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hey, i'm cramer.

welcome to "mad money." welcome to cramerica. other people want to make friends. don't care at all. my job is not just to entertain you, but to educate you, so call me. 1-800-743-cnbc. today is a great example of why i preach endless flexibility and no dogma in cramerica. if you believe we are in for a gigantic, big, scary sell-off, no matter what, then you missed a great opportunity -- >> all aboard. >> -- to buy. anyone who bought on this morning's pullback, which took the dow down a very frightening 91 points, made out like a bandit. the market recovered and the dow

closed up 37. now, a lot of people think the market has gotten overextended. remember i had that -- i was a barista for a few minutes. i had a little froth on the set, remember? i baked a cake, too. that didn't go well. well, in this market to invest intelligently, you're going to get some froth. i don't care. i'm sticking with my strategy of selling into strength to raise money so that you can buy shallow dips like today. and as we saw today, my strategy is working. your flexibility allows you to buy stocks down and you couldn't even get a real sell-off going. what does that tell you? to me it says the dips must be bought. it's a mistake to be dogmatically bearish. the market loses its footing because, well, it's -- it gains it back by the end of the day. it gets right back on its feet. i was working on this all day. do you know we haven't had a pullback in the s&p 500 larger than 5.6% since the lows on

march 6th? that's why i always say 3% to 5%. we haven't even had a 6% pullback. could there be a better, more empirical, rigorous argument about why we should be buying the dips? i keep saying we'll have shallow periodic 3% to 5% pullbacks, and that's what we've had. that's the market catching its breath. that's been the pattern since we bottomed. not huge decline, but small ones as we refuel. now, why is that happening? it's the mechanics of the market. remember, the big hedge funds and mutual funds that once sat on the sidelines for too long are fighting for their lives here. they have no choice but to buy. and they can't afford to sell. they need every bit of merchandise on their position sheets, which is probably why we reversed today and came back from this morning's sell-off. so i said take advantage, take advantage of their panic. get in there ahead of them

and -- >> buy, buy, buy! >> it's been the surest strategy going. i'm not sure why i'm the only one advocating this strategy. it's the only strategy that's working, for heaven's sake. what about the froth? what about the froth? there's an argument being made that this buying of the single-digit stocks, that it's reckless. that the -- that the moves tell us that buyers aren't thinking, that they're lame brain, that they're chuckle heads, that this is uninformed speculation of the worst sort and when the big pullback comes, it will blow out all of these weak hands and send us tumbling lower because it's all froth. i don't buy it. i'm not so worried about frothy, low-dollar speculation. that's coming from the one pen in the business who actually favors speculation. i favor dip buying and speculation. what a joker i must be. a joker who made 24% for 14

years and was able to bring home the bacon. at least the well-informed speculation is what i like. you know, i feel that you should be speculating up to 20% of your non-retirement portfolio. that's been my rule since i got in the business. in the old days, it is true, i might have worried about the incessant multibillion-share trading in a cit, fannie mae, citigroup, but now fannie mae and freddie mac, i've been negative, but now i worry about it a whole lot less than i used to. i'm not so sure that any of this is really uninformed speculation. first, it's not like the sec is saying we have to halt trading these stocks. it's not like that. it's not like anyone from the company is saying, look, our business is worthless. we should be delisted. what those caveats, i don't think we can say that buying in these stocks is uninformed speculation. i don't think we can do that, although i hear it all day. in fact, there was a fabulous piece by a guy named john

hempton. he is the chief investment officer of bronte capital. it's all about how fannie and freddie, two stocks that i have said may be worthless, or at least fannie and freddie preferred could be worth a lot. the arguments were well-reasoned. housing bottoming, the portfolios aren't nearly in as much trouble as people think. they might be able to pay the money back to the government and then have something left for the preferred, maybe even the common. to me, it seemed like informed speculation from the guy who told us to sell canseco before canseco fell apart. i think it's the short-sellers who seem uninformed. aig was up ten today. that is more of a sign that the short-sellers don't know how to borrow stock first before they sell it. they can't find any stock to buy it back. it's called a short squeeze. they're shorting a company run

