>> domino's pizza is a buy. >> i think your short disney is a trade. >> follow me on twitter. make you money. i'm here to level the playing field for all investors. there's always a bull market in summer and i promise to help you find it. "mad money" starts now! hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends, i'm just trying to save you money. my job is not just to entertain you, but save you money. call me, 1-800-743-cnbc. how do you buy stocks of companies that you know are doing poorly?

how do you tell stocks at companies you know is doing great? right now, that's the battle market this market finds itself played out in all sorts of little skirmishing all over the battlefield, which you might not be able to tell looking at the averages. do you closing down 5 points doesn't mean it's gaining .19%. nasdaq advancing. i'm no genius. i have to tell you i saw this coming. when i review the charts, the ones i get hand delivered to my house while i was monitoring the incredibly stimulating ones by warren buffet and my writing pal. the juxtaposition was mind blowing. on the one hand, here's a great man, a great student brand name. warren buffet likes to buy what he can understand. he likes to take advantage of distressed situations, which, frankly, are no longer

distressed when he buys into them. like bank of america preferred would have gone to the bottom of that bank. buffet's true greatness? spotting yumpbdz value situations and sitting with them through thick and through thin. warren buffet is the anti-fashion show investorment he has no interest in buying for the here and now. he has zero interest in timing the market. he wants to acquire the fabulous market of fabulous, mostly american companies. on the other hand, as i peruse these charts, i became increasingly aware that the buyers in this market suddenly could give a darn about any of that buffet stuff because they sense the economy is getting better, something the terrific employment numbers showed friday. these investors and traders went to dump the tried and true owe sell, sell, sem -- buffet names owe buy, buy, buy -- the sick lick am stocks that buffet

doesn't seem all that keen on. remember the last big buy if you havet made was hj heinz, a monster bid. one of the most beloved brands going up on its own. at the time the participants were eeker to mimic buffet. since they thought interest rates were going to stay low, making the high yields of these kind of stocks much more attractive relative to bond. so in other words, buffet and the big boys, the managers who must beat their benchmark, who many uft do better than the s&p 500 every day, every month, every quarter, every year, they were aligned. buffet and those investors were on the same page. but suddenly, we get a good jobs market and these managers are constantly struggling to retain their clients by outperforming those short term and intermediate term are caught, caught in stocks they know do poorly if the economy gets better.

they are frantically trying to get out of those stock, semming to their fiezers and general mills and closing the cereals and buying anything that is economically timid, even if it's not doing well. they are also caught trying to boy technology, one of buffet's bug-a-boos, buffet doesn't like it because it's difficult to understand. so there is a battle royal right now between those who thought they were safety stocks an those who regard them as dangerous who say, hmm, i'll wait it out with these buffet stocks and hope these stocks come back. fortunately, i have been there and i can help you. in 1987 when i started my hedge fund, i told my perspective investors i was going to be like buffet. i was going to own great american brands, which i regarded as classically undervalued. i use the example of heinz as the best stock that i intended to own and buy more on every dip. it was my largest position.

oh, geeze, when you go to speak to these people, everyone loved the pitch. then within a few week's time, we got one of those rotations that you see happening right now. out of those soft good stocks into the industrials. i, i chose to avoid switching. i wasn't going to be sucked into that fool's game. i whatten going to be a part of that fashion show. i wasn't going to get rid of the best of the best, the world class brands, for some dirty capital company or paper business that could blow up in the next quarter because it wasn't doing well. no, fashion game be damned. sure enough, when i reported my quarter, many of my investors were shocked and disappointed. jim, how could you have held on to that heinz which did nothing when the caterpillars and steel and stone containers and dodgers and rental, metals and allcans were on fire? what were you doing there? warp we paying to you do, sit on

your hands? of course, i patiently reminded them to my strategy they were buying terrific companies, they encouraged me to be bold, to not sway with the cyclical whims, they reminded me they were not locked up to the end of the year. they wanted their money back the sooner the better. i was stunned. ladies and gentlemen, i was in trouble. i had to give up my plan to keep their money. i had to keep their money. i had to give up what my strategy was. i was not warren buffet, i was jim cramer, some hedge fund manager who turned out to be smart. it turned out to be disappointing and dumb. i learned my lessson, send to bristol-myers, get that pepsico, i want papers, steel, materials, you name it, a caterpillar fund overnight, bidding materials, alluminum tech, trucks. i even got back to you very quickly. then i started making money happened over fists. my partners wanted get i ba

imthe anti-buffet -- i became the indiana buffet. guess what, the anti-buffets are back. they alcoa no badly how they are doing. they are taking foils and rails, they are even buying stocks like cliffs natural resources. i call that cliff the big red dog. it is the iron ore outfit with the worst prospects of any major company i follow. programs every dog has its day. at least in this new kennel as opposed to the omaha version. here's what you need to know, the managers think they can hold on and be brave and be bold and be like buffet. er that investors don't think, hey, i got the next warren buffet. they think, how can my guy be so stumd? how could he have not seen this coming? the results i believe these would be buffets would turn out to be mes.

on this shows we preach it. sure you see a winner and buy a text that are down and out. hey, with terribletrust.com did get they have move him, a steel that doesn't seem too expensive until the economy gets better. in the end, here's the bottom line the buffets will become the anti--buffet, they will fear the interest rates are going higher, the yields will go down. they will balk rather than run the risk of falling behind the averages. they will participate in the wall street fashion show so they can prove to their investors they are flexible. let's go to andrew if south klein, please, andrew. >> caller: jim, a boo-yah far you. >> nice. >> caller: i recently reported earnings around 9 points that day. i have been watching visa for several months now. after the earnings report with the stock brakeing at 52-week highs and index, at all time high, what should do i? >> i thought that visa quarter

was stunning. i react to the fundamental also. the fundamental also are great in visa. if anything, if it came down, i would tell you to owe buy, buy, buy. all right. it's a battle royal between companies doing poorly and companies doing great. you are to sell the bad, buffet vs. anti--buffet. who wins? the market! . coming up, caught in the crosshair, lind energy got crushed today, should you heed the headlines? or is this a monster buying opportunity? find out in cramer's exclusive with its ceo. and laider, panic room. home security stock, adt had been a fortress since its opo last year. recently, it's been setting off alarms. tonight, cramer talks to the ceo to crack the code on where it could be heading next. green grocer?

organic food banker level issial had been rallying this year. concerns over its growth forecast left investors feeling empty. is this year's gems to stock up or should you leave it on the shelf? find out if cramer's exclusive with the ceo. all coming up on "mad money." don't miss a second of "mad money", follow at jim cramer on twitter. have a question? tweet cramer #madtweets. send jim an e-mail at "mad money"@cnbc.com or give us a call at 1-800-743-cnbc.

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payout is safe. it is true the company plans to raise its payout by 6% not cut it. that's why travel trust used full disclosure to add to its position inland. there were some harsh accusations in this piece of people in the early stages of operating on the stock. you deserve to hear both sides of the story. hence, why we wanted to give the company a chance to respond, which, by the way, to some entity in the article, jackson

may be short. you don't know that, because it wasn't disclosed. let's talk to markel liss so he can explain what's happening with this company and where it's headed. mr. ellis, welcome back to "mad money." >> thanks, jim, thanks for having me on. >> first, i want to say to people when you feel a story is dead on against you, you don't come on tv. i think people should recognize. that mark, there are questions about the valuation of your company. i'm thinking one of the ways to get it is to get independenttime people, for instance, there have to be bankers involved with bar, you are buy -- with barry. are barbary. >> no jim, they've done an independent analysis. we had three different analysis done in the high 30s to the mid-40s for the company. we've done our own evaluation. it's $160 a share or unit

depending on how far you go into the reserves. none of the valuations by any of the parties are close to the barnd's article. >> what i'm confused about is the article makes it clear that you do things dead wrong, you violate sec rules, then it says you don't violate sec rules. which is it? >> really confusing to us as well. to start off with the article talking about aggressive accounting. jim, our accounting is in strict adherence to gap measures and has never been in trouble whatsoever. we have been clear with regard to our none gap meeshs. we have given total transparencies how they are calculat calculated. >> there is analysts hedge eye risk management, kevin kiser says linn can't keep production flat despite the amount of capital spending productive from the distribution of cash flow was only $110 million.

he's saying your free cash flow was actually negative 40 million. he has to know it. he is from hedge high rick management? >> jim, what you have to understand, what you have to understand in our business, quarter, one quarter does not make a company. one quarter is not the appropriate measure for determining whether or not you are maintaining your asset or not. you have to look at the body of work over a year. i think he is taking a sort view of our business. we were pretty opened on our conference call most recently about the driver's operating performance over the first quarter, granted some difficult environment for many operators in the areas in which we operate that led us to essentially flat production, a yarter over yarter, he is taking the total capital expenditures. it takes more than a quarter to see the true equal expentures or the impact with maintenance activity. >> at the same time, it is fair, mark, we have to zris-to-have-t.

are you prospecting for i'll and gas, that is a risky business? >> well, jim, are you right. think about the risks we take. we hedge the commodity off. so we mitigate all the commodity price. because as you know, we have one of the best hedgebooks in the industry, 100% hedged on oil for four years. we mitigate the risk on operations because of the nature of the assets we buy. we are buying low declean assets. -- decline assets. we are spending our dollars on promp productive place -- on proven productive place is there one of the things i want to, behrend's is a major publication. i find it difficult they hit you twice. they must have conviction your company is worth far, far less. do we know, it's safe to say, since the last report, that maybe some of the weather-related problems at least have gone away and you get a bit of a snapback?

>> jim, weather was a small portion the first quarter. infrastructure was an issue. we think infrastructure is going to be corrected by the second half of the year and you'll see growth in the second half of the year. the only item i would you that carries on in that that we saw in the ferc was ethane rejection. we think we will be an ethane rejection based on the current view of natural gas liquid prices. that's why we adjusted our overall guidance down slightly. but even though we did that, we still see our ability to pay our distribution at $290 currently watt the behrend transaction. when we close the bary transaction, which we think will be the first quarter or first week in july. you know, we talked about how creative that transaction is. we'll see a significant improvement in terms of cash flow generation. we still feel good about our equipment of the increase of about 6.2% consistent with a therk. with that distribution incareer, we're still forecasting coverage

of around 1.o7 in the second half of the year. >> one question, what does your company do? first one devastating, a major firm questioning your accounting. you know, you can't spend all your life trying to defend, seeking out articles that are negative. someone has it in for you. so what does a company do? i'm being philosophic. it's a money show. what does a company do? you just put your head down or don't you have to respond when people are, when some people might say, your stock is being manipulated? >> jim, look, we've done everything we can in terms of answering questions and being transpampblt we've done 2 a k filings. i don't think there is anything more we can put out there to do our nongap measures or hedgebooks or any of get i think at this point in time it's getting back to the base operations with edo so well, continue to develop our asset, continue to look for creative

transaction, much like the bar y transactions that will be a great opportunity for us. we pursue it that way. hopefully, our performance will drive those folks out of our stock. we will actually have stocks in our stocks that are deep value. we've had a number of calls today from investors as disappointed as we are, still showing very strong support for our company. >> was the press fair in this story? >> i think it was misleading. i think many of the facts were misleading. the fact that we did miss in the first quarter, that's fair. we openly mention that from a volume standpoint. i think many of the things they say as relates to the hedge points and the mutt position are a bit of the twist of the facts. you have to be careful at the time that you put them on, where the market is really trading. i think that's been a bit misleading. >> does it matter? it doesn't matter, all right? i have a website that i work, i can write ten negative articles about you. does it matter? i mean, there is no journalism

jail. >> well, it shouldn't matter to those who know our company well. those who have followed our company, been with our company a long time gotten accustomed we take 29 distributions for 29 quarters in a row and raised distributions some 81% since ipo. i think they feel strongly about the management team and what we're doing at linn energy. >> thank you, markel liss, for coming on mad money. i really appreciate it. >> thank you, jim. >> markel liss, ceo of linn energy. i understand, bary, the writer, he's a nice man. i bumped into him at the supermarket. he always said hi. that being said, there are some people very smart on the other side. my travel trust is on the other side. thank you to markel liss, ceo. coming up, panic room? home security stock? adt had been a fortress since its ipo last year. recently, it's been setting off

alarms. tonight, cramer talks to the ceo to crack the code on where it could be heading next. .

