the next day. and it's not what's right now for tomorrow or for friday. i'm talking about what's right and going to work for the next weeks and months from now. i'm thinking with the gloom from today's traysing, all thick and foggy, once again, maybe i've got to spell it out for you. maybe i've got to spell it out for everyone. maybe words are too hard. maybe what you need me to do is draw it out in pictures. okay. tonight i have a couple of fine art examples that might help things, give you some ideas about what to take a look at now that the sell-off has started. here's the first set of dots. continuing that "highlights" theme we had earlier. what's wrong with this picture? that's right. it's an apple. now, get a load of this. we're going to do a little more graphic display. okay?

what am i doing? i'm putting on places where the apple iphone is either being sold like crabcakes or about to be. place that's are blowing down the doors with iphones or about to be. and remember very little of these sales are actually the numbers because of the silly byzantine accounting rules that as i predicted last week on this very set with two johnny appleseed -- jimmy appleseed wheelbarrows for evidence, the very accounting rules changed this afternoon. they'll be raising money tomorrow off thkting legerdemain. and while apple stock is up 104% this year and hit a 52-week high, it is 75 points below where it is headed. you need help. i understand. i feel your pain. here are the dots of another icon that need connecting. it actually wouldn't be like that. anyway, palm, it just raised

$325 million after it reported it sold 800,000 pre smartphones. i was thinking it would be big if they did 600,000. they did 200,000 more than i thought. and that's with the weakest carrier pushing palm's product, sprint. aup 144% this year. but with this new money on hand i think it could go higher. one more icon, maybe do a little more dot connecting. okay. maybe that mystifies you. okay. this one sold by research in motion. this reports tomorrow night. i don't know what it will say. if it's a jordin sparks battleground stock. ♪ get your armor >> i want you to have to go get your armor. but it is up 105% already this year. will it quit tomorrow night? will it go down? you'd better hope so because you want to get it at a decent price. and what do these dots, when

connected with these charts, what did they show? i think it's a pattern no one else is talking about and you are only hearing from me. it's a chart of the most powerful stock cycle since the late '90s, when we recognized that the internet would be the next big thing. but this market will not connect the dots. i have to do it for you! connecting the dots seems to work. we connect the them to tellabs last week, tekelec, onn semiconductor, the sky links slurks the xilinx which preannounced better than expected earnings this morning. despite these huge wins no one else is putting these together. no one else is connecting the dots. that's right. nobody is listening. this morning i googled the term "mobile internet tsunami" to see if anyone's listening. 20 listings popped up. 18 of them for me. and the others were mixtures of weather reports. this country is not yet connecting the dots between the major multiyear trend and everything's piecemeal.

i heard people say "mad money" moved att today. please! the tsunami moved att! i heard somebody say apple's i this or that edition is that's what's behind apple. it's the sun mu. people accuse me of hyping palm before the deal getting short covering going. wrong. it's the tsunami. people have said rimm's up on a big squeeze. repeat after me. it's the tsunami. that's why once again we're going to connect the dots for you. on august 11th i put together a mobile internet index. made up of 21 stocks, most levered to the game-changing trend. the whole index, it's up 15.35% since then versus 6.7% for the s&p 500. this index is the secretariat. it's pulling away from the field. i visited secretariat's grave once. solemn. the biggest winners. ciena, a telco equipment company that helps wireless networks support bigger bandwidth in order to support the high-speed video and data services that make the mobile internet possible.

