Pepsico, Inc. (PEP*)

'Mad Mail'

Q:      Dear Cramer,
I have read two of your fantastic books and I am now doing the homework you suggested on Pepsico, Inc. (PEP*). The latest 10-K is for the 2007 calendar year and is over 100 pages long. My question is, given the date this was filed as well as the length of the 10K, are there key points one could read over to skip some of the information in the 10-K? It would be great to see a whole show on this! Thanks for all of the education and your concern for the little guy.
Sincerely, Lee

Jim:    What I would like to do is offer Indra Nooyi (i.e., Pepsi's CEO) a chance to come here and we can go over her annual report… we can give her two or three segments and we can literally learn how to read an annual from a person who has one of the clearest most enjoyable and accurate and exciting… believe it or not… Indra Nooyi come help our viewers learn how to read an annual report.

'Mad Mail'

General question...


Q:      Dear Jim,
What do you think about a Town Hall Meeting between you, President Obama and Tim Geithner?
Your Faithful Fan,
Anne

Jim:    I have mixed emotions because next Wednesday I have one with Sheila Bear, who is one of my most absolute favorites from the FDIC… may I just say that I wrote a defense of Tim Geithner’s plan, if he would just flush it out in New York magazine this week… but more importantly I have become a critic of everyone… and I never meant to… I mean Ben Bernanke has come around to my point of view, I think he is really good… I was offering simple things… cut interest rates really fast… give a mortgage of 4% or refinance to everybody, not just to the deadbeats so to speak… and offer what I regard as being a plan to get private capital in, its very similar to the 1989... I wish I had never thrown chairs on this show… I wish that I had never started it out as wildly theatric as I had… I wish so, because my plans are better than their plans… but because of the way that I do this show… because I care about having a mass audience… because it is a night time show… these guys are never going to take me seriously… and it is a shame… my educational background is better than theirs… and I ran money… I just put all my cards on the table… in a completely arrogant fashion about why I feel they have not bothered to listen to me… and it is a shame… because sometimes I feel that I should not have this show… I should just go down there and make them listen to me… but I like this show… I wish they would pay attention… they obviously don’t… or they would never be in this jam… maybe that was hubris… I don’t care… I am kind of fed up at this point.

Verizon (VZ)

'Mad Mail'


Q:      Hey Jim!
Bottom or precipice? I don’t see a lot about this out there, but it seems like we are coming dangerously close to breaching the major trend line created by the 1983-1995 run. Perhaps this defines the bottom, but if not it is a long way down to the next line, or is there some other major support level I should be looking at? Love an rely on the show!
Jim

Jim:    That is why we do the off the charts section… I will tell you that I don’t do any of that kind of analysis… I traded when the Dow was at 2800 back in August of 1987... and then it went down to 1200... intra day, the day after the crash… I tell you if I bought bottoms at those levels, I would have been scared, I wouldn’t have bought, I wouldn’t have been in cash… all I can tell you is that we are going to do individual stock analysis on this show… if the Dow goes to 6000, Verizon (VZ) will probably be yielding 8.5% and we are going to snap some up… how is that… that is kind of the way we are thinking.

Dow Chemical Co. (DOW)

'Mad Mail'


Q:      Dear Jim,
I got into Dow Chemical Co. (DOW) at $13.50 a share. It’s now trading around 20-year los around $10... is there more downside? Should I take my losses and get out or buy more and average down? Any help at all would be greatly appreciated.
Ray

Jim:    We have a thing here called the Wall of Shame, Ray… at the top of it is Andrew Liverus, the often gregarious Dow Chemical CEO… who told us repeatedly that the dividend was not in doubt and then he got rid of the dividend… so my take is, until they get rid of Leverus, we are not recommending Dow Chemical… Dow Chemical once great company.