i'm jim cramer and welcome to my world. >> you need to get in the game! o'is. >> firms are going to go out of business and 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'm just trying to help you make some money. my job, educate and entertain. 1-800-743-cn 1-800-743-cnbc. china's in charge. china's the prism through which you have to look at this entire stock market. the chinese, they hold the market. they got the cards.

if you look at today's sell-off, dow down 26 points, s&p 500 down five, nothing at all made sense through the prism of america. the hardest-hit stocks? freeport mcmoran, bhp bill-ton, caterpillar, bucyrus, norfolk southern, they're all cyclical companies that we know reported better than expected numbers, or at least in line. these are companies that the market loved a week ago. if you only looked at america, this move would seriously confuse you. i mean what the heck's going on? why are stocks that were lauded for doing better than expected now getting pummeled? what's that all about? but you have to remember that america is no longer sitting on top of the world.

all the stocks i mentioned, they're dependent on china. and they're getting crushed. because the market now believes that china no longer needs anything from the rest of the world. china's full up. that's what everyone was saying behind the scenes today. and what was the tell? something even i never saw coming -- two straight weeks of copper inventory increases where it's kept. the repository is in london. for me, that was the signal that china's kaput for now. i mean that's the reason why shanghai's market took a 7% plunge last night and brought our machinery and raw material companies down with it. two straight weeks of copper inventory builds in london leads to a huge sell-off in china which then crushes cyclical stocks in america. is that crazy?

no, i'm not crazy. maybe a little overreaction. but this is the new world. the new world order, where we used to be china and china's now us. you know that a dozen years ago china used about 10% of the world's copper and we used 30%? do you know it's exactly reversed now? they use 30%, we use 10%? since copper's used in all kinds of construction and infrastructure projects, none of which we're doing, a decrease in demand from the communist chinese is pretty bad news. especially for american companies that need china much more than they need the good old usa. when it comes to economic growth, we used to be the top dog. but now the dog's china. and we're just its little tail that it can wag all it wants. when we awaited the results of the debt auction today, we needed to know, did the chinese like it? when we speak of free trade, the question is will it upset the chinese?

we are like britain in 1946, and china is america. i thought hard where we still have a say. where we still have a choice when it comes to china. and i was struck about something my daughter said to me on sunday. dad, chicken fried rice or moo shu pork? we're lucky if they throw in the extra hoisin. that's the reason why everyone is convinced this commodity trade is dead. i didn't care much for that story anyway. i'm not a big believer in the commodity trade. i like technology, health care, i like the banks. but this new atmosphere has created a great opportunity. investors are now selling commodity stocks hand over fist, many of which do not deserve to be sold, because they aren't even all that exposed to china. but they all trade together. so let me give you the one i

like the most. and this is new for me. i hinted on it last night. it was picked up by a lot of websites. most of which are designed to follow me, my every single move that i make, which i find to be actually compulsive, if not crazy. and, it is -- potash. yeah, potash is back after a downgrade 60 points ago. potash the fertilizer company that delivered one of the best quarters i've seen this reporting period. it was down $1.28 today. >> buy buy buy! >> because of the chinese commodity sell-off. >> all aboard! >> even though it's far less levered to china than most of the commodity plays including copper. do you know that the people's republic makes up only 12% of its sales as demand for fertilizer is much more geographically diverse? but it trades with china. in fact, fertilizer in general and potash specifically represent the one commodity china doesn't control.

despite the sympathetic decline the fertilizer stocks experienced today. the long-term thesis here behind potash, if i first fertilizer recommendation since i took tnh and made that a dividend play rather than focusing on potash or mosaic or agrium, is rising population levels not just in china but across the globe, requiring more food along with rising income levels in developing nations, which we will soon be considered, because it increases demand for better food like meat and livestock. they need to be fed. creating even more demand. these are trends that i don't think will go away regardless of what china does. but the stocks trade with china. farmers have an incentive to make their land more productive, and that means using more fertilizer. that said, the reason i told you to stay away from these stocks, because the fertilizer business has been horrible. horrible! mostly because farmers held off on buying fertilizer because of economic uncertainty.

this year we have seen an unprecedented 40% decline in global demand for potash fertilizer. a stunning figure. but it should be self-correcting next year simply because soil can go with reduced fertilizer only for about 12 to 18 months before its productivity is substantially reduced. something that gentleman farmer cramer should know. but i just spray miracle-gro on my rapidly reddening beefsteak tomatoes. lower demand now has set the groundwork for a massive increase in demand in 2010. and while potash prices have fallen, india just announced potash settlements of $460 per metric ton. that's what they use. that's the metric. now, it is down from 650. something that should lead prices across the globe to reset lower. but that's why the stock's down. the contract broke the impasse that was keeping the demand for potash down. buyers now have the clarity they need to resume purchasing pot ar, and more importantly, the deferrals of potash purchases over the past year have created a massive supply -- a massive

void in the supply chain that will have to be filled. this is the so-called restocking we saw in semiconductors at the beginning of the year. all commodities have similar destock/restock. that's why potash believes that at last the great fertilizer depression is over. and i'm with potash on this. the brazilians are now getting very active. they're seeing markets around the world starting to pick up. why potash, though, and not another fertilizer play, you ask? mosaic, agrium. first, potash sells all three main crop nutrients. it's a one-stop fertilizer shop. the whole foods of fertilizer. it's best of breed in fertilizer. superior cash flow and net income. great position in the market for potash. given that it is incredibly difficult to build new plants, they cost about $1.5 billion minimum. nobody's got that kind of credit anymore to build a plant. so as demand comes roaring back, taking prices with it, potash wants to deal with pesky new competitors. and like i said before, the company told what was possibly the best story i've heard this

earnings season on its conference call. i rate it in the top five conference calls i've been on in the last three weeks. 2e9 at the time all of these go-go momentum managers were chasing it higher. now because the market's coming down you got a chance to buy it more cheaply. the great chinese commodity sell-off has created an amazing opportunity for us. one caveat -- i do expect potash to keep going down. it's a $91 stock. it's got a lot of room. it doesn't have dividend protection. i can't tell you where i think the bottom will be but that's exactly what we want to see when we're trying buy a stock. its merchandise is getting cheaper and cheaper. the way to play this one is buy it in increments. so let's say you want 100 shares. i buy 20 tomorrow, then wait for potash to come down 5 points. yes, 5 from where you bought that 20. buy your next 20. then buy 20 more shares after the next 5 points. and so on. that's called scaling in. i teach it in "real money," the book. scaling in is the way to do it with a wild stock like this.

we hate to chase stocks on this show, we hate to force trades. but we love a stock like potash with a great long-term story that we can accumulate as it goes lower. use the now-cooling market to your favor and get the best bases. your ultimate stock cost, the bases imaginable. worst that happens, it starts going higher after your first 20 and you don't have enough on. my definition of a high-quality problem. the bottom line -- everything commodities is being sold off like mad since the market seems to think that china no longer wants to buy anything from the rest of the world. all because there were two weeks where copper inventories went up in london. i know it sounds silly but that's what happened. and i've got to give you the skinny about what's really happening. china's in charge of the stocks. and most of the companies but not fertilizer plays where potash, which pretty much called a bottom on its conference call, is my favorite. you want to declare independence from communist china? i think you should take a look at p.o.t. let's go to robert in florida.

robert. >> caller: hey, boo-yah, jim. >> boo-yah, robert. what's up? >> caller: hey, i'm calling from miami. i'm in the florida international university investment club, and we're looking for an ag stock to add to our portfolio. >> fiu rocks. fiu rocks. go ahead. >> caller: fiu does rock. we're looking at bg, mosaic, and monsanto, and we wanted to know if maybe bg could capitalize off of the chinese growth you that were talking about. >> i think it's good. the stock got absolutely hammered. people are very worried about it. i think it fits. if you want to continue with that theme, you know i like sociedad chemica, sqm, from chile. but potash is my favorite pure play. and that's the one i like more than deere, more than agco, more than mosaic, and, yes, more than bunge. terry in michigan.

