i'm offering a simple theory. stocks go up or down based on corporate profits, on what they make after they sell stuff. corporate profits are roaring back along with the world's economies. and nothing we heard today about goldman sachs changes that. with corporate profits will come a return of the profits to you, the shareholders. and to be scared of the profits that come to you, the capital gains and the dividends, dividends that can be so bountiful just because of a case involving one firm selling an obscure instrument to another firm, frankly, that's poppycock. it's nuts. i can't let it happen. this case has nothing to do with the profits i expect to see from apple. it has nothing to do with the dividends i expect from coke or verizon, both of which were up today. you know our view. in dividends we trust. now, i understand the core of the idea that the business is biased against you. i mean, think about it. the dotcom bomb. the nasdaq crash.

i mean, these seem to be palpably, palpably about defrauding you. that's right. taking your hard-earned dollars. but remember, at the same time as the dotcom meltdown was occurring the big dividend players actually increased in value. i know the huge decline based on the collapse of the banks hurt so many of you. however, if you were diversified, if you held on to a lot of cash as we advised and then got back in some 4,000 points ago, as we advised, let me ask you, would you still say the game is rigged against you? i think you might conclude that parts of the game seem corrupt, maybe the lehman part, the bear part, how about the aig part, the fannie and freddie part, the washington mutual part. hey, maybe now you think the goldman part. yet that's precisely why we demand diversification, why we play a silly little game that's not really so silly at all, "am

i diversified?" every wednesday. we do it to keep you from owning too much of one group, being exposed, maybe too exposed to the infectious diseases that periodically afflict whole sectors, like the until today red hot sector of banking. it's why we stress doing homework. as long as you know what you own and know what you like, as long as you have the time and inclination, then you can pick stocks, buy them on the way down, that give you the return that you need. may i remind you that it's a return that far exceeds what you could earn from cash or from gold or from real estate. yes, of course we should keep our eyes open and remain skeptical. and yes, i'm always worried about the fed tightening too quickly. i'm not going to obscure the european woes and their impact. worried about the sustainability of the recovery? what do you think i research every single day? worried about washington's meddling? what do you think keeps me up at night? plus, we have had a magnificent run, right? from dow 6500. and there's no reason why people can't use this excuse to sell.

you know me. if you get big profits, then you may be committing the ultimate sin. the sin of being greedy. and may i remind you that bulls can get rich, bears can get rich, but pigs, they simply get slaughtered. so if you have huge gains and you want to use goldman's woes to justify ringing the register, be my guest. heaven knows, with capital gains rates set to go much higher, i can't blame you. i think about it all of the time, but then again, i don't own any stocks. the rules. that's the honest, real good reason, by the way, the capital gains rate changed, to ring the register. remember, if stocks were up big, and then have to pay more to the tax man, i see your pain here.

but understand, please, what happened today should not change your impressions about the abilities of the chief executives of ford or starbucks or intel. guys who are going to make you far more money over time than your paycheck ever could. there's a reason why in the opening credits you forever hear me say that you need to get in the game. you need to stay in the game. it's because whatever amount of individual fraud may be exposed, whatever bad actors might be routed, there's never been a greater wealth generator in history than good dividend-paying u.s. stocks. and nothing you or i heard today should change our opinions about that. nothing will alter the fact that stocks will continue to pay off and go higher as the economy continues to get better and better over time. here's the bottom line. the stock market game isn't rigged. the odds aren't stacked against you. and as long as you follow the disciplines i preach here every night on "mad money," diversification, homework, profit taking, staying in the game, even the occasional corruption of an entire sector, and what we heard about goldman today doesn't even come close to that, that won't be enough to

poison your portfolio or stand in the way of the long-term gains that i -- i can't promise but that i believe you will get from buying and holding high-quality dividend-paying stocks. i want to start the phone calls with gene in new york. gino. >> caller: boo-yah, jim. how are you? >> not bad. thank you for asking, sir. how about you? >> caller: pretty good. just cruising the shores of maryland here, heading down to william & mary lacrosse. >> making me feel awful. i'm sitting here cruising the nothing of englewood cliffs and wondering whether i'll get out of this joint. what's up? >> caller: i'm just curious. i think there's a little going on where we're downplaying this whole situation. i was around when salomon kind of ignored their little trouble with the government back in the '80s. curious as to what you think the long-term implications to goldman sachs are going to be when their name is associated with fraud even if they don't end up being convicted of this. >> well, i've got to tell you, remember that was criminal back in salomon.

