i'm jim cramer and welcome to my world. you need to get in the game. firms are going to go out of business and he is nuts! they're nuts! they know nothing. i always like to say there is a bull market somewhere. "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm trying to help you save a little money. my job is not just to entertain, but to teach and educate. so call me at 1-800-743-cnbc. all right. what do you get when you combine chatter about the hottest ipo in years, if not ever, with better than expected earnings from a housing play, no less, and then add a monster quarter from a left for dead tech company. sprinkle in some fantastic data from the people's republic of

china, signaling a soft landing along with lower interest rates and higher growth in europe? i'll tell you what you get. you get today's fabulous rally, with the dow surging 84 points, the s&p climbing 0.89% and the nasdaq soaring 1.22%. sometimes markets just have it all. and you know how you can tell when that's the case? when people expect nothing, nothing good to happen whatsoever, when they're one foot or even both feet out the door, like this market, which had the lowest amount of participation in years. in fact, the volume in january was the lowest since the summer slowdown in july. we have lost about a third of the volume in a decade. it's incredible to me. but that's when you really do tend to get things going. you see, it isn't just that we have great news. it's that we have phenomenal news and people least expect us

to have good news. those are the ingredients for a great market that gives you everything where -- i search to see who to quote. jeremy siegel, gabelli? byron wing? no. the immortal words of stock historian pit bull. you want to picture this market with a kodak or times square where the nasdaq is and take picture of me with a kodak. how fitting is that since the nasdaq is finally back to where it was a little more than ten years ago, perhaps signaling the end of one of the longest bear markets on record. how does e.e. cummings' bull get to rhyme kodak with kodak? we have to take a minute to describe right now how out of the blue shocking is so much what happened today. i got to tell you guys, this is a revelatory kind of day. first, we hear from case-shiller that your house is losing value by the nanosecond.

my house in summit, new jersey, dropped since "squawk on the street" this morning. so given the supposedly horrible state of housing, wouldn't whirlpool be the most ideal short in the world? other than a frat house trying to figure how many hazed freshmen can survive a spin cycle, why would you ever buy one if your house is like an hourglass with sand going from top to bottom while you live in it. but whirlpool's numbers have beaten estimates. the ultimate short becomes in one session the ultimate long. how insanely counterintuitive is that? second, all right, come on, facebook. facebook. what could be more exciting to investors than a company coming public that is loved by 800 million users who issued 2.7 billion likes and comments a day, 24 hours? you may not have been in the market for years. you may know nothing about stocks. you may be a teenager. but you know one thing. you or someone in your family have friends on facebook. mad friends, as our buddies at

south park put it. i think people want shares of it because they love it so much. this could be the deal that ignites retail interest in the market just when it's at the lowest ebb i can recall since maybe i bought my first stock 32 years ago. this is the single best and most exciting advertisement for the stock market, maybe ever. and unlike 1999, the last time the web was in hyperdrive, facebook is profitable, $1.8 billion profitable in 2011, up 65% year-over-year with user-generated content that costs nothing and advertisers like procter & gamble lapping it up. check their conference call. they praised facebook. this thing is so hot, so, so red hot that people are actually buying the stocks of the brokers who are underwriting the deal. brokers that a month ago seemed like portuguese, spanish and italian road kill. i don't blame them. i promise to keep you up on this deal every step of the way.

or take here, here is a couple of incidents i just like them because they're emblematic. take boeing, okay, boeing. up nicely while the pentagon surprises with a big cutback on an important program, navistar, rallying huge despite preannouncing a shortfall because of a deal it made with clean energy that i pretty much announced on the show a week ago. sure, everyone is focused on the blowup in amazon. i get that. the stock sells at 60 times earnings and unlike my head, amazon's earnings now have hair on them. but do you mind if i focus instead on what is making money in tech, how about what was before today a remarkable 5% yield? tech has gotten so despised here that even a company people have forgotten about, old described tech can make you fortunes. 21% up in a single day. and not being a takeover. that's like a takeover. meanwhile, for months i've been saying in order to give this market a real boost, we needed to see a soft, gentle landing in china, economy overheated, we got to get it down without a crash.

you know, the economy slows down just enough to allow the best capitalists in the world to be able to cut interest rates, restore worldwide growth, but not so much that the communists stop buying and building things. we have a purchasing managers number out of the people's republic last night that shows that the central bank is landing the airplane just excellent. don't forget, we can't rely on chinese employment data because everyone in china is either working or serving in the army. so what does a healthy china mean? it means you can buy the chinese derivative plays which just what happened. caterpillar jumping a buck 40. and the two chinese oddities, yum! brands and coach, both hitting 52-week highs. do they put their kfc in their coach bags? some sort of bizarre status symbol over there, showing a little leg, or at least a drumstick as they gallivant around the country? finally there is europe. talk about a raging bull market based on lower interest rates, higher growth. people are buying up german

stocks as though the country has a second marshall plan going up. the darn thing is up almost 14%, germany! it's another thing entirely to have it limping along on life support. but how about if business over there is turning? maybe caterpillar's prediction last week that europe will be a tailwind by the end of the year, maybe a true negative. you get this sucker cooking, and you're going to have something like that virtuous circle dreamed up by ben bernanke, fed chief, where your stocks go up so you're feeling better so you might go spruce up your house or take advantage of the really low rates to actually buy a new house. or while you're taking down a brand-new bayliner or a snowmobile, as we've been seeing how the rich are buying totally unnecessary and absurdly expensive play things, implicitly bragging about their 1% status, saying to the other 99%, let them eat cake! let them eat ring dings or ho hos for the really bottom percent. i always thought the twinkies

were overpriced versus tastykakes. lenny sings give me everything. that's just what this market gave us today, everything. with the remarkable facebook deal standing out as the most energizing ipo since google, or maybe since ever. herb in new jersey. herb? >> caller: mr. cramer, an anticipatory gratitude boo-yah because of the advice you're going to give me. >> i hope i can deliver on that promise. >> always do. i'm hearing very ominous rumblings about the u.s. dollar being displaced as the reserve currency of the world, and i'm concerned because of our staggering debt and apparently staggering politicians that i need some kind of hedge. i know how you feel about gold. i'm wondering if there is anything else you might suggest. >> i think gold is an alternative currency. 10% to 20% of your money should be in gold. i am not a dollar bear, because i see already the economy getting stronger, which means tax receipts are going to be higher.

when they get higher we have to borrow less money. some good things are happening. it's just i'm the only one talking about them. how about jimmy in virginia? >> caller: ba-ba-ba-boo-yah. >> stuttering boo-yah. how long since we've had one of those? i can't count the days. what's up? >> caller: both ford and chrysler report an increase in earnings. gm was down about 6% on the quarter. where did gm go wrong? >> you know, i marvel at these two companies. they're just not volkswagen, unbelievable sales, fiat, chrysler, unbelievable sales. these two stories, they're going to be second half sales. a lot of cars are being sold. the car companies aren't making much money. that's why i like magna. that's why i like steely dan, dana corp. atn, american axle, those could be the winners. steve in texas, steve? >> caller: jim, boo-yah, this is scott from texas, home of the one and only professional football team called the houston

texans. question. epd, one of my top five holdings reported some very good earnings today. confirmed with the ceo that investors get a 5% discount on units purchased for distributions. i'm nearing retirement. i haven't heard you say too much about it over the last few weeks. is there anything i need to know about epd? >> i stopped talking about it because i heard is he ever going to stop talking about epd, kmp, kmr, and etp? enterprise transfer partners. the answer is i haven't done my job. i haven't mentioned that stock in eight days and i should have. 52-week high, fabulous yield, you're in great shape. master limited partnerships. picture-perfect? almost. the market gave us everything today. including the incredibly exciting fb ipo. the odds are with us. use them wisely. "mad money" will be right back. coming up, add to cart?

