Sunday, June 04, 2006

Mad Money Transcript -- Friday June 2nd, 2006

Mad Money Transcript for Friday, 06/02/2006

Jim: Hi, I'm Coach Cramer [blows whistle]. Coming right up is Mad Money! Market's choppy. You need a gameplan. Coach Cramer's giving you a sketch of the coming week and the plays you need to make MAD MONEY! Plus, alternative energy. It's gotten slammed. I've gone through the wreckage, found winners and smart speculation. I've got your play. The countdown to Mad Money begins NOW! [blows whistle]

[Introduction] Jim: You. Me. Let's try to make some MONEY! Mad Money. Mad Money: you can't afford to miss it!

[Camera pans away from a golden (Notre Dame style) helmet with the Mad Money logo on the side. As it pans out, it shows Jim with a Philadelphia Eagles #5 Donvan McNabb jersey, black eye paint and a whistle, crouched in a football stance. Cramer again blows his whistle] Jim: Hey, I'm Cramer. Welcome to Mad Money. Welcome to Cramerica Stadium! Other people want to make friends. I just want to make you some MOOLAH! ‘Cause my job is not just to entertain you, obviously [Cramer points to his football getup]; but to educate you. So call me at 1-800-743-CNBC. Tonight, tonight [picks up clipboard], tonight I’m giving you the only thing you really need. I’m giving you my gameplan. Now you don’t just need stock picks. You don’t just need [looks at clipboard], dare I say, my brilliant advice about the big trends. You need to know wat’s coming up and what to do about it. Now, we’re goping to do this every single Friday although I won’t be necessarily be wearing this gear. So when you come Monday, you know what’s happening and you know what to do. Here’s how the gameplan works. I tell you the lay of the land [tries unsuccessfully to blow whistle through helmet]. Ok. Uh, then I tell you how I think you should play it next week. You want calls on next week’s earnings? I got them too. Remember this game. You’d rather be prepared than good [runs helmet-down towards the wall, hits it with helmet. Takes helmet off].

Alright. When we’re gaming out next week, we need to understand that the market right now is in the middle of a constant struggle. It’s Verdun EVERYWHERE [Caption: The battle of Verdun was the longest battle in the First World War] [slams shotgun and machinegun buttons]! there are two camps vying for dominance: the hard landing crowd and the soft landing crowd. Think of them as the Bloods and the Crips, how about the Hatfields and McCoys for you more suburban types, or the Axis and the Allies if you really want to hate the bears [bear, shotgun] [Caption: the Hatfield-McCoy feud existed between two families in the West Virginia/Kentucky countryside]. In general, Cramer is betting against the hard landing boys, they be real bears [bear]. They think we’re heading into serious recession zone [bye bye broker, house of pain]. I think that they’re WRONG [shotgun]. But being wrong doesn’t matter, does it [slaps his shoulder pads]. WINNING MATTERS! And the hard landing guys won the field today. They really made themselves evident [whistle]. The problem with the people that thing we’re in for a hard landing, a crash landing, they don’t do enough homework [holds toy bear]. I guess they just didn’t see the good numbers coming out of the high end and middle end retailers last week. The real problem with these hard landing boys is they believe the Fed is about to go ballistic and start beating everything to a pulp [dive, trainwreck]! They’re doing this [Sell! Sell! Sell!] [Cramer shakes head]. I think they’re wrong. The Fed wants to raise rates to crush speculation in commodities. That’s already happened. I mean at one point this week copper had crashed. That’s what the Fed’s looking for [caption: Copper ahs quintupled since 1999, from $0.60/pound to $3.75 a pound]. And yeah, Gold was up. My gameplan says gold goes up then gold goes down and you gotta be a buyer [Caption: The gold August contract hit a six-week low on Thursday]. It was only because a lot of mindless investors were buying exchange traded funds with lots of gold exposure anyway. The fact is gold use has dropped 25% the first quarter alone because jewelry demand is down and going lower [dive] [Caption: Thursday marked a third consecutive session of declines for Gold]. Maybe it’s the women’s lib movement finally coming to fruition. Or maybe they’re just making rings out of silver. So the people that think the Fed is going to keep ratcheting up rates until the whole country comes to a standstill, THEY BE WRONG [machinegun]! I be giving them this [gong]. But it doesn’t matter that they’re wrong. You know why? Because there are a lot of them. Right and wrong only matter long-term. For the short-term gameplan, it’s just about which side has most yardage at the moment. And right now the hard landing guys

Friday, March 10, 2006

Mad Money Transcript -- Thursday March 9th, 2006

TV Channel 68 Thu Mar 09 23:57:31 2006

Jim: Hi, I'm jim cramer coming up is "mad money". You think the real estate market has crashed? Not in cramer's world. I've got your real estate play that the going sky high plus I've got your security play that can save you time on making fortune and you know where to put your money, I do. The countdown to "mad money" begins now. Jim: Hey, I'm cramer: Welcome to cramerica. Other people about making friends. Me I just want to make you some money because my job is not just to entertain you but to educate you so why don't you call me at stomp. -- 1-800-743-2622. Every day I read the paper. Some senator somewhere is talking about the dangers of handing over our port security to foreigners or just talking about how a dirty bomb could come in, some bad thing headed our way so I took it upon myself and found these senators an american company. California is back. You can help keep our ports safe. That's why I think you should own osi systems. Write this down, osis. Maybe you've never heard of osis. It's just a $350 million company not as well known as maybe raytheon or l-3. Those are homeland security and national defense based stocks. It also doesn't get my favorite face. But hidden beneath the facade of osi's heads care business they have the technology that I think is going to make our poerpts safe. Sure, my favorite english author joseph conrad knew london ports inside out when he wrote "chance victory and the mirror of the city" but not even conrad could imagine the threats ports face today. Osi is the answer and I think they can save the day. First let's get to health care business. The company was stolen from ge parent company of this network in that instrument aaron deal. Thanks federal antitrust law. Ge had to spin it off and now osis is practically at book value. We are always on the look out forgive aways. Now that's a boring head care business. Makes medical monitoring an anesthesia systems used in hospitals. A big deal. Well, it is a big deal because the company is doing $200 million a year in health care revenues. Now, when you consider that it's $350 million market cap and you're only paying about 1.75 times sales, it's 10% organic growth 40% operating margins and is resistant to a slow down in the economy I think you're getting pretty good book. We haven't even gotten to the juice of this story. It's the security business. This is where the I think all the upside is going to come from. [Sfx: Buy buy buy!]. Jim: How about we call it the hidden gem of osi if not the acres of diamonds that can make you some mad money! Osi has some potential to have the most complete security products on the market. I'm not knocking the flir that you might have seen me talk about the other day but I do believe that osis is positioned to make our ports safer. Talk about a hot topic. Perhaps you heard it here first on cnbc. This company offers systems to customers under rapid scan brand. I guess that's corporate for rapid scan which is exact lid what these products do. You can use rapid scan to inspect baggage cargo vehicles people's for weapons drugs an explosives that you got to believe are coming our way. We are talking about dual energy x-rays. This is rather high-tech stuff. On the baggage side the congressional budget office just announce owed its budget information for 2007, $440 million earl marked for check bags in 2007 alone, $175 will go to equipment purchases and I think that could mean big bucks for osi. Earlier just this week osi announced a $40 million contract for manchester air fort group in the U.K. This is for a baggage screening. In other words, the technology is so promising people want to pay for it now before it's even commercially available. I call that a good housekeeping seal of approval. In the pipeline osi is working on a new set of technology called pnfa. I'm giving you much more than you need. That's host neutron analysis could be the company's ticket. Bouncing neutrons off the contents of cargo containers, reading the bounce back signal tells if you should ship it or run for the hills because there's a bomb on board. P & o yb didn't you just tell us we were going to use this? This is the kind of thing that when perfected it's going to be everywhere. The company is doing about $60 million in security business now. That could balloon on new contracts and orders from the government. Okay, I know. Osi is losing the money but I think that's only because it's spending boat loads of carbon research and development and out of this r & d could be the next big thing in homeland security so I say you ignore the losses in the near term because there should be big money to be made in the long term. J.P. Morgan just did a brilliant analysis. They did a brilliant analysis that when the s&p 500 is down, stocks rally. So if you're from that dirty pair camp this stock is even better for you. Bottom line, think osi not for health care but for contributions to making you so that I will no longer have to keep my bag on the line and miss my plane. Oh, also for homeland security and domestic safety. I had think you should buy osis. We are going to california. We are going to david. We are talking about homeland security luggage inspections abts how your play is osis. David speak to me.

