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tv   Mad Money  CNBC  September 17, 2009 11:00pm-12:00am EDT

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gm drivers.. it's goodwrench & go time. three great services: all in one place. all at one time. all for one price for most gm vehicles. but it's only for a limited time. at participating gm dealers. i'm jim cramer and welcome to my world. you need to get in the game. go out to business and he's nuts, they're nuts. they know nothing. i always like to say there's a bull market somewhere. "mad money" you cannot 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. it's not my job just not to educate but to entertain so call me at 1-800-743-cnbc. it's time to look inside of ourselves. it's time to ask yourself if you've become too skeptical.
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this is something i always like to do on a down day. i look at how the media's covered this auto industry with the cash for clunkers program or the housing industry with the $8,000 tax credit for buying a home. that one goes away in november. and what do i hear over and over again? i hear what is known as the pull-through argument. where everybody just assumes that these programs are stealing future sales. and, therefore, are worthless. cannot do any good at all. i've reached some conclusions. i think we've gone from being reasonable skeptical, which is good after a bear market. recently skeptical about the possibility that demand is being stolen from the future to a whole other level. i think we've now become impossible to convince otherwise no matter what. in other words, many of us have our heads in the sands. we're impervious to anything that could be good. we don't want to hear, we do not want to hear anything good. right now anytime a stimulus program with any sorts, what are
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the pundits, the money media, the short sellers decide, what do they say is the most important issue? is it -- is it what it will do to the numbers of the companies or the gross domestic product? or is it whether it will work at all? no. all they care about is whether it pulled through. how much of the future sales will it steal? and you've heard this a million times. you know that. look, this morning i saw a television interview with bob lutz from gm. he was peppered asentiently. and he said that michael jackson from auto nation, by the way a huge overkill. told no sales. the sales are good. the futures are not impacted negative by the program. the reporter shrugged it off like lutz was making it up or something. people have to stop believing that everything is bad. and everyone who has something fozzsay is not a snake oil salesman. just 'cause they're positive doesn't mean they're lying or making stuff up. we've got to be willing to say,
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you know what, may be i am being too skeptical about the housing credit or about the cash for clunkers. maybe i should at least entertain the idea that the pull-through isn't that important. hey, how about i start thinking, maybe -- maybe things aren't that bad. maybe i should stop saying, i don't believe it for a minute. forget for a moment that the cash for clunkers was an unbelievable success. maybe we should be saying holy cow, people bought cars off of this program? >> i didn't think that they would when it started. you was lie, please. they did. heck with the borrowing sales from the future. at least we had sales at all. that's how bad off we were not that long ago, if many of you have forgotten. okay so today all day i'm hearing the same things because the housing starts came out. same things about the $8,000 housing tax credit. that the one that goes away if you're not in contract by november. i heard the same things i heard for cash for clunkers. all of the chatters are saying about how the pull-through of theirs, that ridiculous term again, is going to destroy december home sales and hurt 2010 too. this program's going to ruin 2010. you know what, let's speak some
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truth about the process. you're not being skeptical when you refuse to believe any evidence that things might be okay and the pull-through might be irrelevant. you're not being skeptical. you're being impossible. impossible to convince that these programs are anything but books that don't stimulus demand in our worst time. because we say they distort in what we would otherwise be seeing, which is of course the incredible downturn in business. we've got to -- i learned the word in knowledge, you're a nihilist. neilism is the party line or maybe you took the russian lit course. you believe in nothing with this. all right, so maybe those are a little over the head there. how about this one, you're smeagle. a nation of smeegle, i'm not listen. and especially if it's good you have missed 3,000 dow points going with the old smeege. the idea that there might be a whole nonstolen from cohort of people that actually bought cars because they the other car's worth $4,000 bucks and got 3 gs. gas-guzzling clunkers that came back to life is regarded as the
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height of the pollyanna thinking but assumption that no one will buy a house without the $8,000 credit, that's gospel. doesn't seem to matter that december auto sales are in line with the preclunker line. that means that things were not stolen. it means that things are good. doesn't matter that inventories went down. profits can go up for ford. under seven which i am starting to like and people can be put back to work. there's positives which i guess that the media is acting like they couldn't possibly be true nor does it seem to matter that the average price of a home and the average mortgage rate are so much lower than used to be that you can barely see the $8,000 tax credit come into play. no, all we hear about, all we hear about is that the tax credit's the only reason that anybody's buying a house and the facts, they don't matter. where i come out to spend all of your time trying to figure out how much of these sales are
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stolen from or borrowed from, the troop section of the media and the money managerers, have missed the much bigger picture. a lot of moving parts behind what makes people buy things. in an environment where people are buying more stuff. that's what's happening. if you're in the impossible to convince camp that anything's happening good then you'll be blind to what's really happening with the american consumer. a healthy return to buying. not buying beyond our means, but buying. if you obsessed about the stolen sales from a pair of tanky little government programs over that trend you're missing the farce of the trees. now, look, had the producers of goods, all consumer goods, not seeing this slowdown coming, we would be see gigantic losses from almost every major american company i follow. it is true but guess, what these companies were so skeptical that they cut back to production to levels where they are simply not hurt by a more prudent consumer. that's how companies like fortune brands and black & decker and home depot could be breaking out here. the bottom line you have to focus on me for a second. i need you to stop worrying
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about government programs that might be stealers of the future. i need you to stop being too skeptical. i need you to stop being impossible to convince. stop. take a look at the facts. if you let the nihilist scales fall from your eyes, if you open your eyes to things that are happening good, i bet you know what, you'll like what you see especially now that the market's giving you a little bit of a break to get back into it at prices far more to our liking. holy cow. i'm going to steve marino in pennsylvania. steve? >> caller: a philly's boo-yah from huntington valley. >> steve, love you as much as ever. why don't you hit me with something. >> caller: i'm going to hit you with something, jim. is dow 10,000 and s&p 1,100 in the year end. what economic numbers matter or
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is it all about china or a combination of both? >> man, steve's given me a complete and utter chinese menu for many things here. i will take -- i will say this, i think that the dow can go to 10,000. i do believe, by the way, that at a certain point we're going to have to see unemployment claims better than what we saw today. we're going to have to see this quarter's results ago, if this quarter's results are blowout, then we could see 10,000 500, steve. the most important is we have to follow, aren't china anymore. china's on fire, okay? we need to see the stimulus money coming into the actual economy. we haven't seen that yet. and we need to see earnings estimates still be way too low. that's what i worry about. but, steve, things are good. now, things are sometimes -- i felt things were too good that we've been up for too long but that's why i said yesterday, steve, and you listen, take something off of the table. do not let everything ride. frank in california. frank? >> caller: hey, jim. i know you've been a longtime fan of pinter morgan. could you please explain the huge spread between the kmp which is a limited partnership and kmr which is the management company. the tax advantage of kmp, it doesn't make stones have a seven-point spread at this time. >> well, remember the kmp is just purely a toll road.
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it's purely a toll road. that's all it is, okay? you do not have anything else other than, okay, listen -- let's cut her. it's the jersey turnpike, all right? and it doesn't matter how fast or slow, it doesn't matter. it's just you have to pay the toll. you have to pay the toll. that's why kinder morgan doesn't grow like kmr. it doesn't grow. it can grow a little bit but that's why we get the higher yield because it has to attract people. "mad money" will be back after the break. next, could a rise in nat gas prices mean big confidence for one company? cramer goes head-to-head with range resource ceo, john pinkerton to find out if his stock can power your portfolio. on the executive decision. plus, with an important rule change happening on friday,
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cramer's got something he thinks must now be sentenced to the sell block. and later, the wizard of wall street kicks it into high gear to give your stocks their final judgment on the "lightning round." could someone toss me
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an eleven sixteenths wrench over here?
