tv Mad Money CNBC February 2, 2010 11:00pm-12:00am EST
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for first class presidential beatdowns. we all know that president obama is more than capable of destroying any stock with his rhetoric. >> the house of pain. >> he did it to the health care names over this year. he did it to the credit card companies and right now, he's doing it to the banks. we've learned to fear obama's effect on the stock market. especially since his populace turn two weeks ago in the wake of the massachusetts special election that put an end to the democratic super majority in the senate. but you know what? it turns out that obama's bark is worse than his bite. oh, sure, he can send stocks down. but he doesn't have the power to keep them down. and that's what we learned from health care. where so far the president has failed to get any legislation through congress and even from
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the credit card industry where congress passed 80s anti-card legislation the card act and though the stocks had gotten slammed in anticipation, they rallied after the passage of the actual bill. and have since gone higher and higher. in the vein of soulful stock market seer, jackie wilson. that pattern makes me believe today's second consecutive rally in the big investment banks signifies a true bottom. after withering attacks from the president and right here, right now, a couple of stocks i've been avoiding like the plague bubonic, the banks should be bought and bought aggressively here as they will now follow in the footsteps step by step inch by inch of the health care and credit card names. and recover from obama's attacks. and the two i'm crowing about tonight the ones that i had said were presidential pinnatas, i am releasing, which ones am i
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releasing from the presidential dog pound? are you ready ski daddy? goldman sachs and jpmorgan who i withheld comment on, and endorsement of that i have known from my trust, and i have watched them get obliterated. both of which soared today. i think the pattern is at last becoming visible to the spart money. that's why i'm making it visible to you. i'm telling you this two-day rally is really about the banks, about goldman, about jpmorgan not just because of the turn in housing, because the president's rants on banks are from now on full of sound and fury but will signify nothing when it comes to earnings per share and in the end that's what matter. the investment banks are the latest sector on an obama corporate enemies list. this pattern makes you get a chance to make money whenever the president bashes an industry and knocks down the stocks giving them a real beatdown, the business because obama and democrats
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don't have the clout in congress to pass anything that comes close to wall street's fierce. obama can wreck stocks when the company first comes into his crosshairs. we're cedeing that. long-term he's got to deal congress which can't pass anything at all. or pass something so watered down it damages earnings. here's the pattern in detail, the life cycle of what i call the catch and release of the presidential target. with health care the stocks got pounded into owe blit oblivion, initial ly as health care reform was supposed to be nearing fruition, una, united health, one of the hmos took a 20% dive from $29.22 on august 25th to $24.04 on october 5th of last year. humana with even more obama care exposure fell from $40.67 on september 16th to $35.91 on october 8th. even wellpoint which would have been virtually immune to obama care took a 19% header.
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from august 25 thd th to octobe. but as time went on, the proposals in congress became more and more muted diluted. the senate's $871 billion health care reform bill passed without a public option was much more centrist than the package that the house had passed a month earlier. even if there could have been a compromise, which i never think possible, as investors realize ed that the earnings of the hmos weren't as endangered by congress as they had first feared when the president took aim at them. look at this. unh rallied 42%. humana up 40%. wellpoint up 46% from their october lows and this is what we're looking for from now on. unless you think these stocks rallied because health care reform seems to be dead on arrival, and do not resuscitate, we saw the same darn pattern with the credit card industry from there to bull. with the credit card act which aims to limit interest rate
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increases and penalties because of late payments while forcing credit card companies to clarify terms and conditions to their customers. take a look at capital one, cof. which is the fourth largest issuer of visa and master credit cards in the u.s. this is is a company that gets 60% of total managed revenue from u.s. credit cards, stood to be the biggest loser to drop a name of a prime time show that's working, the biggest loser" working. other companies have larger credit card businesses but credit cards make up a much larger proportion of capital one's sales. capital one got trashed in part by obama's bark articulated in speeches about the credit card. it fell 35%. 31.35 on may 8th. shortly before congress passed a credit card act. $20.45, on june 22nd, a month
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after obama signed the legislation into law, investors feared what the reforms would do to the credit card business. the bark turned out to be a lot more frightening than the bite even though most of the major provisions of the card act go into effect light later this month, capital one is up 83% from the credit card bottom. bet what it was that the street like health care overreact to the legislation that obama ultimately was able to obtain. the hmos recovered after obama went after them. capital one recovered after obama and congress successfully went after it. the kred it -- the credit card industry, are the group that's under attack with the president's volker rule, which paul volker tried to explain in vain to the senate this afternoon. believe me when i say this one's going nowhere fast even as it has banged these stocks down by a quick percent, i am telling you that once again after discerning this pattern, i think you should buy goldman sachs and jpmorgan.
