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i'm jim cramer and welcome to my world. >> you need to get in the game. >> going out of business and he's nuts! they're nuts! they know nothing. >> "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money," welcome to cramerica, other people want to make friends, i want more days like today. my job is not just to entertain, but to educate. so call me. at 1-800-743-cnbc. after four miserable weeks, four miserable weeks straight of the market going lower, how do we make sense of today's fabulous, fantastic rally? ♪ hallelujah >> with the dow soaring 185

points and the s&p 500 up 22. what kind of market that seemed impervious to good news roaring? to get this rally, i've got to put this in context. to get this rally -- to find out what this is about, first you need to understand that the market is -- ♪ a battlefield >> to quote stock wizard jordin sparks. ♪ and today, one of the bear's chief generals a true kodiak waved the white flag. yes, i'm talking about meredith whitney, the bank analyst who captured the hearts and minds of the bearish media. and her upgrade of goldman sachs today, white flag waved. there were a host of other

upgrades today, the merrill lynch upgrade of electronics granger, the jpmorgan upgrade of rockwell automation. who cares about any of those? the one that moved the market, the one that matters was meredith whitney's about face on goldman. why does her opinion matter so much more than anyone else's? not because she's been right. she's been dead wrong, staying bearish on the banks, even goldman, by far of the best of them for far too long. it's not because it's anything new either. whitney's the only analyst who isn't positive on goldman. she is the only one that wasn't positive. there was nothing new or noteworthy in her change of heart. all she did was say what we already know. i've been buying goldman for my charitable trust for years and on this show we've consistently stood behind this best of breed banks all along what's her

attitude been? our attitude on goldman has been that -- ♪ ♪ ♪ we are strong ♪ ♪ no one can tell us we're wrong ♪ >> and we've been right on g.s. all along. now referencing pat benatar, nowhere near american idol-winning sparks. meredith whitney so late to the party on goldman, she's even lagging the front page of the "new york times." online this weekend i saw this they talked about the possibility of a blowout quarter when the company reports tomorrow. i wonder if that's where whitney's getting her information. if it's not because she's been right or because she's got some new argument, why the heck does meredith whitney matter? simple, last week i talked about stock market, how nobody seemed to care about any good news and everybody was just acting bored and negative. well, there's 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 battlefield, the battlefield of the market. and turn codes can turn stocks as you saw with today's fantastic move. and meredith whitney is as about as important as it gets. the media, which loves to be relentlessly negative, has a lot on her -- let's say her questionable analysis, for such a long time that when she changes her tune and joins the land of the thousand bull dances forgot to cue that song, the press may just have to follow. you have to understand, this is much bigger than just a call about goldman sachs, the best of the banks, with a positive remark about bank of america thrown in, something we predicted meredith whitney would have to do. ...

we said she'd have to cave a month ago. she has given the bearish media aid and comfort with pushing its relentless view of your house as a tar pit. the media needed her for its legitimacy, her negativity on the banks was the biggest prop for the bearish view. now it is gone. now it might come tumbling down! at last, we might be able to put the problem of housing into context. here's some numbers, we should just use the motions. what the heck, why should we be empirical, just make up stuff, no, can't do. there were 14 million homes bought between 2005 and 2007, the media's now betting that 50% of the mortgages will default, 7 million mortgages of the 14 million. average mortgage $200,000, and that comes out to $1.4 trillion. it sounds big. banks have already written off more than that. we have written off more than 50% of the homes purchased during the hay day of the housing bubble.

i don't believe things will truly get that bad. for the sake of argument, it's true that 50% of the mortgages from that period were adjustable, so the media's outlook is essentially saying that 100% of those adjustable mortgages pick or pay all of that nonsense going to default, 100%. to me, i don't know, maybe i'm just a simpleton, but 100% of all mortgages that are adjustable defaulting seems high. but let's use it as a worst case, because we can't use 120%, because it's one of those things you can't have more than 120%. we've already written off more than that and it seems to me it's the worst case. and to me that means the worst case is already built in. that's not the kind of the fact that the bears are normally disposed to take notice of. the biggest of them has now broken ranks and raised the white flag, and of course, claiming she was always bullish on goldman, then maybe at long last some of the others will listen to reason. i've got the bottom line for you. today, one of the most -- one of the fiercest and most influential bears, a real

general of bank negativity ran up the white flag and then changed sides entirely. unlike jordin sparks -- ♪ >> meredith whitney swallowed her pride, raised the white flag, called of her fellow bears leading the way with this incredibly late goldman sachs call. and as nutty as it seems, the impact decided the battle in favor of the bulls just when they themselves were about to surrender. proving once again that you should never get too negative because you 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. or even still, behind. mark in florida, mark? >> caller: boo-yah to you, jim. >> how are you? >> caller: mark down here in florida. >> all right. okay.

