After this segment, you
can see Jim's Lightning
Round picks
here...
JJC:
With oil - the single
biggest determinant of how
bad the Dow did today -
going right through $132
(price per barrel)... on
its.. not-so-long march to
$150, our price target for
crude in Cramerica...
I'm looking for ways to
make money, particularly
on a bad day... so,
tonight, I want to focus
on a stock of the classic
"new tech" variety...
which is crushing all
performance of the rest of
the market... these "new
tech" stocks...
I want to focus on a
company that is making an
alternative power
source... You know
why? Because you
keep calling me and asking
me to do it, so I worked
on it... I try to
meet your demands every
night...
Now the very fact is, what
makes these "new tech"
companies the real
technology businesses...
they solve the world's
problems. Old
tech?... They might
be great at making bigger,
thinner television sets...
How about fabulous video
games that train our
children to be, at best,
more excellent felons?...
But even I can't find a
connection between any of
those applications and
actually solving real
problems like energy...
or helping to wean the
world off of oil... or,
frankly, solving any of
those 10 big problems,
like famine... like how to
become a better
democracy... that I listed
in yesterday's show...
That's "new tech"'s
bailiwick...
. . . .
.
Today, I want to start
with batteries... and not
the "AAA" kind...
Now, when anybody thinks
batteries and "new tech,"
they immediately want to
find some company that
makes lithium-ion
batteries for hybrid cars,
as these are the current
favored technology of the
auto industry...
But, if you do that, you
come up with nothing...
Most of the companies that
are in the business are
joint ventures, formed by
big auto businesses that
you can't invest in.
In other words, no moolah
for you!...
But, if we want a stock
that I think could make
you some money right now,
we've got to go in a
different direction...
Even though there's a lot
of hype surrounding what's
going on in hybrid
technology, it's amazingly
the old-fashioned lead
acid battery that's still
in just about
everything...
No. We're not going
to make money in
lithium-ion... We've
got a lead acid play...
which is why I like...
This is the largest
manufacturer of industrial
batteries in the world. It
has very little auto
exposure... good, right...
and, like any good "new
tech" stock, it's focused
on making their batteries
run longer, with less
maintenance, while taking
up less space. Talk about
innovation! That's
technology!...
This company makes
batteries that are used in
moving equipment...
Forklifts are about half
their sales now... and
that plays into that
global logistics boon,
that is still going on,
despite the market being
down 200 today... not to
mention, the demand for
mining and railroad
equipment...
ENS also has a reserve
power business, where they
make batteries used to
back up equipment in case
of power failure...
Telecom networks buy these
batteries, and we know
there's a big market
buildout right now... and
they're also used in
uninterrupted power
systems... backup, okay...
and also aircraft.
That's the business.
Here's what makes it "new
tech"... here's why I want
you to write down ENS...
ENS has a proprietary -
meaning no one can copy it
- battery technology...
It's called "thin pure
plate lead"... they call
it TPPL... This is the
tech that makes
old-fashioned lead acid
batteries run longer, with
less maintenance, and a
smaller size... Think
"under the hood" soon
(i.e., in our automobiles
soon)...
This may be one thing "new
tech" and "old tech" have
in common... They're the
only places where smaller
is better. ENS actually
got a contract to use
these batteries in the
Navy's nuclear submarine
retrofit program... so,
when you hear that nuclear
reactors fail, don't
worry... ENS has your
back!
Like any good "new tech"
play, ENS is constantly
trying to expand the
applications of their
technology. They're also
expanding the plant that
makes these TPPL batteries
because, as we learned in
the last quarter's
conference call...
listen to the conference
calls... ENS can't keep up
with the demand for these
batteries.
They're running 7 days a
week, and they still don't
have the extra capacity...
By the way, for those of
you who like to laze
around, and think you can
invest without doing the
homework... you would have
no idea how great a stock
ENS is, without listening
to that call like I did...
and learning that key fact
about the demand... Just a
sidenote for any of you
slackers out there...
you're not wanted in
Cramerica...
