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tv   Mad Money  CNBC  April 27, 2010 11:00pm-12:00am 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 preserve some capital here. also trying a little entertainment, a little education. so call me at 1-800-743-cnbc. should you ever trust your broker again? should you ever trust goldman sachs again or any other investment bank for that matter? should you ever trust the advice of someone who might have a position that is against your interests? yes. actually, yes, i think you should. and i say that even on this horrible day for stocks where
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the dow plunged 213 points and the s&p gave up more than 2%. with some of the sell-off i believe connected to the horrific goldman sachs senate hearings themselves. and they were awful for the securities industry. they were embarrassing for goldman. they made me feel that the firm i used to work for did indeed at times shoot against their very own clients. today's hearings correctly should make you incredibly skeptical about those who try to sell you any security. particularly a complex one. and yeah the hearings made me sick. both sides. the interrogators, the respondents. senators were determined to get at the truth of what happened with a market that is difficult to understand and did so in a way that made goldman look like the worst brokerage firm on earth, even as i can tell you they were no better or worse when it came to this mortgage market. it was unfair, especially considering the case of citigroup which held on to the bonds that goldman sachs sold short. could it be heads banks lose, tails banks lose in the documents today revealed, well,
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let's say they made goldman sachs look like a two-timer and the witnesses were unable to refute that. blankfein maintained goldman did nothing wrong and i thought did a good job, better than when he was in front of the committee. goldman sachs was indeed conflicted. issuing, buying, selling, shorting merchandise all at the same time. those conflicts did make we feel we need the most stringent regulations possible. that's not a new view for me. even as i disagree with the senators that goldman was supposed to disclose its own positions or the other side of the trade, that should have been irrelevant to an institutional buyer. who should have been able to form his or her own view. it's hindsight that goldman looks so smart. had housing gone up in value they would have looked like idiots. you know what if these hearings are exactly why i decided to do mad money. i've been a salesperson at goldman sachs, very fish firm that was on trial today, i've been a client of goldman sachs, tens of millions of dollars of
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business with them. i have bought them, have sold them. i am experienced and i think i can navigate you through in a sophisticated and unbiased way. i believe the firm goldman sachs is not a evildoer but some people may have made mistakes in a zeal to sell merchandise to rich institutional clients who should have been more skeptical. they weren't doing it to widows and orphans. my views don't matter at all. what matters is that i stay true to you and to why i do this show. every night i come out mere and try to show you how to protect yourself, how to be a smarter investor, how to make yourself a better client. so you're not at the mercy of these conflicts. some would say you're not at the mercy of the chicanery we heard about today. you need that protection. every day i teach you how to it yourself. how to buy and sell stocks on your own. just stocks, not synthetics. so you won't have to rely on anyone in the business, good or bad. because if you can manage your money on your own and do it yourself, just as well as the big boys, you know i think that. if you're not dependent on
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anyone's advice you will never be swindled. maybe you'll swindle yourself but those people can't take advantage of you if you don't need your help. that's what i'm trying to do. i am not going to trash this industry. there are too many people who work hard every day to try to make you money. that includes thousands of good people at gold money sacks. i am not going to tell you there are many times, there are, when your broker or financial adviser may put the interests of the institution they work for first, a ahead of you, which is what we did hear today about goldman and very big transactions. you need to be vehicle lant. you can be ripped off and you can be played. let's cut to the chase. how do you avoid becoming one of those clients who was abused by a brokerage firm? never, ever buy something you do not understand. never buy something you don't understand. never buy anything you can't explain. never buy anything you could not in three sentences defend as part of your portfolio. how would you have protected -- how would that have protected you from what you might have heard today where it sounded
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like individuals on trading desks were trying to put themselves ahead of their clients? simple. see, if you understand what you own, if you've done the homework, done the work, if you know what you're buying, you don't need anyone's help other than to execute the trade. today, ford motor reported earnings. the quarter was magnificent. the expectations raised. the balance sheets improving. i expect ratings upgrades. could one of those witnesses today hurt you with ford when you knew what ford does, how it makes its money, what the ceo has done with this company? should we care if one of these wall street geniuses told us he liked us when he didn't? or was betting against you when he told you to buy? no, not at all. doing your homework, liking the stock, being ready, it's irrelevant. they're irrelevant. that's why i constantly tell you to do the homework and know what you own. the goldman sachs people we heard about were selling difficult to understand products in a market that sometimes they did not believe in. if you were playing in that marked, you might have relied on them and i think that some of them would have let you down.
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so what am i trying to do? because i care passionately about trying to help you make money. that's hard enough to do without having someone bet against you. what i'm trying to do is get you to rely on no one other than yourself. doesn't mean you will never lose money. on a terrible day like today -- high-qualify stocks like ford, they go down. perhaps because of problems in greece or portugal that have nothing to do with the great motor company. it doesn't necessarily mean you won't be successful. but i've got to tell you, if you own ford, it got hurt today. in part because it has gone up so much it made sense for prudent people to ring the register. it does mean if what you buy goes down, you'll be able to figure out yourself whether to cut your losses or buy more. especially if it's going down for extraneous reasons. portugal, greece. the game may seem like it's stacked against you but you can play without getting played as long as you analyze stocks yourself the way i show you how to do every night. there's no doubt the industry i used to work in is tarnished and
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goldman sachs rightly or wrongly is reviled more than any other firm on wall street, cluck the ones that failed, behr, lehman, citigroup. frankly, i don't care. you shouldn't either. we're buying stocks of companies we believe in that we think can make you money. either in the form of capital gains or dividends or hopefully both. we're selling stocks of companies that did not live up to our expectations. our goal in "mad money" is to make you and the performance of your portfolio indifferent to the people you may have seen today, whether you like them or not. not to make you indifferent to owning, buying or selling stocks. if that was the takeaway, if that was your takeaway from today's hearings, you're wrong. stocks with good dividends were the best investment going into today and they're the best investment going out. stocks of companies that are soon going to be in shape to pay a good dividend like ford are worth buying into weakness. do not let your anger cause you to lose sight of that. the best way to protect yourself is by practicing what i preach every night on the show. do the homework.
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understand what you are investing in. and why. and you will never, ever be a victim. david in texas. david? >> caller: boo-yah, professor cramer. >> i don't mind having a little tenure, i like having tenure. what's up? >> caller: mr. cramer, citigroup. i noticed decline recently. i know there's a bunch of reasons. buy, sell or hold? >> citigroup, the government chose to do it exactly the opposite of what i told them to do. they're selling 1.7 billion shares through morgan stanley, causing the stock to go down. i can't tell you when it's going to bottom. i do want to buy out the way down. financial regulation, when it's out of the way, we'll be buying citi again, i like citigroup. christian in massachusetts, christian. >> caller: boo-yah, jim, to you on the howard deal. >> all right, what's up? 125 million. now we know why we had to get rid of cliff lee. >> that's right. with regard to lessons in your
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books on inventory, i came across "low inventory angers john deere customers." at what point is deere taking too much risk by not having enough available for sale or timely delivery? >> man, it's easy to be angry at this goldman guy or that but this is the right question. the answer is we are right there. deere has to start hiring to meet demand. they are going to start losing business to the other guys. we are at that level of too low inventory, i think they're going to make that move. don in indiana. >> caller: high speed boo-yahs from the racing capital of america. >> i was going to give you a hoosier boo-yah but it's more of a racing than a basketball town right now. >> >> caller: std? >> everyone's worried. they think spain's the next to topple. allied 8 require bank, awful. the big greek banks, awful. they're extrapolating the same thing. is that the right thing to do? it's entirely possible spain is going to be under so much pressure people are going to be
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able to flee from everything in spain. if that is the case it won't matter whether it's good or bad, which is why they're headed down right now. dow down 213, s&p down 2%. it's a matter of trust. what have we really learned from the goldman hearing today? we learned the best way to protect yourself is to do your own homework, understand what you're investing in, and have faith in the companies and the stocks, not necessarily the people who are buying or selling them for you. "mad money" will be right back. coming up, natural fit? deal are being made in natural gas country. could it make you mad money? jim's going one on one with atlas energy's ceo on the "executive decision" to find out. and later, probing for profit? did one company finally have your doctor making good on the promise that this won't hurt a bit? cramer's checking in on a company making major headway on a dreaded but necessary procedure.
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the market gets annihilated. just a total d and b slash bottle treatment which we got today. you've got to tall back on the big themes that i've pushed
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independentlily. that's what you can buy on weakness. the market's throwing a sale. should you panic? i don't know, if you own some of banks, maybe. if you freak out and run awayed from mall if macy's threw a big sale? of course not. you pick up stuff you already wanted for less than you would have had to pay the day before. let's talk about one of these big picture themes that you can buy after a horrible down day. energy. the market may have pounded the oil and natural gas stocks today, yet there's another way to value stocks. not for what the market will pay for them but what other larger companies will pay for them. sometimes that's a better marked. days like today you feel that way. big oy and gas companies can't get enough exposure to the unconventional natural gas shell plays that dominate the united states energy picture. atlas energy, an independent natural gas producer with 1 trillion cubic foot of proof reserves. the chattanooga shale in tennessee, new for us. as well as being the largest player in the shale in michigan
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and the new albany shale in indiana. we haven't talked about those. earlier this month atlas sold a 40% stake in 300,000 of its 580,000 total marcellus shale acres to reliance industries. a gigantic indian energy firm, $1.7 billion. the company's bought another 43,000 acres together just last week. this is a breakthrough deal. an india company in pennsylvania, west virginia. this is one of several where a large buyer from overseas comes here to cash in on our bountiful natural gas holdings. we want to learn more about the deal with reliance and the future of this company. let's hear from edward cohen, the chairman and ceo of this winning company atlas energy. welcome to "mad money." have a seat. how you been? >> i've been great. you obviously are great. >> you know, look, we know that there could be bad hearings in washington, we know that greece is weak and portugal's weak. we know an indian company with all kinds of money came to america and bought a gigantic slug of your company. how transformational was this
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deal? >> for us enormously. i think for reliance, they say it's enormously important to them. they plan to spend up to $5 billion in the next ten years, they announced in their press conference, and we plan to help them spend it. >> all right. now, look, i've got to ask you. this when deal came out i said, all right, how does this company connect with one of the largest companies in the world based in independent why? what'd they do? do homework and decide you were the most likely to partner with? i don't know how this deal came about. >> we actually had a process. and we had virtually all the important energy companies and some financial companies looking over our product. and there were a lot of good bids. reliance was high but there are others in the same price range. but reliance has an energy and an entrepreneurial spirit that we in pennsylvania really can identify with. they are what the united states probably was 50 years ago or 75 years ago. >> i know, from pennsylvania,
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from various other avenues including his wife betsy who did some banking with, what i find most fascinate wg this, and i know governor rendell would agree, this is going to generate a lot of the jobs, isn't it. >> and high-paying jobs. we're going to add probably 1,200 jobs in the next five years. our company had a total of ten people 15 yes, there is ago. we will finish in five years with maybe 3,000 people. but is great thing about energy is the jobs are highly demanding and we pay really well. too so for pennsylvania, especially for southwestern pennsylvania, which is in the appalachians, this is great. >> talk about what it means in terms of capital structure and how many wells you can drill. there's this kind of weird dichotomy where a very small part of your company has got a huge amount of money, which means the rest of the company could be undervalued. >> i think you're right. we haven't heard anything so far but stay tuned about michigan,
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which you mentioned, for example, the possibilities there are enormous. tennessee goes well. indiana goes well. we think what's happened with the marcellus is just the beginning. there are so many shale plays in the united states and we're optimistic about them. >> let's talk about the political landscape. right now natural gas does not seem to be in the most favored situation in washington. do we need it to be favored or is it so darn cheap that it may not matter? >> well, you know, i'm naturally, as i think you are, an optimist. it's hard to believe that when the lord gave the united states an unending, it seems, supply of natural gas, which is clean, it's cheap, it's american-made, it's good for the environment, that this won't be utilized. we have advantage in the marcellus because our cost of production finding and development is so low that even if other gas is not being used
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the marcellus will. >> it's four bucks right now. how much money can you make? how low are your costs? >> our costs are below $2. >> even at these prices. i understand you're hedged too for your shareholders, locked in higher prices? >> you've really done your research. we're getting close to $8 right now. >> man, that is big. >> we're set for next year. but of course, we're bringing on so much gas. to give you an idea we're going up to 300 wells within two years. >> that's incredible. you had how many wells five years ago? >> we had a lot of wells but they didn't produce very much. >> good point. >> the amount each well will produce, we're running now on the wells that we've already done between 1 million and 10 million cubic feet a day. if you figure that in a year we do 300, and each one has a reservoir of 6 billion total, we can supply in one year probably something like 1/17 of the entire needs of united states from one small company, with the
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help of reliance. >> reliance doesn't intend so ship this back to india? they're just trying to make money in america because they think this is a great opportunity? >> they believe the logic of american natural gas will prevail. it's clean, it could be used for electrical generation, it qub used for automobiles, it can be used for many things that it's not used for now. >> but right now there's a consensus, we know this from eog, a lot of companies in oil and gas want to show they're more oil and less gas. oil is 82, natural gas is 40. you have no qualms about being a natural gas company? >> absolutely not. i think you have the problem that in the united states we have this 90-day window people want to get returns. in the long run it's hard to think that natural gas will not find its proper level. >> we've got some worries about -- from environmentalists. we just got the watershed closed off for drilling. i'm worried about the epa doing studies. how concerned are you that this whole new -- it's not really new. this whole method of drilling is
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going to get shut down by the epa or by some government entity? >> well, you said it. it's not new. we've been usie ing fracking technique for 50 years and there hasn't been to my knowledge one single environmental problem. the reason is simple. we're drilling at 7,000, 8,000 feet. the water aquifers are hundreds at feet, there are thousands of feet of impermeable distance separating where we're working from where the aquifers are. there are potential problems. >> sure. >> they're not the ones that the environmentalists seem to be concerned with. the important aspect is very simple. we have to make sure that we don't spill any chemicals on the ground. now, we've done 10,000 wells. >> right. >> over a period of time. and we've had maybe two or three difficulties. that's unacceptable. we hope to be at zero. >> in the end, though, we just saw what happens in the gulf. we know what happens with coal. there's going to be tradeoffs no
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matter what, there's going to be tradeoffs and this is probably the cleanest method. >> the industry has to spend money and take enormous care. i'm afraid we haven't always done that. for example, we closed all our fracking down for two weeks so we could do safety training. >> all right. i think it's terrific. this is a great story. it valuation makes no sense to me. if you agree natural gas will be the future of this country's energy situation, atlas energy and ed cohen, the chairman and ceo, may be a great way to play it. after the break i'll try to make you even more money. thank you, mr. cohen. coming up, probing for profits? can one company finally have your doctor making good on the promise that this won't hurt a bit? cramer's checking in on a company making major headway on a dreaded but necessary procedure on an all new edition of "off the charts." and later, can you handle the heat? cramer gets you fired up for a searing hot "lightning round."
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we don't want to do that. >> so you know my kidneys feel a lot better in this position. maybe it's just that i'm not
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doing any cass less thennics. if i do sit-ups in the morning or bend over this i'll probably fuel 100% -- ♪ moon river thank you, doc. >> i had to unr the clip because of the piece you're about to see. just because washington has got the jihad going against goldman, stock finish up today. right or wrong below goldman, right or wrong about greece, greece could be collapsing, fort gal might be collapsing. you know what? that doesn't mean we stop trying to mind money-making ideas. we get some of our best ideas on "mad money" from your calls. from your e-mails. which is why when one of you stumps me i always go back and do the homework. because you home gamers have given us too many home runs to ignore. i know i'm not going to just watch the hearings, be mesmerized, and say, nope, not today, not helping you. last thursdayly got a call from tom in the illini about givn
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imaging, an israeli diagnosic medical twice company with a revolutionary product that has nothing to do with fort gal, greece or goldman, a disposable video capsule calls a pill cam that you swallow so doctors can take a look at your gastro intestinal tract. they've got one for the esophagus, one for the small bowel, one for the colon. without having you do a horrible invasive procedure like a colonoscopy. i knew i had to go back and do the homework. swallowing a pill versus drinking five gallons of awful-tasting colon cleanse that is basically kind of like roto rooter invading your body, then going through a painful invadive, embarrassing moon river procedure that requires sedation and takes forever? wait a second. if anyone's ever had a colonoscopy, you know this is a terrible, dreaded affair. so given imaging's product i'm
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calling it a no-brainer. but just because you love the product, that doesn't mean you should buy the stock. especially when it comes to a small speculative name like gvn imaging that's already had a 24% run so far this year and is very close to its 52-week high. so let me give you the full workup, the complete off the charts examination. the investing equivalent of sticking a tube up this stock he is -- tukus -- to take a look inside. showing you how we go from a good idea to a good investment. first, let's take a look at the technicals. the pick toe graphs of collins, leader from realmoney.com, the sister of thestreet.com where i'm chairman. collins has misgivings but overall he's positive. take a look at the weekly chart. gvn had a break-out in early march of this year, okay?
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got that? which was followed by what's known as a flag pattern. here we flag the flag pattern. all right? because it looks like a flag. that's a period of consolidation before the rally continues, which is exactly what happened when given broke out for the second time. and now it's making what's known as a pennant formation. there's the pennant. it looks like a pennant, pretty simple. these flags and pennants, i know they probably sound like hocus pocus to noncharters out there. these are always considered bullish signs for collins. because they're known to be continuation patterns. pauses after a big move before the stock, once again, resumeth its journey higher. collins thinks that these two patterns indicate that this stock could go to 27. but is it going to go there in a straight line? i mean, that's a big but, right? according to the daily chart, take a look at the actually chart. this controls short-term movement. collins thinks that before we get to that $27 target, there
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could be some downside. listen up. the problems, in his view, gvn recently broke its uptrend line. the line tracing the course of its trajectory so far. that's always worrisome for technicians. you can see where it broke that. started coming back down. collins sees a pattern in the short-term. this is called a descending triangle. we've got a descenting triangle here. you can make it out. it's going like that, not what we want. doesn't sound too ominous. it means they've been posting lower highs. not higher highs. which indicates to collins there's less demand for the stock. fortunately, gvn is close to breaking that triangle pattern. when it does he sees the move back to 27. basically collins sees gvn going lower before it goes a lot higher. this has got to be, since we started this off the charts segment, maybe the time where i am simply in total agreement with what tim is saying here about reading the chart.
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totally. even though i think the company's a fabulous story with its pill cam imaging technology, represents a patient-friendly alternative to the unfriendly colonoscopy, and similar procedures. i also think, and they say this on the most recent conference call, the in next quarter may 11th is going to be weak. their explanation is it's always weak. whether or not you buy that it's a short tip-off of a disappointment. i think that's what the daily chart's telling you. this stock is going to go lower. chart's like a movie of what they're saying. while it might not end badly i think there are going to be worrisome moments for our heroes ahead of when it goes back up. heroes being the shareholders. for the quarter i think this will make a great buy because of the positive catalysts coming. the biggest is the phased rollout the gvn's second generation colon pill cam. this is going to be in europe where it already has approval this year. along with a clinical trial of a device beginning the second half of the year that hopefully will lead the fda to approve it in the united states.
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we've got to want this thing improved. in november encouraging results from a feasibility study comparing this new pill cam to colonoscopy. europe is the major opportunity. compliance rates for colon cancer screenings are low. 25% overall. as low as 10% in some countries. because patients are all moving to go through a colonoscopy. who can blame them but that is plain wrong. everybody knows above the age of 50 you've got to get one of these. i did. we've got catalysts. most recent quarter very strong too. sales up 18% year over year. earnings per share up 83%. hardly any debt. gvn's stock does seem expensive. considering the company's 24% long-term growth rate, that price seems reasonable to me. however, once again, i think you'll get a better entry point. if you wait until after gvn reports what could be a very light may 11th report. and today's 3% decline is really
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a tip-off of where i think it's going. this is a $630 million company, anything that small is speculative by definition. this is not a health care stock, this is a speculative stock. that's what category you put it in. please, absolutely do not buy this stock in the after hours. do your homework. purchase only in small increments. be patient. bottom line, you asked us about gvn, we did the full colonoscopy, even got a second opinion. the results? i agree with our technician tim collins. gvn's got a bright future, but first it's going lower. it's not a buy until after it reports on may 11th. not before. as you can see where i think it's going to go. i'm featuring it now so you've got time to do the homework and so you won't miss your chance. bill in ohio, please. >> caller: a buckeye boo-yah, jim. >> we have a buckeye boo-yah almost every day and that's probably one of the reasons why the show is so darn smart. how can i help? >> caller: you have a great show, educational and fun to watch. >> thank you. >> caller: teva, pharmaceutical
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company, i bought it back on the obama health care reform play. lately the stock has been going down. i've done my homework and still think that teva is a stock worth holding on to. what do you think? >> all right, this is one that i literally debated today with my research director stephanie link who runs -- helps me run actionalerts.com, our chartable trust. i feel strongly you are dead right. i don't want you to get disheartened. all health care stocks are going down, teva is going to be the leading generic pharmaceutical company in the world and i think all the governments that are under pressure to keep health care costs down are going to look to teva. no, i would not be a seller. yes, i would be a buyer. i'm waiting for more of it to go down so i can buy more. please do not give up on teva, it is one of the winners in the health care segment. ed in florida. >> caller: hey, jim. boo-yah, buddy. >> boo-yah, sunshine, what's
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shaking? >> caller: ft. lauderdale here. >> looking at real estate in ft. lauderdale. >> caller: beautiful, sunny, 90 degrees. beaches are hot. anyway. what i'm calling about is dndn. >> oh, you know, this is the week for them, you know that, right? >> yes, it is, coming up saturday. >> this is the week. all right, i have been -- i missed the beginning of the move but i changed my mind in the 20s and thought it was a good buy ahead of what i think is going to be approval and it's going to be the way to be able to stop a terrible form of cancer. and i do believe by the way that this prostate cancer thing does work that they have. it's at 40, it's under pressure, i think it's going to go higher. am i sticking my neck out? i believe in this company. it is a speculative play. okay? let's be sure everybody knows that. ed in new york, ed. >> caller: hey, jim. boo-yah. >> boo-yah. >> caller: thank you for all your help. you're keeping us focussed and
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motivated. >> thank you. >> caller: making mad money. >> thank you. >> caller: my question is about abbott labs, abt. bought ate month ago, reported a good quarter, since gone down. i've done some research, can't find any good reason for the pull-back. tell me what you thought. >> abbott's a 14% grower, another actionalerts.com charitable trust. why am i sticking with it instead of selling it? because this has the greatest growth of any of the major pharmaceutical companies and yields about 3.7%. i see nothing wrong with it whatsoever other than the fact that it's in an unfavored sector. when that sector comes roaring back, abbott will do it, so will teva. these are my two favorites. the pharmaceutical that i like and the best generic. moon river boo-yah to tom in illinois for asking about gvn imaging last week. there it is. i just bent over, i had a colonoscopy. i went off the charts today with gvn and i think it's a buy. but only after it reports.
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thank you, chevy. thank you, gvn. stay with cramer. coming up -- take a nonstop thrill ride as cramer goes stock after stock. all your calls taken rapid-fire on the "lightning round." and later, cramer checks his inbox on an all-new "mad mail."