>> caller: i have two questions about the obama administration's plans to reduce our dependence on oil. >> yeah. >> caller: do you think the treasury department's plan to spend $3 billion on renewable energy will have a significant impact on the prices of these stocks? >> no, none whatsoever. what matters is the price of oil. we think the price of oil was manipulated higher by a series of rogue futures traders. that is not the general consensus of the people who trade options -- trade futures, but it shouldn't be because obviously they're fighting for their lives. if you raise the margin requirements, this shouldn't have happened. oil is going down. it makes it more difficult to have alternative energy and don't have the money to support it if it's uneconomic. steve in california. steve? >> caller: yes. >> steve, steve. >> caller: yes, sir. >> you're up. >> caller: oh, boo-yah. >> boo-yah, chief.

>> caller: from california, jim. >> what are you? sacramento? >> caller: no, pasa robles. >> what's up? nicer area than sacramento. >> caller: two weeks ago you spoke about valuing stocks by comparing stocks pe multiples to the growth rate, thank you very much, by the way. >> you're welcome. >> caller: i have a couple of questions around this. first, what growth rate do you use? revenue, eps, net income, or something else? >> no, i use earnings per share growth rate. >> caller: okay. good. second, i'm looking at home depot. using your evaluation technique and wonder given the current housing market if these valuation rules still apply? >> yes, it does. i think next year they're going to be much better because the housing stabilization, housing bottom stabilization, not housing appreciation, plus the fact that mortgage rates are back to 5.12 and will go under 5, triggering another wave of refinancing, means home depot is the place to go to fix your house up if you bought it in foreclosure.

i think home depot is a buy. dow's up 185, the market is a battlefield, and unlike jordin sparks, meredith whitney swallowed her pride and waved the white flag. stay with cramer. coming up, dollars and long distance. cramer's making a call on one communication stock that could have you dialing up some "mad money." plus, chemical reaction, jim's examining one stock to tell you if they have the right formula for profits. lightning strikes, cramer goes electric taking all of your calls in a spine-chilling overcharged lightning round. all coming up on "mad money."

i uld have talked to youou tonight t about a mpany that some of you could bebe -- well you're abobout to beme big shareholdersrs in whetr you like it or don't. i'talking about -- frontntier communications. frantom riley. ftr. agreeded to buy 8 million land lines from verizizon in 14tates in exchange for $5$5.25 billn in stoc okay, that's why you might t be getng some as well as assuming $3.3.3 billioin debt. now, y you know 're fans of the long suffering v verizon othis showow. weike its juicy 6.3% yieield. and whwhen this al goes through, if you'ra verizon shareholder, you' be getting one share e of frontierer, a $6 a change stock

for every 4.2 shares youou own o verizon. what should you do witith it? and everyone elslse on t sidelinenes, does is mean that froner might be worth buyingng now or more likekely at so point in t the futur after the veverizon areholders collectheir frontier shares s and then -- >> sl, sell, sell -- >> -- on the open n market bause they don't want t to own a frontier bececause ty don't know what it is and that cocould depress the e already w price. verizon shareholders s will own 2/3 3 of thehares outstanding after the deal f finishes. let't's take aloser look. everybody knows the old-fashned telephone businessss a stinker, which is w why verizon's been off l loading ld lines ke crazy. that said, there are s some rereasons tohink that frontier mit be worth holding on toto or buying after verizonon shareholders s sellingnduced dedebt. afafter thdeal, the company will trip in size. it will become the largegest rur phone carrrrier. frfrontier ss this as an oppounity to reduce line losses, increase, anand i thin this is realally theart of the story,ncrease broadband penetration if you're e a land line opetor, that's where the

