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. and i -- >> "mad money." you can't afford to miss it. hey, i'm cramer! welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you some money. because my job is not just to entertain you but to educate you. so call me at 1-800-743-cnbc. the gloom and doomers are in trouble. and not just because the dow

jones average soared 108 points today. they are in trouble because i am breaking out of an avalanche that represents the building blocks of america. and the building blocks of america are in motion. and look who i am emerging with. my two most important girlfriends. poly and ethyl and a can of caustic soda. mother's milk for these two. polys. polyvinyl chloride rs, polystyrene, polypropylene, polyurethane. nylon, silicone, polyethylene, the most popular plastic in the world. ethyl. ethylene, ethylene glycol. these are at the heart of the chemical industry. they are plastics and petrochemicals, textiles, building materials, industrial machinery. computers are made with these,

transportation equipment. we're talking about the building blocks of everything. and caustic soda? combined with other ingredients, what does caustic soda go into? that stuff is red hot. it goes into pulp and paper and textiles. cotton, nylon, polyester. detergent. soaps. petroleum products. aluminum production. chemical processing. fabrics. adhesives, coatings, herbicides, dyes, inks, watt dwraermt. so what does that make me? what does that mean, this pile of pvc piping and corrugated boxes and bricks? i'll tell you what it means. it's a nightmare. a veritable nightmare. a jason for the doom and gloomers. a freddie krueger for the nobel laureates who think the economy is doing badly.

and yes, yes, a chilling michael myers for those who think this rally is simply a rally in a bear market. because i represent the building blocks of the economy and right now we're in great shape. those of us who have been around long enough, grizzled investing veterans like myself, we know how to monitor the real economy, the building blocks of the economy. corrugated boxes. you can't ship without them. polyvinyl chloride, you can't build new houses or buildings without it. bricks. well, you can't have new infrastructure, developments without it. do you know that all these three things you have to watch if you want to take the pulse of the economy and the market. now, in the last month i have been doing nothing but checking in with companies that are in these industries. i'm talking about the international paper and temple for core gate box, ppg and dow chemicals for chloride. the martin marietta aggregates for this stuff. bricks are not dreams, that's what they're made of. you know what they're saying

about all of these? they're saying the building blocks in the economy have picked up. i always talk about how the stock market forecast a turn in the economy. stocks start moving higher. about six months before we get the economic rebound. i don't think it's just a coincidence that all these great products and the stuff they're made of, the three building blocks of the economy, turned up six months after the market bottomed in march. that tells me it's a true bottom. and the rally we've had since then is for real. not some so-called bear market rally where the gains aren't worth taking. it tells me the recovery is at hand. and it tells me the bears are cooked. we shouldn't be done feasting on kodiak stew anytime soon. hey, let me ask you a question. does a bear short in the woods? so what happens now? we've got the bottom. now we're seeing the turnup. so what do we do at this point? all right.

here it gets a little more tough. all right? you see, because as much as i like this market, as much as i think that things are terrific, i'm going to say something you don't want to hear. ♪ hallelujah >> i will never forget that when we have moments like this, joyous moments, people look back at the press and say he's a cheerleader. no. you need to ring the register. now, you've heard nothing but good things from me since the bottom, dow 6,500, after i made my fated call to sell at dow 11,000, dow 10,000. we've had an enormous run here. and i do not believe in being greedy. remember one of the watchwords of "real money," my book and "mad money" the show, which is that bulls make money, bears make money, but pigs, they get slaughtered. so please, do yourself a favor and take on a day when the market's just so happy and exciting, take a little off the table. however, this is a time when the

most difficult thing to do for the rest is to let it ride. and i feel like you should sell some. but then the stocks go much higher and you're left behind, you feel bad. in cramerica we know what to do. we split the difference. take a little off the table, we let the rest ride. because we are in a moment where the leadership broadens by the day. everyone knows i've said we have the original troika of the banks, the oils and tech. remember the three in one-amid which was a concoction i came one complete loi out of nowhere and you thought was idiotic? with what the banks said this morning, things are getting better, i have no reason to believe they're lying even though many of the bears tell me they are. why? because in 1991 when they called the bottom they weren't lying. why should they be lying now? that's why it's one of the biggest positions for actionalertsplus.com, my charitable trust, where i give away all of the profits at the end of the year and show subscribers by e-mail what i'm