how many times did i tell you to buy that? up 42% since august 11th. how about the san disk? makes compact dram memory, allows you to store all your songs and videos on your iphone. up 35%. aldri aldrich. up 24%. the power amplifiers to boost your smartphone signal. ctv, no one likes it, up 24%. makes antennas for cell towers. great business. and palm up 22% of course, the smartphone maker we just talked about. these are all plays on the mobile internet tsunami and i believe they can all go much higher, and that's what you buy into the sell-off of the next couple days. the stock market, got to have all these -- they have all these stupid half baked double and triple etfs that are so dangerous. they have etfs for every nonsense wind, water sky, like earth, wind and fire. we need an etf for this "mad money" mobile internet. and we will keep connecting the dots every day on this show until i hear someone else anywhere in this world who talks

about this trend and understands the explanation and why it's driving all these tech stocks. only then will i perhaps even think about stopping. this is the biggest trend since al gore invented the pc and the internet. it is that big. so let's connect the dots together, and remember that the revolution is what's driving these stocks. the revolution is being televised. it's early on. if this were the french revolution, marie antoinette would still have her head. that's how early we are. if it were the american revolution, the founding fathers would still be debating the declaration of independence. sxin deed-f this were the russian revolution, then lenin's thugs right now would still have not reached the winter palace, and my great, great uncle is still waiting for the train at the finland station. despite how much these stocks have moved we are still early in the trend and i think it's going to last for you. here's the bottom line. once you connect the dots, the picture is worth 1,000 words. and many thousands of dollars.

apple plus palm plus blackberry. the mobile internet tsunami equals "mad money." shh. don't tell anybody. right now, just between you and me, when everyone else has figured it out, we'll change the equation, connect the dots, and find the next big thing. dan in new york. dan. >> caller: a big boo-yah to you, jimmy from new york. >> i'm having some dots. how are you? >> caller: doing great, man. looking for some exposure to the chinese consumer. my question is about china unicom. is china unicom's contract with apple, exclusive agreement, or can apple turn around and make an agreement and sell the iphone through china mobile? do you still like china unicom? >> right now got the exclusive but more importantly they've the technology. that's why i'm been buying it for actionalertsplus.com, the charitable trust. what matters more than the exclusivity is the technology. this is not like att which has the exclusive tu and is a red hot stock. once again, i want you to eat

dots, i want you to connect dots. i want you to throw dots at the camera. and i want you to recognize you don't need any armor when you're buying apple and palm and rimm! because you'll make mad money. stay with cramer. >> announcer: coming up, is nat gas starting to really fire up? cramer goes head to head with huc corporation's ceo morrie gerber on the executive decision. and later, dr. cramer is in the building. is one new medical name the right prescription for your portfolio? find out on "know your ipo." still ahead, did back to school mean big profits? jim goes one on one with vf corporation's ceo alex wiseman to find out. all coming up on "mad money."

if you watch the show at all, you know i've been a gigantic backer of natural gas and natural gas stocks on this show. both as a cleaner, greener energy source than oil or coal and as a great investment opportunity. as i believe prices could soar over the next year to as much as maybe $6 or $7 for natural gas from around $4 where it is right now. and that i think could be accomplished without even any help from congress, pushing my natural gas agenda. we can't count on the federal government to do the right thing as long as the pro black lung anti-rainbow coalition also known as the coal lobby holds so much sway. still, i think eventually we'll come to our senses about this ideal bridge fuel, and i've given you a lot of great ways to play the move in natural gas. which by the way is not a republican or democrat thing. it's just about trying to make

you -- tonight i've got another top shelf name. it's called eqt. here's a natural gas company, eqt, with one of the best cost profiles in the industry that also pays a meaningful dividend. right now it yields about 2%. but what really sets apart this company from all the others in the industry are the low finding and development costs. at just $1.14 per 1,000 cubic feet versus an average cost of $2.16 for its peers. this is really the cheapest large capitalization producer of natural gas i think in the world. where do they operate? appalachians. production coming from the shale. the barrea shale in virginia and west virginia. 69% of its reserves there. we like to talk about a lot we mentioned with governor rendell of pennsylvania last nate the marcellus shale, 9% of the reserves. but more importantly, 40% of its reserve potential.

