tv Mad Money CNBC March 26, 2010 4:00am-5:00am EDT
i'm jim cramer. welcome to my world. you need to get into the game. they're nuts! he's nuts! they know nothing. i always say there's a bull market somewhere. "mad money." you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. no, thank you. my job, try to make you some money. do a little entertaining. do some educating. so, call me at 1-800-743-cnbc. europe, i love it. it's giving us another chance to buy stocks on the cheap. a better chance than the passage of health care reform would ever give us. a lot of you out there, i know,
you're confused. you're confused about all these interactions between the dollar and stocks and the euro and stocks, and the problems of greece or portugal or spain with our stocks. a confusion that many participants cited today, as the reasons why stocks faltered in the middle of the session! as the dow and the s&p were at one point up 117 points closed up just 5 points. >> the house of pain. >> and down 2.5%. not what i like to see. i would say that's a pretty nasty, expensive close for the bulls running around the rodeo. i've got something good for you. i am ending the confusion tonight. on this "mad money" show. i am telling you why greece, or more accurately, this pan of grease is an opportunity to -- >> buy, buy, buy. >> not --
>> sell, sell, sell. >> -- united states stocks. first, if you don't mind a little reminiscing. yesterday's show. i donned this steel wool hair suit. i allowed -- i did, because i allowed something that i thought was very important, the need to pay for the cost of universal health care, to influence my thinking about buying stocks, particularly when they are down. i figure if the bill passed then higher taxes and worry about president obama's often anti-shareholder positions would cause the market to get hammered and it didn't. why not? because there are just too many good things happening here now. things that cannot be stopped by tax increases in 2011 to pay for the expanded health care coverage. well, come in today, what have
we got? stories about how greece and germany are in a spat. how the french are calling the greece names. stories about portugal's a tough situation. stories about how spain could be next on the trouble list. and what happens? stocks get knocked down. like they got knocked down two days ago, ahead of the house vote on health care. this time it's for more reasons. now, it is true that when the euro falters, the dollar goes higher. and when the dollar goes higher, it does hurt the ability of some of our international companies to export goods. and it hurts the translation back. when they get into stronger dollar, they have less to show for it. but as i promised you the other day, i need to interpret stock prices through the lens of earnings, not the health care plan or the strength of the
dollar. we simply don't have enough correlations that really matter. instead, there are far more important forces that get obscured by this pan of grease. and i'm not going to let them remain getting obscured. let them remain hidden from you any longer. first, there's the force of employment. greasy employment, huh? we had a terrific drop in unemployment claims this morning. one that pointed to a far more robust hiring scenario in april than i think anyone expects. especially when you factor in the army of census takers, being recruited by the feds. as i said over and over again, employment growth saw so many problems from bad credit debts to housing foreclosures. so, what am i doing? i'm putting the employment bowl in the grecian urn. second -- that's funny.
second -- thank you. what does grease have to do with best buy's numbers? hey, last quarter, i told you i thought the number one seller of superfluous electronic gizmos would give us an excellent outlook. better late than never. today it said we have strength in all categories. that means computers and printers. think hewlett-packard and intel. think soft and hardware. pcs, not to mention the disk drivers, western digital that stores the information. that means tvs. think corning, glass. sony, cell phones, call it apple. skyworks, cyprus and so many others. including nair do well qualcomm, which came alive with pleasure today on better-than-expected earnings. don't forget, if best buy can explode higher out of the grease, doesn't that mean great things for other player that
rely on a reinvigorated consumer? apparel companies like ralph lauren, j. crew or department stores like jcpenney or macy's. another one for the grecian urn. they'll have to earn their way out of it. or boeing. boeing continues to gain adherence as its order brook brims. does boeing get hurt by a strong dollar? g.e. aerospace, triumph, and a whole host of others to rally. does boeing get hurt by a strong dollar? maybe on translation, but not if its main competitor air bus can't make the planes. take that, grecian urn. or how about our banks? they're caught in the muck of grease, right? are they really? the banks with the exception of citigroup are domestic animals. they long ago shed their overseas assets. i think these companies are untouched by greece or the john travolta variety.
