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Transcripts For CNBC Mad Money 20130220

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Increased risk of seizures, confusion or abnormal behavior. The most common side effects are mild to moderate nausea and vomiting. The flu comes on fast, so ask your doctor about tamiflu. Prescription for flu. But at xerox weve embraced a new role. Working behind the scenes to provide companies with services. Like helping hr departments manage benefits and pensions for over 11 million employees. Reducing document costs by up to 30 . And processing 421 billion dollars in accounts payables each year. Helping thousands of companies simplify how work gets done. Hows that for an encore . With xerox, youre ready for real business. Im jim cramer. Welcome to my world. You need to get in the game firms are going to go out of business and hes nuts. Theyre nuts. They know nothing. I always like to say theres a bull market somewhere. Mad money, you cant afford to miss it. Hey, im cramer. Welcome to mad money. Welcome to cramerica. Other people want to make friends. Im trying to educate and teach, so call me at 1800743cnbc. People like to fight the tape. Even on a terrific day like today. The s p vaulting 7. 3 , and the nasdaq climbed 0. 68 . House of pleasure. Its a natural instinct to fight given how immediate our fights have been, but buy the dips, sell the rips attitude has been the way to go. The way to win since 2000, but it sure isnt winning now. You sold the rips, you sold a ton of stocks a long time ago. You dont have any stocks left. But the charts are breathtaking with breakout all over the place, housing, hotels, lumbers, semiconductor, construction, cable tv, entertainment, packaging, chemicals, drugs, biotech, retailers, rails, you name it, even the lack to pause to refuel is as unprecedented as ive seen in all my years of investing. No retina in sight here. Its as if theres a supply shortage at these levels with no stock to be found. Everyones afraid to short now, so the buyers keeping reaching and reaching for more. The rips have been sold and resold. It doesnt matter. The dip buyers have been left at the altar, or you could argue for the slaughter. If this market doesnt do some tumbling to catch its breath, so certainly not breadth with a d which it has it in spades, hearts, diamonds and clubs. Everything pales in comparison to whats driving so much of this market behind the scene. Thats the urge to merge. The rush to get married, even the desire to elope on weekends, especially the threedayers, something we havent seen in ages. I guess we shouldnt be surprised when we learned yesterday officemax and office depot are trying to merge. That was easy. In 1997, the government fought staples from acquiring office depot because of anticompetitive concerns. These days it might be vital to let them merge to keep them both in the game. Its become the mainstay for walmart, best buy, and where i get my stuff costco. The Justice Department seems as promerger as any administration that ive ever seen. Like so many other stocks that have gotten bids, these two names have been huge winners. Officemax has doubled since august, but office depot had tripled in that time. During the sell the rip days, most of these would have been sold and shorted, but the principal clients of these places, Small Businesses, arent they supposed to be dying on the vine . Isnt president obama squelching the Small Business job creator . The republicans like to say that. Maybe or maybe just isnt squelching hard enough. Otherwise you wouldnt be seeing such monster moves. In other words, business is Strong Enough to merit companies talking to each other about combining rather than thinking if you stick around and compete, its almost a matter of time before the other guy keels over. The last man standing game seems like its history. Maybe this is a merger between two companies who failed to keel over. More important, though, its a merger born of confidence, confidence that despite the runs in the stocks theres much more upside, because things are just plain better than we might realize. Even though the stocks are up from where they were, theyre still down huge from when times are good. Thats the theme behind almost all the deals weve seen, all the ones worth talking about, its the commonalty of the breathtaking number of takeovers, in a world where they were supposed to have fizzled like last year rather than ratcheting up as seems to be the case now. All right. Lets start with heinz. I dont know if your super market carries this same one. Its the are you ready skeedaddy version. What got me about this deal is not that Warren Buffett saw the intelligence of buying a brand that means ketchup worldwide, but that it didnt happen a long time ago. Heres heinz increasing earnings per share, expanding internationally, yet kept down by a frozen Food Division or slowing restaurant economy. The darn thing has been ripe for the taking for years and years. It always amazed me it hadnt been taken before. The bears chide optimists, lacking in rigor, yet when i questioned why a Goldman Sachs analyst would put a sell on a Great Company like heinz, nobody else seemed to think it was odd at all. Weve been zerosumming here for ages, and if theyre reaching for manitowoc and terex, not just caterpillar and deere, now you know its time to rotate out of heinz. Dont we like sell sell sell when we buy buy buy. Isnt that the plan . I dont know. Thats not the plan for everybody. Warren buffett, he doesnt care about sector rotations. He cares about acquires brands, lasting brands for less, some sort of consummate wholesale buyer likes brands for less. Now its his. Who was really complacent here . I say it was the goldman analysts, not the buyers. How about dell . You really think that dell, which supported slightly better than expected numbers, is that that much better than heinz . Once again, heres the stock thats been left for dead. Nobody even cares, maybe nobody pronounced it dead, yet it simply refused to die, too much cash, too much cunning. Heinz has flatlined for a long time. Dell has been going down. You know who cared . Michael dell cared, and now hes in a huge fight over pennies on the dollar. Dell will get his man, because alas his man is dell. Virgin media, third biggest deal of the year is once again emblematic of the flaw of the sell the rip strategy, virgin had already ripped and ripped big before it got its bid from liberty. The oddson move would have been to short this stock, especially in light of weakness at news corps similar properties. Whos to argue with john malone . Thats like arguing with michael dell or Warren Buffett. A trio of billionaires. Certainly no more than i want to argue with billionaire rich kinder, who is taking advantage of the markets ridiculously low valuation of oil in the ground versus what youre paying at the pump. In order to steal copono, or maybe you want a slugfest or give a lecture to Larry Ellison for his bizarre purchase of acme packet, a telco stock that had been a free fire zone stock for as long as i can remember. It had been a virtual short sell. I dont feel like arguing with ellison any more than i want to argue with kinder or dell or malone or buffett. I do want to find the stocks that the next billionaires are intent on purchasing. When the richer buying, it makes me a heck of a lot more confident. Do you mind if i throw in brian roberts, buying the rest of nbc universal, ahead of when he had to. I dont feel like arguing him, because i work for him, but more importantly because i respect him. They dont like to part with a nickel unless they can make a dime off of it. You can see whats happening here. Tax is behind us, the sequester bark worse than the bite, if there even will be one, and confidence is back, particularly among those with dollars to back it up. I know the first person to say r. I. P. To sell the rips will be hit with a gigantic selloff. Waiting for a dip in the face of a pool of liquidity brought on by the firehoses of buffett, dell, ellison, kinder, malone, roberts, its like waiting for the pacific to run dry. I would rather join them. Andrew in virginia. Caller did you see the solar panel outfit in the evening ball . No, i read the speech. Im sure she looked dynamite. Are you allowed to say that . I take it back if its incorrect. Caller no, obama likes solar for u. S. Economic reconstruction, and Energy Holdings recently made the Largest National investment in solar at 2 billion. Are sety and sbwr good to buy . Sbwr im not that crazy about. Solar city i have to do work on. You know, it was my birthday recently. My kids said happy birthday, you got to get a solar panel. Its like solar city, like circuit i dont want to do that, but how about party city . Thats not there, either. But i will tell you that i think the solar city is on to something. If you can get money to put a solar panel on and cut my electric bill, you would be plenty happy. Matt in texas, matt . Hi, jim. Booyah from austin. Man, austin, we had such a great time when we were in austin, at u. T. It was fantastic. Whats up . Caller hey, im a longtime shareholder of unh. Despite, due to medicare, is a small book of business, which is down over 6 . Do you think you have growth strategy, and in particular International Expansion or enough to offset obamacare . No, no, these stocks open down and down big. You get this medicare advantage, and theyre going to cut it by that much, the stocks will be for sale. Theres so many others, take the money out, buy cardinal health. You know, thats whats going to happen. Anyway, some might be tempted to fight the tape. I know my friend doug cass going back and forth with me, hes a fighter, but why fight it . When youre fighting guys like buffett and dell and anderson, kinder, malone and roberts, man, they would be rich. Just doesnt make sense to me. I say join them. Mad money will be right back. Coming up, losing luster . Central banks the world over have their Printing Presses working around the clock, but while gold has provided cover in the past, has this precious moment passed, or will it shine again . Cramer checks the technicals when he goes off the charts. And later, change the locks . Record low rates have reignited the Housing Market. Investors are cashing in. Could adt help keep your portfolio as secure as your home . Cramer is unlocking