i lived through those days. justice department gears up wants to wipe out a firm they certainly have that ability. i did not see that happen today. long-term implications? well, frankly, i've got to be honest, don't see them. i think there are some short-term implications. i certainly wouldn't want to be the guy who did that trade. but that's because of the unfortunate way that the s.e.c. game is played. let's go to eric in texas. eric! >> caller: ba-ba-ba-boo-yah from houston, texas, jim. >> stuttering boo-yah to start the show. and i always like that. it makes me feel good. how can i help? >> caller: hey, jim, given the breaking news from the s.e.c. on goldman sachs today, how do you think some of their competitors such as deutsche bank and citi are feeling, and do you think they will see more cases brought against them? >> i think that the government likes to bring a string of cases, but where they go first is their best shot. although we saw that against bear stearns. it didn't work. the justice department lost. do i think that goldman will lose clients over this? i think anytime there's something bad you're going to lose a client or two. but you know what the clients are motivated about? making money. and if goldman provides

moneymaking ideas, business flows right back. it's the nature of the beast. don in my home state of pennsylvania. don. donald, speak to me. >> caller: i'll give you a real big boo-yah from the phillies game here. boo-yah! >> i like that, but my dad and i were commiserating. you know, other than halladay no one's gotten past the fifth yet. these are things of course i think about while i'm debating about the goldman thing. but you know, i'm like a guy, and it's a guy thing maybe. except for the female fans. all right. go ahead. >> caller: well, that's a good segue from halladay to what i need to ask you. >> meaning a winner to whatever. okay. go ahead. >> caller: what's the deal with treasuries rallying, going up and oil dropping? does it have anything to do with goldman sachs? >> i think that a lot of people feel like anytime there's like an end of the world call -- and by the way, if you're between 10:30 and 11:30 and the market had that end of the world feel, then you start seeing, well, hold it, what does goldman own? maybe they own old. because maybe goldman's in

trouble. let's go to safety, let's get out of risk situations, go buy some treasuries. these are the rhythms, the ebbs and flows of panic. we're well familiar with them on "mad money" because we've been at this game for more than 30 years. nothing shocks us. this was garden variety panic and you know what? i'm going to do some gardening this weekend. it's going to be more productive. here's the bottom line. the game is not rigged. the bottom line is i'm also planting cucumbers and tomatoes this weekend. could be too early. it's coming up. the way to play, this you know what, i'm going to give you a game plan. right in an open hand. "mad money" will be right back. >> announcer: goldman turmoil. fear running rampant. is dow 12,000 now a pipe dream? get cramer's reality check. and later, tech spec, cramer's got his eye on one ipo you don't want to miss. could it connect you with profits? all coming up on "mad money."

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now that we've addressed the notion that the market's not rigged, even though there are plenty of moments of rigging, we have to think about how to profit from the pervasive sense that the whole game's corrupt and you should just stay out of it, not get in. in other words, how do you play a first-class disaster that brought the whole market down in one fell swoop? how do you profit from the fraud charges against goldman sachs? let me give you your game plan for next week. first you've got to wait for things to settle down on monday. the headlines all week will be awful. like do you think "the new york times" is going to say why we love goldman? i mean, i suspect their best chances to buy the stocks will probably come in mid-morning. so what's the primo merchandise you should take?

i think you should buy the stocks of companies that just reported great numbers and have nothing to do with the controver controversy, itself. i'm going to ask you a question. what do goldman's woes matter to the huge semiconductor cycle that intel is riding so beautifully? nothing. nothing. nothing at all. hey, that's a terrific place to go. so is csx, the railroad that reported stupendous numbers. or ppg, a chemical company that just shot the lights out because of terrific asian business. yet it came in. why? because of the overall pressure of the market and goldman. or how about this one? u.p.s. just preannounced wonderful earnings but got hit today off of goldman sachs, too. pretty silly, satellite pretty silly when you think about it. now, second on your list to buy will be the financials away from goldman sachs that have reported magnificent numbers. here i'm primarily speaking of jpmorgan. they had a fantastic quarter. yet it's back to where it was before it reported, like it didn't happen. or bank of america. which got caught up in the brouhaha obscuring how terrific that quarter really was. i went through it, fine-toothed

comb. it's the only use i have for fine-toothed combs. and i've got to tell you it really was fabulous. that's why i kept them, even after i lost the hair. fine-toothed comb to go over bank of america's quarter. i marvel at both firms' numbers and how cheap they are considering. which is why i own them both for my charitable trust, actionalertsplus.com, as i do u.p.s. could there be spillover, further investigations into these firms? probably. all i can say there is that if there are others the whole issue gets diluted. people will forget the whole darn controversy. that's what happens. keeping an eye on vik pandit's citigroup, it shed 5% since yesterday, much of it because of goldman sachs. the company reports on monday. if it's good, you could be getting a gigantic goldman-inspired bargain on a stock that i think could ultimately wind its way higher, maybe to $12 in 2012. then third, you buy the big industrials, which haven't yet reported, a little more risk here, right? that's why it's third. the ones that have been galloping and galloping higher until this news broke about

goldman. they are entirely unaffected. the issue of course here is that you can't be sure what will be reported. so now you are relying on the decline to create values that might not be realized, hence the more risk. for example, i saw high-quality cyclical like boeing, that reports next wednesday. it was down 2%. i think you can buy some boeing ahead of wednesday's report. i'm sanctioning that. because it is at the beginning of what i believe will be a multiyear, maybe a seven-year cycle. then you go buy more if it gets knocked down more when it reports because i'm a conviction fan. you know i like caterpillar and deere, both of which got hit hard. goldman deere, goldman cat. best of all, ford, a company on a major roll. some of it almost repealed in the wake of the goldman negativity. you know how i feel about ford and its ceo alan mulally. i think ford's heading higher. i think it can see 17 rather rapidly after it reports, courtesy of bond rating upgrades and number bumps. you've just got a nice discount for no real reason.

i'd consider buying some of the retailers and retail derivative plays like hot topic. my dad called me yesterday, said i never looked so good. hey, dad, that was a wig. i know you know that. or scott's miracle-gro smg. i've been trying to figure out how they could come down so you could get into some of them so cheap. then goldman happens. same with home depot which i own for my charitable trust. i've been itching to get more of that one. and don't forget online retail king amazon, down 3% today, which reports next thursday. down 3%. might be like boeing, though. amazon could be a chance to buy some, and then buy more of it. if anyone thinks the future of amazon's getting darker, not brighter, i mean, come on, could be a great opportunity. don't blow it. finally, there's apple. here's the stock that was rallying big right into the initial goldman-inspired sell wave. it was taking off. i thought it might have 250's name on it. the stock reversed, though, when the selling pressure became too

great, and it ended up down 1%. i don't like to speculate ahead of a quarter, which is why i like to tell you to sit on your hands during earnings season until after we find out how a company's doing. then you can do the buying. because know where i think you're going. but if people don't like what apple has to say when it reports tuesday after the close, i want you to be ready. we aren't buying it for the quarter. please. i'm going to say it again. we aren't buying apple for the quarter. we are buying it for the next few years. the fact that it was down today off of goldman sachs means it would sell off from a lower level than i would expect, and hence the opportunity. here's the bottom line. please don't get disillusioned with the market after today. i mean, remember, it's still up a lot. today's goldman-inspired sell-off is creating great values in stocks that have no conceivable connection with the controversy. next week is your chance to buy them. the unrelated companies that have already reported fabulous numbers. be thinking intel, csx, ppg, and ups. the financials like jpmorgan, bank of america, and perhaps citigroup. and the high-quality stocks with upcoming reports.

i'm speaking of boeing and ford as well as amazon and, yes, my long-term favorite, apple. ron in alabama. roll -- ron. >> caller: good evening, mr. cramer. >> good evening, sir. how are you? >> caller: fine, thank you. and i appreciate your entertaining education. it's been very helpful, sir. >> thank you. >> caller: this afternoon we got the goldman bomb dropped on us, and the herd panicked and all the dominoes fell in the financials. >> right. >> caller: i'm thinking that right now is probably a good time to increase position in huntington bank. what are your thoughts, sir? >> well, you know what? that is a really good idea. i had some friends who visited the bank recently. nothing inside information. just a good chat. and i'm feeling better and better about this high-quality jersey bank. it is true they did have some bad loans but it's time to revisit the regionals that didn't screw up, first merit, people's bank -- pbct. the stock hasn't really done anything.

and i think hudson city is really in that list. you've got a great idea there, sir, and i would follow up on it and do some buying. let's go to bill in south carolina. bill. >> caller: boo-yah, mr. jim. >> boo-yah, chief. how can i help? >> caller: i -- goldman sachs today and it was pretty nerve-racking to put it mildly until of course the time you get on the interview with erin and things kind of settled down and i felt settled down. i've been contemplating making a purchase of a stock that's an investment bank. it's called morgan stanley, and i'm sure you know what fund that is that's having a risk issue right now. they're about to write down a loss. writing down the loss -- i get feeling they might just be reinventing themselves and become a good buy. >> oh, bill, this is a tough call. when i read about that loss, i said how could everyone else be on the mend, be on the repair, and these guys still have such a big loss? i was disappointed.

i come out on the other side of the trade. i am bearish about that. and let's remember, those of us who follow the options market, and i do closely, because goldman sachs, the expiration occurred today, there were a lot of people who were what's known as selling puts. that meant they felt there was no way goldman could drop. that meant they ended up being artificially long, and in other words, they didn't know they would own goldman, and they panicked which hence added to the waterfall effect at goldman, turned it from the stream into slowly niagara falls. so don't believe that things are as bad as goldman from the stock, but do believe that morgan stanley has indeed screwed up its business, and i don't see an explanation for it. i need to go to kelly in california. kelly. >> caller: yes, jim. >> you're up, kel. >> caller: let me give you a southern california ba-ba-boo-yah. >> man, i'm giving you a trojan boo-yah. yeah. >> caller: all right. hey, jim. >> yeah. >> caller: i appreciate what you're doing for us home gamers. >> thank you. >> caller: you're awesome.

my question is in regards to cirrus logic, symbol crus, with its recent jump in revenue of 87% and also supplying components for apple's ipad, what do you see for the future of this stock? >> i'm going to play with an open hand here, kelly. i've been hoping for it to come down so i could recommend it on the show. the stock has been a one-way machine ever since we found out it's in the apple ipad. so i've shelved it until a particularly nasty day when i think i can own it with a bit more conviction. but i think you have a good idea and if i owned cirrus i would feel pretty darn terrific. once again, my game plan for next week, please do not get disillusioned by the market. i want you to think of goldman sachs's news as a fantastic buying opportunity to buy the ones that have already reported but got knocked down, i'd say unfairly. intel, csx, ppg, and ups. don't forget, jpmorgan and bank of america fit that same pattern. we're going to be on the citigroup call on monday. we're looking at boeing, looking at ford. we're looking at pretty much everything. okay?

now, next, the case against goldman. i've always wanted to be judge, jury, and let's say prosecutor. and, well, you're going to see me do it. stay with us. >> announcer: coming up, goldman turmoil. fear running rampant. is dow 12,000 now a pipe dream? get cramer's reality check. you've got questions? >> investors don't seem know what to do. i don't know what to do. >> good. i do. you came to the right guy. >> announcer: jim's got the answers. "mad money," demystifying the market. take care of your engine and it'll go far.

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look, i'm about to give you the straight story, the skinny. in plain english. about what happened with goldman sachs and the government today. but first, you've got to know some things about me, me personally. i got my big break in this business when goldman sachs hired me in 1982 to work in sales and trading. i also made a tremendous amount of money there, more than i ever dreamed of. i was able to launch my successful hedge fund career from there as well. and i proudly have friends, have friends who are still there. however, those who know me know that i am probably one of the most pro-prosecution people on

this planet. i always give the government the benefit of the doubt. as the people who work for the government are hard-working people with so many cases to may, why would they go after the weakest ones? they don't pick the names they go after out of the phone book. further, i have readily, stemming from my days running my hedge fund, helped the government to make cases against wall streeters. and unlike most, i have served as a high-profile witness for the people of the united states in a very big white-collar crime case, one where i know i was instrumental in getting the longest jail time possible for the guilty defendant. i am proud of that. nor do i condone the behavior of goldman or the named defendant in the matter i'm about to describe. doesn't smell good to me. wouldn't want to be associated with it myself. but i'm not sure that there was anything illegal. i'm not sure there was anything immoral or even unethical about it when you pull it apart.

