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the peoplef ge a working together... eating innovation today r america's tomorrow. thanks! problem! has the fastest hands boxing has eveseen. so i'vcome to this ring to see who faster... on the internet. i'll busing the 3g at&t laptopconne card. he w't. so i can browse the web st, i'm bill kurtis and i'm faster than floyd yweath. (announcer) switcho the nation's fastest 3g netwo and get the at&t laptopconnecte

> i'm jim cramer and welme to my world. you need toet in the game. >> going out of business an he ts! th're nuts! they know nothing. >> "mad money," youan't afford to misit. y, i'mramer. welcome to "mad money," welcome to cramerica, other people want to make friends, i want more days le today. my job isot just to entertn, but to educate. so call me. at 1-800-74cnbc. after four miserab weekour miserable weeks straight of the maet going lor, how do we fantastic rally?s fabulous, ♪ hallelujah

>> with t dow sng 185 ints and the s&p 500 up 22. what kind of marketthat seemed impervious tgo news roaring? to get this lly, i've got to t this in cxt. to g ts rally -- to find out what this is about, first you needo understand that the market is -- ♪ battlefield >> to quote sck wizarjordin sparks. and today,ne of the bear's chief gerals a te kodiak waved the white flag yes, i'm tking about meredith whitney, the nk analyst w captured the hearts and minds of the bearh media. and her upgrade of goldmasachs today, white flag waved. there were a host of other

upgrades today, the merrill lynch upgrade of electrocs granger, the jorgan upgrade of rockll automation. who careabout any of those? the e that mov the rket, thne that matters was meredith whitney's about face on goldman. why does her opinion matr so much more than anyon else' not because sheeen righ she's bee dead wrong, stayi bearish on the nk even goldman, by far of th best of them f far too long. 's not because it's anything neeither. whitney's the only analyst who isn't positivon goldman. there was nothg new or noteworthyn r change of heart. all she diwas say what we already know. i've been guying goldman for m charitable trust for year and on this show we've consistently stood behind this bestf breed

banks l along what's her attitude ee r attitude on goldman has en that -- ♪ ♪o one can tells we're wrong ♪ >> and we' been right on .s. already. now refencing pat benitar, nowhere near american idol-winning sparks. meredi wtney so late to the party on goldman, she's even lagging the front ge of the "new yortimes." online thiweekend i saw this th tked about the possibility of a blowo quarter when the cpany reports tomorrow. i wonder if that's where whitney's getting her information. if it's notecause she's been right or because she's got some w argunt, why the heck do meredith whitney mter? simple, last week i talked about stock market, how nobody seemed to care aboutny good newsand everybod was just acting bored and negative.

well, there'too much we on the bear side too. we are sick of reading about negatives, but we care when someone who was negative like whitney goes positive. she's the turn code on the ttlefield, the battlefieldf the market. an turn codes can tur stocks as you saw th today's fantasc move. and merith whitney is asbout as important as it gets. e media, whh loves to be relentlely negative, has a lot her --et's say her questionable analysis, f such a long timehat when she changes her tune and joins the land of t thousand bl dces forgot to cue th song, the press may just have to follow. you have to understand, this i much bigger than just a call abt goldman sachs, the best the banks, witha sitive mark about bank of america thrown in, something we predicted meredith itney would

have to do. we said she'd have to cave a month ago. she has given the bearish media aid and comfort with pusng its lentless view of your house a a tar pit. the medianeeded her for its legimacy, her negativityn the banks was the biggest prop for the bearish view. now it might co tumbling down! . at last, we mighte able to put the probm of housing io context. here's some numbers, we should st usehe motions. what the heck,hy should we be empiril,ust make up stuff, no, can't do there were 14 million hes bought between005 and 2007, th media's now betting tt 50 of the mortgages wil default, 7 millio mortgages of the 14 llion. average mortgage $200,000, and that comes out to $1.4 trillion. nks have already written off more thathat. we have written oore than 50% the homes pchased

