'Mad Mail'

AECOM Technology Corporation (ACM)

Q:      Jim,
Thanks for navigating us through the rocky shoals of the last 18 months. With your help, I’ve managed to stay afloat. I want to get in on the upcoming infrastructure action, but I can’t decide between AECOM Technology (ACM) and URS Corp. (URS) - can you toss me a line?
Thanks, Todd

Jim:    If you put a gun to my head, I would say take the gun away from my head and then I would tell you that URS is a serial misser of quarters, they have had a couple good, a couple bad… AECOM has done a remarkable job… there was a secondary, that was much lower, so you need to wait for a pullback… but the answer is ACM.

'Mad Mail'

Permian Basin Royalty Trust (PBT)

Q:    Jim,
I have recently been picking up shares of Permian Basin Royalty Trust (PBT). I read in PBT’s most recent annual report that they have 6.8 years of reserves remaining. At what point will the dwindling reserves begin to impact the price of the stock? Also, what would happen if I held on until the end, would my investment then be worth $0, or is there some underlying value to the trust, such as land, etc.?
Chris

Jim:    Of course, it has got a finite value… by the way, they raised, I was talking to my friend Dave Pelletier, who writes the Dividend Stock Advisor for TheStreet.com, where I am chairman… they actually just raised their dividend, and you are right, they have got about 7 years worth of reserves.. if the reserves got to below 5, you would start seeing a real decline in the stock… so you are absolutely right… and I applaud your decision to get the annual, but these are done also on a quarterly basis, so why don’t you check that statement that they just put out.

'Mad Mail'

General Question & Comments...

Q:      Jim,
How do I use cash flow to determine a company’s financial strength? I understand that total cash flow is the sum of operational, financial and investment cash flows. However, when totaled together some of these items negatively impact the bottom line, even though they are things that normally would make a business more viable. How do I best use this tool?
Bill

Jim:    I am going to turn onto either Real Money, or the best cash flow one that I have done is Jim Cramer's Mad Money: Watch TV and Get Rich… it is a little difficult to go on TV to do it, but that has it… but I absolutely want you to use cash flow because with a lot of companies like a Comcast (CMCSA), it is really hard to value them… just on straight earnings per share because it generates so much cash… I also just so you know, well, let’s just do this… I will do a whole show once about how to analyze cash flow… so I do not short circuit the whole notion… I will figure out how to make it interesting.