Segment 1: What Happened to the Sellers?
Cramer said that the sellers left the market today because Obama and Congress didn’t issue any more attacks at the banks or any other industries today, the Institute of Supply Management released a solid manufacturing report, Greece didn’t default over the weekend, oil was higher, and ExxonMobil (XOM)
Cramer took phone calls on the following stocks:
Berkshire Hathaway (BRK-B): Cramer thinks this stock is undervalued so he is bullish.
Segment 2: Interview with EQT (EQT) CEO Murry Gerber
Cramer wanted to talk to this CEO because his company has a large amount of natural gas holdings in the Marcellus Shale and other areas of the Appalachian Basin, and he wanted to find out how the company is doing and what the industry thinks about Obama’s State of the Union speech last week. Here is a summary of the interview.
1. Cramer asked why Obama didn’t mention natural gas during the State of the Union Address, and the CEO said that we have a 120 year supply of natural gas in the U.S. and we are finding more all the time, so we could spend some of the $350 billion we spent on oil last year in America instead of overseas.
2. Cramer asked if we really can use natural gas for more than heating homes, and the CEO said that we can fuel all of the cars in the U.S. and reduce our oil usage by 75%, and that building pipelines would be a great stimulus plan because it is a wise investment and great job creator.
3. Cramer asked about their history of job creation, and the CEO said that they have created double digit employment growth for the last 2 years, and he thinks that 50,000 jobs have been created in the Marcellus Shale alone.
4. Cramer asked if clean coal is viable, and the CEO said that he doesn’t know much about coal, but they are pumping natural gas and working to make the U.S. energy independent.
5. Cramer asked if the concerns about fractured drilling are legitimate, and the CEO said that people have been doing this type of drilling for 60 years, environmental groups have done studies that didn’t find any issues, and the states are doing a good job of regulating the industry to make sure that the drilling is done safely.
6. Cramer asked why no one in Congress will stand up for natural gas, and the CEO said that he doesn’t know why, because you are for foreign oil if you are not for natural gas.
7. Cramer asked how their finding costs are so low, and the CEO said that they bought a lot of acreage in Appalachia in 2000 when it was cheap and they have a great technological team.
8. Cramer asked if we really have 100 years of natural gas in the ground, and the CEO said that it is for real, and the finds in the last couple of years are due to technological advances.
9. Cramer asked about their hedging position, and the CEO said that they are about 35% hedged in 2010 and a little less than that last year, and that is part of their cost management strategy.
10. Cramer asked what would happen if a big integrated energy company made them an offer, and the CEO said that he thinks they can triple if they execute their growth plan.
Cramer ended by saying that he thinks the CEO is being modest when he says that the company’s value could triple, and he is bullish.
Segment 3: Coal Facts
Cramer said that he thought coal stocks would drop last week when China announced that it is slowing down because the U.S. did not build a single coal plant last year, and CSX (CSX) reported that coal shipments were down, but there are still some positive reports from the industry. Peabody Coal (BTU) said that China is still going full steam ahead during its quarterly report, but then Arch Coal (ACI) missed estimates for last quarter and lowered guidance. Cramer said that the only thing that can save coal now is Obama’s promotion of clean coal and carbon capture over natural gas, even though it has many health and economical drawbacks, but Cramer doesn’t think it will be enough to keep coal usage at past levels with China trying to rein in economic growth. He wants to sell BTU and ACI along with the other coal stocks because Wall Street estimates are too high and coal usage could actually decline in 2010, and he said that the rise in the sector today is a good opportunity to get out of the sector.
Cramer took phone calls on the following stocks:
RINO International (RINO): Cramer is bearish on all Chinese stocks because their track record is so bad.
Permian Basin Trust (PBT): Cramer is bullish on this stock because he likes the dividend and doesn’t think oil is going below $70.
Cloud Peak Energy (CLD): Cramer said that he is bearish on this coal stock.
Segment 4: Lightning Round!
Brocade (BRCD): Cramer is bearish on this stock and said that he would rather own Cisco (CSCO).
DryShips (DRYS): Cramer is bearish on this stock and recommended Diana Ships (DSX) instead.
Freeport McMoran (FCX): Cramer recommended Southern Copper (PCU) instead because he is nervous about FCX’s chart and China exposure.
Apple (AAPL): Cramer said that he has been predicting a decline in the stock after the launch of the iPad, and now that the decline has happened, he is bullish on the stock.
Boston Scientific (BSX): Cramer said that he can’t get behind this stock after its $1.7 billion patent settlement with Johnson & Johnson (JNJ).
Burlington Northern (BNI): Cramer said that he would take the stock of Berkshire Hathaway (BRK-B) instead of the cash in the buyout offer for this stock.
Honeywell (HON): Cramer is bullish on this stock and said that the CEO was too negative on their conference call.
Segment 5: Mad Money Mail
Trinity Industries (TRN): Cramer is bearish on this stock because wind power is not panning out and they won’t benefit from any high speed rail spendings.
Vale (VALE): Cramer said that he sold this stock because he thinks it is too exposed to China, even though he still thinks it is cheap.
Caterpillar (CAT): Cramer is bullish on this stock.
