Monday, 06/23/08
Posted 06/23/08,  09:11 pm ET

(Scroll down to see Jim's comments below)

 
 
Today's date:  Monday, 06/23/08

  Dow Jones: 11,842    - 0
  NASDAQ:   2,385   - 20
  S&P 500:   1,318   + 0
 
 
 
 
 
First Segment
 
Opening Segment 1 Title: 'Coming Clean'

.  .  .  .  .

Featured Stock(s): General Comments.

No specific stock picks.




See Opening Segment 2, below...
 
After this segment, you can see Jim's Lightning Round picks here...

        
JJC:    I intended to discuss what some would call the controversy... the debate surrounding the political push to end the moratorium on offshore drilling in this country... And, by the way, if you check out the story about this on page A3 of the Wall Street Journal, it's very clear that this issue is a political winner for John McCain... While, sadly, the front page of the New York Times also told us today that Obama is wetted to our food for oil, (ethanol supported program)...

We didn't stop using oil tankers just because of that one incident with the Exxon Valdez did we?... But one offshore oil spill, and we have spent four decades not taking advantage of our natural resources of our nation... which I believe are hugely abundant off both coasts.

It's not a political show, all right?... What this is about is technology... "new technology"... so, guess what?... things have changed... "new technology" has changed. The technology has now been developed by the United States of America to make the debate moot.

We may not have the technology for clean coal, but we sure do have the technology for clean drilling, clean pumping, and clean extraction... And practically every other country on earth, that has oil offshore, is using our technology, except us... because, of course, we're the most elitist nation on earth. We'll make the tech, but we only want other countries to get their hands dirty drilling for oil... and that's all they get dirty... their hands... not their lands. Because the technology we have invented is so effective and so clean...

In fact, it's probably cleaner to drill off our coasts and pipe in oil than it is to ship it in by tanker. I'd place more odds on another Valdez (tanker spill disaster) than on a reprise of the Santa Barbara spill. What happened then, frankly, just couldn't happen today.

This bill in 1969 that shut down our offshore drilling happened when Union Oil Co. was taking out a pipe from a well that created a huge change in pressure... one that Union Oil didn't compensate for by adding what is known as additional fluid, called drilling mud, down the well...

The pressure build-up on the Union Oil well led to a blowout that cracked the sea floor, and spilled about 3 million gallons of crude. The people who don't want us to drill are worried - and, look, I don't blame them - that this will happen again... but... the technology we have now, which I know because of the stock... I'm not a technology guru or an engineer. I just go where the stocks are and find out what they do... The technology right now is so much better at controlling and managing the pressure in an oil well.

We have new technology fluids and fluid handling systems that I talk about every night on this show. They would have compensated for the change in pressure... They would have prevented the blowout from ever happening.

We have better pipe sheathing. We have sub-sea trees that regulate all this... And now we have not just 3-D, but four-dimensional seismic technology... again, invented by us... that will tell us how a well's pressure will respond to drilling... which lets drillers determine the optimal amount of extra pressure they need to provide with this mud... meaning drilling fluid... so we can drill safely... cleanly...

Do you know we've even got robots that construct and maintain rigs. This is not a dirty, dangerous endeavor anymore. If it was, don't you think you'd hear about all the damage being done by other countries that are drilling offshore using our technology?... You'd think... considering that most other places are going full bore... that this would make the news, but I haven't heard anything about it...

I've got a place right on the (New) Jersey Shore... I want rigs, because I've seen the technology... I know it. We have the technology... which is a Six-Million-Dollar-Man (70s TV show) reference... And it looks like we have the political will, given how popular an issue drilling offshore is proving to be. We may not have the right politicians...

We could have as much as 18 billion barrels of oil, and 76 trillion cubic feet of gas offshore in areas where drilling is not allowed... that could make companies a lot of money... and put a lot of people to work, and make stockholders rich...

In fact, given our great new drilling technology, it could be much more than that... That's what we care about on this show... it's making you money. And, if we have the technology, and it's clean, let's make money off of it. It's why, every day this week, I'm going to focus on the "new technology" companies... not the ones that make the better video games that kill more people... the "new technology" that makes clean offshore exploring, drilling and producing possible... countries that are making fortunes already, everywhere else on the globe, but would make even more money, if we lifted the moratorium on offshore drilling.

By the week's end, you will know there is no controversy... just Luddites trapped in 1969 time warps, versus those who embrace and recognize American know-how to drill much cleaner than we ever could before.

The bottom line... again, not political... trying to make us money...