going to do ahead of time. regions financial said things are getting better. it's a terrible bank but it can get better. huntington bank. tech. just take a look at apple today. this still may be the cheapest way to plate mobile internet tsunami when the new accounting rules for smartphones that i talked about yesterday let them be treated like regularphones. right now apple might seem expensive but the earnings explosion that this accounting change will bring will make it look cheap. oil. the pricing for natural gas next year looks like it could double. i think you could own any of the nat gas stocks that i had mentioned endlessly on the show. how about these two, xto and southwestern? they haven't moved lately. you can go buy those two. the leadership has now expanded to include the building blocks. this is new. the pvc, where you want to own ppg, the corrugated boxes. that's international paper in temple, illinois. the bricks i mentioned martin marietta. please do not forget vulcan materials. and now we have commercial real estate.

boy, no one believes in that. which many people thought would be the next crisis. that's going to be joining the bullish pattern. people hate this call, short sellers were all over me saying i don't know what i was talking about. do you know that's the first time anyone's told me i didn't know what i was talking about in my whole life in the the treasury department's alouth real estate people to massage the tax code to their advantage. the real estate investment trusts are doing well. the commercial real estate market is going to roar back. that's why i have been saying the ishares dow jones real estate etf the iyr is right. here's the bottom line. you need poly, ethyl, jason, freddie, and mike myers can't let the doom and gloomers get in our way. but we can't get greedy, either. the real way to defeat the gloom and doomers is to take some money you've made off the table and go buy yourself something real. or of course, as my late mom louise cramer would say, go buy yourself a sweater. make mine cashmere.

and then let the rest ride. let's laugh at the doom and gloomers all the way to the bank. rick in arizona. rick. >> caller: hey, jim, this is rick in phoenix. it's great to talk to you. >> hey, you know, let me -- you know, i like the running game. i like the phoenix running game. which is actually a pass game. >> caller: very good. listen, i had a question about apple. on yesterday's show you talked about an accounting rule change. >> right. >> caller: and i wondered if this would affect motorola in the same way. >> well, motorola doesn't have a lot of smartphones. and so it really wouldn't. i mean, motorola is really a restructuring story. and i don't want to make an accounting legerdemain make you want to buy that stock. motorola's been a winner. it's one of the stocks i thought could rally with amd. but i don't have the level of conviction i have with apple and it's not about the accounting change there. why don't we go to chuck in ohio? who's probably near the ohio state university.

chuck. >> caller: jim cramer, a big usmc oohrah boo-yah from the buckeye state of ohio. >> thank you for serving. fantastic boo-yah to have on the show. how can i help? >> caller: jim, my question is in the mortgage insurance sector. after seeing the phenomenal decline, now, they took it in the head along with my portfolio, you see stocks like idn that went all the way down to pennies are now back up over $10 and $11. what do you think about this sector moving forward? >> i had been working on this sector and trying to understand. i literally put out a query in realmoney.com, which is the paid side of thestreet.com where i blog and i'm chairman, literally trying to get my arms around this. i would be remiss if i actually gave you an answer. our viewers are smarter. let's get together and figure out whether these stocks are for real or not because they had such huge losses. i don't trust this. okay. do not let the doom and gloomers get in our way. we take some profits. but remember that our girlfriends, poly and ethyl, have now joined the banks. they've now joined the oils.

they've now joined the financials in making it so that we're having a comeback in america. "mad money," back after the break. coming up, it's the return of the day trader. so how can you cash in on all the new trades? cramer's got one stock that could make you mad money on all the new action on the street. plus, president obama says we need more reform on wall street. but why should b of a shareholders be forced to suffer twice when they shouldn't suffer at all? don't miss cramer's outrage of the day. and later, jim goes fast and furious as he faces a non-stop barrage of calls, giving stock after stock their final verdict on the "lightning round." all coming up on "mad money." (announcer) take your time to find the right time

