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tv   Mad Money  CNBC  September 30, 2009 11:00pm-12:00am EDT

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looks like we're in for a bumpy ride. go ahead, ignore me. but in this turbulent market, you're going to need help... protecting some of your assets for retirement. an axa equitable annuity could give you... guaranteed income for life. i'd call them, but what do i know? i'm just the 800-pound gorilla in the room. don't worry. i'm here. want guaranteed income for life? axa equitable is redefining what you expect from annuities. ooh, peanuts. 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 trends. just trying to save you a little money. my job is not just to educate
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but to entertain. so call me at 1-800-743-cnbc. today say total microcosm of what's happening right now in this darn market. we opened nicely higher. up a quick 30 dow points. and then we plummet triple digits when the key numbers showing economic weakness. then we rallied back up 40 points for no particular reason. and then we take another tumble with the dow closing down 30. what a wild one. a total, yes, yo-yo. i was never good at yo-yos. and no one can seem to grasp whether we're going to finish up or down. which brings us the gigantic end of quarter question. why the heck is it so confusing? why is it so hard to get a handle on this particular stock market right now? why are we seemingly stuck at this level? why did the market start up, then basically crash and make a miraculous recovery only to
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finish down again i have the answer. it's because the data are totally and completely conflicting. and you can make a good case for being bearish or bullish. everything in this market is janus-faced. it's two-faced. or for you batman fans, it's like harvey dent slash two-face. they're cancelling each other out, giving us this bull-bear. think about the state of the consumer. on friday's game plan for the week i said we had to watch two key stocks on tuesday to gauge the health of the consumer. one was nike. the other was darden, aka olive garden and red lobster.
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i said these companies will tell us a lot about the discretionary spending situation, tell us a lot about the retail consumer. and sure enough, they come out. what happens? nike reports a great number. says business is humming. gives you the future orders. remember that was the key metric i told you to look at that's a fabulous predictor of footwear sales over the next six months. futures orders better than expected. darden, on the other hand, amazing. a not so hot quarter and then terrible guidance. sales aren't picking up at the olive garden or red lobster. so nike and darden cancel each other out. we learn nothing except it could go either way. how about housing? inventory, the ones reported by the national association of realtors, are way down. new home construction's way down. both are good for my thesis that housing bottomed on june 30th.
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home prices have been stable for three months. not too shabby. yet people seize on every bit of foreclosure data and the expiration of the new home buyer tax credit, well, they're saying the future's worse than the past. so we don't have up side here. even though the key states, florida, california, and arizona, have all seen prices decline by 40%, and that's been where the bottom is over and over again. but real estate's a local business. so if you're in a bad market, you don't think it's getting better. and new york city, where a lot of opinions about the market are made, is a bad market. where a lot of sales aren't closing. the perception is unless congress extends the tax credit pretty soon, because it's over november 30th, you have to close by then, we're going to see another leg down. people are talking about the shadow inventory owned by banks and commercial real estate. i say those aren't real problems, but it doesn't matter what i say. the pundits say they are all bad. and they can't be convinced otherwise because they've made up their mind.
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we have conflicting data with retail. sales are pretty bad across the board. but profits are going to increase. maybe fabulously increase. because most retailers budgeted for bad sales. remember, that's what we heard from eric wiseman, the ceo of vf corp., a stock i like for my charitable trust, when he came on the show last week. the two-faced nature of the current moment is all over the place. you'd think the wealth effect, the fact people have more money now that stocks are up and housing stabilized in key parts of the economy would help drive the economy. but the wealth effect doesn't matter if we don't start creating jobs. i'm going to repeat that. it doesn't matter if we don't start creating jobs. you see the problem, writ large, with the congress, it looks like congress is losing on the health care reform, the democrats including president obama. that's a positive for the market. but president obama keeps
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pressing his bet. that's negative. and it's only now that he seems to be focusing on creating jobs. well, better late than never. maybe. the problem is we've had so little stimulus to the big job creators like infrastructure companies as nucor ceo dan d'amico keeps reminding us that we can't create jobs. companies may not be firing anymore but they're not hiring either. we've asked every ceo and we haven't had a single one who's talking about hiring. and of course we have to worry about friday's jobs numbers as well as tomorrow's jobless claims number. you see the dichotomy in the banks. they've cleaned up many bad loans. they've raised capital. look at that huntington bancorp starting to move up because they did a second capital raise. the market likes that. they can make lots of money every morning when they turn the lights on. why? because think about what you make on your deposit.
