i'm jim cramer. welcome to my world. >> you know nothing. >> they're nuts, they're nuts! >> "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to craymerica. my job is not just to entertain you but to educate you. so call me. take a deep breath and repeat after me. panic is not a strategy! not a strategy whether in new

orleans like we are tonight, it's the wireless conference. repeat after me -- panic is not a strategy. that's all i can think about after today's action where the averages got clobbered and rebounded after the close. dow at one point down 198 points before ending down 76. s&p sliding 4.3%, nasdaq down 3.9%. i got to el you i was upsaturday all day about this decline. not because there's reason to be concerned. i'm not that blind. the french seem to be waking up to the notion they might be impotent against the germans. the failed policy of austerity will stay in place. i was trying to get my arms around everything mobile new orleans and i felt like think to get my arms around everything more or less in europe. we did have some warnings. we saw fossil, sinking 38 prgs

of its value. what is the whole sale value scotts miracle grow? big data warehouse rackspace plummeted. m mako surj call, down 36.81, a staggering amount. those shake to you the core. it doesn't upset me. what guess me down is the european news and the shortfalls produced a catastrophic all at once run to the exits, which shows me once again people will either simply don't know what they own, don't like what they own, fear what they own and are

just completely and utterly confused. at one point it was indiscriminate with everything getting set down at once. i'm not asking the people wash themselves to the mast ulysses style so they don't hear the sound of fear calling. many companies will see their earnings come down. kms companies have failed to find ways to grow when the global economy slows down. that's many companies. not all. not even most. but it didn't matter. people pan eastbound everywhere. everywhere. think about the absurdity of that for a moment. revel in it with me. what's the first this evening that happens when europe's week? the market turns on oil. crude. it has been in glut. it was sold again for the fifth straight day. >> sell, sell, sell, sell, sell. >> what do i hear about this? i want to tell you. it's so darned stupid, so nuts i

can't believe it myself. i hear oil's going done so path that it shows you that things are terribly weak, much wore than we thought. let's play this lunacy out. the same fools when they bemoan the plummeting in oil, they're also bemoaning the sharp decline in energy products. these geniuses are saying it's bad news gasoline is going down. is it possible we have o worry about lower gasoline prices like we do higher gasoline prices? is there anyone who is watching who believes we need to fear gasoline going down to $3.50 like we feared it going up to $4.50 or up even to $5 where we thought it was headed by memorial day? so what happens? what happens in this lunatic market? every retailer i follow goes down. every one. because of cheaper gasoline? how dumb can that mean. if the consumer has more money

in her pocket because she doesn't have to spend it at the pump, do we really sell macy? will the most fabulous retailer be hurt by declining gasoline? or because of disarray in the greek parliament? it happened, that's for certain. how about big users of energy? they were clubbed lib baby seals from the get-go, as if they're going to have to pay a higher place for bigger input, not lower ones. last night we had irwin simon, the ceo of haynes celestial. sleeping time. the guy was jumping up and down about how well his organic food company is doing. he got street cred that's amazing. yet it goes down at the bell. why?

because of spanish unemployment? the fact that it rebounded is all the proof you need that panic, panic is a terrible strategy! boy, the guilt by association clowns, they were immediately isn't in, too. maybe this is a sondheim market. fossil brought to fabulous fame by that investing genius, the sitch from the "jersey shore" took down the whole complex with ralph lauren -- i'm sorry, ralph, i used sitch in the same sentence as you. vf corp driving 9 points at their worst moments. i'm not saying none of these companies can be hurt to the same degree like fossil, which was crushed by europe, as they all have some degree of european exposure. what i am saying is if you really did fear something was wrong, you could have at least waited for the bounce as every one of these stocks bounced back intra day as they've done over

and over again in 2012. or if you really like one of them or were just waiting for a price break, heaven forbid you could actually buy some. follow along. ralph lauren was down 12 points, enough is enough! closed the day down 5. same thing with the collateral damage of the rackspace. they just reported stellar numbers, just a few weeks ago. they took gigantic hits before bouncing back like they were on a trampoline or something. there was a much better time to sell, people, than the opening. or how about the opportunities that are hidden in plain sight, ala the letter that you finally got a chance to buy? how about vertex, a company that got multiple upgrades and still opened down a few points before justifiablely taking off on a monster mood.