the answer, just ahead. Plus bright idea . Cheap Domestic Energy is causing industry to reinvest in america, and as manufacturing ramps up, so do the demands for power. Dont miss cramers exclusive with the ceo of American Electric power to find out if it could give you a charge. All coming up on mad money. Dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Tweet cramer, hashtag madtweets. Send jim an email to madmoney cnbc. Com, or give us a call at 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. What the heck is happening with this vicious decline in gold . And what are we supposed to do about it . Okay. Tonight were going off the charts to answer that question with the help of tim collins, a brilliant technician and my colleague at realmoney. Com, which you can find by going to thestreet. Com. You know ive been fond of gold as an asset class. I think its an essential part of a wellbalanced diversified portfolio. Lately the price of gold feels like its fallen off a cliff. Even though i think you should always own some gold, im not backing away from that, collins suggested this is a time when you should think about owning less of the shiny stuff. Whats wrong with the precious metal . Take a look at the daily chart of the gld. It does a terrific job of mirroring the price of gold. For collins, this is a picture of a textbook example of what happens when a powerfully bullish longterm trend suddenly loses its mojo. Up until this past october gold has been a raging bull market, for over five years. And whenever you get that kind of trend, pretty much, well, people buy every single dip. They do it because it works. For years it was a winning strategy, then the trend changes like we saw with gold in october. Those same dip buyers, sheesh, theyre getting slaughtered. Golds bullish up trend went away, but the dip buyers, they refused to give up. What youre seeing is the repetitive pattern of bull traps that keep getting set. Just since december alone collins says weve found four trap patterns, one after another after another after another. You get a major selloff with a big volume with an oversold reading and the two big momentum indicators at the bottom of the chart . The relative strength index, we call that the rsi. And the stochastics. At the shortterm low, the price will test a key support level. Thats what happens. Thats when the dip buyers sweep in. Think about it. Each time instead of bouncing, the gld just gets hit with still one more selloff. Look at this. It tries to bounce and cant. Tries to bounce, cant. Tries to bounce, but cant. Collins thinks gold has fallen so far so fast it could be due for a 3 to 4 bounce sometimes in the near future. That said, collins does not think the bounce is buyable. As a matter of fact its sellable. So lets look at the longerterm weekly chart. After rallying for year after year over the last 12 months or so, gold has been trading sideways, having formed, wow, heres a new one, a failed cup and handle pattern. Its called that, when a cup and handle comes together correctly its indeed one of the most bullish formations. Im not kidding. With gold the pattern failed. All it gives us is a broken piece of pottery. A crock, so to speak. Now, with the broken cup and handle collins think the gld is stuck trading sideways. And as long as gld is stuck in this 150 to 175 range, he will endorse it only for trade, not for investment. The reason . This chart says theres no advantage to going long. How it breaks down below 150, then collins think you need to hedge your gold position or short some. This is going to lower. On the other hand, if they can move up over 175, but would be a buy, its that simple for collins, as long as the gld is caught between 150 and 175, he thinks you need to respect the rage and realize the bulls nor the bears have a longterm advantage. Even when he do the math on the super longterm monthly chart, you can see the same pattern, this 150, 175 range keeps gold contained, for collins purposes, gold as might as well be in limbo. No edge. Given glds recent performance, collins thinks it makes more sense to be cautious rather than simply neutral. But as much as the gld might seem to be in a difficult spot right now, collins points out its the single best way to play gold if you still insist on playing gold, like i think you have to. Check this out compared to some of the miners. Barrick and agnico eagle, as well as the market vectors gold miners etf, gdx, and the absolutely hideous junior gold miners etf, the gdxj. If you want exposure to gold in this environment, this chart makes it Crystal Clear that the gld remains the only way to go. This is just terrible action, not only has it held up much better than the big miners, but it has also had much less volatility. Collins think the loss has done more damage to the mining stocks than the price of gold. In other words the miners have a harder time shaking off than the gld itself. He also nodes when it goes higher, they go up about the same amount. So the gld has much more upside. This is what weve been telling you for ages. Collins has given you the empirical proof you need in the form of the charts. He looked through the largest gold miners and couldnt find a single outperformer in the group. They are the worst stocks at a good time for stocks. The bottom line, ive been a gold bull for ages. That said, based on the charts as interpreted by tim collins, it might not be the right time to add to your position. You need it as insurance. It goes up when Everything Else is going down and gold is a currency. If youre overweight gold, you have to look at these charts, it wouldnt be crazy to trim back your position a bit, and move some of that money into something with more shortterm upside. Wow. Stay with cramer. Coming up, change the locks . Record low rates have reignited the Housing Market and investors are cashing in. Could adt help keep your portfolio secure as your home . Cramer is unlocking the answer, just ahead. 