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

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plus, if another orbitz customer then books the same hotel for less, we send you a check for the difference, automatically. i'm jim cramer, and welcome to my world. >> you need to get in the game. >> firms are going to go out of business, and he's nuts. they're nuts! they know 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. i just want fewer days like today. my job is not just to educate but also to entertain. so call me at 1-800-743-cnbc. you know what i think when i see the dow off 97 points? when i see the nasdaq lose 23? i think it's over. head to the fallout shelter. the big bull run is over! we're headed to the house of pain!
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>> the house of pain. >> no. not at all. i think, hey, everybody, use this dip -- >> buy buy buy! >> -- to purchase stock in one of the most transcendent technologies of our time. that's right, close observers of the show might have even heard of the term. i'm talking about the mobile internet tsunami. >> house of pleasure. >> why buy these tech stocks now? isn't everyone running for the exits? isn't everyone swinging? aren't they all scared? isn't it just the most dangerous time? oh, please. you buy them now because they're going down. and they're going down on worries about what the fed will do. you remember this fed? >> they know nothing! >> they're gone. they're worried about the u.s. economy slowing. they're worried about an l-shaped recovery or worse. a w. whenever you get unrelated across-the-board weakness like
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this, where everybody's puking up stocks because they're all scared and worried, what you do then is you load up. gradually. because it might not be over. on the long-term themes that you believe in. and right now the mobile internet tsunami is the best long-term theme i know of in this market. so you can fret all you want about the fed. the short-term vicissitudes of the u.s. economy. or you can take advantage of the huge sale the market is throwing and start buying some of the mobile internet stocks, which have yet to come in until today. which stocks? the mobile internet has been firing up almost every corner of tech. i mean, it's got the best pin action i've ever seen. courtesy of the lanes of madison. i recommend a number of ways to play it. but you know what? it's all been scatter shot. it's all been haphazard. some say it's been ad hoc, untrue.
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today i want to unveil the "mad money" mobile internet index. there's a mouthful. this is a group of stocks that will monitor -- a stock we're going to go to the monitor to monitor. the monitor that's seen for months and years to come. yes. years. i think the mobile internet tsunami is like nothing we've seen since the recognition that the regular internet was the next big thing. or even since the pc became a household item. and that means the gains here could be huge. multiyear. and we're not going to sit there and worry about what the fed's going to do if this is a multiyear move. first play, the easiest. the web! because after all, where else do you think people using the mobile internet are going to go? they're not going to snail mail. they don't read like -- they're not reading the hardbound catalogs on the cell phone. no, they go to the top website people use on their computers, and it's bound to be the top site they use on their iphone, their blackberry, and of course that is google. didn't mean to cross it out. how about this? google. how about the devices?
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given that handset devices are going to be the biggest contributor to the growth of the mobile internet, you know what my fave is there. it's apple! stocks coming in for the first time in ages, since it reported. it's the best position. it's the best innovator. it's the game changer with the iphone. and its accompanying app store. can you believe those apps? every day they come one new ones. medical apps. we also need, because it's an index, rim. research in motion. that's blackberry. especially since it's a pure way in. apple isn't because it has pcs and it has, of course, the ipod. we want palm in the index. even if they don't like it here as much as apple or rim. and there's no denying it is an essential smartphone, the pre. and you know what? sprint's going to push this thing pretty hard. now, we have a sell on palm, we put it on higher. we will like it more as it comes down because of the big nature of the internet mobility. then there's the backbone of the mobile internet, the companies
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that make the components for the telco networks that the mobile internet operates on. i've highlighted a bunch of different players in this space. but again, not all at once. saving it for the big sale day like they threw today. for connectivity equipment cable distribution panels, boring, who cares? there's money on the line here, joker. you went adc telecon, which is also a big play on the wireless stimulus in -- china! okay. for infrastructure and content my favorite is starent networks. star. it's just on youtube. we'll clean it up when -- when it actually runs we'll clean that up. strong market share in cdma technology and also its expansion into china. then they're the companies making the broadband routers and switchers that move packets of data, they call it that, technical term, around the world.
