>> dr. jay? >> community health. buy on that name again. >> gordon? >> out the space. prices are going up. we like the stock. >> ebay long. >> guy? >> western digital. >> see you tomorrow again at 5:00. my mission is simple. to make you money. i'm here to level the play r field for all investors. there's always a bull market somewhere. and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people wan to make friends. i'm trying to save you money. my job is not just to entertain you but educate you. call me at 1-800-743-cnbc. you, you have every single right to overpay for a stock if you want to. in fact, you can pay twice, three times what anyone thought was right even a few weeks ago. no problem with it.
even as it isn't certainly my style to radically overpay which is why i'm not going to sweat how the ipo of year, twitter, traded today. otherwise soggy session. dow gave up 115 points. s&p drop 1.32%. nasdaq declined 1.9%. you most likely all know, the company people thought would open at $22 a share a few weeks ago which opened at $45 and change today. you watched the saga today with a jaundiced eye as i did. it was imperative to put the kpan's stock within the valuation confines of the other industry in industry, social mobile and cloud space. as someone schooled in relative evaluation, meaning how does twitter fit in with the rest of the cohort even if the cohort has scarcity value, i arrived at a $28 price in the cool of the night that i felt wasn't prudent to go above. because that's what the universe of facebook, yelp and cloud
plays yielded as being reasonable. i reiterate buying the stock up here is not prudent because of the kind of analysis i've been taught and almost always done me right. here's how that analysis worked. take a look at the revenue growth and potential growth of the earnings. there are no earnings here. we match it up against the prices of the other stocks in the industry to reach the conclusion about what's in line and what isn't. this is not an idle exercise, people. if we look at the stocks of kimberly clark, colgate and general mills, traded 18 times earnings but clorox, slower growth characteristics traded at 25 times earnings. you know what we could do? >> sell, sell, sell. >> clorox and buy the others in the group because it would make no sense. they are too similar to accept the rogue nature on one particular stock in the cohort. each industry has its relative model of what you would pay for it, the industrials, the banks, you name it. f if you have one outlier that sells for more than the others, something's up. that's a sign of danger and i've
got to throw the red flag. the red flag is being thrown for twitter. when you see your tweets on the ticker below. many are enthusiastic, much more than i am about the stock. i am very enthusiastic about the company and product which diverged today from the stock. i've looked at the pricing histo history of all these kinds of ipos. yelp, pan dora, groupon, zynga. one year later most of them were lower, dramatically lower for the most part. patience and prudence dictate buying a stock like twitter lower. if i were still running money professionally, i tell you what i would have done. i would have sold every single share, not long after the stock opened. that's right. a few minutes after. because i would have said it was overvalued, on my historical comparison work which is really all i have. yes, today i would have taken the money, steven miller style, and run. why am i not jumping up and down
telling you you're in big trouble if you own it? why aren't i talking about the double bubble toil and trouble you're going to find yourself in and how you're going to get hurt? let me give you the possible justifications. i have enough caveats for why this out of the gate move in twitter might not be so dangerous for you. for me, you know, i got to say i'm -- i have my rules. you don't follow my rules. after spending the last few weeks yapping about the relative evaluation, predicting a few weeks ago, i was being viewed, by the way, as crazy to ponder such a high price, i can safely say that everyone who bought it today has officially as they say in law school, come to the nuisance. you know you overpaid and you didn't care. that means caveat emter. you've been warned and it didn't bother you one bit. as i said at the opening, there is free will. you have every right to overpay for a stock. believe me if you bought it today plain and simple, you overpaid.
second, unlike the disaster that was facebook, the system totally worked. took an hour and a half for the new york stock exchange to open the stock. the stair of nyse euronex was overseeing the process. the goldman sachs banker behind the deal, a seasoned pro was there to make sure it went off without a hitch. it did. unlike facebook the buyers and sellers met in an orderly way. everyone who wanted stock got in. i like that. i don't like deals where only a sliver of the total stock is offered which creates that pop. that leads to many flippers and long-term holders who have to reach horribly to buy the rest of their position in the open market, competing furiously with retail investors to so. six months from now, more stock will be released by the company and a more natural float will be established along with a better price than you got today. beat the horrendous facebook deal. institutional buyers who knew it was faltering were canceling. i hate that deal. every bit of it.