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all coming up on "mad money." tonight i'm taking a page from the "law & order" playbook. with a stock that's literally ripped from the headlines. take a look at the front page of today's "wall street journal." the story, "return of day traders drives rise in volume." although if i had written it i would have read day traders are back, by knight capital, nite, my favorite broker when it comes to electronic trading. they report, we make money. the retail investor is back. that's a big change. and not just as someone who pours money into mutual funds by drips and drabs through 401(k)s

or i.r.a.s. i'm talking about the active trader. as the "journal" tells us, trading volume was up an amazing 14%. ♪ hallelujah >> from july to august at charles schwab, td ameritrade and etrade. knight capital posted a 7.7% increase in volume. this during august, usually one of the worst months of the year. as the people who follow the foolish sell in may, go away axiom still haven't gotten back from vacation. this year anyone who did that is kicking himself, ripping himself, or punching himself thanks to this powerhouse of a rally. now, this market is different. a lot of the trading volume is in small, speculative financial stocks. you know some days in august trading in just citigroup, bank of america, fannie, and freddie made up more than 15% to 20% of market value, and people love trading in and out of these names now. i can understand why, considering all the money

they're making. so we need a play on that play. we need the picks and pans maker for the gold rush. that's right. we need nit. we see retail investors coming back in the volumes, and we know part of the reason for that is because of the market's rise. but why are they coming back to day trading? i think it's about more than just commissions being low. according to tommy joyce, the fantastic ceo of nite capital and a man i've known for 35 years, when his hair was brown and i had hair, there are three other things going on here. first is speed. the average speed at which a trade is executed for you in a typical liquid stock has dropped to 30 milliseconds in the last five years. so it's much easier for investors to see the price they get on that streen instantly. eliminates any fear of slippage. second, five years ago about 77%

of all orders were at or better. that's a technical phrase, meaning the investor got a better price. that's right. got a price at or better than the national bid or best offer. now 93% of all orders are traded in the best prices available. i find that incredible. third, price improvement. another technical term. every day 45% of all orders are price improved, meaning you actually get a price that's better than the stated bidder offer. five years ago it was only about 25% of the orders were price improved. you used to feel ripped off all the time. this way people who place market orders don't feel like they're being cheated at every turn. they actually feel like they can make money. although you know i always tell you to place limit orders, especially in fast markets, so that if you can't get the price you want the trade doesn't go through. i respect how fast this market is. in english what does this mean? when i got in the game in the 1980s, retail investors got the worst prices and the big guys got the best. the data i just told you about shows that retail now gets the same price or even better. the system's become more

efficient and more friendly to the retail investor, the home gamers like you. look, i know you're constantly hearing about the evils of things like flash trading, high frequency trading, the so-called dark pools of capital, how they tilt the playing field to the benefit of the big boys and against ordinary investors. now, i know this is going to sound very counterintuitive, but you've got to trust me on this. i'm not involved in the industry. but none of that's correct. none of it. truth is it has never been a better time to be an ordinary person investing or trading in stocks. and a lot of it is because of this deep pool. there's been tons of criticisms about dark pool liquidity. makes it sound like some coined of plot in the trilateral commission, the bavarian illuminati, perhaps to take over the financial world. but really these dark pools are just fluid private institutional stock markets that trade large amounts of shares outside the new york stock exchange or the nasdaq.

as martha would say, they're a good thing. they add liquidity, which is another term. liquidity is wall street gibberish for jg that makes it easier for you to get the price you want when you try to buy or sell a stock. they're helping to break the competition-limiting duopoly. in other words, there's a duopoly at the nasdaq and nyse. of course they don't call it that. they're competitors. but they do not help you get better prices. believe me. it also means they come in for a lot of criticism from the uneducated press. and from executives at the exchanges. because they're losing market share. and in the so-called dark pools

