Gaining. 34 , though the nasdaq declined. 04 because of a disappointment from intel and earnings jitters from google and apple. Yet, despite that relatively rosy action, the earnings season was a bust or the earnings are okay but the sales are weak. People over the place are chastising me for regarding the numbers weve seen so far in the last couple of weeks as positive. Like im whistling past the graveyard. See no evil earnings. First, earnings season has barely begun. Its about eight minutes have gone by in the first quarter. These nay sayers are acting as if theyre watching some Football Game where the bears patriots are three touchdowns ahead of the bullish ravens at the twominute warning. Thats way too early to judge. I bridled the notions of these numbers weve seen are somehow weak. I care tremendously about the bottom line, certainly more than most. Since when do sales, the actual top line revenues have to be fantastic right now . When the quarterly reports depict how business is doing right into the heart of the ridiculous selfinflicted fiscal cliff paralysis. The guidance has been pretty good, darn good for most of the companies im listening to. And i dont know how much of that is hope or solid orders in the books, must have o that later. But i cant buy the thesis that the numbers have been disappointing so far. I just cant. I just think that frankly is just way too negative versus what i hear. Let me give you my game plan. Theyre really positive and then im reading what i heard is negative. Anyway, tuesday, we get results from freeport mcmoran. Oh, boy, this is going to be nasty. A company that has explaining to do. A copper play that should be roaring, but its doing nothing, at least next to nothing because of the colossal overpay of the Sister Company mcmoran exploration. Lets hope they can tell us why theyre not destroying value with this kind of transaction. Good luck with that, guys. We also hear from johnson johnson, lots of action jimcramer on twitter about this one, time to hop off the j j bus because of the new. Are you kidding . Possibly bringing up value with a breakup, dont you dare sell. In fact, lets hope it comes down, id be a buyer, especially before the earnings. Google reports after the close. Well, this quarter crushed it. By the way, thats wall street gibberish for blow away the numbers. I think googles got enough levers to report a decent quarter. I want to hear about android monetization, search, and how the chrome pc is doing. Because i hear its doing pretty darn well. Number one pc seller on amazon of late. On wednesday, frankly, i dont care about any other stock other than apple. Comes after the close. But i also know when youre that apple focused you tend to miss Something Big away from it. Suffice to say that this is, perhaps, yes, the single most important quarter apple ever had. Comes on the heels of two soso quarters and massive worries about weak iphone sales. All i can tell you is you just have to wait and see. Apples as inscrutable as ever. And i can only advise you about what my Charitable Trust is doing with its position, which is nothing. Too cheap to sell, maybe not compelling enough to buy more. Not at least until we know more, which we sure will after the close. Yes, i am not selling, i am not telling you to buy or sell. Im just saying that my trust still owns it and i still think the companys got growth left despite the cascade of downgrades that have dogged the stock for the last two weeks. We also hear from netflix on wednesday. And this stock, well, lets say its been the opposite of apple. This ones been on a roll. But has the company been on a roll too . Or is it just the stock . Is it just paying a lot for content and need to Start Talking about big growth again . Frankly i wish netflix would take a step back and say, look, guys, we are now part of the we have become the de facto way to watch tv in america and we will be the de facto way to watch tv overseas and what weve learned is the major content providers know they cant live without us and not vice versa. Thats a simple pitch if you want your stock to go higher. I do love it when Reed Hastings talks about binge viewing. Most recently putting paid to the last season of breaking bad in 18 straight hours. Take in a dominos pizza, no cheese, and have you seen that rocket ship of a stock at 46 . Wow. Thursday, 3m, in the morning. And lots of people are just theyre abandoning this ship because they think the valuation is stretched three times earnings again. Ridiculous, this company has been held back but continues to innovate and deliver. I think its about to be revalued as the quintessential growth stock in the dow with healthy dividends, i like it. I like 3ms management too. And if we get any price breaks on these days, i want you to buy some 3m. I think its going to surprise people, open peoples eyes. We get results with cellgene too. Is there anything he can do after a sensational hit it out of the park presentation earlier this year . Im not sure, let me say this, everything he said out there, everything that drove this stock up 23 points almost in a Straight Line was previewed right here when he stood right here, okay. And told you about all the new drugs, all the terrific prospects in the pipeline. He told you. I think the stock should pull, if only because he literally, well, just a couple of weeks, not that long ago he outlined everything. The cats out of