. a moment when everyone recognizes the housing marks come roaring back, most housing-related stocks have been on fire since the beginning of the 84. how would you like a bargain plate down for 2013? i'm talking about adt.

it's the largest small business company, spun off from ty -- , you probably seen the signs on people's lawns. you also have to console lots of new security systems. when it comes to the home monitoring mark, adt makes everything from fire alarms with carbon monoxide detectors. they're the no. 1 player in this business so far, six times the size of the next largest competitor, which, by the way the spin offs that adts like this have been a great way to unlock value in the past. i bet this one will be no different, plus i think that adt could be ultimately a takeover target for honeywell technology, both said they want more exposure to the security biz. which is one of the reasons we own it by a car itable trust. i don't want to get ahead of us. this is not a takeover play. i never recommend the stock on the basis of speculation. you have to consider the fundamental also. adt reported last week on may 1st. the company met the revenue estimate, its earnings sar came

in 2 cents shy thanks to weaker margins. it got down a quick $3 in a single day. every day since then, adt came roaring back that it was above where it reported. it's trading at $4.36. adt hasn't bounced back because this is a forgiveing market. even though the headlineing markets were disappointing. they can retain more customers. imagine the margins which hurt them this quarter can improve over the rest of the year. in fact, even morgan stanley, a real adt hater for some timeup graded the stock. is the stock now ready to rally? let's speak to the ceo of adt and find out more about his prospects. welcome to "mad money." >> my pleasure. >> we think there is a lot of ways to win, we to the on the conference call, you were a little conservative. that was my judgment, because you talked about housing is a

headwind as well as a tailwind and you had to spend more which hurt the gross margins. well, these things in the second half be a headwind and spend continue. >> let me start with the housing market. medium to long-term housing is a great process for us. as they build more house, as you said, they will put more security systems in, net, net, it's a positive n. in the short term, we have a little headwind because of the disconnect as people move from one home to the next. we lock at that as a two-fer opportunity for us. >> let's talk about housing. people talk about building million dollar homes. what if they build a million two? is that a straight out tailwind? >> it should be. >> on the quarter, you talked about the idea there were dealer problems, the domers didn't do as well. that's seemed one time only to me, am i being too optimistic?

>> i think it was a first quarter problem for us. we actually saw nice sequential growth between the first quarter and second quarter. we expect that improve him to continue as we go through the years. >> also, this was a term new to me, my partner told me that this is something i've got to ask you about. when do the dissynergy stocks, meaning they were spun off, there were some costs maybe one time only maybe haven't been put behind you yet? >> well the dis-synergies were related to the split of the commercial and adt. we ran them as a separate business. as they were separated and dedicated, some of the back office i.t., hr, some finance resources were shared between the two businesses. so now we've got to go build up capabilities. for the most part, we've made those investments. we've built that out. now we should get leverage as we continue our business. >> you mentioned slight pressure from competition. is that going to be with us all times if we own sharesin adt is?

>> i look at it and say adt has the great market. we have the strongette product portfolio with our new adt pulse offering. i believe we bought the the leading interactive service sluchlgs we will see competitors come into the marge place. we have for the 140 years we have been if expense. i think that's something we will deal with in due course. >> you have a lot of free cash flow. some say it isn't as strong as it was, therefore, you can't continue with the buyback that you seem to like so much. >> i think we're exited to the doctor 2 billion buyback after two years. we've said we've front loaded. we have done over $800 million of the buyback through the first several mons of the program. >> why are people saying you are afraid to get a lower credit rating in order to increase the buy t. stock has to climb a lot? >> i think that's something we're always going to be looking at. as a board, we discuss the right capital structure. in november, we reported our earnings. we talked about a debt ratio of

two times ebidta. we are executing according to that plan. it's something we will continue to discuss. >> you have a board meeting this week? >> we have a board meeting next week. >> obviously, i'm sure they will discuss the idea it was 48, when as to the 40 very quickly and your stock was somewhat defenseless, frankly. >> like i said, i don't look at the day-to-day as you pointed out. we got everything back. >> let's talk about pulse, i met with at&t lastier. they were telling me, mr. delavaga, he was forceful. he said we can destroy adt. we have by far the best hardware, already the connection with the customer. we can offer something better tan pulse. how are they doing versus you in your competitive eyes? >> well, we've done very well with our pulse rollout. we have been in the market two.5 years now. when we launched the product, we said we would get 20-30% in our direct tech channel. last week we were almost at 33%