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you make nothing. try to get a loan. you're paying at much higher rates. that's called the yield curve. and it's very much in the bank's favor. but if we don't start creating jobs, mr. president, then we won't create more loans either and credit card losses, which look like they're peaking at capital one, american express, discover, and jpmorgan, would indeed have still one more leg down. thankfully, the fed isn't oblivious. >> they know nothing! >> they know something. so it keeps rates low and says it will continue to do so. partially to help the housing market with cheap mortgages and partially to help banks reliquefy the system. that worked in 1991 at end of the s & l crisis. that time frame, by the way, produced the best banking stock environment in history. so loan losses might be bad, but earnings will be good. i mean, here we go again. ipo market. then aone comes along reminds us how much we can make. takeovers non-existent pen in the last few weeks kraft-cadbury, abbott solvay, xerox-affiliated. the m&a market may have a pulse. if a company sells in asia, like most of the techs, hewlett-packard, intel, all the semis, then it's all aboard. >> all aboard! >> but if it's totally domestic,
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forget about it. same with the industrials. china exposure? fantastic. domestic exposure, awful. strength in asia along with the mobile internet tsunami is like tech can be good. no other -- at retail the high end's working. that's why we hear good things from ralph lauren, from tiffany. but then walmart gave a speech last night, said the u.s. is lethargic, no quick turn here, although india and china can move the needle for the world's largest retailer. we have an easy bull and an easy bear case. you can't do well if you overlook the negative, and you can't do well if you overlook the positive. one way to play this is the cramerican way, diversify. that's why i bought both home depot, a retailer that needs good home data, and altria, a tobacco company that could care less about new home data but has a yield so low it's terrific. these are polar opposites. i did it for my charitable
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trust, actionalertsplus.com today. sent out an e-mail saying i've got to play it both ways. that still doesn't help figure out where the market is going, though it does explain why it can be such a -- all right. let me just try it again. yo-yo. here's a little rule of thumb that can help us understand this market. when the fundamentals of the economy are pushed, the fundamentals of the money management business are what controls. the reason why we could rebound today after a big sell-off, i think it wasn't because of any data. it was because of the mechanics of money management. hedge funds are underinvested. they're too negative. many of them have missed one of the greatest rallies in history. they need to cover their short positions now that we're going into the fourth quarter and go
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long or own a lot of stocks to show their clients they're not morons. hedge funds are fighting bob marley. they're battling against the redemption song, trying to keep the money from clients who want to know how long will knees managers kill their profits. mutual funds are also pushing the market higher because, well, the more they're up the more marketing teams can go to work, the more money they bring in the more stocks go higher. a virtuous circle. they go up, by the way, by mfg their own stocks to improve performance. that's why you can see tech up. the fundamentals are good, but the nasdaq is also the place of severe outperformance. so money managers will put money to work there right now to boost those stocks and their winners in it, like the semis and of course the components of the mobile internet index. need i remind you apple, ciena, skyworks, abc telecom, com scope, tekelec. here's the bottom line. if the economic fundamentals are a push, creating the yo-yo action, which i refuse to use again because i couldn't even do cat's cradle, then what happens? we default to the fundamentals
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of the money management business, which remains positive going into a fourth quarter with huge gains under our belt including the best quarter in ten years. just finished today. and of course we keep our portfolios diversified. not to mention play "am i diversified" on this very show. let's start with the calls. let's go to amy in florida. amy. >> caller: hey, jim. and a great big boo-yah. >> look at that sunshine boo-yah. you know how to play. you start right at the top of the show with high energy. i say hallelujah. ♪ hallelujah okay. hit me. >> caller: i'm relatively new to stock investing and chart analysis, and you guys have helped me out extremely there at cnbc. i'd like to thank you. >> thank you. the whole network does a very good job. very good job. >> caller: my question is on