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numbers one and two on obama's enemy's list. because the wrath of obama isn't any more effective than the wrath of kahn against the "starship enterprise." despite obama's bashing, despite the volcker rule, despite the scorn, goldman and j.p. morgan are going to live long and prosper if we have a pattern that pans out. to infinity to where no stock has gone before, no, but a lot higher than they are right now. we've seen with health care and the credit card companies. when day after day obama attacks an industry, what do we have? a buying opportunity. not a time to sell because congress won't or can't let obama have his way. in other words, when it comes to goldman sachs, when it comes to jpmorgan, it is time at last tonight to take the other side of obama's trade. hacene in pennsylvania, hacene!
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>> boo-ya, from philadelphia. i'm a stuf dent at drdent at dr university. >> yes, i'll give you a philadelphia college's rock boo-ya. right back at you. what's on your mind there partner? >> caller: my question to you is about your point on toronto dominion bank. ticker symbol td. early october td just completed their acquisition of commerce bank. what happens was during that i recall completion of the merger they had a systems integration and the computer systems are all messed up. customers couldn't access their accounts and all that. that hurt their reputation as being called america's most convenient bank. where do you stand? is it a buy, a sell? how about canadian banks in general? >> i wruz going to add value scotiabank, i was going to add bank of montreal and toronto dominion. all three are better than almost
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american bank and show great discipline during this period of just a tremendous morass worldwide and the one that you mentioned toronto dominion i think you're being able to take advantage of that price and get did more cheaply than you should but it's not as good as bank of nova scotia because of the tremendous exposure that has to latin america. 4% yield. that's the one i want you in. thank you for having horse sense and to drexel university which has produced some of the great business minds in this country. salim in texas. salim! >> caller: mr. cramer, hello. first-time caller. a few weeks ago you brought up the political prism with stock of citigroup. >> uh-huh. >> caller: five weeks ago, we were at the 350 range, stock going for 355. then the election took place in massachusetts and obama got upset. he got on screen and pounded the marked. we went to 3.15. then the state of the union came around and gradually it opened up at $3.25 the next day. my question is, is there a bundle of political issues that are going to come up? where are we going to be at a year from now. >> i think you'll have to endure more testimony and endure slow
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trials, kangaroo courts, star chambers against the various managements of the banks. no doubt that will include the ceo of citigroup. vick who's an okay guy. this stock has bottomed. i have been saying that over and over again. i think this is a great call option meaning put down a lot of cash on a bank -- it's like septicism. i'm very "self. . i believe citigroup may be a great roll of the dice to play the bank stock comeback. all right. obama's bark is worse than his bite. it's no more powerful than the wrath of caan. you know how that ended up. i say we've got a great buying opportunity ala health care, ala credit cards, jpmorgan, goldman sachs, live long and prosper with those stocks. "mad money" will be right back. >> coming up, uncle sam boost? >> this morning i sent a budget to congress. >> with the release of president
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obama's $3.8 trillion budget. >> these are the investments we must make. >> cramer's got one thing on his mind. what's the play that can make you mad money? and late e. time to buy? after aggressive selling, has this tech giant finally hit key levels that signify a buying opportunity? cramer pits the technicals against the fundamentals on an all new "off the charts," all coming up on "mad money." i've been growing algae for 35 years.
