who are purveying the eve of destruction line today. to those who keep going back to the buffet of horribles that caused today's sell-off. yes, a buffet. because the shorts and the panic sellers pick and choose from a variety of reasons for knocking down this market. all right. so let's go over the disaster menu. okay? first it's the chinese, communist government tightening. trying to induce a slowdown. and that's making people worry that the asset bubble in the people's republic is being pricked. a big reason for -- a big reason for the selling in the industrials and the raw materials plays that sell to our friends in china. my chairman mao book. you're probably asking the same thing over there now. second it's the endless drum beat of concerns in europe, worries about portugal, worries about spain. they've created an entire cottage industry of sellers who are now afraid of france, holland, germany. hey, why don't we throw in luxembourg? how about the azores? scotland. good scotch. switzerland. monaco. where prince albert's in a can and they'd better let him out. with the potential sovereign debt downgrade in spain, zapatero, the country's prime minister, has replaced zorro as the nemesis of the establishment. and we're all acting like sergeant garcia! there. anyway. i say viva zapatero. a darn good movie. it still holds up. although not as good as brando's work in "one eyed jacks." then there's the mining tax in australia. oh, man, is that ever scary. they might as well tax hedge funds given how many managers own these australian natural resource companies. fourth item on the buffet, the decline in the price of oil. back to where it was causing -- >> sell sell sell sell. >> -- a repeal of that sector's parabolic move, which is serious given the fact the group makes up 12% of the s&p. fifth, we've learned that washington is about to turn the banks into a bunch of bailey building & loans. again, i have no choice but to refer to the master. mcguire's ode to destruction. ♪ yeah, my blood's so mad ♪ feels like coagulating ♪ i'm sitting here just contemplating ♪ ♪ i can't argue with the truth ♪ it knows no regulation ♪ handful of senators don't pass legislation ♪ >> handful of senators don't pass legislation? who can make this stuff up? i couldn't have said it better myself. prescience. there's the full-blown rotation out of the industrials partially driven by the fact that 3m, caterpillar, united technologies all reported good numbers, the estimates for the group might be too high. something emerson proved today with its terrible quarter. i happened to have been in emerson thoreau's room my freshman year at harvard. i mention that for no reason whatsoever. we've got worries about terrorism after that failed car bomb in times square. took me two hours to get through the holland tunnel today. how about the apple antitrust investigation, which seems to me to be totally they are too powerful. it's one of those, right? the government says they're too powerful a la the investigations into intel. i'm hearing that the restaurants are too high. the retailers' numbers are too high. that's 9 on the buffet of horribles. maybe it shouldn't be a buffet of horribles. maybe it should be a salad bar of horribles without the sneeze guard. and who can forget that the housing tax credit's now gone? look out below! some of these things like the world-class contagion are just going to have to play out. you can't rush them. they're train wrecks that make stops as they demolish train stations and you have to wait until each one is through because know they can't be stopped and you'll be treated to endless news coverage as though it's the end of the world. some sort of michael crichton movie. can't give it a z pack. can't give it a b-12 shot. and you can't own the european banks. but that doesn't mean there are no opportunities to make money out there. so let me give you a double guide for dealing with the non-stop eve of destruction rhetoric. kind of like the aptly named dawn of correction by the spokesmen, which counter mcguire's downer tune. you want to be a smart trader, you can buy into this kind of panic. but here's how do you it. you wait till tomorrow mid-morning when the sangria hangover and the iberian tables are cleared. then pick up the fare that won't go bad the rest of the week. what to buy? first the drug companies are very cheap right here. witness pfizer and merck actually up today. we like abbott labs, a stock my charitable trust bought right in the middle of the downturn because of its great growth, its bountiful dividend not to mention a stock that's become ridiculously cheap. number two, you can buy the foods, especially general mills, as ken powell, the company's great ceo, wouldn't split the stock unless he's comfortable. hey, you can buy perrigo as a knockoff food and drug play. works fine for me after that great quarter. three, dividend plays. remember nrgy, the propane retailer? report aid good quarter today, yielded 4.7%, nothing to sneeze at. fourth, the oil spill in the gulf and the coal mine explosion in west virginia spell no drilling and no mining which mean those new marcellus gas plays i'm talking about. atlas energy and fuel gas. remember i brought the nfg on? they were really good. fifth you can own the utilities. capacity utilization's going up in the country. check out duke's earnings today. how about dominion? number 6. nike works going into its first analyst