[ engine powers down ] gentlemen, you booked your hotels on orbitz. well, the price went down, so you're all getting a check thanks. for the difference. except for you -- you didn't book with orbitz, so you're not getting a check. well, i think we've all learned a valuable lesson today. good day, gentlemen. thanks a lot. thank you. introducing hotel price assurance, where if another orbitz customer books the same hotel for less, we send you a check for the difference, automatically. if saving money happened as automatically as everything else? at bank of america, it practically does. use the bankamericard power rewards visa credit card and earn rewards like cash back with every purchase. cash you can put into savings. or even use to help pay down your credit card balance. it's one of the many ways we make saving money in tough times a whole lot easier.

i'm jim cramer, and welcome to my world.

>> "mad money." you can't afford to miss it. take that, you son of a gun! ooh. hey, i'm cramer. welcome to "mad money"! welcome back to cramerica! other people want to make friends. i'm just trying to take apart some bears. because my job is not just to entertain you but to educate you. so call me at 1-800-743-cnbc. oh, boy. everyone is so worried. they're so nervous about whether the market can keep going skyward. halloween 2. everyone -- final decision. everyone i know has a thesis about what will tank us. oh, boy, it's the cruel month of september. >> sell sell sell! >> commercial real estate collapse. >> sell sell sell! >> the debt-laden consumer. >> sell sell sell! >> the debt-laden government. no back to school season. at least we're not back to school. hold it, but it's probably time to start saying what a horrible holiday season awaits us. stocks are no longer cheap. >> the house of pain. >> huge budget deficit. oh, i could go on and on.

more horrible and longer than what they've got going at macy's on thanksgiving. i on the other hand look at the world differently. i want know what can stop this freight train. >> all aboard! >> i want to know whether the market ever deserved to be as low as it was. i want to know how high it can go. especially in gravity-defying and gratifying days like today. where the dow puts on 56 new points and is poised to exceed 9,500. which is why we are wasting no time on tonight's edition of "mad money" by going right off the charts to get a graphic representation of where i think we can go. thanks to my buddy, pal friend dan fitzpatrick, my chartist colleague at thestreet.com. fitzpatrick -- look what he looks at. he thinks the s&p 500 is going to 12,000 -- 1200.

what am i talking about? which is a big move off of 1025.39, where we are now. you know what this is? you guys know what this is? take a look. you know what this is called? this is an inverse head and shoulders pattern. that's authentic jargon signifying something beautiful awaiting us. fitz tells us that this so-called neckline connects two peaks on either side of the head. this comes to 950. the difference between the low and the neckline is 285 points and that means we can run another 284 points from 950 to the s&p 500 to 1,234. maybe you don't like the head and shoulders pictures. maybe you think it's some kind of bogus hocus-pocus. no more thorough than this head and shoulders demo.

here's an inverse head and -- you get the point. right? how about? based on the furthest distance from its 200-day moving average, another technical tip, fitz thinks the s&p could go up to 1,272. that's a 24% move. at a minimum he believes chartists will start seeing 1200 as a level they'll call a top on the s&p. i'll take it. better than a sharp stick in the eye covered with shampoo. fitzpatrick thinks the charts are saying the sky's the limit. the smart money may believe we've gone too far too fast. hey, call me dumb money. but if the market doesn't listen to the smart money, they'll ultimately capitulate and hold their noses while buying. first, point blank, i agree with my chartist friend fitzpatrick. i started with him in oft charts because i didn't hear anybody today talk at all positive about this market and it's blowing my mind.

i mean, we're at 9,500 for heaven's sake. so you know what? i'm going to give you some reason why's this chart is worth following. i'm going to give you some reasons why the head and shoulders works. not this head and shoulders. although i've got to tell you i like this procter & gamble on a breakout of 55. that's why i own it for my charitable trust. i'll tell you these charts are right and guys that gin up these stories every single day -- what is it, central casting? here we go. market appears vulnerable. i mean, d.a. probes racket. that's in the c-section of the "wall street journal." now, i think that's dead wrong. why? i'll give you some reasons. first is takeovers. in what is usually the sleepiest week of the year, the week before and of labor day -- i'm going to graphically depict every investment banker. except i'm not at the hamptons right now. but i'll simulate that with sand. okay? all last week they're like napping.

