Transcripts For CNBC Mad Money 20140611

Washington. With all this horrendous confidence destroying overtones, its right back on the Front Business pages. And as you might expect, the markets had to take a tumble, the dow tumbling, s p dropping. 13 . Indeed, the wall street journals lead headline, tea party upsets gop number two cantor, took our breath away, caused many a buyer to turn seller. And i cant blame them. Did you know that every single big decline in this market since the generational bottom, every gut wrenching bone clenching selloff of more than 5 has been caused by washington. Either because the government did something terrible or because people were worried that it might do something horrible. Every budget fight has hammered the market, every passage of any tax. Every debt ceiling debacle. Every government shutdown. The house of pain. Every missed grand par began, every bit of grand standing. Sell, sell, sell in fact, every time one of these politicians grabs a microphone we seem to go down. On the other hand, think of what its been like since washington ceased to be a factor. Because the politicians started acting like grownups, raising the debt ceiling, arriving at a budget compromise, ridiculous as the sequester was, took the prospect of more government shutdowns off the table. Just the notion of not having to worry about washington has rebuilt Business Confidence in this country. The president s been able to focus on Foreign Affairs knowing he cant get much done with the republicancontrolled house. The republicans in the house are checked by the democrats in the senate. No one can do anything. Its total gridlock. And the rate of Government Spending has therefore slowed. Sure, the expiration of longterm Unemployment Benefits and the cutback in food stamps have hurt the market, not to mention the former recipients of those benefits. The slight rise in taxes hasnt hurt as much as many thought. Although it certainly becomes part in parcel of the lack of stimulus despite stubborn joblessness and stagnant wages. Even the Federal Reserve has receded from view. Although the Cottage Industry of fed watchers refuses to admit it. We know that because despite a strength in economy and tapering of the bond buying, Interest Rates have stayed stable or trended down, just when we expected them to go higher. Wasnt that the drill . And then, along comes this shocking news of the allegedly moderate eric cantors firing by his constituents. I want you to put aside for a moment that caters a bit of a quizzical fellow. The man i identified as the congressman from squawk box. Played both ends, making tea party noises but taking wall street money. He was unpopular in his district or he wouldnt have a challenger tea party or not. Didnt do as well as the unknown david brat did winning 56 of the vote. Thats a trounsing. The fact that brat, admitted tea partier, stunned those who thought the republicans were moving toward the center. Maybe its a little worrisome because the center has produced a lot of the compromises that made it so our economy was no longer hostage to things like a rejection of the debt ceiling increase, which is a default on the great nations obligations. Or the endless lost cause fight against obamacare. Like it or not, this lost cause is the law of the land, even for the rejectionists. But take a step back with me for a moment. We know gridlock is good for the market. So do we really care what the coloration of gridlock is . Does it really matter how washington ceases to be important . As long as it ceases to be important . Yes, we like it to be quiet down there. First of all, though, this is just a primary, maybe it wakes up the moderates. Isnt that why the market came back a little in the end . The economys in much better shape. Even if washingtons going off the rails, i think it does a lot less damage. This market has been rallying and rallying and rallying. Given were less than a percent off of alltime highs, would it matter what happened today . Time for a breather. Maybe we even deserve a breather. Junes historically been a tough month. We have a vacuum of information. We sense things are better in the economy but cant be sure. And we know we need our trading partners around the world to show more signs of life. Most importantly, valuations have gotten a tad richer without a more current status report of how the Underlying Companies are doing. In short, this cantor upset was a terrific excuse to ring the register. To take some profits. Which you know im in favor of. It does make sense in a kind of very knee jerk way, doesnt it . I knew i knew i jinxed us yesterday when i turned to my squawk on the Street Partner david faber and said, wow, thats such a sustainable run because we havent had to think about washington and the endless destruction of rallies. I didnt see cantors defeat more than