through our direct channel. we are seeing great momentum in our small business an our dole were can el. so i think we have a lot of momentum with pulse. the product is doing very well. i think it will continue to do well. >> well, what is the technical, technological advantage you have over the at&t offer with pulse? >> i think first an foremost, we are indifferent to whose broadband we are riding on. >> verizon, century link. >> exactly. we can ride on anybody's broadband. we started with a security mindset. we started with that life safety and security focus and expanded from there. so the reliability was first and foremost in our mind when we were designing our solution. we built off of that, we already had a strong presence in the home. 16,000 employees. we've had a lot of security experts in the field every day. >> to me, obviously the morgan stanley bear converted to being a whole the stock is back to where it traded. i think it's a compelling and expensive situation. that's how i look at i. i wish i

can say, listen, buy it rye here. my travel trust owns it. i think you have explained it quite honestly and fairly. that's naren gursahary, the ceo of adt. stay with your company. thank you. .

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[ music playing ] it is time! it's the lightning round. when you hear this sound, then the lightning round is over. are you ready? time for the lightning round. trenton in wyoming. trenton. >> caller: hey, jim. so ellie mae reported another beat, the ancillary record of software seats. what do you think? elli? >> that's a mortgage origination play. i am for that as well as radian and genworth. richard in connecticut. richard. >> caller: hello, a big connecticut boo-yah to ya. >> what's going on?

>> caller: a, my stock is discover financial service, efs. i think it's a great card. >> it's so cheap. stefanie research group, we have been itching to buy that stock but keep getting frozen. you got a good one. let's go to jim in illinois. jim! >> caller: hello, boo-yah. >> boo-yah to you. >> caller: windy city here in chicago. i'm calling to ask about ez-chip. ezch? >> that is too dicey for me. it hasn't been doing that well. there is a reason. it's up with of those semi conductor stocks that, frankly, it's too darn hard to figure out what's going to happen. i want to stay away from it. let's go to dave in missouri, please, dave. >> caller: hey, cramer, i've got a question. >> sure. >> caller: oil and gas, chesapeake have a lot of assets selling cheap. why doesn't a major oil company like chevron, exxon, scoop them up and buy them out? >> well, i think they're very difficult to understand. that's a part of the problem, my

friend dan dicker who writes with me on "real money.com," he says averages work well at $5, i'm not going to go against them, at the same time when you buy these down-and-outers, when they go down, you feel like shooting yourselfmentlet just say, interesting ideas, but pure speculation. joanie in new york. joanie. >> boo-yah from joanie in upstate, new york. jim, ibomb bought some shares of cino. i think they're an interesting product mix. now my head hurts from all the conflicting resear an opinions, i said, that's it, i'm calling jim kraler. >> it's a better play i think. let go to jeremy in wisconsin, jeremy. >> caller: hey, jim, a great big badger boo-yah to you. >> oh, man, badger, i love them, water up? >> jim, my question is, two, two harvards investment corps. looking at there's earningings, they question if they sustained the dividend.

they have a q4 spinout t. stock is not short what do you think? >> it's interesting. agnc really took my breath away. so i will sit on the side line, mortgage trust. there is so much noise, look, it's more conviction than i have, let's put it that way. and that, ladies and gentlemen, is the conclusion of the lightning round. .

