skee-daddy, at&t. i'm not kidding. yeah, plain old at&t. it looks like a developing masterpiece. a thing of beauty. a rembrandt befitting its classic nature. although i have to admit without these technicians i thought we were staring at a rothko or a jackson pollock. but according to these guys, at&t is a real dutch master. we've got to take some down to written. what do these technicians see s that i can't? what kind of chart appreciation as opposed to art appreciation do they have? let me give you the critique of dan fitzpatrick who's a regular on cnbc and writes a column with me on real money, the paid side of thestreet.com where i'm chairman of the board. dutch master. remember that scene, that dutch master thing? like the rembrandt? cigars? ever since last october att has been building a base. okay? technician speak for treading

water, actually. the stock old off to 21 in the absolutely horrendous market that was last year. this was really one of the ugliest breaks i've ever seen. people were panicking. that was the low. and for eight months every time att would pull back this year, the level bargain hunters would come in -- see, they keep coming in. every time it pulls back, bargain hunters come in. okay? but it was still under pressure as every rally to the mid 20s was sold. with its 200-day moving average marking the effective top. see, every time it got to that level, boom. sold off. boom, sold off. boom, sold off. boom, sold off. that's what chartists are looking at. it stayed below that level to the breakout. now, the breakout just started in late july. all right? but it hasn't taken off yet. see, then att rallied above. remember, this is the 200-day moving average. rallied above the 200-day moving average.

and this time stayed there. didn't go below it. didn't violate -- this would have been a violation. it didn't violate. we've now reached a point where investors are buying on every pullback back to this line. every pullback they come in and buy. this line was resistance. the ceiling where the stock used to sell off. now it's support. the floor. where sell-offs end and buyers come in aggressively. that's real technician speak. ceiling, floor, support, resistance. so the chart says buy att. the big institutions are gobbling it up. so my question was what do they know? why do they like it so much? what's happening in the fundamentals to form this dutch master? and i think i've got the answer. yep. at&t is the chicken way to play the mobile internet tsunami. you can be in the tsunami because of att's iphone exposure, which makes it the telco company that's most levered to the mobile internet, but still be tethered to the mast courtesy of the stability provided by att's bountiful, beautiful, safe 6.2% yield. that's why the big institutions

are buying it. they're chickens. they are. the big institutions are chickens. but i'm going with them for you if you have not been making any money in this rally and you've been looking for something to buy. this company made the brilliant decision to be the sole distributor of the iphone before it had even seen the iphone. that's how it became the most levered to the smartphone revolution. att is the hot product and that's all that matters. this is the nice safe way to play the mobile internet. and we love that. last week randall stevenson, at&t's terrific ceo, made an incredibly bullish presentation at the goldman sachs communeicopia conference. how clever is that? when i first heard of that -- like about 20 years ago. communicopia. how cool, huh? anyway. the big boys heard him loud and clear and that's why they're buying the stock. previously they hadn't believed the mobile internet was big enough to move a company the

size of at&t. even with the iphone. but stevenson made it clear in his talk that this company is absolutely caught up in the tsunami. unlike verizon, which only owns half of verizon wireless, at&t's wireless business is all its own. the largest component of the company representing 43% of the company's revenue. and the wireless business is on fire thanks to the iphone. now, let's quote steven. sometimes what you have to do is say how did it get there, what made it do that? you're about to hear the quote that made it do that. stevenson said growth rates are accelerating. the end of the market where we are getting the kind of growth is the end market where we want to be strong. it is the high end. and so not only are we -- this is his quote. not only are we getting good subscriber growth but we are getting good solid arpus and -- don't woirks we'll get to arpu in a second. a lot of this is driven by the iphone, end quote. this past quarter at&t's average revenue per user, arpu, from

data was up 26%. that is just unbelievable. that's what moved this -- that's why this went up. because stevenson was bullish right here. now, there are over 108 billion text messages sent in the att network in the second quarter. nearly double the amount sent in the year before. only 43% of them sent by my daughters. no. well, you get it. att netted 1.4 million additional wireless subscribers for the quarter. he said the company's on pace to add even more subscribers in the third quarter. again, what are they hearing? they're hearing an acceleration. that's what made it go so that this line became the floor instead of the ceiling. wireless is where the growth is coming from. but that's not the only reason i like the stock. if the wireless business was tethered tie land line business that was still getting weaker,

then it could nullify a lot of the strength that this chart's saying the iphone's showing. but at&t's land line business gloriously stopped going down in the second quarter. it was flat for the first time in nearly two years. if it starts going up and the economy improves, i say voila, big numbers, boom. $30 a share. okay? then there's uverse. at&t's video initiative. which stevenson described as the holy grail. in the second quarter uverse tv had 248,000 net subscriber additions, reaching 1.6 million total subscribers. now, during the goldman sachs communicopia conference stevenson talked about the huge opportunity in bringing content to three screens -- your tv, your pc and your phone. this is something at&t and verizon can only really offer leaving satellite and cable competitors in the dust. all welcome on the show. because those guys are very prickly when they hear that stuff. everybody's welcome on the show. everybody. and their brothers. the numbers here are already strong. according to stevenson of the customers that buy u-verse about 75% of them are buying a triple or a quad play, with wireless

included in. it's very bullish. att, here's how the bottom line is going to get better. it ale cutting its capital expenditures. in the first half its cap ex budget was 7.4 billion compared to 9.6 billion in the first half of 2008. don't worry, they're not stinting. because even as the company scales back it's still aggressively investing in new towers to try to stop all those dropped calls and build out its wireless network. you have to do that because the iphone's a real data hog. remember, we like american tower and sbac communications as tower plays. finally, the thing that makes att the absolute safest mobile internet play is that dividend. it's got a 6.2% yield. accidentally high because the stock's come down. better than you'll see on any mobile internet play by far. and the company is totally committed to protecting and securing the dividend. stevenson said that's still the first priority in terms of cash generation. they always raise -- well, you never know to say ams but stevenson's been the big

defender of the dividend. the highest yielding play on the tsunami and they've been buying ever since. hence this nascent rally from the chart. and remember, you haven't missed anything. think about it. look where the stock was. look where this stock was. now, here's the bottom line. i think the chartists are right. all four of them. i think that fitzpatrick's work here says, as we would say in the business, counts to 30. it counts to 30 right there. okay? it's a screaming buy thanks to the iphone, which really is big enough to move the needle at such a huge company. not to mention the dividend, which is basically for the chickens. and the strength of its other business. i say all aboard att. next stop -- $30 a share. okay. john in texas. john! >> caller: jimbo. >> yeah. >> caller: jim, i want to give you a sweet clean fighting texas aggie boo-yah. >> holy cow, man, where have the aggies been? this is the first aggie we've had on the show in ages. thank you.

>> caller: here's my conundrum, jim. i've been following apple since its press conference in the second week of september. and now i've always heard that you can expect a 6% or 8% pullback sometime around or after these conferences. >> right. >> and it was my hope to get in on apple at 165, but i never got the pullback. instead i sat here and watched it go to 170, 175, 180, and now it's up to almost i think 184. >> right. >> and my question there, have i missed the boat on apple or is it going to pull back to 165 or something in between where i should just buy buy buy? >> as i say in the new book, which comes out momentarily, jim cramer's getting back to even, stop thinking all or nothing, my dear friend john in texas who's an aggie. here's the deal. what we do is say okay, we want 100 shares of apple? we buy 25. we buy 25 right here tomorrow.

and then we pray that it comes down to 180 so we can buy another 25. in other words, i use -- i call this get some on. do not let this thing bound to my $264 price target without you. get a quarter of your position on and hope the market sells off in october or hope that research in motion reports a disappointing number thursday and you get to buy it friday. but start buying some tomorrow. i need to go to christopher in the sunshine state. christopher. >> caller: hey, jim, a big university of central florida boo-yah. >> oh, ucf boo-yah back at you. boy, i'll tell you, some good football players come from there. what's up? >> i was wondering what you thought about eric, ericsson, for the switch to 4g and the mobile network -- >> come on, man, what, are you a worst of breed player? you don't have horse sense! i think you that should be thinking about the qualcomm, which i own for the actionalertsplus.com, which is my charitable trust. time i hear 4g, i think qualcomm!

anytime i think of chicken internet mobile, i think at&t. i consulted all my guru charts. what was a ceiling is now a floor. the chicken way to play at&t to 30 is to start buying tomorrow. stay with cramer! >> announcer: coming up, has spending by the g-20 served as a backbone to the rally, and will the g-20 keep it up? cramer goes one on one with pennsylvania governor ed rendell to find out if this rally is for real. and later, will battery-operated cars drive us into the future? can one clean tech energy ipo put the power back in your portfolio? cramer breaks it all down on your ipo. plus, try to keep up with cramer as he takes your calls rapid fire in an all new "lightning round." all coming up on "mad money." would you like to go for a ride on that bike ?

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root touch-up by nice 'n easy. your right color. with the g-20 summit being held on thursday and friday of this week in pittsburgh, pennsylvania we're lucky enough to have ed rendell, pennsylvania's governor, on the show tonight. before running the state where i was born, rendell was the incredibly successful mayor of philadelphia and he became a good friend and he still remains one. now, in addition to hosting the g-20, pennsylvania's also the heart of the marcelus shale where we have huge reserves of natural gas. the marcelus shale could turn out to be the biggest job creator in the state's history, i believe, if we embrace the natural gas agenda that i've

been pushing. of course, pennsylvania's also a huge coal state and the coal industry has been the biggest obstacle to adopting natural gas. but you know what? pennsylvania can make money with both. it's currently making a lot more for coal. which is responsible for lots of jobs and therefore obviously an important power in the state. we've got a lot to talk about. so let me just extend a big welcome to governor ed rendell. governor, welcome back to "mad money." >> hi, jim, we missed you on sunday. >> no, i was up there in the box. i got out of the cheap seats. i got in the box. my dad and i like to be a box. >> you were with the rich people. >> box 118. if you want to join us, it's on the 50. and i got the full passenger for lunch. anytime you want. anyway, governor -- i'm just obviously fixed on the cobb versus vick thing. get me back here. you're in the heart of what i think is an industrial renaissance. we had charles bunch on yesterday, the ceo of ppg. we have a major turn in this economy and the world's economies.

why is it that when i heard you speak the other day on "squawk" you were the only other positive person in the world right now about the u.s. economy? why are you alone? >> well, this country used to have a great optimistic attitude that we could do anything. roll up our sleeves and use american creativity, ingenuity, innovation, and get anything done. and i think to a great extent we've lost, that jim. we need a confidence boost. you're right. the shale, coal, if we can develop clean coal technology, and i believe we can, we're sitting on a gold mine. we're the saudi arabia of coal if we can ever find a way to successfully sequester and capture carbon. and you're right about natural gas. natural gas is at its seven-year low now, as you know. >> right. >> but it's going to bounce back. there's no question it's going to bounce back. and when it does, the economic consequences for pennsylvania and all the shale states, and there are a lot of shale states in appalachia, the economic consequences are going to be great. we can be the energy producer of the world. or one of the major energy producers of the world. if things break right for us and

if we're smart. >> but governor rendell, one of the things we joked about -- the eagles. i'm feeling bad about that expensive seat thing. but listen, i worked hard to get that expensive seat. >> absolutely. >> here's what i worry about. you have two constituencies in pennsylvania. you've got the steelers and you've got the eagles. and you can't back one over the the other. i know the natural gas guys are begging you to back them. we had the terrific ceo of range resources on the other day. he's saying we think we got him, we've got the governor. but you can't really afford to back one over the other, can you? >> well, but i don't think we have to choose, jim. as you said in the introduction, i don't think you have to choose. natural gas, first of all, i'm a boons picken fan -- a boone pickens fan. and i think we should be using natural gas in our vehicles. it's a great bridge. a terrific bridge, number one. number two, clean coal technology has incredible potential to do our electricity and endure our electricity well.

it can be simm gas to be used in the chemical industry. and it can be non-sulphur diesel fuel when you gasify it. so clean coal has tremendous potential. and i think we can be an exporter of energy if we hit it big on natural gas and we refine clean coal. and what's wrong with that? >> well, governor, i'll tell what you i think's wrong with it. i have never heard our president ever say the term "bridge fuel" for natural gas. and until he does you can't create what penn state said would be 13 billion in value added and 175,000 jobs by 2020. you can't do it until the president says bridge fuel. why won't he? >> you know, i don't understand because the president does understand, for example, the future of clean coal technology and sequestration and capture. and natural gas has just as good a future. i mean, we do need a bridge. there's no question about it. and we need a bridge fast.

and one of the things i'd like to see is the president take leadership and get every governor and every mayor to convert all of our fleets to natural gas. i mean, if you do that, think of what that does to create a market. >> that's all we want. i'm willing to forgive the coal bias if we would just do that for fuel. now, you also said on "squawk," and whenever you're on i follow everything you say, whether it be the philly.com because i'm trying to read the budget deficit while i'm trying to figure out if mcnabb's going to start again. and you were abject that the stimulus didn't create enough jobs, that it did a lot of other things. but talk about how you're willing to break ranks and admit that. we can't find other democrats willing to admit that. >> well, let me just say two things, jim. first of all, the stimulus has done better than people think because of the things that are in it that no one's talking about. 2.8 billion in pennsylvania has gone to our citizens in the tax cut, the additional food stamps money, and the additional unemployment comp benefits. that's a big shot to the pennsylvania economy. in terms of the money the state's gotten, we've gotten

$3.7 billion in the last two years for medicaid and education. that staved off 10,000, 15,000 layoffs just in and of itself of teachers, state workers, policemen, things like that. so that's important too to be able to retain jobs. but thirdly, the big fall of the stimulus, and i think the president recognizes it now, there wasn't enough infrastructure money in stimulus. because we know infrastructure works. every analysis says the billion dollars of infrastructure spending, it's 25,000, 30,000 jobs created. and it's not just jobs on the bridge. if you're rehabbing a bridge. it's the jobs back in the factories because a rehabbed bridge needs steel, asphalt, concrete, lumber, and the like. so you get two shots of jobs. one, the construction workers on the bridge itself. and two, the factory workers. and when you look at pennsylvania's economy, and i think it's true across the nation, the two hardest-hit sectors in this recession, construction, manufacturing. >> now, you also, though, and i thank you for -- you're too humble. i've been following pennsylvania, obviously having been born there. and every time we ever had a

recession in this country pennsylvania always lost more jobs and had a higher unemployment rate than the rest of the country. that's no longer the case. tell me why. >> well, we're 1.1% lower. the national average is 9.7. we're at 8.6. and 71 of the last 72 months we've been lower than the national average. because we've diversified our economy. we still are a hard industry state. steel and coal are still a very important part of what we do. advanced metals, powdered metals still a very important part of what we do. but we've become a very high-tech state, information technology, life sciences. we were ranked third in the nation in jobs produced in life sciences from venture capital, for example, jim. and we're ahead of the curve. and i think our administration deserves a little bit of the credit. we're ahead of the curve in green energy jobs. we've put about a billion dollars in pennsylvania over the last 6 1/2 years in incent

insentivizing the green energy economy. and i think we're probably east of the mississippi the leading state in green energy jobs, new businesses, et cetera. diversification is the key. when the delegates come to pittsburgh on thursday, they're going to think they're coming to an old steel city with smog. they're going to see a revitalized, absolutely stunningly beautiful city. second best skyline in the country according to "usa today." and pittsburgh's done it by the medical industry, hospitals, upmc biggest employer in the western part of the state. life sciences, information technologies. carnegie mellon has that super computer. and green energy. green energy is cropping up all over pittsburgh. but we still have the westinghouses and u.s. steel. a diversified economy. which is why pennsylvania is

doing better. >> obviously in the super bowl you're going to say, what, it's a tie between the steelers and eagleses? >> no. if it's steelers and eagles, and i've said this, jim, because i'm a courageous guy and i also don't have to run for re-election. i've said i'm an eagles fan. i root for the steelers against everybody else. i went to the super bowl last year. i was in mourning because i wanted to see an eagles-steelers super bowl and we came one defensive stop away from seeing it. but i rooted hard for the steelers. i even wore black and gold. and gold is not a good color for me. >> i will come down to the cheap seats this weekend and say hello to you, governor. thank you so much for being on "mad money." ed rendell, governor of pennsylvania. look, he gave us the natural gas blessing to have fleets. i sure wish we wouldn't have such strong carbon capture from him. but you know what? he's the governor of pennsylvania, not the governor of the state of natural gas. after the break i'll try to make you even more money. >> coming up, will battery-operated cars drive us into the future? can one clean tech energy ipo put the power back in your portfolio? cramer breaks it all down on "know your ipo." and later, can you handle the heat? cramer gets you fired up for a searing hot "lightning round." still ahead, what should aig's

next move be? find out on cramer's eureka moment. all coming up on "mad money." you're the colon lady!

diarrhea, constipation, gas, bloating. that's me! can i tell you what a difference phillips' colon health has made? it's the probiotics. the good bacteria. that gets your colon back in balance. i'm good to go! phillips' colon health. tonight i'm giving you what you want. i know that. i know, just talking with my staff, i know this is what you want. so we're just going to do it. we've got eight big ipos set to price in the u.s. this week. other shows talk endlessly about them, but they won't tell you what to do with them. that's why you come here. it's my job to teach you how to evaluate these new filings, how to also try to be conservative to try to make you some money in them. what a revolutionary idea. the profits will be televised. tonight i want to take a look at -- i'm cautious. this is such a hot company. i've got to be very careful here. tonight i want to take a look at a-123 systems.

it's a battery company, which everybody loves. it's riding the clean tech wave. even as it sounds like some company that just wants to be first in the yellow pages. we know that congress and the obama administration are doing just about everything they can to encourage battery technologies to power our cars and trucks. now, i don't think this is right. it doesn't matter. i think they should be focused on switching to natural gas in the interim. as long as we're burning coal for electricity, do you really think that battery-powered cars are any cleaner than gasoline-powered ones? think of them as coal burners instead of electric cars. like the coal lobby. the aka pro black lung, anti-rainbow coalition. but i'm here to make money. foreget the politics. i'm not going to complain about public policy. and as long as the bolsheviks -- as long as the democrats are in charge they don't want to get their hands dirty with fossil fuels and are in love with batteries despite the need plug them into coal-fired plants at night then i think we've got to start thinking about make something money in a123, the ipo.

a123, which will trade under the ticker a-1 like the steak sauce except spelled out a-o-n-e makes lithium ion battleries for vehicles, and even a natural gas lover like myself has to acknowledge electric vehicles are the real deal, not just heavily subsidized government hype like ethanol. the number of electric models is expected to grow from 19 to 150 by 2015 and to 200 by 2019. this is a real story. this is not a hype story. right now the automotive lithium ion battery market is a measly 30.19 million. tiny. but i expect to grow and grow big. i'm even thinking about 21 billion in 2015. i'm thinking about 74 billion by 2020. that's incredible growth. that's the kind of growth that

makes every hedge fund and mutual fund manager salivate for some way to play it. and they are going to play it with a123. if private industry can't develop a real battery-powered car if they can't develop that market, i have no doubt the government is willing to spend to create one. already a-1 has received a $249 million grant from the feds to fund the construction of a lithium-ion battery plant in michigan. the company's applied for loans under the department of energy's $25 billion loan program, which aone expects to reap about 234 million from. these guys are feeding at the federal trough like hardly any other industry i've ever seen. throw another 10 million in grant money, 4 million in loans the from the state of michigan and you've got a company that's being given or loaned 619 million from the government to help it ramp up domestic production of batteries. this is a private company going

public with that kind of government backing. i've never seen that before. the company has said it expects to increase its production capacity from 161 megawatt hours, that equates to about 10,000 electric vehicles, to 3,124 megawatt hours. that's 200,000 electric vehicles. in two years. but how do we know this isn't hyped backed by the president's seal of approval? which is certainly a question you've got to ask. first we look at the investor. aone has some serious investors behind it, not just government subsidies. it's got ge, the parent company of this network, it has qualcomm, a stock i own for my charitable trust. aen. motorola a stock has on the move kind of surprised how far that's gone. it has real customers in its end market. a123 is a consumer business, a transportation business, and electric grid business. in the consumer business where its batteries go into more efficient power tools and other products, black & decker and gillette are its main customers. total blue chip. in the big one the transportation business aone is working with bmw, chrysler, gm,