anyone else did. I think the surprise factor wont be o over in a day. Once washington gets on the front page of the business papers, it doesnt come off that easily, sadly. The washington portion of the business, theyre not going to can those guys in a day. They love discussing wall street. Theyd walk a mile for business camera. Im sure well hear plenty of chatter how next years debt ceiling battle will be a bruiser again as that seems like a cause celeb of the tea party. Were hearing that Immigration Reform is dead because cantor embraced some form of resolution. I do worry about hostage taking, thats bad for business. But thats strictly a cross that bridge right before we come to it situation. I mean, arent even on the road to have it happen yet. Immigration reform, you might want it, might not want it. But one thing is certain, it doesnt mean much at all to what we pay for stocks. What we pay for stocks is being determined by the profits of the companies. The dividends, the buybacks they offer and the prospects of their future growth. None of which are inhibited by cantors defeat. I dont want to ignore some of the other major events around the world, dont want to be considered a pollyanna. It hurt europes we need european stocks to do better. Meanwhile, iraq seems in danger of collapsing with the insurgents taking over mosul. Many thought it would be able to double the Oil Production in a short period of time if peace maintained in the fragile state. However, that does make the Oil Companies that i jabber endlessly about, the ones, makes them even more successful. Better opportunities. Hence the rallies, and here we go. You know what, i dont mind. Not everybody just tunes in every single night. Why not say the biggest winners ive ever had on the show. Pioneer national, eog, simmerex, continental, and lets throw in anadarko. But in the end, i say use this breather as the pulpback thlbac allows you to put money away. We go for longer term themes, aerospace, best e commerce plays and oil and gas. Dont be aggressive. Washington stuff cant go overnight. So let me give you the bottom line here. Once again, i want you to stay the course. Find the bargains, slowly but surely pick the best of the best as washington gives you still one more opportunity to buy stocks on sale. Even as the companies that back them are doing just fine. Thank you. Lowell, ground zero, lowell in virginia. Lowell. Caller thank you, mr. Cramer, for taking my call. We represent a foundation called l project yellow light, trying to get youth to do a oneminute film on why you drive correctly. We constantly watch you and see that you have a charitable trust. And our desire to continue to fund our scholarships even though we have sponsors. We looked at boeing today and wonder whether the coal and the challenges that coal is going to face is going to raise the price of fuel, which will be challenging for airlines and thus boeing having a hard time. We want to we want to have stocks that five years from now we will look back and be glad we purchased. Perfect. This is perfect. First of all, its great you spend that much time doing charity work. I appreciate that. Let me explain what happens. Boeing, first of all, does better. We had mr. Mcnerny on. It goes up slightly, it does better. Second, theres a sevenyear backlog of boeing planes. Third, we know that the companys doing incredibly well because we keep seeing all the companies that keep trying to buy their planes. I think boeing is an opportunity now. I said yesterday, the stock was acting funky. I want you to buy it. Could it go down another buck . 130 stock. Boeing, youre in great hands with boeing. Allstate, too. But boeings the one. Lets go to matt, sweet home alabama. Matt . Caller hey, jim, war eagle, alabama. War eagle. Wow. Bucket list, youve got to get to these places. And by the way, notre dame, another one ive got to get to. Wed love to have you. Thank you. Caller all right. With the fed looking to raise Interest Rates of the near term future, i was wondering what you think about taking regions financial. Regions, i like regions. Regions financial is doing very well, and i really like the stock. It used to be much higher. All right. From pennsylvania avenue to wall street to main street, washingtons back in the picture, cramerica. Please dont let it scare you. It was so small. You know what, use the breather as an opportunity to slowly but surely pick up the Companies Just fine. Stop being scared. If you were scared today, bad. On mad money tonight, have an iphone or ipad . Well, then you already own some of microns technology. But is now the time to own its stock . And while one could keep your portfolio in good shape, the other one belongs in quarantine. Ive got the answer. Plus tax time may be over. But should you spend your refund on shares of h r block . Why dont you stick around with cramer. Dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Tweet cramer madtweets. Send jim an email to madmoney cnbc. Com. Or give us a call at 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. Great rates for great rides. Geico motorcycle, see how much you could save. In a we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. The scars from the Great Recession are always with us. I think we refuse to acknowledge them. Got a classic example. Today in micron, a stock that rallied 5 because of a bank of America Merrill lynch analyst upgrading the Big Semiconductor company from sell to all the way to buy. First, thats an astonishing turn. The analyst unrelenting all the way up, fought it tooth and nail with the same logic. Prices had to collapse for whats basically a commodity product. Micron makes drams, which are pretty much found in every personal computer. And the dram business has had a terrible reputation as a boom and bust industry. Thats because when demand picks up for personal computers, average selling prices go higher for these kinds of chips. When the selling price goes higher, someone breaks ranks and begins to build out new capacity to meet that demand. Just like you may have learned in econ 101, prices initially go to equilibrium and begin to plummet as Companies Open factories to get a good return. Suddenly the good return becomes a terrible one and stocks, which had been rising all along get crushed. In some ways, i cant blame him at all. Many have contended this cycle where prices have stayed steady is on the last legs. One of the manufacturers is going to blink again because they always blink. And the newfoundries will come online. Every time ive said something positive about micron, i run into this logic. Im always reminded about what happened in 1995 when the stock went from 9 to 47 and right back to 8. Or what happened to the stock again in 2000 when it took a dizzying 29 to 27 run before plummeting back to 6. Both times by increased capacity. However, turns out that this time, really was different. After bottoming october of 2012 of 5, hitting 31 today. One of the reasons its run so hard, has to do with a Great Recession, the aftermath and the mindset. You see, there used to be many, many competitors in the dram business. Including japan and two Large Companies in korea, as well as micron. However, because of capital constraints and the longterm decline of personal computers, the Major Japanese Companies combine into one entity. Then collapsed only to be rescued by a 2. 5 billion buy. The collapse took out a huge amount of capacity and left pricing firm. Chose not to build capacity. They did that in part because of the negative mindset of the Great Recession. Where every manufacturer is afraid to expand. Every quarter since the micron lp, the deal closed a little less than a year ago. But thanks to the lack of new capacity, we never saw a collapse in pricing because there was no new supply. Now, ever so suddenly as the stock of intel would tell you, were getting insurgence in demand of devices that use drams. Another positive piece on micron. That means prices are actually rising for these commodities as the cost of making the chips is coming down, leading to a potential explosion in earnings. No doubt because his mindset like many others remain rooted in history, not the present. The bottom line, everyones cautious. And thats how you get such a wonderful multiyear move in micron. Which had always been a heartbreaking stock until alas, the competition ended and the Great Recession changed how people think about business. Perhaps for a generation to come. Can i speak to brad in louisiana, please, brad . Caller boom shockalocka, booyah. Good call. Whats up . Caller well, i started watching you around katrina when i was stuck in houston. I picked up some hxl at the time, and i sold 2 3 of my position and hanging on to about 100 shares right now. I think youre in good shape. Going down with boeing. And this is a longterm play as were going to need more aerospace, more planes, hxl is part of that. Congratulations, by the way, for taking profits. We love that around here. Things have changed in the market. The scars of the Great Recession are still with us. What can we learn from one analysts change of heart . Everyone is still cautious and that, my friends, is whats causing this multiyear move in the stock. Much more mad money ahead. Gnc and vitamin shop, two stores at war. Theyre supposed to keep you healthy, but one stock could be downright hazardous to your health. Stay with cramer. You know how i feel about making friends. I could care less. But family, thats a different story. Booyah, jim on june 13th, were celebrating our seventh annual special, mad money its a family affair. If you want to join cramer in studio for the special event, head to madmoney cnbc. Com to sign up