tv Mad Money CNBC July 25, 2009 12:00am-1:00am EDT
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nasdaq futures were looking down ten points, a sure sign of a sloppy opening. if not a catastrophic one. but it didn't happen. oh, the bears should have on their day in the sun after such a remarkable, unprecedented bullish winning streak. which should have brought out sellers no matter what. instead, the dow jones average closed up 24, and the nasdaq, it was a glancing blow. down eight. why the heck didn't we get crushed today? i'm sure most of you are mystified by the market's contrary behavior. was it because microsoft or amazon or american express really weren't that bad after all? not on your life. i mean, we went 0 for 3. and the market still held up. the reason? i know the reason. the reason was fear! that's right, pure, unadulterated fear. and panic! >> no, no, no, ahh! >> that's what kept us from
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being poleaxed today. >> they know nothing! >> how does it make any sense? you see, there are simply too many money managers, who cannot afford to sell. you heard me. they can't afford to sell. have they all gone insane? no. no. you see, they're totally right to be terrified of selling stocks. terrified. tonight i'm going to welcome you to the world of professional money management. i'm going to put you in my head, along with the 57 people currently agglomerated in there. this is something you probably wouldn't think of. you've never been behind the eight ball, the professional money management eight ball, so let me clue you in. when i was a hedge fund manager, the thing that i lived in fear of the most -- and that's saying a lot -- was exposure. not like whether i had my pants up or not. exposure is wall street code for how much stock do i have.
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what percentage of my assets are in cash versus stock. and do i own enough stock not to be fired, on be terminated, to have to wire the money back? i know it's probably inconceivable to most of you that someone would ever need to own enough stock. either own all you can at home, the home gamers, or you try to have a percentage of your assets in stocks. i mean, that's prudent. but prudence, that's not how it works in the world of money management. for the longest time while the market was getting pummelled on a daily basis, the money managers who had the most in cash were revered, they were bowed down to. they were the ones who saw it coming. they were the sages who knew not to have too much exposure to stocks. because their performance was so much better than those who were loaded to the gills with equity. not so anymore. now those managers are considered losers, jokers,
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namby-pamby bears, yogis and boo boos, who have been left behind in jellystone national park. we like to say that they don't have enough stock on. meaning that they need to buy stocks on any break. for a money manager these days to not own enough stock is to risk falling behind the averages and to lose your job. and you will lose your job if you're falling behind this year. i know i would be firing money managers, i would see who didn't have enough stock and i'd call them and tell them to wire the money back. that's what happened to me. 1998. read about it, "confession of a street addict." everyone else writes about me. why shouldn't i do it to myself? to an outside, it looks like stocks are resilient. as if the companies are really doing well, well, they are resilient. you probably heard the term resilient 100 times today.
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the term's nonsense. stocks are no more resilient than the shaky companies underneath them. so, what are we really seeing? we're seeing panic. the panic of money managers who can't sell because if they do, they'll seem naked. they can't sell because then they'll fall behind the market. they can't sell because even if they didn't like what they heard from amazon or microsoft and american express, and they shouldn't have, they still need to sit tight because they need every share of stock that they can get their hands on. consider there were a lot of managers who didn't own enough stock going into today, again, as a percentage of assets, they didn't own enough. you may have heard some of them telling you how bad today was or how bad it was going to be. in the morning, woe, they were scared. but here's something another concept i'll introduce you to tonight. these are the people that need the market down. some of the people you see on air need the market down. why? because they have to buy stocks and they want to get better prices. they like to talk the market down.