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enabling wireless and brond bad services. who are we thinking of? my friend doug kass, who writes with me at realmoney.com, part of thestreet.com, he told me cisco had a bad quarter. hey, dougie, sorry, that was a good quarter. second, an integral part of the mobile internet tsunami, some would say the backbone, maybe the spinal column, is cisco, but you've got to have others. other infrastructure players. and even though i own cisco for actionalertsplus.com, my charitable trust, the speculative plays really intrigue because they could have huge moves. what are my two faves? the ones who have the most exposure to the future of this industry are ciena, which is still like a lowly $11. and tellabs. both these wireless networks that allow you to have the bigger band width to support the video and mobile services. why do you have to watch the show? remember we had the tellabs ceo on ten days ago in it's a gigantic buyback today. the stock was the only stock that opened up today. you've got to watch the show.
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please. anyway, how about a play on the equipment needed to enable text messaging? have i ever talked to my children other than through text messaging? okay. you also need local number portability, industry gibberish for the technology that lets you keep your phone number when that changes networks. tekelec. tklc. we've got to round out some equipment plays. you need a company that makes transmission equipment like antennas, not rabbit ears, wireless base stations. i need you to look at commscope. ctv. i have it all written down here. you can just write it down. how about the components? we've had all the component ceos on. and if there are any that still want to come on we'll call them. smartphones are just like any other gadget. they need semiconductors to operate. and they're two big companies that make many different kinds of proprietary chips for the wireless markets. the two big ones are qualcomm
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and broadcom. usually in litigation with qualcomm, but we solved that problem. the networking equipment that's needed to operate the mobile internet, it needs semiconductors. this is a little dicey. we're going to go for net logic. netl. not a great company but this tsunami is so strong it's taking everybody with it. it makes the chips that allows switches and routers to read data where it goes. how about some programmable logic devices? remember we had that xilinx ceo on? shortfall in production. we thought that was an opportunity to buy, so we're right in there. go deeper. i can't smash a smartphone today because i've smashed all the other ones, but what's inside? signals enter and exit the front end of a mobile device. so what do you need for that? it's not a tin can. you need power amplifiers and filters to handle that for them. i like rf micro, skyworks solutions. you got these? power control.
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had the ceo on the other day. the quarter was better than expected. cypress semi, how much money have we made with t.j. rogers? cypress semi guy. tessera. we like that one too. they have the patents for making smaller and smaller cameras and smaller packaging. i like it more than cree, by the way, which is not on the index. storage. photos, songs, where do you put that? sandisk. sndk. flash memory. here's how the index will work. we take these 21 stocks and assuming we spent $1,000 each to buy them at today's closing prices, the index is going to start at 100 today. we wanted to wait for a down day so the index doesn't look bad. we're starting the purchasing at the close of the prices today. from here on out we can track the performance of the mobile internet tsunami over time. you've got a list of the most representative internet plays out there. i'm sure some etf company will
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bundle this and take full credit for it and not give me a dime of credit. but you heard it first on cnbc. here's today's bottom line. take today's weakness in these stocks as a gift. stop looking at the horse in the mouth already. you've got to fall back on big themes in order to cash in on in. i don't think the mobile internet's going away. i think it's just gotten started. you can use the worries about the fed along with the profit taken to buy stocks and the economy i believe to buy these stocks, which are poised for titanic multiyear gains. you're getting them cheaper because the store's having a big sale, and on sale included are the 21 names in cramer's mobile internet index. rick in florida. rick. hey, citrus. where's that seminole? >> caller: hey, seminole, heck. big gator boo-yah. >> university of florida boo-yah. man, i said the wrong thing. he's going to bury a hatchet in my head. go ahead.
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>> caller: we're here in kazakhstan, at the moment. jim, talking about your mobile internet, i get to watch the show every day using a slingbox. >> really? where are you? where are you located? >> caller: yeah. i wouldn't kid you about this. >> wow. really? cool. man, thanks for calling. what have you got? >> caller: jim, i've made money over the years trading adobe systems. and i've done so again on this last run. and i've taken my profits, but i'm wondering what you think about this company long-term. >> i happen to like this company very much. every time there's a new way to get data, every time there's a new device, every time there's a new innovation in terms of pushing data faster, you should think adobe. like you obviously do, rick. and i've got to tell you, i think that on any weakness i want you in -- back in that stock. i think adobe's a great way to play it. i share your enthusiasm. okay. let's get it.