could have bought at 57, closed at 64. i'll take those. how about the vitamin shop? it rallied nine straight points in 45 minutes. you could have captured those points if you weren't worried about the radical left coalition in greece. why don't we start worrying about the red army faction. that's a good reason to sell off vitamin shop, sell off amazon. that's what people did with the first price break in that stop. got to a price that was finally was where it was at earnings report, that's what trading is all about, what good investing is all about, getting a great basis, a good entry point, a bargain. i'm not saying things are all hunky-dory. i'm sure europe will be down again tomorrow. germany is up 9% for the year,

that can't last. france is like break even. i'm not saying the margins to sale is always the right thing to do but you can't be one of those panic stricken folks who are tossing out their good stuff with the bad, sticking it to themselves! getting the low price of the day. how many times do you get the low price of the day if you traded? i bet you every single one. you're never going to make money if you always sell into the panic why the that's what virtually everyone does that i know, which is why stocks are so hated. you have to stand your ground in the face of the fear. try doing this for me. the next time we get a european inspired panic, the next time oil goes down big, why don't you try doing the exact opposite of what people have programmed you to do. why don't you try buying, not selling. because while panic is not a strategy, buying other people's panic is a great one. "mad money" will be right back from new orleans. stay with us.

coming up, mad mo-mo. don't move. cramer is about to dial it up with the who's who of mobile, all coming up on a special edition of "mad money," from international ctia wireless show in new orleans. miss out on some "mad money," get your "mad money" text alert today to get cramer right on your phone. for more info visit madmoney.cnbc.com. [ male announcer ] introducing a powerful weapon in your fight against lawn weeds. ortho weed b gon max. with a new continuous spray wand. so you can kill invading weeds down to the root. without harming your lawn. guaranteed.

ortho weed b gon max. the teacher that comes to mind for me is my high school math teacher, dr. gilmore. i mean he could teach. he was there for us, even if we needed him in college. you could call him, you had his phone number. he was just focused on making sure we were gonna be successful. he would never give up on any of us.

tonight we got a real special edition of "mad money" coming you o you from the ctia wireless convention in new

orleans. there's no better way to gaeta read on this business than talking to at&t, the largest communications company on earth. 103 million subscribe eshs right behind verizon, although unlike verizon, which only owns half of their mobile business, at&t owns the whole shebang. i like at&t. come on, i've been talking about this for the last couple years. here's your bountiful 5.5 fieyi. it was up in the midst of the down tun. fabulous balance sheet, terrific, improving gross margins and a great dividend that can easily be increased, plus no europe. we want to get a read on at&t in the broader industry, which is why we are thrilled once again to have ralph, the president of

at&t mobility here with us tonight. welcome back to "mad money." >> thanks for having me. >> when the market was all down and i looked at my screen, there were 29 stocks that were down and yours was up. >> we loved it this morning when i checked the stock and we hit a 52-week high. i appreciate your supporting us. >> look, a year ago you had just announced the attempted to acquire t-mobile. given the fabulous run in the stock, is that kind of thing done, you are don't need to acquire anything these days? >> that's behind us. we always look forward to look for any appropriate acquisitions but we have moved on, we have a great position in the marketplace and the last quarter reflected that. you saw the numbers, record smartphone sales in the first quarter ever. we grew our data business 24%,

margins grew 260 basis points and our customer turn was down, which is the lowest turn levels we've seen in the company for seven quarters. >> it's important for people at home to understand the reasons why i like this stock but can you explain it better than i can. one of the things i really like is that a lot of companies are giving up a lot to the handset makers. it seems like somehow because of your mix, because of the fact that nobody seems to disconnect because you have all these family and corporate contracts that you're able now to shift the power and that the gross margins for your company are increasing and maybe even the subsidy is beginning to level off or decrease to the handset makers? >> i love what we're seeing from handset makers themselves, that we have much more choice than we did a year ago. we now have a great apple portfolio as always but i microsoft window-0 s is the best we ever had, andrews continues to be a great part of our portfolio and people are calling

our device the best android devoice ever. we have those three big pieces of of the portfolio to give people a choice. >> away from apple iphone to an an droid could raise to 70 percentage points, to 5% a share; is that correct? >> we always value customer choice in giving customers a choice of of the handsets they want. >> in your release people get confused who are not professional analysts. you say wireless margins expand even with strong smartphone sales. can you explain that? a lot of people don't understand. >> that shows you we've done something to the structure. we had record sales, 5.5 million in the first quarter, yet we improve margins 260 basis points. >> people might think why

wouldn't margins go up? it's because those phones cost you money, right? >> correct. in a quarter you have a huge sales, we had really been working on the cost structure very, very hard so we could still deliver margin growth as well. >> do you think it's possible that the tiered strategy, which is allowing it so those of us who don't stream movies on our cell phones are going to get a better deal? because right now there's a lot of free riders. your tiered strategy makes it so those of us who aren't hogs don't have to pay as much. >> i think our tiered strategy made it so huge numbers who wouldn't have participated in smartphones will now participate. you can get a smartphone for $49 and get a data package for 20. >> you have a great quote on the

conference call which i urge everybody to go read because it was the best conference call of the major companies that i dealt with. it's one of the reasons the stock went up huge. you say people used to be scared of their cell phone. they're no longer scared. how did this happen? >> this is amazing. this really is transformational and profound issue for the industry. two years ago people were afraid of the technology we were throwing at them, stiff arming it, saying it's too complex. credit to the industry, the ecosyst ecosystem, software developers, these phones are the best phones and devices and solutions we've ever had. now customers are embracing it in record numbers. they say it helps them to live their lives better and richer. so they are absolutely embracing this technology like nothing we've ever seen. that means growth to our industry for the foreseeable future. >> last year at this time you told me the justice department would not have a problem with that deal and at the same time it was going to be fabulous, let you ended up paying $3 billion, you had to walk away, gave away

some spectrum and your market cap is up three times versus the 6 billion. how can that be? >> we thought that was the best solution at the time, it didn't happen but we moved on. the thing i love is how well the company has executed despite that. we're reasoning the business as best as it has ever reason and i'm thrilled with the prospects for the second quarter. >> well, ross de la vega, thank you. >> we're going to deliver something that's getting into home automation and security monitoring. the solutions for customers is something the industry has never seen, all ip, all digital. >> if people owned the darned stock, they'd be coming back into the stock market more. thank you to ralph de la vega.

you got to check this stock out. whenever it comes in, which it almost never does, it's a great opportunity to buy. after the break i'll try to make you even more money. [ man announcing ] what we created here.ou even mo. what we achieved here. what we learned here. and what we pioneered here. all goes here.

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so you can kill bugs inside, and keep bugs out. guaranteed. ortho home defense max. sadly, no. oh. but i did pick up your dry cleaning and had your shoes shined. well, i made you a reservation at the sushi place around the corner. well, in that case, i better get back to these invoices... which i'll do right after making your favorite pancakes. you know what? i'm going to tidy up your side of the office. i can't hear you because i'm also making you a smoothie. [ male announcer ] marriott hotels & resorts knows it's better for xerox to automate their global invoice process so they can focus on serving their customers. with xerox, you're ready for real business. since we're back at the ctia wireless show, ruminating on the future of everything mobile, it's worth taking a moment to