the bag. But right now celgene has been anointed and it would be something if the stock pulled back. Celgene is the quintessential stock name for those of you who couldnt get enough of that talk last night. That was just the depiction of the animal spirits that have grabbed ahold of the market and wont let it go. Im not saying the stocks going to 90 to 120. And i saw on twitter, people saying no, im saying that is the kind of thinking going on in the market. Well talk about a stock not 90 going to 120. Is there anything that microsoft could say that would drive this company back to the past glory days . Especially after intel talked about down pc sales . Monetization of skype maybe . Xbox product extensions . Strong nokia cell phones with microsoft stuff in them . You know what . I wouldnt bet against this company down here because the expectations are so low and the cash hoard so large that theyve got more flexibility to do something. Then friday, we get honeywells results. Maybe its just summit, new jersey. Bob hugens is a neighbor of mine, headquartered in the town im in. And dave cote is my next door neighbor. Get google maps, you can figure out what to buy. He too might be challenged about what to do for an encore after honeywells remarkable and welldeserved run. If this stock comes down at all next week, its the one i want to buy ahead of the quarter. Autos, aerospace, refining, commercial construction, climate controls. Thats actually everything. Thats why i want you in it. Another one, buy this one ahead, that one ahead. Next up is kimberly clark, slow and steady wins the race and so do proshareholder managements like Kimberly Clarks got. Its been one of my favorite stocks and now i think its going to keep plodding higher, higher, higher. Last but not least is warehouser. We said goodbye to the stock for the Charitable Trust which you can follow along because it had run too much. We were like up too much for the darn thing. But, listen, warehouse is the largest timber company, it has it all, especially ahead of the Hurricane Sandy rebuild. We took profits. That said, if this stock goes down two or three points, well be right back in there buying it hand over fist. Im itching to buy it ahead. But no one ever got hurt taking a profit. Heres the bottom line. Dont tell me this earnings season is a bust when its only just begun. I actually like what ive been hearing. Im actually on the calls unlike everybody else i hear criticizing. Theyre not doing this level of homework. Going forward next week, buy some stocks j j, 3m and especially honeywell. The rest, including apple, sit back and listen and then well make the decisions, informed decisions up before the quarters. Jeff in nebraska. Jeff . Caller jim, booyah. Booyah, jeff. Caller thanks for taking my call. Same. Caller appreciate the heads up on celgene, 83, i turned a profit. Thank you, thank you youre the first person who has admitted that the guy didnt come on the show and chase he gave the exact same presentation he gave here except that was 20 points later. Caller so moving ahead, ive been watching and listening about the banks ahead of earnings. Im bullish on the sector, but paying attention to the rise in the etf popularity and i honed in on blackhawk ahead of earnings. With the outstanding quarterback, do you think we go higher from here or ring the register . I think we go higher, but i dont know whether the 230 calls will capture your gain. So i dont know if the stocks going to move like that. Its just had well, lets put it this way, i think that you can get to 240 if we have a decent week, i dont think it goes to 250. Earnings season, it has only just begun. So far, so good. Next week, keep an eye on j j, honeywell, and 3m for weakness. And well all listen to apple, well all have our views and ill come tell you the next day. Mad money will be right back. Coming up rise and hampered. First Horizon National took a beating today after reporting. But could this be your chance to make a deposit . Cramers checking in with the ceo next. And later sweet speck . Cramers got a sweet tooth tonight and hes hungry for a scrumptious speck. Chocolate sprinkles or covered in cream, could this stock make you salivate . Stick around to find out. Plus prime pipeline . While the market welcomes new mlps this week, cramers taking a look at one thats already serving up juicy returns. Can he continue to pump in profits . Jims exclusive with the ceo of cross tex energy just ahead all coming up on mad money. Have a question . Tweet cramer, madtweets. Send jim an email to madmoney cnbc. Com, or give us a call at 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. [ male announcer ] no matter what city youre playing tomorrow. [ coughs ] you cant let a cold keep you up tonight. [ snores ] vicks nyquil. Powerful nighttime 6symptom cold flu relief. [ sniffles, coughs ] excuse me. I need something for my cold symptoms. [ sniffles ] weve got dayquil for day and nyquil for night. [ thuds ] you didnt see that. 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New cepacol sensations cools instantly, and has an active ingredient that stays with you long after the lozenge is gone. Ahhh. Not just a sensation, sensational relief. Is there a fly in the regional banking ointment . One of my favorite themes for 2013 is the rebound of the banks and particularly the regional banks that have been shunned for ages. Theyre now coming into their own. And maybe they are the best ways to play the strength of the housing market. However, just this morning, the regional banking thesis may have hit a little speed bump in the road. When first Horizon National, about 200 branches reported mixed results, stock got hit, fell 30 cents or 2. 