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dow's down 97. do you panic? do you run? do you get scared? do you cry to your mother? no. you start looking at the cramer mobile internet index. pick one. the tsunami's not going away. i say find your favorite. if you can't find your favorite, buy a basket. but don't lose this opportunity to purchase on this dip. one of these stocks. "mad money" will be right back. >> announcer: coming up -- could wheels powered by nat gas fill your tank with "mad money"? cramer goes head to head with clean energy ceo andrew littlefair to find out if this stock has the power to fuel your portfolio. plus, is it time to ring the register on one deep discount retailer? cramer checks the technicals on an all new "off the charts." and later, jim goes high voltage in an electrifying crossfire lightning round. all coming up on "mad money."
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someone knows something about natural gas. someone knows something i don't know. that's what i have to think when i see the stocks going higher despite the underlying commodity going lower. i mean, the stocks are going -- >> buy buy buy! >> nat gas is going -- >> sell sell sell. >> could there be something going on with natural gas as a fuel maybe outfitting gas stations, cars so they can run on something that's 20% cleaner than crude, maybe more? that's what i think when i look at the run. the clean energy fuels, clne has had. this is a stock i've liked as a spec for a long time. it's up 171% since the last time i spoke to the ceo, november 20th of last year. it's at $3.49. clne is the play on using natural gas as a fuel in this country.
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what a move it's had. but of course a spiteful person like i once was could say come on, jim, you liked it in the teens a couple years ago. i've liked it all over the place. you'd be right. but it's had a super climb from the bottom. it now may be opportunity knocking, down 71 cents today to $9.46. in the miserable trading session we had. for the longest time no one in washington would embrace natural gas. fossil fuel. and there's a fatwa if not a full-blown jihad against fossil fuels. even clean ones like natural gas. the democrats didn't want to get their hands dirty with something that wasn't wind or solar. never mind we needed transition fuel if we want to do something about climate change in the decades before truly renewable fuels can start making a difference, until they can put that wind mill on your trunk. plus the coal lobby of both democrats and republicans a lot more powerful than the natural gas lobby. so in this weird world where we embrace the cleanest and the dirtiest but nothing in between. at long last, though, it looks like maybe the attitude in washington's changing. maybe the natural gas companies
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hired some better lobbyists, spread some money around. i don't know. something is doing something. i'll be happy to waive my usual consultation fee if we get the program. yesterday senate majority leader -- that's a joke. i don't have one. senate majority leader harry reid's annual clean energy summit in las vegas took place. natural gas getting a lot more attention out there. even al gore seemed to acknowledge the inconvenient truth that we're going to need to embrace a fuel that's just less dirty before we can get clean. my take, let's hope what happens in vegas doesn't stay in vegas for a change. there may even be the political support to get nat gas through congress, oh, wow, among other things the bill that's on the table would require an extension of the existing credits for natural gas as a transportation fuel. it would provide a tax credit for the purchase of a nat gas vehicle, require half the vehicle the federal government purchases over the next couple years to be natural gas fueled. legislation would be used for clean energy fuels, largest
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chain of natural gas filling stations in the country. not to mention all the natural gas companies. if this gets past they're all going to be good. the big question i have is when the political winds change for for the fuel, are the democrats finally willing to do something smart here? i don't know. but hey, i know someone who would. andrew littlefair, the ceo of clean energy fuels. he was going to come on at 3 bucks. he didn't duck, go under the desk like a lot of guys, i'm right here, i'm right here. no, this guy was actually right here on your screen, as he is again. andrew, welcome back to "mad money." >> well, thanks for having me back, jim. it's better to be here at $9 than $3.49. >> i think i can give a big boo-yah on that, actually. i am by nature, because i've made -- you know, done okay in the stock market -- a suspicious and skeptical person. i look, and i've been telling my staff and come out here every night, and i say i can't understand. natural gas at 3.50 but the stocks have been on a tear. somebody knows natural gas is
