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Participants on April 15 included host Brenda Buttner, James Cramer, Herb Greenberg, Gary B. Smith, Adam Lashinsky, Dave Kansas, and guest Jim Seymour. The transcript is unedited, and phonetic spellings are indicated with (ph).

BRENDA BUTTNER, HOST:

Hi, everyone, I'm Brenda Buttner, and you're connected to "TheStreet.com." So color this market red. Hard to find any plus lines last week. Were you hit hard? What do you do next? Let's get the word on the Street.

With us from

TheStreet.com

financial Web site,

Jim Cramer

, who also runs the

Cramer Berkowitz

hedge fund; senior columnist Herb Greenberg; editor-in-chief Dave Kansas and columnist Jim Seymour. Also joining us, our resident "Chartman," Gary B. Smith, and Silicon Valley columnist Adam Lashinsky.

Welcome all.

Well, a massacre in the market. Is there any other way to put it? Stocks going nowhere but down, a stunning sell-off. The

Dow

has its worst day ever, and the

Nasdaq

also hit with its biggest point drop in history. And what about this number, 34%? That's how much the Nasdaq lost since its high in March.

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Jim Cramer, you've got your sleeves rolled up. You've seen all kinds of markets. How bad is this?

JIM CRAMER, THESTREET.COM:

This was as bad as '87. I felt that this market resembled very much the Friday-to-Monday action that we had that year. And I think that it was a good time to buy then. I think that we may not see a bottom on Monday. We may but I committed a lot of our firm's cash on Friday. I thought it was a right time to buy.

BUTTNER:

All right, Gary B., you're on the opposite end. You sold everything.

GARY B. SMITH, "CHARTMAN":

Yeah, I was -- I've been concerned for a while, and quite honestly when I pulled up the charts last night before the open on -- rather Thursday night before the open on Friday, I was scared. I would have done anything to get out, and that was before the PPI number came out. So I sold every long I had this morning. I took a little hit. Thank god I sold then. And I just have my remaining shorts. I remain fearful of the market. I wish I was as confident as Jim. I would prefer others to wade in, and I am more than happy to wait for a while and see if there is indeed a bottom.

BUTTNER:

Herb, everyone laughed at you when you said, watch out, there is cause for concern. You were right.

HERB GREENBERG, SENIOR COLUMNIST:

Luckily right, I suspect this time, but the reality was this was a game to market. There was a lot of excess. But you know if you look at the Nasdaq right now, it's down about 34%, not 36%, which is officially what you might call a crash based on 1987 and the Dow. So it still has a little way to go but I still there are a lot of excesses and they're based on a lot of the shorts that are still up, the companies that are troubled that are still up.

BUTTNER:

Right. No question though there's been a lot of pain. And Jim Seymour, you are in the middle of the technology.

SEYMOUR:

A little.

BUTTNER:

Yeah, exactly, right in the middle of the hurt. Long term, technology makes sense, but short term, is that a place to put your money?

JIM SEYMOUR, COLUMNIST:

I think in another week or two, it'll be a great time to get in with prices that if you're dollar (ph) cost averaging do spectacular things to your results over the last year or two. But the issue is the good big companies are down a third. The good, little companies are down two-thirds to three-quarters. We're about to be at the point of picking things up, but I disagree with Jim. I think we're not ready yet. I think some time late next week maybe but not Monday.

BUTTNER:

You know, Adam, everybody says buy good, buy quality, buy the

Ciscos

. Now nobody argues Cisco is a good company but it's still expensive. It's like a hundred times P/E.

ADAM LASHINSKY, SILICON VALLEY:

That's right. Cisco -- and the interesting thing about Cisco is a good example, Brenda, because it's always overpriced and yet it's always gone up. So the question to ask somebody like either of our Jims, Jim Cramer or Jim Seymour is: Why have the stocks been coming down now? I mean, there hasn't been any big event that brought them down. We were -- Jim, I was with Matt at the

Robertson Stephens

conference in February and people could not buy enough tech stocks. What's really changed since then is what I'm wondering.

BUTTNER:

Is it a return to fundamentals, Jim, from...

CRAMER:

No, actually I think what changed in the last few weeks is the daunting realization that there is inflation. I think there's a big sea change. We didn't think there was inflation. Well, I know -- I agree.

GREENBERG:

What changed? Nothing changed.

CRAMER:

Everyone realized the

Federal Reserve

is behind the curve.