delphi, and shanghai automotive to develop batteries for electric vehicles. and they already supply the batteries using the hybrid buses made by daimler and -- they make big systems for standby power and emergency services. aes the global utility is their main customer. so what do you need to know to make money on the deal? the company's offering 25.7 million shares at between $10 $11.50 per share. that's the range right now. i suspect it's going to go higher. they're using the money from the offering mainly for capital expenditures to build up their business. the company's cashing in, not cashing out. you know i like to see that. lead underwriters, pristine. morgan and goldman. obviously, they have the book of business, you want to try to do commissions. by the way, that's the best possible pedigree for an ipo you could ever get from the customers and the investors and the brokers. it really is. this is a really smoking good deal. so what should you be willing to pay for a123?

we've got to compare hev, that's a fuel cell company, since neither aone nor hev is profitable yet we have to base them on their revenues they're bringing in. assuming a123 gets a similar multiple to hev on its sales i think it deserves a premium because it has better customers and better relationships. then a fair price for hev could be 12.50 to 19. i want to take the high end of the range. the stock could go even much higher, even if all -- it's all hype like the ethanol stocks were. verisun, which is now bankrupt, soared 30% on ethanol hype. batteries could be the same way. all right. so let me give you some strategies on how i would play this. you have to give this one some leeway. now, the reasonable price, okay? is $13. at $13 i would put in for 500

shares. at $15 i would put in for 300 shares. and at $19 or higher i would put in for just 100 shares. obviously, use these ratios if you want to buy less or more than that. if you really think this thing's going to be so unbelievable you can buy -- and you want to have 100 shares, you buy 25, say, above 19. but you've got to take a pass in the mid 20s. and you do not buy this one up in the after market. only go for it if you can actually get in the actual ipo. i repeat. do not pay the opening price. there's a chance that it can go higher. but all you'd be doing is taking out the people who bought it much lower or the offer price. we don't do that in cramerica. here's the bottom line. i may not believe in battery-powered vehicles as a policy, i'll take natural gas any day of the week, but i believe you can make money on this a123 ipo as long as you don't pay too much and do not buy in the after-market. by the way, come the 13th, meaning that's where the deal price-s i want you to take every single share you can get your hands on. because this one is the real hottest ipo of 2009. stay with cramer. >> announcer: coming up -- lightning strikes. cramer goes electric, taking all your calls in a spine-chilling, overcharged "lightning round." still ahead, what should aig's next move be?

find out on cramer's eureka moment. all coming up on "mad money." it's not the new lexus. it's not the new bmw.

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it is time. it is time for the "lightning round"! on cramer's "mad money." what's that about? that's where i take your calls one after the other, you say the name of the stock i till whether to buy buy buy or sell sell sell. my staff prepares the graphics on the fly. we play until we hear this sound. are you ready, skee-daddy?

it is time for the "lightning round" on cramer's "mad money." why don't we start with kate in connecticut? kate. >> caller: boo-yah, jim. boo-yah. >> double boo-yah back to kate. >> caller: can you give me some insight on toronto dominion? >> one of the best banks in the -- i was going to sate country. that would have made me look like an idiot since it's a canadian company. i think toronto dominion the yield is good, they didn't get in trouble, like many of the great canadian banks, they did not screw up. i think that's really important. even though it's at a 52-week high, i still like pd. how about we go to jack in pennsylvania? jack. >> ba-ba-booyee. >> babalu. go ahead. >> caller: alth. >> oh, man. we have said this is a good speculation name. we want that segment in the biotech. once again, like so many other biotechs, this has just exploded up. so is this the right level to do it? no.

but it is a good spec. we have been convinced that small molecule therapeutics is the way to go. and this is the best of the spec names in the group. james in texas. le james! >> caller: yes. i'm going to give you a big san antonio boo-yah! >> san antonio. hey. we love -- do the show there in a heartbeat. spurs rock. remember the alamo. >> caller: remember the alamo. >> yeah. >> caller: ticker symbol -- i want to thank you, jim. i'm a first generation investor because of you, sir. >> thank you. i'll tell you, i always thought san antonio's like venice. i'm not kidding. anyone who's been to san antonio knows it's like venice. beautiful. >> caller: thank you. thank you. we appreciate that. the ticker symbol i'm looking for here today is ticker symbol aa, alcoa. >> i've got to tell you, james, alcoa seems undervalued to me versus the other mineral

companies. it hasn't been particularly well run but i think its time has come and i'm not going to be against it. and as an early first-time investor, and i really thank you for those kind words, you can could do a lot worse than alcoa. i will blast that stock up until 20 bucks. it reminds me of international paper in the low teens that one worked. i think you're okay there. andy in new york. andy. >> caller: boo-yah, from the cessna capital in new york with a tech valley boo-yah for you. >> you're completely right. i was up there recently and i see the jobs being created and i applaud your area. what's up? >> caller: jim, there is unusual heavy call volume on tlabs, tlab. 50 million shares traded in the last two days, upgrade today.

what do you think? is this thing a buy? can we go to two bucks with this or not? >> remember, we happen to have had the excellent ceo, robert pullen on. the stock was probably around 5, 6 when we first recommended it. i will tell you unequivocally, this company in the back hall business, everything tells me things are smoking at this company. i would hold on to it. i don't care. i don't think stocks are on a takeover basis where the fundamentals aren't any good. but the fundamentals here are terrific. i like t labs and i want to hold on to it. i want to go to john in alaska. john. >> caller: what's up? boo-yah, jim cramer, from alaska. what's up, buddy? >> i don't know, man. it's the land of the sometime sun here. what have you got? >> caller: we've got snow all over the mountains here, bro. >> fantastic. >> caller: tell me about esk. >> i think the yield's safe. i would love to see the ceo on. 10% safe. but i think -- alaska communications has been a stock i've liked for many years. i'm not backing away from it. i want to take one more. i want to go to tim in california. tim. >> caller: cramer. sunny san diego boo-yah. >> i got rivers. he didn't help me in the fantasy league. i'm kind of predisposed against you. but go ahead. >> caller: tell me about citigroup, symbol t. >> now i'm liking you because as

much as i don't like my fantasy football team i do like the team running citigroup. and that stock has withstood a tremendous amount of selling from a 9% shareholder. and the stock took a licking, like timex, and kept on ticking. i think citi, the book value's 5.60. i think it trades 90% back value. i believe in vikram pandit. i believe in citi. i think you should buy it. and i think you should stick with cramer! [bell ringing] the way the stock market's been acting lately you may wonder if you've been doing the right thing.

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right here in the high 40s. we read about how cash strapped this company is practically every single day. now we've got a gao report that to me pretty much, well, confirms it. the situation's pretty darn hopeless. but the report was dismissed and aig's stock has been powering higher and higher until the secondary report today. torpedoes the stock. i don't know what drove it down i's been up endlessly. it does kn't mn't matter. the stock is up huge. a.i.g. management needs to take advantage of the move that ended to day and sell a bunch of new shares. that way the company won't have to fire sale meaningful divisions. that could be worth much more if people believed a.i.g. wasn't in trouble. that's my moment. a.i.g. has a narrow window of opportunity to raise this money. even though there was chatter, the government won't allow it. i don't care. it is the right thing to do.

a.i.g. has been in what we call in the business an up stock. meaning it has been one way up, since it touched, since they dipped the split, 20/1 reverse split. because the of endless, unconfirmed rumors and just gossip that something good is about to happen. emanating from some one that should be quiet. hank greenburg. sos the seed of disruption though he created the company. we can't blame everything on greenburg's successors. greenburg set up the rogue london office, the one who commanded the company to insure products not just physical ones. when i talk to a.i.g. go back to december 2007 analysts meeting to see how long the company was doing stupid things like insuring banks to allow them to get around european capital requirements. greenburg some how takes no responsibility, never called out

on this, and shamelessly hypes the company as undervalled to every media outlet imaginable. this man its really off the retzer vags. the second reason a.i.g. k is rung in spite of what i consider horrible news is uncharacteristic hyping by its new c.e.o., robert benmochet got in like predecessor and said rosie things before doing home work. and incredibly complicated company. you can't wing the valuation. excuse me? they aren't -- they're unfathomable. unpayable. benmochet out of met life. he should know better. the last guy that ran it out of allstate. he came in rosie and positive. i am not looking for someone to say this is the worst company in the world. the ward of the state. dregs of the earth. not asking the ceo to say that.

