tv Mad Money CNBC March 22, 2010 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 promise -- >> "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 help you make some money. my job is not just to entertain you but to educate you. so call me at 1-800-743-cnbc. on monday we could wake up in a totally different stock market
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universe. one where health care reform is passed and the democrats in washington feel empowered to push through the other elements of the obama-pelosi polit -- congressional agenda. believe me, i wish we didn't have to focus on washington in "mad money" at all. i wish we could just talk about stocks all day and not at all about politics. but right now washington matters to the market more than anything else out there. and certainly any earnings report. now, you know i believe that health care reform will pass this weekend and that its passage will reignite president obama's let's call it less than stock market-friendly game plan and it will cause a nasty sell-off. i think it might dawn on investors that other anti-business initiatives, things like the pro-labor car check legislation, which i've told you would hurt walmart, cap and trade climate change legislation that could hurt the earnings of utilities, not to mention much higher capital gains and dividend taxes, they
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will be the new reality if obama and pelosi get their way on health care. that means the forecast is for more down days like today. the dow jones average falling 37 points. the s&p down about half a percent. not that bad given the long streak we've had. now, look, i just have to explain again, this is not about right wing or left wing. it's not about democrats or republicans. it's about what i think's good for the economy and therefore good for the stock market. because believe me, if this health care bill passes i think there will be some real ramifications. for instance, small business hiring, small business formation, i think they'll be frozen because the inability to figure out new hiring costs -- and remember, small business is what creates jobs in this country and employment is our biggest concern in "mad money." i also think the taxes going higher is not a recipe for economic health, it's too soon after the great recession. now, there are a lot of reasons, though, to like this market, one of the reasons why we've been going up for a long time. washington, though, is a big reason to be wary. so first we need a game plan to deal with the fallout from the
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health care reform vote that will happen this weekend and the potential revitalized obama agenda. i think you need to build yourself a fallout shelter of stocks. and here i'm talking about buying some high dividend stocks. like bp, the old british petroleum, which i own for my charitable trust, actionalertsplus.com. how about old faith kinder morgan partners, kmp. am i telling you old name because i think that it should bore you? no, because it should make you money. verizon started acting better today. eli lilly. dupont after that nifty presentation yesterday. and of course altria, symbol mo, that's another charitable trust name. and of course you want to increase your exposure to foreign stocks because the u.s. seems to be, well, let's just say a not friendly place for stocks in the near future. keeping in mind that the obamacare vote this weekend is the most important event for the coming week or the coming year for that matter, it really, let's just say, the game plan really is going to start after health care, and if health care's bad, well, you get the
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picture. on monday we get the total litmus test for how the rich are doing. when tiffany and williams-sonoma report. those are two places you don't need to go to unless you're feeling good about yourself. unless you feel like buying expensive merchandise. just as you didn't need to buy $140 sneakers from nike, which delivered a strong quarter this week, you don't need tiffany's sparklings or williams-sonoma cookware. you can go straight to walmart. i happen to like home goods for cookware. you don't need to overpay. these two will tell us whether the rich are spending. on tuesday we're going to get the pulse of a different class, maybe not as wealthy. we're talking about the people who go on carnival cruises. this is the travel industry. if carnival does well, then we can bet maybe even the middle class is starting to feel better again, not just the rich, as what we'll find out for monday. and if they feel good, bookings and pricing has plummeted over the course of the great recession, we can continue to like the retail stocks you know i do like. we also get february home sales on tuesday.
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now, of all the housing numbers we think existing home sales, the tuesday number, are the most important because we're worried about supply. supply is keeping down pricing. in january there were 7.8 months of supply on the market. we want to see this inventory number go down because only when the inventory's taken out can pricing rise like we saw in california this week. by the way, this sales number's far more important than the report card we get from an individual company, which is kb homes on tuesday. that's got a very california focus. and as i told you, california is turning. on tuesday we'll also hear from darden. that's the big restaurant chain. remember preannounced on the up side back in february. like fed ex, which gave us a very strong outlook yesterday, the stock reversed midday. you've got to stay watching cnbc. nothing tells you more about the strength of the economy than knowing if red lobster and olive garden have picked up. they appeal to everyone. this time, though, i want to hear about capital grill and longhorn steak, which darden bought at the height of the
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market. particularly capital grill, when the rich were really spending. and i think capital grill will give us a great read like tiffany and williams-sonoma about the high end. now, the consensus is for a .5% to 1% increase in same-store sales at longhorn and a 3% decline at capital grill. those sound grim? believe me, compared to where they used to be, this would be a godsend for darden. unfortunately for darden, the porterhouse and expensive scotch i had at the capital grill after our fifth anniversary show didn't make the quarter. on wednesday we'll hear from one of the most consistent companies out there, and that's general mills, the big g, although the symbol here is gis. it also happens to be the best arbiter of premium branded foods out there. remember we heard from heinz, del monte, and kroger, they're all starting to talk about branded foods taking market share back from private label as people are feeling better about themselves. but a lot of that came from discounting the premium brands, not a trade back up. if general mills says things are back and people are buying more
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expensive cereal, well, that's not good for walcorp and we will recommend profit taking in treehouse, our favorite private label play that we have been behind literally for 18 points. we'll also get durable goods orders on wednesday. here we go. we have worried about deflation in these and the health care plan i regard as deflationary. we would like to see if the durable goods can stay strong, and it rose really strong in december and january. 2% and 3% respectively. the number to beat here is .5%. now, i think interest rates could go higher if they do beat that, but interest rates are very low. so we're really not worried just yet. on thursday best buy reports. we have been behind this stock, but because it gave conservative guidance after a good quarter the last one, it got rocked and quite frankly we were wrong. goldman sachs, which recommended the stock this morning, thinks we'll be getting both good numbers and good guidance and that at last all systems are go for a stock that's been stuck at 40 for a long time.
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more important in the quarter we want to hear about what's hot in the stores, we want to listen to what best buy has to say about apple and 3-d tv sales. plus home theater used to be huge when home prices were going up. is that coming back? how about netbooks? they told us the category was strong, and we recommended hewlett-packard off it. this quarter will be a checkup for them too. we also want to know if video games are selling well, confirming what gamestop told us yesterday. by the way, electronic arts all the way back to where we recommended and then some. finally, oracle reports after the close on thursday. and i think this enterprise software company is ready to break out. i expect to hear amazing things about how the sun acquisition is shining, along with cloud computing, a virtual weather report of technology. that's one of the big themes driving tech. oracle's got a dynamite chart to boot, perhaps one of the best in the book. i would, of all these situations, the only one i would pull the trigger on if monday the market's down because of
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health care, is oracle. it's the one i would buy. the bottom line, the most important thing for next week, which could control the market's trajectory for the coming year, is the health care vote. with that on your radar screen keep a look out on the two most important economic indicators this week, existing home sales and durable goods. listen to tiffany, williams-sonoma, read on the high end. carnival, potential return of travel. darden on whether people are going out more. general mills, branded versus private label. and then the category sales at best buy. if you buy anything before the quarter, again, buy oracle as it's red hot and you might get a chance to do it at a nice price courtesy of the passage of health care reform. may i go to keith, please, in california? keith. >> caller: boo-yah, cramer. happy five. >> thank you, keith. thank you for remembering. some people are saying it's a distant memory. i am still thrilled and living in the halo of the brian williams-sponsored fifth. go ahead. how can i help? >> caller: i love it. yesterday because of the pending
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health care -- health care bill you mentioned getting into high-yielding stocks, including maybe altria at 6.8%. >> yes. >> caller: but your other recommendation of possibly getting into more foreign exposure was making me think of maybe getting into pm even though it only has a 4.5% yield. >> you know, i felt so bad. i was looking at pm today and saying why don't i own -- that's phillips morris, for my actionalertsplus.com, for my charitable trust? why don't i own mo? the answer is i owned them both for a while, and you know what, altria and mo, and pm, are both great stocks. pm 52-week high. let it come in. i think it's a good one, though. can i go to george in massachusetts? >> caller: hi, jim. boo-yah from massachusetts. >> how are you? >> caller: excellent. how are you? >> not bad. thank you for asking. how can i help? >> caller: well, i've been investigating a retail stock for the past few weeks. joseph a. banks. ticker josb. >> right. >> caller: it seems to have a very strong balance sheet. any thoughts? >> yeah.
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well, you know what? i got burned by men's wearhouse. i said that i thought that men's wearhouse, after they put in that really good dividend boost, that that would be good. and i feel chastened by how men's wearhouse did. so i'm going to say don't buy joseph a. banks because they're similar enough. now, look, every company's a little different. but that -- men's wearhouse made me feel like don't go to joseph a. banks, the stock. maybe the store but not the stock. monday tiffany and williams-sonoma, the high end. don't forget, tuesday we find out about kb homes and regular homes. wednesday be careful, i might recommend profit taking for treehouse. thursday best buy just to temper things, although goldman said they like it. and most importantly i'm giving you the blessing to buy oracle monday morning. "mad money" will be right back. >> announcer: coming up, dial for digital dollars. cramer's checking out one spec play that could ring mad money into your portfolio. and later, drilling for profits? cramer's got two spec plays that could help power your portfolio.
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all coming up on "mad money." this is not more benefits at greater cost to your company insurance. this is not how does it fit in my company's budget insurance. this is help protect and care for your employees at no cost to your company insurance. with aflac, your employees pay only for the coverage
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on "mad money" we've talked about the huge investment opportunity in the stocks that help internet providers speed up their networks. we've told you about companies that improve the transmission of video, that help carriers expand their bandwidth, and that make up the backbone of the mobile internet tsunami. these stocks have all been red hot. we've given you stocks that help improve texting, that help manage networks. there's one area that we totally neglected when it comes to telco networks, and it's because it's so old-fashioned. i'm talking about voice. i know. i know. i mean, like my kids, actually speaking to you on the phone is a terrible thing. it's all text.
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so is everybody else. people do, though, still use phones. they still use wire line phones. i know it's out of fashion, but i've actually seen it done. i've had people like speak to each other. it's incredible. i think there's a speculative opportunity here, one we've been missing. it's a theme that's very real. and it's connecting the old world to the new, connecting legacy telephone networks with modern what's known as internet protocol, or ip ones. and making the transition seamless so there's no time lag and voice quality's just as good as the old-fashioned legacy circuit switch public networks. telephone companies are spending fortunes on upgrading their networks. but unlike, say, hong kong, which we had on last night, america's still full of these old legacy networks that need to connect with more modern ones. a lot of copper in the system. and that's why we like, new name, everybody, but remember, it is speculative friday, we like sonus networks. and the symbol is sons. s-o-n-s. for all you home gamers. now, this stock is as speculative as it comes.
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it's at $2.57. $700 million market cap. sonus makes the equipment that allows carriers and service providers to transform their old-fashioned voice networks into modern scalable internet protocol ip ones and to seamlessly connect the old network with the new generation without diminishing voice quality, which by the way it would without sonus. it's a pure play on what's called voice ip infrastructure basically, this company's flagship product is called the gsx-9000. it's a media gateway, serves as a bridge between legacy circuit-based networks and modern internet-based networks. the product minimizes delay, that enhances voice quality, and it scales to the very large configurations that are required by these major, major telco companies. it's got ten years of experience helping customers migrate to modern ip networks. it's not just some fly by night that started last week. and every day more than a billion ip voice minutes are managed through sonus'
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networking products, 50 countries, international company. now, it may be speculative, and it is, it is. but it's got real customers. at&t, global crossing, level 3 communications, lblt, which you know we're warming up to. verizon, qwest, which we recommended yesterday and i still like. and none of these customers represent -- it's like yesterday. of course i like qwest. and represent more than 10% of its consolidated revenues in 2009. so it's not too dependent on any one company. this one's been through three restructurings in the past year. it's had a problem. you don't get to $2 for no reason. it's been able to lower its costs. it had one in december of 2008, had another in 2009 and one in august of 2009. and you know, those were all received negatively, but now it's got a cost structure that's so improved that i think the stock can go higher when it reports. now, the last quarter was very good. february 26. looked great. they earned 4 cents a share. the street was expecting them to break even. and it was on sales of 69 million. 8 million better than what the analysts were expecting. a lot of people think $2 stock they're losing money. they're not.
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the book to bill ratio, a measure of how strong their future is. it was over one for the quarter. and for all of 2009. so it's got more orders than it can deliver. but the company did something that you know is painful. it gave disappointing guidance for 2010. but given its improved cost structure and the economic recovery i see happening, along with a fact it's got some big new products coming, including a next generation internet protocol communications platform that will integrate all sorts of different functions like call control, service logic, processing, security into a single cost-effective network element, i think it's going to penetrate enterprise. i think big companies are going to do it. remember, enterprise is wall street speak for big business. i think the future is looking brighter and brighter for sonus. why speculative? well, you've got to have a stomach for the risk here. you've got to have a stomach for the risk involved because it competes against cisco. it competes against ericsson. it competes against nokia. it competes against alcatel-lucent.
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plus sonus totally at the mercy of telco carrier spending. so if verizon slows it down and given the complexity of its products, that means it can get hit with serious revenue problems. making the future hard to predict. you know what, i'm not worried about the down side here. there's a particular reason why, and it's not just because business is stronger. it's because it has $1.53 in cash. 60% of the stock price, for heaven's sake. nor am i concerned about the fact that it's flirting with its 52-week high. this is a $2.57 name traded over 8 in 2007. and during the tech bubble i remember this when i was at my old hedge fund when i used to run money. $500 million. this stock traded at 100. $100. i don't think it will go back to those heights. but even if it only trades up to 3.50, take a 36% gain, right? there's no reason to chase. we do speculation friday for a reason. because the weekend provides a mandatory what we call taft hartley style cooling off period. forces you to do the homework, do some thinking before you can buy. here's the bottom line on sons.
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despite the strong competition and the downbeat guidance but thanks to its huge cash horde and well diversified business i think the down side with sonus is very limited. meanwhile, the up side, driven by telco carriers that are looking to control costs and improve their networks, could be substantial, especially with a stronger economy. this one's worth taking up the speculative spot in your portfolio. too cheap to ignore. yet trading like it's bleeding red ink and it's at death's door. after the break i'll try to make you more money. >> who is jim cramer? >> jim cramer. >> jim cramer. >> jim cramer! >> the very unstable jim cramer. >> without question jim cramer is a virtuoso of the stock market. >> there's a guy jim cramer who rolls up his sleeves, who never sits down, just continually walk around, prowl around the studio. >> one of the greatest, most spectacular performers on television. >> he is evidently insane. >> you have to be nuts to understand the market, and i am nuts about the market. >> let me offer you a heartfelt
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boo-yah. >> you've got to stay focused! >> commerzbank, i think that's going to -- >> commerzbank. >> open all the time! >> that's it! two thumbs up! >> bull! bull! >> it's arrested development. >> triple sell. don't buy! >> don't buy. >> i'm grounded and spent all day listening to my dad yell at "mad money" with jim cramer. >> bottom line! everything's going to be fine. >> stark industries. that's a weapons company that doesn't make weapons! >> jim cramer had this to say about the economy. he's a prophet. listen. >> he's nuts! they're nuts! they know nothing! >> they know nothing! >> they know nothing! >> in retrospect, don't you
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think you were too calm? >> he was right. we were at the beginning of this great panic. >> what is your advice today? >> whatever money you may need for the next five years, please, take it out of the stock market. right now. >> that was a call that should have wrecked my career. and it would have if the market had gone up. i stuck my neck out and did it. >> i have brought in a financial heavy hitter. >> please welcome jim cramer. >> i'm stupid and -- >> don't say that. it's very hard. >> they're stupid. >> yes! >> "mad money's" jim cramer. ♪ all these things that i've done ♪ >> jim cramer. >> jim cramer! >> and then you get mad. and then you get mad. >> make believe this is jon stewart. >> you have beautiful eyes. ♪ if you can't hold on >> the president wasn't as fevered this morning as jim cramer. >> i've never seen the president that fevered. >> we're joined now by cnbc's jim cramer and former chairman of the federal reserve alan greenspan.
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we've seen, exxon buying xto, total buying a quarter of chesapeake's barnett shale assets, mitzi going in for a stake in anadarko's marcellus shale acreage, how about bp buying devon's best overseas properties for 7 billion last week, that stock's getting cheap, and console energy, a coal company for heaven's sake, buying dominion resources' marcellus shale assets, we've got to believe there are more takeovers coming. so tonight as your investing coach i am going to help you speculate wisely. a double-barrelled speculation friday. on a company that's got so much gas that i am literally coming out here with a basket of whoopee cushions sent to me by my pro-coal, obviously pro-fat flatulence sister to spice up still one more oil and gas story. better. i know the price of natural gas has been getting crushed. and some of our favorite names like apache.
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and chesapeake have gotten hit with downgrades. but you've got to understand there are two ways to value a company. there's the price you see on the ticker, the price that's trading every day. what the market's willing to pay for the shares right now. and then there's the potential value that's so much bigger. the value that a company may be to another company in a business takeover. ♪ hallelujah >> right now natural gas -- >> house of pain. >> the house of pleasure. >> seemingly foreign players desperate to get into the u.s. drilling boom. i have to believe that the big players in the industry understand just how much these assets could be worth. and i would be downright surprised if you don't see even more deals in the not too distant future. even as i think this group could be about to get shelved as obama's agenda is likely to get reignited over the weekend if the health care reform passes. that could be bad.
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and the epa is making a lot of bad noises, too, about drilling they do. but what is the right way to speculate at this point in the space? i've got one. it's called sandridge energy. sandridge energy is a gassy stock that came to my attention thanks to one of your e-mails last week. here's a company that's focused on drilling in west texas, the permian basin, and oklahoma. it's got an amazing amount of resources. it's got 1.3 trillion cubic feet of reserves, and the business is about 48% oil, which is good because oil's at 50, and 52% natural gas, which is bad, because natural gas is at 4. i think you could speculate with confidence in this one because it's already come down to less than two points off its 52-week low. so if we get a big sell-off, as i expect to happen if the health care bill passes, sandridge is less likely to get pummeled. this one's got the right blood lines. its ceo, tom ward, co-founded chesapeake energy. i know this guy personally. let me tell you something, he's
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a terrific oil and gas guy. the company has about 8 trillion cubic feet of reserve potential in west texas and the permian basin, which is the third largest oil-producing area in the united states. estimated to contain 29% of our country's estimated future oil production growth. then it has another 6.3 trillion cubic feet of additional reserve potential coming from its position in the west texas overthrust. where its natural gas is mixed with carbon dioxide. which has to be removed before it can be used. something that's been a problem for the company. hey, that's bad gas. but sandridge has a co-2 processing plant in -- my sister. couldn't take any more natural gas stories. so she sends me the basket. anyway, it's in partnership with oxy petroleum. that should start operating in july of this year. expected to add an additional 100 million cubic feet per day in processing capacity because of the tougher gas here. another 100 million cubic feet per day coming online o'2011.
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finally, it's got oklahoma assets, 1.2 trillion cubic feet of reserve potential. and here sandridge has some exposure to the unconventional assets we like so much. including the woodford shale as well as a horizontal drilling play in northwest oklahoma. i am so shocked this stock is so low. i'm not kidding. i mean, with all the terrific assets it's only trading at $7.44. how could it be? two reasons. its natural gas production is unhedged after 2010. and you know how low natural gas price is. and more important here's why it's despised. it's weighed down by $2.59 billion in debt. it was about double the leverage of most of its competitors. and people are very concerned about that. analysts are worried that if natural gas prices don't recover by 2011 sandridge is going to have trouble paying that debt. i think the stock's priced for disaster already. and the possibility that things could get better or that acquirer might want to buy some of its assets just isn't at all reflected in the share price. even the analysts, who have seven buy and nine holds on this
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stock, have average target prices of 12.50. i mean, that's almost 70% higher than where sandridge is right now. the debt doesn't come due until 2014. i deem this stock acceptable to speculate in. here's the bottom line. all right. i hope these whoopee cushions got your attention. because you are now free to speculate on a takeover name in the oil and gas rush that i think will do just fine, even if it's not acquired. you know i never recommend a stock only on a takeover basis. sandridge, sd, silent, deadly, and blessed either way. david in arizona. david. >> caller: congratulations on your five years, jim. >> thank you there, partner. what's on your mind? >> caller: i know you've been positive on using u.s.-based natural gas for energy independence, job creation, and lower carbon -- >> yes. thank you for giving a litany. i wish that the white house shared that. but go ahead. >> caller: okay. but how does the development of qatar's latest discovery, which is 900 trillion cubic feet, affect the market? is it a positive because it demonstrates worldwide reserves
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so we don't have to worry about running out, or is it a price negative because of increased supply? >> look, this is a great question. a lot of people were concerned, there was a lot of talk today about europe has a lot of marcellus shale gas but they're not drilling it. i think it's a regional market. it's unusual because you have to sell it by lng. i think in that part of the universe they need that natural gas. in our part of the universe we have a nice -- we have a bit of an imbalance. we have too much. that's why we need washington's help to switch away from opec oil. but i'm not worried about the international. but natural gas trades at different prices all over the world. it's not like oil. and i think we're in good shape here to be able to use it for utilities, 50% of which are based on coal. how about frank in illinois? coal state. frank. >> caller: hey, jim, always enjoy the show. >> thank you, frank, appreciate it. >> caller: real quick wanted your opinion on first energy, symbol fe. it recently made an acquisition and i wanted your comments and thoughts on it. it pays a dividend and how it compares to what you presented yesterday. finally the most important question is any growth potential to the stock.
