Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Thursday November 18.
One takeaway from Green Week is the "soul crushing revelation" that saving the environment may not be so good for profits. Coal is still king, like it or not, and Cramer declared that he would put a maximum security sell block around renewable energy stocks, particularly ETFs for wind, solar or alternative fuels. "These ETFs are dangerous...these pieces of paper have a James Bond license to kill your portfolio."
Cramer prefers companies that are "conservationist by coincidence" and "do well by doing good." Notable among these are HVAC companies which create more energy efficient heating ventilation and air conditioning systems. Honeywell (HON) is Cramer's favorite play in this space which makes autos and other vehicles more energy efficient. The company also a pioneer in smart grid technologies. Replacing regular equipment with Honeywell devices can save energy consumption by 20-30%.
CEO Interview: John Pinkerton, Range Resources (RRC)
Natural gas prices have been falling with excessive production, but Cramer thinks the fuel is getting ready to reach a bottom at $4. This is good news for Range Resources (RRC), which is the "inventor" of Appalachia's Marcellus shale that natural gas companies compete for. Range Resources is a super low cost producer of oil as well as natural gas. "Has Range Resources' time come again?" Cramer asked.
John Pinkerton discussed how the company has allayed fears over the controversial fracking method of extracting natural gas. He has demonstrated that the procedure is 99% free of chemicals. Pinkerton thinks the government will get behind natural gas, and sees a natural-gas-friendly transportation bill on the horizon, as well as an increase in fueling stations for natural gas. "Think long-term. I like the stock," said Cramer.
Salesforce reported an "unbelievable quarter" and is literally revolutionizing software with cloud computing. The company is high growth, high multiple and is inventing a brand new industry. All this while operating at 1/10 the size of Oracle (ORCL). Salesforce beat earnings estimates with the fastest growth quarter in 7 years. The stock was at its 52 week high and ran up an additional 15 points. The company saw revenues grow 30% year over year.
Marc Benioff says his company is performing better than Microsoft (MSFT) and Oracle (ORCL) because CRM embraces new technology and creates products that facilitate social networking. With Salesforce's products "You can go social, you can go cloud, you can go mobile." Salesforce's Chatter is the fastest growing new product ever.
Cramer thinks Salesforce is a buy.
If we could have seen through the smokescreen of negativity early this week, just think about how much money we could have made," said Cramer. The "fog of panic" kept investors away from the "juiciest gains we've seen in ages." On Tuesday, the luck of the Irish seemed to run out, Chinese interest rates were causing problems for stocks, retail stocks were reeling over rising cotton prices and the Dow fell 178 points. If investors had bought F5 Networks (FFIV), Deckers (DECK), Amazon (AMZN), Netflix (NFLX) and Salesforce.com (CRM) on Tuesday, they would have made $5 in FFIV, $17 in CRM, $4.50 in DECK and $7 in NFLX.
Cramer urged viewers not to be frightened off by bearish macro stories, which are often not relevant to individual companies or their stocks.
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