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tv   Mad Money  CNBC  July 28, 2009 11:00pm-12:00am EDT

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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 no nothing! i always like to say there's a bull market somewhere. "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, uh-uh, trying to make you money. my job is not just to entertain you but to educate you, so call me at 1-800-743-cnbc. some incredibly rare days everything actually goes according to plan. yesterday i said the market was going to take a little breather and due for a slow gentle decline. today the transports went down, oil got hammered as predicted and the dow dropped 12 points, i
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also said the nasdaq should be bought on any weakness because we're in for a multi-year run in tech and what do you know? after getting absolutely clobbered, i mean, pummelled at the opening it rallied to close up eight points. a remarkable recovery. >> that was easy. >> and best of all, we got still more evidence that my housing bottom call the rough kind for which i was endlessly derided and laughed at, somewhat similar to steven king's carrie the prom scene not the closet. and at the home place call turned out to be a total ryan howard home run. all right pujols. we learned today that may, the case-shiller home price index showed the first monthly increase in home values in almost three years, i say hallelujah so does the board.
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a.5% gain, and i think june will be even better given we saw an 11% increase in new home purchases last month, which, by the way, is the biggest in eight years. the good news on the housing front just keeps on coming. the second biggest gainer in the s&p 500 today, none other than masco, giant maker of cabinets and faucets for homes. this one was up a stunning 14%. >> all aboard. >> it ain't done, after reporting a knockout quarter yesterday after the close, at this point the very real turn in housing seems impossible to deny. although i still people denying it. last week stanley works from black and decker reported strong earnings, i think sears will report strong earnings, black and decker raised guidance for the rest of 2009. i am thrilled by the strength in housing. i love that the stocks of the home builders which, of course, unfortunately i told you to stay away from, but ron and sana who
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stood right here told you to buy it, both in this market moves e-news letter and live on cnbc. and those keep marching higher and higher proving me wrong, but that's okay. i can handle that. i am, however, concerned about something different tonight. i'm concerned you might miss out on all of this positive home build, home action. particularly what's in a home. because this is a market that's filled with misdirection. misdirection, case in point. yesterday, goldman sachs, my alma mater and viewed as some wall street gangsters paradise where they play coolio before the opening bell, downgraded low the home improvement chain. that's right, they had the audacity to pull it from their conviction buy list. as opposed no doubt to their lack of conviction buy list? lowe's like its bigger better
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rival, home depot, also known as hot dog should be a fantastic play on the turn in housing. since it's levered to people improving their homes either trying to buy, buy, buy or fix them up after they've been -- >> sell, sell, sell -- >> yeah, when you buy your home, you go to lowe's, you sell your home, you go to lowe's, lowe's just needs the number of transactions, the numbers of homes sold to rise. and that's what we're seeing an explosion in home sales. and yet goldman took the stock right off its hallowed supreme mcfatty recommend-o list. that's the kind of things that generates headlines since the press loves the negative story and you read about it all day, downgrade lowe's and most people don't read past the headline let alone read the downgrade a sort of move that might have cost you yes, indeed, misdirection to
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sell lowe's it was like a play action fake that would've fooled michael vick. anyway, just when you should've been buying it -- well, you should have been buying it instead of selling it. now, i'm not here to chastise the analysts for getting lowe's wrong because in part because he really wasn't wrong. i'm trying the remind you're not playing the same game as the wall street analyst. don't kid yourself. you're a home gamer and that's even better. the lowe's downgrade wasn't about a more negative thesis on housing, although it did sound like it and people ran with that. in fact, in the report they mentioned they remain constructive on the home improvement industry and see long run cyclical drivers, meaning the housing market's bottoming. the report talked about the stabilization in housing, even said they see up side. so if goldman believes in the housing bottom, why on earth would it downgrade lowe's? taking off that super duper conviction buy list? it turns out goldman was downgrading lowe's based on something known only to wall street insiders.
