Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Monday June 23.
Offshore Fears Unfounded
Cramer was critical of the fear of allowing offshore drilling because of “one oil spill” in 1969 (the Union off-shore oil spill off of Santa Barbara California); “We may not have the technology for clean coal, but we sure do have the technology for clean drilling, clean pumping and clean extraction of oil,” Cramer said. Offshore drilling is cleaner and safer than transporting oil on a tanker, Cramer added, and lifting restrictions will make around 18 billion barrels of oil and 76 trillion cubic feet of natural gas available. He said he is devoting the rest of the week to discussing clean offshore drilling companies.
Compagnie Generale de Geophysique-Veritas (CGV)
CGV is the only pure play on Seismic mapping for offshore drilling, and if Congress lifts restrictions, the company will see a significant upside. CGV’s 4-D technology controls 60% of the market, and the company is expecting more business from Brazil and in the Gulf of Mexico. CGV has a huge backlog and is “the cheapest stock left in the group.”
CEO Wall of Shame: James Keyes Blockbuster (BBI), Circuit City (CC)
Can one mistake turn a stellar CEO into an inductee onto Mad Money’s Wall of Shame? An unwise acquisition can make the difference between a transformational CEO to one who is wrecking the value of his company. As late as March, Cramer was bullish on Blockbuster, since CEO James Keyes was tackling debt, raising prices and transforming the company from a renter to a seller of movies. However, the stock is down 24% after the announcement that it plans to acquire Circuit City and pay a premium for a dying company; "These are two different companies in two different businesses," Cramer said. "There aren't any cost savings here." If Keyes were to scrap this meaningless acquisition, the stock would see a significant upside. However, he wouldn’t count on this, but would stay away.
Mad Mail: CSX (CSX), Tidewater (TDW)
Cramer told one viewer that if CSX’s CEO Michael Ward is forced out, the stock would see a short-term gain but would lose a third of its value in the long term, because the hedge funds which are trying to push Ward out “know nothing.” Of Tidewater, Cramer said although the company missed its quarter, “a rising tide lifts all boats.”
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