by a man who may have been the top life insurance ceo in the country when he ran metlife. a guy like that isn't say ing that aig will pay back the government. the companies are all swearing by their stocks. that's what freddie did when it reported a profit. it reported a profit. that's a profit. what am i going to do? vonage reported a profit. aig is saying they'll pay back the money. cit says it's in good shape. nobody is shooting them down. they're not fraudulent or these claims can't be backed up. nobody is contradicting them. it's not like you pick up a report that says these guys are lying or they're jokers. why shouldn't be believe them? some of these guys have great track records. why shouldn't people trade these stocks aggressively? i'm not worried about the frothy action in these names. and especially i'm not worried in citigroup. a billion shares a day, i think that's great. i've been recommending this -- this stock since august 6th when it was at $3.80.

got a $1.25 gain. i told people to sell it all the way down. got long at three bucks. i like that. it's the shorts that seem uninformed, not the buyers. paulson was short mortgages all the way is buying it. what more do we need? $5.77 book value. this one could be sold to the highest bidder. i've got to agree with my friend mark, that everyone that comes on tv -- well, i shouldn't say everyone -- most people are bearish or they have one foot out the door. that makes it very hard. it can color things the wrong way and make you worry about things you shouldn't. so as a counterpoint, i want to highlight the stocks that went up today. i think it's a great mix. now, i have to disagree with my friend doug tass who writes with me at thestreet.com that there isn't a wall of worries. i think that the wall is the great wall of china. i think it's bounded by claim more minds, machine guns and

quad 50s. not only that, but after the reversal, what came back? the generals. oil, banks and tech. that's the trinity. the trinity is back after an ugly morning that gave you a great opportunity to buy these groups, proving once again never short a dull market and buying dips is the right thing to do. and get this. we had one more group that's now leading the charge. aerospace. boeing has brought this group back to life, creating a whole new bull market that's good for all suppliers. spirit, honeywell, goodrich, allegheny technology, precision cast parts. if we can get aerospace going as boeing says, if that happens, then we will no longer be led by the trinity. we will be led by the quadrafecta. that's banks, oil, aerospace and tech. are you ready? b.o.a.t. banks, oil, aerospace and tech. holy cow. we know the pullbacks in this

market are shallow. so i think it's wrong to worry about a tidal-wave sell-off capsizing this thing. you only change when things aren't working. don't be scared off by the froth. take your chance to get in the boat of banks, oils, aerospace and tech on any weakness. i think we're going to row our boat gently up the stream. and why not merrily while we're at it? bobby in california. bobby. >> caller: hi, jimmy. how are you, my mate! >> not bad. what's shaking? >> caller: a big british boo-yah to you. i've got a great question for you. i hope you've got a better answer for me. how should be evaluate companies that are really cash-rich like apple, for example, in these upward markets. the markets have been on a tear. >> this is a great question.

listen, here's what i like to do. this is really a great question. we're stuck here because he has $8 in cash. what i like to do is take the $8 in case. take the $8 in cash, $8 a share, off the price of the stock and then see the real multiple. apple, $23 a share in cash, subtract that from the stock and see the real multiple because you can't really value the cash other than cash. that would be apple is at $1.45, say. it doesn't look so expensive. so deduct the cash from the price of the stock and then you get a better look at where the stock really is and what it's worth. i need to go to gary in new york. gary. gary. >> caller: boo-yah, jim. >> boo-yah, gary. >> caller: pcu has had a decent run. i've taken some profits of late. but it's dropped off. is there anything left in the tank or is it time to bail? >> i was looking at the chart of copper today. kind of marveling about the

break-out. 1/3 of the world's copper is used by china. it used to be 1/3 used by the united states. we stopped building houses in this country. if we start building them again, okay, hyperbole, 2,000 houses built in 2005. i think copper is a buy, but i prefer freeport. fcx. that's a better play than pcu. it is time for you to get on the boat. that's right. i think you should be buying banks, oil, aerospace, technology on any weakness. merrily, merrily, merrily we go higher. "mad money" will be right back. coming up, jim goes head-to-head with devon energy ceo larry nichols to see if his stock can give your portfolio an energy boost. and later, buying in bulk. our week-long series comes to a dramatic close as cramer crowns the discount king.