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Weve shared what weve learned, so we can all produce energy more safely. Bps also committed to america. We support nearly twohundredfifty thousand jobs and invest more here than anywhere else. Were working to fuel america for generations to come. Our commitment has never been stronger. More likes. More tweets. So, beginning today, my son brock and his whole team will be our new senior social media strategists. Any questions . Since we make radiator valves wouldnt it be better if we just let fedex help us to expand to new markets . Hmm gotta admit thats better than a few likes. I dont have the door code. Whos that . He won a contest online to be ceo for the day. How am i supposed to run a business here without an office . [ male announcer ] fast, reliable deliveries worldwide. Fedex. Do you ever come out the first weekend after valentines day, i have some dating advice for your portfolio just like when youre on the prowl for new stocks, look for the stocks of companies that have recently been broken up with. Why . Those are the stocks where youre most likely to get lucky, financially speaking. Companies in the process of splitting can be big winners but after the breakup, thats where the big money may be. As long as you back the right horses, which brings me to tyco, the classic business that came turning into what i would describe as a richard nixonlike pitiful helpless giants. Thats why nearly six years tyco spun off the health care business, as covidien, and spun off its Electronics Business as t. E. Connectivity, which has been nothing short of spectacular. Last september it broke itself up again, it merged with pentair, and for more important for our purposes, it spun off the north American Residential Security Division as the adt corporation. It started trading as an independent company at 36 a share. Since then the stock has roared higher. Okay. Its rallied more than 30 . Hallelujah back in january mike in new york asked us about adt, and if it would run out of steam since the spinoff. Adt is up less than a buck in the time mike asked us about it, so has adt run out of steam . Did the stock only have enough fuel go higher, or is there a longterm story here . Ill give you a hint. My charitable trust, which you can follow along at actionalertsplus. Com owns adt. Thats how much stephanie link, my comanager, and i like it. Before the spinoff, tyco managed it as what i would describe as a cash cow to finance its other businesses. Now adt can use its own cash. However, the most important factor here is adt is a play on the bountiful, amazing, stillon housing recovery. Thats one of the strongest themes in 2013 and beyond. Every time we get a piece of positive housing data, we know the homebuilders benefit, but i think the ancillary plays might be better opportunities, including adt. Its the largest residential and Small Business Security Company in north america. They provide everything from Home Monitoring Services to prevent burglary, to fire alarms and Carbon Monoxide detectors. This is a 13 billion business and adt is the number one player. Not only is adt the biggest name in safety and security, its also really the only pure play out there, making it a prime target for a takeover. I could see a honeywell or United Technologies ultimately making a bid for this company. That would be merely icing on the cake for me. I would prefer to see them buy other companies in its own line of work to consolidate a fragmented industry. We never speculate unless the underlying fundamentals are real good, and in adts case, the fundamentals are excellent. Glory be, i love these kinds of businesses, 90 of its revenues are recurring. 92 in the most recent quarter. Customers who want adt security ystems sign up for threeyear contracts, and once installed its hard to switch to another service. They have superior products and can offer at a cheaper price, because the scale is so much larger than the competition. Its expanding its offerings beyond its core businesses. Now theyre doing medical alerts, remote video monitoring, as well as lighting and other systems. And then theres pulse, it keeps coming back to pulse, an interactive remote home monitoring system. Pulse lets you monitor your home via the web or the smart phone, your ipad, giving you the ability to lock the doors, and even control the lighting. Monitor for prowlers from often thousands of miles away. This is a much more expensive than the basic Security Package and the company is trying to get customers to switch to pulse. Right now only 3 of customers use the pulse system, but in the most recent quarter, it represented 18 of what they sold. So this thing is taking off in a major way. You ought to change your website. You dont make it nearly as exciting as i make it. Theyre paying down debt and paying off shareholders. A whopping 1. 