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should i add to my position? >> you know, it's very funny because yesterday when i was doing my rundown of high yielders this one's at 5.8% and i like the acquisition very much. what made me more worried about it is because it does have coal plants and of all things as i read everything coal that's sent to me, there was a terrible article in the "rolling stone" that comes out. "rolling stone." like you know, hey -- like that's me all over, right? word up magazine and "rolling stone." and i've got to tell you, it was very negative about first energy and it made me concerned about coal and coal sludge. i think first energy's a good situation. i think the takeover's good. but i'm not going to start recommending a lot of coal-based utilities or utilities that have a lot of coal plants. i think the epa could make life very difficult for them. let's go to dan in virginia. dan. >> caller: boo-yah, jim, from steeler country. i want to know what you feel is the real future of solar power. the federal government has issued mandates that will require reduction of at least 15% of energy consumption for federal facilities by 2010 and increase that number to 30% by 2015. do you see a future for solar or -- >> no, i do not.
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we are no longer able to subsidize, nor can spain which was using it a lot, nor can germany. a lot of the governments in this world are too cash constrained so they're not going to be able to support solar. solar will be good only when they lower the price to the point where it is economic. so i'm very negative on that group. >> don't buy. don't buy. >> all right. thanks to nancy, that -- not nancy pelosi. i'm talking about nancy mason for sending me this basket of whoopee cushions. i hope it got your attention so that now you can think about buying sandridge, which i think could be a real home run. stay with cramer. >> welcome to "mad money"! welcome to cramerica. i'm here to teach you. i'm here to entertain you! >> not here to make friends. i'm here to try to make you money. >> i'm so mad. are you mad? >> i'm mad! >> oh, don't be mad. >> mad! >> we just want to congratulate jim cramer. jim, congratulations on your fifth anniversary at "mad
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money." >> five years on television is like an eternity. very few people can pull that off. >> mr. cramer, before "mad money" my life was not great. i was still spending confederate money. >> hey, jim, congratulations on five years of "mad money" on cnbc. but more importantly, for still having the sexiest elbows on tv. >> i have to say, jim, you make me seem downright boring. >> who else could rattle off those numbers and opinions while prowling around the set, taking telephone calls, throwing props, ringing bells? >> i just don't know how we ever survived without jim's quiet, calm, deliberative market analysis. >> five years of "mad money" on cnbc. >> here's to many more, jim. congratulations. >> you were among the first people to call for strong action by the government as the economy headed toward the worst financial crisis since the great depression. congratulations on five years of straight talk on "mad money." >> thanks for that hot tip on buying toyota.
