i'm jim cram. welcome to my wod. >> they need to get into the game. >> they're nuts! they kw thing! >> "d money." you can'afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people make fries. i'just trying to make you yuan. that's chinese money. my job is not st to educater entertain. call me at 800-7-cnbc. i've got some go news and some bad news. e good news, the stimulus working. people are spending more mon. more goods are being purchased, demands tightening, and we might even have to hire people.

the bad ne? i'm talking about china! he tt was the guy. that guy was terrific. i love the wife, t. in america, unfortunately, the news pornds more job losses as companies fire people here t save our patheticash and increasinglyo business in china toake money. at's what we learned today from alcoa's better-than-pected earnings. most of the timei hao remind people that alcoa, the beleaguered aluminum pducer that colors port cards isn't worth focusing on. quarter aftequarter, i've had to tell at least someo that figure out which way t mket is headed and thinki, as goes

coa, so goes everything else, has been a great wayo baffle yourself into a tal lack of clarity and learn nothing ou the ture. most times alcoawhich reports first, something that dotails nicely witthe old slogan -- alcoa can't wait. wait for what? has simply en a terrific, a terrifically terrible edictor of how other companies will do. i wish it could wait, preferably to the end of the reporting riod so nobody focused on it anymore, rather than thendss chatter about how it's bellther. that's nonnse. but for once, i think coa truly is a microcosm of the whole quarter for every mpany. and this te ar, they actually had not one butwo important takeaways for threst ofhe market that should color oupectations for the rest of the earnings seaso but neither of them was y good. how can that be?

how can ala be sending us a negative signal when it beat the street's expectaons. that's right, alcoa r on beathetreet's expectations and reported a small than expected los >> that was easy. >> well, you have to dissect exactly how the company managed to do better than expect. simply put, it fed a lot of pele in america and it sold a lot of stuff in china, and that's going to be theattern fothe quarter. d believe me, it's not goo one. ok, i'm going to read to you from the conference call for alcoa this morning because a the evidence is right in the. here's klaus kinfeld who sounds likhe should be in the clothing business instead of t aluminum bines but he's the ceo, talking about china. let me give you a little more color why i'm saying i'm optimistic on china ineneral. the stimulus program they put

in places already pretty big. itas in the nature of $700 billion, roughly the size the first u.s. proam, but for an economy that is much smaller. and when you lk deeper into the ese stimulus program, the program has ve strong infrastructure investment components and almost all of them are shovel-read so the impact into theconomy was much me immediate than what we are seeing herin the u.s. where it is far fro immediate, to be preci. now,ell me. isn't that what you wanted to see and he from the united states? om obama? get this. klaus says consumer confidence is up 113% in china. at should be us. listen to this. one of the things the chinese government vy smartly does these days is they are tryg to increase conmptiand they are stimulatg people that it is good to not havmuch saving.

that it is good to buy a new car, get aew air conditioner and what have you. shouldn't the united states be doing that? or how about this little g from alcoa's conferee ll is morning? good news is you all know at its really the large projects, the brazilian projects that will start the operation on time, and then klaus continues -that's his first name, like knom. i kind of like caingim k klaus, i don't know. anyway, he says i will atten e ofal opening of jerudy together with present mulahn in september. that's a big smelting prect. d he says these projects will be gainers in the fure. now, wt dowant? do we want to open smelters in brazil? we want them making alumumn china? no, th want them to open projects with president obama not alumar ibril. insteahe's shutting production here and increasing there

because in the bri country you do havthe inalienable right to pollute. i don't like that when it cos to my lus, but i do like it when it cometo my portfolio. cramerica mercenary? no, just worry. alcoa's ceo says, lastly, on the automotive side, have to don tholchinese hat again. stylish for me. we also see the auto production in cna growing, partially driven by the government incentives. there's an incentive proam of tax funds for the purchasef small cars, for instance. d quote him again, it is absolutely worthwhe to note, because it shows the changes in glal economy, this is the first year thathe china build rate for caris more than the s. i mean ouch. we wanto be the engine of the global recovery, not the chinese. we wt be building more cars than the chinese and pting moreeople to work. want to be hiring people, not laying them off.

