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tv   Mad Money  CNBC  April 4, 2012 6:00pm-7:00pm EDT

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more fast money and don't go anywhere. "mad money" with jim cramer starts now. i'm jim cramer and welcome to my world. you need to get in the game. firms are going to go out of business, and he's nuts! they're nuts! they know nothing. i always like to say there is a bull market somewhere. "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you a little money. my job is not just to entertain, but to do some teaching and coaching. so call me at 1-800-743-cnbc. boy, people head to the exits fast, don't they? they just give up on the market like this as stocks sank today with the dow plunging 125 points. the s&p giving up 1.02%. the nasdaq plummeting 1.46%. you can practically hear the people cursing out the darn
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thing all day, as if it's been on a terrible losing streak. [ booing ] rather than the best winning streak since 1998. you would have thought we should have been throwing these bums out as opposed to actually looking at the lineup card and recognizing we have some real winners on our hands, consistent winners, not inconsistent losers. [ booing ] what on earth happened today? first, people are still confused about who is driving the car here. yes, this morning early spain did have a crummy bond auction, okay. boo hoo. so the superficial american trader who thinks they're intellectuals decided europe is back behind the wheel, and that means, yes, a sangria-inspired pileup. it didn't help that the spanish prime minister started squawking that maybe a bailout would be better than more austerity. you can see why people would be fleeing, not buying spanish bonds. where is franco when you need him? i guess he is still dead.
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when you couple an iberian drunk driver with a fed chairman who wants to pull away the punch bowl before the party gets too long on the tooth, a miserable quarter from apple supplies, although it's not clear it was apple's fault. they make flash memoriment sprinkle in a sub-par industry gauge of activity, well, you have the possibility of a real rollback. of course, when you get a slaughter, it goes wholesale pretty quickly, with oil and gold take it on the chin. hard assets are dead? i read multiple intra-day obituaries of both with rather unflattering death notices. but bucking the conventional wisdom that everything is now terrible and stocks, gold and oil should be benched in favor of cash, do you mind for a moment if we shouldn't be so quick to change our animals from bull to bear, even though that would make for a totally enthralling rodeo. first, we may have gotten some
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slowing data from the u.s. it's possible, right? we also had pretty big positives. you know ford in the midst of the negativity boosted the number of cars that will be bought in this country. we know real estate is coming back. we have had a ceo including one of the largest warehouse companies in the united states just last night saying things are roaring back. sure, the warm weather has helped retail. i think we're going to get some robust march numbers tomorrow. not unlike the blowout numbers we saw tonight from cramer fav bed, bath & beyond. by the way, bbby is a fabulous place for beach towels. you can buy them on amazon. please. let's see, cars, warehouses, homes. these are huge segments of the economy. they're actually accelerating month to month as the year has gone by. second, we just got through with the best quarter in 14 years. so -- people would be kind of nuts, don't you think, not to take some profits?
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as we like to say in cramerica, bulls make money, bears make money, pigs, they get slaughtered. sure enough, on wednesday we get sentiment numbers. and this time we got a huge number of investment advisers saying they're now bullish, next to a paltry number of bears. i don't like that. we had a bunch of johnny-come-latelies who will now be shaken out. they got in a couple of days ago, and now they're scared. that's fairly typical of the wall of worry process. you know, we need the wall to be built up. maybe outfit it with razor ribbon, barbed wire and a few claymore mines and because i'm old-fashioned, pungi sticks. earnings season is about to begin. as always we'll kick off with a worrisome number from alcoa. they stopped trading. and you to be nervous about the employment number coming out on this holiday. more on that from me on larry kudlow's show to follow. but none of that, people, makes for a top. most of it makes for a breather,
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maybe a deserved breather. i'm telling you to rest the lineup. i don't want you to send the lineup to the minors at opening day. how about oil. let me tell you something. if you think that when fed says it might not have to keep printing money, that's a reason to sell oil, you are certifiable. and that's coming from a totally certified guy. if things are as row best as the fed seems to think, we better hope the saudis keep pumping overtime, because oil is not going down much from here if the economy is strong, especially not with a potential war with iran lurking and customers hoarding petroleum worldwide. supply just won't be able to keep up with the actual real oil demand, not phony fictional demand that everyone ascribes to. this fictional demand, that means being driven by an easy fed. that's a distinctly minor chord in the cherished and scarce oil symphony. finally, there is gold. okay, gold. wow. gold, down 50, huh? to listen to the prognosticators talking about how the precious
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metal plummeted in price today, you would think that gold has turned into iron pyrate. do you believe that charlton moses heston is about to cast nathan robinson and his golden calf out into the desert, like gold worth less than soilent green. gold like oil, as i never tire of saying, is all about supply and demand. have you noticed how poorly the gold stocks have been performing. do you think that's because the price of gold is going down? the declines in these stocks are much worse than the commodity. the gld, which is what i like to talk about for gold, it's gone from $139 to $157 year-over-year, a 12% increase. goldcorp, the best of the lot, down 16%. barrack down 20%.