money is. d also achieve $500 mimillion in cost savingsgs. all right, now this onone has an alarminglyly high yid, i say that because a b big yieldaises red d flags. this has an 11.4% % yield afr the cle of the transaction.. ththat's theind of dividend that i think is, well, could d be dicey. rememember i sd i wanted to hear from theeo before i pronounceded it safe. it's posossible might be better ththan it ses and that the yield alone should m make the ock wortrth owni, it's a $6.65 stock with a $1 1 dividendayout being cut t when theerizon deal closes to . if frontier can justst maintai its 75ent dividend, listen t to e math, the arithmeticic, i'm sorrrry, you wld double your

moneney in abo six years by rereinvestg the dividend even if the stock went nowherere. thatounds good, but in thehe not sommortal words of maratathon man, is it safe?e? well, frontier's's expecteto generatete $1.95n cash flow per she and about 1.1 $$1.1212 in free cash flow perer share frontier h has no bidebt matuturing unt 2011 when $1.1 biion comes due, that's s not an immediate worrrry. it's got time to refefinance companies trying t to get s debt rati up, so there's less chance of f a divind boost or share buybacks here, b but the agenci have become more sitive, moody's putting g it on review, fich doing the s same. the biggt worry isn't the debt the dividend, though,h, it's that f frontiemight go the way thatimilar companies that t have bought lanand linefrom verizon in t past. when you look k at what ppened toair point communicatioions, that bought lines fromom verizon in new england andnd then d its shares plulummet fro$9.02 when the deal went througugh -- thiis hard to say,y, less an $1 now? you've got to woworry abouthe -- let's see the fair poioint possibilities for frfrontier

okay, there's a bibig diffence. the e fair poi deal required a complex anand expeive migration from verizon's old sysystems t newly buililt ones. ontier isn't creating nenew syststems, payg verizon to operatthe ones it's buying.. so right now the ball'l's in frontier's c court. if theividend's protected. i wod not recommend it unlesess was sure, it could be e an attractive prospspect espeally after r being t by the shareholders s selling. it has to demonstrate e it can a vae otherwise i expect t the stock toto get pumlled. it c could be a serious portunity, but i've also got seriouous concer that i canan't resve on my own. so l's talk to someone whoho can. somemeone whwanted to come on e show because i said d i don't know if that d dividens safe. i'i'm talkinabout the ceo of ontier communications. maggie, , welcome "mad money." >>i, jim, it's nice to be e here. >> i'm gd you stepped up because, y you know we've been

commending verizon sincece the show starteded. i know that peopople will t th, and i think they'll l just toss it away.. others will l be wored that the dividedend's notafe. so why d do ent start from the to it seems l like a hu transaction for yo and i thinink you'reoing to be der pressure to see reresults quickly. what's your gameme plan toake sure ts transaction works? >> wl, i think it starts a and ends with executution. and that's somethihing thaour companany is vergood at. we a the second largest rurural telephphone compy today, we will become t largest. rurais truly our business.s. we undererstand ese markets, theyey're veryttractive demographics, , very silar to the markrkets thate run today, and we're going g to oveay our local engagement modelel, which how we frcely compete in our markets today. we own ourur marke, we compete against cable operatorors predinantly, and we do a g great job on b behalf our business and resintial customers. i'll ge you a good example.. >> okay. >> one othe things that we do is we really innovatate on the front linenes. many of r customers did not

n pcs. and as we roll outut broadba, it'sard for them to take advantntage ofetting on the internet if theyey don't he a pc in theheir hom m talking in some of o our markets 30% to 40%.. >> tt don't have pcs? >> don't h have pcs. soso over e last three years in a panership with dell cocomputers,e have given away to our customers s over 90,0 pcs. in excxchange r them taking a bundle of our seservicesor veral years, and it's s been wildlyuccessful for our mpany. >> all r right, exllent. now, the maiain reason wanted you on y you know because i question how youou can affd to pay that 7 75 cent didend given thatat what 've seen from land li pressure at the majorors like verizon anand at&t. >> well, let m me start saying that our access liline losseare a lot lessss than a rizon or atat&t. and d we see tt as a huge opportity. a od example is if you l look at the properties that wewe're buying, their laland line sses