reflect on what's happened since last year's wireless convention. i was there. last year at&t just announced its plan to buy sprint. sprint's ceo assured us it wouldn't happen, the deal wouldn't go through. he was the only one saying that. he was turned out to be dead right. since then sprint made a deal to sell apple, the iphone. they're selling like crazy. many investors see the apple deal as a negative because sprint will have to pay apple $15.5 billion to sell the iphone. i think it's short sighted. every time they sell an iphone, they get data income. we know sprint is selling 1.5

million iphones. that's got to be other guys breaks their contract to come to sprint. 56 million people use sprint. even as dan he issy just bought 50,000 shares two days after the earnings, insider buying, very positive sign. let's check in with dan he issy, the chairman and ceo of sprint, find out more about where his company is headed. mr. he issy, welcome back to "mad money." >> good to be here. >> sprint always come out on top. you were dealt a tough hand on your predecessor. you had to write off a nextel business that had been horrendous. you've done everything right and yet controversy yesterday, the ontario teachers pension fund, one of your biggest investors, is saying your pay is out of

line. when is it going to get easy? why do you take this? >> well, as you know, i recently offered to cut my compensation. i didn't think it was right -- >> before ontario. >> before ontario. because what i didn't want is distraction. i knew some shareholders were concerned about the short-term dilutive effect of the iphone. you said it correctly. over the long term it's a great effect for the company. i was hoping to eliminate some of the distraction. >> i want to be able to understand what's good for the goose isn't necessarily good for the gander. ralph de la vega from at&t mobility talks about how you want to get the margins right. and sometimes apple asks for too much. but in your case you're willing to pay that. why is one guy more worried about what they pay apple and the other guy okay with paying apple a lot? >> i think we all have basically

the same deal with apple. from our perspective and you mentioned, it 44% of the customers we added, two times of percentage of our competitors being new customers to sprint, that's a very positive sign. very few returns and exchange, very few calls to customer care. we feel it's a good long-term decision, even though the up-front costs are quite high. >> but you also put through a price increase. is it working? >> it is. you're exactly right. our average revenue per user was the largest year over year increase in the history of the wireless industry by any company. it was a big driver of beating street consensus on earnings by 30%. ebidta. >> i speak with my friend david on the show "squawk on the street." we talk about what's going on at the company. there were reports never confirmed or deny but let's get this straight that you wanted to buy metro psc for $8 billion, a

30% premium and the board said no but we've never gotten confirmation of this. >> and you won't get it today. >> whoa. well, you got me there. how about this way? would you ever think about getting metro pcs when you can get it for $3 billion when at one time it was at $8 billion? >> nice try. >> trying my best. >> did it work out long term or shert term with at&t getting the iphone? >> short term they argue they take out a competitor but long term the industry doesn't grow as fast, you great duopoly. >> let's figure out the -- i tell people in you like it, you ought to think about buying the senior debt you have a good cash

position. you have giant amount of spectrum. ralph said to me of at&t you have three times the amount of spectrum he has purr subscriber. spectrum is like gold, like oil. you've got a lot of spectrum. isn't the spectrum worth the price of the common stock alone? >> i well, i won't get into the valuation. our own spectrum takes us to about 2014. he was also adding is clear wire spectrum we own half of clear wire. that's not really our spectrum. if you were to add sprint together with clear wire spectrum, it's a good spectrum position. >> you have a difficult transition ahead. you're talking about how as you transfer people off the nextel system, you lose subscribers and try to make it up with new subscribesers. you couldn't give any clarity about what level of people are going to drop off. why couldn't you be more certain, dan? >> well, it's going to vary

