Transcripts For CNBC Mad Money 20131203

Point the selling was far worse and it looked like we could be in the midst of a major rollover. Still today like yesterday, the buyers and sellers did real soulsearching, and what exactly are they pondering . Basically, theyre trying to figure out if good news about the economy is bad news for stocks or is the opposite the case, as the economy improves should we like stocks more . Its a firstclass quandary that we have to dive into headlong on mad money if were going to figure out the markets move. Its distracted and a parlor game and we find you the best stocks and the best opportunities. The only focus on the feds next move the last three years, you missed some of the single best moments to invest in our lifetimes. I regard that as terrible. I regard it as shameful because this fedcentric world presumes that the market is one big stock that is sent higher or lower by ben bernanke and janet yellin and its the market as a marionette. My favorite credo is the opposite. The stocks represent companies and the companies march to many different drum e not just the fed drummer. Some companies do better than higher Interest Rates and like the minerals and oils and most important, Many Companies do better because their managements are smart or incentive to create value. If you spend all of your time waiting for the fed to tell you what to do you missed so many positive restructures, mergers, spinouts, breakups. Hallelujah you might have missed the revolutions from tablets to smartphones or the oil and gas markets domestically because of new technologies that allow them to get oil and gas out of stone. These were all secular changes that occurred during the last three years unimpeded by any form of washington intervention, washington, congress or the fed. Most of the time people had to pay up toy bah these winning stocks, but every once in a while, what you get in on better prices and unfortunately, the market sales, similar to what you might have seen on black friday are much more like the sales we used to get at the old filenes basement in boston, filenes as we call it. These days many of you may not know much about filenes, but when i was a kid you could go to the basement and they would come in from the upstairs and get marked down from the full prices and those were the days when sto stores did carry things at full price. The first price cut was almost never the last. If merchandise didnt sell on day one the price was cut again on day two. Thats right. You got another cut and then again on day three until it finally found buy, buy, buy buys are. A cashmere sweater at 80, down 10 . And you say thats still pricey and ill wait until tomorrow, and it would be marked down another 10 the other day. Then you have to make a choice. Do you nab it or wait for a lower price on wednesday. Or would someone buy it after someone would buy it on wednesday . I cant tell you how many times we the merchandise would be gone and thats the the missed market. So is this monday and youre paying too much for that sweater called the stock market . Is it tuesday and the price might be right . Should we wait until tomorrow for a better deal or will the opportunity be gone by then in weve been down for three days in a row and certainly an oddity in this market. Some people will pay anything for that sweater and the stock. They dont care. Other people think the sweater has moth holes in it and no price worth paying and thats the situation zee to worry about and thats where we are right now, in between. Some people think the stock prices are going higher and they think the fed is in control of the market and when we see weak data we know the fed will keep the sweater from being marked down far more and we have to pounce, and they dont care all that much about the fed. They think stocks have moved so much that theyre forecasting better earnings and unless the economy in this country and around globe starts growing then these estimates wont be met and the stocks will be taken out and shot, so these two cohorts are at definitive, cross purposes. You think id know not to press them after nine years. Lets see how this plays out on a given day because today is extraordinary as a demonstration. We have car sales this morning. They were amazing and the best in six years. Bullish, right . Sure, its its bullish if you think that the Car Companies think its a lot of money and the fed only controls the price of the sweater thats the stock market. That camp is now scared to death because of these strong sales. Why should the fed keep helping to get the economy moving when were selling cars, bigticket cars so obviously and theyre fretting the good news for the important sector of the economy and its actually bad news for the market as a whole. These people arent buying that sweater here. They want to wait and they figure they can pick it up in a couple of days much lower and cheaper. What happens if we get a weak employment number when the Labor Department releases the nonfarm payroll on friday. They will step up and take the sweaters, but it was enough to come off the side lines and pay. Graver people. Its even tougher than that, they see that walmart and target are doing poorly, thats where america shops and maybe there are others who say, wait a second. These dont contain cybershoping. Now heres where mad money e tos comes and this is most important. Weirnt looking at the market as a whole here. That is a waste of time by people who are not rigorous or dont want to spend the time to do homework. Were looking for individual stocks with individual stories that are improving and stocks that cant wait for wednesdays Price Reductions because the diskusht might be gone by then. Lets take the obvious opportunity. Ive been telling you apple may have a huge deal with china mobile and they just bought a company that might allow them to monitor whats buzzing in social media and it could be a prelude to a much larger initiative. The Holiday Season could be huge. Sure, apple was indeed up today, but there were moments, moments where it was barely rallying and no doubt in my mind that if the market hadnt been get as beatdown from the pull from the s p 500 apple would have been up 25 pins except at the 15. The darn thing is still a bargain because it will be caught in the selloff and therefore be given at a discount to you even as it seemings like a hugely expensive stock. Its darn cheap, people. The market sale gave you the opportunity to buy apple at a better price than you deserve. There are dozens of appletype situations and its a good numbers, right . They all went lower, the positive auto sales news is bad for the and we have highquality stocks like johnson johnson, one of my fifes. Smirk, my favorite company, peanut butter. Both would have been substantially higher and i wanted to buy the oils and stick around, ill tell you which ones are the best values and these are the kind of sweaters worth pouncing on before someone else nabs them up. Right now the market is truly confused and confusion is a negative for stocks. I suspect there will be more mark dunns. Nevertheless, the sweaters will be moved eventually. Hey, maybe youll start buying one tomorrow. John in california. Hi, jim. How are you today . I dont know. I got bit by a spider. Its killing me. Whats up . I tried to call you four and a half months ago on the Airline Industry and i wanted to thank you for the us air pub, when i told you how high do you think they could go . Now that this deal is done, this stock has now sold off more than 10 from its high. A lot of this is because oil started bouncing again, but when weve seen these big deals occur these stocks have a second year better than the first year. I want you to buy u. S. Airways and it wont be a name for american in a very short period of time. Hey, why dont we go to fozzy in colorado. Fozzy . Hey, jimmy, big booyah from denver, colorado. Hey, i was looking at some Restaurant Companies today, and i think yums going do fine coming out of that china chicken thing, but then i looked at chipotle. It looks like theyre giving away shares to insiders at 16 a year, diluting the shares. Right. Im not sure about the dilution. Were looking at the earnings. Chipotles earnings are good. I think its been pricey, but its always been pricey and yum we had news that i was not that enthusiastic and i still like yum, but lets go back to the core issue here. I think the restaurant stocks are undervalued and i think there are buys and im looking at the equities. Those are the real cheap ones. Lets go to keith in ooh, alabama. Keith. Hey, jim, how are you doing . It i guess it dependses whether i went to auburn or alabama. My mouth came up to my jaw here today, and quick question for you. A little bit about my background. I work offshore in the oil industry on the gulf, and i dont always have the ability to manage my stocks. Okay and there are times when there might be a week without cell phone service, phone service or internet. Okay. I had a tried and true one that i sold. I bought it in the late 90s and sold in mid2ousomid2 ou000s. Im looking for something to park. First of all, your job, look around. Bp is actually great. Exxons great. Youre in the cusp of one of the great oil and gas revolutions. You know more. I will tell you this, i read through dunkin good situation. I read through the krispy kreme Conference Call and i read it again and i felt i was up against the seahawks. I couldnt understand it. It is impenetrable. I dont like impenetrable situations although i always invite ceos from impenetrable situations to come on the show. What happens when you confuse the market, until this resolution i suspect there could be more markdowns. Its shopping season after all so consumers should do some shopping. Maybe you should buy some things that are on sale. Mad money will be right back. Coming back, tech turn around. Did spite the debt for the pc, hewlettpackard is down a staggering 90 this year. Will they continue to innovate and surge even higher . Cramer checks the technicals when he goes off the charts. And later. Clash on the catwalk, luxury retailer finch is the next player on wall street, but does he have enough flair to take on shares and what could dress your portfolio for success . Plus, ready to refuel, natural gas changed the outlook for Energy Independence in north america and chances are its using technology. After a steep drop on earnings, is it time to fill up at a discount or is it full of hot air . All coming up on mad money. Dont miss a second of mad money, follow atjimcramer on twitter. Have a question . Tweet cramer, , mad tweets and send an email to cnbc. Com or give us a call at 1800743cnbc mp miss something . Head to madmoney. Cnbc. Com. Its estimated that 30 of the traffic in a city is caused by people looking for parking. Thats remarkable that so much energy is, is wasted. Streetline has looked at the problem of parking, which has not been looked at for the last 30, 40 years, we wanted to rethink that whole industry, so we go and put out these sensors in each parking spot and then theres a mesh network that takes this information sends it over the internet so you can go find exactly where those open parking spots are. The collaboration with citi was important for providing us the necessary financing; allow this small startup to go provide a service to municipalities. Citi has been an incredible source of advice, how to engage with municipalities, how to structure deals, and as we think about internationally, citi is there every step of the way. So the end result is you reduce congestion, you reduce pollution and you provide a service to merchants, and that certainly is huge. In a moment where the Broader Market seems to be stalled or at least worst or temporarily, dont forget were less than a month away from the end of the year and that means the stocks are winners and they cant keep charging higher when the selling is over. Im talking about the outperformers of 2013. Theyre reporting good numbers in the most recent Earnings Period because they hedge Mutual Fund Managers who are desperate to improve the performance will continue to buy until the new year begin, but just because the stocks been nointed that doesnt mean the stock stops on november 1st. Were talking investing and not trading and that can make them fabulous performers in 2014, too. Here i go. This is one i hated for a long time and i do love this one. I love this. Hewlettpackard. Take hewlettpackard, an annoying stock if there ever was one, its up 93 for the year. And it was off the charts by the topnotch technician who the the managing director of barketa Capital Management and take a closer look at just what is propelling hewlettpackard higher. He does individual stocks and he does them well. Last week hpq did something very unique for a bigcap tech company, it reported an excellent quarter and the stock jumped to the highest price in four months. The wild ride is far from over. Check out hewlettpackards daily charger. When the stock broke out after the last Earnings Report that was a very big deal because this put the finishing touch on what is known as a cup and handle formation. This is a formation and we have seen this over and over again. It is almost foolproof. It is a pattern with a ushaped bottom followed by a handle where it trades slightly lower in a tight range. The thing about a cup and handle is it is one of the most reliable patterns. According to ponzi, you see this when the stock is xer sizing its demon, so to speak and hewlettpackard certainly needed a good exorcism. The cup part of the pattern which was formed over three months from august through november indicates that the stock is working its way through selling pressure and the price is finding equilibrium and then you get the handle where the last of the weakhanded holders get shaken out and leave you with the stronger shareholder base. Once the stock breaks out of the handle part of the formation like hewlettpackard did last week and then it is considered complete and thats a big, flashing green light and they take the cup and handle patterns. To a chart, theyve worked and fabulous signal that theres more upside coming and are you paying attention, and he looked at the chart and saw a tea cup. Take a look at the moving average convergence or mack d at the bottom of the chart and weve seen this work, too. Helps technicians and the trajectory and right about the time the hewlettpackard have broken up with the cup and handle pattern and they have a powerful buy signal is whats called yes, a bullish crossover where the black line crosses above the blue line. Weve seen this many times going off the charts and its been a pretty reliable sign that a stock is headed higher. Thats exactly what ponzi sees here and the bears and hewlettpackard have