are er 10% annually. ours is under 7%. and wewe thinke can reverse the trend in those m markets jt like we've e done iour markets. inddition to that, we are e rolllling oumany new products for oucustomers. over 45 new productsts in the st couplef years generating ovever $100 m millionn net new revenue. so we ok at ourselves as thehe one-stop s shop foall commununication rvices. and d we've grn customer revenue,ven in a very tough economy from the first q quarter of '08 to the first ququarter of '09, our revenue p per custor is up or $3. >> thahat's veryifferent from the jors. now, i'm a huge e believ that the marketet's prey smart, not alwayseally smart, but pretttty smart. and whwhen i seehe size of that yield, what it says s to me is there are mamany peoe who questition youbeing able to mainin that. you t the yield for -- youou cut the dividend to o 75 centswhy not t cut it b and make sure

that there's no o problem th the rating a agencies d then kind of build d it up er time as you're re things work out? >> well, let me e start saying ouour divide cut won't take ple until the transaction.n. so current frontieier sharehders today get $1 per s share didend. at thehe time ofhe transaction, whate looked at was what i is e investment that we h have to put t into tse new markets from an integration p perspecti and fr a high-speed rollout t perspective? and we wanant to accerate that high-sed rollout in these markets. because on a average is about 60reach today for high s speed. and thmarkets where we do business t today oureach is 92%. soso in aclerating investment, we wanteted to me sure we had a dividend that was s sustainae, but so, we wanted to make susure we stayeyed very shareheholder-frndly. think out it, jim, we're goioing toto have inhe first year $1.7 billion in free cash f flow befo synergies.s. the papayout bed upon the number

shares outstanding wiwill be about $740 millilion. thatat's low than a 50% payout rao, we think that divididend is very safe. > that's portant. i gave allusion, i know w it's n necessarily fafair becau of the oblems fair point had d in execution at thehe top. you said you werere not ncerned ababout excu. -- executionon. clclearly, tugh, you're running into this issue with thehe stock that couldld you be e next fair int, what is your elevatator talk to people who s say, list, itit's goto be the next fair point. >>here are four key differences between our r transactn and the fair point transaction. and i must say t that ivanthe ceo of verizonon, whene and i sat downwn abouthis transaction. rerememberi went to him to buy theslines, not the other wayay around. >> that's very importantnt. >> i said to himim this tranction has to be differerent. first,his is deleveraging for r our company, we geget 2.6 tis leleverageatio, which is approachining investnt grade day one wh we closed that trsaction. and d fair pnt was over

leveraged four times w when they did this traransacti. secondnd, you meioned this, the syems. wewe don't he to create any new i.t. or r financiasystems to do thisransaction. there's one ststate, wes rginia, that we will c convert at the time of clolose and wre already wellll into thplanning on that nversion. but the other 13 statetes come with their own s set of syems, ving us the luxury to coconvert those systems on ourur own timetable. the thirthing is we do buness today in 24 statetes, 285 cities. we are a large $2.4 bibillion company. fair pointnt was a sll company and dididn't havthe experience or the reach likike we havin our markrkets toda >> well, i'l'll tellou. i'm a a believer i'm a beliliever. i woululd tellou that i think as someone who knows s stocks, u know your r businesshat there wiwill coma better moment. i don't thinink the vezon people who get e stock are going to understand the thingngs you sa. the ee jerk approach is usually to get rid of ththe stoc i think that might be e the opportrtunity ven what you just id.

>> we've b been outhere very actitively meeng with top sharehders for verizon. >> okay, that's maggggie wilderrotter. thank yofor coming on. ththere wi come a moment and m going to tell you whwhen it is when think the stock will l be fully didistribud and the pressureill be over and th -- >> buybuy, buy! >> we're g going to y, buy, buy. stay wh cramer. >>coming up, jim's examimining e stock to tell you if t they have the rightht formulaor profitits. us -- the time has come e for cramer to guide yoyou throh ththe market ups and downs. ock after stock. on t the ligning round. and later, e-maiail us at madmoney@cnbnbc.com anjim could you answer o on the aion an all new w "mad mai coming up on "mad ney."