suddenly they say no, no, baker hughes is going to buy bj services. wait a second, we're going to do another one. disney's going to buy marvel. diversify away from tv advertising. dai nippon, sumitomo. who the heck are they? they're acquiring sepracorp. an american drug company that may be very cheap because of worries about obama's health care plan. and biggest of all, mac and cheese buying chocolate. kraft's $16 billion run at cadbury yesterday to give the whole food industry a jolt. you dent get these kinds of deals unless stocks are cheaper, not more expensive than we think. i always say nothing like real companies buying other real companies to demonstrate the worth of stock. how about reason number two? money in. we have been deluged with money flooding into this market from the sidelines. as people are beginning to put the lehman brothers-led depression from one year ago behind us. that means earnings should look far better year over year. and everyone on wall street likes these easy comparisons. it will energize the public to put even more in.

you don't want to miss it. you know what i say? the public's taking a page out of katey perry's songbook by shutting its mouth and putting its money where its mouth is, which is what you get when you wake up on wall street. third the leadership is broadening. i have told you endlessly of the market's need for generals. you've got to have generals before you -- clean up this mess for heaven's -- i'll get to it in a second. you've got to have generals. we started this rally three months ago with the rally in oil, tech, and banks. industrials, because asia and europe -- china on a terrific growth path. the transports led by the rails and the freight companies. they're just confirmation of worldwide economic activity. in such diverse industries as package, which means more goods are being shipped. and aerospace, led by boeing,

which is finally getting ready to ship the dreamliner in our lifetime. this kind of broad-based leadership is a huge positive. maybe more important than the old head and shoulders inverse, of course. fourth, the firings have stopped. we haven't started hiring. but these last few employment numbers, including friday's, they show that most of the people that are going to be fired already have been fired. the firing -- hey, i've got to tell you, i think that the beheadings may have stopped. that's a prelude to the beginning of a new wave of hiring and economic growth. maybe the jobless recovery won't be so -- as jobless as we think. >> the house of pleasure. >> one by one, the doubters of the thesis get converted. and recognize that the june 30th call was right and i nailed the sucker. existing homes, new homes, pending sales, they all bottomed june 30th. that's huge. as it means that the oreo, no, not the cooking because that's like hydroxy. other industries owned by banks are going to stabilize and the losses are going to be contained.

the stocks in commercial real estate -- boston properties, bxp, did you see that today they're all on fire signaling we have less to worry about than we think from the group that despite all the chatter about the impending commercial real estate collapse show just the opposite. finally, consumer credit card losses are on the wane. okay? at the same time as retail sales, places as diverse that i don't shop at, tiffany's, coach, williams sonoma, as well as kohl's where they've got the fat pants, aeropostale, jones apparel, and gap show that back to school was actually a smashing success. and the only reason you heard otherwise was that too many reporters and editors had taken the position that back to school season would be terrible. and no amount of evidence was going to change their minds. why let the facts get in the way of a negative story? here's the bottom line. six reason why's the chart we saw, the one by dan fitzpatrick, as evidence the s&p is heading to 1200 could be right. six reasons based on fundamentals why i think the

market is a lot less vulnerable than the press thinks. six reasons that we can go higher. man, is it good to be back. michael in new york! michael! >> caller: hey, jim, i don't want to just ba-ba-ba-boo-yah. i want to ch-ch-ch-cheer ya. i love your show. >> oh, man, thank you! >> caller: i'm calling about nordic american tanker. i've been buying it on its way down, and i was wondering if it presented a good buying opportunity here so i could average down my cost price and whether in the winter season with home heating oil and all whether i might see some appreciation in the stock. >> well, i spoke with management over the weekend because you know, everyone else is having a lot of g & ts. i really just belly up to the nordic american tank bar. and i've got to tell you something, i think it's all because of the oil -- oil day rates are down yet the stock holds in like a champ.

i think as rates go down other guys will go belly up. in the meantime don't forget it's the best performing stock over the long term in the oil tanker business. i'm not backing away one bit. i think he's still a buy. i want to go to chris in ohio. chris! >> caller: a big buckeye state boo-yah to ya, jim. >> oh, man, how much did we like going out to ohio state? how fabulous. how can i help? >> caller: i have a quick question about wind stream corporation and their dividends. >> we had the guy on. the dividend seems pretty good, no? >> caller: yeah. i was also wondering what is the best way to analyze the company's dividend to make sure it's sustainable? >> you've got to look at the actual cash flow. if you look at the actual earnings, what the earnings per share number is for wind stream you think the dividend is going to be gone in a heartbeat but if you look at the cash flow after all these different charges that they have to take advantage you realize they've got plenty of coverage and that windstream is okay. is it great? i prefer verizon, which bumped its dividend.