been beaten back and the bulls still arent totally onboard yet and thats skeptical and they can cause the stock to soar higher. When you take a step back at hewlett, you want to look at the weekly chart. This is really incredible. You will see a cup and handle formation that he was talking about on the daly and it isnt just any old cup and handle and it isnt what you would call a frakt ilfractil cup and handle, it looks the same whether you zoom in or zoom out. On the daily chart you can see the cup and handle. It turns out that a smaller cup and handle from the the daily is actually the handle in a much larger cup and handle pattern. Look at that, right . And there look at that little guy right there. In other words, its a cup and handle within a cup and handle. Its like one of those russian Nesting Dolls and this pattern goes all of the way back to february of next year so we have a real backbone to this move. Its just broken out of two, not one, but two super bullish formations and the weekly and daily charts and just like the convergence indicator is flashing a buy signal on the weekly, the crossover. How high can hpq go. Its a big question, right . They give ponzi a pretty clear forecast. You mentioned the depth of the cup and that tells me how the stock can rally from where we are now. Ponzi can see it rallying from 33 just on this part, but based on the much bigger part of the weekly, ponzi comes up with a target of 42. Im not tall enough for it although i was back about 15 years ago, and thats 53 higher than where the stock is right now. Thats right, 53 . And you know what . I dont have any trouble with that. I dont have any trouble believing in it at all because you know why . I too am bullish about hewlettpackard because when i look at hewlettpackards fundamentals i see a classic turnaround story playing out here and one that can send this stock substantially higher and when you consider better than expected quarter, it is clear that Ceo Meg Whitman has a comeback brewing here. Shes streamlining operationses and aggressively cut costs. Oh, man, has she ever oh, and on the Conference Call, the chief Financial Officer and shes real good said there could be more incremental cost savings and better to be a shareholder than a worker. Most importantly whitman knows that management needs to figure out what a companys good at and put the chips behind it. Shes bet on pcs, printers and Information Technology not for you, but for the enterprise. A much stronger part of the business than personal computers for individuals which are shrinking rapedly. The expertise at the corporate level and coming to the huge amount of share, much more than i could have possibly taken in a 90day period and it wasnt talked enough in the research. Beyond that, theyre not executing well, and sometimes dell, which is about to take on a huge amount of debt to take themselves prief and the something that will make them a much weaker competitor, and i dont think they will be able to give on price and now they can focus returning cash to trade holders. It is bountiful to dividends and larger buybacks and they cleaned up a lot of the balance sheet. Admittedly, hewlettpackard may have jumped the gun having repurchased 30 of the share count over the last seven years, stupid, but the shareholders are reaping the rewards from the float. Last, but not least, the stock is incredibly cheap even after this move. Seven times last years earnings estimates and im calling on one of the cheapest stocks from the s p 500. The if theals by yours truly are going in fact, this one actually may be a screaming b. Stay with cramer. Coming up, luxury retailer benz is the new fashion player on wall street, but does it have enough flare to take a share from michael kors. Cramers looking at both brands to see what could dress your portfolio for success. I love having a free checked bag with my united mileageplus explorer card. Ive saved 75 in checked bag fees. [ delavane ] priority boarding is really important to us. You can just get on the plane and relax. [ julian ] having a card that doesnt charge you foreign transaction fees saves me a ton of money. [ delavane ] we can go to any country and spend money the way we would in the u. S. When i spend money on this card, i can see brazil in my future. [ anthony ] i use the explorer card to earn miles in order to go visit my family, which means a lot to me. What a rough day for the averages, lets not forget that the highend Luxury Consumer is doing fine. The rich have plenty of money and they have no problem spending it as we head into the holidays thats why we can use the best decline to pick out the favorite gatsby name, mad money names that cater to the highend consumer. The richer differ from you and me. He should have added they spend like crazy even in the toughest times. The best way to play the gatsby consumer has been michael kors, the maker of luxury accessories and apparel has been one of the hottest growth stories out there. It came public at 20. The stock hasnt looked back ever since. The 234 in the after market to 18 and change where its trading right now. See that . Thats kors. This is official. This is not a mets outfit, by the way. Some people criticized me for that. So when i hear people about talking about Vince Holdings and the freshfaced ipo that came public just a few weeks ago and that is this, its kind of a michael kors look alike, you Better Believe that grabs my attention. Vince had a fabulous initial Public Offering when the stock saw 20 bucks and spiking 43. 