92 , one of the worst performers today. The problem, First Horizons Net Interest Margin, on the difference between what they pay you for your deposits and what they make from the loans disappointed the street. The company also had lower fee income, something i thought would have been higher. Maybe even much higher in this quarter. Im wondering how much this should bother us, though. Ive been telling you Net Interest Margins stink for all the banks, but other things are Getting Better. And thats what ive tried to focus on with First Horizon. The company had 12 growth, First Horizon brought back a substantial amount of stock last year, equalled more than 5 of the market cap. Did the market overreact . Did the sellers come away with the wrong conclusion . Or is there more work to do . Lets check in with brian jordan the chairman and ceo of first Horizon National and find out more about the quarter and where his companys headed. Mr. Jordan, welcome back to mad money. Thank you, jim. Its great to be back. Do you think that people are just disappointed in all Net Interest Margins or are they picking on your bank . Well, its hard to tell, theres a lot of volatility in the bank stock, particularly in the regional banks. Our Net Interest Margin was down a little bit during the quarter. Its been fairly stable over the course of 2012, and we think with some amount of modest decline a couple of basis points a quarter we could see it drift down a little bit more during the course of 2013. But given the overall environment that were in, the fact that securities are repricing at lower levels as we reinvest, the overall low rate of environment is not unusual. We do have offsets in our Loan Portfolio as our National Strategic nonportfolio runs down or winds off. We have an opportunity to invest in higher yield customer oriented relationships, and so we think weve got some stabilizing forces. Its hard to tell exactly how the market reacted in one given day to our Net Interest Margin. But we feel like weve had pretty Good Management of it and im optimistic well maintain some stability in a tough environment in 2013. Your fee income did come in lower than expected, though, both Capital Markets and mortgage banking. Is that just a onetime only . Are we going to see a better series of numbers in 2013 . Well, yeah, Capital Markets is probably the big driver of any up or down movement in our fee income. The Fourth Quarter was an unusual quarter in a couple of ways. One, you had the impact of Hurricane Sandy where the markets were closed for a couple of days. We saw average daily revenue in the business drop from about 1. 2 to about 1. 1 million, which is still within our range o expected outcomes. And it tends to be a very profitable level for us. So it drifted down a little bit. You had in terms of the way the Fourth Quarter usually plays out, you were short a couple of business days. But we expect that business to be pretty stable. We dont think Interest Rates are going to change an awful lot in 2013. Our client base, particularly the Financial Institution client base still has a lot of cash to be invested. We think weve got good coverage of that marketplace. And we think well do very well in 2013. You brought back a huge amount of stock. A huge amount. So that is youre trying to figure out your capital allocation. Im sure someone will say, listen, weve got to save it for a rainy day. And you chose to buy it all in. How do you feel about given the fact that people were somewhat negative today about the stock . Well, i think, you know, return of capital is a fundamental strength of one of the things were doing right now. We believe in driving shareholder returns in profitability, getting capital that cant be deployed effectively in the business back in our shareholders hands. So over the course of this year we bought back 135 million plus or minus of stock, 175 million or so over the last 15, 18. I would expect that over the course of 2013, well buy back some more stock, well look at whether we ought to increase the dividend. I think its appropriate that we have a good mix of dividend and stock buyback. Given the environment that were in, given the fact that weve got a nonstrategic portfolio, loans in particular that are running off, our Balance Sheet size is relatively stable. That gives us a fair amount of excess capital that we can put back in our shareholders hands, maintain a very thick buffer against any unknown risks that could come up in the environment. Whether it be economic turn or something completely unrelated. Strong capital basis and put a lot of cash back in our shareholders hands over the course of the next 12 months or so. Are you seeing confidence coming back after the election . And some of the bigger guys coming in maybe looking for some construction loans, commercial loans that you can make a ton of money on in the second half of 2013 . Well, we saw pretty good loan growth in the course of 2012, pipelines because we had strong closings in the Fourth Quarter are down a little bit as we transition into the year. I would say that we havent have not seen a big pickup in confidence in the