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tv   Mad Money  CNBC  September 18, 2009 6:00pm-7:00pm EDT

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i'm jim cramer, and welcome to my world. >> you need to get in the game. >> firms are going to go out of business, and he's nuts. they're nuts. they know nothing! >> i always like to say there's a bull market somewhere. >> "mad money." you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i want more weeks like these. my job is not just to educate but to entertain. so call me at 1-800-743-cnbc. every investor needs to have what's known as a worldview.
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a basic idea about which way the economy and the big trends are moving. now, i'm what's called a bottoms-up guy on wall street. i look at the big picture macro economic numbers that come, the housing starts, the commerce department. but i mostly form my opinions based on what individual companies say. typically, when they speak in their quarterly reports, and certainly on the conference calls. every week i perform a checkup on my own investing ideas, for instance, for when i run my charitable trust, actionalertsplus.com. i use this worldview to figure out what i should be buying and what the companies are saying. so let me give you my game plan for next week. first -- this is really important because it's a very -- it's a strange week, how important at the back end it is. and the most important quarter of the week, if not the month, will be research in motion.
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okay? this is the key to our game plan. research in motion, you know it as the blackberry, reports after the close thursday. now, you know apple's smoking. i'm reiterating my $264 price target on that one. and he with know palm from last night sold a stunning 800,000 units of the pre. i was looking for 600,000. that's palm's hottest smartphone. that proves all the rumors about weak sales wrong. with research in motion we'll be looking to see if the smartphone market is still growing by leaps and bounds. or is this just a company that the others are starting to take share from? in other words, rim will tell us if the mobile internet still a talk befr week here, with a 400-mile-per-hour wind and gaining strength, or has it been downgraded to a tropical storm? rimm is the single most controversial stock in the universe of cramerica. now, it is one we got behind early on when the show started
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and i think maybe we stayed too long. that said, rimm's up 20% in the last 20 days. that means i can't prudently recommend it to you ahead of the quarter. that's too much of a move. instead what we're going to do is use rimm's quarter, what they say, as a gauge, nothing more. rimm is what we on the street as well as cramer fave jordin sparks call a battlefield, a place where you'd better go get your armor because you have no edge whatsoever. every single hedge fund already playing rimm. up or down, long or short, calls and puts. that's a lot of serious firepower focused on one stock. you don't want to step in there only to be blown away by some short-selling howitzer. that's why we'll just use rimm as a way to measure the strength of the smartphone market. i've learned this. sometimes knowing when you can't win, like with gaming, research in motion after the close on
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thursday, is a huge part of being a great money manager. thursday not alone. perhaps one of the most speculative names, i watch the tape on cnbc every day, what people are buying. rite aid. symbol rad. i got that little break there. just a second. rad. this one reports thursday and everyone's going to be playing this one for, you guessed it, the flu. we've got an especially strong flu season in the works with an added swine kicker. rite aid on a percentage basis is up big p. and while the company's been improving its liquidity position, that's wall street gibberish for it's not about to go bankrupt. rite aid has only been focused on staying alive, not investing in its business. meantime, its competitors, very well capitalized, have been aggressively revamping their stores with new initiatives like the one at my walgreen's next door to me. medical kiosks, cubicles with nurses to help capitalize on the
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flu angle. some would say rite aid's cheap. i think it's a distant third compared to walgreen's and cvs. i don't want you to be sucked in here. i think rite aid should be sold the day before it reports. these people are serial underperformers. we done want to be part of the hype. if you want a flu play, buy quality because in the event it doesn't make money you'll make money with walgreen's and cvs. i need to you invest like a prorks an schmo. tuesday and wen two big food companies everyone's familiar with. conagra. cag. we had the ceo on recently, terrific. and general mills. that's ken pal. and that's another great manager. what are we looking for with these? are we trying to gauge their earnings? no. we're looking for signs of what's called rotation. food stocks are known as defensive stocks. people buy them when they think the economy is getting worse because their business holds up no matter what. you buy cheerios no matter what.
