>> gld, gold. >> see you tomorrow. back here at 5:00 for more fast money. "fast money" with jim cramer starts right now. i'm jim cramer. 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. [ applause ] hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i just want to try to make you some money. although i have a few friends with me today. [ applause ] >> because my job is not just to entertain you, but to educate and teach you. call me at 1-800-743-cnbc. underdogs rule. revenge of the beaten down! ♪ hallelujah

>> role reversals. fronts es frontsies-backsies. the s&p edged down. nasdaq dipped. but on the strength of seller dweller, they took up the market. the dow. they are suddenly in the hunt for some third quarter plauf spots. today we saw what happens when beaten down or overlooked stocks that have been dogged, bow wows report decent numbers. they can run faster and further than anyone thought possible. exhibit a is boeing. for weeks i have been telling you they have been doing well. nobody's listening. in fact, they are listening to airbus. the european competitor. they have been telling everyone aircraft orders were weakening and the cycle was over.

didn't matter to us or anyone else. we had the ceo of honeywell dave cote here. he said the order cycle wasn't over. all that mattered were the negatives from boeing competitor airbus. today we find out the problems were with airbus, not the aerospace cycle. boeing earned 1.27 and one of the best revenue growths of any major company. they raised guidance. people thought they cut. announced it had $374 billion backlog. $13 billion in new net orders. boeing is mopping the floor with airbus and airbus is going the way of europe which means straight into oblivion. next up who will win following the dictum of bob dylan and the times achanging? how about caterpillar? this is a company with a stock

nothing short of horrendous. it was down 10% but retreated from $116 to $80. it had been given up for dead because of the global slow down. what happens if the cat chose not to show? that's what it seemed like after the magnificent quarter, a record. along with a guide up and the stock popped a buck and change. at one point it was up three dollars. cat is a glass half full company. it acknowledged weakness, but caterpillar said china -- and this is the first company i have heard say this. china could actually react positively to the stimulus that the government is injecting. the united states may be actually seeing a real turn in housing. more important is what cat didn't say, but i will say. listen, you negative nancys and gloom artists how much money we made in this awful moment. then start thinking about what happens if things get better. talk about a line of logic no one is using.

what could be behind the guide up? first we know cat does best when oil is about $90. not all the way up there. 90, where it is now. that's when major projects that need earth movers get started. in the u.s. we have an oil and gas boom, a new highway construction bill. we could get serious momentum in the second half. finally caterpillar is based out of peoria, illinois. they don't know how to do it. let me be a booster. cat is the best of breed company with the finest earth movers and engines in the world. when there are orders to be had cat gets more than its fair share. why? they make the best machines. how about broad com, maker of communications chip. down from 39 to 30 until the downward pressure ended at last today courtesy of a huge quarter last night and a terrific guide-up. you heard me. something we haven't had from any other major semiconductor company i follow but altera said

interesting things. we'll hear from broadcom later in the show. they have been down so long any positive news could get it going and that happened today. stock rallied more than $2.21. closed at $32.90. hey, how about this one. pepsi. the bottom in pepsi stock, i felt lonely being a huge booster of the brilliant ceo. clown after clown said the snacks and beverage companies should be broken up. i'm a break-up guy. what goes better with doritos than soda? the unit they have makes more sense apart than the whole. when the company delivered excellent growth and sales in europe the stock ordered 1.51. how about panera bread? thanks to fears of commodity costs and worries that an economic slow down could be

hurting sales like we saw from chipotle. no slow down. the chairman and co-ceo told me today on the morning show kwo "squawk on the street" no pressure. now to 153.36. similarly after the close, whole foods which had been hammered relentlessly on worries about chipotle popped. the internet content delivery company akamai more than five points off on a fantastic quarter. i didn't see it coming. today we saw what happened to those that were first. they were hding up while so many faltered. if they reported anything out of the ordinary they had zero immunity. apple had no immunity giving up 26 points on earn es. noel room for error, as i will explain later. or the formerly hot buffalo wild wings up 17% going into the session. we need to wait until we hear from the ceo sally smith later