for free tickets. The family that invests together, stays together. First day of my life by bright eyes youre not just looking for a house. Youre looking for a place for your life to happen. I think its time to revisit the vitamin stores. Especially the epic clash between gnc and the vitamin shop. Roughly a month ago, both Companies Reported with gnc coming on may 6th, and the very next day on may 7th, judging by the performance of these two stocks, you would think they both delivered horrible results. Given that gnc tumbled 15 and vitamin shop dropped 5 . You might draw the conclusion that the whole business selling vitamins, Nutritional Supplements had fallen through the floor. But i think that conclusion is mistaken. What were really seeing now is actually something thats happened before. And its not that the entire vitamin store industry is doing horribly. No. The reality is, gnc gnc is doing horribly. When vitamin shop reported it actually delivered terrific results, crushing wall streets expectations despite the awful First Quarter weather, the traction their business is getting, but because gnc is the larger player and the reported before, the pin action from gnc ended up knocking down vitamin stock and caused people to dismiss the companys positive results. By the way, we saw this exact same dynamic when gnc reported a terrible quarter in february that took down both stocks. But in february, Vitamin Shoppe reported two weeks later, not the next day. And and the stock came roaring back this time, though, because coincidence. Because it reported roughly the same time as gnc. Vitamin shop, terrific numbers have gotten lost in the shuffle. And everybodys treating these Companies Like theyre exactly the same. When the truth is, theyre anything but. Yep, gnc and vitamin shop couldnt be more different. Gnc is clearly struggling to execute and they posted two breathtakingly bad quarters in a row, hence why the stock is down 36 yeartodate. But vitamin shop is cruising along and delivering on all fronts in able and consistent manner. Or to put it another way, gnc, once one of the best of breed is looking more and more like a broken company. Vitamin shop simply has what i view as a broken stock different from a company. One thats being held back from the weaknesses as the competitor even though it deserves to go higher. You know what, thats your opportunity here. Let me ask you a question. How is it that gnc is doing so poorly while Vitamin Shoppe is doing just fine even though theyre in the same industry. Why dont we start with gnc, a company thats still beloved by the analyst, despite the multiple disappointments as the stock currently has six buys, seven holds and a single sell on it. For a long time, the company and the stock were incredible performers. In 2013, gnc gave you a magnificent 75 gain. But back then, the company was consistently delivering samestore sales in excess of 5 . In its latest quarter, gnc samestore sales, holy cloud, they declined. 7 and while management blamed that lousy number on bad weather and a lack of new product catalysts in vitamin and diet products, some of these exacerbated by negative media categories. I think that explanation, lets say it looks a little silly, maybe questionable. When you consider the vitamin shop managed to deliver a 3. 6 increase increase in samestore sales with the same weather. Unless it was sunny on their side of the street. No, basically the same products, same negative media reports and these guys did so much better. Clearly, theres something wrong at gnc. And i say this as someone who has liked and recommended the stock before it went public in 2011. But when gnc missed numbers in february, i believe them when they said the problems were onetime issues that would go away. Fool me once, shame on you. Fool me twice, shame on me. Beyond that, i, along with many others believe that gnc, new loyalty card i talked about on the show. The new loyalty card rollout would be a big deal. Yeah. As management really talked up the strong results from the test markets, the First Quarter was supposed to be the defining moment. Instead, the results really, so far have been pretty darn unimpressive, which is a real problem given how much emphasis management and the bulls have been putting on this thing. All that said, gnc has come down so much that maybe i wouldnt short it here, stocks only trading 10 times next years earnings estimates. I wouldnt be a buyer, either. Its become too darn inconsistent. Vitamin shop, on the other hand, is actually in terrific shape. And i think that pin action has created a fabulous entry point. Probably down a little more when the market gets hit tomorrow off the cantor stuff maybe. Its wrong to extrapolate because these are very different companies. Not just because gnc has 8,500 stores compared to Vitamin Shoppes 660 locations. Thats just the tip of the iceberg. The revenues inched up 1. 