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almost everyone who told me that today would be a bloodbath was someone who needed a bloodbath. i know it's hard, again, for you to understand because you own stocks. there are people out there who need a bloodbath in order to buy more cheaply. they need weakness. the managers who don't have enough stock exposure are just as biased to the downside as anyone who comes on tv and touts a stock they own is biased to the upside. these managers are bears of necessity, who need to create sellers. they need to panic you! they got to get you to sell because they need you to buy -- they need to buy cheap. they're trying to scare you. they're trying to get you to dump it. but because so few money managers can afford to sell, as they need every share of stock they can get their hands on, because they were even looking to buy more today in order to increase their exposure and avoid falling behind the s&p 500, forget the nasdaq, they'll never catch up to that, we didn't get the bloodbath. even as the companies aren't doing well. here's the question, let me ask it -- do you think it means that the underlying companies are
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healthy? no, i mean, most of them made their money by firing people. isn't that the game? i fire a lot of people. buy my stock. don't confuse the resilience of the market which is being propped up by money managers who are desperate to buy stocks with the resilience of the underlying companies and their earnings. they don't have it. it's not about the fundament ams at all which are in many case are just plain awful, it's about the fundamentals of the money management business, which is where i come in, isn't that what i know? had is only good for the managers that own the most stock. that's what i can teach you, the way the game has played. and i have played it. and i can tell you it's about the money managers and their exposure, not about the companies themselves. here's the bottom line. this market didn't hold up today because of the fundamentals. it didn't hold up because of the fundamentals. it held up because of the way big money management works. the bigtime portfolio managers who have only 80% of their money in stock, they need to get to 100%.
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the poor hedge fund managers who are 50% long and 50% short, meaning they've got bets against themselves, that's called market neutral, they're in even more trouble and will try to talk the market down to create an opportunity to buy stocks and increase their exposure. their job today was to scare you. that's why we couldn't go down today, because most money managers can't afford to sell, or even worse, they're in a position where they can't afford not to buy. i say we start in ohio tonight. i think we go to james in ohio. james? >> caller: hey, jim. >> cheerio, buckeye. >> caller: hey, i want to start by giving you a big bad buckeye, ben bernanke bringing back the economy booyah. >> let me give you a ho ho el presidente lingo, it would be stupid to fire bernanke. booyah. >> caller: i agree. >> stupid to fire bernanke. i like both bernanke and i like you. everybody's a good guy. >> caller: absolutely. i want to thank you very much for all you do with the hamm
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gamers, with your advice, we can make mad money. >> thank you for saying that. i needed to hear that. i've been a little down lately. go ahead. >> caller: my question today with the surge in tech and the semiconductor stock recently and also given the recent earnings reports that have been released within those sectors, i noticed that amd seems to be moving in the wrong direction. in your opinion, could the horrible earnings report yesterday be the nail in the coffin for amd? >> no, amd is doing badly, you're absolutely right. but amd started at $1.60. it went up to $3 -- it went up to $5. let me get that right. it went to $6. i am sticking by amd as a spec name. it's no intel. it's got real execution risk. they did screw up the quarter. but you know what, it's still cheap and i think it's still a good spec. but you know what, like all good specs, when they run, we do some selling. >> sell, sell, sell! >> so we can buy them back -- >> buy, buy, buy! >> -- when they get hammered. let's go to jim in the perfect
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chicago. jim? >> caller: hey, jim, a big white sox booyah from the new perfect game capital in the world. >> you know what, we had to stop doing the show because we knew going into the seventh inning it was a perfect game. can you imagine this, we're watching mlb.com and we actually turned the game on and we saw the catch. everyone else watched the catch on youtube, on yahoo!, i saw it live! >> caller: it was amazing. >> what was the question? >> caller: amazing. jim, with your downgrade on the palm due to the disappointing pre -- >> did i hurt it? did people sell palm? >> caller: i think they did. not in large numbers. >> no, it rallied. another opportunity to sell, my friend. >> sell, sell, sell! >> my friend jim in chicago. i've been interrupting people because i'm all fired up. i better calm down now. >> caller: that's okay. should we buy on the sprint position or double up while it's on sale? >> sprint's a tough call.
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no, i know how to make this call! come on, jim. verizon and att are beginning their move. att, i predicted, monster quarter. we got it. verizon's breaking out here. i want to own verizon. i think fios is turning on the juice. forget sprint. let's focus on the big dogs with the good yield. att, will you please come on the show? i'm not going to hammer you. i like you. i'm the only guy who does. anyway, don't confuse the resilience of the market with the underlying companies. the money managers need to buy. they are making the market look resilient. big money needs a down market to come in. and they need you to come in. "mad money" will be right back.
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that's been slapped around by the slings and arrows, if not howitzers, of the weak economy. no! starbucks, the stock, has been in decline for years. this was the classic example of a growth stock that reached its peak and couldn't expand fast enough to impress the growth-chasing -- scratch that. the growth-addicted money managers in wall street. starbucks had saturated the country. with one or two on every corner seemingly. so, the growth managers kept selling and selling and selling the stock ever since the end of 2006. now, it can take years for a growth stock to finish dying. but eventually if the brand is solid and the company knows how to execute, its stock starts to attract a different kind of buyer. the value investors. that's starbucks. it was a growth caterpillar that couldn't get off the ground. and this week, i think it turned. i think it turned into a beautiful value butterfly.
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a stock that can really get some lift. yes, ladies and gentlemen, the starbucks turnaround is finally here. or at least that was my takeaway from the better-than-expected quarter the company reported on tuesday after the close of the market. okay, starbucks didn't beat the street's expectations thanks to stronger-than-expected business meeting sales. it's a company that's realized the take-no-prisoners nature of this market, amazing this is starbucks. it never used to be like that. the take-no-prisoners market is where the stock gurus remind us only the strong survive with a cramer addendum, only the ruthless thrive. like a good value stock, they cut costs and improved its margins by implementing a series of process improvements at its stores using lean principles. in 2010 management says it expects the cost savings to reach over $700 million. which means three-quarters of
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its earnings-per-share growth next year could come from cost cuts alone. and we know from the action during this reporting period, investors are thrilled with earnings growth, even if its sales aren't so hot. this quarter same-store sales were down 6% in the u.s. down 2% internationally. and while starbucks said that each month of the quarter showed improvement in some same-store sales, they were still negative. you know what, it doesn't matter. the number the per month are going in the right direction and this is a company that's trading in sales for profits. that's what the market wants. howard schultz knows that, it's working. starbucks is turning things around. and a big part of that is because of the return of cramer fave howard schultz, the man who made starbucks to a national brand in january of 2008, after he stepped away from the day-to-day operations in 2000. when he originally ran the company, the stock increased over 1,000% to the ipo in 1992 from when he resigned from the helm.
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it's taken some time as 2008 was really a rough year. the stock fell as low as $7.17 in october 20th, 2008. of course, many other stocks went down at that point, too, but now the stock is back, $17.22. it's up 140% from the '08 low thanks to the effort to rebrand the company and focus on the customer. starbucks has a new approach to store design that's supposed to make customers feel their words more at home. it's testing out the addition of wine and beer to the menu at one of its seattle stores that it's renamed in order to give it a more local feel. in general the company is trying to source materials locally and emphasize the character of the surrounding neighborhood at its new or renovated locations. this is something i might have scoffed at a year or two ago, but it fits in the restauranteur gurus. customers shop where they feel
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more at home. places that fit right into the neighborhood. places, in other words, that is doing exactly what starbucks is trying to do. in the past, danny meyer had objected to starbucks because he was worried about overexpansion. too many stores that lacked the hospitality factor and not enough qualified workers to make it feel good. to make it happen. but now that howard schultz is back behind the wheel, that problem's being addressed. by the end of the year, starbucks will have -- i think this is good news, i know it's going to sound strange, good news -- they'll have closed 800 unprofitable stores in the u.s. they intend to close another 100 stores internationally. they still expect to grow year over year, but most of the growth will be international. starbucks still has less than 1% of the market. they have a host of new products and initiatives that i think will work. on june 30th, it rolled out the new healthy food program. let's try the smoothie. i think we've got one here.
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let me give it a little taste. two thumbs-up. as well as some cheaper coffee options. that's right a grande ice coffee for $2. the triple vente that was botched by the barista hack that i have. that's $4.90. that's too expensive. the via is the approach to instant coffee. this is a $17 billion market ripe for innovation and where starbucks can carry sway. via will launch this fall and it's something i would want to get in the stock ahead of, as the results from the test markets in seattle and london and ohio have been great. if it can reinvent the instant coffee the same way it reinvented the coffee shop, it's gigantic. searching for analogies, the turnaround is similar to mcdonald. in the previous decade. the stores went downhill and so did the stock price. by march 12th of 2003,
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mcdonald's had gone from $12 down from $45 in 1999. then the company did exactly what starbucks is doing now, focusing on improving the brand, the customer experience, no longer on growth, okay? and then its stock finally started booming after the bottom in march of 2003. remember, focus on customer, no more growth, experience of the customer. and you know what, that's about the same amount of time it took schultz to get things back on track at starbucks, which by the way, he told me would happen when we had an offline conversation about how long it would be, because i didn't want starbucks stock to go down anymore. if i were you, i'd be buying some starbucks again. the company has shown it can ruthlessly cut costs with the best of them, something that i didn't think howard could do. i thought he was a bit of a socialist. if it can perform well in this environment, then you know it can do much better when things recover. beyond its focus on boosting profits rather than sales, it has a whole host of new initiatives, any one of which can catapult the stock higher.
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the growth hands have been shan out of the stock. the new base of value investors won't sell at the drop of a hat. stock at 19.5 times 2000 earnings and 18% growth in 2010, i think it beats that given schultz's mastermind in turn around. come on, even with 15% growth, i think it's inexpensive. here's the bottom line. the turn at starbucks is real. the company has gotten with the ruthless cost-cutting program. it's gotten initiatives to improve its stores' new products, including via instant coffee, which i think is sure to be a success. and a strategy to expand without spending much, much money. starbucks, once again, i am proud to say, is a buy, buy, buy! now, you can stay connected to cramer wherever you go. download full episodes on
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i've been a real hater when it comes to chinese solar stocks. in fact, you could say i've been a notoriously b-i-g playa' hater. despite the late lamented stock guru and "word-up" magazine reader. i've consistently told you to stay away from the chinese solar plays. and i don't just hate the playa'. i hate the game. as i'm very skeptical of owning any individual chinese stocks. despite the fact that i acknowledge the supremacy of chinese communism in all things capitalist.
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but no matter how much i tell you to stay away, even though i have been dead right to stay away, you home gamers keep calling about the chinese solar stocks. in response the cramerican party line has been the only stock you want is first solar. the one solar company that doesn't need subsidies because it can make money generating solar power on its own. in fact, we just learned from this morning's "boston globe" that first solar is building a big solar plant in france, yes. i'm not backing away one second from first solar here. but i am making an alteration in my little red book of chinese stocks. not to be confused with jim cramer's "real money, sane investing in an insane world" available at a bookstore near you. and, by the way, this is the chinese version. the chinese ministry of finance in its infinite wisdom announced a plan to dole out huge subsidies for solar projects tuesday. the people's republic will subsidize 50% of the installation of solar
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installations in urban areas, up to 70%, with additional assistance coming in the form of low interest rates loan, something especially important as the chinese solar industry has been hampered by a lack of available financing ever since the credit crunch began. this is the kind of massive subsidy that i can't ignore. especially when it comes from the chinese government which has proven so adept at stimulating various parts of its economy. the government expects to subsidize more than 500 megawatts of solar projects in the next two to three years on top of a host of other solar initiatives. i guess you could say they want to let 100,000 solar panels flown. i'm calling had a maliced act of remonstration on my part. i'm ready to recommend not one, but two of the chinese solar stocks. the ones that should be most affected by this program, but it is purely on a speculative friday basis.