3 on the first day of trading, but it hasnt done much since then which i think begs the question is vince really the next michael kors or should we refuse to be impressed by its redhot initial Public Offering especially since the ipo market has been on fire and averaged the 2013 ipo giving you a 29. 9 return according to renaissance capital. The only way to resolve this is with a good, oldfashioned mad money faceoff, death march on the catwalk whos clear than i am . Kors versus vince. When you compare them theres not much of a contest. Theres no way Vince Holdings is the next michael kors or the son of kors, it might be im not kidding, michael kors can estranged second cousin once removed. Id buy Vince Holdings any day of the week, and with that said, vince is a serious wall street catalyst coming down once we reach the new year so why is kors the better investment than vince . This is a vince, too, by the way. Okay low pressure lets get down to business here. Kors is a superior company. Remember, we do these oneonone stock duels because theyre a terrific way of doing comparative stock picking and you know how important i think that is. First, lets consider what these companies actually do. Michael kors is very big into accessories like watches, jewelry and handbags and they have ready to Wear Clothing and footwear and fragrances and i think this cost a pretty penny, right . You get this from haines for three bucks. It is all about knits and cashmere sweaters and denim, outerwear and footwear and kors is recognizable with 75 Brand Awareness versus just 75 Brand Awareness for vince. That means vince needs to invest heavily in marketing to get the word out ask that aint cheap. Kors operates in 350 Retail Stores around the world and they have 154 stores run by licenses. The company gets half of its sales from these stores, roughly 45 from wholesale and they mainly come from the licensing business. Vens, on the other hand, has 27 stand alone Retail Locations and you get 80 of neiman and sacks. Selling your own purchase through the consumer, retail price is so much higher. Florida, is where neimans, blookys and they dont have much for the distributors. Michael kors is growing like a weed. Management thinks they can double their base with 352 stores to 700 locations over the next few years. I believe that is a realistic projection as it is growing by 20 per year. Thats incredible, plus kors uses the shop within a shop model to sell their purchase at the Department Stores like this stuff. A shop within the shop will boost the productivity of a brand by 25 in the given store, but for kors that are seeing a 75 boost. Thats amazing. As for vince, well, lets just say they can increase the store count to 40 locations by 2016 and thats off of the 21 fullprice stores and at the moment we dont even know for sure if the brand has that attraction to explore that expansion. What else . Vince is pretty much all domestic at this point. Michael kors is starting to grow by leaps and bowns. They saw a 500 program a month ago, theyll be with a billion smackers and i thought you worked in email and it makes 11 of cors revenue. Last quarter michael kors posted a 71 increase in sales and their comp sales, grew by a whopping 16 at tiny retail segment and sales increased by 12 and this is the wholesale business posting 3 growth. Michael kors wholesale was up 30 . Wow . How about the grows margin . What each Company Makes after the cost of sales, and the margin is up 150 basis points in the last quarter and it is a 45 growth margin and someone might say the future looks better than the past. Michael kors is clearly the best company. Vince sells for 37 times next years earnings estimates with a 40 longterm growth rate. Kors sells for 27 times next years earnings with the 25 growth rate. So vince trades slightly less than one times. Thats why people like the vince so much. It trades at a Small Business to vince, and it deserves a big premiums. The growth hounds, this, vince. Unlike, Vince Holdings has overship apple and it has the astounding 70 of the company. Do you lock up and all of that said i do think vince is trade sxabl let me tell you why. The postipo quiet period ends and that means all of the bankers who wanted to rewrite the deal want coverage on the stock. You get positive research and i wouldnt be surprised at all if vince doesnt