This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer's 'Mad Money' Recap: Patience Will Be Rewarded (Final)

Low-Cost Nat Gas Producer

In the "Executive Decision" segment, Cramer spoke with Steven Mueller, president and CEO of Southwestern Energy (SWN), another Action Alerts PLUS name and a stock which Cramer recently recommended after the company was one of the worst performing stocks in the S&P 500 last year.

Mueller said that Southwestern is one of the lowest cost producers of natural gas in the U.S., which means that his company is able to make a lot of money even with natural gas prices at record lows. He said Southwestern is delivering record production, record cash flow and building record reserves, adding the company is just waiting for Wall Street to recognize them.

Ultimately, Mueller said the low price of natural gas is a good thing for the U.S., as it spurs more interest in the fuel. He said that the Obama administration is talking more and more about natural gas, and individual states are also considering gas as a viable long term alternative to coal and nuclear facilities.

Mueller said he's excited about Southwestern's game plan and prospect for the future. He said the company has a strong balance sheet to execute its plans, but he's also not opposed to considering a takeover or merger with another company if it's in the best interest of Southwestern shareholders.

Cramer said he continues to be a believer in Southwestern and thinks the time to pull the trigger, is now.

Fertilizers Breaking to Upside

In the "Off The Charts" segment, Cramer went head to head with colleague John Roque over the charts of the fertilizer stocks, a group that's poised to ramp notably higher.

According to Roque, a chart comparing the relative performance of the WJB Capital Fertilizer Index versus the S&P 500 shows that the fertilizer group has built a lengthy 19-month base, and is now ready to break out to the upside. He noted that money managers will begin piling into this sector now that its beginning to outperform the broader average.

Cramer said he's in total agreement with Roque, noted that there will be a worldwide food shortage for the foreseeable future as a rising global middle class continues its appetite for more expensive food. He said foods like meat and chicken will continue to require more grains, and that means more fertilizers and more farm equipment will be needed.

Cramer's theory was proven correct by the most recent crop reports, which were very bullish and showed a big drop in grain inventory levels. The reports also noted that despite higher prices, demand for grain remains strong.

Cramer said this means multi-year earnings growth for companies like John Deere (DE - Get Report), an Action Alerts PLUS stock, along with Potash (POT - Get Report), Mosaic (MOS) and Agrium (AGU - Get Report).
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AGU $82.53 0.00%
DE $78.27 0.00%
KSS $40.81 0.00%
MO $59.97 0.00%
POT $15.42 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs