i'm jim cramer and welcome to my world. >> you need to get in the game. >> first i'll go out and visit. they're nuts. they know nothing. >> mad money, you can't afford to miss it. >> i'm cramer. welcome to mad money. other people want to make funds, i'm trying to make money. >> cnbc. we see different play jurors of fear in this stock market everyday. offensive fear of getting hit by aearns or the fear of being whacked, oh, yeah.

by a terrible italian bond auction of spanish financial bankruptcy, but today with the dow soring 200 points, the s&p, nasdaq falling, we saw a different kind of fearless plight entirely. >> it was the fear of actually missing a rally, or worse betting against one. what spurt that new and strange fear? what created frenzy of buy six-straight days of decline, hideous decline. you know what did it, the source of all good capitalism. china did. the possibility of the chinese goth will take action on sunday night to extend the deacceleration in their economy. you see last night china reported that its economy improved by less than 6.7%. from our point of view, that's not recession or anything. it is well below what the communist government wants.

so our game plan starts with the expectation that we get a big chinese rate cut before monday's opening, which is why i took the unprecedented opportunity to put sunday right on the upper-left hand corner. this is perhaps, maybe we're looking for a multihundred billion stimulus plan which was the whisper which is why i put it here. the fear of such a cut is which caused professionals to buy stocks ahead of that possibility. it was the fear. nothing else happened. endless many money managers simply grown weary coming into today of owning stocks or they had become accustom to minting money by just selling them, shorting them, and then covering and buying them. when we got that weak chinese number out last night, they were breaking out the red book.

they were trying to figure out about how big the big easy is going to be. they covered them and bought the stocks they were doubling. well, then you saw what happened. that's how you gate rally like today. believe me, money managers haven't checked thard earns. they just for the moment are more afraid of missing the upside that could come from china hitting the gas pedal. how do i know this? am i making it up? when i speak to them and that's part of my job, i speak to people,ky tell you that so many of these managers were hoping to get bad earns news today from two huge banks, wells fargo and jpmorgan, buy stocks cheaply. i'm worried that china is going to cut rates, that's okay. wells will blow it, then we can buy things. those banks dashed the hopes of these bears by reporting big

numbers. portfolio managers spent the rest of the day, mostly fuming to try to keep up with the averages. what else do we have to look forward to besides faith with the chinese government, both played their part as chop tollists? first off, people will be buzzing about city groups numbers on monday, which comes after sunday. as long as the emerges markets were red hot, smoking, you have to like city group's business because only third of city's business comes from the united states. not anymore. we like the domestic strength of mortgage jpmorgan and wells fargo, we can't like city group nearly as much anymore. that's why it will not ignite a further bank rally when it reports. sorry. tuesday we're going to hear from a company that has the most value to be unlocked of nif major corporation on earth. that is johnson and johnson. long the company that i

recommended when i was a goldman sachs in the ages. we're going to be listens to the new ceo. i don't want to put too much pressure tomb too much pressure on you, alex but if he uses a word like unlock or three words like bring out value, you won't be able to buy the stock anywhere below 70 bucks. let alone 68.66. this stock has nod not had a stitch of good news in months and all it does is liv tate. wait until gore ski says unlock. this is going higher. a lot of folks are concerned about the role of currency. they won't be able to show the gains we have been expecting. when weak currencies are repatrioted in to stronger dollars, does it really matter? isn't it just paper and transferring? we'll find out. we'll find out when coca-cola

will on tuesday. if the stock gets hit on that we know we will have a rough ride for the rest of earnings period when many of the global players report. they have a similar currency situation to coca-cola. coca-cola has big commodity cost pressure. historically they have hedged it but given how petrified buyer and sellers are about the price of corn because of the drought, that's the fundament of corn syrup we will have an update of how badly the food and beverage companies could be dinged by this shortage of corn. yet tuesday is a big litmus day. what else? we are worried about the drop in demand we have been hearing about for information technology, personal computer. intel reports after the close. i think it will be a tough quarter. i wonder if the stock gets hit given the recent decline, the 3.5 yield and lempl products for the new product lines. if intel doesn't drop and