tonight about a possible reversal of fortune. the stock got whacked 8.5 points to go out at 70. it reported a disappointing number and guided down for the future. we know if some aerospace concern says negative things and europe gets ugly, boeing will give up gains. a slowing number in china, people sell caterpillar. the bottom line is this. companies which had been unfairly whacked down this year finally got their day in the sun. it was a revenge of the nerds session. it turns out as mark twain said, the reports of the deaths of boeing, caterpillar, broadcom, pepsico, panera, whole foods -- they were indeed greatly exaggerated. let's take a question. >> a big biting phils back to you from huntington valley, p-a! [ applause ]

>> that could be my long-time friend steve-arino. thanks, steve. >> could a change in washington in november end splitting up the big banks trump the europe debacle and move the markets up? >> i don't think splitting up the big banks would do anything. the banks we like, steve, are the regionals. the other guy is not that consequential. yes, if we got anything but stalemate in washington, any sort of compromise, i have to tell you, we'll go to new highs so fast your head will spin which is a reason i don't want people to sell everything. stranger things have happened than politicians getting together to do the right thing but it seems like a long shot. thank you, steve. yes, sir? >> hey there, jim. a big back to you to you. question, molly corp. spiralled out of control. is it going to rebound? >> that's a rare earth company and there is not much rare

earth. the stock remains a sell. it was all hyped in the short squeeze. we want nothing to do with it. it's not the kind of stock i recommend on the show. as stock stage tom petty taught us, even losers get lucky sometimes. the stocks that were unfairly beaten down, pepsi, boeing, cat, broadcom, rose like a phoenix and many aren't done going higher. "mad money" will be right back. [ applause ] >> announcer: coming up, chicken little? buffalo wild wings was skinned, battered and deep fried by investors today after playing chicken with commodity costs. was the drastic drop justified or is it time to chow down at a deep discount? don't miss cramer's exclusive with the ceo. and later, telco takedown. it's ma bell versus big red. and cramer's picking up the phone to find out which stock could ring up the most profits.

which one will answer the call, and which will get the dial tone? plus, processing profits. chip maker broadcom surprised the street sending shares higher after raising guidance. should it be at the core of your portfolio? cramer's earnings exclusive with the company's ceo is just ahead. all coming up on "mad money." >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. [ male announcer ] drive a car filled with as much advanced technology

as the world around it. with the available lexus enform app suite, you can use opentable to make restaurant reservations. during the golden opportunity sales event, get great values on some of our newest models. thisthe pursuit of perfection. [ male announcer ] it's a golden opportunity...

to experience the ultimate expression of power -- control. ♪ during the golden opportunity sales event, get great values on some of our newest models. this is the pit of perfection.

let's get one thing straight. this market discriminates. it doesn't believe in equal justice for all and the punishment doesn't mitt fifth the crime. it fit it is offender. when a fast-growing momentum name stumbles slightly you better believe it will be

hammered mercilessly. that's what we saw today with bwld, 835 restaurants where you can chow down on delicious chicken wings, knock back some beers and watch your favorite baseball teams slug it out but soon they will show case the olympics. as much as i like the concept and i also like the wings and brewskis, the stock took a hit today falling 10.7% after a disappointing quarter. the revenues were in line. pretty fabulous but earnings came in six cents shy of the estimates courtesy of higher chicken wing prices. you know, because of the drought driving up the price of the feed which drove up the price of chicken wings. same store sales up 5.3%. 5.4% in franchises. shy of expectations. they did better than the casual dining category. management had to cut the full year earnings for more than 20% growth down to 15 to 20%.

