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tv   Mad Money  CNBC  April 20, 2010 6:00pm-7:00pm EDT

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rich people? and now i'm rattled because i'm thinking, hmm, well -- i'm stumbling. because i see how pervasive the attitudes about wall street have become in this country and i'm not prepared. they weren't done. i mentioned goldman sachs. crooked! crooked? wall street's filled with people, one of the kids told me, who know more than others, do better than others. it's not fair. now the clock's ticking. well, i've got an hour with these kids. i changed the topic. coward that i am. started talking about the show. hey, here you go. you know what i mean? i didn't want to defend goldman. leave that to others. i didn't want to defend wall street. it wasn't worth it. but did i defend stocks as an asset class? did i explain what can't be manipulated? did i make any case at all for the greatness that is the stock market? did i talk about what isn't phony? did i defend pretty much the only thing you can trust with stocks, the dividend, the money
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you get from a company for simply owning stocks? no. i blew it. i'm furious at myself. i blew it. i had a lesson plan that was ready, but i got derailed. i got derailed by the disdain. i didn't think fast enough on my feet. so tonight for the fabulous kids in kings collegiate, that's the charter school in brooklyn that i was at, and for everyone else here's what i should have said. you bet there's some unfairness in this stock market. you bet that the big guys do get better information. you bet that wall street isn't necessarily fair. you bet there are a lot of wrongdoers. but that doesn't mean you still can't make money in stocks. it doesn't mean it's better than your mattress, it's better than gold, it's better than real estate, it's better than bonds. you can protect yourself against deceit. you can get some immunization from what even the seventh-graders in brooklyn
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know, that this game often isn't fair to the little guy. you can defend yourself, but you won't have other than diversification, you only have one thing that's a shield to the bad guys, and that's dividends. because dividends, unlike people, do not lie. why do i think this? statistics. empirical evidence. consider these. from the start of the last decade until the end of march the s&p 500 down 20.4%. the dow down 5.6%. but now let's look at it through the prism of dividends. with dividends the s&p is down just 4.2%. the dow, it's up 19%. 19.4% to be specific. it's up. last five years, don't believe that? how about the last five years? s&p 500 down .9%. dow is up 3.4%. now let's throw in the hallowed dividends. s&p, 10% gain. dow, 17.8% gain.
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not a long enough period for you? let's go out 20 years. 244% return for the s&p, 301% for the dow. but now let's give them the dividends. 425%. 549%. that's right. when you include the dividends. that's why i devoted a whole chapter to dividend investing in "getting back to even." you would have thought i would have thought of it. or consider the series we did in february of this year about how to spot upcoming moves by monitoring dividend increases as a dividend boost is usually a good sign that a stock's going higher. we highlighted hasbro, core labs, ross stores, rollins, wyndham. do you know on average these stocks have done better day to day than the broader market? today's typical, up 3.8% versus .3% for the s&p 500. how about their overall prormt performance? up 29.1% since i highlighted these aggressive dividend boosters. s&p it's been a good period but it's only up 14.2%. or witness how well you could have done if you'd simply invested in classic great american companies when they had accidentally high dividends
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during the great recession. i'm talking about stocks like eaton, one more magnificent quarter today, delivered by sandy cutler. do you know at one point eaton yield 5d.1%? it was down at 39. of course the stock then doubled. why? trampoline effect off a dividend. how about chevron? gave you 4.7% yield when it dropped to 56. it's now rallied to -- 82 points. emerson, fabulous industrial, yielded 5% at the low, now rallied 109% since then off that dividend floor. yep. that's why you can believe in dividend stocks. and it is worth pointing out, especially when people seem to be possessed by what goldman sachs did or didn't do, which i regard as a side show, and how rigged the game may be against you at home or the seventh graders at kings collegiate, that dividends can't be manipulated because they are cold, hard cash. even if you believe that wall street is full of mountbanks, full of sharl tanz, full of liars, even if you think the whole thing is a game of sham, a mugs game, the dividend is money
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in your pocket. we used to joke to the shakira corollary, unlike hips and people, dividends don't lie. and neither do the numbers that prove the outperformance of dividend-paying stocks. come to think of it, where has shakira been lately i? would have thought she could be in beyonce with stock sage beyonce and lady gaga. shows you how out of it i am in even the pop world. i wasn't ready in that class yesterday, but not everyone was as slow-witted as i was. as i stumbled and tripped and fumbled over what you needed to do to stay in the game, smart kid raises his hand. direct to my left. he says, hey, wwe's a great stock. worldwide entertainment. wrestling company. yes, it is, i said. you know why? well, he had a simple reason. he said it's going higher. good reason. but that was my chance. wwe hit a 52-week high today, up 53 cents, 18 bucks. why? good earnings. but more important, big dividends. it yields 8%. maybe one day the qulas will have me back.