rally with that. Why dont they like it because people love growth. Heres the bottom line. Vince holdings may be tradable, but michael kors im calling it by far the better investment. Tonights selloff gave you a good quarter. I think kors could be the most appointed stocks for 2013 right until years end. Why dont we speak to pat in california. Pat . Hi, jim. Good to talk to you. Same here. Same here, pat. Youre welcome. I purchased j. C. Penney at 79 and sold it at 12 and took a long, big loss. Do you think i made the right move . Also, should i hold on to aro . I dont want you to own arrow because that is way too hard. Jc penney reported a good november month and you sold it at a lower price, a highier price than it is now. Jc penney is not one i want to be in. Macys is a big kors provider, too. I think macys is the winner that segment so why dont we buy the winner and not the also ran. Tim in california. Tim . Hey, cramer, ive been doing some bottom fishing on coach. Do you think its reached the bottom or no . My partner stephanie link from my Charitable Trust and shes in the Halftime Report saying coach is right. She says she likes the way the stores look. She thinks it can could have a real bounce here, and i would defer to her because ive had my head beaten in by coach, and stephanie does like it and ive heard her speak valiantly on scott wapners show. I think she sounds right. Even on some days it does pay to believe that the ach are different and wearing them together like . No. I dont think so. Stay with cramer. Tomorrow, kick off the trading day with squawk on the street, live from post 9 at the nyse. You know how hard it is to be cool at my age . Very. A general idea. Yes. Both of us are understanding. Lack of coolness. It all starts at 9 00 a. M. Eastern. 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Thats why im with scottrade. Announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. It is time it is time for the lightning round on cramers mad money. [ indiscernible ] play until we hear this sound and then the lightning round is over, are you red skeedaddy . Time for the lightning round on cramers mad money. Ill start with jason in arizona. Jason . Jim, ive read all your books and consider you a mentor. My stock gigamon. Thank you for being a subscriber and that comes with my Charitable Trust the and im not a buyer of mo and the reason is because i dont really like it and you know that because youre a subscriber is xilinx because we believe in it. Lets go to patsy in michigan, patsy booyah, jim cramer from michigan i just want to tell you, weve got a big game sunday. My lion against your eagles. Its tight. Im calling about lumber liquidators. I bought some shares back about a month ago, and now theyve been hit with a class action suit with wall and proctor, and im thinking of cutting my losses and selling. I dont know, look, ive got to tell you, this is one of those highgrowth stocks that will catch a bid as soon as we get Interest Rates that go appreciably lower, so lets not sell it now. Lumber liquidator, i know it does have operational problems and it is growing like a weed, but i dont want you to jettison it right now. Too low. Lets go to ross in florida. Ross . Hows it going . Pretty good, ross, how are you . I have a question about b p. Look. Its interesting. C p. Look. Its interestinm p. Look. Its interesting. Noel people do not buy second tier. Im not kidding, i would buy deere. You want to play that end of thing, lets buy deere and go noles. I covered football in 1977 and 78. Pam in new jersey. Pam hi, pam, its pam from new jersey, i just want to give you a great big booyah shoutout for everything that you do. My grandparents lived in mergeantville, whats going on . I want to say to the late, great, mr. Steve jobs you are my second big aboutest hero, jim. Much appreciated but i have to tell you to be in the sentence with that guy is a little i appreciate it. Thats a very nice thing. Listen, you and i are apple families together. Yes. Heres my question, regarding epzn. They had a pullback, its partnered with celgene. What are your thoughts. What stock did you mention . You mentioned apple. I would buy apple, what was the other stock you mentioned . Celgene, i would buy both of those before i would buy epizyme and it is the number one Football Team in the country. And that, ladies and gentlemen, is the conclusion of the lightning round the lightning round is sponsored by t. D. Ameritrade. Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. [ male announcer ] 1. 