on its conference calls eqt's management has said they can get finding development costs lower than $1 per cubic feet in uron shale. the krofts down in marcellus with average drilling days cut in half from 35 to 17. technologically this is a marveling. well costs are down from 5.5 million a well to 3.3 million. eqt's mostly a production company but it also has a mid-stream meaning pipeline business and a gas marketing business. at the pipeline business eqt is increasing its capacity, its pipeline and gathering system. that's snag could double capacity, double earnings for the whole pipeline segment of the business. when we're looking at these companies one of the things that one of our readers -- our viewers alerted to is we need to factor in hedging. after factoring in hedging in natural gas stocks, who's already sold their natural gas locking in a price? i say that because last week we had a fabulous e-mail from jonathan in atlanta asking about this issue. so we did a run flu imetrics,

this really cool service, allows to you sift through s.e.c. filings at lightning speed p we found sand ridge, petrohawk, anadarko and newfield are the most hedged for 2010. so if you're bullish on natural gas you may not want to be in these. imetrics.com tells us the comstock, whiting, eog, and patchee are the four least hedged. they can benefit from a big rally in nat gas. so from now on we're going to use that prism to analyze the natural gas stocks because the less hedged you are the more benefit you get from natural gas. eqt comes right down the middle. 41% hedge for 2010. we want to know what that hedging strategy says about the future of natural gas pricing. more importantly we want to know how bryce this future is for this low kovlt nat gas producer that has been a dine mitt stock, having appreciated 345% over the last ten years while the s&p 500 has declined. and you wonder why i profile these companies so often?

what i track record. let's talk to morrie gerber, the cref eqt. welcome to "mad money." >> it's good to be back. >> it's terrific to have you. we think the future is very, very bright for natural gas but we looked at your hedging philosophy and we're wondering are we too bullish given how much you've locked in already for 2010? >> no, i don't think so. jim, we hedged a lot early along when eqt bought a huge position in the appalachian basin in the early part of the decade and we were hedging in our eva at that point in time. so no, i don't think you should take anything about our views from aur natural gas hedging program. we were a small and made a big acquisition. and that's why we hedged -- >> that's good. you have to look at these things. they're not apples to apples. you're in a different situation from some of the old line producers. how come your production cost is dramatically lower than every other company we interview? >> well, we've got a great team, for one thing, jim, but we also bought into this acreage a long time ago in appalachia a long time before anyone could spell

marcellus shale. beyond that the technology has been spectacular. we innovated air drilling, horizontal air drilling in the huron shale. that helped us dramatically improve our reserves per well and drive our f & d costs down as you mentioned earlier. and in marcellus we're at 3.3 million average per well for a 3 1/2 bcf reserve per well and we're headed down sp eed down. and we're heading down. it's a great technology, some of which we invented. >> i think one of the things i'm trying to educate people on but you can do far better because you're in the business. the numbers you're just talking about, the technology you're just talking about, you're not talking about something that's as old even as the pc or even the internet. this stuff is more recent, right? >> oh, this is the last five years, right. absolutely. we have a third of our production coming from horizontal air-drilled wells this year. and we didn't even have one horizontal air-drilled well in

2007. so this has all occurred in the last few years. >> so ten years ago there might have been a recognition that there was this gigantic pot of natural gas underneath the state of pennsylvania but it was no different from than it was on the moon. it was not attainable, right? >> absolutely not attainable. and that's one of the key issues that we're trying to get across, i know you are, how abundant this resource is. and we need to get that message out because far too many people are saying it's not abundant, well, we have 120 years of this stuff. and even so, jim, we're talking about only recovering about a third of the gas that's in place in these shales right now with this technology. imagine what we'll be able to do ten years from now. >> well, it's incredible to me. yesterday with governor rendell, he's a friend of mine. and the "new york times" yesterday. articles about technology that doesn't exist, the carbon capture from coal, that says that that technology's available now. never do i see an article, a piece about the technology that is horizontal drilling, that is

revolutionary, that's already working. explain to me the disconnect between how we can believe in the canard of clean coal, because this thing has not even worked yet, and not have any faith in a technology that's already producing trillions, trillions a square feet of cubic gas. how can that be? >> you know, for a resource that can supply the country for 120 years, mobilize all our vehicles, by the way, reduce our dependency by 75%, save us $300 billion reparticipate raitriaten we send overseas, i don't know. jim, as you say, it's current technology. no stimulus required. american. and while we're waiting for a hail mary pass on this other technology, i don't know. >> we like kinder morgan partners. that's a pipeline company. would you ever think about splitting out your pipeline and being able to produce that really good partnership, 7% to 8% return on that? >> we have considered -- of course the mlps have had a rough ride. but we have definitely

