i'm jim cramer. and welcome to my world. >> you need to get in the game. >> go out and business. and he's nuts! they're nutss! they know nothing. >> i always like to say there's a bull market somewhere. >> "mad money" you can't afford not to miss it. hey, i'm kramer! >> welcome to "mad money." welcome to cramerica. other people want to make

friends. i was just glad when the bell sounded today. my job, not just to educate, entertain, call me, 1-800-743-cnbc. whew, man was that a plum-ugly day. just annihilation. don't you forget sometimes how bad it can be, don't you you? get the dow taking the 200-point nosedive, s&p 500 down 27. and you wonder, are we doing it wrong in this country? is this the fall of american business or american government? and you know what, a day like today i think it's actually more the latter than the former. i don't know about you, but i'm pretty darn proud of how well american businesses have managed to survive the garden-variety depression, and then the recession and get through this weakened period. but a day like today when you watch congress grill as someone as good as our federal chairman ben bernanke with a lot of questions that have nothing to do with the fundamental issue creating jobs, then you know

congress has to get its act together. you know what they need, they need a role model. and believe it or not, i've got one. i think our congress needs to take -- start taking its cue from the people's republic of china, at least when it comes to economic policy. today is the 60th anniversary of the founding of china. and it's time to admit that the communist china seem to have a better handle on creating jobs than the capitalist in the u.s. congress. i do to the mean to celebrate a repressive regime. i don't -- or why not, right? just leave it on like a real clown. i don't think that we should emulate their human rights track record and mao, come on, he's a nightmare. the wife was a little better. but we can't ignore their economic policy track record. we can have china's job growth

without any cultural revolutions, unless the culture revolutionists is toward live programming that cannot be tivoed, a la, "jay leno." like the chinese do but without threat of capital punishment from missing earnings per share projections. just look at the numbers. china is the model economy. the communist chose to spend massive amounts of money on real stimulus that works. and now they are seeing positive results. chinese got purchasing manages index like we do to pmi, it's been over 50 for six straight months. a reading over 50 means the manufacturing sector's expanding. pmi up slightly from august, ours slipped, but more important than, that in chin at economic employment sub index rose from 51.8 in august of 53 in september. their job creation highest level in 25 months. the chinese are having an

infrastructure-led recovery that's anything but jobless. that's what we should be seeing here in the united states. that's why i think we were down so bad today. we got a recovery that's losing jobs. that's the number this morning, you got goldman sachs saying tomorrow's number is bad. hey, it's about jobs. it's not about losing jobs. it's about creating them. unlike the chinese, our purchasing managers reports and our federal reserve reports, i can't believe they read every single one of these. they don't give us a sense that we're on the right track, frankly. and this is not normal. the new ceo of nucor, the biggest steel company, biggest and best too. has pointed out in previous recoveries we should have already started hiring. the good news is it is not too late to change directions because we don't want to be slip sliding away. a la, simon and garfunkel. if congress follows in the footsteps of china, and again only when it comes to fiscal post-mao policy. recognize that the drumbeat of

health care has created a climate where if you're a businessperson, you're going to put all of your hiring on hold until you know the outcome. remember this is what i am saying the reason that we're down so much today. who could afford to hire new people? you know the big swing in the bottom line that comes to health care could go against you. congress has to get proactive about job creation. few companies have a reason to go back to hiring as their profits are being swelled by cost-savings from curtailing head count expenses. how are we making the numbers? firings. we know that retail, which is a huge percentage of the economy, is more profitable than expected. simply because the whole chain that brings you the product has been scaled back dramatically. including, again, head count. hey, didn't walmart say it all the other day when it described the u.s. economy as plain-out lethargic. believe me they have great monthly dat. they know more than we do. speaking of judgments, tomorrow is when the jobs number comes o out. that's that big one, it's judgment day and i don't mean

reference to "the terminator." i don't believe an october collapse at the hands of the bears. still don't see some job creation soon, we're going to have more days like today. and that's what's causing it. you could say it's profit-taking after a remarkable run, but believe me, if we had jobs, even jobless claims today that weren't so bad, we would had been up 200 north down. now the stimulus will eventually kick in our country with a shovel-ready programs that we need but i think we could use more of it if you want the dow to go higher. if you don't, hey, fine! while technology's bucking this trend entirely, that's being driven by global demand, not the united states. as we've heard from jay bill circuit and infineon, novellus, apple, these are companies that -- they can't offset the lack of new jobs, and most of their growth is in asia. washington could learn a thing or two -- or three, from the capitalist roders running communist china. we need to talk more about jobs and less about punishing bankers. we need to create more jobs and stop focusing on health care. and we need to not focus at all right now on the environment