they're really just markets that are fast and clean and honest. more honest than any other time i can recall. they should be called olympian pools because there's room for everyone. that's why i like nite capital. the leading source of off-exchange liquidity in u.s. equities. it has greater share than any u.s. exchange. remember, you don't turn to goldman sachs for retail investing. you don't necessarily go to credit suisse, right? even morgan stanley, you may not even be working with -- smith barney maybe, but institutionally, you're not trading with them. bear stearns is gone, so is lehman. it leaves nite capital in enviable position when it comes to the new york stock exchange, which seems to continue to lose market share by the month. again, not knocking the stock exchange. just encouraging as much competition, which includes nite. now, nite group, nite capital group typically handles over 5 million trades a day, mostly for retail clients. as market makers, nite internalizes the flow. again, wall street gibberish that i will bust here. it means they take the other side of the trade for the best bidder offer. again, this is a good thing. it gives retail investors great prices. just yesterday nite announced their average daily volume was

22 billion in august, up 8% from july. average daily share price was $15.6 billion. that's up a phenomenal 53% over july, driven by increased small stock trading. the small-time investors trading citi and fannie and freddie and aig before the split they're taking their business to nit. its nasdaq market share rose from 17% in july to 20.5% in august. that's up huge from a 10.3% share in august 2008. listed mark share rose 12.8% in july to 15% in august up from 8% in august of 2008. i mean, this is a company that's voraciously devouring market share. the new york stock exchange and nasdaq will not like what i said. this to me is empirical. i welcome them on the show, but i have to point out the share gains here.

and this is all after the incredibly bullish conference call at the end of july for nite when the company told us daily trades were um 123% in the first half of 2009 from the first half of 2008. that's amazing. daily share volume up 103%. daily dollar volume increased by 26%. as tj put it, that's what we all call him, the rise in dollar volume trades is absolutely remarkable given the concentrated trading activity in low-priced stocks, which we wingtsed in the second quarter. on that call t.j. said the price of the stock was so low it was "silly." now, the stock has moved up $3.64, or 20% from when he said it. that was at 18.20. it's still silly if you ask me. i think it deserves to be higher. maybe much higher. because of the return of, well, you. the bottom line, the retail investor's back. you know it and i know it. the playing field despite the bogus accusations you might hear about dark pools of capital has

never been as level for all you home gamers. i've never seen it like this. and knight capital, nite symbol, is our stock that is a knight in shining armor and the way to play a trend. i think it's a buy buy buy. rob in south carolina. rob. >> caller: hey, jim. a big south carolina gamecock boo-yah to you. >> hey, listen, i'll be a -- you know, if i had a football pool and were allowed to bet, i think i would have to put some money this weekend on you. go ahead. >> caller: my question is about charles schwab. with as many people supposedly sitting on the sidelines and waiting to get back in, with retail trading, could we expect a stock like schwab to be good moving forward? >> i think so. plus don't forget. i was checking the money fund rates at fidelity. they're paying you virtually nothing to keep your money in with them. schwab is a fine outfit. i think it's a terrific investment here. let's go to richard in nevada, please. richard. hey, richie. >> caller: skee-daddy. >> what's up, chief? >> caller: las vegas locomotive boo-yah.

>> man, i'm liking that. let me give you a wynn boo-yah which is going much higher. hit me with something. >> caller: i wanted to take the time to thank you. i've been with you a long time. i wanted to thank you for your integrity. >> thank you, man. i take a little heat, that's okay. couple of death threats now and then. check with the fbi. we just nailed a guy. go ahead. >> caller: regarding the disciplines you postulate in your book "mad money: sane investing in an insane world," i follow your discipline of buying stocks in increments with the use of limit orders. i find it easy to fill a position in a market where stocks are pulling back. my question is do you ever forgo discipline to fill a position and subsequently raise your cost basis? >> oh, man. you know, i talk with stephanie, she works with me at actionalertsplus.com, my charitable trust. we debate this every day. sometimes it's so hard because you think a stock's going up but you look at yourbase in a honeywell, it's 33. the stock's at 39. but then you think dave cody, the ceo's so great. should we pay up? the answer is i rarely pay up. i rarely break discipline. and the reason is i've lost too much money breaking discipline.