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relative valuation. that's right the relative valuation to another stock. when they added it to the conviction buy list, it was trading at a price to earnings multiple discount, the home depot, that's right a lower price to earnings multiple, and now it trades at a premium price to earnings multiple. that's what these guys care about. you don't need to. home depot's a better play. something i agree with, i open it for my charitable trust. but because of a a premium multiple situation, lowe's get the goldman jack boot. that was the substance of the downgrade. nothing to do with the fundamentals of the housing. this was simply goldman managing the players on its conviction list based on where they came in, not on changed fundamentals and it's fooled so many people. so if you sold on the downgrade, you sold for no good reason. you got sucked in by genuine wall street gibberish. both stocks are good enough to do the job, this is why you can't take your cue from the big-time analysts. not because they're wrong, but
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more importantly because they don't work for you at home. they have a different set of priorities. i'm not saying the brokerage firms are playing for the -- the trilateral commission, or that they're the capitalists that are infiltrating pelosi's dictatorship the ppd, so to speak. it's nothing that sinister, they're just serving their clients, the big institutional money managers, not fellow wall street gangsters. and you often times can't make money following them. it just won't work unless your giant portfolio manager trying to figure out the half of priced earnings they're worried about. analysts are always too bullish or too bearish about a sector because they're trying to identify the weaker and stronger players for their institutional clients. they are splitting hairs, they're not playing absolute game like you are, they're playing what's known as a relative game. trying to figure out which stocks in the sector will make more money quicker than others.
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that means they often miss the big picture. and you will too if you play by the headlines that you hear about downgrades. home improvement is a good neighborhood. and even the worst house in a good neighborhood -- >> house of pleasure. >> is worth owning. and lowe's is far from -- >> the house of pain. >> if you want to be a good investor, you have to recognize that you're not playing the same game as the analysts, so you can't make your decisions based on their institutional upgrades or downgrades. the bottom line, in reality, goldman wasn't -- was not attacking housing at all. you know what it was doing? i'll give you an analog, particularly for you racing fans out there owned by nbc, not that i'm a team player. they're simply saying it's time to switch from secretariat to man of war, trading one horse for another. my advice, just try not to fall off the horse because it's all inside baseball.
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did you think housing was coming back as i do, then i have to stay in the race. in the words of cramer favorite president lincoln, don't change horses in midstream. by the way the horse can be traveler for all i care or mr. ed or national velvet for all of that matter as long as it's a horse, of course. home depot may be better than lowe's, but selling lowe's because goldman takes it off the conviction list, give me a break! that's a list meant for big-time money managers, not the home gamers like you. the kind of move that blows people out and makes them hate the stock market. here's the moral. get on a housing horse and stay on it. and i'll see you at the track window. the one where they pay. not the one where you give them the money. jeannie in missouri, jeannie? >> caller: boo-yah, jim cramer. >> big 12 boo-yah. >> caller: listen, i bought kb homes and i sold it today. and what do you think? >> you heard what the crowd said. and i join the crowd. i think you did a remarkable
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thing. you went right into the lion's den. you bought the california housing play when everyone was doing all of that -- and you went against the grain and that's how big money is made, i salute jeannie in missouri. we need more people willing to go against the grain. congratulations on a terrific, terrific pick. let's go to dick in ohio. dick? dick? >> caller: yes. >> you up. >> caller: boo-yah, jim from xenia, ohio. >> nice to have you. where? >> caller: xenia. >> wow, i love that tv show, it must be named after her, i mean show. go ahead. >> caller: listen, jim, i was just reading today a report on the citigroup exec who may receive a $1 million payday, the gist of the article was how the pay czar will handle this profit-sharing contract. my question then, jim, is how is
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a company like citi allowed to create a compensation plan based on profit sharing which would seem to bypass the investor and redirect profits to employees. >> well, you know, these are tough issues. and i don't make -- you know i'm not going to make any excuses for whatever anybody's saying. citigroup is a challenged firm because we own a lot of citigroup, we own more than 30% of citi, which seems to be breaking out here. i think you're right to challenge everything. i thought that erin burnett was right to challenge barney frank. about the $100 million. citigroup, too hot for this guy to handle. all right, get on a horse and stay on it. remember, you're not playing the same game as the wall street analysts, sure home depot's better than lowe's, but the most important thing is to get on a housing horse and don't get thrown off it. "mad money" will be back right after the break. coming up, is this bull market for real? or have you already missed the