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if either one of these stocks move up big when they report and if both of them move up big, you'll be able to tell the play into the recession plays has begun. and i will tell you on wednesday night that you have to cut back on the cyclicals, companies that do well when the economy does well, caterpillar, freeport, illinois tool, bhb. everyone's always wondering what's cramer going to say if these companies move up? you can bet that night i'll tell you that freeport is overvalued. trust me. you do not want to own a whirlpool or fortune brands which just this very week -- if peanut butter and cheerios start run pg p some companies are great forecasters on entire industries. they give you the temperature of the whole sector. when they report you've got to pay attention. what i'm looking for is air. that's the symbol, a-i-r. the symbol of the company is aar. this is an incredibly well-run company. it reports on tuesday. the symbol is air.
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okay? again, i'm going to clear that just so you have it. air. now, this company has always given you the greatest tenor of the aerospace industry. do i care whether you buy or sell this? no, i just want you to learn from it. given what's happening, yesterday amr got its couple billion. the big aircraft leasing merger this weekend. we're going to be paying incredibly close attention to see if we can come back and recommend the controversial stock boeing. how about wednesday? another really interesting tell here is, again, just a collateral damage, non-damage tell is auto zone. now, i have not been recommending auto zone to you, but i have been recommending monroe muffler, mnro. we had mr. gross on, the ceo. it's now more than $10. it's a 56% win. i've got to figure out whether we should let it ride or not. if the auto parts market is strong, which is what auto zone will tell us because they're the biggest, i will reiterate that
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monroe muffler should be bought. and the work i'm doing now is done in conjunction with brian ashtonberg, the unbelievably good writer of the breakout stocks newsletter at thestreet.com where i'm chairman. he has had the bead on it. i'll watch what he says on it too. we've got a reality check coming on wednesday. all right? now, of all the stocks i mentioned this is one i'm actually recommending to you. pay chex. paychex reports wednesday. that's a payroll'll company and it's a reminder of the power of the xanltly high yielders. 3-4.2% yield. you don't buy this tuesday for wednesday. we'll be gauging the strength of hiring. they have a great handle on the small to mid size companies in this country. i think it's more important than the unemployment claims number that comes out thursday. now, i wouldn't buy it ahead. i don't want to own it for my charitable trust. okay? i would buy it lower. i would suggest you wait.
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finally, retail helped us out of the jam we were in at the beginning of march. the stock has been leading from the whole way, the first one to turn was bed, bath & beyond. bbby. that's a houseware store with a lot of pizzazz. they report wednesday. the original bed, bath & beyond is down a block from me. and i've got to tell you something. i have always concentrated on this company as a leading player. i like the symmetry. the stock just hit a 52-week high. if it goes down when it reports, it might be a sign that perhaps retail, after an amazing run, is peaking. i don't believe it will. and i think that they had an amazing back to school season, not just because we spent a fortune on my daughter there. get the synergy there? the bottom line, the game plan for next week is to watch rimm because we're going to gauge that internet tsunami, we're going to follow the conagra general mills food complex to see if we've got to get out of
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the cyclicals. we'll watch paychex to gauge the strength of hiring, and bed bath to see if retail may at last be speaking. sell your rite aid if you own any the day before. a lot of you are speculating in it. and keep an eye on auto zone, azo. if it says the auto parts market is strong, then we're going to reiterate our buy on monro muffler. let's go to sarah in florida. sarah. >> caller: hey, jim. boo-yah from west palm beach. >> another place i wish i were. actually, we had nice weather today. what's on your mind? >> caller: first i want to tell you i love your books, and i'm really looking forward to the new one in october. just wish you'd written them 30 years ago. >> this one, i have to tell you, the one that's coming out next, in order of difficulty, the easiest one is this one, is the first -- is "jim cramer's mad money." then this is personal finance. this one that many people consider difficult, "real money." the next one is a challenge. i give you every single thing i knew at my hedge fund, which everyone's always said why doesn't he write that? you're going to get it. how can i help? >> i'm looking forward to that.