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maybe that day i'll be like the young gent who singled out wwe, will be ready to explain why it's not worth giving up on stocks because there's one aspect of stocks worth defending in this incredible moment of disdain for wall street. where wall street's become the most reviled of institutions. and that one thing worth defending is dividends, the cash they pay you for doing nothing but being a shareholder. class dismissed. john in connecticut. john. >> caller: boo-yah. >> boo-yah, chief. how you been? >> caller: good. how are you? >> darn good. thank you for asking. >> caller: great. hot topic. i bought it last week after you first brought it up hoping i would collect off that dividend and hopefully watch it climb up like the competitors. >> right. >> caller: the next day you dressed up like kurt cobain, the stock went through the roof. then it tanked like ben roethlisberger's image. what should i do? >> well, hold it. just a second. ben -- it wasn't just the image. he had a crummy year. hot topic's having a good year. massive insider buying right now. i think you take advantage of
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it. sometimes good things come to those who keep accumulating as the insiders are going to and as i hope you do. let's go to michael in my home state of new jersey. michael. >> caller: hey, cramer, mike from parsippany, how are you doing? >> not bad. we crushed you guys in the old days when my daughter -- never mind. >> caller: loved the south park spoof the other day. >>s wan't that something, the mad friends? how about the margaritaville machine i? was talking to that guy franklin, jarden reports soon, that's his company. by the way, he liked the whole thing about getting southeastable note -- south park, by the way, for those who don't know it had the single best exposition of what caused the great recession much better than anything i heard from fuld today. go ahead. >> caller: i'm a big believer in hefty reliable dividend plays that help me pay my monthly bills with their dividend payments. >> that's why because you've got horse sense. >> caller: i've got at&t that helps pay my phone pill, exxon helps pay my bumth at the pum. and my food bills from pepsi and kraft. being from new jersey my utility
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bills comes from fe so i'm looking to grab something at a discount but they've run up some debt and want to make sure the dividend is safe at about a 5.8% yield and near its 52-week low. should i be diving in or looking for another safer energy play? >> can i just stop for a second and say that michael has done a massive amount of homework? you heard about how he pays for everything. this is my kind of cramerican. and his conclusion about first energy could it be more right? stock's been forced down by a very smart acquisition they're making. it's a terrific opportunity to accumulate it. michael, you don't need me to tell you what to do. however, michael, i actually need you to tell me what to do, and you have just made an excellent call on "mad money," and i thank you for participating on the show because you rock entirely. leonard in pennsylvania. leonard. >> caller: how are you doing? boo-yah from the town of mcnammisville, pa. >> i'm a kolb believer, andy reid believer, roseman believer who's the general manager. i believe in the draft, this pickup yesterday.
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i've got kornheiser on the line right now and he thinks that -- no, actually, i don't. but i did dream that one day kornheiser would come on my show. how can i help? >> caller: well, instead you have me. >> yeah. you know what? to heck with kornheiser and that washington redskins! i'm glad i have you. go ahead. >> caller: a couple weeks ago you mentioned the stock jdsu. >> that's a rocket. >> caller: someone in my family watched that go from the 90s to about $3. >> it was don't us and then it was just don't sue us. but go ahead. >> caller: i use that too. somebody named cramer mentioned it at about 7 1/2. it's at 13 five give or take. do i take the money and run or do i sit with it? >> i mull this over every day because jdsu, we have a huge win in jdsu. it's been nine years since anyone's had a win in jdsu. so do i press my bet? am i greedy? am i a classic philadelphian who is like hero bum? you bet i press my bet.
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jdsu's going to $20. i wouldn't leave it now. i'd rather cut mcnabb than cut jdsu. and that says something. "telephone," right? this isn't a game of telephone. i'm giving gigunda boo-yahs to the people in teetsford america and kings collegiate for asking me the tough questions and reminding me how reviled the game is. but some of it shouldn't be reviled. the part that pays dividends. "mad money" will be right back. >> announcer: coming up, mobile mania. could the anytime anywhere internet keep your portfolio connected with profits? cramer's going one on one with ciena's ceo on the "executive decision." and later, retail resurges. one stock's been up huge in the past year. but could it still be undervalued? cramer's going off the charts to find out. all coming up on "mad money." miss
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tonight, in tribute to the late great comedian investing guru george carlin, boy, he loved the show and used to give me tips every week about how to make it better, i want to talk about the one dirty word you can't say on financial tv. speculation. i'm just about the only person in this business who encourages you to speculate, take a chance on risky stocks that can deliver huge gains. everybody else will tell you it's too dangerous for the home gamer, that you're playing with fire, can get burned. remember, you've got to have some stomach for risk. you know what i say? i want you to take a look at how long we've been with ciena, cien, a telco equipment company that makes the gear needed for faster transmission of data, especially video over the internet. you'd better believe we need that more than ever with apple's ipad now adding to the bandwidth clog created by the iphone, not to mention the mobile internet and virtually every other facet of networking to boot. given the unbelievable quarter apple reported today,
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unbelievable, with a huge crushing of the iphone numbers, we need more tech behind apple's phones, and ciena has it. since we first recommended ciena, at that point it was speculative. on december 12th of 2008. it was at six bucks. $6.13. the stock, which is now totally investable, no longer speculati speculative, has tripled, up 197%. it's up 72% since we reiterated that call on june 19th the last year. up 60%. so he with made it a component of our mobile internet index on august 11. that's why we estimate speculate and that's@street's almost always wrong. they wrote this company off a long time ago. i don't think ciena's finished. this company came out with even more good news at its incredibly bullish analyst day today. hard to keep up with the parade of good news. a lot of analysts are keshd about this story. why? because they don't know how ciena will look when it completes the acquisition of bankrupt nortel's optical networking business. to me they are apos taits because we heard some fabulous things today about how the buying company will be the third largest networking equipment player, 9% market share 18 to 25
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largest telecom providers as customers will look. this company's targeting 10% to 12% revenue growth, don't get a lot of double digits in the game, especially if it will be breaking even at the echbd fiscal 2010 i think that's too low. still some worries, huge debt levels the deal brings. but i think it's a genius move to buy this nortel and i believe ciena will keep powering higher. will how will they pull it off? we've got ciena's terrific ceo, who has been through the mill, the war, and came out smelling like a rose. i'm talking about gary smith right here with us to help you understand the story. mr. smith, welcome to "mad money." good to see you. >> thank you, jim. >> sit down. >> thank you. >> they wrote you off, they didn't believe. tell us about how you could be so gutsy as to do an acquisition that everybody panned that all of a sudden now everyone's saying they thought snf. >> well, we thought it was a great idea from the start and we focused on doing our due diligence and just doing the right thing. >> now, how did it transform -- a lot of people think ciena they don't know anything, they think it's like the crayon color in the box. talk about what ciena was
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before, what ciena was after, and why this was so important. >> well, ciena before was a really specialist player in basically facilitating the internet. as you say, srt of the circulatory system for the internet and mobile networks. now with this acquisition if gives us global scale and we're the number one in north america and as you say number three globally. it gives us the opportunity to invest and scale the network up for our customers. >> huge piece of business by tt today which i think is break out. would than the kind of thing you wouldn't have qualified for before this ak wiz snigs. >> that's exactly right. what's happening in the industry is you've got very large carriers around the world. we've got 75% of those large carriers with this acquisition. and what they're looking for is fewer vendors that are more strategic to them, and we're well placed for that now. >> okay. what do you have to get rid of÷ what do you havechange? there is obviously a -- why there were objections was that nortel was a failed company. so what will you have to do to
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change that culture? what can you get rid of? what can you keep? what can you make better? ? the thing to bear in mind is we took a part of that, not the whole piece. >> absolutely. >> this particular division we took was very'll known for innovation. they have the world leading technology in this high capacity networking. so you know, really that's what we were getting. and we've got a great set of technical and sales folks that come with that business. >> what do you say to people saying you took on too much debt and now we've got to be worried about that? >> we're in a great cash position and we need that ash to make sure we can do the integration properly and i think we've got a very strong balance sheet. >> i totally agree. i think you've got great growth. but now i you to think about bigger for our viewers. i know you watch the show. i tell people about the internet tsunami, i tell people this is bigger thaechblt mashlgs bigger than the dotcoms, bigger than the pc, this is the biggest thing i've ever seen. am i too conservative? >> i think over the medium term, no. i think we're at the early stages. i'm one of the few people who think that --
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>> what's it going to look like in tell my viewers that this isn't just pie in the sky, this is an amazing development. >> we're just seeing the early days of it, the combination of mobile and internet and video and i think you're looking at the next generation of phones, you're looking at what iphones are doing, and that's going to create an enormous amount of capacity requirements globally. >> a lot of people talk about how the fact that some of the networks don't have the capacity, i've been signal that i lot of that may be tower related but a lot of it is the kind of thing you do. you need more ciena, right? >> we certainly think so. all bandwidth, all capacity is good capacity as far as we're concerned, whether it's people surfing the internet, whether it's video downloads, whether it's mobile. you know, it all has to end up as capacity. and that's really what we're in the business of. >> so then the smartal eck guys tell me how can smith and ciena compete against cisco? juniper, who had decent numbers tonight. are you david and they're goliaths? >> well, i think with the acquisition we're certainly a larger-scale company than we were. but they're really complementary, to be honest.
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we really compete with people like alcatel, lucent, and you know, we did compete with nortel. so we're really acquiring and consolidating the industry, which makes it more advantageous for us. >> i've been saying this stock's kaep bays actually think -- i'm going to put out a number. you can say jim that's aggressive or i hope so or you can say nothing. but i had i you have $3 in earnings power and that's why at 18 i think the stock is selling at six times future numbers. any chance that $3 in earnings power's due? >> there's a lot of moving parts to it and we've only had the keys to this acquisition for about four weeks. we're off to a great start with it. we've done a tremendous amount of planning because the bankruptcy process, the benefit of that is is a long time. but i think if we can execute well, which we're focused on so, far so good, we've got a lost of ways to go but i think we can get a lot of operating leverage out of this business. i'll say that. >> at&t is i think more of a precursor than the end of the road. don't all the large guys need to do what att's doing?
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>> we certainly think so. the architecture we have really allows -- the architecture around the world was built for terrestrial voice. you know, wire line voice. >> right. >> so all the phone companies essentially have an architecture that was designed for that. now, the traffic that's going on is video and mobile and is scaling exponentially. so really how do they transition their networks to deal with video and mobile? that's really the sweet spot of ciena. >> one last question when i was at my hedge fund where i first met you, i don't work now, i don't trade, i don't own -- i have a charitable trust. there was a period where we all got too excited. and you know it and i do. the stocks would go up every day and we thought there was never going to be -- we'd never have anything other than i ashortage of bandwidth. and then it all crashed. i want to be sure that never happens again to our viewers. is this the time that maybe we're even too skeptical and that people don't realize how big this can be, or again should i temper my enthusiasm? >> well, i think having lived through that -- >> i know. >> -- at ciena perfectly well, i
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think a healthy skepticism is always good. but i do think now what's the difference between now and 2002? >> what's the difference? >> in the telecom bust. really now you've got business models where people are making money on the internet for sure. and people are paying for real capacity. where before it turned out that there wasn't real capacity. being used by -- >> now we have youtubes. we have facebook. we have all these things that really matter. >> the business models have matured. and i think that's the difference now. >> all right. gary smith. this guy has been around. believe me, director, president, ceo of ciena. i am proud that at 6 when everybody else ran away i went all in. and you know what? at 18 i'm still all in. gary smith, good to see you, sir. thank you so much. >> thank you. >> after the break i'll try to make you even more money. >> announcer: coming up, retail resurges. one stock's been up huge in the past year. but could it still be undervalued? cramer's going off the charts to find out. and later, send cramer an e-mail to
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and he might just answer you on the air on an all new edition of "mad mail." all coming up on "mad money."
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♪ our house ♪ is a very, very, very fine house ♪ relaxing in my chair, maybe have a little "mad money" liqueur de cramer. maybe read my favorite book, "merchant of" -- excuse me. pier 1 imports, pir, the place you go to buy papa san chair chairs, all kinds of decorative stuff you don't need, it's back. the stock is up 507% over the last year. april 8th the company reported a fourth quarter that while it disappointed by a penny on earnings was chock full of positive that's amount to what i regard as proof of life or, more importantly, one of the most difficult things to do, proof of a turnaround. for years ever since 2006 pier 1's stock has languished under
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$10. now it looks like new management has put the stock on a path to breakthrough, one that is being caused by closing underperforming stores, improving existing ones, getting better merchandise. hey, great price point, too, by the way. more important, the economic turnaround is making it so the consumer's once again shopping for things she doesn't need. whether it the toaster to the jimmy buffett margueritaville machine. and that same trend has benefited other house and furnishings plays. papasan chairs and pier 1. i have one of these at my beach house in ocean grove. you can't get me out of it no matter how nice it is outside. but the question is not whether i should go outside at my ocean grove house but whether you should buy pier 1 right here just off its 52-week high and up more than 5% from a year ago. tonight what we're doing, we're going off the charts with the help of tim collins, fabulous technician, my colleague at, writes for the paid side of realmoney. i'm chairman over there. and collins is going to provide
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us with the answer of whether we buy pier 1 or just stay in the papa san chair. collins likes pier 1, but he would not be a buyer right here based on his reading of the charts, which is what we do every tuesday. okay? now, let's take a look at the daily pictograph of the action in the stock of pier 1. right now we're seeing a low volume. that's the volume indicator. pullback. this is the pullback. okay? to test pier 1's recent breakout off its latest terrific earnings's the breakout. okay? we're testing it. collins thinks if pier 1 fails to hold up at the levels it established after the big gap higher on april 8th, it doesn't hold at this level. okay? that it's likely to test the 7.40 area. so if it doesn't hold here, he thinks it goes to here. all right? now, that's a big deal. that's where he thinks it could go because that was the high volume breakout. that's where it began. and he sees that as a very
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attractive entry point. given that pier 1 bottomed at 6.50 during the very high volume sell-off in march. we see where it bottom the right here. and continue thoeld on low volume. again we go back and look at the volume. we have to look at all these things. chartists don't just look at this picture and say oh, here, here, they look at these important things like where the breakout occurred with the levels. now, collins thinks that pier 1 would only have about 90 cents of potential down side, or 12%, if you can buy it right here on this pullback. so in other words, he says if you get athat you can be pretty sure you're going to be in good shape there. that's a great risk reward, he says, for what he thinks could be a double-digit stock before the end of the year. in other words, he thinks it's ultimately going to go to 10. there's another reason collins sen tranced by that 7.40 level and you can see it now on the weekly chart. remember, different time period. now, this is really important. ever since july, whenever pier 1 has traded down to what's called its 14-week moving average. okay? you've caught a fabulous bounce.
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this has happened a half a dozen times. right there, right there, right here, right here, right here. he's saying you've got to let it pull back to that line. all right? based on the current price and recent patterns, that 14-week moving average is now right around the 7.40 area. again, that's where he keeps thinking that the opportunity is just blessed. that's why collins thinks the smart trade is to wait patiently for further pullback in pier 1. the long-term picture is very compelling. let's go back to the daily chart for a second. i want to show you something. this shows you how i feel. okay? by me, i like his reasoning but i'm not sure pier 1's going foul back to where it is. especially if i think he's gone to double digits like he does. what am i doing messing around, trying to get it to here? where it was before its latest quarterly report, which was so full of signals that the turnaround this company's been working on for years is finally bearing fruit. i think collins is being way too cute, betting this stock goes back here.
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especially if both he and i think it's going here. what's the point of waiting? let me tell you why he's too cute. three years ago pier 1 brought in alex smith. he had previously wron the marmax division of tgx. you know how much we like tjx on the show. it's bain monster. the first thing he does is bite the bullet, shuts underperfo underperforming stores, closes 112 locations from 2007 to 2009. do you know how much guts it takes to close stores the other guy had? he successfully negotiates lower rents for a third of the remaining stores. so he increased their profitability substantially. that's thinking. that's good managing. he also improved pier 1's merchandise, ex-papded the number of buyers from less than 10 to more than 20, made it possible for them to focus more attention on changing trends within their product categories, spend more time in the field looking for new merchandise. i don't know but but my pier 1 i felt it was stale. yes, i do go to pier 1. my pier 1's no longer stale. he also shifted the product assortment in furniture away
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from higher ticket, slow-moving products like armoires and dressers to smaller, less expensive fast turning products like accent tables and papa san chairs. if you've never tried one of these, you're a huge loser. smith is now updating the stores, starting the first wave of improved lighting, fixtures, and infrastructure. better show off pier 1's assortment that should touch about 50 stores. second wave of that should actually come this summer. the stores do look dated. pier 1's most recent quarter was a total vindication of this amazing new strategy. same-store sales increased by 6.5% for the quarter. the second positive comp after six quarters of declines. how do you like the way he broke that tailspin? same-store sales for march increased an astonishing 19.4%. i know, early easter. bear with me. customer traffic and average ticket size both increased. pier 1's gross mafrnlgin what it makes after sales increased by 12.7 percentage points thanks to higher initial mark-ups, lower markdowns, and lower store occupancy costs. that's an amazing and staggering figure. the balance sheet strentd.
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109 million in and 35 million in debt. not long ago we thought this company might have to file bankruptcy. inventories are flat but much cleaner. the tone of the conference call was more upbeat than anything we've heard reproductly. we arrive here today stronger leaner and more determined to take market share than ever before. he sounds like a coach that's going to go all the way, doesn't he? so i have to wonder whether this stock will drop back. let's go back to this. whether it will ever drop back to where i saw that proof of life, the proof the turnaround is working. given that the street still isn't sold on pier 1 six analysts cover it, two sells, one hold, three buys, i see plenty of upside, especially since the stock trading at 14.5 times next year's earnings sch cheaper than best in class housewares names like williams-sonoma, which you know we think is fabulous and we did catch a very big run in, and that's at 18.5 times earnings. here's the bottom line. i think timothy collins is right. it would be terrific to wait for a pullback before pier 1. it's always great to do. but you know, i don't think you're going to get that pullback to 7.40. i don't think it's going to
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happen. that's the one he's hoping for now we have proof the turnaround is working. if you can get this one at 8 or even 8.25 i would pull the trigger as fast as i could because i believe this one is on the way to 10 plus. that's right. i think it's going to be a teenager by the end of the year. pier 1's back. you can't wait for the stock to act as if it isn't. you'll miss the big turn. ryan in indiana. ryan! >> caller: ba-ba-ba-boo-yah, cramer. >> boo-yah to you, ryan. >> caller: i'm a college student from southern indiana and i started watching your show about a year ago and i've watched religious lly since. >> you're the best. how great is it we have college kids watching the show? i thank you for that. what's up? >> caller: my question is about jarden, jah. a while become you had the ceo on and recommended the stock. and i've been following it since then, and it had been on the up trend and kind of following a pattern where it would go up and pull back to its moving -- or 50-day moving average. >> exactly. >> caller: where jarden is now.
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where is jarden growing from here? >> first of all i've got told thank you i got some insight today about jarden because i'm always making calls. they 345ik coleman tents. you know there is a tent shortage in this country. an actual tent shortage. i know it's one of their myriad businesses but the housewares business is on fire this new anecdotal information i have about the tent business plus the fact they'll report real soon and i am very confident makes me want to pull the trigger ahead of the quarter i think martin frankl franklin's going to deliver at 32 bucks i like that stock very, very much. can i speak to andrew in d.c., please? andrew. >> caller: hey, jim, a big boo-yah to you from the sammy house of american university. >> american university. now we're starting to talk about david gregory's stomping grounds. this doesn't get better than this. i'm telling you the college kids love the show. they love a 64-year-old guy. i can't believe it. i never understand. maybe because they have my "mad money" liquor. >> caller: yeah. it's a great day to be here. >> it's a great day to be alive for heaven's sake. go ahead. >> caller: i want to talk to you about walgreen's. they've been buying a lot of land over the past two years. >> true.
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>> caller: i'm thinking maybe this is something i want to get myself involved with. i look at the competition, rite aid, cvs. their stocks are selling through the roof. between $1 and $5. when walgreen's at 30. >> you've got to get some horse sense. i don't even want to hear right sade in the same sentence. i went to rite aid this weekend. and other than the fact the guy recognized me they didn't have anything i wanted. it was really disappointing. thank heaven for target down the block. now here's the deal. and you've got to understand this and understand this good. walgreen's is real good. i think the duane reed acquisition is great. i've been looking at cvs almost daily for my charitable trust. i think cvs might have the edge right now on walgreen's. let's retreat to the home. our house is a very, very fine house, and i think pier 1 is back. remember, off the charts, my guy tim collins says $7.40. i think he is being pennywise but pound foolish. i say pick some up between 8 and 8 1/4.
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i've got to tell you, this ain't the same old pier 1. this papa san's same, though. still as comfortable as ever. stay with cramer. >> announcer: coming up, want to talk to cramer? call 1-800-743-cnbc. to find out how you can speak with the wizard of wall street on the "lightning round." and later, cramer takes all your questions and gives you the quick-fire responses you so crave. cramericans, we want to hear from you. so send jim an e-mail to and stay tuned for some rewarding replies on "mad mail." all coming up on "mad money." anncr vo: with the new geico glovebox app...
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it's time! it is time for a very special apple-related "lightning round" on cramer's "mad money." just kidding, but i love it. hey, what's that "lightning round" about? rapid-fire calls one after the other. you sate name of the stock i tell you whether to -- and then the "lightning round" is over! are you ready, skee-daddy? it is time for the "lightning round" on cramer's "mad money." why don't we start with rose in cal? rose! >> caller: hey, baby,
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ba-pa-di-pa-boo-yah. >> i like your attitude. you're fired up. >> caller: i am fired up. >> let's do some business. >> merger. merger. >> caller: a few months ago you were talking about receiving manna from heaven. manna from heaven. so i took your advice, jim, and i bought some sandisk, sdk. >> manna from heaven! yes, you could have had either the white bread which was sandisk or the whole wheat, which was cree. and they're both good for a big money sandwich. i want you to hold on to sandisk. i hike the pc business. how about altera blowing the numbers out tonight? how about apple? i think sandisk blows the numbers away. i want you to stick with sandisk. let's go to jeff in my home state of pennsylvania. jeff! >> caller: hi, jim. big-time springtime ba-ba-ba-boo-yah to you from mechanicsville, pennsylvania. >> holy cow, man, you are from heartland of heartland. how can i help you? >> caller: my question is about fertilizer stocks, mosaic and
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potash. they've been in freefall for about a month. and although we got a nice 3% bounceback today i was wondering if it was just a dead cat bounce or the beginning of something sustainable. >> just a little bit of a bounce. that's all it is. and that's why even though i like p.o.t. i would rather ring the register, move on, and get yourself some dupont with a 4% yield. get off of that spring. it doesn't have the lift that i want. anyway. let's go to ian back in florida. ian. >> caller: boo-yah square to ya, jimbo. >> boo-yah square. boo-yah cubed. what's up? >> caller: i bought rfmd in '07 and i watched the stock sink down to $1.95 in '09. they're coming out with earnings on april 27th. they're supposed to be reporting 11 cents on sales about 240 million. what do you think about my rfmd? and if you like it, how long should i stay in it so i can get
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out -- >> i think this is important. this is an internet tsunami stock that make parts for cell phones. he was on the show. he's a winner. i think this company is going through hard times. it's gotten out of the desert and is in the promised land. i think this quarter while i believe the stock has run so maybe there's some profit taking i want to own rfmd. and let me throw in by the way that i want to own xilinx which is in there, i want to own sign re cypress. dr. rogers always interested to the show. and let me throw in skyworks. and let me throw in triquint while i'm at it. >> buy buy buy buy buy buy buy buy buy buy buy buy! >> the tsunami is here. don't get wet, get long! >> buy buy buy! >> sal in florida. sal. >> caller: boo-yah, jim, from sunny sarasota. >> sarasota, man. it never rains there. and they've got that circus and everything. what's up? >> caller: hey, do you still like spf, standard pacific, after the earnings? >> i'm on the line and analysts are -- they don't like it. they don't like this, they don't like that. but ivy zellman, who is the best
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analyst, said it all in her long question on spf. she said the number was good, the margins are better, the company's coming back. that was a no reaction to sell it. i'm a buyer. that was a good quarter. people don't understand how to read a balance sheet. let's go to margo in new jersey. margo. >> caller: hi. how are you? >> not bad, margo. how are you? >> caller: boo-yah, jim. love your show. >> well, thank you, margo. what exit are you in the garden state? >> caller: yes, i'm in the garden state. we love it p weste. western part of the state. beautiful here. >> what, are you in huntington county? >> caller: yes. how did i know? >> because i'm a seer and a clairvoyant individual. >> caller: oh, hi, neighbor. >> how are you doing? >> caller: anyway, i'm interested in discovery communications, disca, because i heard that oprah might be having her new show with them. >> this is a winning stock. you're a winner and discover's a winner, and so is david zasloff.
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discovery's got all those programs. it's not just the meerkats anymore. there's a lot of good stuff. every time you put it on they've got the stuff, you watch the dvd a million times. this is the only station you can still watch with your kids. i think you can watch with your kids when your kids are 40. i am a buyer of discover. oprah, no oprah, i don't care. that company rocks p let's go to eric also in my home state of new jersey. >> caller: ba-ba-ba-boo-yah, jim. this is eric from south plankton, new jersey, i'm thrilled to be on your show. >> i'm thrilled you're on the team. how can i help? >> caller: thanks so much, man. i read all your books and i've learned so much from you throughout the years. my question for you today is about ralph lauren, symbol rl. is it a good time to get in now? i'm worried. when the stock dropped to 70 when all the analysts were wrong i said pull the trigger. i said done walk away but run to the stock. now the stock has gotten all the way up to 91. i'm getting a little skittish. at this price i'm going to say don't buy. don't take that personally.