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yesterday michael watford, the ceo of ultra petroleum, said he expects the price of gas to go to $6 per thousand cubic feet. that clip was played all day today. that's more than double where it is right now, especially after the bad inventory numbers this morning. that jives with what the stock has been saying, too. even as the commodity has been flirting with seven-year lows, if he's right and natural gas goes to $6, you want to be in one of the least-hedged players.

a company that hasn't already locked in lower prices for its gas and can take advantage of a big move higher. you know what that means? that means you want to be in devon. that's right, devon. i've been buying it hand over fist for my charitable trust because i like its internationally diversified mix of oil and natural gas properties. but its lack of natural gas hedges, that could make it a better way to profit from the rally that i see coming in the commodity. much better than some of the guys who are totally hedged. right being unhedged is seen as a big liability when it comes to natural gas. michael nguyen is hedged big. devon's management wants to add hedging soon. they're starting out with a lot of exposure to spot prices. only 16% of their natural gas production is hedged. but it's at $6.65 per thousand cubic feet.

remember, it's $2.80, so we're good here. but no hedges at all in 2010. if natural gas is really headed to $6, devon is the way to play it. this is a company with some incredible properties. devon's capitalist venture budget is at half of its 2008 levels. 12% production growth. the latest quarter. that's much better than the growth that the street was expecting. that's much better than every natural gas company, and it raised its production guidance that's vital for a stock to go higher. volumes were up 3% despite reduced drilling activity. more international strength in brazil. they're big in brazil.

devon is getting more out of the properties it currently has for less money. sounds like big gross margins. i wonder how long the company can keep this up, though. appraisal development drilling in the gulf of mexico, an exploration project in brazil. also, horn river basic along with its oil sands project. a lot of stuff going on here. everyone is focused on the next big catalyst. that's the announcement of a partnership or a sale of its property in the gulf of mexico. i think it could bring in 1 to $1.5 billion. $3.60 per thousand cubic feet. in the u.s. it's $2.68. pretty close to where it is. the company needs prices to come up if it's unhedged gas production is going to be profitable. i think devon is a terrific oil and gas company. i wouldn't be buying it for charity if i didn't. but its stock is down 5.4% for the year.

apache is up 16%. hey, aubrey mcclenen, chesapeake is up 47%. maybe devon is a heinz ketchup play. let's bring on larry nichols, ceo of devon energy. welcome back to "mad money." >> good to be here. glad to be here. >> all right. some exciting things at your company. the gulf of mexico, perhaps. we get some news there. obviously you're drilling like mad in hainesville. is that why we're having that great growth, and shouldn't that eventually close the disparity between some of the other guys that have moved up more? >> it will. as you mentioned, we have not hedged. there are a lot of people who rewarded hedging. we have never been a big hedger. >> you guys are the play. >> that was the big drag on us. those hedges roll off for everybody else, that -- that advantage the other has will go away.