but alco with its better than excted quarter, gave us just the opposite. i believe other companies ll unfortunately llow this patternshat report as well. in fact, i believe the car plants fm our companies will be open that we're going to be transporting plants to china, not here. because like a noted stock guru willie ston once said, that's wherthe money is. the way mpanies will make their money ing ard will be to fire wkers in america and meetemand in china. it's a vicious cire down cause it portends more job losses in erica even as today's unemploynt number via claims was wcome and truly er than expected. at's why the market finied up at the end of theay, but it means le demand and leads to more firings, so on and so o this wouldn't ppen if we were stimating properly like the chinese are, if itad involved realestments in infrastructure and n just a handout to statethat increases

unemployme benefits, one designed by, yes, outrue leader, nancpelosi. truly one the great economic minds of our generation. and to be comptely and utterly sarcastic, but at least she' one of the richest. and en you throw in the agda of the psident and the democratic congresespecially cap and trade that will make it re expensive to pollute you can see the companies firing here so theyan hire in china ere there's no limit on the amount of pollution smters can generate. here they will be crimd. if it's cheaper to make something in chinand ship it to america than it is to produ it here and ship it there, tse comps will make more and more of their ods in china. that's the dilemma we're facing for the first time i c rememb, coa's earnings report could be at last an excellt predictor of what's to come. alcoa, the prognosticator. i don't really believe whai'm saying. boom line, this time is different. alcoa is tling us we need to be defensive in americ stick to your consumer staples and offensive not aggressive in

china whermore cyclical companies camake money because th chinese communists, with thr suor stimulus are making indeed, yes, at last a great leap forwardhile we're at best standing stillr alas going backrd by the day. t's go to the heartland. let's go to rickn ohio. >> an ohio state buckeyes boo-yah toou. >> one of the greate days we ever had and fturing the initial beer-amid. go ahead. >> sols stocks are tanking four times the regular mke >> oh, yeah. >> i thought that with cap and trade,igh oil prices, d all of obama's environment speak, thatol would be rallying, instead it one of the hardest hit. why the solar butt whipping. i'm going to put the caveat in here. oil stocks were -- oilfutures were manipated. what'she caveat? the who trade oil, wherever they are, the big oitraders are saying crar doesn't know wh he's talking about.

that will mark the 54th year that i didn't know wt i was talking about. and i also belie the solar progra are simply not economically viable. tharket is not fooled. we know without huge tax dolla going to solar those companies won't ke their numbers and we don't have a lot of tax doars. in other words solar i timerical. chris in virginia. chris? >> boo-yah, ji thanks for taking the call. >> my pleasu, ch >> caller: irerds to the oadband stimulus and the requirements and applications finally out. looking at possible nners like adtn or dt or should i look at smaller players where might move the needle more? >> you he done the homework, chris. you've gothe wrs. they're go. i woullike to augment that with ciena, a t of a dog latelybut i think can make a major comeback. do not forget corning. think corning is probably gointo show better than expected. speaking of course better an expect, alcoa earnings came int it looks like yes, yes. the chi-com stimulus plan ha beaten uncle sam. geral tso has beaten colonel sanders.

t's face it benjamin home whe at the same time getting aggressive overseas. "mad money" will be rit back. cong us it time to get defensivor ring the register on the protective na? the debate rages on as cmer weighs the options a gives you his call on the "sell block. plus with a big name at th sec on the way out, cram gives his pl for the regulators to get a leg on market manipution on the "eureka moment." and lar, lightning strikes cramer goes electric takg all your calls in a spine-chilng, over charged "lightninground." all coming up on "mad money. revered luxury sedan.