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outdoor corporation. the stock has had a 20-point run-up since september 8th and appears to be extremely overbought. thinking about taking a short position on deckers. is it a good move or -- >> amy, you're a new investor so, immediately i have to tell you short selling, remember the dynamic of short selling. stocks can go up to infinity but they can only stop at zero. i think you're playing with fire. we had cress crowd on recently, the excellent ceo of jones, jny. what did he say was strong? he said boots are strong. i have sources saying boots are strong. i understand from one of my sporting goods stores they can't keep deckers in stock. don't forget amazon is buying zappos. that's one of the largest purveyors of deckers. i think you may just want to step aside. sure, it's moved a lot but that's no reason to short it. valuation's never a good move, and i don't think you'll get a short pull. let's go to mike in ohio. >> caller: a big established in 1804 ohio university bobcat alumni ba-ba-ba-boo-yah! >> the bobcats never get their due here. we thought about the bearcats. we've talked about ohio state.
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let it be known that this show is dedicated to ohio university. and how can i help mike? >> caller: jim, my question's about american oriental bioengineering, aob. >> whoa. you know what you are, you're a gunslinger. go ahead. >> caller: with news yesterday china is planning a national health care initiative and knowing pharmacies are profit centers. is there a best of breed play elsewhere? >> we know the chinese method. if you can't save the patient, they execute you. but here's the problem with that. i think that chinese market is once again very hard to game, very difficult to understand the accounting. i'm not going to go there. i'm not going to bless the trade. don't buy. don't buy. sorry. now, we're in a world where hedge funds are fighting the great bob marley. that's right. marley never wanted to stand aside and look while the hedge funds kill our profits. which is why he wrote the redemption song. i think you stay diversified and don't forget, the money management business, when the money managers are all up big, they've got to buy, not sell.
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"mad money" will be right back after the break. >> announcer: coming up, you asked. now we deliver. as cramer goes one on one with dupont ceo jose fontaine on the executive decision. plus, they're smaller than laptops, but what's the best way to plate netbook craze? cramer's finding out if what makes these hot devices tick could make you some "mad money." and later, try to keep up with cramer as he takes your calls rapid-fire in an aught new "lightning round" all coming up on "mad money." i was always going.
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last week during the "lightning round" neil in new
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york called in, asked about dupont fabros technology, dft for you home gamers, and man, it stumped this chump for certain. so i do what i always do when i get a call that makes me feel like a joker, of course after picking myself up off the dirty linoleum floor. i circle back, do my homework so i can answer the question which i did on thursday. dupont fabros technology as it happens is sort of like the holy roman empire, which was neither holy nor roman nor really much of an empire. it's got nothing to do with dupont the big chemical company. it's not a technology stock. nor is it owned by john fabro, who is actually favreau who put me on the map with "iron man." it's a reit. i said i like the stock after doing the homework but i need to hear more bay dividend here because that's why people buy real estate investment trusts. they had to stop in 2008 when it had some trouble with financing. luckily the ceo's a close watcher of the show and by popular demand he's agreed to
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come on tonight and help answer these questions. just to refresh your memory, dft is a real estate investment trust that owns data centers. these are big buildings where technology companies who lease the spaced keep their servers. and that's companies like yahoo or microsoft or google or facebook. think of dupont fabros as a nice real estate tie-in to the mobile internet tsunami and the broadband shortage it's creating. remember last night we had windstream on and they talked about that. the company has seven active data centers, five in virginia that are 100% leased and two more that are both still trying to find tenants, one in virginia and one in chicago. dupont fabros also has three data centers on which construction was suspended. six more in the pipeline that still haven't entered the planning stage. now, i like the business because there's a shift occurring from
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in-source data centers that technology companies own and operate themselves to more outsourced data centers. as the need for bandwidth increases, which we know it is, so does the cost of owning a data center, which is why companies have increasingly been leasing space at wholesale data centers. according to oppenheimer, fabulous report out today, the demand for outsources data centers could -- the capacity could rise by 15% annually through 2012. of course better than a sharp stick in the eye. dupont fabros intends to expand by leasing out its existing facilities and bringing on 1.6 million gross square feet of additional capacity. i like the story. i've got some concerns, though. and in order to expand the company's extremely dependent on credit markets. there's around 706 million in debt versus 39 million in cash. that's not pretty. 6.2% debt to equity ratio.