during t hay y of the housing bubble. r the sake of argument, it's true that 50% of thetgages from tt riod were adjustle, so the dia's outlook is essentially saying that100% of those adjustabl mortges pick or pay all of that nonsense going default, 10. to me, i don't know, maybe i'm just a simpleton, but 100% of all gages that are adjustable defaulting seems high. t let's use it as a worst ca, because we c't use 120%, because it's one ofhose things yocan't have more than 120%. we've already written off me than that and it seems to me 's the worst case. and to me that means the worst case is already t in. that's not the kindof the fact that the ars are normally disposed to tak notice of. the bgest of them has now broken ranks and raised the white flag,nd of course, clming she was always bullish on goldman, ay at long last some of t oths will listen to ason. i've got the bottom line for yo

today, one of thmost -- one of thiercest and most inflntial bears a real general of bank negativity ran up the white flag and then changed sides entirely. unlike jordin sparks ♪ >> meredh whitney swallowed her pride,raised the white ag, called o her fellow bears leadg theay with this incredibly late goldman sachs call. and as nutty as it seems, the impact decided battle i favor of the bulls just when theyhemselves were about to surrend surrender. oving once again that you should never get negative because u never know when the bear on the other side of the trade is as exhausted as you are and wants to quit while she's barely ahead. even still, behind. mark in flora, mark? >> caller: boo-yah to you, ji

>> how are you? >> caller: mark down here florida. >> all right. okay. >> caller: i have two questions about the oba administtion's plans to reduce our dependence on oil. >> yeah. >> caller:o you think the treasury partment's plan to spen$3 billi on rewable energy wl have a significant pact on the pricesof these stks? >> no, ne whatsoever. what matters is therice of oil. we think the pre of oil was manipulated higher by a seri ofogue futures traders. th is not the general consensus of the people who ade options -- tra futures, but ithouldn't be bse obvislthey're fighting f their lives. if you raise the margin requirements, this shoul't have happened. it makes it more difficult to have alternative energy an don't have the money to suort it if it's unenomic. steve in california. steve? >> caller: yes. >> steve, sve. >> caller: yessir. >> you're up >> caller: oh, boo-yah.

>> boo-yah, chief. >> caller: from lifornia, jim. >> what are you? saamento? >> caller: no, bles. >>hat's up? >> caller: two weeks ago you spoke about valuing stocks by compar stocks pe multies to the grow rate, thank you very much, by the way. >> you're welcome. >> caller: i have a couple of questis around this. first, what growth growth rate do you us revenue, eps, net ncome, or something else? >> no, i use earnings per share growth rate. good.ller: ok. send i'mooking at home depot. using your evaation chnique and wonder given thecurrent housing market if these valun rules still ply? >> yes, it does. i think next year they'reoing to be much bette because th housing stabilization,ousing bottom stabilizatioot housing appreciation plus the fact that mortgage rates are ba to 5.12 and will go under 5, triggerinanother wave of refinancin mns home depot is

the place to go to fix your house up iyou bought it in foreclosure. i think home depot-- okay, the dow's up 18 the market is a battlefield, a unlike jordin arks, meredith whitney swallowed her pride and waved the white flag. stay with cramer. coming up, dollars and long distance. amer's making a call on one communation stock that could have you dialing up some "ma money." ps, chemical reaction, jim's amininone stock to tell you ifhey have the right formula for profits. lightning strikes, cramer goes electric taking a of your callin a spine-chilling overcharged lightning ro all coming up on "mad money.

financial advi you need?an e ere wi you find the stability and sources toeep you ahead of this rapidlevolving world? these are tough questions. at's why we brought togeth two of the most powerful names in the industr introducing morg stanley smith barney. here to reink wealth management. here to answer... your questio. morgan sa new wealth barney. maname firm you all wanto run your businesses morefficiently,

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cl k today.