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i know you will take it personally but i'm urging you not to take it personally because all i'm saying is how right we were in the 70s, moved up to 90, now going to get a pullback. don't take it personally! please, i beg you. let's go to antonio in north carolina. antonio. >> caller: hey, this is antonio from north carolina. i just wanted to ask you about palm. over the weekend it's been going up and down and i just want to see where this company is going in the future. >> too hard because they are in the end squaring off against what i think is the ultimate e icon, perhaps the greatest company that's ever been created in america, and i'm not talking about ford motor although alan mulally is pretty darn good. apple. i don't think anyone can beat apple. i'm dedicating the whole "lightning round" to apple. maybe a little altera -- no, apple. i think you cannot own palm here. you should stick with apple which i own in my charitable trust. and yes, i think you should stick with cramer!
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investors are demanding more for their money. good. this time, i'm watching fees like a hawk. i hate hidden fees. why should i have to pay for something that i shouldn't have to pay for? td ameritrade's pricing is clear and it's straightforward... it's spelled out upfront. no hidden fees... no bait and switch. no gotchas. and there's one flat rate for online equity trades... for big accounts... or small ones. that's the way it ought to be. time for fresh thinking. time for td ameritrade.
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we haven't done mad mail in ages. this is from cory. hi, cramer. thanks to you i bought bucy around 18 and rode to 40. i have watched it continue to 68. do you think the stock can continue to go up or is there too much risk now? it looks like china hasn't slowed down as some thought it might. remember, you never did wrong if you made money. if this stock has one of the sbra day pull-backs of 3%, 5% we see or if it's down for a couple days, yes, i want you back in. this is the big shovel company for china. it has multiple good years ahead of it. here's one from greg. jim, awesome show. thanks for the great info. with all the talk of alternative energy and oil prices spiking again, i'm looking for a good battery play to take advantage
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of the surging interest in hybrid vehicles and smart technology. i recall your segment on u-verse. you recommended we look at the equipment to get at the heart of a great play. i want to apply the same logic here. yes, that's right and att is breaking out my favorite with lithium. chile had that horrible earthquake and the stock is stuck. i believe in it. i think it's the best way to play. here's one from annapolis. dear jim, if you ever need a diving buddy, i've got you covered. that's one reason the caller with the mother who doesn't speak english watches. oh, congratulations on the south park mad friends. very funny. and other than iron man i was most touched by mad friends. these guys get the show and understand it's about entertainment and education to make you a better investor. i think the guys of "south park" maybe realize there is nothing like it or it's nutty, but i
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loved their endorsement and i took it as an endorsement because i endorse what they do and their great recession show was the single best show i have seen about the economy. we'll be right back after the break.
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it's hard to fathom how unbelievable apple is. the gross margins were gigantic, the revenues out of control. obviously the company is firing
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on all cylinders, blowing out the numbers for the iphone. don't even include the ipad yet. here's what's most important. you still haven't missed anything. the stock is still cheap. there is always a bull market. i'm jim cramer. see you tomorrow! >> should synthetic cdos be banned? is finreg 85% done?
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tonight on "the kudlow report" -- senator jim demint is trying to save the republican party's conservative soul. he will visit with us. plus, should synthetic cdos be banned? is financial regulation 85% done? 25 reasoned for a v-shaped bull market economic recovery. finally, apple had a blowout 90% profit on macintosh and iphones. fasten your seat belts, everybody. "the kudlow report" begins right now. good evening, everyone. i'm larry kudlow. welcome back to "the kudlow report" where we still believe free market capitalism is the best path to prosperity. richard shelby said today that financial regulation is 85% done. so are bipartisan talks back on
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schedule? here's chief washington correspondent john harwood with the latest. is it true? >> i think they are making progress, larry. it is almost certainly going to get done. for a time today, the backstage negotiations over financial regulation moved out of the spotlight. instead you had a house financial services committee reviewing what happened in the lehman brothers case trying to figure out how to keep it from happening again. s.e.c. chair mary shapiro was there. the s.e.c. is now looking at how to do things differently. >> we are considered whether under the s.e.c. rules that we need new rules to prevent the masking of debt or liquidity at quarter end like we saw lehman brothers do. >> of course tim geithner who was at the hearing used this to frame the broader argument for financial regulation reform. he said, you can't stop


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