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you know we don't like that on "mad money." it needs to raise money to restart the development of its new data centers in virginia and new jersey, where construction is expected to restart in early 2010. now, given that the debt markets are getting better and similar companies like terramark, equinox, and switching data facilities have recently raised money to support their expansion plans, there probably isn't anything to be too concerned about here. still, i want to wait until the dividend comes back before i fully recommend dupont fabros. and i've got a lot of questions. so let's hear from hossein fateh, he's president and ceo of dupont fabros. mr. fateh, welcome to "mad money." >> well, thank you, jim. >> all right, sir. a lot of my real estate investment trusts that i follow, including brandywine and federal realty as well as vornado, and boston properties, mr. zuckerman, were able to do equity offerings before they had to tamper with their dividend or do anything. you knew obviously that things were getting tough. how come you were not able to issue equity when it was time to issue equity? >> well, we certainly can issue equity. right now we choose not to because we don't want to dilute ourselves. management here is very much aligned with the shareholders in that we have about 40% of the
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equity held with insiders. so we don't want to dilute ourselves at this point, but we get calls at least, you know, once a week from bankers wanting to raise equities for us. we're going to be leasing our space in a very rapid fashion, and when the space gets leased up we'll be putting on a little more debt. we only need another $150 million of debt to add two more facilities, or to restart two of our facilities, which will add approximately $53 million to our ebidta. >> given the fact your tenants are companies that are doing quite well, here i'm speaking about microsoft and yahoo represent a big part of your business, is there a sense that what really happened here was business was strong but the credit markets were weak? >> well, that's exactly right, jim. i mean, the credit market essentially totally dried up. and so since the credit markets dried up we stopped construction and were prudent, and in fact we started only one of our facilities, which took only 25 million to do. we've managed to lease 58% of that facility so far. and you know, now we see the credit markets are slowly
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loosening up, and we expect to be raising the additional dollars that we need through credit to finish the other two facilities. >> we're big fans of cloud computing. i own vm ware for my actionalertsplus.com, my charitable trust. we are big believers in salesforce.com, mark benioff's company, ibm's strategy. >> sure. >> you guys would seem to be a kind of a nice derivative play to cloud computing, where you have to have big servers but you don't have to have expensive pcs on your desktop. >> yes, that's exactly right. cloud computing, what it's going to do is increase the amount of outsourced data centers. as you well know, many companies five years ago would want to own their own data center. with cloud computing you can reduce the cost of getting into a data center by having your
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redundancy in geography rather than having a tr-4 data centers you might have two or three tr-3 data centers. so your cost per megawatt in a data center is going to reduce dramatically. >> i understand at last count you were 48% leased in chicago and 58% leased in virginia. has that started already picking up from those numbers? >> our activity is extremely good in both of our data centers. we will announce our new leasings that have or have not been done on our next earnings call on november 4th. >> can i presume that they're not worse than i just talked about? >> we don't lose leases. that's the thing with data centers. this is mission-critical space. so everyone pays on time. this is not i real estate play that you would have a reduction in rents or a reduction in credit. normally our minimum space in
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the wholesale business is someone who needs 2,000 servers. anyone who's producing 2,000 servers of computing power is a very significant company. >> hossein fateh, thank you so much for coming on and explaining the situation for your company. really appreciate it. >> thank you, jim. >> that's dupont fabros 37 he's absolutely right, recently at thestreet.com where i'm chairman we had to do a data center change and the idea that we wouldn't pay our bill on time would be heresy because if we went down for a day it would obviously destroy credibility. he's got a good demand story. i want to see another quarter or two because i need to see that for companies having problems paying dividends that are real estate investment trusts p after the break i'll try to make you more money. >> announcer: coming up, they're smaller, lighter, and less expensive than laptops, but what's the best way to play the netbook craze? cramer's finding out if what makes these hot devices tick could make you some mad money. and later, can you handle the heat? cramer gets you fired up for a searing hot "lightning round."