BUTTNER:

But never mattered before.

CRAMER:

It was never as bad as it was this morning.

(CROSSTALK)

KANSAS:

But it didn't get as bad until now. People started saying -- you know, there was a lot of blinders on, I think, and it didn't get so people really grasped how bad it was until this recent series of inflation reports and now people are like, is

Greenspan

got to play catch up and is it going to be 50 bases points? Is he just going to start raising rates like he did...

GREENBERG:

Well, wait a minute. Does the market create it or does the market it itself in this event?

KANSAS:

And one of the things is some people don't think that that will do enough. Again, Greenspan today was just shoving people off the bridge. I mean, he would just -- had nothing to say that would up offer any succor to the investor.

CRAMER:

He sure was.

GREENBERG:

None, none whatsoever.

LASHINSKY:

I find this very difficult to take. We had -- we saw Greenspan raising -- helping to raise rates over many, many weeks. We shrugged it off time and time again. Why now, I still ask you?

SMITH:

I don't think it's related to the CPI number or inflation or anything like that. I think that you're just seeing momentum on the down side. People saw -- my gosh, Cisco is not coming back. I better sell while I'm still up 25 or 30 or 15% for the year.

LASHINSKY:

Or 500% or 600%.

SMITH:

Yeah, exactly. I think people are dying to get out now and preserve what profit they have.

BUTTNER:

Jim Cramer, you said you were buying.

CRAMER:

Yes.

BUTTNER:

Now you're an investor who is 100% in. Most small investors are? What do you if you're a small investor?

CRAMER:

OK, you're a hundred percent in, that's wrong. I've been saying that for weeks. I think I've really kind of drilled a hole in the Web site saying, "Please take something off the table." I took 50% off the table.

BUTTNER:

But now, what do you do now? They didn't listen to you.

CRAMER:

I committed some of that cash on Friday. I'll commit some again on Monday. I can't call a bottom. I'm buying high quality, both technology and non-technology. I bought everything from

Procter & Gamble

to

American Home

to

Intel

and

Oracle

today. They're cheaper than they were. They're not cheap.

SEYMOUR:

But technology, the Ciscos, though, we were talking about, the Ciscos are buyable now or at least certainly next week. We have the dot-com mania. The dot-coms went from the darlings to the dogs almost overnight. We had all these growing-concern letters coming from their auditor. We had the

Barron's

article that said they're all running out of trash. In some cases it was wrong. In many cases, it was right. The dot-coms triggered much of this stuff and the dot-coms are not buyable now.

CRAMER:

I totally agree with you.

BUTTNER:

Is that true across the board?

CRAMER:

I totally agree with you.

SEYMOUR:

But lots -- solid tech is very buyable.

CRAMER:

Yeah, I mean, Intel reports on Tuesday night. I don't think Intel's got bad things to say.

SEYMOUR:

And some companies like

Lucent

nearly held today. For example, the are some companies...

CRAMER:

Yes, very true.

BUTTNER:

All right, that's got to be the last word on Word on the Street for now. But everyone's back later in the show with a prediction: what's going to happen and how it can save or even make you money. Cramer, don't you go anywhere. You're not afraid to say buy it or get rid of it. Ask Cramer is next. Stay tuned.

BUTTNER:

Welcome back.

What do you buy? What do you sell? He'll take on the stocks you are asking about most of the time in ten words or less. Just ask Cramer.

And Jim, let's go right to the phones. Our first caller is Howard in New York City. Howard, what do you want to know about?

CALLER:

Hey, Jim, what do you think about

Metromedia Fiber Network

?

CRAMER:

Howard, MFNX is too speculative here. It's had a great run. If you still got some profits, take it.

BUTTNER:

All right, take that money off the table. Gloria in Illinois.

CALLER:

Hi, Jim. What do you think about

KLA-Tencor

?

CRAMER:

All right, KLAC, the KLACser (ph) as we call it in our office, I bought a lot on Friday between three and four, so you and I have company. Let's hope it works.

BUTTNER:

All right, let's see how many we can get through here. Mike in Colorado.

CALLER:

Hey, Jim, how about the creators of personal television,

TiVO

?

CRAMER:

Now you don't want to be there, sorry.

BUTTNER:

Charlene in Idaho, hi. What do you want to ask Jim?

CALLER:

Hi, Jim. What do you think about Oracle short term?

