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tv   Mad Money  CNBC  May 12, 2012 4:00am-5:00am EDT

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i'm jim cramer. and welcome to my world. you need to get in the game! firms are going to go out of business and he's nuts! they're nuts! they know nothing! i always like to say, there's a bull market somewhere -- "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, just trying to save you a little money. my job is not just to entertain you, but to educate you, so call me at 1-800-743-cnbc. s&p sank and the nasdaq edged up 0.01%. at the end of a real tough week,
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i need you to take a step back and remember that staying cautious does not mean giving in to panic and we are in total caution mode, as you know. it feels like we're being whipped around. but just beating it to a pulp. by europe, of course, day after day. 2011 style. but don't forget, when we buy stocks, we're not betting on countries or continents. we're not even betting on labor reports. we're betting on the futures of companies. individual companies with their own prospects. my job is to help you find the ones that can work, even in this difficult environment. i hear all these people coming on air now saying it can't be done. why do people stop me in the middle of the street and call in saying they're making so much money if it can't be done? with that in mind, what's the game plan for next week? >> the biggest one of the week is on friday, or we hope it could be on friday, and that's when facebook could become public. i call it fullback, because its symbol is fb. i know it's worth getting in on the facebook deal, and i said that maybe ten times, okay? and i'm going to say it another ten times, but it has to be in
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on the actual deal. you do not buy fullback in the aftermarket. if you want my complete take on the ipo, you'll have to wait until monday night football, okay? speaking of internet ipos, though, on monday, after the close, groupon reports. and i'm going to be doing groupon in connection with facebook when we talk about facebook on monday's show. groupon, let me just say, let me just call this the poster boy for what we most fear about facebook. an overheated ipo, stemming from mass money -- stemming from mass hype. and what happens? it only makes money for the flippers. the guy gets on the deal and then flip it. groupon doesn't change my view on facebook's ipo, but highlights two important things. one, buying in the aftermarket when the stock is already trading is a fool's game. and you can make money even if the worse comes to past, by selling the darned thing around the opening. it worked for groupon, which turned out to be everything the bears thought it could be, so it
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would work for facebook. facebook could make tons of money and has had a couple billion dollar revenue quarter. that's so hard. sgrpn has about half a billion in revenue per quarter and the stock's been cut in half. there's nothing proprietary about groupon. in fact, i'm getting better local deals pushed to me by amazon now, including 80% off a hot bickram class in new jersey, yoga. tuesday we've got the home despot, the tjx and jcpenney in the afternoon. now, macy's has said it's taking share from jcpenney wherever they compete. what does that say from ron johnson's strategy? the man who invented apple's retail stores, set his sights
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too high, i think, in that first conference that he gave when he took over the job. i want you to be prepared to have them taking -- to have them taking down, taking down the numbers. and what will happen when you take down the numbers of a company that reports, well, you take down the stock too. after nordstrom's said the wrong things last night in the conference call i actually liked, but no one else did, we've got to presume that saks will do the same thing. i think home depot on the other hand can finally start talking about tailwinds in housing. will anyone be listening? they should. as for dick's, it sells the hottest of goods, including under armour and nike, but the bar's been set very high. it is reminiscent of nordy's, before the $2.57 it gave up today. on wednesday we hear from a great company, but not a great stock. and that's john deere. as usual, i'm wondering how many ways deere can screw it up this time.
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back when grains were soaring, almost every quarter was accompanied by disappointing commentary. now grain's getting crushed. tragedy comedy alert. deere reports. target reports too. now, that's different. target delivered really all year, okay? and i think this is one of the cases where momentum is building and will continue. meaning that success could be back in this company's dna. a company, by the way, that i wrote off a year ago, incorrectly. after the close, we have both jack in the box and red robin gourmet. now, i haven't listened to either of these in a while, but because the burger king deal is now around the corner, a burger king ipo, it might be worth it to spend the time to listen to these. of course, as with any ipo, including burger king, i want it my way. thursday brings three of the best retailers of this particular moment, okay?
