tv Mad Money CNBC October 3, 2009 4:00am-5:00am EDT
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i'm jim cramer, and welcome to my world. >> you need to get in the game. >> firms are going to go out of business, and he's nuts! they're nuts! they know nothing! >> i always like to say there's a bull market somewhere, and i -- >> "mad money." you can't afford to miss it. >> hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to staunch the sell-off. my job is not just to educate but to entertain.
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so call me at 1-800-743-cnbc. for next week's game plan you need to understand where i think we are in the lifecycle of a decline, one that's caused by severe job losses before we go into individual stocks. now, in the first stage of this kind of nasty sell-off everything goes down. but after eight days of woe i think we're wrapping up the everything goes down phase. at the end of this destructive moment the stocks of companies that make stuff you eat, drink, smoke, or medicate with stand out. they begin to be like stone walls. now, you saw that in today's moderately down tape, buoyed precisely by these stoic stocks. in this bottoming first phase, the companies with great secular growth trends that transcend economic weakness, think apple, which was up four points today, because of the mobile internet tsunami, rally hard. don't need the strong economy. however, at the same time the
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stocks of companies that do need economic growth continue to go lower. next phase, the next third, i think will happen next week. i expect the accidental high yielders to bottom. as well as the highest-quality banks, insurers, and retailers. while companies that make expensive things you don't need, unfortunately, including cars and homes, will still get hammered. the latter part, the last third, most likely won't bottom until they go a lot lower, and that could take a while. so as stage one declines, the vicious phase ends, you go for the soft growth stocks and the secular growers, secular meaning it doesn't need the economy. so we are now clear to begin buying all these kinds of stocks and avoiding the others until they're cheaper. okay. next week begins report card week for companies. yes, earnings season. so any game plan must deal directly with that thicket, and it's only going to get thickier this time around because of today's awful jobs number.
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so you know what we do when we have total uncertainty? we search for what is certain. i'm talking about a strategy time tested by me from when i used to manage half a billion dollars worth of rich people's money, where we only buy the stocks of companies that have already told us for a preannouncement ahead of the quarter, already told us they're getting a-pluses. in sectors they have the most confidence in. in my experience you only preannounce better than expected earnings when it looks even better in the future than you're willing to say. so those stocks are as close to certain as you can get. especially they're now trading some of them below where they were when they get you this great news because of all go down sell-off. the game plan for next week is what you can buy with confidence going into earnings. it's a cheat sheet of what often works. i've got four of them for you. these are things you can start buying monday. the first is general mills. okay? cheerios. this just preannounced sharply better-than-expected earnings
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less than 30 days ago, september 10th. at the time the stock was around 60 bucks. it's now around 63 bucks. after going on to report a blowout quarter september 23rd and raising its fiscal 2010 earnings growth guidance. okay so, it's not as big an increase as you would expect off the guide up because the markets kept going down. we know general mills is taking share, doing a fantastic job of controlling costs. the stock i regard as being immunized from a big pulverization that could occur next week, although i don't expect one, because we know exactly how well it's doing and it's doing fabulously. second, i like procter & gamble. pg. which i own for my charitable trust, actionalertsplus.com. this company preannounced on september 10th. it reaffirmed guidance. that sent the stock up 4%. closed at 56. because the company had been a serial, s-e-r-i-a-l kind, underperformer. and it sure was reassuring just to hear, it was like a lovie
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blanket, that procter would do as well as it said it would, finally would not disappoint. now, the stock at 56 bucks and change, it's only slightly higher than when it closed after the preannouncement. this one's been kept down by the huge sell-off. it's a company that's gotten its act together. still cheap on the dividend. 3%. broad weak dollar exposure, which is good for stocks. and i think we can expect good things when it reports october 29th. now, let me give you two tech stocks, add to your menu of companies that preannounced better than expected earnings. because tech is one of the areas still working. i like xilinx. you heard from the ceo. he was just fabulous. they're a semiconductor company. they said things were better back on september 23rd, happens to be my sister's birthday. now you can get it at $22.18. it's on sale. it's like a dollar store. xilinx raised its sales guidance thanks to broad-based strength of course, mobile internet, and i really like the look of this one going into when it reports on october 14th. okay?
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our second tech play is teradyne. now, this one's really interesting because it just told us yesterday that things were good. no one paid any attention. the market was down 200 points. despite the positive announcement, teradyne closed down at $8.80. do you know it was at $9.25 on wednesday. you can grab it for less than the cost of when we found out things were so good. that's ridiculous. teradyne's cut costs, and even better the semiconductor test business tends to really pick up at this point in the cycle. that's what teradyne told us. something levered to a totally different cycle, this is aerospace. we want boeing. okay? ba. accidental high yielder, 3.3%. there's been a lot of good news coming out of the airline and aircraft leasing business lately. the launch of the dreamliner going to happen this quarter. brand new aerospace cycle. boeing is crushing airbus. weak dollar. multiyear story. so general mills, procter, xilinx, teradyne, and boeing have all been immunized against any future sell-off.
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that's why i like them. i like them right here. i like them on monday. now that we're through the what to buy portion of next week's game plan, let's talk about what you need to look for, particularly when we have companies with very questionable decisions caused by refs. you know what we do when that happens, throw the red flag. a lot of important companies reporting next week. on tuesday yum brands. okay? yum. now, you probably know that as kentucky fried chicken or maybe taco bell or cramer fave pizza hut. they pay -- you've got to pay attention to that because it could potentially give the restaurant business a chance to redeem itself after darden, meaning red lobster -- that was a bad number. and olive garden's lousy quarter this week. however, if yum disappoints, weakness in restaurants definitely part of a larger trend. and yum can take down the whole group with the wrong comments. mr. novak, please don't do that. but he has to speak the truth. wednesday's an interesting day because we're going to be talking about costco. which already told you things were good. and family dollar, fdo.
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both those companies report. and they'll tell us a lot about where the consumer's spending money. costco said great things recently. i would love to see that retail momentum stay strong. it's one of my favorite places to shop. and i always fast before i go there because of the free samples. how did you think i got rich? we actually need family dollar down if we're bullish in retail because we want families shopping in places where stuff costs more than a dollar. even as i like my nearby dollar general for pretty much everything, especially good & plenty and licorice. we've got two big agriculture stocks reporting next week. we've got mosaic, the fertilizer, reporting on monday. okay? and monsanto, the king of genetically modified seeds, on wednesday. mon. we want to listen closely to what monsanto has to say about a potential antitrust crackdown if at all. also the state of agricultural
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commodities. i don't have high hopes here. monsanto's already issued down side guidance, flagging roundup sale. but if they say good things we may have to reevaluate the ag trade, maybe get more positive. we're very negative right now. thursday, oh, boy, not an earnings story. thursday is what we call macro data. okay? and we have a claymation death match of macro numbers. it's not alien versus predator, although i first thought of putting that in. retail sales. okay? because i couldn't figure out which one was the alien and which one was the predator. the one with the dreadlocks, retail. retail sales could be boosted by a later labor day and cold weather, leading to more fourth fall clotheses. that's where they make their big money. but we also have -- that's a v. jobless claims. we know how important they are. and they come out the same day. we need to see something better than what we saw today. a bad jobs number will cancel out anything good from retail sales. but a good one will help us shake off the shroud of weak
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employment. here's the bottom line about next week's game plan. as we head into the uncertainty of earnings season, i need you to stick with the safest, most certain stocks you can find, the ones that have already preannounced better than expected numbers. i'm talking general mills, procter & gamble, xilinx, teradyne or companies with huge multiyear cycles like boeing. keep an eye out for yum good gauge of the restaurant business. listen to monsanto, see what they say about roundup sales and ag business. and more important, jobless claims on thursday. only good retail and jobless claim numbers can change the direction of this market from bearish to bullish regardless of the earnings of individual companies, my favorite, the bear bull. why don't we start with eric in california? eric. >> caller: hey, jim. boo-yah from l.a. >> from l.a., man. we haven't gotten a lot of calls from l.a. this is terrific. i'm glad to have you. what's up? >> caller: yum brands has more kfcs in china than any other fast food restaurant and yum is
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looking to expand taco bell in india. my question is do you think yum's is a better growth play than mcdonald's even though mcdonald's rolled out mccafe this year? >> no. because while mcdonald's domestic isn't as strong as mcdonald's international, yum domestic is not good. and i am hoping when we hear from them next week that we are not going to have bad sales compared to last year for all of them, for taco bell, for kfc, and for pizza hut. if we have that, we're going to not be able to offset what happens in china. i mean, it will be too late to offset china. why don't we go to mike in illinois? >> caller: hey, jim. >> hey, mike. doesn't illinois have a big game this weekend? >> caller: i don't know. >> yeah, i think you do. think you have a big upset game. go ahead. what's up? >> caller: i've got a big second city non-olympic boo-hoo-yah. >> yeah, i thought that was bad. first of all, i didn't want the president to go to copenhagen. i wanted him to create some jobs. but then we lost the olympics. but that ain't his fault. the rio crowd did us in. what's up?
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>> caller: well, so that's why i'm calling. i want to know how to play this. >> i am going to say something that no one wants to hear. you can't. people -- jokers play it. i used to do this stuff. when i first started out at golden flax, i used to trade everything. if one raindrop beat the other one i would buy morton's salt. i used to do everyone. there are some events you just don't trade and you can rack your brain, come up with something neat. it won't work. we're not going to trade off brazil. all right. i've given you my game plan so you can go into next week with confidence. i need you to look for stocks that have already preannounced better than expected numbers already and stay close to a lot of the earnings. next week's report card week. "mad money" will be right back. >> coming up, it's friday, and that means cramer's digging deep to find you a brand new spec play. could buying on the weakness help you make some mad money? >> and later -- >> bud light, the difference is drinkability.
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>> heineken light, give yourself a good name. >> even though sales are down, profits are up. has the battle of the beers finally brewed up a winner? cramer shows you how this drinking game could help you pour some profits into your portfolio. >> remember, invest responsibly. don't drink and buy. >> all coming up on "mad money."
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thrashed, it's more important than ever for you to stay interested if you want to stay in the game. and in all of my years of investing i've never gotten three -- i mean, the best way i know to keep your attention on stocks is by speculating, owning small high risk high reward names. i'm not kidding. because i need you to keep interested. although no more than 20% of your discretionary portfolio, meaning your non-retirement portfolio, should ever be in speculative stocks. speculation is the best way to keep you from sticking your head in the sand when you see the market get walloped day after day in all of this miserable jobs data. it keeps things fun, keeps things a little light. adds a sense of, yes indeed, gambling to the whole process of investing. of course the odds are much better than gambling, where the house always does win. fun, excitement. these are actually integral to successful home game investing. although i am the only coach out there who says this. i'm the only coach out there, period. i must keep you interested in your money because the key to your success, as i say in getting back to even, the new
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book that comes out in ten days, is to stay active with your money, stay engaged with it. don't delegate it to index funds or others who may not have your best interests at heart because those strategies have failed over the last decade. and tonight for speculate friday i've got a way for you to speculate. not gamble. on gambling. wms industries, or just wms for all you home gamers. here's a company that makes gaming machines. everything from one-armed bandits to the high-tech, high-quality, and high-priced new video-powered machines. very exciting. wms is a great position now. not because we think the consumer is in terrific shape and ready to flock back to casinos. that could take longer than expected given today's nasty job numbers. it's a play on two different things. the casinos' spending cycle, their capital expenditures, and budget strapped states allowing gambling in more and more locations because they've got to raise money. there's been a lull in the
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replacement cycle for slot machines. they've got to get new stuff. but the credit freeze has now thawed, giving casino operators access to new capital. they're going to spend it on the casino floor where they actually do make some money. buying the best most up-to-date machines to boost foot traffic. they like to excite people with new machines and people are excited by them. there is serious pent-up demand for up-to-date machines with the most innovative games. historically slot machines have been replaced every six to ten years but as of the end of 2008 we're running closer to a 14-year cycle. that's not going to work. that's a lot of operators with a lot of machines that should have been replaced already but they were out of money. especially as states roll out new gaming machines in new locations. hey, i went to the sands casino resort in bethlehem, pennsylvania recently. i was of course by far the youngest person. and places like this with neighboring states have to update their machines or lose their customers. once some casinos start replacing their old slots with state-of-the-art equipment, their competitors can't afford
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to stand still. i think wms is the slots manufacturer that's best positioned to take advantage of this upcoming casino spending cycle. i got this idea from brian ashenberg who runs the fabulous breakout stocks newsletter at thestreet.com where i'm chairman. breakout stocks is breaking out from the pack. i want to tag along with brian because he's so hot. beyond the fact that casinos can once again raise money and spend it on new machines, states, which can't raise money because taxes are high already, have been making changes to their gambling laws. in order to roll out more slot machines by taking advantage of their citizens. the citizens' late stage capitalism at its best. in illinois, by the way, which is playing penn state this weekend, the governor's announced he's signing a construction bill with a provision to install video game machines at bars and taverns throughout the state. creating an opportunity to sell between 75 and maybe as many as 75,000 machines, low end 25,000. this legislative proposal set to be made next year,
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massachusetts, arizona, new hampshire, possibly kentucky, to allow more gambling in one form or another. ohio referendum next year on installing 2500 video terminals at tracks. now even the white house is considering allowing indian tribes to built casinos on land far from their reservations. these are all natural-born customers. even as slot machine players may be natural born suckers. all this means more gaming machines are going to get sold. but why am i going with wms as the way to play it? i think it's the best in the business. even though it's expensive. and you know i love best of breed. and i will pay up for it. wms has been generating solid cash flows, taking share left and right from its competitors like igt and bally technologies. it's got the best performing and more importantly the most desired games on the casino floor. a rebound in domestic slot machine replacement market means more business for the company with the slots that gamblers at casinos actually want. that's wms. recent quarter was dynamite. delivered a 2 cent earnings per
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share beat on what the street was expecting. and the company has said they're seeing people loosening the purse strings at big multiunit operators. looks like the replacement cycle is ready to come back. trades at 23.4 times next year's earnings. that may look expensive but it grows at 26%. i could see growth managers paying a lot more for this name but they would think it's too pricey. how about a catalyst? we've got the g2e, the big trade conference. which is why i'm recommending it ahead of the big trade conference. here's the bottom line. don't gamble. speculate on gambling with wms. the best way to play the slot machine replacement cycle. and moving across the country buy state governments that use one-armed bandits to fill in the holes in their budgets. this one a play on the exact weakness you saw this morning in the employment numbers. you are speculating on one of the biggest negative trends out there. the potential bankruptcy of
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state governments everywhere. after the break, i'll try to listen to some lady gaga and make you even more money. ♪ poker face >> announcer: stay tuned. after the "lightning round," the great cramerican 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 official rules go to madmoney.cnbc.com.
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opportunities out there. i'm talking about the end of the beer wars! that's right. after years of crushing battles, suddenly we have a virtual oligopoly in the beer market. and the truth in the discount wars has been declared. among the players. as much as we love to quaff the stuff and have done our best here to support the prices, these companies have been competing for every sip. and you know how much we hate competition on the show. the true enemy of capitalism and the nemesis of profits. you had coors and molson, bud. you had corona. you had pabst. you had miller. dos equis, heineken, all fighting with each other for market share. it was a really nasty eight-way war fought over inches and yards of space.