marketplace. Youre correct and we got through the fiscal cliff, but weve got a number of different things, whether it be the debt ceiling, the sequester, the continuing resolution in d. C. That are on the surface. Our sense is customers are gaining confidence, theyre willing to make marginal investments, but theyre going to be very measured steps and theyre going to be reflective of a loan environment thats commensurate with a 2 to 3 growth economy. Given that we think well get our fair share, well put some very profitable relationships longterm highquality relationships on the Balance Sheet, and at the end of the this cycle, were going to feel very, very good about how our Customer Business is structured and what that means for long returns. Bryan, ive got to tell you, this group is going to get hot. I know it has to. And bryans the chairman, president , and ceo of first Horizon National. Thank you so much, sir, for coming on the show. Thank you, jim. Thanks for having me. We still dont have the confidence. And thats really hurting a lot of the lending in this country. Well, look, we get it, these stocks are going to rocket. Lets put it that way. Fhn, good stock, stay with cramer. Coming up sweet speck . Cramers got a sweet tooth tonight, and hes hungry for a scrumptious speck. Chocolate sprinkles or covered in cream, could this confectionery delight stock make you salivate . Stick around to find out. Have given way to sleeping. 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We can help you go there on the wings of lunesta. Thats why i take new trubiotics. Its a daily probiotic that helps in two ways. One helps support digestive health, the other immune health. Stay true to your health. New trubiotics. From the makers of oneaday. Back on monday, bob in florida called in to ask me about krispy kreme donuts kkd, hence the donutamid. The stock has been absolutely on fire ever since it reported earnings back in october. 75 in the last two months. And you know what . I would not be surprised if the 12 krispy kreme can go to 14, maybe even with ease. So how the heck is this donut stock, a company that makes more than admittedly, the most delicious, indulgent foods on earth in an environment where everyone knows Healthy Eating is what consumers crave . Well, you know why people are trying so hard to eat healthy in this country . Its because 2 3 of americans are overweight. And why is our nation so husky . Simple, we cant stop ourselves from eating delicious treats like krispy kreme donuts lived until you have one of their donuts just out of the oven in the stores on a cold sunday morning. And the coffee, its excellent. And thats why krispy kreme is relevant. But its not why the stock has been en fuego. Weve already seen small coffee houses, but the german conglomerate, and now theres speculation that krispy kreme could be acquired by a large suitor too. Both were taken out in a 30 premium, petes valued at 33 times earnings and the bid for caribou at 25 times earnings. Its worked. Krispy kreme is pretty similar to these two in terms of size and growth opportunities. I could easily see some restaurant paying 29 times plus forward earnings. And at 29 times forward earnings, krispy kreme would be a 14 stock, 35 higher than where kkd is trading now. But you know me, i never ever, ever even on speculative friday recommend a stock purely on the basis of takeover speculation. Were seeing with krispy kreme. The only holes in the story at this point are the donuts. That said, the stock has had an enormous run and still very much a speculative play. For this show, its 780 million, and more importantly, it is checkered. Got a checkered history. Krispy kreme came public to much, much fanfare 12 years ago, april 2000, with a red hot ipo that surged 76 in the first day of trading. By 2003, the stock was trading at nearly 50. Oh, but back in 2004, holes started showing up in Krispy Kremes accounting, not just the donuts. The companys first loss back then was blamed on the rise of the lowcarb atkins diet. Too many stores showing up in places with no ad supports. The Company Ended up closing half of the stores. Many of the franchisees filed for bankruptcy. There was a krispy kreme everywhere. By the time of the Great Recession in 2009, the stock fell to 1. Ever since then, though, krispy kreme has been bouncing back and bouncing back hard. The latest quarter was meltinyourmouth good. Rose 8. 5 yearoveryear, even better, the company gave upside guidance for the next fiscal year and laid out plans to grow the store base, how much do we like growth in this stock market . Right now krispy kreme has 734 shops in 21 different countries. Out of those 97 are companyowned stores, 141 are domestic franchises, then the largest portion by far are the 506 international store shops, kind of reminded me of dominos. Best stock we ever recommended probably. Krispy kreme is now an International Growth story. The companys growth plan is to ultimately have 900 International Stores by the fiscal 2017 which will be calendar year 2016. They want to open up 394 more International Stores over the next three years, 7 increase, thats what wall street wants. The plan is to get to 400 stores by the fiscal 2017 up from 240 stores last year by increasing companyowned locations and franchises. This is a really Aggressive Growth plan. For just this fiscal year, krispy kreme tends to open five to ten stores and more than 