after shares dip on a disappointing quarter, is now a prime opportunity to buy amazon at a discount? or should you stay out of the jungle? and later, easy rider? the rich are getting richer, and they love to show off. cramer says if you can't beat them, join 'em. and he is finding companies behind the toys for the wealthy. this american icon's ticker might be synonymous with green, but could it help you kick start your portfolio? plus, high-tech oil. could the technology that allows drillers to find the slick stuff help you extract mad money? don't miss cramer's earnings exclusive with the ceo of core laboratories ahead of their conference call, all coming up on "mad money." >> miss out on some "mad money"? get your "mad money" text alert today. text "mm" to 26221 to get cramer right on your phone. for more info, visit

madmoney.cnbc.com, or give us a call at 1-800-743-cnbc.

♪ in the jungle, the mighty jungle, the lion sleeps tonight ♪ >> what the heck are you supposed to do with amazon.com? is it a buy after the 15 points shellacking it took today? is it a sell after the disappointing quarter the company reported last night? i know you don't want to hear this, but i just don't know. >> don't buy, don't buy! >> when i finished the conference call, i was scratching my head big time. first i was told that amazon would actually blow out the revenues. no, it gave us very unexciting revenues, made me feel like the growth is slowing. second, the company made more money than i thought it would. but i want to see growth right here, accelerated revenue growth, arg! so amazon beating the earnings estimates but missing the revenue numbers like they did is the opposite of what i was looking for. i had no idea that video games were so darn important. yet that was the big call out for the weakness, video games. and of course europe. and a high growth stock i don't want to hear any flaws at all. but when i do get them, i want

those flaws to be explainable. i didn't get any explanation for either of these. fourth, big question. are ereaders the answer to the question or is amazon losing too much money on the kindle or the kindle fire? procter & gamble makes a little on the razor and a ton on the blade. that's how the model works. is amazon losing a ton of money on the reader and likely only to make back small amounts on the content? that's a real worry. to buy amazon is a leap of faith. you don't know what is going to half. you don't know whether the growth will re-accelerate when new ereaders are shipped and people start using them for all the content that amazon sells so well? but on the other hand, to sell it? if you believe in amazon over the past travails, you make money. to assume it here is different. to assume that jeff bezos has lost his way, that's been a terrible bet. bottom line, buying is a leap of faith. selling flies in the face of everything we know about this company's incredible track record. that's why i don't want to do

anything with amazon, yet do nothing. i've been telling people not to own it ahead of the quarter because the company would likely be spending so much they would lose money. and then i figured i could come out today and say buy it on weakness. that's not what happened. it's a lot harder to generate acceleration in sales than earnings. that's what amazon needs to do from here. the stock has now devolved into wait and see. that's right. it's a wait and see situation and nothing more. sometimes the best thing to do is nothing at all. jack in new york. jack? >> caller: hey, jim. how are you doing? >> all right there, partner. what's up? >> caller: i got a question. how can the potential impact of facebook on other companies similar to apple's influence in growth have an effect on facebook's valuation when it comes out? and how does it impact now? does it make now a good buying opportunity for facebook? >> a lot of people want to buy facebook analogs. they want to buy zynga because they see it has so much business with facebook. and some of the tools, data

centers. i don't want to play that game. i want to buy companies with good earnings and i want to hold on to them. that's what i do. i'm not going go and speculate on the ancillaries. amazon right now, it's too tough for this guy. bad quarter, but the future is still up in the air. i say listen, wait it out. after the break, i'll try to make you even more money. coming up, easy rider? the rich are getting richer, and they love to show off. cramer says if you can't beat 'em, join 'em. and he is finding companies behind the toys for the wealthy. this american icon's ticker might be synonymous with greed. but could it help you kick start your portfolio?