reports less than stellar quarter, that's the call to buy, buy, buy buy. all of tech. buy intel, coupled with the stock that doesn't go down on wednesday. that means you have to circle back and buy a lot of tech given up for debt. wednesday will be a dualing bank day when we get reports from bank of america, the bank struggling to d things right and u.s. bancorp, the bank that can do no wrong. i bet both will live up to these epithets. we will hear from honeywell which concerns about aerospace. boeing said fabulous things about the demand for jets but airbus is having trouble delivering them. the market was in negative mode until today. people stold everything aerospace. honeywell can explain how we are not at the peak of the cycle.

i read that five times in the last 72 hours. it is the conventional wisdom. talk about myth busting, we are expecting terrific news out of china on sunday. right there. lot of people think if we get it we will see a rush of buying in to everything from capital goods companies like caterpillar to luxury good makers like coach. you know what stock portfolio managers are using to track chinese fortunes, yum brands. that's right. because of the monster chinese kfc footprint. on wednesday we find out how kfc is doing and i think that slowing china, coupled with an increase in the price of chicken thanks to higher grain prices makes it is a good sale. i'm saying a little rate cut action you sell yum before the quarter. thursday will be, well, it will put my sleep at night recipe for

good investing to the test. i think growth is terrific at this domestic phone company. i follow this one more than any other stock other than apple. while it has gotten more expensive i bet we will be pleasantly surprised at the end of the quarter. google has a huge european business. we know from the free speech principles it ain't making up for losses in china. on friday we hear from general electric. i will tell you what i want to hear and fear. i want to hear the financial services group is giving a huge amount of money to the parent. what i don't want to hear is alternative energy, notably wind have begun to hurt earnings. we need good news out of china on sunday night about rate cuts and a possible stimulus package. we get that we can excuse a lot of old in line kwaerp quarters and earnings down. and even a couple of guide down

for the industries if the chinese don't deliver, if they mis, if they can't grab the red book, it won't matter what the other companies say because everything is going down. jamie in south carolina. >> caller: i'd like to give you a charleston, south carolina, let's get this weekend started boo-yah! >> i crush the palmetto bug in the bedroom boo-yah the other day. >> caller: nice. i'm a long-time proctor & gamble shareholder. i wonder if it is appropriate based on akman getting pa stake in the company and how much influence does a shareholder have on the board members. >> i'm not say akman doesn't matter but when we put mcdonald on the wall of shame. if the board wakes up and realizes he's not the right guy that means the stock goes

higher. you are seeing recognition -- we are seeing the same thing. the board is waking up and knowing mcdonald wasn't the right guy. mistakes happen. ask jamie. john in virginia, john? >> caller: jim, are you buying yahoo ahead of earnings they had a scandal with the hackers getting passwords and haven't pinned down the ceo. >> yahoo and cnbc have a deal which i'm part of. ross levinson which i have known -- i'm a dot-comer from the '90s. i started with street.com. i think leavenson is the real guy. i think if this stock breaks out it will break out to the up side because they make him ceo. he is young, thinks young but not that young. he has tremendous ideas and will surprise us to the up side most certainly. john in california. >> caller: jim, i'm a pfg customer and i'm outrage how my money was stolen like thousands

of others like me. do you think regulators should be held accountable and customers made whole? do you have our back? >> well, the u.s. attorneys have to have your back by putting people in jail, long jail sentences. i don't know what the regulators were doing in this, how could they miss it after mf global. how you get things going is you have show trials. if you want me to have your back, i need a prosecutor to have my front. that's going to do it. today was a good day. if you want to continue, you have to hope for -- you have to hope that the chinese take action. stick with kraimer. >> coming up, golden years, kramer is searching the states for a domestic play that can help you beat the global heat. tonight he has a speck that provides service and a smile. could it keep your portfolio healthy? and later, on target, as international tensions rise, the

need to secure our country is greater than ever. and aeroenvironment is powering the unmanned aircraft but the stock is grounded down 20% this year. kramer is finding out if it could be ready to climb again. when he talks to the company's ceo. all coming up on "mad money." don't miss a second of mad money follow jim cramer@twitter. send jim an e-mail to madmoney@cnbc.com or give us a call at 800-743-cnbc. miss something? head to madmoney.cnbc.com. so... [ gasps ]