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from weeks on this show i've been saying that the natural gas stocks were telegraphing a gigantic move in the price of the underlying commodity. as gas prices fell, the stocks pushed higher and higher. as the so often the case, the stocks were dead right. the privacy natural gas has now almost soared 70% since it began its huge rally just last week. think it could double over the course of the next year. i think that $6 to $7 natural gas for 2010 is looking more and more reasonable. especially if the government
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decides to do the right thing and embrace natural gas as it transition fuel over the objections of what i call the pro-black-long antirainbow coalition. the supporters of the so-called clean coal, via carbon capture. i describe that as being something like santa claus, tooth fairy, easter bunny. but just like then, carbon -- doesn't exist. just don't tell your kids or your congressman. now, i know that i've given you already a list of worthwhile natural gas stocks that is a mile long and what a great list. do you know that of the eight natural gas ceos that i have interviewed since the end of july, end of july, stocks are up average of 16%. >> hallelujah! >> and tonight i've got another winner for you. range resources, rrc. now this one is a wildcatter.
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a company drills where no men has drilled before. in my opinion still has room to go much higher. focused on what is known as the marcellus shale. one of the best sites for finding natural gas in the company. with its pennsylvania epicenter and where range resource has 2.7 trillion cubic feet of reserves representing 86% of the company's natural gas. other fields in wisconsin, northfield, barnett. rnc has 19.1 to 26.1 cubic feet of resource potential with most of that coming from the marcellus shale as well. this is in great shape. its production is expected to be higher than initially scheduled. coming in between 90 and 100 million cubic feet of gas per day up from the 80 to 100 million cubic feet per day that the company's previously forecast and in 2010 its production have an expected to double versus this year. that's incredible. solid balance sheet. no bad debt coming until 2012 and it could get stronger as range resource seems to be poised to start raising cash by selling noncorps assets. it's drilling costs around $1.70 per thousand cubic feet and total costs are about $3.10 per 10,000 cubic feet.
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is a great bet on the marcellus shale and although not left out of the natural gas rally i think it could higher. i think the stock is the great way to play a rise. do not take it from me, let's hear from john pinkerton, the ceo of range resource. sir, welcome to the show. >> jim, great to be here. >> am i too bullish about the future of natural gas given the fact that the president doesn't seem endorse it and congress hasn't gotten behind it? >> the not at all. a lot of it is our fault. we're just now getting out to the hell to tell people about their paradigm shift in the revolution that's going to in our business. what it is we've got these shell gas plays. over 100 years worth of reserves in the ground. our production's going up. and this is just new data. it's a paradigm shift. we've just got to go out and tell our story. >> five hours ago alan greenspan, six years ago, a
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shortage of natural gas. now this marcellus shale's located in pennsylvania. how in the heck did we not know it was there and why in the heck were we not exploiting it for many years? >> jim, our company's been in the market -- in the appalachian basin for about 25 years. we always knew there was gas in the marcellus. we simply didn't have the technology and the know-how to get it out of the ground but what happened was that our friends in mitchell energy and now devin opened up the barnett shell, our headquarters is in ft. worth. we're in the barnett shell, in the widford. moved that technology, moved it up to appalachians. we drove our first marcellus shale well in 2004. you know last year, we ended the year producing 30 million cubic feet a day. as you've mentioned we're going to triple that to 90 to 100 million cubic feet a day and we're going to double again next year to somewhere between 180 to 200 million a day. >> do we have too much natural gas that we're drilling in this country. >> prices went down to below to
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where you can make a good living with it. >> well, you know, that's what's so interesting, this revolution that i'm talking about in natural gas is that historically, our business -- the high-cost projects were repeatable. the low-cost projects weren't. that's not the case today. these shell plays are repeatable at low carb. all three of our big plays, the barnett, nor and the marcellus, we can make over 20% rates of return at $5 gas. and obviously at $8 gas, we can do a lot better. >> why is coal -- i mean look you're in pin pen, i'm seeing governor rendell this week at the eagles game. why is it that coal has such a hold on congress, on governors, even though your fuel's cleaner, arguably more abundant and certainly can be used in trucks in cars? >> jim, it's just a question of education. when we got involved in the marcellus up in pennsylvania, they simply didn't understand it and we've spent a ton of time up e educating the legislature up in pennsylvania and now we're starting to do it up here in
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washington, d.c. and it's all about education. and it's as simple as that. we've got to get our story out. the fact that we've got 100 years worth reserves. and that it's low cost. what's interesting if you just look at ango, which is our new association with all of the large independent producers, today we came out and thought over the next five years we'll see gas prices averaging the $5-$8 range. if you take the top of that range, it's still one-third deeper than crude oil. so even at the top of the range we can make plenty of money, but the good news is the american public is going to get something at a far lower price. >> okay, now i have been recommending the companies that have actually -- unless the hedges are really high -- the ones that are most unhedged. you do have a lot of your production hedged next year at a price that is below where i think natural gas is going to be. had you lost faith at one point. >> we've got 80% of our gas hedge in 2009 bat $8. so we're in great shape.