going into this morning the stock was up 17% year to date. after the report buffalo wild wings gave up most of the gains for the year. they are still opening new locations includinging international. raising prices to pass on the wing costs and after today the stock is at 18.5 times next year's earnings estimates. have they been punished enough? could it be a bargain now that the expectations and share price are down? sally smith, ceo of buffalo wild wings, will give us an idea. welcome back to "mad money.." >> hi, jim. thanks for having me. it's great to be here. >> right down to business. chicken wing prices go up, they go down. they go up, they go down. isn't it possible we are at the worst, most difficult moment inflection when 100% increase because of wings and the size of chickens that this might be the peak and next quarter we may be thinking, geez, that was an unbelievable spike and it's over. >> well, i would love that.

we would all love that. it's interesting, 2011 we saw some of the lowest wing prices we had seen since becoming a public company. 2012, just the opposite. the highest wing prices i have ever seen and coupled with bigger chickens. so a smaller yield on the chicken wings. >> if that's the case, maybe both extremes are wrong. uh i'm trying to figure out what the impact would be of, say, a 50% retracement which is what you would expect in commodities. unlike most others that i talk to today who sold the stock, i don't believe this is a permanent scenario that you have run into. >> i don't think it's permanent either. i don't know that it's going to ease up in the next three to six months. that's why we did give guidance in the 15 a to 20% range. our goal internally is 20%. but we have seen fluctuations like this. then they usually normalize for a couple of years. you know, if we can get

commodity and grain moderation, i think you will see wings in 2013 and 2014 come back in line in the norle mall ranges. we shoot for a cost of sales between 29 and 30%. certainly this year we are beyond that and last year we were significantly below. >> could there be anything else at work here? perhaps people like chipotle said, people aren't dining out as much. that the negativity in the country has gotten to people so they are staying home more. >> you know, we haven't seen that. what drives our sales as you know are sporting events, other event that is friends and family want to come in to buffalo wild wings for. we are very affordable, even with the price increase we took in july and the coming price increase in september, still a great value. and certainly our same store sales in the first four weeks of

july don't portray any drop-off in traffic. >> does that mean the numbers are consistent with the 5.3%? i i have to tell you, my colleague herb greenberg today on "street signs" said he was surprised you were saying things were strong when he sees the worst growth in five quarters. >> you know, it's interesting in the first four weeks of july for company stores are up 6.8% and 7.3 for franchised. we have had a focus on operations providing the great experience. i think that's translated into continued traffic. plus, we are still a really good value. you can come in and get wings or a burger with your friends and family and still have money in your pocket. >> panera is up 11 dollars with the exact same number for july.

there was another fellow on yesterday interviewed by brian sullivan. his name is bob darington. he said it's great that you are listing your calories but said it will hurt the stock when people see how many calories and people will order fewer wings. is that true? >> i don't know that it's true. i think bob is a great analyst. when we went to menu print we believed that the regulations were coming and in between menu prints rather than spend the money on a new menu print to comply we decided to put the calorie count on. now we know it's probably not going to be required for the next 12 to 18 months, so we may rethink that. i think that it's protein and there's still room in the diet for calories from wings. we have a lot of great lower fat items on the menu as well.

i'm not sure people come to us necessarily for low calorie things. >> that's what i was talking about, why we go there. a bunch of my friends listen to the show. they were saying, when you go to buffalo wild wings you go for a good time. i'm not looking at the calorie krount count. >> right. exactly. >> those are coming down -- the calorie numbers will come down? we won't see those next month when we go? >> well, we're making the decision in the next week or so. since it's going to be so far off before we get the regulations, we already have calorie counts on in california and new york. we have been required there for a while. we're familiar with it. we didn't see any drop-off in traffic or switch out of wings in those states. >> one last question. you're raising prices. my understanding for most of the companies i deal with, if they didn't get a break in raw costs but the pricing stuck we get an expansion in gross margins, the opposite of what happened. i presume if you can take some

price and it doesn't hurt the same store sales count and wings come down we'll have the same conversation three or six months from now and it will go like, yes, the price increase stuck and the raw costs came down and we are making more money than ever. >> we saw it in 2011. i think we could have the same conversation. >> i'm leaving it there. sally smith, president and ceo of buffalo wild wings. i like the july numbers. thank you so much for coming on "mad money." >> as usual, jim, i enjoyed it. >> thank you. guys, the july numbers are new. that's news. that's the same number that got panera up 12 and people saw this one down 8. sally smith, president and ceo of buffalo wild wings, proven money maker for "mad money." stay with cramer. >> announcer: coming up, telco takedown. it's ma bell versus big red. and cramer is picking up the phone to find out which stock could ring up the most profits. which one will answer the call and which will get the dial tone next.

and later, processing profits. chip maker broad cocom surprise the street sending shares higher after raising guidance. should it be at the core of your portfolio? the exclusive with the cceo is ahead. all coming up on "mad money." this is $100,000. we asked total strangers to watch it for us.

thank you so much, i appreciate it, i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money ? if your bank takes more money than a stranger, you need an ally. ally bank. no nonsense. just people sense.

♪ i just called to say i love you ♪ [ applause ] >> don't let today's decent action fool you. right now we are caught in a vicious market. a brutal war of stock markets around the globe. in that war the best defenses are high dividends from large quality stocks. while we are thrilled by the temporary selling respite we need to fall back on what we know will work. out's worked through this entire period. secure defensive stocks with big juicy dividends. when it comes to companies with enormous yields it doesn't get much better than the phone companies. verizon and at&t. they are practically recession resistant utilities. though both have run this year they pay monster dividends that give you big yields. if you are running a diversified portfolio you can't own both.

you have to pick just one. which is the best buy here -- verizon or at&t? that's the question i want to answer tonight. in part so you know which to own. but i want you to do these compares at home even as this one is more complicated than we thought it would be when we started doing the exercise itself. you might think, okay, both phone companies. both reported good quarters although the stock sold off on the uh news because they had run up into the earnings report. shouldn't this be an apples to apples comparison? it's easy as pie. nope. sure there are plenty of areas where the companies are similar. but believe it or not there are also a lot of differences. for example, verizon only owns 55% of its wireless business while at&t owns the whole thing. plus, each company has things that are not the same. verizon has been buying up data centers. at&t has its hands on the iphone

first. verizon has cheap spectrum worth billions. these are things that are more like comparing -- apples to oranges. so we have a puzzle. it only takes a little creativity to figure it out. if we want to know which is better -- at&t or verizon -- we have to chop up the companies into little pieces. then we compare the apple pieces to the orange pieces. [ laughter ] ha! then try to assess the apples to oranges comparisons left over to give ourselves a fruit salad of comparisons. then we do a taste test to see which is a better buy. first let's look at the apples to apples bits. for starter there is the wireless business. both companies reported strong wireless results. whose were bet snr across the industry, churn is on the decline. that's a key metric. the percentage of subscribers

who leave during the quarter. for normal wireless subscribers verizon came in at nus .84% while at&t's churn was .97%. higher. with low churn comes fewer new subscribers so another and verizon saw the gross subscriber additions decline for the quarter. that could change when the iphone 5 a comes out. the really stand-out part of the wireless business for both was the margins. another's wireless margin was 48%. verizon was 49%. apple to oranges. they calculate them differently. on an apples to apples business they were roughly equivalent. that's good. at the same time both companies are looking to reduce subsidies for phones. they pay the makers of the devices. that could be a boon for business which we have to hope for. new additions cost real money which is why when we saw the gross ad declines we were thrilled. sounds counterintuitive but because of expensive phone

subsidies for new customers it costs to sign up new people. it's gravy to re-sign the old ones. when it comes to wireless, we have a tie. here it goes to at&t. at&t owns 100% of the wireless business while verizon owns just 55%. the other 45% belongs to vo vodafone. it's more like one apple versus half an apple. that's easy. at&t is the whole apple. they win. confusing? what can you do? doing my best. the dividend yield is apples to apples. that's straight up. at&t is almost # 5%. verizon 4.7%. that's going to at&t. valuation is apples to apples, too. at&t is 13.5 times next year's earnings. verizon is 15.6 times next year. sounds like verizon is more expensive but factor in verizon's higher growth rate. if you do the valuations are roughly the same on a p.e.g. ratio basis, so it's a time.