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it is time, i'm for a special down 200 some odd point "lightning round" on "mad money." you saw the name of the stock, i tell you buy or sell. my staff is on the fly. play until you hear this sound, then the "lightning round" is over. are you ready? it's time for the "lightning round" on "mad money." we start with billy. >> caller: how you doing, jim? >> now that you're out of the freezer i'm pretty good, what's up? >> caller: i love your show, it's the greatest show on television. >> thank you. oh, really? hey, man, i love that. i always need that. down 200, i need encouragement
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too. how can i help? >> caller: that's all right, we don't care about the points, we're in this game, we're here to play, that's it. >> i like that attitude. i wish more shared it. go ahead. >> caller: jim, i wanted to give you a big staten island boo-yah. and the stock that i wanted to call you today about is mbi. i bought a little bit earlier in the year, right about the beginning of the new year, and i was wondering if you method maybe it's time to schnitzel. >> i think you should sha anytime zell, ring the register. it ensures municipals but ensured a lot of exot improducts. it's up very, very big. the shorts have been capitulating. i say you take advantage of that and you make some money, because bulls make money, bears make money. kevin. >> caller: boo-yah from the city of angels. >> man, the california angels. >> caller: love your show, you're doing a great job. we want to ask you about bz
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cascade in the sector. >> packaging play that hit its 52-week high. >> sell sell sell. >> i'm ringing the register. let me throw out a better one. international paper. we came on, he talked about a big dividend, he gave you one. go with quality, ip. go with whatthink will be mul - multi-year. charlie in new jersey, my home state, charlie. >> caller: boo-yah, how are you? >> not bad, thank you for asking. >> caller: exxonmobil. we had a buy recommendation coming out, came out last friday from rbc capital. at 67 you said the stock would top off at 69.5, today we hit 70 before the market went upside down. >> exxon's okay. i believe oil's going to 100. if you think oil's going to 100 you don't want exxon, you want something more levered to the price. if you think oil's going higher i would actually prefer to buy o oxy. that goes up far more when oil
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goes up than exxon. ed in illinois, please, ed. >> caller: hey, boo-yah to you, cramer. >> boo-yah to you right back. >> go blackhawks. >> yeah, why not. i like the flyers but that's okay. go ahead. >> caller: gnw, gen worth. >> i think they've had a remarkable run. i remember when the stock was down to a buck, two, three bucks. it's come back to 17. >> sell sell sell. >> we have just had a big gain, let's ring the register. lee in minnesota. lee? >> caller: hello there, big jim, a big boo-yah from the whole of the minnesota vikings super bowl champs 2011. >> well, you know, i got the -- my paper didn't say that. but that's okay, i always like clairvoyance when i see it. >> caller: well, right. >> go ahead. >> caller: monsanto. >> oh, my. >> caller: boy, this is a great turnaround candidate, and then you've got others like l.a.
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little, a technical analyst, i'm sure you're familiar with, he's saying the stock's going to 37. >> i ain't going to 37. just like the vikings aren't going to be in the super bowl, this one isn't going to be in the super bowl. sell sell sell. in the '70s and '80s, i think that you probably want ag exposure. in that case you've got outbreak today. you've got dupont. and unbelievable quarter. more than 4% yield. and it got slammed. >> sell sell sell. >> the portugal factor. this is your chance. robert in my home state of jersey, robert. >> caller: boo-yah, jim, the boss man. how you doing? >> not bad, thank you for asking, how about you? >> caller: great, great. calling from your conservative new state of new jersey. >> i'm loving the state. >> caller: what a great governor, huh? >> hey, listen, he's a good man. i thought some -- i think he's a good man. by the way i work for the other guy too so i can say a good man
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too. >> caller: feel good about him too. my question's about the after hours earning release of eng foods. always wonder what your opinion was and do you think it can maintain its high yield? >> you know, robert, you know what, i cannot shoot from the hip here. i have not done the work on the quarter. it got announced tonight. and i haven't done enough. and i have had that ceo on the show. he deserves better than me giving an off the cuff answer about the yield. we're going to do some work and come back. i can't opine until i listen to the call. that's what i teach you. i can't be two-faced about it. let's go to chance in oregon. chance? >> caller: hey, jim, greetings from portland. >> hey, man, how do you like that? what's up in portland, what's going on? >> caller: tons of rain. solar winds. swi. i bought it in anticipation of their call yesterday and it was a good call, didn't do anything afterwards, today it fell off a cliff. >> solar wind, a lot of people hear solar wind, energy, it's a
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software play. hey, wait a second. i always, when i look at solar wind, i say what's the best in the sector? and the answer is salesforce.com. that's what i like. that's at 85. just caught up 15 points. we want more of a turn-down and then we'll do some buying. all right, let's go to deborah in iowa. deborah? >> caller: hello, mr. cramer, boo-yah to youed from corn fields of iowa. >> did you know ashton kutcher has more than 1 million twitter friends? he went to university of iowa. i can't get over he has 1 million friends. i don't think he has 1 million friends. i bet he has like 100,000 friends. go ahead, i'm sorry. >> caller: thing ank you for alu do. i've learned so much from your show. thank you for giving of yourself the way you do, it's been such a blessing in my life. >> wow, thank you very much. lately i've been -- when i see this goldman thing, i used to work at goldman, i'm thinking, holy cow. this industry's maybe not the one to be from.