21 gigawatts. Today, thats easy. Ge is revolutionizing power. Supercharging turbines with advanced hardware and innovative software. Using data predictively to help power entire cities. So the turbines of today. Will power us all. Into the future. People find out state farm does car loans as well as they do insurance, our bank is through. Good point. Grab an edge. Look theres two guys on the state farm borrow Better Banking sign. Nope for real theres two dudes on the state farm borrow Better Banking sign. [ reporter ] breaking news from the state farm borrow Better Banking sign. Were seeing two men that have climbed the borrow Better Banking sign gentlemen please get down from the state farm borrow Better Banking sign. Phil get the hose. Okay hes getting the hose. Alright, lets go. [ male announcer ] talk to a state farm agent about car loans that can save you hundreds. Thats borrowing better. Yep. Got all the cozies. [ grandma ] with new fedex one rate, i could fill a box and ship it for one flat rate. So i knit until it was full. Youd be crazy not to. Is that nana . [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. Whats happening with chart industries . Heres a company weve liked for a long time. Major maker of croix on genic equipment and as well as lng stores and engine tanks, plus it is an Industrial Gas division where they make liquid oxygen therapy systems. This stock has been on an epic roll, rallying like crazy because it would make match rag gas vehicles in a major way. Weve been behind it all of the way and the stock has had a tough run of late and after a disappointing quarter and it cut its forecast and the stocks fallen 20 and 17 in the last five weeks and management seemed to be a tad less optimistic about china and thats a market thats pivotal for Earnings Growth or should we view this pullback as a buying opportunity in the stock thats given us a 164 gain since we first got behind it in february 2011 so it gets the benefit of the doubt as far as im concerned. The chairman and president and ceo of chart industries. Mr. Thomas, welcome back to mad money. Good to see you, sir. Hi. Jim. Nice to see you. Should we be more concerned . China is a terrific growth market, but you have an increase in prices for natural gas that slowed things down and it sounded to me like youre worried about competition and youre making acquisitions in china. Im always worried about their accounting over there is the bloom off the china rosier . Not at all, jim. The longterm story hasnt changed a bit and were still convinced as is everyone else there in the market whether its the natural Oil Companies and the big engine producers and the big truck vehicle assembler, but it is a pause. It is a pause. No doubt. Theres been a significant increase in prices without an offsetting increase for diesel prices which is expected. Okay. Coming up in 2014 because theyre rolling out tire Emission Standard which is require more aftertreatment on the truck increases the price of the truck for diesels and it also increases the price of diesel fuel because it will be producing lowsulfur diesel and theyre not able to put it in the market so its rolling back that increase of diesel. Is that for 2014 . Second half of 2014 . Thats what the current thinking is. Okay, good. And were seeing some signs of it picking up. Of course, was there a pause in terms of the rapid growth rate. We were seeing incredible growth coming through the first and second quarters and then toward the latter end of the Third Quarter there was a decided pullback with this natural gas price increase. Also, you mentioned governmental intervention in pet ro china, you say pointblank, was there turmoil there because of possible government corruption charges. There was for the very senior levels whether it was corruption or political, being on the wrong side. Okay. That seems to have flowed through. None of the people that we deal, the levels that are in our industry have been affected. Theres new Senior Management and control or in place. Okay. We expect it to be sorted out. All right. You also talked about cost problems both in engineering and constructi construction, but also in the labor and louisiana. Well, we built the large boxes for the global scale lng liquefiers on the coast in louisiana and thats the only place where you can put them directly on it a ship. Okay. To ship them around the world and we have seen because of the tremendous growth in offshore constructi construction, petrochemical construction down on the gulf coast, we just have gone up dramatically. Right. Well, everywhere on the gulf coast whether its for welders or for engineers. Some of the projects that we quoted a few years ago and were executing on now and through 2004 were seeing lower margins as a result of that. Its still good work. Very good, solid works, but we werent able to ramp up our productivity as fast as the wages were going up in that market. All right. Lets look at it it from the point of view of 2014, 2015, 2016 because thats the way viewers think of things because theyre investors and theyre not trading. The longterm view from switching from diesel to natural gas, liquefied natural gas, our country and china, still very positive. Extremely positive. In fact, the Third Quarter was our strongest quarter ever for north american lng. Were starting to build liquefiers which