>> Jim a big booyah to you from california. Jim: Oh, man I always like to start with a nice california booyah.

>> I love the show and nobody ever mentioned the radio show but it's great. Jim: Let me tell you the radio show is all over because I said I liked hansen and sure enough on the stock trading segment people were satisfying you got negative on hansen. Even I an inconsistent flip-floper felt painted into a corner by that. I like hansen. It just it tastes awful. Sorry to divert you from the issue of osi.

>> That's okay jim. Looks like osis is a pretty good national security play but I'm curious about how much their heads care segment is going to grow.

>> You know actually to be honest about it, I was quite surprised and I don't want to minimize the osi story but motel share does grow faster than this health care business. But I think as you listen and read about the company what you find is that it's got a good base in health care which then throws off the money that you need to buy the baggage handling business. Yes, their heads care business isn't growing like genentech or amgen but it's growing at a decent clip. It's not a reason to not like the stock. We go to kentucky and speak to wendell how homeland security luggage inspection are lead to go buys of osis. Wendell.

>> Big fan. Jim: I appreciate that. Thank you. Always have time to say thank you on "mad money" by the way.

>> From a pure play how about asei? With their technology back scatter that is amazing. They can see anything anywhere in your luggage in your cargo in your ships through the airports through your mail. This stuff is incredible. Jim: You are right. I have stayed away from that stock and I'll tell you why. This is a good moment just to talk to you about the thesis of "mad money". I know that the old american science engineering which I used to visit in cambridge when I went to school up there. I know that that is the play in baggage screening as it has been literally for 20 years. I'm trying to find something people don't know. Now you could say jim why not go with best of breed. My take is this: There's a lot of money being spent in this business. It's not just going to go to american science and engineering. There's so much money that there's room for flir, there's room for osis and there's room for asei. So don't just focus on that one. Fred in connecticut. Fred, we are talking about home security and why I think that your play should be osis. What's happening?

>> Meg had a booyah skeedaddy. Jim: Booyah back at you.

>> I'm curious how lerj leveraged is the osi stock from the dubai controversy. We need guidance from cramer. Jim: I got to tell you, this is a controversy in the end. That just killed the market the second half of the day and that was entirely because I think the pet row dollars are going to say buy U.S. We might as well go to japan or europe but I think in the end these situations will all be settled by technology. I think that what you can do is make every port technologically superior to the rest of the world so we can stop it no matter who is running the port. The bottom line is osi like fluor like asei these are excellent ways to make money off homeland security. Jim: Opened up the "washington post" this morning. Lead story, run the front page right hand corner, U.S. Cigarette consumption declined 4.% In 2005. Its lowest level since 1951. About 380 million coffin nails were sold each year but the current population in this country is twice as high as 53 years ago. Wait you ask. Doesn't cramer always talk about how www.Actionalertsplus.Com his charitable trust owns altria? This news can't bode well for their sales but I'm here to tell you tonight this trend is not bad news, but good news for the stock of altria. The old floms -- philip morris. I'm not a fan of cigarettes. I don't smoke them. That said, I won't let that stop me from making money with altria. I've always said buy altria, make some money in the stock, collect the 80 cent quarterly dividend with a 4.4% yield and donate 10% of your profits to anti-smoking organizations. This is not a political show. Now, remember the government, they don't allow these guys to advertise so altria should actually gain market share in this environment because it's it's almost impossible to introduce a new brand. Each state has a formula that calculates how much tobacco companies must pay of the industry settlement. But those formulas were based on higher historical smoking rates so I think we will also see these payments coming down in the coming quarter. When expenses are lower than expected, you know what it leads to? Bte, better than expected earnings, which is obviously good news for investors. The help fears about smoking have been known for years now but that alone has not bun never to curb tobacco usage rate. The fact is nicotine is addictive and cigarettes are one of the textbook economic examples of price in last 'tisty. That's jibberish for how many fewer you'll buy when the price goes up. Public advertising is always been blocked and thankfully a big part of the recent drop in cigarette usage has been tied to lower youth smoking rates. If you combine that with the fact that taxes have driven up the price of smokes $8 a pack in new york city, no bargain no matter how much your body craves it not when gasoline is $2.50 a gallon and utility bills steadily rising. Also there'sw|hz the fact you can hardly smoke in public places anymore even outdoors. The bottom line, smoking rates are declining absolutely. That much is true, but that been doesn't mean making money in tobacco is over. Oh, no. You buy mo and just watch the share gains turn into stock gains and their expenses go down because of the soon to be more benevolent settlement. Mark in illinois we are talking about how not to give up on altria even though it seems people are giving up on smoke.

>> Booyah cramer.

>> Booyah.

>> Hey, I hear you. I have a concern. The who committed to banning tobacco sales worldwide government recognizing tobacco revenues are going down compared to head could. How much room for growth is there for philip morris internationally. Jim: I was shocked and concerned that spain has made it tougher, ireland has made it tougher france germany has made it tougher so you have most of europe duties tingtly in bear camp for tobacco and we know when altria is broken up into three parts it's ghost philip morris international, domestic and kraft. You know who is picking up the slack? Asia. The rules there are simple. Everybody can smoke. Everybody can drink. So I know that it doesn't help the case for altria international that europe has been tough but I think we make it up in asia mark in michigan. We are talking about how not to quit on altria even as you should quit smoking. Mark hit me.

>> Booyah jim and a warm greeting from michigan. Jim: Oh, man how are you doing sport?

>> I'm doing excellent. Is this the time frame of the spinoff of kraft from altria and is $105 realistic or wishful think something. Jim: I think that's a realistic price level. The stock is substantially below that. What is the problem? Why haven't they broken the company up yet? Because they have said over and over again that they can't break it up until the last two court suits, florida and the justice department, are figured out. They don't want to put a situation where they have to undo anything. So we are all waiting and waiting and waiting. But let me tell you the truth. When they're paying you 4.4%, I call that waiting profitable. Joe in the disturb state of florida we are talking about not giving up on altria even though we are giving up on smoking. Joe hit me.

>> Booyah jim. Jim: Oh, man a familial booyah.

>> A proposed amendment mandates the that the state spends 15% of the tobacco settlement. This will come to $54 million a year annually. How would this campaign affect the stock price of altria and what would be the effect on the price if the movement spreads to other states? Jim: Okay. I want to make things clear. There will be some states that will come up with something that's different from the master settlement. The florida sounds interesting to me but I really want to focus on the notion that the master settlement is so beneficial now that smoking has come down I think I will will override your concerns. Remember this is a breakup story. It just got better because of the changing formula. The bottom line is altria is for you. After the break I'll try to make you even more money. Jim: It is time for the "lightning round" on "mad money". Unfamiliar with the process? I take calls. Some would say rapid fire. You say the name of a stock. You don't go on for too long because then I grab my pillow and take a little nap. I tell you whether to buy or sell it and just to be clear, I don't know the callers or their stock questions ahead of time. Ample opportunity for me to try to noodle on it. My staff prepares the graphics on the fly. We play until you hear this sound and then somehow we continue to play because I am one gre gairs fellow. This reminds knee the dubai port deal is sucking the life out of this market either way. All I have to say is are you ready skeedaddy? It's the "lightning round" on cramer's "mad money". Why don't we start with R.J. In new york.

