love her! going to be with us. -- captions by vitac -- www.vitac.com i'm jim cramer, and welcome to my world. >> you need to get in the game. firms are going to go out of business and he's nuts! they're nuts! they know nothing! >> i like to say there's always a bull market somewhere. >> "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cmerica. other people want to make friends. i just want to help you make some money. my job is not just to entertain you but to educate you. so call me at 1-800-743-cnbc. take a deep breath and repeat after me. panic is not a strategy! not a strategy whether in englewood cliffs, or new orleans

like we are tonight, it's the wireless conference. repeat after me -- panic is not a strategy. that's all i can think about after today's action where the averages got clobbered and rebounded into the close. dow at one point down 198 points before ending down 76. s&p sliding .43%, nasdaq down .39%. i got to tell you i was upset all day about this decline. not because there's reason to be concerned. i'm not that blind. total chaos in europe, greece is falling apart, the french seem to be waking up to the notion they might be impotent against the germans. the failed policy of austerity will stay in place. i was trying to get my arms around everything mobile today in new orleans, and i felt like i had to get my arms around everything mobile in europe. we did have some warnings. we saw fossil get slaughtered,

sinking 48% of its value. what is the wholesale value of scotts miracle grow? big data warehouse rackspace plummeted five points. mako surgical, thought to be the next intuitive surgical, down 36.81, a staggering destruction of wealth. those decline shake you to the core. it doesn't upset me that they'd send us lower. what gets me down is the european news and the shortfalls produced a catastrophic all-at-once run to the exits, which shows me once again people either simply don't know what they own, don't like what they own, fear what they own and are just completely and utterly

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

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

will ross stores, the most fabulous retailer, be hurt by declining gasoline? or sell the stocks because of disarray in the greek parliament? it happened at the open, that's for certain. how about big users of energy? they were clubbed like baby seals from the get-go, as if they're going to have to pay a higher place for their biggest input cost, not lower ones. last night we had irwin simon, the terrific ceo of hain celestial. sleepy time. the guy was jumping up and down about how well his organic food company is doing. he's got street cred that's amazing. yet it goes down at the opening. why? because of spanish unemployment? the fact that it rebounded is

all the proof you need that panic, panic is a terrible strategy! boy, the guilt by association clowns, they were immediately sent in, too. maybe this is a sondheim market. fossil brought to fabulous fame by that investing genius, the sitch from the "jersey shore" aka the oracle of seaside heights, took down the whole complex with ralph lauren -- i'm sorry, ralph, i used sitch in the same sentence as you. vf corp dropping 9 points at their worst moments. i'm not saying none of these companies can be hurt to the same degree like fossil, which was crushed by europe, as they all have some degree of european exposure. what i am saying is if you really did fear that something was wrong, you could have at least waited for the bounce as every one of these stocks bounced back gigantically intra day as they've done over and over again in 2012.

or if you really like one of them or were just waiting for a price break, heaven forbid you could actually buy some. at my charitable trust you can follow along. ralph lauren was down 12 points, enough is enough! closed the day down 5. same thing with the collateral damage from this rackspace. f5 and equinix they just reported stellar numbers, just a few weeks ago. they took gigantic hits before bouncing back like they were on a trampoline or something. there was a much better time to sell, people, than the opening. or how about the opportunities that are hidden in plain sight, a la the purloined letter that you finally got a chance to buy? att? they're not even in europe. how about vertex, a company that got multiple upgrades and still opened down a few points before justifiably taking off on a monster move. could have bought at 57, closed at 64. i'll take those points any day.

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

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

coming up, mad mobile. don't move. cramer is about to dial it up with his lineup of who's who in telecom and tech, all coming up on a special edition of "mad money," from international ctia wireless show in new orleans. miss out on some "mad money," get your "mad money" text alert today. text mm to 26221 to get cramer right on your phone. for more info visit madmoney.cnbc.com. we love theme parks but with four kids, it can just be too expensive. yeah, so to save money we just made our own. oh no! what could be worse than ninety-foot swells?!

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tonight we got a real special edition of "mad money" coming to you from the ctia wireless conference in new orleans. there's no better way to get a read on this business than talking to at&t, the largest communications company on earth. 103 million subscribers, right behind verizon, although unlike verizon, which only owns half of its mobile business, at&t owns the whole shebang. on top of wireless phone and u-verse. i like at&t. come on, i've been talking about this for the last couple years. gives you a bountiful 5.5 yield.

it was up in the midst of the downturn. fabulous balance sheet, terrific, improving gross margins and a great dividend that can easily be increased, plus no europe. we want to get a read on at&t in the broader industry, which is why we are thrilled once again to have ralph de la vega, the president and ceo of at&t mobility here with us tonight. welcome back to "mad money." >> thanks for having me. >> when the market was all down today and i looked at my screen, there were 29 dow stocks that were down and yours was up. >> we loved it this morning when i checked the stock and we hit a 52-week high. i love what we saw happen today. i appreciate your supporting us. >> look, a year ago you had just announced the attempt to acquire

t-mobile. given the fabulous run in the stock, is that kind of thing done, you are don't need to acquire anything these days? >> that's kind of behind us. we always look forward to look for any appropriate acquisitions but we have moved on, we still have a great position in the marketplace and the last quarter reflected that. you saw the numbers, record smartphone sales in the first quarter ever. we grew our data business 20%, margins grew 260 basis points over the first quarter a year ago and our customer churn was down, which is the lowest cgurn levels we've seen in the company for seven quarters. >> it's important for people at home to understand the reasons why i like this stock but can you explain it better than i can. one of the things i really like is that a lot of companies are giving up a lot to the handset makers. it seems like somehow because of your mix, because of the fact that nobody seems to disconnect because you have all these family and corporate contracts

that you're able now to shift the power and that the gross margins for your company are increasing and maybe even the subsidy is beginning to level off or decrease to the handset makers? >> i love what we're seeing from handset makers themselves, that we have much more choice than we did a year ago. we now have a great apple portfolio as always, but the microsoft windows-os is the best we've ever had, android continues to be a great part of our portfolio and people are calling our device the best android device ever. we have those three big pieces of the portfolio to give people a choice. >> away from apple iphone to an android could raise to 70 percentage points, to 5% a share. is that correct? >> we always value customer choice in giving customers a choice of the handsets they want.

>> in your release you use a statement and a lot of people get confused who are not professional analysts. you say wireless margins expand even with strong smartphone sales. can you explain that? a lot of people don't understand. >> that shows you we've done something to the cost structure. we had record smartphone sales, 5.5 million in the first quarter, yet we improve margins 260 basis points. >> people might think why wouldn't margins go up? it's because those phones cost you money, right? >> correct. in a quarter you have a huge sale, we had really been working on the cost structure very, very hard so we could still deliver margin growth as well. >> do you think it's possible that the tiered strategy, which is allowing it so those of us who don't stream movies on our cell phones are going to get a better deal?

because right now there's a lot of free riders. your tiered strategy makes it so those of us who aren't hogs don't have to pay as much. >> i think what our tiered strategy did is made it so huge numbers who wouldn't have participated in smartphones will now participate. you can get a smartphone for $49 and get a data plan for $20. we have record smart phone sales growing revenue. >> you have a great quote on the conference call which i urge everybody to go read because it was the best conference calls of the major companies that i dealt with. it's one of the reasons the stock went up huge. you say people used to be scared of their cell phone. they're no longer scared. how did this happen? >> this is amazing. this really is transformational and a profound issue for the industry. two years ago people were afraid of the technology we were throwing at them, stiff arming the technology, saying it's too complex. credit to the industry, the ecosystem, software developers,

these phones are the best phones and devices and solutions we've ever had. now customers are embracing it in record numbers. they say it helps them to live their lives better and richer. so they are absolutely embracing this technology like nothing we've ever seen. that means growth to our industry for the foreseeable future. >> last year at this time you told me the justice department would not have a problem with that deal and at the same time it was going to be fabulous, yet you ended up paying $3 billion, you had to walk away, gave away some spectrum and your market cap is up six times versus the three billion. how can that be? >> we thought that was the best solution at the time, it didn't happen but we moved on. the thing i love is how well the company has executed despite that. we're running the business as best as it has ever run and i'm thrilled with the prospects for the second quarter. >> well, ralph de la vega, you completely delivered. i think you give it to them.

>> we're going to deliver something called digital life that's getting into home automation and security monitoring. the solutions for customers are things the industry has never seen, all it, all digital. >> if people owned the darned stock, they'd be coming back into the stock market more. thank you to ralph de la vega, president and ceo of at&t mobility. you got to check this stock out. whenever it comes in, which it almost never does, it's a great opportunity to buy. after mo this is lois. the day starts with arthritis pain... a load of new listings... and two pills. after a morning of walk-ups, it's back to more pain, back to more pills. the evening showings bring more pain and more pills. sealing the deal... when, hang on... her doctor recommended aleve. it can relieve pain all day with fewer pills than tylenol. this is lois...

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since we're back at the ctia wireless show, ruminating on the future of everything mobile, it's worth taking a moment to reflect on what's happened since last year's wireless convention. i was there. back then, at&t just announced its plan to buy t-mobile. sprint's ceo assured us it wouldn't happen, the deal wouldn't go through. he was the only one saying that. he was turned out to be dead right. since then sprint made a deal to sell the iphone. they're selling like crazy.

many investors see the apple deal as a negative because sprint will have to pay apple $15.5 billion in subsidies to sell the iphone. i think it's terribly short sighted. every time they sell an iphone, they get data fees. we know sprint is selling 1.5 million iphones. that's got to be other guys breaking their contracts to come to sprint. 56 million people use sprint. stock has been a falling knife. even as dan hesse just bought 50,000 shares two days after the earnings, insider buying, very positive sign. let's check in with dan hesse, the chairman and ceo of sprint, find out more about where his company is headed. mr. hesse, welcome back to "mad money." >> good to be here. >> you've done a lot in the last couple years.

doesn't matter what survey, sprint always come out on top. you were dealt a tough hand on your predecessor. you had to write off a nextel business that had been horrendous. you've done everything right and yet controversy here yesterday, the ontario teachers pension fund, one of your biggest investors, is saying your pay is out of line. when is it going to get easy? why do you take this? >> well, as you know, i recently offered to cut my compensation. i didn't think it was right -- >> before ontario. >> before ontario. because what i didn't want is distraction. i knew some shareholders were concerned about the short-term dilutive effect of the iphone. you said it correctly. over the long term it's a great decision for the company. i was hoping to eliminate some

of the distraction. >> i want to be able to understand what's good for the goose isn't necessarily good for the gander. ralph de la vega from at&t mobility talks about how you want to get the margins right. and sometimes apple asks for too much. but in your case you're willing to pay that. why is one guy more worried about what they pay apple and the other guy okay with paying apple a lot? >> i think we all have basically the same deal with apple. from our perspective and you mentioned it, 44% of the customers we added, two times the percentage of our competitors being new customers to sprint, that's a very positive sign. early on, very few returns and exchanges, very few calls to customer care. we feel it's a good long-term decision, even though the up-front costs to apple are quite high. >> but you also put through a price increase. is it working? >> it is. you're exactly right. this past quarter, our average revenue per user was the largest

year over year increase in the history of the wireless industry by any company. it was a big driver of beating street consensus on earnings by 30%. ebidta. >> i speak with my friend david faber on the show "squawk on the street." we talk about what's going on at the company. there were reports never confirmed or denied but let's get this straight that you wanted to buy metro pcs for $8 billion, a 30% premium, and the board said no, but we've never gotten confirmation of this. >> and you won't get it today. >> whoa. well, you got me there. how about this way? would you ever think about buying metro pcs when you can get it for $3 billion when at one time it was at $8 billion? >> nice try. >> doing my best. >> did it work out better or worse? >> short term they argue they