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they are -- and this is tough for me to say, because i have not liked these -- ying green energy, symbol yge, and suntech power holdings, stp, like the car. they have a lot of experience and extensive networks which is why i think they are the most to benefit from the government subsidies and government financing. and even though both stocks were rallying hard in anticipation of a program like this and rallying harder still after it was announced, i believe they have a lot of upside if you're willing to take the risk. we've been on a roll here when it comes to speculative plays. how about like our tech spec stocks that i recommended the week of may 4th, they're up 28.5%. the s&p is only up 8%. the nasdaq, red hot, only up 11.5%, that's why we speculate, even though it can be dangerous. when it comes to the two chinese solar play, let's talk about the
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dangers first. i want to sticker the things. i want to give you the warning on the side of tobacco. when amateurs look at a stock, they think of everything that could go right. professionals, i'm training you to invest like a pro, always focus first on what could go wrong. the subsidy program isn't probably going to mean much for this year, and in the near term chinese solar firms have suffered because of falling solar panel prices which dropped 23% globally between may and mid-july. there's too much inventory. if the oil goes back to the $40s or even the $50s, the stocks will get hammered along with the alternative energy plays. recognize it's a while to play out. if the stock gets extended, it may benefit immediately. you have a chance to buy lower if the earnings disappoint later in the year and they could happen, too. you've got the caveats, let's get to the specifics. suntech power has one of the widest and most mature buildings of integrated photovoltaic. these are solar panels that
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replace traditional building materials which should allow the company to participate in a wider range of highly subsidized projects. it will participate in many of the highest profile products in china, shanghai world expo, great brand recognition. stp has a lot of room for improvement. its market share has gone from 15% in fiscal 2007 to just 9% last year. supply and distribution problems, i think those have been resolved. if stp's market share were to recover to 15% back to where it was over the next three years, then it would blow away the street's estimates. it just reported inline first quarter and presented a weaker outlook for full-year demand. didn't like that. but i don't like it for 2009 anyway, it's the 2010 and 2011 solar subsidies that will kick in that i like. they have more than $700 million of low-yielding assets on its balance sheet representing 35% of its operating assets. if they sell it off, it would be a big positive for the stock. how about ying lee? this is the most popular stock
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ever asked by in the "lightning round." you will get blessed. this is not to be confused with cramer fade beer ying lung, in pennsylvania. i do not want you to consider ying lee the solar play with yung ling beer that i will pound later this evening. it's one of the lower-cost solar players in the country to boot. 80 cents a watt. that's really cheap. you got to take it from me. it's usually between $1 and $1.20 in the competitors. it's the knockoff version of first solar. like the gucci hand bags that you can get on canal street in new york. it's low cost and focused on utility scale customers like slfr. they missed on sales. i've been telling you to avoid the stocks, i've been right. it reported first quarter, and it stunk. but it called a bottom in the solar market calling for much improved revenue growth and margins. just this tuesday it announced
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new factories buildings and 300 megawatts of solar power plants. not bad. i want you to keep them in mind. i'm going to use the term speculative. and it will take a while for the subsidies to chick in. if they miss expectations when they report in august and the stocks sell off, telling you about an opportunity to buy and not sell unless there's something that misses the chinese solar great leap forward thesis. if you want a more serious and nonspeculative play on solar? i will tell you first solar, the uncontested best-of-breed name in the space. here's the line. i'm lifting my ban on chinese solar stocks thanks to the chinese government's huge, newly announced solar subsidy, but only ying lee green energy, yge, and suntech power holdings, stp get the "mad money" semi seal of approval. again, study them this weekend, because this is only -- only -- for speculation. i'd like to start with calls. i'd like to go to paul in delaware.
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paul? >> caller: jim, thanks for taking my call. it's an honor. >> blue hand booyah. >> caller: what i was thinking of would the signs of stability in the credit market and the new subsidies in the united states, do you see a new interest in expanding green energy? and if so, what are your thoughts on ldk solar and their chance to capitalize? >> it's one of my least favorite because i don't like their financials. that's one of the reasons why i cannot recommend that stock even though i'm attracted to solar on a chinese subsidy basis. solar is entirely a play on subsidies or higher oil prices. without one or the other, these are all bowwows, okay? now we go to eric in florida. eric? >> caller: hey, jim, a big hot and heat south booyah! >> i'll give you a sunshine booyah right back at you, frankly. >> caller: okay, listen, i want to say thank you very much for the paperback edition of "real money." it's the bible of everybody's bible.
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>> you are too kind. i got the hardback here. here's the paperback. 582 sold last week, but do i bother to count? go ahead. >> caller: got a two-part question for you. the play in china, would it be better to take a u.s. company that has big earth moving equipment like caterpillar, that's going to be part of their infrastructure for industrialwise, or is it better to go to npd with a consumer base and look for places in china that have companies in china? >> i am very -- always reluctant to -- tell me, something, eric, are you from philadelphia originally? >> caller: south jersey. >> i had the accent pegged. >> caller: what were you going to say? >> i was going to say cherry hill. here's the way i want you to play it. actually, there's a lot of controversy this week about -- about -- about china and cat. a lot of people felt that cat wasn't significant in cat -- in
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china and that's why cat didn't do the numbers. cat's business is growing in china rather aggressively. rather than the china chain store that you mentioned, i really want you to own cat. cat just went up 11 points this week. we got to have that one come back. but cat's a good china play. it's a derivative china play. all right, tonight, i'm lifting my ban on chinese stocks. i'm taking a page from quotations of "chairman mao" and i am telling you i now bless ying lee green energy, suntech power, and yung ling, the pennsylvania beer company. next, try to keep up with cramer as he takes your questions rapid fire in an all-new "lightning round." plus, e-mail us at cnbc.com, and jim could answer you on the air on an all-new "mad mail." all coming up on "mad money."