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last week, i t tk k a ll in ththe ghghing round from allen in maryland about wrwrrarace that's's g f f all of you home gamers and retrospect, i t thi itit fpppp it a little bit. 's better to come cleaea thth is a company that i remembmberrorothe old days, they d this great food packagining businenessndndhey had a shipping line, now i i kn g gotid of the shipping line, but i i dn'n'know the new makeke-uofofhe new grace.e. blblesd it as a speculative play based on what i k kneofof - it's just t isis gat chemical bubusissss but whwhen w wenback to do more memewo, which is what i alwawa do when i feelel le e haven't nailed s somhihi down for you in thlightning round. i i alized that wr grace w was whole lot betttt t thai thought. so what's with t ts s aming grace? company's s t t twmain businesssses

specialty chememics s d construcucti p procts. buthe real story here is thahat wr grace is what i c cala a po asbestososanankrtcy play. it's a mouth f ful that's's rhtht, m recommending the e stk k a company that's in bankruptcy. i usually don'n't t tha do i? why y i i dng it now? bebeuse i think the opportrtuny here i is o o od to ignore. isis inot like a gm stock that i was trying to get t th government to stst t trang, all signs s pot t this one emerging om bankruptcy in the n n t too distant futurere. wr grace went t in b bkruptcy not becacae e thbusiness was awful but because ofofsbsbess lawsuits. coanies settled all of thosese claims back in a apr.. it's already v veded oa plan of reororgazazaon. onone erere e current stock won't be c canleled,hat's diffffenent om the other bankruptcies, includudg g gm and the onlyly dususn from the new shshar t tt they're creating toomomout of bankruptcy are e 10 millioion rrrran, not common stock, that can bebe cvevert tototock once the share prpric hits $17.

that's 48%8% hheher an the cucuenent ock price. the warrants expire e a arar fm thdada that wr grace post bankruptcy p plabebemes effective, something i i tnknkan happen b betenen aust and seseemembe dinarily, i would tellll y t to wait before buying a s sto l le thth until the dilution alalrey happens and all ofofhehe n shareholdersrs sl,l,ind of like thfrontier situation. but since there won'n't a anyew shareholdede u unls the stock has a gigantic 48% runun, consider that t a etetty hihighuality problem. and like wr gracace w,w, iike it now.w. before i it erergefrom bankruptcy and attttctcts real llowing research covererag people buzzingngboboutt. atat mes me so confident here? well, for one thing,g,hehe cpany seems confnfidt.t. they schchededed aanalyst day on ptptemr 24th, that's not that r from now, and peoplele d't't dodo b a anast days in the mmer. you justst d't'to that, you don't schehelele tt meeting unless you've got goodod tngngs say and you're hopopinyoyou' get picked up by t thealalstreet prpromioion chine.

thth analyst day is one ofof t clearest signsnsetet tt we have the e wrrara on its way out of bankruptcy and intntprprosrity. most of ththe bebeos claim hoerers ve voted in favor of the reorganizatitionlalan o. i'm not worried abouout changing for t t w wor. there's anototr r reon i like wr grgre and that's the histotory not t thhihisty of grace, which story of the old shippingng line company, but ththhihisty of other compmpans s at have gone completely b banupupt e to asbebeosos a emerged. the beststomompason i have for isisne are other companieses, household companieies u u y have heard of, ararmsononworld, owens corning, and ong. kaiser amiminu ong, the o one warren b bfefet a lot of.. what happened to them? the general trend wawas ririou outperformrmcece f the first 7 to0 0 nths after they emergeged from bankruptcy. and then the stocks dropoppeofof but that's's mtltly e to the ctct tt they're highly exposed to housing. asasbeos went into housing.. for wr grace the bad h houngng news is inin t p pasand later emergence from b banupupy than

these others might endndp p rely payiyingffffor shareholders. and d thotothe were pure housing plays with asbestos. grace is not a aouousi play. let me g givyoyosome specific examples, though, soso y c c see why i'm so k kn n onhis. armstrtrg g wod emerged on tober 2006 then peaked at t $57.48. a 47% gain at the highgh. cornrng g le bankruptcy november 06, peaked may 31st ofof 27,7, 31.8% gain, kaiser out o of bankruptcy july 7t7t 2 200 peakededn n ma10th of 2007, up 11111... only usg failed to h hava a meingful move, up 8.1% betweween its emerergee e om bankruptcy anand e peak. ththat p ptty solid. isn't the hihisty y ear? compananiethth emerge from asbestos-inducucedananuptcy seem to get a m mul-m-mth boost. ani'i'm unting on that to helplp put wr graracevever e top. how abouout e e ndamentals?