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401(k), with that populist, anti-wall street stuff, rhetoric. and like it or not, you probably don't like it, wall street provides the financing for main street. thinking you can bash one without hurting the other doesn't make a ton of sense to me. but tonight we're forgiving. we're going positive. we figured out how obama might make us some money, oodles of if because we've gone over because we have a lot of time on our hands and aren't that interesting in the end the spanking brand new $3.8 trillion budget that obama just proposed and we figured out who should get the biggest earnings per share boost courtesy of you, the taxpayer. and boy we've got a good one. consider this stock's prospects to be your rebate. maybe your dividend on the gigantic tax bill coming your way courtesy of the monster amount of federal spend ing this budget authorizes. now, you've heard about the budget endlessly. our e-mail box is flooded with questions about how to play it. because people know what we do here on "mad money" is look at
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how to play it, we don't bemoan it. who is the biggest winner now that uncle sam has become the life of the party with the lamp shade on his head. the engineering and construction stocks. they're some of the best plays in government or just in general and specifically the most lucrative one we could come up, the company you probably never herd of it, the company is urs like jet or ers. urs -- if you didn't know any better you would think they wrote the obama budget kind of like a nom de plume. plus that's like -- renaissance and septicism. i'm trying to integrate some foreign languages. this is a mostly domestic company. in 2008, urs got 91% of revenue from yep, the u.s. much more compared with 56%, jacobs was 76 and shaw was 78.
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its footprint, authentic wall street gibberish includes many businesses favored by the obama administration including environment the services work, military and technical operations, maintenance, and best of all, nuclear sight management. urs has potential wins all over the budget and that's not all. in what was the most jaw-dropping part of the state of the union when it comes to the economy, obama came out in support of commercial nuclear development pushing for expansion of the nuclear guarantee program to $54 billion smackers something that should have broad congressional support. thanks to the acquisition of washington group in 2007, urs is now a major nuclear player with an experienced team that stands to benefit from any new nuclear bills that are going to happen in this country. it's one of only three engineering nuclear constructions with full build capability. shaw group that everyone thinks of when they think of nuclear
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power, ran up right after the state of the union. urs is the nuclear porterhouse. we weren't recommending urs. because we believe nuclears are aruined t around the corner. we're recommending because nuclear power's time has come and even though plans designed now won't come on stream for six to eight years, urs is the company that should get the best bang for the buck from the rest of the budget while you await construction, something shaw doesn't have going for it. plus right under 46, urs is seven points off its high while shaw is less than two points from its peak. urs is practically tailored to take money from the government. a whole lot more indirect exposure. they service everything transportation, including a lot of military businesses. that matters given the 3% increase in the defense budget, 2% in the transportation budget. urs has a strong relationship with the defense department. it's possible the company could take a larger share of an already expanding buy.
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there's all the beautiful stimulus money just starting to hit now. there's about $100 billion left in total infrastructure spending and urs, they're competing for it. the president's jobs bill will provide for transportation spending. since about 80% of the company's infrastructure business which represents 19% of sales and includes transportation, public buildings and environmental water projects is related to engineering and design of these projects and not the construction, right, so it's the beginning, the company's contracts are therefore front loaded and should start making money before the construction focused firms. the president's focus on emission controls will be a boon the company's nonnuclear power business. as utilities are required to upgrade power generation fleets in order to reduce green house gas emissions one more area of expertise for urs. it's kind of like a transportation ctu. another local key government-related entity.
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urs got a whole bunch at the helm. urs should benefit as the recovery continues and much less vulnerable to what we think is something we fear, the china slow down. because it's got that heavy concentration in the u.s. this is one of the few times where we actually think that's a good thing. the company's industrial and commercial segment generates 23% of its sales. services to oil and gas customers. that should benefit from improved commodity prices. you see oil today? as well as mining and copper through the roof. industrial manufacturing players that should increase their spending at the economy improves. this stock is dirt cheap. trades at 1277 times 2011 earnings although it's got a 10% long-term growth rate about even with floor which trades at 12.6 times earnings with 11% growth rate, and jacobs which trades expensively at 13 times earnings. urs has typically been seen as the laggard of the group. because of its meg leer international exposure.
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suddenly things have flipped while the chinese put on the brakes. i think the whole perception changes. here's a statistic that we've pioneered on this show we always look at, backlog. urs has a massive $17.9 billion backlog. that's 4.7 times the size of its whole market capitalization. that's huge. it's a ratio with both global santa fe soon taken over by transocean and kbr short ly before a runoff of a 14 base. both of those had a lower backlog to market cap ratio than this one. here is the bottom line. obama's proposed budget isn't essential to urs but it's the best play we can find on this budget. a company with a terrific long-term story especially because of its brilliant nuclear power acquisition. it makes money immediately feeding off the federal trough and should get an even bigger payday when the inevitable nuke design and construction kicks in. after the break we'll try to make you more money.
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>> later, time to buy? after aggressive selling, has this tech giant finally hit key levels that signify a buying opportunity? cramer pits the technicals against the fundamentals on an all new "off the charts." and later, stay tuned as we crank up the volume. cramer goes all out as the calls keep coming in. try to keep up on a high impact lightning round, all coming up on "mad money." ( whooshing )
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on thursday morning, qualcomm, a semiconductor company that i believe is integral, truly integral to the mobile internet tsunami, as it develops the wireless technology it makes possible for phones smart or otherwise, qualcomm, a stock that i've owned for charity for over a year now, qualcomm a business with management i had firmly believed in, took a massive beating after it delivered wretchedly disappointing guidance for the second quarter in a row. the stock got a 14% haircut. scratch that. a 14% beheading!
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in a single day. on thursday and dropped even further on friday. they guillotined the darn thing. now i think qualcomm's innovative technology is essential to the smart phone revolution and i know i believe that story should should produce multiyear gains. qualcomm should be one of them. but after twice disappointing we have to ask, is this just a glitch? is it a speed bump or did the company kriv into a retaining wall and isn't getting back in the race anytime soon? more importantly, we have to know if the fundamentals of the car can be fixed. is it safe to ride? or is it just one of those total recalls that we've been hearing about? and there therefore the selling will continue? that's why we're going off the charts tonight with our able instructor dan fitzpatrick, technician extraordinaire and my colleague at money. the technicals are the best proxy we have for what the big
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money managers are now thinking after this incredible decline. the big money fat cat who's determine stock prices because they're the marginal buyers and a good chartist can look at the footprints in one of these pictos and tell you what the big money is likely to do next. we know we can look at a monthly chart, you can look at a yearly or weekly chart, but fitz says you've got to examine qualcomm's daily chart to get a sense if this is the bottom or if there's a ton of sub basements lurking. so let's take a look at the daily -- here you can see just how savage, just how savage the selling was when qualcomm's forecast disappointed. by friday the stock had move an extreme distance away from the 200 dale moving arch. according to fitz, it take s lot of aggressive selling to do this so quickly. this is a two-day period. wow.
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and such strong selling activity usually -- i got the power, usually exhausts itself faster than the endless drip we get with a less violent disappointment. fitzpatrick believes that when the volume begins to taper off, the price decline is usually at an end. now, that's this week's important off the charts take away. look, here's the price decline. and yeah, okay. with qualcomm, the volume peaked on thursday. okay? and then on friday, the stock put in a lower low. let's take a look at the lower low. see it right here? okay. that's on a relatively lighter volume even though it was still pretty heavy. to fifties, that's the first tipoff that most of the selling is now over gloriously. then on monday we got a higher close, okay? again if you want to just see, it went there and sometimes you don't have to touch this thing
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and that confirmed fitz' bottom theory. he believes we have he believes we have a great opportunity to buy qualcomm for low risk trade as the stock's already fallen about as far as he believes it can. on the other hand, he also says that if the stock were to fall below $38.50, then he thinks the stock's going much lower. see, that's problematic for me, think about it. that's why i'm not a technician. i'm a fundamentalist. i'm not in the vein of jerry falwell or jonathan edwards of sitters in the hands of an angry god. that is not to be confused with john edwards, the vice presidential candidate who is neither a technique or fundamentalist. in fact, he's nothing, for nothing. when i like a stock at $39.26, i don't all of a sudden like it less when it goes to $38.50. i like it there and don't like it here? no, ixnay partner. the question with qualcomm is exactly how much should we like it here after its terrible self-inflicted guidance gunshot wound.
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the chart may say bottom but we feel q auchlt. l -- qualconned by qualcomm. the company was the self-proclaimed star of the consumer electronics show. two weeks later it made us feel like idiots for liking it with stocks trade on the future estimates not just mast earnings. prognosis negative in the words of seinfeld to the future of what they gave us. why was it so grim? a whole host of bummers. slower china growth and lower than expected prices for its chips being the two standouts. ultimately i believe these problems also work out as the recovery unfolds and smart phones go from luxuries to necessities around the world. qualcomm still has a terrific story. especially as it adds new customers. that doesn't mean it's done going down. it's got some catalysts. share gains at nokia which is
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coming back from the dead with smarter phones, the increased adoption of smart phones, new designed once, expanding markets like ereaders and those all use qualcomm's wireless technology. >> in the meantime, the company else is at 16 times 2001 earnings. no debt, $18.9 billion in cash and marketable securities it's got $11 in cash as a $38 stock, 39. but you have to know how wall street works to believe how a company can have this kind of decline, look at this decline, okay? that kind of decline. despite these positives. if you tell a good story one day and disappoint the next, something we saw with tesera which dropped ten points for doing the exact thing, the street meets out the most severe punishment possible. this is an execution. this is not a chart of a wes craven movie. you don't come back to life immediately after the execution. even as i bet a lot of shareholders from up here would
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have been happy to deliver the lethal injection. here's the bottom line, okay? fitz says qualcomm's bottoming. we say it's no longer worth booting down here, the time was up here. we've been booting, believe me. booting in that sense being more of a philosophical theoretical. when fortunately we sold this from my travel trust up here, we bought the stock back down here strictly to average down. he's right, we've got cheap stock. still qualcomm is guilty until proven innocent. you need two quarters before anyone can fall in love with qualcomm again. memo to management, you gave us a ton of sizzle and threw rancid meet at us instead of sirloin. the fault dear qualcomm isn't in the smart phone stars but in your arrogant selves. let's go tj in ohio.
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>> caller: a big buckeye boo-yah to you from worcester. >> back at you there. hey, man, we love ohio. we love ohio, one of the greatest times ever as i pick up the oklahoma ball. what's up? >> caller: recently i sold by kinder morgan stock for a pretty nice little profit. >> i hear you on that because it's had such a run but you know, i still like it, but go ahead. >> caller: right. wanting to get on the mobile internet tsunami, what's your feelings about western digital corp or should i have kept the kinder morgan stock. >> no, western digital, that stock has had a big run and i'm giving you a real heads up there. i do not want you to pull the trigger on western digital. i would be more anxious to sell dwc than buy it. i know that company very well. can i go to rob in my home state of new jersey? please, rob. >> caller: jim, big snowy booya from you from chicago. a new jersey native here. >> a new jersey native but in chicago, okay, like bulls, nets kind of thing? all right, go ahead. >> caller: exactly. >> cubs, mets than bulls nets.
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>> caller: yeah, we're waiting for you going to school out here waiting for you to do a back to school at northwestern. >> i want to go so bad. my friend darius went there. he's doing break through super bowl reporting. northwest has souchlt -- northwest has some of the best sports. i love that football coach and the girls' lacrosse team is unbelievable. please invite us. i'm not kidding. here's your take away, partner. i am not kidding. you get us an invite from the football coach, the president, the alumni, we are there in a heart beat. >> caller: working on it. >> thank you. two heart beats. >> caller: yeah, so my question today is on nokia. a company you record earnings last week positive upside and kind of surprising given all the pressure. >> wasn't it? >> caller: yeah, especially iphone and palm and everyone. >> i was taken by surprise. >> caller: exactly. wanted to see what your sentiment is on them going forward. >> you know what? i had written nokia off which is a mistake.
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you should never write the finns off -- nokia is a river in finland. i feel like i have lost my ability to comment on nokia because i missed this turn. i don't like motorola this much. i think nokia is okay. i missed it. i was so enamored and remain enamored of apple that i missed the nokia turn. i'm not proud of that. andrew in my home state of -- jim, a big morrisville, pa two, votes away from being the capital of the united states booya. >> that's a sentimental, geographical, historical boo-ya. >> caller: go ahead. >> caller: quick question. now that kyle computing has become more popular among businesses there's been growing concern -- growing concern regarding internet security. what do you think about sonic wall ticker symbol snw. >> always a bridesmaid never a bride. you've got horse sense. you live near me where i grew up. you probably dank the same suburban water. what's the matter with you? that is one of the hardest dome stocks in the world a nice gain
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from where it was, that's way too speculative. i need you to step up to the plate, keystoner. morrisville, never thought it was going to be the capital of the united states or pennsylvania or anything. pictures are worth a thousand words. i got like thousands of circles, too. i got to tell you, qualcomm it disappointed. the chart is saying it might be able to hold. me, i say it's two quarters in the penalty box and only then will it be able to go back to here. hey, have some cheerios on me and franco american spaghettiios and stay with cramer. >> coming up, call cramer at 1-800-743-cnbc to find out how to fire away at cramer on the lightning round. can he withstand your thunder -- thunderous onslaught of stocks?