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dollar tree. you know i love dollar tree. that's where i get all my candy, okay? ross stores, where i dress for less. and gap, okay? if i'm right about the bar being set too high going into the earlier retail names from what we heard from, then if these get hit, if these get hit off of any disappointments from this day or this day, guess what, we might have some real good trades. these are the three things i'm thinking about telling you to buy if they are down on wednesday. all three are out, executing just about everyone else in this business right now. and so on thursday, we heard from the ultimate battleground stock. wow, the cloud, salesforce.com. could there be, honestly, a stock more controversial than this one? because this is a great company. in the past when sales force has run, the stock has run into the quarter, it's been a sell, sell, sell. but when it's crushed going into the quarter, it's been a buy, buy, buy. the ceo has created a rich
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enterprise. this company has the danny myers hospitality busing. which means its longer term strategies will take share from the competition, including oracle. unless sales force keeps getting hit in advance of the quarter, good bet these days. there's simply too much risk, even as i do like the company very, very much. friday we could be be dealing with the aftermath of the facebook ipo with all of its possibly ugly ramifications. it's either going to be valued too high, or it's going to cause tons of press about how we're back in a world of no discipline and stupid investing, where one set of companies without profits are highly valued and another set like the intels and microsofts are valued as they're big cyclicals with terrible balance sheets. and they're the opposite. intel and microsoft are high-yielding bargains. here's the bottom line. next week is all about the best for last.
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it's about facebook. but the enthusiasm about this ipo won't be enough to block out the pain of the global slowdown. that said, there are always opportunities on the way down, as long as you know what's worth buying into weakness. dollar tree, gap, ross stores, and if the weakness is truly vicious, salesforce.com. let's go steve in pennsylvania. steve! >> caller: baa baa baa boo-yah, jim, from king of prussia, pennsylvania. >> how you doing, steve? >> caller: i'm doing great. hey, i'm having a problem with my stock. pcln, priceline. it hit its numbers again, and they have a good double-digit forecast. i bought on a dip and i bought again today on the dip. is priceline going to come back to the real value or as europe fears, and of course are overselling in the u.s. market going to keep this stock down? >> boy, i'll tell you, king of prussia, man, i love that mall, by the way. here's the problem.
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priceline's had some, let's say conservative commentary on the conference call. and no one was set up for that. we all thought they'd be very, very bullish. so now you're going to have to mark some time. what does marked time mean? you've got to be willing to own that stock down to 625. that's where i think it could bottom. that means it could go down 50 points. if you can't handle that, then you might want to start trimming on monday. that commentary was that negative. it was -- it really did, it really was. let's go to john in kansas, please. john? >> caller: boo-yah, cramer. love the show. >> thank you. >> caller: my speculation stock is arna. i got in at $1.80. should i sell or hold for the big day in june? >> i feel like such a dope, you know, i was getting in front of mock suits, getting my coffee in the morning and a nice policeman stopped me and said, what do you think about arena. i said, that's a lottery ticket. well, that's a lottery ticket to pay it off. and i think it's not done paying off. any weakness, buy arena. this fda suddenly has got some gumption. that could be something if this thing gets approved from the
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panel that did it last week. we need more than the panel. priceline, i regarded the commentary as negative. i was like, oh, darn, they didn't raise the numbers, that's what i wanted. next week is all about facebook, okay, but to me the key is these four stocks, if they get hit before they report. "mad money" will be right back. coming up, slippery slide. crude's been crushed lately, but tonight cramer's drilling for oil plays that could help you refine your portfolio. and later, sugar high? thirsty for a spec, but worried about the risk? cramer's unveiling his strategy for one high-profile sparkling stock that could have liquid profits flowing in. plus, the manchurian candidate. he was the most admired banker in the world, but now jamie dimon's in the rough. cramer's looking for answers after jpmorgan's stunning $2 billion blunder and deciding if it's still worth owning. all coming up on "mad money."
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♪ breaking up is hard to do ♪ don't take your love >> okay, so on wednesday night, i get this call from chuck from sunshineville, florida. he want to know, what do you do with conoco phillips now that it's broken itself up. whether i prefer conoco, cop, that's the symbol, or phillips 66, the newly spun off refining business, i told him we've been working on this one but i had to come back to it later because we really wanted to nail the analysis. guys, these things take -- you can't be glib about it. it's too, too hard. you've got to really spend a lot of time. because this is the most interactive show on television, tonight i'm answering chuck's question. we're finally ready. first, i want to clear something up. frequent viewers know i've got a
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thing for companies that break themselves up in order to unlock value, unlock value for shareholders. if there's an impending breakup and it make sense, that's often a good reason to own the stock. i've recommended a number of these breakup stories with, as everybody knows, but conoco phillips, it's no longer part of the group. conoco went this way, phillips went that way. conoco officially split itself up last week, on may 1st. and that usually marks the end of the really best part of the breakup trade. take marathon, marathon oil, they did a very similar breakup boo an exploration of a production company and a refiner company, that's enp back on july of 2011. marathon gave you a terrific 30% gain if you own the stock between when the company announced the breakup in january of 2011 and when the split actually happened. but ever since then, holy cow. i mean, the spin-off? this old marathon. it is down 19%.