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move? cramer analyzes the technicals. to find out if now could be the golden opportunity to buy on "off the charts." plus smart phones are red hot. but can the guts of these gadgets make you some green? cramer goes head to head with t.j. rogers to find out if his stock can have you reaching out to touch some "mad money." and later, jim goes fast and furious as he faces a non-stop barrage of calls giving stock after stock their final verdict on "the lightning round." all coming up on "mad money." having the right tools is crucial
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i keep hearing this is the beginning of a new bull market
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right here right now. that's right. swarms of technicians, the people who rely on the charts of past action to predict where stocks will go in the future have been exuberantly claiming the beginning of a bull market. since when? friday. was friday the beginning, huh? we've gone from dow 6,500 to dow 9,000. s&p 500 to 978. and now the chart is telling us, buy, buy, buy. this is when they decide to invoke noted allbeit noted stock guru karen carpenter. and say -- ♪ we've only just begun i throw my hands up. yep, there's a new formation that all of the technicians are talking about. it's got the whole chart world atwitter and twittering. because they think that they've found the holy grail of investing, or to be more
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specific, the golden cross. not to be confused with the silver chalice. what's the golden cross? to chart watchers -- it's a sign that confirms the bull thesis, as if we needed anymore confirmation than the 2,500 point run in the dow. when all of the charters get together at their woodstock or their bamboozle or even their oz fest for the black sabbath fans out there, the golden cross is practically all that they're chattering about. it's a technician's dream come true. so tonight, i'm going off the charts to challenge the golden cross fallacy because this is the kind of technical analysis and the kind of thinking that can only hurt you and make you, yes, indeed a worse investor. i am telling you that the golden cross is about as valueless as
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the musical stylings of christopher cross. ♪ take me away >> but not quite as soothing like yani or kenny g. ♪ >> too many people want to wait for an all clear signal before they buy. that's what this golden cross is to technicians. but as i'm about to demonstrate, if you wait for the all clear signal, if you wait for confirmation that the move is real, you're going to end up missing all of the big dollars and that's what we're all about. what exactly is this technical list i'm so intent on smashing? and why do chartists like it so much? what is this golden calf worshipped by technicians akin to edgar g. robinson minnon in the ten commandments, to that, we go to the charts. he was a great art collector too, by the way. let's take a look at the chart
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of the s&p 500, this is a good standing for the market. this is what excited so many technicians. on friday, that's the 24th. the s&p's 100-day moving average, the 100-day, that's this one. it's a medium term measure of the trajectory of the index crossed its 200-day moving average, a longer term measure of the trajectory from below to above. hey, how about a close-up of what happened there? okay. see, that's the cross right there. that's the so-called golden cross. the golden calf, golden cross. now, according to dan fitzpatrick as you know is our go to chartist. in addition to being my colleague at realmoney.com, where i'm chairman and also a frequent guest on "fast money," technicians love to see this pattern, because this confirms a
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bullish trend. now let's back out to the longer view. technically a golden cross happens whenever a shorter term moving average crosses a longer term, one from below to above, i know, i know, i know it's like get out the golden trail, this could be a 10-day moving average crossing a 20-day moving average. there's no magic to the numbers, there's just the cross. the point for technicians is it shows the shorter term trajectory is aligned with the longer term and then voila what you should have been doing three months ago you're doing now. here's the problem. and you can see right on the chart. if you waited for the golden cross before you decided to trust the rally, well, you'd be four months late and a fist full of dollars short if not, indeed, a few dollars more. that's why fitzpatrick himself doesn't think much of golden crosses as predictors because they happen after the great moves have already occurred despite all of this buzzing. fitzpatrick says he's never found a way to make money off of
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golden crosses, golden arches, yeah. pay you this much for a hamburger today. this is literally the technical equivalent of saying now right here, we are in a bull market. now. totally unhelpful. everybody's going lady gaga about the golden cross losing their poker faces in the process. i say it's useless because it's a rearview mirror picture. we don't need to be told what's happened, we need to know what's going to happen. you've heard of don't shoot until you see the whites of their eyes, well, waiting for the golden cross before buying is more like don't shoot until you see -- don't shoot until, well, you're shot between your eyes. and also your lungs are gouged out with bayonets. my point isn't to disparage the technicals, because they can be helpful. now i look more gentlemanly. it's just that i think the golden cross isn't valuable.
