Cramer's Mad Money - Home on the Range Resources (2/10/10)

Includes: BHP, GS, JPM, MT, ROST, RRC
by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Wednesday February 10.

CEO Interview: John PInkerton, Range Resources (NYSE:RRC)

Cramer likes natural gas stocks in general, but he gave special attention Wednesday to Range Resources (RRC) which has risen 200% in 5 years and 2,500% for the decade; its performance is stronger than that of all its competitors. Range Resources was the pioneer in Marcellus shale drilling and is expected to continue to increase its reserves and production growth.

Pinkerton says Americans need to become more aware of the benefits of natural gas. If reforms embracing natural gas aren't in place soon, America will have to export its valuable natural gas while paradoxically, importing oil from its enemies. Natural gas is so cheap and plentiful that it is no longer necessary to create a pipeline transporting the fuel. The country has enough natural gas for its own needs and to export to countries like Japan. Cramer is bullish on Range Resources.

Ross Stores (NASDAQ:ROST)

It isn't the size of the dividend that matters, but the amount of the yield increase, according to Cramer, who discussed Ross Stores' (ROST) 45% boost to its dividend. This is the largest yield increase so far this year, and with 2010 earnings predicted at $3.88 per share and $4.33 for 2011, Cramer is confident Ross can more than cover its dividend payout. Ross Stores is a regional to national story, and has 1,000 stores in 27 states. It wouldn't be difficult to double this number, and with consumers increasingly looking for bargain shopping, Ross Stores' merchandise and prices are in keeping with the frugal mood of the country. The stock is just one point off its 52-week high, but has a 14% growth rate and a multiple of 11. Such a large dividend increase is a company's vote of confidence in itself, and Cramer thinks this confidence in Ross Stores is well-deserved.

JP Morgan (NYSE:JPM), Goldman Sachs (NYSE:GS), BHP Billiton (NYSE:BHP), Arcelor Mittal (NYSE:MT)

Stocks seemed to be in dangerous territory early on Wednesday, but bounced back; the Dow ended the day only 20 points down compared to initial decline of 90 points and the S&P 500 regained 0.8%. What reversed the decline? Washington and China, two forces bringing stocks down lately, seemed less threatening. Obama was nearly forced to admit in an interview that bonuses for JP Morgan's (JPM) Jamie Dimon and Goldman Sachs' (GS) Lloyd Blankfein were no more unjust than extravagant pay given to sports stars. While China's limits on stimulus spending has many worried, BHP Billiton (BHP) commented that consumption of metals in China is expected to remain strong and Arcelor Mittal (MT) reported healthy demand.

Increased U.S. stimulus money for job-producing infrastructure projects is also good news for American stocks. What is harder to know is if this break from stock battering is a sign that good times are here or is merely a respite in the midst of a long-term decline.


Seeking Alpha publishes a summary of Jim Cramer's stock picks every day including: Mad Money Recap, Lightning Round and his Stop Trading! Picks.

Get Cramer's Picks by email-- it's free and takes only a few seconds to sign up.

Seeking Alpha is not affiliated with Jim Cramer, CNBC or

About this article:

Want to share your opinion on this article? Add a comment.
Disagree with this article? .
To report a factual error in this article, click here