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and the refining business, marathon petroleum, it's off 4.5%. even as it was met with a ton of bullish from the analysts when it started trading. once the actual breakup occurs doesn't mean it's going to be done going up. but you have to accept the fact that the breakup trade is over, and then you've got to analyze the separate components on their own merits, which is why we couldn't just come out here and say, oh, i have 52. with that in mind, let's take a closer look at conoco and phillips 66 now they're standing on their own. if you want an oil name, but want yield protection, you might like the new conoco. a bountiful yield, especially when compared to treasuries. granted, the price of oil seems to be falling virtually nonstop, day after day, but the conoco dividend gets you a lot more than you get from most other oil producers we follow on the show. to me, while conoco is better from many, it's far from the best. the company is growing a at a
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snail's pace, 3 to 5%. in recent years, i've liked this one because of all the actions management has taken to unlock the value, including gargantuan asset sales that made the company more manageable and financed massive buybacks. however, it seems that conoco has sold most of its low-hanging fruit and these sales will happen at a much slower pace going forward and it could hurt the company if they sell anymore. and conoco is not cheap if you look at it on a debt to cash adjusted base. they're selling similar to chevron. and a very large premium to pure play numbers, like apache. it's also relatively pricey. it sells for eight times forward earnings, chevron sells for 7.6 times forward earnings. apache and marathon, they sell at six times earnings. my view, if you want an oil stock with dividend protection, i actually prefer chevron. it's better than shell or total or bp. those are all slow growers.
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total's looking at flat production growth. and bp's production actually in decline. it may be a little better than those, but not that much. gives you a little higher yield, some of those do. if you want an oil exploration company, what do i want you to be in? i want you to make some money. to be in eog resources. it's got top-notch north american assets, turbo charged growth in oil production. it's a growth oil. and if you want an energy name in this environment, i think you should play it safe with the high-yielding pipeline mlp that doesn't need prices to make money. i'm thing like enterprise product partners. how about a kinder morgan energy. it's come down ten points from its high. how about phillips 66, that newly spunoff psx.
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phillips gets about half its value from refining, with the rest coming from its pipeline and chemicals division. new ceo going out of his way to highlight the nonrefinery side of things. seems like it's valuable. but at the end of the day, this is a refiner, and maybe not the best one at that. it's a game with low growth and low margins and that's why i haven't liked it since the show began. in recent years, refiners are making huge money thanks to a huge increase in oil production. without enough new infrastructure to ship that oil where it's most needed, there is a bottleneck, major in cushing, oklahoma. that's the destination for numerous pipelines. conoco could buy west texas crude at low prices and sell gasoline based on the much higher price of brent crude. you often see those prices when we talk about on cnbc. that allows them to capture that big spread. last november conoco in the process of reversing that pipe. so it can send oil from cushing down to the gulf of the mexico. which means it will eliminate some problems with the refining and players like phillips 6.
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that's a huge reason not to own phillips 66. even if they hadn't sold the pipeline, it would be a huge business. it was a jaw dropper when i heard it. that's the last thing we need in this tough market. and it sells for nearly seven times earnings for just five times earnings. the highest quality is valero. just move along and get in there.
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sometimes the best decision, just move on and forget about it. stay with cramer. coming up, sugar high? been worried about the risk? cramer's unveiling his strategy for one high profile sparkling stock that could have liquid profits flowing in. and later, cramer's taking your questions on the air. so tweet him @jimcramer #madtweets and stay tuned for an all new edition of mad tweets, all coming up on "mad money."