75 international franchises, that could be up to as many as 100 new locations heavily weighted to overseas growth. The new locations are small format Factory Stores which krispy kreme after much study has decided are the recipe for success. Its a much more studied studious krispy kreme than the old days. Plus the Company Might accelerate the growth plans in order to remain independent. Right now, krispy kreme is only in 21 countries. Even as it seems like they have a lot of global appeal. After it hits the 2017 goals, it can keep growing by moving into new markets. This is not just about a company thats Opening New Stores willy nilly. The mistake that krispy kreme made back in the middle of the last decade. This time around, the companys being much more responsible. Kkd samestore sales have been positive for 16 consecutive quarters now. Four straight years. And the latest quarter, the company saw a 6. 8 increase, which is fabulous. Chipotles trying to get 4 . Plus, even after the recent run, the stock isnt particularly expensive. Stock sells for 21. 5 times earnings. Got 25 longterm growth rate. One of my rules of thumb in this game is that when the multiple trades below the growth rate, got a cheap stock. I think krispy kreme sells for 25 times earnings. And that would take the stock to 14 easy. And that would be if it just traded within its growth rate. Thats all. Some would argue that krispy kreme deserves to trade at a premium to growth considering all the takeover chatter. It has a lower multiple than Dunkin Donuts that is not being taken over. Despite having a substantially 17 growth rate. Krispy kreme is roughly the same multiple as starbucks even though starbucks has a lower 18 growth rate. In defense of starbucks, they have a better brand not to mention, indeed, better coffee. Youve got two ways to win, it could rally up to 14, i think that could be a conservative number or the stock could go to 16. 24, i know, pretty precise, on a potential takeover bid. They seem to be addicted to coffeerelated acquisitions as im addicted to coffee itself. It is at a 52week high. And im willing to endorse buying the stock on a pullback. Wait for some market believe me, it does happen, knock the stock down and then make your move. Heres the bottom line, krispy kreme as this donutamid clearly shows is back. And its giving you two ways to win. Either the company gets taken ore or stays independent and grows like a weed. The only thing that gives me pause is the gigantic move in the share price. Im begging, be patient, wait for a pullback and please use limit orders if youre going to buy kkd. Lets go to bob in my home state of new jersey. Bob . Caller booyah to ya, jim. How do you like that burger . Cheese on it, onion, pickle, lettuce, thats from stewarts, the vendor. My moms favorite. Whats up . Caller got that dollar sign on the bun too. Dont you love it . Its a restaurant where theyve got a jim cramer burger. I love it. You have to take it with lipitor and if you cant, take a little crestor. Caller i like your view on yum brands with all the bad pr about the tainted chicken, whether its true or not, i dont know. All right. Im a believer in david novak who runs yum. Im a believer that the problems with yum are shortterm in china. And i am a believer you must buy. And i would buy it right here because my Charitable Trust, which you can follow on actionalertsplus. Com. Maybe a couple points downside and much upside. I need to go to lewis in maryland. Lewis . Caller hey, jimmy. Some new locations opening in california and texas, how high do you think the stock could go . The california growth plan they revealed this week is spectacular. Everyone else deserted Dunkin Donuts when it went to 28, 29. I think the stock goes to 40. I want to own ill see you tomorrow at Dunkin Donuts. Ill be there between 8 00 and 10 00, get the extra large. And i dont have to ask it, its right there when i get in there. Rolling in the dough, krispy kreme is rising back. Whether it gets taken over or spreads around the world, i think its worth getting into. Dont move. The lightning round is next. So if you have a flat tire, dead battery, need a tow or lock your keys in the car, geicos emergency roadside assistance is there 24 7. Oh dear, i got a flat tire. Hmmm. Uh. Yeah, can you find a take where its a bit more dramatic on that last line, yeah . Yeah i got it right here. Someone help me i have a flat tire well its good. Good for me. What do you think . Geico. Fifteen minutes could save you fifteen percent or more on car insurance. We can afford to take an extra trip this year. First boston. Then san francisco. Hotwire checks the competitions rates every day so they can guarantee their low prices. So our hotels were half price. Hotwire. Hotwire. Com lauras being healthy and chewing her multivitamin. With one a day vitacraves for women. Its a greattasting gummy multivitamin designed for women with more calcium and vitamin d. Its gummies for grownups. Oneaday vitacraves for women. Try these. New cepacol sensations cools instantly, and has an active ingredient that stays with you long after the lozenge is gone. Not just a sensation, sensational relief. He opened up jakes very private world. At first, jakes family thought they saved ziggy, but his connection with jake has been a lifesaver. For a love this strong, his family only feeds him iams. Compared to other leading brands, it has 50 more animal