what's happening with haines celestial? you know we are bleefrs of failure food here on "mad money" and people want to eat food that is healthy and made with natural ingredients. haines celestial, the company behind a vast number of organic brands that you might buy if your supermarket, take celestial seasonings, garden of eden, greek gods, many others, reported last thursday after the close, the market's verdict was, hey, disappointment. in response to stock the next day it fell $2, haines

celestial, did they really miss? the company's earnings per share were in line with wall street estimate, it's revenue, ethe spite being the largest in history. the hain's full-year guidance the revenue forecast again coming in slightly below what the analysts wanted to see, hoenks when you look at the surfaces on mad money the revenue was hain's business in the u.k., we could be ready to turn around thanks to a spate of recent acquisitions. meanwhile, at the level, the company had 14 brands by subl digits. 16 more in the high double digits. eight brands that could double or triple in size. hains has more than 100 products slated next month in the u.s. alone. they have a leading u.k. baby food producer in the u.k. they can blow that out internationally. so perhaps we need to view the pullback in hains as a buying

opportunity. it has given us a 46% gain since i got behind it in twill, 2010, let's do the homework, check them with the chairman and founder, hear more about the quartered and where his company is headed. mr. simon, welcome back to mad money. >> hey, jim. >> irwin, i'm going to cut to it. nice guy, ken goldman, he goes, quickly, you have to tell me, you lowered top line pretty substantially. true or false? >> we didn't lower, you know, our sales expectation came in at $20 million last. and we don't give quarterly guidance and here with running a company today, you know, in the u.k., we missed some promotions that we decided not to run with a major retailer. not a good business decision to run them. there were some promotions that moved into the next quarter. >> we don't know, they're so powerful, you can't tell them what to do. >> you can't tell them what to

do. the thing is, we could run them for a much higher cost. they're not right for the long-term health of the business. jim, listen, we built over a billion dollar kane in the u.s., we started in the u.k. 18 months ago. we got close to a million dollar business. health and wellness is on every retailer's mind in the u.k. today we own hartleys, sun path, 58% of our sales are branded food companies in the u.k. and the u.k. is turning around. europe is bottoming. >> i sat back and i said i know it's going to be another tough one for irwin. wow, i just wished you stayed in the united states. you have 25% of the people that tried it in the u.s. you can take it to 50. you never had to look at u.k. until u.k. recovers. >> that's philosophical. >> it is. >> for 60 million people, there is great retailers there. what i'm trying to do is build a global food and compan care,

acquiring ellis to take earth's best on an infant children's feeding business across the world, buying, you know the business in the u.k. that we bought allows us to take celestial seasoning, rice chips an carrot chips on a dploebl basis. if you come back and look at the bigger consumer package, they have fought filled global businesses. back to your question. listen, only 25% of the households in the u.s. consume heating products. 95% bought organic products. so, number one, there is a lot of leg room and a lot of runway for us to grow in the u.s.ment but the other thing is there is some great values in the europe and great brands. >> your stock is more highly valued than those companies you said, listen, are growing 2/3%. therefore, your stock is horrible. to any sort of chimpg. you have to -- chining. -- chink.

was everything perfect? no. >> so step back for a second. listen, you know, we today, health an wellness is a big part on everybody's mind and in regards to the u.s., our business is growing well within bulk foods. >> someone tried to say it's 9, not 11 a. guy got caught up in 9.3. it was very confusing. >> well, it is growing. our last consumption number, jim, were up 9% where conventional food companies are growing 2.2%. who is growing like that on an organic basis. so, stepping back, hey, as you heard what was said at the beginning, we have over 10/11 brands growing today at double digits, 14 brands. we have 14 brands or 10 brands that are $100 million plus. we have seven or eight brands that are $40-$50 million. there are a lot that will grow or double. >> the critics want you to stop growing, stop buying, let's see

how the company does. if there is a land grab of organics, that would be great. >> i say when you are green, you are growing, when you are not, you are rough. hiepz is the only company that has done food deals out there. >> right. >> and part of my full million, part of my valuation is doing great strategic acquisitions. listen, i got criticized because i went in the u.k. and bought great brands, hartleys and sun path, which will help my business in the u.k. did i get credit for buying laila's which is right in my sweet spot, which is the no. 1 leading baby food company in the u.k. aed europe? >> i heard is you got two very large retailers. i did feel like you are making strides with kroger and target. it was painful to hear these other two guy, who frankly had not had that good of business, although they do have some degree of control over your business. >> well, listen, but on the other hand, you know, we're one

of the largest suppliers 250d. i want to diversify our base. listen, i don't want to be 100% based business within the u.s. >> that's correct. >> i don't want to be whole foods. i don't want to be walmart, kroger. listen, we had a great business in canada and lobelaws, growing with soby's there. i want to build no different than coca-cola. how do we build global grand? and that's what you get value for is building global brands bit by bit and that's what we're doing at hain, you will be age buy earth's best. >> i cross around the world. >> you will be able buy celestial seasoning, one of the hottest categories is the juicy category t. thing is, jim, i'll come back. greek yogurt, we were there early. juicing, mothers enter the organic category on baby. we're there early. snacking. we're there early. >> earlybifrd is going to get the highest stock price. chairman, president, ceo, the

founder of hain celestial group. you read the conference call. you make up your money. "mad money" is back after the break. .