i am saying keep your mouth shut and try to fix it. greenburg and benmochet, what looked like an excellent short and a brutal short squeeze. you can't borrow the stovenlck. the short sellers looked at those odds and went nuts with this thing after the 20 for 1 reverse split. with short selling representing 50% of the trading, for weeks on end after the split. that's what's going on. those guys are caught. a.i.g.'s run on huge volume still thin given fact that most is owned by the government k. if i were running the company i would go out there tomorrow morning and sell 20 million shares to take advantage of the short squeeze. take some money. i think the secondary is a natural. i think a.i.g.s manage the may not know how the stock market works and may not grasp all the hype given to the benmochet and

greenberg, divide by 20, given you a one time opportunity you shouldn't have. a.i.g. the market right here. worst case, you break the short squeeze. a.i.g. gets the money. they do this and, the government, you and me, the taxpayer has finally a shot at getting some of its money back. have some fun with that truck.

vroom... vroom. okay, time's up. here ya' go ! that's a nice one, i made that. that's a piece of junk. yeah. i want the red truck. well, you can't have the red truck. see, that was a limited-time offer only. it's, ah, right here in the fine print. even kids know it's wrong to hide behind fine print. why don't banks ? we're ally, a new bank who always gives you a great rate, with nothing buried in the fine print. it's just the right thing to do. with nothing buried in the fine print. ♪ yes, you're lovely... ♪ what do you think? hey, why don't we use our points from chase sapphire and take a break? we can't. sure, we can. the points don't expire... ♪ there is nothing for me... ♪ there's no travel restrictions... we could leave tomorrow. we can't use them for a vacation. you can use the points for just about anything. i know... ♪ the way you look tonight ♪ chase what matters.

i'm jim cramer. please use caution with a-1. see you tomorrow! ♪ look at this man

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live from the nasdaq marketsite, this is "fast money." i'm melissa lee. stocks hitting new highs for 2009. these guys are ready to tell you where the fast money was playing today. also tonight, rick santelli gives his always loud, always provocative view of the fed. later on "options action" a stock that was lighting up traders' screens everywhere. should it be on your screen? but first let's get to the word on the street right now. and it seems right now that we have to follow the dollar in a sense because a lot of the market is dependent, about 18% of the market is dependent on the direction of the dollar. >> well, follow the dollar. follow essentially where risk compression has taken assets to, and people are a lot more comfortable now than they were coming into monday about what the fed's going to give us tomorrow, what the g-20's going to give us. they have no place to go in terms of pulling in stimulus. they can talk all they want. that was the digestion of this. we're going to maybe show a chart on the dollar in a little bit. but the reality is if the dollar continues to weaken and not only

tells you that people need to buy -- >> but -- >> you ask and you shall receive. if you look at the dxy, and again, this is this basket of six currencies that the dollar is weighted against, it's headed straight back toward 73, which is the line we hit -- we were in june and prior of 2008 before we ran into the worst of the credit crisis. people are banking on that. and in that environment you had access at a much higher place. you had commodities much higher, oil much higher, and i think that's where the market's taken us. >> the thing to keep in mind with the dollar index, 50% of it is -- but the sell-off for the dollar is extremely widespread. in fact, the swiss franc also hit a 12-month high against the dollar which is quite unusual because that's also a safety currency. and again, emerging market currency -- >> it was noted mike huckman in the lead-in here that brazil was upgraded. if you look at the south african rand and brazil, the aussie, all of these other currencies around the world, not just those in the dxy, those are the ones really that are rallying and those are the places people are taking risks. >> well, non-u.s. assets are outperformingh