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in this ultraturbulent market, we're always on the hunt for industries where the trends are clearly getting better, no guesswork, not getting worse, like so many other areas in the economy. and right now, the beverage business is looking real strong. in part because price competition, which has been so voracious in this group, is letting up. while demand like thirst on a desert island hasn't been slaked. we know coke and pepsi are doing very well, so is the doctor, dr. pepper. we also know that money managers
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are addicted to highest growth and those companies don't have. who has got the highest growth in the drink sector? there is no question about it, people. we're talking about the monster! monster beverage corporation. not monster worldwide, by the way, which is up big today. mnst. that's the energy drink formerly -- well, let's say, the energy artist formerly known as hanson, that just reported a spectacular quarter wednesday night, one that caused the stock to jump about 9%. so who has the best share take? again, monster! but should we buy monster? oh, boy, that's a tougher question, especially up here. to answer, you know what i've got to do, we've got to put monster through the growth stock rubric i outlined earlier this last month. i'm repeating this in order to teach you so you can do the same kind of thing at home. all right. let's go over this, the paces we put a stock through before it gets our blessing. first off, monster may have
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growth, but we have to ask, is it sustainable multi-year growth with a high level of visibility. the company gets 91% of its sales from energy drinks, the fastest growing category in the beverage market and their energy drink sales rose 29% for the quarter. that knocked my socks off. these kohl socks i got like two for three bucks. for years, energy drinks have been taking share from the soft drinks market. monster is at the forefront, right behind red bull. see, right behind red bull. and i see no reason why that should change anytime soon. second, we've got to ask ourselves, is the market big enough to support this growth? right now, energy drinks just account for 2% of the total nonalcoholic beverage market. and that leaves a lot of room for expansion. third, can monster stay competitive? the energy business basically is a two-horse race between monster with about a 30% share and red bull, which controls roughly 40%
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of the market, but you can't trade red bull. however, monster's gaining share and the company is constantly coming out with new products, like uber monster energy brew, which tough guys have right before i start the show. it's an energy drink that's like a nonalcoholic beer. it makes a mean mocktini. fourth, can monster pay a dividend or does it make sense for the company to plow its cash back? unlike the other growth stocks we looked at a month ago and were viewed earlier this week, starbucks, apple, allergen, monster is a junior stock play. it would be nuts for them to pay a dividend. fifth, can monster expand internationally, which is so crucial for all the great growth stocks we follow? this is a huge focus for this company. in the first three months of the year, about 19% of monster's growth sales were to companies outside the u.s. that number could go a lot higher in the future. monster is gaining momentum and taking market share in europe
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where they're operating profitably and doing better versus a year ago. in europe, they started sell energy drinks in hong kong and macau, and are nuts for it. earlier this week, they rolled out monster in japan, ecuador, and are planning to launch monster in chile, monster philippines, and parts of monster europe. this is the early innings of what could be a major international and yes, monstrous expansion. sixth item, is the balance sheet strong enough to support all this growth? it's got $391 million in cash, no debt. analysts want them to buy back stock, i want them to plow it into stock. this is a growth vehicle. number seven, is the stock expensive when it comes to the out years? how's it going to do in the future? monster sells for 29 times earnings after yesterday's giant rally. the books say -- the different services i look at say it has a 17% growth rate. that is a little pricey.
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then again, i could see one of the major soda companies making a bid for monster to get in on the energy drink action if the stock took a serious downward turn because of the stock market. eight, is management good enough to execute on the plan? oh, man, execution, this is the big unknown here. this is very difficult for me, because monster's management is pretty much of a, i don't know, a guess work for me. we don't know if they're as good as the other guys or if they simply been riding the wave. say from starbucks, where management was more proven, or maybe the starbucks before howard schultz came back to work and management wasn't proven. how about nine? is monster hostage to global or economic growth? no. these energy drinks are staples with a cool factor. they're practically necessities in today's over-programmed, hypercaffeinated millennium x-gen or y-gen world. can monster grow its margins or will it by overruled by raw costs? three percentage points, 28.7%. they're good to go.
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in short, the growth is terrific, but the stock isn't exactly cheap. monster is not as known a quantity as alike, or as is the case with our senior growth stocks we want you to buy in any weakness, although we would love management to come on "mad money." now, here's a new one. we also don't know about what i'm now calling cramer's additional risk factors. these energy drinks, well, let's tell the truth here. they're not exactly all that good for you. i mean, i could see taking one with some high blood pressure medication. they're not just -- people pop lipitor before they have a steak, i kid you not. they're loaded with caffeine and sugar, two that i don't want to be in. monster uses an ingredient called gaurana, not gauno, but gaurana, a berry that's packed with naturally occurring caffeine.
