Executive Decision: Nick Akins
For his second "Executive Decision" segment, Cramer checked in with Nick Akins, chairman, president and CEO of American Electric Power (AEP), the high-yielding utility with a 4.2% yield that just delivered a three-cents-a-share earnings beat on better-than-expected revenue.
Akins said he's very optimistic about the future after the company posted positive results in all three areas of its business: residential, commercial and industrial. That's the first time all three areas have grown since 2007, he noted.
Among the bright spots for AEP are the oil, gas and chemical industries, but Akins said all industrial growth always creates additional opportunities as commercial and residential growth follows those new factories and plants.Cold weather also played a factor in AEP's results, Akins said, because while extremely cold weather may be bad for consumers, it produces dramatically higher revenue for utilities. When asked about the changing utility landscape, Akins said AEP continues to spend money on the right things, including rehabilitating the power grid and preparing for most phasing out of coal-fired power plants in 2015. Cramer said AEP continues to deliver consistent earnings for shareholders.
Cramer's HomeworkIn his "Homework" segment, Cramer followed up on a few stocks that stumped him during earlier shows. He said Raptor Pharmaceuticals (RPTP) has flown too far, too fast and he'd wait for a pullback. Cramer said video chip maker Ambarella (AMBA) was also a wait-and-see stock that needs a pullback before pulling the trigger. When asked about Nordic American Tanker (NAT) and Chesapeake Energy (CHK), Cramer said both these stocks are "on hold." Cramer said he's also backing away from Canadian banks such as Royal Bank of Canada (RY) and Bank of Nova Scotia (BNS) because the emerging markets continue to struggle. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- 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
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