but i've got to tell you something, i think all these high-yielding stocks that have to be covered by cash flow are darn good to own here. i agree with the charts, especially because i think the s&p 500 could be headed to 1,200. and i've got to tell you something, i think the ladies and gentlemen represented on this table, i think they're in trouble. i think you should stay with cramer. "mad money" will be right back! >> announcer: coming up, kids are back to school. but have investors come back to the market? cramer's getting the answers as he goes one on one with david fisher, the ceo of options express. plus, call him the czar of clean energy. cramer's finding out if nat gas is back despite naysayers. jim goes straight to the source with xto energy's bob simpson. and later in the "lightning round," the market's top mind goes high octane to put your stocks to the test. all coming up on "mad money."

the individual investor, you, you're back. money's pouring into this market. this time it's not just going into stocks. over and over again, you might have read about it this weekend, we keep hearing regular investors are using stock options. that's right, options. puts and calls. that they've fallen head over heels in mad love with them. and for good reason. now, in the past i've avoided talking about options on the show because i was worried that they were too complicated, too difficult and maybe people wouldn't use them wisely because you have to. but options are back in a big way. cumulative options volumes for the country's top seven exchanges hit 2.4 billion contracts for the first eight months of the year.

that's a record, up 2% from the same period in 2008. remember, almost nothing's up from last year. it's not just professionals. according to a survey done by schwab, 47% of its active investors trade options regularly, up from 40% last summer. that's a monumental move. if you're going to trade options, you'd better know what you're doing and it's my job to try to teach you. if you use options the right way, my way, then you've got a method of investing that lets you take on less risk and still try to get some more reward. it's a conservative method, one that allows you to make a little bit of money go a very long way. now, you've been schooled to think that options are incredibly risky, radioactive instruments for the most speculative investors. and they're complicated. too complicated for many of you. neither of these things is absolutely true as long as you follow my method, a technique called stock replacement that i explain in my book, that's right, "jim cramer's getting back to even" available in bookstores october 13th. this is one of my strategies i used in my hedge fund to give them a 24 persian compound annual return after fees.

i want you to trade options. my method is to use even money call options as stock replacement allowing you to control more stock than you could with cash or margin. retail investors are going gaga over strategies some good some bad. i want to make sure you use them the right way otherwise you're playing fire. you know something about my stock replacement methods. let's talk about the larger trend in options and the opportunities it presents. the best place to start is with options express, oxps. the online broker that's been a pioneer in helping retail investors lake you trade options. at options express it's up 56% since june, the highest percentage level since last september remember that was lehman brothers everything went down after that. this may be the best pure play on increased trading in options especially if ordinary retail environmentalists are jumping on the options bandwagon. we've got to find out how big and how sustainable this trend-s

request it last, is this the way of the future and if so is it the big play? beyond that are people trading options responsibly the way outline in my book or as lottery tickets, rip-ups we used to call them in the business in other words, are all you options investors being cautious and careful? i don't know the answers to these questions but i know someone who might. david fisher, the ceo of options express. mr. fisher, welcome to "mad money." >> thank you for having me on. >> great to have you. even if you're a chicago bears. i can deal with that because the season hasn't begun. your july numbers are, i think is indicative in an article i saw this weekend, that options have really come into favor. can you tell me what has triggered this resurgence or even revolution in the way individuals are trading? >> it's a great product. you've got to start with the product itself. this is a product that eight to ten years ago barely existed for retail investors. trade on the floors of exchanges, old boys club, a great place for retail investors

but a lot has changed since then. it's electronic. there's tons of liquidity. retails investors did see exactly what they're trading. tight bid-ask spread. when retail investors see something they want to be a part of it. >> retail investors used to always be being picked off by brokers. that's no longer the case. >> that's no longer the case. most options exchanges retail orders come first. they jump to the top of the queue. >> boy-s that ever the opposite of the way it used to be. that's great. >> i know. so when you compile that with the great education they can get at firms like options express, the tools that professionals had ten years ago that they have right at their fingertips today. >> david, are people using them wisely or are we seeing this weekend we get kraft buying cadbury, are we seeing a massive number of out of the money call buying in food stocks just hoping that that will be the next one?

that's part of it, right? >> well, let me tell you, i have people using it exactly the way they're supposed to. i'll give a couple stats that will hone in on that. our assets are at $6 billion. customer assets at $6 billion. all-time high. as customers were using these products inappropriately after what the market's been through last year, do you any we'd have a high -- >> that's a great empirical stat. >> our average age of our customer is 50 years of age. these are people, not young people gambling their money. these are people investing wisely using these products to round out their portfolio. >> so would they be using in the money calls as a replacement for stock a way to not put as much money down as a safer way they can put their money in a cd or something like that? >> there's many strategies you can use based on what you're trying to achieve. that's one great example let me give you another great example. let's say you own a stock you think the market's peaked up you don't want to sell it necessarily because it generates an income. you sell the call against that stock, put some income in your pocket, and you can profit even if the stock doesn't move

upward. >> how much of your business do you see being options? or is that the beginning of a larger platform and you might see your business being more than just -- more of it is right now as a percentage but do you see your company being a much bigger company for retail investors that happens to have an options division? >> you can trade anything at options express. options stock, futures, etfs. options about 60% of our business, futures 20% of our business maybe a story for another day. and then stocks are about the other 20. we see the options business as a great industry. continuing to grow. and it's going to be a large part of our future. we have 330 customers. there's about 3 million customers trading today. that's still a small percentage of all the online investors. 30 million, 40 million on-line investors. >> a lot of your investors -- are they full-timers? do they watch cnbc -- >> no. almost none of them are full-time. but yes, they watch cnbc. they are your viewers. our customers are your viewers. they have jobs. they're doing other things. but they like to stay abreast of

the market. they like to be engaged. they don't want to trust some guy at their country club with their money. they want to take it in their own hands, take control and they're using these products -- >> that's exactly what we're doing at "mad money." >> absolutely. >> one of the things that fascinates me about all of options trading is when you hit big do people take it off the table, which is something we -- or do they let it run? because this is something we feel very strongly, when you have a lot of quick hits in options, do they let it ride or do they bring the register? >> you know, we see both. we definitely see people take money off the table, and it's easy to move money in and out of online brokers these days. ech wire transfers. checks from your options express account. but people are investing for the future. and they like to see their accounts grow. this isn't just play money for them. this is really their future. and so they try to keep growing those portfolios. >> i'm thrilled that people are taking charge. i'm thrilled that people are learning that they're sophisticated enough.

i was a very big options trader on the street. i'm post proud of the fact that you're now offering a retail product that's superior to institutional and retail's not going to get picked off. and i'm going to talk more about options on the show. now that i feel confident that retail gets a fair shake. david fisher, ceo of options express you built quite a good business. thank you for coming on the show. >> i appreciate it. >> stay tuned for "mad money." >> coming up, call him the czar of clean energy. cramer's finding out if nat gas is back despite naysayers. jim goes straight to the source with xto energy's bob simpson. plus, the time has come for cramer to guide you through the market's ups and downs. stock after stock. on the "lightning round." and later -- cramer takes all your questions and gives you the quick-fire responses you so crave. cramericans, we want to hear from you. so send jim an e-mail to madmoney@cnbc.com. and stay tuned for some rewarding replies on "mad mail." all coming up on "mad money."

if you're still one of the guys who's going over and over... going urgently... waking up to go... it's time to do what lots of guys everywhere have already done-- go see your doctor, because those could be urinary symptoms due to bph,

an enlarged prostate. and for many men, prescription flomax reduces their urinary symptoms due to bph in one week. one week. only your doctor can tell if you have bph, not a more serious condition like prostate cancer. avoid driving or hazardous tasks for 12 hours after your first dose or increase in dose, as a sudden drop in blood pressure may occur, rarely resulting in fainting. if considering cataract surgery, tell your eye surgeon you've taken flomax. common side effects are runny nose, dizziness and decrease in semen. millions of men have been prescribed flomax. maybe it's time to see your doctor and ask if flomax is right for you. and call 877-4-flomax to see if you qualify for up to $40 off new or refill prescriptions. for many men, flomax can make a difference in one week.

