Cramer's Mad Money - A Boone to Pick with Obama's Energy Policy (1/20/10)

by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Wednesday January 20.

Special Guest: T. Boone Pickens

Legendary investor T. Boone Pickens and Cramer share a common passion - natural gas. Mad Money viewers are familiar with the much-repeated thesis of natural gas's advantages; it is 50% cleaner than coal and has 30% fewer pollutants than petroleum. The United States has plentiful reserves of the fuel and implementing natural gas as an energy solution could create thousands of jobs. T.Boone Pickens was critical of the government's focus on the healthcare debate, when solving the problem of dependence on foreign oil should be the first priority. Not only does this issue touch upon environmental concerns and the problem of unemployment, but oil addiction is a security hazard; Pickens noted the irony of mass imports from countries which are too dangerous for the average American to even visit.

T. Boone Pickens has invested considerable money and time to convince the public that natural gas is the right solution. The United States has twice as much natural gas as Saudi Arabia has oil, and enough to fulfill the nation's needs for the next century. Pickens' proposal would put 8 million large natural gas-driven vehicles on the road. This reform alone would create a significant number of jobs and would reduce foreign oil imports by half. He hopes to see some type of natural gas legislation in place by Memorial Day.

A Fine Hermance: CEO Interview, Ron Hermance, Hudson City Bancorp (NASDAQ:HBAN)

Why has Hudson City Bancorp (HBAN) lagged behind its peers when it has been performing well consistently? Even after it received TARP money the stock was pretty stagnant, and this bank, unlike many others, steered clear of bad loans and other financial gimmicks. One explanation, said Cramer, is the banks that are favored right now are the ones that have come back from the dead, while the steady performers seem to be penalized for consistency.

Ron Hermance believes in his company's record of performance; Hudson City wrote off only 0.25% of its loan portfolio last year and has written $9 billion worth of mortgages in the last year, most with generous down payments. In the last decade, the bank has risen 583%. While Hermance sees a decline in the near future for delinquencies and a return of property sales, he thinks the government can do even more for homeowners who are not coping.

The Kids Are Online: Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG), Electronic Arts (ERTS), Akamai Technologies (NASDAQ:AKAM), Amazon (NASDAQ:AMZN), Cisco (NASDAQ:CSCO), Qualcomm (NASDAQ:QCOM), Ciena (NASDAQ:CIEN), Skyworks (NASDAQ:SWKS), Xilinx (NASDAQ:XLNX), ON Semiconductor (ONNN), American Tower (NYSE:AMT), Crown Castle (NYSE:CCI), SBA Communications (NASDAQ:SBAC)

On a down day like Wednesday, Cramer suggests buying on weakness, especially on long-term market trends. He cited a New York Times article that said kids between the ages of 8 and 18 spend 11 hours a day online, pretty much every waking moment when not in classes. Cramer says this confirms his thesis on the mobile internet tsunami, which has only just begun. He recommended Apple (AAPL), Google (GOOG), Electronic Arts (ERTS), Akamai Technologies (AKAM), Amazon (AMZN), Cisco (CSCO), Qualcomm (QCOM), Ciena (CIEN), Skyworks (SWKS), Xilinx (XLNX), ON Semiconductor (ONNN), American Tower (AMT), Crown Castle (CCI), SBA Communications (SBAC).

Mad Mail: Analogic (NASDAQ:ALOG), Neutral Tandem (NASDAQ:TNDM)

Cramer revisited stocks that stumped him during other programs. While he thinks the story of medical and security imaging stock Analogic (ALOG) fits in with his security theme, he thinks the stock is too dependent on hospitals and saw an artificial lift on the holiday bomb scare. Neutral Tandem (TNDM), whose technology allows phone companies to send traffic to other carriers has issues with competition, and although the company says it will meet 4Q expectations, the Street is demanding more from the company. Cramer would sell TNDM on any strength.


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