considered getting financial partners for that asset. when you fill a pipeline the cost of capital goes down, and there might be a good arbitrage for our sharmds. >> we love it on "mad money." murry gerber, chairman and ceo of eqt. thank you for tunning to deliver for all your shareholders. the guy's a winner, stock t's a winner, nat gas is a winner, you're a winner. stay with cramer. >> dr. cramer is in the building, but is one new medical name the right prescription for your portfolio? find out on "know your ipo." and later, can you handle the heat? cramer gets you fired up for a searing hot "lightning round." still ahead. did back to school mean big profits? jim goes one on one with vf corporation's ceo eric wiseman to find out. all coming up on "mad money."

all week we've been running a series on ipos. not how to hype them or how to watch them from the sidelines as other people get in on the deals and book huge profits but how you can analyze and make money from them for yourself. i'm teaching you how to know your ipo. and know what the heck you should do with it. today we're looking at a company called select medical holdings. it's expected to be priced tomorrow. and it will trade under the ticker sem. sam emma mary. when it comes public. look out, this is a health care play. but it's in one of the best and most expensive parts of the indust industry. long-term specialty acute care hospitals and rehab centers. unlike a lot of ipos, select med is a real company with real earnings. it's a powerhouse in its industry. the number two player behind health south. and it has the seasoned

management team that's worked together for more than ten years and has great experience actually running a public company. this is no wet behind the ears ipo. select med even has a long pedigree as a public company from when it came public in april 2001. that was not a great time for an ipo. to when it was taken private in february of 2005. so it's going public, private, and now coming public again. if you were in on select medical's first ipo and held on to it until it went private, it gave you a 279% gain. the s&p was up just 2.7% over the period. so hey, i think we made money here once, let's check it out again. the company has 92 long-term specialty acute care hospitals for patients with serious medical conditions, respiratory failure, neuromuscular, cardiac disorders, and severe trauma that requires long-term care. this part of the business represents 70% of select medical sales. almost 80% of its operating income. it's one of the few large players in this business. and healthsouth, with 99

facilities, is the only one that's bigger. the next smaller player has 82 facilities, and after the top three, no one else has more than 25. very elite group. it takes care of very sick people meaning lots of lucrative procedures that could be lucrative tore shareholders. not making a political statement, just asking you to consider how it works. i'd like you to consider it like a hospital without the loss leading emergency room. without that it's a pretty good business. though emergency rooms can be profitable too i'm just saying you have to maybe have some money before you go to this place. let's put it that way. again, not being political. and no matter how much damage obama care might do to other health care players, we know he's not going to cut off care to people with respiratory failures, serious trauma, serious heart problems or neuromuscular disorders. this is the kind of health care you can't cut back on because if you do people die. they die even though house is now on the loose from the

nuthouse. the other part of the business is outpatient rehab, another very profitable business. it provides physical, occupational, and speech rehabilitates services. 948 facilities. 37 states and d.c. it's the largest player in the rehab business by far. this is a fabulous business. trust me. next closest has justify 600 locations. business has doubled in size since 2007 when select health bought healthsouth's rehab business. that rehab business which i have used personally is extraordinarily good. now, the hospital business has been red hot lately. the stocks, many of them have doubled or tripled from the march lows. select med is in the high-priced end of this business. tenet health care, low end, is up 536% since the march 6 lows. community health very similar company. health management up 295%. life-point up 52%. universal health up 90%. these are huge runs in pipe hot stocks. and i don't see why select med should be any different. if anything it should be better