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i think eco is down an astonishing 49%. that's because they can't find enough of the stuff to capitalize on the move. and what they can't find is more expensive to mine. meanwhile we all know the demand from emerging markets is insatiable. let's see. supply, can't bring it up, demand insatiable. neither gold more oil has really correlated with the fed's policy over any intermediate time frame. so any attempt to shoehorn these commodities, you get the picture. and shoeing these commodities into an individual bernanke speech or fed notes doesn't bear scrutiny. you try to link the commodities with the fed over any substantial period of time and you will not make money. sure you can be right future a couple days. maybe you'll be right tomorrow. but history says the bogus linkage will eventually lead you stray. here is the bottom line. it's heartening we're so quick to hate stocks, hate gold, hate
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hate oil the moment we have a tough day. the ability to inspire panic on the spanish bond auction and a preannouncement from an inconsistent tech company tells me that is a selling squall and not the end of days. you can't take the rain? go ahead for the exits. go head down ranier theater. i'm donning the poncho, watching the tarp unroll knowing the bulls will be back on the field after an annoying, but not catastrophic rain delay. ed in texas, ed? >> caller: jim, boo-yah from wild and windy texas. >> boo-yah right back at you, partner. what's going on? >> i would love to have your decision on bernanke's decision that put q 3 on hold. the companies we have making a lot of money and hoarding cash. and they're not hire together much. >> right. >> meanwhile, commercial banks are garnering high interest
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rates from consumers while rewarding the cash-rich corporations with lower rates. given that conundrum, do you think bernanke believes the economy can rev up on its own without qes ad infinitum, or as he simply quitted cranking a dead engine? and what does this mean for the markets? did we get too confident? >> no, i don't think so. first of all, someone today was making fun of bernanke to me. we had this company on the exchange and they were wearing bunny ears. and some wiseguy says to me hey, there is bernanke. you know what? i didn't want to hit the guy, because that's the old me. but it did seem kind of like a misplaced criticism. i think bernanke knows what he is doing. if he is slowing down the printing presses, it's because i think he has a real good handle on things. he is the only grownup in this whole equation. the whole time he has been consistently good. i am not going to second guess that guy. let others do that. i'm not going for it. i'm going to kathleen in my home state of pennsylvania. kathleen?
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>> caller: yes. thank you so much for taking my call. >> my pleasure. >> caller: i would like to know what is going to happen with zynga going forward. i hear there are rumors they're working with wynn casino. i was wondering would that help with their games any? it's been going down since i got it. so i'd like some information. >> sure. i've been working very hard to try to come up with a recommendation for zynga. why do i say come up? because i want to be sure about the numbers. i don't think the wynn thing is that important. i do think the incredible ramp-up and download of draw something, omg's draw something is extraordinary. it's been something like 50 million downloads. they just bought that company. these guys are really smart. but the reason why i'm reluctant is i do talk about how you don't want to own a stock just because you like the website. i like scramble with friends so much and i like draw something so much that it is tempting for me to just come out here and say buy it. that's not rigorous. i've got to do more work before i can tell you to buy zynga, but
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i would not sell it here. i want to go to greg in maryland, please. greg? >> caller: hi, jim. >> captain, what's up? >> caller: this is greg. alcatel lucent was down. is it a buy, sell or hold at the closing price of $2.19? >> man, it's kind of like the orioles. that's painful, isn't it when you're from baltimore. someone said to me the other day your phillies don't look good. i almost had to put him down. look, i think that lucent is terrible, okay. it's a terrible company. i don't want to own this stock. i do think if you take the two bucks that you're going to put on lucent and you play in this week's lottery, even one of those scratch off, i think it's more investable. anyway, the irony in today's sell-off, it's actually a sign of bullishness that we're pulling back. we like it. the bulls will be back. it's a rain delay. it's not the end of days. "mad money" will be right back. coming up, economic mobility?