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it is time, it is time for the "lightning round" on cramer's "mad money." what is that all about? you say the name of the stock and i tell you whether to buy, buy, buy, or, sell, sell, sell. and then the "lightning round" is over. are you ready, skee-daddy? it is time for the "lightning round" on cramer's "mad money." i'm starting with doug in new york. doug? >> caller: hey, jim, the big bronze bull is back on the bowling green booyah. >> booyah here. take a gold one. kind of like what edward g. robinson brings down in "the ten commandments." what's going? >> caller: bulls make money, bears make money, but cramerica makes "mad money." i am a resident card-carrying member. when i'm taking pictures of my daughter, sofia, on my camera, i don't use a digital camera. i use one in my smartphone made
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by omnivision. is omti a buy, buy, buy? >> you know what, i'm going to say both pre and omnivision are in the sweet spot essential after what samsung said last night. both the stocks are up a lot. so, we've got to be a little conservative. these are the kind of stocks if you take a quick air pocket down 10%. but the fundamentals are strong. why? why, you ask? mobile internet. the cramer faved theme for the next three years of "mad money." yes. that far out. i -- wow. i'm not going to play cards with this man, but i want to speak to him. doc in michigan. >> caller: hey, jimmie, hope you and your family are well. >> not bad. >> caller: hey, listen, one of us has been following the other over the past 60 years. i also have lived in and graduated from schools in pennsylvania and jersey and mass. >> i feel like i'm talking to a colleague. >> caller: anyway, i've read all
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your books. >> thank you. >> caller: and articles. and i'm extremely grateful and thankful for what you've done for me and my family. >> thank you. thank you. >> caller: since you've been on air. i'd appreciate your input on intuitive surgical, both short and long. i was fortunate enough to add to my position on tuesday. >> no! >> caller: a big bump. where do i go from here? >> all right, first of all, doc, i'd bow down to you. it was an unbelievable buy. you picked up about 80 points. i have to fall back on karen cramer's wisdom and say on intuitive surgical, too late. done. should have had it. doc had it. i didn't. i'd rather take profits in isrg than buy it up here and just admit i missed. bulls make money, bears make money. hogs get thwarted. let's do some surgery. ted in connecticut. ted? >> caller: greetings and booyahs from rockville. >> yeah.
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>> caller: hey, jim, my question is on valmont industries. >> we're talking about valmont, we're talking about paint. i got to be sure i got the right one. not valspar! other people get tired on friday. i bear down. valmont is towers and utility markets. that's the good one, if it was valspar, i would say we can't even buy paint companies. i like quanta, too. i am warming up to sna which is another really good one. is ma is another good one -- not sm -- man, i'm losing it. that's snap-on tools. i'm warming up to tower companies, because of, why? mobile internet. ah, come on. we need one more question. no? they're giving me the hook.
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i hate -- i hate fridays. do you know why? because the "lightning round" is over! >> the lightning round is sponsored by td ameritrade. it seems like the market is forecasting a boom. look at the market is, yes, getting ahead of itself. are we jumping the gun with all the bullishness? you have to ask yourself, do we have blinders on? no. this was not some sort of weird -- well, never mind. oh, oh! of course, we're jumping the gun! ♪ you have to jump the gun with blinders on.