why is dick butkus here? i hired him to speak. a lot of fortune 500 companies use him. but-- i'm your only employee. we're gonna start using fedex to ship globally-- that means billions of potential customers. we're gonna be huge. good morning! you know business is a lot like football... i just don't understand... i'm sorry dick butkus. (announcer) we understand. you want to grow internationally. fedex express

we just learned the president's green jobs czar, van jones, is stepping down for some political indiscretions, to be a statesman about it. which is perfect. i've got a great nominee for the position. me. i don't have the west wing cred of van jones, although i did at one time contribute to greenpeace. i marched against the vietnam war back in the day. but more importantly i've got a plan, which is to use natural gas as a cleaner bridge fuel, a job creator, antidote to coal, an energy independence generator. that means potentially military savings too. so you know i can fill the position be able to do this show and my many other jobs too although it may cut into my very active social life. even if i don't get mr. green jeans, i'm using this week to focus your attention on natural gas because it's clearly the way to go if you actually care about climate change, unlike wind and solar those are going to take decades. we can expand the use of natural

gas especially as a fuel and it would make a huge difference right now. we're sitting on tons, tons, tons, and we're the saudi arabia of natural gas. forget about coal. we always hear we're that too but so what? i don't think we are. i'd rather get my fuel from here than from the real saudi arabia. unlike clean coal, carbon capture, i call it the santa claus or tooth fairy of clean energy. even companies that build coal plants admit it is impossible, may not be for decades. we've got the technology to reduce carbon emissions using natural gas right now. clean coal, oxymoron. people advocate it the way i see it are either bought and paid for by coal or clueless. i'm not paid for by anybody. i've got clean hands. certainly, say, cleaner than coal. why haven't we embraced natural gas? it's got enemies. so far they've been able to operate with a free hand behind the scenes, prevent any real embrace of natural gas. tonight that's going to change. this week it's going to change. we are taking no prisoners and we are making sure you know your enemies when it comes to natural

gas from the capitalist profiteers who ardently defend their rights to give you black lung and pollute the skies to single issue jokers who believe in king coal, not to be confused with the jazz stylings of the great musician and stock guru nat "king" cole. so who are public enemies? first of all, unfortunately the natural gas industry itself has been its worst enemy. disorganized. only now just forming its own lobby group. allowing t. boone pickens to become its spokesman. i like the pickens plan, advocates using natural gas with increased wind and solar. it's great. i like pickens too. guy's polarizing, though. right-wing political figure courtesy of the swift boat attack against presidential candidate and massachusetts senator john kerry. with a democratic congress, democratic president even sarah palin may be a better spokesperson than pickens. main enemy, the worst of the worst is the coal industry. they're all welcome on my show but they've got a huge lobby spending nearly four times as much on political contributions than natural gas. coal's got more congressional mind share than any other industry, maybe more than farming. utility industry is on coal's

side, 59% of its power from coal, just 13 from natural gas. the railroads are on coal's side, which are up today like coal because they make so much money moving around. house of representatives pass the cap and trade bill that heavily favors coal. the coal barons claim they can use carbon capture technologies to make their coal clean. it's a chimera. it won't be there for decades. i don't think it will ever get there sometimes. switching from coal to natural gas on the other hand, will cut co-2 emissions by 50. percent. enemies of natural gas will not collapse under their internal contradictions so we've got to push them along. fortunately the natural gas industry is starting to get to together $80 million lobbying effort. more support in the senate where the latest energy bill's about to be debated. i want to note prospects for natural gas. what they are really? given these enemies that are so powerful? i want to talk to an expert bob simpson he's the chairman and founder of cramer fave natural gas company xto energy which is involved in the latest efforts to push for natural gas future. and it gave you more than an 1800% return in the last ten years.

let's see what he thinks about xto's and natural gas's prospect. mr. simpson, welcome back to "mad money." >> thanks, jim. >> was i too forceful in make the case for natural gas? >> no, natural gas is the answer. i agree with you. and here it looks like you're under a little stress today. >> i'm under a little stress every day. >> little squeeze balls for xto here. >> thank you. i need them when i think about what king coal has done and how they managed to get the natural resource defense council which i used to give money to, into believing they're clean. i don't get that. first of all, how are you able to make money in an environment where natural gas went out today at $2.87? >> jim, most of our natural gas is pretty slow for the year. we are 75% hedged, and our product, around $11. >> $11? >> yes. >> is that one of the reasons why you're able to blow await earnings estimates even though you though everyone thought you would disappoint? >> that and the earnings

growth -- the volume growth is a little more robust than we saw coming -- the wells are outperforming somewhat. as you know, we're also on the leading shell players that you mentioned earlier. >> are you able to pick up just -- there are some people who weren't so smart about hedging. are you able to pick up some properties within the next 18 months that will surprise people? >> we will. our business is -- the strategy's the same since '87. >> since it was crossed. >> the interesting thing is the -- we do the same thing over and over again. and offs the second quarter we're the largest natural gas producer in the united states. >> pretty amazing. i remember when you started out i was in on the goldman deal to bring you public. >> i remember. >> let me ask you something. if i were dow chemical, giant user, owens-illinois, why can't i call you and say listen, it's $2.87? i'll take your whole output for the next three years at 3 bucks. what would you say to that? >> no, thanks. first of all, we've already sold about 40% next year at almost nine bucks.