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at the tap, the supermarket, the liquor store. then bud, which was clearly both the share leader and price cutter, gets bought by heavily indebted in bev while coors and molson merge. miller was once owned by philip morris, which used to spend fortunes building the brand. now it's owned by a south african company, s.a.b. doesn't seem inclined to compete on price. on top of the merged molson-coors situation they formed a joint venture with miller. miller coors. combining all u.s. brewing operations and ending a vicious light armor beer battle. then last night we learned that heineken -- i've always felt heineken was skank beer but i liked the light ones. we learned that heineken and s.a.b. miller are interested in buying the brewer division of femsa which makes dos equis, sol, and tecate. cerveza. these are three of my personal favorite beers along with every other beer i've mentioned so far. that's some serious
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consolidation. we're going from competitors absolutely killing each other to a slop-happy international beer oligopoly where even though sales are down profits are up because all we've been saying is give beer a chance. they're not warring anymore. how about twisting the words? because i want to show i'm a little more current. of the buffett-like jordin sparks. i remember phillippe. that's how old i am. that beer is no longer a battlefield, a battlefield. and you do not need your armor. if you want to know how great things are in the beer game, right now, why don't you take a look at cramer fave pabst? pabst blue ribbon beer. there was a great article in "ad age" recently about how sales of pbr are up 25% this year. we know pabst has a reputation, false i believe for being a cheap beer but in fact they've
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raised their prices to where they're more expensive than the value brands from bud and miller coors and the company's still doing well even though it hasn't spent a dime on media spending. at least in the first half of 2009. you know what i call it? it's a peace dividend now that the beer war's over. that's why i've got this beer castle. not a beer-amid. and i am raising the flag of peace. naturally made out of beer cans. i've got to go this way for halloween, don't you think? to signal the end of this fight. plus these stocks are defensive. that's what you want to own when we get slammed with an ugly jobs number and the market isn't doing so hot. when you add in the raw costs and distribution businesses being down year over year, you have the making of some great multiyear profits. and what do we want to do with it? we want to buy molson coors, or
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tap for all you -- who drank these beers? thanks for inviting me, pal. why do i like tap the best? not just for its ticker, t-a-p, or tap. or that it was down about a dollar today but because the company recently reported a fabulisimo quarter. a 14 cent earnings beat. the street expected molson coors to deliver 96 cents of earnings. they came in at $1.11. why? because the beer business took its cue from the beatles and did decide to give peace a chance and raised prices rather than engaging in any more nasty price wars. people aren't buying more beer. volumes were weak at molson coors with canadian shipments down 2.9%, uk shipments down 12.4%, u.s. shipments down 1.1%. but volumes didn't matter anymore because pricing is up huge.
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up 2.6% in canada. up 19.8% in the uk. man, it must cost a lot to get drunk there these days. and up 3% in the u.s. all this more than offsetting the volumes, the lower volumes. plus, tap has seen major cost savings from its joint venture with miller, miller coors, where they combine all of their beer operations. the benefits of peace. now, you may never have heard of neville chamberlain and peace at any price. the beer oligopoly is giving us peace at a higher price. post-labor day volumes seem to be holding up and the pricing's getting even better. deutsche bank did some channel checks. they found out the pricing for miller coors, the u.s. joint venture, was up around 3%. volume's up about 1%. their contacts in the industry expect prices to continue to rise over the next six months. and that seems to be true even in canada and the uk, which have been tougher markets for molson coors. hey, canada, both labatt -- where's the labatt? thanks for making me look real
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good. labatt, which is bud in bev, and molson coors raised prices by 45 cents per 12-pack. we've never seen these price increases we've been at war for so long. the beer index which they actually keep has accelerated from 1.5% in may to 5.2% in august. in the u.s. bud, the price leader, is expected to raise prices in october. who's raising prices? do you know anyone who's raising prices other than the repo man? bud is leading the way for the rest of the brewers like molson coors to raise their prices. looks like we can't afford to drown in our beer anymore. better stick to the cheap stock on the dirty linoleum floor. if you want another great way to play beer, high yielder, higher yield than the 2% you get from tap, do not forget that altria, which has a 7.8% yield, still owns 28.6% of s.a.b. miller. about a $10 billion stake.