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and more important, fda hasn't checked off on gaurana. a couple serious health incidents here and there and you can see the government causing some real problems. that is a risk. plus, there's always a chance that red bull goes after monster on price, creating the kind of -- hmm? maybe it's better than i thought. creating the kind of vicious profit-killing competition we've seen between coke and pepsi over the years. i point all this out because it's easy to imagine how monster could hit a wall and get crushed like an empty can. make sure that people don't know that we shook them up. anyway, so what do you do when you have this combination of hypergrowth and high risk? listen, guys, it is speculative friday, after all. we've been on data by can request for options strategies. i think options are too risky for most people, with one big exception, when we can replace the common stock with options. stock replacement, a strategy i describe at length in "getting back to even," my last back for about 100 pages. you find it deep in the money call option that sometimes
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matches the common stock. one that's far out in time. you buy that call, something like the monster september 65 calls for ten bucks and that will give you the right to control of all the appreciation over 75. but you can go out further and higher if you want. you own that call. it cuts off your downside, right welcome because it's struck at a certain price, and you can also sell common stock against the call. that creates an additional hedge to the downside you can trade around. i have about 15 pages that describe how to do that. oddly, this strategy is more conservative than buying a common stock. it's the right way to go in case tun known quantity of management screws up or cramer's additional risk factors quick in. then you can profit from the downside if you're shorting the common stock against the deep in the money calls. one call from the fda, one story in the fda about the low-carb monster energy, and i don't think it's going to be as popular with the parents that buy it for their kids. or alternatively, obviously, your downside is cut off by the option itself, which in this case tops you out at 65. after that incredible quarter,
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with we know that the monsters firing on all cylinders but it's also risk. you want to speculate with deep in the money call options instead of buying the common stock. it's the one instance from options are the cautious, conservative way to go. let's go to himong in california. >> caller: boo-yah, jim, from sunny california. >> what's going on? >> caller: first of all, i want to help you for helping out individual investors on our show. >> there's a bunch of people coming on air saying individuals can't do this. i think that's equivalent to saying individuals are stupid. i'm not going there. go ahead, finish your thought. >> okay. >> caller: okay, i thought it was a pretty strong earnings, but still stagnant. so i wanted to see, is it a good stock? >> you know, it's funny, millennium media, they all reported these ecommerce solutions.
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i am betting that demandware is actually the best of the best, with the exception of, and this is the one i'm going to tell you to buy if you want to be in that segment. i want you to be in -- i want you to phone home here -- let me get my -- with exact target. why do i say phone home? because the symbol is et. let's go to john in minnesota. john? >> jim, a big boo-yah from bloomington, minnesota. >> oh, man, one of my favorite spots. we get a lot of sports guys. we follow sports here. we know you're in the sweet spot. >> caller: and they finally passed the viking bill. >> you're going to get a new stadium, that's exciting. >> caller: the vikings are staying. we're all so happy we don't have to worry about the roof falling in. they're building a nice one now. >> now all you've got to do is start winning. that's probably harder.
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>> caller: that's a little harder. >> all right. >> caller: my question is, since sara lee is splitting into two companies and paying a $3 per share dividend, special dividend, wouldn't it be wise for someone like me who has some sara lee to buy more shares? and then which spin-off company would you recommend? >> well, first of all, i totally, you know i recommend -- you've got to go on cnbc.com archives, i agree with you, sara lee is good. and we did a very complicated breakup analysis that i'm going to refer you to, but you are right to be wanting to buy. let's go to cory in colorado, cory? >> caller: hey, jim cramer, boo-yah! >> excellent boo-yah back at you. >> hey, was just calling today about hershey, hsy. i've noticed that the stock is up over 10% from the start of the year and, tell me, will it have room to grow? >> i think -- i don't like to pick off stocks that are at a 52-week high. this one is only a few pennies from it. this one in kimberly and mccormack spice are three go-to names every time holland,
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netherland, france, poland, all of those countries, every time one of those blow up, you look at mccormack, you look at hershey, and you look at kimberly. those are my three best go-to names that do international work. obviously, verizon and at&t are better. monster beverage. is it monster good? if it fills our "mad money" criteria for monster growth, but it's not cheap. understand, when things aren't cheap, it may be best used deep in the money calls. stay with cramer! coming up, the clock is ticking. call cramer at 1-800-743-cnbc to find out how to fire away at cramer on the "lightning round." can he withstand your thunderous onslaught of stocks? and later, the manchurian candidate. he was the most admired banker
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in the world. but now jamie dimon's in the rough. cramer's looking for answers after jpmorgan's stunning $2 billion blunder and deciding if it's still worth owning. all coming up on "mad money."