>> and then we'll go back to production growth. >> and then we'll go back to honest, real production growth. and we're having that across the board, whether it's the heavy oil in canada, the shale hit a record. we have record production growth in the second quarter. that's incredible. >> yeah. that is amazing. it really is. now, interesting fact. back in july when natural gas was 25% higher, your stock was 20% lower. how does the stock, natural gas, go up from being down 20% while the fuel that it's really levered to goes down by 25%? what's going on somewhere outside of your company that's making people feel that perhaps natural gas is right? >> well, natural gas today is people understand that even though we have a short-term problem with way too much natural gas the rest of this year, markets are going to catch up. because natural gas production in the country is going down.

companies don't have the cash to drill with, drilling is less than half of what it was a year ago. so natural gas production is going to go down. >> but if i'm the white house, if i'm congress i say, this an unreliable fuel. i can't be in a fuel that could cut production that quickly. >> we're like a factory. we stop the factory, the widgets stop coming out the other end. all you have to do is start the factory. we can bring the drilling rigs back as fast as we shut them down. >> why has this been favored by this administration and congress, which is a clean coal. i don't see the -- didn't see the ground swell for natural gas. can that change? >> once you start on cap and trade, you can have a really clean bill if you want it. but once you start giving out allocations and congress gets to determine who gets the allocations, they're going to go

to whoever has the most political power. and you can look at how that bill unfolded in the house and the winners were the fuels that -- that generate the most co2. it's totally unlogical. >> totally. when we talked to jim hackett earlier in the week, he seems to think that something has happened in the last few months, a change in the air at washington. given what you just said about the house not favoring natural gas, why should i think i have to presume that the senate is going to go your way? why? >> one, our industry has done a much better job of getting the message out there. >> lately. >> lately. we have been advertising, we have been working really hard. all of the ceos, devon is one of the largest natural gas producers in north america. we have really been working hard to get that message out, and

it's gotten out. you know, boone pickins and a variety of people have been out there. >> who is your point man in the senate? who is saying, listen this should be the fuel? >> we don't have a point man in the senate. >> how much does it cost to get a point man? but i'm no longer like that because i'm a diplomat. in the old days, i'd say here's the checkbook, what do we have to do? but you can't do that anymore. or i can't. >> the body is much better suited for understanding the issue. and that's the other thing. the senate is not going to ram it through as fast as the house did. the leadership of the house decided what the bill was going to do and crammed it through. >> kind of like health care. >> kind of like health care. we're going to get a much better hearing. so it's a combination of education and a better forum. >> we had the clean energy, which has been hot as a pistol. watford thought that two things could happen. one, the federal government mandates that its own trucks and fleets have to run on natural gas. second, he envisions a world where on interstates, there can be big compressed natural gas gas stations and we could cut

dramatically our amount of imported oil. are you hearing anything like that? >> yeah, that's starting. and the mere fact that that's feasible is really getting the attention of people. >> also, i mean, we've had talked that we have so much that we'll end up exporting the stuff if we don't end up finding a market. >> and that gets people's attention, too. you're discriminating against the cleanest-burning fuel. that makes no sense. >> why are they coal plants being built in this country? >> the coal plants have stopped. >> tell me about it. we had guys on earlier that are putting some up. >> they're trying. but if you want to have to cleanest-burning fuel that you can, you want natural gas. >> i just think that we could -- jobs, energy independence, cleanliness. you guys have all three. devon energy ceo, most growth, best way to play the up side.

after the break, i'll try to make you even more money. coming up, buying in bulk. our week-long series comes to a dramatic close as cramer crowns the ultimate discount king. (announcer) this is nine generations

of the world's most revered luxury sedan. this is a history of over 50,000 crash-tested cars... this is the world record for longevity and endurance.

and one of the most technologically advanced automobiles on the planet. this is the 9th generation e-class. this is mercedes-benz. all week we've been

searching, searching for the discount king. the best of breed retail stock in the discount space. the one that you can own even as the economy recovers and eventually the consumer tradedown unwinds. hasn't happened yet, though. so far, four stocks have entered the discount king thunder dome. couldn't book tina turner for the show. but may i just say for the record, "apocalypto" is one of the greatest movies i've ever seen. i'm not kidding. i want to examine one more store tonight. not because they're necessarily all that awful, but because with you have a diversified portfolio of stocks, you should only own the best of breed in each sector. and that's why i've been pitting these household names against each other in my own version of the claymation death match. i want you to have the best