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2010 we've got a floor price of $5.50 but a cap at $7.50. so in your target range we're not -- we're going to see that benefit in your target range. >> is it worth to t to sell-off other areas, to keep drilling in the pennsylvania region? >> absolutely. jim, one the things that we figured out a number of years ago is that i asked our management team, what do we care more about? our stock price or our market cap? we came back, all key care about is our stock price. what we started doing, every year we're selling off the lower return, more mature assets, and using that money to reinvest in our high-return assets. so what allows us to do is kind of turbo charge our returns. the other thing it does, it allows us to issue, soften the amount of stock that we have to issue from time to time. so our existing shareholders gets the full benefit of this unbelievable play we've got in the marcellus. >> think for a second beyond the industry. when you do your drilling, do you put a lot of people to work?
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>> unbelievable. and the one thing about these shell plays is that they're very technically complicated. so it takes a lot of people to make it right. to give you an example, penn state has come out with a study and just for next year of 2010, they're saying, if their study's right, 110,000 jobs in the state of pennsylvania, $9 billion worth of economic activity and almost a billion dollars in tax revenue. >> from this from the drilling in the marcellus shale. >> just this pennsylvania. what's interesting if that's the case, that'll be the largest producer of jobs in the history of that state. >> wow, i got talk to rendell about this. look, i'm completely confused. when i spoke to him he said listen there's environmental problems. the department of conservation, energy. i mean, he said he uses a lot of
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water. i mean, is that true? >> well, you know, when you -- you do use a fair amount of water, but what's interesting, if you go to the number of wells that we're drilling in the barnett, we're not even close to that in the marcellus yet. we're just using a fraction of the water. we're using far less water, for example, than what they're using to water the golf courses in the state. >> all right. >> but what's interesting, deputy of environmental protection hanger here, gets it. rendell gets it. and so in pennsylvania bear getting drilling permits in less than 30 days now. >> that's good. >> they're making it happen. >> all right, john pinkerton, ceo and chairman. another big winner. thank you for coming on "mad money." a leader in the s&p during the great bear market. i've got to tell you you hear the story, these stocks are on fire. do you buy them on fire? sure we like the way for a pullback but range resources is just another company that's just a monster, monster stock if this
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country goes to the way of natural gas.
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we've got a real dilemma in tonight's "sell block." i think the big run in u.s.