than those. select med's large scale in both the long-term specialty acute care hospital business and in the outpatient rehab business has given it the ability to hold down operating costs, centralize administrative functions. the company also sees a major opportunity going forward anyone patient rehab business. the majority the inpatient rehab facilities are in the small to mid size acute care hospitals. select med would pull them out of hospitals into a freestanding setting and put them into outpatient facilities around them. they complete aid joint venture with penn state hershey med center and it's looking for other university hospitals to partner with. while medicare paid 60% of the business, they only represent 10% of the payer mix at its rehab side. any damage that comes from an obama care that cuts costs should be offset by new people to come to select med's facilities who didn't have insurance coverage before. i think it's a push. details in the deal. the company plans to raise $400 million by offering 33.4 million

shares. right now the talked about range is between $11 and $13 a share. here's the bankers. goldman sachs, morgan stanley, bank of america, merrill lynch. that's a pretty darn good pedigree. select med plans to use the proceeds to repay $180 million of long-term loans. it would be good for the company. because the company has a lot of debt. although select med expects it to be able to cut its leverage in half by 2014 and & it should have the free cash flow to do it. i'm not that worried a lot of these lbos loaded down with debt trying to come public to pay down debt. i'm not as concerned with this one. normally i don't like ipos of companies that are being sold off that were formerly lbos. that's what we used to call them in the old days, leveraged buyouts. i think they're cashing in bilking the new shareholders. but neither wells carson nor tom acressie, the two outfits that took it private 2342005 -- it's not in their irntsd just to spin out a pretty piece of garbage

because they're still going to be on it, still going to be long. the way i see it select med could be the real deal. at that price between 11 and 13 it's expensive. but because of today's downturn i bet we get it the lower end of the range. still it's going to be valued at a hefty premium to most hospital stocks. it's strong quality. if i were you, how much would i pay? if the price of the deal goes up from the current range, i'd buy in smaller increments. so in other words, buy all you want at 13. that's still reasonable. but buy half that foote price comes to 15 and buy a quarter of that if this deal's priced at 17. and above 17 you take a pass. do not buy. and remember this, never buy in the after-market. if you can't get shares in the ipo, forget about it. here's the bottom line. i think a lot of institutions will want to grab some select med, scm, when it comes public. they need exposure to this industry. i think we got lucky here with the end of the day sell-off. i think the underwriters might give us the low teens where they put it to work in a high quality

post-obama care health care stock. given the scarcity of the health care stocks in general and hospital stocks in particular, select med say chance worth taking. mike in illinois. mike. >> caller: a big almi, illinois home of the white squirrels boo-yah. >> i remember i took that in fifth grade. in fifth grade civics they talked about the home of the white squirrels. it's so great to hear from somebody representing that group. go ahead. >> my question is about fantasy eventus. ticker sny. in doing my homework on the h1n1 manufacturers i contacted my local and state health departments to come up with what i hope is the best in xwreed. is appears sanofi avartis are the biggest player in the league with sanofi taking the lead. is sny the smarter play for the h1n1 flu season or could it th all be spoiled by the lenl slative changes in health care in particular the health care reform plan proposed by senate finance reform committee chairman max balk snus.

>> you made a lost good points and you've done a lot of homework and your homework's going to reward you i think you're in the best play off health care play. the other ones at risk are cvs and walgreen's. i've been playing it with the higher risk gilead for actionalertsplus.com my charitable trust. sanofi-aventis has that nice xwreeld and it's very well run but be aware it's only one point from its 52-week highs. the other stocks have come off a little bit. and the cvs is probably the bluest chip way to do it now that walgreen hit its 52-week high today. let's go to david in ohio. >> caller: boo-yah, jim cramer. >> boo-yah, dave. >> caller: thanks for giving the world the confidence to invest. congratulations to you and your staff. >> my staff is terrific, particularly my executive producer gina gilman who just came back from maternity leave. i'm thrilled to see her. i'm going to break all protocol, do all the things you're not supposed to do, and give her a gigantic hug. call me sappy, emotional.

i don't care. i am that. thank you. go ahead. >> caller: king pharmaceutical. symbol kg. the launch of embeda a pain reliever that has no illicit street value. what do you see the future of king doing? >> i'm not a big fan of king. i like a mixture -- i like teva more if you want to go for a mixture of generic and non-generic. i think teva ace better bet. i mentioned sanofi-aventis. i also like gilead. i think those are all preferable to king. i need you to know your ipo. i'm liking select med, sem, and i'm telling you the downturn may give us a place to get in. watch the price proceed with caution do not buy in the after-market and stay with cramer. >> announcer: coming up jim goes fast and furious as he faces a non-stop barrage of calls giving stock after stock their final verdict on the "lightning round."

and later, should back to school mean big profits? jim goes one on one with vf corporation's ceo eric wiseman to find out. all coming up on "mad money." uuu

it is time. it is time for the "lightning round" on cramer's "mad money." that's -- rapid-fire calls. you sate name of the stock i tell you whether to buy buy buy or sell sell sell. i don't know the calls or stocks ahead of time. are you ready, skee-daddy? it is time for the "lightning round" on cramer's "mad money." oh, boy, we're going to mark. >> caller: jim. holy cow. how about a chicago bears monsters of the midway beat the steelers-r back boo-yah? >> man, you're from arizona. you've got a team they call the cardinals boo-yah. you could have done a wildcat boo-yah, a sun devil boo-yah. but you hit me with some sort of chicago thing. go ahead. >> caller: how about symbol hun, huntsman core? >> we called that as an option play when it was up at -- it's up at 9. we can't come in now. we've already missed that move.

i want to thank frank for telling to us take the ochgs when it was 3, 4. but now it's over. john in carolina. john. >> caller: boo-yah, jim. very good to talk to you. >> boo-yah, john. good to talk to you. >> caller: spectra energy, should i buy more or sell what i got? >> why don't you sell? 5% yeel yield, the balance sheet's good, they're going to raise the yield. not hold, not sell but buy. chris in illinois. chris. >> caller: kraimer, big boo-yah from the windy city chicago. >> man, our second chicagoan tonight. i've got to tell you something, i think i'm not take the bears this weekend. but that's all right. don't take it from me. >> caller: i want to ask how you feel about advanced micro devices -- >> i have been a bull on advanced micro devices since it went to $2. i've been recommending it. now we're up over 300%. so it would be unfair for me to say not to ring a little bit of the register if you bought it when i said. otherwise you'll wait for a pullback to 5. but advanced micro's making all the right moves.

also, by the way, here's a two-fer with nvidia. n-video goes head to head with amd. there's room for both. vicki in wisconsin. vicki. >> caller: hey, jim, how are you? >> not bad, vikki. how are you? >> caller: good, good. we're looking at walmart, and i've got isaac on the line and he wants to do the boo-yah. okay, take it away, isaac. >> boo. >> is that an isaac boo-yah? or more like an isaac boo. isaac, you got the ya? walmart. age of walmart david faber 9:00. love it, love, it love it, david, he is our best. he is our best, actually. and he's a good friend. walmart is not our fave here because i want a little more jurks a little more action. lowe's is cutting back getting better i like home depot better than all those. that'sy own it for actionalertsplus.com. but for walmart don't buy. it maybe the age of walmart part 2 but it's not the age of walmart part stock. and that's an important

distinction. oh, man. we haven't had someone from this state in ages and they've got a great football team. sharon in north dakota. sharon. >> caller: hi, jim. a big north dakota. >> i misspoke. i remember it was your basketball team that got into march madness. i'm too focused because of all the espn college zone stuff on the air right now. go ahead, sharon. >> caller: i'd like to know about wab. >> the railroad company. this is the old westinghouse air brake. a.b. the rail industry is starting to get its mojo back but it hasn't -- the capital equipment company like rail car or trinity or lab tech. i'd much rather see you in csx. wouldn't do a component company. i need to go to teddy in missouri. oh, man, big 12. teddy. >> caller: can i give you a big mississippi river, missouri ba-ba-ba-boo-yah. >> yes, you can mr. gateway to the rest of the country. what's snum.