take out a competitor but long term the industry doesn't grow as fast, you get duopoly. >> let's figure out the valuation to common stock. i tell people in you like it, you ought to think about buying the senior debt because you have a good cash position. you have a giant amount of spectrum. ralph said to me of at&t you have three times the amount of spectrum he has per subscriber. spectrum is like gold, like oil. you've got a lot of spectrum. isn't the spectrum worth the price of the common stock alone? >> i well, i won't get into the valuation. we do have a good spectrum position. our own spectrum takes us to about 2014. he was also adding clear wire spectrum. we own half of clear wire. that's not really our spectrum. if you were to add sprint

together with clear wire spectrum, it's a good spectrum position. >> you've got a difficult transition ahead. you're talking about how as you transfer people off the nextel system, you lose a lot of subscribers and try to make it up with new subscribers. you couldn't give any clarity about what level of people are going to drop off. why can't you be more certain, dan? >> well, it's going to vary quarter by quarter. we said we'll get our fair share or much more than our market share with the customers that leave the nextel network. we're planning to turn the network down by the end of next year. keeping that network on is very, very expensive. so now we're in the process where large companies will be moving off. they use a lot of push to talk. almost all of them by policy have an rfp process where they put it out for bid, we'll complete aggressively but it's hard to predict, not only the timing of those decisions and

when the customers move off but how many will win. >> that last quarter was good. is survival off the table? do we have to worry about the survival given your balance sheet and how much you have due? >> i don't believe so. but i do believe that there are some concerns because of the level of investment. look, we have two big investments, network vision and the iphone. we did both of them because they were so important for the company and are very accretive over the long term, as early as we possibly good. so as soon as the technology was available, the world class push-to-talk on a sprint platform, lte, multi-cell sites which is what network vision is all about and as soon as we could get the iphone. we wanted it as early as november and they came at the same time. that puts a cash flow burden on the company. we're talking to vendors about

another $1 billion to $3 billion in vendor financing. from my perspective i don't see any risk. that's why i'm buying stock. i won't say any risk but i see it as extremely low risk if we execute well and i'm planning to execute well. >> thank you so much. that's dan hesse. thank you for coming on the show.

here at the ctia wireless show we got a chance to witness how mobile technology is transforming all sorts of industries. sometimes the transformation can be more painful than others, even as it might ultimately prove to be more rewarding. take electronic arts, one of the largest video game companies in the world, publishes some of the biggest game franchises around, it's madden nfl, fifa, battlefield mass effect, medal of honor, the sims. ea has been shifting aggressively towards mobile and social gaming. it's been a tough transition. stock has become a genuine battleground. the quarter was solid but guidance was seen as disappointing so the stock got pounded, fell 65 cents, 4.3% today.

ea is down 30% year to date. is that justified? it's not clear to me it is. ea's digital business is growing like a weed, up 59% year over year. smartphone revenues up 94% and they're planning to launch 41 different socials and free to play titles over the next four months. i'm thinking this is a misunderstood stock when it's real cheap here. still, ea is at nine times earnings when you back out the $4 of net cash on its fortress like balance sheet. but there are still some real issues that need to be addressed, about a shortfall in star wars, which rightly or wrongly irritated today. that's why we're glad to have the ceo of electronic arts here with us to talk about the company and its prospects. tough day, you got to help me. >> some days are better than others. thanks for having me back. >> first, has this industry got

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

period when we hit a million-seven and we had an obligation to tell them the facts. realistically it's a solid success. i have a hard time understanding this one -- when we planned this business, it wasn't as important to us as madden or fifa or the need for speed or the sims or top honor, it was in our top ten but it want in our top five. it's a solid, successful profitable franchise but it not a bellwether for the company. >> fifa, madden, medal of honor, sims. i'm hearing disney just reported and it was excellent. they have pirates, they've got "toy story," these different franchises. they're worth billions. these franchises that you have are worth billions but the whole company is worth less than $5 billion. there seems to be something wrong here. these are also you want to use