protein. To help keep ziggys body as strong as a love that reaches further than anyones words. Iams. Keep love strong. It is time. It is time for the lightning round on cramers mad money. You say the name of the stock, i tell you whether to buy or sell. Play until this sound the lightning round is over. Are you ready skeedaddy. Well start with mark in california. Mark . Caller hey, jim, a big booyah from sunny california. How are you . Whats up there, pal . Caller thanks for taking my call. Firsttime caller, big fan of the show and all your books. Thank you. Caller jim, ive heard you talk say good things about private equity firms like blackstone and kkr. Indeed. Caller my question is about kkr. Two ticker symbols. No, kfn get the one buy, buy, buy you want the one with frank nancy, no the the other one. Kfn, that is the one. Im sticking with it. Kevin in illinois. Kevin . Caller jim, booyah to ya from out chicago way. Thank you for all youve done for us little guys. My stock is verizon. Steady dividend payer, but the whole class seems to be dragging. Yes, it is, because people want more excitement. They want global growth. Verizon is strictly domestic. Im going to tell you to hold verizon, not to buy it. It comes lower, well use it as a dividend play. It doesnt have that kind of growth. John in virginia. John . Caller jim, the wizard of wall street. Thank you. Caller im a secondtime caller. And to those who post negative comments about your picks and advice, i say that you are correct a lot more of the time than the analysts that people pay well, thank you. Lets go to work. What do you got . Caller im looking for a couple of highdividend stocks, monmouth mmr, is it a buy . I dont know monmouth. Theres so many Real Estate Investment trusts, but i promise to get back to you monmouth. Michael in new york, michael . Caller hello, mr. Jim cramer. How are you . Caller happy, happy friday booyah all the way from smithtown, new york. I love smithtown. I dont know if youve been there. Whats up . Caller well, jim, i have a large hold in synovus. I think its coming back, snv, perhaps a great speculation. I want to see the quarter, i want to see t. A. R. P. Repaid. And if they do, we are going to pull the trigger. Buy, buy, buy greg in california, greg . Caller tell me something. What is your take on irf . International if the semiconductor cycle is coming back, which everyone tells me it is, i would be a buyer. Eric in florida, eric . Caller jim, how are you . Real good. How about you . Caller very good. All right. Why dont we play a stock thing. Go ahead. Caller say again. What stock do you have . Caller aflac. Aflac is high, its not expensive. I do prefer aig if im going to be insurance, i want to be with bob, i think he gives you the most upside. And that, ladies and gentlemen, is the conclusion of the lightning round. The lightning round is sponsored by td ameritrade. Lets go to marie in illinois. Marie . If i could have dinner with you or george clooney, it would be you in a mad minute. Really . Caller yeah. George clooney . Caller yeah. But not Bradley Cooper . Caller no, no, definitely not him. Dino in california, dino . Caller jimmy. Yo yo. Caller welcome to the new year. By the way, i hope you shorted the mayan. The mayans . Oh, yeah. Absolutely. I believe that there is a fundamental turn going on in krispy kreme. It has been ages since i looked at it. The last time i looked at it, i chipped my tooth. With a 10foot pole and i chipped my tooth. Okay. All right. Thats okay. Its still not the way it should be. Rise and shine and thanks for waking with cnbc. Im jim cramer and theres always a bull market somewhere. So its go time. Get up and make your best move. Snoozing. See the markets gotten a little tired. It needs to catch a couple of winks. It wakes itself up perhaps with my alarm clock. Rise and shine and thanks for waking with cnbc. I think itll wake up rejuvenated and will go higher, not lower, mad money will be right back. No, the head is right here. Youre covering the mike. Okay. Okay. I played a round of golf. Id in the last five hours . Then i read a book while teaching myself how to play guitar; ran ten miles while knitting myself a sweater; jumped out of a plane. Finally, i became a ping pong master while recording my debut album. How you ask . With 5hour energy. I get hours of energy now no crash later. Wait to see the next five hours. Excuse me, sir im gonna have to ask you to power down your little word game. I think your friends will understand. Oh no, its actually my geico app. See . I just uh paid my bill. Did you really . From the plane . Yeah, i can manage my policy, get roadside assistance, pretty much access geico 24 7. Sounds a little too good to be true sir. Ill believe that when pigs fly. Ok, did she seriously just say that . Geico. Just click away with our free mobile app. Here on mad money, we are all about longterm themes. Big picture trends you can fall back on the next time the market turns against you. And it will eventually, believe me. One of my top themes for 2013 and possibly beyond is the north American Energy renaissance. We discovered so much new oil and gas in this country we could potentially break the strangle hold on the Nations Energy supply in less than a decade. And we need new infrastructure to transport the stuff from where its produced to where it can be used. Thats why ive been a big fan of the pipeline Master Limited partnerships. Tonight i want to issue another one, a new one, with the sky high yield that also happens to be a turn around play. Xtex for you home gamers. Crosstex owns 35 miles of pipeline. Along with ten nat Gas Processing plants and 2. 