♪ bad to the bone, bad to the bone ♪ forget about what we need. this market is about what people want. and not just any wants. i'm talking about the things most of us want but can't have, like the rolling stones said in their seminal stock song, you can't always get what you want. because let's face it. not that many consumers are comfortable throwing around tens of thousands of dollars to buy big ticket items that they don't really need. but for a variety of reasons, as the economy improves, we're seeing a huge rebound in this kind of ultra discretionary

spending all across the country, particularly in the middle sections where they don't have the drag of those white collar lower financial firm bonuses. yeah, i got to tell you. the have-nots may still be in trouble. but the haves have finally gotten comfortable enough to start opening their wallets again. and that's why all week we're highlighting showoff stocks, stocks, because, well while you may not be able to buy a boat from brunswick, like we talked about on monday, or a snowmobile from polaris, like i mentioned yesterday, you can absolutely profit from the strength in these stocks as the rich decide to blow their money on this stuff left and right. and tonight i got another fantastic discretionary name, harley-davidson. the aptly tickered hog for all you home gamers, a classic american brand synonymous with motorcycles.

it will set you back 8 to 37 grand. the average transaction price last year was about $15,000. yet these bikes are flying off the shelves, at least metaphorically speaking, because evel knievel aside, motorcycles and flying normally don't mix well together. harley just reported a phenomenal quarter last week with the global retail sales surging to the fastest pace since 2005. this business is back. demand is rebounding. some would say it's booming. and the harley-davidson of today is a much better company than the harley of five or six years ago when wiseguys were always shorting the darn thing. so we shouldn't be surprised that it managed to deliver a terrific earnings beat off a 22 cent basis, with a larger than expected 11.9% increase in revenues. not only that, but harley's retail sales are accelerating, 11.8% in the united states. a major acceleration from the 5.4% increase in the previous quarter. no wonder the stock is only a few points away from the 52-week

high. but this story is about more than just a great quarter. it's about a company that knows how to harness the power of an iconic brand that is beloved the world over. harley-davidson has been making motorcycles for 108 years. 45% of the hogs on the road in this country are harleys. and their market share is actually increasing from there. in fact, during the great recession, the dealers networks of competitors were hit so hard that the company managed to pick up share, grabbed it, getting an additional 10% of the market because their brand was better known and their business more resilient. to illustrate what i'm talking about here, let me read you this tremendous tidbit from harley-davidson's chief financial officer john olin, the guy in the green eye shades who does the numbers. and i quote, it's much more than a motorcycle. it's about a lifestyle. it's about the feeling that you get when you are on a motorcycle or associated with harley.

and it's about freedom, independence, irreverence. and most of all about rebellion. even harley's 50-year-old cfo talks this way like he is riding in a motorcycle gang with the hells angels. loyalty here is amazing. my best friend haley has two harleys and he's got this dog. he named that harley too. even i know harley is cool, and i'm a 66-year-old guy who never would ride a motorcycle for fear of breaking a hip. i say strap your hands across my engines because, baby, this stock is born to run. hey, speaking of old guys, the last five years or so investors have been concerned about harley's aging demographics. 66% of the company's demographics are caucasian males over 35. right now harley is the ultimate mid-life crisis play. there is some fear it might lose its dominance after the generation of old white dudes becomes too old the ride. harley has done a terrific job

of addressing this very issue, increasing its market share with young adults, women, hispanic customers, african-americans, to the point where the company is now number one among all of these demographics. in fact, i bet mitt romney could really benefit from hiring these guys as consultants for youth and minority outreach. it couldn't possibly hurt. he is born to run, but only for president. that's just one small component of a much larger effort that made the harley of today a much better business than it was before the great recession. starting in 2009 the company began a major restructuring effort, and boy, oh, boy have they been executing. harley dramatically cut the costs of manufacturing by renegotiating labor agreements, outsourcing non-core production processes, take them overseas. harley has also made itself leaner, shutting down or shutting off extraneous brands like the augusta. and as a result, once the restructuring is completed this year, harley should see up to $325 million in annual savings. harley-davidson is a leaner, meaner, more profitable motorcycle making machine.