quarter by a a quarter. we said we'll get our fair share or much more than our market share with the customers that leave the nextel network. keeping that network on is very, very expensive. so now we're in the process where large companies will be moving off. they use a lot of push to talk. almost all of them by policy have an rfp process where they put it out for bid, we'll complete aggressively but it's hard to predict, not only the timing and when the customers move off but how many will win. >> that last quarter was good. is survival off the table? do we have to worry about the survival given your balance sheet and how much you have due? >> i don't believe so. but i do believe that there are some concerns because of the level of investment. look, we have to big investments, network vision and the iphone. we did both of them because they

were so important for the company as early as we possibly good. so as soon as the technology was available, the worldclass push-to-talk on a sprint platform, lte, multi-cell sites which is what network vision is all about and as soon as we could get the iphone. we wanted it as early as november and they came at the same time. that puts a cash flow strain. we're talking another $1 billion to $3 billion in vendor income. from my perspective i don't see any risk. that's why i'm buying stock. i won't say any risk but i see it as extremely low risk if we execute well and i'm planning to execute well. >> thank you very much. that's dan hesse. thank you for coming on the show.

>> tomorrow on "squawk box" -- we can talk a lot about what's going on in spain and greece and confronting the markets. recently, students from 31 countries took part in a science test. the top academic performers surprised some people. so did the country that came in 17th place.

let's raise the bar and elevate our academic standar let's do what's best for our students-by investing in our teachers. let's solve this.

here at the ctia wireless show we got a chance to witness how mobile technology is transform all sorts of industries. sometimes the transformation can be more painful than others, even though it might ultimately prove to be more rewarding. take electronic arts, one of the largest video game companies in the world, publishes some of the biggest game franchises around, it's madden nfl, battlefield mass effect, medal of honor. ea has been shifting aggressively towards mobile and social gaming. it's been a tough transition. stock has become a genuine battle ground. the quarter was solid but guidance was seen as disappointing so the stock got pounded, fell 65 cent, 4.3% today. is that justified? it's not clear to me it is. ea's digital business is growing

like a weed, up 59% year over year. smartphone revenues up 96% and they're playing along 41 different socials and free to play titles over the next four months. i'm thinking this is a misunderstood stock when it's real cheap here. still, ea is at nine times earnings when you back out the 4d of net cash on its fortress like balance sheet. but there are issues that need to be address, the guys and and about a shortfall in star wars, which rightly or wrongly irritated today. that's why we're glad to have the ceo of electronic arts here with us to talk about the company and its prospects. tough day, gout to help me. >> some days are better than others. thanks for having me back. >> first, has this industry got i don't know too hard? i think it difficult to do better than you're doing, yet people don't see to be happy.

>> well, look, i think investors are going to eventually catch up with the company. all we've done is beat our guidance and guided to 30% growth in the coming year. nothing to apologize for. i think it's good now and gets better. investors are going to see it. >> some people did feel your previous quarter did you say some things that made them get more bullish than turned out to be right. they're saying that the guidance was really the big problem here and that if they hadn't been so excited about, for instance, star wars, they might not have been so upset today. >> i think star wars is an interesting one. when we started the franchise, our plan was to break a million subscribers. our investment case of a million-two, we told the street we were at a million-three. we happened to have an earnings call right into the launch period when we hit a million-seven and we had an obligation to tell them the facts. realist it's a solid success.

i have a hard time understanding this one -- it wasn't as important to us as madden or fifa are the need for speed or the simms or top honor, it was in our top ten but it want in our top five. it's a solid, successful franchise but it not a bellwether for the company. >> fifa, medal of honor, simms. i'm hearing disney just reported and it was excellent. they've got "toy story," these different franchises. they're worth billions. these franchises that you have are worth billions but the whole company is worth less than $5 billion. there seems to be something wrong here. these are always you want to use another -- they're like tide, they're like head and shoulders for procter. how can the value be brought out? >> i hope the investors are

listening. weep just put up numbers that would suggest that we're worth, i don't know, twice as much as we're currently trading at but i understand there's anxiety because we're shifting from a company just a few years ago that was virtually 100% packaged good business and transitioning through this proposition where we essentially turned blockbuster into netflix, tower record into itunes. >> sears into amazon. >> that's exactly what we're doing. i get the pattern recognition. it usually doesn't work. but when you're doing 40% of your business on the new model and accelerating into it, i think they're going to see it. it might take a couple more quarters. >> all right. now this -- we had this fast money show that was done at the half, okay, of our day part. everyone liked the stock but they all liked it for one reason. they like it because they think someone else is going to be able to bring out the value, that someone is going to buy your company, whether it be a microsoft or a teleco.