it turned out it was, a huge number of people got turned off by the whole market because of facebook. twitter did a hot deal, not as best as -- third aly i'm a huge believer i love a product, if you've done the homework and sfig year out the valuation and the trajectory of the earnings in the outyears, 2017, 2018, you can buy the stock. my first part of the longic is trumping the second part. as i found out today when i interviewed sir patrick stewart. he came close to admitting he's addicted to typing in 140 characters and reading 140 characters of others. i'm renaming him sir hash tag. which brings me to my fourth and final reason why i'm not perturbed with twitter's firstt. this is a company that is disruptive and changed behavior in this country and changing it in the world as surely as televigsz did and the personal computer. the cell phone.
smartphone, that is. it's a product like facebook with user generated content. it is still in its infancy with what everyone respecrespects. one day twitter will with exactly worth what it's selling for, like my charitable trust bought facebook stock in the mid 20s. li perhaps twitter can find a way to make huge amounts of money. maybe pepsico and unilever and fedex and mcdonald's. why not, it could happen? most important, perhaps the opportunity is so great for twitter that twitter's worth $30 million right now, really. maybe twitter is so exceptional, so beyond the four walls of the existing stock canvass, it's reasonable in some universe this thing might be worth what you paid for. i thought apple or microsoft
should have bought netflix to get cloud exposure. i thought apple should have paid $20 billion to twitter just a few months ago to get this unique property and become instantly social to complement its mobile business. they were wrong. a much better buy than the stock the company keeps buying or the dividend. they paid for a fraction, they could have gotten twitter. what's all that buying back done anyway? seen the stock? if apple shelled out that money for twitter, i bet the stock would be at $600 instead of the slow boat course. if microsoft had done so, steve bamer could still have a job and there might be more to twitter than you otherwise expect. let's not forget perhaps this is another amazon. or a tesla, circa, like, last week. a cold stock where we don't even care about profitability but care the market is so huge that they get on the market. here's the bottom line. twitter is outrageously expensive. i understand the love. in my heart of hearts, i look at twitter's stock as i look at the stock you can buy in the green
bay packers. not meant to trade. it's meant to let you be part of the twitter verse. feel free to overpay. feel free to love twitter. the stock. let's just hope it's not unrequaint. josh in kansas. josh in. >> caller: hey, boo-yah from kansas, jim. >> boo-yah. i love kansas. i think university of kansas could go all the way. go ahead. >> caller: i will see. looking at pwld. buffalo wildwings. >> well, you know, there's a lot of stuff going on today by people who seem to have buyers remorse. they say, wait a second, maybe we paid too much and buffalo wild wings was part of that. it's called the whole foods effect. i believe in sally smith. i recognize the stock is up a lot and see people taking a profit. no one's ever gotten hurt taking a profit. denise in new york, denise? >> caller: hi, hi, jim. i've owned activision blizzard in the past and made a profit. they reported earnings today.
i wonder if it's a good time to reinvest. >> you know, i think it's fine. i mean, look, this stock -- these are hit-base stocks. and i don't like hit-base stocks as much as i like, say, time warner which just delivers consistent hits or cbs, consistent hits. those i like. i will probably when the smoke clears like disney which i think is doing a terrific job. as i said, last friday, disney would trade down ahead and whole foods would trade down ahead and wait until the smoke clears. i got the smoke from a distant fire right now in my eyes. it's the same way investors feel about twitter. call it bird of a feather flock together and tweet. "mad money" will be right back. coming up, forgetting something? twitter sure had a good day, but things weren't so swell for the rest of the market. how long will the selloff last? and what can you do to protect
yourself? cramer's on the case. and later, french fried? pretzel burgers weren't enough to satisfy wall street's hunger for growth. and despite better than expected earnings, wendy's got cooked in today's take. is this just an opportunity to take a bite? don't miss cramer's exclusive. plus, oil slick? big shot eog resources may have beat the street, but the stock cooled off in spite of its surging profits. could concerns over crude cause a further selloff, or should you use the decline to fill her up? cramer drills down with the ceo. all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #nad madtweets. send jim an e-mail to email@example.com or give us a call at 1-800-743-cnbc.