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okey-doky we finally had a good day. a great one even. the first rally in more than a week but i'm urging you not to get carried away. every day i feel so bipolar. the sea saw between panic or euphoria.

very little middle ground. that's no way to manage money. better take a page from my good pal buddy, friend larry david in curb your enthusiasm. keep a cool head and stick to the play book that helped navigate these volatile waters. we need to invest in not trade but invest in domestic securities stocks, no international exposure ideally with consistent, defensive businesses and big dividend yields. i know this isn't the most exciting way to invest and that's a problem for many of you. more than anyone else in the business, i believe in enthusiasm is a necessary component of good investing. you take away any sort of thrill and lose your motivation to do the home work needed to manage a portfolio. you do. look the ideal person spends an hour per week per position. i know that is too ideal. once you lose interest in the game you stop checking up on

stocks as often as you should and sooner or later you are taking losses left and right because you are not doing home work. losses that could have been avoided if you kept your eye on the ball. i have a problem. i need to keep you engaged, which isn't easy given for most people there are a zillion things they can do to entertain themselves that are more enthralling than stocks. that's why i have a segment to speculation, to finding relatively unknown high risk high reward names for potential to deliver gains that can make anyone salivate. let me introduce you to a small cap spec that fits in this environment. it has a bland name. it is called health care services group. hcsg for all of you home gamers. this company doesn't do anything sexy. it provides outsourced housekeeping and linen service to health care facilities including nursing homes,

retirement staerns hospitals. health care services is still my favorite kind of speculation. it is an orphan, under the radar name that doesn't have a lot of sponsorship on wall street. only four analyst cover the stock and they are all from smaller boutique firms not the bold brokerage houses the ones you always see people on tv with. in other words, health care services is the kind of undiscovered orphan annie name that should give you juicy sgans as the company grows and the stock gains. by the way, i got this from a guyese's who's had a great record with us. brian has a great eye for undiscovered small cap orphans. more importantly health care services group is a defensive stock. it does 99% of the business in the good old usa ♪ domestic security. it is a health care. so if the economy slips in to a

recession. this should still do fine because health care is about the last thing people cut back on after food and water. best of all, it's got a juicy 3% yield. not only that but this company is raised the dividend every single quarter for the last nine years. that's 36 consecutive quarters of dividend boost. i don't know about you, but for me that's about as sexy as it gets. beyond that, though, health care services is a growth business. all over the country health care facilities are trying to cut costs by outsourcing housekeeping and food. 28% outsource food services. not so if you look at the long-term care facilities and those are the company's main customers. 15% outsource their services and 5% food services. what that tell mess is the long-term care market is under penetrated versus regular hospitals. that means health care services

group has a lot of room to grow. now, we don't want any earnings surprises and we don't have to worry about them with health dare services because it just reported after the close on tuesday. revenues rose 26% and all of the growth was organic. that makes the company fastest in its pace. expanded in 16% clip. the real growth driver is the food service business. it's still in the early stages of being rolled out. the food biz represents 26% of the sales but grew by 50% in the latest quarter. this part of the business is on fire. it's showing no signs of stopping. health care services group has 95% client retention rate. 95% of the clients keep them. they have excellent visibility in the future earnings and revenues. diversified client base, healthy balance sheet. 1.13 a share. unlike others where you have to

sweat, worry, what the federal government mietd do with medicare, medicaid reimbursement rates this has vee exposure to medicare and medicaid. how is that possible because it is an outsourcer not t a health care provider reimbursed by the feds. they sign a contract with a nursing home or long term care facility, their contracts are based on wage increases the clients grant unskilled workers not to medicare reimbursement. all of the uncertainty makes health care providers nervous which means they are likely to cut costs by outsource functions to health care services group. we have a relatively unknown stock with consistent business, great yield, great track record, what's not to like? the knock on health care services, it's expensive. it has a high multiple. sells for 26.6 times earnings and 18% long-term growth rate. it is more expensive than most