does it take an acquisition to get this stock to where you and i know it should be? >> as the ceo of this company, my first responsibility is to deliver a great business. investors eventually wake up. think about companies like apple. they traded dead flat for three years after they introduced itunes and the ipod, traded at the $6, $7 a share. amazon got criticized for moving beyond books. what would they look like today if they were a book retailer online? it takes a while sometimes when companies are going through big change for investors to catch up with that and they naturally discount change as a negative. now we're changing with a tough business model to a great business model showing huge traction. so i think they're going to get it but it just might take a little longer. >> all right, here's one thing you got to explain to people, zinga is worth $5.7 billion, doesn't make any money. they just paid $180 million for

omg pop. make some sense of that for me! >> look, i would say this. zhenga is actually a good business. i think they'll be profitable in a way their shareholders will respect. it going to work. we're just a better company. i think we have a lot more going for us. because where they're doing smart, innovative things, we've got great intellectual property, where they're just starting to build it, we've got success on ios, and android, and social, and pc and console, packaged good and digital. we draw revenue from many more sources where most of their growth is by way of acquisition. 80% of our digital business is in our core brands. it's not an acquisitionless strategy, it's organic growth. >> and which are going to be organic growth games? you did say 2013 was going to be your year. if you look at your company one year from now, what is going to be driving the earnings?

>> what's happening right now is we've seen our brothegross prod from 49% to 63% as we've driven digital through. this quarter drn you were excited last year about simms social. a month from today a big one about a month from today is going to be all over the news we've got 41 mobile and social applications, this year most of them microtransaction based on our most powerful intellectual properties. let me put it mildly because we don't normally announce them, you mentioned a number of those big names in the intro today. i think it's a winner. >> all right, john, i got to tell you, you back out the $4 in cash, i mean, it is a little nuts frankly. that's john riccitiello. he's the ceo of electronic arts.

you got to admit it's cheap. if you own it, i'd stay with it. good talking to you. it's so slow! i'm calling dave. [ telephone rings ] [ male announcer ] in a small business, technology is all you. that's why you've got us. at the staples pc savings event, for a limited time get up to $200 off select computers. staples. that was easy. for a limited time get up to $200 off select computers. are you still sleeping? just wanted to check and make sure that we were on schedule. the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers.

after a brutal session like we had today, i like to search for stocks that were able to

defy the market's gravitational pull and rally. take the best performing stock yesterday, dow industrivertex. rising from $37 to $58! ♪ hallelujah >> before gaining another $6. that's what we usually associate with a takeover. but it isn't a takeover. you would think vertex got approved for a big drug. they didn't! and clinical trials approved, no. all they did was come out with strong interim phase two data, well, well before final approval and the stock went through the roof. it's not like it's a small cap company with a single drug.

it's a $8 billion company. it's an incredible move, seems to defy logic. even after this move, i think vertex is still worth buying. speculation and i'd like to get a pullback. you have to pounce. you need to know how vertex was able to rally yesterday. i got behind the stock a year and a half ago because of the company's hepatitis c franchise where they have one drug on the market, two more in the pipe. until yesterday vertex had done next to nothing, only up $3 since i recommended it. the company also had this kind of small cystic fibrosis franchise, a drug called kuylidaecco, 4% of cystic fibrosis patients, very specific gene mutation.