but they didn't fit. customer's not happy, i'm not happy. sales go down, i'm not happy. merch comes back, i'm not happy. use ups. they make returns easy. unhappy customer becomes happy customer. then, repeat customer. easy returns, i'm happy. repeat customers, i'm happy. sales go up, i'm happy. i ordered another pair. i'm happy. (both) i'm happy. i'm happy. happy. happy. happy. happy. happy happy. i love logistics.
wait, i feel like we're forgetting something today. oh, yeah, that's right, there's a whole other market of 6,000 stocks that aren't twitter. we saw a roller coaster of up, then down some more in a pull that could only send shifers over everyone who didn't get twitter at $26. a throwback to yesteryear or the last couple years. today the u.s. economy was one piece of the puzzle. most of the weakness start eed overseas else wrr. qualcomm and whole foods brought their own type of jaundice throughout the day, we have the bubble talk writ large because of twitter. that's a terrific reason to sell. the market got a twitter hangover it wasn't able to get over. first, the big industrials that have been all the rage lately came unglued today courtesy of rumors that china is building up a head of steam. you know what's going to happen? the chinese government is going to tighten as soon as this weekend. i am not kidding.
slow the economy. i don't know how much credence to put into this theory, but remember, doesn't matter how much cree zedence i put in, evee is selling what goes into china and will continue to do so tomorrow. don't forget the marginal prices are set by demand in china. not here. far more important today was an interest rate cut by the european central bank to ensure europe's economy don't contract. the europeans have long memory and in 1920 germany caught the deflation bug. there wasn't enough money in the system to support any economic activity. that then led to hyperinflation. germany turned on the deutsche mark printing presses and destroyed most of the nation's saving base. running around with wheel barrels full of it. they view the deflation, hyperinflation cycle as the rise of the hitler and nazi party and do anything to avoid a repeat of what occurred. this move caught some people off
guard. i can recall people saying just this very morning when i got up at 3:30, we're waiting for a surprise rate cut. hmm, a few hours before we got the surprise rate cut. the dollar shot up which caused dollar denominated commoditieses to get crushed. it spurred decline in oil. the question will be independents. the ones who doing fabulously. eog. the reversal in fortunes can be a buying opportunity for the stocks. i figure tomorrow is the day we start getting serious down grades of the independent oil companies i like. better prices coming. but there's also some unnerving action away from the commodities. for example, there's a lot of chatter of a strong employment number tomorrow and instant taper of fed bond buying. we'll know shortly if that's a case. we have a rout in tech. while qualcomm should have some spillover, i'm calling it a tad missed upon. if you believe in the power of twitter, you should believe in all the power of the social and
cloud stocks. people are presuming a worldwide slowdown in tech spending bauds of qualcomm, as if this is the ultimate bellwether of the group. i don't think it is. people get scared when they see a company they revere. qualcomm is however incorrectly revered and it's getting them to bail on so-called lesser companies. the market is not immune from what's going on with whole foods. a terrific growth company assumes the economy is getting weaker and the sales are not that hot. we have to extrapolate and say, wait, i thought the economy was strong. maybe i'm wrong here. get me out. you also have a propensity to be reminded of the risk of earning high-growth stocks, big decline in whole foods demonstrate. why not take anything off the table? i saw a lot of this. >> sell, sell, sell, sell, sell. >> think of the analogous companies whole foods gives you. shouldn't we be a seller of starbucks? hanes celestial. they're very expensive stocks