>> How you doing, I love your show. I need a little help here. Jim: Fire away. You came to the help desk.

>> Semiconductor stocks that you recommended btss I got calls on that. I'm waiting for it to go up. Jim: You bought calls on a $3 stock? My man you're not playing with a full deck. A $3 stock is an option. I don't condone that. I think you should sell that. How about we go to doug in pennsylvania.

>> Cramer, booyah skeedaddy. Jim: Excellent booyah skeedaddy back at you.

>> I love the book. Jim: The book holy cow. I bet you're speaking about jim cramer's real money sane investing in an insane world.

>> Okay. Just wanted to ask you, xto energy. Jim: Man you got one problem stock there. May I tell you I used to own that for the charitable trust www.Actionalertsplus.Com and gave up on it because as oil ramped from 30 to almost $70 a barrel that sucker couldn't move an inch. It's been glued to the 40 level and I see no chance for it to do anything else other than flatline or go down.

[Sfx: Voice "sell sell sell!]. Phillip in texas. Phillip.

>> How's it going? Jim: Huh?

>> Hello. Jim: Speak to me.

>> How's it going? Jim: Not bad. Thanks for asking. How you?

>> Pretty good. Jim: Jam day. Nothing we can't handle.

>> Right right right. My question is adu. With the budget for biofuels what's the ceiling for the winning ethanol play? Jim: Look, the pacific is a little speculative. What's been happening in this market is they've been taking the speculative stock and making it jump out the window, but that doesn't mean that archer daniels necessarily is my favorite. When jimmy cracked corn and I did care the stock was at 22. Now it's at 32. I think bulls make money bears make money and hogs get made into jimmy dean sausage. By the way 4% yield two thumbs up for sara lee. I guess we call that a twofer. Chantal.

>> Beautiful from grass valley. I love your book too. Jim: Holy cow. That is unsolicited praise. Wasn't to know how you feel about rnai. Jim: That's like a weird little betech company you're coming to me with. Therapeutic nucleic acid? I'm going to issue a rare pass on that one because without knowing where it is in the food chain I have to put a don't buy and find out more later. Let's go to wilkin in louisiana.

>> How are you doing jim? A big booyah from the bayou state of louisiana. Jim: Booyah back at you.

>> I love the book. Jim: People must be into this bestseller I've got. What's on your mind?

>> Research in motion, now that it settled the patent suit is it buy sell or hold? Jim: I'm glad you gave that option because I'm putting a sell on research in motion. I think that palm is the better and may I think will "slim" gabrielski for that pick because he's behind it with everything he has.

>> How are you doing? Jim: Not bad.

>> I letter a lot listening to your show. I tape it every day. Jim: Thank you.

>> And I want to know about unh. Is an opportunity for a mow 'em back or do I hold it or sell? Jim: There was a time when I considered myself jim unh esquire but you know something? This stock has broken down here. Am I running from it? Am I scared of it? Absolutely not, I've been buying more for www.Actionalertsplus.Com my charitable trust and may I suggest to you that united heads group is now one of the cheapest growth stocks. It's growing at 17 percent when it sells at 19 times earnings. I regard that as a positive situation and I'm doing a mow 'em back. Larry in florida.

>> A big booyah from sunny tampa. Hey, sunshine what's shaking?

>> I with like to know, my wife and I love making money with you. Jim: You know something making money I regard it better than the move it is or a sporting event.

>> That's true. Jim: How about a to be.

>> Amcc. Jim: The other day I had to recommend amcc on this show. May I point out I'm a buyer of all the fiberoptics. Amcc is dirt cheap but it hasn't really done anything in maybe 6 years. Remember when it used to trade with my friend pnc sierra? Now I think amcc if you go to the web site or light reading.Com you will see they have a technological solution that's leapfrog the current technology and tiber optics which is why I like the stock a lot. John in new jersey, garden stater john hit me.

>> Booyah jim from the great state of new jersey. Jim: Oh, you are so right about that being a great state.

>> Congratulations on your one year anniversary. Jim: I hear the anniversary special is going to be not to be missed tv. What's on your mind?

>> Can you give me ahead up on kraem? Jim: Krispy kreme has my head shaking because we don't have any financials. We don't know how the company is doing. We just found out who is running the company. We sometime haven't found the warehouses where the 1998 donuts are stored but people are buying the stock. I issue a sell and I'm bearish on that and all other companies that don't have financials. How about we go to greg in california? Kbreg.

>> How are you doing jimmy? Jim: Not bad.

>> My dad and his friend want to give you a big insurance broker booyah. We would like to know about cmi. Jim: You know cummins is a best of breed machine company. It's got so much cooking in the diesel engine department that I have liked it. I've also liked paccar and this is one of about 3 sectors that are still working including aeo -- area oh space. I still like it. I want to be careful. If I don't be careful you'll think I'm saying.

[Sfx: Buy buy buy!] And all I'm saying is I like the stock.

>> Hello mr. Cramer. Jim: How you been?

>> All right. Jim: Give me a stock.

>> My question is on options express. Also my wife wanted me to tell you booyah and that I'm in trouble for listening to you. Jim: I don't know about that. I don't think you're in trouble. Let me understand it. I I commented positively on it yesterday but it still guest down. Maybe I'm not that powerful. Options express has been a monster good stock up up up. It is a service winner. Check my friends at barron's which awarded it that but people think we have entered into a bear market phase and you can't make money in options so people are bringing it down. I don't want to go out right now and draw a line in the sand telling you that stock is not going any lower. I can tell you it's the best at what it does, it's the best of breed and I like it for that reason. Janet in michigan. Janet.

>> Hi mr. Cramer. Edf. Jim: Hot stock. Candidly a hot stock lng with other information providers. As much as I like that let me focus on accenture. How about we go to mike in iowa. Mike.

>> Jim. Jim: Mike.

>> A big iowa booyah for you jimmy. Jim: Wow, man that's like -- what is that there, like some sort of heart thing going? What are you got?

>> Rig, where is it going? Jim: Oh, man you cut me to the quick with that. Just the other day someone was asking about nabors. Where is this vast sector called drilling going? When you look at a chart, you overlay a chart of rig over the past 5 years with with the price of oil and you will think this thing is dirt cheap. When you consider this is the only company that can drill further than 10,000 feet down. That said we should understand, oil and oil stocks have entered into a bear market mode this. One is up there along with nabors and slumberge that I like but the only one that I would abort putting capital in at this level is king hal because hal is splitting into two companies and I own that for my charitable trust. How about we go to dave in florida?

>> Cramer bah. Jim: Booyah.

>> Help me. I'm in a split level house of pain with shanda. Jim: He did an internet review of shanda. I am obviously completely and utterly wrong on that. I've had my head chopped off and you know what I do when that's the case, I bring out the post its. I'm doing the post its for shanda. How about lee in texas?

>> Booyah man I love the show. Love the book. Jim: We are going to put the post it on the book because he was wrong on shanda.

>> Give me smdi, microdevice. Should I hold it or buy more? Jim: You know something? Look at the way the game is played. They rip my head off with shanda but we put it right back on with cirenza. I was surprised how big the revenues had ramped but that's mostly because of satellite radio. I say we schnitzel a little off the table. Dave in illinois. Dave.

>> Cramer. Jim: Big peoria illinois booyah to you.

>> That's a fabulous illinois booyah. What's on your mind? Jim: Eagle materials had a choppy week. Where's it hit?