CRAMER:

It's another stock that I bought very aggressively. I talked about buying what I like on Friday. Oracle has come down substantially. It's doing very well. I thought the start-up position on Friday was a Godsend.

BUTTNER:

How much does a stock have to come down for you to take a look at it?

CRAMER:

Well, you know, I'm talking about high quality stocks that are down 30%, 40%.

BUTTNER:

Right.

CRAMER:

That's attractive to me.

BUTTNER:

OK, John in Texas.

CALLER:

Hey, Jim, what do you think about

Applied Materials

?

CRAMER:

John, again, we're hitting on all cylinders here.

BUTTNER:

Yeah.

CRAMER:

Applied Materials at 78 on Friday where it went out. I said, geez, you know, the stock was at 120 three weeks ago. This seems right to me.

BUTTNER:

You like all the semi...

CRAMER:

Yes, I belong to Applied Materials.

BUTTNER:

OK, Jerry in New York City.

CALLER:

Exodus

, Jim, EXDS?

CRAMER:

I gave up on that since this week, Jerry. I couldn't take the pain anymore, quite frankly. Exodus, just like

Bob Marley

says.

BUTTNER:

All right, Larry emails us wanting the low down on

Ariba

.

CALLER:

OK, Ariba, we tried again on Friday to buy some Ariba thinking that finally, the sellers were done. They just don't stop. And I don't know what to say other than the fact this is the highest quality new company but it's not working.

BUTTNER:

Well, it's a market leader in B2B. You love B2B or you have in the past.

CRAMER:

The holders of Ariba are the beleaguered holders. And they all seem to be margined. This is a stock that has the worst holders imaginable but it really is doing well.

BUTTNER:

All right...

CRAMER:

As a company, it's doing well. As a stock, it's...

BUTTNER:

Well, that's two different things, right?

CRAMER:

Yes, it is.

BUTTNER:

You've always pointed that out. All right,

Ameritrade

, writes Ken.

CRAMER:

Ameritrade, you know, the downfall of the market this week was the downfall for the brokers. The individual investors take it on the chin. I don't know how quickly he snaps back but Ameritrade is not the place to be if you think that the bull has been tarnished.

BUTTNER:

All the online brokers,

E*Trade

?

CRAMER:

E*Trade reported an unbelievable quarter this week, just fantastic. And what the stock did, it dropped another 15%. I don't think -- either

The Supremes

nor

Tina

could help E*Trade, although I love those guys.

BUTTNER:

All right, D.G. asks about

Sun Micro

. Great earnings report last week.

CRAMER:

I bought a ton of Sun Micro after when it was down on Friday. It reported an unbelievable quarter and I saw, oh, my god, it's down two points. Let's see, let's take some down. Before I got the report, I saw the stock drop another three. It was down five by the time I got the report, and I bought more, because I think Sun's right.

BUTTNER:

One of those quality companies?

CRAMER:

Yes.

BUTTNER:

All right, John in New York, what's your question?

CALLER:

Yeah, hi, Jim. Love the site, love the TV show.

CRAMER:

Thank you, Jim.

CALLER:

Can you tell me about

JDS Uniphase

, please?

CRAMER:

You know, I'm still there. It's tough. You know, this is one of those like Ariba where it's got bad holders but the business is great. I think this comes back quicker than most. Jim Seymour earlier mentioned that the dot-coms aren't going to come back. This is more speculative than Cisco, say, but less than the dot-coms. I think it's OK.

BUTTNER:

Time to buy it now?

CRAMER:

Yes.

BUTTNER:

All right, just don't sell less, as you always point out.

CRAMER:

Yes, you know it's right.

BUTTNER:

All right, Donald in North Carolina.

CALLER:

Hey, Jim. I'm optimistic on Monday but I'm looking for something under $50. How about

PeopleSoft

?

CRAMER:

You know, I don't really care for PeopleSoft. I think their business is not that strong. I understand your desire to have a price point that is easy to buy a hundred shares of, but this is not that kind of market where you can buy companies that aren't doing that well, and that's one of them.

BUTTNER:

All right, Jim, thanks. But don't go anywhere. We want your prediction. And do you want to ask Cramer? Check "TheStreet.com" TV page on our Web site for the next time you can call in. But after this: predictions. You need to hear them.

BUTTNER:

Most people are throwing up their hands when asked: What happens next? Not these guys. Get ready, because this segment is loaded with predictions.

Back with us from

TheStreet.com

Web site, Jim Cramer, Herb Greenberg, Dave Kansas, Jim Seymour and in

Fox Central

, Gary B. Smith and Adam Lashinsky.

OK, Herb, you're up.

GREENBERG:

Well, Brenda, as I said a little earlier, the Nasdaq has not fallen a complete 36% or so -- And actually, the Nasdaq will hit 3,225, which I suspect at this point is an easy prediction. It'll hit it probably Monday morning but it will hit 3,225 this week.

LASHINSKY:

Herb, explain this 36% to me. I don't understand it.

GREENBERG:

Thirty-six percent is the Dow Jones Industrial Average fell from top to bottom in October of 1997 36%. That -- I guess if you want to call, you know, 10%, a correction, 20%, a bear market, what's a crash?

BUTTNER:

That was a little different, though, Herb.

SEYMOUR:

You sit there and go "Umm, 36, umm." Is this numerology?

GREENBERG:

No, it's just something to hang your hat on. All of this is something to hang your hat on. And I think that's the point where people can finally call it something and get on with it.

BUTTNER:

And do they change their actions once it's -- you hit the C word for crash?

GREENBERG:

They better know what they're buying. You come back to the same old things we've talked about week after week after week.

SEYMOUR:

Herb, given your usual perspective, are you thinking in your heart it could even be 37 or maybe 38?

GREENBERG:

I think it probably will be.

BUTTNER:

All right, Gary B., what have you got?

SMITH:

Well, you know, when I try to look at the charts, I try to find areas of strength or areas where I think the pain would stop, if you will. And there's really two things. You'd like a chart to stop at a long-term upward trend line, and you also like a stock or index to stop at a whole number. That's usually where you find support.

Unfortunately, for the case of the Nasdaq, I have to be a little bit more bearish than Herb. I don't think the bleeding stops until we get to 3000. And, in fact, I think at 3000, it has to hold there. Otherwise, it's going to get very, very painful. But right now, I think 3000 is pain enough.

BUTTNER:

I don't know. We've seen a lot of round numbers lately. We've crashed right through them.

SMITH:

Well, you've seen numbers like 3400 to 3550. Those are, yeah, round, even numbers, if you will.

GREENBERG:

Hey, Gary, when were we at 3000 last time? This is actually -- were just a few months ago.

SMITH:

Yeah, well, you know, I think we're making a round trip. And as I said on the first segment, I think the momentum is still down. In fact, in my column that is up today, as a matter of fact, or Saturday, if you're seeing this on Sunday, I'm going to talk about the fact that in a bear market, I think we're in a bear market with the Nasdaq. Every rally up is a shortable rally just like in a bull market, every pull back is buyable. I just don't have any confidence right now. Maybe I'm wrong. Maybe Gary having no confidence is the bottom. Then you can say you save the market. But I don't think so.

BUTTNER:

All right, Jim Seymour.

SEYMOUR:

I think that the Nasdaq top is going to be up at 4800 by Christmas, but it's going to be pretty much dead until then. I don't think the big action comes until after Labor Day. We'll see a lot of little crunchy moves along the way over summer.

SMITH:

Jim, let me ask you a question. I don't understand what is going to propel people to make them think, wow, you know, Cisco back to 400 PE is now worth it but it wasn't worth it a couple of months ago, assuming we're in December.

SEYMOUR:

They won't stay out of the market. They've got to put their market some place and they're not going to be happy with money market funds.

SMITH:

Well, why not

Disney

or

Coke

or something like that?

LASHINSKY:

Well, Gary, I'll answer that. It's because...

SEYMOUR:

Because it'll never earn those -- you'll never get the margins, you'll never get the return. Basically you've got to be in tech. It's only timing.

SMITH:

But, you know, the PE...

LASHINSKY:

Well, the answer to -- the answer is...

BUTTNER:

Yeah, but Jim, you don't say that. Your buying up is in tech.

CRAMER:

I'm buying a lot of things. I think I'm taking a very hard line that was -- from when I used to trade with my wife, the trading goddess, Karen Cramer, from -- in the '87 crash, in the '90 crash, in '94, which was one-third of the stocks that probably bottomed already. In this case, I happen to think it's the drugs. I like American Home. It's my largest position. One-third of the stocks, I think, are still trying to find a bottom. I believe that's the Intel, Cisco world. And one-third of the stocks are going to disappear. And if you're in those, you're in big trouble.

BUTTNER:

Adam?

LASHINSKY:

The point is, Brenda, the sentiment changes. I think that's what Jim Seymour was hinting at. We don't know when it changes. At some point, people start getting excited again.

BUTTNER:

OK, got to take a quick break but when we return, Jim Cramer, Dave and Adam have their predictions.

Stay with us.

BUTTNER:

Welcome back.

Let's keep those predictions coming. Jim Cramer?

CRAMER:

Stock that's near and dear to my heart that I own a lot of is stock called

TheStreet.com

. I've watched it go from 70 to five. I think it's done going down because it's got $4.75 in cash.

BUTTNER:

Well, what makes it different than the other dot-coms that Jim's saying that...

CRAMER:

Because there's only six of them that are trading this flow to cash and I think if you can buy the stock at four with cash and $4.75, I'm not afraid to say I think that's a good buy.

SMITH:

Hey, Jim, wouldn't you say the journalists are better at

TheStreet.com

, also?

CRAMER:

I'm not joking about this one.

SMITH:

Oh, sorry.

GREENBERG:

But Jim, there are a lot of people short this stock.

CRAMER:

Well, I think that they can short cash at four bucks. If they think cash goes to three, then they're going to win. I don't think it does. I'm not talking about a company. I'm talking about a checkbook.

BUTTNER:

Gary, what does your chart say?

SMITH:

On

TheStreet.com

?

BUTTNER:

Yes.

LASHINSKY:

Have you looked at it lately?

SMITH:

I am not allowed to look at it. I'm not allowed to even comment on

TheStreet.com

.

CRAMER:

Nobody's allowed to comment. That's the big joke. But I don't care because I think it's too cheap.

BUTTNER:

OK. Dave?

GREENBERG:

You don't feel this strongly, do you?

CRAMER:

No. I've had enough.

BUTTNER:

Dave, go with it.

KANSAS:

Yeah, uh...

BUTTNER:

A little speechless at this point, but, yes.

KANSAS:

Everybody's talking about the Nasdaq and Jim is talking about some stocks that have bottomed. I think the Dow is going to turn before the Nasdaq. I think we go to 9,500 on the Dow. A lot of those components, old economy, are going to attract some of the early attention, early money because they're going to look steadier. And I think the Dow's going to start to bounce probably I think toward the middle of next week from 9,500.

BUTTNER:

That was really the significant chips though, wasn't it? We move to -- you know, the Dow was going up while the Nasdaq went down and now they're both down.

KANSAS:

Right. But I think that the Dow is going to bottom before the Nasdaq. I think it's a lot more emotional fear in the Nasdaq stocks right now, and Jim's talking about a whole summer of discontent. With the technology stocks, I think Jim's talking about -- he's buying the drugs, which there are some drugs in the down side. I think...

SMITH:

Hey, Dave.

KANSAS:

Yes.

SMITH:

Let me give you one reason I was scared, though, on Thursday night. I agree that the Dow is probably safer. You know what scared the heck out of me? When I saw stuff like -- not in the Dow but they're of that ilk -- stuff like

Safeway

, stuff like

Harley Davidson

just die, just get cratered, lows which I was long. That's what worried me about the market and told me people are really throwing it in now.

BUTTNER:

And your charts were screaming sell.

SMITH:

Yeah, absolutely.

BUTTNER:

All right, Adam, what's your prediction?

LASHINSKY:

One of the biggest expected IPOs next week is

AltaVista

. I don't think it'll happen. I think it will get delayed or pulled and that will cause the entire IPO window to go shut at least for a little while.

BUTTNER:

What about the venture capital? Does that dry up, too?

LASHINSKY:

No. They've got -- they're awash in cash. They've literally got billions of dollars. They can go on for quite some time. As a matter of fact, they'll start snapping up private companies at much lower valuations.

SEYMOUR:

Adam's right about AltaVista. AltaVista also had bad numbers in terms -- recently in terms of an increase in page views, which was at a smaller rate. So there's not only the market reason but there are internal reasons, perhaps, to pull the AltaVista IPO down.

BUTTNER:

All right, well, do you agree? Tell us by logging on

TheStreet.com

Web site and going to the TV page. Once there, you can rate the predictions and also send us a question or a comment.

Well, thanks so much for joining us. I hope we helped. We'll see you here again next week. Until then, we hope that you invest wisely.

END

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