i would have talkeo you tonight about a company that some of you coulbe -- well, you're about to become big shareholders in ether you like it or don't. i'm talking about -- frontier communications. frk tom riley. ftr. agreed to buy 8 million land lines from verizon in 14 state in exchange for $5.25 biioin stock, okay, tt's why you ght be getting some as well as assung $3.3illion in debt now, you know we're fans of the longufring verizon on this show. we like its juicy 6.3% yield. and when this deal goes through, if u're a verizon shareholder, you'll beetting one share of frontier, a $6 andhae sto forvery 2.4 shares you own of verizon. what should you do witht?

and everyone elson the sidelines, does this an that frontier mig be worth buying w or more likely at some point in t future? after the veriz areholders collect theifrontier shares then -- >>sell, sel sell -- >> -- on the open marketecause they d't want to own any frontier because they don'know what it is and thatould deprs the already low price. as verizon shareholders will own 2/3 of the shares outstandin after the dealfinishes. let's take a closer look. everybody knows the d-fashioned telephone business is a stinker, which is why verizon's been off loang ld nes like crazy. that said, tre are some reasons to think that frontier might be worth hding on to or buying after vezon shareholdersling induced debt. afr the deal, the company will triple in size. it willecome the largest ral phone carrier. frtier sees th as an portunity to reduce line sses, increase, and i think this is really the part o the story, increase broadband

penetration if you're a land line operator, that's wherehe money is. and also achie $500 million i cost savings. all ght, now this one has an alarmingly high yield, i say that because a big yield rses red flags. this has11.4% yie after e close of the transaction. that's the kind of didend that i think is, ll, uld be cey. remember i si wanted to hear fromhe ceo bere i pronounced it safe. it's possible itight be better than it seems and that t yield alone shou make the stock worth owning, it's a $6.65 stock with $1 dividend payout being cut when the viz deal closes. if frontier can just mai tee its 75-cen dividend,isten to the math, tarithmetic, i'm sorry, you would doublyour money inbout six years by reinvesting thedividend even thstock went nowhere. that sounds od, but in the not so immortal words o marathon

man, i it safe? well, frtier's expeed to generate 1.95 in ch flow per share and about 1.1 $$1.12 in freeash flow per share. frontier has no big debt maturingntil 2011 when $1. billion comes du tt's not an immediate rry. it'sot time to refinance. companies trying to get its debt rating up, so there's less chance of a dividend boost or share buybacks here, but the agenes have become more positive, moody's putng it on review, ch doing the same. the biggest wor isn't the debt or the dividend,hough, it's thatrontier mit go the way that similar anies that have ught land lines from verizon in the pa. when you look at what happened to fair point communications, th bought lines fr verizon in new england andhen had its shes plummet from $9.02 when theeal went through -- ts is rd to say, less than $1 now? you've got to rry about the --

let's see the fair point possibilities for frontier. okay, there's a g ifference. thfa point deal required complex and expensive migration from verizon old systems to newly built ones. frontier i't creating systems, paying verizon to operate the os it's buying. so right now the ball's in froner's court. if thedividend's protected. i wod not recommend it unless i was sure, it uld be an attracve prospectspecially afr being hit by the areholders selling. it has to monstrate it can add valu herwise i eect the stock to t pummelled. i've also got serious concerns that i can't resolve on my own. so let's talk to somne who can. someone wh wanted to comen th show because i said i don't know if that dividend's safe. i'm talking about the ceo of frontier cmunications. maggie, welcom to "mad money." >> hi, jim, it's nice to b here. >> i'm glad you steppep

because, you know -- we've been recommenng verizon since th show started. i ow that people will get this, and i think they'll just tosst away. others will be worried that t dividend's not saf so why do en we sta from the top? seems like a huge transaction for you. and i think you're going to be under pressure to see results quickly. what's your game plan to mak sure this traacon works? >> well, i think it stas and ends with execution. an that's sometng that our companis very good at. are the second rgest rural tephone company today, we will become the largest. rural is truly our business. we undstand these marke, they're very attractiv degraphics, very similar to the markets that we run today, and we're going to overlay our localengagement l, which is how we fiercely compete in our markets today. we own our markets, we compete against ble operators predominantly, a we do a great job on behalf of our bess and resintial customers. ll give you aexample.