stocks i like to talk on the show. it is better than it has been in years so it will be expensive. in short i think it is worth the price, when you consider a 3% yield. you can afford to be patient. it is a point off the 52-week high. wait for the stock to get knocked down for the next random selloff we are due for in a couple of days. if you want a stock that is speculative and secure, look no further than health care services group. this is the idea spec for this current environment and i think it is a buy, buy, buy. in to any weakness at all. i want to start the questions with matt in new york. matt. >> caller: boo-yah, jim. this is matt from adirondack, new york. how are you? >> i'm doing well. how about you? >> caller: i'm doing well. i'm calling about spectrum pharmaceutical. >> yes. >> caller: it has grown 139% in the past year. i am wondering should i wait or buy for this opportunity?

>> this is a good stock. this is a good stock. i don't know if you are going to get a chance -- here's what you do. this is a very good spec. buy, buy, buy and then wait for weakness. it's not going to be because of the company but overall there will be a decline in health care. that will be your choice but it is a good stock. aaron in missouri. >> caller: my question is do you think it would be wiser to invest in lifetime fitness, town sports? >> i have always been a fan of lifetime fitness. it is not doing well lately. why? because the facilities are great and my family uses it. here's what we have to do. we have to do a compare. compare and then we will be able to do it head to head. we do those all the time here. hamburger, soda, beer war. we will do a fitness war. you know it will be like a thumb war and get to the bottom of it. the market is screaming for

domestic security. that doesn't mean it has to be boring. hcsg is looking speck and span. it is a little expensive. don't worry. the market will knock it down and grab some. after the graek breakly try to make you more money. coming up on target, as international tensions rise, the need to secure our country is greater than ever. and aerovironment is powering the unmanned aircrafts that help protect us, but its stock has been grounded, down over 20% this year. cramer's finding out if it could be ready to climb again when he talks to the company's ceo. [ male announcer ] it's simple physics...

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get help right away if you have swelling of the face or throat, or trouble breathing. tell your doctor your medical history and find an arthritis treatment for you. visit celebrex.com and ask your doctor about celebrex. for a body in motion. how do you know when a beent down stock has taken enough. take aerovironment. it is the number one supplier of small unmanned aircraft. drones, the u.s. military. we know the use of these drones has expanded dramatically the last decade. they are part of the defense budget that obama can't get enough of. when it comes to the drones used for surveillance and recon sons it is the unchallenged leader. they have 75% market share in the military market. however, with the war in iraq over and afghanistan winding

down, the same time the u.s. government is in danger of falling off of a fiscal cliff and the domestic budget is in danger of being slashed you can understand why people have been worried about the prospects which is why it is down 20% for the year and it is an electric vehicles kicker. they make charging station systems and the market hasn't taken off the way many hoped because of these fears they have tampered expectations, revenue 9% and earnings 6% growth the next six month and the company reported they knocked it out of the park. delivering 9% earnings on 71 basis and management gave good guidance for 2013 fiscal year which is what we are in. thanks to the management, it is 63% visibility. they can see where 63% of the revenue will come from. not bad. we reached the point where it is reflecting worries but not enough positive. let's talk to the chairman of

ceo aerovironment to hear more about how they are doing right now. welcome to "mad money." >> thank you. good to be back. >> all right. sir, we are -- we do a lot of coverage about washington. not that i want that to happen baze like to talk about business. but your business and budget and what you tell your compensation committee seem to hinge on an automatic process that could cut your budget when the defense department, when they put together the pentagon's budget for next year. how are you able to deal with what the projection should be given our current crazy political system? >> you are right. it is a lot of uncertainty. i don't think that anyone knows what the defense budget will be next year. our primary defense products, however, are the small, unmanned aircraft systems. they are the demand comes from boots on the ground because those are the people that use