so let's do so. first, goldman sachs created a product for a firm, paulson & company, a hedge fund that at the time wasn't known as a particularly smart client. paulson came to them and said look, i want to make a bet against the value of house, i think housing's gone up too far. goldman wanted to be sure that the piece of paper that was created to do that was vetted properly before goldman sold it to others. so goldman hired an independent firm that was supposed to investigate whether the product was defective, meaning there was fraud in it. and the firm, aca, did exactly that as a rating agency. they put out a document. this document, actually. abacus 2007-ac1. i read it today. now, i have to tell you, after looking at it i don't think i would have ever bought this piece of paper. never. but not everyone was as bearish on housing as i was in late 2006, when this basket was put together. and i could see where a less informed client might actually

want to buy this. now, remember, no one stuck a gun to the head of the client. a very sophisticated german bank. and said you must buy this piece of paper. however, a sucker was born the minute the trade was made. and the loss booked soon after. did goldman do something illegal when it put this booklet together, showing everything that was in it? totally transparent. or did the very sophisticated german bank that bought it just do something really stupid when it made the purchase? i think the latter. oh, and memo to the federal government, you tell us that goldman sachs should have told the germans, who was on the side of the trade that this genius paulson was betting dwanst the buyers, that paulson was the seller? that is hogwash. you and i both know government, that it's strictly forbidden to ever give up the client's name on the other side of the trade. it's forbidden. how could the government not

know that? how could that be part of the case? oh, by the way, paulson was a nobody back then. so who cared? but let's put it in terms that aren't as abstruse as collateralized debt obligations or credit default swaps. let's go back. let's say it's 1999. remember? near the top of the tech bubble. and let's say a helen fund comes in and that hedge fund was negative on tech stocks in 1999. let's say the best way to play that short, to bet again those funds that owned tech, was to create a basket like this that was made up of actual tech mutual funds, and the funds endorsed it, they didn't fight it. was there fraud in putting that basket together? oh, i don't think so. in fact, the bet against tech would have actually gone bad two months later, as incredibly, when i know very few people thought the nasdaq gained another couple thousand points, like lightning, and it was only after that run that it collapsed. housing was like that, too. exactly like that going into 2007. enjoying an incredible run that most thought was totally

sustainable. we now in hindsight say what a bunch of jokers, those guys that owned the tech mutual funds in 1999 going into 2000. but before the dotcom crash these people were making money hand over fist, more than i'd ever seen in my life. just as the german bank thought it would back in 2007, when few believed that housing would collapse. this was a great piece of paper if you thought that housing was going to be sustainable. remember, only now do we regard the client who wanted this negative basket created as the greatest investor of our lifetime. he could have been the goat. the goat, for heaven's sake, just look the short sellers of nasdaq, of tech, when nasdaq went from 2,500 to nasdaq 5,000 almost overnight. in fact, we learned today that goldman actually lost some of the money on this security. they lost $90 million on abacus 2007-ac1. does that absolve them? i don't know. but i can tell you this -- i think that before today goldman had looked to the world as if it had figured everything out and was the only genius in the room. after today it seemed more like that goldman just rigged the market in their favor.

i know right now the s.e.c. is under tremendous pressure to bring cases. i know that the government very much wants financial reform. which by the way, even in its most arduous, hard-hitting reformers' proposals would not have prevented this event from occurring. i favor financial reform. put simply, if you were in the s.e.c., it's a great time to bring this case, to expose the way the business works, to try to punish the firm perceived as the most arrogant and least reformed in the room. and while it may be a terrible personality trade, arrogance is not illegal. remember, when i see fraud, i am probably the only guy who comes on tv and tries to find these people guilty myself. every day i wish i had subpoena power. i am the only one who has a wall of shame, who has tried to hound and pursue anyone i thought did something to hurt you. you know that about me. i don't think this was one of those cases. if i did, you must know i could care less if goldman sachs helped me get my start or if i have friends there.

as i always say, this show is not about friends. it's about making money. bottom line, in this case you didn't get hurt. and i don't think the client who bought the product did, either. no. i like a vigilant prosecution but not an overzealous prosecution. yet that's exactly what i think happened today against goldman sachs. and i believe that many of you will come to see that the client was unsophisticated and bought it wrong, that goldman did the right thing as a middleman broker, that the guy who put it together just got real, real lucky. and i think you'll see it exactly as i do as time goes by. >> announcer: in uncertain times you should turn to someone with experience in bull and bear markets and somebody to give you the knowledge you need to endure any economic strain. jim cramer wants to guide you towards lasting financial

prosperity on "mad money."

it is time! it is time for the "lightning round" on cramer's "mad money." you probably ask, well, what's that about? that's rapid-fire calls one after the other. you say the name of the stock i tell you whether to buy buy buy or sell sell sell. just to be clear i do not know the callers or stock questions ahead of time. my staff prepares the graphics on the fly. we play until we hear this sound -- oh. this sound. [ buzzer ] and then the "lightning round" is over. are you ready, skee-daddy? it's time for the last "lightning round" of the week on cramer's "mad money." let's start with justin in maryland. justin! >> caller: big boo-yah, cramer. >> boo-yah back at you. >> caller: united health care, unh. >> not as good as wellpoint. but i'm not a buyer of any of those. what do i like? i like companies that are levered to the economy. i like companies that can get you back to even, where i have a whole bunch of recovery stocks and they are smoking red hot sizzlean. let's go to bernard in maryland.

bernard! >> caller: hi, jim, how are you? >> not bad, bernard. how are you? >> caller: i'm doing fine, thank you. hey, jim, i'm a first-time caller but i am an actionalertsplus.com subscriber, and i enjoy reading your stuff every day. >> thank you so much. >> caller: my question -- actually, two parts. i'm an income-oriented investor. and i've been into kinder morgan -- >> oh, we've been a winner with that one. >> caller: absolute. i've found something called the alliance bernstein, new york stock exchange, ab. >> yes. that's kind of a black box. what they own is what you own. and i endorse it. i have to tell you, it's got a good yield. it's not my kind of thing. i like kinder morgan because it's safer, but i have to tell you that's a decent stock. it's a decent lp. put it that way. shouldn't really call it a stock. let's go to freddie in new jersey. fred. >> caller: big jim, how are you? >> not bad, thank you, fred. how about you? >> caller: oh, doing good, big jim. big boo-yah to you from south

jersey. >> oh, man! south jersey rocks! >> caller: big jim. >> i'm a -- what's up? >> caller: city telecom, jim. i saw the interview last month with nick lee. what do i do with it? do i continue to hold or -- >> i think it's a good story. i thought he told a good yield. 5% high growth yield. i want you to own the stock. let's go to rodney in florida. rodney. >> caller: boo-yah! >> boo-yah, rodney! >> caller: i bought it at 14, now it's at 25. tell me, cramer what to do. >> we've had a huge run in zions. i've got told you since that guy came on like at 14, 15, you sell half and ring the register and let the rest runner because i tell you that they need to do an equity offering. they've been smart. let's wait for that. mike until florida. michael. >> caller: hi, mr. cramer. >> michael, how are you? >> caller: i am from florida, but i am originally from russia and i want to give you russian

boo-yah. ooh-ra. >> i'm going to give you a mergerbot boo-yah. go ahead. >> caller: mr. cramer, thank you for everything what you doing for us. >> my pleasure. what's up? >> caller: and thank you for your honesty. >> thanks a lot. >> caller: i want to know -- i want to know what you think about verizon. thank you. >> verizon, i think it's fine. i need to see a little dividend boost. the stock is kind of watching paint dry. i think you can go back to 32, 33. mike in maryland. mike! >> caller: yes. >> go ahead, mike. >> caller: hey, jim, thanks for caking my call. >> my pleasure. >> caller: so i'd like to wish you a big ba-ba-ba-bank of america bah bah-boo-yah to you. >> i'm with you as you know. as every actionalertplus.com subscriber nose, that a big position of mine. hit me. >> caller: i want to know about hig, hartford financial. >> let me give you another actionalertsplus.com name that's better.

prudential. it's safer, it's better. more up side. i say swap out of hig, swap into pru. and stay with cramer! ♪ [ rooster ] >> excuse me. let me give you a little glimpse inside my head. >> something i know. because i'm a gentleman farmer. how the heck do you think i got rich? with stocks? got my plants going here. you know what i mean? oh, man, we ought to gin some of this up and spray it at the old camera. must be the fertilizer. ♪ >> don't drink that at home. this is a boot. all right? that means terrifically easy comparisons. why do farmers always do this? >> hot topic is for me.

♪ >> oh, my god. you look hysterical. ♪ >> oh, my god. ♪ oh, yeah >> hot topic sells cds. and that business has gotten hammered. okay? this is someone who i listen to all the time when i'm at home. ♪ beautiful >> the company's also stocking the products people want with an emphasis on accessories. talk derby to me. or "you're the p in psycho. totally useless." ♪ more beautiful >> it is time to drop it like it's hot, drop it like it's hot. >> just throw it out there. >> this is the teen retailer that has finally turned around. i want you to stay with whoever this is you're watching. >> how do they do their hands? like this?

does it look good? is this how they do it? oh, totally. do you think the tie works? >> makes you look smart. >> biceps. >> sleeves rolled up. [ bleep ] ♪ ♪ >> i'm trying to balance. >> all right. i'll do it happier. >> hey, bra. i want you to swap out of this teenage wasteland psun and bet into some hot topic! stay with cramer! did it work? did it work? it worked? it worked! so i was the guy who was never going to have the heart attack.

i watched what i ate. i worked out. personally, i thought i was invincible. once it happened, i realized it's a different story. i'm on an aspirin regimen now because i never want to feel that helplessness again. [ male announcer ] aspirin is not appropriate for everyone. so be sure to talk to your doctor before you begin an aspirin regimen. i was the guy who was doing everything right. i was wrong. talk to your doctor, and take care of what you have to take care of. [ male announcer ] learn more about protecting your heart at iamproheart.com.

now that the ipo market has come roaring back from the dead, there are more deals coming than you could possibly know what to do with. and boy, does everybody love to talk about them. so tonight i want to give you an ipo anatomy lesson. using a company that's coming public the week after next. gives you plenty of time to get in it. as an example of what you want to see in these deals. i'm talking about alpha and omega semi. a semi conductor ipo that many of you already in your e-mails have expressed tremendous interest in. alpha and omega is expected to price during the week of april 26th. the symbol will be aosl.

i'm telling you about this deal well ahead of time because it's so strong and i do want you to have the chance to participate in it. what makes alpha and omega so appealing other than its grandiose name? right now the semiconductor space is en fuego thanks to the mobile internet tsunami, as all these mobile devices are full of ever more complex chips, along with they've also got the cyclical turn in both consumer and corporate demand for computers. alpha and omega designs, develops, and supplies a broad range of power semiconductors for computers. some flat panel displays, set-top boxes, portable media players, and power supplies. i want you to think of this company as a play on the need for more sophisticated power management chips to improve energy efficiency and extend battery life in things like notebook computers and netbooks. chipmakers like alpha and omega that can design ever thinner, smaller semiconductors, that better manage power, are exactly what's in right now.

especially for the integrated consumer devices now require multiple and separate voltages to power everything separately. semiconductors are part of the analog semi-conductor market which is expected to grow to $54 billion to 2011. that is a outgrowth of almost 10%. now, alpha and omega's portfolio includes over 600 different products that are incorporated into the devices, created by leading electronic companies like ace eacer and dell and hew.

now, alpha and omega's portfolio includes over 600 different products that are incorporated into devices by leading electronic companies. the company gets 60% of its revenues from that red hot pc market, 20% from consumer electronics, and 20% from the industrial and automobile markets, which i think are about to go and explode upward. and it's market share with these power semiconductors is in the low single digits. it's got a lot of room for growth. what sets alpha and omega apart from other power semiconductor plays? first of all this is not a wet behind the ears company, the team collectively have 180 years of managerial and technical experience in the semiconductor business and its technical team consists of 250 scientists, engineers, 34 ph.d. this company has created 100 new products per year over the last three years. i'm calling that impressive. plus the semis as you know are red hot. i think the demand for alpha and omega will be almost a palable. quarter to date they have positively revised their first quarter guidance, including texas instruments. which is especially bullish when you consider that the first quarter is considered to be a seasonably weak quarter. even better, recent ipos in this space have been fabulous. remember we told you to get in on max linear, and it performed extremely well. it priced at $14 march 24th and