>> okay. >>ne is we֖ innovate on the front lines. many of our customs did not own pc. d as we roll broad band, it's hard for them to take advantage of getting on the internet if they don't have a pc in their home. i'talking in some of our markets 30to 40%. >> that don't have pcs? >> don't have pcs. so over the last three ars in a partnership with dell computere have given awayo our customers over 90,000 pcs. in exchange for th taking a bundle of our services for several years, andt's been wily successful for our coany. >> all rig, excellent. now, the main reason i wanted u on you know is because i question h you can affordo pay that 75 cent divend gen thathat we've sn from land line pressure at the majors like vezon and at&t. well, let me start byaying that our accs lineosses a a lot less than a verizon at&t. and we se that as a huge oppounity. a good examp is if you look at

the properti that we're buying, thr land line ls e over 10% annually. ourss under 7%. and we think we ca rever the trend in tho marketsust like we've donen our markets. in addition to that, we are rolling out many new products for our customers. over 45 new procts in theast couple of year generating over $100 million in net new revenue. so we look at ourselves as the one-stopp for all commicion services. and we've grown customer revenue, even in a very tough economy fromhe first quarter of '08 to the first quart of '09, our revenueer customeris up ove$3. >> that's very different from th jors. now, i'm huge believer that the market's prettysmart, not always really smart, but prey smart. and wh i see the size of that yield, what it says to m is there are many pple who question your being able to maintain that. you cuhe yield for -- you cut the dividend to 75cents, y

not cut itig and me sure that there's no problem with the rati agencies and then kind of sure things work out? as you're >> well, let me start by saying our divind cut won't take place until the transactn. so current frontr shareholders today get $1 per share dividend. at the time of the trsaction, what we lked at was what is the invement that we have to put to these new markets from an integration perspective and from a high-speed llout perspective? and we want to accelate at high-speed rot in these markets. cause on average it's about 60% reach tod for high speed. and th markets wher we do business toy our reach is %. so in accelerating invesent, we wanted to ke sur we had a dividend that was sustainae, but also, w wa to make sure we stayed very shareholder-friendly. thk abouit, jim, we're gog to have in the first year $1.7 billio in fr cash flow before

synergies. the payout bed up the number of shares outstanding will be about $740 milli at's lower than a 50% pout ratio, we think that divd is very safe. >> that'smportant. igave allusion, i know it'snot necessarily fair becausef the prlems fair point had in executio at the top. you said y were not concerned about excuse. clearly, thoug you're running into this issue with the stock that could you be theext fair point, what isour elevator talk to people who say, listen, it's gotto be the next fair point. >> there are fou key differences between our transaction and thir point tranctn. an i mu say that ivan, the o of verizon, when he and i sat down aboutth transaction. remember, i went to him to buy these lines, not the other way around. >> that's ve impornt. i said to him this transactios to be diert. first, this delevaging for our ompany, we get 2.6 times leverageratio, which i

approaching invement grade day one when we closed that trsactio and fair point was over leveraged four times when they did this transaction. second, you mentioned this, the systems. we don't hav to create any new i.t. or financial systems todo this transaction. there's one state,est viinia, that we willonvert at theime of close and we're already well into thplanning on that conversion. but the her 13 state come with their own set of syem giving us the luxury to convert those systems our own timetabl the third thing is we do business today in 24 stat, 285 cities. we are a large $2.4 billion compan fair point was all company andi't have the experience or the the reach likwe have in our marks today. >> well, i'll tl u. i'm a believer. i'm a believer. i would tellou that i think a meone who knows stocks, you know your business tt there will come a bette moment i don't thinthe verizon people who get the stock areng to detand the things you said. the knee jerk approachs

usually to get rid of the stock. i think that might be the oprtunity given whatou just id >> we've beeout there very actively meetingwith top shareholders for veron. >> okay, that's maggie lderrotter. there wi come moment and i'm gointo tell you when it is when i think the stoill be fulldistributed and the presre will be over and then -- >> buy, buy,buy! >> wre going to buy, buy, buy. stay with cramer. cong up, jim's examining one stock toell you if they have theight fmula for profits. > plus --he time has come for cramer to guide you rough the mark's ups and downs. stock after stock. on t lightning round. and late e-mail us at madmoney@cnbc.com and jim uld you answer on the air on an al new "mad mail" coming upn "mad money."