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it is time, it is time for the "lightning round" on cramer's "mad money." time for rapid-fire calls, tell you whether to buy, buy, or sell, sell, sell. when you hear this sound, the "lightning round" is over. are you ready, skee-daddy! it's time for the "lightning round" on cramer's "mad money." let's start with tom in massachusetts. tom. >> hey, jim, i've got a south boston boo-yah for you. >> i've got my daughter lives near you. boo-yah, right back at you. what's going on? >> longtime natural gas and i'm thinking ultrapetroleum as low-cost producer. >> they are a low-cost producer, but that doesn't do it for me. i've got to have a company that's positioning out of natural gas. we'll have to say no on ultra. let's go to larry in florida. larry? >> caller: hey, jim.
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a big florida boo-yah to you. >> sunshine boo-yah back at you. >> caller: i want to thank you for what you do every day, for us, and i would like to know what your thoughts are about dow chemical. >> i was going to do a piece this week comparing dow capital to dupont. and my charitable trust owns dupont, i think it's terrific. but dow yields 4%. i like dow chemical, even though i know it's got european weakness. let's go to bob in new york. bob! >> caller: boo-yah, cramer. bob from new york and my symbol is bgct, that would be -- you got it. >> that's howard lutnick. he came on the show and said, look, people should buy the stock and it's got a big yield. what can i tell you? it can does have a big yield and it's levered towards brokerage. even though in a particular part of brokerage, it's doing fine, people are not doing a lot of trading and that does hurt the cohort and that's what matters. let's go to sally in california. sally! >> caller: hi, jim, and a big sunny boo-yah to you from manteca, california. >> i love it there! i love it there. what's up?
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>> caller: hey, listen, can you give me some information about brocade communications. >> it's a big spec. you're hoping for that takeover there. i don't like situations where i need a takeover. let's go to stewart in california. stewart! >> caller: hi, jim. thanks for helping us. i'm getting clobbered on enerplus. buy, sell, or hold. >> i saw that today. a lot of my friends think it's a great story because it's got that great yield. there's some management turmoil there. i'll have to put that on hold. i think it's too risky to recommend. let's go to bill in california. >> caller: boo-yah, jim! >> nice. >> caller: coca-cola enterprises. >> very good company. what can i tell you? a nice, steady grower and a good company. let's go to paul in florida. paul? paul? hello?
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>> caller: hey, jim. >> hey, paul. >> caller: first of all, i just want to say thank you for what you do and i appreciate it. >> thank you. >> caller: hban? >> i think it's good, but it's a bank. nobody likes the banks. i happen to like the regional banks. i'm going to tell you the hunting bank copper, you can buy it under 6, and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> the "lightning round" is sponsors by td ameritrade. i can't even talk about the phillies with with my dad. it's too depressing. guys, you got something else to talk about it, i'll do it. >> jersey? >> can't beat the sixers, can't beat the flyers. what's up? >> jim, on this show regularly, and thank you for having me on here, and dropping my products.
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>> look at this. actual recognition that i dropped the product. >> fossil. fabulous fame by that investing genius, the sitch. >> the situation. >> aka, the oracle of seaside heights. >> he's is a sucker. ♪ he's crazy, he's wild >> you know what, you are excluded from dinner, then. >> boo-yah, mr. cramer! >> thank you, nick. what's up? >> well, the sun. >> i don't know. i'm new in this town. that's an actual line from mo in the three stooges. i quote mo. i'm quoting mo. well, that's where i've gotten to. >> ahh! >> at least i'm not quoting chemp. >> aye, aye, captain. >> this is very funny.