then went up to $17.95. that's a quick 20% gain. what about another semiconductor? shares opened at $16.50, now flirting with a high of $21.88. how do you approach the deal? the offering is for 5.1 million shares. right now the range is supposed to be $17 to $19, deutsche bank and piper jaffray. lead unz writers and this is what is known as a privately backed ipo, and not one of the publicly backed ipos. it's got a strong bloodline. sequoia capital owns 15.1% of the company and neither they nor the top holders are selling. i like that. based on the valuations of similar companies like on semi, which you know we like and dios, i'd be willing to pay up to 12 times next year's earnings for alpha and omega, that comes to $23 -- long day. come on. i've been talking about goldman all day. trying the make you some money. it comes to $23 a share. if it prices within the expected range $17 to $19, i think you're getting a great deal and can buy as much as you want.

at $23, only buy half. so, in other words, let's go over this. you want 100 shares, buy them all at $19. you can only buy 50 at $23. splitting it. oh, also, only buy this if you can get the ipo shares. get in the actual deal. i don't like to buy in the after market.é÷ t)y >> jim cramer is your most valuable asset.

let's go over the game plan again in the wake of the goldman sachs fraud prosecution. first, you buy the stocks of companies that just reported great numbers.

i'm speaking of u.p.s. or intel. secondly, you buy the financial that just reported great numbers. here we're speaking about jpmorgan or bank of america. that's the game plan. i like to say there's always a bull market somewhere and i promise to try to find it just for you on "mad money." i'm jim cramer, see you monday. take care of your engine and it'll go far.

one way i can take care of my engine? one a day men's -- a complete multivitamin for my overall health. plus now it supports my heart health and helps maintain healthy blood pressure. [ engine revs ] whoa. [ man ] kinda makes your heart race, huh? boon motorcycle insurance, rv,at geiccamper, boat insurance. nice work, everyone. exec: well, it's easy for him. he's a cute little lizard. gecko: ah, gecko, actually - exec: with all due respect, if i was tiny and green and had a british accent i'd have more folks paying attention to me too... i mean - (faux english accent) "save money! pip pip cheerio!" exec 2: british? i thought you were australian. gecko: well, it's funny you should ask. 'cause actually, i'm from - anncr: geico. fifteen minutes could save you fifteen percent or more on car insurance.

mr. trump shocked everyoneon by separating project managers selita ebanks and rod blagojevich from their teams. tomorrow morning, you're going out to teterboro airport. rod: you don't need a passport for that. "celebrity apprentice" has never done this before. announcer: en route to orlando, rod and selita were tasked with creating a three-dimensional display for universal orlando's the wizarding world of harry potter. trump: you'll gather information about this new attraction. you'll report your findings back to your team in new york city. announcer: back in new york, cracks began to form on tenacity. holly: you'll be over here doing this, but that wasn't necessarily your task. cyndi: i wouldn't butt in. but you did. cyndi: holly's very bossy. sometimes she could be like a know-it-all, but you shouldn't. announcer: and sharon osbourne took a turn for the worse. sharon: [ coughing ] i didn't feel well. i was still seriously sick. announcer: but the men had a glitch of their own. [ laughter ] bill: if rod has to send an e-mail today, i sure as hell hope that there's a homing pigeon somewhere around

that he can attach a note to. announcer: after landing in orlando, selita rallied her troops... selita: i just need us all to work together as a team. announcer: ...while rod divided his team by giving bret michaels creative control. rod: bret, you're in charge. bret: i say we open this thing up and have no sides. i'm a little lost, honestly. this whole interior, everything, becomes the interior of a castle. michael: and we have come all the way back to square one. announcer: at the presentation, selita went for an authentic approach... selita: wizards and muggles alike... muggles and wizards, muggles and wizards. announcer: ...while rod's execution was a little foggy. rod: little more smoke. little more. bill: i'm not gonna be able to breathe. announcer: and when the winner was announced... trump: congratulations. the women win. announcer: ...the women handed the men their third loss in a row. trump: men, what's going on with you guys? announcer: when faced with being fired, curtis stone turned on bret. trump: curtis, should bret be brought back instead of you? curtis: bret would sign off on the creative design and tell us what it was,