>> caller: i'd like to hear about dana corporation. >> we missed it. it's a component company. it's already moved too much. i feel like this stock has some pullback. it's up to 7. there's a lot of stocks that look a lot like davna. not yet. >> don't buy. >> i'm taking another. i'm take one more because i feel like taking one more and that's as good a reason as any. i want to go to jeff in the illini. jeff. >> caller: cramer. boo-yah to you. >> boo-yah to you. >> caller: how are you doing today, sir? >> i'm not bad, thank you. how about you? >> caller: good, good. this is a great opportunity. i've always wanted to get a chance to talk to you, sir, and this is a great blessing for me. >> i am thrilled that you're calling. go ahead. >> caller: thank you. mr. cramer, i wanted to ask you about philip morris which i believe the ticker symbol is pm. >> when your stock was at 43, 44 i was talking to my research director of actionalertsplus.com.com, my friend stephanie. we were saying if it got to 42, 43 we would have to -- got to 45, 46 and i'm thinking, man, maybe it comes down for a day. wouldn't come in.

now it's at 49. it behooves me never to recommend a stock that i passed at 44 to recommend at 49. i'm telling to you take a pass. take a pass on pm. i already missed the easy money. stay on the sidelines for pm. and stay with cramer! bull market or bear, 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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hey. when i interview a ceo, you'd better listen up. this morning xilinx, the semiconductor company, the mobile internet play, came out and boosted guidance big-time. maybe you didn't have it. i don't know. the last time i spoke to xilinx's ceo, july 16th he said the company's troubles were behind it. he was bullish about the future. so i got behind him and xilinx. boom. 18% gain. i'll take it. better than a sharp stick in the eye. i want to emphasize this because we're about to talk to one of the best ceos in the apparel industry. wes clark from jones apparel? just a second. no. eric wiseman of vf corp. vfc. it's a stock i like so much i own it for my charitable trust, actionalertsplus.com. last time we had wiseman on was

february 11th. vf corp. was trading at $53.87. now it's at $70.73. a 31% gain. eric was very positive about vfc's ability to hold out despite being in the midst of what looked like the worst environment for retail in ages. he was right. we went with him. i loaded up on the trust as soon as i was allowed to because he was so confident. you probably know vf corp. by its brands. oh, man. don't you hate it when you go and the stuff's in the aisles like that? we've got lee's, north face. everyone knows that, right? how about these really cool sneakers? did you see these? did you see these new golf shoes? i'm not kidding. they're golf sandals with a bottle opener. how great is that when you have corona, you know, they don't twist off? the company is the premier brand bui builder. it requires them to invest heavily, expands their distribution, and that's been a fabulous business model. vfc also has a fabulous, yes, they did, olivier marathon man

safe dividend raised 36 consecutive years. it's an accidental mid-yield we are at 3.3%. vfc's revenues were down 11% in the most recent quarter but despite the decline sales in asia were up big, 32%. that's an area wiseman highlighted the last time he was here. and the direct to consumer business group 19%. this is a company that really has its finger on the pulse of the consumer. they know what people want to buy, and they know which way things are trending. on a conference call wiseman didn't make a call on the economy although he did say vfc was well prepared to make it through the second half of the year. with its most difficult comparisons behind it. that's wall at way wack on july 21st. economy seems to have improved a lot since then. consumer coming alive. retail stocks on fire. i want to know what he thinks now. the state of retail, the state of his great company. so let's hear from eric wiseman, vf corp.'s terrific ceo. mr. wiseman, welcome back to "mad money." >> hi, jim. thank you very much. it's always a pleasure to be on your show. >> great to have you. now, i get "the new york times." i get the "wall street journal."