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

they like it because they think someone else is going to be able to bring out the value, that someone is going to buy your company, whether it be a microsoft or a telco. does it take an acquisition to get this stock to where you and i know it should be? >> as the ceo of this company, my first responsibility is to deliver a great business. investors eventually wake up. think about companies like apple. they traded dead flat for three years after they introduced itunes and the ipod, traded at $6, $7 a share. amazon got criticized for moving beyond books. what would they look like today if they were a book retailer online? it takes a while sometimes when companies are going through big change for investors to catch up with that and they naturally discount change as a negative. now we're changing from a tough business model to a great business model showing huge traction. so i think they're going to get it but it just might take a little longer. >> all right, here's one thing you got to explain to people,

zynga is worth $5.7 billion, doesn't make any money. they just paid $180 million for omg pop. i like draw something, too. make some sense of that for me! >> look, i would say this. zynga is actually a good business. i think they'll be profitable in a way their shareholders will respect. it's going to work. we're just a better company. i think we have a lot more going for us. because where they're doing smart, innovative things, we've got great intellectual property, where they're just starting to build it, we've got success on ios, apple and android, and social, and pc and console, packaged good and digital. we draw revenue from many more sources where most of their growth is by way of acquisition. 80% of our digital business is in our core brands. it's not an acquisition strategy, it's organic growth. >> and which are going to be the organic growth games?

you did say that 2013 was going to be your year. if you look at your company one year from now, what is going to be driving the earnings? >> what's happening right now is we've seen our gross product go from 49% to 63% as we've driven digital through the business. this quarter -- you were excited last year about sims social. a month from today a big one about a month from today is going to be all over the news. we've got 41 mobile and social applications, this year most of them microtransaction based on our most powerful, important intellectual properties. let me put it mildly because we don't normally announce them, you mentioned a number of those big names in the intro today. the big brands are going mobile and social. i think it's a winner. >> all right, john, i got to tell you, you back out the $4 in cash, i mean, it is a little nuts frankly.

that's john riccitiello. he's the ceo of electronic arts. you got to admit it's cheap. if you own it, i'd stay with it. stay with cramer. good talking to you. cubby! step into the perpetual motion simulator! we're testing new degree, the only antiperspirant activated directly by movement. activating protection, bear! it releases bursts of protection as you move feeling fresh and dry bear! the more you move, the more it works [ roars ] oh, no! [ screaming ] new long lasting degree with motionsense. help me! keep running! when you're training to be the best, you gotta eat the best. [ male announcer ] try the sweet n' smoky new subway smokehouse bbq chicken. merely 6 grams of fat. it's a perfect ten. subway... the official training restaurant... of athletes everywhere.

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our internet at home includes access to the entire national at&t wi-fi hot spot network on the go. [ female announcer ] go to the website below and get high speed internet for just $14.95 a month for 12 months with a 1-year price guarantee. that's all the speed you need at a great price. it's an unbelievable deal, so why wait? act now! act now! like he said. ♪ after a brutal session like we had today, i like to search for stocks that were able to defy the market's gravitational pull and rally. take the best performing stock from the nasdaq yesterday, vertex. here is a biotech that vaulted in a single session, rising from

$37 to $58! ♪ hallelujah >> before gaining another $6. that's what we usually associate with a takeover. but it isn't a takeover. you would think vertex got fda approved for a big drug. they didn't! and clinical trials approved, no. all they did was come out with strong interim phase two data, well, well before final approval and the stock went through the roof. it's not like it's a small cap company staking its hope on a single drug. it's a $8 billion company. it's an incredible move, seems to defy logic. even after this move, i think vertex is still worth buying. speculation and i'd love to get a pullback. you have to pounce. you need to know how vertex was