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text talk, jam work, game, shop, and surf all on the move. wireless data consumption is expected to grow 15fold over the next five years. and with tojts providing the boost, how do you play the crowded skies? stick around to find out. and later, back to the future? the old guard of tech is on the move. but do the fundamentals agree? tonight jim completes the breakdown of the powerhouses of tech to find you the best bargains. all coming up on "mad money." thanks for teaching me and putting me in charge of my own future. >> it's time to take charge of yours. >> "mad money" with jim cramer, cnbc.
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>> miss out on some "mad money"? get your "mad money" text alert today. text "mm" to 26221 to get cramer right on your phone. for more money, visit, or give us a call at 1-800-743-cnbc. [ male announcer ] citi turns 200 this year. so why exactly should that be of any interest to you? well, in that time there've been some good days. and some difficult ones. but, through it all, we've persevered, supporting some of the biggest ideas in modern history. like the transatlantic cable that connected continents. and the panama canal that made our world a smaller place.
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you know us. we're always on the lookout for new opportunities here on "mad money." and right now i think i got a terrific entry point coming in a red-hot stock you probably never heard of. i'm talking about a thing called sba communications, sbak for all you home gamers. these tower stocks, you know what? they have made us a load of money over the years. slowly but surely rallying higher and higher. and the reason was pretty simple. owning wireless towers may not be particularly sexy as you would like another business to be. it's not the kind of thing that grabs headlines, let alone imaginations, but it's the
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probably the least risky way to play the mobile internet tsunami. when i started talking about this theme three years ago, the story was about how people were switching from dumb phones to smart phones. but now we're in the later innings of the mobile revolution. there are 300 million wireless subscribers in america alone, which adds up to a cell phone for virtually every man, woman, and child in the country. meanwhile, data hogging smartphones are everywhere. the iphone 4s alone puts tons of pressure on the wireless carrier. plus we know the ipad devours bandwidths like it's going out of style. mine does. and that's just one device. imagine when every smartphone out there runs on the latest, fastest 4g technology. we could have a genuine bandwidths shortage. we've already seen a bunch of stories about how there is so much streaming of video happen that we had to light fiber for the first time since the overbuild during the tech bubble. and that means wireless streaming to have. that's among the reasons why
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jpmorgan says the telco companies, think at&t, verizon, t-mobile, are starting to build out for the first time in ages after a big freeze in spending. and this is where the tower companies like sbac come in. see, there are two ways for the carriers to relieve the strain caused by the deluge of data. they have to get their hands on more electromagnetic spectrum or put up more cell sites by placing more antenni, right, on towers all over the country. however, it's very difficult to get new spectrum because it's heavily regulated by the government, and the let me be kind here. the government doesn't know what it's doing. every five years they increase the amount available by 5%, but that's not nearly enough. according to data, they should grow at a 75% over the next five years. the i'm calling ate drop in the bucket. which means the wireless carriers will have no choice but to go to the tower companies for help. that's fantastic for all the
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tower plays. think american tower. how many times have they been to the show? crown castle and sbac. and when the carriers are adding capacity, the economics of owning a bunch of towers are superb. a company like sbac doesn't have to put up new towers. they already have an existing footprint of about 9,000 in the u.s. and 1500 throughout the rest of central and north america. the way this business works, once you have a tower, you can keep adding multiple antenna as pretty much endlessly. so the on the cheap way to deal with the data overload is to just put more antennas and amirs on existing towers which have plenty of room. since the cost of the building the towers has already been paid, they get to collect additional rent. in the parlance of wall street, the tower business has what's known as incredible operating leverage. every time they add a new antenna on to a tower, the incremental margins about are about 80%. i don't know many companies that have that big an operating margin, and that's huge.
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so if the carriers pay a company like sbac to build out their kpas. >> the almost all that money flows to the boyne line. why sbac over competitors? first sbac and american competitors are better than crown castle. they're taking advantage of the exploding activity. i prefer right now sbac because it has one of the highest quality tower portfolios in the industry, meaning their towers are in the right places. and it's much more of a growth play, given that it's only a quarter of the size of american tower, we do like amt very much. amt, yes, just like the machines, printing money. plus, on monday, sbac just closed -- this is really important -- on this $1.1 billion acquisition which gives them 2300 more towers. tons of room for them to add more antenni from additional towers and grow their revenues very cheaply there is one more reason i'm focused on sbac. it's pretty important.
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you're being given a spectacular opportunity to buy this one at a slight discount. i have to say slight. you don't really get one very often. on monday after the closed they announced a secondary offering connected with the sellers from this incredibly creative mobile deal. creative meaning so you're going to raise numbers for sbac. it's so rare that you ever get any price break in the stock. and this deal has been snapped up so quickly that you know there are huge buyers waiting to pounce on any decline. they join two other companies that filed recent secondaries that were gobbled up immediately. that's a sign of amazing demand underneath term of art as we say, underneath. that's good news, under where the stock is now. bottom line, you're getting a fantastic opportunity to play the wireless data explosion at a price dip courtesy of sba communication's secondary offering related to the brilliant and creative mobile acquisition. the fact that a huge slug of stock got put away so quickly shows me there is real demand there. to meet the desperate bandwidths
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shortage, who can blame anyone for swooping in to buy sbac, even on what you may regard as a meager price break, ahead of when the numbers need to be bumped up. that's right, all the numbers are too low, and the rocket refuels. coming up, back to the future? the charge say the old guard of tech is on the move. but do the fundamentals agree? tonight jim completes the breakdown of the powerhouses of tech to find you the best bargains. eam ♪ ♪, stream, stream... ♪ whenever i want you, all i have to do is... ♪ [ female announcer ] introducing xfinity streampix. stream your favorite movies and full seasons of shows instantly on any screen. find out more online.
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it confirms your reservation and the location your car is in, the moment you land. it's just another way you'll be traveling at the speed o with the market getting crushed today, courtesy of a lousy spanish bond auction, this time not offset by good u.s. economic data -- ♪ i know, feels like deja vu, feels like 2011 all over again. people say europe is in the driver's seat. but as i say a zillion times since the new year began, 2011 is over. and this market, 2012 is a bird of a different feath fer not a horse of a difficult color. i know this kind of brutal sell-off is frightening. but at moments like this you need to take a deep breath and remember that things are a lot better now than they were six
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months ago. that means today's decline is not a reason to panic. we're back in bull market mode this year. even if this was a pretty bearish day and the bull market a pullback, well, let's just say -- buy, buy, buy! >> it can be a buying opportunity as long as you're buying the right stuff. not low quality stocks. they tend not to come back. that's why tonight i'm urging you to circumstance typical wagons around some of the strongest yet cheapest names out there that still have a lot of momentum on their side, the big cap giants of tech. and last night's off the charts segment, we talked about la's little, suggested intel and microsoft could break out to levels that they haven't seen since before the tech bubble burst. intel has been struggling to reach the $30 level for over a decade. and based on the chart, that could finally happen in the not too distant future. next stop, 35. as for microsoft, wow, it's been trapped under a $34 ceiling for a decade.
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but little c's mr. softy, ticker msft, a term coined by me on "squawk box" while bantering with my mentor, thinks little thinks it's ready to romp. little said it could shoot that through that roof sooner rather than laterment and he used a $47 price tag. it's almost back to its dom come era highs. little chart suggested we could be looking at a 50% gain and it's softy. pretty spectacular moves, considering both of these are relatively low risk old-line tech companies with cheap valuations and decent dividends. this ain't know sandisk. intel is real good. and microsoft is even better. we aren't disturbed by sandisk's numbers last night. that has been a terrible executioner for ages. however, here on "mad money" we
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never decide anything sow solely based on the charts. when it comes to stock picking, i'm a dyed in the wool fundamental mist. not to be confused with the other type of fundamentalist like the late not so great ayatollah khomeini. when i come back to explain the fundamental reasons why the stocks might be poised to roar, i realize i got to go over more than just a chart. when you know the story behind an intel or a microsoft, you won't get shaken out just because of a couple of ugly days like we've had this week, or any we might have ahead of us, frankly. instead, as long as you understand the thesis, you'll have the confidence to come in during any pullback and -- >> buy, buy, buy! >> while everyone is -- >> sell, sell, sell! >> which is the essence of good investing. so what is breathing new life into intel and microsoft? back in the late '80s and the '90s, these two companies were the heart and soul of the personal computer revolution.
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it was the win tell era, as in windows and intel inside. but that was ages ago. and you might perhaps correctly in the year of apple think of montel before you think of win tell. these days the pc is no long area growth category around the new tech frontier is all about mobile, the cloud, social media, big data. the quintessential growth stocks of the tech boom are now value plays. both of them sell for about ten times earnings, but 10 to 11% growth rates. they pay bountiful dividends. mr. softy pays a 2.5% until an even more bountiful 3% yield. they refuse to be delegated to the dustbin of history. it's all about the future. they have a lot going for them besides low multiples and higher yields in the tech base. let's start with intel. it remains the largest most dominant chip maker company on earth. intel's old school pc segment
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has been suffering because of flooding in thailand that pushed up most computers. and of course we know we like apple. but now it's look like the issues have been resolved, the technological issues have been resolved, not the apple issue, and the business has bottomed. the company has had a lot of success in fast emerging middle markets where the emerging middle class wants to buy. intel limits from the launch of windows 8. that said, intel is now moving aggressively beyond the pc and into areas that are more in sync with the big tech friends of the era. when you think of the cloud, the explosion of digital information, the need by companies to analyze it. they both require an enormous number of data servers filled to the brim with servers. they need processorles. and intel makes the best chips on the market. the current business accounts for 20% of the company's sales, but it's growing three times faster than the core pc biz. they're launching chips for smartphones and tablets in order to tap in to the market.
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i think they'll get share. plus mcafee, who looked very expensive at the time might start to look smarter now that hacking is endemic. now intel reports in roughly two weeks, april 17th. and i think you can buy the stock into any weakness ahead of the quarter. but if you stuck a 44 magnum to my head and told me that if i felt lucky, i should pick just one, it's going to be microsoft, hands-down. you have to buy microsoft whenever there is a new product cycle. and right now you've got a big one. you have windows 8 coming out in late summer or early fall. now i have used the windows 8 beta. i find it an absolute joy. look, i also like my tablet. as much as everyone is nipping at microsoft's heels and the cloud, when we spoke to jim whitehurst, the ceo of red hat, one of the main nippers, even he had to act a knowledge microsoft's tremendous installed base. you combine the vast base of customers with the big new product launch and you get a
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terrific story that could drive the stock much higher. i also think people consistently underestimate the power of the xbox. just like apple won the battle for cell phones and tablet, microsoft won the battle for video game consuls against nintendo and a sony. and the xbox is now the preferred way to play and stream video over the internet. i still use my apple mac, but the kids say the xbox is every bit as good as ways to watch breaking bad and homeland. yes, i like apple more than microsoft. who doesn't. it can be big. yes, i believe microsoft's tie-in with nokia won't pay off as most people hope, but man, ten times earnings, huge cash position and the possibility of a dividend boost? how are you going to go wrong with that as long as you stick with the entry point, wait for a pullback to 29 to 30 before you buy. here is the bottom line. now you know how microsoft and intel got their groove back. intel is all about the growth in servers, the turn in the pc biz
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that could come in the second half of the year. but microsoft makes more sense since it has a big new product cycle with windows 8 coming and xbox kicker, and just about the best balance sheet in america, yes, its all star nemesis apple. duane in utah, duane? >> caller: ba-ba-boo-yah from it that, ba-ba-boo-yah right back at you. what's up? >> caller: so i sold most of my position in sandisk, sndk. >> right. >> caller: and a big drop today. what should i do with the rest, or should i get back in? >> you know, there is always somebody went down five, there will be some guy who comes out or the who does the reiterates buy, and you get a couple point move and then you -- >> sell, sell, sell. >> exit stage right. thank you, body. >> caller: hi, how are you? i'm honored to be on. yabba-dabba-doo. i want to talk to you about xerox. >> all right. >> caller: will we ever see life? i'm a long-termer. it was $40 at one time.
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it had bad management, now it's on its way. is it going to go? it's got contracts, and you never talk about it. >> yabba-dabba-doo, i never talk about it because there is no yabba-dabba-doo there. frankly, i don't think xerox is a good stock. it's very dinosaur like, maybe triceratops or stegosaurus. i think there is nothing there and you got to move on. sorry, hate to be too tough. let's go to jason in indiana, jason. y. boo-yah, jim. how are you doing? >> i'm real good there, hoosier. how about you? >> caller: pretty good. i'm 20 years old and i recently started thinking about investing in the stock market. i want to start with local companies. angie's list is right down the road from me. i did some research on the company and found out they haven't made a profit in their 16 years of business, but their market cap is close to $1 billion. tell me from a new investor, what attract people to invest in a company that doesn't make money, but loses money year after year?
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>> well, first of all, it sounds like -- as a 20-year-old, you have horse sense, because frankly, i can't think of a reason either. i know it got hot. you know what happens? i'll tell you, partner, what happens is jason, somebody likes the site so, they buy their stock. that's what happened with yahoo. where did that get you? i don't want you in angie's list. i'd rather have you in craigslist. intel and microsoft are being rebooted. they're all about the future now. both companies can continue with the juices flowing where. do we like this? intel a little lower ahead of the quarter and microsoft between 29 and 30. i got to tell you, i think it's a very solid opportunity. stay with cramer. coming up, can you handle the heat? cramer gets you fired up for a searing hot "lightning round." plus, how do your stocks stack up in a mystifying market? cramer makes sure your portfolio makes the grade on "am i diversified?" all coming up on
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it is time, it is time for
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the "lightning round." on cramer's calls, you say the name of the stock, buy, buy, buy, sell, sell, sell. play this sound and then the "lightning round" is over. are you ready, skee-daddy? it's time for the "lightning round." i'm going to start with jeremy in florida. jeremy? >> caller: south florida boo-yah, cramer. >> nice, sunshine. what's going on? >> caller: i got toyota, tm. i made it at 64 and i want to know what i do. >> i'm not a buyer. i'm a seller. why? i think the auto companies have had a very big move, including toyota, and i would just as soon exit. you had a great run. take it. let's go to billy in hawaii. billy? >> caller: hey, big boo-yah, jim. >> well done. mahalo. go ahead. >> hey, awesome show. what is your take on ubnt? >> oh, man. an apropos of tomorrow's opening day, that's the real fly on the wire, my friend, and i'm
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concerned about that company. it just came public in october. it's has a really, really big run. you know what i'm going to do? i'm going to do a segment on it and make a judgment on it, because that is too hot to make a snap judgment. let's go to robert in massachusetts. robert? >> caller: yes, mr. cramer. >> yo, yo. >> caller: a great show. >> thank you very much. >> caller: and i love what you do for us gamers. >> that's what i'm trying to do. >> caller: and you're a good man. keep up the good work. >> thank you. >> caller: my question is eca, encana. should i sell it or buy? >> i really like lynn. lynn's got a really great portfolio. a lot of oil in the ground. that said, i'm not about to dump encana here because i think the yield is good and they're doing a lot of bringing out of value, including selling assets. i like glenmore than encana, but i would not dump encana. >> caller: boo-yah, this is joe
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from new york. >> good to have you on the show. >> caller: about sena. >> no, no, no -- >> sell, sell, sell! >> only baidu. we're not deviating that. we are not big believers in the chinese market. having taken about 50 courses on mao when i was in college. let's go to joseph in wisconsin. joseph? >> caller: hi, jim. big wisconsin boo-yah to you. >> wow, nice. good to have you on the show. what's going on? >> caller: i'm calling about silver. i'm a jeweller, and i've seen my customers buying a lot more silver than they have been buying gold. >> right. >> because of the high prices of gold. >> caller: and they've been putting a lot more silver in electronics nowadays, and a lot of people have been also buying silver because of the economy. do you think that silver is going to go up within the future, the next two years? >> no. i want to ring the register. it had a big run this year and i don't like silver. it's the poor man's a gold. i do like gold. i do like gld.
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and the charters are going to be all over silver. >> sell, sell, sell! >> it looks like a head and a shoulders. let's go to ted in montana. ted? >> caller: oh, thank you, mr. cramer, for taking my call. >> sure. >> caller: i understand that you're really busy, so i'll make this quick. >> i'm fine, i've got time. go ahead. >> caller: i'm a retired petroleum engineer, and as a result most of my investments are in oil and stock. >> okay. >> >> caller: oil stocks. i have a typical story is that, for instance, exxon, i have about $10 a share in it. >> right. >> caller: and conocophillips and you know, it's about the same thing. >> conocophillips is splitting. we got the news today about phillips. i like conoco more than exxon because conoco's got a good yield. exxon is up very high. you got that low basis before they raised the taxes on it. i would do some trimming. i don't give tax advice individually, but that basis, it's just so tempting. and that, ladies and gentlemen, is the conclusion of the "lightning round"!
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[ buzzer ] >> the "lightning round" is sponsored by td ameritrade. ion? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account.
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all right.
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so this week's nosedive may remind you of the uncertainty that plagued us last year. but this market is not the same market we had in 2011. we got some consistent winners. we're seeing record profits. days like today are sometimes inevitable. but the difference now is that you can turn off the noise and use the pullback as an opportunity to stick to the fundamentals and buy high quality stocks in different sectors. that's why we play "am i diversified?" every wednesday. this is where you call me, you tell me your top five holdings, and i tell you if your portfolio is diversified. maybe you need to mix it up a little. let's start with devon in delaware. devon, you're our first caller. what do you have for me? >> caller: hey, jim. a big boo-yah to you today. i have got arr, bog, alsn, ges, and hd. what do you think? >> all right. let me do this. [ buzzer ] hmm. okay. all right. okay.
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here we go. this one is going to be a tough one. i'm going to have to ask that the company come on. home depot, terrific retailer, lowe's 52-week low. recently came public recently, i'm try figure out if that is a tortoise or a hare. grief packaging. people have been down on buy my stock. capital oil and gas, got to be very careful. that's natural gas. armour residential, they yield 17%, which gives me a red flag situation. so i'm not going to recommend that. but we have a reit, a financial reit. we have a retailer, a packaging company, a transmission and an oil and gas. and that for the purpose of the exercise is very diversified. okay. let's go to ken in my home state of new jersey. >> caller: hey, jim, how you? >> real good.
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>> caller: a beautiful day at beach from long beach, long island. >> i'd like to knock one back at the dutchman. do i know my places? >> you know your places. >> i'm no joker. ron john, speak to me. >> invn, solar winds, under automaker more, ua. continental resources, clr, and intuitive surgical. am i diversified? >> you're smarter than being diversified. you're actually at the beach. let me see. solarwinds, really taking his time on this one, isn't he. [ buzzer ] inven sense, this is one that has confounded me. we had imax earlier. consumer problems on electronics
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is not my favorite business. continental, that's harold hamm and the huge producer in the balcony ken. under armour downgrade today. solarwinds. intuitive a medical company. a software company, we have an apparel company, we've got, holy cow, man. just a second because i want to make sure i'm not going to overlap here. that's consumer electronics. we're going to say it's okay. we're going to get rid of, though. you know what? we can keep it. it's different enough, but it's not -- it's just way to speculative. the whole portfolio is way too speculative for me. but anyway, it is diversified. >> hallelujah! >> john in california, john? >> caller: boo-yah. how are you do? >> all right, how are you? >> caller: bad, bad market today. >> real bad. >> caller: okay. my stocks are arr.
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that's the speculative that i have. fun, kmp. >> okay. >> caller: t, and bristol-myers, bmy. >> i feel badly again. this is that armour residential because it has that really high yield and it's a financial reit like annaly. i got to speak to the guy. kinder morgan, i am shocked. research director of action alerts trust, that thing is now starting to yield nice fives. cedar fair, a terrific entertainment company, a very high yield. bristol-myers, high yielding drug company and at&t, high-yielding telco. a telco, a drug, a financial, a real estate, an oil and gas, an an entertainment company that is diversified and not too speculative, although guys, again, i apologize, i have to have armour on the show because i don't know how that yield is going to hold up. "mad money" is back after the break.
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fiona here was just telling me that ford dealers sell a new well, we purchasery five se3 million a year. ible you just sold one right now didn't you? that's correct. major brands. 11 major brands. oop,there goes another one. well we'll beat anybody's advertised price. and you just did it right there, what's that called? the low price tire guarantee. wait for it, there goes another one. get a $100 rebate, plus the low price tire guarantee during the big tire event.