so let's just say 90% of the time i do not break price. and that's one of the reasons why i've been a successful investor. ripped from the headlines. the retail investor is back. and the way to play it is nite capital, n-i-t-e. after the break i'll try to make you even more money. >> announcer: coming up -- president obama says we need more reform on wall street. but why should b of a shareholders be forced to suffer twice when they shouldn't suffer at all? don't miss cramer's outrage of the day. and later, try to keep up with cramer ease takes your calls rapid-fire in an all new "lightning round." plus, how do your stocks stack up in a mystifying market? cramer makes sure your portfolio makes the grade on "am i diversified?" all coming up on "mad money." could someone toss me

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it paid out to merrill lynch employees? well, it's turned into a travesty of a mockery of a sham. on monday federal judge jed rakoff did the right thing, busted up the deal. but i've been thinking about his ultimate conclusion. i think it's nuts. i think it makes the situation even worse. first the good. rakoff was right to expose the s.e.c.'s egregious behavior. these guys act like they're fighting the good fight. but the truth is that they're letting the bad actors off with basically easy settlements. a $33 million fine apaid by bank of america shareholders for 3.6 billion in undisclosed bonuses? that's a caricature of justice, a total whim, along the order of -- where did we get that from? thin air? the way i see it, the s.e.c.'s actions are totally arbitrary and capricious. rakoff's right to hold the deal up for that reason. he is also right to ask the

question that we've asked on this show. why should bank of america shareholders, in which my charitable trust is one of them, get dinged by this fine rather than the people who put the bonus deal together? i don't see the sense in that. bank of america shareholders are the ones who got hurt by the 3.6 billion in bonuses. why should they be the ones to be punished here? they're the victims. i realize corporations are set up for the liability to go to the shareholders. there's not much one federal judge can do about that. but i'm glad he stopped the deal for this reason alone. but here's what makes no sense to me at all. this is what outrages me beyond belief. it's that rakoff concludes the real traversy here was the

reliance on the lawyers by bank of america and merrill. if the companies relied on lawyers, he says, why not go after the lawyers? as far as i'm concerned, this insane decision amounts to saying that the government -- well, we tried, but we couldn't find any bad actors, so let's just go after the people who advised. that's nonsense, beyond ridiculous. who the heck cares about the lawyers? they weren't the decision makers. it's the principals that did wrong, not their advisers. and once you start laying things off on i think the lawyers, you've got two results. first, the bad actors go without punishment. and from now on the lawyers will just say to their clients go plead guilty, i don't care, we're not going to risk our hides to defend you. that accomplishes nothing. or at least nothing good. somehow we're worse off than when we started with this deal. if rakoff believed this whole thing is a mockery of justice, why not just tell the s.e.c. to refer the case to justice? justice with a capital j. if there's no smoking gun, no liability, don't just say the lawyers did it. now, i have been cheering judge rakoff for exposing the fassel and the silly way the s.e.c. does its work. i've been cheering the he says the shareholders shouldn't have

to lose more money to pay for the sins of their executives. darn it all he reached this ridiculous conclusion that gets us nowhere. he's a smart guy. to me it's obvious what should happen. bank of america's executives and merrill's executives should pay. maybe they should pay not with money but their hides, pay with their hides. if they hid the $3.6 billion bonus heist from shareholders. the s.e.c.'s decision to take the $33 million fine from the pockets of the shareholders and not the executives? meaningless. if the s.e.c. couldn't find the bad guys, it should recommend that the justice department get to the bottom of it. i think what happened here is mary schapiro, the s.e.c. chair in trying to get the job done made a terrible decision to settle is this for $33 million of the wrong people's money. no wonder andrew cuomo the new york attorney general feels compelled to get some state-level justice against the executives.