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wheneverer someoneith a grt record, someone i trululy respect makes anan increbly gutsy call about thehe market, likeke a whosale shift it cannot be ignored. i regard it asas my joto bring that call to your r attentio ev if it don't necessaririly agree e with it. i'm talkg about a huge call made tododay this rning by ron insana, who you no d doubt hav seen my years on cnbc includining severatimes today. and heuns the market movers s newsletterer. in this momorning'edition, he issuedne of the boldest calllls i've seen. toto boot, ery one of the defense stocks in his portfolio. that's r right, ta them all out and shoot them. i think that's shockcking. he putting the whole groroup, all thosose compies that don't ne a strong economy intoto the sell block. and he's's shiftg. he's going with a a portfolithat

shou rocket higher if housusing makes s a huge ceback. we kw from the papers everery day that considered to be just impossssible. but let's see. even though i dodon't agrewith everytng he's doing, i like ron enough to bring g it to yo attentioion. it's an important cacall froa guy withth 25 yearof experience watcng the markets. way back for t those of u who readconfessions of a street t addict" in the '9090s insanaas the guy y who caed practically to the minutute the d to the horrible998 bear market. th was about 15 minutes afafter i capitulated d and saidget out nonow." i i had to rract it. then i iaw ron's smilingng fac n the network getting more aggresessive ithe newsletter and because of that '9'98 call ang all e other terrific judgmgments i've seen him mamake on th networ whene gets aggressive, i migight ve to think maybe i'm m being too defensive, andnd you kw i'm defefensive he. maybe i'i'm not beg bullish enenough.

insana, like dououg casta noted bebear who tned bull caught what i think may be a genererational body, well, , we don'tant to miss odismiss a big call by y insana, anotother guy esteem highly, the specifics s of thi call. he's selelling briol myers, cisco, disney, micicrosoft pfizer, time-warnener, and verizo all stks he considers defensive bebecause ey're not sensitive to interest t rates. and using the cacash to lk up on the banknks, hombuilders, and insurers f for his mket movers portfoo. let's tatake a lk at these sell cas. fifirst, becse this is "the sell block" and i don't wanant you to be oblivioious to su a bullish call. first t i have tsay, i disagree. i disagree. u know on "mad money"e for a diversied portfolio. that's why every wednenesday we playay "am i dersified?" i would never advovocate getng rid of all allll my densives. how abouout the invidual stock

's kicking out? certainly would not sell the ones with the accidentalllly hi yields. thatat means y should keep this instead o of this anti-businesess, antitrust aack from o obama jusce department. and i keep bristol m myers whi mymy charible trust already owns with a 3.6% yield. and i just bought more o of it because of i its anti-ncer portrtfolio. those are too atattracti to toss away.y. on the other hand, i i understd his sire to sell microsoftft because the e newfou competition from google withth its on source operating sysystem, th will hurt fty's gross margins dodown the road. i i believe izer is a sell. i n't care much for the wywyeth acquisisition. frankly, the comompany is st not thatat well ru but i really disagagree wi him on selng cisco, which i'm looking to buy m more fomy

charitable t trust apart of a play o on incread technology spenng in the second half f of the year. in fact, i i thinkon's wrong to even lump thisis stock aa defensive,e, as cio will be one of the f first cpanies to experice a recovery since itit books s and sell85% of the busine in the quarter. when busininesses art spending again, cisco will bebe one othe first t to go hier. i also like disneyey. i rerd it as a play on cheapaper gagasoline, pecially now we understand j just how ch a farce the oils future markrket is,ased on how easily y speculors and nipulators can push pricices up. dumping disney?? big mimistake. wh about the stock he's buying?? insana iusing the cash from these sasales tooad up on bank of america, citigrououp, wells fargo, jpmorgan, andnd buying another nk, huntington bank

shares. but he's a also bung hovnavian, lenn. and his buying toll brothers, based in mymy hometownn o pennlvania. where do i stand on n these? yay to the banksks, nay tohe home buiuilders. come n, i would fight ron tooth and nail on these. i have said d that we t a housing g bottomt the end of june but that doesn't m mean appreciatition, it jt means use price stabilizatioion. at these priceces, thas not good news foror the hombuilders that nsana likes at all. they neeeed to s house price appriation. that's n what's happening. ny of the houses beingng closed now are forereclosed hes, cheaeaper thanhat they can sell em for. i don'n't like their balance sheets eith, with the exption of toll brothers.. if you wanant a playn housing i vavastly prer home depot, 3.9% yield. i own it for my y trust. think ron is being wayay too aggressive. i woulsell those home buildeders on any lift. although from the lookoks of t home blders today with kb homes up more than $ $1 and

lenard hnanian up on a nice percentage basis, maybybe i'm to negative.. i mighght be moraggressive. i like i think he'e's deadight, espepecially aad of the earnings port for the group. i think they'll be spepectacular i have banank of ameca, jpmorgan and wes fargo. wee in total agreement thehere. i am particucularly exted, if not just j jumping f joy for insana'sall. i thought i was the e only oneho liked huntington, ththe best i the banking busisiness. what's my bottomom line? i like to use the e best of e be to challenge my own t theses. i think ron's latetest edion is compmpelling, artling even, but am not as bullish as h he is. that's right, , i'm more defensive, less s inclinedo think that this markrket would tatake off, ich is what would hahappen if n is right. you ve to expect dramatic c housuse pricappreciation for ron to be right onon the hom builders. i respectfully disagree.e.

even if my respepect for t man mas me uncomfortable witith my own cautiousneness. rob inew york. rorob? >> caller: b big boo-y from long island, jim. >> i was on lg i island l last ekend. my garden's doing great.. what's up? >> cler: kraft is my biggestst lding. shouould i sti have an appetite r kraft? nono capit appreciation for this stock. all right, now. for r my trusust, i debated oved over again. i buy kraft or more b bristol myers. i decidethat kraft is going to be a s stuck in e mud stock. you have a n nice yielthere, but i do notee any earnings montum. eveven with mmodity prices coming d down, i cnot forecast why kraft could d go back 8.30. i ththink you' got one that's more like a bond t than a stk. you should b be switchg out of kraft aninto one that ron insana is selling and d i'm buying, bristotol myers. chriris in oo, chris?

hey, christotopher! you're up, chief.. >> calr: a big youngstown state penguins boo-yah t to you. >> holy y cow, man you arare an old totool, if i m y so myself. what's up? >> caller: first of f all, i wt to say thank you to evereryone, including you at c cnbc for e great job b you gu do. >> thank youou. thank k you. were good. i knowow there other -- i think there's other tv p programs out busisiness, bui'm not familiar withhem. ahead. and i'm also not famililiar wi any of t the peoplwho once worked he who may have gone to those other programsms. >> caller: i have e a questi about unililever. i fit purchased it for thehe over 5% dividend t that it h. and i have a questioion. with t the weakeng dollar, how does that companieies like unilever that t do busess overseas -- - >> that doesesn't dos well. you want to own unilevever and it's bn a big winner ever

since i sold it for mymy trust. i want tshoot myself. it's been a a huge winr because at guy who runs it has t taken out the costst. 's doing a marvelous j job. it's aestructuring story first. yove got a winner. it better than proctor a and gamble. all riright. let's go over r this aga. i want t to use pele i trust and i thk are smart to challenenge my own theses. ron insana, , sellinall his dedefensive ocks. i like them. i respectftfully disree with a man n i have wched on tv for 20 ars. ter the break, i'll try y to make you even n more mon. ming up, with a big nameme athe s.e.c. on the way outut, cramer reveals h his plafor regulalators to t a leg up on rket manipulation on the "eureka m moment. and lalater, ligning stririkes. cramerer goes eltric tataking allour calls in a spine-chilliling, overarged lighghtning rod. plus, on the execucutive decision, chahatham's enings takes s a hit.

so cramer takekes on the ceo to find out i if his stk can ease the pa in your portfolio. all coming up p on "mad ney." oof!