so we're just not interested. i also think gas recovers to $7 or $8 in the next 12 months. natural gas supply is starting to shrink on shorts down about 3% in the last six months. and that will accelerate. so we're going through a correction here that's going to get better. >> how did coal become clean and natural gas dirty? >> you know, that's more of a political question than it is a business question. i built my career in business. my speculation about politics is we're out-lobbied at the moment. and we are outspent. >> it really is that simple, isn't it? >> it is. it's america but aubrey mcclennan said the other day, chesapeake, this is pretty much a no-brainer but he thought somehow that would matter in washington. >> sometimes it doesn't naturally prevail and we have to sell our case. as you pointed out earlier we formed the american natural gas association which has raised $80 million. and it's an ongoing effort. we're going to give a penny in mcfe about 40% of the natural

gas production in america. that results in about $80 million a year. that's going to be ongoing. so we're going to catch up and we're going to educate. but we have a superior product. so we've got an advantage. long-term. and you know, we're a little behind. we're going to catch up. >> everybody claims to me the opponents of natural gas say you don't have the infrastructure and it will be more difficult to create than people think. >> what would be the infrastructure of natural gas to be able to power cars and trucks versus, say, what we can do with coal? >> i think in time the majors are going to enter the arena of natural gas america. you know, they left america somewhat and they're coming back. they're coming back in force. they have the ability to create that. if you look at numbers we import about 13 million barrels a day of oil. we produce on an equivalent basis about 10 million barrels a day of natural gas. now, if we produced another 20%, that's 2 million barrels to go toward the 13. that could happen. it should have. i think it will happen.

i think the majors will put in the infrastructure. so you don't have to displace it all. just make a dent. >> well, why can't you sell the story also as energy independence and perhaps the greatest jobs creation program this country could ever have? >> i think part of it is we should and we will. part of it is it's new. >> right. because we just discovered it. >> i built a home in 1977 in texas, and i couldn't get gas for it. and this was texas because it was going to be a shortage. so our reputation is on and off, on and off. but there's been a reinvention for the industry. there really is an abundance of natural gas in america. it really is a place we can be independent. it's going to come at a price. it isn't for free. but it's here. and it's a change and it just got here. >> you're so big. will we come to the point if we do not get some sort of break in washington where you will have to export, export your product to other countries because there's not that kind of market in the united states? >> it could happen. i don't think so because of what i said earlier.

if we just take 10% of the product market away from imported oil, we've got lots of room for growth. and remember growth is net and in our business you do fight depletion. so that's quite an achievement, it's quite a step out and it's quite a reinvention of the industry. i think we'll figure out and get smarter than that first. >> how did it go down to 287? is that right? sometimes -- remember oil was at 140. i couldn't find a person who'd come on my show and tell me that was the right price. is $2.87 too low for natural gas? >> certainly on a sustained basis. because you can't replace it. the service companies would go bust too. what is, it's a moment. it will pass. you know, it's storage filling up. we say storage is something you fill. now, next year, brand new fresh start, here we go, production decline and you've got to relook at i think the price at least doubles from here sooner than later. but for the most there's too

much of it. and it's a commodity. >> my coal friends say you know what, one of the reasons why we don't like natural gas, coal's pretty consistent in its price, natural gas jumps from $3 to $13, now you're saying it might double again. is it too unreliably priced versus other fuels? >> not in the new world. in the old world we were facing growing prospects of a shortage. so we had winters when we could have had a shortage. that's going to change. the supply's here now. but that's new. what you'll find is that the price will be more stable long-term, more reliable. the supply's there. but it's not going to be three bucks. it's going to be closer to 7 or 8. >> one of the things that's hurt your case is a lot of the natural gas has been found in states, northern states even. but the politicians seem to be not recognizing the jobs that could be created by this. do you have to do missionary work with politicians in states like new york and pennsylvania to explain to them what this means for jobs in their states? >> yeah. because it just got here. it's brand new.