they said in unison there was no back to sdool seaschool season, are more gloomy than ever. they're already talking about how christmas season is going to be bad. isn't it true that actually things were better than we expected? >> well, i think it's true to say, jim, the trend did improve a little bit during back to school, helped in part by the september shift to labor day this year is really going to help the september numbers. but to calibrate your thinking, while the trend has improved, and this month is not over yet we're expecting most retailers to lower comps towards declines than we've seen in the last three to 12 months. >> that's what has to happen. life is not such that you go down 8% and you're up 8%. you have to level it off. >> that's right. we expect the trend to increase. we were coming up against last year's second half which was so challenging and difficult. we planned accordingly. >> one of the things that i think -- and i sboek west card

from jones and i spoke with a lot of department store guys behind the scene. there's a lot of talk that maybe the ways of wall street aren't the way to go. we focus on same-store sales. we focus on top line. what i am hearing from executives in the apparel business is, let's focus on profitability. let's get our inventories down so we don't have to discount so much and gross margins go higher. where does vf figure in the series that maybe profitless sales are the thing of the past? >> well, we're real focused on inventory. at the beginning of the year, we came out and talked about getting $100 million inventory reduction at vf and generating $750 million from cash flow and we are on track to do both of those things. of course, when the inventory is cleaner, both with us and with retailers, there's a need for less discounting. and that will show up in the margins eventually. >> thyeah, that's what i'm tryi

to impress upon people. correct me on my arithmetic, but you say sales down 5% but inventories down 8% that kind of company is going to end up doing pretty well. >> that's correct. and that's where vf is. >> you've got new things going. we've got new vans products. one thing i uls look at vf corp, it never stands still. tell me what's going to be additive to earnings. >> there are three things that are going to make vf go for the next few years. one is our investment in international business with the focus on china. we continue to invest and own retail presence for all of our core brands around the world and we're not intending to become a retailer pit's still going to be only 20% or so of our business. but invasion is key to us. and we drive through each of our brands and each of our businesses and need to take invasion to consumers. what we found in the recession is consumers are responding either to value -- and value does not necessarily have to be price. it can also be about paying a

fair price for a product that they find compelling. so some of the products that you may have on the show and i can't see what you're showing, but the north face has some new products out that are terrificicly innovative and accommodate different north face viewers. we have a new jacket out called crimptastic out for a climber. it has polar tech power stretch and a waterproof shell. and that's for a mountaineer cust merps we also make products for people like runners or cross country skiers. we have a product that's a terrific product that incorporated primaloft that's 30% recycled insulation with all kinds of lightweight things so you don't get too hot while you're active. and it has stretch panels in it and all kinds of other things

for the person who's active outdoors. >> i got to tell you something, even more than the innovative products and the number, i think your enthusiasm to me says we're on the right track sticking with vf. eric wiseman, chairman and ceo. thanks for coming on "mad money." i'm sticking with this one. i have said it before. you need a retail play. it's only 20% retail. this one has it. good dividend, good strength, low expectations, inventory control. new products, vf. pretty easy, isn't it? "mad money" is back after the break. click today.

i like to say there's a bull market somewhere. i promise to try to find it for you. i'm jam cramer, see you tomorrow. next up on "kudlow," the fed has a pornographic problem with a six-letter dirty word called the dollar. senator jim bunning, jim chanos, robert crandall, dick armey and a cast of thousands will comment today.

>> too today on the "houd low report." a pornographic problem with a six-letter word. d-o-l-l-a-r, as in the dollar. no mention in the rise in gold or the risk that cheap money inflation will rise up and bite the fed later in the derriere. and by the way, jim bunning will join us later in the program. and plus, according to the new york times, that's right, the new york times, sarah palin delivered, and i quote, an articula articulate, well prepared and even compelling speech in hong kong today to bankers, investors and fund managers. we have dick armey to talk about sarah, china and the g-20 which starts tomorrow. and finally, robert crandall and

jim chanos on the stock market. i'm larry kudlow and we begin right now. good evening, everyone. i'm larry kudlow. welcome back to "the kudlow report" where we believe free market capitalism is the best path to prosperity. we've got cnbc team coverage. hampton pierce on the fed in washington. maut nesto with the market reaction from the new york stock exchange. hampton, you're up first. >> larry, every six weeks or so, we're always looking for just the slightest change in language for clues to the fed's thinking about the economy and interest rate policy. no mystery today. it was right there in the first sentence. quote economic activity has picked up following a