they react positivity to twin peaks, not the tv show, the peaking of unemployment and the peaking of bad loans. we're getting both of them which is why bank of america, wells fargo, citigroup, jpmorgan just won't quit. they've become the biggest bull market out there. finally, there's tech itself. we know that america has an edge in tech, a great one that will not be crimped by a country that represents 2% of the european economy. do we want to sell oracle in a terrific quarter and the followthrough to other cloud computing plays like vmware or salesforce.com? do we want to sell cisco because france can't stand the parthenon? or maybe the gyros? i don't see germany invading greece anytime soon. they did that already with mixed results not that long ago. you want to jettison sandisk because portugal got their debt downgraded?
hey, you want to play that? you really want to play portugal? all right. i heard good things about the beaches. that's the way to play portugal's fortunes. spain, stop worrying about spain and check in at ibitsa, the original jersey shore-like beach, sans the situation and shnook. nevertheless, you will still have to worry about the euro there. except for it's the euro trash. boy. and obama suggested tanning tax could explode that. it could close the whole place down. the bottom line, yes, the market can falter on extraneous food fight. food fights in europe, especially when trichet takes out a grecian animal house. again, if universal health care wouldn't drop the stocks i just mentioned, i wouldn't bet that france, germany ganging up on greece will hurt the price to earnings multiple of qualcomm or the order book of boeing.
and that, ladies and gentlemen, is what determines what goes higher and what goes lower, when we consider the earnings of the companies you want to try to profit from. how about we start with doug in california? doug. >> caller: boo-yah, jim, from the beautiful san joaquin valley. >> nice to have you on the show, partner. >> caller: good. how are you? my stock for you is universal displays, panl. the evolution of new l.e.d, 3d television screens coming soon, organic l.e.d. screens, technology feature of television and screen displays. >> interesting idea. but you know what? why don't we outthink this, my good sir. we know people reach for the stock of corning, glw, when they want to play that. so, we're not going to overdo
that. what we will do is pull the trigger on glw. how about sam in georgia? sam? >> caller: big boo-yah to you. i love your show. >> thank you very much. how are you? >> caller: i'm doing great. how about yourself? >> pretty good, thank you. thank you for asking. >> caller: my question is with the big selloff today due to greece problems and the bad new housing sales number yesterday, is it a bad time to take some position in a bank of america at this level? orrer or is it a good time to get. >>? >> bank of america is finally starting to break out. we have bank of principal reduction thing, i don't know. i like the system that the people who tried to pay the principal get awarded and it doesn't look like that's going to happen. we had a spike in bank of america. but i own bank of america in spades, so i've got to tell you, i am a buyer, not a seller. staying that way until we get to 23. now i want to go to mike in connecticut. mike?
>> caller: boo-yah, jim. buy low, sell high double-up boo-yah to you. >> i agree with you. what's up? >> caller: what do you think about gcc, general cable corp? been at the current level for quite a while now. >> they missed, they missed, they missed, they missed, they missed. we've got enough problems with companies that make the quarter. why do we have to go with the ones that miss the quarter? you, my friend, are complicating the sitch. invoked twice in one episode. never outthink it. greece, it ain't the word. and i've got to tell you something. the food fight among trichet and merckle, i'm taking bluto. it's not the word. this time you buy not sell u.s. stocks on the contratomp. "mad money" will be right back.
coming up, healthy mind, healthy portfolio? cramer separates the stocks that could provide supplemental income from the companies that should be sentenced to the sell block. and later, bank on it? well, some regional banks remain on shaky ground, cramer's got one stock that could help you deposit profits into your portfolio. all coming up on "mad money."