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at least i'm out of it and in journalism. how can i help? >> caller: amazon, i heard the stock would go down to 125 because of the inventory status. even so the earnings report was positive. yesterday it went straight up. today it went back down. >> here's my advice, deborah. this is a $140 stock. apple's a high stock. all high dollar stocks come down as people ring the register on down days like today. amazon traded down to 142 and reported that quarter. the quarter was beautiful. the guidance is what disappointed. that stock gets back to 142. i want to do a little buy, not aggressive. i'm telling me in my realmoney.com blog, buy one-quarter of your position. i think we're in for a couple of rough days. amazon, you start at 142. amazon's a good stock, do not lose heart with it. and that, ladies and gentlemen, is the end of the "lightning round."
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how about some mail. let's start with craig in orlando.
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hey, cramer, a bill big old boo-yah to you. thank you for your wisdom pertaining to the market. i've read all your books and all my disciplines have been formed from your recommendations. because of you i am back to even and have a little more for a nice sweater. i always talk about that, when you're really up a lot, do what my mom always said, get down to the design know, buy yourself a nice sweater, maybe cashmere. words can't explain how lucky we are to to have you on the year. my missing something? solution not. a charity event last week, the ceo, terrific guy. let me tell you something. here's what's going on. we are in a huge pull-back of everything health care. it has fallen apart as people get excited about the return of the strength of the economy. people are selling these stocks, doesn't matter if they're selling the good ones or some of the ones i regard as not having much growth. and that is what you're seeing. it does not pertain to selgin.
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here's one from anonymous. jim, yesterday you mentioned weatherford but didn't mention halliburton. i still own it from when you recommended it in 2008. it is slightly abefore where i bought. i feel oil will move up again. should i sell or hold? that was not good of me to not mention hal yesterday, i felt weatherford is so much similar that's what i was trying to do is come up with an analog. halliburton's quarter was terrific. they were more bullish than i've heard them in years. i am a buyer of halliburton, not a seller. again, weathered for which i own for actionalerts.com, my charitable trust, is the company that looks most like the businesses slumber j said are on fire which is why i selected that. i've always liked hall burr son. hi, jim. i bought caterpillar in february. she sell or keep it?
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i think the global economy will continue to grow and kraction a.t. is established internationally. you have answered your own question. if you feel that way, i would not sell the stock. i think c.a.t. could have a multi-year move. i think the earnings power so is great, i'll say it, i think you ain't seen nothing yet from c.a.t. stay in it. "mad money's" back after the break. stay connected to claim over madmoney.cnbc.com. gecko: uh, you wanted to see me sir? boss: come on in, i had some other things you can tell people about geico - great claims service and a 97% customer satisfaction rate.
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show people really trust us. gecko: yeah right, that makes sense. boss: trust is key when talking about geico. you gotta feel it. why don't you and i practice that with a little exercise where i fall backwards and you catch me. gecko: uh no sir, honestly... uh...i don't think...uh... boss: no, no. we can do this. gecko: oh dear. vo: geico. fifteen minutes could save you 15% or more on car insurance.
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goldman, portugal, greece, these were great reasons to take profits. i don't think the profit-taking is done yet. i would start buying if you like something. a quarter of the position only. because i do fear we're in for a couple of bad days. but i do not believe more than that. i like to say there's always a bull market somewhere and i promise to try to find it just for you right here on "mad money." i'm jim claim ramer.

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