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before we get to the "lightning round," i want to bring on the winner of the great cramerican challenge. back in october bob was the faithful viewer and bested thousands of contestants to get a chance to kick off the "lightning round." and now he's here all the way from illinois. congratulations, bob. >> thank you, jim. >> but we're going to have some fun. we're going to have some fun because it is time. it is time for the "lightning round"! on cramer's "mad money." that's where take your calls rapid-fire one after the other. you tell me the name of the stock i tell you whether to buy buy buy or sell sell sell. to be clear i do not know the callers or stocks ahead of time including bob. my staff prepares the graphics on the fly. we play until we hear this sound. and then the "lightning round" is over. all right, bob, this is your
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chance. what have we got? >> boo-yah. >> boo-yah, chief. >> and congratulations on your five years. >> good man. thank you. >> great show. >> thank you. >> my stock is air products. >> this is a tough one. this is a tough one. because you know they're making a bid for air gas. and you know also that this stock has now moved up from the mid 60s -- high 60s to the 70s. here's what i think you should do. i think eventually if they're going to get the company that they want they're going to have to pay a lot more. much, much more. i think the stock has moved up too much. i want you -- >> sell sell sell! >> -- to take profits. even though i like air products, i think the stock has run too much. and that's my advice for you. >> all right. >> once again, congratulations. thank you for coming in. thank you for coming in from illinois. let's go to peter in minnesota! peter! >> caller: hey, i want to give you a big minnesota 10,000 lakes boo-yah! >> holy cow. i'll give you a 9,999 lakes because you're obviously in 10,000.
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what's up? >> caller: i was wondering about wen, wendy's, arby's -- >> i still like wendy's. i still think the breakfast menu's going to be big. but it's not best of breed. mcdonald's is best of breed. i also think the dollar soda is going to bring people in -- >> ♪ hallelujah >> -- to mcdonald's and to wendy's. let's go to jill in illinois. jill. >> caller: mr. cramer, boo-yah, boo-yah, boo-yah. >> three boo-yah and our second illinois person here because we had bob earlier. what's up? >> caller: i am so excited to talk to you. i wanted to ask you about psra. >> they're in the penalty box because they screwed up twice, came on the show and didn't deliver. bob la penta was also in the penalty box. we took him out, by the way. he delivered. that stock's moving up big. it's up 30%. but tessera is still in the penalty box. let's go to charlie in georgia. charlie.
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>> caller: boo-yah, jim. vitacost. vitc. >> we like the other one, the other vitamin company. you know what? let me see how this one's doing before i pronounce judgment. these vitamin stocks have been -- some of them have been very good over time. the one that i've liked, just so you know, is vsi, which is vitamin shoppe. let's do an analysis about whether your vitamin company is better than vitamin shoppe now that vitamin shoppe has soared all the way to the 20s. let's go to gail in new york. gail! >> caller: hi. i want to sell -- but every time i go to costco i see the packages all around me. >> you sure do because that's the most inexpensive and well-run packaging company. i don't want you to sell that one. i also like tin. and don't forget, i think ip is doing well, international paper. that group is still strong. we are worried about the stock market, but that group has been staying up there, and i think for a reason.
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business is good! how about norm in colorado? norm! >> caller: boo-yah, jim. and congratulations on your fifth anniversary. >> thank you, norm. thank you very much. >> caller: i'd like -- my question is regarding stereotaxis. stxs. >> that's a speculative play, and we've liked it a bunch of times. this group has gotten very hard hit. this is the cath lab company. this group's gotten hard hit. rather than being in this one i'd rather see you in abbott, abt, which has pulled back. it's a name i own for actionalertsplus.com, my charitable trust. very well run, good group, making a series of acquisitions. that's a higher quality company. let's go to les in florida. les! >> caller: hey, a big boo-yah from the shark bite capital of the world, new smyrna beach. >> well, all right. listen, every place has a claim to fame. go ahead. >> caller: i have a stock that's paying such a high dividend i'm scared.