>>. Jim: Eagle materials this group has been under some pressure. This one has handled the pressure better than others. It is split. I still like the stock. It's cheap but once again I caution that we have entered into a more negative phase in this market and if you had the stock for a while you're being a little bit on the hog side. I wouldn't mind taking something off the table. Scott in north carolina, scott.

>> Booyah from greensboro, north carolina. Jim: That's a nice tar heel booyah if I ever heard one. What's up my friend.


>> I wonder what you think of lexar bought up by micron? Jim: Lexar be done. We hit that one. We recommended it on this show. Now it's become an arbitrage situation and we don't like arbitrage on this show. We ring the register. How about we go to darren in california? Darren.

>> Booyah brother jim. How are you? Jim: I'm doing fine T. Market is no. What's on your mind?

>> I'm in the house of pain. Stx. Jim: I could see how you would be in the house of pain if you picked that one up at 28 but those who bought it at 18 are in the house of pleasure. I think the quarter is going very well. Nobody cares about that anymore. Witness how they caught national semi. I think seagate should be bought here. Could we buy it in a scale not buy it all at once, recognize the fallacy of buying all at once? That's ar but I still like it. How about we go to ann in michigan.

>> Hi, jim. How are you? Booyah. Jim: What's up?

>> I was wondering what you thought about pepsi bottling group. Jim: I've never been a fan of the bottlers because I've always felt when push comes to shove [Buzz]. Jim: I always felt that these guys are mere subsidiaries and you can't beat them. Rather than be in pepsi, I recommend pep or hansen which I allegedly took down in stock trading. I was negative but not negative enough. You know what? We are not done. I think we go to vincent in ohio. Vincent.

>> Hey, jim a big buckeye booyah to you. Jim: Man what a terrific midwest booyah back at you.

>> Hey, love the book. I hope I can get an autographed copy. Jim: I think you maybe able to win that some day.

[Buzz]. Jim: They're serious now. They're coming for my neck. What's on your mind?

>> My question is in regards to kry. Will I be crying if I hold or if I sell? Jim: This is one of the new companies investible in venezuela. I am sticking by my recommendation that I think chavez is going to have to money crystal the higher people so I'm sticking with it, and you stick with cramer. Jim: Just a quick update. Therapeutics dumped knee in the loupd. They have a phase 3 drug which is when someone mention the "new york post" most people think how about page 6 but what you probably don't know is the post is a pretty darned good business section and reading it can help you make money. Just this morning terrific article by lois white widely picked up in other media about the price of office space in new york city and how it's going to double in the next 5 years. Didn't see this coming. The issue here is simple. It's one of supply and demand. Basic economics demand for office space is rising and there isn't enough supply to keep up especially in midtown. This is not the case with housing. It is the case with corporate office space. Now I know what they're think willing jim, if prices are that high with why don't people just build more office buildings? That comes under the category of thick. It isn't quick cheap or easy to add new capacity. What happens in this scenario when demand outstrips supply pretty simple, prices go up. And they go up fast. Another problem that all the commercial property developers are being out bid for new projects by guess what, the residential guys. This may seem like bad business and new york residents alike but where there is bad news for the renters an the lessees, I believe makes good news for office real estate investment trust. And the one I want you to focus on ver and oh led by ceo steve roth. These are hand picked properties. That's right. I feel like these are hand picked before the market. Vornado has manhattan space that has to be renewed and you know what? It is going to be renewed at much higher prices. Real estate investments most of these pay out heftty dividends there's been a lot of consolidation plus people feel the reach is the perfect hedge against inflation. Vornado has a 3.5% yield not quite as much as the s&p 500 stock offer. New york city is one of the most popular desirable places left to live in the country. People will spend their entire paycheck for a cubicle-size apartment. What about businesses answers corporations? Will they ship their employees across the hudson river? The answer is no. I don't want to diss my home state but new jersey is not the epicenter of the business world and that only means corporations are going to have to find the cap to afford the posh skyscrapers with the views. And bottom line, if I think you have to own vornado vno before it get to 100. Stay with cramer. Jim: I've tried to convey on this show how difficult the market has become and how even some of the leaders have been slaughtered. There are still niche companies whose stocks are doing well and one of them is gibralter industries, I like the symbol rock. It could be like the guy in the movie. Ryan is chairman and ceo of rock give me a sense of what you're doing right so that your company is doing so well.

>> Good to be on your show. Thanks for having us. Jim: My pleasure.

>> We stick to the basics and try to do them very, very well. Jim: A lot of guys make materials that go into autos. They've almost all been crushed. You've got vehicular market. Why hasn't it led to a sell-off in your company?

>> Again, we've found our whole focus has been to find niche markets where we can establish a product leadership position and once you find those your performance is going to be more consistent over the long run. Jim: Can you tell me what this -- I'm going to mispronounce it, but what the amoco acquisition did?

>> It's a great acquisition for us. It produces products that go into the industrial building products marketplace and they've got a number of product leadership positions in things like real sexy products like biograding, metal lab, structural products all those things. It takes us into a brand new market that we haven't been in before and it's a company that I think has a pretty good reputation and under gibralter we speck it to do better than it did as a stand alone company. Jim: I think it's time to play break the analyst. That's a good story. You stay with cramer. Jim: Pretty nasty out there, osi systems can bust the trend, altria safe at that 4% yield, granada I'm recommending things on yield. I always say there's a bull market somewhere. I promise to try to find it on jim cramer's Mad Money. See you tomorrow.

Tuesday, March 07, 2006

Mad Money Transcript -- Tuesday March 7th, 2006

Here's my first transcript of Mad Money. I hope to make this a regular thing, but I'm not always home to set the recorder to fetch the closed captioning on the show. The transcript is a bit messy, but my first goal is to put it up, my second goal is to have it nice and clean for you to read.

I'm Jim Cramer coming up is "Mad Money." Once again a stock I used to hate but not anymore. You know what that means. There is moolah to be made. And, a pimp after stock for your pleasure. The countdown to Mad Money begins now!

[The captioning on this program is provided as an independent service of media captioning services, which is solely responsible for the accurate and complete transcription of program content. Cnbc, its parent and affiliated companies, and their respective agents and divisions, are not responsible for the accuracy or completeness of any transcription, or for any errors in transcription] Jim: Hey I'm cramer! Welcome to "Mad Money"! Have I told you lately how much I love this show? Yeah. Okay. Other people want to make friends. Me I just want to make you rich. Because my job is not just to entertain you, but to educate you. You sho your job. You should call me at 1-800-743-cnbc. Last night, there was a special two hours of "24" on fox!.

Hallelujah. Jim: Don't I compete with those guys at 9:00 P.M. Every monday night? And I don't care. Cramer gives credit where credit is due! "24" is the best show on tv

[Applauding] Bads you can always watch cramer at 6:00 P.M. Or 12:00 A.M. If you missed him at 9:00. Why am I telling you about "24"? Was it untimely death of edgar? Because it's a great show? Did somebody write me a check to promote their show?

[Cash register ringing] Am I hoping they will give "mad money" a little promotion in exchange for my good press? Brian Grazer? Please, there is only one reason I talk about anything on this show, that reason is, I'm trying to make you money.

[Cash register ringing] And sometimes, it's always good to talk about things likeself a grand diesment but that's neither here or there. "24" can make you lots of money. It can make you money because watching "24", makes everybody in the nation, and particularly vice-president cheney, long for a fascist police state, if not run by president logan or at least some serious vigilante justice! . Look when cramer wants a police state he wants to buy, fluor systems, flir.

-- Flir. Doing a 'mon back.