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going to become a preferred fuel. i look to you, sir, as the person who might know what's going on. >> i think you're right in your intro, jim, that there has been a change in washington. i was there yesterday with vice president gore and senator reid and a whole host of others. president clinton, boone pickens. and you know, all of them seem to believe now we ought to move to natural gas for heavy-duty vehicles as a bridge. you know, if you just -- boone had it right yesterday. there are 3 million 18-wheelers in the united states moving our precious goods around the united states. if those went to natural gas, and of course that won't happen overnight, that would reduce 2.7 million barrels of oil that we import every day out of the 12 or 13 million that we import. >> every day. >> every day. >> how much has cash for clunkers reduced? is it like 2.7 million a year? >> yeah, it pales in comparison. remember, an average passenger vehicle use 600 gallons a year,
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660, and an 18-wheeler uses 20,000 gallons. so if we want to do something for climate change, natural gas is 26% better on climate change, and reduce foreign oil, this is where you go. and i think actually it's beginning to get traction. you're right, the nat gas act has been introduced in the senate and in the house, has 75 co-sponsors. senator reid just sent a letter out and made a public statement saying negotiation he'd like to have it as a stand-alone bill. i don't know if that will happen or not. it will obviously happen after the recess. we'll see. but a lot has changed in a year. >> but andrew, i have not yet heard the president, who talks about a lot of arcane issues, whether it be the credit card companies or the health care, i have never heard him utter two words together, which is "natural" and "gas." >> well, you know, i haven't heard the president speak about it as much. we've got leadership in congress now. i know boone has met with president obama on this subject and seemed to understand it. his secretary of energy chu i
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think still needs a little work on it. >> oh, yeah. >> he's not quite there yet. but i think we're going to get there, jim. >> does anyone in congress know that there's huge -- particularly, say, from pennsylvania, new york, west virginia, north dakota, south dakota, arkansas, texas. do they know that they are sitting on millions of jobs if they push this through? >> right. if you just did -- i think they do now. i think finally washington's figured out that we have a lot of natural gas. it's a total game changer. right? here we have this domestic clean resource that we have, that we can reduce the foreign oil. if you just did three -- listen to this one, jim. if you just did 350,000 heavy-duty trucks, so let's say you did that over three years, i think you could do it faster, but that's modest. that would create 450,000 jobs over three years. it would replace 5 billion gallons of diesel a year. no other alternative fuel do we have is ready today. >> but i've been speaking to nat
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gas executives over 2 1/2 years. no one's listening. when will they get -- >> he really was working with boone. i think the vice president has come around. he's figured out you have batteries. he likes the batteries for the vehicles -- >> we all love batteries. >> we all love that. but don't have that technology ready for a walmart truck. and he gets that now. he said it yesterday, boone, i'm with you on the natural gas as a bridge, and that bridge is probably good for 20 years. >> i agree. now you just raised $73 million in stock. obviously, if congress passes this, you are the huge beneficiary. but who -- we can't expect exxon to switch, right? we have to build all new stations. they have so much vested in gasoline. >> right. and so i think the way this is going to work right now is it's going to move to the heavy-duty. so it's not going to be exxon and chevron. because they fuel light duty vehicles. they may get with it later, but it's going to be -- you're going to put natural gas in at truck
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stops is what's going to happen. that's how it's going to start. >> can you do that? do you have agreements to do that? >> we're working on it right now. that's the next phase that we're working on. we just finished the largest truck stop in the port of los angeles. there's 500 energy trucks hauling nike tennis shoes and target goods out of the port of l.a. every day. so this stuff works. now swift trucking and j.b. hunt and walmart and pepsi cola, they're all testing us. they know it's going to work. >> andrew littlefair, thank you for coming on. this isn't about proselytizing. the show is about a lot of different things. i see your trend. i want people in it. so far it hasn't worked. i feel emboldened after i speak with you. thank you so much, sir. good to have you. >> thanks, jim. >> the stock is clean energy fuels, clne. once again, i'm going to issue only a warning. it is a speculative stock. if you agree with me that natural gas will be our preferred fuel in 2013, 14 for cars, though, this is a better deal than exxon. after the break i'll try to make
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you more money. coming up, is it time to ring the register on one deep discount retailer, or can obama's stimulus help one stock cash in? cramer checks the technicals on an all new "off the charts." plus, jim goes fast and furious as he faces a non-stop barrage of calls, giving stock after stock their final verdict on "lightning round." and later, citi's finally lending again. so why the sell-off? find out on cramer's eureka moment. all coming up on "mad money." tools are uncomplicated?