9 . Vitamin shoppe revenues by 10. 3 . Booming internet business, that was up 17 . Not only that, but Vitamin Shoppes business is far more diversified than gncs with a much broader array of offerings. Huge exposure to the diet business. And while that was terrific last year when diet products were on fire, this year, the whole segment was broken down, which has hurt gnc, but done much less damage where diet products are a tiny piece of the mix. It hasnt gone totally unnoticed a bank of america, Merrill Lynch and barclays upgraded after the quarter. But beyond them, its been almost entirely overlooked. Its still trading about 50 cents below where it was before gnc blew up. I think Vitamin Shoppe is headed higher here as more people realize this company has its own story. Different from these guys. And this story is going well. When the company came public in 2009, it was about rapid new store growth. These days, Vitamin Shoppe has plenty of room to open up new locations. But its also got the fastgrowing ecommerce business. The companys developing and marketing its own proprietary private label brands which ive taught you carry much higher margins than the big national brands. Private label, 25 of the products. Management believes they can get that figure substantially higher. Meanwhile, Vitamin Shoppe has tweaked the format so the new stores have about 20 less Square Footage even as they have the exact same product offerings. Now, two days ago, we learned that Vitamin Shoppe was buying a contract manufacturer of vitamins, minerals and supplements called nutriforce nutrition. All cash deal. Even though this was a small acquisition, i think its a telling sign that Vitamin Shoppe is moving toward vertical integration, which will allow the company to lower procurement costs, bring new products to market faster and protect the proprietary formulations. How about this stock . Trades 15 times next years earnings estimates. I think thats pretty darn cheap. Got a 14 growth rate. That makes it a buy. Heres the bottom line, dont let the weakness at gnc confuse you into selling the superior competitor, Vitamin Shoppe. Think of it as an opportunity and stay away from gnc. That ones in the penalty box until management can deliver a good quarter. Although, like with the new york rangers, soon it might not matter. Tim in california. Tim . Hey, cramer. Yes. Im long on sjm. The companys been very good to me. Im trying to spot the top. I like that group so much. And theres so much consolidation going on that i am not and normally, because i didnt like i liked this quarter, i didnt like the previous quarter. I dont want you to sell it. I think theres a lot of value there. Lets go to sonny in illinois. Caller hey, jim, sonny from chicago, illinois. Love your show and your new book. Oh, my. Thats a sensational recommendation, although didnt include the restaurant. Go ahead. All right, buddy. Ive been watching on the pullback, they have a pretty nice dividend. Whats your thoughts on rrd . Theyre reinventing the company. Id love to have them on the show, get a little sense of whats going on new lately. That would be good to have them back. R. R. Donnelly, surprised that things come down 20 . Weve got to do more work on that. Im going to do more with a 6. 4 yield. Lets go to john in texas, please. John . Jimbo, booyah. Lets talk about products. New management, restructuring, talk to me about it. I dont like it. I think that its still too challenged. I want to upgrade it so much. Talked about it with my writer friend at the street. And i keep saying, ive got to because i like mccoy, but i cant pull the trigger, i think theres structural problems at avon. I dont want to touch it. Gnc and Vitamin Shoppe. One of these is not like the other. Dont let gncs weakness scare you from the business as a whole. Vsi is still good for you. Theres more mad money ahead. H r block just shattered the quarter by helping america shell it out to uncle sam. Should you spend your refund on the stock . Im talking to the ceo. Stick with cramer. Oh my god look. You need to see this. Show em the curve. Do you know what this means . The greater the curvature, the bigger the difference. [scifi tractor beam sound]. Sucked me right in. Its beautiful. Gotta admit one thing. Cant beat the view. Introducing the worlds first curved Ultra High Definition Television ordinarily, its not the time of year when id recommend buying a tax preparation company. But 2014 is not an ordinary year. And h r block, the largest tax repairer in america is not an ordinary company. Im not saying this because they reported a fantastic quarter this morning showing that they had an excellent tax season with the company earning 3. 29 per share for the quarter. That was a 6cent earnings beat on a higher than expected revenue that rose 16 yearoveryear, hence why the stock rallied 1. 42 or 4. 6 on a really terrible day for the market. No, ive adored and continue to adore h r block because the companys selling off the internal Business Bank in a deal that you close this september. Why does this matter . Because until this bank is going, h and r block, puts restrictions on how much cash they can return to shareholders via dividends and buy backs. Once the business gets sold a monster return to the store for those who own a stake in this company with a market cap of about 8. 8 billion. I think its headed higher. Dont take it from me. Lets check in with bill cod, the president and ceo of h r block. Mr. Cobb, welcome back to mad money. Jim, thanks for having me back. Good to see you. How are you . Last time you were on, i talked about something i typically dont do this. You had an ad campaign. Yes. And usually they dont move the needle. This one did for you guys. Ive got my bow tie on as you recall. Yeah. I wore that back for you. Get your billion back resinate. Yes, it did. Did two things for us. One, clients, customers, consumers all fell in love with it. We had very high awareness quickly, associated with h r block, our numbers off the chart. But the great thing it did for us was galvanized the system. Here was one of their tax pros who became the spokesperson for the brand, cute little guy with the bow tie. And every office i went to, people were fired up and we had the cutouts of him. It worked out to be terrific. I was going to ask you about everything you say you say every office. You have a lot of offices. You have a big bricks and mortar component thats working. It is working. We have about 10,300 offices. You know, what we do as a company is we have we assist people in preparing taxes or let them do it themselves. Our principle is we want to serve clients the way they want to be served, so we cover the entire market. You made some things very clear. You use a phrase a layer of complexity, which, of course, involves Affordable Care that may be the key metric of your company. The more layers of complexity, the more we need you. I think what happens is weve been in this business going on 60 years now. We understand how to adapt to all of the tax changes come continuously. Whats coming up for next tax season with the Affordable Care act is the biggest change to the tax code in 20 years. Our scale, our knowledge, our Tech Institute allows us to prepare accurate tax returns. It would mean if done right, money back, if done wrong, what happens . Well, it means a couple of things. One, it means that you have to reconcile. If you take a subsidy, and thats the wrong word. Its an advance tax credit that you get, you then have to reconcile that against your actual income when you prepare your taxes. That could be a plus or minus. And if you actually did a good thing and earned more money, you actually will have to most likely deduct off your refund that amount. Its very complicated, consumers are still very confused about this. We understand this law, i think better than anybody. Well be prepared next tax season to be able to help people navigate through this. Two components to everything i liked today. One you said was true. But the second, were just getting closer and closer to this. What you even say. Youre actually your cfo talked about the return of capital. And your cfo is basically saying there is going to be a big sum. Have you thought about how to do it best . Because this is the most important thing for a lot of people who want this stock to go up right now. Yeah. And, of course, weve thought about it. Were not ready to announce that specifically. What we tried to do today in the Earnings Call was give an give specifics around. Because theres really two components to the return. Theres the excess capital that will be freed up by the bank sale. And also, the capital that weve accumulated over the last couple of seasons. Great. We think thats in the neighborhood of 1 billion worth of excess capital. On top of that, our board has agreed we will incur incremental net debt so the two in combination should have a very nice return of capital. That was a surprise. Listening to the comments, mentioning our call discussed. We expect to have considerable amount of excess capital on our balance sheet. Typically companies are im not saying this is not promotional at all, but this is an extraordinary percentage of market cap that is cash. Yes. We have 2. 2 billion in cash right now. Part of that is because we have not been able to return capital to shareholders, except for dividends, which were about to issue our 207th consecutive quarter. So weve accumulated a lot of cash. And that is an important component for shareholders, and we have been shareholder friend lip since i took over. We bought back 12 of the stock, raised the dividend 33 . Last question close to home. I think this is important. President , administration, want you involved with the student loan partnership. One of the biggest drags on our country right now. This is over 1 trillion in student loan debt. We have taken on a program called dollars and cents, which is all about advancing Financial Literacy for teens. We are about to expand that. Next year, were going to have a gamebased challenge for kids. Were going to give out more than 3 million worth of scholarships to kids. Were going to make it a game. Thats the best with kids. Yes, it is. And to give us a significant amount of money per kid, theyll compete, and itll be to try to help in a small way to do this. But really, what will be the good thing for every kid who participates, they will learn a lot, theyll have their own budget, pay bills, et cetera. More to come on that. Biggest drag maybe for the next 20 years for the economy. Thats great youre doing that. Bill cobb, president and ceo of h r block. Youll understand why im so excited if you read this conference call. Dont move, lightning round is next. I make a lot of purchases for my business. And i get a lot in return with ink plus from chase. Like 50,000 bonus points when i spent 5,000 in the first 3 months after i opened my account. And i earn 5 times the rewards on internet, phone services and at Office Supply stores. With ink plus i can choose how to redeem my points. Travel, gift cards, even cash back. And my rewards points wont expire. So you can make owning a business even more rewarding. Ink from chase. So you can. It is time it is time for the lightning round on cramers mad money. Whats that about . Rapidfire calls. You say the name of the stock, i tell you whether to buy or sell. My staff prepares the graphics. Play until this sound and then the lightning round is over. Are you ready skedaddy . Its time for the lightning round on cramers mad money. Starting with jerry in new york. Jerry . Caller jerry in new york. Jim they were good and nothings happening to the stock. What do you think . I think youre fine. We did a lot of work on it, we like it. It should have moved up today candidly. A lot of hot money in the thing, but im sticking by sandridge. David in florida. David . Caller booyah, jim. Booyah, david. Caller ive recently sold about half my positions of bank of america and purchased bristolmyers and at t. Bristolmyers, everybodys upset it fell from 53 to 46. Me and stephanie, we think its fine. It did not have a great socalled asco, presentation for the American Society of oncologists, but heres what you need to know, dividend is safe, things in the pipe, im sticking by bristolmyers. Lets go to beth in california, please. Beth . Hey, jim, im a huge fan. Thank you. Tell me about safeway. Were done with that one. Finished with it. Caching caching. We like kroger i need to go to bill in new york. Bill . Hi, jim. Bill. Im calling from binghamton, the Southern Tier of new york. Oh, cool. I know where you live. Go ahead. Thanks for all your help, jim. Helping us understand this marketplace. Thank you. Whats your current opinion on a reasonable bank in the recent past . Huntington bank . Thats a terrific bank. Weve recommended that bank for so long and i stick by it. And lets be honest, i have to tell you, key bank is still my fave, but i like hband, too. I need to go right now to joe in my home state of new jersey. Joe . Hey, hello, cramer. Yeah, its joe here from nutley, new jersey. Home of our friend Martha Stewart thats right. Whats up . Caller yeah, i was at your book signing back in february. Wasnt that fun . Everybody showed up for that one. Words is owned by a guy i coached against when i was a peaceful, gentle coach. Caller okay. Heres my question, i bought orexigen therapeutics, i had a nice profit, i didnt sell. I came down 1 a share today. Its still on the upside for me joe, im not there with that one. Let it pop back to six, maybe take some profit and get out. Im not there on that one. Im not crazy about it. I do need to go right now to george in my old home state of pennsylvania. George . Hey, booyah, jimmy. Great work you and your staff do for us small guys. Staff is fabulous. Go ahead. Caller i own baxter international. Baxter should be higher i want you to buy baxter. Im surprised it hasnt reacted bigger to the split up. I recommended them doing exactly in get rich carefully what theyve done. I think that stocks too cheap. But i need to go to tom in north carolina. Tom . Caller booyah, jim. Booyah, tom. Caller found a Company Called greenbrier. I think trinity may be a little topee. And if thats the case, it may not be that good. There are problems in the red little rail cars are too high is what im saying. I think rail car prices could come down next year. And that, ladies and gentlemen, is the conclusion of the lightning round. The lightning round is sponsored by td ameritrade. [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All on thinkorswim from td ameritrade. All on thinkorswim predibut, manufacturings a prettin the United States do. Means advanced technology. We learned that Technology Allows us to be craft oriented. No ones losing their job. Theres no beer robot that has suddenly chased them out. The technology is actually creating new jobs. Siemens designed and built the right tools and resources to get the job done. This markets full of pitfalls, but im teaching you to avoid them. Its easy to get caught up in rumors surrounding the next big takeover candidate. Lets say youre so sure about xyz being the next hot stock, you probably want to throw everything you have at it. Sure bet to beat a buyout. Then things fall through and youre left in the house of pain. Thats why each week we play am i diversified. You call me or tweet me politely jimcramer. Tell me your Top Five Holdings and ill let you know if youre diversified. Why dont we get started with dave in california . Dave, youre first up. Booyah, jim, from west los angeles. I used to live there. Lived on norton. Oh, i know it. Thank you. Anyway, thanks for answering all of these questions, especially about being diversified. Of course. Heres my top five. Ge, vtr, s. A. N. , yn and lynco. Wow. Okay. We know this is a very interesting its got really good yield here. I really like this. We know we think weve got to get deb on, shes terrific. Thats a health care reit, okay. I told you when it was at five, six, it would be i think this stock is not done going higher. I still like santander. And weve got ge diversified with a good yield and actionalertsplus. Com names. What we have is a health care play, we have a bank, we have a forestry play, an oil and gas play, diversified industrial. Thats kind of exactly what i want. Why dont we go to joe in massachusetts, joe . Jim big booyah oh, i love this. Go ahead. What do you got . Caller my five stocks are blackstone, suncore, delta, verizon, and coke. Nice mixture of yield and growth you know i like that. Blackstone, long time recommendation, private equity firm selling off to hilton, looks good. Cocacola, i think the quarter was maybe a resumption of growth coming, im not sure, but looked okay. The beverage, delta, the airlines got hit, everyone runs to them immediately. I run through them like the airlines. Verizon, what a fabulous yield. Suncore, we have energy, we have telco, private equity, its called finance. Weve got beverage and weve got ae aero. How about gary in maryland. Gary . Caller booyah from maryland, jimbo. Im liking that entirely. Whats up . Caller hey, whats going on . Hey, got a roth i. R. A. I got everything on dividend reinvest. I got a kid on the way. Let me know if these are good to hold for the longterm or if i need to make some changes. Okay. Caller all right. General electric, johnson johnson, jpmorgan and newstar energy . Wow. Okay. Good yield here, again. But youll see no, im okay. Im okay. Johnson johnson, two actionsalertplus. Com, jpmorgan bank, i see the stock sneaking back up, looks good, nice update, the update is fine and in line. Diagio the liquor company, i think its great. Nustar, nustar energy, good yield, 7 , ge 3 industrial. Its oil, its industrial its bank and its drug. You know, wow, everybody really won the game today. I say hallelujah and stick with cramer. vo rush hour around here starts at 6 30 a. M. On the nose. But for me, it starts with the opening bell. And the rush i get, lasts way more than an hour. announcer at scottrade, we share your passion for trading. Thats why weve built powerful technology to alert you to your next opportunity. Because at scottrade, our passion is to power yours. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. At a special site for tv viewers; you need to see this. Show em the curve. Do you know what this means . The greater the curvature, the bigger the difference. [scifi tractor beam sound]. Sucked me right in. Its beautiful. Gotta admit one thing. Cant beat the view. Introducing the worlds first curved Ultra High Definition Television from samsung. Restoration hardware, the blowout quarter, dont miss an american greed exclusive. An interview from behind bars of the master mind of the financial fraud case. Fraud case. Its former ceo russell in this episode of secret lives of the super rich. Any millionaire can own a supercar these days. This guys built a powerboat modeled after his new lamborghini. You have to experience it. Oh, boy this is what happens when a trekkie becomes a multimillionaire. [ air whooshes ] that is cool. Going on a vacation thats lavish, even for the super rich. Weve had many, many, many, many milliondollar trips. [ animals roar ] [ cork pops ] its the ultimate access, with the ultimate insider. [ echoing ] money. Power. And the secret lives of the super rich