risk/reward and pick that one over the rest. it's like an nfl draft, so to speak. okay? anyway, a lot of people are doing those, so i mentioned that. so far i talked about tjx, a business model that might not work here. and what we've heard from the full-price stores and the department stores, inventories are down, cash is high, the business is great. tjx doesn't -- it can't thrive as well in an environment where full-priced retailers are going strong. today it hit its 52-week high. i'm going to find something cheaper. on tuesday we had a duke-out between warehouse clubs. costco and bj's. bj's was coming on strong. thanks to stronger same-store sales, a wider selection of merchandise, more growth potential, and a cheaper stock. you cannot buy a stock just because you can craft a free

lunch out of the costco food samples. by the way, that's the only other free lunch besides diversification. yesterday i said i liked the stock of big lots. who does that leave? the last contender, ross stores, rost. this operates 939 ross dress for less stores and 51 discount stores. they have demonstrated really solid execution. same-store sales were up 3%. that is a big deal. most are down 7% to 12%. inventory is down an amazing 9%. so we will not have giveaway sales at ross stores. they won't need those big sales to move unwanted merchandise because they don't have any. and ross was also optimistic about the second half. that's different from tjx. they raised four-year guidance

for very different -- very, very different from the dismal picture that i thought tjx management had on its conference call. i like that ross is also significantly smaller than tjx. they only had 990 stores. txz has 2,609 and they've got them everywhere. that means that ross has more room to expand. management thinks they can get to 1,500 stores. hey, you know what, that's going to produce growth for a long time. hey, and we know ross, ross dress for less, it has a fashion bent. katie couric stops there. or at least she did when she was at nbc. but at the end of the day, ross seems to have the same sourcing problem that tjx does. the company is not in control of its own destiny because its selection of products and its margins depend on the excess inventory of other retailers like these guys. and a recovery where full-price retailers are moving a lot of

inventory means the business model will get squeezed. there's also the fact that as the economy improves, let's just say fewer customers will trade down to ross because there's nothing keeping them other than the low prices. i happen to like my ross store. i think it's nice. but i'm not crazy -- i'd rather go to macy's. i know management at ross stores are more bullish than tjx, but they not be managing expectations that well. either way, i can't make ross the discount king. in spite of its strong execusion because of that sourcing problem that is going to be a problem for txj. all right. now it's time, now it's time to anoint the king. we've ruled out ross. we've ruled out tjx because of their off-price retail model. we've ruled out costco because

it's the most expensive stock in the warehouse club business, which leaves us with bj's and big lot, which is a hybrid of the warehouse model and the off-price/close-out model. we're finally down to the real thunder dome experience. break the deal. face the wheel. two stocks enter, one stock leaves. or maybe it's hilander. i couldn't book sean connery either. may i have the envelope, please. what the heck is that? bj's! it's bj's! bj's is the -- let's hear it for bj's! it should be bj's. they are the discount king. they're better than big lots. we have to look at the down side risk. even though big lots is exposed to the supply issues of tjx or ross stores, it still has them. while big lots is trying to approve its hideous and messy stores and less than ideal

customer service, wink, poke, just a wink, wink, wink. less than ideal customer service. where is it, where is it? what do i always use when i'm winking. okay, good. we don't know that the company will succeed. bj's has none of these problems. plus we're entering a period of recovery where the trade-down play may go out the window. but i think bj's is much less vulnerable to the collapse of the consumer trade down because it's a club like the elks. well, not really. and people pay to be members, making them less likely to -- that's bad luck. making them less likely to just stop shopping there and because it has less of a trade-down stigma attached to it. you don't feel poor when you walk into bj's. i feel like a king. even if the parking lot isn't as full of expensive cars like it is at costco. it's the best stock. out of five, bj's is the least