able to rally so hard yesterday. i got behind the stock a year and a half ago because of the company's hepatitis c franchise where they have one drug on the market, two more in the pipe. until yesterday vertex had done next to nothing, only up $3 since i first recommended it. disappointing results on its main hepatitis drug. the company also had this kind of small cystic fibrosis indiana and referendum on kalydeco, 4% of cystic fibrosis patients, very specific gene mutation. as of friday vertex was seen as an ailing hepatitis c play. yesterday, though, it became a completely different company or at least a company with dramatically improved prospects. how could an interim data point from a single phase two study totally alter the way we look at

a giant company like vertex? the new trial for a new cystic fibrosis treatment that's labeled vx-809 used in combination with kalydeco, the one that's already on the market, it's big. cystic fibosis is a nasty uncurable genetic condition. it can make your lungs fill up with a thick, sticky mucous that makes it really hard to breathe, can lead to chronic infections and destroy your lungs. it's a terrible, terrible disease. up until now there's little to treat it. that's where vertex comes in. led to improved lung functions for a staggering 46% of the people who got the therapy experienced major improvement, that's gigantic. this hideous disease takes so many young people.

they raised their price targets, morgan stanley raised them from $28 to $51. put that in the bank. citigroup, that's not going to hold. why did this come as such a surprise? because wall street was skeptical about vx-809. in earlier studies it showed no improvement in lung function. they either discounted numbers or had expectations that never reached the market. when vertex came out with data more positive than expected, it was a game changer. all of a sudden this went from dud to potential blockbuster. howe big could vx-809 be? this is one of the orphan drugs we can't get enough of. there are only 30,000 people with cystic fibrosis in america, 70,000 around the world. they could treat half of them with vx-809 and kalydeco. because there's no other

competition, a drug that could do $7 billion or $8 billion if everything goes right, it's remarkable. it will probably take a year for them to make it through phase three trials, there's no guarantee the fda will approve it but the company is including it in their earnings margins. it reminds me of gilead, a biotech that took off because of its hiv franchise and never looked back. how about genzyme? sold itself to sanofi. and alexion is doing a billion in sales.

this is a riskier stock. i think it's still worth buying on the slightest pullback. even though vertex rallied 55% yesterday and 10% today, i think it's more attractive up here than it was on friday. the new data makes this much better prospects but only for speculation and only on a pullback. if you ever get that pullback. after the break i'll try to make you more money. [ female announcer ] letting her home be turned into a training facility? ♪ this olympian's mom has been doing it for years. she's got bounty. in this lab demo, one sheet of new bounty leaves this surface cleaner than two sheets of the leading ordinary brand. bounty has trap and lock technology to soak up big spills and lock them in.

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time for you to stop hating and learn to love short sellers for what they do best. they lend skepticism to the market. they warn, they give you a heads up. today's actions is exhibit a. let's tick down the list. first fossil. there's no doubt this stock has been a rocket ship. however, the shorts have repeatedly warned they're an accessory business, which is always faddish and would eventually run out of steam. the stock got a 37% beheading. second there's mako surgical.

bulls have tried to analogize it to intuitive surgical. the bears have been wise to this one for a while. as almost a third of the float has been sold short. mako announced a huge revenue shortfall and the stock wore 36% of value. third is rackspace, they've been trading positively along with all the cloud plays, all which turned out some pretty stellar earnings but herb greenberg has repeatedly warned that rockspace will eventually be hurt on having to spend too much money on what amounts to a commodity business. herb is no short seller, he can't trade stocks. he filters through the clutter in order to flag these warnings. today rackspace confirmed herb's worries and the stock was hammered falling 9%.

then it was said a breakthrough drug from dendreon. the shorts perform valuable function. they can make you, me and all of us better investors. stick with cramer. cramer's gone mobile. all this plus cnbc's free realtime quotes. go to mm.cnbc.com. nd we have p. we are going to start with product x. the only thing i'll let you know is that it is an, affordable product. oh, i like that. let's move on to product y, which is a far more expensive product. whoaaa. i don't care for that at all. yuck. you picked x and it was geico car insurance and y was the competitor. is that something you would pay for year after year? i, i like soda a lot but for a change of pace...

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i like to say there's always a bull market somewhere and i promise to try to find it just for you right here on "mad