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i saw that laurie e richardsthe direrector of e.c. compliance office resigns.. she's part of f the examations dision. they're supposed to ininvestigat the bookat investment advirs, brokerage houses.. anof course bernie madoff.f. she anannounces e's done. i say suosed to review. shs supposed to review t the books. take aook. you stated that you hadad been recused from the madadoff investigation. and i wawas just wdering why that w. >> i'm n not partipating in the current exexaminatns or investation due to the fact that a f former ployee under my chain of command m married a member of the madoff f family d i i attendedhe wedding. >> a wedding? that's ne. i say zel tov. so in lighght of wharichards did sincshe took over the divisision since e 1995, whh is absolutely nothing didiscernibl i got to thininking othe difficulty of

the s.e. doing any real relating and i had what i i call a "eureka momement." e problem we have withth the s.e.c. is all l about inntives. theyey don'tay their examination and enforcement peoplele nearly enough money t to maket worthwhihile to cah the bad guys. anybody tatall lntedan get a job in the private sector r that pay much better,r, and tn there's the ise of regulatory capture.e. revolving door. we can d a stint at t the s.e. and then get hired by a a hedge fund or brokeragage housese tha will happily payy you a whole lt more than ththe fedel government will. so if you wowork therewhat the heck is ur incentive to catch people who might verery well tn out to b be your fure employers? or tput it another way. if you work fofor the s.e.c.you get t paid thesame, whether you catctch the m manipulats and be raids, or you don't. the mamanipulars and the bear

anand your fure prospects could be ahole lot better if youou look the othther way if youou let this slide. ththere's noompensation incentive to go o to work r the govevernment bond the goodness your heart and sense e of duty. and unfortununately th means manyny youngaggressive, smart ople may not be willining to go to work for r the orgazation or sisimply c't afford to go to the cocommission i do not meaean to impn the intetegrity any of the people who wo for the s.e.c. i'm just talking about t the incentive struructure. it's harto believe that people go through all the w work of trying to cacatch the nancial d guys in the act justst for truth, justice, , and thamerican wa escially when the bad guysys always seem to have e all the od lawywyering ney can buy. the british, t the briti solved thisis probl by paying the regulators grereat salars, as much h as threeo five times what we pay here. that is one solution. that is solution which is lled the super regulatoror solution, which we h have favod on this s show froday one. whe one organization regegulates everything frorom stockso futures options, and because e it's all amalgamated, t the enforcement office who work

for this e esteemeorganization, are paid a an eququivalent $500,00000 a year. i just donon't see cgress being willlling to py up that kind of ugh and i don't see the e president pushining for a per regulalator plan but then it occurred t to me. maybe i i was taki my example from the wrong b britishervice. maybe the e enforcent model the s.e.c. needs shouldn't't be bed onon t current brititish enforcement ororganizati. itit needs tbe based on the old system of f prize moy that the british navy used duriring the a of sail. back in the day, think napoleon's d day, ifou were the captain of a brititish warsh and you capted a ship that benged to the enemy or t to pirates, the governmnment leyou ke a huge fraction of itits value, with smalleler fracons for thcrew. th that's when i had my "eureka moment." wewe needo pay the enforcement officials prize mononey when thy