what about the wire line businesses? verizon fios, at&t's uverse. call it oranges to oranges. verizon's wireline disappointed while at&t's reported decent trends. verizon noted the pace of new customer acquisitions could slow while uverse has been adding new net subscribers versus 120,000 for verizon's fios which is disappointing. at&t called out new consumer ads as a huge positive on the terrific conference call and at&t has it easier. verizon has to face off against real tough competitors. in short at&t has better oranges, too. how about the apples to oranges stuff that doesn't add up? what do we do? verizon is adding up spectrum to support the network. advantage verizon. then there is the data center business. verizon has been trying to make a lot of money but it hasn't happened yet.

at&t on the other hand, is ahead on building out the own data centers internally giving them an edge until data center is a needle mover for verizon. that isn't happening yet. finally, the apple factor itself. this is very much apples and oranges. at&t had years of iphone exclusivity resulting in smarter penetration. 62% versus 50% for verizon. that's huge. smart phone subscribers pay a lot more for the data plans every month than dumb phone users who don't need no stinking data. when you add up the fruit is a a lad of comparisons at&t is the one to buy, hands down. bottom line. both verizon and at&t are terrific stocks for this environment. once you slice and dice the companies so you can compare them apples to apples and oranges to oranges and all the kiwi and pineapple bit that is don't match it's clear at&t is the superior company with a

higher yield and cheaper stock. to me, no contest until verizon stock comes down in price versus at&t. then we start making fruit salad again. let's take a question. sir? >> jim, i have a b-b-b-boo-yah coming at you. >> i like a stuttering boo-yah. what's up? >> from george washington. facebook's numbers are coming out tomorrow. >> right. >> what are your thoughts on it being able to compete with google's advertisement? >> google is on fire. that was a beautiful quarter. they are moving aggressively in mobile in a terrific uh way. i don't know if facebook can do that. we had zynga's quarter after the bell. i was telling david faber that it's still too early to buy. zynga, if extrapolated to facebook and they are doing that, facebook may not be so hot. i don't like the stock here. another question. >> hi, jim. carl from new york. >> how are you? >> good. i have stock in activision. is that worth playing? >> no. that's a flat line stock in a

flat line business without growth. i need a special situation like apple or western e digital where the growth goes from bad to good or a consistent dividend. you have neither when it comes to that stock. sorry. can't like everything. in this game of telephone at&t could ring in the profits for you. listen, it's not that i don't like verizon, they are both good. right now on an apples to apples and apples to orange basis at&t is the better stock. stay with cramer. >> announcer: coming up, can you handle the heat? cramer gets you fired up for a searing hot lightning round. and later, processing profits. chip maker broadcomm surprised the street sending shares higher after raising guidance. should it be a at the core of your portfolio? cramer's earnings exclusive with the company's ceo is just ahead. all coming up on "mad money." 

>> announcer: lightning round is sponsored by td ameritrade. [ bell ringing ] [ applause ] >> it is time. it is time for the lightning round. cramer's "mad money." i take your calls rapid fire.