with green mountain, gmcr, for example, if it weren't for an impassioned plea from a caller who loved it. not only did i recommend the stock after it. but i bought the one-cup coffeemaker. now it's the staple of my mornings. absolutely. not all caller ideas, though, work. so, tonight, we are putting a caller stock unbelievably into the -- >> sell, sell, sell. >> -- sell block. along with a sister company. they can share the sell block for a week here. last friday, charlie asked me about vitacosts. we got our vitamins going here. vitacost.com actually. vitc. it's an online vitamin and nutritional supplement retailer. and i told him, i go back and compare it with the bricks and mortar names in the same industry, vitamin shop. both came public within the same year. both are uniformly loved by the analysts who cover them, even though vitacost stock took a
tumble right after it became public. i thought it would be enemy number one because of that. but miraculously, it just gained. five buys, no holds and no sells on the stock. meanwhile, there are six buys, no holds and no sells on vitamin shoppe. the street is saying you've got to buy, buy, buy them both. me? i just can't decide which one i like less. so, rather than tell you which one of these ne'er-do-well vitamin stocks is best, i'm going all slammer on both of them. they're two superficially appealing names that actually i think are extremely dangerous. ty tried to do a claymation-style steel cage match between vitamin shoppe and vitacost. but ultimately both of these stocks are exercises in what we
don't like. this is not a beyond thunderdome situation where two stocks enter and one stock leaves. this is a situation where we've got two losers. and i struggle with decide which is worse! let me tell you why so you know what to avoid in a stock and be able to recognize the signs in other names yourself. vitamin shoppe is the second-largest retailer in vitamins, minerals and supplements. 400 stores, 37 states. vitacost is a big player in the industry online. there's reasons to like the industry galore. $25 billion vitamin and dietary supplement business. with an aging u.s. population, rising health care costs and a society that's obsessed with diet and fitness, you might think these two names fit into a nice little theme. but you need a whole lot more than a theme before an investment becomes compelling. when you look at the actual details, vitamin shoppe seems
stretched with little room left to grow. having already saturated the biggest markets. while vitacost to be perfectly honest feels down right unworthy. when every analyst that covers the stock likes it, you're dealing with a situation where that stock is pretty much priced for perfection. any bad news could send either of these two stocks tumbling lower. given i see lots of potential for things to go wrong at both companies. vitacost came public december 24th. and the lock-up period ends this week. means they can start dumping. you know what happened as soon as the lock-up expired? vitacost founder sold every single 1 of his 4.8 million shares for about a buck less than what the stock is currently trading. there's reasons to sell for all different reasons. when a company founder dumps all of his stake, i don't know.
i take it negative. plus, you've got to ask yourself, what the heck happens if cramer fave and marathon monster competitor amazon, up a huge seven points today, decides to get into this space? what's stopping them? there's no real barriers to entry protecting vitacost. and the moment any big competitor decides to compete with them, i worry that the business, indeed, will get crushed. on the other hand, my colleague thinks vitacost has a great chart. he says he would be buying it here. that was on "thestreet.com, where the chairman. me, i'm a fundamental guy. i think the picture is much more murky. how about vitamin shoppe, you've probably been to one. i know i have. look at this like any other retailer. how much growth does it have left? how close is it to saturation? vitamin shoppe is in a niche market in 37 save states, 400 stores. even the bulls in the reports recognize it's already in a lot of places. the company tends to open up another 42 stores in 2010. analysts love it.
me, i worry. i think it's nearing saturation here. and at a not-too-distant point, it could run out of workable places to put new stores without some cannibalization. catalyst? i don't see any. and yet the stock is universally loved by the analyst who challenged my growth assumption as too conservative. i just don't see upside in either name. even those both have underperformed in the s&p 500 since they've become public, they're still trading at valuations that i consider to be stretched. vitamin shoppe is at 18.1 times 2011 earnings. how special is this really? you can take another look at another nutritional company, ntby, 11.3-times 2011 earnings. walmart sells a lot of vitamins. now, they feature vitamins, too, although with far fewer varieties than these guys. that's okay. any way you look at it, vitamin shoppe and vitacost are expensive, especially when like
me you think the potential downgrades and less rosy estimates loom in the future. here's the bottom line. not every story out there is a great one. sometimes you have to be willing to admit to yourself when the upside is limited. and i think that's the case with vitamin shoppe and vitacost.com. the analysts may say these are buys. but to me, they look like sell, sells, sells. there are many more retail and online plays out there that will give you more growth with less odds of risk. and no vitamin online or off-line can change that picture. after the break, i'll try to make you more money. coming up, bank on it? well, some regional banks remain on shaky ground, cramer's got one stock that could help you deposit profits into your portfolio. and later, stay tuned as we crank up the volume. cramer goes all out as the calls keep coming in. try to keep up on the high-impact "lightning round."