catch themem from manipulating e market. have the government seseize all the ill gotttten gainsnd then giveve the dn regulators who caughthe law breaking 10% or 20% of thahat money. an s.e.c.. officiaial catching a hedge fufund manipulated the market should b like an o british captain capturing a an emy vsel. you geget a chk of what you keep you catch it, you u get sothing. thatat's the n incentive structure the s.e.e.c. needsor its regugulators you could bebe set forife if you work at the.e.c. and you find one or t two instanances of manipulationon. and prove it. cause listen, while i i still think we've gogone too f towards nonregulating the inindustry, used to bebe a moneyanager and i have sn too many people fairly accused. so we e have to ke sure everyone is still innocent untitil prov guilty.. we could make it simplerer, too. if a hedge fund oror invesent adviseser or bror gets fined for breaking the rule the s.e.c. enforcerers who ught them should get a decent cut o of fine. instd of having people leaeave the s.s.e.c. to,ork in th world of finance, we c could have hed fund managers ave to go be

manars. ththey knothe games, they know the icks. weo this and it changes s everything. it also costs washshington nhing bebecause e extra money for the regulators is comingng out of e pockets ofof the pple they catch breang the rules. huhuge cash izes are the way to go. weddings or not, you t think auy like madofoff woulhave lasted more than a year in n that kinof rectory enenvironmt? i doubt t it. righnow, the way things workrk, the regulators a are outgued in aa huge way. it makes f the clits and evyone's compensation is usually based on the performance of the fund. th have every incncentive ttry to skikirt the res. if they dodo it succsfully they make it more money. but nobody at the s.e.c. got a million dollar bos f for catchi fraud or manipulationon. dodoes that ke sense? shshould wbase our securities enforcement on simple e greed? you bet we shoululd. it may seem sordrdid, but at else w works? you have to fighght the eed of ththe indust by giving the regulatorsrs somethi to be grgreedy abo. obviouously thisorks for more

thanan just e sec. i loveo see gary ginsler set something similar to popolice the oil futureres marketwhich has provoven itselto be about as easy to manipulate as a a penny stock even t though it infinitetely more portant to this nion's economy. while we'r're at it,hy not help the examineners by boowing a syststem thaworks well for the s. if you k know soone who is committing t tax fra and you repo him, you getet to tak a cut from 15% to 30%, if thehe s succeeds in getting g the money owed. y not the same policicy for e s.e.c.?? why not financially y reward whistleblowewers? it would h have reveed madoff years ag here's the bott linene. when it ces to enforcecement and examination, the s.e.c.c. woul have a beeeen a big ilure. it n needs a n incentive stcture of prize money w where the regulatorsrs get to ep part of t ill gotten gains of anyny financial malefafactor thecatch. thatat's a reaincentive for regution. borrrrow the wstleblower bounty om the irs and you've gogot a real leveling g of the pying fieleld betweethe bad guys and e good guys.

st of all, there will bebe no additional cosost to the gogovernmentnd the best people will be clamorining to worfor the s.e.c. eureka, , i've gott. coming up, lightnining strikes. cramer gs electric taking all l your calls in n a spinchilling overcharged lightning roround. plus, on the exexecutive decisi, chattem's earnings took ait. so cramer takes on theheir ceo t nd out if histock can ease thpain in your portfolio.. l coming up on "mad momoney." yo!

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it is time. it is time to do a little t of homewo before we get to the "lightning rnd." in monday on the "lightning round" someone aedbout shs. i thought it was a combinaon of saur kraut and dental floss, so passed on it. it's a small fluid pow coany. would stay away from it. i prefer eating or parting your hands from it. i think fluid power is n a good business right now.

i'm not gog to recommend a ock in that group. now it is time its time for the "lightning round" on cramer's "mad money." what's that l about? that's rapid fircas. you say thname of the stock and i tell you whether to y, buy, buy or sell, sell, sell. i don't know the stocks ahead time. if hear this sound buzzer ] the ghtning round is over. are you ready? steve, it is te for the "lightning round" on cramer's "m money." dan in tex. dan? >> cler: north texas mean green boo-yah to you. >> still one of the best. alonwith "friday night lights" and another good one. the best movie ever "remembe the titans." what have you got for me? >> also "necessary roughness." >> oh, my gosh, you're sright. what happeneto dan jenkins? go ahead. >> caller: my stock is radio shack. >> i tri it on a play with digital. i we had to sell it.

we had to buy it on thatriday, sell it on that tuday. if it didn't work. it lt us $1 on a trade and i never looked back becausthe consum is . i do prefer best buy to radio shack. i ed that as an illustration of a trade. it did not work. the two g th i did for tre at did not work. this is my total disclosure hair suit thing i'm doing. hair shirt, hair ui whatever you want, is boeing and radio sha shack. there were both for trad. i told people you have to cut yo losses because if you hold on to it, you ow nothing. tony in californ. to? >>aller: boo-yah from pleasanton, california. >> excellent. >> my stock iskamai technologies >> it's controversial. it's r a great deal and now it's having a pullback. ople feel like perhaps this watching tv -- watchg stuff on your computer like tv, wch is akamai ston trade, is ovdo and people don't care about it anymore. there's a lot of cpetition.

i am n going to get behind it. too many people come into eir area. let's go to rich in massachusetts. rich? >> a turkey y in july boo-yah to you from rich in massachusetts, not new jersey. are you ready to talk turkey? >>o, because westfield beat bate us in swimming. you didn't have to bring it up. just go in my day. i was having a perfectly good day. what was the stock? >> i don't know abouthat. hey, i learned from ur "fast money" cw the country turkey is enjoying a strong economy right now. strong banks and a lot of renewable -- >> which turkish stock washing machine compan which one? >> caller: i chose aindu telecom. i researched and ose tkc. >> bcareful! vofone is coming in there and slashing margins. no, i think you should take it. come back, it's too ngerous. too ch competition in turkey. they actually have a fre market.

no justice dartment there. how out y in connecticut. caller: boo-yah, jim. hey, calling about sunoco. want to know if it's oveold. they pay a divend and they have lot of cash. >> ty do, but i've got to tell you something. the refining business awf we know that he deserves a fair hearing. he's on thwall of shame. looks like every refining company is just tting hammered. i am not going to go there and tell you tget in front of that falling knife. do i loolikeutcher block y, marcy? adam in diana. adam? >> caller: it's am >>ou're up. might as well hime with the stock. >> caller: goi for ww, wyeth. >> don't like the consulting

companies. l the assets go out the door at the end of the da don't buy that one how abt neil in texas? >>aller: a fighting texas boo-yah from ft. worth, tes. >> ft. worth. may're drill f natal gas like it's gng out of style in ft. worth. what's up? >> i loved your comments ooil speculations. you're rht on. delta rline, buy, sell, hold >> sell, sell, sell, sell, sell, ll, sell, sell, sell, sell, sell. the "lightning round" is over! bull market or bear, traderers are alalys hungry for ideas. they find d them atd ameritrade. ading's all about stgy and stte's...

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thanks! noroblem! i felt azingly boxed in. (joe)uer) my meter a absolutyr adapts to meayer. i'm joe james, a and bex (annncer) now available five vibrant colors. toy chattem, which makes icy hot, which i've been using, man, because i hurt myack real bad, and gold bond powder and act moutash, i use toothpaste, but other products

you can fi at your local pharmacy reported wh i thought was a beer than expected arter. delived $1.26 in earnings. that's fiveents better than ey were looking for. was it a real upsider something that was driven by cost cuts? big sharbuybacks? it was in line. maybe that's why t stock wasn't up fourr five. chattem'sales came in at $1. million. that's about $1 miion less expected. on the street in other words, th wasn't an earnings beadriven by higher mand or stronger business. which is what wen cramica look for when a company reports. chattem's business model ito acquire brands a boost sales th incased advertising as well as its direct sales force. i got to wonder,s the model still rking? are we runni out of room here? i wa to speak to chattem's

chaian and ceo zan garry, the ceo of the comny, reported this quarter. rememb, april 9 we had him on. it was a serious disappoinent. he missed the reet's consensus by2 cents. gary reaed us he would bring in a better number this me. and he did. why did the analysts say notng real good about it? i've goto get better understandg of what's happening here at chattem. once again, i'm bringingack the ceo of chattem welcome back to "m money." >> thank you, jim. it's always a pleasur >> terrific. i've got to tell you, i' reading right now from a gol sachs comment that came outhis mornin first take is the heline. send q '09 eps beat primarily the results to cuts to ad spending. and it says just so you know, it says, despite the strong headline, we view the underlying composition to be of weak quality and the entirety of e five-cent beat from cuts in vertising and promotion, i went over the conferen call. i felt that you alsoadome pretty gd sales. who'right, me or them?

>> y're absolutely right. and they are misguided. >> wow. ldman slacks, misguided. i mean,now, can you go over, so th people don' take this first take a accurate, whi i don't think was, how domestic sales actually incased nely. >>ur profits come strongly from our top six brands. on all the conference cas use indicated, i talked about how they are, about 80% of prots. so when we saysales were weak, ouonsumer sales were u% on those werstng. the sales at they talk about include international, which we tually don't make any money off. d so that wasthere. so last year we had an item, icy hot at therapy, which was discontinued. and so that's a compison. the way we look at it, our sales re up domestically, which is our profitgeneration, 6.8%, which is prettygood. so we turned 8% increase in

sales into a 21% increase on the conference call, your present said that internationalales did decline by 2.3 mlion and 6.6illion for the quarters in six months. that is not go. >> we don't, i think you also id we made t same amount of money aswe did last year. we are the first to admit our inteational operations, we deriv minimal profitabilitfrom it. we he grown 29% compound grow for five years, driven by it isdomest success ofct and y hot. act was up 29, and woe are

lookinat strong profit numbers. each brand has a different profit, when ar aig brand, t or icy hot,you have a cash flowmachine. >> again, now, go to jeffreys, the audity to down grade stk before the quarter. that is icy hot, missed our forecast b 3.4 million andown ov the prior year. despite a later selli in advertisin support. >>hat is inaccure. doug lane has folwed us for a number of yes. we are tricky tofollo ere is a lot of moving pieces. they don't have access to a varietof things, in his case, hesaw data on june, which made him think a cnge has occur it is tough to follow. he generally does a goodjob.

he missed the earnings by fe sents. the day before, we be it by five centses. >> now, i was at my unfriendly neigorhood drug store yesterday, to buy something for my back. you know what, i s the icy hot and thewan reed rg. it may not mean much toy, but he is thehing, it was cheaper than icy hot. i still got the icy hot, had a feeling you we coming on the show, didn't want to betray you. i almost reached for the other guy'secause the packagi looked exact the same. >> our consumers, yr back is hurting, you want t best. you nt what shaq says. >> play as good asshaq, so i need it.

we haven't en much impa. the category that we are in, most people want the brand name product, they don't want, i know dwareed very well, to eir stores a lot in w york. you don't wantwan reed mouth wash or dwan reed loti, that is a tcky thing. there is a increase in pva labels in this economy, across some catagories. >> it is just you and me talking. do you have, one, what is that cramer, i couldn't find the n-mengtol version? >> we have a vanishing scen >> you don't have one that is, i ve the vanishing cre. this i for my own personal information. >> if you want odor free, buy

rcreme, each has diffent active ingrednts. >> i got it. thank you. you putt right to your critics. i am with yo not with them. you make money for investors, they don't. chattem, two thumbup. i have to get the nonmelly kind. stay with cramer. ♪

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we havavpepeop buying, putting people totowork. china, i gege y toliststenyoyou wiwill feelelhehe same way i d. i am jimim cmeme see you torrrrow you could bu 300 bottles of water. or just one brita filter. ( op plinks ) brita-- better for the environment

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