yesterday, though, it became a completely different company or at least a company with dramatically improved prospects. how could an interim data point from a single phase two study totally alter the way we look at a giant company like vertex? the new trial for a new cystic fibrosis treatment vx-809 used in combination with kulidico, the one that's already on the mark, it's big. cystic fbi brothers sis a nasty uncurab uncurable genetic condition. it can make your lungs fill one a thick, sticky mucous, makes it really hard to breathe, can lead to chronic infections and destroy your lungs. it's a terrible, terrible disease. up till now there's little to treat it. that's where vertex comes in.

a staggering 46% of the people who got the therapy experienced major improvement, that's gigantic. this hideous disease takes so many young people. they raised their price targets, morgan stanley raised them from $28 to $51. put that in the bank. citigroup, that's not going to hold. why did this come as such a surprise? because wall street was skeptical about vx-809. in earlier studies it showed no improvement in lung functioning. they either discounted numbers or had expectations that never reached the market. when they came out with information more positive than expected, it was a game changer. all of a should this went from dud to potential blockbuster.

howe big could vx-809 be? this is one of the orphan drugs we can't get enough of. there are only 30,000 people with cystic fibrosis in america, 70,000 around the world. they could treat half of them with vx-809 and kailydeco. because there's no other drug out there, a drug that could do $7 billion or $8 billion if everything goes right, it's remarkable. it will probably take a year for them to make it through phase three trials, there's no guarantee the fda will improve it but the company is including it in their earnings margins. it reminds me of gilead that took off because of its hiv drugs and never looked back.

how about genzyme? and alexion is doing $16 billion in sales. this is a riskier stock. i think it's still worth buying on the slightest pullback. even though vertex rallied 55% yesterday and 10% today, i think it's more attractive up here than it was on friday. the new drug makes this much better prospect but only on speculation. and only on a pullback. if you ever get that pullback. after the break i'll try to make you more money.

time for you to stop hating and learn to love short sellers for what they do best. they lend skepticism to the market. they warn, they give you a heads up. let's tick down the list. first fossil. there's no doubt this stock has been a rocket ship. however, the shorts have

repeatedly warned they're an accessory business, which is all faddish and would eventually run ut of team. the stock got a 37% beheading. second there's mako surgical. the bears have been wise to this one for a while. as almost a third of the float has been sold short. mako announced a huge revenue shortfall and the stock wore 36% of value. third rackspace, they've been trading positively along with all the cloud plays, all which turned out some pretty stellar earnings by herb greenberg has repeatedly warned that rockspace will be hurt on having to spend too much money on what's a commodity business. herb is no short seller, he can't trade stocks. he filters through the clutter in order to flag these warnings.

today rackspace confirmed herbies worries and the stock was hammered falling 9%. then it was said a break threw drug from dendreoon. the shorts perform valuable function. they can make you, me and all of us better investors. stick with cramer. cramer's gone mobile. all this applause cnbc's free realtime quotes. go to mm.cnbc.com. >> next on "the kudlow report," is it time for a king dollar link to gold? congressman ron paul is my exclusive guest. "the kudlow report" at the top of the hour.

ortho weed b gon max. a living, breathing intelligence teaching data how to do more for business. [ beeping ] in here, data knows what to do. because the network finds it and tailors it across all the right points, automating all the right actions, to bring all the right results. [ whirring and beeping ] it's the at&t network -- doing more with data to help business do more for customers. ♪ the teacher that comes to mind for me is my high school math teacher, dr. gilmore. i mean he could teach. he was there for us, even if we needed him in college. you could call him, you had his phone number.

he was just focused on making sure we were gonna be successful. he would never give up on any of us.

seconds away on "the kudlow report," the president reduces the economy down to a post-it note. i want to see the really big picture issue that affect this great nation's future. plus special guest ron paul tells me why he won't endorse mitt romney but why he will abolish the fed. and the market is isn't into a tail spin because of radical leftist greeks. seriously? or is there more