>> it just got here. >> you know, on a spreadsheet we all go lightning fast. in the real world slower than that. but it is here. >> i always think of you as the ceo. you're the chairman. you're staying active. you want to stay with the business. >> i'm still having fun. so as long as i am i'm going to keep doing it. >> chairman and founder of xto. you've made people fortunes. thank you so much for coming on "mad money." appreciate it. >> coming up -- feel the thunder approaching. as jim takes a full-on blitz from cramericans everywhere. can he handle the pressure on a fast-fire "lightning round"? and later, cramer takes all your questions and gives you the quick-fire responses you so crave. cramericans, we want to hear from you. so send jim an e-mail to madmoney@cnbc.com. and stay tuned for some rewarding replies on "mad mail." all coming up on "mad money."

♪ go, go, go no, it's not my birthday, but before we get to the lightning round i've got to show you something. and i have to tell you, this ranks so high that my freshman daughter actually used the fabled omg when i showed her who stopped by the set earlier. you'll never believe me. so take a look. >> now, you know i'm big-time, all right? 50 cent here hanging out with jim cramer right here, "mad money." it's going down. >> boo-yah? >> boo-yah! >> as i used to say on my old radio show, when i was 50 billion cent, you just saw 50 billion cent hanging out with 50

cent. of course he's worth like ten times that. he was here at cnbc today to talk about his new book "the 50th law" that he co-authored with robert green. and i've got to tell you something, the guy is one of my idols and he should be one of yours too. all right. now let's get back to making some money! it's time for the "lightning round" on cramer's "mad money." rapid-fire calls you say the name of the stock i say whether to buy buy buy or sell sell sell. just to be clear i don't know the callers or stock questions ahead of time. my staff prepares the graphics on the fly. we play until we 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 dristan in puerto rico? >> caller: a grande boo-yah! >> turns out to be a familial boo-yah. what's on your mind? >> caller: i want to thank you and your staff on behalf of my family and all your viewers for your great inspiration and

insights. >> thank you. i do have a fabulous staff. my staff makes me look good every single day. let's make money together. what have you got there? >> caller: potash, p.o.t. >> it's come under pressure. the whole fertilizer cohort going down. i remain convinced that p.o.t. remains a buy, that after we get through the chinese buying season we're going to see potash go back up. it's my favorite fertilizer play. and i still want to sell sell sell mon, which is monsanto. bill in delaware. bill. >> caller: boo-yah, mr. cramer. thanks for teaching people how to fish instead of giving them just a free meal. >> yes. by the way, i caught a 28-inch striper. and it was darn good. i made it with a little bit of lemon and a little bit of butter, not too much. i should have used olive oil. but i didn't feel like i had a cholesterol problem. what's on your mind? >> caller: back around may or june i thought you said you

liked sprint anytime it went underneath the $5. and i'd like to know how you feel about it now that it's below $4. >> that was a little bit earlier, and it was the best-performing stock in the s&p 500 in the first quarter. now amd. hey, what a monster. hold on to it. here's the problem with sprint. we suddenly have a justice department, which is a shockeroony. we have an antitrust department in the justice department. that's terrible. they are probably going to block any acquisition of sprint. so i'm going into the don't buy move until it goes under 3 bucks because the quarter went so high. hey, i like this combination. i'm going to lincoln in massachusetts. lincoln. >> caller: ba-ba-ba-boo-yah, jim! from springfield, mass. my stock is altria group. and i'm wondering if you think it's got the potential to make mad money. >> i own altria, symbol mo, for my charitable trust, actionalertsplus.com. i want to take that dividend and open up an anti-smoking clinic.

i can do that right at the middle school if i want to. i've got first amendment rights. no, come on, man! i'm just getting fired up! i think the dividend can go higher. this stock has 20 all over it. that's right. an $18 stock with 20 all over it. i say -- >> buy buy buy! >> i'm going to tim in west virginia. tim. >> caller: yes. jim. >> tim. >> caller: hey! big west virginia boo-yah to you! >> hey, mountaineer boo-yah back at you. what's on your mind? >> caller: hey, pcx, patriot coal corporation. >> coal's powerful. i will give coal that. they are powerful. i saw the coal stocks ramping. if you want a coal stock i'm going to send you to btu, also known as peabody. one more. oh, boy. let's get katey perry on the phone because we are waking up in vegas. i want to go to jack in nevada. jack. >> caller: boo-yah, jim, from union springs, nevada. >> oh, man, does it get better than that?