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my question is yesterday you suggested we move cash out of treasuries and money markets. >> definitely. larry kudlow was kind enough to pick that story up in his great show this morning. i felt terrific about that. go ahead. >> caller: well, it was very interesting. today was reading about market linked cds that have variable payouts tied to underlying assets but still have their principal insured by the fdic. i was wondering on what your thinking was on these products for holding cash as compared to a traditional cd? >> as long as they are protected by the fdic, they represent a legitimate alternative. as we focused on yesterday, i felt treasuries had interest rate risk. they didn't have safety risk. as long as you have something that has no interest rate risk that's fine with me. we're looking at the internet tsunami through rimm, conagra and general mills to see if we're going to have a rotation. bed bath, is retail still alive. sell rite aid and watch auto zone. "mad money" will be right back.
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memo to kraft. that's right. kraft foods. you guys are making a huge mistake trying to buy cadbury. come on! we want food that's good for you, not candy that's bound to be the target of a snack pack
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someday, especially given that the bolsheviks have seized -- especially given that the democrats have run washington and i know that politburo leader nancy -- i'll get this right. the speaker of the people's soviet -- the speaker of the house would like to implement one of these taxes on candy and this junk. kraft and by extension any other serious player in the food space should forget about candy. mergers and acquisitions are heating up again. and i've got one of the best takeover targets in the food industry, and that name is hain haines. that's right. hain for all you home gamers. people want natural and organic foods. they want stuff that's healthy, or at least seems healthy. and that's hain! it's got numerous different products across the whole spectrum of natural foods and personal care.
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celestial seasonings tea. of course you know that, right? come on. sleepy time. that stuff is really good. here we go. this is one i buy. leading natural specialty brand. earth baby food. come on. you're going to feed them that other stuff? carrot chips. wow. general cho's got his own line. condiments, oil, butter substitutes. this is a play on all the people who are going not just vegetarian but vegan and replacing everything dairy with soy. and as sad as that trend may sound, and believe me, it is sad, as a dad who struggles to find anything that my vegan kids will eat anymore. we used to go to friday's. hain is the future. past? cadbury. future? hain. speaking of past, steak too. i want a shotgun wedding between kraft and hain. why? because as we know from stock seer and also at one point
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deathly too pregnant singer m.i.a. "paper planes," shotgun weddings make us money! oh. i thought that would be a good place to play the music. anyway, when i look at food companies, there's one purely and absolutely anecdotal measure that i like to use to measure a company's importance. and you know what that is? it's called sell space. that's the equivalent on that basis of horse sense. these companies are all involved in grueling trench warfare fighting tooth and nail for inches and feet of space in the supermarket to sell their products. so what did i do? in the essence of empirical and scientific evidence i had my research team visit two grocery stores in new york city last night, grastitie's and whole foods. okay, maybe not the broad spectrum of where the american consumer is shopping but it tells us something about where the affluent consumer shops and therefore where the rest might be eventually heading. in grastiti's cadbury products
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occupied just two path tic feet of shelf space. and all the stuff that's bad for you. the snacks and candy -- okay, maybe hall's isn't bad for you. i was thinking if this was world war i this would be like luxembourg. how about heain? 52 feet of shelf space. soy and earth's best celestial tea. and bread shop. that makes hain a great power. maybe france, maybe germany when it comes to the supermarket wars at least. the results at whole foods are even more telling. whole foods represents the vanguard of all that is healthy. it's organic food nonsense making people so much money. it's the high growth grocery store. and others are trying to imitate it at least in terms of the products that they carry. so how did the fight for aisle space look in whole foods? we went to the whole foods in union square. get this. cadbury didn't have any shelf space at all. here's cadbury in whole foods.
