everyone has a story. have a great winesday, wednesday, everybody. god bless and thank you, billy. we got a hit! -- captions by vitac -- www.vitac.com 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 ju 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
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 be throwing these bums out as opposed to actually looking at the lineup card and recognizing we got 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.
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 in the tooth, we've got reasons for a sell off. a miserable quarter from apple supplier sandisk, although it's not clear it was apple's fault. they make flash memory. 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 taking it on the chin. hard assets are dead? i read multiple intra-day obituaries of both, with some rather unflattering death notices. but at the risk of 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 i make the case for why 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
slowing data from the u.s. it's possible, right? we also had pretty big positives. you know ford in the midst of this negativity boosted the number of cars that will be bought in this country. very robust levels. 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 fave 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? 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 some razor ribbon, barbed wire and a few claymore mines and because i'm old-fashioned, punji sticks. stocks have run a lot. 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 a 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,
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 the 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 robust as the fed seems to think, we better hope the saudis keep pumping over time, 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. 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
metal plummeted in price today, you would think that gold has turned into iron pyrite. you'd believe that charlton "moses" heston is about to cast "dathan" robinson and his golden calf out into the desert, like gold is worth less than soylent 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 that etf i like to talk about for gold, it's gone from $139 to $157 year-over-year, a 12% increase. how have the stocks done? goldcorp, the best of the lot, down 16%. barrick down 20%.
agnico-eagle 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 nor 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 for a couple days. maybe you're right tomorrow. but history says the bogus linkage will eventually lead you astray. here is the bottom line. it's actually disheartening we're so quick to hate stocks, hate gold, hate oil the moment we have a tough day. that's a sign of a bull market.
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 head for the exits. go turn on rain down 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 thoughts on bernanke's decision that put qe on hold. the companies we have making a lot of money and hoarding cash, and they're not hiring too much. >> right. >> meanwhile, commercial banks are garnering high interest
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 has he simply stopped 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, annie's, on the floor of 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 old home state of pennsylvania. kathleen? >> 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, ong'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
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 from baltimore. alcatel lucent was down materially today. 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 you 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? text, talk, jam, work, game, cam, shop, and surf all on the move. wireless data consumption is expected to grow 15-fold over the next five years. and with technologies like lte providing the juice, how do you play the crowded skies? stick around to find out. and later, back to the future? the charts 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. all coming up on "mad money."
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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, sbac for all you home gamers. the smallest of the big three tower operators. 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 as 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 perhaps the smartest, 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 new 4g ipad devours bandwidth 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 bandwidth shortage. we've already seen a bunch of stories about how there is so much streaming of video happening that we had to light fiber for the first time since the overbuild during the tech bubble. and that means wireless streaming, too. that's among the reasons why 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 either have to get their hands on more electromagnetic spectrum or put up more cell sites by placing more antennae, 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 the fcc increases the amount of spectrum available by 20%, but that's not nearly enough. according to data, they should grow at a 75% clip over the next five years. i'm calling it a 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 tower plays. think american tower. how many times have they been on 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 actually 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 antennas 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 are about 85%. i don't know many companies that have that big an operating margin, and that's huge. so if the carriers pay a company like sbac to build out their capacity, almost all that money flows to the bottom 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 about 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 antennae from additional carriers and grow their revenues very cheaply. there is one more reason i'm focused on sbac. it's pretty important. you're being given a spectacular opportunity to buy this one at a slight discount. i have to say slight because you don't really get one very often. on monday after the close they announced a secondary offering
connected with the sellers from this incredibly creative mobile deal. creative meaning it's going to make it 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, a term of art as we say in the business, 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 communications' secondary offering related to the brilliant and accretive mobile acquisition. the fact that a huge slug of stock got put away so quickly shows me there is real demand there. given the need for addition antennae to meet the desperate bandwidth 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
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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, deja vu, feels like 2011 all over again. people say europe is in the driver's seat. but as i said a zillion times since the new year began, 2011 is over. and this market, 2012 is a bird of a different feather, if 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 months ago. that means today's decline is not a reason to panic. we're back in bull market mode this year. even as 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 circle the 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. in last night's off the charts segment, we talked about la's little, suggested intel and microsoft could soon 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, little believes 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. but little c's mr. softy, wall street speak for ticker msft, a term coined by me on "squawk box" while bantering with my late mentor mark haines, thinks it's ready to run. little said it could shoot that
through that roof sooner rather than later, and he used a $47 price tag. it's almost back to its dot-com era highs. little's chart suggested we could be looking at a 50% gain in mr. 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 no sandisk. intel is real good and microsoft is even better. we aren't deterred by sandisk's numbers last night. that flash maker has been a terrible executioner for ages. however, here on "mad money" we never decide anything solely based on the charts. when it comes to stock picking, i'm a dyed in the wool fundamentalist. 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 else 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. it was the wintel era, as in your pc ran on microsoft 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 wintel. these days the pc is no longer a
growth category and 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 yields 2.5%, intel 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 has been suffering because of a shortage of hard drives caused by flooding in thailand that pushed up most computers. and of course we know we like apple. but now it's looking 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 computers with intel processors. 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 trends 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. those servers need processors. and intel makes the best chips on the market. the server business currently 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. 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 acknowledge microsoft's tremendous install base. you combine the vast base of customers with the big new product launch and you get a 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 tablets, microsoft won the battle for video game consoles against nintendo and 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 a way to watch breaking bad, justified and homeland. yes, i like apple more than microsoft. who doesn't? the skype acquisition 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 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, save yes, its all star nemesis apple. duane in utah, duane? >> caller: ba-ba-boo-yah from it
utah, 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 it had a big drop today. what should i do with the rest, or should i get back in? >> you know, there will always be 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, buddy. >> 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. i've been in it forever. it was $40 at one time. 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 just 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. >> 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 attracts people to invest in a company that doesn't make money, but loses money year after year? >> 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 them? 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 "mad money."
it is time, it is time for the "lightning round." rapid fire 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: sunny 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 should 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 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 one is just 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,
should i sell it or buy linn energy? >> 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 lynn more than encana, but i would not dump encana. joseph in new york. >> caller: boo-yah, this is joe from new york. >> good to have you on the show. >> caller: about sina -- >> 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 at 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 jewelry 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 gold. i do like gold. i do like the gld. and the chartists 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 conoco phillips and you know, it's about the same thing. >> conoco phillips 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"! [ buzzer ] >> the "lightning round" is sponsored by td ameritrade. thi. the day starts with arthritis pain... a load of new listings... and two pills. after a morning of walk-ups, it's back to more pain, back to more pills. the evening showings bring more pain and more pills. sealing the deal... when, hang on... her doctor recommended aleve. it can relieve pain all day with fewer pills than tylenol. this is lois... who chose two aleve and fewer pills for a day free of pain. and get the all day pain relief of aleve in liquid gels.
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. 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 high. came public recently, i'm try figure out if that is a tortoise or a hare. people have been down on bemis, buying 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 purposes of the exercise is very diversified. okay. let's go to ken in my home state of new jersey. >> caller: hey, jim, how are you? >> real good. >> caller: a beautiful day at beach from long beach island.
>> i'd like to knock back one at the dutchman. do i know my places? >> caller: you know your places. >> i'm no joker. ron john, speak to me. >> caller: invn, invensense, solarwinds, swi, under armour, ua. continental resources, clr, and intuitive surgical, isrg. 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 ] invensense,this is one that has confounded me. we had imax earlier. consumer electronics is not my favorite business.
continental, that's harold hamm and the huge producer in the bakken. under armour downgraded today. i love their stuff. solarwinds. intuitive is a medical company. a software company, we have an apparel company, we've got, holy cow, man. just a second because i want to be 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 too speculative. the whole portfolio is way too speculative for me. but anyway, it is diversified. >> hallelujah! >> john in california, john? >> caller: boo-yah, jim. how are you do? >> all right, how are you? >> caller: bad, bad market today. >> real bad. >> caller: okay. my stocks are arr. 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. speaking to stephanie link, 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 real estate, an oil and gas, an entertainment company, that is diversified and not too speculative, although guys, again, i apologize. i have to have armour residential 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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people always want to keep trying to call the bottom in terrible stocks of terrible companies. [ booing ] it's like some curious addiction that we just can't shake. 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. rimm's blackberry, 77 million users. surely that's got to be worth something to somebody, right? something more than the 6 billion in our market cap if you listen to the ever hopeful bulls in the name. yahoo? we still use it. in fact, for many of our viewers, 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," it's the page i see most traders scanning. 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 heard from earlier who thought about buying angie's list. plus we know the parts have unlocked value and the parts are worth more than the whole. the problem is that 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 to buy a company that is in such horrific decline. so instead when we get news today where they lay off 2,000 people, we somehow become intrigued. we become encouraged. it's not reason to buy the stock. if anything, it's reason to sell the thing because it means more turmoil and confusion in the ranks of a company that is already wracked by turmoil and confusion. look, here is the crux of the problem with both of these companies. rimm? rimm 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 social, and no cloud offerings 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 that 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. it makes for one, lousy day. but when you're alert and energetic... that's different. you're more with it, sharper, getting stuff done. this is why people choose 5-hour energy over 9-million times a week. it gives them the alert, energetic feeling they need to get stuff done. 5-hour energy...when you gotta get stuff done. it's like totally crunch-erific!
okay, look, we know that we have a sell-off going here. do i think it's going to be of any great magnitude? i think we're up so huge since the beginning of the year, i don't blame anyone for taking profits. like i say, there is always a bull market somewhere. i promise to try to find it just for you. i'm jim cramer. see you tomorrow.