that just now reported and shot the lights out. if they were down big today, they were down in sympathy, even if they shouldn't be down at all given the outstanding earnings we learned about. why shouldn't we sell chipotle? don't they have the food with integrity thing? whole foods, chi chtole, whatev. a company that should have been worth $14 billion, as valued two or three weeks ago, it traded at more than double. the top callers were out in full force when twitter opened at $45.10. now i am not a top caller. i hate the whole motion of okay, now that retail is in the pool, at last after this big run courtesy of twitter, i know it is time to sell, sell, sell. still, though, i heard it all day. all day. bubble, bubble, bubble. you can frame a justifiable mosaic to sell. first the stocks are all being smashed. tesla and solar city, two of the four most overvalued stocks
along with net politics and amston were whacked and whacked hard. that's been bubblicious forever. i think people who own highly valued stocks are selling other highly valued stock to buy this particularly highly valued stock. there's a sense the twitter ipo demonstrated insanity. not in twitter, itself, but insanity in the market as a whole. that's as good a reason to cash out as many. no bell goes off at the top. here's something you don't hear at the top, by the way. all right. you don't hear that. but people thought twitter was a pseudo bell. what do i think of all this? we have a lot of stocks that moved up a great deal. the market has pretty much been one way higher for months now. bellwethers like qualcomm and whole foods and unjustified strength in twitter, it's too compelling for many professionals to ignore. here's my bottom line. i'm looking for the stocks sellers are throwing away. in the end, there are stocks and companies who reported terrific earnings. my chart bl trust has been waiting to buy on a pullback.
i don't cut and run. i stop and evaluate. the trust was actually a buyer, not a seller. these multifaceted selloffs, keen on growth stocks, are always -- when they're happening, they always feel like the end of the word, don't they? they usually last three, four days. today feels like day two. particularly because the bonds are tame and interest rate have seemed to have gone higher. steven in new york. steven? >> caller: hey, jim. big fan. >> thank you. >> caller: question for you. pandora media. what's your strong term, long-term outlook, in lieu of apple iradio? seems like they came out with their numbers and listeners were good last month. >> pandora, i can't really opine, other to say people love pandora. i can't wait until sangza comes out. there are situations where people will pay anything for a stock and pandora is one of
those. how about waxe in new jersey? >> caller: hey, jim, my 10-year-old daughter, emma, wants to say something to you. >> sure. >> caller: beau, beoo-boo-boo-y. >> there's a kid with sense. what do you got? >> caller: talking about the social space, if you're playing something that's disruptive like that, if that's how you feel, you're not worried about evaluations. you're looking at the upside, aren't you? >> there are times that some people, not me, some people are willing to pay any price. linkedin is the game changer and own that business. i like linkedin. linkedin could be very cheap on -- earnings that came out two years ago. that's what's important. i believe in that. growing pains? we're seeing a selloff in growth stocks. you know what that means. pretty soon you're going to have to start hunting. after the break, try to make you more money. coming up, french fried?
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last year, totally on fire, rallying from $4 and change to $9 as of yesterday. you made a killing if you own wendy's, thanks to the hard work of a new ceo, emil brolick. they're in the process of refurbishing stores. earlier today mr. brolick showed me a redesigned spot, a place that's beautiful, and sampled menu items now and then just for research. company cleaning up the balance sheet, shifting more toward a franchi franchise-based model. we like that. the company reported this morning if you own wendy's today, you didn't make a killing, you got killed metaphorically onpy. i think this is a testament, frankly, to the power of expectation and what happens when expectations get too great. except by analysts, by the way. it doesn't matter what management will do at a certain point. how to execute is what wendy's does. it is the top of game in the quick serve business. so you know, let's not write this off yesterday. wendy's delivered better than expected numbers.