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waiting for one of these is a symptom of a broader mistake made by technicians and fundamentals alike. there's a temptation to wait for an all clear signal like a golden cross, but if you wait until that confirmation that things are better, you're going to miss the move. if you waited for housing to bottom, you missed a huge move, some people are still missing it. if you got in before the bottom, that's when you made the money. if you waited for someone to say the banks will make it, you missed a once in a lifetime move, if you wait for unemployment to bottom before betting the market will recover, you missed 2,500 and probably the next 500. here's the bottom line. winning in the stock market isn't about waiting for the golden cross. or any other kind of confirmation that we're in the land of 1,000 bull dances, it's about anticipating them because that's the only way you can ever hope to make big money in this game. i am taking calls right now. i am going to the volunteer
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state, i am speaking to c. in tennessee. c.? >> caller: hi, jim, sending a bright orange boo-yah from the land of the tennessee vols. >> is that short for cecilia? any of those various attributions? >> caller: cecilia, sure am. >> what's up? >> caller: okay, i have a stock portfolio but i also like to do trading during a rally. i keep getting stuck with stocks at the end of the rally, which isn't really bad because i do make good money on them, but i'd rather be out of them in cash and ready for the next rally. like last month i was stuck holding visa at $66 and it dropped to $59. can you give me some pointers or indicators on what to look for? >> cee, i'm going to cut right to the chase. discipline is something that everybody has a problem with, not just you. discipline. so here's what you have to do. if you're going to do that kind of trading, you have to be what's known as flat at the end of the day unless you have a
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catalyst coming on. what does flat mean? it means that -- >> sell, sell, sell -- >> you've got to sell, and you go home with no positions, that's what the real guys do. i am telling you, if you're going to play with the big boys, cee, you got to cut it at the end of the day and go right back in unless you have a catalyst several days hence, and in that case, you've got to stay the course until the catalyst and then sell either way. i like your spirit, i like your gumption, you've got horse sense. frank in illinois. frank? >> caller: hey, jim. >> frank? >> caller: boo-yah from illinois, the land of honest politicians. ha-ha. >> well, maybe. yeah, okay. a zambrano boo-yah? >> caller: there's been a few here. my question, oracle, orcl. >> oh, man, what a monster good stock. i'm glad you brought it up. what do we need to know? >> caller: well, tech's made a great run lately, but oracle has made a lot of acquisitions in the last few years, including sun microsystems, and that puts
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on almost every computer in every home in the united states maybe in the world. so what bothers me is, you know, i've reread your chapter in "real money," i'm on spotting tops, and where you say in your part iii that overexpansion is one of the signs. >> yeah, but you know what? i'm going to have to tell you that i don't think ellison who is always welcome on the show is really overexpanding. what he's doing is filling in product lines and decimating the competition. let's talk about the sun micro, what is that? we had bob boweman. he's the ceo of mlb.com. at the heart of the internet tsunami. and who powers it? sun micro. and who owns it? larry ellison and oracle and you and that's a good bet. winning in the stock market is not waiting for the golden cross. or knowing how to do the pony. like pony maroney. it's about anticipation.
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it's about staying in the game. after the break i'll try to make you more money. coming up, smart phones are red hot. but can the guts of these gadgets make you some green? cramer goes head-to-head with cypress semi ceo to find out if his stock can have you reaching out to touch some "mad money." plus -- lightning strikes. cramer goes electric taking all of your calls in a spine-chilling overcharged "lightning round." and later, e-mail us at madmoney@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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i'm liking this segment. listen up, listen up. last week, nasdaq, phenomenal 12-day winning streak, hadn't seen that since the 13-day streak in '92.
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this run was even better than the '96 11-day straight up. yesterday i explained the streaks. beginning of multi-year tech moves. based on transformational product cycles. wide adoption of pc, '92, internet '96. this time the game-changing new technology is something you've heard about from me endlessly, mobile internet, from a luxury good into a necessity. now while tech is the group outperforming the market as a whole for years after the streaks in '92 and '96, we had individual stocks on fire. the ones that most embodied the new products that broke away from the pack, let they are peers in the dust, spectacular gains, intel, microsoft, '92. we want to replicate those gains right here on "mad money." we need to find the stocks at the center of the mobile internet, products even in this environment, the horrible environment, sales are blowing out the door. and the one that i am telling you has been one of the
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favorites in the beginning of cypress semi, cy to gamers. last time i talked to the company's ceo, september 26th of 2008, the stock was at four smackers. now, it is above its 52-week high, $10.76. up 165%. and we love the stock and love the ceo, we said it would go higher. last time i highlighted cypress was before it completed the spinoff of sun power, the solar business, making it a pure play on semiconductors, an industry that we know has bottomed based on the testimony of numerous semiconductor companies, not the least being cypress itself which delivered a monster 51% increase in order backlog when it reported earnings recently. the company's got three divisions. let's go over it, mobile internet, mobile internet tsunami. 41% of sales from consumer and computation division, various chips in hand held devices, digital cameras, notebook computers, got it? fastest growing product, most exciting product maybe in technology. true touch. a controller that's used for touch screens in cell phones.