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look at that. it's happening right there every five seconds. your not going to run out are you? no. i'm making my money do more. i'm consolidating my assets. i'm not paying hidden fees or high commissions. i'm making the most of my money. and seven-dollar trades are just the start. i'm with scottrade. i'm with scottrade. i'm with scottrade. and i'm loving every minute of it. [ rodger riney ] at scottrade, we give you commission-free etfs, no-fee iras and more. come see why more investors are saying... i'm with scottrade.
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people always want to keep trying to call the bottom in terrible stocks of terrible companies. [ booing ] it's like some curious addiction we just can't shake.
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as with most addictions, it's costly and destructive, sort of like inflicting your portfolio with a crystal meth habit. the two loser stocks people can't seem to stay away from right now, the ones that constantly percolate as potential takeover targets and turnarounds are research in motion and yahoo. look, i get it. i understand why. rim's blackberry, 77 million user. surely that's got to be worth something to somebody, right? something more than the 6 million in our market gap if you listen to the ever hopeful bulls in the name. yahoo? we still use it. in fact, for many of our users, the day starts with yahoo finance. as i stroll the floor of the new york stock exchange on the way to post 9 for "squawk on the street," yahoo remains the home page for many americans. so people ascribe this tremendous loyalty to a website as something that should make them bullish on the company behind it. they think hmm, i like yahoo, i use yahoo. therefore i should own yahoo. kind of like the kid we herald
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from earlier who thought about buying angie's list. place we know the parts have unlocked value and the parts are worth more than the whole. the problem is the boneheads at yahoo seem not to bring out that value, or at least not being able to create more value. given that this is an $18 billion company, i think yahoo is too big to be taken over, nor do i believe anyone would want buy company that is in such horrific decline. so instead where we get news today where they lay off 2,000 people, we somehow become encouraged. we become encouraged. it's not reason to buy the stock. if anything, it's reason to sell the thing because it means more con turmoil and confusion in a company that is already wracked by turmoil and confusion. look, here is the crux of the problem with both of the companies. rim? rim is up against apple. that's a peashooter against a howitzer. yahoo is up against google, an impossible and implacable enemy. plus, yahoo has no mobile, no
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social, and no cloud offers of any consequence. and that's where the world is headed. google has all three. you can't bring a butter knife to a chemical warfare fight, and that's exactly what yahoo is doing with google. so i say forget the false bottom fishing. worry more than yahoo could ultimately be aol. these were at one time the gold standards and the growth standards in the industry, worth billions of dollars. now they're mere shadows of their old selves. one more thing. never forget that at one time kodak was real big too. stay with cramer. next, thou shalt curb out of control government. my special guest nikki haley. >> larry's ten commandments of growth, next on cnbc. here's a chance to create jobs in america. oil sands projects, like kearl, and the keystone pipeline will provide secure and reliable energy
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to the united states. over the coming years, projects like these could create more than half a million jobs in the us alone. from the canadian border, through the mid west, to the gulf coast. benefiting hundreds of thousands of families throughout the country. this is just what our economy needs right now. yeah, you -- you know, everything can cost upwards of...[ whistles ] i did not want to think about that. relax, relax, relax. look at me, look at me.
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three words, dad -- e-trade financial consultants. so i can just go talk to 'em? just walk right in and talk to 'em. dude, those guys are pros. they'll hook you up with a solid plan. they'll -- wa-- wa-- wait a minute. bobby? bobby! what are you doing, man? i'm speed dating! [ male announcer ] get investing advice for your family at e-trade. the chevy cruze eco also offers 42 mpg on the highway. actually, it's cruze e-co, not ec-o. just like e-ither. or ei-ther. or e-conomical. [ chuckling ] or ec-onomical.
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pa-tato, po-tato, huh? actually, it's to-mato, ta-mato. oh, that's right. [ laughs ] [ car door shuts ] [ male announcer ] visit your local chevy dealer today. now very well qualified lessees can get a 2012 chevy cruze ls for around $159 per month. e.p.a. estimated 36 miles per gallon highway. nds on "the kudlow report," strong dollar and lower energy prices are bullish for stocks. plus rising gop stars south carolina governor nikki haley visits me. she'll talk tough on unions and the vice presidency. and is rick santorum calling it quits? his biggest backer, billionaire foster freeze joins me for a live exclusive interview. "the kudlow report" just moments away. all right. my old paul larry kudlow is up next. and don't miss my rant on his show about what the labor department is about to do that has me scratching my


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