meeting in three years tomorrow. seven, you can fall back on the biggest earnings beat a la starwood, symbol hot, which we talked about yesterday. i'll have more on that front later. eight, walmart and costco have both done nothing during this whole rally because they're too consumer staple-oriented. yet i see good quarters ahead. notice costco was up today? that's what people are rotating to. nine, people are forgetting some great specs. sprint had a great quarter. that's a mistake. hey, how about motorola? don't forget it. and ten, you have a longer-term investor-oriented view, longer term, you can pick at some industrials that reported great numbers. and here i'm thinking about 3m, boeing, or dupont as all are just beginning to shine. here's the bottom line. try to tune out the bears who are belting out barry mcguire's "eve of destruction." don't be panicked by the buffet of horribles. there are still opportunities to make money in this market. if you're an investor wait until tomorrow mid-morning and use the panic to buy. if you're a trader think dawn of the correction and play the ten short-term rotation gambits. and if you're an investor go with the best beats with entry points you wouldn't have dreamed of getting as recently as five short days ago. let's go to harry in new york. harry. >> caller: brutal, brutal boo-yah, jim. >> man, i'm liking that. real downer boo-yah to start the show. come on, let's pick it up. let's pick it up. taser me. oh, that's what they do to fans in philly. go ahead. >> caller: on april 20th the deep water horizon exploded, and understandably since then reagan bp have been just hammered. but why has bpt, the bp prudhoe bay royalty trust been tarred and feathered also? >> that's a good question. i don't think that's right, frankly. i don't think that's right. you know, to me -- it's only down a few points. i think it's terrific. i saw it down. at one point they were trying to open it down four. this thing, by the way, has traded erratically, well before this incident. i like it. let's go to glenn in penn. glenn. >> caller: yeah. >> speak to me, glenn. hey, glenn, you're up. >> caller: boo-yah, jim, from the sweetest place on earth, hershey, pa. >> oh, my. we like that hershey stock when everyone was giving up on it. what's on your mind? >> caller: thanks for your neverending great information, education, and fun. >> thank you. >> caller: where do i get my cramerica passport? >> issued. and valid in arizona. go ahead. >> caller: a friend of mine told me that if i really wanted to make some money i should invest in the exotic oils contained in various consumer products. >> right. >> caller: exotic oils are what differentiate the taste of brand name products from their generic counterpart. and their costs keep rising. >> give me a name here. >> caller: like listerine. >> no, that's -- that's not going to work. and anyway, that's owned by a larger company. i don't think we can do exotic oils. i don't think we can do perfume after that estee lauder call. i didn't like it. we've got to stick with dividends, stocks that are being rotated into. even a stock like j&j. unbelievable. haven't recommended that one in ages. as the dow tumbles 225, i am telling you it's not the eve of destruction. stay smart. buy into the panic mid-morning. and stick with cramer. "mad money" will be right back. >> announcer: coming up, lots of companies beat this quarter. all this week cramer's got the stocks that could be winners all year long. tonight, with housing sales on the rise and inventory shrinking, are the home builders now ready to run? cramer's got the play on a special edition of "off the charts." and later -- >> domino's pizza crust to me is like cardboard. >> we changed everything. the crust, the sauce, the cheese. now it tastes better. >> announcer: will a culinary makeover have this stock rolling in dough? cramer's exclusive one on one with the ceo of domino's pizza. fresh off their earnings call. all coming up on "mad money." ♪ a storm is hey, i know the doom and gloom's enough to make you want to sell in may, go away, spend the whole summer drinking cheap whiskey on the dirty linoleum floor. frankly, i've got a hankering for old granddad after a day like today. but you have to remember the sick men of europe are going to see endless dips, endless, and you've got to take advantage of them. and i think this is one of them. that's why all week i'm highlighting the sectors where companies have reported the biggest beats, the super beats of the april part of the earnings season. these are the stocks you know you can fall back on even when the action is horrible like today because they belong to companies that have already reported fabulous results with equally fabulous guidance. and nothing's changed. particularly the domestic stories that we're focusing on. nothing's changed to make the stories less attractive because of greece or portugal or spain or china even. and they've been put on sale. yesterday we went over the huge up side surprises in travel and leisure, and that's not ending. today we want to take a look at the equally surprising, at least to the analysts, beats in, yes, are you ready, skee-dad? the housing and housing-related stocks. as the whole industry rises from the grave, nosferatu style. then we're going off the charts to find the bet way to play it. i know everyone's fretting about the end of the housing tax credit. but you know who isn't fretting? the executives of the companies involved with housing. they're not worried. they're not worried because other than a couple real hard-hit areas in florida and nevada we have now seen a bottom plus or minus 5% in the pricing of every single major area in the countries. why that's a secret to you i don't know. we have seen both new and existing home sales increasing with inventories declining. this is what house price bottoming is about. and we have seen actual house price appreciation in many important areas. multiple bidders in many areas. and we've got a fantastic fed chairman who's not going to let rates go higher until employment gets stronger. i want you to stop worrying about shadow inventory. we've got pent-up demand and banks that are keeping people in their homes courtesy of programs like hamp because they know house price appreciation and employment will simply wipe this problem out. in fact, just as i called the housing bottom and according to the case-shiller index i was right, for june 30th, 2009, i am now calling this week for a housing shortage. yes, a shortage. by december 31st of 2011. and we have seen some truly amazing beats in this sector. take d.r. horton. second largest publicly trade domestic home builder. last friday this company reported its second quarter. 4 cents per share. people were looking for a loss. five cents better than wall street's estimates of a loss of a penny. d.r. horton's revenues rose 16% year over year. backlog increased 38%. orders were up 55%. that's amazing. and the company said it examines the third quarter to be strong too as people have to close on their homes by june 30th in order to collect the tax quarter. something that should make the next quarter the most profitable in the year. even though historically the quarter ending september is the most profitable. then a whole slew of housing companies reporting out of the park beats. simpson manufacturing, owens-corning. whirlpool. fortune brands. stanley black & decker, which the charitable trust, actionalertsplus.com owns. and lennox international. these were all among the top 20 beats. but you know what my favorite plays my favorite way to play housing is weyerhaeuser. wy. one of the world's largest integrated forest products companies. 80% of its sales are from housing. in addition to that, real estate development unit. i like weyerhaeuser so much my charitable trust owns it where you can follow along on actionalertsplus.com, play wan open hand. last week it reported a 7-cent loss. that may not look so great. but that is 17 cents better than the wall street analysts were anticipating. that's in the top ten beats for april. revenues better than expected, up 11.3% year over year. okay. how about the technicals? they give us a sense of how the big money managers are treating the stock. what do the charts say as interpreted by our able chart guy dan fitzpatrick? he was on "fast money" the other day. no, he was on larry kudlow the other day. he's my colleague at realmoney.com, the paid side of thestreet.com where i'm chairman. fitzpatrick does not like what he sees in weyerhaeuser's week chart. this pictograph is the furthest thing from a picasso or rembrandt in his book. what's the problem? fitz identifies what he sees as a completed inverse head and shoulders pattern. see this? you can imagine, this would be a head and shoulders. right? this is an inverse head and shoulders. and that has nothing to do with the shampoo, by the way. it just looks like a head and shoulders turned upside down. there's the left shoulder. in late 2008. followed by the head. which occurred in lighter volume on 2009. and then the right shoulder in mid 2009, when weyerhaeuser failed to move above its 40-week moving average pulling back to higher low on even lighter volume. this inverted head and shoulders pattern is considered complete when the neck line formed by connecting the two highs on either side of the head is broken. and that happened toward the ends of the year. okay? now, once the neckline is broken, the stock can then move higher. and a technician like fitz will try to calculate how far this one can run by measuring the size of the last rally. the distance between the level where the head was formed, about 18. okay? and the level where the neckline is broken, which is around 36. the difference is 18. what he does is adds that to 36. it's arithmetic. and now you've got a measured move. this is what they do. price target of 54. he actually does that arithmetic and gets a price target of 54. unfortunately, in fitz's view, weyerhaeuser's already made that move. hit a 52-week high. 53.69 in april. he thinks, therefore, it's out of fuel. to me you've got an astounding 4% pullback today. and i think that gives you another chance to challenge that 54 level. i do not want to abandon this because of european problems. fitz may not like weyerhaeuser's chart, but based on the fundamentals i think this stock's got plenty of room to run, maybe even well in excess of where it was. quarter's better than expected in every segment except fibers. that should catch up as pulp prices sack sell-rated during the quarter and continued to improve which should make the next quarter stronger. biggest driver, timberland assets. they earned 81 million double what the street was expecting stronger pricing better volumes lower costs. wood products were up 50%. that's amazing. 18% increase in volumes. the demand for weyerhaeuser's products is back. the recovery's under way. and with a housing shortage coming, my terms, by december 31st of 2011 the story's only going to get better and better and better. how about a catalyst? weyerhaeuser will convert into a real estate investment trust sometime in the second half of this year, when potlatch and ray & aer converted into reits their stocks soared to new highs. i think you want to be in front of this weyerhaeuser conversion and own the stock ahead of the news. here's the bottom line. housing's improving. no doubt about it. based on the strength of these beats. my favorite way to play housing is weyerhaeuser because even though fitz's interpretation of the technicals suggests the momentum may be waning we can't ignore the turnover. 4% decline in this day. we got a huge catalyst coming into the reit. weyerhaeuser, wy, it's right. it's time. jay in georgia. >> caller: hey, big boo-yah from georgia. here's my question. >> sure enough, peach man. what have you got? >> caller: since december the housing sector has gone up along with big box furnishing retailer bed bath and beyond. i think the housing sector's going to get better but i worry about bed bath & beyond holding that inflated price. should i sell and buy back later or hold like the s&p recommends? >> tjx, bed bath & beyond, big lots, ross stores, the four best, the four horsemen of retail. if i tell you to get out of them, i donate know when i can get you back in them. i want you to hold bed bath even through this turbulent moment. let's go to brandon in oregon. brandon! >> caller: boo-yah, jim. >> boo-yah. >> caller: jim, it's an honor and a pleasure to talk to you. love your books. love the show. never miss the show. always reread the books for more insight. >> you are just fantastic. i called you cadre. all right, cadre, what have you got? >> caller: i was reading conference call transcripts for several of the mortgage insurers to try and get a broad perspective on the housing market. it looks like several of them recorded multihundred million-dollar tax benefits as a result of some sort of legislation that allows them to carry back '08 and '09 losses against '03 -- >> right. the home builders had that. >> caller: does this government support make them potentially a good under the radar play? >> no. i don't think so. it kept them in the game, which probably didn't really help the situation. in particular, it kept a lot of the weaker home builders in the game, which has therefore prolonged the downturn in housing. so no, i don't want to play those stocks. let's go to dean in tennessee, please. >> caller: a big auburn university boo-yah to you. >> auburn. auburn watches the show. auburn. man, i can't wait for the fall. go ahead, partner. >> caller: i own kim co. as a long term play and general growth properties as a short-term. with earnings coming out for kimco. and a revised gdp i want to know what i should do with them. >> liberty is the best one. it's got the most growth and it's poised and it's got a 5% yield and it hasn't moved yet. i want this liberty one. it's based in philadelphia and malvern, pa, right where i was born. that's better than simon, better than general growth and better than kim co. sell in may and go away in not so fast. i know i went off the charts. i know i disagree with the technicians. but down 4% weyerhaeuser, wy, come on, step up to the plate. after the break i'll try to make you more money. >> announcer: coming up -- >> domino's pizza crust to me is like cardboard. >> we changed everything. the crust, the sauce, the cheese. now it tastes better. >> announcer: will a culinary makeover have this stock rolling in dough? cramer's exclusive one-on-one with the ceo of domino's pizza. fresh off their earnings call. plus, as uncertainty in the big banks continues to swirl, going local has never looked so good. cramer's headed to cali for a regional winner that could help deposit profits into your portfolio. all coming up on "mad money." domino's pizza crust to me is like cardboard. >> the cardboard complaint is the most common one. >> this we hear over and over and over. >> i mean, that hits you right in the heart. >> shows you what i know. i actually like domino's pizza before the change. anyway, look, we all -- we all know that on days like today when the market gets annihilated good news tends to fall through the cracks, lost amidst the panic and pessimism and the eve of destruction. we expect companies that report better than expected quarters on huge down days just to be ignored. we even get them to go down. but wait a second. what's really odd is for them to get hammered much worse than the averages. so riddle me this. why the heck did domino's pizza, dpz, the number one pizza delivery company in america, get smacked down with a 13% haircut? s&p down about 2 1/2. it's more of a beheading. it reported genuine up side surprise this morning, earned 35 cents per share. that was two cents more than wall street's consensus estimate. and a 75% increase from the year before. revenues were up 18.4% year over year, coming in 7.5% above what the analysts anticipated. now, here's an amazing statistic. domestic same-store sales, up 14.3%, thanks into creased traffic from the successful introduction of domino's new non-cardboard tasting pizza. remember we did the taste test and we came up and actually thought this was better than the cardboard? international same-store sales rose. 65th quarterly increase. i think the numbers are terrific. so i've got to ask what's not to like? you have to remember that domino's has had a gigantic run even after today's shellacking up 36% from where we recommended on january 13th. that's when it was at 10.28. i think the combination of this big move, super high expectations heading into the quarter and the horrible action today is causing profit taking in domino's of epic proportions. but we like the business model. we like the opportunities for international growth. along with the new pizza recipe that's allowing domino's to take share. and we like the quarter. we've got to ask is this the sale of the century or is there something genuinely wrong that we're missing? let's check in with patrick doyle who became the ceo of domino's pizza this march and has masterminded the turn. maybe he knows the answers. mr. doyle, welcome to "mad money." >> good to see you. >> have a seat. when the campaign came out, the cardboard campaign, a lot of the so-called, you know, tv comedians, made fun of you, made it seem like this had to be the biggest disaster. it wasn't, was it? >> it sure was not. you know what? we loved it. it just brought more attention to the fact that we changed the peter, that it was better. and we put up an absolutely stellar quarter off of that. our results were great. you know, all the research told us that the consumers love this new pizza, we need to make sure they understood that, that they tried it and they were going to come back around. >> now, i'm looking at the stock going down. i wonder did some people try and not repeat order or -- >> no. >> so you even know within a quarter you saw repeat orders from new people? >> absolutely. our research showed us and then we saw really over the quarter that 75% of the people who tried this new pizza loved it. that's a phenomenal number. >> it is amazing. >> 75% is absolutely -- >> you have that information because aren't you the fourth largest internet play in the world? >> we're the fourth largest e-commerce company by transaction -- >> people don't like to call anymore, they go online -- >> almost 25% of our total orders now are coming online. >> what was it last year? >> oh, half that. >> really? this is incredible. >> it's just booming. absolutely. >> as big as that is, i regard your growth as international. how big do you stack up against some of the big international companies we talk about all the time? mcdonald's, which my charitable trust owns. the yum. where are you in that pecking order? >> we really think we're best in class. our international business is fabulous. as you said, 65 straight quarters of same-store sales growth. there are only four companies out there in the restaurant category that have a higher percentage of their business outside the u.s. than us. it's mcdonald's, burger king, and yum. we're fourth. >> now, you could pass burger king. i don't know. passing yum would be hard because your emphasis is india, right? not china. you have 9,000 stores in india? >> no, we have 9,000 stores total -- >> international. how many could you have in india? because india, it is a vegetarian delight. >> yeah. >> what's the number, and what could it go to? >> i just was over there last month. i opened the 300th store in india. >> that's all you have. >> yeah. 300, we have a long way to go. we're saying 700 is easy -- >> are there whole cities you don't have any in yet? >> absolutely. we're in dozens of cities right now but a long way to go, and it's really proof of how the vegetarian offering, you know, can do incredibly well, which will play over here eventually as well. >> before the change -- and actually, you and i had talked about that because i have vegetarians in my family. i mean, pizza is a fantastic alternative -- >> absolutely is. >> -- for parents who are faced with like what do we give them? one of the things i thought was most impressive is there really has never been a double-digit gain that i could find other than maybe mcdonald's. how impressive -- try to impress upon our viewers how amazing that return really is that you have. >> 14.3% up in the first quarter in our domestic sales was the highest same-store sales growth for a quarter that we could find of any major player in the restaurant industry. >> but do you think one of the reasons why the stock sold off is you guided for substantially lower than that on your conference call? you did. >> yeah. >> i thought when i read the call, oh, man, maybe i'm too bullish. >> yeah. 14.3% is unbelievable. we're thrilled. look, it was a down day in the market today. at the end of the day, you know what, who cares? the stock market reacts and we're just going to sell more pizza. >> but you're sticking with that 14.2% long-term guidance. >> no, 14.2% is what we did in the international business. you know, long-term we're kind of 1 to 3 as we say the domestic business will be international 3% to 5%. >> there's a number in the call, the call was pretty amazing which is why i was surprised we were down. i say we. you guys. but i regard this as a recommendation i made and you made us a lot of money. the free cash flow you get per week. >> yeah, a million and a half plus a week. >> this company was private, comes public. at a certain point if the stock doesn't move up enough why stay public? you generate too much cash. >> we're a cash machine. i mean, our capital expenditures every year are kind of 20 to 30 million dollars. very low cap ex. and the business throws off a tremendous amount of cash. >> before this quarter all we ever heard about was you were worried about cheese costs. does that get put away when you start having this kind of growth? >> clearly it does. at the end of the day commodities go up, they go down. you deal with it. and over the long term it doesn't make a difference. and you put up 14%. it doesn't matter what cheese costs. >> i'm always willing to have a papa john's taste test versus the cardboard. but how about papa john's growth versus yours? where i used to herald papa john's and not appreciate you. where are you stacking up right now? >> i think first quarter they're going to be flat to slightly negative. >> that's share take, isn't it? >> absolutely. >> we nailed this one. patrick doyle, domino's president and ceo. they took a big risk with this campaign and it paid off for you if you bought the stock. stay with cramer. >> announcer: coming up, try to keep up with cramer as he takes your calls rapid-fire in an all new "lightning round." plus, as uncertainty in the big banks continues to swirl, going local has never looked to good. cramer's headed to cali for a regional winner that could help deposit profits into your portfolio. all coming up on "mad money." it is time. it is time for a special down almost 2 1/2% "lightning round" on cramer's "mad money." rapid-fire calls one after the other. you say the name of the stock i say he whether to buy buy buy or sell 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 heard this sound. no, this sound. [ buzzer ] and then the "lightning round" is over. are you ready, skee-daddy? it is time for a very special okay, let's give it to a bear "lightning round" on cramer's "mad money." how about we start with jimmy, ooh, in tennessee, i should be in orange, jimmy? >> caller: hey, mr. jimmy. how are you doing today? >> not bad. how are you there, sir in. >> caller: just fine. i've got an offer for you, sir. if you'll come down to the university of memphis and bring your showdown to the fogleman business school, i'll take you out to dinner at b.b. king's place down on beale street. >> are you listening, ms. executive producer? because where do i want to go? you know i want to go there. and what season do i want to go there in? hit me! >> caller: anytime will be fine. anytime will be fine. >> thank you very much for the invite. i'm going to pressure my executive producer, who doesn't seem to want to go anywhere other than englewood cliffs. what have you got? >> caller: r.i.g. transocean. >> rig. that's a tough one. rig is a darn good company. i know no one wants to say that other than me. and why do i say that? because i think first of all this tragedy occurred -- i'm not going to make any judgments about what happened except a lot of people died and that's terrible. i think transocean's a very good company. i think global santa fe's a very good company. and they bought them. i do prefer schlumberger and most importantly i prefer weatherford. more levered to iraq and international. but transocean, we'll hear what they say tomorrow and then we'll make a judgment. okay? it's too early to mac a judgment. got to know what they're going to say. i need to go to donna in texas. donna. >> caller: jim, wish i could find a man like you here in el paso. i'm tired of sitting on the dirty linoleum floor drinking tequila alone. rosetta. r.o.s.e. it's time to get out of -- >> wait a second, i was thinking of going to el paso this very weekend. i'll catch a friday plane out of town and then we'll see whether you mean what you say. >> caller: sounds like a plan. >> i happen to like rosetta stone. actually, i've got to tell you, this is going to -- this is going to ruin the whole relationship. but the stock's too high. and i would actually take profits in it. so i guess you know what? there goes el paso. >> merger. >> let's go to becky in cole college. becky. >> merger. >> caller: big mile-high boo-yah to you, jim. >> i'll give you a denver boo-yah. i'll give you a boulder boo-yah. what's up? >> caller: do you still have a thumbs up for artg? >> absolutely. it's an e-commerce play i really like. by the way, another e-commerce play i like is akamai at the 35, 36 level, that's our opportunity. great pin action in that whole area of e-commerce. let's go to michael in new york. michael, come on, let's get fired up. michael! >> caller: hey, boo-yah, jim, from new york city. this is mike. >> oh, man. empire. empire man. let's hit me! >> caller: okay. i'd like your take on conagra foods. >> i didn't like the quarter. i didn't think it was that good a quarter. i was a little let down. everyone knows i like that company, but that was not a great quarter. i do prefer general mills, particularly after that -- after that news of a split. now, splits don't matter because all a split is is you've got one pencil, suddenly you've got two pencils. not a lot of value created. but ken powell doesn't split lightly. he's the ceo. i say go to general mills. mary in florida. >> caller: it's mary in florida. >> how have you been, mary? >> caller: i think i'm doing all right. you doing all right? >> yeah. i pulled my back the other day. i'm getting too old for just walking around even. what's up? >> caller: i want your opinion about bucyrus. >> you know, bucyrus is going to be a little trouble here. why is that? because there's a mining tax in australia. people are worried about china slowing down. i think you give bucyrus a break. i think the stock can trade under 50 before you have to buy any. that's where we're going to pull the trigger. under 50 is the only place i want to own it. let's take one more, go back to florida. heywood in florida. heywood. >> caller: hey, i want to send a boo-yah to you. >> boom-a-chuck-a. what's up? >> caller: i want to say thank you for your book "getting back to even." you helped me make a few pennies. >> then we did good with those picks in that book. >> caller: what do you think about baidu? i have the 700 option calls, may calls in that. i don't know if it's a cramerica move to -- >> you're playing with fire there. you're playing with fire with the near-term calls. you know from reading the book "getting back to even" you do not have enough time. the fuse is too short. that said how can this company be valued at a fraction of google when it's got 300 million chinese people that it's going to be doing business with? i think baidu's valuation is wrong and google's wrong. i think google should go lower and baidu should go higher. and that's how i determine the direction of those two stocks. and ladies and gentlemen, yes indeed, the "lightning round" is over! let's talk about what you should do on horrible days like today. there's going to be more of them. now, it is really easy to panic when the action's this awful. and i would love to be one of those nattering nabobs of negativity to quote agnew, who was quoting safire, who gets to opine endlessly about how horrible everything is. but my job's not to appeal to the intelligentsia by making pessimistic pronouncements. i'm actually here trying to make you some money. and that means we need to look at the sell-off as an opportunity to buy the stocks of companies that just reported great quarters that had nothing to do with the greece or iberia peninsula problems. we fall back on companies that we know are doing well. so let me divert your attention away from the massive declines in the averages and toward city national, cyn. the california-based business bank that's our favorite play on the turn in the golden state's economy, if not the fortunes of its near-bankrupt municipalities or the state's busted budget. even with today's pullback, city national is up over 9% since i recommended it last month, when it was at $55.78. and the story's only gotten better since then. company reported terrific upside surprise last thursday. this is a bank i'm talking about. city national earned 19 cents, six cents more than the analysts were expecting. its net interest margin, what the bank makes on the difference between the rate it pays you for deposits, interest rate it charges you for the loans, expanded to 3.97. that's, by the way, the highest that i heard this quarter. that's the money these guys make when they turn the lights on every morning. assets under management increased by 2%. 35.8 billion. a little bank you never heard of. think about 35.8 billion. non-performing assets also known as loans to deadbeats were down 12% for the quarter. hey, isn't this what you want? more important, city national's management confirmed our california thesis on the conference call. they talked about renewed loan demand and increased business confidence as well as saying, i'm going to quote here, here in california there's a growing sense that the economy has bottomed out. not from me. from them. should we let worries about grecian formula or iberian sangria hangover scare us out of a california bank that's clearly doing much better than all the others? that's nuts. city national's results and the commentary in the conference call tell us you should be checking into the stock hotel california, not checking out. what are the key areas of improvement we should keep an eye on to make sure this story's intact? let's hear from a man i've known for many, many years as a great businessman. russell goldsmith, the president and ceo of city national corp. to find out. mr. goldsmith, welcome to "mad money." >> call me russell. >> absolutely. little formal thing at the beginning. you're russell from now on. you said something it's the first time i've heard a banker say it. you said the jumbo loan could be coming back. >> the jumbo loan hasn't gone away at city national. that's sure private banking clients -- when you look at coastal california, you know what the prices are like out there. a million one, $2 million mortgages on a $4 million, $5 million house. that's our bread and butter. >> did anyone default at that level? >> no. >> no? >> no. >> they just didn't. >> no. >> so you didn't reclaim anybody's house in -- >> in ten years with a $3.5 billion mortgage portfolio and half a billion dollar home equity loan portfolio conservatively underwritten, no broker loans, two foreclosures in a decade and one of them was guaranteed by the father-in-law who we know. >> that is unbelievable. i want you to explain. you used a term that banks use. the brokered loan. because that really hurt a lot of banks. >> absolutely. you look at a lot of these banks that are failing and we've been be looking at some. we bought one. you find out in their loan portfolio they have loans scattered all over the country. no relationship. they didn't note client. some broker sold them a loan, they picked it up for yield because they thought the world can only go up. >> talk about this fdic gem that you got because i've been after and i wrote in getting back to even that what you're look for is the banks that have the balance sheet to be able to take fdic pickings. tell us what was in the bank, how you were able to manage that and does it actually hurt you because it's so bad. >> gem is a -- use that word advisedly. a failed bank that had a terrible loan portfolio. and absolutely failed. but they had branches in our locations at city national. southern california, northern california, even southern and northern nevada. so it was a good geographic fit for us. and the way the fdic structures these things, they make it work for you. we use our balance sheet to fund their loans. we have the deposits. we have the people, we have the systems. so we were able to step in and manage this for the fdic. the depositors are in good shape and life goes forward. we just finished fully integrating. we have three new city national branches and the other five we integrated because we were so close. sometimes 100 yards apart. >> one of the things that i wasn't sure about is what are you doing in new york? why are you in new york? >> we love new york. >> you can't compete against the big guys here. >> in 2002, we opened a private banking business upstairs on park avenue. today it's a billion dollar bank all by itself. >> how does anyone know you? >> referrals. word of mouth. we started with bicoastal clients. we have broadway shows. better service and the capabilities of the 26 largest american bank hidden away on park avenue. we like new york so much, we'll open a second office upstairs on the west side by the end of the year. >> i got to tell you it's an amazing story. i remember when you were a real little bank. there's a chance that you could be one of the top 25 banks in the next three or four years. >> we're the 26th largest american bank, so i think we're getting close. we're into quality, it's not about size. the quality of our people, performance and assets. >> are you picking up some business from -- jpmorgan took in $100 billion overnight. are you getting business from people who are worried about their banks? >> yeah, that's absolutely happened to us. part of why our deposits are up so strongly, city national -- we've been profitable every quarter. >> it's an amazing story. >> thank you. >> not every banker doesn't know what he's doing. some bankers know their customers, they get the best loans. look at that. think about how few -- two? >> two. >> russell goldsmith, you are the man. i'm glad we picked your bank. thank you very much. "mad money" back after the break. hey can i play with the toys ? sure, but let me get a little information first. for broccoli, say one. for toys, say two. toys ! the system can't process your response at this time. what ? please call back between 8 and 5 central standard time. he's in control. goodbye. even kids know it's wrong to give someone the run around. at ally bank you never have to deal with an endless automated system. you can talk to a real person 24/7. it's just the right thing to do. here's what happens. we get up, we see something bad in europe, we all panic. what i'm telling is you take advantage of the panic, find those stocks that i talked about as part of the rotation, and start doing a little bit of buying. you start buying the cad and the 3 m. this was their first good quarter. i always like to say there's a bull market somewhere. i promise to try to find it right here for you. show me some faith and see me tomorrow. 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. hi, ellen! hi, ellen! hi, ellen! hi, ellen! we're going on a field trip to china! wow. [ chuckles ] when i was a kid, we -- we would just go to the -- the farm. [ cow moos ] [ laughter ] no, seriously, where are you guys going? ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! [ female announcer ] the new classroom. see it. live it. share it. on the human network. cisco. >> this is a cnbc original. >> "walmart!" >> whose "walmart" is it? >> my "walmart!" >> woo! >> i am very excited to be your host for the 2009 "walmart" shareholders meeting! >> when you came into this office as ceo, not very long ago, what went through your head? >> to move into this office, these paneled walls that sam walton had installed, is a tremendous honor. >> in fiscal 2009, your sales eclipsed $400 billion. >> the buyers come out into this area. they meet in these little rooms and negotiate billions of dollars of purchases of product. >> in this last year, the international division opened 500 stores. >> we got rid of the smocks just to signal a change. >> we just love our relationship with our associates. we are a family. >> ha! >> what do we want? >> free choice. >> when do we want it? >> now! he's not my family. >> two million people, you're a family? >> it really is that way. >> are you made to work overtime? >> yeah, when it's busy, they will have us stay overtime until 2:00 or 3:00 am, sometimes throughout the night, 24 hours a day. >> twenty-four hours a day? >> i don't mind standing up for workers and letting "walmart" know they need to pay a decent wage and let folks organize. >> you know what? i'm sick of being threatened by you people. i want the union. >> these workers seem much more emboldened than they have been in the past. >> every worker ought to have the right to join a union! now is our time! >> i despise "walmart,"