Jim Cramer's Best Blogs

NEW YORK ( TheStreet) -- Jim Cramer fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:
  • Apple's possible cash plan; and
  • quality energy picks.

Click here for information on RealMoney, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.


Maybe Apple Has a Cash Plan

Posted at 7:01 a.m. EDT on Friday, Feb. 8

Maybe everyone has Apple ( AAPL) wrong, everyone except someone deep in the bowels of Apple who has a plan, a plan to take over the world, or at least the television world.

Hear me out. One of the main tenets that Steve Jobs drilled into his colleagues heads is that they must always strive to have the superior product to everyone else's. They must always be offering something that you secretly dreamed of, so secret that you didn't even know it yet yourself.

What's one thing we all want but we can't seem to dream about it because it seems so impossible? How about a beautiful device, one that is whatever size we want, that has a high-resolution screen, perfect sound and can turn on or store whatever programs we want with a simple audio command.

The device is your phone, it is your personal computer, it is your entertainment center. It is all centrally wired in the cloud to make it so you can control it from anywhere.

And, most importantly, what if it is cheaper and better than what you have now. Right now you pay for a box, you pay for a remote, or two or three, you pay for a cellphone, you pay for cable, including many programs that you will never want or need, and you often have to pay multiple organizations for multiple features.

What if Apple offered it all in one lower, easier-to-read bill.

What if Apple were your cable company? What if Apple were your telephone company? What if Apple were your TV and cable company? What if Apple were your information technology and entertainment company?

Think of it like this. No company in the world has the cash to build out a new network from scratch, except for Apple. No company in the world can go buy CBS ( CBS) when Sumner Redstone moves on, or Fox when Rupert's no longer around, or Disney ( DIS) for that matter. Time Warner ( TWX) could be up for grabs. Or, let's just scale it down and have Apple buy Dish Network ( DISH).

None of these are absurd. Disney could be bought at a 50% premium to its current price and Apple still would not need to borrow money. CBS is a year's worth of cash. When News Corp ( NWS) splits into Fox and publishing, Apple can buy it and still have $800 billion left to pay out some dividend that gets Einhorn off its back. Time Warner would eat up a similar amount.

Apple could partner with Verizon ( VZ) on Fios, just write them a check. Hey, they split Verizon wireless with Vodaphone. Why not split Fios with Verizon? Think about it. The telco giant gets no real credit for running Fios throughout major portions of this country. Why not cut Verizon a check for $65 billion now that it is built out and take half. Verizon couldn't be unhappy with that. Its whole equity is valued at only twice that.

Or, maybe, just maybe, Apple spends a $32 billion (again, chump change) and pays Dish Network $33 billion, a double from the current price and then takes the rest of the money and makes sure the satellite feed is good enough for voice and data and then gives you a package that has what you want for say half of what you are paying now?

Wouldn't Congress want that?

Wouldn't you want that?

Maybe the issue with the challenge from David Einhorn is that it is just too pedestrian.

We have been thinking that CEO Tim Cook can't roll the cable companies the way Jobs rolled the record companies. But maybe because Apple and Apple only, has the cash to do all of these initiatives, it just doesn't matter.

Maybe, David Einhorn, maybe Apple snickerers, cash is still king. And the king lives in Cupertino.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AAPL.


Stick With Quality in Energy

Posted at 6:10 a.m. EST on Thursday, Feb. 7

It happened again. Another master limited partnership secondary and another win.

This time it is Enterprise Product Partners ( EPD) with an 8-million-share secondary priced at $54.56, a deal where about a dozen execs and board members so far have filed that they participated in, all with sizable amounts.

Of course the money will be used to pay down debt so the company can expand once again.

Enterprise Product Partners may be among the shrewdest oil companies in the land. It has major pipe coming in and out of all the important shales: Eagle Ford, Permian, Haynesville, Barnett and Marcellus. It is the pipeline company that has just about the best exposure to the huge petrochemical refineries that crave the natural gas liquids feedstock.

It transports an astounding 4.3 million barrels of natural gas liquids, oil, refined product and petrochemicals a day. And it pays 66 cents per unit each quarter, just giving you a 6.5% increase.

Like many of the mlps, Enterprise can't lay down pipe fast enough, even as its vast network would seem to have pretty much every important field but the Bakken covered.

Enterprise is the outfit that with Enbridge is trying to alleviate the Cushing glut that is causing the bizarre dichotomy between the low West Texas price and the high Brent price. These two companies are already pumping 400,000 barrels a day out of Cushing using the Seaway pipe, which, if you recall, used to go the other way but now that there is so much oil going into Cushing there's no room for the stuff. But there's so much more oil that Enterprise is expanding that pipe at a voracious pace.

These master limited partnerships are notorious issuers of stock. EPD is only about a point-and-a-half off of its high and it did trade down to $49 from $55 not that long ago on the usual scare that Congress would change the tax status of the company.

But I think it's still a decent entry point to get some of this 4.79% yielder. I would put on half and then hope it goes to a 5% yield through price depreciation.

Keep in mind this is the Big Daddy of all of the mlps at $50 billion. It will sell down if another big mlp offers stock. Still, it is the highest quality and has the biggest opportunity of all of them right now, ven bigger than Kinder Morgan ( KMP) and certainly more than Energy Transfer Partners ( ETP), even as ETP yields 7.7%, Trust me, I learned the hard way that the yield cannot make up for the price depreciation when the company isn't boosting the distribution or is as poorly run as ETP.

Stick with quality. It's obvious that the insiders sure are. Who am I to say they are wrong? I just hope you get a chance to buy it underneath their price.

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