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which i don't think it gets full credit for at all in its share price. as the beer industry improves the stock should give it more credit. and even though altria recently denied its selling of stake -- its stake in s.a.b. miller, the company also said it would evaluate its options. if altria sells its stake back to s.a.b. and used the money to buy back stock, that would give its earnings per share a 5% boost, probably result in the company getting a higher price to earnings multiple. it's one of the key reasons why i've been building up my altria position for actionalertsplus.com, my charitable trust, where i send out bulletins every day about what i am doing for my charity. here's the bottom line. the beer business has gone from total war, absolute just annihilation, world war i, we're done, to a slap-happy oligopoly where competitors can aggressively raise prices and not get punished with lost market share because everybody's doing it.
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i like molson coors, t.a.p., for the pure drinking play, but if you want drinking and smoking, total vice play, don't forget that altria owns a nice chunk of s.a.b. miller and has a notoriously b.i.g. dividend. and remember, be responsible. don't drink and buy stocks at the same time. why don't we go to david in my home state of new jersey? david. >> caller: hi, jim. a big boo-yah to you. >> well, a boo-yah right back to you, david. >> caller: thank you. my question is about diageo. the stock has rallied nicely since late april. it's now around 61 versus $46 back then. was wondering if you think the stock is still attractive at 61 given the -- >> no, man. this stock has moved way too much. and diageo used to be a close personal favorite of mine and not just because they make johnnie walker black, which happens to be a close personal favorite of mine. but i happen to think the stock
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has had too big of a run versus the earnings. i'd rather have you be in beer than i would diageo. now, why am i not negative diageo because it's got a 4.7% yield, which is pretty good. i don't think it has much down side. but t.a.p. molson, that's got more up side. i'd like to go to robin in texas, please. robin. >> caller: hi, jim. i love your show. you make me laugh. i think you're crazy. boo-yah. >> boo-yah. yeah. i don't know what would make you think that i'm crazy. but that's okay. >> caller: you know, because it takes crazy to love crazy. that's why. >> oh. okay, wild one. hit me. >> caller: all right. well, listen, i don't mean to take up so much of your time. i am a neophyte in -- >> i've got all day. >> caller: okay, cool. i'm a neophyte investor. i'm a musician. i bought one of my first stocks in march. i bought cedc. i got it low and i made a bunch of money on it. it kept going up and up and i didn't understand why. i bought it at under $9.
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it kept going up. i sold on the highs. i bought on the dips. and then i eventually divested of it and, you know, i made a big chunk of money and bought my first house. >> you are terrific. you are just a true home gamer. i would say -- i would even go a step further. robin, you got horse sense. >> caller: so anyway, i called a few months ago and i was going to see if i could buy some more because -- >> no. we're moving on, robin. we're moving on. we're buying beer now because there's a big, big peace dividend coming from the end of the beer wars. i think that molson, symbol tap -- if you only remember one thing, tap, i think you've got a good pick. and congratulations on a fantastic run that you've had. i'm raising the peace flag on the beer trade. i mean, without a doubt i'm raising the white flag on the beer -- where's the white flag? anyway, i want you to tap the model and twist the cap on molson coors. symbol t.a.p. don't forget about the altria
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just to be clear, i do not know the caller or the stock ahead of time. the staff prepares the graphics on the fly. we play until we hear this sound and then the "lightning round" is over. are you ready, skee-daddy? it is time for "lightning round" on "mad money." shawn in massachusetts. >> caller: i want to give a thank you very much for taking my phone call boo-yah. >> a very you're welcome boo-yah. thank you. >> caller: listen, my father and my girlfriend taylor watch your show all the time. we appreciate all you do. i'm looking at amd, advanced microdevices. >> thank you for saying those kind words. we recommended amd at 2 and change, then it goes to 6. what are we doing if we stick to that? we're being greedy. you should have taken a little off the table. that said amd at 5 i think it works its way higher. i wouldn't pull the trigger because i already pulled the trigger at 2 and 4. keep that in mind. lj in georgia. >> caller: jim, a great gugaboo-yah. >> i don't think we've had that from the peach state before.