i typically don't like that, but you know, because we sure aren't getting anything at a federal level i understand cuomo. here's the problem. same way that sarbanes-oxley, which i originally favored, has been taken to extremes, the government decides that people should be put in jail using existing laws, then the wrongdoing going forward is cut down. that's how you deter this stuff. if instead we make capricious decisions to clear the dockets like we got from the s.e.c., all we do is set congress to work to come up with new laws instead of using the old ones that would have done the job if the government had just enforced them. if we first kill all the lawyers, a la shakespeare, who should have been referred to instead of rakoff's gratuitous reference to the old oscar wilde saw about a cynic knowing the price of everything and the value of nothing, we accomplish nothing at all. we set up a system of equal justice for none. this is why at the end of the day i think the buck and the outrage stops with the president of the united states. ultimately, all the allegedly tough talk by president obama down on wall street a couple days ago to me feels hollow. he's railing about outrageous bonuses and risk taking, chastising wall street at precisely the time that his watchdog, the s.e.c., could do something about it.

instead they're slapping wrists. it's his watchdog. they're slapping wrists in the ultimate bonus outrage. come on, mr. president, a hidden $3.6 billion payout financed by you and me. you can stop this, mr. president. i didn't like that speech. it was way too downbeat. the president should have spoken about how he's directing the s.e.c. to get serious, use existing laws to get the bad guys, not let them off the hook. not new regulations. we need better regulators, not new regs. to invoke the bard again, the fault of the president is not in the stars, it's in the s.e.c. and your own inability to see the enforcement of existing laws rather than creating new ones will get the job done a whole lot better than the $33 million fine paid for by the people, even though the executives took advantage to begin with. bottom line, we need to punish the perpetrators, not their victims. and until the president and his s.e.c., because it is his organization, understand that? i've got a feeling, bad feeling. the bad guys will keep getting away scot-free. stay with cramer.

>> announcer: coming up, the madness goes nationwide. >> a big buffalo boo-yah. >> boo-yah from the scorching deserts of west texas. >> from southern california -- >> announcer: when jim takes calls from all across cramerica. >> boo-yah from st. louis. >> big 110 degree boo-yah from phoenix, arizona arz. >> boo-yah from seattle. >> announcer: in an all new quick-fire "lightning round." and later, whether the dow soars or hits the floor, jim helps you try to stay on steady ground with "am i diversified?" all coming up on "mad money." you're the colon lady!

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it is time. it is time for the "lightning round" on cramer's "mad money." what's that you ask?

rapid-fire calls. you say the name of the stock i tell you whether to buy buy buy or sell sell sell. just to be clear i don't know the callers or the stock questions ahead of time. my staff prepares the graphics on the fly. play till 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." you know who i'm going to start with? shella in nevada. shella. >> caller: hi, jim. it's a boo-yah. >> how have you been? >> caller: good. microsoft msft. >> how can i recommend microsoft when at the same time i can recommend google or i can recommend apple where i raised my price target to $264 yesterday? by the way, orkling did not report a good quarter. microsoft is not a great stock here. i prefer both of mine to that one. i want to go to -- oh, my. my home state's on board here.

let's go to dutch. dutch in new jersey. maybe the dutchman -- >> caller: jim, this is dutch with a big boo-yah from boonton, new jersey. >> me and my friend michael hailey bought a christmas tree there a couple years ago. what's on your mind? >> caller: looking for your opinion of bankosantender. >> that and banko breval are two of the finest banks in the world. the spaniards know how to do banking. that bank can take over the whole country. if sheila bair would ever let these banks take over. i'm giving you a thumb up for santender and a thumb up for bankobreval. dominik in florida. >> caller: ba-ba-ba-boo-yah. i want to know about 3com. >> you know what 3com's like? i'll tell you what it's like. it's like troy versus university of florida last saturday. yes, i kid you not. and i tell you, tebow plays for apple. on a seller at 3com, unfortunately a seller of troy and a buyer of tebow and apple. eric in new york.