4 Million Barrels worth of nat gas liquid cavern storage. Got crushed during the financial crisis. Stock traded as low as a buck and change back in march of 2009. I wish i brought it then. Since then, its been in a major comeback. Redistribution in 2010. Management has said they plan to increase the distribution by 9 in 2013. Thats massive. Plus crosstex is moving away from where production is declining, shifting to faster growing more oil regions. If the company can execute, i think this can be a terrific story. But i need to know more before i can give it my blessing. Lets find out more. Lets talk with barry davis, the founder and ceo of crosstex energy, more about his company and the prospects. Have a seat, sir. Thank you for coming on the show. Thank you. Thanks for having me. Got in a little trouble couple of years ago and you changed your model. The likelihood of that happening is much lets say the odds are much lower. Yeah, jim, were really excited about where we are today. Weve successfully achieved a transformation of our business. In fact, today, 90 of our revenue is generated from feebased activity compared to less than 70 a few years ago. Secondly we have diversified our business by entrance into new geographic basins as you said. Thirdly, weve also moved from being 90 natural gas oriented to today were moving towards 50 natural gas and 50 crude oil and natural gas liquids. Im trying to understand to our viewers what the fee base is. Lower estimates and price objective, if your fees, why is there volatility . With the feebased, you dont have the volatility. Right. Weve had exposure to the Commodity Prices in as recent as 2008. We were 65 feebased. Today were 90 . So much less volatility today in our cash flow. So you think this kind of lowering estimates had the guidance. Didnt necessarily need to do that because things are consistent now. Well, we are realistic about the commodities sensitivity we do have. We do have processing margins and that really would be the part of our business that he was speaking to in that case. Well, im trying to understand. The natural gas liquids, weve had a bunch of ceos on and those were great business and then the prices plummeted. Are you somewhat insulated from a natural gas liquid turn down . As you mentioned, were in the process of investing 1 billion in natural Gas Infrastructure and crude Oil Logistics business. The great news is every bit of that, 100 of that is feebased business. It will continue to desensitize us to the movement of the prices. Where are you now in terms of because you made that very bold distribution projection. Youre feeling good about that projection. Yeah, and actually, we think thats a conservative estimate. In fact, the midpoint of our guidance for 2013 exit rate yearoveryear will be about a 15 increase in our distribution and about a 38 increase in our dividend. So you think youre in the penalty box for what happened . Because thats a hefty distribution for a company that yields more than 8 . Jim, were confident about our business. So i wont speculate as to why were in the penalty box. What i will say is were very excited about the execution that were in the middle of right now. 1 billion of growth on top of a company that has a market cap of about 2. 5 billion. Extraordinary growth in our distributions and dividends we think is right on the horizon. Youre one of the few companies that has actually seen american industry take advantage of the natural gas liquids. Youve got a big deal with dow that could be a game changer for the country too, right . Were really excited to see whats happening for our customers like dow and alcoa and others. They are absolutely benefitting from what were seeing as a renaissance period with natural Gas Production growth of 26 in the last five years, 20 natural gas liquids growth in the last five years and 16 growth this year alone in crude oil. So were seeing a resurgence. And in our market area, particularly in the gulf coast of louisiana, Strong Industrial growth as we see it in the next two to three years. Now, are we at a competitive advantage in this country . Dow could locate plants anywhere, but youre giving them fee stock for plastic cheaper than anywhere else in the world . Again, the reason were very optimistic about the future of this industry. What were seeing, again, is the growth in production shifting in where the production is coming from, Strong Demand growth and the infrastructure needed to connect those two points right in the center of the radar. What we do is a great if you raise that distribution, your stock is vastly mispriced, sir. The one that high yield, particularly you do not raise the distribution. That would be a game changer. It would, jim. And we think our shareholders who have stayed with us and our unit holders are going to be handsomely rewarded as we continue to grow the distribution and dividend Going Forward with the growth we have planned. Pretty confident man. Sounds like a good story. Thank you to barry davis. Guys, 8 and you raise the distribution, this stock almost by nature should go up when that happens. Stay with cramer. Thank you so much. Its time to change the way we clean. Its time to free ourselves from the smell and harshness of bleach. And free ourselves from worrying about the ones we love. New lysol power free has more cleaning power than bleach. How . The secret is the Hydrogen Peroxide formula. It attacks tough stains and kills 99. 