a regional bank based in the western united states. if you got in on the deal, and i hope you did, because i think that was one where you could get stock, you made a quick, cool 11% yesterday. more important, the success of the first interstate deal confirms something we already knew. that in the wall street fashion show, regional banks are back in style in a huge way. in fact, i think this might be the hottest group out there right now. so, tonight, i'm going to help you find the next great regional banking name. a stock that looks like first interstate but could be even better. i'm talking about first horizon, symbol fhn. that's frank, harry, nancy for all you home gamers. and very soon that's going to get out from under t.a.r.p. and i think it's going to start making some acquisitions of distressed competitors. first horizon is a bank that's figured it out.
the company is a diversified financial with the whole smorgasbord of banking and capital market businesses. but now, it's increasingly focused on regional banking. maybe management read my chapter on regional banking. in the book "getting back to even." had they been as good as they are now when i wrote this book, i would have included them in the chapter of the five, coming strong regional banks. first horizon is based in memphis, tennessee. the largest bank in the state, 180 locations, 41% of its revenue in 2009. that's the heart of the business. we know the company is looking to expand by buying up weaker banks. and it wouldn't have to look very far, because here's a key stat.
right next door is the state with the largest number of failed banks since 2008. and that state is georgia. get this -- since 2008, 35 out of 202 banks, or 17.3% of failed banks were in georgia. they are gone with the wind. and frankly, my dear, first horizon gives a damn. fhn is right over the border in tennessee. this company is not a carpet bagger. it's the perfect acquirer from the fdic's perspective. and it can gobble up some of those ne'er-do-well banks to become a southern regional banking colossus, which is why i like it. but what i really like about first horizon, the new and aggressive management team is getting out of the companies that don't work and sticking with one that wall street appreciates. it had a specialty lending operation outside of tennessee and a mortgage banking operation. but now the company has exited its special lending and done most of the mortgage banking outside of tennessee, which has been a disaster, except for some legacy assets that are still
managed. first horizon is making itself more and more like a pure regional bank that is exactly what the fashion show is demanding. regional banking capital markets make up 62% of first horizon's loans. that's up from 54% at the end of 2007. and it should be becoming a larger piece of the pie. within tennessee, first horizon is the number one player of the northeast, east and mid parts of the state. number two in the southeast. and number five in the middle. $12.8 billion in deposits. a lot of potential upside as low quality loans and mortgages start to roll off. and when you look at first horizon's core regional banking business, you can see that this is a company that's really turning things around, really exciting. the company's net interest margin, what it makes on the rate it pays you for deposits and what it charges for loans is 3.2% for the whole business. that's pretty good. make a lot of money off you. bad loans? for first horizon's entire
business, nonperforming loans, aka loans for people who can't pay them back, make up 5% of total loans. but a lot of that pain is in that noncore national loan portfolio that's going away. for its core business, the dead beat ratio is just 2.6%. and best of all, the bad loans have peaked. first horizon's nonperforming -- not all the banks, by the way, have had this. first horizon's nonperforming loans topped out at about $1.1 billion. that's earlier than just about every bank i follow. and i follow hundreds of banks. they're now down to $981 million. even better, nonperforming loan inflows have decreased in the second quarter 2009 to $147 million in the fourth quarter. payments on the bad loans have increased from $113 million to $175 million from the same period. this bank is well ahead of the cohort in the nonperforming game. first horizon's also been very proactive about building up capital. and now 16.4%, versus 8% from
two years ago. that's important. regulators, that's how they measure how much pain the bank can take. its total capital ratio is 21.9%. i know the secretary treasury tim geithner would sure say that. that's why i believe it's close to repaying t.a.r.p. and making some fdic-assisted acquisitions. according to a really quick note that citigroup put out recently, first horizon is one of the top six regional banks in terms of its capacity for fdic-assisted takeovers. the deal is likely to be so small, such a small one, that it doesn't hurt existing shareholders too much. plus, this is one of the little kickers here, you would be getting a great chance to buy more at a discounted price, something the shorts don't want to hear. and there are many short sellers in this name. they shouldn't have -- there will not be enough stock for them to cover all their negative bets. trust me on that. i'm giving you the good.