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for every good idea you come up with, only maybe 1 in 10 will ultimately turn out to be a huge hit. maybe only 1 in 10's investable. that's a nasty ratio. even as you might presume that
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most ideas that come into your head have gravitas. tonight i want to give you a cautionary tale. an example of how to do the homework so you don't get crushed by your own convictions. i've got to teach this stuff. you've got to learn it. you need to see how hard it is to come up with real winners. really. and you need to hear beyond the cacophony and the headlines, which so often mislead you and your portfolio down treacherous paths. i'm going to teach this thing, i don't care howe how many times i have to. and i'll use any prop i have to, case in point. i got super excited last week when i read about all the extra money we're pouring into food stamps in this country. it may be the obama slash pelosi mishmash if not mosaic or pastiche stimulus package increased what the fed spent on food stamps by 60% year over year. 34 million people now getting food stamps in this great country of ours.
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then just last tuesday a week ago the senate passed a $124 billion ag bill that includes monies to add millions more people to the food stamps roll. that's more than a tenth of the country using food stamps, going higher. more people using food stamps than postage stamps after the e-mail. well, maybe not. but you get the picture. so i thought a little bit and i said to myself, self, this couldn't be a better opportunity for a company like family dollar. a 6,600 store chain that's rolling out systems to accept food stamps. and already can in 60% of its stores. even though it's not the kind of stock that usually works when the market's thinking recovery because people trade up, not down. so in other words, they would go buy the kiebler of this one, you would probably buy the real saltines, not the bogus saltines. you may even want to get mac and cheese from craft. you get that. doesn't this look a the lot like campbell's? you probably want the real thing.
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and hey no, kidding, right? we've got the whole shooting match. isn't this nestea? no, it's not. seven seasons. seven seas. whatever, you get it. when things get better, you don't buy this stuff. there may be a potential food stamp second window that could take the stock higher. family dollar seemed like a slam dunk thanks to this ag program. better yet this is something most wall streeters wouldn't even notice because they read the sports section, the business section, throw the rest away, don't even look at the crossword. then i checked in with not one but two technicians for a little off the charts action. it's tuesday. to make sure i was on the right track. whoa. smoke show. they were both negative on family dollar. first dan fitzpatrick, my colleague at thestreet.com where i'm chairman, thought the uptick on the stock was coming to an end because the stock was seeing lower highs. i love this. most charters keep an eye on the
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lows, with higher lows indicating aggressive demand for stock and lower lows meaning decreasing demand. but as long as the lows are higher the chartists usually think everything's fine, fits. he likes to look at the highs, and what he saw on family dollar was a negative pattern, a pattern of lower highs in the latest round of buying. he takes that as a sign that the move higher is over. finit. kaput. and i think he's early. i think he's going to be right. look at this. here and then there and then it went there. you know, that's lower highs. to fitzpatrick it indicates an increase in supply. sellers are now rushing to get out of the trade. the big money is leaving. or a lack of demand. both of these are bad. only latecomers to the story, clowns like me who read the paper and said i'll go buy some. latecomers are notoriously low capitalized. they're home gamers like you, not the big buyers. the right response is the same
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according to fitz. going lower, take your profits. hey, you know what? i wasn't satisfied with that. i went to another guy. i went to rick top gun trader bensignor, chief market strategist for execution limited. he runs top gun trader for the street.com. he also hated it. he had similar reservations about fdo because the stock at $31.32 now has gotten too far away from its major up trend line. it should be in this channel. it's gotten too far up. he thinks there's a lot of down side, not much up side. worrisome. even though i like the food stamp thesis, i got to tell you, i care about this stuff. i've got two top-notch chartists telling me the big money's exiting when i'm moving in, that makes rechallenge your thesis. that's what i did with family dollar. i wanted to find out why these charts are doing what they -- remember, we go under the charts. we go off them. you know what i found? turns out there's some really hair on it unlike this. and the flood of food stamps just doesn't look like it will be enough to compensate for these negatives. what is wrong with family dollar? what are these people seeing? why is this thing going down