them across the service they dramatically improve their effectiveness and they save lives. that's driven all the services in the department of defense to adopt these systems for long-term programs. it's how they train, plan, equip the force and how they fight. much like night vision goggles a couple of decades ago. they are also extraordinarily less expensive than any other alternative. in a period of uncertainty and tight budgets, i think high demand and low cost will be a benefit. >> at the same time, though, there are branches of the military that like to have big projects. that's what we read about. always hear about the giant projects that bring jobs home. is it any possibility that you will be sacrificed on the alter of the -- let's use what i call it, the industrialized military complex? >> if you look at the latest

data from the defense department, 85% of all the unmanned planes in the inventory are small, unmanned systems. if you look at the budget, about less than 3% of the uav budget goes to acquiring those. so, they are in high demand. they save lives. they are relatively inexpensive. they are easy to support politically for that reason, and they are hard to deny for that reason. so, it's still a pretty good position, i think, to be in given the headwinds and the government budget areen 2345. >> you seem to have what the army wants. good piece last week in the l.a. times. i'm looking at a piece in pakistan today. it is a missile called the switch glaid blade. which is apparently the one that will eliminate a lot of collateral damage. can you describe to our viewers what that does? >> sure. switchblade is a new innovation

that our engineers came up with after spending time with operators that had come back from iraq and afghanistan and were describing situations where they would often be pinned down by snipers, by mortar fire and were unable to respond direct limit often f their radio works, they are able to call in planes within a half hour, maybe an hour and a half, if they are lucky, an f-16 or an apache can show up and find the problem and solve it. often with very large munitions. so our guys decided they could help these soldiers, sailors, marines and airmen in these situations. this is now a backpackable airplane. it is like a uav in its capability in that it can be launched. it is separate operated off the same ground control they use for small uas or unmanned systems.

it allows them to verify it visually and designate the target. at that point, the plane becomes a direct munition. it solves the problem. it's very precise. it allows them to see everything that's going on all the way in, and therefore eliminate almost all of the mistakes that could happen causing people to be harmed that were not intended to be. >> well, that sounds almost too good to be true. what happens if the bad guys get one? >> well, the defense department has, for many decades, developed a lot of procedures to keep their important weapon systems under control. we are counting on them to continue to do that in the future. >> now, you have this other business that is electronic charging business. we have hit 100 million miles driven by electric cars. i know the government itself

wants to get in the business. they are giving away charging stations. is this becoming a possibility that you are in a business that the government doesn't want to be in business? >> well, we are spending a lot of our time and energy in meeting the needs of virtually all the customers and segments in that market right now. that ranges from automobile manufacturers to consumers to utilities to local governments and to private operations that are standing up public charging infrastructure. i think we have the broadest solution of hardware and installation and software and network software, and the most comprehensive warranty solution for each of those verticals. i think, as a result, we have probably the largest installed base of both two 40-volt chargers and the fast chargers

in the country. in many of those cases, those customers could have chosen free charging solutions that are subsidized by government programs. but i think the package that we are providing is compelling now and i do not believe that the free giveaway programs will last forever. so in the long term, i like our cards in this market, as well. >> you guys definitely build a better mouse trap in whatever business you are in. i want to thank timothy conver. thank you for coming on the sfwloe thank you, jim. >> i'm less worried about the fiscal cliff. don't like when the government gives away product but if a better mouse trap is in the marketplace it will win. it is avav mr. conver.

can he with stand your thound rouse onslaught of stocks? and later, send cramer an e-mail to madmoney@cnbc.com or tweet him@jimkramer #mad tweets. and he may answer your question. i'm going to be speaking to preet harara. >> we have a rare interview with one of the legends of private business.