is the key and thats the constraint and were Getting Better availability of the 12liter engine with larger engines to come so we had a Strong Quarter for orders for fuel stations, lng fuel stations and also for vehicle tanks and it looks strong going forward. The biggest challenge we have with the market thats growing like this and it means a number of pieces of infrastructure is calling the timing. Right. We respond to our customers. Weve added significant capacity, but with our customers or their customers, there are pauses where the infrastructure buildout, the different pieces of the pie get out of sorts and you have to have a correction. Ink its a reset and the people should relook at chart and you had a good piece by Morgan Stanley saying the same thing we just talked about. Sam thomas, president and industry of chart industries. The story, the longterm story is intact for investors. Traders, okay. You saw them playing with fire. Stay with cramer. I love having a free checked bag with my united mileageplus explorer card. Ive saved 75 in checked bag fees. [ delavane ] priority boarding is really important to us. You can just get on the plane and relax. [ julian ] having a card that doesnt charge you foreign transaction fees saves me a ton of money. [ delavane ] we can go to any country and spend money the way we would in the u. S. When i spend money on this card, i can see brazil in my future. [ anthony ] i use the explorer card to earn miles in order to go visit my family, which means a lot to me. Everyone likes the oils when theyre hot and ready buy, buy, buy, buy, buy no been like them when theyre cold and sliding. Sell, sell, sell, sell, sell everyone likes them when the oil futures go up and up and no one likes it when the futures are in a downward trend like today and no ones paying attention at all to the pathetic price of natural gas except for the 4 after being in the 3 region for ages. Maybe its not that pathetic after all. Now is the time to start buying, thats right, now. First i would like to return to the best of the best because im the best of breed guy and in this case we have two that are ripe for the pickings, noble energy and Eog Resources and thats the slal outside of denver and huge kicker in the mediterranean. I dont know if youre following whats going on in russia and the uk right now, but president putin is making a power grab that could position him in the threat for western europe. Im not making this stuff up, although hes trying to prevent. Anyway, when you hear you need to think about energy, because the west gets the gas from the sxeeft that makes russia an economic opponent that could choke western europe off, its big enough to feed all of europe and its the Energy Alternative to putin and its only gone up in value even as the stock is going down precipitously from 79 to 69 and Eog Resources and dominant player plummeted from 188 to 165. Do you want to buy this thing when its fly or do you want to get a decent one for the stock. Do you buy the National Oil Well and its splitting it into two companies and reads the technological reader and its the only real guy and that ones been strained and pained, but the sec issues are now in the rearview mirror, i think. Meanwhile, you keep getting paid the 8. 9 yield and that should work to the benefit of shareholders. Okay, so maybe these are all too out there for you, how about buying the world wills largest oil company, the one Warren Buffett likes and the ones that refuse to come down even today and im talking about exxon mobil and it had the good Production Growth in ages and things willy only get better in the future and Warren Buffett, exxon and its pretty controversial and bp. The oil spill could ultimately bankrupt the company because there seems to be no sensation for the payout, how do i put this to be diplomatic, peripheral victims and it won an important appeal that has been pretty much, i would say put an end to the outsized payments and now will be viewed once again as an oil company and the cheapest of the majors. With oil, you have to buy the stocks when theyre cold. These are cold as ice, just the right time to start your picking. Stick with cramer. Mad about mad money . Immerse yourself into cramers world while you watch the she with zeebox, on the phone, tablet or on the web, get sneak peek, go behind the scenes or join the conversation. Download the free app today for the ultimate cramerican at venture. Venture. D venture. Adventure. Over the next 40 years the United States population is going to grow by over 90 million people, and almost all that growth is going to be in cities. 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This time the pep rally had no pep. A new report says about a third of all the obama care enrollees may not be enrolled. Thats the reported failure rate on the socalled back end information that is sent to insurance companies. In other words, thousands of the nations fast food