last ek, i took a call in the lhtng round from alle in maryland about wr grace, that's g for all of you home gamers and retrospect, i t it floedt a littl bit. it's better to come clean. th is a company that i remeer from the old days, they had this gat food packaging business andhey had a shipping line, now i knew got rid of the shipping line, but i didn't know the newmake-up of the new grace. ilessed it as a speculative playased on what i knew of -- it just this great chemical business. but when i went back to do me homework, which is what i always do when i feel like iaven't iled something down for you in the lightning round.

i realized that wr grace was a whole lot better than i thought. so what's with this amazing grace? company's got two main businesses. specialty chemicals and construction pducts. but the real story here is that wr grace is what i call a post asbestos bankrtcy play. it's a mouth full. that's right, i'm recommding the stock of a compa that'in bankruptcy. usually don't do that, do i? why am i dng it now? because i thinthe oprtunity here is togood to ignore this is not like gm stockhat i wa trying t get e government to st tradg, all signs point to this one emerging from bankrtcyn the not too distanfuture. wr grace went into bantcy no because the business was ful but because of asbestos lawsuits. mpanies settled all of those it's already voted on pl of reorganition. one where t current stock won't be canceled that's different from the oth nkruptcies, including gm and e only delusion from the ne shares that they're creating

to comout of banuptcy are 10 million warrants, not common stock,hacan be converted intotock once the share pric hits $17. that's 48% higher than the current stock price. the warran expire a year from edate that wr gce post bankruptcy plan beces effective, something i thi can happen bween august and september. ordinari, i would tell to itefore buyin a stock like this until thedilution already happens and all of the new shareholders sell, kd of like the frontier situation. but since therwon't be any new shareholders unless the stock has a gigantic 48% run, i coer that a ptty high-quality proble anlike wr grace now, i like it now. before it emergesfrom bankrucynd attracts a real following research coverage, people buzzing about it. what makes me so confident here? well, for one thing, thepany seems confident. they heduled an analyst day on septemr 24th, tt's not that far from now, and people don't

do big analyst days in the summer. you just don't do that, you don't schedu that meeting unless you've got good things t say and u're hoping u'll get picked up by the wall seet otion machine. this analyst da is one of the clearest signs yet that we have the wr grace on it way out of bankrupt and into osperity. st of the atos claim holders have voted in favor of the reorganization plan o. i'm no worried about it chging for the wot. there's other reason i like wr gre and that's the history. not the history grace, which is story ofhe old shiing line compy, but the history of other compies that have gone completely bankrupt due to asbestos a emerged. the st comrison i have for this one a other companies, household companieyo may have heard of, armstrong rld, owens corning, a ng. whappened to the the neral trend was serus outperformance for the first 7 10 months after they emerged from bankruptcy. and then the stocks dropd off, but that's mostly d tothe fact that theye highly exposed to housing.

asbest went into hoing. for wr grace the bad housin news is in the past and later emergence from bankrupy than these others mig end up really paying off for sharehos. and the othe we pure housing playwith asbestos. gre is not a housing play. let me give you som spific examples, though, so you can see why'm so keen on this. armstrong world emerged on october 2006 then peaked at $47.53, a 47% gain at the high. corning left bankruptc november 2006, pked may 31st of 2007, 31.8 gain, kaiser ouof bankptcy july 7th, 2006, peaked on may 1th of 2007, up 111.7%. only usg failed to have a meaningful move, up 8.1% between its emergence from bankrtcy and th peak. that's prettsoli isn't the history clear? compies that emerge fro