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you've seen it in the palm pree, samsung, lg, sharp, all the heavy hitters. company's next segment, memory and imaging, 41% of sales, makes a kind of static semiconductor based memory that's faster and more expensive than the standard dram, and it's also got image sensors for consumer electronics again, wireless devices. third piece, data communications. 17% of cypress' business, controllers from mobile phones pdas, and cameras. these guys are at the heart of what we've been talking about. cypress semi reported a great quarter two weeks ago, 6 on the 16th. earnings delivered a terrific number, much better than the street's consen sup, factory utilization up 34% to 59% in june, blow out guidance. 52-week high today. you got any stocks at 52-week high today? and it did it not just investing the bottom line like so many companies i'm not crazy about, but the top line too. you got any of those? cypress semi may be up big, but
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it could be looking at a multi-year move. thanks to the mobile internet and to the great products it has. don't take my word for it, when a stock had this kind of run, i want to make sure everybody's in it, i want to make sure it hasn't run out of momentum, which is why i want to hear from t.j. rogers. the great ceo of cypress semi. dr. rogers is a hero of mine both politically. i hope we can get into that and financially. dr. rogers, welcome back to "mad money." >> thank you very much. >> everybody's been making their earnings by firing people, bottom line stuff, top line bad, how could your top line be the best i've ever seen your company have? >> the underlying technology under all those different products you mentioned is actually one technology which is only got about ten chips and it's called pesok, programmable system on chips, you'll never hear of it in the outside world. but what happens is when you have a programmable platform like that, you can map it onto, for example, you can make the
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interface for an iphone like cell phone interface, you can put in a baby monitoring device, it's in literally italian coffee machines and automated baby strollers, powered electric-powered baby strollers. the secret is to be able to in one software program a chip you made years ago and be in a market as opposed to going through a one-year design cycle. >> is this something. one of the things i love about your company, you have a new one going, you have a lot of separate smart guys in different rooms doing smart things. is that what happened here? a guy comes in with the touch and says, listen, i've been working with other guys, give me some money this one can really work? >> it's a little bit better than that, but very close. i had a bunch of guys, smart guys from seattle, and they came to me and said we're working on cool stuff and we're having fun, but we have this great idea and we want you to fund a company and we'll start it and we'll make the product and then you can buy us out and own the whole company after we succeed. and if we don't succeed, we
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won't make anything, but if we succeed, we all want to make $1 million, what do you think? and i said go for it. >> why doesn't anyone else do that? why is that so unconventional? when i think about the greatness of america, it's about guys with great ideas and garages looking for a little bit of money and making it for their investors. >> well, in silicon valley, our competitors, the venture capitalists do it all the time. that's why a bigger company, if you get hardening of the arteries and stop giving the young entrepreneurs a chance to make money, they'll eat you alive. i'm not worried about the giant slow companies as i am about the little paranas behind me. and i got to have a few of my own going. >> you've got generally not stimulated by government demand for your products? >> that's absolutely true. one of the good things i like about consumer, consumer, of course is a volatile market and man you can take a roller coaster ride, but one of the things i like about it is an american buys something you make
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because they want it and they're willing to pay your price. and we don't need any shovel-ready products. >> let's talk about that. i'm a big believer in your political vision. why are we not creating jobs in this country? >> well, it's real simple. let's divide the economy in two parts. this is a rough cut. there's the private sector and the public sector. from the inception of the company that the country in 1910, the public sector government burned about 10% of gross domestic product, gdp, the sum of all of our wages in effect, the wealth of the united states -- the early yearly earnings. and during world war i, it jumped up to 29% and came back down to 25, during world war ii, went to 49%, half of everything we made went to winning world war ii. then it dropped back down to 30% where it has been growing slowly. obama has managed to get the government sector to be more than half the economy. and it's very simple, when the government slow-moving doesn't
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produce things that make money for people, consumes half the wages in the united states, then the economy's going to slow down and that will mean no jobs. very simple. >> so how can we change things? >> you've got to vote. and, you know, i -- i'm not trying to criticize people who voted for obama, george w. bush had an awful economic record, he built the government very big, as well. so it's not a democrat versus republican thing. i'm looking for another ronald reagan to come along. >> well, can you give me -- if you had one of the things i'm trying to understand is that if you gave money to or created incentives to be able to hire, created incentives for the private sector, wouldn't that be a better way to go about things? >> oh, not only would incentives cause hiring, let me tell you a quick story about california. here we are in silicon valley, and you would think that we'd be the center of hiring and the center of growth.