you say the name of the stock. i don't know the calls or the name of the stock ahead of time. my staff prepares the reply. when you hear this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? time for the lightning round on cramer's "mad money." what you got? >> hey, cramer. go yanks. i was wondering if you would tell me about first solar. >> what i think about the yankees is what i think about first solar. [ sell, sell, sell ] >> don't come into my house and talk first solar. >> jim, this is kaitlyn from michigan, go blue. i wonder what you think about nike in the wake of the scandal. >> that was a tough day for them for sure. nike is a stock my trust ounce. we have the olympics coming up. there are many reasons why nike is good to go. uh'm a buyer. yes, sir? >> boo-yah, mr. cramer. andrew from new york. sherwin-williams. >> i was discussing with stephanie link who was on maria's show before this that

maybe the housing market is so, so strong that we should go back to sherwin-williams down two bucks today. i like it. i believe it's had a beautiful run but you can go still higher. yes, sir? >> hello, michael from new york. thank you for everything you do. fnv, franklin nevada corp. >> you know, here's what i will do. i do not know what the investment part of the royalties is and how much they are nat gas versus oil. if there is too much nat gas it doesn't do well. i cannot opine on that because i'll figure out the wrong nat gas ratio and be wrong. i'll come back on it. thank you so much. yes? >> hi, jim. alexis from georgia. go dogs. time warner. >> one of the most undervalued stock there is. i think it's a housing play. people subscribe to hbo when they buy a new home.

time warner should be dramatically higher than it is at 38. jeff is a fabulous ceo. >> boo-yah. i want to give a shout out to george washington university. >> i'm pro that. >> i want to know about cno financial group. >> okay. man, you guys are stumping me today. [ laughter ] >> you know, this is an insurance company. i don't like the insurers other than aig. i have to tell you, i have been so strict in saying no to these that i have been right so far. i've got to -- i have to say this one's not for me. i like the little dollar stocks, people like that. not for me. >> robert from new jersey. let's go mets. i was wondering what you think about lionsgate. >> i thought by this point it would be back. this is a perfect example of what's the matter with the stock market. i loved the hunger games trilogy, they're terrific. but the stock had no room for

disappointment. if you notice it is sneaking back. i will reiterate that it represents a terrific value here. [ buy, buy, buy ] yes? >> alma from new jersey. i want to know about citigroup. >> you don't want to root against one of my teams. thank you. citi is inexpensive but so what? the international banks, nobody cares. my charitable trust owns jpmorgan. i saw jamie dimon buying the stock. citigroup, the time is not yet here. it's got to build capital, give it back, get citi holdings down and only then will i think it is right to buy? yes, sir. >> boo-yah, mike from new jersey, jim. >> how are you? >> how do we process the small increase that caterpillar got i today with the really good earnings report? >> i was struck myself. when that stock hit 84 bucks it was like a wall. it hit a retaining wall. i think that's wrong. i think people are worried that

tomorrow will be a bad europe day. i think caterpillar proved the stock deserves the benefit of the doubt. i would give it a ten multiple. the stock goes to 90. that's where you can continue to buy it up to. one more? no. that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] [ cheers and applause ] >> announcer: the lightning round is sponsored by td ameritrade. take the privileged investing tools of wall street and make them simple, intuitive, and available to all. distill all that data. make information instinctual, visual. introducing trade architect, td ameritrade's empowering web-based trading platform. take control of your portfolio today. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account.

this is new york state. we built the first railway, the first trade route to the west, the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world. the new new york works for business. find out how it can work for yours at thenewny.com.

going into earnings season, so many tech stocks. so many. especially the semiconductor makers have been hammered so hard. [ sell, sell, sell ] that there was nowhere to go but up. even if the results weren't special. last week intel reported a shortle fall. cut the estimates. stock bounced anyway. today we got something better. a semiconductor company that delivered stellar numbers. i'm talking about broadcom, brcm. the maker of communications chips for cell phones including the iphone. modems, set top boxes, wireless base stations and other networking devices. they are all about connectivity,

especially mobile and wireless. that along with their topnotch technology is why they knocked it out of the park with a five cent earnings beat off a 57 cent basis. it posted record revenues. up 7.9% from the previous quarter. and broadcom forecasted it would be up. expectations were low but they blew them out of the water at a time most had fallen short and apple was down badly. why is broadcom different. some is because the end markets are growing faster. some because they are keeping market share and some of it is pure excellent execution. don't take it from me. talk to scott mcgregor, president and ceo of broadcom to find out more about the terrific quarter. welcome back to "mad money." >> hey, thanks to be on. >> first, we have had so much