9 million left in the buyback authorization. And adt plans to spend all the money in the next three years. Even better, when the company last reported at the end of january, management announced an accelerated buyback program. You know, im calling that the equivalent of a called shot, with management basically coming out and telling you they think their stock is too darn cheap, and theyre going to take it anyway. Right here. They cant take how low their stock is. We expect more buybacks to be announced after theyre done with this current accelerated program. Theyre going to shrink the flow, but the latest quarter was excellent, even though the headline numbers didnt look like anything to write home about. Rising just 1. 8 , but below the surface, the earnings before interest and taxes, they were better than expected. That income rose 12. 9 , beating the analysts expectations by 4 , attrition, the percentage of customers they lost was flat. The company added 257,000 new customers. Meanwhile, adts margins expanded. They should only get bigger down the road. Heres the bottom line adt may have run up a lot since it was spun off from tyco in the fall, but i think this postbreakup story is just getting started. Adt is a terrific pure play Security Company that i think is a terrific way to play the housing rebound, so i have to believe like i do about housing in general that theres much more room to run. Lets go to paul in ohio. Paul . Caller hey, cramer glad to you to talk to you. Same. Caller i got some honeywell stock, about 220 shares. Its gone up like the highest ive seen it in a while. First, im 67 1 2 years old, so i want to get rid of some stock before i turn 70 1 2 and have to go minimum distribution. So im thinking of selling half or so this year, half next year. Is this a good time to sell . I think honeywell is going higher. Its had a good run. You have a particular situation that seems to me it lends itself to selling. But if you have another stock to sell, i would do that. I think theyre doing such a good job. Somebody ring the alarm. Adt is getting steaming hot. If youre looking for a play on the Housing Market, adt is a terrific Security Company that should continue to see a ton of upside. Dont move, lightning round is next. Jim cramer, youre one of my heroes. I look forward to your show every weeknight. Thank you for helping beginning investors like me. When you talk about the market, i believe youre spot on. I love it. Every night we watch you, and i have learned and earned. 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[ breathes deeply ] oh, what a relief it is [ male announcer ] try alka seltzer plus severe sinus day and night for complete relief from your worst sinus symptoms. It is time. It is time for the lightning round. You call in with a stock and i say sell sell sell. And every time i play this sound, and then the lightning round is over. Are you ready skeedaddy . Time for the lightning round. Starting with hope in new york. Hope . Caller hi, cramer. Whats up, hope. Caller how are you . Im good, thank you. Id like your thoughts on trulia. Its a housing play. They like realogy and zillow, which had a good quarter. I still prefer realogy. Pete in georgia . Caller thanks for taking my call, a panamanian bank, it advances money for groups. Blx banco latin america. I have to tell you, im so inclined to like latin america. I think thats an interesting bank, but you know where im going to send you . Bbva, i think thats better, plus they have a great texas business. Thats the bank to be in. Jim . Caller thanks for taking my call, how about imax . I dont know if i want to pay a 52week high, because i dont know what the schedule is for 3d. I congratulate the company, but lets wait for a pullback. Lets go to norm in vermont. Caller hey, jim, this is norm from montpelier, vermont. Whats going on . Caller well, its cold. I bought Green Mountain Coffee Roasters at 24 about six months ago. Wow. Caller whats your opinion Going Forward with Green Mountain . I want you to take half of it off the table tomorrow and let the rest run. When you catch a double in a controversial stock like that, and it is controversial, i want you to take half and play with house money. Jack in pennsylvania . Caller im from your home state of pennsylvania. How are you . Caller very well, thanks. Im well aware of your admonition that hogs get slaughtered. With that in mind, id like your take on nly. I think earnings will be under pressure there for a while because of the way that the yield curve is. I know sydney wrote about it, probably the greatest book in the world, but boy, is it boring. It reminds me that nly will struggle here. That said, i think you should hold on to it. Even if they cut the dividend a couple times, its still a good stock. Dan in florida. Caller dr. Cramer, how are you doing . I am good. Caller i have a problem here. I need some help. Im looking at cisco, csco, but im torn between that and hewlettpackard. Im going to make this easy. Hewlettpackard is trying to make a comeback. Cisco reported a great quarter. And sure enough im like this is a good call, and stephanie called me and said and you know what . People didnt like it. Upon further review, it was a good quarter, and i think people should step up to the plate and buy it. One more. Rick in california . Caller booboo booboo ya jim. Rick in lake isabella. Nice. Cell stocks. Caller amt in particular. This group has doled into its own personal bear market. The short sellers are piling in, because they think the chart is bad. I will say stick with american tower, and stick with cramer the lightning round is sponsored by t. D. Ameritrade. Coming up, bright idea . Cheap Domestic Energy is causing industry to reinvest in america. And as manufacturing ramps up, so do the demands for power. Dons miss cramers exclusive with the ceo of American Electric power to find out if it could give you a charge. Weve got a north American Energy renaissance going on right now, with the country now producing more oil and natural gas than we actually know what to do with, but what does that mean for the other fossil fuel, the one thats hated by environmentalists worldwide . Im talking coal. Coal is no longer king when it comes to Power Generation. Power generation from coal is now almost equal to what we get from natural gas. The swing is not because natural gas has become too cheap, consider aep, the utility with the largest electrical transmission in the nation, as well as being the biggest burner of coal. Ive always liked it. It has a sweet 4. 1 yield and a terrific new dividend policy makes me like it more. Its turning the Power Generation business into an unregulated utility. The company got 71 march from last year. It depends on the most hated fuel in the nation, though less than we feared. Aep reported last friday that between now and 2020 theyre going to have to spend 4 to 5 billion upgrading the coal plants to keep up with the new and existing regulations, though as of late the epa has learned that ratepayers cant bear shutting plants. Thats a big reason why its moving toward using less coal, so lets check in nick akins. Hes the ceo. Welcome back to mad money. Jim, great to be with you again. I got to tell you, this was the most upbeat ive ever heard you. You have increased your Dividend Rate that you want to give. Youve solidified a 4 to 6 growth rate. Why is everything breaking your way right now . Oh, i think we spent 2012 clearing the decks of a lot of risk in the corporation. The ohio situation we talked about earlier, certainly getting some of the power plant activity done, but were also seeing the economy start to stabilize somewhat. Were hopeful it would pick up during 13. Is that one of the reasons you took the extraordinary step of increasing the payout, now 60 to 70 . Already youve been a terrific payer of dividends. Oh, yeah, we raised that dividend range, because we felt like were going to be a regulated utility in the future, it produces that benefit Going Forward, so we really believe were working well in that regulated space. Now you mentioned that you have increased confidence about the businesses. In your area, one of the things i thought was most exciting, and you pointed out many times in a terrific, terrific transcript, that you are actual big beneficiaries of this all the shale, like when we were out in ohio and utica. You are a winner given the Big Industrial rerenaissance were having because of oil and gas . Absolutely, jim. Were seeing the eagleford shale in texas take off. Utica shale in ohio, as a matter of fact thats been our saving grace in this period where the industrials, particularly on the primary metal side, has been challenged. Our Service Territory is well positioned to take advantage of any renaissance. When we were at timkin, they were talking about the cheap power they could have and youre a significant reason that companies do want to come back to america, this reindustrialization is bringing Companies Back from countries where the energy is expensive. Absolutely. The shale gas activity has allowed us to move back and forth from a fuel perspective from coal versus gas depending on the pricing. Its been a distinct advantage for our customers. Now, you also, i think this is a point ive got to make you talk about how the epa has seemed to have understood at last your notion that the poor and middle class people are impacted more by increases than anyone else, and maybe they want to start factoring in the impoverishment of the poor people in your area before jacking up how much you have to spend to meet the new regulations. Yeah, jim, as you said, were spending between 4 to 5 billion on environmental retrofitting of our equipment. If they add Greenhouse Gas emissions on top of that during this time when the states are already dealing with the Cost Increases associated with those projects, thats a highly regressive increase in pricing. As you know, electric utility