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: A Slumbering Market

He added that while low prices are bad for natural gas producers, investors must always keep in mind that low prices are great for utilities and those that use gas, like the chemical companies.

Lightning Round

In the Lightning Round, Cramer was bullish on American Capital Agency (AGNC), Prospect Capital (PSEC), Kelly Services (KELYA), Express Scripts (ESRX) and CVS Caremark (CVS).

Cramer was bearish on Caterpillar (CAT) and FirstEnergy (FE).

Executive Decision

In the "Executive Decision" segment, Cramer sat down with Randy Foutch, chairman and CEO of Laredo Petroleum (LPI - Get Report), an independent oil and gas producer that's expected to grow its oil production by 25% this year. Laredo came public in December 2011 and is trading only slightly above its initial IPO price.

Foutch said the new horizontal drilling technologies have fundamentally changed the energy business in America. He said that we've always known that shale formations were in areas like the Permian basin because previously they've had trouble trying to drill past them. But now, he said, wells came be drilled horizontally into these formations and stimulated to produce more oil than the "easy" oil that laid beneath them.

Foutch said Laredo purchased its first land rights in 2008 in an area where only one well stood. Today, he said, there are 35 to 40 wells in that area and all are performing very well.

When asked about the company's expansion plans, Foutch said Laredo remains very disciplined. He said the company has many options for financing its growth including joint ventures, public financing and the debt markets, which means it is not capital constrained, but the company is still taking a slow and sustainable path towards expansion.

Finally, when asked about where he sees the price of natural gas in the future, Foutch said the industry is finally able to bring enough supply to meet just about any demand, so he expects prices to increase but not as fast, nor as volatile, as they have in the past.

Cramer said he's a fan of Laredo as the oil and gas revolution marches on.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer pondered the question of whether to buy or not to buy Dell (DELL). His conclusion? It all depends on price.

Cramer said that $15 is the most a deal to take the company private could achieve, leaving little upside for anyone who bought into the stock now. But if there is no deal, shares could easily fall back to $11 a share as there's little earnings momentum without a deal.

Cramer's advice: Sell the stock at current levels and buy it back at $10 if a deal falls through.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

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

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

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC
At the time of publication, Cramer's Action Alerts PLUS had positions in AAPL, ABT.

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.
3 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
DELL $0.00 0.00%
ABT $38.49 1.00%
ABBV $62.33 1.40%
LPI $12.59 12.00%
AAPL $93.21 -0.44%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs