Transcripts For CNBC Mad Money 20100421

white house correspondents dinner. but i'll just give him a little heads up now. memo to treasury secretary tim geithner let me trade this one to citigroup cramerican style. i think you should hold the 30% stake in citi until the stock hits $6.15, one of my preliminary targets, then at 6.15 what you do is you sell half and you keep the rest to play with the house's money. i mean, you've got to do it. i've got your back. who's been more right on this one? anyway, what we're really looking for are speculative picks that like hban work away from sodom and gomorrah -- excuse me, of wall street. stocks like ford. which we recommended at $4. just like huntington. and now it's at 14. we still think it's a buy. why? because if gm is profitable and chrysler, for heaven's sake, is profitable, then ford, which unlike the other two didn't need government life sxurpt didn't have to go through bankruptcy, it must be shooting the lights out. i mean, it's like look out, lights! plus, with toyota speeding up and falling over, i mean, what are they doing -- falling over and -- let's take that off the road. ford is practically starved for competition. memo to staff. i think we should put the company's ceo, alan mulally, the brilliant turnaround artist who also saved boeing, on the $100 bill. the new benjamin. the alan. now, even though ford sales are way up, in the end this is a balance sheet business. and when the ratings agencies see the quarter next tuesday, i think they're going to go all lady gaga and get on the telephone to raise their ratings. allowing ford to borrow more cheaply around the globe. hey, how about sallie mae? let's take that one while we're talking. we recommended that as 2009 speculative stock of the year like we did huntington bfrk this year. it was at $6.61 on june 5th. it's now at $13.12. that's a 9% gain. we always tell to you listen to the conference calls, and today's wells fargo conference call said the student loan market is red hot. i would have thought people would have put two and two together and realized that will spike sallie mae. but the guys listening in on that wells fargo, they don't follow sallie mae. we do. and boy, i've got to tell you, i think it's going still higher. still, ford and sallie mae have already had huge runs. so tonight we're not looking back. like lot's wife. at the sodom and gomorrah and turning into a pillar of morton's salt. no, we're trying to find the next ford at 4, the next hban at 4. and you know what it is? it's -- ♪ are you ready, skee-daddy? sprint. letter s. because like ford and like hban, it is simply what's become a less bad story. we love less bad stories in cramerica. when sprint reports on the 28th, we think it will show its market share has stabilized, that its losses are lower than investors expected, and that people aren't giving up on it in droves. isn't that exactly what we saw with ford at 4 and huntington banc at 4? exactly. and this one's at 4. moreover, as wells fargo said in a terrific upgrade on monday, it went totally unnoticed because of course everyone's focused on sodom and gomorrah and turning into a pillar of salt because they like to look back, sprint's balance sheet, which everyone was so worried about, again, as they were with ford and h ban, because there's so much debt coming due, will now be able to take care of itself because the cash flow from operations according to wells fargo is going to be so much better than people thought. here's a great indicator of how much room a stock has to run. it's called, and i'm initiating it tonight, my buy to hold and sell ratio. sprint clocks in at 24%. that means of the analysts who cover the stock there are eight buys, 21 holds and four sells. eight divided by 23 -- want to be all mathematical about it. the sell-off is very bearish and only take a couple converts from the sell to buy or sell to hold thatto change that. we never speculate on takeovers unless the fundamentals are fine because if the fundamentals are awful, think about, it you don't want to buy it, believe me the players in the industry don't want to buy it either. but once the analysts become convinced, as we are, that the fundamentals at sprint are improving, becoming less barksd the upgrades and the very possibility of a takeover will make this stock soar past 4 through 5 maybe even to hban's hallowed ground of 6. i don't know about ford's hallowed 2k3wr0u7bd of 14. the bottom line-u may want to convict goldman sachs. you may want to look back like lot's wife and turn into a pillar of salt because you're checking out the sodom and gomorrah news, which is how the seventh-graders in brooklyn view us on wall street. us? uh-uh. i shouldn't say us. i ain't wall street. no way. us, we are looking to the future. we're not looking at sodom or gomorr gomorrah. we don't want to turn into a pillar of salt like lot's wife. we'd much rather help you rake in the alan'ss or the benjaminsy finding the next great speculative investments like ford, sallie mae, huntington banc, and now the $4 stock that is sprint. let's hope we have people who als also want to look forward and don't want to turn into pillars of salt. let's talk to gary in michigan. gary. >> caller: big buckeye boo-yah, jim. >> hey, buckeye boo-yah right back at you. >> caller: i'm calling about the way ak steel is getting beat up. i listened to the conference call. they said second quarter shipments will be 5% higher than first quarter. that's supposed to be a good thing. but they wouldn't nail down second quarter performance since they can't predict the increase in the price of those iron pellets. i know that's vague. but their earnings per share met expectations and they pointed out that in the past they had better profits when iron prices rose. what are they supposed to do, make up the pellet price numbers just to satisfy the analysts? >> chief, i'm throwing the red flag. why? because i think you are being overly promotional and doing some sort of end zone dance on a quarter that didn't deserve it. in true ak steel has lost control of its raw costs not just iron. why don't you go with an integrated player like the letter x or of course my buddy pal dan d'amico at nucor? because you know what i? don't want to have to worry about some hidden ingredient, some special sauce i don't know about, unless i'm eating the mcdonald's you know -- that's different. i like the special sauce there. or kfc. i like the colonel's special sauce. but you know what? ak steel. uh-uh. too many question marks. not enough answers. keith in florida. keith. >> caller: hey, jim, first time. long-time boo-yah toia. >> i'm liking that, sunshine. >> caller: actionalertsplus.com subscriber. thank you for all do for us home gamers. >> that means he subscribes to my e-mail where i send out what stocks i like. and boy-i got out of qualcomm just in time. >> caller: you make this sufficient interesting and educational. that's what keeps us in the game. >> that's the goal. that's why the people from teach for america had me speak at that kings collegiate charter school, because i've got to make it interesting. they don't fear entertainment, education, as long as we're teaching. >> caller: that's right. hey, jim, wrapped up in apple's unbelievable quarter was an interesting discussion about the success of the iphone in china. coo tim cook said on the call that chinese sales were up nine times year over year, revenues were 1.3 billion, which is up 200%. that's pretty impressive even for apple. my question is like you, i recently gave up on china unicom after some pretty lackluster performance over the last year. >> had no choice. >> caller: is this a good time to jump back into unicom given their superior platform and position in the 3g market in china? >> no. and one of the reasons why, as i search for my little red book of mao, is that i have decided that basically china has become completely and utterly uninvestable. the way to play apple, as i used to say at my old hedge fund wir ran $500 million, the way to play apple is apple. and by the way, i have a new one. i want to buy am and short chiropractors. my daughter had ten textbooks in her bag. i had a herniated disc. i couldn't lift the thing. she said give me an ipad, i'll put all the texts on the ipad. they're giving me this thing i've got to go to kevin in illinois p kaufrl how about a big ham pshire, illinois boo-yah? >> why not? >> caller: coach reports blowout earnings yesterday, they announced they doubled their dividend and put a $1 billion buyback on a $13 billion company. it's only got a p/e of 18, and the stock didn't really move on the news. what should i do? >> this one ran into anticipation -- i've got to till, frankfurt, who stood recently right here at "mad money" high noon which everybody liked, by the way. and let me tell you this. i thought the quarter was magnificent enough. i thought the international expansion's real good. i thought the raw costs were way down, but the street says lou just talks his game, he's a big talker. no. what lou does, he puts his money where his mouth is. i think the stock goes higher. i don't want you to be dissuaded by the so-called action if the stock didn't go up. coach is going higher. it tends to go up in anticipation of a quarter. then the quarter comes. it didn't sell off. if that stock goes an ounce below 40, you and i are going to be fighting like the rabbit when it falls off the rails when you go to a really bad dog track. let's go to adrian in new york. adrian. >> caller: hi. happy brooklyn boo-yah to you. >> okay. that sounds good. what's up? >> caller: quick question. regarding cloud computing, is red hat in a good position to take advantage of that, or is oracle a better bet this. >> why are we going to -- come on. when we think of cloud computing, we don't need to go to the darn weather channel to know the answer's mark benioff and salesforce.com. crm. that is the cloud computing play. i can reiterate that from now to kingdom.com. and i think i will. because benioff's real. we've made a lot of money for people. look to the future. don't think like lot's wife, who looked back at sodom and gomorrah slash wall and broad and turned into a pillar of morton's salt. it may have been diamond kosher for all i know. what you really need to do is rake in the old benjamins and the new alans by thinking future, not past. and that means sprint ahead of the quarter, letter s. "mad money" will be right back. >> announcer: coming up, power play. could the smart grid make you some smart money? cramer's finding out in his exclusive one on one with the ceo of itron. and later, nuclear profits? could green energy make you some real green? cramer's going head to head with the shaw group's ceo to find out. on the "executive decision." all coming up on "mad money." aflac is not more benefits at greater cost to your company insurance. aflac is not how do i fit it in my company's budget insurance. aflac is help protect and care for your employees at no cost to your company insurance. with aflac, your employees pay only for the coverage they want or need. and, the cost to you - nothing at all. if all you know about us is... duck: aflac! ...then you don't know quack. to find out why more businesses provide aflac, visit getquack.com. it may be green week on nbc, but green week, remember, is not a reason to buy anything. it's a forum to learn about companies that are plays on green initiatives that have only recently started making us money thanks to the increased focus on the environment from the obama administration. just witness itron, symbol itri, a splay on the smart power grid, a major upgrade of the old-fashioned, 20th century grid that uses digital technology to save money by optimizing energy use. now, we first recommended itron on april 22nd of 2008 during green week. it was then at $100.18. but you know what? we jumped the gun. the stock is now down 24% since then. that's us being babies. while in comparison the s&p 500 is down 12%. we were too eager at the time. it wasn't until the obama administration started pushing for a smarter, more efficient power grid that itron gave just right, and that's why it's given us a 35% gain since we recommended it on october 19th at $56.78. now, that's much better than the 10% increase in the s&p over the same period. so the question is green week aside, has itron run too much in does it still have room to run? now, i think the answer could be yes. especially given that obama just decided on october 27th to spend $3.4 billion worth of stimulus money on grant awards that will spur the transition to a smarter energy grid. it could take years and years before we truly get a smart grid. but itron is a play on the early stages of the move. the company's the dominant player in smart metering with a 50% market share for installed automated meter reading in the u.s. and canada and 30% market share worldwide. smart meters are the first step toward a smart grid. they allow the power company to remotely connect to and read yur meter so that someone doesn't have to calm round in the truck once a month, give the utilities the ability to collect data at hourly intervals, something that's crucial to their ability to monitor and manage power usage. these meters work for water and gas utilities too. the company also has more sophisticated products capable of collecting detailed usage data that have two-way communications capability. meaning the utility can send information toyotas customers through the city as well. itron's been winning contracts left and right. the big advanced metering wins in australia, uk, sxindia. the company shot the lights out when it reported its most recent quarter earning 82 cents per share. that's 22 pents more than analysts in wall street expected on a 10% year over year increase in revenue. itron reported its second quarter a week from today, and we want you to have a better idea of how this company works before we see its report card. it's going to be really, really interesting because the stock's at 20 times next year's earnings but has a 30% long-term growth rate. does the stock have more room to run? let's hear from itron's ceo malcolm unsworth to learn more about this company, the smart grid and smart meters. mr. unsworth, great to have you on "mad money." thank you, sir. >> thank you, jim. >> where are we on the adoption here? where are we versus where we could be five years from now in terms of the smart grid and are we behind or ahead of other countries? >> i think we're significantly -- the united states is significantly ahead of the rest of the world. the thing we don't have in the united states is an energy policy. and if you look at what we've got in europe, for example, there's a smart -- it's an energy service directive that mandates smart metering by the year 2020. and so they do have this mandate in place. and there's approximately 145 million electricity meters in europe that need to be replaced. when you think about where we're going, though, from our company standpoint, it's not just about electricity. it's actually about water and gas. and if you think about some of the new products we've just launched, we've got a gas ami solution we just laushd, and we've also got our a.m.i. gas solution. so it's not just about electricity. even though with electricity there's about 3,400 customers in the united states that we can sell to. and so -- >> well, let me -- >> sorry. go ahead. >> let me understand. obviously, the market can be big. the companies that have to pay for this are utilities. now, a lot of the utilities in our country say they're strapped, they can't -- you hear constantly moaning and groaning from the utilities. are you able to demonstrate a very quick payback to them so it's worth it for them to continue to install your product? >> the payback period that we used to have with amr, which was just one-way communication, really was in the neighborhood of about, you know, five years. if you start looking at the solutions for a.m.i., you know, one of the contracts that we've recently received in california showed that the biggest reduction of improvement was going to be demand response. so yeah, you can get efficiency improvements through, you know, improving -- reducing meter readers, but at the same time if you have demand response you can also, you know, justify a business case by having less generation capability, or capacity that's needed. so what we've done is that we've developed these solutions called open way technology that allows and provides more information to the consumer so that he can actually do something with this information by providing information on an hourly basis or on a 15-minute basis in texas. and they can do something. and once they do something, they'll reduce demand, and that allows them to do a better business case. >> all right. do we -- do we need the federal government money? if the payback is so quick, why do we need the government subsidizing it further? >> well, the four contracts that we initially signed, we've got contracts for about 14 million meters. they were signed initially without stimulus money. so they went forward with their public service commission and got approval. but there's 400 applications that went through with the department of energy. and 100 actually grants were awarded. there's about 40 of those have recently been signed. and that's up to $200 million. one of the customers that we've contracted with is actually going to accelerate from a four or five-year deployment down to a two or three-year deployment. so stimulus money is actually helping bring that forward. absolutely. >> i guess you mentioned water and gas. what's also apparently helping is the epa has cracked down, too. right? they're a great stimulus for your orders. >> yeah. epa have started to move some -- started to move some money around. they had in the neighborhood -- there was $6 billion of stimulus money that went to clean water. clean water and drinking water. 4 billion for clean and $2 billion for clean water. and so that's significant for us because there's a lot of utilities -- or a lot of water utilities in the country and many of those have been distribute -- that money's been distributed throughout the states. and we're seeing some movement with our water customers to conserve water. now, especially being, you know, it's earth day i think tomorrow. >> right. >> and one of the things we do believe in is our products and technology will conserve water and actually reduce emissions. >> excellent. >> so it's -- yeah. >> well, mr. malcolm unsworth, president and chief executive officer of itron, you've got a great story. it's a multiyear story. i wish we'd gotten on it when it was lower and not the high point. but you have a terrific one. i see multiple years of great earnings. thank you so much for coming on the show. much appreciated. >> thank you very much, jim. >> you've heard malcolm unsworth, president and chief executive officer of itron, itri. yes, 52-week high. do i think it can go higher? the answer is absolutely. after the break i'll try to make you even more money. >> announcer: coming up, nuclear profits? could green energy make you some real green? cramer's going head to head with the shoe group's ceo to find out on the "executive decision." and later, can you handle the heat? cramer gets you fired up for a searing hot "lightning round." all coming up on "mad money." it's green week here at nbc. but you know as your investing coach my job is to try to help you make money, not help you pick stocks that let you feel good about yourself for saving the environment or retirement. however, there's some overlap. high-quality stocks that also happen to be green as long as you're willing to expand your definition of what's good for mother earth. take nuclear power, long been my favorite source of power. environmentalists tend to still hate nukes. but building more nuclear power plants is one of the best ways to reduce greenhouse gas emissions. nukes have none. and unlike natural gas, you know i like it. another great way to cut emissions, nukes have the backing of president obama, who tripled the amount of money authorized for loans to construct new nuclear plants in the federal budget from 18.5 billion to 54.5 billion. that's a commitment. and that's why shaw group, s hfrks-a-w, aka the stock formerly known as hg. r, ex- -- huge power plant building business is one of my favorite stocks, and you've long since known that. it also happens to be green. shaw is up 16% since i last recommended it august 20th of 2009. it was at $32.57. more importantly it is up a whopping 194% since we heard from the company's ceo on november 18th of 2008 during the depths of the crash when shaw had been knocked down to $12.86. he wanted to come on. i wanted him on. i'm talking bankable. now, two weeks ago on april 7th shaw showed a terrific quarter. very solid. it beat wall street's consensus earnings per share by a penny. orders were down 28%. but that was expected. the company said it expects activity and orders to pick up in the second half of the year. more important here's a stunner. shaw's backlog, key metric as you know that i think for all engineering construction companies, all infrastructures, came in at 21.3 billion. that is huge. remember, shaw's only a $3.2 billion company. then you've got to factor in the company's gigantic cash position. $37 stock. 1.65 billion in cash. that's $19 of cash per share. half of the darn share price. something's wrong here, right? means the company has a lot of options. right now shaw's doing work on ten existing nuclear react orz and the power business could be a major source of future up side as the nuclear regulatory agency expects to receive -- the company also sees $10 billion opportunity for scrubbers and fossil fuel based on the power plants over the next five to ten years. shaw is one of our favorite nuclear names and we want to know what this company's future looks like especially given all the cash it's sitting on, which is why we have jim bernhard, shaw group's founder, chairman and ceo here with us night. mr. bernhard, welcome back to "mad money." >> nice to see you again. >> did you ever make a lost money for us last time you were here. >> only if you sold, right? >> yeah. now, i've got to tell you, i'm bummed because i am a huge believer in nuclear power. i also chose to live exactly across the street from a nuclear power plant when i lived in sacramento. hasn't done a thing to me! no, i believe in the power. here's the problem. we got that big commitment. couple permits, five, four, nothing more. what's the problem sneer why didn't we immediately see ten utilities raise their hands and say i'm in? >> we don't ever see ten utilities say i'm in to build ten coal plants instantly. >> that's true. >> first of all, you've got to have the need for electricity, right? >> right. and -- that's a good point. >> and when you have the recession down, that gives it the -- especially regulated utilities take a step back and say wait-k we wait six months or a year because the economy's down and our projections are off for neefds electricity? and then the second thing is we always look to the united states to -- that's the whole nuclear world. that's not the case. we're doing 40% of our nuclear plants, four in china. uae's on the way for a big nuclear program. and today we announced we -- >> saudi arabia. >> saudi arabia to take 53 plants and modify those, which is huge. and the king announced at the same time that they were going to go ahead and build nuclear power plants as well. so we look at the mideast, we look at the uk, we look at braz brazil, we look at other parts of europe building nuclear power plants. what's good about what we do is we're in the engineering construction business with nuclear technology that trafltz. not only are we -- have to have something in the united states. we're able to be competitive worldwide on nuclear energy. and that's really the growth of the stock over the long term. >> also, i think we want new plants built but this business of modifying, explain that. people see a nuclear power plant, they figure listen, it runs for 30 years, you don't have to do anything to it. between now and 2014 you've got a lot of just add-on business, right? >> what we're doing is technology has improved and we're operating nuclear power plants. in other words, with some modifications 250 million, 500 million a plant, they're able to produce more electricity. i mean, that is going to be a huge market for us because as you know, almost half the nuclear power plants in the country we do the maintenance and modifications already. >> it's huge. >> so this is a huge part. so we're able to, you know, say, get more horsepower out of an engine, get more megawatts out of a nuclear power plant. and that's what we'll be doing on metrofits and upgrades. >> last time you talked about there's still some coal plants being built. we had the sierra club executive director saying there were no new coal plants started in 2009. where are we with coal in your business right now? >> we have three coal plants under construction right now. he may be factually right on no new coal plants started in 2009. but there's between 25,000 and 50 megawatts of existing coal plants that are waiting to be scrubbed, waiting for the new regulations to come out. >> everyone's waiting for the regs. ? three things are going to happen with those plants. one tharks going to be shut down and a new plant will be built because you need the electricity. two, the air will be cleaned up. or three, they're able to convert these existing coal plants to nafrp gas plants in certain areas. so either way it's 300 to 500 million dollars for -- >> you can do the conversion to nat gas? >> absolutely. so if they take them down and build a new one, we're there. if they scrub the gas -- air, we're there, and if they convert to gas we're there too. it's just an opportunity. we just need the regulations to come through. >> when you were on last time and the stock was selling at the cash position i asked you point blank what's wrong? and you said the stock is just too cheap. now i ask you, given that backlog, which i think's pretty ironclad, even the bears have to admit that -- they always said you put too much in backlog, no, you've got a solid backlog. given that backlog, how can a company be 3 billion and have a backlog that's multiples of that? it doesn't make sense to me. >> i think i said last time valuation i don't understand and --? hey, i did a little cramer spin. you know what i mean? >> this gives us huge opportunities. i mean, we have a solid backlog. our cash flow's solid. our projection of cash is increasing this year. $2 billion by the end of the year. so it gives us the opportunity to do something with the business that maybe otherwise we wouldn't be able to do. so we're in great shape. >> i want you to go back over because this announcement was big and i gave it short shrift. this multiphase contract with saudi -- first of all, the first thing i think of when you talk about the saudis, is they have all the oil in the world, why do they even need someone like shaw to come in? talk about why you get a contract like that. why does it go to you? why does it not go with a big european or asian company in. >> i think they went with expertise. fuel plants, oil plants, natural gas plants and coal plants in saudi arabia. they want someone to take a look at them all, make recommendations how to produce more electricity and more importantly how to comply with the environment. >> they care? >> absolutely. what i think the most amazing thing is is saudi arabia, uae, kuwait is in the process of building nuclear plants. so if someone in that area of the world with all the oil and gas in the world to convert to electricity chooses to build nuclear power plants, that kind of tells you where they think the future of oil and gas is. >> unless we're talking iran. they may have an ulterior motive. it's not a political show. if it was msnbc, we'd be talking o'mostly about that. how about china? china builds a nuclear power plant, how many times a year do they start a new one? >> well, i say that coal is still predominant in china and nuclear plants, we're going to participate in the new ones that are coming up. we have four we're doing right now. we'll be finishing end of 2013. so you know, they're all well under way, and it's interesting in the united states, when are we going to start these plants? >> right. >> we have 1,000 people at two different plants in the united states working on construction. spend over 1 million man-hours on each one of those plants. we're well under way. >> that's the last question i want to ask you because i know we're running out of time. if the president wanted to put people to work, you're the kind of company that can do it, right? >> compared to wind and solar, 3500 people on the peak of these plants is tremendous. in fact, we're hiring today. our plan calls for us to hire 2500 people this year. currently we have openings for over 500 craftsmen and in excess of 1,000 professionals. so -- >> they're watching the show. how do they get in touch? >> they go right to our website, shawgroup.com and it's right there, a listing of over 1,000 professional openings today. they can click on there and send their resumes. it's really user friendly and we hope they will. thanks for the plug. >> jim bernhard, chairman, president, ceo shaw group, more importantly a guy who's made you a lot of money. thank you so much for coming on the show, sir. really great to see you. stay with cramer. >> announcer: coming up on the "lightning round," the market's top mind goes high octane to put your stocks to the test. and later, whether the dow soars or hits the floor, jim tries to help you stay on steady ground with "am i diversified?" all coming up on "mad money." it is time! it is time for the "lightning round" on cramer's "mad money." what's that about? that's rapid-fire calls one after the other. you say the name of the stock i tell you whether to buy buy buy or sell sell. just to be clear i do not know the callers or stocks ahead of time. my staff prepares the graphics on the fly. we play until we hear this sound. [ buzzer ] and then the "lightning round" is over. are you ready, skee-daddy? it is time for the "lightning round" on cramer's "mad money" and i am starting with george in florida. george! >> caller: ba-ba-ba-ba-ba-ba-boo-yah, jimbo! >> wow. is george playing or is he -- is he sleeping or playing? the answer is he's playing. ♪ hallelujah hit me! >> caller: i want to ask you about netflix, nflx. >> here's the classic situation. everybody hates netflix on wall street, but those of us who are subscribers, we know better. we know it is genius and the way they're streaming it is brilliant. the stock goes down on their report and then it reverses. why? because the quarter was great. it was the shorts leaning on it. i am a buyer! i say pull the trigger. take it to -- that's authentic wall street gibberish for $100. adnm new york. adam! >> caller: cramer, boo-yah. yankees. >> they're fine. the yankees -- out of deference to you, clown, here, i'm wearing one. >> caller: listen, quest diagnostics. i love the sector, i love everything about the stock. >> you know, again, it's health care. i saw the quarter. i like the quarter. the stock sold off. i think because once again everybody is now trying to reconfigure what a company is worth when we get health care legislation. and we've got it, so it's too hard to read. i can't make a decision on this. stay away. i'm going to ellen in north carolina right now. ellen. >> caller: hi, jim. boo-yah. come down it north myrtle beach for shagging on the sand weekend with me. >> whoo! >> could you say that again? i have a problem hearing. >> caller: okay. we're having a shagging on the sand festival in north myrtle beach this weekend. and would love for you to come down. >> all right. you know, i happen to be doing nothing on the next 42 consecutive weekends. so let's just pick a date. meanwhile, let's do some stock work and then we'll go offline and get that thing going. >> caller: okay. it's pioneer natural resources, txt. >> well, sure enough you have horse sense and it's not just because i like your idea of the beach -- the hag -- shagging meaning like shaggy from scooby doo. you're speaking scooby doo. right? but the stock has run so much i would like you to swap out of that one and i want you to get into anadarko because i think you've had such a win i don't want you to lose that gain. you've got too much good taste. laura in my home state of new jersey. laura! >> caller: hey, jim-bob, how are you doing? >> not bad, man. i'm doing some shagging on the beach in atlantic city. what's up? >> caller: well, boo-yah to ya, mister. >> absolute. >> caller: listen, i want to first humbly thank and congratulate you on apple's second quarter earnings. i'm a very happy girl today. >> thank you. we nailed that son of a gun, didn't we? ♪ hallelujah >> caller: and you have reaffirmed and instilled the confidence in me to hold on to that thing and i've held on to it since $125. >> you and sid at the newsstand this morning. he was giving me a high five off apple. he got it at 80. let's make more money together. come on, jerseyite. >> caller: i love it. but that's not why i called. i called because i need to add to my son's college fund because he's going to harvard. >> going to harvard? >> caller: going to harvard. he's following in your footsteps. >> me, thoreau, we're all there. what's up? >> caller: i need to know about emc corp., symbol emc. >> i've got to tell you something, you want to pay for harvard, you buy emc. i just pulled the trigger on a lot of it for my charitable trust, actionalertsplus.com. and let me tell you something, that was a smoking good quarter, and its subsidiary vm ware a good quarter. you have horse sense, and i congratulate your son [ buzzer ] for picking my alma mater. he will be a standout like you are. congrats to everybody. let's go to terry in california. terry! >> caller: hey, jim. boo-yah from sunny california! >> man, i got beaches all over the place i've got to get to. how can i help you? what's up? >> caller: hgsi, human genome. i sold off on the flurry of sales and i want to know if i can buy it back. >> you know, terry, i've got to be honest with you, even though it's a $20 stock, in the end -- let me get the right price. it's a $29 stock. it is still speculative. it is like dendreon. i will embrace it like i embrace dendreon. but do not count it as your health care, do not count it as your drug. i want you to count it as your spec. and in that case i will bless owning the stock and not giving you the buzzer. but you know what? they're giving me the buzzer. and you know what that means? it means the "lightning round" is over! when i tell you i think you should own a stock it doesn't mean you should throw all your eggs in one basket. even if you're almost positive it will go up. like how much do i love apple, right? but no, i don't want to hear you just own apple. i won't have any of that because diversification's the only free lunch, especially one day when this market starts going down again. that's why we're playing "am i diversified?" what's this? you call me, you tell me your top five holdings and i tell if you your portfolio's diversified enough. maybe you need to make it up a little. let's start. who's our first caller? justin in north carolina. justin, what have you got for me? >> caller: boo-yah from the triangle. >> oh, man. the triangle of intelligence, intellect, and integrity. what's up? >> caller: loving the show. loving the market. just loving it all. >> thank you. >> caller: all right. am i diversified? i've got apple, verizon, bp, camden property trust, cpt, and >> i was writing something. i was toying with an essay for street.comtoday to have a perfect mix between growth and dividends. i'll have justin write the article. look at what he has. boo-yah is our finest gross stock of our generation. bp is the classic combination of new growth, that's why i own it, it's starting to grow with a fantastic 5% yield. verizon, it's struggling but can you imagine when they do the boo-yah and make the iphone for verizon? you know that's going to take off. waste management, mr. steiner has that combination of growth and dividends. camden living, the dividend is good. this is perfection to have a waste company, an oil company, and a -- sometimes i get jealous. i wish i could own stokdz fcks y person. let's go to pat in california. >> caller: big booyah, jim! from an older stock market voyeur and a new listener. >> wow, i love voyeurs and new listeners. first time, maybe not long time. let's go. >> caller: i've had ibm stock for years. purchased as an employee. then i wound up with ten shares of met life distributed to me as a policyholder. >> exactly. a lot of people got that stock. >> caller: yes. and i'm thinking of adding coca-cola, time warner and kohl's and i wonder if that would be a good diversity. >> here we go. ibm, i went over that, good technology. there was something in that coca-cola, they reported 20 #% earnings growth and yet there wasn't -- that was a beat killing. more on that tomorrow. met life they've gotten it together. they made a great ak with acquisition. i wear kohl's stocks. why? they have a deal like you wouldn't believe. you can get three -- trust me. time warner cable, they are on fire. we have a cable company, retailer, an insurance company, a tech company, a soda company. that is total and utter diversification. does she rock? the answer's yes. we're taking another call. oh, man, we're giving you a boomer sooner too you sheryl. sheryl from, oklahoma. >> caller: jim, what an honor to get to talk to you. >> same. >> caller: you have been so good to me. the past year. >> thank you very much. >> caller: i want to thank you so much. and i'm calling about my gra grandkids' account i started for them. >> let's go to work for them. >> caller: i want to tell you i didn't do what you recommend and i didn't hear you recommended it until was too late, but i chose them five stocks. they only have 30 to 50 shares in each one. so, i've chosen for growth, but i started out with just $2,000 and their account is now worth $3,400. >> see, this is what it's about, ladies and -- this is why i do the show. someone said the other day, jim, you're 55, my actual age, come on, you're getting tired, weary. it's enough already with the show. and i said, no, it's never enough because of people like you. let's take your portfolio. let's go. >> caller: okay. i have for them bank of america. >> bac. >> caller: ford common. i bought their ford for them at $5. >> smart horse sense. well done. stock's at $14. go ahead. >> caller: cig, the brazilian electric company. cloud peak. >> everyone laughed at us. but there was no travolta here. go ahead. >> caller: and electronic arts. >> very interesting. listen to what she said. started with a small amount of money, immediately made money. that's the way money is made in this company. this isn't about wall street. this is about great companies, great ceos. cloud peak is that coal company i told you that was going to do well with the clean coal. electronic arts, they preannounced twice, before where i recommended them. cmig, i want you to switch to cmec, a brazilian utility. that's perfect. well played. everyone did a terrific job. i applaud everyone. you know what, here's where i think everyone really lives. >> house of pleasure. >> and stay with cramer! always bull market somewhere. i'm jam cramer. thanks to the viewers tonight. i liked boo-yah. i'll see you tomorrow. hedge fund manager john paulson thinks there's a v-shaped recovery. big bank stock got clobbered. will the derivatives bill hurt chicago and a new $100 bill. tonight on "the kudlow report," an exclusive john harwood interview with president obama and the number one senate democrat majority whip dick durbin will give us an exclusive interview. we'll talk fin regular, back attack. john paulson, who shortage mortgages correctly and is now touting a v-shaped economic. he must be watching our show. the new derivatives bill will clobber new york and oobeboost chicago. finally, a brand new $100 bill, a counterfeit c-note benjamin for you, or is it for the chinese? fasten your belts, "the kudlow report" begins right now. good evening, i'm larry kudlow. welcome to "the kudlow report" where we believe free market capitalism is the best path to prosperi prosperity. president obama spoke with john harwood. and john joins us now from washington wash with the lee tails and key clips. >> reporter: i talked about all the issues surrounding financial regulation with president obama at the white house this afternoon. but one issue really stands out over the last few days, and that's the question about goldman sachs and the s.e.c.'s case against goldman sachs. some have raised the question about politics. mary schapiro, appointed by president obama, put out a statement saying they acted without regard to politics. let the chips fall where they made. i asked the president if there was something fishy about the

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