eric! >> caller: boo-yah, jim. >> boo-yah. >> caller: i just want to see what you think about directv. >> it's a winner. it's a winner. what can i say? it's a winner. they got a lot of the right moves, right package. not an expensive stock. dtv is a winner. and there are very few entertainment stocks i recommend on the show. i do like viacom, by the way. i think it's good. and you know i've warmed up to time warner. let's go to joe in nevada. joe. >> caller: boo-yah, jim, from wonderful huntington, nevada. >> good to have you. second nevada in the course of the show. i think that's excellent. go ahead. >> caller: jim, i need a doctor. you're the best. >> okay. >> caller: last week there was a pharmaceutical company called biomerin, symbol bmrn, that did eight times its normal volume in one day and call option activity went through the roof. if you were trading, would those

two factors lead you to make a short-term trade -- >> no, i would. . and boom room is what we call it, is a play we made three years ago. we never looked back. it's too speculative. i'm never going to do anything. it looks easy -- >> that was easy. >> -- but it's actually painful. rick in north carolina. rick. >> caller: a buckeye boo-yah from a fellow osu alum, jim. >> holy cow, man. good to have you on board. >> caller: that was a rough time saturday night. >> what can i say? true. true. >> caller: i broke a cardinal rule of mine, falling in love with a stock, eagle, bought it at 15, loved it all the way into the 30s and hung in all the way to the 5s. is it worth dollar cost averaging and -- >> no. remember, these are pieces of paper. we do not fall in love with

them. you cannot fall in love with that stock. it's not a good one. sell, sell, sell. let's go to daniel -- oh, come on! daniel. i have every right to mispronounce it because i'm from philadelphia. daniel in virginia. >> caller: how are you doing, jim? give a big boo-yah from virginia beach, virginia. >> caller: this isn't jack, but how are you doing, jim-bo? >> jack. you sound like you're from the philadelphia area. so i'm taking it's not jack but it might be. what's up? >> caller: no, my name is mark . >> what do you have? >> caller: mark from long island. >> i thought i had jack from pennsylvania. >> caller: no problem. i wanted to ask you about hurn. back in july they were at $40. and everybody -- >> yeah, but they had an accounting problem. they had that accounting

problem. i said you had to sell it. now it's moved up three since i said sell it. but look, problems equals sell. it's right out of the book "real money." i'm not changing my mind. that's the korean version. the "lightning round" is over! thinking about mutual funds-- think about this: the best place to buy one may not be a mutual fund company at all. instead of emphasizing their funds, td ameritrade has tools that can help you choose funds from the leading fund companies. there's even a "recommended" list by the independent experts at morningstar associates. so you can get a fund that matches your objectives instead of someone else's. announcer: before investing, consider the fund's investment objectives, risks, charges and expenses. contact td ameritrade for a prospectus containing

this and other information. read it carefully before investing. we're out here looking at bones just because they're inside you doesn't mean they're protected. oh, ladies. let's say you have osteoporosis. i do. you could be losing bone strength. can i get it back? (announcer) ask your doctor how to help treat osteoporosis with once-a-month actonel. actonel is clinically proven to help reverse bone loss and can help increase bone strength to help prevent fractures. so you can get back some of what you lost. do not take actonel if you have low blood calcium,

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priority mail flat rate boxes only from the postal service. a simpler way to ship. when i tell you i think you should own a stock, it doesn't mean you should throw all your eggs in one basket. that would be stupid. even if you're positive it's going higher. uh-uh. i don't want to have any of that because diversification happens to be the only free lunch. that's why we play "am i diversified?" every wednesday. what happens, you call me, tell me your top five holdings, i tell if you your portfolio is diversified enough. maybe you need to make some

changes. we're going to start first tonight -- this is like our seventh caller from the state. let's go to dean in pennsylvania. dean, you're our first caller. what do you have for me? >> caller: a big boo-yah, nittany lion boo-yah from pennsylvania. >> listen, top-ranked, looking good, joe paterno looking good on the sideline boo-yah back to you. >> caller: i went mostly to cash about a year ago after taking some major losses. >> okay. >> caller: my question is is it time to get back into the market as i need more income now than a savings account. >> income is a priority. that's good to know. thank you. >> caller: and i don't want to risk any more losses. jim, i'm basically tired of scotch and the linoleum floor is cold up here in pennsylvania in the winter. >> i've been going with the tequila and tonic lately. never mind. that's way off. >> caller: my choices are american electric power, aup, con ed, ed. exxon, xom. north atlantic tanker, nat. and verizon, vz. am i diversified and safe p. >> someone downgraded verizon today. you know, we ought to get ivan on here. just to see whether he agrees with that downgrade. let's take this. now, we've got to understand, dean starts by talking about