thcompany's specialty emicals business, its s gggges area is what's k kno a a catalysts.s. these are e us b brefineries to reduce sulfur emissionons d d remove impurities.s. the businene h haseen helped by an overall increase e t the refining of whatat'snonowns hehey crude, a higher sulflfur content.t. anevev though short-term refining a actititis down on lower oil consumption,n, a k kd of economic recocoryry igoing to help t thibubuness. weon't have to wait to buy this one b becsese gce's chemical dependencnchehelp cut down emimissnsns reduced nitrogen o oxi e emiions by 35% to 50%. addition to reducing thehe sulphur cononte o odiesel. th makes a very -- for a verery obama-epa friendndlytotock a cap and d adade ock and the kikindf f siness that should benefit from pro cleananirir, anticlimatatchchan from the demomocrs.s. i keke d doi that. i'm still gettttinusus the whole ocbeber volution. the november electioion ining.

ananyw, the other side of grace's busisine i iconstruction ododuc. makes use e ouofofoncrete and mements well as specialty coatings that prprott t stcture frfromire and water. there's obobvislsly t a great sisine at the moment. ththgh i should note that t 48 of sales are froroininteational, nonot e u.s. construction activityty aososs e board is veveryeak. right now grace's s buneness altogethererararryouble digit opoperininmargins. strong market share.e. it's number onone t t catalysts i was talking about, andnd a i i all, the country t thrs s f $100 llion a year in free cash h flow. at's pretty darn healtlt.. 's a overseas player, , 60ofof the sales frfr t theest of the rlrld,e think the dollar's getting weakerer a t tt's fairly go.. d d it only followed by one analyst. could explodode i ipicks up mo c covage after emerging from bankruptcy. grgre is the kind of stockck wre you simplyly he e tosk, are things g goi t tget better? ororrere ty going to get worse? if you subscriri t to e much more a aggsssse view of the

rlrld ticulated as the news letter a as llll athe friday nighght owowyou would have to say this stockck ia a reaming buy right now and even i w wasas a more cautiouous tltloothink ththgs could get much betttteror this company. and whwh t thedo, well, you want toe e the stock beforehand d not sitting on the sididinines let me give you someme ceaea. there isis nururgey to buying ththisomorrow, the next day, or the next day. fact, i'm only focusisi o on today because e i t t e-mail frfrom v vier after i responded to the lightning round q queioio about it l lasweweeknd the vivierer sd listen, jim, you've got to do more homeworork. i did and liked whwh i i discovered. ryry l ltle reseseahhn n th company, ly reports from cl kining,ooood firm, but i i shsh tre were more toto rd d out it and it is solutely speculative, , doesn't trade muchch. let me make thisis carar, ere's nono srt-term catalyst to buy the catalyst in wr grace, , there'e's h hur. anifif pple go crazy and pay upo buy it tomorrow i'veveotot totoeaead at grace moved a lot, stk will come back down to where it went out t toy y in short titi.. l l thusual rules apply, wait

a week for thehe plblbac use limited d orrsrs, n't buy at on.. i i waed to respond to the viewers who deservedd m morthani gave them on w wr acac i went back, dididomome re homework a andouou out i like isis sck even more than i originally thought. expect it to soon emerergerorom babankptcy with pretty favorable tes and end markets thatatavave a a d dowit looks up to me feel. scott in newew yk,k,cott? go ahead, scottie.e. >> caller: jim, a big g ffffal boo-yah. >> holy cow, boy, i'll telell u. how the bills gogointoto bthis yearar how w abt t a o. boo-yah. >> caller: n n >> he's all yourur p pal he's all youours let's turn it into a s spos s show. lelet'talk about -- i'm sorry, i was out of line. >>aller: that's right, bretttt favre going to m minsosota >> well, b b.. gohehe.