asbestos-induced bankruptcy seem to get a multmonth boost. and i'm counting on that to lp put wr grace or the top. how abouthe fundtals? the coany's speciay chemicals business, its biggest area is what's kno as catalysts. ese are usedy refiri to reduce sfur emissions d remo imrities. the busine has been helped by overa increase in the refining of what's own as hey crude, a higher sfu coent. and even thoug short-term refining actity is down on lower oil con sumptionnsumptiond of economic recoverys goingo help this business. we don't have wait to buy is one because grac chemical depennchelped cut wn emissis. reduced nitrogen oxide essions by 35% to 50%. th mes a very -- f a very obama-epa friendly stock. a cap and trade stock and the kind of business that should benefrom pro cle air, anticlime change from the

mocrats. i keep doing that. i'm ill getting use the wle octobe revolutn. the novemberlection thing. yway, the other side of grace'business is construction products. makes use out of concrete and cement as well as specialty coings that protect structure from fire and water. there's obvislnot a great business at the moment. alough i should note that 48% of sal arerom intertional, not the u. construction activity across the board is very weak. right now grace's businesses altogether carry double digit operating margins. strong market she. it's numr one in the catalys i was tain about, and all in all, the country throws of$100 million a year in free cash flow. that's pretty darn healthy. it's a overseasplayer, 60 of the sales from the rest of the world, we think the dollar's tting weaker and that's fairly good. d it's only followed byne analyst. could exple ast picks up more coverage after emerng from bankruptcy. grace is the kd of stock where

you simply have to ask, are ings going to get better? or are they going to get worse? if y subscribe to the much more aggressive view of th world articulated ashe news letter as well as the friday night show, you wod have to say this stock is a screaming buy right now and ev i was was a more cautious outlook think things cld get much better for this company. and when they do, well, u want to be i t stock befehand not sitting on the sidelines. letme give youme cavea. there is no urgency to buying this tomorrow,he next day, or thnext day. in fact, i'monly focusing on it today becae i got an e-mail from a viewer after i responded to the ligning round questn about ilast week and the viewer said lten, jim, you've goto do more homework. i did and liked what i discovered. on reports from cl king, good firm, but i wish there were more to read aboit and it is absolutely speculative, it doesn't trade much. let meake this clear, there's short-term catalyst t buy the catalyst wr grace, there'no hurry. and if people go crazy and pay

up touy it tomorrow i've got to read that graceoved a lot, stk will come bac down to where iten out todayin a ort tim all the usual rules pply, wait a week for t pullback, use lited orders, don buy at ce. i waed to respond to the viewers who wanted morehan i ve. i went back, did some more homework and found out i le this sck even more than i originally thought. expect ito soon emerge fm bankruptcyith pretty favorable terms and endarts that have a down it looks up to me feel. scotin new york, scott? go ahead, scote. >> caller: jim, a big buffalo boo-yah. >> holcow, boy, i'll telyou. how e bills going to be this year? how about a t.o. boo-yah >> caller: no. >> he's all yours, pal. he's all yours. let's turn it into a sports show. let's talk about -- i'm sorry,

was out of line. >> calle that's right, brett favre going to minnesa. >> well, big. go ahead. go ahead, pedro martinez going to philadelphia >> caller: yh, pedro, used to ay for my mets, damon playing for the yankees. >> if we'r going to goo the saberswe're really in trouble here. what's the stock? >> caller: i'm actually a red wings fan so i had to-- >> what did you thi about the big iers pick up? >> caller: no. >> go ahead. hit me wit something,ill u? >>aller: dow chemical, needs to be cped off by glass ceiling around 45ver the last ten ars. >> okay. >> caller: good news, bad news? i noticed dunt has been generally capped off around 50. is this indicativeof the chemical secr? >> no, , no frank mitch from bb & t put out a prepositive piece he believes the second half cou be better than the first half.