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♪ because if you don't, you'll miss the moves, since everybody else is jumping the gun. pow! ever since i started beating the smartphone drum, i've mentioned the iphone, the blackberry and the palm pre practically in one breath. obviously apple is the better company with the better product. comparing the two smartphones is like comparing apples, like this one, to those fake apples. phony one. oh! i have to go to a dentist and we're not even covered. the new i -- i'm not even covered. what a day. unbelievable. just keeps getting better and better for the bulls. now, i have to tell you, i would make bear stew again. frankly, i'm worried that the department of fish and wildlife might lock me up for eating an
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endangered species. settle for knocking the stuffings out of them. what we learned about the operations. nasty. ♪ stay with cramer! bull market or bear, traders are always hungry for ideas. they find them at td ameritrade. trading's all about strategy. and strategy's... all about information. so: i start my trading day... with td ameritrade's morning perspective. that's interesting... or, look at this... i can mine their weekly webcast for ideas. this is what i need. of course, ideas are just the start. so now i can drill down. heat mapping... heat mapping shows me where the money's moving. 2,500 stocks... one quick glance. cold... cold. hot! right there. look at this: pattern matcher... pattern matcher spots technical patterns, automatically. wow, look at that. look at that head and shoulders right there. it's like pattern radar. pattern x-ray vision.
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plus: this amazing gadget... called the telephone. i can call td ameritrade anytime and talk trades, strategies. anything. that's where the action is. td ameritrade. built by traders for traders. announcer: trade commission free for 30 days plus get $100 cash, when you open an account. come on in. you're invited to the chevy open house. where getting a new vehicle is easy. because the price on the tag is the price you pay on remaining '08 and '09 models. you'll find low, straightforward pricing. it's simple. now get an '09 malibu 1lt with an epa estimated 33 mpg highway. get it now for around 21 thousand after all offers. go to chevy.com/openhouse for more details.
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before we get to mad mail, i have some homework to take care of. yesterday ryan in kansas asked about rhino international. r-i-n-o. i didn't have an answer. i punted. i've done my homework since then. rino is a company that helps clean the country's iron and steel industry, make waste water treatment and desulfurization and anti-oxidation systems. it's play on china to become greener and continue growth in the steel industry. the stock is up like 500% since the beginning of march. it's still a $320 million stock. i would wait for the stock to cool down before getting positive on it. this is from jonathan.
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jim, i have a question regarding skywork solutions, swks. i purchased when it was a tech-spec on the show for a little less than $9:50 a share. jonathan, you're up 30%. we always like to take something off the table. i was on the conference call with david alters in complete compliance with my mobile bernt thesis and my friend brian who writes the newsletter for thestreet.com where i am chairman and a true stock analysis, the things for real. i'd hold on after i rang the register to take a little money off because of the spec. hi cramer. big boo-yah from taxachusetts. what impact would a merger have
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on the stock price of google? dave, absolutely not. carol just came in. she will make something big out of yahoo! steve ballmer has moved on. there could be some sort of collaboration. here is one from ryan. hi, cramer. what do you think about american electric power? are they a viable play in the green movement? absolutely not, ryan. dominion, letter d, is your green power. it is nuclear power. that's it for cramer. be right back. >> don't miss a second of cramer. you can find "mad money" on itunes and download it for free. take all of cramer's picks, pans and "the lightning round" with you on the go. get "mad money" on itunes today.
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tonight, nike, a brand so powerful, so dominant, it's known around the world. >> just do it. >> 13,000 products, 16 billion in sales. and some of the most famous faces on the planet. >> it's something that represented my name and what i did to the game of basketball. that has continually transcended over time. >> a company with critics. >> a transnational corporation that exploits people. >> and connoisseurs. >> my favorite pair. >> he's got to have the shoes. 350 pairs. >> what percentage of your disposable income were you spending on shoes? >> all of it. except for my mortgage. >> it all started with a waffle iron and a college jock with an idea. >> and did you really think you
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could implement this? >> yeah. i was too dumb to know better. >> now in the design studio, on the factory floor, and behind the latest blockbuster, cnbc presents "swoosh: inside nike." from the nike town store in new york city, here's correspondent darren rovell. >> good evening. this is one of nike's showcase stores, where the world's most powerful athletic shoe and apparel company displays its wares. it looks a little like a museum, which is fitting for a company that's turned its brand into a cultural icon. it all started with a few guys selling track shoes out of their cars. over the years nike has pioneered the use of cheap foreign labor and provoked attacks from critics. it's produced groundbreaking advertising and spent a fortune paying celebrity athletes to
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