unless we want to promote natural gas. okay? until that happens, i'd rather be playing the job-creating recovery in china than the jobless one in the united states. so let's make some money off of it. you can do that with wynn, w-y-n-n. the mccal business represents about 61% of wynn's value. you can play with all sorts of consumer companies that will do better because china's doing better and will not hurt because the economy here's so slow. how about procter & gamble? i own that on my charitable trust on actionalertplus.com. i cannot make as much on charity on days like today. pg&e is one of them. but 58% were international and 30% were from emerging and developing markets, which includes china, where we know that the growth will far out strip what they're seeing in developed regions. you can play it with mineral companies. still, china's a veracious consumer of all kinds of metals.

i like vail, not the jerry kind but latin american kind which i own for my charitable trust. i like freeport-mcmoran. i like bhp-billiton. all marked down today because of weakness in the united states, but they're china plays through and through. and in the people's republic, things are good. here is the bottom line, if we don't want to see more horrible days like today, congress should take a page from the little red book rather than from the simon and garfunkel song book and start learning from communist china on its 60th birthday. happy birthday, chi-coms. make job creation priority number one like hey did there. as our lighting man, shawn would say, dim sum, lose some. come on! all right, so stick with the china place like wynn, proctor, vail, bhp, because if we can't beat them, we might as well join them.

adam in new york, adam? >> caller: hey, jim. how are you doing? boo-yah. >> boo-yah. >> caller: jim, i got a question about my johnson & johnson stock. >> sure, man, fire away! >> caller: okay, listen, i inherited this stock about a year ago. i know we're coming out of a good quarter here. best in about ten years. >> yep. >> caller: i don't know now it's the time to sell this stock or if i should -- >> j&j has a huge business overseas. the dollar keeps going down. may i also just once again -- a lot of people here who believe in this network and this country believe that the weak dollar's bad. talk to j&j, they are going to make fortunes in this environment and it's real money. i say, adam, stick with j&j. one that i would recommend most highly. now let's not slip slide away. i think congress ought to take a page or three or four out of here. this little red book. and you know, the communist manifesto and make job creation number one priority. happy birthday, china. and stick with cramer.

♪ coming up, one regional bank is still growing. but is issuing stock hurting its bottom line? cramer goes one on one with first niagara financial group, ceo, john comel on "the executive decision." plus, how would a hedge fund play the potential real estate collapse? cramer shows you the mechanics of money management on an all new "sell block." and later, billions of tech, tweets and video streams are flowing through the mobile internet. jim's seeing if one wireless play could put some towering profit in your portfolio. get your "mad money" text alert today. text "mm" to 26221. to get cramer right on your phone. for more info, visit

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get crushed.

believe me i feel your pain with this awful pullback, my charitable trust was big time today but we cannot just stick our heads in sand even when the selling feels like the battle of the solm or in the hell of a very small place of -- two things that we can always look for on a down day to help counter the negativity. first is notoriously b.i.g. juicy dividend and stocks with gigantic secular growth trends behind them. i got one that i think fits both. it's first niagara financial group, close watchers of the show. know that i've mentioned this before, fnfg. it's a regional bank based in upstate new york. it's got a 4.4% yield and it's poised to benefit from what might be the biggest move in banking since the end of the savings & loan crisis in 1991. and we hear all of the time about how so many local and regional banks here in trouble. couple close almost every weekend, have you noticed that? many could still go under. remember 1,600 closed during that period of the savings & loan crisis.

how do we profit? acting first niagara is the way to profit from, when the dusk clear, responsible lenders like first niagara, they the blessing of the fdic and the justice department. a federally insured song. allowing them to grow from tiny little banks no one's ever heard of to regional or maybe national powerhouses. that's model of fleet bank. fleet was given most banking status by the fdic. it went from being a small providence bank, ah, really, just a tiny thing, to the largest player in new england and it ultimately gave you a 500% return in the process. this trend this time is so huge that i've got an entire chapter on it in my new book coming out very soon called "getting back to even." all right, october 13th. i liked first niagara so much that it's one of the five regional banks that i highlight as the best way to play this

trend. you you will have to bate book to find out the others. in fact the company plans to double in size over the course of 2010. just yesterday it completed a $416 million equity at 12 bucks and even on this down day that instantly made you money if you got in. this was its third secondary in the last 12 months. something to talk about but it can use that money to know to make sworn acquisitions. it already managed strike a deal. its branches by 50% when it bought 57 branches that the justice department forced pnc, nat citi to fire a sell. do it for antitrust reasons because it would allow them to merge. that's what they need dod. all of this at the low, low price of $54 million. that's a steal. and it took first niagara from being a tiny new york player that no one ever heard of to being the third largest bank in western pennsylvania. acquisitioning from where i am remember. and 83 branches in the philadelphia area.

at the close of the deal this little bank will have 4% of pennsylvania's banking business. before these deals had none. now first niagara was actually up today. it was upgraded from steve nicholas. using a $19.50 price target. in part, because its profitability in growth should be 30%, 40% higher than its peers. on the heel of a goldman sachs coverage initiation with a buy on monday. i think it would had been up a lot more of course if the market was not down 200. this a much overlooked bank that's turning itself into a powerhouse in the northeast and i think that you need to sit up and take notice. currently first niagara's trading at -- trading at a discount which trading at a premium. let's hear from someone who knows this great story much better than a do. john koelmel. >> great to be here. >> sir, first tell me you've made huge accusations in the

last 18 months. >> uh-huh. >> how do i know that a lock port new york bank that was a small regional bank can handle all of what you've just gotten? >> well, the good news there is we've message loud and clear as last week to our newest investors. planning and anticipating the opportunity for at least the last 12 to 18 months. we're not huseling to play catch-up. we're hustling to build up the theergz we've worked hard to scale and sure we're ready to execute and minimize that excuse risk and take out any transaction, and we think that we're very well and well prepared and positioned to not only diechlkt here but continue to look forward. >> am i off base to think that a small bank like providence one could only turn tiebt powerhouse? that that's certainly consist went our aspirations. we message that loud and chlorthat we expect to be more than we are today, more than we will be in six months. we're in this for a longer run and we think that our opportunity's abound for us.

>> okay i'm in touch with a lot of people who have bought the bank because of you. i get questions periodically. i got one just last week. saying, about your equity yield. saying, while the last deal worked from an equity perspective it creates an overhang. it seems to me the majority of the last yield was for what they characterize as offensive capital. and my question wanted to know if offensive means to use it for accusations or offensive meaning to raise capital because you wanted the regulators pleased? so we're clearly playing on offense. and whether that's in market or with the opportunity to continue to roll it up, our message to investors last week was, you take the 400, 450 that we've raised, the leverage that up 8-to-1, so 12% capital ratio, you can take our $20 billion to $25 billion. so even if you just look at what we have, additional earnings power capacity tls. >> okay. >> you can then extrapolate that forward to say as you've just recapped i am sure ample opportunities as well.

>> let's talk about that. i understand from some homework that i've been doing that there could be a large government-assisted deal in the cleveland area. maybe as big as $13 billion. would you be in competition? do you have enough capital to even take the call, be involved in that kind of deal? >> that's one of the -- the type of reason why we want to ensure we're very well capitalized. super capitalized. so we can play. does that suggest we're definitive player in ohio? we need to continue to take a look. we look at a strategically, demo graphics, earnings power and execution risk so we'll size that up but as we told our investors last week, fdiy-assisted deal is pretty much in the wheelhouse if it otherwise fits. >> i understand when you did this pnc deal, citi branches, that you got some very high coupon debt, but $150 million at 12%. are you able to refinance that at a lower price? >> short answer is, yes. amounted to some bridge funding and financing that we put in place back of february/march,

when frankly, the markets were otherwise locked up and locked out so we wanted to have a little extra safety net there. >> that's great. >> when we ultimately closed the deal on labor day weekend, we took it down in debt. we can prepay it on our terms and roll that over, roll that out of what we think is more optimal conditions sooner than not. >> one last question. i know that you watch the show, so therefore, you know how important i think that dividends are. some my viewers are say, jim, no way a bank can pay a 4% yield here. there's too much risk. they cannot afford it. >> we're very, very comfortable and confident. in the earnings power that we have in the organization. today is as for years to come. our commitment is to provide our investors with an appropriate yield on their investment return, a fair amount of their capital, as we continue to reinvest back in the business. we stand tall and firm on that one. >> mr. koelmel, thank you very much. >> jim, thank you very much. >> i know behind this bank and staying behind it. you have figured out the model. thank you very much, sir.

>> thank you, sir. coming up how would a hedge fund play the potential commercial real estate collapse? cramer shows you the mechanics of money management on an all-new "sell block." and later the wizard of wall street kicks it into high gear to give your stocks their final judgment on "the lightening round." plus, billions of texts, tweets and video streams are flowing through the mobile internet, jim's seeing if one wireless play could put some towering profits in your portfolio. stay tuned, after the "lightning round" the great challenge begins. you could win a trip to see a live taping of the show, meet jim cramer and even kick off the "lightning round. "for officials rules go to madmoney.cnbc.com.

the bulls have an achilles' heel in the market behind unemployment, and, yeah, okay i talk too much about unemployment. but it's important to you. it's important to me. it's important because the market went down big because of it. but another big achilles' heel. it's the endless doom and gloom

about commercial real estate going forward. now personally i think that all of the negative articles and discussions in this industry are all fakes. for instance, if things are really so bad in commercial real estate, then would we be seeing such performance? these stocks in particular when they've done secondary offerings have been virtual gold mines. if you got in on one of our favorites, brandy wine on the secondary, may 27th you're up 68%. i don't have a lot stocks that are up there that. boston properties. you're up 24% since you bought in on his secondary on june 5thp 'as long as some public companies with public currency like federal neely. another one that's a winner p and then ample opportunities for them to pick up properties that were purchased at the top of the market with too much debt and then buying them at bargain basement prices. starting off a new relatively de debt-free commercial real estate cycle.

i don't see how that is bad but this is a contentious area, commercial real estates. as a matter of fact, it's a real battleground a la jordin sparks. you better go get your armor. that's why i will recommend the right way and the wrong way to play a possible rally in commercial real estates. first, i hardly ever recommend etfs on this show but tonight i'm going to make an exception. if you want to play the upside to commercial real estate, if you think like i do, that people are too negative, then you can't just buy one real estate investment trust. that may turn out to be a clunker that could run out of cash. so, what you would do -- and i'm not saying right here -- because this market's bad. you know that. it comes in. but this is what you would do you would buy the i-y-r, which according to don dion, my expert on ets at thestreet.com where i am chairman, is the most liquid play and the best way to track the real estate investment trust

group. the iyr is short -- that's the symbol, for the i-shares dow jones u.s. real estate index fund. and it collectively mimics the most important names in the group. all the pros consider iyr as the ideal proxy for commercial real estate. now if i. were at my hedge fund i would bate etf and shoermt the worst stocks in the group. that's exactly what my structure would be. in other words let's say that i'm wrong about the group taken turns out that commercial real estate is going to rollover and then it stands the reason that the worst once would go down more than the best ones, right? you would buy in benchmark, etf, and short worst ones. now, you know on "mad money," i never recommend shorts. never. it's too risky for you. think about the asymmetry of this. if you own a stock, it can only go down to zero, not have a but if you're short a stock it could go up to infinity. so it's not inappropriate on "mad money."

however i think it is inappropriate to tell you which stocks i think will underperform the grourng regardless of what happens to commercial real estate. in other words, which ones will do worse than the iyr? and, therefore, i toss them into the "sell block." i like to be mathematical about this, not subjective. so to find out which real estate investment trust stocks that should be in the "sell block" i went to the public filings. for that i went to i-metrics. access data, s.e.c. file, at very fast speed. we went through the real estate investment flust each category. we evaluated them through imetrics on four key metrics. the percentage change in their funds from operations, from the third quarter of 2008 to the second quarter of 2009, we plugged in an i-metrics. occupancy square foot over the same period. we looked at the average rent per square foot. and for retail reits with small properties we looked at the average square foot in the same time frame.

i-metrics allowed us to have apples-to-apples comparison for each real estate trust. i think it is the truest way to measure each player. trying to be objective. and here's what our research found. for retail the data shows the worst reits are developers, diversified. the symbol for that is ddr. and kite realty, symbol krg. ddr funds fell from 83 cents a share in the third quarter of 2008, to a loves $1.15 a share in the second quarter of 2009. >> boo. >> the only retail reit in the group that posted a negative funds from operations per share number. meaning, more than 100% decline. as its funds from operations went from positive to negative. developers diversified also had the worst occupancy rate by a mile. at just 72%. kite realty saw its funds from operation decline by 53%. lowest average rent over the last four quarters. $10 per square feet.

they're both bad. you take your pick. i'd sell either. >> sell, sell, sell. >> how about both? how about the worst office real estate investment trust? again, the numbers that we generated from imetrics said the duke realty is the worst. its funds from operations declined by 56%. that's the worst. with amb, that's andy, mary, bob property coming in the second worst. 51% worse decline. duke the lower occupancy rate. that one gets sent into the slammer. >> sell, sell. >> and the worst apartment reit -- >> the house of pain. >> -- pps property. pps. a real standout when it comes to extremely poor performance. it funds from operation that's right, a key metric, fell from 36 cents per share in the third quarter of 2008 to a loss of $1.32 per share. that was in the second quarter of 2009. it's the only apartment reit that posted a negative fund from

operations per share, number of last quarter. which i think makes it the worst. even though it's occupancy rate were average for the group. it takes a really bad company to basically get the same rent, same percentage of properties than everyone else and still manage to lose lots and lots of money. >> sell, sell, sell. >> so, let's sum up, okay? boat a specific real estate commercial trust to go up is not the best way to cash in on a group that i think people are way too negative about. i'm not talking about today. remember i think that the market's going down. okay? i've been saying that i thought that 9,000 is certainly a possibility. 5% to 7% decline. and i don't want to go buy anything big right now. but if you wanted to you would bate diversified play, the etf, and that's iyr. and make sure that you avoid what are at least the typically the worst plays, according to the imetrics data dump. developers, diversified, kite realty, duke realty and post properties. the bottom line, you agree with me that people are too negative

on commercial real estate? start legging in into the decline on the diversified play, the iyr, the etf, and avoid the weakest reits. a will not advocating on this show. cismly not go up if i am right and most likely go down a heck of a lot more than the others if i am wrong. so don't mess with the statistically worst of breed. stephen in minnesota. stephen? >> caller: hi, jim. >> hi, stephen. how are you? >> caller: hey, a small town buea from minnesota. the host of the pga championship and one of the "money" magazine's best places to live in america. >> you know what i got a big boo-yah shout-out to your town. it's nice to hear a little optimism now and then. >> caller: hey! hey, here is my question, do you consider prolodgis under the commercial real estate label or would industrial real estate be a separate category? and within that context, given their financial position and their position in the global

supply chain, how do you see their prospects for the long term. >> you know my old friend justin namis who i saw recent who is my premier chartist. i bumped into him when this stock was into the low and single digits. it's now doubled. i will not go there. by the way it is an industrial. i think that we've had our gain in prolodgis. i have better once and i want to play this whole thing through the iyr that the point anyway. not all real estate investment charts are created equal. so you have to walk carefully through the battlefields. and separate the bad from the good. stay with cramer. coming up, lightning strikes. cramer goes electric taking all of your calls in a spine-chilling, overcharged "lightning round." plus, billions of texts, tweets and video streams are flowing through the mobile internet. jim's seeing if one wireless play could put some towering profits in your portfolio.

the real back-to-school season is finally here. the "mad money" back-to-school tour is back in session. and headed to the business of college at the university of oc. if you're a student at the university of oklahoma and wish to attend the "mad money" back-to-school tour on october 30th, visit madmoney.cnbc.com.

it is time, it is time we talk about something before i get to the "lightning round." i want to remind you that the great cramerican challenge starts tonight. the great cramerican challenge, what's that? >> hallelujah. >> well, it's a q&a game. the first question will be revealed as soon as this "lightning round" is over. so stay tuned, and then head to madmoney.cnbc.com. madmoney.cnbc.com to submit your answer.

i'm telling you this will be fun. why? because of what you could win. you can win a chance to stand right next to me, right here, and say, it is time, it is time for the "lightning round" on cramer's "mad money." that's right. i give you the calls and the stock question, you can say all of this. you even have to say that my staff prepares the graphics on the fly. and say this too, when you hear this sound. but you'll never get on say "are you ready skee-daddy." it is time for the "lightning round" on cramer's "mad money." start with michelle in texas. >> caller: jim, boo-yah. >> boo-yah. >> caller: i'm calling about citibank and that horrible nosedive all of the financials took today. can you tell me about that. >> everybody is and i've been saying it if we don't get good employment numbers you should settle financials for now and now let me make a point here. citigroup's book value i think is around $5.60. the stock just got killed today.

down 31 cents. i say it's a good level to buy. i'm not backing away. i'll let others who are too timid lose this opportunity. not me. let's go to rich in michigan. rich? >> caller: hey, jim. rich in detroit. a big boo-yah from northwood university in kalamazoo college. >> kalamazoo, i've been trying to get there. how about the grand rapids too. go ahead. >> caller: listen, first of all, congratulations detroit lions. how about ann taylor? >> well, i think that the detroit lions, previous to this sunday, that we just had and ann taylor are a fitting couple. know that ann taylor's come back and that's terrific and i salute them for coming back and however i think that they've come back too far. i want to ring the register. i could buy walmart right here. retail, it's a little touch and go for the moment. because the end of september wasn't so strong. how about dale in wyoming, dale? >> caller: yes, sir. i have a big wyoming, windy high

plains boo-yah. >> nice, nice. i will give you a natural gas natural petroleum wyoming boo-yah, what's up? >> caller: i got a double on garmin. pulled my original investment. and now it's garmin coming out with the smartphone and exclusive deal with at&t. it's going to compete somewhat with my apple's iphone. >> dale, dale listen to me. dale, you caught a double in a bad stock. you know what you do when you do that? you ring the register. come on, man. two points off of the 52-week high. a disappointor. let's cut it in half. take the money off of the table and play it, play half, take all of your cap off of the table and you invest in. let the other half ride. you are playing with house's money. no one's ever lost that. buy a nice sweater with what you take off of the table. can't, sweaters last. how about jason in new jersey. jason? >> caller: i want to give you a big ba-ba-boo-yah, cramer. from randolph new jersey. >> from randolph, holy cow. i think that we beat randolph a couple of times but that's just

between you and me. what's up? >> caller: about geron, ge rn. >> no, no, man, come on, come on. i mean, come on. >> sell, sell, sell. >> i got gilead which i own on actionalertsplus.com for sell. you come with me on geron, i say no. you will not own that. i say sell that company. i'm taking another heated call. i'm going to monica in ohio. monica? >> caller: boo-yah, jim. this is monica from cincinnati, ohio. >> oh, man. it's about time. my favorite in that area. what's up? >> caller: i started managing money about a year ago. and started watching your show and i made a bid -- made a quite of bit of "mad money" there. >> see there you go. how much money do people make watching "csi: new york"? make a lot of money watching those shows. go ahead. >> caller: my question's on stock atp, energy transfer

partners. yesterday they had quite a bit of a drop yesterday after they announced offering of common unit. >> right, right. >> caller: should i buy some more. >> yes. i got to tell you we're looking for protectionism in this environment. the market's a battleground. that's an armored stock. another call. i'm going to chris in georgia. chris? >> caller: a big boo-yah. in the great state of georgia. >> man, i'm with you. i'm totally with you. what's up? >> caller: soa. >> oh, soleution. i'd rather own fmc, i'd rather -- i'd rather own deow chemical. i prefer to get it in the low 50. and that is -- oh, just a second. i want people to check out tonight's trivia question. and i want them to stick with cramer!

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a really nasty days like this one, holy cow. when the market gets pull axed and not to mention mutilated, when the bears are eating their fully bowl of stew we like to fall back on big-picture themes that we know that will work even though we don't start creating new jobs and the economic recovery goes into neutral. if not, reverse -- >> the house of pain. >> you know my favorite theme, it's the biggest secular growth trend since we recognized the pain-old internet would be the next big thing or the widespread adoption of the personal computer. it will have bad days like everything else, today was a bad day but you know what i think that the mobile internet tsunami, aka, the smartphone revolution, that will not be televised, is still on. i'm the only one here talking about it. and although it will come to your telephone. a down day like this gives you a

chance to get into some the mobile internet stocks at a better price. i regard it as a gift. now maybe it keeps on getting for a couple of days but we highlight the theme because the monster of the show is that there is always a bull market somewhere which is why we focused on china at the top of the show and why we're focusing on this great theme that got hammered today. by the way i'm not flinchoth theme. despite integral play in the sumani. skyworks slurksz where an analyst cut numbers. i think that the analyst is wrong. a lot of chatter today that smartphones are not selling. i'm about smartphones, not dumb phones. right now the internet mobile tsunami is in the early warnings. trying to build out infrastructure necessary to support it. a lot of data hogs out there like your iphone. a bottleneck. a shortage of cell towers in the infrastructure. a great way to play the tsunami and along with the two titans on the industry that we featured. we have not featured crown cassel yet. one of myof my favorites is sbca

communications, sam, bob, andy, charlie. i recommended that on september 11th at $26.44. it's down a few cents from there. i got this one from my friend brian ashenberg. he's hitting the ball out of the park. i like that. secular growth trends can trump a lot of negativity which is why i think you should be in this one. sbac owns towers. it also has a business consulting one and building new once. great place to be given, right now that all of the major carries are investing. sprint, which is the worst of the bunch is leasing new sites again. at&t is building out thousands of new towers to deal with all of the stress on its network created by, you getsed it, the iphone. t-mobile expected to start investing again. 3g network. verizon. ltd netyork, first half of 2010. with at&t and metro pcs following. and even kramsera nonfave clearwires ramping up the investment. what does that mean for a tower

company like sbac? once you have a tower you can lease it out to more than concarrier. hey can stick the new antenna up. right now the company has an average. but sbca sees this moving between 3 and 10 tours. which means it could make additional money at very little cost. what a business model. was upbeat. management said activity levels should improve through the end the year and through 2010. is looking to make smaller look smaller acquisitions around the country. we've seen a lot of smaller acquisitions and takeovers lately. the $7.2 million that's been earmarked in rural areas. sbac has a higher portion outside the top 100 basic training areas. 38% for american tower, 28% for crown castle. sbac only has 8,000 towers. american tower and crown castle have 20,000.

the larger ones may be more stable. but it takes less to move the needle obac. i wanted to get the ceo. it's jeffrey stoops. welcome to "mad money." >> jim, thank you very much. please call me jeff. >> i will. the first thing i want to say is this -- you heard me and i know you watch the show. am i too bullish on the notion that we are early on in the innings of the smart phone -- the bull market i'm talking about? >> you're not wrong at all there, jim. we are very early from a baseball analogy. early innings, smart phones still have a long way to gop. netbooks have yet to really take over. take off. then there's dreaming video, all that will require a lot more infrastructure for wireless. >> now, your company is not as big as the other players.

sometimes i feel there's a finite number of towers you can add. you're talking about doubling the number of ten nabts on your towers. the best thing to buy other companies to have towers or keep sticking an tennae up on existing towers? >> it's better to organically grow. but we've been able to buy towers that can provide a return for our shareholders. so smart acquisition and new build growth has really fuelled sbac's success. >> you tell us be careful of companies that have too much debt. then there's a company you like sbac that recently raised $750 in debt where i talked about they're only going to raise $500 million. can you explain why that's not that dangerous given all the money you take in?

>> well, it's given us a tremendous liquidity position. we're sitting between cash on hand and a credit facility and generated cash flows of $700 million over the next 12 months. we're in a great position. we wanted to tap the credit markets to get ahead of the refinancing as the market opened up and we're very successful and happy with the way that turned out. the old adage, you take some real financing when it's good and available to you. >> we had the ceo on the other day talking about the great growth of rural america. particularly given the fact that the government has said that it's important to stimulate rural broadband in this country? >> well, there's a lot going on in that area right now. there's hearings on capitol hill. they just closed out the period for deliberation of the first round of the stimulus funding. i saw there were $28 billion of

requests and applications for the first $4 billion. there's certainly great demand and interest out there. we're expecting the awards, the first round rewards be made known ild say in late october, early november. and then the money should start to flow after the first of the year. >> we've got a lot of great data points ahead then. >> thank you so much for coming on "mad money." >> thanks, jim. take care. what do you do? sit on your hands? maybe sell some of the losers. buy a company over a few days when the market is going down. it has nothing to do with the jobless or the unemployment number. other than create a lower price stock than off right to. .

everyone is bearish all of a sudden. should it go to 9,000? sure. but you know what, there's always a bear market somewhere. i'm jim cramer. i'll still be here tomorrow. up next on "kudlow." the economic stats are better than you think. cnbc may be moving the epa could wreck the economy and more talk on iran means nothing.