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it is time, it is time for the lightning round, what's that all about, you ask. listen, just to be clear, i don't know the callers or the stock question. my staff which is why it looks like i know everything. the lightning round is over. are you ready? steve. it is time for the lightning round. i want to start with evans in texas. >> caller: hey. >> welcome, evans. unless you're a red raider. >> caller: no, no, no, i'm an
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alumni of the very first mad money lightning round and i've got an 18-hour mad money mesquite wood smoked beef brisket boo-yah to you. >> holy cow. that is smoking. it's a sizzling smoking boo-yah. that man's a veteran. four years and 9 1/2 months. maybe ten. what's up. >> caller: i've been a believer in the spare parts for humans story for a long time i've held zimmer for about four years and it's crippling my portfolio. will this thing ever make money before i need their parts. >> which one? which one of the parts companies? zimmer? i like stryker more than zimmer. if you could give me a new elbow and back and hip that, wouldn't hurt either because i am a hurting cowboy. i think that zimmer is good, stryker is better. that's the one i want you to buy. buy, buy. that would be a better stock.
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i want to go to rick in my old home state of pennsylvania. rick. >> caller: boo-yah to you, jim. 3-com corporation? >> you're getting a takeover bid. i want you to tomorrow morning to sell that stock and just pocket the gains. how about that? what's the matter with that? let's do something current. mike, oh, boy, in florida. pike? >> caller: hey, jim, how are you? >> not bad. how about you? >> caller: terrific. an ex-new york boo-yah from new smyrna beach, florida. >> new smyrna, beach. i've been there. i actually visited. what's up? >> caller: what do you know about ebiks? can't understand why it's taken a dive. it split three for one. everything looks good. can't find anything. >> i mean, didn't it say it was just going to do the numbers and not do better than the numbers? this is one people thought there was a whisper and people thought they could do better than the numbers and they didn't. in this particular earnings period, if you say you're going to do x and you don't do x plus
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two, they clobber your stock. i think that's what happened. i want to go to paul in colorado. paul? paulie? >> caller: cramer. >> yeah. >> caller: hey, boo-yah from the rocky mountain state here. >> rocky mountain boo-yah right back at you. coors light boo-yah. >> caller: there you go. i bought merck back in the day, five shares, $100 a share. it's had some tough years. now delivered reinvestment i got 14 shares at $37. i'm basically back to even. >> i like the dividend 37 i like the combination with schering-plough. my first purchase was seven shares and i would encourage everyone who thinks they have to be a big shot to buy stocks, he bought five and made money. i bought seven, candidly, i lost money. doesn't matter, five seven, you got to start somewhere. let's go to miriam in california.
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>> caller: yes, boo-yah, jim. >> boo-yah, miriam. >> caller: i'm wondering what your opinion of clean energy is, co. >> we had boone pickens on the show. i was hoping and was led to believe that maybe the president would mention natural gas in the state of the union. he did not. the prospects therefore have dimmed a little. i cannot be as enthusiastic about clne post that state of the union address as i was before. we'll get legislation by memorial day. i think he's wrong but i have respect for the man. let's go to jacqueline in georgia. jacqueline? > caller: hey, how are you? boo-yah. >> good to have you on the show. what's on your mind? >> caller: i have four children under the age of 4 or they're 4 and under and we are kind of getting our feet wet, we're young and want to leave our children a legacy and want to know about microsoft and what you think. >> i think it's a great call. that's a terrific stock to leave a legacy.