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the fact is when cypress was started, i incorporated cypress in december 1st, 1982. we did everything in silicon valley, made our wafers, we did assembly and tests here, we prided ourselves in silicon valley. i was on the cover of "e.e. times" in 1984 running around the palace in tokyo. and how could you get a guy like me to go away? the answer is you complain about him, tax him, you tell him he's not welcome and he goes away. so our fab in silicon valley is gone, our testing in silicon valley is gone. at least we still make wafers in minnesota, which is a better place to make wafers than california. and now california's got a 9.75% sales tax which they charge you for the privilege of building a factory. get that. somebody comes to california says they've got $1 billion to build a factory that will create a bunch of jobs, they say congratulations, give me a check for $92,750,000 and you have the
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right to build a factory here. but our environmental people have to talk to you first for a few years. >> outrageous. because you have made so much money for us, i think you have every right to speak your mind on your show. i know you're not a political guy, you're a guy about getting the pie bigger and thank you for all of the money you've made for all of the people who watch "mad money," you're a good man. thank you. >> thank you. all right, dr. t.j. rogers, i've known him for 20 years as a money-maker. it's going to be another 20. cypress semi did not hit a new high for idle reasons, it hit it because it's got great growth, great products. what you want, and it's a heart of the mobile internet. stay with cypress, stay with rogers, stay with cramer. next, try to keep up with cramer as he takes your calls rapid fire in an all new "lightning round." plus, e-mail us at madmoney@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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call or click today. it's that time. it's time for the "lightning round." cramer's "mad money" rapid fire calls. you say the name of the stock and i tell you whether to buy, buy, buy or sell, sell, sell. to be clear, i do not know the callers or their stock questions ahead of time. staff prepares the graphics on the fly. we play until you hear this sound. [ buzzer ] and then the lightning round is over. are you ready skee-daddy? it is time for the lightning round on cramer's "mad money." nick in new jersey, nick? >> caller: boo-yah from down the shore, jim, middletown, new jersey. >> not bad my friend. i'll join you at ocean grove this weekend. i got a chance. what's up? >> caller: that the a boy, mos, the mosaic, i think it's still going to rock you. what do you think?
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>> i'm going to rock your world right back at you with a fertilizer cheaper and better. p.o.t. go with the pulp machine not with the mosaic which happens to be mel gibson's favorite fertilizer player. scott in idaho, scott? >> caller: boo-yah, jim cramer. >> we're liking idaho. we've got to do the show from idaho, it's the prettiest state i've ever been in. what's up? >> caller: i want to know what your thoughts are on ticker tdy. >> all right, i have always been a believer, and it's been off -- i think the technologies is one that we should do, we should do a whole segment on, that stock is right to buy. buy, buy, buy. aimtech might be right to buy. it was too savaged by the negatarans. let's go to joe in pennsylvania. joey. joe, speak to me.
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joe's giving me the old heave-ho, making me look bad. how about we go to edwin in tennessee. edwin? >> caller: jim. >> edwin. >> caller: yes, jim. if you have room for it i will send you a huge tennessee hillbilly boo-yah. >> man, i was mentioning in the tennessee papers, boo-yah, overnight, saying there's some football player that was wearing an outfit louder than cramer talks. i like that, that means i've been heard in tennessee. let me help. let me help. >> caller: okay, microdevices. >> you are in the absolute megaheart of the internet mobile tsunami with rfmd, let me throw in cypress, i'm giving you a threesome. you are in spot-on territory. they are going much higher. it's like the old days. how about, let's go to demitri
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in washington. >> caller: a big university of washington boo-yah to you, jim. >> invite me and i'm there in a heart beat boo-yah. >> caller: well, i've got for you gemz. >> the least favorite of the biotechs, but the biotechs are ramping. i would rather buy some gill yad. the stock has had a nice boost. sell when the pullback's good. we like health care because, yes, indeed, health care reform is doa. first thing acknowledged here on the show when i saw united health running. by the way, i like those stocks still, unh being among the best. dare step to the higher ground for health care. we're taking another, going to my home state of pennsylvania. kay in pennsylvania. kay? >> caller: how are you doing? >> thank you for asking. what part of p.a.? where are you from in p.a.? >> caller: redding. redding the capital of the united states. >> holy cow, man.