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plus, how do your stocks stack up in a mystifying market? cramer makes sure your portfolio makes the grade on "am i diversified?" all coming up on "mad money."
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as an environmentalist there are few things that bug me more than finding a great new trend and then realizing i can't profit from it. now, that is how i used to feel about netbooks, the relatively new category of ultrasmall, ultralight, ultracheap laptops. i saw these things were exploding, they were going to be huge. 18 million of them were sold in north america alone in 2008. 35 million are expected to be sold this year. get this, 139 million in 2013. we've got here a massive secular growth trend. part of, yes, of course, because i'm not going to stop, the mobile internet tsunami.
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as people use netbooks as ultraportable computers to connect to the internet when they're on the go. but i figure there was no real way to make money off it. the netbook makers were the same as the desktop and ordinary laptop makers. the component makers were pretty much the same too. i saw the whole thing as cannibalization, a virtual tech donner party. people buying more cheap computers with cheap components instead of paying up for more expensive ones. a total losing proposition for every single company that's involved. >> sell sell sell! >> and i was dead wrong. but i never would have known it if i hadn't done some homework. here i was thinking netbooks are all fine young cannibals, then i listened to best buy's conference call a couple weeks ago, which by the way i like listening to more than the music of the fine young cannibals, and they told me something completely and totally different. this is why, by the way, if you own any technology stocks you
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have to follow the great retailer best buy. even if you have no interest in owning it. because it's the largest retailer of pretty much every tech gizmo and gadget out there and they've got gigantic insights we otherwise can't get about how the markets for these products are doing. hey, look, it is the market for a lot of these products. so what did best buy say on the conference call in response to some questions? they told us netbooks aren't cannibalizing sales of other computers at all. they told us it's a brand new and incredible growth category, something their customers are buying in addition to an ordinary laptop and smartphone, not instead of them. wendy fritz, best buy senior vice president of computing said on the call, "when we look at the netbook category, we view it as a companion device. so it's an additional device, not a replacement device to a notebook. so that business is generally and vastly incremental." then brian dunn, best buy's ceo, chimed in, putting all our netbook fears to rest when he said, "i think the notion that people are going to choose one device, one for connectivity, is an erroneous assumption." listen, i'm taking them at their word. they've never, ever been dishonest. in my experience with them. so i am saying that netbooks are not cannibalizing sales of more
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expensive computers. in fact, i am going with them and saying it's creating an additional incremental world. it's an entirely new product in a category that's going like crazy, and that means we've got to find a way to make money. and just like that i realized if i had been running best buy's conference call i would have followed up by saying are you ready skee-daddy? i probably wouldn't have said that on the call. buy -- ♪ nvidia. the best way to play the netbook
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explosion. that's right. nvidia, for all of you home gamers. nvda. the big graver chip company. second only to intel in the graphics processor business. although when it comes to graphics processors on a dedicated video card, the more expensive kind, nvidia's in a duopoly with amd and amd just passed it to become the largest player. although nvidia's now working on taking that market share back. now, in "mad money" we clearly don't like real competition. it's only good for the consumer. we want a slap-happy duopoly. but every once in a while there's an actual market share battle and sadly we've got one here. not good news for shareholders because we would prefer if it weren't a violation of every single antitrust law that nvidia and amd get in a room and fix price. wrong. still, nvidia also has a mobile internet kicker. i think it's the smartest and best way to play the notebook trend. and i never would have known it
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and i would still be negative on the stock and tell you to buy amd for the graphics card business if i hadn't done the homework. a derivative special homework by listening to the best buy's conference call and realizing there was room for both. why nvidia? first of all, the company understands the netbook opportunity. recent deutsche bank conference, the company talked about "there's more and more people proving they want to be able to take their computer with them." . we know the category and desire is people want to be able to have a high definition internet experience anywhere they want all the time." that's end quote. nvidia's a line of compact graphics processors, the ion, for netbooks. just for netbooks. it's gaining significant traction. the company's released more than 50 ion based products in 2009 and so far ion sales are tracking ahead of expectations courtesy of some major design wins with several of the leading pc makers. now, here's what's really important, and this is what made me decide to do this segment.