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it's not my favorite in technology. as a matter of fact, i prefer intel right here. i also prefer apple. i think apple would be better. you know what, microsoft is very good. i own intel and i own apple for my charitable trust. but i think microsoft would be a fine addition and that's a good one. congratulations and best wishes having four kids. you're very blessed. nate in south dakota. south dakota, nate. >> caller: boo-yah, cramer! >> boo-yah. how we going to look in the march madness this year? north dakota state going to take it all again? >> caller: i don't know. it's kind of a tossup. i don't follow it that close. >> that's all right. i'm getting focused because it's near the season. >> caller: my question is on motorola. i bought it back at nine and was kind of hoping the droid would spur some growth. >> i don't know. listen, nate, i got to tell you, motorola i thought the breakup value, have you cash. i think you can hold it but you
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can't buy because there is what i call no catalyst. where there's no catalyst in a stock like that, i'd rather see an apple than see you in motorola which has no catalysts. i hate to end on a downer but the truth has no deadline and the lightening round is over. >> the lightning round is sponsored by -- ( whooshing ) announcer: you could buy 300 bottles of water. or just one brita filter. ( drop plinks )
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>> we're going back to back mail. jim, i have been struggling with hewlett-packard for over a year. every time i have to call hewlett-packard for support i am put on hold given the run around and hung up on. i've don't know how a company scan be so highly rated by you but have such bad customer service. mike, this was disheartening to me. i think mr. herds a fantastic ceo. i have been behind hewlett-packard stock. a big winner. i am betting that your incident was a -- isolated one. if it turned out to be more than that. by this time i would have heard it. thank you for serving too, you mentioned. mr. herd, mr. herd watches the
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show. we would love to hear from you. i think i am with you, mr. herd. i think mike's incident. not a reason to sell. he had a bad experience. it does happen with every company. jim, i am pretty new to trading. i had a hunch about netflix. i bought the shares. ups and downs scare me. should i hold or sell? listen, they blew out the quarter the you have a winner on your hands. if you want to, trim some back because you have a monster move. i think netflix, winners. more than a cold stock. they defeated single-handedly blockbuster, and dvr did too. netflix a winner. now the streaming and x box things don't sell it. >> hi, jim, cold illinois booyah. thank you for your sage-like advice. i wish were a sage. i bought it at $1.18 a share. the first quarter going forward was projected to be seasonably
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lower, as it always is, but it should have been projected higher. their factory could be 100% capacity. i have gotten a 15% haircut. what do you think? >> the prob llem everything was no. they didn't deliver the big upside and guidance, the stock got killed. have to tl yell you. i am done liking it. others didn't screw up. i think you should sell. flash memory. capacity coming on ift don't want to own it. here is bob. jim cramer. boo-yah. won't be chilly a month when the phillies get down there. i need help with broadwind energy. their financials shows steady improvement for the last four quarters. they've recently announced another stock offering. the ceo sold 15% of his hold gdz. i have never seen this before, what does it mean? should i run away? >> no, offering did okay. where the offering is. pure win play.
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oil was up big. don't give up on broadwind. too cheap. nice call, wind power will be as big one day as president obama thinks. david in south carolina. jim, i noticed that the recent government slow down in china falls directly with the chinese new year. is this really a slowdown or normal slowdown that chinese ports experience every year leading up to the chinese new year? i think a real slowdown. the government wants less lending. the government is worried about subprime mortgages. sawmortgages. recommending in terms of chinese new year is winn, february 14th. the big casino. but remember, we are very, very down on china now. very down on china the we are nervous about it. we are not recommending any chinese stocks other than chinese wire plays for the future. and "mad money" is back after the break.
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a cnbc original production. [ music ] >> marijuana is the most profitable illegal narcotic. >> this is a huge business. uh, in california alone, it is the number one crop. >> and there's at least 13 gardens within a mile radius of our home. >> thirteen gardens right around your house? >> mmm-hmm. >> yes. >> wow! >> thousands of growers, millions of users, and a market in the billions. >> how much money was coming in to your marijuana smuggling operations every year? >> about 50 million.
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>> it's a multi-billion dollar business rife with guns, gangs, and plenty of money. i'm trish regan. join me for an unprecedented look inside america's marijuana industry. [ music ] >> i'm here to eradicate the scum that have infiltrated my county and made it nationally known as a producer county of... good marijuana. [ music ] >> and now, the cnbc original documentary "marijuana, inc. "inside america's pot industry." [ music ] >> welcome to ukiah, california! >> the scene, a county fair. two hours from san francisco, but a world away from the urban bustle.
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