gloom and doom in the space. i was heartened that you used the word "significantly" when you said mobile and wireless is expected to be up sig nantly driven by higher market share gains. go through which products are going through so you will have significant improvement? >> our connectivity products are in most smart phones you can buy. that breadth in the market gives us an opportunity. smartphones are more pervasive. more people are using them. they are penetrating down to where feature phones were. that's giving us a lift. we are penetrating into base pand in cell phones, broadening our footprint in the phones. >> you had good numbers in tv set top boxes. what is driving that improvement in a business that i felt had gdp-like growth? >> for us it's taking share, penetrating other geographies. in the united states and europe, penetrating into south america and asia. fast growing areas as those people want set top boxes.

people want hd content. they want content in the rooms. that's really driving a lot of growth in the united states as well. >> i know we have two different kinds of audiences watching the show. every hedge fund is trading every penny. we have home gamers. you're saying a lot of what i have on my tv sets when i've got -- say i'm watching in one room. i can watch it in another. or i have connectivity among tv sets. that's broadcom. >> absolutely. they want to watch you in hd and go to the bedroom and watch the whole time. >> those people have horse sense. [ laughter ] >> i want you to explain to me some of the craziness that happens. samsung bought csr and immediately we heard they are going to have a comparable chip on the high end, it's not a problem. don't you have int lech chal property to make it so people can't build a fab and come up

with chips better than broadcom? >> it's happened before. we have customers looking for vertical integration plays. the company you mentioned is a small player, not really competitive in the space we have. the connectivity, bluetooth, wireless, lan, they haven't been able to penetrate the market for us. we don't see it as a threat. >> you did a great ak i by sigs. i listened to the call. net logic is a winner. more acquisitions ahead given the fact it's been such a success? >> we acquire one or two companies a quarter as a way to grow in the space. net logic was a great acquisition, is. it enables us to do things like network processors improving security on the network, the

throughput on the network. trying to figure out. people will say, i don't know what broadcom does, what edge you have over the other guys in the category. >> jim, i don't know how to pick. those are things we do. let me try. one thing unique about broadcom is the breadth of i.t. we have. the product areas you mentioned. we are able to take the technology and build it into single integrated chip. that integration, the breadth of ip gives us all the other things you mentioned. >> all right. now i have to ask this. people say, europe's so bad. people are worried about asia. what's unique about broadcom that we are not here talking about the problems with spanish debt and the problems with italian banks? >> i can't do much about the macro environment. one thing we have done a great job is innovation, integration of the different technologies and chips enabled us to gain share. it means product cycles trumped the macro economic cycles for us. that's driving growth. >> i don't read enough technology quarters, i think i do.

i saw a phrase that made my heart tremble for good reason. you used the term 5g. what the heck will that do that 4g can't do? second, how close? >> it's a new technology on the market. if you use wireless lan, this is a no-brainer. it's twice the performance. it's twice the range. it's lower power which means the cell phone battery lasts longer. we'll deliver that in phones this year. you will see a big ramp for the first half of next year. >> scott mcgregor from broadcom. thank you for the best semiconductor quarter i have seen. good luck. >> thank you, jim. all right, look. this is a hard business. all right? i know everyone says, well, some day someone will say they have a better mousetrap. i have followed them since their inception. there's never been a better mousetrap. they are e a great innovator. i own it. sticking with it. you should, too. stay with cramer.

