Cramer's 'Mad Money' Recap: A Broader View of the Market (Final)
In an exclusive "Executive Decision" segment, Cramer sat down with Sean Boyd, CEO of Agnico-Eagle Mines (AEM), a stock which Cramer last recommended on April 29.
Boyd said that now is the "perfect environment" for gold, with strong demand and low real interest rates. He said with gold only off 5% from its all-time high, he expects prices for the commodity to rise sharply as we enter the historically bullish late summer and early fall period.
When asked about the longer term outlook for gold miners, Boyd said that gold is a tough business to be in since they're always fighting mother nature. He said all of the easy gold deposits have already been found, so finding gold is always getting more and more difficult.When asked more specifically about Agnico-Eagle, Boyd said that his company has always been about and ensuring its dividend payments. He said while unit costs rose in the current quarter, the company was focused on growing cash flow. Once Agnico's mines are all fully operational, unit costs will be heading lower, he said. Finally, when asked if gold could see $2,000 an ounce in the coming years, Boyd said that price is definitely feasible.
Tweaking the Mobile Internet IndexIn the latest tweak to his Mobile Internet Index, Cramer offered up a replacement for ADC Telecommunications (ADCT), which recently received a takeover bid. Cramer said Internet video giant Akamai (AKAM) is the perfect candidate to fill the vacant spot. Akamai is already up 60% since Cramer last recommended it on Jan. 20; however he said this is one case where investors may have to buy high, and sell higher. Shares of Akamai are down slightly from where it reported earnings a few days ago. Cramer said Akamai is an Internet infrastructure play, helping companies deliver video and other content to customers wherever they are. Management recently noted that the notion of customers having three screens, a TV, PC and a mobile device, is now a reality. Cramer said the perceived shortfalls in Akamai's recent results were nothing but, as the company was reinvesting in its infrastructure to maintain its accelerated revenue growth through 2011. The company has $1 billion in cash on the books and is also growing its gross margins through increased value added services. "There's a need for speed on the net," said Cramer, and that means Akamai.
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