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treasuries -- ♪ -- has ended. they have moved up enough and it is time for you to sell 10-year and 30-year treasuries. that's right i'm putting one of the safest investments on earth into the "sell block" tonight. a so-called safe haven for anyone who wants to protect their cash is getting less and less safe. let's go over why. first of all i suspect the return of inflation -- look it's not necessarily a bad thing. it's not something buy more republican inflationary talk but it's definitely bad for those who own treasuries. the most popular investment in the world. last night i talked about how pvc piping, boxes and bricks were coming back. roaring back in price. these are the building blocks of the economy. the prices had all but going down and now they're reversing so once that economic growth starts to kick in we're bound to see some inflation. the higher the inflation in goes the less attractive on yields in treasuries become in comparison and the security erods in value and i believe strongly that we have seen the trough in treasury yields which of course because
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of the way that bonds work means that the peek in prices for bond. and that's because the economy's coming back. we've had a steady drumbeat of positive economic news today. today's decline in jobless claims, the rising housing starts. there's the latest in a long undeniable line of piece of data that make me believe that the recovery is for real. inflation plus recovery means sooner or later the fed is going to have to raise rates and that pushes treasuries lowarien i also want the u.s. government to issue a trillion dollars in bonds. probably not. but something like that. a giant, giant -- just crushing amount of debt is going to send them down in price if anything will. i think the 30-year treasuries, which currently yield 2.42%, will rapidly go to 5% or higher within the next few months because of this mountain of federal debt and i am promising you, i am promising you that you will get hammered courtesy of the auctions that the treasury must run to finance the deficit. oh, how about this, ten-year treasuries yielding 3.4%, right here right now, i am calling
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them perhaps the most overvalued securities in the world. you heard me, the most overvalued security in the world is the 10-year treasury. so here's the dilemma. look ii could testimony you to look at mass limited partnership. kmp. or tell you to be an enterprise private partners. almost yield 8%. obviously better values than treasuries. but most of you buy treasuries because you want to keep your money safe. i like to talk about them as the first national bank with seely with a better yield. however now they think that we're about to come down, now -- now, right now it's time to sell the ten year and 30 year. you have to be very careful about where to put your cash when you sell them. this is a tough environment for those of you who are focused on capital preservation. just keeping your money safe and having it grow slightly faster
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than inflation ucannot swap out long-term treasuries anywhere into ultrasafe money market funds because starting tomorrow no longer ultrasafe. don't believe me? how about this the "the wall street journal", page c-3. low yields dog money funds as guaranty is state expire. that's right, tomorrow the government-back stop on money market funds comes off. no longer have the protection of the fdc. hey listen the yields stink anyway. without the backstop i don't think that it makes sense to park your funds in these. you want something with fdic protection for true, for real. you want marathon man-style safety. as of tomorrow money funds no longer run marathon rate status. it which means if you want to keep your cash safe and not get hurt by what you think is a giant skyrocket in rates you have to accept the low rates on cds right now. it is vital that you keep your cash of certificates of deposit for the next 18 months. that's the length i think before the rates get so high that we're going to go back. without the ten-year and the 30-year treasury or the money market funds as favorable parking places i am telling you
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that cds be even with those low rates are the best yields you're going to get right now even if the deal isn't a very good one. cds don't have to be terrible. you can try to maximize your yield and do that you have to compare rates from national banks with the ones offered by regional and local ones wherever you live, as well as smaller, lesser known banks that offer the best rates that are insured by the fdic. i can't say that enough, insured by the fdic. internet tools on this. i like the unbiased ones. i like to start with the one that i know that i got involved in because i think it's just so honest. it's called banking my way. bankingmyway.com. one word. bankingmyway.com. it's a site that we bought at thestreet.com where i am chairman, find some place, to get the best rates. cash may not be king right now but keep a portion of our money in something safe even when we're in the land of, yes, a thousand bull dances. so why not upgrade cash from ponto knight to make the best
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return while you basically can? look, i wish i could give you a better player on the end run in treasuries. i'm putting them in the "sell block." wish i could say, hey, here's a great way to profit from the coming decline in bonds. now at one point i would have recommended eye would have examined the ultrashort treasury etfs, called the tbt for 20-plus year treasuries or the pst for 7 to 10-year treasuries. these are not a good way to play long-term trends. they don't do what most people think they do. i hate these. they're in travesty. i've been crusading against these etfs for many reasons but makes them so terrible is they only effectively attract daily prices. rebounding means their longer term performance means more to do with the volatility price than the actual direction because we're trying to short them. basically there's no good etf that let's you lever. here's the bottom line, this isn't -- i know it's a stock show but i'm making this point. it's really important.