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now, while whole foods carries natural and organic foods and would therefore not be a cadbury customer, the fact that such a well-performing chain like whole foods would leave cadbury off the radar screen, i find it telling. hain, on the other hand, seemed to absolutely dominate the shelves of the store of the future, which is even better than the chef of the future. here's the stats. 17 feet of celestial tea. 17 feet. 35 feet of rice dream and westsoy. that's unbelievable. 40 feet of space for earth's best. in total hain had 220 feet of shelf space at one of the most packed supermarkets in new york city. and who -- we know from the company's conference call that it sells about 40% of whole foods snack foods, a pretty fabulous position. have you had these yet, the stripes and blues? i caught a couple of them off long island the other day.
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there's nothing scientific about this method whatsoever. it's not representative even of all of new york city, let alone the tri-state area. but it does help us understand that buying cadbury -- here's the shelf space. cadbury. kraft is doing -- it's got outmoded thinking. it's buying candy that rots your teeth, makes you fat, and though it may be a wives' tale gives you pimples. if it bought hain, it would be buying itself a huge chunk of business at places like the future whole foods, high-end organic place that's are growing much faster than the average supermarket. this is -- you're looking at the future. kraft's wrong. "mad money's" right. suppose kraft management watches the show and manages to take my advice. what would they -- or and maybe another acquirer be willing to pay for hain if we just used the same multiple kraft is paying for the one without shelf space, cadbury? if we had to slap the same 11.6 times earnings before interest, taxes, depreciation,
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amortization that cadbury's getting on hain? the acquisition would cost $1.3 billion. do you know that's a 38% premium to hain's current enterprise value? $17 stock worth 26 to an acquirer. better than a sharp rice dream in the eye. that would still be so much smaller than cadbury that kraft could buy it with both. i would certainly buy hain first. wow, this stuff is so good. i had it in my coffee the other day, you couldn't tell the difference between this and battery acid. i'm not the only one who thinks this is a good idea. just check out yesterday's "new york times." despite their prices, gourmet teas thrive as global economy sags. which of course i would have written differently. i would have said expensive global teas thrive by hain, but that's because the "times" doesn't write for your audience. there's more to hain than an appealing takeover target. and you know on "mad money" we never speculate on takeovers unless the fundamentals are sound. wow. the fundamentals at hain are
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terrific. jalapeno chili blue -- talk about what they'll be eating on mars in 2040. despite a tough environment in fiscal fourth quarter which ended june 30th. hain was holding out thanks to solid execution and a focus on its core brands. sales for full fiscal year up 7%. 10.8% adjusted for currency. hain is focused on expanding the number of stores it sells to. great growth. it's selling more to current customers, too. it's trying to get, you got, it more shelf space. it's aggressively pushing its tea business. we know that, right in it's got new lines of tea, relaunching its green tea while moving into so-called wellness teas. hain's also got a whole bunch of new products rolling out. i mentioned some of these exciting terra chips, yukon gold. these are already in 2,500 walmarts. expansion of its gluten-free --
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my sister's got that gluten problem. it's one of the fastest growing foods in the organic channel given how many people have celiac disease and can't process glute penn hain also has the new martha stewart line of natural cleaning products launching this fall i think that's going to be huge. i reiterate my buy mso. 15% long-term growth rate. therefore the stock's underneath the grote rate. the growth rate's underneath the pooep that's perfect. the big food companies have roughly similar multiples but with half the growth. half. which means i think hain could eventually double on its own even without a takeover bid. here's the bottom line. hain celestial is winning the aisle for space in the supermarket. its organic and natural products are the future of food. not cadbury's potentially fattening, cavity-creating cavities. kraft, a company badly in need of "mad money's" help, should be trying to buy hain instead. and if they don't, i wouldn't be
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surprised if somebody else doesn't take a shot at it. that's why i think that hain is a buy buy buy. after the break, i'll try to make you even more money. ♪ i drove my first car from my parent's home
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in the north of england to my new job at the refinery in the south. i'll never forget. it used one tank of petrol and i had to refill it twice with oil. a new car today has 95% lower emissions than in 1970. exxonmobil is working to improve cars, liners of tires, plastics which are lighter and advanced hydrogen technologies that could increase fuel efficiency by up to 80%.