8 cents. thanks to better restaurant level margins. the stock went up a lot this quarter. same-store sales were a bit weaker than expected. the company modestly raised guidance for the year and didn't give a real forecast for 2014. all this caused the stock to get slammed. down 11.44% today. still up human for tge for the . is there buying opportunity in a stock that hand given you too many of those lately? let's talk to emil brolick, president and ceo of wendy's. welcome to "mad money." >> jim, how you? >> thank you, thank you for bringing our food and for having wendy's on. okay. we did -- i tried this delicious burger out today. i saw the beautiful new store. and to me, even though there was a glitch in the stock today, i don't think there's anything that was that earth shaking that happened in the quarter. >> we felt great about the quarter. comps up 5.9% on a two-year basis. when you consider, that's the
strongest two-year performance we've had since the first quarter 2005 eight years ago. you know, that's great. 170 basis point increase in margins. 17% increase. i consider a very solid quarter. >> i mean, i'm looking goldmgold m goldman sach's research. figures broadly disappointing given the high profile pretzel bacon cheeseburger. is this where the expectations were too high but the company delivered what they were supposed to? >> if you look at this in the context of others, this is a very strong report. >> let's speak broadly what's been happening with the company. lunch, thank you, again. >> saluabsolutely. >> there was a great trajectory from dave and the company and it fizzled, nelson gets involved and you get involved.
the investors got ahead from themselves but the turn is for real. >> absolutely. we're going through a total brand transformation. what i mean by that, we're touching all elements of the brand experience, so everything that the consumer experiences is going to stay a cut above for them, whether it's the employees in the restaurant, the friendlier employees, new uniforms, new packaging. the physical space. of course, the food. we're always going to be about the food. quality was our recipe in 1969. quality is our recipe today. also, we have a tremendous heritage of product innovation. dave was first in salads. dave was first in chili, baked potatoes, many products. this is a brand that put together 16 consecutive years of same-restaurant sales on the backbone of increases in innovation and i think we can see that performance again. >> okay, my wendy's, boarded up right now. when it opens again, what will it look like?
>> you know, we have 180 image activation restaurants open now. by the end of the year, we're going to have 300 open. okay? and our expectation is these restaurants, once they settle in, will average some place between 10% to 20% increase in same-restaurant sales. so, excuse me, step up in sales. and we -- every expectation that that will occur in your restaurant as well. >> at the same time i'm seeing commodity costs come down. >> correct. >> 2014 has to be a tailwind. >> yeah, you know, we think there will be quite a modest increase in commodities in 2014. we'll speak specifically about that and january 13th when we preannounce the 2013 and give guidance on 2014. >> okay. could you just tell me, i want everyone to know this. talk about patrick doyle, domino's. the delivery people
end up owning the stores. we talked about sheryl from kfc days. they're the franchisees, people
who worked behind the counter. the people i met today, the people who work at wendy's, how many are the people who have came up through the ranks and own their own stores? >> a huge percentage of them, jim. we have such invested equity on the part of our franchisees. i'm proud of them and the commitment they make to the wendy's brand. they're interested in growing the brand. they're the backbone of the brand transformation along with company operators. they drive this and put their capital into this and are very excited about it. >> how about cost of labor? with have affordable care act. a lot of people feel just the base level of labor after being steady for a long time might start going up in 2014. >> yeah, you know, that's definitely a possibility. but we're very excited about the growth and the brand. we feel when you're growing top-line sales on a consistent basis, we're going to be able to deal with any increases we see in labor overtime. >> let's go back to this a idea of innovation. i
told you i love this burger, i loved it from the day it came out. i read today it's so long,
pretzel burger. i know in the quarter in the last month of september, sales did tail off. was it people got tired of it and just, it's a novelty thing? you always have to refresh? >> they do like product innovation but they also like variety. so we have a bacon portabella melt on brioche coming in in the next few days. >> that's what i had. holy cow. >> it melts in your mouth. this product melts in your mouth, okay? and so that's going to be something that we see driving sales toward the end of this year. and you're certainly going to see pretzel bacon cheeseburgers and pretzel clubs come back in future. >> the overall nature of wendy's was always it's not mcdonald's, it's not necessarily panera, but the store i saw today, panera, ch chipolte. >> if you think about that in the context of quick casual restaurants like panera, the key thing here is we believe that
we're giving them, our consum s consumers, every bit that same experience but a dramatically lower cost point. >> right. that's really important. >> much bigger opportunity we believe. >> thank you, sir. okay. that's emil brolick. president and ceo of wendy's corp. listen, the stock went up a lot. it's been a huge winner. remember, it was at 5 1/2 five months august. profit taking makes a lot of sense. i think the story is multiyear. not several day. stay with cramer. ♪ ♪ so you can get out of your element. so you can explore a new frontier and a different discipline. get two times the points on travel and dining
>> announcer: lightning round is sponsored by td ameritrade. honor of throwback thursday and ipo, we took a look back at our twitter time machine. i sent my first tweet back if 2008 after quick math which i did in my head, i sent 17 tweets a day. i can't decide if i work or treat more. don't tell my executive producer that. anyway, now it is time, it is time for the "lightning round." on cramer's "mad money." what is that all about? >> buy, buy, buy. >> sell, sell, sell. >> play this sound and the "lightning round" is over. are you ready, skee-daddy?