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it's very heartfelt and you've got listen to me. the run in treasuries, which i have believed in for very long time, is over. i am calling the top in treasuries right here right now at this moment. that's right, it's time to sell, sell, sell your 10-year and 30-year treasuries. you need to shorten up. you need to start buying cds, fdic protected cds. that's our preferred place for cash until rates go so high that we'll be lured back into the interest market. arturo in florida. arturo? >> caller: yes, jim, this is arturo in boca raton sending you a big boca, ba, ba, boo-yah. >> it's a stuttering boca boo-yah and fitting for this segment. what do you have? >> caller: since march the market has been on a real tear. >> smoking. >> caller: yeah, and during the same time walmart has been
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trading within a real narrow range. my question is why doesn't the street show any love dmr stock? is walmart a buy or sell here? >> people shop -- first of all i will say when i was at my walmart in weekend it was jam-packed so you can't use that kind of anecdotal evidence. walmart is the place that people think that you buy when things aren't going well in the economy. when things get better, people think that they start going to kohl's and nordstrom's and start going -- the tiffany, you know what i mean? what's going on is people who make big decisions about money sell walmart when they think things are getting better and they buy those more traditionally discretionary -- best buy, okay? that's what's happening. walmart won't do anything here. but i am a proud member of the 100 million people who shop at walmart and even though it doesn't muststock it's still a great place to go. how about mark in texas. mark? >> caller: hey, jim. big boo-yah from mark in east texas. >> east texas, man i feel like i'm back at nagadoches now. >> caller: there you go. >> hit me.
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>> caller: hey, question, if you believed that the dollar's going to go down in value with all of our debt you know against our major trading partners anyway and you want to put, say 5%, 10% of your assets in some precious metals or something, would you go with an etf like gld, or could you get better appreciation with high-quality gold stocks. >> -- okay, i want to make this point. now i feel bad for mark because he's coming in at a price where he's asking about gold. i have been recommending agnico-eagle from the 50s. it hit 70 today. i have been recommending the gld in the mid 80s it. it hit 100. i cannot recommend gold stocks. we guy gld, the pure play. and then buy agnico-eagle if you want to get a little dividend play. coming down the rhine. and if you're a speculate our buy eagle. el dorado gold. the lowest cost in the world.
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mario in california. mario? >> caller: boo-yah from sunny heights, fontana, california. >> our first caller from fontana. great to have you on shot. what's going on. >> caller: a position in visa. i've heard some good news on mastercard on transactions. and i was wondering houtoutlook on visa looks? >> you know, i'm choking here. visa is doing incredibly well. i own a fraction -- i own a fraction on charitable plus.com. my charitable trust. not a single's day pullback. both mastercard and visa are cheap. presentation in the last 48 hours. the last month's data for visa, so positive that i have to tell you, 73, maybe you buy some. not all because i think that you can go down but the month's data was incredible. the run in treasuries, is now over. it's time to sell your ten-year, it's time to sell your 30-year,
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it's time, you can believe it on "mad money on" i'm telling you to buy cds. stay with cramer! and later, feel the thunder approaching. >> boo-yahs. >> jim takes on cramericans. can he handle the pressure on a fast fire "lightening round." and later, cramer takes all of your questions. it is time -- it is time for the "lightning round" on cramer's "mad money." you say the name of the stock. i tell you whether to buy, buy, buy, or to sell, sell, sell.
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it is time -- it is time for the "lightning round" on cramer's "mad money." you say the name of the stock. i tell you whether to buy, buy, buy, or to sell, sell, sell.