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here? give me that first chart for a second. first off, the company is going -- i mean, what happened here? i'm going to tell you exactly what happened here. i'll tell you exactly what happened here. first the company's going up against some real tough comparisons beginning right here. last year's sales annualizing the checks from last year's stimulus. management even said on the conference call it's going to be difficult because last year was so strong, beginning right here, okay? whatever gains there might be from food stamps it won't come in a one-time burst of sales. that's what fdo had last year with those stimulus checks. it is why i think the tough compares could kill this stock. rate of gains is going to be less than what people want to see. maybe a lot less. because lots of poor people spent those checks all at sdl. second problem, family dollar, kind of like walmart, which reports this week, and i don't think it's going to be anything to write home about, fdo's still priced for recession. the top down people, the ones who only focus on macro economic data, gdp growth, unemployment,
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they might believe we're going back into recession, but the big money's leaving the stock because they think things -- they think happy days are coming, that the economy's better, that fewer people have to shop at family dollar. it's not like this is aspirational retail. okay? when the economy's improving. you've got to look at family dollar as being a food stock in the mix. it's the consistent single-digit grower. what the market wants right now is inconsistent high growth. everything i've learned in all my years of trading investing tells me investors won't want to reward this one with more buying right here in the cycle, top it off, this is the killer. kkr, once known as a leverage buyout company before that term became a curse to investors, it's bringing dollar general public this week. could come this week. and kkr has been the ultimate zero sum firm. look at it this way. kkr's an exquisite timer of the market, not for you but for its investors. no crime in that. they are maximizing return. they're looking out for their people, not you. that's my job. they've waited until what looks like the smartest time for you, the public, to buy at dollar store. middle of a recession.
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but when i put on my cynical hat i say wait a second, don't buy when kkr's selling, they understand a recovery's around the corner and dollar stores will go out of fashion, as they were when kkr bought this thing a couple years ago during the boom times, when going to a dollar store made you feel poor. even though kkr's not selling family dollar, we have to conclude that if the smart guys are selling a very recently lbo dollar store we don't want to be buying anything similar. this is not general atlantic. remember that from yesterday? they created value for themselves and for you. kkr's all about creating value for kkr. that's okay. that's their job. i'm still feeling the pain from sealey. another company taken public by kkr. i recommended paying up to $18 for the ipo in april 2006. the darn thing peaked at 18. it's now hanging around $2 and change. kkr sold a bedding company at the absolute height of the housing cycle. to quote noted stock guru george santayana, those who cannot
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learn from history are doomed to repeat it. maybe this time kkr's picking the top of the dollar store cycle. fool me once shame on them. fool me twice shame on me. plus you've got to figure throwing another dollar store in the mix would be bad for family dollar, which would go from being a second -- the largest or the second largest publicly held dollar store. anyone who wants to buy a dollar store will have a lot of shares to choose from. here's the bottom line. i think i could have made a fool of myself recommending family dollar off increased food stamps. thankfully, the reservations of the chartists got me to probe deeper on this one, change my tune, challenge my thesis. whatever gain there might be from food stamps, it won't be noticeable versus the really tough comparisons. plus we don't want to be buying a dollar store when the geniuses at kkr are selling one. we may be dumb, but don't call us stupid. ian in virginia. ian. >> caller: cramer! big, big, big giant boo-yah from all the men and women of the united states coast guard -- >> yes! thank you for serving. unbelievably great job.
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thank you. and anyone who's ever been in trouble on a boat knows that for certain. what's up? >> caller: cramer, with the economic factors showing the recession as slowing down and in a few weeks all the kids will be heading back to school, what stock, walmart or best buy, will recover quicker from the recession and have better growth in the long run? >> i'm very worried about best buy because my friend mattie fasler at goldman put out an excellent report just yesterday saying they're going to be squeeze squeezed by walmart on the actual physical and by amazon, which is what the kids are going to be using to get this stuff. i prefer walmart, but you're giving me a real hobson's choice here, my friend, because i don't think walmart's going to have a blowout quarter either. so i'm punting and saying jcpenney. wow. while fdo might seem like a buy on food stamps business, you know what? this whole thing, by the way, this was $3.49 worth of food. just kidding. they don't sell anything for 49 cents. i did my homework, and i'm speaking with the fundies. the chartists are telling me to stay away.