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it's nmm. nancy mary mary. >> navios. you're right to be worried. i think the dividend's too outsized. i'm throwing the red flag. i think that's a danger zone dividend. i'm not going to recommend those stocks. most of those companies have cut their dividends. i don't know whether those guys are. you know what i like, i like a company that says it's going to substantially raise its dividend. but once again i'm going to take it into american tanker, the best performing tanker stock in the history of this show. roger in kentucky, as i ignore the buzzer! roger! >> caller: jim, a big kentucky wildcat ba-ba-ba-boo-yah to ya! >> you know where i'm going with the wildcats, unlike my executive producer who's going all the way to nowhere with georgetown. what's up? >> caller: i've been following this oil and gas production company for some time. it missed fourth quarter earnings but as you have taught us home gamers i listened to every minute of the conference call last friday and they have a positive forward outlook and expect crude oil production to
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double in the first quarter of 2010 from the fourth quarter of 2009. atp oil and gas. atpg. >> because i'm so worried about gas pricing i cannot push that stock. but you know i like it. you know i like it. i just feel like all these stocks can have a little bit of down side. when i was trying to figure out a good natural gas stock to recommend that had the oil and natural gas, i've been looking for ones that are really down and out. that one isn't. you do have a good play, though. let's take one more. let's go to dave in new jersey. dave! >> caller: boo-yah, jim. >> boo-yah, dave. >> caller: i love your show. i watch it all the time. >> thank you. >> caller: i think you do a great job. i'm a teacher myself, and i really appreciate you educating us individual investors. >> you're a good man. that's what the show is about. education. and a little bit of entertainment isn't a bad idea. and humility isn't bad, particularly in this difficult market. what's up? >> caller: i bought green mountain coffee over a year ago at 29. it's 393 and change now. do you think i should take my
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profit? >> let's congratulate this man, who bought green mountain coffee, that's the keurig system. who bought it really low. now, because you did, you are going to take out every penny you put in. on monday you're going to take your whole cost basis and play with the house's money. i think green mountain's good. the stock has been on a tear even though i don't like them this high. but i do think that green mountain coffee is going much higher over time. why? because you buy the keurig, it's very inexpensive, and then you pay forever for those little cups. it's the gillette razor blade model. it's a fabulous one. green mountain, that's here to stay. once again, thank you to our cramerican winner bob from illinois for coming in. and stay with cramer!
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mail has been stockpiling in part because of the fifth anniversary. this one says dear jim and staff, my staff is amazing and that's why this show looks and feels so good, i think, every night. this is from three gals from long island. jeannie, kim, and sue. thank you for such a fun and exciting day on tuesday at your
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fifth anniversary show. the staff at "mad money" did a phenomenal job and made us feel welcome. if it's possible, we hold you in higher esteem. couple of chicks. cheeks! whoa, chicks, a couple of chicks. and we haven't washed our faces yet. hygiene is next to godliness. we're also honored to be in the presence of another gentleman, your dad. we thought of two more questions. what drives you to excel in everything you do? and what are your thoughts on iron mountain irm? ladies, here's the thing, i try to excel, i often don't get there. but i work very hard. why? because my dad instilled it. you saw that the other night. that is all about my dad. that is what he told me to be and i think i have delivered -- my father tells me i have. iron mountain's difficult because this is a storage play, including digital storage. i think it requires more business formation than we're going to be able to get in this country. and therefore, i think the stock is a flat-liner. thank you so much for your kind comments and now you are free to wash your faces.
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this one is from -- this is from lisa in annapolis. dear jim, it was a real privilege to be with everyone at 30 rock to celebrate your fifth anniversary. it was a wonderful time and very emotional for us in the audience, too. i love talking with other people in line about their connections with the show and all they've learned from you. it was truly a room full of genuine love for a real guy. i let my son take the day off from school and he was there with me. it was an incredibly inspirational day for him, too. as someone who has read and watched you for 50 years, this is what brian williams said, i'm so proud of what you give the people day in and day out. you're doing what so many dream or talk about, giving back. i watched the show again and could not stay dry-eyed. well done, congratulations to you and your incredible crew. take a boo-yah, lisa in annapolis, thank you so much. my crew thanks you and it was a highly emotional night. and it should have been because it was a big deal for us. everybody who knows me personally, this was a very important night for me, my
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family, and everybody here. here's one from staff sergeant mike in the u.s. army. congratulations for serving, mike. sending you a united states army hooyah boo-yah. i'm looking for your opinion on boeing. and whether or not this is a good time to increase my position. i've doubled my money at this point. thanks for all you do for small investors and your appreciation for everyone in the armed forces. keep the books coming, i love getting back to even. i'm back to even and up 18% since reading it. staff sergeant, thank you so much. here's my advice on boeing, the stock has been red hot, but it's going to be a multi-year move. just today they came out and said they're going to increase production for 2011. here's my take, don't buy up here. i think the market's coming in. if it comes down, you pick up more. do not schnitzel yet. i see a multi-year move coming for boeing and all the companies that make parts for boeing in the next couple of years.
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