>> caller: a wolverine boo-yah from ann arbor, michigan. >> how much do we love the wolverines? how much fun did we have when we were there? what's up? >> caller: jim, first thank you for looking out for the little guys. >> remember, i was a little guy my first trade, seven shares of st technology. it was a good one. also had a couple bad ones. american agronomics. they had a frost the next week. all right, go ahead. >> caller: i read recently and i've been hearing a lot about high-frequency trading. >> right. >> caller: the way i pretty don't even understand how it can be legal. has this contributed to the recent run-up in the market and do you have any thoughts or comments? >> when i heard about high-frequency trading i was with my friend joe nocera from "the new york times" who went over it. happens to be my friend outside of work. we were kind of actually astonished this stuff would go on. but we knew immediately the street would put up a smoke screen that it was-g that it produced more liquidity, it was good for the markets. it's obviously a travesty. it's a parasitical process. if there were a government that

looked into this they would immediately stop it. but you know the way it works. the industry just like with speculation can talk its way out of everything. and by the way-u know what the industry has that the government doesn't have? something that talks in washington. i want you to stay with cramer and take a look at some p.o.t. >> coming up, golden opportunity? as the nickel eagle reports the latest quarter, cramer goes head to head with ceo sean boyd to find out if this gold stock can continue to produce some precious profits. plus-s is conagra the wealthy choice? jim takes on ceo gary rodkin to find out if this savory stock can keep you full of mad money. and later, try to keep up with cramer as he takes your calls rapid-fire in an all new "lightning round." all coming up on "mad money."

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whenever governments roll out the printing presses to fund massive stimulus programs, that will end up, of course, debasing the value of paper currency, and central banks like the federal reserve embrace basically a malcolm x monetary policy, flooding the system with cash by any means necessary, what's your protection? gold. which goes up in times of economic turmoil, and also when the supply of money increases dramatically. in fact, i think gold should always be an important part of every diversified portfolio, because it can act as insurance against inflation, as well as financial chaos. and it tends to go up when stocks go down.

so it's got real nice diversification angle. right now this is one of those moments where i think you want even more exposure to gold than usual. especially now that the precious metal's price has started retreating a tad, giving you a better entry point for all things gold. while gold may be a luxury for consumers, for investors i regard it as a necessity. the setup for gold is a strong one right now. central banks continue to hoard the precious metal having sold only 136 tons so far this year, the lowest amount since 1999. the dollar continues to weaken. and historically, gold performs well in the second half of the year, well documented over the last 11 years, it's never been down more than 1.6% in the second half, but on average it's been up 8.2%, and in 4 of last 6 years the price of gold has increased by double-digit percentages in the second half. where we are now. to me the big question isn't whether you should own gold. you know i already think you should. it is how you should own it. in the past i've tried to give

you a choice. i've recommended three options -- the gld, which is the etf that trades 1 to 1 with gold prices. the actual metal either in the form of bullion as in big bars of gold, not to be confused with the stuff you put in chicken soup. which by the way to do you've got to be rich because to store it you have to have it in the bank or in the form of gold coins, like american eagle coins sold by the u.s. mint. and, yes, i've recommended a couple, just a couple of gold mining stocks. the issue with the gold stocks has been historically they've made you less money than the actual metal because as anyone has seen the treasury's cmi rate knows there are all kinds of things that can go wrong when you're mining for gold, that can really eat into earnings. but now i think we've reached a point where the best of the gold stocks will outperform the price of goal. that's why i think you should buy as aem, among rangold and also eldorado, my favorite gold stock.

it is up 14% since the last time i recommended april 29th when it was trading at $46. i think the prospects are even better going into the second half of the year. agnico has invested enormous sums of money in expanding its operations so it can find more gold. the company's doing something unique for a gold miner -- it has pledged to start paying large dividends to its shareholders. that's something you're not going to get from owning gold bullion and haven't gotten since the days when the south african gold miners used to throw off so much cash. today agnico-eagle reported what i thought was a strong skd quarter, earnings per share coming in at 16 cents excluding one-time charges 2 cents ahead of the street's consensus thanks to increased gold production, which was up 76% as the company began commercial production at its lapa and catilla mines. agnico-eagle have two more mines scheduled to start this year and in the first quarter of 2010.

so the growth here is far from over. with all the new production coming online, i think agnico-eagle is the best way to invest in gold. but don't take it from me. let's hear from the straightshooting sean boyd. as eagle's ceo, i regard him as a good friend of the show about what's in store for his company going forward. mr. boyd, welcome back to "mad money." >> great to be back, jim. >> all right, sir. i think a lot of people who know i recommend the stock are goes to be confused. they're going to see initially that the company made one penny. they're going to see that there was a non-cash foreign currency translation issue. can you break it down why you just don't see agnico-eagle at 16 cents a share? >> essentially we've got a significant component of our balance sheet. there is a deferred tax item there that gets translated every quarter in canadian dollars, so we see a swing there. i think quite rightly you

disregard that. as you pointed out in the introduction, what investors should be focused on is the ramp-up in production which, as you said, will continue as we bring in mines in the third quarter and in the first quarter of next year. and what we also announced today was two more expansions at the existing project pipeline. so that's going to continue the growth out to 2014. i also think you nailed it in the introduction that you should own quality growing gold stocks that are giving investors per-share value increases in reserve exposure, production exposure, cash flow, and then ultimately dividends. >> mr. boyd, one of the things that i'm concerned when i hear you're about to have new projects is, oh, no, is that going to raise the cost? because one of the things i liked about agnico-eagle is that when you literally do arithmetic, not mathematics, not geometry, not calculus, and you look at a $950 price of gold versus what you find it at, it's

a huge number. is that finding number going higher or lower? >> no, it's not going higher at all. you could see in the first half of this year our cost per ounce to produce that gold, the increasing quantities of gold, was $320, which is well below the industry average. and what we announced today is simply two expansions at existing mines that we've brought into production that have happened to get bigger through drilling. so as you indicated, $950 gold, there is a big margin there. and we got very fortunate. we made acquisition decisions a few years back when gold was a lot lower. we made construction decisions a few years back when gold was a lot lower. we're ramping up production at the right time when gold's in the $900-plus range. we expect it to go higher. so we are in a good position here. >> do you bother when you're doing your internal work to try to divine where actual gold price is going? >> no. it's very difficult. one thing that we've consistently done over many years, as you know, is we've never, ever sold an ounce

forward. we've never hedged it. so we've got full up side here and as we said, when we were looking at construction decisions for the vast majority of these mines that are now coming into production, we were using a gold price of $450 back then. so increasing margins, higher rates return and the expansions we just announced today are also low-risk/high-rates return expansion. >> people should understand when mr. boyd says they're just a pure play on gold, a lot of gold companies i've dealt with over the years, why i've been reluctant to recommend them, is that during the quarter, unbeknownst to me, they sold gold forward, they basically capped how much you can make. this company is not doing that. tell me about the on track for the lappa, the pinos, altas, the meadow bank mines. >> the lapa has reached commercial production in may. as did quitala.

pinos altos we started pouring gold if july. we're commissioning that mine as well. metal bank starts in the first quarter of 2010. we've been quite active over the last three years building new mines. as we said our timing and our good fortune could not have been better. >> can you tell me just one, just a general question. work i did show clearly that the second half gold just goes up more than the first half. what happens in the world to make it so that that statistic seems to be -- it is an empirical statistic that shows that gold is a better play after july? what happens? >> it's difficult to say. the gold space is -- there is a lot of emotion attached to it. i think you've got in the past you've had a significant component of jewelry demand, which has moved the price of gold. but i think it is largely investment demand that's driving it forward. i wouldn't really look at historical patterns. i think we are in a new era, gold's a currency, it's re-established itself as a currency, and again i think you hit the nail on the head in the introduction, saying we're in a period of monetary debasement. and that's why gold's done well. expectations for inflation going

forward should take gold higher. >> i'm holding you to the dividend. i know you can't do a big one yet. but in the next couple of years, right? >> that's correct. and when you look at certain analyst research which we've looked at this week, you can see a significant bump in cash flow next year. up into the leading position in the industry. so we're looking forward to being -- >> thank you so much for coming on the show. really appreciate it. >> thank you. guys, it's just getting better and better and better and you need to be in a gold stock. it's too uncertain a time. currencies are going down. you heard about the debasement. great quarter. buy the stock. coming up -- is conagra the wealthy choice? jim takes on ceo gary rodkin to find out if this savory stock can keep you full of mad money. plus, the wizard of wall street kicks it into high gear to give your stocks their final judgment

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i said we'd be in for gentle rolling decline on monday night's show, but that doesn't mean every group gets treated gently. the cyclical companies that rely on a strong economy, well, they've been getting slammed. people think that that's china. it's supposed to be the engine of global recovery, and they feel that things have slowed in china. i might add, given the general stillwell already lost it once already, we don't need to lose china again to this market. but what should you be looking for here when you don't want to worry about whether chinese demand is strong? how about accidentally high-yielding stocks that are immune to both the slings and arrows of this outrageous economy and china syndrome that's afflicting so many other american stocks? i'm talking about conagra which wall streeters know as cag and home gamers know through its brands -- healthy choice, chef

boyar dey hebrew national hot dogs, peter pan peanut butter, pam, eggbeaters, reddi-whip, and, yes, one of my favorites, slim jim, which i always aspire to be. it is not named after me. although that's a common and understandable misperception given i'm in such great for being a 64-year-old. conagra's got a marathon man like dividend that currently yields 3.8%. i like the stock here. of course i'd like it get it below $19 where the yield was 4%. that's one of the things that makes this stock stick out. conagra's benefiting from lower commodity costs just like every packaged food company. it's been able to take advantage of the lower cost of advertising. you read about those rates all the time when we read about newspapers, magazines and of course tv. so it can promote its brand. nothing unique.

you know if it is just going to be a private label plight we'd say why not go with the pure-play fave, treehouse foods. another well managed company. the thing that sets conagra apart, no less important than these other key metrics. the thing is great management. the ceo gary rodkin who came to conagra in 2005 from pepsi, another company we like and one that i own for my charitable trust. gary was the ceo of its entire north american division. and he knows packaged goods -- the business better than almost anyone i've ever met. he understands what brands people want and how to target them at the right audience. take healthy choice naturals. that's a big one thanks to its targeted promotion at the health conscious demographic. he is a master of branding. after conagra's peter pan peanut butter was recalled in 2007

during a very isolated instance of salmonella, the company gave the brand a makeover, new jar shape, more colorful label, and a guarantee that the company would refund the full purchase price foote customer wasn't satisfied. consumers were showered with coupons. by september of 2008 peter pan had almost reclaimed all of its lost market share. that's the smart way to handle a crisis. didn't get enough credit for it versus the old tylenol crisis. deserved it though. you may not be able to measure great management, but sooner or later it shows up in the share price. until then conagra's paying you to wait with its accidentally high yield. still not with me? then let's hear from the ceo of conagra himself. gary rodkin, the ceo of conagra, who we've only talked to by phone. thank you so much for coming on "mad money." >> great to be here. >> now, i once heard you on a conference call where you were -- because you're an incredibly honest guy. you weren't able to make your numbers in a particular quarter because you said commodity prices have gone through the roof. now that they're going through the floor, what does it mean for a changed conagra?

>> you're right, it's clearly different than it was just a year ago. and we are the beneficiary of -- as most of the food industry is, of a clearly moderating inflation rate on commodities. so this year our plan really calls for us to have inflation of low single digits. that's made up of different items. we've got some up. we still have things like steel-based packaging, canning, tomatoes, potatoes. those will be up. but then on the down side we've got things like oil, cooking oils, energy, corn, wheat. so on balance we are in a much better position. >> again, one of the things that you were -- that the street was confused by was that the commodities markets at one point were red-hot. there was a furious amount of trading. you had a commodities division and you sold it. correct me if i'm wrong, but i think you sold it at the top. >> well, jim, sometimes it's better to be lucky than good.

>> that's the last line of my book. i absolutely agree. >> we believe that. that was in process for a while. we were able to close that deal. we got a good return for our shareholders from that, redeployed those proceeds. i think now we've got a much better focused portfolio. now, that's a very good business, that trading business. and that will be good as a focused business on their own doing trading. we now have a very focused portfolio, having also sold off many of the big commodity business like processed meats, where we really didn't have the right to win. >> you control your own destiny with those, right? >> that's right. we had processors that were moving forward into the retail space. so now we're very, very comfortable with a portfolio where we do believe we've got the right foundation to win. >> now, gary, one of the things that i liked about the sale of some of these divisions that didn't have control of was that you also made it so the dividend really seems like a very safe bet to me. true? >> i certainly think so. i think we can really -- we really have the winning formula for sustainable, profitable

growth. we've really remade the company. it is quite a different company than it was just a few years ago, so when you start to think about what we've done with reshaping the portfolio, when you talk about what we've done with our organization structure, we were a company that was really a lot of independent units. very big, had a lot of size but we really didn't have scale. now we have the leverage of scale, whether it's in supply chain or in innovation where we've made great strides, or in marketing. we now are a true operating company that's really changed. >> let's talk about that one. when i tell people that they should go buy a heinz -- i've liked heinz. i'm not in love with it because the quarters haven't been that great. general mills, people know it as cereal. kellogg's they know as cereal. hershey they know as chocolate. conagra, they don't know it. how do you get across the story that is as diverse as slim jim and hot chocolate and popcorn

and pam? >> well, jim, you're hitting the nail on the head. from an investor standpoint that's very important and we've had a corporate campaign in the last couple of months really to talk about a better understanding of what our portfolio is. we're much more like a general mills or kraft or campbell's, not to be confused with where we used to be more like an adm or cargill. >> a commodity-oriented company that has some brand names. >> we do have. and we've got very, very good brand names. when you think about, as we look forward, what those brands can really bring to the consumer, they can bring great value. so whether it's banquet frozen dinners or chef boyardee, meals for about $1. health wellness, you mentioned healthy choice. pam. egg beaters. great innovation. platforms like what we've done with healthy choice and marie callender. we have a terrific portfolio supported by much better marketing than before.

the term i like to use is latent equities. we've got equities that frankly everybody knows, they've tended to forget about them a bit over the years, but they're in about 90% of households. >> i used to be friendly with the management at best foods. i used to urge them please change your name to best foods. they were like consolidated. isn't conagra the kind of name that smacks of an archer daniels or something? i mean, if you called it -- if you called it whatever your -- you know, healthy choice foods, would that not be more resonant with both institutional investors and individuals? >> we certainly have talked about that. and conagra actually means from the earth. so it's agricultural-based. that's a major, major undertaking that would be a significant use of resources. so we've chosen to have a very targeted campaign at investors but the brands are what sells to the consumer, orville redenbacher, swiss miss, pam. we have great, great brands and we're going to continue to market them as great brands.

>> all right, gary, you've done a fantastic job. i think that this stock is going much higher. it would not surprise me to join the 3% yielders. and of course the right way with stock appreciation. best of luck. conagra is a great play. don't forget it when you think about the food stocks. it's got a higher yield, better growth, and great management. stay with cramer. >> coming up, the madness goes nationwide. >> a big buffalo boo-yah. >> the scorching deserts of west texas. >> from southern california -- >> as jim takes calls from all across america. >> st. louis. >> big 110 degree boo-yah from phoenix, arizona. >> boo-yah from seattle. >> if an all new quick-fire "lightning round." and later, whether the dow soars or hits the floor, jim helps you try to stay on steady ground with "am i diversified?" all coming up on "mad money."

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yes, it's time! it's time for the "lightning round." rapid fire calls. one after another. you say a name of the stock, i tell you whether to buy, buy, buy, or sell, sell, sell. just to be clear, i don't know the stock questions. my staff prepares the graphics on the fly. we play until you hear this sound. and then the "lightning round" is over. are you ready, skee-daddy? it is time for the "lightning round" on cramer's "mad money." why don't we start with joyce in texas? joyce! >> caller: boo-yah, jim. i can't believe i finally got you on the telephone. >> i can't believe you finally got through yourself. i've been waiting for joyce's

tell from texas for how many years? >> caller: well, jim, i've been watching you really honestly for three years. i sit here every day, watch cnbc. but the stock i want to know about that i wish i bought was chipotle mexican grill. that stock is unbelievable. >> joyce, i saw today 52-week high. went for the conference call. beautiful number. setting the table, the best book i read about hospitality, said these guys are v. great food, commodity costs down. it is absolutely fabulous. please wait for three to five-point pull-back, then buy, buy, buy! andy in new york. andy! >> caller: cramer, it's andy. opening day boo-yah from saratoga racetrack. >> holy cow, man. let's place some bets. give me a stock. >> caller: jim, the ceo of xto was very bullish last quarter after earnings on the closing bell. with earnings coming out next week do we expect xto to

giddy-up? >> we are going into hurricane season. there's been a big build in natural gas. but remember, xtl, the single best performing natural gas stock in history. i am never going to tell you not to pull the trigger. xto. fred in kentucky. fred? >> caller: hey, jim, i've got a great big bourbon boo-yah for you. >> i'm going to give you a secretariat slash man o'war boo-yah. go ahead. >> caller: i was calling about one of your previous speculation picks, silicon wear precision. spil. >> we want that, testing integrated circuits. speaking about getting beyond testing, i think spil is a good name. i want you to buy it. i want to remind people semis are hot. how great was t.j. rogers with cypress last night? i'm taking more. let's go to eric. oh, in ohio. we always get ohio callers. eric? >> caller: yeah, hello. >> are you from cleveland? >> caller: no, i'm from the great state of ohio, cincinnati. home of the bengals.

>> i was going to say, if you were from cleveland i wanted to thank you for giving away cliff lee today. but i don't have to worry about it. hit me with a stock. >> caller: yes. i just want to say i have one comment. i have a question. i love your show, i love watching it. it is great to have me on this phone talking to you about rsh. radio shack. >> the home from brent sellers, getting to camp today, he will be the best tight end in the nfl this year. radio shack, i think is the second-tier player. i like it for a trade into the digital -- analog to digital. now i don't. i'm walking away from it. i think you should buy best buy. i'm taking one more caller. i'm going down south. i'm going to donald in florida. donald? >> caller: jimbo. boo-yah from south florida. >> i like that. >> caller: how are you doing? >> i'm doing fine, thank you for asking. how about you?

>> caller: okay. quick and to the point. pantry, ptry. i bought at the top. they had just bought a bunch of stores and paid -- >> yeah, i'm not a fan of pantry. i think you can let it go up four, five points. then you've got to sell it. i like cracker barrel more. by the way, i like buffalo wild wings more. i want those two women who run that company back on. they are winners. oh, man. what a short line. it drives me crazy. "lightning round" is -- ready, cliff lee? over. [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? 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.

