This Day On The Street
Continue to site right-arrow
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 Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Jim Cramer's 'Mad Money' Recap: Tesla Didn't Execute

That's why deals like Twitter will work, Cramer concluded. Twitter, like all the other media outlets other than print, has been able to show steady growth quarter after quarter.

Executive Decision: Gary Evans

In the "Executive Decision" segment, Cramer spoke with Gary Evans, chairman and CEO of Magnum Hunter (MHR - Get Report), the oil and gas exploration and production company focused on the Bakken, Marcellus and Utica shale regions of the U.S. Shares of Magnum are up 180% for its lows in April.

Evans commented on his company's earlier accounting irregularities by calling the incident the most scary period of his life. He said Magnum was not the first company to fire a "top four" accounting firm, but when new auditors arrived the company was quickly given a clean bill of health and the issues are now in the past.

When asked about valuations, Evans agreed with Cramer that measuring smaller oil producers on an earnings multiple doesn't make a lot of sense. He said using the company's net asset value is a cleaner metric to use. That's especially important given how much Magnum and other drillers' costs have plummeted in recent years. Evans said it used to cost $9 million to drill a well and bring it online, but now that cost is just $6 million, making their returns off the charts.

Finally, when asked about natural gas, Evans said he remained bullish over the long term on natural gas given how cheaply the U.S. can produce it and how valued the commodity is around the globe. "Nothing comes close to the Marcellus," he concluded.

Executive Decision

In his second "Executive Decision" segment, Cramer spoke with Scott Sheffield, chairman and CEO of Pioneer Natural Resources, which delivered disappointing production growth on Monday, prompting an analyst downgrade and a 5.6% slide in the stock today. Shares of Pioneer are still lip 86% for the year.

Sheffield said that despite production ending slightly below plan this quarter, all of Pioneer's wells are producing more than expected and the estimates for how much oil his company can recover are also heading higher. He noted that the Wolfcamp basin where Pioneer is based is now the largest field in North America and the second-largest in the world, behind only Saudi Arabia. The estimates for Wolfcamp will exceed 50 billion barrels of recoverable oil, Sheffield said, and may approach 75 to 100 billion over time.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
NPSP $45.97 0.02%
MHR $2.64 0.00%
PXD $152.52 0.00%
AAPL $128.46 0.00%
FB $78.97 0.00%


DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs