there is a place for the dow stocks, many high yielders. a place for speculation, for index funds which are another thing the gray beards tell you to do. i'm not against them. i know you're going to do it. let's do it right. ese so-cled experts say to stick with the index fund because professionals who give you the advice presume regular individual home gamers like you are brain dead. and that you are incapable of analyzing the prospects of companies on your own. that's what they think. they don't think you can pick stocks. i'm not sure they think you can pick your own nose. they assume you will do less damage to wealth if you play around in big household names, stay away from speculative stocks and stocks you have never heard of. they say it's okay to own etfs as if they are not crazy sometimes. i'm a grizzled veteran. i have been at the stock game for 30, 32 years. it's bogus. these pros who dismiss speculation are ignoring the human element, the emotional component of investing. a lot of people invest poorly because they aren't engaged.

remember, gold, high yielder, growth stock, speculative stock, geographically safe stock.ck with cramer, and i'll tell you how to pick the best plays in each of these crucial categories. loretta in arizona to start the questions. loretta? >> caller: hey, jim, thank you so much for taking my call. >> my pleasure. >> caller: my question. regarding your suggestion of not investing more than 20% of your portfolio in any one sector, does this only apply to portfolios with individual stocks, or do you calculate in the stocks which are within your mutual fund as well? >> okay. that's a great question. we don't talk much about mutual funds on this show. look, if your mutual fund is diversified in itself, basically you could say, well, why do i even need to pick individual stocks? that's why we have the show called "mad money." a lot of people like to pick individual stocks. i'm not encouraging or discouraging. here's how you do it if you want to. let's keep the mutual funds aside. talking individual stocks. great to have a bedrock mutual fund. i have it in my 401(k) not allowed to

high yielders are attractive but we never reach for yield.y high yield can be a signal that the dividend is unsustainable and will have to be cut. that's why we have to put stocks through a rigorous safety inspection. i'm throwing the red flag. the dividend is sound maybe they can raise it, but if it seems in danger, [ sell, sell, sell ] you have to sell. consider two real household names. radio shack and super value. in the first half of 2012 stocks were pounded so hard the yields were in the stratosphere. in each case the yield was a red flag flag. sending a signal that the payout would be cut. sure enough they eliminate ed dividends and the stock fell through the floor. with super value the ceo told me a year before he cut it that the dividend was safe. what do you look for? first, above and beyond everything else we look at earnings per share. if earnings are greater than twice the dividend payout they can sustain it when earnings shrink. i think you're almost home free. you can't be certain about anything but the dividend is secure. if n

when is it time to sell the high yielders? would be inclined to reinvest the dividends in the winners. sharon, when the high yielders are no longer high yielding you want to sell them. you trim them back. when the market brings them down, buy them. that's the strategy from 2009, 2010 and 2011. it worked and those were some of the roughest years ever. thank you, e-mailers, tweeters. stick with cramer. >>> they say money never sleeps, neither does gym cramer. follow him on twitter. ♪ why not take a day to explore your own backyard? with two times the points on travel, you may find yourself asking why not, a lot. chase sapphire preferred. there's more to enjoy. wanted to provide better employee benefits while balancing the company's bottom line, their very first word was... [ to the tune of "lullaby and good night" ] ♪ af-lac ♪ aflac [ male announcer ] find out more at... [ duck ] aflac! [ male announcer ] ...forbusiness.com. [ yawning sound ] it's got that sweet honey taste. but no way it's 80 calories, right? no way, right? lad

when is it time to sell the high yielders?stock prices weren't so high i would be inclined to reinvest the dividends in the winners. sharon, when the high yielders are no longer high yielding you want to sell them. you trim them back. when the market prings them down, buy them. that's the strategy from 2009, 2010 and 2011. it worked and those were some of the roughest years ever. thank you, e-mailers, tweeters. stick with cramer.

if you pass on high yielders you're giving up 40% of the gains of stocks. that's nuts. notoriously b.i.g. dividends not every high yielder is an opportunity. it's possible for the yield to be too high. sometimes it's a red flag telling you to stay away. maybe the dividend isn't sustainable. how do you have do you tell the difference between a warning and a fabulous money-making opportunity. look at windstream. windstream's dollar share is twice the size. stock was crushed after a slight miss august 9. it's a telco company so look at the crash flow. it's more than enough to cover the dividends. and for years it's been moving away from the old fashioned consumer voice biz to broadband and business customers. can they deliver on full turnaround. let's check with the president and ceo of wind stream, see where the company is headed and find out if we should be skeptical that it will be maintained given the problems smaller telcos have had. welcome back to "mad money." >> good to see you, jim. >> have a seat. >> thank you. >> i mentioned on my morning show that you were goin

when is it time to sell the high yielders?ices weren't so high i would be inclined to reinvest the dividends in the winners. sharon, when the high yielders are no longer high yielding you want to sell them. you trim them back. when the market brings them down, buy them. that's the strategy from 2009, 2010 and 2011. it worked and those were some of the roughest years ever. thank you, e-mailers, tweeters. stick with cramer. >>> they say money never sleeps, neither does gym cramer. follow him on twitter. it's time to change the way we clean. it's time to free ourselves from the smell and harshness of bleach. and free ourselves from worrying about the ones we love. new lysol power & free has more cleaning power than bleach. how? the secret is hydrogen peroxide. it attacks tough stains and kills 99.9% of germs. new lysol power & free. powerful cleaning that's family friendly. another step forward in our mission for health. his morning starts with arthritis pain. and two pills. afternoon's overhaul starts with more pain. more pills.

when is it time to sell the high yielders?f the stock prices weren't so high i would be inclined to reinvest the dividends in the winners. sharon, when the high yielders are no longer high yielding you want to sell them. you trim them back. when the market brings them down, buy them. that's the strategy from 2009, 2010 and 2011. it worked and those were some of the roughest years ever. believe me. it's going to work in the future. thank you, e-mailers, tweeters. stick with cramer. >>> they say money never sleeps, neither does jim cramer. follow@jimcramer on twitter. ddd#1 >>> you just got a dose of dili

when is the time to sell the high yielders 1234. >> when the high yielders are no longer high yieldingu want to sell them. you trim them back. that was the strategy we used in 2009, 2010, 2011 and it worked. those were some of the roughest years ever. believe me, it's going to work in the future. thank you, sharon. thank you, tweeters. thank you, e-mailers. stick with cramer. my volt is the best vehicle i've ever driven. i bought the car because of its efficiency. i bought the car because i could eliminate gas from my budget. i don't spend money on gasoline. it's been 4,000 miles since my last trip to the gas station. it's pretty great. i get a bunch of kids waving at me... giving me the thumbs up. it's always a gratifying experience. it makes me feel good about my car. i absolutely love my chevy volt. ♪ humans -- sometimes life trips us up. and sometimes, we trip ourselves up, but that's okay. at liberty mutual insurance we can "untrip" you as you go through your life with personalized policies and discounts when you need them most. just call... and speak with a licensed representativ

cisco, not a bad yielder. >> not a bad yielder, but also growing slower than it's ever grown over the last five years. government issues are coming, they are cutting back on spending. that's not where i would go. i would start to sell the higher yielding stocks. i took some verizon off the table a couple weeks ago. that trade, if the bond market is over, that's over. >> facebook shares got slammed today as the first of several lockup periods. the stock hit new lows. joining us is the co-head of research, rich greenfield. i know you've been negative on this stock basically out of the gate, but in terms of the lockuppics pierees, we've got a couple of big ones still to come. in october there's 2.5 million shares coming to market. in november there's 1.33 billion shares coming to market. how does this factor into your view of how the stock trades? >> well, this is the baby lockup. >> yeah. >> you said it exactly. this is really the pre-show of what we're going to show over the course of the next few months. remember, the people who got shares today, you know, are the large ipo-selling in

when is the time to sell the high yielders 1234. >> when the high yielders are no longer high yieldingt was the strategy we used in 2009, 2010, 2011 and it worked. those were some of the roughest years ever. believe me, it's going to work in the future. thank you, sharon. thank you, tweeters. thank you, e-mailers. stick with cramer. why should golfers take 5-hour energy? playing golf all day can make you tired. i've been taking the product for about a year. and, after taking 5-hour energy, i feel more energized. i have more energy. you know, i'm not tired anymore after taking it. i was skeptical but i decided one day i'd try it. 5-hour energy works fast. i have the energy to get through a meeting, to get through a workout. it keeps me alert for a long period of time, and keeps me going. on or off the course, play with energy, 5-hour energy. until it's completely clean. lysol toilet bowl cleaner gives you maximum coverage from the rim down to the water line to kill 99.9% of germs. and removes stains better than clorox toilet bowl cleaner with bleach. so if you want to do the whole job,

be careful -- >> all year, high dividend yielders are the ones people want to go into.think it's time to take profits. >> yes, din equities, it's the dividend growers. >> cisco raids 75% yesterday. >> it's a lot in technology, and that's a longer term story. there's still a lot in the industrial sector. it's not broad market exposure we're talking about here. it's really finding the beneficiary yars of the big themes. >> if europe calms down, could you argue for expansion or earnings growth if europe calms down. >> that's a big if. >> look what's happened now, quite in the last two weeks. >> they're getting ahead of themselves. europe is a value trap right now, but the big exporters that switch from the u.s. large caps, potentially first quarter next year, benefitting from a week euro is important to watch. >> see you on the count down in a few minutes. >>> thanks, ten minutes before the closing bell sounds for the day. the market holding on to gains and up now about 83 points. >> would you invest your money with a man whose former firm lost $1 billion in investor funds

i have to tell you there is a trade going where people are selling the higher yielders so you could be sensitive to that. dan in california. dan? >> caller: boo-yah, jim, from beautiful burbank, california. >> it is beautiful. i've been there. what's up? >> caller: thanks for having me on the show and for all you do for investors. >> thank you. >> caller: i want to discuss one you've mentioned in the past, west star energy. >> misunderstood, remember, safety people don't like right now. i think safety never takes a vacation. and that, ladies and gentlemen, is the conclusion of "the lightning round." >> the "lightning round" is sponsored by td ameritrade. [ male announcer ] let's level the playing field. 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. >>> befor

as much as we like high yielders it doesn't work well for master limited partnerships.the pipeline stocks like kindermorgan. they are already tax advantaged as distributions are considered return of capital. you don't pay taxes until you sell the stock which i like. but there is a rule that if you buy too many of them in an account you could give up the tax favored status, pay the irs taxes you wouldn't have paid if you bought the m.o.p.s in a regular brokerage account. same way you can get hit with mortgage backed bonds. reits tend to have high yields. you have to be careful of the mortgage reits. that's the group you want but consult your tax professional about m.o.p. and real estate trusts. otherwise plain old utilities and telcos we like. go for high yields. dividend has to be safe and the company better have earnings to cover the pay out. and we like the consistent track record of raising dividends. great for capital gains that are tax protected. bottom line, a huge part of long-term investing is retirement investing. and put money in a tax favored vehicle like an

i have to tell you there is a trade going where people are selling the higher yielders so you could besitive to that. dan in california. dan? >> caller: boo-yah, jim, from beautiful burbank, california. >> it is beautiful. i've been there. what's up? >> caller: thanks for having me on the show and for all you do for investors. >> thank you. >> caller: i want to talk about one you've discussed in the best, west star energy. >> misunderstood, remember, safety people don't like right now. i think safety never takes a vacation. and that, ladies and gentlemen, is the conclusion of "the lightning round." >> the "lightning round" is sponsored by td ameritrade. >>> taking control of your financial destiny is smart, but why would you go it alone? let cramer be your guide. your sounding board. >> i'm having a hard time with my favorite stock. >> i know you can beat these professionals. >> and your coach on the road to financial independence. "mad money" weeknights on cnbc. . take the privileged investing tools of wall street and make them simple, intuitive, and available to all. distill all that

i have to tell you there is a trade going where people are selling the higher yielders so you could beat. dan in california. dan? >> caller: boo-yah, jim, from beautiful burbank, california. >> it is beautiful. i've been there. what's up? >> caller: thanks for having me on the show and for all you do for investors. >> thank you. >> caller: i want to discuss one you've mentioned in the past, west star energy. >> misunderstood, remember, safety people don't like right now. i think safety never takes a vacation. and that, ladies and gentlemen, is the conclusion of "the lightning round." >> the "lightning round" is sponsored by td ameritrade. [ male announcer ] this is rudy. his morning starts with arthritis pain. and two pills. afternoon's overhaul starts with more pain. more pills. triple checking hydraulics. the evening brings more pain. so, back to more pills. almost done, when... hang on. stan's doctor recommended aleve. it can keep pain away all day with fewer pills than tylenol. this is rudy. who switched to aleve. and two pills for a day free of pain. ♪ and get the all day pain rel

the market you'll see more of a migration back in to defensive sectors which are normally the high yieldersyou have a point and counter point there so may balance each other out. >> yesterday we were talking about the big techs returning more and more crash to shareholders. what does that say about the growth outlook for the stocks? >> tease are mature companies. cisco is not a hyper growth company of ten years ago but if you can get cisco yielding about 3% and intel, another company, intel yielding 3%, i mean, those are attractive payouts. 3% is especially compared to theal tuthe theal terntives and dividends i think very safe dividends and going to be, you know, you're not worrying about those dividend payouts in a year or two down the road. >> 75% hike in the dividend of cisco. thank you. >> thanks. >>> next, we'll show you a stock chart that's got herb's hair on fire and he's got a lot of hair. >> he does. >>> plus, the power of free food in silicon valley, as well. the chef behind the kitchens of yahoo! google and many, many others. [ male announcer ] at scottrade, you won't just find