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one of the legends of private business. it's time for lightning round. then the lightning round is over. are you ready? start with adam in tennessee. adam? >> caller: hi, jim. it's a nice big shoutout from tennessee. boo-yah. how are you doing? >> i'm a volunteer myself. what's going on. >> caller: looking at anr. we have chinese power demand flat. the stock has been falling a few years any upside potential? >> i can't see selling the stock at 7. i hated the stock for 65. 7 0%.

i'm not going to hit buy buy buy but i can understand owning for speculation. let's go to ira in new york. >> caller: yes, yim. >> ira. >> caller: apple, apl, i want to know whether or not you think they will beat their earnings report on july 24th and what do you think of their iphone and ipad sales? >> i don't know if they will beat this. you better hope the stock comes in. the lineup of what you have after this quarter with the new ipad, new iphone, new itv it will be a blessing for all of us if this stock were to come down. i think apple will be a fantastic stock for 2013. that's where i am starting to think of investing. it is july. i want to go to tyrone in virginia. >> caller: boo-yah. >> boo-yah. rrl how are you doing? >> real good. >> caller: i'm calling about

orasur technologies. >> i have liked it forever, why because i'm big in diagnostics. i want to own the stock. let's go to new york. >> caller: hey, jim. boo-yah! >> nice. nice. boo-yah. >> caller: i want to know about lexmark. >> even after this quarter. >> sell, sell, sell. >> it is not too late to sell. it is a terrible company. terrible company. i want to sell you a packard, too t. the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade. ♪ if i knew you were coming i would have baked a cake ♪ >> we have to talk emotions. i might as well have attacked your mothers along with a half dozen apple pies and a few

american flags thrown in for good measure. you have to check your emotions at the door. this is what i call a teachable moment. >> wow! >> got your attention? apple pie. check your emotions at the door. [ mooing ] >> bull's eye. >> and now this week's installment of "jim cramer explains twitter." >> it is perfect. ♪ hallelujah >> hashtag. >> thank you for tuning in to this week's edition of "jim cramer explains twitter." listen to me. you have to worry about what is expensive. perhaps the most fashion forward retailer that i know or at least that i like to go to, burberry. >> a favor sidewalk on the street thought this was cool. >> i'm wearing my burberry tie

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i don't have to use gas. i am probably going to the gas station about once a month. drive around town all the time doing errands and never ever have to fill up gas in the city. i very rarely put gas in my chevy volt. last time i was at a gas station was about...i would say... two months ago. the last time i went to the gas station must have been about three months ago. i go to the gas station such a small amount that i forget how to put gas in my car. ♪ that i forget how to put gas focus lolo, focust sanya let's do this i am from baltimore south carolina... bloomington, california... austin, texas... we are all here to represent the country we love this is for everyone back home

it's go time. across america, we're all committed to team usa. these are sandra's "homemade" yummy, scrumptious bars. hmm? i just wanted you to eat more fiber. chewy, oatie, gooeyness... and fraudulence. i'm in deep, babe. you certainly are. [ male announcer ] fiber one. time to catch up on some homework. first up, on tuesday linda in connecticut asked me about ligand in pharmaceuticals. lgnd. i said i'd get back to her. this is a drug developer that suffered through years of

weakness with the stock dropping from $68 ten years ago before bottoming at $10 last fall. the tide could be turning. in january last year they acquired cidex which gave them a drug formulation that's a key ingredient in onyx pharma's new multiple myeloma treatment, one that recently got a thumbs up from an fda advisory panel, turning onyx into one of the all-stars of the second quarter. ligand should see an increase in royalties from glaxosmithkline's promacta which recently received approval for hep c. the stock has had a huge run since beginning of june rising to nearly 18 and i think it would be dangerous to try to chase it up here. at this point we have to say we missed it and move on. if you own ligand you need to ring the register on this position. nobody ever got hurt taking a profit. and also celgene, that rumored -- celgene is a buy here still even though onyx's drug knocked it down. next we got a call from peter in california. accuray.

aray. he wondered if it could be the next intuitive surgical. i wanted to do more homework before opining on this highly speculative medical device name that trades in the single digits. accuray acquired tomotherapy a year ago. they offer their cyber knife systems that deliver image guided therapy for the treatment of cancer and other diseases ranging from high precision radio surgery to precision guided radiation therapy. accuray announced the acquisition is go well while managers forecast a return to profitability in less than 12 months. but accuray is not the next -- everyone's always the next intuitive surgical. i'm concerned about government reimbursement rates from competition from varian medical which is a much large year player in the same space that's starting to gain traction internationally. this stock is up 56% for the year. so for heaven's sake ring the register. okay?