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i'm staying away from the bite size ravioli too. stay with cramer. >> announcer: coming up, lightning strikes. cramer goes electric, taking all your calls in a spine-chilling, overcharged "lightning round." and later, citi's finally lending again. so why the sell-off? find out on cramer's eureka moment. all coming up on "mad money." i'm racing cross country in this small sidecar,
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but i've still got room for the internet. with my new netbook from at&t. with its built-in 3g network, it's fast and small, so it goes places other laptops can't. i'm bill kurtis, and wherever i go, i've got plenty of room for the internet. and the nation's fastest 3g network. gun it, mick. (announcer) sign up today and get a netbook for $199.99 after mail-in rebate. with built-in access to the nation's fastest 3g network. only from at&t. you must be looking for motorcycle insurance. you're good. thanks. so is our bike insurance. all the coverage you need at a great price. hold on, cowboy. cool. i'm not done -- for less than a dollar a month, you also get 24/7 roadside assistance. right on. yeah, vroom-vroom! sounds like you ran a 500. more like a 900 v-twin.
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excuse me. well, you're excused. the right insurance for your ride.
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oh, yeah. it is time. it is time for the "lightning round" on cramer's "mad money." rapid-fire calls one after another. you say the name of the stock i tell you whether to buy buy buy or sell sell sell. i do not know the callers or stock questions ahead of time. 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 david in d.c.? david. >> caller: boo-yah, jim! how are you? >> i'm better after that boo-yah. what's up? >> caller: i'm a little confused, actually, regarding johnson & johnson. last week on cnbc you said it was a buy.
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yet your charitable trust you have it as a sell. >> no, no, i sold it from my charitable trust in order to move into something that had more years, which is bristol-myers, which has got a 6% yield. i like that guy cornelius. i think he's doing a terrific job at bristol. i like the yield. but i shouldn't have sold j&j. i wanted to make a swap. i often talk about that. i get into something that maybe has a little less beta, a little more dividend. j&j's fine. it's a really well-run company. i think he's terrific, always welcome on the show. please don't take my decision to swap out of j&j into bristol to mean that i say sell sell sell. it just means i like bristol-myers more. aaron in michigan. aaron. >> caller: jim. boo-yah, skee-daddy. >> chief, i'm liking this guy. hit me. >> caller: i love the show. >> thank you. >> caller: blue horseshoe loves t.e.n. teneco. >> blue horseshoe likes that copper company. these are references to wall
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street. so people know that's a movie that's pretty funny. that's irrelevant. because he was wearing those good-looking suits. from morty sills. that's where i used to get my suits made. he's asking about teneco. this is a difficult one because every one of these companies has flown. auto parts companies borg warner, teneco. i think the move has peaked for the moment. i want to ring the register. i think we're late in auto parts. i'd like to go to -- i'm going to mispronounce, this but that's my prerogative. morel from florida. >> caller: morel from sunshine, florida. boo-yah! i'd like to get your take on adm. >> they had a good quarter, and i'd use that opportunity to sell. it really doesn't know what it wants. i think it wants legislation. it doesn't seem to be -- you know what i'll do? hey, let me do this. bunge, bg, was down today
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$4.80 because they're doing an equity offering. let's do some bunge. bg. tar heel coming. gary in north carolina. gary? >> caller: boo-yah, jim. this is gary from black mountain, north carolina. >> probably prettier than where we are. i got to tell you that. what's on your mind there, sir? >> caller: well, other than your show of course, i watch a lot of fox news, and i was wondering your opinion on newscorp. nws. >> they've got a network besides channel 5? holy cow, it's a shocker. i think newscorp -- i don't like media companies. the only media company i'm recommending right now is time warner. it's almost all cable. this one has had a nice move. mr. murdoch and i have at one time or another sparred. i want to be completely up front about that. i think he's done a great job. i just don't like media companies. i read his publication every day.
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i watch the -- i just can't recommend it. karen. ooh. karen in new jersey. karen. >> caller: boo-yah, jim. >> boo-yah. >> caller: i'm so excited to talk to you. i love your show. >> thank you. >> caller: and i was wondering. i have allegheny tech. aci. what should i do? >> here's the good news. the good news is they reported a really bad quarter and the stock didn't get hammered. the bad news is i cannot think of a reason in the world to recommend that stock until the mliner is going to be able to ship because they make a lot of the titanium for the dreamliner. so ati, don't buy. >> and remember, that was my stock of the year in 2006, it was the number one name in the s&p 500. we picked it the stock of the year. robert in colorado. hey, robert. >> caller: hey, jimmy jim, i love you, baby. double mile-high boo-yah. >> mutual boo-yah right back at you.