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america travel mug free with your hoveround delivery. [singing] hoveround takes me where i wanna go. call or log on to hoveround.com to find out where a hoveround can take you! let's do some mad mail, and some mad tweets. this one is from deb in virginia. hi, jim, i bought medtronics between 2006 and 2008. should i continue to hold or sell this one at a loss? deb, it doesn't matter where a
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stock has been. what matters is where it's going to. i think medtronics is dead money. i think there's better places to put your money and i think you should do those master limited partnership, perhaps, or a drug company, all would be better. okay, here's one from sheila in colorado. professor cramer, what do you think about the move that nrgy made to sell off their propane portion. where do you see it going without that anchor? thanks for all your incredibly hard work. sheila, i don't have to worry about it, because i like energy transfer partners that got rid of all its propane. it had a high yield, it's buying sun. that is the stock, my charitable trust buys. you can follow along and you'll realize we write endlessly about etp. that's the better player. here's one alan in minnesota writes me. hello, mr. cramer. thank you for helping us understand the impossible in this fickle stock market. jim, in retail you like ross stores and family dollar, so do i. would you please consider conn, c-o-n-n. it's been acting like a solid growth stock lately. conn's in that early stage, but
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that was before amazon. you've got three up and maybe five down. that's not a good risk/reward. i don't want to be there. let's take some tweets. we're going to kick it off with mark @n44. you recommended carrizo, what caused the big bounce today and based on falling oil prices, is it still good to be in? i said if we had a lot of natural gas, it wasn't going to work anymore. i've been featuring a couple of oil stocks and i've been very adamant that oil is not going up right here. so you can hold on to carrizo, but you have to understand, i do not like the commodity names. i'm really trying to make that point every single day for the last five days.
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here's one from @wrbva. he writes, #madtweets, time for win to go to the doghouse or have ceo on show to explain more. they came and talked about it. i've got to tell you. i was kind of in shock. i don't like to see that company do anything other than be consistent. because you don't get a lot of growth there. but we do hope for consistency. it's the yield, so far looks okay. but we know what happened to the other stocks in that cohort. stick with verizon. okay, now here's one from @anmolsc. lily, glaxosmithkline, bristol-myers and abbett, who has higher growth prospects according to you? abbott is splitting. that is the best one and next i would own bristol-myers, but i do prefer abbott, my charitable trust owns it.
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stay with "mad money." 
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we had a classic journalism 101 question brewing here with this jpmorgan trade blow up. it's the four ys and a w, who, as in who was behind this bonehead trade. what, as in what was the trade really? we have no idea. where, meaning was this sovereign debt over there? the very stuff that we thought jpmorgan wasn't exposed to? when, as in when did ceo jamie dimon learn about the dimensions of this fiasco?
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because he was yapping around telling everyone this whale story of the outside position outside his london shop was just a tempest in teapot. so why, why did he just come out now? after speaking to analysts earlier this week, as well as david gregory from "meet the press" for sunday, and admit to this, huh, now? finally, how, as in how the heck could this happen given jamie dimon's endless preaching that he's the risk controls to catch this kind of thing. when you approach this clinically as i am trying to do, it checks the intense anger i feel from having been caught owning jpmorgan for actionalertsplus.com, which is also known as my charitable trust. where on days like today, i do truly regret that i play with an open hand. by the nature of that product, i have to admit that i've been bagged and i own it. the trust owns it. i can't say it's jamie dimon's fault. i'm supposed to be more skeptical than that. the truth is, the bank had no business owning that. i thought jamie would not put on a risky position like this, or at the very least, catch it early enough.
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look, i don't want his apology. i want action, even as they may be honest. when you care to lose 2 billion smackers, someone's got to pay. i want their names. i want the equivalent of a public hang, so the next bunch of clowns who take on too much as well as the people who were supposed to catch it know there is a high price to pay for this kind of financial mess. and i want jamie dimon to give back or give back his bonus for this year. and i want the regulators to be tough over this. one of the thing that david gregory's addressed with jamie dimon, which you'll see on "meet the press" this sunday. here's a little of the exchange. >> the immediate question, the s.e.c. is looking into this, did the bank break any laws? did it violate any accounting rules or s.e.c. rules? >> so we've had audit, legal, risk, compliance, some of our best people looking into all of
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that. we know we were sloppy, we know we were stupid, we know there was bad judgment. we don't know if any of that's true yet. regulators should look at something like this. that's their job. they will come to their own conclusions. we intend to fix it, learn from it, and be a better company when it's done. >> which brings to me my ultimate point of the four ws and a "y." i believe in dimon, i think he is honest. so what does that mean? i think it means that some trades, some positions, some risky strategies can't be understood by even the best of breed. that's a huge indictment of the financial engineers and those who believe they can actually be reined in. i want to own businesses that everyone can understand. i want to own businesses where the ceo can be on top of things and peer down the organization to find out quickly what's wrong. and candidly, i've got to tell you something, i guess that means i don't want to own jpmorgan. stick with cramer.
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don't forget to watch jamie dimon on "meet the press" this sunday. remember, i do think he's honest. i think his firm is honest. my question is, can any really understand these positions? if jamie dimon can't, perhaps we have to rethink the whole notion of the financial engineering. and by the way, i think the rn

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