let's talk about the problematic. it's not a perfect one. it's not a straight-a student. in fact, the bank is more like a c-plus who's on her way to becoming a b-plus student. oddly, that's really good, because it's got improvement. and that more than perfection is what money managers right now adore in a banking stock. that said, the wall street analysts still haven't warmed to first horizon. we're really early. seven of them rating it a buy and 17 giving it a hold. so you can buy this one before the party really gets started, because you're going to see convert after convert. if it were switched and it were 17 were buys, i would never talk about it. here's the bottom line, the worst is over. and first horizon is now on its way to becoming one of the best, which is why it's my next big regional banking name on "mad money." this is the first time i told you about fhn. but you can count on it being our next huntington bank shares. hban, which is up from when i first recommended it on june 12 of last year, and a full 50%
from when i recommended it at $3.67 on july 9, my dad's birthday, when others had long lost faith in the ohio bank. i think first horizon, fhn has the same trajectory ahead of it. and you don't want to miss this next gem in the world of banking that's totally unaffected by germany, by france, or by greece for that matter. let's go to jerry in florida. jerry? >> caller: boo-yah, jim. >> boo-yah, jer. >> caller: should i hold on to citigroup or is huntington bank, more of a regional be better -- >> i think huntington bank can go to 7 without a problem. it's 5.50 right now for all of our new viewers. citi is just on a monster roll. i think citi is doing a great job. i'm a gigantic believer in vikram pandit. i think i started it. i was the only one at 2 1/2 and
3 i like this guy. he's getting convert after convert as people realize he's a great banker. citigroup is a $12 stock at the end of 2012. how about mark? speaking of first horizon. mark in tennessee. mark? >> caller: a big southern boo-yah from chattanooga, tennessee. with this health care reform going on, what should i do about hig? what's going to be going on with it? >> i've got an odd answer for you. this is from the help of my friend, an accountant. and a man who has really provided a lot of great intelligence for me. works with me at thestreet.com where i'm chairman. here's the deal, the annuities business is going to be on fire as people try to shelter taxes. and that's why hig is going to be really good. i like hig very much. i would be a buyer of it right here. let's go to tay in virginia.
>> caller: how are you? >> i was on martha stewart today. how can you not have a good day when that happens? >> caller: congratulations on that. >> thank you. >> caller: the united states banks have really been in the house of horrors. and i've been researching canadian banks like the bank of montreal. >> yes. >> caller: they have a 4.51 yield. and they've really been on a tear for the last six weeks. now, i know you recommended bank of nova scotia which has had a ten-point increase since early february. but i wanted to ask you about these other banks, too, if i'm too late on hopping on this train. or if there's still more upside. >> no, no, you're not too late. i should be pushing the canadian banks more. the canadian dollar's very strong. the canadian banking rules are very strong. i like nova scotia best because of its incredible dominant franchise in latin america. but bank of montreal is terrific, too. i would never fight you on those. those are both better,
literally, than any bank in the united states with the possible exception of a stock that i own for my charitable trust jpmorgan. all right. write this down. you're going to hear about it from me. i wish i had got it in "getting back to even." but they weren't good enough yet to get in this book. first horizon, fhn. this is the next big thing in regional banking. i want you in it. i want you in it now. coming up, the clock is ticking. call cramer at 1-800-743-cnbc to find out how to fire away at cramer on the "lightning round."
it is time for the "lightning round." hey, what's that all about? you say the name of a stock, i tell you whether to buy, buy, buy or sell, sell, sell. my staff prepares the graphics on the fly. when you hear this sound, the lightning round is over. are you ready, ski-daddy? it's time for the "lightning round." i want to start with will in south carolina. will. >> caller: a big boo-yah, to you, jim, from south carolina. >> charlton, south carolina. i love that. good college there, too. what's up? >> caller: want to know what you think about cmed.