This TPPL technology
currently makes up only
10% of its sales... and
another proprietary
technology called "Square
2" makes up another 10%...
So, collectively, the
newest "new tech" at ENS
is 20% of sales, and going
higher...
The company is also a
ROW-er... In 2007, 60%
of its sales were from
outside North America.
The company also recently
announced... and this
you're going to love,
okay... this is what
you're thinking about...
The company also recently
announced a pilot program
to deploy plug-in
hybrids... That's right.
Finally, at last... you
plug in your car at night
in the garage, to fight
traffic in the morning...
ENS is developing these
batteries using the
lithium-ion technology
they possess... Everybody
wants that, but I had to
have another steady
business, before I gave
you that... So, if this
catches on, ENS will make
you money in the future,
not just now... I want you
to think of this as what's
known as a "call option"
on lithium... In other
words, lithium-ion hybrids
will also be ENS... but,
meanwhile, so it's not all
speculation and you lose
your shirt... we've got
the company's smaller,
lead-acid batteries making
us money right now.
I should add, ENS has done
a great job of passing
higher costs on to the
consumer. The other
battery guys haven't been
able to. 80% of their
commodity costs they
passed on... where one,
the company, where lead
makes 25-40% of the cost
of goods. Who ever thought
that lead would go up in
value. The reason why we
used to use lead is
because it went down in
value every year.
Now this one was up big,
ever since it
pre-announced a beat of 4
cents better-than-expected
quarter. All the
speculative stuff never
does that, right... Full
results are coming... not
for another month. It also
provided guidance for next
quarter that was 8 cents
above the consensus
estimate.
So, why do it today?...
Why did I feature it
today?... I've been
waiting and waiting and
waiting for a downtick...
Today, it's down
enormously, courtesy of a
downgrade today by
Merriman, a brokerage
house. I think it's the
great buying opportunity
that we've been waiting
for... Thank you Merriman
for the entry point!
. . . .
.
The Bottom Line!:EnerSys (ENS)...
not to be confused with
that Chilean utility,
Enersis S.A. (ENI),
that I mentioned last
week, that I still like so
much... ENS is your
"new tech" battery play,
because they're making
established better, and
not just trying to
reinvent the wheel, and
not giving you some
pie-in-the-sky thing that
may be good in 2017...
. . . .
.
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Second
Segment
Opening Segment 2
Title:
'Home Sweet Home'
Interview with
Senator Christopher
Dodd (D-CT)
. . . .
.
Featured Stock(s):
See comments below...
After this segment, you
can see Jim's Lightning
Round picks
here...
Jim's comments BEFORE
the interview:
When will all of the
mortgage madness... the
foreclosures, the
evictions, the endless
decline in value for the
American home end?...
What does Washington do...
what are they doing to
help you?... To help
the cause that's dragging
down everything from your
wealth, to the wealth of
this great nation.
Let's get some answers...
Yesterday, the Senate
committee on banking,
housing and urban affairs
approved, by a 19-2 vote,
what I consider to be the
single most important
piece of legislation
that's been kicking around
congress right now.
That's the plan to
authorize the FHA - the
Federal Housing Authority
- to take real steps
to assist struggling
homeowners with those
adjustable rate mortgages,
by helping them refinance
with regular, cheaper,
long-term mortgages backed
by the Federal government.
This is the plan that I
have been begging for,
shouting for, and
screaming for... for a
year! It is the
solution! And it's
not just going to help the
500,000 homeowners that
the congressional budget
office estimated would
benefit from the House
version of the bill.
It's bigger than that!
This bill is what's needed
to cause the bottom... to
stop the endless house
price depreciation... to
put an end to the
foreclosures... to get
your home from no longer
losing a little bit more
of its value every day,
which is the ultimate
cause of our current
economic woes...
So, not only does this
bill help struggling
homeowners, it's also
exactly what the stock
market needs and, boy,
after a day like today, we
know it needs something...