go aheadad, drdro rtinez going tohiladelphia. >> c cleler:eah, pedro, used to play for m my tsts, mon playing for the yankees. if we're going to go o t the sabers, we're e relylyn trouble he.. what's the stoto?? >> caller: i'm a auaualla red wings fafan i iad to -- >> what didid u u ink about the bibiflflie pick up? >> caller: no.o. >> go ahead. hit t meitith mething, will you? >alalle dow chemical, needs to be capped off by glglas ceiling g arndnd 4over the last teyears. >> okay. >> caller: good d ne, , d news? i noticed dupopontasas bn generallllcacapp off around 50. is thihiininditive of the chemical sector?r? >> no,o,o,o, nfrank mitch from bb & t putut o a a ppositive piece he believes the e sendnd haha c cou be better than the rst half. rember, i've been anti-dow.. i don't want to toucuch atat, dupont, i woworrababouthe vidend.

the e on o o i feel good about is what charles bunch h meme o dividend seemsms se,e,pg seems li t theight one. u u wa a chemical, get into ppppg d good luck for every y single buffalo teaeaanand en to t.o. i'm a gegenel l an charitableleanan. let's go to darrrrel n nth carolilinadadarrl? >> callele - -- reeching through p pne. >> allll rhtht. >> caller: h h, , daell, from nortrth rorona, big boo-yah, to you, jim. >> are we talking about ththe tarheels, the wowolfacack? >>aller: we'll go with the wolf pack today. i is at a stock? caller: i was doing s som memewo for the buying homework on ppg stotock o o. i was looking at theheririceo earnings for thehe lt t quter, it's at 15 minus 15 indudust average is at 19, , thprpre to rnings for the year is 21 1 rsus industry average e 1 14. looked at ththe btbt ty took down last quarter is 1 105 >> all right.

>>aller: the long-term debt t to equity ratio is 84 v vers s industry average. i it'not beautiful, i admitit that. caller: yeah. have the fundamentals s chgegeon ppg? yeah, i think the maiain ining you'u' g goto look at. two years s agi i thk ppg had ouout asian exposure, now up to 15%. ppg has dramataticlylyut back exposure to automobibile b bece much mororofof ainternational lever companany. e previous caller i tried d to talk him out of buyingnghehe bualalo bers and bills and getting into ppg, but i dodo believe that ppg is s thonon chemical company i'm goioingo o reremmmmenng on this show. l l ght, thank you to allalan maryland, all ththpepeop in buffalo and north cacaronana. he asked abobo w wr ace, another e-mailer p pddddede to do more work, anand ththinit looks good. limit ororrsrs, ke your time. the'e'no no catalyst other thth t theact that the e-mailer made me feel like i neneed t to more homewewk.k. and stay with cramamer nextxt- - trto keep up with amam as he takes your calllls

rapid fire in an allll n lightning roroun madmoney@cnbc.com and d m m cod answswerououn the air on an all new "mad money." l coming up on "mad money.y." .

call or click today. it is me. it is timeor the first lightng round of the week on cramer's "mad money." hey, rapid fire call, one ter another. u tell me the stock i'll tell you whether to buy, y, buy, or sell, se, sell. i don't know the calrs or the stocks aad of time. we'll play until you hear th sound and then the lightning round is over. are u ready ski-daddy? is time for the lightni round. let's start with laura in illinois, laura? >> caller: b-yah from

illinois >> excellent good to have you on the ow. >>aller: okay, i picard a nth ago -- >> no, it'on fire. people don't understan this business is doing ch better than peoe realize. this is a truck enne business and i woulbuy, buy, buy i've got to tell you, rightere below 30, i think yove got to look back and say hodii get a chce to buy it so cheaply? how about n in my old state of pennsylvania. ben? >> caller: hey, jim,oo-yah from pennsylvania. >> oh, boo-yah. at's up? >> caller: my stock lincoln nationalorp. >> round and rounda big upgrade on friday, my friend doug cs who writes with me at realmoney.com is telling me, jim, get positive on lincoln at lincoln national fid,ut ets that has to do wh the eagles.

