Transcripts For CNBC Mad Money 20091022

to my world. >> you need to get in the game. >> go out of business and he's nuts. they're nuts. they know nothing. >> "mad money," you can't afford to miss it. whew, hey, i'm kramer! >> welcome to "mad money." welcome to cramerica. other people want to make friends. but more days like today. my job, entertain, educate. call me, 1-800-743-cnbc. when you analyze stocks, you do it rigorously. you look at the earnings per share, you look at the sales figures. you figure out the growth rate. you think about whether it needs the economy to grow. you try to be as scientific as possible to determine a stock deserves to trade higher or lower. but you know what? sometimes we just got to ask ourselves, wait a second, aren't we missing something? are we forgetting the subjective in the desire to quantify and make the process of stocks seem so -- i don't know -- so perfect, so devoid of animal spirits? totally removed from emotion? are we ignoring something that can't be quantified put into arithmetic equation but may very well be a larger a more important component of what moves stocks more than anything else. are we overlooking the man or woman at top, the chief executive officer on what they bring to the table? i think we are. i think we often fail to notice the special sauce. hence, the big mac. which we all know his special sauz in it which has never been revealed to anyone. we don't spend enough time on "mad money" talking about special sauce. that is, who's running the company? who's making the decisions that lead to the business of greatness? so tonight, a little different. tonight we're going to celebrate that genius by exposing the special sauces at the helm of some of the great american companies. and what a day this is to discuss the issue. what a day to celebrate the special sauce on a day when mcdonald's, a key component of the dow jones average -- just a sec, i want 437 calories. i'll leave the 8,270 on the table. when this stock, mcdonald's -- can you have it without a fry? cold. is up $1.17 and it moved and helped pave the way for a magnificent rally that took us up 132 points and brought the averages back to well over dow over 10,000. you see we created this big mackamid to go with so many our other mids from the original beer-a-mid to let's see the oreo-a-mid. how about the 3-in-1 amid. remember the lifter mid? well, how about the fruit cupa mid? because jim skinner, the incredible ceo of mcdonald's did it again. this morning he delivered a huge upside surprise. one that was strong, not only on the bottom line but on the top line. that's earnings and the revenues. because of innovations, new products, new burgers, great coffee, and an incredible expansion world wide. we've met skinner. we've had him on the show. you know he's way too modest to take credit so we'll give it to him, not just on the account of the great estimate beefs but because of the recent dividend. something that i tell you to look for in "getting back to even" as a high yielder makes it so much easier to bring your portfolio back to where it was before the stock market cataclysm. now we may never know what's in the special sauce of a big mac. now, there's no way that i can figure it out burks we do know the special sauce of mcdonald's stock. and it's jim skinner. we have so many ceos who subjectively influence the price of our stocks who give us what is known as a higher price to earnings multiple. how much will we'll pay for a company's future earnings. remember the way we arrive at where stocks might be heading. we take the estimated earnings, that's the "e" of the p/e multiple. we multiply that by the subjective "m,"s "mp" of the p/e and then we arrive at the stock of the price. it's a mathematical equation. it's areth mettic. it's multcation. solving for "p" the stosk of the price requires you to know the estimates and ultimately what you would pay for them and arrivealt the "m" the multiple through the growth rates and plus the economic environment, whether the world's businesses will be expanding or contracting and the "m" requires us to take into account the management's special sauce. the jim skinner part of the equation. for example, how much more are we willing to pay to have jamie diamond at the head of the bank of jpmorgan, rather than for instance, ken lewis who ran bank of america of course into the ground. hey, how about lloyd blankfine, who steered goldman sachs through the shouols. or jimmy cane from bear stearns. sure, the lasting zbraes special sauce, toxic special sauce. couple of rancid white cassel burgers if you ask me. the kind that you find under the dashboard after a real hard night drinking eye mention, after a hard night work. what do we pay for the service of steve jobs at the internet of tsunami apple? jobs leadless innovating company of our lifetime. isn't jobs the alexander grand bell, the albert einstein and the henry ford all rolled into one? speak of henry ford, how about allen mu laically. do we celebrate the man who is shepardizing ford to be the number one automakeer in the world without help the government? what a monumental manufacturer that man is. how can it quantify of what he brings to ford? or what jobs brings to the valuation of apple. which brings us to someone whom we better start considering the greatest merchant of our lifetime, the man behind this fetchy outfit that i am wear, mickey drexler, mallard mickey drexler at j-crew who guide earnings so much higher than i thought they were going to earn today that it sent the stock up $5.75. to $43.49. more than a 15% gain in one day. you know that we've always been believers in mickey. when he turned gap from a nothing into a powerhouse and it's just now paring itself from its departure. in fact we lot of guy and we love him not just because he's money but because he combines something that we find in no other retail execnif this country. he has an eye, both for fashion and for inventory. his fantastic fashion, don't ask me, ask the first lady. and his lack of invent or because he plans it right, leads to great prices with no need to discount. because he has such a firm control over how much merchandise his company makes and stocks in its stores. mickey's kind of like henry ford, without bizarre ante semitic views. producing high-quality fashion for low cost. he's making the modelty of clothes. but then again, he is way too full humility even to take a bow. oh, let's just get something straight here, too, before you dismiss the particular outfit, remember who ♪ hop . >> ♪ hop over plane over l.a.x. with a dream and a car to get on ♪ that's right the renowned stock perk extraordinary and clothes source milley saurus. miley cyrus. not moving my himself like, no. ♪ moving my hips like no the bottom line get down and dirty with the numbers. show us some rigorous analysis. but never forget the special sauce. the management and how we have to be willing to pay up for the like of greatness from mcdonald's skinner, jpmorgan's diamond, goldman sachs's blankfe blankfein. mickey drexler. i think these guys are bankable and occasionally we need to do more celebrating and less d denigrating over here. as much as we love charlie manuel. urban meyer from florida, or pete carroll from usc. how much money have they haydfor you especially of course if the spread's taken into consideration? james in south carolina. james? >> caller: greeting, jim. boo-yah from the state of south carolina. home of the fighting gamecocks and clemson tigers. >> well, i have to tell you something, let's go for the game cooks. you know what they say on their uniforms, it just says carolina. enough with north carolina. just claiming they're carolina. when i see carolina on the jersey i think of south carolina. let's go! >> caller: all right. this is a question i have foup it's one they posed previously on your program regarding panera bread. an increase in agriculture. on commodity prices. combined with an aggressive rise in a major stock hedge. >> right. >> caller: now under these conditions, would you be a buyer of stocks such as panera bread or similar type agriculturally related companies in their universe? >> all right, now just so we know, the leverage between panera and commodities, while it does matter because panera's got that bread is not as much of a driver as we'd think. what makes panera do well is how many people come into their stores, same-store sales, the tickets, the -- to be able to -- you know to get the costs down. so i think you're thinking more of a tyson food where it matter penguins panera, no. it's really a question of delivering the numbers. delivering the service and the food and they do it. let's go to tim in a state that will soon be my adopted home state by next friday, let's go to tim in oklahoma. sooner? >> caller: big oklahoma sooner ba, ba, boo-yah. >> man, let me tell you something you are kindred and i am thrilled to be going down to sooner-land, sooner rather than later my, friend. >> caller: thank you. >> you're welcome. >> caller: hey, i've been watching the earnings reports that have been coming out this quarter pretty closely. and i noticed that last quarter, many of the companies hit or beat their earnings per share estimates but they missed the revenue estimates. >> right, exacto mundo. >> now this quarter, companies are hitting or beating both the earnings per share estimates and the revenue estimates pretty easily. >> right. >> caller: so my question is our economic recovery really happening this quick, or did companies just low-ball their guidance. >> no. >> caller: -- last quarter so they could easily beat this quarter. >> ex-nay on that. not sales and starting to blow await sales. 