.  .  .  .  .

The Bottom Line!:      One oil spill that happened in 1969 should not stop us from taking advantage of our national natural resources wealth that everyone else is... which is why these stocks keep hitting a 52-week high... And I want you to stick with Cramer, if you want to know the companies that make clean drilling possible. They're all on the 52-week high list, and they are not done... and we're going to get their names after the break.

.  .  .  .  .

 

   
 

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

General Comments.

No specific stock picks.



 

 



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Second Segment
 
Opening Segment 2 Title: 'Newfound Glory?'

.  .  .  .  .

Featured Stock(s): Compagnie Gnrale de Gophysique-Veritas (CGV)

See CGV's official website here.

See the Yahoo! Finance profile for CGV here.

 
After this segment, you can see Jim's Lightning Round picks here...

 

JJC:    We're talking about clean drilling... about the so-called controversy about offshore drilling... And, most importantly, the stocks of the companies that, with their technology, render this debate moot... because there's no tradeoff between drilling offshore and protecting marine life anymore.

We can do both...

Our technology is so good that, if you went to one of these rigs, the water would be so clean, you'd want to start diving off... and start swimming...

It doesn't seem like Congress is going to end the moratorium on offshore drilling anytime soon. But, if by some chance, these guys in Washington get a clue, or even watch Mad Money, I want to tell you about the companies that will be the first to benefit...

They're already benefitting from increased exploration everywhere but the United States. They're just not getting any love at home...

.  .  .  .  .

Who are they?... Who's the first to win?... They're the four-dimensional seismic mapping companies. That's right... four dimensions. They take 3-D studies and apply them over time... over time intervals... so that you can see what's happening in an oil field over time, rather than just get a static image.

This technology... and, by the way, if this isn't "new tech" nothing is... increases safety, and helps maximize production, and virtually rules out the 1960s oil spills that we saw...

These seismic companies get hired by the exploration and production companies... to send out their boats, and create a detailed and illuminated image of a deep sub-sea area... getting better views of the geology... something that's especially useful around Florida... where lifting the moratorium would open up a lot of drilling, because there are a lot of areas in the Gulf where the ocean floor is covered by layers of salt, making it harder for oil and gas deposits to be seen with traditional imaging methods.

Now, when my old partner, Larry Kudlow, had the CEO of Diamond Offshore Drilling Inc. (DO)... Larry Dickerson... he's good... on his show, he said that, if Congress green lit this today, the first thing that would happen is the oil companies would do a bunch of seismic studies... the wildcatters would do the seismic studies...

.  .  .  .  .

So, who do we like for this?...

Now this is a little complicated... There are five major offshore seismic companies...

One trades only in Norway. Another trades only in The Netherlands. A third is a privately-held Chinese company... Chinese communist company...

So now we've got a field of two...

Now I think actually one of the best - if not the best - is Western Geophysical. This is a subsidiary of oil service giant, Schlumberger (SLB)... but it's a relatively small part of the company... just 11% of revenues on profits... And, while we have been huge fans of SLB on this show, we're looking for a pure play on seismic imaging and, unfortunately, they ain't it... although, if Congress decides to lift the moratorium, the numbers for SLB would have to go up huge, as the analysts aren't factoring in this potential business into their estimates at all.

.  .  .  .  .

So that leaves one play...

We're going to go all over the globe for answers, even though it's American technology, for the most part... The play here is Compagnie Gnrale de Gophysique-Veritas (CGV)... also known by everybody as CGV...

You see, it's French, but it trades here actively. I don't usually mention ADRs (i.e., American Depositary Receipts), but this one really trades a lot here...

This is the one we want...

CGV is a pure play on seismic imaging. It also makes the equipment needed for doing seismic studies. The company is about two-thirds seismic services... onshore... offshore... and one-third making the equipment for both markets.

This is it man. CGV is great... because, whatever the seismic company, they have to come to CGV for the technology. CGV controls 60% of the market for seismic equipment. Consider them the arms dealers to the seismic companies...

.  .  .  .  .

The Bottom Line!:      For safe, clean offshore exploration, the first ingredient is seismic mapping. Seismic mapping is Compagnie Gnrale de Gophysique-Veritas (CGV). I think it's great right now but, if Congress does the right thing, I am telling you... this one's going to play catch-up to every single driller out there.

.  .  .  .  .

 

   
 

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)


CGV

45.51

43.69

Compagnie Gnrale de Gophysique-Veritas (CGV)

 

 

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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.
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