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i remember when vf corp. -- that's how old i am, i used to pick among the gs -- that was all i could afford. >> caller: we're still selling them. >> it wasn't all done in fair weather. >> caller: i'm diversifying and i want to know what you think about cni, canadian national. >> i like the rails. i like cni and csx. part of the breakout stocks news letter, my friend brian is recommending ksu, that's been on a tear. i like the rails, let's be careful of that general the justice department woman barney, she seems to be able to want to -- really take some of the deals apart. let's go to abe in arizona. abe? >> caller: hey, jimbo, sunny and hot boo-yah to you from arizona. >> how could you only have 20,000 people to see the red hot phillies? what kind of baseball town is that? you got the world champions and you can't sell out and you guys gave up in the second inning
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when you had three guys on -- what was the stock? >> caller: we could only get 40,000 people into the airport yesterday. >> well, all i can tell you is that town deserves cheaper tickets. i think that's the secret. go ahead, what's the stock. >> caller: hey, jim, in line with your mobile internet thesis, i've been buying a company called smith micro, you recommended it about a year and a half ago, but i think their time is here. >> abe, you are so right, you may not have a great baseball team, but you've got good stock picker sense. smith micro is also in the aorta of the mobile internet family. you've got to go one -- i would keep buying it. really, it's over. i'm too fired up. no more calls? the lightning round is over! >> the lightning round is sponsored by td ameritrade. [bell ringing] the way the stock market's been acting lately you may wonder if you've been doing the right thing. is the advice you've been getting helping or hurting?
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are the fees you're paying really worth it? td ameritrade's fees are fair and straight-forward. their research is independent and unbiased. their investment consultants are knowledgeable and there when you need them. so why not talk to one? announcer: call today to schedule a free investment check-up, or visit a td ameritrade branch. we decide to turn in early. we just know. announcer: finding the moment that's right for you both can take some time. that's why cialis gives men with erectile
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aflac!... ...forbusiness.com (laughter) ♪ ♪ to my family [ female announcer ] clean you can see. softness you can feel. tide with a touch of downy. before we get to "mad mail" awant to address a question i got yesterday from steve in michigan. he asked me about the indian fund. while i'm pro india, i'm not
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going to recommend the ifn right now. it's trading at a premium of 7% plus overage asset value. we don't want to buy marked valued assets. that's lazy. and to me, it gets us exposure at all costs. if it were ever to drop below $ $27.55 then i would pull the trigger. since the financials for the period will be out soon. so let's go on to some other e-mail. this one is from tom -- >> tom, senator kaufman was on. he called for -- he's been the driver here from delaware. he called for exactly this issue on the naked shorting.
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he says they have to have more fire in the belly and printed copy today. i will say this -- i thought that was great. that was a good first step and they have not defeated the uptick rule. let's hope they roll everything back. there's lots of chatter that says it doesn't matter. but if you traded before, you know that it slows things down, gives the market a chance to catch its breath and that's what we want. here's from matthew -- >> matthew, i mean, we do want to take off card check. i think we do want to be immediately cognizant of something that t.j. rogers said, which is if we gave the private sector a bonus to be able to pay -- they get a bonus if they hire workers, then that's the way we put people to work in the private sector. this is not rocket science. "mad money" is back after the break.
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during times like these
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it seems like the world will never be the same. but there is a light beginning to shine again. the spark began where it always begins. at a restaurant downtown. in a shop on main street. a factory around the corner. entrepreneurs like these are the most powerful force in the economy. they drive change and they'll relentless push their businesses to innovate and connect. as we look to the future, they'll be there ahead of us, lights on, showing us the way forward. this is just the beginning of the reinvention of business. and while we're sure we don't know all the answers, we do know one thing for certain, we want to help. come see what the beginning looks like
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i like to say there's always a bull market somewhere and i promise to try to find it just for you right here on "mad money." i'm jim cramer. see you tomorrow. if you're taking 8 extra-strength tylenol... a day on the days that you have arthritis pain, you could end up taking 4 times the number... of pills compared to aleve. choose aleve and you could start taking fewer pills. just 2 aleve have the strength... it's the chevy open house. and now, with the cash for clunkers program, a great deal gets even better. let us recycle your older vehicle, and you could qualify for an additional $3500 or $4500 cash back...

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