up. i like that. it's up 7%. costco is up 32%. big lots is up 47%. tjx, it's up 73%. and katie couric's store is up 58%. bj's is also the cheapest. this big boy, costco, sells at 18 times 2010 earnings. they've got a similar growth rate. big lots, ever so slightly higher at 12 times earnings. it trades at a really significant discount. projected rates are higher than bj's. i think the street's earnings forecasts could come down as bullish analysts start to consider that supply problem that i know i'm ahead of. bj's has the fewest stores. only 180. costco has got 557. that's too many. this guy has a lot of room to grow. we love that. excluding gasoline, its sales grew by 2.9% in the last

quarter. and it's forecasted that those numbers will accelerate to 3.5%. that's the best guidance of any of these we have here, save ross. i love situations where you have to regional chain that can go national and fill in everywhere. that's bj's, not costco, which is pretty filled in already. now, bj's was originally spun off by tjx. now i'm crowning it the discount king over all the others. tjx, costco, big lots and ross. investing is all about making choices. evaluating similar companies and picking the best one based on the week's analysis of discounters, and bj's is the best. you've got the king. here's the bottom line. now you know how to compare companies in the same space to arrive at the best stock, which

when it comes to discount retailers, is bj's. i bow to no one except for berkeley and jenson, the house brand of our winner and new knock-off champion. go citrus. sharon in the sunshine state. sharon. >> caller: hey, jim. a big fsu seminole boo-yah. >> go coach bowden boo-yah! >> caller: absolutely. jim, i've are been a chico shopper since they opened, and i've never been in a store that wasn't busy with people buying. in november i had mad money to play with, so i bought 300 shares of chico at $3 a share. >> stop. i want you to go slower, sharon, because the punch line here is that this is a stock that is at 13. tell people where you bought chico. >> caller: i bought it at $3 a share. >> how much money can you make

at the racetrack, the movies, the nfl or your company? that is a fabulous gain. 300 shares, ten points. do the math. go ahead. i'm sorry. that's fabulous. >> caller: that's okay. but what i'm asking is should i sell my 100 shares to get back by original investment or wait a little bit longer? >> sharon, as i like to say for the people who know more than i do, you got horse sense. i want you to split. take the cash out because you were so lucky. i want you to do the one thing that my late mother taught me to do. you go buy that sweater and you let the rest of the house money run. congratulations, sharon, and to all our viewers who made that kind of money. the winner and new champion of my discount bake-off is bj's wholesale club. stay with cramer! before we get to the

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before we get to the "lightning round" we have homework to take care of. monday, dave in california asked us about rockwood holdings, roc. it's advanced materials company that is real hot, hot, hot. with over 50% of its sales in europe, the company has been hurt by weekend markets. who hasn't? europe is coming back. they missed by three cents last quarter. management believes demand has stabilized to current levels. they now have a lower cost structure and a diverse end-market portfolio that position them for when the volume recovers.

here it is. this is what's so exciting. roc's flagship lithium business just received a stimulus check of $28.4 million last week to expand and upgrade production of lithium materials for advanced transportation batteries, our president's favorite. now look, the stock is not unknown. it's run-up. from march 9th to $19.56. so there's been a return of 394%. that means we've missed it. but you know what? there is room to grow from end-market recovery and stimulus support. let's hope for me for a big down day and then we can pull the trigger. now it is time. it is time for the "lightning round" on cramer's "mad money." are you ready? it is time for the "lightning round" on cramer's "mad money." dan in tennessee. >> caller: you ain't nothing but a boo-yah, making money.

cramer. >> holy cow. that may have been the best boo-yah of 2009. oh, my! we've got to bring him up here. you've got to come up, dan. >> caller: you just need longer sideburns. >> maybe so. i got to tell you, i'm in the house. what's up? i have not left the building. >> caller: emc. >> you know, i had a great report of emc. i owned bmw. that stock was up big. the talk of emc and cisco getting together, killer combination.