i think i'm going with dg cass, he's got the h hand, ever since spx the generatnal boom, i'm going to join him and recommend buying lincoln nat. jan in texas. jason? >> caller: hmr. cramer. >>has up there? caller: i'd live to give a big minnesota twins win twin boo-yah to you from the scorchg deses of west texas. >>ind boo-yah. i'm wiing to give you a ranger boo-yah. go aad, you know, it's home run derby, anything can happen. what's up? >> caller: energy converon devices. is it all bane from here? yes, it is, my friend, cause oil's going lower and we don't want to touch anything, anything -- it's an easy trade to avoid, everhing that's involving l right now, alternative toili like some of the oil stocks, but not the alternatives because o's coming down. eric in illinois, er? >> caller: boo-yah, jim. >> boo-yah. >> caller: it'my 30th birthday todai got slaughtered by 80 y

american dairy today a'm wondering ihould take my losses and walk away -- >> i know american dairyit's ke, you say, oh, jeez that must be -- in china. it's ahinese play. i'm not ki fun, i don't know how to -- if they would give the phonet, i would be able to say it. i don't want to touch this stk. it smells like spoiledilk. how about donna in california. nna? >> caller: boo-yah from zzling southe california, jim. >> wow. wow. hit me, donna. >> caller: i'm looking to se what's going on wi fnfg. >> this is one of my absute favorites. i'm putting the finishin touches on a booi've been working and first niagra, figures large is t bank that the ic shod be giving more lp to. it gave them a lotf pnc

branes. first niagra ione of five regional banks've highlighted his show that i feel very strongly is a -- >> buy, buy, buy! >> -- right here. how about we go to kyle in ohio. kyle? caller: boo-yah, jim. >> what's shaking? >>aller: i've been watching your show for abt six months, you've helped me out a l a my 20th rthday. >> congratulations. >> calr: hasboro. >> i think it's cheap. i suggted it may be one of the stocks you give a buy one share when they're born. i want to make this point, i think they are uer a lot of pressureor no reason, you want to own it for secondhand strength. good buy he. james in texas james? boo-yah from the home of the alamo. >> hey, man, i'm lovine alamo. i remember it. >> caller:ow you doing? >> how about you? simple question, i wantoet yo take on jones apparel, jny. >> w i'm not a big fan of

cfo have put together e thehe retail orations. that is one of the best-ru companies, there's a lot of good research, goldman commended it last week and the claims gothe financls under control, which is lot more than i can say for a lot of companies. thbottom line on jones apparel and the bottom line onightning round is, 's over. >> the lightning rounds sponsored by tmeritrade. the way the stock market's en acting lately you may nder if you've been doing t right thing. the advice you've been getting lping or hurting? are e fees you're paying really worth it? td ameritrade's fe are fair and straight-forwar their search is independent and unased. their investmentonsultants are knowledgeable and the when is indeyou need them.ased. so w not talk to one? announcer: call today tochor visit a td inveameritraderanch.

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disguste-- trying to gure out if i have steak tomorr night. and i'm trng to figure out, n i have steak two nights in a row? >> chicken. >> thiis from edward. i'not like a person, not like a tv person, figurint what i'm gog have for dinner. edward writes, jim, about ti somedy spoke about the abuses on the nymex. i was in the heating oil business for 40 s, and i've been complning aut the legaling price fixing since the 1970s. why not pass a law that sa if

you don't have an epa/c and every other government regulatory agency apoved, you cannot buy oilutures? edward, inrincip, i like this ide we need middlemen to make it so that somcompanies who need oil be able to hedge their ris but you know what, edward? before we had oil tures, this is what we did, basically. and i think you're right. i know that makes me an out of this -- makes me a tow back, but you know what, i'm sick of the speculation, and sk of what it did to america, th the $147ce. ich wenow was catastrophic for america. he's one from ann. dear mr. crame m and dad love the seven bells and have own the telephone stks. used to seven units when ma bellas broken up. since they were marrd 63 years ago. through all the changes, the kept their portfol. my father rece died and my th is unsure about her at& stock, it has lost a considerable amount ofoney. she has a sizeable amount of stk in the company. ould she sell some and keep a portn for the dividend checks? ur thoughts would be appreciated.

>> we have the usual rules of diversication. the more tha% rule, we're into sell regardless wheth we like the stock. we tnk the dividend is safe, and we think stevenson will come on our show and wel talk about it. i hope it wie boosted. i have no fears other th diversification fears. please be sure, not more tha 20% in one stock. "madoney" is back after the break. the e ctor diagnosed arthritis s y right knee.

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whitney, go bibi thatat's wt t takes. alalwa a a bl market somewhere, i promise to find it j just r r you here on n "m m mon." i'm jim m amamer e you tomorrow!