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nvidia's the graphics chip provider for hewlett-packard, and hewlett-packard is the single best account you could possibly have in the world. yes, this is the graphics play for netbooks. what about the rest of the business? i liked amd over nvidia because it was taking share in the graphics processor business. but nvidia looks like it's recovering thanks largely to stronger demand tore all graphics processors rising tide. total shipments were up, get this, 31% from the first quarter to the second quarter. i have don't have any other industry where we're getting that kind of growth. so there's definitely enough room for everyone. inventories for graphics chips are at record lows. remember what i said. when you're at record lows that means you have pricing power. and why do they have record lows? there was a solid back to school season not written about in conventional papers. intel said the pc units would really start to grow again. that's going to benefit companies like nvidia. well, the company should also be poised to start to make a lot of other great, great other
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businesses, right? they're going to take back share. and why are they going to take back share? because every time they release a new product they are actually going to be lower priced and faster. smaller, 40-nanometer chips, developing its own technology for chips that eat up, this is really important, less battery life. remember, you're on the go with this. plus, as businesses start spending again, nvidia's high-performance work station chip business makes up 15% of sales. i think we'll improve dramatically. very important given this is a profitable business. 60% to 70% gross margins. higher than intel. no amount of banning amd here even though we've called a triple in that speculative name, but we really have to get behind this competitor and do it right now. with two big new operating systems coming out, windows 7 and apple snow leopard, snow leopard hot az pistol, there should be a big upgrade cycle in pcs, which means more sales of nvidia's graphics processors. mobile internet kicker, nvidia
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has a line of chips called the tegra for portable devices like smartphones, navigation devices, pdas, just starting to ramp. these chips are in the zune, i know not everybody's favorite, but 50 other devices. here's the bottom line on nvidia. netbooks are huge. it's the fastest growing category. they don't cannibalize smartphones or notebooks. so nvidia is the smartest way to play them. but don't forget the netbook phenomenon is just another aspect of the mobile internet tsunami, which is bringing up all of these strong companies that i talk about endlessly. it's the netbook angle that makes nvidia more attractive than i thought. and i wouldn't know about it if i hadn't been listening to best buy's conference call. thank heavens for homework. phillip in north carolina. phillip. >> caller: hey, let me give you a tarheel boo-yah, jim. >> man, let's just call it carolina. i know every time i say that it must really aggravate north
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carolina state and the south carolina people like steve spurrier must be furious, but a carolina boo-yah back at you. >> caller: thank you. about four months ago you highlighted cadence design systems in one of your spec picks. >> absolutely. >> caller: and i bought some shares. currently the stock seemed to stall out some. with the announcement of dramatically increased support of processors across multiple technology which was announced yesterday where do you see the stock moving to? >> first of all, i hate to disagree with my smart viewers, but the stock did hit a 52-week high today. so i would not regard it as stalled out. it's silently on the move. this is a company that went from being a hated despised company that everyone thought was frankly, i'm going to use the word, this is what the perception was, corrupt, and now it's clean. business is slow. can you stay long cadence? netbooks are not cannibalizing sales. they're a totally explosive category. and the way we're going to play them right now in cramerica is nvidia. nvda. stay with cramer. >> announcer: coming up the madness goes nationwide. >> a big buffalo boo-yah. >> from the scorching deserts of west texas. >> from sizzling southern
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california -- >> and jim takes your calls from all across cramerica. >> bah bah-boo-yah to you from st. louis. >> big 110 degree boo-yah from phoenix, arizona. >> boo-yah from seattle. >> in an all new quick-fire "lightning round." and later, whether the dow soars if you're a master of "mad money" trivia, you can win a trip to see a live taping of the show, meet jim cramer, and even kick oft "lightning round." for official rules and prize information go to madmoney.cnbc.com.