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>> we're two miles up here in the rocky mountains. i want to ask you something, jimmy. i love your experience. i love your expertise you gave me. it is priceless. let's go to this. har. >> you just had a big run-up with some takeover talk. that company was going to be bought out at a much higher price. this is an auto parts play right now. i'm not kidding. they make a lot of stereo systems in cars. i think it's up too much. i would buy it back at 20. i think you've got a good gain. i can't put new something that's come up that much. that wouldn't be prudent. let's take one more call. while we have time. let's go to richard in california. richard. >> caller: hey, cramer. a big santa monica, california boo-yah to ya. >> i used to live on centinela. then i lived in venice beach. and then i lived down in pacifica. i was living in my car. those were not high rent districts. go ahead. what stock? >> caller: how are you doing, man? >> not bad. >> caller: bank of america. bac.
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>> i'm reloading. i'm charged up. all of a sudden everyone's selling the bank stocks. wow, really scary. let me tell you how these work. move to 3 to 4 but it consolidated. 10 to 12 but consolidated. then there was a move from 12 to 16. it's consolidating -- i sound like bo diel. i've got to give him a call. here's what i would do. i would be a buyer of bank of america. i own at actionalertsplus.com. my charitable trust. and then wait until it gets to 13. then pull the trigger again. i want a full position based on a 14 basis if you follow my direction. holy cow, they're telling me that the "lightning round" is 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.
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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.
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citi group joined the lepp row -- leprocy file today. it took it down 25 cents to $3.69. slightly lower than where i thought it was a buy last week. i think the sellers are wrong. i think they don't understand
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citi's pr initiative, public relations matter with this one. they don't understand how important it is to the company. i know this is a different way to approach things. citi group said today t.a.r.p. related lending programs reached $50 billion. they are participating, lending all over the place. typically this is not the story we care about and it's not investable. citi group is lending a lot. good for them, they're a bank, they should be lending. this isn't like announcing that citi group is going to sponsor a stadium where the mets play. i don't think the sellers -- i don't think the sellers today understand how much this press release matters, or the importance of all the money citi leant. i do, and i had a eureka moment about this. many banks have a huge number of issues, especially with credit cards and mortgages. citigroup has those issues too. but the biggest issue with this
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bank is the 34% stake that the government has in its common stock. as someone who has recommended citi as a speculative play, the government stake worries me. i don't want the government in there. i want it selling the stock as soon as it can. which is september 10th. unlike other banks, citigroup also has a bear issue, as in sheila bair, the head of the fdic who seems to be against the company ceo, who i am vouching for and am telling you that he's doing the best job he can. i want her to stop meddling with citi and with the ceo. now, most pr offensives mean nothing. this one, though, with this company with perhaps the worst pr in the world does matter. it could accelerate the government's decision to exit, it should loosen the sheila bair noose. it matters to the important agents in the government who
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could kill the stock if they had the chance. they love this stuff. it gives citigroup some breathing room to pay people maybe on par with what others are getting, who are not suffering government heat. it stops people from focusing on that guy who wants $100 million in pay. memo to citigroup, dump that unit like a hot potato. it takes them off the washington radar screen, thank heavens. that gives us one more reason to buy citigroup. don't wait until the dennisons of citi field get into the playoffs. i think you'll end up paying 12 bucks. the time to get long citigroup is now. "mad money" will be back off the break. (announcer) take your time to find the right time
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internet tsunami beckons. i always like to say there's a bull market somewhere and i'll try to find it for you. i'm jim cramer. see you tomorrow. i'm racing cross country in this small sidecar, but i've still got room for the internet. with my new netbook from at&t. with its built-in 3g network, it's fast and small, so it goes places other laptops can't. i'm bill kurtis, and wherever i go, i've got plenty of room for the internet. and the nation's fastest 3g network. gun it, mick. (announcer) sign up today and get a netbook

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