- oh, come on. - enough! you get half. and you get half. ( chirp ) team three, boathouse? ( chirp ) oh yeah. his and hers. - ( crowd gasps ) - ( chirp ) van gogh? ( chirp ) even steven. - ( chirp ) mansion? - ( chirp ) good to go. ( grunts ) timber! ( chirp ) boss? what do we do with the shih-tzu? - ( chirp ) joint custody. - dog: phew... announcer: get work done now. communicate in less than a second with nextel direct connect. only on the now network. deaf, hard, hearing and peopith speech disabilitiesit . with cialis for daily use... a clinically proven, low-dose tablet for erectile dysfunction you take every day so you can be ready anytime the moment is right. tell your doctor about your medical condition and all medications and ask if you're healthy enough for sexual activity. don't take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. don't drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache.

to avoid long term injury seek immediate medical help for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision stop taking cialis and call your doctor right away. (announcer) 36-hour cialis. or cialis for daily use. ask your doctor about cialis today, so when the moment is right, you can be ready. i really don't care. i talk about a lot of stocks. i talked about potash tonight.

okay? you put your whole fund in potash i'm telling you you're just going to get blown up. my friend, i won't have anything like that. which is why i play every wednesday "am i diversified?" where i actually sit down -- don't worry, i don't sit down for long. let's start with darren in new york. darren. >> caller: hi, jim. great big phillies get cliff lee boo-yah. >> you know, we did have to give them a resin bag and apparently a couple broken bats. so it wasn't a clean trade. go ahead. >> caller: just wondering if i'm diversified. i have five stocks. bank of america, bac. >> okay. >> caller: cheesecake factory, cake. disney, dis. microsoft, msft. and pepsi. he. am i diversified? >> darren's just a straight shooting player. goldman sachs put out a piece, one of the best pieces i ever read about banking had all the stats and they came out and concluded bank of america, fifth

third bank, but bank of america really a great way to play the banks. we've got that. i've been buying it for action alerts-plus.com. i wish i were bigger. that's my charitable trust. pepsi also in action alerts plus.com. indra nooyi, great quarter. we needed her to get the bottling acquisitions. they don't have that down yet. microsoft looks like they pantsed yahoo. nothing personal, carol bartz, but that was a good deal. bing. cheesecake factory, it's an okay restaurant chain. not my favorite. raw costs going down. there is a sense of a turn. and disney. i praise bob iger, look what he's been able to do in this environment, can you imagine when things get better? entertainment company, restaurant, software company, food company, and we've got a bank. i have to tell you, i think that's fabulous. this man knows how to -- you know what he does? he makes it look easy. how about we go to mike in new jersey? mike. >> caller: hey, jimmy. boo-yah. >> boo-yah. trying to get the line whether it's north or south jersey.

can't tell from the accent yet. >> caller: south jersey, buddy. anyway, let's play "am i diversified." let me give you my top five. first one, philip morris, pm. at&t. t. exxon, exc. dow chemical, dow. and alcoa, aa. >> i've got to tell you, jersey is just the heart of good stock picking. look what the man has. philip morris. someone actually downgraded this yesterday. that was a major mistake. that person should go do more homework. it was a terrific quarter, and it yields 4, could be yielding 5, under 43 i want to buy it. that's the international version, top co. version. at&t good quarter. i didn't think as good as verizon. ivan seidenberg is not a promotional man. att does have the iphone. dow chemical saw it sneak over 20 and i said how could i not have recommended it when i pulled him off the wall of shame? that was a mistake. i should have just pulled the trigger. exxon is my favorite growth

utility because it has nuclear power dominance. alcoa coming back not my favorite but you've got an aluminum company, a chemical company, teleco-company, terrific food company, let's call tobacco food for a moment, and a great utility. that is complete and utter diversification. both our players made it look easy. i congratulate them. that is how you play the game. stay with cramer! so, what's the problem?

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i'm pronouncing the great fertilizer depression over and telling you to go buy some p.o.t. i like to say there's always a bull market somewhere and i promise to find it for you right here on "mad money." i'm jim cramer. see you tomorrow. the doctor diagnosed arthritis in my right knee. but with aleve, i don't have to worry about my knees hurting. only two aleve can stop pain all day. that would take three times as many tylenol arthritis pain. aleve works for me.