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couple upgrades this week hpan. i know there are some very big properties coming up for sale in that area. i think hpan is raising up capital to be able to contribute. we also had the ceo of fnfg on. that stock's making a nice run off its offering. i'm giving up hpan and fnfg. now we're going to brian in indiana. brian. >> caller: jim cramer, hey, i want to give you a gargantuan boo-yah on behalf of my lafayette jefferson high school. ba-ba-ba-ba-boo-yah. >> how early can you get in the game? the answer is never too early because of compound interest and compound dividends. and you can be a little more speculative when you're younger. how can i help? >> caller: for sure. go broncos. i'm 18 years old and i'm in jec, jacobs engineering. and i've been getting slaughtered the past few days. >> you know why you're getting
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slaughtered? because it's now becoming clear that congress is not doing enough to be able to do infrastructure. which means you've got to take a little off the table. you're 18. come back and congratulations for younger investors. but i do think the next move in that stock is continuation of weakness. helen in north carolina. helen. >> caller: hey, how are you? boo-yah! >> holy -- >> caller: i'm helen from pirate country. >> argh! >> caller: hey your show is wonderful, and i never feed my husband dinner until after your show is over. >> i like that. you're fasting during the show. i think that's good. >> caller: what about allergan? >> remember we had the ceo. the stock was in the low 40s. fine stock. telling us to buy it. no one believed him except me. why? because i think in the end what they make is not just botox but they've got a lot of products against obesity. they've got like a dry eye thing going. i saw that commercial with that woman, brooke shields or something. and i've got to tell you, their
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business is strong. you've got to buy allergan. i don't want this "lightning round" to stop. do you know what my life is like besides this "lightning round"? yeah. everyone knows other than the people at the elks, you still know -- all right. let's go to eric in south carolina. none of that. >> caller: thanks for taking my call. this is eric. greenville, south appalachian gamecock boo-yah. >> i bet the barbecue is good there. i smell that smoke. go ahead. >> caller: i'm looking for some medium to long-term investment opportunities counting on the global recovery. can you give me your opinion on honeywell -- >> you couldn't get a better company to play with. a dynamite ceo with a fantastic plethora of business a great mosaic afghan a pastiche of industrial companies which is why i own it for actionalertsplus.com, my charitable trust where someone praised it earlier. good yield. solid company. i say honeywell is terrific. let's take one more. i say we take one more.
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i say we go terrapins. david in maryland. >> caller: jim cramer, a big fat chesapeake bay maryland ba-ba-ba boo-yah. >> i give you a national bo bohemian beer boo-yah. that's how old i am. brewed on the shores of the chesapeake bay. >> caller: i'm trying to figure out what to do with my position in -- >> tnp. it used to stand for take no prisoners. now it stands for sell sell sell. by the way, i also want you to check out tonight's trivia question. cnbc.com. and throughout the weekend until monday i want you to stick with cramer! ♪
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here's one from john. jim, you're positive on apple. my mac products are designed and marketed by apple u.s. but manufactured by overseas subcontractors. this doesn't help much the 15 million unemployed workers in u.s. likewise, my golf club, tvs and cameras are made in china. does the u.s. no longer have the manufacturing ability to manufacture these products? i would known as street high. ubs comes out today and he goes to $265 target.
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that was just to best cramer. jobs, jobs, jobs. dan d'amico and i talk all the time about this. the reason why we do not have the manufacturing capability is because we don't create enough jobs and don't grow fast enough. the real economies away from here grow faster. i am pro congress to focus on creating jobs. not on health care, not on cap and trade. jobs. here's one from maury. dear jim. i've recovered all the money i lost in the crash last year. i retired in 2008 and started watching your show every afternoon with a cold beer. in march of this year you gave me the confidence to take control of my own finances. once again, thanks for the entertainment and education. i'm hoping santa will bring me your book for christmas this year.
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my book, "getting back to even" comes out in ten days. thank you so much. you did it right, came in when it was low. let's not get greedy. and fdr is one of the greatest presidents so i wish i could put myself in the same sentence as him. but thank you. here's one from john. i wanted to ask you about two companies developing drugs to fight obesity. it is my understanding that vivus will bring the drug first. adam is the go-to guy. i think they're both too speculative for this guy. "mad money" is back after the break.
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