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for speculation friday i want to put a spotlight on the speculative tech stocks that have been left behind. i call them the forgotten tech specs. actually, there's really only one of them. and the name is tekelec. tklc. tekelec. while the stocks in the mobile internet index i created on august 11th, that was a way to measure the smartphone revolution. they're up an average of over
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13%. s&p's up about half of that. 7.5%. tekelec is flalt since i created the index. flat. that's a travesty. by the way, the speculative stocks i've recommended since early may, they've done even better. they're up an average of 30%. that's leaving my new fave tekelec in the dust. it's an underperformer. but i think it has what it takes to become a 57 variety heinz catch-up play as in c-a-t-c-h. catch-up. i like these speculative tech stocks. i really do. and as part of a feel bet on the guts of the mobile internet it's terrific. it's either smartphone components or wireless network equipment makers. in a field bet like i discussed in "jim cramer's real money: sane investing in an insane world." and i elaborate on in my new book kimming out next month "jim
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cramer's getting back to even:your personal economic recovery plan." you take a basket of stocks in an industry you think is going to roar. tekelec should be part of your mobile internet basket. precisely because it's the stock that hasn't gone anywhere. therefore, i regard it as undiscovered versus the rest. i think it has huge up side. the stock's massively undercovered by the brokerage houses. only seven analysts follow it. only one of them likes it enough to give it a buy. i think that's nuts. when you consider the fundamentals i'm about to run down for this company. tekelec is a telco equipment supplier that produces equipment for a particular kind of business that you and i both know, or if you have kids you know is red hot. transmitting text messages. and also managing voice track on wireless networks. but text is so big. technology also, this is another one for those of you who've ever switched carriers. it lets you keep your phone number when you switch carriers. that's called local number
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portability. 35 prs share. that's gigantic. these are all the things wireless providers have to buy in order to build out the mobile internet. you know we've talked about how we just don't have the infrastructure to support so many smartphones, especially those bandwidth-hogging iphones. tekelec helps the carriers deal with that when it comes to text messaging and talking. okay, maybe it's not as sexy as video. but it's still vital to the growth of modern wireless networks that can support the mobile internet. text messaging, we know that's gigantic. in the u.s. messaging traffic at at, verizon, and t-mobile was up 12% from the previous quarter. up 80% over the previous year. with maybe a little under half of that coming from my kids. don't you want to own the company with the tech that's making texting possible? okay, cramer, i hear you saying. if tekelec is so great, how come it stunk up -- why has it lagged all the other stocks you recommended? simple. tekelec got crushed from august 4th to august 6th after reporting earnings.