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i come out early for my strop trading segment. and the dow already started to crash, ultimately plunging a thousand points in a matter of minutes. you might not remember now, but back then there were ferocious riots in greece happening at the very moment it was plummeting. the televised box, they decided somehow the decline had to be related to actual events. that was the take-away. at the same time, i had been discovering high frequency trade. they try to get a second edge on the rivals as well as larger buyers an sellers in what we used to call front running. it has been send by the sec as totally legal. after doing my homework, i came to the conclusion these high frequency traders did the opposite. they may look leak they are all bidding for stock, given the illusion markets were deep so to speak, i thought they were set to the same frequency, when

there is many sellers, step away or you will get hurt. i discovered a lot of people were involved with supporting that trading, but there was a high decline because the buyers would vanish. these guys are there to run ahead of larger orders in a perfectly legal fashion, if the larger firms are scared and back away because a big sell-off of events unknown, known, then these rapid fire buyers would fought be able to stand there and support the market, temss. they might switch sides to become sellers to exacerbate the decline. that's what happened the day of the crash, buyers vanished. stocks like procter & gamble vanished. hundreds of billions were lost. when i came out, i quickly realized this is exactly what i most feared. there were no large buyers, no high frequency buyers, plus the new york stock exchange which has specialists designed to slow things down have become a much more factor in trying to destabilize things. anyway, i've tried to let people

capitalize on it by putting in limited orders. they started coming back. if you panicked and sold, let's say you lost a fortune, so take a look. >> not broke on the dow 10,000, nearly 900. >> p & g is now down 25%. >> if that's true that, stock is there, you go and buy it. take me there, that is not a real place. >> that is liquidating. is there a distress symbol? >> 49 and a quarter bid for 50 tough. proctor if i wrote my hedge fund. proctor jumped 7 points. i'd buy 50,000, 49, flipped it at 59. the market didn't work. it broke down. the machines broke down. it's the greatest story never told. you will never know what happened there. >> there was no liquidation. there was no using. the p & g trade worked. people are thanking me for that one. i was glad the government attempted to figure out what really happened. like i said, it wouldn't, it wouldn't test it never could. so-called circuit breakers involving declines would end

theets flash crashes. frankly, i like the cirque breakers. i didn't know that nay worked. i say, get used to this these flash crashes could be the normal part, my advice, for individual investor, you should be profiting. put limit orders, not market order, underneath your stocks. corporate treasures listen to me. make sure have you your buyback order, every price down, every dar, so you can profit for your shareholders. don't be buffaloed. you can, indeed, take advantage of the chaos to get better price even tow your mignons tell you you can't. i've done it. they haven't. it's a benign method of making money trading, not illegalized front runners as warren buffet said this weekend. it doesn't matter, it produces no value, the fact is, it's here to stay. learn to stop hateing it

already. embrace the madness, some belly aching. stick with cramer. the internet sales tax is a bad idea. we are finally going to let limited brainiacs into the country for better growth. is 17,000 on your radar screen up next on "kudlow." . ♪

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continues, it was led by apple. it all came down to yield at 3% saved it. right here on "mad money", i'm jim cramer and i will see you tomorrow! [ music playing ] to come before we begin this evening with blakeing news...a short time ago, the senate voted to pass an internet sales tax. john harwood live in washington with the late e. good evening, john. >> good evening, larry, the senate just finished voting after holding the voting opened for senators to arrive in town. 69-27. they passed this bill. right now, there are a lot of online sales taxes that are on the books as owed but are not collected because consumers don't file tell with their tax return. senate bill would force states that have sales taxes to levy those taxes in states where it