>> i'm don't need that. i don't need a cement company. i'm going to be in aggregates so i'm going to go with bulk and materials. i would need a better balance sheet. patty in massachusetts. >> caller: hey, a big, bad boo-yah, jim. >> nice to have you on the show, patty. >> caller: thank you. a quick question. i wanted your opinion on china unicom. chu. >> oh, boy. i did a conference call yesterday, a thing called the chairman's club. i did it with stephanie ling and i was so down. chu reported another competitive quarter. people didn't like the quarter. my one chinese stock. i told you to avoid the chinese stock market. it's a horrible place. chu has the best technology. they have 3g, 4g, the apple franchise. and it's getting crushed. and what i felt was, it's too low to sell. it's too low to sell. but i am extremely disappointed in that company, extremely. let's go to gene in massachusetts. gene. >> caller: a big bunch of boo-yahs to you. this is gene from massachusetts. how you doing? >> all right.
how about you, gene? >> caller: i can't complain. >> never complain, never explain. henry ford. go ahead. >> caller: well, i don't dare complain. they might take something away from me. hey, jim, i'm sitting up here on sentry cal. >> ctl? ctl has a good yield, not great, not great. ugly chart, you know what? i'll take that yield. i also like winstream. they keep delivering those yields. and if the american enterprise ever comes back, meaning corporations, then you've got a total home run. how about tom in indiana? tom. >> caller: hello, jimmy. a big hoosier boo-yah to you. my question concerns teva. >> i mentioned the difficulty i'm having with china unicom.
the exact opposite is this one. this is en fuego. they just bought this big german generic company. when people look at all the health care plans around the world, what are they going to do? try to switch people to generics. what's the number one generic company in the world? teva. i want to buy, buy, buy. i want to buy, buy, buy. i want to buy, buy, buy. how about frank in oregon? frank. >> caller: hey, boo-yah to all of you at cramerica. how are you guys doing? >> not bad. i hope the oregon employment comes back. used to be the greatest employment state in the union. not anymore. how can i help? >> caller: i'm looking at thc. >> i thought it should have gone up more on monday. i think we got out of 5, came back in, i think the stock can go to 7. hospitals are big beneficiaries, so are hospital real estate investment trusts.
i don't want scm. that turned out to be a bad one. that's select med. that's disappointing. let's go to ernesto in florida. ernesto? >> caller: the first 10 days of the last 20 seemed to lead the pack. now kind of flat. do i need to worry? i like aig a lot. but i want to make sure i'm not going to get into something -- >> what is that? what stock? what stock? aig? i don't like it. they owe too much money to the government. the stock itself doesn't represent the actual company. they should not have done this reverse split which then made it so people are attracted to it. i am still a. >> sell, sell, sell. >> i saw aig, greenberg was selling stock. i want to join them. let's go with rami in ohio. rami? >> caller: boo-yah from toledo,
ohio. what's up? i want your thoughts on ticker symbol s, nextel. >> no, no, no. that's up on a spike on some product introduction, no. here's a deal. you want to speculate on a low price phone company, you go right down and you buy some qwest. this gives you the yield, too. sprint needs a takeover. and i don't think the government would ever let that happen. and i don't like stocks if the fundamentals are falling just because of a takeover basis. how about ken from louisiana? ken? >> caller: boo-yah from the home of the super bowl champion. >> you sportsman in paradise, you? and you know what, everybody likes that. i do, too. what's up? >> caller: because of your show and your books, i'm actually making money this year. >> yes! >> caller: and i bought high.