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just be clear i do not know the callers or the stocks ahead of the time. you hear this sound and then the "lightning round" is on ever. are you ready, skee-daddy? it is time for the "lightning round" on cramer's "mad money." john in ohio. >> caller: yeah, jim. anyway, my stock is pgf. >> they did that equity offering. i didn't really necessarily want the equity offering but you know, look, it yields 8%. it's the same-old business. we like the pickle business. you know it's not been exciting but sometimes excitement doesn't make you money. i want to go to scott in texas. scott? >> caller: yes, sir. ba, ba, boo-yah. >> a texas boo-yah, back at you. >> caller: thank you, sir. >> texas boo-yah, a dallas cowboy boo-yah? >> caller: no a university of texas boo-yah. >> oh, man, lover it. love it. what's on your mind? >> caller: question for you, i was watch b.j. service. i be them as a very good
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company. but obviously they're gone. bhi, baker -- is taking them. is buying them. >> i think that b.j. services deal is a good deal. i think you should literally buy them through baker used. i like that deal. it is one of my favorites. i don't mean anything to slight mr. gould and schlumberger. and i like transocean. this combination is brilliant. brilliant. go to jan in florida. jan? >> caller: hey. a big florida gator boo-yah. >> oh, man, gators look great, boo-yah. boy, they're number one. the tebow boo-yah. go ahead. >> caller: i'm still trying to get to get back to even which i ordered last night. >> oh, i appreciate it. will be out in many book stores
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if not all of them. go ahead. >> caller: my bound stock is tnh. 14% since may. >> i like the 8% yield, but remember what i did is i switched and said buy potash. i did say buy right here, 94, 95. it's still right here. i need you to be in potash for capital appreciation. tnh for dividend protection. louis? >> caller: what's up, jim. ba, ba, boo-yah. >> give you a jumbotron boo-yah. >> caller: it's only the 20 to the 20, right? >> you bet. >> caller: jim, what do you think about the stanley work? >> at this point, stanley work and black & decker have had such unbelievable moves. i would like a cool 10%. but stanley works is very well run. the end market for housing's come back. no one believed me except the people who owned stanley work. craig in oklahoma. craig? >> caller: hello? >> you're up, craig. >> caller: a boo-yah, mr. cramer. how are you. >> jim cramer.
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good to have you. what's up? >> caller: i am from oklahoma. >> thank you for calling. >> caller: atfg, applied signals technology. little or no debt, positive guidance. reaching acquisitions. nice contract a month ago and even paid a little dividend. up 2%, what do you think? >> i'm not going to -- you are dealing with this company better before i make a decision. get an update on applied signal. i do not know it well enough and i do not know that acquisition so why bother to say it's great if i do not know the acquisition. we'll do more homework and come back on it. bob in florida. bob? >> caller: yeah. what's up? >> not much, bob. how about you? >> caller: all right. >> sunshine boo-yah. >> caller: boo-yah to you from happy and sunny florida. >> florida and texas, we just turned the whole show over to them. what's up? >> caller: listen to me, thank you for making us so much money. >> thank you. that was something but i'm not quite sure. how about a stock? just a thanks. all right, i will always take a thanks. about to jason in pennsylvania. jason?
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>> caller: hello. >> oh, is it dick or jason? dick. >> caller: yes. >> jason, jason, you're up. >> caller: okay. >> go ahead, what's the stock? >> caller: vp. >> vp? i owned it for from my actionalertsplus.com. i think it goes higher. why? because still the best yielder in the group. sold a lot of dispositions to make. it yield 6%. they are a better company than they used to be. i think that bp is hot! how about t.j. in pennsylvania. t.j.? >> caller: hey, how are you, jim. >> not bad. thank you for asking. how about you, t.j.? >> caller: good. good. it's the first time that i am calling. i am an investor here. >> excellent. >> caller: and i just bought eye had been watching lvs for maybe six months now. >> right. >> caller: i bought yesterday or the day before yesterday for 90-some. so what do you think about it. >> you're a new investor, t.j.