supply is highly regressive when you have price increases, and the poor and middle class will feel the effects. Its important for us to get that transition right and make sure we are advancing in a positive fashion on a path that doesnt impair the economy and doesnt inordinately increase prices for customers. At the same time we should point out that you have lowered your emissions for sulfur dioxide, for nitrous oxide. Its not like youve been doing nothing with coal. Youve been cutting the emissions pretty continually. Thats right weve reduced the emissions by over 80 to 90 over the decade. And weve had the cobenefit of reducing mercury by 85 . When you look at the latest rules that are in place, were going to achieve further reductions, so you want to make sure that process is done over time. Were going tore retiring generation in the 2014, 2015, 2016 time frame, and you retire that coal fired generation, youll have the immediate benefits of Greenhouse Gas reductions. Were already on target, the industry is, of meeting those Emission Reductions that were proposed in the Waxman Markey legislation, 17 by 2020. Were on path of that just with the shale gas opportunity in front of us. I think youre doing the impossible, by keep everything happy. Far less risk for any of those stocks in that index. Thank you mr. Akins, for being on the show. Thank you, jim. Guys, increased dividend payout coming, 52week high, less risk, doing a lot of things right for even the environmentals that have taken a notice. What can i say . This is why i like a stock like American Electric power for your portfolio. The ceo doing a great job. Stay with cramer. [ engine revving ] [ male announcer ] every car we build must make adrenaline pump and pulses quicken. To help you not just to stay alive. But feel alive. The new cclass is no exception. Its a mercedesbenz through and through. See your authorized mercedesbenz dealer for exceptional offers through mercedesbenz financial services. With the spark cash card from capital one. Boris earns unlimited rewards for his Small Business. Can i get the smith contract, please . Thank you. Thats three new paper shredders. [ boris ] put em on my spark card. [ garth ] boris Small Business earns 2 cash back on every purchase every day. Great businesses deserve unlimited rewards. Read back the chickens testimony, please. Buk, buk, bukka [ male announcer ] get the spark Business Card from capital one and earn unlimited rewards. Choose 2 cash back or double miles on every purchase every day. Told you id get half. Whats in your wallet . You always hear people say ill buy that on a pullback. I say it, too. The results have been mixed at best, but one thing is for certain, people are way too gunshy to use it. Google powered through today. So many wish they were in google. Its the score of a lifetime, but when this terrific searchanddestroy the competition juggernaut fell last year after reporting a miss and gave uncertain guidance, did you use that pullback to buy, or did that move scare the wits out of you . Did you use the further pullback another 50 points to put money to work in google . Or was that selloff another one you had to avoid even as you might have been waiting for another leg down . Youre waiting for a further pullback. I think the answer is the pullback was wasted on many. It seems like the great growth days were behind them. There were more moving parts where the cost of acquisition continued spending on uncertain products, all you had in retrospect was the pullback you needed. The one that might have been waiting for, at least making matters worse, second pullback created what could have been a nastylooking head and shoulders pattern. As the technical signal a mountainous top if they didnt hold. It turns out the stock did stop going down, the ship righted itself, the company developed a host of new products, and the continuation of the excellent android operating system. Thats just around the corner. Hey, whenever they want it to. Not only that, but now google has become the new apple, with a sense of excitement, extending the companys dominance to other areas. Whats amazing is while a hedge fund dukes it out, google is giving us growth via its huge pile of cash. Thats all that anyone really wants. Growth, as we know, it comes from stagnant growth at microsoft and intel, despite their attractive dividends like the one David Einhorn is merging, though he wants it in a preferred form, just doesnt intrigue us. Heres the real kicker. When google broke down, we just saw a shrinking of the price to earnings multiple which was lower than the average stock in the s p 500. Youve got the highest quality growth stock around for one of the lowest multiples in book, where Companies Like General Mills or johnson johnson, dramatically subpar growth, but traded at much higher multiples as google did at the bottom, or General Mills even at the top. The lesson when you a pullback without a concomitant slashing of earnings, perhaps you should take advantage of it. Dont fear what youve been waiting for as the run to 800 shows. Thats how the biggest money is ultimately made. Stick with cramer

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