not takeover, just getting together. i think that's going to power emc even higher. it's not part of my internet tsunami, but that is one red-hot, sizzling tech stock that i wish i owned. how about john in california? john. >> caller: a rocking big boo-yah from the earthquake capital of california. >> where are you from? where exactly? >> caller: hollister, just 20 miles south of silicon valley. >> oh, yeah, you are there, my friend. what's up? >> caller: hey, jim, i wanted to ask about chk because i know you're a booster of natural gas. chk has got more natural gas exposure per share than any other company. >> that's right. it's not necessarily championed by a lot of our viewers. because of its pay package. i think that chesapeake is not as good as devon. devon is only up 6%. chesapeake is up much more. i'd rather see you in devon, dvn. how about mike in pennsylvania. mike. >> caller: this is mike. a big boo-yah from penn state university. >> yes! nittany lions rock. what is on your mind? >> caller: microsoft and yahoo. >> yeah. i'm disappointed by yahoo.

i think there's so much there. everybody uses it. it's the dominant play in yahoo finance. i like carol barts as a person, but she hasn't delivered yet. i'm on the fence. i'm going to jerry in florida. >> caller: cramer! i'm still alive and singing boo-yah! >> i had you after dinner. it's pretty good. i want to get the chunky monkey, but i had you instead. >> caller: i like the pistachio and the cherry garcia, but i'll take the chunky monkey. >> we'll break some bread together. >> caller: there you go. tell me about pfg. >> they are out of the woods. they were bailed out, as was lincoln national, as was hartford. i was not inclined to like them, but the stock market bailed them out. they have raised money and as far as i'm concerned, i don't want to buy it. i know we'll want to sell it. maybe that's more important.

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a bonus off the chart sell block. a stock overinflated by the cash for clunkers program and that stock is bwa. makes turbochargers and torque transfer systems. they make cars run more efficiently and reduce emissions. borg warner's chart really ugly. it shows the classic example of a stock breaking down. dan fitzpatrick, our go-to chartist on cnbc on "the call" and my colleague at "real money" part of the street side i'm chairman of, he today sent this to me and said, jim, this one is a sell. the breakdown for borg warner below its 50-day average. this is the moving average so you follow it along. the red line is the moving average. and this measures the short-term trajectory and this stock has

broken through that 50 day. when that happens, fitz says you have to sell it. in the past this 50 day has been support. every time it's hit that it's bounced. every time. but that's the level where buyers soak up stock because they think it's gotten too cheap. it now has become what's known as resistant. he doesn't think it can get through it. this is where sellers flood the market because they think it's become so expensive. this is a technical analysis but i know you love it so i'm giving it to you. fitzpatrick thinks the borg

warner breakdown is about the end of the government's auto infused bubble caused for the clash for clunkers program. it's over and now that the stock's benefited, all the stocks that have benefitted from it are coming down. that's the technical picture. what about the fundamental? i think the stock is clearly overinflated by cash for clunkers. it had to break down. it moved up too far too fast. that doesn't mean the business was overinflated or its stocks will suffer. it's just the stock is suffering not the company. borg warner is a strong company. it has a great balance sheet. though it missed the numbers in the most recent quarter, the street was looking for a gain, the miss was rational. lower sales of diesel cars were both temporary problems. the european clunkers program encouraged people to switch from

diesel to gasoline cars. i think the auto industry is coming back. i like the ford motor preferred. i also think the whole group has gotten ahead of itself because of the excitement for the program. and borg warner at 30 is still pricing in perfection. unlike most i don't think car sales are going to fall off the cliff but i don't think they'll be robust enough to keep borg warner at this level. i'm with fitzpatrick on this chart. i think the stock goes lower. but eventually i think it will be worth buying again based on the fundamentals because the auto industry is on the mend and next year will be a better year. to stay on top of my game after 50, i switched to a complete multivitamin with more. only one a day men's 50+ advantage... has gingko for memory and concentration. plus support for heart health. that's a great call. one a day men's.

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sell borg warner, sell devon and the king is b.j.'s. there's always a bull market somewhere. i'm jim cramer and i will see

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