time for the "lightning round," cramer's "mad money." let's start with jack in new york. jack? >> caller: boo-yah, jimmy. jimmy, you're my hero. hk. >> i'm tired of halcon. they have to get it together and meet production goals. that absolutely to have meet production goals. they're not. let's go to nick in ohio. nick? >> caller: boo-yah from ohio. >> boo-yah. >> caller: all right. tearo wireless. is it a keeper? >> you know what, i'm not -- you know, i'm not crazy about any of the component plays right now. i'm going to take a pass on that. let's go to brad in washington. brad? >> caller: hi, jim. enjoying your show. >> thank you. >> caller: seattle. throwing out a seattle seahawks russell wilson boo-yah to you. >> does he watch the show, you think? does russell wilson watch the show in i mean, preparation is everything with him. >> caller: good to know. so ticker symbol sbx. is it still oversold?
would you buy, hold, or fold? >> freeport, i don't like. it's overvalued. there are other plays in industry i think are cheaper. i'm not going to recommend that stock. let's two to raj in pennsylvania. raj? >> caller: boo-yah, mr. cramer. >> boo-yah, raj. >> caller: hey, i would like to ask you about fiberoptics. this company recently reported results. >> yeah, you know, it's -- i done know. i mean, the fiberoptic -- you know, look -- buy google which is doing fiberoptics. it's a cheaper stock. let's go to joel in new york. joel? >> caller: yes. >> you're up. go ahead, joel. >> caller: boo-yah, jim. this is joel from new york. >> nice. >> caller: a compliment to your
staff. donna is a lovely young lady. >> isn't she? she rocks. she rocks. go ahead. >> caller: she does. in july i bought omed. >> right. >> caller: i've been kind of disappointed. i wanted your opinion. >> nigh opinion is the speculative biotech stocks we are not recommending them for the rest of the year. we all think they should be trimmed, not bought because they've gotten too hot for this show. i want to go to billy, ohio. billy? >> caller: boo-yah, jim. thanks for taking my call. >> of course. >> caller: i want to ask you about your outlook on humana with the upcoming -- >> humana's quarter was really -- >> buy, buy, buy. >> what can i say? i hope the stock comes in so people can buy it. that was a beautiful quarter. let's go to burt in kentucky. >> caller: hi, jim, how are you tonight? >> how are you, burt? >> caller: thank you. vy i have a question about transocean. they've had significant problems
from the go, and the stock is somewhat depressed. what do you make of it? >> i don't know. good numbers and think you probably have another couple day or two going up, but it's not my favorite. i do like schlumberjay more. >> caller: i'm truly amazed at your wisdom and knowledge of this vast stock project. >> thank you. i wish i was smarter and have to work harder. what's going on? >> caller: help me with the this. do i buy, sell some, or do i hold home depot? >> no reason to sell home depot. i want to be a buyer of home depot. it's a great american company. mr. blake has done a terrific job and it's not expensivexpens. i bless home depot. that, ladies and gentlemen o the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade. gre. ♪ but then, one day, he noticed that everybody could have a magic seashell.