9 of germs. New lysol power free. Powerful cleaning thats family friendly. Another step forward in our mission for health. Doing it with a cold, just not going to happen. Vicks dayquil powerful nondrowsy 6symptom cold flu relief. No matter what city youre playing tomorrow. [ coughs ] [ male announcer ] you cant let a cold keep you up tonight. Vicks nyquil powerful nighttime 6symptom cold flu relief. But may not realize what they can do for your health. We know what it takes to look good on the outside but with 70 of our immune system located in our gut, the core of our health is truly on the inside. Thats why i take new trubiotics. Its a daily probiotic that helps in two ways. One helps support digestive health, the other immune health. Stay true to your health. New trubiotics. From the makers of oneaday. Is hope spring eternal . Or are the facts actually Getting Better . Thats the crux of whats going on right now in this market. You can see it play out right in front of you. This morning, schlumberger and General Electric sounded somewhat somber about their businesses not that long ago. General electric seemed to be lacking confidence that 2013 could be a big year. It took the extraordinary step of preannouncing a weak quarter not that long ago. Boy, those were thats old news. Today General Electric came out with a terrific earnings report. And the ceo was brimming with confidence, not negativity like the last time. Talking about his Company Coming on strong with terrific quarters and amazing prospects, signaling that china is really starting to roar. Schlumberger too told a much better story, almost as if the company said nothing negative before this both were among todays biggest gainers. Did both squelch hope . Frankly, even after listening to the callers, im not sure myself. Theres always been a but around earnings time. Is the reaction to these stocks simply the case of the companies setting low bars and taking away all hope, something that allows them to surprise to the upside . I know thats what the naysayers are crowing about. How about Morgan Stanley, reported dynamite quarter. And james gorman told a remarkable story about turn around, particularly in the Wealth Management business. The numbers were certainly there and the stock vaulted higher. Was that just hope that the bad old days when Morgan Stanley was perceived to be on the ropes are nobehind them . Another case of no hope to hope . And then theres caterpillar. Got the stock flying. But its almost totally about hope. Hope that the market will look through the coming weak numbers. The report said the numbers would be weak and said that would happen too. I dont know, i think that could be a tall order. However, though, i said out loud this morning on squawk on the street perhaps im not hopeful enough. I thought the whole second half story had to hold a belief, hope that things would get better. The stock scorched higher without me and im totally steam shovelled. Finally theres intel. Oh, my how much i like this company. I used to be an intel hawk going to new fabs. Now i feel intels turned into a helpless giant openly questioned for the big capital expenditures. Intel knows that the customers always right but seems to have the wrong customers, certainly not apple or samsung. You sure wouldnt want to own the stock based on the quarter or the conference call. But what did management hang its hat on . How did they entice you into thinking you should own the stock here . Because of hope, hope that the second half of the year will be stronger globally, that the worlds economies are going to get better. And that made me ask myself, is this hope that things will get better or somehow do they just know it . And if they do know things will get better, please tell me how. I certainly believe in hope. In the end, if youre investing, i say hope should be part of the equation. You can hope that the ravens beat the belichicks and bradys and sunday, we need more facts to get more bullish from here. And the sooner we get them, the more positive ill feel about the stocks after the run theyve had. Stay with cramer. Keep up with cramer all day long. Follow jimcramer on twitter and tweet your questions madtweets. On tuesday morning, were going to get a test of my hope no hope together for breakfast. In fact, they might work too well. [ ding ] [ shuffling, scooting ] [ clears throat ] [ children laugh ] [ female announcer ] golden, crispy outside. Warm and fluffy inside. We are one goodlooking family. [ children laugh ] [ female announcer ] eggo waffles. Simply delicious. Im up next, but now im singing the heartburn blues. Hold on, prilosec isnt for fast relief. Cue up alkaseltzer. It stops heartburn fast. Oh what a relief it is on tuesday morning, were going to get a test of my hope no hope thesis and itll be from caterpillar. Because after the bell caterpillar announced a big misconduct problem in china that will cause a huge impairment charge. If you see this stock doesnt come down, well, its kind of like boeing with the lithium batteries that doesnt go down. Then we know perhaps i, a bull, am perhaps too bearish. Theres always a bull market somewhere, i promise to try to