[ female announcer ] the next generation of investing technology is now within your grasp with the e-trade 360 investing dashboard. e-trade 360 is the world's first investing homepage that shows you where all your investments are and what they're doing with free streaming quotes, news, analysis and even your trade ticket. everything exactly the way you want it, all on one page. transform your investing with the e-trade 360 investing dashboard.

at a hertz expressrent kiosk, you can rent a car without a reservation... and without a line. now that's a fast car. it's just another way you'll be traveling at the speed of hertz.

let's face it. apple is tough here. let me make it easy for you. when you have a $600 price tag and the stock goes down $30 it freaks out. looks like a huge decline. don't let the numbers fool you. if you divide everything by ten, kraber's rule. things become clearer. if apple for a $60 stock coming in last night and it fell 2.50 instead of $25 like it did today

you wouldn't freak out. particularly after what was indeed, i have to admit, a serious disappointment. basically the stock has been dinged as it should be when numbers have to be cut and the future seems more cloudy than it was. let's puzzle through it together. if things are so cloudy why shouldn't we be ringing the register? why not say enough is enough? the stock is up 41% for the year to date. they have lost momentum, lost mojo. isn't it time to move on and [ sell, sell, sell ] >> i'll tell you why it isn't. apple is selling for 11 times next year's earnings, one of the cheapest stocks. do you know what is much cheaper than any of the packaged goods stocks i follow like johnson & johnson. the food and household companies grow slowly. many are inconsistent in earnings reports a as we know from procter and j & j. there were concerns on the call given apple gets 24% of business

from europe and sells expensive devices you will see a slow down knowing how horrendous europe is. we don't know how much of the reduced guidance is caused by europe's woes. samsung which provides key chips for the iphone has an offering many consider competitive. third we have no idea if the big telco carriers like verizon, at&t or sprint will subsidize people who want iphones. let's spin everything on oh its head. we have next quarter's guidance that is so reduced i have a hard time believing it can't be beaten. we have a product division you have to believe people will hold back. the iphone 5 a will be out in a couple of months. new iterations are worth waiting for. plus it's not just like apple is just a company company. you have new pcs driving sales in a group that's doing anything but. the ipad is the standard for

businesses and it wouldn't surprise me if textbooks go the way of news papers and magazines. parents will love it. the ipad is cheaper and better for kids' backs. plus, itv which incorporates the siri technology so you can call out the show you want. put on cramer, "mad money." bingo. these innovations are ahead of what you have now. they are all ahead of you along with what will be a dazzling iphone 5. it's worth waiting for. i believe apple must be owned by you. don't rent it. you don't trade it. if it were a $57 a stock i would agree. don't be intimidated by the share price. divide it by ten. it will be well worth it as it has been for the years i told you to hold on to the best manufacturer, the best retailer and the best technology stock that money can buy. stay with cramer. [ male announcer ] it's a golden opportunity...

to experience the lexus performance line... including the gs and is. [ engines revving ] because control is the ultimate expression of power. [ revving continues ] ♪ during the golden opportunity sales event, get great values on some of our newest models. this is the pursuit of . you know what i love about this country? trick question. i love everything about this country!

including prilosec otc. you know one pill each morning treats your frequent heartburn so you can enjoy all this great land of ours has to offer like demolition derbies. and drive thru weddings. so if you're one of those people who gets heartburn and then treats day after day, block the acid with prilosec otc and don't get heartburn in the first place. [ male announcer ] one pill each morning. 24 hours. zero heartburn. to provide a better benefits package... oahhh!

[ male announcer ] it made a big splash with the employees. [ duck yelling ] [ male announcer ] find out more at... [ duck ] aflac! [ male announcer ] ...forbusiness.com. ♪ ha ha! thor's couture gets the most rewards of any small business credit card. your boa! [ garth ] thor's small business earns double miles on every purchase, every day! ahh, the new fabrics, put it on my spark card. [ garth ] why settle for less? the spiked heels are working. wait! [ garth ] great businesses deserve the most rewards! [ male announcer ] the spark business card from capital one. choose unlimited rewards with double miles or 2% cash back on every purchase, every day! what's in your wallet? [ cheers and applause ] seconds away on "the kudlow report," breaking news. senate democrats once again vote to raise taxes on successful investors and entrepreneurs, potentially pushing us over the tax clifnt