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the stock has yet to recover from that sell-off. it's more than a month ago. it sold off after reporting a 4-cent earnings beat. in other words, better than expected. delivered in-line guidance. but there was a flaw. a lot of the damage was caused by investors who had caught the run in tekelec from $11.30 to $19.64 and i think they were taking money off the table. problems with the quarter? okay. even though demand in emerging markets has picked up, developed markets still haven't gotten off the ground like us. i'm not worried here. tekelec saw some signaling orders coming from companies like verizon. att, that stock did well today. and we know they've only just bun begun to spend on the mobile internet buildout, which is why tekelec's management expects order trends to improve in the second half. i believe tekelec. i think the real reason, frankly, for tekelec's pole-axing has to do with india, which has the fastest-growing wireless network in the world, something you might have had a hint of if you watched "slumdog
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millionaire." tekelec's business was supposed to launch nindia bit end of september. it didn't. by now it's expected to happened by the end of the year. fingers crossed. as tekelec already does business with five of the top seven carriers in india and controls more than a third of the market for local number portability, india should be gigantic for them. that's why i don't mind the delay. i don't think delay matters. tekelec wasn't expecting local number port lilt in ibilt to hi income statement anyway. the delay will not hurt numbers. i think this is the time. international opportunity still very much alive with the u.s. now picking up, tekelec is, yes, a speculative buy. there are ten more countries implementing local number portability in the next two years -- argentina, brazil, china, chile, ecuador, peru, russia, thailand, turkey. come on. >> tall aboor! >> buy buy buy! >> on the text messaging side carriers are getting even more
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competitive. sprint coming out with the plan, unlimited e-mail access, texting, and gps navigation $70 a month. i may have to switch to that. that's the lowest price yet. sprint's desperate for business but the other carriers will likely so to follow suit and that means more business for tekelec's equipment. tekelec say $16 stock and has $4 in cash it has no debt. you back out the cash, 12 times earnings. there's not a whole lot lower the stock can go without starting to attract real buyers, so to speak. it can lek's expected to earn a dollar in 2010. i think that's conservative. i think you can go with $1.35. that would make 16 times earnings, the current multiple, get a $21 stock. but if it gets a higher more reasonable -- i could argue 20 times. $27 stock masquerading as a $16 stock. that's maybe as much as a 68% gain. remember, it's speculative friday. here we go again. small stock. use limit nords. nothing else happening in this company other than what i'm
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telling you about. if it jumps that's wrong. you've got the weekend to do the homework. it's why i try to say speculation friday so, you can't just dive in tonight and buy after hours for the next morning. you have to think about it. think about it all weekend. it's a taft hartley-like cooling off period. here's the bottom line. for a mobile internet play on texting and switching numbers that's got a ton of international exposure, that hasn't moved, unlike all the other stocks in the index put together, take a look at the forgotten tech spec. take a look at tekelec. tklc. john in north carolina. john. >> caller: okay. big jim, i want to give you a big barbecue boo-yah from eastern north carolina. >> oh, man. i've got to tell you. one of the -- when i first started the show, someone sent me some barbecue just from that area. you are dead right. it topped even pierce's, which is from outside william and mary. and it's darn good. what's up? >> caller: okay. jim, my stock is tqnt. triquint semiconductor. my background on that is about
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2 1/2 months ago you mentioned this stock and you said it was kind of under the radar screen, that the big boys hadn't picked up on it yet, but it looked like it had good potential. and so i bought it, and i'm sitting on a 23% gain on that stock. and i reckon my question is this -- the rating agencies are not hot on it. but you know a lot of times they are wrong. >> yes. >> caller: i'm still holding here -- >> john, i think you're right. my, triquint, my friend dave peltier who does stock center news 10, says it has a 20% move. that is not enough. i'm not being greedy here. triquint, they can be higher. i think tqnt, until it gets to $9, i want you to keep riding it. congratulations for buying it after the show. we hit one good there. let's go to ed in texas.
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ed. >> caller: here's a big boo-yah from austin to you, jim. >> man, we keep going back to the university of texas. and how much fun did we have there? and there was that big cow there, man, had i to show him. the steer. i had to show him who's boss. that was the most scared i've ever been. >> caller: his name's bevo. >> yeah, believe me, bit time i was done with bevo he was begging. i had an mm on his side when -- >> caller: it's a small world. i used to live in englewood, new jersey. >> debt o >> get out. we're neighbors. >> caller: united online. they got beat down 45% like most other techs when the whole meltdown happened on wall street. now they recovered up to about down 20%. they really climbed leading up to the last earnings. they only surprised by two cents. so they're kind of in the middle. and i'm wonderfuling what you're thinking for the next earnings report coming up in november.