remember, i've been anti-dow. i don't want to touch that, dupo, i worry about the dividend. the lyne ieel good about is whacharles bunch came on. vidend seems safe, ppg seems like the right ne yowant achemical, get into ppg and good luck for every single buffalo team and even t i'm a neral and charitable man. let's go to darrell, nor carolina, darrel >> caller: -- screeching through my phone. >>ll right. >> caller: hey, darrl, from north carolina, boo-yah, to you, jim. >> aree talking about the tarheels, the wolf pac >> caller: we'llo th the wolfack today. >> is that a stock? caller: i was doing some homerk for the buying homework on ppg stock own. i was looking at the price earningsor the last quarter, it's at 15 minus 15 indusy average is at , the pce to

versus industry averagis4. looked at the dt they to down last quaer is105%. >> all right. aller: the long-termeb to equity ratio is versus industry avere. >> it's notbeautiful, i admit th. >> caller: yeah. have the fundamentals changed on ppg? >> yeah, i tnk the main thing you've got to look a two years ago i thk ppg had about 8% asian exposure, now up to 15%. ppg has dramatically cut back exposureo automobiles, become much more of an international lever company. the previous caller i tried to talk him out of buyinth buffalo sabers a bills and getting into ppg, but i do believe that ppg is the only chemical company'm going to be remmending on this sho all right, thank you to allan in maryland, all the people in buffalo and north carolina. hesked about wr grace, anoth e-mailer prodded me tdo more work, and i think it looks good. limit orders,ark your time. thers no no catalt other th the fact the e-mailer made me feel like i needed to do

more homework. and stay with cramer. ne -- try to keep up with cr as hetakes your calls rapid fire in aall new lightning round. pl, e-mail us at cnbc.com and jim could answer you on t air on an all new "madoney." all coming up "mad money." undefeated profeional boxer floyd "money" maeather

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it is time. it is timfor the fst lightning round of the week on cramer "mad money." he rapid fire call, one after another. you tell me the stock i'll tell you whher to buy, buy, y, or sell, sell, sell. i don't know theallers or the stoc ahead of time. we'll playntil you hearhis sound anthen the ligng round is over. are you ready ski-daddy?

is ti for the lightning round. let's start with laura in illinois, laura? >> caller: boo-y from illinois. >> excellent. goodo hav you on the show. >>alr: okay, i icard a month ago -- >> no, it's fire. people don't undend, this business is doing much better than people realize. this is a truck engine busines and i would uy, uy, buy ve got tel you, right here bew 30, i think you've got to look back and say w did i get a chanceto buy it so cheaply? ho about ben in my old staof pennsylvania. ben? >> caller: hey, jim, boo-yah om pennsylvania. >> oh, boo-y. what'sup? >> caller: my stock is lincoln national corp. >> rnd and roun a big upgrade on friday, my friend ugass who writes with me at realney.com is telling me, jim, get positive on lincoln

nat, lcoln t, season tickets at lincoln nional field, but that has to do with the eagles. i think i'moing with doug cass, he's got the hot ha, ever since spx the generatial bottom, i'm going to join him anremmend buying lincoln nat. jason in texas. jason? >> caller:ey, mr. cramer. >> what's up there? >> caller: iive give big minnota twins win twins boo-yah to you from the scorching derts of west texas. >> wind boo-h. i'willing to give you a ranger boo-yah. go ahead, you know, it's home run derby, anything canppen. what's up? >> caller: eney conversion devices. is iall bad news from here? yes, it is, my frnd, because oil's going lower and we don' want to touch anying, anything -it's an easy trade to avoid, evything that's involving oil right now, ternative to oil, i like some of theil stocks, but not the alternates because oil's coming down. ericillinois, eric?

