jeopardy. When you buy Energy Transfer partners for the 8. 2 yield take comfort in knowing the distribution is not only safe but it will grow. In part because everyone was freaked out by the commentary from plains all american Energy Transfer partners continued to go lower after reporting the good number. The stock fell as much as 3 the next day before rebounding. Since then the stock made up its losses. Trading back to 50 and change. Thats above where it was before plains all American Made even want to sell the mlps. I think Energy Transfer partners which my Charitable Trust owns is a bargain. Why . Its down 19 from the high. Yet it did better than in others. It has a safer yield than plains which has less coverage ratio than etp and more than enough cash to cover the distribution. Not only does Energy Transfer partners have 8. 2 versus 7. 7 for plains its safer. Plains waffled about growing the distribution in the environment, Energy Transfer partners give you a bullish forecast. Meanwhile etp has a much larger business with more geographic breadth, more dependence on oil which matters. Thats where the drilling is going down. Natural gas is above where its been whereas oil has plummeted. Put it together and Energy Transfer partners is worth picking in here while plains, im still saying its a little too dangerous for me. Heres the bottom line. At a time when the Master Limited partnerships seem ripe for rebound and i think it started last week and the big sellers are out of the picture, be careful and selective. Only the strongest players with the safest yields. Buyer of Energy Transfer partners. Even after all the decline i would stay away from plains all american. Stick with cramer. So youre a Small Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep it all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberry apple scones smell about done. Ahh, youre good. I like to bake. Add new Business Services with at t and get up to 500 in total savings. At ally bank no branches equals great rates. Its a fact. Kind of like shopping hungry equals overshopping. All right. The cyber ark if they are going to turn and the group turns together thats not an expensive stock versus the others believe it or not. There is always a bull market somewhere. I promise to try to find it for you. Im jim cramer. See you tomorrow. [ engine revs ] hi, everybody. Welcome to jay lenos garage, though this week, were not gonna be in my garage. [ indistinct conversations ] were on our way to pebble beach, the ultimate car week. Now, pebble beach is kind of like the super bowl for car enthusiasts. Youll see some of the greatest cars ever built. Well take you to concours dlemons, where youll see some of the worst cars ever built. 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