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>> first of all, this one is run by mark goldston, who i have a lot of faith in. i think what he has to do is try to make something, though, out of nothing. i don't think there's much here. i think you should put your money in one of the more exciting internet plays. stick with mobile internet. i'm talking about triquint, tekelec. let's get a little bit p up side from growth. your name doesn't have it. as much as i like mark goldston. the mobile internet space on a tear. tekelec. do the work this weekend. if you agree with me -- >> buy buy buy! >> and stay with cramer. coming up, get instant access to the prodigy of profits on an all new "lightning round." and later, find out what's got cramer all fired up on the "outrage of the day." all coming up on "mad money." ♪ look at this man
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♪ so blessed with inspiration ♪ ♪ i don't know much ♪ but i know i love you ♪ and that may be ♪ all i need ♪ to know (announcer) customers love ge aircraft engines almost as much as we love making them. innovation today for america's tomorrow.
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r click today. it is time! it is time for the "lightning
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round" on the cramer's "mad money." you sate name of the stock i tell you whether to buy buy buy or sell sell sell. just to be clear i do not know the callers or stock questions ahead of time. my staff prepares the graphics graphics on the fly. we play until we hear this sound. it means the "lightning round" is over. time for the last "lightning round" of the week on cramer's "mad money" and we start in ohio. >> caller: boo-yah, jimmy, what's up, man? >> hanging out. how are you? >> caller: i'm doing great. tell me about ebay. >> ebay, 52-week high, own it for my charitable trust. think this thing has real momentum. they made a lot of changes, management's really good. i think ebay goes to 30 or -- >> buy buy buy! >> frank in new york. frank. >> caller: yes! >> go ahead, frankie. >> caller: okay. jim, this is frank from queens. boo-yah. >> from queens. love it. love it. i like 172nd and 3rd there, that parish. go head. >> caller: okay. with the economy improving, jim, that means rail shipments should go up. shouldn't trinity participate in that since they make rail cars
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and do maintenance work on rail cars? and secondly, they have asphalt and cement business -- >> you know what? yes. the answer's yes. we got beat up on this. one of my big mistakes on this was i said to ride this one. i was wrong. but at this point trinity is right. dave in oregon. dave. >> caller: jimmy. >> hey. >> caller: hey, boo-yah from oregon. >> good to have you. hit me with the stock. >> caller: born and raised in summit, new jersey. >> can't beat that. go ahead. >> caller: solera. >> i like covid yen. i want you to make a stop. i want to go to mariam in florida. third florida call. mariam. >> caller: hey, cramer. how are you? >> not bad. any university anymore, but i wanted to know about boom, b-o-o-m. >> materials and explosives.
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let's say we can -- >> buy buy buy! >> infrastructure spending coming back. i had disliked that stock since the 30s. i am now warming up to it. i like the boom room. how about brian in illinois? brian. >> caller: hi, jim. this is brian from plainfield, illinois. >> excellent. >> caller: i'd like to give you a big southern illinois university aluki boo-yah. go dogs. my stock is manitowoc. >> i've disliked manitowoc. but my friend ron insana who does market movers at thestreet.com where i'm chairman, he likes it. i still want to be in caterpillar. mtw's had a big run. i think they need to confine their balance sheet. i'm not a buyer of manitowoc. i'm a buyer of caterpillar. and the "lightning round" is over! hey, i'm cramer.
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welcome to "mad money"! >> the gloom and doomers 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. >> let's cut right to the chase. tonight i'm going all jimmy appleseed. ♪ right here, right now i am rising my apple $200 price target. ♪ and we used to play to 264. how do you like them apples? >> flextronics. man, that thing is -- that is like a pornographic -- i've got to tell you. sometimes my heart stops when i see a chart this beautiful. this chart's so pretty. this is the mona lisa of charts. this gorgeous chart. i waited in that darn louvre for
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two hours to see something that wasn't nearly as good-looking as this. okay? >> big ba-ba-ba-boo-yah from the big d, dallas texas! >> hey, let me give you a jumbotron boo-yah. >> boo-yah from mark in east texas. >> east texas? i feel like i'm back in nacogdoches now. >> send you you a big boca ba-ba-ba bah boo-yah. >> a stuttering boo-yah. i think it's fitting for the segment. >> a blue and gold san diego chargers boo-yah. >> rivers was my starting quarterback boo-yah. he'd better deliver because i'm only up six -- what's up? >> what's up, mark sanchez? sanchez looks great. i was just going to go out to illinois to see if urlacher's okay. >> boo-yah! >> let's hope donovan gets better soon boo-yah back to you. >> do you have an injury update for mcnabb? i hear it's day to day. >> i haven't heard a thing.