[Truck backing up] Now, I am not going to go all michael moore here, you know. I'm not going to give you the gestapo is coming wrath, tiresome. But I do know we're spending a lot more money

[Cash register ringing] As we should, on security and surveillance. That money, is going to flir. Which is a thermogra if I, imaging powerhouse. Infrared technology, anything that helps you see through things, that's right, seeing around the corner, that's getting major pentagon money. Instead of buying body armor, the dod buys infrared cameras. You don't have to like it. You just have to buy flir so you can try to make some money off it. Last night aid another thought about flir. Came to me. I was thinking about this dubai ports deal. Doing some armchair political strategizing. I figure there are two ways this whole controversy can be resolved. Either the democrats company outxenophobe, out racism and outdemagogue the republicans by lining up against the united arab emirates and stepping up, with some of the more rabid republicans to kill the deal. One choice. One choice. Or, flir can make money! I don't think the democrats are going to be able to take out dubai, and that means that pretty soon, the united arab emirates, a theocratic, leaning set of hereditary monarchies, are going to run some of our ports. Even chertoff homeland security guy, he says two thumbs up. When the U.A.E. Is the running the harbor in new york, we're going to need more security. And not just to keep the uss st. Louis out. We're going to need to take the security out of the hands of dubai and take care of all of it ourselves. That means more surveillance. So of course it means, more work, for flir! Luckily, flir makes some stuff for port security. Get this. They have a device that helps detect intruders on ships when they're in the harbor. Hey that's not bad. Do you know piracy made a big comeback. Bad guys, are stealing ships. They can use infrared signatures, to monitor and identify different types of ships and cargo. This let's them check for smuggling, and other illegal operations. See, infrared imaging can provide information you won't get from video cameras or radar. Plus, flir, has top of the line night vision gadgets that let ships see further through fog and smoke.

> Hallelujah.

> All aboard. Jim: Flir could be the solution in the ports controversy. They out fitted coast guard with a whole new set of infrom red scanners. Why not outfit them with everything and stop worrying about dubai

[Baby crying] Buy, buy, buy most of flir's money comes from the military and that should continue. But it's possible they could make a killing

[Gunfire] In port security. The company has been en fuego lately. They had a big margin jump last quarter. Even though they missed the revenue estimates in 2005, they managed to still make their earnings target

[Applauding] Which means, flir is, good in a tight spot. The bottom line! If you want the best jack baur, slash, port security, slash, police state play out there, I think, you want, flir! Andy in the garden state we're talking about "24", watching cramer at 6:00 and 12:00 and if you watch "24", just kidding. We're talking about security, surveillance and, how flir is your play! Booyah!.

> Caller: Booyah jim. Jim: Excellent way to start the show, my friend. What are you thinking here, skip?

> Caller: I love the show. Love the book. Have to get that out of the way. Jim: Holy cow he must be talking about jim cramer's real money sane investing in insane word world. Dropped to 33 on amazon's list. What's shaking?

> Caller: I want to know is there room for commercial growth for flir or do you think the high prices will limit commercial sales for their products? Jim: I have to say candidly, andy, you have obviously done your homework. We would like to see some diversification away from homeland security. The diversification happens to be in autos. You know how I feel about the auto business.

[Toilet flushing]

[Heart monitor beeping] So I'm not going to count on that. I am counting on the department of homeland security writing gigantic checks in order to get everybody off their back. That is something worth counting on. John in wisconsin, we're talking "24", watching cramer 6:00 and 12:00 if you happen to watch jack baur, kidding of course and talking about security and surveillance and flir. Let's make some money. Speak to me, john.

> Caller: Hey, jim, big beer and bratwurst booyah to you from milwaukee, wisconsin. Jim: Tell you something that is the beer that made milwaukee famous. Booyah back at you.

> Caller: Flir systems I understand they're working with alv, on infrared lighting technology for bmw. Auto live main customers have been ford, general motors and renault with this new customer in technology in mind what is the pin action look like on alv? Jim: I have thought about this because again, that infrared technology, you see in the ad, that one has bambi caught in the headlights and the car stops? Hey, where is thumper when you need him? Here's the deal it's not big enough market. I know again, we want to try to figure out how they can take this military technology, and drive it to commercial. Kind of like, tang and nasa, you know what? We're not going to play that game game. Auto liv. I say no thank you. I say no thank you to FLIR. I say no thank you to dana. Bottom line I need to you buy flir and I need you to buy it now!.

> All aboard. Jim: The railroads still has legs. Doesn't mean you go out and buy burlington-northern, norfolk southern, csx, or union pacific sell sell, sell, sell, sell. Sell, sell, sell. Jim: I said the railroad. Not the railroads. Singular not plural. I've been I've been bullish on the whole group ever since "mad money" start the almost a year ago.

[Applauding] . If you bought these stocks perhaps on my recommendation, or somebody else's for that matter I think it's time to

[Cash register ringing] To ring the register on most of them. The major rails? They have had a good run. They can't grow anymore. Because they will never get just justice department permission to acquire, anyone else. This is not a telco situation. That's why I'm hunting for a railroad

[Train crashing] That doesn't do this. One that still has opportunities for tremendous growth. And I think, I think, I have found it. Needle in a haystack. I'm talking about, one guy, the genesee and wyoming. It's greatest little railroad you never heard of. Trade under gwr, schnitzel, a little of this. Write it down-home gamers. Gwr is short line railroad company. Th]3b only think, 47 different short line railroads. You remember the monopoly? You had the big main line railroads like pennsylvania railroad, the reading and the B & O. Then there was the short line. That my friends is genesee & wyoming. For those of you not steeped in railroad terminology who don't know what demurage means, short line sounds exactly like what it is. It takes freight or passengers, in this case mostly freight, fairly short distances. The short lines are now, where the money is. You try making a dime off a transcontinental railroad these days. It can't be done! Don't be don't be persuaded it can be. Oh but hauling freight short distances is making genesee and wyoming a fortune

[Cash register ringing] Last quarter they grew their american revenue by 2% year-over-year.

> Hallelujah. Jim: It's pretty good growth for a company in an industry that's been obsolete and written off for dead for decades

[Heart monitor beeping] If you look at the a one-year chart which is what I got from "investors business daily", you can see, that gwr has been kicking butt for months. I have no doubt that they will keep up the momentum. See, genesee & wyoming is doing something very clever, they're the short line right now. But they're trying to become something a lot bigger. This is a serious growth story albeit is quirky one. Have you ever once seen once any one use the word albeit in conversation? I just did it. They're turning themselves into a huge railroad company but they're not laying down track like john henry, they're buying other railroads. That seems normal, right? The thing is they're not trying to create main line railroads with their acquisitions. Genesee doesn't want to become the b and O. They want to become a lot different. More profitable. A better short line company. That's the secret of their success. Buy, buy, buy, buy, buy, buy. They have a model that works very well.

> All aboard. Jim: And they're just duplicateing it. Rather than trying to create something useless like another big main line railroad.

[Heart monitor beeping] Wyoming is also, how do we do this and still be statesman like, we can't, it's also a pimp. They took ludicrous's sage advice, see him the other night on the oscars, and they're pimping themselves all over the world! Right now they're cleaning up in australia. They're selling their stake in a railroad in western australia because it is worth more to the buyers than it was to them. Much like someone might sell a railroad in game a monopoly or perhaps mortgage it. They're taking hundreds of millions of dollars in that sale and plowing some of that into a 'mon back into the southern australian railroad. Truck

[Truck backing up] They own a piece of t soon they will have 100% stake. Then they can consolidate earnings. Rest of money will pay down debt. Even better to fund genesee and wyomings acquisition pre. No other railroad can have a acquisition spree without running afoul of the justice department. They want to buy other short line railroads in america. Make no mistake. This railroad company knows how to acquire. The stock is up more than 80% since they bought rail management's rail operations almost ten months ago

[Applauding] They buy the short lines and turn them into money making machines. P> [Cash register ringing] The bottom line! I didn't want to do this then again it's been said that I have noself control. Genesee & wyoming, gwr!.

> All aboard. Jim: How about we go to massachusetts. How about we speak to why. Ael. We're talking about railroads, short line railroads to be exact and jennie cream and wyoming the greatest little railroad you never heard of.

> Caller: Booyah from the bushes of beantown. Jim: What is on your mind chief.

> Caller: My husband and I love your show. I heard about american railroad system being ready for the upgrade. Jim: Thank you.

> Caller: Which companies do you think are ripe for profit? Jim: Okay. Which companies do I think can actually, benefit from the infrastructure change that I see coming over the rails?

> Caller: That's right. Jim: First I have to say parent company of this network, general electric makes the locomotives. So I have to consider that. But that would not be a reason why I would recommend ge because it's just a small fraction of the business. Let me give you a smaller play that intrigues me because it is down 5 points from its high. It's called portech rail products. They make rail anchors. Rail spikes, rail joints. Railway friction management. They, are your play. Matt in new york, we're talking about railroads, short lines, and genesee & wyoming. Also known as jennie and wyoming the greatest little rail you never heard of. What say you?

> Caller: Hey jim. Booyah!. Jim: Oh man that's empire state booyah! I like the sound of it what's on your mind?

> Caller: Let me say I was walking through the cvs. Had a bad cold. Got Zicam. Jim: Talking about making money hand over fist. We did mr. Mucus almost made a double. Then again we probably screwed up on things so let's not cherry pick. Get the issue which is jennie cream and wyoming.

> Caller: Here is the question I got for you. With the success of genesee & wyoming, what do you think about the railcar manufacturers, specifically american railcar? Jim: I cannot be opposed to american railcar. One of the single best ipos of the last four or five years. But I stick with tried and true, my friend and I think that trinity is cheaper. Bottom line, genesee & wyoming, you need a short line. You need gwr!.

> Announcer: Coming up we have a cramergency. Jim electrifies your portfolio as he answers your stock questions in "the lightning round". Jim: It's time for a special baby bear, here's a little water -- lightning round on "mad money"!

> All aboard! Jim: What's that all about? I take a call, rapid fire, say the name of the stock and I tell you whether to buy or sell it, to be clear, do I have any prior knowledge? Absolutely not! I am the man from the 39 steps. My staff prepares the graphics on the fly and when you hear the miserable, horrible sound I'll continue to play because I am a belligerent son of a gun, hey, just a second. I look at you and I think about william pool, the rogue federal reserve governor who went and said how we need more rate hikes, how we should destroy the momentum stocks and how the federal reserve should overshoot and wipe out the stock market and I think, are you ready, skee-daddy? Lightning round, "mad money", how about we start with kevin in the illini. Kevin.

> Cramer. Jim: Kevin!

> Fighting illini, booyah to you. Jim: I like that a lot, at the top of the show.

> Just -- the book was awesome. Jim: Owe book, my, dropping on amazon, no matter what I do, jim cramer's real money.

> That was it, one request for you, if you can do it, buddy. Jim: What you sghoot my 15-month-old daughter loves going into overtime in the lightning round. Jim: I will go overtime in honor of your 15-month-old daughter and she rocks and you rock. Let's make money.

> I'm looking at tasr, taser international. Jim: While taser may save lives the stock does this, to me...

> House of pain! Jim: I would suggest you sell it while you got a couple of points from where it was lower. Wayne in connecticut.

> Jim-bo. Jim: Wayne!

> Loved the book. Jim: Oh, yeah, man, the book, gotta do something about the lagging sales. What is on your mind.

> Fidelity, the magellan fund's largest holding is nokia, and I would like to know your stock.

> Nokia is going higher, I think it sees 21, and the mojo is back and I'm back for nokia. How about we go to robbie -- robin in california.

> The famous jim cramer. Jim: I'm not that famous, but appreciate the -- yeah accolade.

> I'm just back from visiting bangkok sending you a big buddha booyah. Jim: Holy cow! I gotta tell you, that is a thigh back booyah if I ever heard one, what is on your mind.

> Excellent. Love the show and love the cramer -- cramerica. Jim: It rocks snoop my stock is dynergy. Jim: As oil comes down you will be sucking wind there. And I want you in the house of pleasure, a couple good quarters and you'll get 'em, which is why I say stick with dynergy and may I throw in more rant and el paso, I call these lazarus stocks. How about to peter in new jersey. Peter!

> Cramer! Jim: Peter!

> Booyah! Jim: Booyah, my sfleend just got your book! Jim: Wow, what is on your mind.

> I wonder about pay. Jim: A monster quarter, when I look at companies that do great quarters, if they had the term great quarter in the dictionary, they would have a picture of var phone holdings. Stick with it. Many more to come because hewlett picard gave that one away. Brian in maryland, brian!

> Hey, hey-you. Jim: A dynamite booyah.

> I'm sorry. I'm dyslexic, that was supposed to be booyah, jim ji that is booyah spelled backwards. What do you have.

> Sara lee. Jim: Everybody hates sara lee and shouldn't, the dividend is good, two quarters away from whatever, may I suggest, sell the poorly performing divisions to treehouse and then you will get my full endorsement to 20. Jennifer in the illini. Jennifer!

> Booyah! Jim: Booyah back at you!

> Reading a good book last night. You want to gets -- what it was. Jim: Anna Karennina by Tolstoy.

> You're close! Jim cramer's "Mad Money". Jim: Oh, man, right up there with tolstoy and perhaps the glambler by dostoyefsky.

> I'm in a man -- mansion of pain, what is going on with bhp-billiton. Jim: You would think after the great quarter the stock would go higher but no good deed goes unpunished in the stock market. I think people worried because china put a cap on iron ore, will not import as much and bhp is the big iron ore exporter to china. I say do not be discouraged, the quarter was magnificent, cash flow continues, the stock probably trades at 3irx and that is where I, for, my charitable trust, will pull the trigger and buy more and you should, too. David in tennessee, volunteer me, david!

> Jim, how are you today. Jim: Not bad, thanks for asking, how is your day going.

> Great, a big booyah from tennessee! Jim: Oh, man! I tell you, volunteer boof booyah, I return it.

> What is your take on forward air corporation. Jim: I am a fan of the freight forwarding business, go to forward air's site you see they are one of the bigger players between canada and the U.S. You have I am very pro canadian and think forward air is good and still like best of breed. Fedex, though. Now to donna in nevada. Donna!

> Jim, jim! Booyah from nevada! Jim: Booyah to that state where they make money on a daily basis!

> Yeah, I want to make some on this, too. Jim: I don't blame you!

> All right, ups. Buy, hold --

> Give the the gamut and by the way, ups according to my chartis friends, the best chart in the book, I think ups is at last about to make a move. It feels coiled springish, I want to buy, I think it should be bought, and should go to $81 if fedex keeps going higher. How about we go to cliff in florida. Cliff! Sunshine!

> Jim! How are you? Jim: Pretty good, not a bad day, and you?

> I'm great! Jim: Excellent, thanks for asking.

> What is your target on first marble head, the stocks up --

> You know what, they ought to throw a flag on that, because it is starting to run up the score against the bears but you know I like that. Whenever they give the bears a good gaffing I have them make -- I like the show. Fmd, tom brown was right, there was no margin problems, it continues to roll up, I don't want to chase it at $44 but if that went back to $40, we'd do a c'mon back on the much maligned student loan company. How about to alex in oklahoma. Alex.

> Hey, jim! Best convenience store company in the nation, want to give you a big booyah. Jim: I like that. I like that concept, pantry, too. What is on your mind.

> My question is about intel with apple computer switching to intel chips and $300 million plant in vietnam, does it mean they are on the way up.

> Vietnam I think they call I now listen: Intel, has been a dog of a stock, one completely canine, total bow-wow and I'll say this and only once because I am an ambassador of good will, if not a states man, but if paul otellini doesn't leave the company soon, the ceo we are seeing $17, because he is no good. I want you to take the program and stop being intel-aholic. I'm day 17 and I'm feeling great. How about we go to drew in call fortunate. -- California, drew.

> Booyah, jim! Jim: Booyah!

> The -- your sister from california. Jim: A golden bear booyah.

> Yes. My boyfriend and I, we watch your show all the time. Jim: Really? What you do you like about it.

> We love it. Jim: Maybe the kpen tris tis. What is on your mind.

> I'd like your opinion on axba. Jim: -- Axca. Jim: Tough, tough call. This is one of those companies that, like there are 17 of these companies working on the -- I don't know more of a family show, let's call it as we see it, the irritable bowel syndrome, too much competition in the irritable bowel syndrome market, I want you to sell the stock. Charles in louisiana. Charles.

> Booyah from the bayou, jim cramer. How are you doing.

> I'm all over the bayou and let's remember, fema doesn't get the job done, we need more money going to baton rouge.

> I want to drop cash on floi international, will I make "mad money" or will it make me mad. Jim: The company, a 25% growth rate, sells at 50 times and you are getting a little bit of the nose bleed territory but I like companies that do ultra high pressure water jetting, because that is how we get to the hard to get oil and in other words, here, if we schnitzel it down a couple, $12 would be my level. How about to maria in south carolina. Maria!

> A sunny southern south carolina booyah to you, jimmie! Jim: A palmetto booyah back at you!

> What can you tell me about arcadia pharmaceuticals, acad? Jim: Boy, you know, I went out positively on the acp 103 drug and I think that is going to be -- a potential parkinson's issue, I have seen the parkinson's ad. I have to tell you, we have to stop the disease and if someone stoipts it will, akad yeah which remains one of my favorite of the biotechs. Joe in new jersey, joe.

> Booyah! Jim: Oh, man! A whole dorm full of booyahers, don't you love that? What's on your mind.

> I wanted to know, I loved the book. Jim: Oh, man, the book, which could use help because it is dropping like a stone on amazon. All right. Sovereign bank? You know, I like customers' Commerce Bank and own it for actionalertsplus.Com. You know I happen to think that even Citigroup and Bank of America bottomed, but now you are talking about a bank that I think personally has not tried to help its shareholders. It is not doing the right thing. There is a lot of shareholders crying. Wrong, what they should be doing is --

> Sell, sell, sell...

> Vote with your feet, Sovereign Bank. Watson? Dr. Watson, I presume or perhaps Mr. Watson, in florida! Speak to me.

> Mr. Cramer --

> My dad, get him on the -- just kidding, what's on your mind.

> Al, has been as high as $50 and you recommended it high at $45 and I bought it at $46 and now is down to $43, and was I a fool with --

> It wasn't me. It was him. Blame him for it, it wasn't me, I -- no, now just a second, enough of the bipolar schizophrenia, I stuck my neck out big time and has been cut off by alcan and here I am standing in front of you, somewhat naked or could take my pants off and I tell you it is a double, if not a triple buy. I know what I'm doing. I am slitting my throat a second time. This time aiming for the carotid artery but I like alcan, ryan in kansas, flat state, good place. Ryan.

> Cramer, what's going onnot much. Doing a little lightning round, what you got going.

> Not a lot. Jim: Glad you gave me a call. I'm looking for some stocks.

> Good deal, what are your thoughts on ubs? Jim: Holy cow, can you believe there are two fabulous asset gathererers in the country, actually, like ludicrous the world, one is ubs and the other is legg mason because citigroup is selling a lot of legg mason people are selling ubs to buy lm and I can't blame them, ubs, 52-week high last week but don't walk away, because that is a major bull market. How about elizabeth in maryland. Elizabeth.

> Hi, booyah, baby! Jim: Oh, yeah! Oh, yeah! What's up?

> H and e equipment services. Jim: All right. The heavy equipment industry has been taking it on the chin --

[Buzzer sounder]. Jim: I have a heavy equipment rap I think is unbelievable and I'm going with it. H and e equipment is part of a cohort that includes shaw group, flour corporation, chicago bridge & iron and caterpillar, all come down, I think you swap out h an e, and go schnitzel some shaw group. And how about dave in utah, dave!

> Hey! Jim: Dave!

> A utah booyah! Jim: Excellent, bee state booyah back at you!

> I wonder, the ups and downs, coming to market and --

[Inaudible]. Jim: Huh? How about a stock?

> I wondered if yahoo! Is still a good goods

> Jim: you mean yahoo!. It has just been ya-hammered. I gotta told you, I fortunate the charitable trust -- oh, please! In the middle of when I'm making my stand, yahoo!, That is unforgivable. I say that is -- stricken. We are going with it. Yahoo! Is very ripe here at $31 and today it was up and I think it is making a stand and I would own yahoo!, And do for my charitable trust and I want you to stay with cramer!

> You're watching "mad money." This is not business as usual. Jim: Listen -- it is the time of my life I wasn't a states man and would have turned to herb greenberg and to quote travis bibling, hey, sport, house the subpoena business, but we're out of that game. Herb greenberg, I hear that you have -- I can't believe this, the talking about the next place that alan greenspan is going, I hear you got something negative to say about one of the most picture-perfect quarters I have ever seen in my career, sunrise senior living, you have the floor. Maybe you have -- but I'll pull the rug out from beneath you, if you say anything bad about night sometimes I really wonder how much work you really did on the company, because, this -- have you really taken a close look at it, jim, here's the situation goods yeah, the whole time it went from $20 to $35 I took a close look.

> The shorts and the bears and critics were absolutely wrong. But here's something you have to look at here. The company's base business, same-store sales for the businesses they own or have an ownership piece in, are really just growing, jim at 3.3% a year, that is after you take out price increases, and that is not very much, the rest of the company has morphed itself into a management services company. I gotta tell you something. This is one of the most difficult companies to understand. There is an analyst from lehman brothers that wrote a report last quarter that said the accounting is so opaque, just by the nature of it, it will make it difficult for people to understand and will cause a bit of a stir. And --

> I lift, a great demographic play, two thumbs up. And the next wurntion I obviously have a bit of a disagreement with you on sunrise, given the fact the stock does nothing but go up. We happen to have had a ceo from marchex on last week and it has begin a win and you see flies, if not hair on the story. What say you.

> A roll-up of on-line advertising and domain name sites, okay? And if you look at everything that the -- at the company before they made the big acquisition earlier this year of a company, name development, if you look at the core, the core business, organic business, organic growth you say, how much is it growing? It isn't and when analysts asked about it on the conference call the company danced around it every which way and talk to the company and they say don't worry, in the future we'll take all of these, they call it direct navigation businesses and make something of it, wharn misdirected to another site or put a name in the url you didn't mean. Jim: I love the business.

> It is profitable but does it have legs? You know what the company says, beta, beta, beta, in other words, a manana story. Jim: And you're a pinata guy, I like that, too, give me something I don't like, harley davidson.

> This is interesting, came in today, an analyst is the first to find it at J.P. Morgan, and our show, "mad money", many months ago, we first told people, that there was an issue where they had --

> What is the "we" stuff, keep sab.

> I, I, I on your show, talked about the warehouses they had, the dealers were able to use and the company said they had been using it since the '90s to put the bikes they don't have room for --

> You are telling me there is a warehouse full of harley davidsons like krispy kremes.

> We don't know, the company confirmed to me today, and said we will not do this anymore and don't tell you why. Just say they are changing programs. Jim: I'm going bearish, to join you my friend, hey, one for three is not bad, almost as good as ted williams, you stay with cramer. That is greenberg.

> "Mad money"'s celebration

> Booyah! Are you ready, skee-daddy. Jim: For less than the price of a decent sandwich, if not, a super-sized value meal big mac, I got a stock that should make you some "mad money". Oh, boy, I don't want to hear it. This is how much I hated the stock. The stock is applied micro circuits, amcc. Like every other tech company I have been really getting behind lately and you know, they have been c'mon backers, amcc is part of the optical networking complex. It is also -- has also been a real dog. No, I apologize for that. I did not mean to insult any of you 50 million pet owners. This stock has been dog food. Now I know all these networking stocks were really high in 2000. And they all came crashing down. Amcc is no different there, but since the tech bubble popped, these guys have been a lot worse than the rest of the complex. I've hated amcc since it came down to about in -- $3.70 from trading in the hundreds in 2000. Hey, you can go back and scroll realmoney.Com and it was one that I nailed. I hated it in the hundreds, should go without saying and I haven't just hated it because optical networking has been soft, amcc was worse than any other stock in its sector, the pro verbeum worst house in a real bad neighborhood. If we want to really just completely just be layinger and befuddle and confuse people by using one of those metaphors. It would have been the first one bob moses bulldozed to make room for a highway. Amcc had a big problem. It made optical chip components. But these components were the last part of the networking food chain. You never, ever want to be at the bottom of the food chain in a bad industry. It is great to be on the bottom when the industry is strong, think about corning, cleaning up because they made the screens for liquid crystal display tvs. Oh, but the bottom, the bottom is the worst when things are bad. A company buys a network from cisco and cisco buys chips from a buning begun up. Of suppliers and the pliers have their chips made from the amcc and they weren't even the minute knows in the food chair, they were like the plankton that gets eaten by the minute knowses and I'm not speak of plankton who, by the way stole the ravioli, ravioli, show me the formioli in sponge bob, for the past you goors, the business has been out of balance, too much supply and very little demand and too many chips for networks and not enough demand from cisco, too many components made by amcc and not enough demand for them from the chipmakers. It was more this than that. It was just miserable all the way down. Which is why this stock is trading under 4 smackers. But now all that changed. Supply and demand aren't justin equilibrium, no, that is economics jibberish, by the way, it is better than that. Components for optical networks are in -- you guessed it, short supply and that makes --

> Buy, buy, buy. Jim: Everything amcc has more valuable and amcc stock worth owning and the estimates on this may be too low, enough to move the stock from a triple sell into, if you own the stock, I won't make fun of you, even if you shouldn't buy it --

> Don't buy. Jim: Amcc needs something else to kick it up. From adequate to must-own!

> Hallelujah copy. Jim: And they've got it, a new chip will be great for the fiber optedic rollout. You want to play with tech? Read the trade peppers -- papers, note peppers, the best source of good, relevant news, and amcc's new chip has a lot of good early reviews in the trade papers cramer reads and this means it is good and the chip creates a product faster than dsl, the next step beyond dsl. Okay, so the japanese have been beyond that for years, amcc has a product that will be huge in america! And then there is one more piece of news, I shouldn't have buried the lead like this, focus, it looks like nortel, amcc's biggest customer is about to get a substantial contract with one of the baby bells! This will mean nothing to nortel, which is way too big for something like this to make a splash but amcc will make the processor, and the dollar amount, going their way, will be huge! What's okay for nortel, is great for amcc, the bottom line! AMCC is cheap, the business came back from the grave. And now it has a -- could be the next big thing, I need you to schnitzel some AMCC.

> Two disappointments after the close, google down ten and distributive -- distributed energy, use the weakness to buy and flour, I like it, genesee and wyoming makes sense and applied micro circuits, I like to say there is always a bull market somewhere, I promise to find it on "mad money", I'm jim cramer, see you tomorrow!

Thursday, July 21, 2005

Take Two Interactive gets burned by "Hot Coffee"

In light of the ESRB's rerating of Grand Theft Auto: San Andreas (from Mature to Adults Only), Take Two Interactive Software (TTWO) has lowered its guidance for the coming quarter. The market responded taking almost a smacker (yes, I watch too much Mad Money) off the price of the stock (over 3%) at the time of this writing.

While I personally think this is being made into a bigger deal than is necessary due to political ambitions (cough Hillary cough), and while the game itself needs to be hacked to unlock this content, this is fairly bad news for the stock in the near term. I think in the mid to long term, however, Take Two will benefit from the next generation systems this fall (XBox 360 and PlayStation3). I'm carefully deliberating what to do with my holdings in Take Two, any decisions will be placed in this article as an edit.

Wednesday, June 01, 2005

eBay goes Shopping(.com)

Just saw this story, a bit out of left field but understandable:

According to, eBay will buy for $620 million in cash. I suppose this takes off my stock watchlist (assuming the deal goes through).

I'll keep an eye on eBay stock and let all of you know if I change my position at all. At first glance, though, this seems like a good deal and a smart idea for eBay.

Better late than never - StoxBlog portfolio changes

It's my goal here on StoxBlog to be as honest as possible about what I'm doing with my money. I recently (5/17/05) updated my portfolio, but I haven't gotten around to updating it until now. Here's the lowdown:

MSFT and KO (entire stakes)
SPY (Approximately 1/3)

GOOG and XTO (~5% portfolio weight each)
GLD, PKX, and TIP (~1.5% portfolio weight each)

I'm using the commodity plays as a ballast for the portfolio (I still think the dollar will go down in the long term as a reckoning for dual deficits), and I bought Google because the thing keeps growing like gangbusters. I also got a miniscule issue of TELOZ (an offshore trust that was spun off from Magnum Hunter), so I'll likely be adding 2 stocks or subtracting one to get to a more round stock number (30 or 33).

On my watchlist: TPX and SHOP

Thursday, May 12, 2005

More Cramer?

Thanks to my time-shifting TV Tuner graphics card, I was able to see a VERY VERY VERY quick graphic saying that Cramer's Mad Money was going to be shown at 9PM and midnight in addition to it's normal 6PM timeslot. This fits in with CNBC's plan to expand its business programming into prime time in light of the failure of its talk shows (Dennis Miller announced his departure a day or so ago).

Cramer mentioned the expansion briefly early in the show, and just now (20 minutes ago timeshifted) the announcer made it official (it will start next Tuesday).

This should be good news for those of you who don't get home in time for Mad Money at 6.

Monday, March 21, 2005

IAC/InterActiveCorp acquires Ask Jeeves for $1.85 Billion

According to C|Net News, Barry Diller's blandly-named IAC/InterActiveCorp has purchased second-tier search play Ask Jeeves in a stock-based transaction valued at $1.85 billion. While Ask Jeeves only has a single-digit share of the search market (hearsay suggests 3% for the property itself, and 6% total for all Ask properties including iWon, Teoma, and a few others), it is unique in that users can enter their searches in natural language (i.e., "Why did I buy IAC at $40 and watch it go down to $21?"). Diller (on CNBC) called search "the unifying force of the internet," and obviously plans to tie Ask Jeeves in with IAC's other properties.

While I think the acquisition is a good one, the buyout of Ask Jeeves in my opinion leaves no more reasonably priced pure search plays in the market. Google and Yahoo are still overpriced (at PEG ratios of 1.50 and 1.99, respectively), Microsoft seems to be stuck around $25 a share (and is, obviously, nowhere near a pure search play), and marginal players like FindWhat, LookSmart, and Mamma seem to be too small and/or suspect to be worth consideration.

As for IAC, I'm not about to invest in it again (as I wrote above, I bought it around $40 and watched it go down to $21), but I think it could prove to be a good play if the PEG goes much below 1. I think Diller has the right idea in splitting the travel section off from the company and acquiring a search property, but the breadth of the company has thus far been its flaw. While I still cringe at the term "synergy," I think IAC's properties could be effectively tied together with the right leadership. I do think it will be a challenge to raise Ask's market share in the crowded search market, but Ask itself has about the same number of unique viewers as IAC's properties (around 40 million each).