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Cramer's 'Mad Money' Recap: Market Indecision (Final)

Oil and Gas Play

In a second "Executive Decision" segment, Cramer spoke with Kelcy Warren, chairman and CEO of Energy Transfer Partners (ETP - Get Report), an oil and gas pipeline master limited partnership with a juicy 7.9% dividend. Shares of Energy Transfer Partners are just off their 52-week lows after the company delivered a 31-cent-a-share earnings miss during its most recent quarter.

Warren explained that the earnings shortfall was due in part to what they called "basis," the cost differential of oil and gas in different parts of the country. He said with basis being extremely low, there's simply less money to be made moving oil from place to place. Warren also pinned the weakness on weak seasonality.

Warren was bullish however, on the company's propane business, which he said is also seasonal and driven by the economy. He said his company is committed to its propane business in part because of its low tax basis.

When asked about liquified natural gas, Warren explained that Energy Transfer Partners will be making liquified products a much bigger part of its business going forward. He said our country is gearing up to become an exporter of natural gas, and as that happens, his company will likely need to offer more equity to make it happen.

Finally, when asked whether Energy Transfer's dividend is likely to be cut, Warren said absolutely not. Warren said he's extremely disappointed that his company has not been able to raise distributions as of late, but they're certainly not at any risk of being cut.

Cramer said Energy Transfer Partners is a buy and investors should own it.

Lightning Round

Cramer was bullish on Chesapeake Energy (CHK - Get Report), Booz Allen Hamilton (BAH - Get Report) and Kinder Morgan Energy Partners (KMP).

He was bearish on Imperial Sugar Co (IPSU), Micron Technology (MU - Get Report), Crestwood Midstream Partners (CMLP) and VeriFone (PAY).

Sensible Merger

In his "No Huddle Offense" segment, Cramer said that everyone knows that the lumber, packaging and paper business is awful right now. So what does International Paper (IP) see in Temple-Inland (TIN) that made it want to start a hostile takeover of the company?

In a word, Cramer said synergies. He said despite the fact that the paper business is awful, building products are downright dreadful and corrugated products will be in less demand as the economy ships less, International Paper is looking towards the long term, and sees a place where synergies can be attained and numbers can be boosted. Plus, said Cramer, it also sees a regulatory environment where the merger is likely to be approved.

So while the markets may be focused on the day to day, in the long run, Cramer said this paper merger makes perfect sense.

--Written by Scott Rutt in Washington, D.C.

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To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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For more of Cramer's insights during the Lightning Round, click here .
At the time of publication, Cramer was not long any equities mentioned.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.
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CMLP $0.00 0.00%
KMP $102.03 1.98%
BAH $27.57 0.00%
CHK $6.87 0.00%
ETP $35.43 0.00%


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