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your ford dealer. i'm beginning to sense a pattern. get up to $140 in mail-in rebates when you buy four select tires with the ford service credit card. where'd you get that sweater vest? your ford dealer. customer erin swenson ordebut they didn't fit.line customer's not happy, i'm not happy. sales go down, i'm not happy. merch comes back, i'm not happy. use ups. they make returns easy. unhappy customer becomes happy customer. then, repeat customer. easy returns, i'm happy.
repeat customers, i'm happy. sales go up, i'm happy. i ordered another pair. i'm happy. (both) i'm happy. i'm happy. happy. happy. happy. happy. happy happy. i love logistics. sometimes the market will simply give you a gift like when a best of breed -- alloying you to buy the company's stock for less than what it was before we knew about the terrific quarter. that what seemed to happen here
right now the last 24 hours with eog resources. big independent oil and gas company, all over the world that has incredible shale assets here in the united states. they're the biggest oil producer, one of the largest in the balkan. delaware basin area which is red hot. come out with a monster earnings beat last night with earnings per share coming in at $2.32, excluding one-time items. wall street was looking for $2.06. they say they're going to grow oil production. they also reaffirmed the fabulous five-year plan which calls for a sustained production growth through 2017 as long as the price of oil stays above the mid 80s. eog opened up this morning, opened up big. a lot of the growth stocks went down. this one went down with it closing up $5. i do know these rotation tepid to last f tend to last for a couple days.
you lucked out today if you don't already own the stock. this may be the chance. let's check in with mike papa, executive chairman and former ceo of eog resources. mr. papa, welcome back to "mad money." >> thanks, jim. good to talk to you again. >> first thing i have to say, congratulati congratulations. i know it's your last quarter. people say, wait a second, executive chairman, is he still involved? i thought he was the ceo. i'll give you a chance to explain the change and why you're still with the company. >> yeah, i'll be with the company until the end of the year, and so this is my last earnings call, and at the end of the year, i'm going to step down and remain only on the board of directors. and i remain just as a simple board member from that time forward. >> all right. and you think that the job is done? time to do other things? because, again, people don't like change. they're used to you being at eog resources. >> yeah. i'm 67 years old and need to pass the torch to someone else. bill thomas who's been with the
company 30-plus years is more than able to pick up the torch and running with it, but i'll still be able to provide guidance to bill from my seat on the board. >> excellent. >> so i think it's a good transition. >> congratulations. there are a couple changes in this quarter you have to tell us about. you had previously not said that balkan was producing as much as. technological changes you've done seems to have been a game changer for you. tell me what happened so balkan is full bore now? >> yeah, what really happened in balkan is we've taken some of the completion technology we learned in the last year and applied it to the balkan and it's really made kind of a night and day difference in the productivity of the new bakan wells. productivity in the new bakan is wells is up relative to some of the completions we've made a
year ago, so we now view bakken as a big growth area for eog, whereas a year ago we viewed it more as a stabilized production area. so it's a big upside for eog. >> and west eagle, previously i thought that was not -- >> exactly. a year ago the western eagle was thought to be a little bit inferior in terms of quality scared to our eastern eagle ford where we were routinely making wells started out at 3,000, 4,000, 6,000 barrels of oil a day. in this intervening year we're now hitting home runs pretty frequently in the western eagleford. last year due to well completion technology, we turned bakken from a stable iced to a growth area. we don't have to find new areas
but continue to improve existing areas. eog will continue to hit the ball out of the park for the next five years. that's a real growth story for eog. >> delaware basin, where are they with the new completion technology? >> exactly. delaware basin is going to be an emerging growth story for us. and we feel good about that also, jim. >> all right. let's step back because one of the things i'm concerned about is i don't want to get -- you and i have always fell, look, there's a lot more oil than people realize. now i'm starting to hear from other people, wait a second, jim, you're being too conservative. there's even more. i don't want us to get ahead of ourselves, but i did have mr. sheffield on. he is talking about numbers about spraberry and wolfcamp. are we getting too con fused? >> i think we are, frankly.