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bea, traders are always hungry for ideas. trading is all about strategy. and strategy... is all about information. heat mapping shows me where the money's moving. twenty five hundred stocks... one quick look. that's where the action is. plus, this amazing gadget... it's called the telephone. i can call td ameritrade anytime and talk trades, strategy... anything. td ameritrade. built by traders, for traders. this is what i need. announcer: trade commission free for 30 days, plus get 100 dollars cash, when you open an account.
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so now we see, now we see what can make the s.e.c. get off its collective duff and act with
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alacrity. flash trading. yeah. something, frankly, as insignificant as flash. yet they moved with lightning speed. they jumping jacked and grandmastered i would revel at the irony, if not the comedy of it, if the situation weren't so outrageous. i have seen the individual investor abused nine ways to sunday. made into total carreon for the big boys, the sharpsters, the bookies, the mouth box. everyone who could get a gross credit out of a guy, where the bad guys can make big money, cherry picking. seen it happened. i've watched the individual be gapped over and over and over again and prayed the sec would take action. needless to say those prayers always went unanswered unless the answer was, we don't care. and we're not doing our jobs.
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i have seen the sec bless products like any of the ultra etf travesties out there that abuse individual investors simply because this commission is so unsophisticated that it didn't understand how these ultra etfs work. it still doesn't. oh, and boy is this sec unsophisticated. this is the organization that didn't even have anyone on staff who understood how madoff purported to be making his money trading options, because if it had, the sec would have known he was lying immediately as the options market doesn't work any way like madoff told them it did. madodoff had to be laughing eve time he spoke to the sec. t the sec eliminated the uptick rule, not prosecuting short selling and it ultimately cost taxpayers hundreds of billions of dollars in bailout money, sec's fault. this isn't the sec that slapped
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bank of america on the wrist. the shareholders are going to have to pay for that money. it should have been right to the executives. i don't get it. that money belongs to the shareholders. it should have been taken out of the hide of the people who ran bank of america. the settlement was so bad that a federal judge simply couldn't even live with it himself. i have never seen anyone reject a settlement between the government and a bad guy like this. what did the sec move on instantly? what did they take on after a "new york times" investigation? flash. they want to ban flash orders. these are orders that allow sophisticated high frequency traders to take advantage over a millisecond maybe over other
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sophisticated high frequency trader with slightly slower computer. it means a millisecond of slowness compared to multiple seconds a few years ago. this is actually a park of the market that's working, unlike all the other parts that were broken sec didn't address. and this is where the sec decides to make their stand? what a bunch of tough guys. what a comment on the sec. i guess now we know what their priorities are, and their heads. probably someplace, well, let's just say -- the wrong place. they can deep six the up tick rule to curb people. the sec is lucky the market has been good lately. they know how to move and move fast when it doesn't matter. good work, sec. now it's time to start tackling the real issues, helping home gamers who watch "mad money" get
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a fair shake while putting the actual bad guys away. is that too much to ask? >> now you can find each full episode of "mad money" on iphone and down load it for free. take it with you on the go. get "mad money" on iphone today. welcome to the now network. population: 49 million.
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i want to wish a happy new year to our jewish and nonjewish viewers alike. i always say there's a bull market somewhere and i promise to try to find it for you on "mad money." see you monday. up next, just say no to federal cut pay curve and let andrew hall run citigroup. the stock market rally people love to hate. and it ain't over yet. and beat the high tax man. take your income now. here you go. eleven sixteenths... (announcer) from designing some of the world's cleanest and most fuel-efficient jet engines...
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