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it is time!
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it is time for the "lightning round" on cramer's "mad money." what's that all about? rapid-fire questions. i tell you whether to buy buy buy or sell sell sell. just to be clear i do not know the callers or their stock questions ahead of time. my staff prepares the graphics on the fly. this sound doesn't mean anything. it's this sound. and then the "lightning round" is over. are you ready, skee-daddy? it is time for the "lightning round" on cramer's "mad money." adam in georgia adam! >> caller: hey, this is adam. i've got a home state buckeye boo-yah and a laid-back southeast coastal georgia boo-yah, jimbo. >> i think you'd better get map qwest. you're from georgia. it is all about not this one but ramblin wreck. >> caller: thanks for all your work. tell me about ire and the irish banks. >> i've been working on some irish banks courtesy of some irish friends i have in the banking business. and you know what? i'll recommend this. and allied irish. guaranteed by the irish government. i think it's the best piece of paper out there. i kid you not.
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let's go to chris in pennsylvania. chris. >> caller: mr. cramer, a big keystone boo-yah. >> see, that means he's a steeler fan or he's a penn state fan. doesn't want to admit it. go ahead. >> caller: eagle eagle. >> thank you. >> caller: mon. nova solutions. it went up 20% today. >> well, yeah. you know what? i don't know why it did. so i could make up something and be like a lot of the stooges i see on tv. or i could admit it, that i don't know the answer and i have to come back. and that's exactly what we're going to do. memo to staff on nova. staff, you with me? wake up, wake up! thank you. thank you. dave -- oh, a fancy -- we've got a leopard thing going there. that's my executive producer. remember, she's the puppetmaster. dave in north carolina. dave. >> caller: sir jim, how are you? bodacious boo-yah from the home of the wake forest demon deacons. >> yes.
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the demon deacons, we love them, we always put them -- we always play them as far as we can go in march madness. it's another pool that i won last year, unlike this one. what's up? >> caller: what's up? all right. here we go. alan mulally and ford motor company. >> we're big believers in ford, but as my friend matt has told me over and over again, it's ford preferred, ford preferred, which is much better than the common. i'm reiterating i like ford preferred and i don't want you to own the common stock. how about richard in florida? >> caller: baa baa-boo-yah to ya, wizard of wall street, jim cramer. >> get that guy some epinephrine right now. he's going to need it. what's up? >> caller: i'm looking at deco instruments, d-e-c-o. 250% year to date. >> yeah, but it's part of the internet tsunami! and the weather forecast is for sunny skies! even though it's for a tsunami. you hold on to veeco. what a paradox. let's go to bob in vermont. i'm ignoring the buzzer. bob. >> caller: how are you? >> not bad.