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las vegas sands is very speculative. a stock that's already quadrupled. i prefer wynn las vegas sands. i would rather see in a bp for a 6% yield. a little bit safer. a little bit more conservative because i think that you're speculating right now out of the box and i don't like that. pick up something a little bit of yield that still makes some sense or, look, if you want to speck, go buy some apple which i am still using at a much bigger higher price target. thank you for recognizing on what we do on this show. i appreciate it. curtis in kentucky. curtis? >> caller: yes, jim. georgetown kentucky, boo-yah. i'm in the game, jim. >> i've been to lexington, i've gone into georgetown. i know how pretty your towns are. visiting the old judge pritchard before he passed away. what's up? >> caller: stec. >> you're talking about derams. you're tacking about allocation. you're talking about a stock that's going higher. you're talking about the red-hot -- and i want to own for myself. how about we take one more. betty in florida. betty?
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betty? >> caller: hi, jim. >> hi, betty. >> caller: i'm betty from grants paso, oregon. >> okay. >> caller: and i thank you for taking my call. >> you're quite welcome, bet. how can i help. >> caller: it seems like i've held boeing for probably 20 years. and of course by 2008 it had lost 50% of its share price. >> right, right. >> caller: the dividend is still pretty good. 1.68 horse. right. >> caller: but i'm wondering if it isn't time to let go. >> well, i don't want you to let go right now because about to shift the dreamliner. a 3% yield. i think that you're fine. 56, 58 and take another look at this. when that dreamliner shifts you'll get more upside. too late to sell boeing. it's too early. i think place a huge bet. let it ride and get a little bit higher, then you don't stick with boeing, you just stick with cramer. >> the knit lining round is sponsored by td ameritrade.
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mad mail from dan. mr. cramer, if the deposit mandates health care, i believe it will have the effect of removing 4,000 to $6,000 per household in consumer spending. if a bill with a mandate gets passed, should i be concerned about the economy and move into defense he have stocks? i do a lot of work on this of day. i do not believe that obama has enough. he doesn't have enough votes. i'm not -- i don't think it will be put off medical after december. that said, if what you describe happens, absolutely, which is one of the reasons why i hedge my bets for my chair itable trust, and i own a stock like a pepsi. it's why i own an altria. i fear our taxes will go up and slee the economy. that's the way you play it defensively. here's one, dave, from new york. cramer, thank you for all you do for the little guy. you're quite welcome, dan. now that the market is moving up, up, up, what is the story
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with the reinstatement of the uptick rule? has everyone forgotten about the immediate for this? thank you. i think that mary shapiro, the sec, and i have talked a lot of behind the scenes work here too. i think they're trying to figure out what the right thing to do is. i have to tell you that i think the bear rate could come back very easily right now. we immediate it only -- it slows the selling process down, and that's all we need is to slow it down so cooler heads can prevail, and i think great to bring it back then. boo yeah, jim. i have the fortune to purchase sml sdx during the market meltdown. i sold 234u6 during the summer that i'm plush with a house of money. i don't want to be a pig that gets slaughtered. eric, don't sell. you are in the enviable position that where he all try to get many. don't destroy it. you are playing with the house's money. let it run. see, you can't lose. >> i have been a big fan of yours. i own all of your books. i can't wait for your new book
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to come out. that's called getting back to even, and it's out in about a month. tony, you are what's known as being overly diversified. i always have to call people like you a mutual fund. remember, you have to cut down to the number of stocks that you can research. remember, it's buy at homework at mad money. spend a couple of hours on that portfolio. you don't have that because you would have to spend an hour per stock. you would be doing nothing but look at the stock. here's what you want to do. i want you to cut. if you have two in one sector, take the best one and sell the worst run. get down to five sectors, and with two per sector max. that's how we have to do. here's one from ian. hey, jim. i'm 19 years old. great. new to investing. since i have started, i have been booked on mad money. thank you very much. i have some stock in yahoo at the moment. it's a few strong days that i have been hearing arguments for selling against the grain.
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please help. i doechbt like -- it means she's treeing to do a good job. i believe in a good operator. let's see what she does. mad money back after the break. - ( classical music playing throughout ) - wireless can bring
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i want you to buy stock on that. stay right here on mad money. sell treasuries. i'm jim yamer. see you tomorrow.
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