>> caller: boo-yah, jim. >> boo-yah. >> caller: it's my 3th birthday today i g slaughtered by 80 y erican dairy today and i'm wondering if i should take my losses and walk away -- >> i kno american dairy, it like, you say, oh, jeez that must be -- in china. it's a chinese play. i'not making fun, don't know how to -- if they would givehe onetic, i would be able to say it. i don't want to touch th stock. it smells like spoiled milk. hoabout donna in california. donna? >> caller: boo-yah from sizing southern california,im. >> wow. wow. hit me, onna. >> calle i'm looking to see what going o with fnfg. >> this is one of my absolute favorites. i'm putting the finishg toucs on a book i'v been rking on and firs niagra, figus large is the ban that the ic should be giving more help to.

it gave them a lotof pnc branchs. first niagra is one of five regionalanks've highlighted on this show tt i feel very stly is a -- >> buy, buy, buy! >> - right here. how about we go to kyle in ohio. kyle? >> caller: boo-yah, jim. >> wt's shaking? >> caller: i've been wching your show foabout six months, you've helped me out a lot a my 20th birthday. >> congratulations. >> caller: hasboro. >> i think it's chea suggested it may be one ofthe stocks you give a kid. buy one share when they're born. i want to make this int, i k they are under alo of pressure for no reason, you want to own it for secondhand strength. good buy here. james in texas. james? >> boo-yahm the home of the alamo. >> h, man, i'm loving the alamo. i remember it. >> caller: how you ing? >> h about you? >> calle i'm doing good, mple questi, i want to get

your take on jonesapparel, jny. >> why i'm not a big fan o retail, i think john mclane, the o have put together one of e be retail operations. that is one of e best-r companies, there's a l of good research, goldman recommended i last wand the clms got the financials under conol, ich is a lot more than i c say for a lot of companies. e bottom line on jonespparel and the bottom le onlightning rounisit's over. >> the lightning round is sponsored by tdamerit. heat mapping shows me where the money's moving. twenty five hundred stks... one quiclook. that's where the acti is. plus, this amazing gadget. it's called t telephone. i can call td ameritrade anytime and talk trades, stragy... anything. td ameritrade. built by trs, for traders. this is what ieed. announcer: trade commission free for0 days, plus get 100 dollars ch, wh you open an account.

. disgusti -- trying t figure out if i hav steak tomoow night. and i'm trying t figure out, can i have steak two nightin a row? chicken, . >> this fromedward. i'm not like a person, not like a tv person, figuring out what i'moing to have for dinner. edrd writes, jim, about time somebody s about the uses onhe nymex. i was in the heating oil business for 40 years, and i've been talking about the lega galizing price fixg since

the 1970s. why not pass a law thatays if you don't have an epa/dec d every other government regulary agency approved, you cannotuy oil futures? edward, in principle, i like this idea. we need middlemeno make it so that some companies who need oil be able hedge their risk. but yoknow wh, edward? before we h oil futures, thi is what we did, basically. and i think you're right. i know that makese an out of this -- makes me a throw back, but u know what, i'm sick of the speculation, and sick of what it d to america, with the $147 price. whic we kw was catastrophic for america. here's one from ann. dear mr. cramer. myom and dad lov the seven bells and have owned the telephone st. used tbe seven uns when ma bell was broken up. through all the chges, they keptheir portfolio. my fatr recently died and my moers unre about her at&t stock, it hasost a considerable amount of money. she has a sizeable amot of

should she sell some d keep a portion for the dividend checks? yo thoughts would be appreciated. >> we have the usual rules diversification. the more than 20% rule, we're going to sell regardless wther we like the stock. think the dividend is safe, anwe think stevenson will come on our show and wll talk about it. i ho it will be boosted. i have nearsother than versification fears. please be sure, not morthan 20% in one stk. "mad money" is back after the break. úúúúúúúúúúúúúúúúúúúúúúúúúú

whitney,o big. that's what it takes. always a bull market somewhere, i pmise to find it just for you here on "mad money." i'm jim cramer. see you tomorrow! up next on kudlow. bank stocks leave the markets at four-week highs. bailout nation for c.i.t. barry writholts and we're here on business. tdd#: 1-800-345-2550 "the dt might be settling... tdd#: 1-800-5-2550 that's great, but i'm not." tdd#: 1-800-345-25 tdd#: 1-800-345-2550 "i guess i'm just ne with doing nothing, y know?" tdd#: 1-800-345-2550 tdd#: 1-800-2550 "oh, i'm not thiin about moving my moy.