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thank you for asking. what have you got? >> caller: i've got kroger, kr. volume spike in mid september, near its 52-week low. pulls major market share. and i want to know if it's poised to go to $30. >> bob, it's worst of breed! i am going to have to say absolutely not. that is awn likely way to go. i'd rather buy whole foods right here. i will spot you seven points. and i still think whole foods gets to 30 faster. and i think that's the current vegas line on whole foods today. i actually am cheating it. let's make it 33 and i'll spot you 10. how about we go -- one more caller. ryan in virginia. i can pronounce virginia because i'm from philadelphia. what's up? >> caller: boo-yah, boo-yah, boo-yah, jim cramer! it's great talking to you. >> what is that, like torah, torah, torah? treat pretty good move. what's up? international exposure want a little yield, how about i throw some -- right now the refining
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cycle's going your way. or i'll hit you with the chad ryan, new ceo going to be just as good on the last one own that for actionalertsplus.com and i'd buy some more right here. and unfortunately and miserably that is once again the end of the "lightning round"! [bell ringing] the way the stock market's been acting lately you may wonder if you've been doing the right thing. is the advice you've been getting helping or hurting? are the fees you're paying really worth it?
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td ameritrade's fees are fair and straight-forward. their research is independent and unbiased. their investment consultants are knowledgeable and there when you need them. so why not talk to one? announcer: call today to schedule a free investment check-up, or visit a td ameritrade branch.
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i tell i think you should own a stock, it doesn't mean you should throw all of your egg intuz one basket. even if you are positive it's going to go up. no, my friend. i won't have any of that. diversification is the only free lunch, and that's why every wednesday we play am i diversified? what do you do? you call me 1-800-743-cnbc.
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you tell my your top five holdings. maybe you need to mix it up. sometimes i give you a little qualitative, but i prefer to really focus on sector analysis. greg in massachusetts. you are our first caller. what do you have for me? >> caller: b-b-b-boo-yah, cramer. my first stock is bank of america, bac. >> okay. >> caller: second one marathon oil, mro. third one erexel international prxl. fourth, skywork solutions, swkx, and spirit ear systems. jim, am i diversified? >> what caught me there is this happens to be a very eclectic portfolio, and it wasn't like i
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could give a snap judgment on it. let's take a look at what we got. bank of america, i actually premier bank. ken lewis. we'll be sorry to see him go at the end of the year. many people will miss ken lewis. many. okay. marathon, higher yield, 3% yield. spirit ear systems, 52-week high. i love to call -- parexel is a company that tests drugs. decent business. not a great business. skyworks, david ald rich stood over there three different times and told us business is better and expect it. we can you believed. we got a tech company, a health care company, we got an aerospace company, and an oil refiner, and also owens oil, and bank of america, a formal. i say we've got -- >> hallelujah! >> that was easy. >> perfect diversification from the man from the bay state. he is more tom brady than he is
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euclis. let's go to -- did you ever see that in that -- that's -- let's go to linda in new jersey emergency. linda. >> caller: hi, jim. good evening. big boo-yah from bayo. >> exit 14. hit me. >> caller: i would like to know if i'm diversified. i have pfizer, ups, google, goog, peps yesco and algera. >> i'm ready to go to work because, you know, people from bayo, what kind of sense they've got. what dough woe we got? pfizer, it's a pharmaceutical. my least favorite, but this is more about sector analysis thalg than it is about quality. altera, want my favorite in the group. a gatorade group, but it's a good semiconductor company. pepsi on another network today? i kid you not. finest soft krenk company. i own it for p for my charity.
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this is the house you should come to. ups, one of my absolute favorite transports. waivering on its 52-week, you know, we don't want to see you break down there, and google. i'm still reiterating my $600 price target. what is that music? not even done. a tech company, drug company, tech company, pepsi, soda. the music is throwing me off. and transport. we want to throw it out of here and let's pick up let's say racion. doing a lot of work on it, and then we would be in great shape. sdoo hallelujah. >> until next wednesday. stay with cramer. %%%%%%%%
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sdmri regard changes in bank of america positive, and certainly it frees up someone to do some banking work. i like to say there's always a bull market somewhere. i'm jim cramer, and i will see you tomorrow. 100 years of engineering excellence is right on time.
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