losses, and he talks about income. so this may not be as pertinent as a typical "am i diversified" inquiry. obviously, nordic american tanker, that's johannes zen. he's got the longest-running safe dividend in the shipping business. american electric power, don't like the makeup of their power given the clean skies. but you've got a utility there. exxon not the highest yielding oil. i'd prefer conoco or the one i own for actionalertsplus.com chevron. higher yielder than exxon. so that does not fulfill the mission there. verizon, very good yield. i think it's safe. i think >> finally getting through. it's a big buya from san mateo, california. >> you are on fire. let me lend some arson to you. what's up? >> caller: it's a sunny day in northern cal. >> well, you know, terrific.

it's a dmroomy day on exit 143 over here. what's up? >> caller: my five. am i diversified? >> okay. krifshlgts wells fargo. >> wells fargo, man. how many times do i have to listen to that company -- people tell me that company is the most honest company in banking. go ahead. >> caller: procter & gamble. >> pg. >> caller: pepsi cola. ebay. >> woe. >> caller: and apple. >> oh, man. apple, raising my price target to $264. first of all, we do have a lot of action -- we have mamz that i own for my travel trust, including wells fargo, proctor & gamble, ebay. that's my disclosure. ebay, who i think is just the finest maim right now on the internet other than google. oh, mefr mind. amazon up 70. it's one of my favorites. pepsi, doing a good job. big acquisitions. we have tech, best of. proctor, is it too much like pepsi?

i'm calling it both health care and consumer product. wells fargo, one of the finest banks. i believe that that company is going to be the biggest player in the mortgages in this country other than bank of america. apple, youen i like it. we have a tech, internet play. yes, i do dwesh those. we have a soda company. a consumer products. a bank. i'm blessing it. i think that dan, having a great time out in san mateo, and i don't blame him because i we should i were there too. let's go to peter in florida. peter. >> caller: peter from naples, florida. krimplts first stock is bac, bank of america. >> the bank of america. >> fedex. >> okay. >> caller: line manager. integra energy, teg, and ford. >> let's let her rip. thank you for asking. let's let her rip.

ford, that's out of the way. we have a believer in him, but we play it with the preferred. fedex at the bottom. mr. smith a smart guy and an economist by nature and ceo. integra, that's a nice utility. always good to have a utility wrshgs lynn is the -- that's michael -- that's michael win, a go ahead job. please don't care that he was made chairman. he is very involved. he is also carrying the torch for natural gas. bank of america, we believe that the merger only with merrill lynch will be good. i own it for my charitable trust. we have ae bank, auto company, a transport, utility, and we've got a nat gas company. holy cow. >> hallelujah! >> well played. peter many texas. peter. >> caller: big boo yeah to you. >> big bucks. >> caller: ep, oln, chevron, cvx, waste management, wmi, and pfizer, pfe. >> change that symbol, just so everyone knows. wm for waste management.

mr. steiner, good job. we have a poison control company. that's what we used to call -- waste management, let's just call it a gashan disposal company. ow owen, lost numbers because of chlorine. it's a chlorine company, and i think it's a good one, but it does trade thinly. pfizer, my least favorite pharmaceutical, but it is a pharmaceutical. chevron, that's a big obviously integrated oil. here's the problem. el paso and chevron are too much like each other. i would rather take verizon or mcdonald's. it was an accidental high yield before it caught $1.50. a drug company, oil company, garbage company, and, remember, we're making that change. natural gas. that job will be done. >> hallelujah. >> mad money after the break.

ow forra? absolutely. let's take something off the table. why? because we've had a big run, and i don't want to give it back. i like to say there's always a bull market somewhere, and i promise to try to fiend it just for you right here on "mad money." i'm jim cramer. see you tomorrow.