3m blew await sales this morning. mcdonald's blute sales. these are real numbers and i am thinking this is the real turn. if you want to parent in the usa with skinner, diamond -- can you imagine partying in the usa with blankfein and drexler, and don't forget to pack your special sauce. stay with cramer. coming up, is it time to pull the plug on one i.t. infrastructure play? cramer sentences one unlucky stock in the sell block. plus, can steel serve as a needed resourcement on your portfolio? jim cramer goes one on one with ceo dan aniko. and later can you handle the heat? cramer gets you fired up for a silly, hot, "lightening round." miss out on some "mad money" get your "mad money" text alert today. text mm to 26221 to get cramer right your phone. sometimes the most popular stocks on the street can be some of the absolute most dangerous plays -- >> the house of pain. >> -- take equinox. it's never associated with bear. believe me, eqx. the top-center data name. below its 52-week high of 100. it is up 77% for the year. i'm talking nose bleed and of the 24 analysts who cover it, 15 say equinox is a buy and nine rated a hold of course no sales whatsoever, because this one is loved, loved, loved. these data centers house the actual servers. those are big computers. they make up the internet. these companies own big buildings where they can put lots and lots of servers in one place and keep the servers cool, giving the carriers the servers they need to accommodate the growth in traffica at a lower cost than if the carriers were in their own in-house dat centers. now last night equinox reported a better than expected quarter and now it is acquiring switching dat. the analysts love the number. they defended it. the stock was down in after-hours but you know, what people just bid it up because the analysts were so positive. only down two. we think that we may know the reason that it was down though and we're going to tell you exactly what that is. what the analysts don't see. this is an important lesson about how wall street works. i think the data center business is in decline. yet, like gibbons the decline of the fall of the roman empire, short version. all these stocks especially equinox are in the danger zone. but none of the analysts have noid. wall street research tends to miss important, sometimes industry-killing trends because analysts only focus on their own single industry. the people covering equinox are teleco-related analysts. they look at the teleco-related industry and don't look outside at game-changing trends. i think that there is too much hype going to here. i think there is too much hype and not enough rigor so you know what i am going to do i am going to use a steve miller-like analysis and teach these jokers if not midnight tokers who may be called maurice gangsters of love. and tell why equinox i think belongs in the maximum security wing of the sell block, not with stanford and not certainly with madoff, something heavier. just because i am a gentleman in the tradition of thomas jefferson if not dalai lama, give a new book be "getting back to even." so they can learn some horse sense and securities analysis. you see if any of the analysts who covered equinox had been on the intel conference call last week, i am sure you were they weren't. i bet none of them were because they are teleco analysts. they would have heard the death nail of the data center business. when i was listening to intel, this is what i thought about equinox. intel talked about driving sales of its new foundly -- dp processors for servers. the company said not so much an upgrade psychem that's driving, it is the economics of the data center. people looking at swapping 18 to 9 overgeneration servers for a single serve or a ratio basis. wait, i say to myself, self, swapg eight servers for one new one? hey, self, that got me thinking, who stands to benefit? and more importantly, who's going to be hurt by the changing economics of the data center? what happens when you go from buying eight servers to needing only one? it's hard to find winners, any gain for intel, which i still think is a fantastic buy, although intel's prospects are now offset by the fact that people are only buying one processor from them instead of eight processors but worst hit by far will be the data centers themselves of which equinox is exhibit "a." think about, it all of a sudden you have eight times basis in chais essentially a real estate growth business. growth is bhieshd square footage. the data centers like equinox are able to do with the space freed up by these new powerful servers? sell it into this horrible real estate market? these new compact servers go a long waive making the old data center model obsolete. they could partner with one location. they could keep building out space and servers to keep up with the traffic and right now those are really the only metrics. you see they see the huge growth of consumer internet traffic from new bandwidth. internet tsunami, cell phones, that are smart. they see the growth of enterprise applications software like cramer fave, thestreet.com. their own inside, in-source data centers. a great opportunity for the company to save money by sending their to equinox. now you can swap out one server that according to intel's conference call has the same or better performance, much better power consumption. so it lowers their electricity bill and gives them more flexibility. it's right in the darn conference call. the translation udon't need as many data centers with these new servers and the ones we do will be much cheaper to operate. all of a sudden running your own data center won't be so expensive and being an outsourced data center operator like equinox. to keep up with the growth and traffic, could be seven-ace empty. doesn't sound like such a hot business to me. there is massive technology risk from the new servers. massive capital structure risk, equinox has $1.45 billion in debt. $581 million in cash. if the intel threat is as real as a think it is a lot of space they own is about to become useless. maybe they could use like a "silence of the lamb" thing. remember the storage center they had there? just a suggestion. since intel is the company with the technology and also taking lead and showing us the future of the dat center business. did you know that intel cut the number of its dat centers by half because of these new data servers. at the peak to 70. they're saving $250 million in data center costs. the company's using servers with that new chip based on quad core g tech. now data centers have to spend lots of money cooling their servers. that's one reason they're so expensive to run but cutting down the amount hardware and you also reduce those energy costs. data centers like equinox will soon have all of this extra space in their hands that they will have no idea what to do with. equinox, i think it's more like exodus. that's right, exodus from the outside data center. why equinox snk because of the acquisition of switching data. the company announced yesterday. the one nat analysts all love, love, love. basically i see this as equinox. the analysts say equinox is expanding its network and enhangs its market position. it it doesn't sound like a winner to me. makes them more vulnerable and equinox has less exposure. and that is a genuine secular trend. here's the bottom line on equinox. get out of the data center stocks while the getting is good. get out of equinox. the street may say it's a buy, buy, buy, but i see in an industry that's about to be brought low by technology. so i think that you should sell, sell, sell. brian in arizona? brian? >> caller: university of arizona wildcat, boo-yah, jim. >> we haven't had a wildcat in a month of sundays let alone "lightening rounds." how are you? >> caller: doing good. i was wondering about seagate technology. what do you think of stx for a long-growth tech sector. >> it's a commodity play along with western digital. i used tibdisk drive analyst just so you know. it's in the upswing. a lot of capacity added. i cannot recommend seagate. and the ceo did just buy a lot. i just say there the run but i don't think either seagate or western dig tatare the right to own here pinwant to go to mike in from my home state of new jersey. >> caller: jim, i guy caught in between two shores the delaware and the hudson. we lot of phillies and the yankees. let's be fair about it. >> holy cow. a real solly monnic boo-yah. >> caller: put your avitar hat on. alter-ego guy from way out and talk about dr. jimmy james cramerica. the psychiatric hospital of atlanta city in the hampton's i can't get this thing out of my mind, jim. i can't get the thought of elx, highf a high-tech company with 30 years of existence. >> right. >> caller: $3.77 in cash. >> uh-huh. >> caller: with a souter like broadcom, giving unsolicit the proposal, unsolicited takeover pitches for up to $11.25 trading below that value now and having contact with companies like ibm and the are titans, the big titans that you talk about in the tech field. what am i -- why can't i get the stock out of my mind with the elx? >> because the numbers itself were bad and although they did forecast -- they did forecast a better future. the stock's only of a a dollar from its high. you know what, mike, i'm a believer in emulex. i'd be a buyer here. it's just darn too cheap and i like the tech sectors and i also like your moxie. i like your moxie. i want to sell, sell, sell. sell, sell, sell. and i am a huge buyer of steve miller. you know what you should do with equinox? take the money and run. stay with cramer. coming up, can steel serve as a needed reinforcement for your portfolio? cramer goes one on one with nucor ceo dan demiko on what today's earnings mean for the state of economy on the executive decision. and later the clock is ticking. call cramer at 1-800-743-cnbc. to find out how to fire a way at cramer on the "lightning round." can he withstand your thunderous onslaught of stocks? mad money back-to-school it is our back in session. >> mad money. >> mad money is going back to school. >> mad money is going back to school. >> back to school. >> back to school. >> to the university of oklahoma. >> the university of oklahoma. >> back to school tour at university of oklahoma. >> boo-yah. >> boo-yah. >> boo-yea. >>? f you're a student at the university of oc and want free tickets of the back-to-school tour on october 30th, visit madmoney.cnbc.com. welcome to the now network, population 49 million. right now 1.2 million people are on sprint mobile broadband. 31 are streaming a sales conference from the road. 154 are tracking shipments on a train. 33 are iming on a ferry. and 1300 are secretly checking email on a vacation. that's happening now. america's most dependable 3g network. bringing you the first and only wireless 4g network. right now get a free 3g/4g device for your laptop. sprint. the now network. deaf, hard-of-hearing and people with speech disabilities access www.sprintrelay.com >> today cramerfevre steelmaker nucor reported a better than expected quarter. but the stock still sold off. because the company painted a pretty bleak picture of the domestic steel industry. 19 points per sent surge in steel exports from none other than china has been putting downward pressure on steel prices around the world. there were 32 price cutless in the week beginning october 12th. compared to six, just six, price increases. service center inventories considered them same-store sales for steel were up 3% in september. the first increase since august of 2008. but channel checks from goldman sachs just indicated that the demand for steel slowed very recently while steel capacity restarts have been exceeding demand. as for nucor's quarter the company lost ten cents per share. five cents less know that the street was expecting on a higher than expected sales. was up 1% over the previous quarter. it's cost per ton. through the high cost pig iron that's been plaguing their result. differentiated itself by brilliantly using cheaper scrap steel, not pig iron, for its raw material to make new steel. so we are encouraged to think that the costs going forward are heading down. unfortunately, the company also noted there's a little improvement in real demand for steel. we're worried about the recovery as is nucor and it's terrific ceo dan demiko who was on the show just two weeks ago making a case for washington to start focusing on jobs, or else face the prospect of an extended job loss rover of everywhere anemic proportions. yes, you could argue that dana self-interest want to see infrastructure spending because that would generate new steel orders but we're convinced that dan demiko has a bigger and better agenda that these worried about direction of the country because we're not creating jobs, something that today's worse than expected job claims number, 531,000, really hammered home to me. i won't feel comfortable that we're not having a jobless rover until that number drops below 400,000 or until congress gets its act together start to focus on skbrobs, not health care, or co 2 but it's hard to see that anytime soon. sure nucor would be a big beneficiary. but no one's more aware with what's going to with unemployment than dan demiko. but can't. because the private sector simply cannot do it alone and the federal government is so far failed to do the critical job that's so necessary. if the u.s. is going to merge from this recession in a more profitable but jobless recovery. i may be a bull ultimately on this recovery but i also have to shine the light on the negatives. from what nucor said today it looks like washington's complacency could be causing the jobless recovery. no one's got a better handle on this issue than dan demiko which is why weibringing him back on the show to talk about the state of steel straen the state of unemployment in this great country. mr. demiko, welcome back to "mad money." >> my pleasure to be here, dan. >> first, dan, talk about steel and your company. you were not optimistic despite the fact that we've had people like michael warren, i am sure you respect. ceo last night. saying things are returning for the better. are you spoiler in the party or you are looking at the thing through darker glasses? >> we've always bane firm believer of being realistic and straight-forward about what we see. and that's what we've been. you know we had a significantly better quarter than the second quarter. revenues were up 26%. earnings improved by 78%. shipments improved by 24%. the problem is that that is just getting us to the point where our customers are ordering from us at the rate of real demand and real demand really hasn't changed a whole heck of a lotted. i know michael, he's in a lot of different businesses. >> right. >> he moves a lot of stuff. but when it comes to steel and the raw materials that are needed for steel, things are not moving much forward from where they are in today terms of how we see things for the fourth quarter. one of the concerns that we expressed and we're not the only ones that have expressed it is that fourth quarter typically tends to have a little bit of downward pressure because of shutdowns, customer's plants like the automobile suppliers and also the holidays. and so now that we've got to the point where incoming orders are at the pace of real demand versus a difference between real and apparent and in looking forward, now you're looking at seasonal issues. and on top of that you're getting a rebound -- not a rebound, but a fall-off from things like cash for clunkers. >> right. >> car sales dropped 40% at gm, at chrysler. they were down 12%, toyota. so being realistic about what's going forward, we saw things improve because of inventories being worked down to the bare bones. here we're tied to real demand and we think that's going to be a slow-go. >> dan, i have to tell you, i'm neither left nor right neither democrat or republican. i'm trying to be right double the middle because that's where the country is. you know what, jimmy, you come on there, you say that you need the government's help, come on, be realistic. the government can't do anything right the government didn't help the banking system, should let private enterprise be because private enterprise can create all of the jobs. that isn't true, is it? >> no, if you take a look back at histrit best things have happened when government and private enterprise worked together for the common good and what we have today is the worst jobless crisis since the great depression by far. the real unemployment rate as we've talked before jim is well over 17. approaching 17.5, 17.6%. the news today was not good. and it's going to be a very, very tough pullout of this hole. we're looking to having to create 10 to 15 million new jobs in the next five years just to get back to breakeven. folks in washington, doesn't matter if it's republican or democrat, they're not doing a thing in the way that's necessary for this huge job loss hole to create jobs in in country. i mean, to be talking about 33,000 jobs because of the stimulus or even 250,000 jobs saved or -- that's nothing compared to what we need to do. and people need to wake up to that message and wake up to that fact. >> what would happen if tomorrow president obama, he said you know what, i'm watching this health care thing. it's really starting to drag on and the co2 thing we have to put on hold and we just focus on jobs, what would happen, not to the stock market because i could tell you that would be 2,000 points, what would happen to the attitude of businessmen and businesswomen around country if they heard that from the president. >> the first reaction would be one of -- would be very positive. but like everything else that comes out of washington, again, doesn't matter whether it's republican or democrat, you want to see people start walking the talk. >> right. >> and not just talking. and so we would all feel like, okay, maybe folks should really are going to focus on the important, real crisis in front of this country, in front of the american people. and then we'd be watching to see what was going to be done, what kind of proposals were being made because you know as -- just looking at this as a former engineer and research scientist, i look at the facts. and the facts are all of the major part of job losses have occurred in manufacturing and construction. well, if you want to turn that around, you better focus on some things that are going to improve both manufacturing and construction and the services sector will fall very rapidly along with that. >> well, dan, if i listen to you i say to myself why in the heck should i own nucor? the guy comes on and he's not that positive and the raw costs are now going down because switching to the old scraps' strategy but in the end saying look without a jobs program, nucor is going to be something, not the great growth stock that i always recommended it as as a manufacturing company. >> well, i'm a firm believer that what's good for the country is good for nucor. and at some point in time people will be forced to deal with the real crisis. and as with all downturns they will start to come back, and our history shows at our company going back over 40 years that in every downturn, nucor emerges significantly stronger and more profitable than when they entered into it. and the things that are our teams are doing today are laying the ground work for that just to happen. and when you see what we were able to do second, third quarter over second quarter, in spite of the dismal economy that we're dealing with nucor's going to be at the head of the pack and when things do turn around and they do, then nucor's earnings are going to grow to records that we haven't seen before. and that's the way we look at things. we keep plugging away. we keep doing the right things. we've got a great. balance sheet. we have over $2 billion in cash. our debt to capital's only 29%. we're in the best position of any domestic steel producer to come out of this extremely strong and we'll let our actions and our walks speak for our talk. >> all right let me ask you, dan. i want to know two questions. is your dividend more likely to go up or down and are you more likely next to hire or fire? >> well, first off, we don't layoff people. >> right. >> we never have and the earnings that we've demonstrated and the improvements that we've demonstrated have been without having laid off one person. and that's not going to change. secondly, when you take a look at our dividend, we've been very consistent, and every time you've asked me this i've been very straightforward and consistent, our dividend is going nowhere but up. >> okay. >> and at the present time it stayed flat at levelby have. we have no plans to drop it. and our position, our financial position is such that we have no need to do that. >> okay, i know that the world -- or at least stock world is plagued with the notion that commercial construction is finished in this country. we have overcapacity now. when i look at a skyscraper i see a lot of steel. is this something that will make it so that we'll be hurting 2010 for the steel industry? >> there's no doubt. nonresidential construction is at the bottom. and is in tough shape. no doubt about it. it's one of the segments that's got to be turned around and the credit issues have to be continued to work out. and we need to create jobs through stimulus that have to deal with construction. nonresidential construction is going to be in a tough way for some period of time. keep an eye on the architectural index. that'll tell you when things are getting better. >> architect, which is that, how i do follow that. >> it's at aia and you can go online. >> right. >> and google them. and they will -- they issue a -- an index. and that index is based upon, you know. >> got it. >> agriculture activity. which precedes any order in steel activities. >> dan di mikko. we have to run. you are the best. i am a buyer. dan di mikko i'm a buyer. >> thank you. >> appreciate. that's dan di mete micco, president and ceo of nucor. i think you should buy some. i think that you should stay with cramer. coming up, "the lightning round," cramer takes call after call to give your stock its final judgment. can you keep up? stay tuned after the "lightning round" the great cramerican challenge is on. win a trip to see a live taping of the show, meet jim cramer and even kick off the "lightning round." it is time, it is time for the "lightning round" on cramer's "mad money." rapid fire call, one after another. you say the name the stock. the staff repairs the graphics on the fly. >> hallelujah. >> when you hear this sound, the "lightning round" then over. are you ready, skee-daddy? it is time for the "lightning round" on cramer's "mad money." eric in pennsylvania. >> caller: bada-boo-yah from the university of pennsylvania. >> holy cow, man. i'm loving it. how about we have a penn guy call in. howicked help? >> caller: gilead sciences earnings released expecting a beat. and i can't understand why the the stock is selling off after a double beat. >> the penn quaker's right. eric, you are right. i told people at actionalertsplus.com. i said stop worrying. stop worrying. gilead is a cheap biotech stock. all stocks are in the mud. i think patience will be rewarded. i want to go to tom in california. tom? >> caller: hey, jim, this is tom from sacramento, california. >> oh, boy, i lived at 10th and p, my friend. i lived at 10th and p. >> caller: i want to give you a big sacramento, state capital ba, ba, boo-yahtu. >> let me give you an "a." one of my absolute favorite cities that i ever lived in my car in. >> caller: symbol, abct. >> it's too cheap. it's ridiculous. the momentum, this one i am going to give you a two-fer. i'm not done. cindy in florida. cindy? >> caller: hi this is syndwe a gator nation boo-yah. i was just calling to ask you about bank of america. >> i want to buy bank of america. i think that -- running the joint. we'll see a $20 stock. >> buy, buy, buy. >> buy it now. brian in from mu hampshire. >> caller: from bedford, new hampshire. >> live for your buy. what do you got. >> caller: first off, jim, i want to thank you for not only getting me back to even but since i started watch your program and taking control of my money back in february, my portfolio is up 398%. >> get out of town? i say congratulations. >> hallelujah. >> you're not only back to even you're making big money. what's up? >> caller: thank you, man. i wanted to what about you thought about glacko smithkline. >> glacko smithkline. another drug stock. i like eli lilly because of that run. glacko's had too big of a run. i want to check out tonight's trivia question. which could be related to getting back to even if you want to know, hey, listen, a lot of good quizzes there and stick with cramer. bull market or bear, traders are always hungry for ideas. they find them at td ameritrade. trading's all about strategy. and strategy... is all about information. so i start my trading day... with td ameritrade's morning perspective. that's interesting... or, look at this... i can mine their weekly webcast for ideas. this is what i need. of course, ideas are just the start. so now i can drill down. heat mapping... heat mapping shows me where the money's moving. 2,500 stocks... one quick glance. cold... cold. hot! right there. look at this-- pattern matcher... pattern matcher spots technical patterns, automatically. wow, look at that. look at that head and shoulders right there. it's like pattern radar. pattern x-ray vision. plus, this amazing gadget... called the telephone. i can call td ameritrade anytime and talk trades, strategies. anything. that's where the action is. td ameritrade. built by traders for traders. announcer: trade commission free for 30 days plus get $100 cash, when you open an account. > mistakeningly in retrospect, i tremendoused it and not long after it got slammed when it reported a quarter that missed the street's consensus revenue estimate. issued really disappointing guidance. t it was thought that samsung would slow production. it went down to $5.84 today. it's a 28% beheading. luckily i never put this one in the mobile internet index, but i should have been reminding you to take profits in tri-quid. this is a perfect example of why i say take money off the table when you have the big percentage gains. so now what do we do? it has legacy business with dumb mobile phones. that ain't growing. there's a transition going on that's hurt the ordinary phone side of things. but i don't think the issue justifies the huge drop in the stock practically back to where it was when i first recommended it. plus the korean handset maker cutting back seems to be an isolated one-time incident, not something that can derail the smart phone revolution. i think tri-quin is still surfing the mobile internet sue no, ma'am nationalmy and that means the selloff is an opportunity to buy. the fact is they generate more revenue per phone than smart phones, like iphone. the demand for smart phones is improving. it's improving tri-quin's smart phones, too. and the strength should allow the company's sequential handset to get back in the third quarter. he just recommended people buy tri-quint. i think it's attractive. now, tri-quint's results took down two internet stoke stox down 4% and 5% respectively. both do a lot of business with samsung. after today's thrashing, the concerns about orders are priced into both stocks. i think you have a chance to get the great components much cheaper than you should. they're collateral damage from tri-quint. and since the sue nationalny is maulty year theme, the worst that has is they go down further and you get to buy some more at lower and better prices. here another the bomb line, i wish i had told you to take tri-quint off the table at $8. you should have done that without me. i was piggish. pigs get slaughtered. i think all three of these plays are buys. "mad money" is back after the break. which crossover would you choose? the 2009 top safety pick? the class leader in highway fuel economy? or a 2009 consumer guide best buy? how about all of the above? the eight passenger buick enclave. may the best car win. the eight passenger ♪ yes, you're lovely... ♪ what do you think? hey, why don't we use our points from chase sapphire and take a break? we can't. sure, we can. the points don't expire... ♪ there is nothing for me... ♪ there's no travel restrictions... we could leave tomorrow. we can't use them for a vacation. you can use the points for just about anything. i know... ♪ the way you look tonight ♪ chase what matters. get your new chase sapphire card at chase.com/sapphire. it's another thing to guarantee it. announcing the 60-day satisfaction guarantee when you buy a new buick. if you don't absolutely love it, return it. simple as that. i like to say there's always a bull market somewhere. i promise to try to find it just for you right here on "mad money." i'm jim cramer. still like amazon. and see you tomorrow. next up on "kudlow" isn't the dollar the risky asset that could blow up the stock market? executive comp on all companies? that's not capitalism. and ed yardini on stocks. tonight on "the

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