Now, last week, it looked
like the bill would
stall... would not go
through... But, thanks to
the efforts of the
committee chairman,
Senator Chris Dodd.... a
great friend of Mad Money,
and someone who, from the
very beginning of the
campaign, I always
regarded as the thinking
man's presidential
candidate, they managed to
come up with a compromise
bill that passed
overwhelmingly...
Now, tonight we have the
good fortune to have
Senator Dodd on the show.
He has been, to my
knowledge, the single-best
guy in Washington, when it
comes to this issue...
because he's the most
knowledgeable... because
he does the most
homework... like I always
tell you to do... and he's
fought hard to get this
bill through his
committee...
Now it's moving to the
full Senate for a vote,
and it's still possible
that the President - who's
been averse to letting the
FHA do more - could still
veto it...
And that's why I'm so
thrilled to have Senator
Dodd on tonight, to talk
about what this bill
means, and what it's
prospects are going
forward...
Senator Dodd, welcome back
to Mad Money...
. . . .
.
Jim's comments AFTER
the interview:
This is it! This is
what we've been saying...
This is the beginning of
the end of the decline in
your house's value...
Look, I never have a good
word about Washington...
this guy figured it out!
He's sophisticated, he
worked for you, and I say
bravo!
. . . .
.
■
Stock Snapshots - Includes
all stocks mentioned above
■
Jim
Cramer's
rating on
this stock
STOCK
SYMBOL
Closing
price
that
day
Opening
price
next
day
Full Company
Name/Comments
(see comments above for
each)
na
na
na
na
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think it is indicated by his
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Please read his comments to
decide for yourself.
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based on his comments
We do our best to interpret
Jim's opinion on stocks, as
we think it is indicated by
his comments during the
show. Please read his
comments to decide for
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Back up the truck -
indicated by Jim, when he
says the stock is so good,
that he would do a
'mon-back' on the stock...
In other words, this is the
sound someone would say to a
truck driver, "Come on
back... " as he is "backing
up the truck" to load up on
his cargo. Translation
for buying stocks:
This recommendation by Jim
indicates that, after you do
your own
homework on the stock,
you should feel comfortable
loading up on it, as it is
in a good position to be
bought at this point.
Stumped. - Of the
2,000+ stocks that Jim
Cramer has in his head, for
which he has an informed
opinion, he sometimes comes
across a caller with a stock
he does not know well enough
to opine on... He then
indicates he is stumped and
will have to come back to
it, after he does some
homework of his own on
the stock. This
usually occurs during the
Lightning Round, when Jim
does not know in advance who
is calling, or what their
stock question is about.
Definitions of key phrases
used by Jim, known as
"Cramerisms":
Definition: 'Pull the
trigger' is Jim's phrase for making
the decision at that point to trade -
either to 'buy' or
to 'sell' (although he
usually uses the phrase for
buying), as if to say you
should feel comfortable
enough to make the final
decision without looking
back...
Definition: 'Ring
the Register' is Jim's phrase for
selling a stock, and making
it a final sale, that you
should not look back on.
Put it behind you.
Definition:'Let It Come In' indicates how you
may wait for it to pull back, or have the
stock price come down briefly, as your
chance (after letting it come in) to buy
the rest of your position (i.e., total
number of shares you own in that stock).
Definition:'backing it up'
or 'doing a 'mon-back' is Jim's
phrase for the metaphor of backing up a
truck to load up on a stock by buying
it. 'Mon-back is short for the
imaginary worker saying, 'Come on
back...' as the truck is backing up to
receive its load... Notice that we use
the little truck icon to indicate where
Jim has mentioned this.
Translation for buying
stocks: This
recommendation by Jim
indicates that, after you do
your own
homework on the stock,
you should feel comfortable
loading up on it, as it is
in a good position to be
bought at this point.
See more
"Cramerisms" & other
financial phrases
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Charitable Trust at:
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upcoming site that provides
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you do that homework that
Jim Cramer recommends after
hearing his suggestions...
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