but i dollar cost averaged down on a stock that pays a great dividend. it's apolo investment. >> i wish i knew more of what they own. but it does pay a good dividend. it's had too big of a run here. it's been a great run and that yield is safe. all right. let's go to jack in pennsylvania. jack. >> caller: cramer, a big philly boo-yah for you. >> i like that boo-yah. what can you do for me, home stater? >> caller: first solar, fslr. >> my former colleague, peter at "the wall street journal" did a perfect analysis of first solar and why it shouldn't be bought, given the fact that the government subsidies are ending and the product is too high priced. i said sell, sell, sell. one more. let's go to john in texas. john? >> caller: hey, cramer. i'm going to give you an old-school west texas oil boo-yah. >> oh, man. i'm going to give you a twin
cities midlands odessa boo-yah. >> caller: two weeks ago, cramer, you recommended eqt corp, symbol eqt in a secondary offering. that was due to close on march 16. and you recommended buying it, getting into it the day before the closing. i don't see where they ever closed that. >> it closed at 44 instantaneously. and i did not predict this would happen. i did not. natural gas broke down, fell through the $4 floor. everybody is selling every natural gas company everywhere. so, the underwriting did not succeed so to speak. you know how i feel. longer-term these natural gas stories have been terrific. we know that natural gas below 4 cannot stay there forever. i reiterate eqt. now, short-term, is eqt going to work? i thought it would and it obviously hasn't. longer term, we only need to look at the long-term record of these natural gas companies to know that in the end when they're down, you --
how about some "mad money?" here's one from ron in massachusetts. "dear, cramer, thank you for your health care mea culpa segment last night. many of us in cramerica are back to even, thanks to the show. but a lot of us have also been caught flat-footed by the speed of the recovery. even though you've been right to be unflaggingly bullish for the past year. it's reassuring to know that even you can get scared out of this market at times. even though it was not your intention. i think your cautionary call and subsequent self-flagellation was therapeutic for a lot of us. can you please revisit tera nitrogen, tnh?" i spent ra lot of time thinking about that show yesterday, a lot of time.
i favor universal health care. it's right. we're a strong, rich country we can provide it. but i was worried about what it would do to the stock market because that's the hat i wear here. when i thought i was thinking too closely about what the -- the caterpillars were saying how much it would cost. and about what the tax code would say. i got too cautious. you are right. sometimes everybody gets tested. terra nitrogen is a classic case and repeat this again. i've said this for 15 points down. where i mistakenly believe that the subsidiary, terra nitrogen, would be -- would be benefited somehow in this takeover mass. what happened is this subsidiary did poorly, why i said going forward, i will not recommend subsidiaries of major companies on this show. one from angel in nebraska. hi, jim, a big nebraska cornhusker boo-yah to you. i have a question about chesapeake energy, chk. i bought some shares in the high-end and bought more to try to cover my losses. since then, the shares have lost even more money. my question, do i stick it out or sell my shares and take my
losses? eqt which is that the price of natural gas has fallen below the floor. every time it's done that has been a buying opportunity. will this time be different? history says, no. so, the answer is, i don't want to sell chesapeake and even though i know it doesn't have the best balance sheet in the business, not by far. jim, i want to thank you for yesterday's first block, again the hairsuit blog. it was well done and right thing to do. credibility is critical and you gained a good deal from naep noid many good calls by you lately." thank you, steven. i run the show like i did my old hedge fund. i didn't care about the winners. winners take care of themselves. ip only care about the losers. you can't learn anything from the winners because you won. the only way to cut back losses on is to study each loser to try to remember not to do it again. thank you for the kind comments. "mad money's" going to be right back.
>> open the door and fat window. he has no idea how bad it is out there. he has no idea. he's nuts. they're nuts. they know nothing. where the heck is the s.e.c.? what are they doing? how can we have these levels of fiction in financials after sarbanes-oxley? how do people get away with this? i'm taking on a special mission tonight. and it's a hurtful one. it's a socially suicidal one.
hey, oracle reported after the close, i liked everything i saw. but remember, like a lot of tech stocks these stocks have now run up. i think you've got to think longer term. don't just worry about tomorrow. oracle's a keeper. i like to say this, there's always a bull market somewhere. and i try to promise to find it for you right here on "mad money." i'm jim cramer and i'll see you tomorrow.
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