i'm against greed. everyone's all excited again. believe me, you won't be excited three days from now. let's go. here's one from barbara. just mad mail with some mad tweets. let's get started first with "jim, my query is regarding diageo. i have owned it for three years and i want to know if i should now sell it. at the current price the dividend is a little over 2%. what should i replace it with?" barbara, no. diageo's terrific. and the fact is that the yield's so small now because it's had such a big run. just own diageo. it's really one of the great -- i like beam. i like diageo. these are great, great -- brown-forman. these are the three i've liked for a long time. and just because it's high doesn't mean you've got to go. i think it's a great situation, diageo and is a multiyear own. i'll let you know if i change my mind. here's another e-mail from you a home gamer who writes, "boo-yah, jim.

you are killing me. all this talk about dividend payers and not one word about waste management, wm. the garbage has to go somewhere and they're paying dividends we all want. what is the problem? say something good or bad. dave in new jersey." >> dave in new jersey, i have another show, "squawk on the street" at 9:00, and there i cover the fact that i thought that morning stanley was wrong to take waste management from a hold to a sell. i specifically said mr. steiner the ceo's doing a great job paying you 4% to wait for a turn. do not sell the stock. the stock is now above or around where it was upgraded for a sell. here's a tweet. from hartzog phillips. one to hold one long-term. lng. wrt. clne. clean energy. any thoughts? lng just got the financing, first gigantic plant, the big ship, the natural gas overseas plant. and i feel really terrific about lng. i have to say if you have to own one of the three then it's going to be chenier. that's it. more after the break.

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those of you who expect me to come out here tonight and blast the heck out of jpmorgan and ceo jamie dimon, you'll be sorely disappointed. true, dimon and his firm committed a grievous error, terrible multibillion-dollar mistake, and a winner became a loser. but neither the bank nor dimon himself have to stay losers. let's talk about the transformation with today's quarterly results well under way. first of all, i never thought a bank as high quality as jpmorgan could ever screw up as badly as it did. i didn't. and when confronted with the

facts about the screw-up i never thought someone able as jamie dimon would dismiss the situation as a tempest in a teapot, his own regrettable words. those events, the way dimon treated the naysayers will forever blot my thinking about the bank and its ceo. however, there is a playbook for redemption for jpmorgan and the ceo. put better controls in, dismiss those who screwed up and try to call back their bonuses. as of today dimon has checked off every one of these bonuses. second we have to see whether the company will be good to its word that business was strong and getting stronger which was the subtext of the chatter at the time of the admission. turns out it was even better than that with june being an exceptionally profitable month and a really terrific streak of business. third we need to hear some explanation for why someone as good as jamie dimon didn't catch this rogue trade before it blew up and cost the firm billions. or why just to minimize it when it was flagged. my biggest fears were twofold. one, did dimon not understand the awful trade? in other words, was he in over his head? or two, did dimon take his eye off the ball? today with the restatement of

the first quarter on top of the earnings for the second quarter dimon left the impression that perhaps the numbers he was looking at from the london office that generated the loss may not have been submitted in good faith. in other words, he didn't take his eye off the ball at all. and he definitely understood what was shown to him but what was shown may not have been all that honest. i actually find comfort in that explanation. you see, if a ceo is in over his heads not working hard enough, that ceo has to go, period. but if that ceo is simply getting input from a trusted lieutenant that isn't true, if the underling was dissembling to dimon, then that's actually very hard to catch and is only often spotted by the best in retrospect. and i think what we learned is that might have happened here. and the dimon statements about the 10% trade being a tempest in a teapot, based on false data that no one, not even dimon could hope to spot. is the money good? given the facts and cleanup and results the only judgment that matters now is if the stock is a buy or a sell. the stock's clearly gotten too cheap versus the fundamentals. the answer's pretty darn clear. jpmorgan, it's a buy. stick with cramer.

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