if you look at our investor relation charts, see the growth to date has not been anywhere near what the growth in the eagleford and the bakken has been. and when you really look at all this, it kind of tells us that year over year growth in u.s. oil in 2012, we believe will not be duplicated in 2013, nor in 2014. so we are seeing a renaissance in u.s. oil growth, but i think it's being kind of overestimated as to what the overall impact is go going to be over the next four, five years. it's a major game changer, no doubt, but it's now being overestimated in my opinion. >> fair enough. i needed to hear that and i know you are the dean of the group. i want to wish you the best of luck with the new role that you're taking, and how great you have been for shareholders and for all of our viewers at "mad mone
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if it weren't for twitter this session would have been so dwichbt because the focus would have been on two growth stocks everyone loved coming in. only one is truly deserving e d. whole foods and qualcomm. whole foods is the fastest growing and qualcomm is the same in semiconductors. qualcomm posted pretty consistent 30% revenue growth and whole foods 5.9 to 7% same-store sales growth. both top of their game for respective groups. that's why it was so jarring to hear both lower their growth rate. both companies are core holdings in many portfolios. i've got to tell you this. i have been a fan of whole foods, but i've not been a fan of qualcomm. as phone companies transition from 3g to 4g, i find the firm inconsiste
inconsistent. it would be perfectly in character for qualcomm to raise its growth rate back up because there's less concentration at the top tier of customers. something they talked about today. there's a reason why a stock with a 30% revenue growth is only up 12% this year. i'm obviously not alone in thinking quathin thinking qualcomm proves too many surprises. the actual share count has been pretty consistent. they haven't gone down. 2% yield. with qualcomm, i'm thinking great company, but why can't these guys forecast better? i'm sure this time it will be no different. management held out hope for a rebound. i think the benchmark of weak semiconductors. whole foods on the other hand has consistently earned our trust, up 41% coming into this session. i feared the reaction to this quarter and i told people not to buy. i was disappointed as we were meant to be by the guidance of the slowdown. but whole foods is not just
another company. it is as co-ceo walter robbs said on the call, this is a no excuse company. so it was just a sense that the bar was set too high for the quarter given the company's expansion. whole foods gave out huge amount of fodder to the bears. john macke, cannibalization, competition, and currency. the store distribution, $374 million out of whole foods' $11.6 billion in sales. now, i suspect some of them weakness is temporary. mac, e explained, for example, the cannibalization where the company is expanding aggressively, the stores will be producing gangbuster numbers. fresh market and the private trader joes. i think the plethora that have come into the market has to put whole foods in the penalty box. these guys are the best of the bev. the theme of the change healthy
eating. the lowering process is about time and price, meaning the stock has to go a little bit lower and stay lower for a couple quarters. all of that said, wonce again whole foods will be derisked and you have to buy the stock. two terrific growth companies. one worth keeping. the other worth exiting. at least right now the sellers will dominate in both stocks. stick with cramer. mad about "mad money"? immerse yourself into cramer's world. while you watch the show with zeebox. on your phone, tablet or on the web, get sneak peeks. go behind the scenes. and join the conversation. download the free app today for the ultimate ycramerican adventu adventure. the young and the healthy are getting ripped out in obama care. watch out. tomorrow's jobs could be below the estimate. all up next on the "kudlow report." 0
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nuisance. you understand the risk. you are willing to am september it or take the money and run. i do think it is ridiculously expensi expensive. maybe one day it will be worth what it's selling for. until then, understand i am not blessing this. i like to . fear is starting to grip senate democrats as the blame for the obama care disaster comes straight to their doorstep. but is there anything they can really do to fix it? we have the the latest tonight from capitol hill. and at the white house, president obama has just wrapped up an interview with chuck todd. the president still defending the failing health care overhaul and he didn't apologize for the cancellation of health care as a result of bom care. and a great day for twitter, but bad day is for stocks