ixnay. what have you got? >> caller: i sold some citibank preferred stock at 2.38, converted it to citibank, sold it at 4.54. i was wondering where you think it's going to go or some i get back into it. >> a lot of people including the philadelphia eagles at training camp said 3.80, 3.930, then it ran to -- september 10th is the day the federal government can start selling citi. are they going to play market and let the gains rise? who the hell knows? it's the federal government. they're going to tell little old me? i have to tell you i think citi has a $5.60 book value. $4.60. the average stock is selling about 95% of book, which gives you 60% at least you can make in citigroup. yes, i want to buy citi but i'm not giving it a buy buy buy. that is reserved for if it ever goes down to $4.25 again. and that, ladies and gentlemen, is the end of the first

post-labor day "lightning round." [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. 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. anything before takeoff mr. kurtis?

prime rib, medium rare. i'm bill kurtis, and i've got plenty of room for the internet. and the nation's fastest 3g network. (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.

i'm more active, i eat right, and i switched to new one a day women's active metabolism. a complete women's multivitamin plus more for metabolism support. and that's a change i feel good about. new from one a day. coldwell. yes, banker? now all our listings are on any smartphone. indeed. now people can search home listings anytime, anywhere. coldwell? whoa! looks like you can search listings and connect with our great agents on this thing. isn't technology amazing? yeah, but it makes me dizzy. announcer: coldwell banker. we never stop moving. explore real estate videos and more all at youtube.com/coldwellbanker.

how about some "mad mail"? it's been a little while. this is from steve. hello, mr. cramer. recently on your show, someone asked you how to evaluate companies that have lots of cash on your balance sheet. you said to that i can that amount per share and subtract it from the share price. i was wondering if you should do the inverse for companies that have a lot of debt. this is a great and very intuitive question. let me first go back over my reasoning. i was talking about apple computer. it looks like apple is very expensive, but it's not fair when so much of the price of the stock happens to be cash, in

that case, almost $25. now, when it comes to debt, in some companies that are overindebted and cannot pay, i like your idea, but i wouldn't be so simple as to put nit a formula like that. i would just say listen, too much debt, can't pay the bills, avoid the stock. it's not as short cut as yours, but i like it. here's one from fred. jim, what do you think about television over the internet on your mobile device? comcast, cmsa and time warner twx ran a successful test that allows subscribers to watch certain television over the internet. is this the wave of the future for advertising? or is this idea just a few clowns short of the circus? nothing at comcast and time warner can be run by clowns. they're both well-run companies. i get the sympathy, i get the joke, but here's what you need to know. these can't move the needle. what can move the needle are new

fcc rules to allow these companies to buy more companies and not be so circumscribed by the amount of ownership they have. that makes time warner and comcast more attractive. that's what controls the growth of the stock. dear jim. should investors be worried about the national debt we have accumulated here in the u.s.? if you can please explain how this will affect investors in the near and long term. my partner talks endless ly about how bad this is going to be. our taxes are going to go way up. eventually it means this market will come down. it is what i call the out years. not to worry about it yet. it weighs on me every day. it should weigh on you, too. and if there isn't any discipline in congress, we're talking about a new bear market in 18 months if we don't get this stuff under control. "mad money" after the break. >> do you have questions? >> investors don't know what to do. i don't know what to do. >> good, i do. jim's got the answers.

( whooshing ) announcer: you could buy 300 bottles of water. or just one brita filter. ( drop plinks ) brita-- better for the environment and your wallet. (announcer) we understand.

you need to save money.

that's it. i'm done with that nonsense called vacation and i hope you are, too. i promise there's always a bull market somewhere. i'm jim cramer. it's so good to be back. aisle a see you tomorrow.

man: when we're inood. woman: it's our choice. announcer: today, guys with erectile dysfunction can be ready with another dosing option from cialis. cialis for daily use is a clinically proven low-dose tablet you take every day, so you can be ready anytime the moment is right. so relax and take your time. man: 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. man: if you have any sudden decrease or loss in hearing or vision stop taking cialis and call your doctor right away. announcer: today you have options, 36-hour cialis or cialis for daily use. ask your doctor about cialis today