plus the company is doing a significant job of managing the inventory. they're going in to 2012 with relatively low inventories. now the only real constraint on how many bikes harley can sell is how many they can make. meanwhile, they have expanded the number of products they offered to 34 models, up from 24 in 2000. don't forget the dealers also have a phenomenal resale market as older harleys do keep their value. used harley buyers now can get their own financing. that became a problem during the recession as a lot of bikers sold their hogs. speaking of dealerships, we owe a big thank you to costco harley-davidson in new jersey for hooking it up. you thought it was my stuff. i understand that. plus, and this is really cool. harley has taken a page from domino's pizza, another one of our favorites and introduced a incredible level of customization. just as you can go on to domino's website to design and order a pie, you can now go to

the harley-davidson, to the website, and configure a bike to your liking. they let you change seven main elements including seats, handlebars, tanks and foot pegs. that's right. you too can ride a modified harley a la peter fonda in "easy rider." the company can deliver in as little as four weeks. this guy who made this bat for me, his chief business, customizing harleys. not only has the core business improved, the financial services division once questioned by short sellers accounts for 15% to 20% of its operating income. it's now in much better shape, poised to return a profit. 92% of loans low risk. meanwhile, the company is expanding aggressively overseas. international makes up about 30% of the business. seeing strength everywhere, even in europe. especially in latin america, where sales increased 42.2% in the latest quarter. thanks to the surge in demand from people looking to do a little conspicuous consumption on wheels, harley's sales are

once again nearing the peak level they achieved in 2006, 16% below that point. but as i've explained, this is a much better company now than it was back then. yet in 2006 the stock traded at nearly 75 bucks, more than 30 points, 68% higher than where it is right now. 68 and change, wow. 44. the stock is at $44 and change right now. so even though harley has run up about 14% since the beginning of the new year, i still think it's cheap, selling for 13.5% next year's earnings. 14.5 times long-term growth rate. wow. here is the bottom line. ultra discretionary spending is back. and that's why i think harley-davidson is primed to kick start your portfolio with its dominant market share, successful restructuring and surging sales. as always, the boss is right. you need to have something that is born in the usa and that indeed is born to run. at least 60 bucks before it gets too expensive. let's go to ralph in florida. ralph? >> caller: boo-yah, jim.

regards from spring hall, the retirement capital of the northeast. >> i didn't know that. see? i'm learning something every day on this show. this show is just a brain trust. what's up? >> caller: there you go. my stock of concern, jim, is starwood hotels. about a year ago, you recommended it. i did my homework. it looked good. i purchased it. after that, it started to go downhill. and every time it dropped two to three points, i bought more, i bought more. and now suddenly it reversed. i'm almost even on it. >> all right. >> caller: and what would you do? >> ralph, my charitable trust owns it. we've had the ceo on the show. china is booming. europe has held up very well. you stay long with the stock. i think it drops to $51. you pull the trigger and buy more. i would like to go to shirley in north carolina now. shirley? >> caller: good afternoon, jim cramer. this is shirley calling. i need help with tiffany's. i purchased tiffany's in 2010 in january.

and wondered if it is time to sell or to hold. >> i'm worried about tiffany. i think the market is headed a little bit higher here. maybe get a higher price. the chart is not that good. earnings weren't that good. i think two or three points from here you got to let it go. it just didn't deliver. it failed to deliver. too much money tied up with bonuses on wall street that are going away. i want to go to steve in idaho. steve? >> caller: hey, jim, a north idaho boo-yah to ya. >> of course. >> caller: my question is about movado. i've been doing a little research on them. and the last couple of quarters, they had beats on their earnings and their inventories have been decreasing. but i was wondering if they're a buy or if there is something in the financials. >> i don't know, chief. i got to tell you movado has left me cold. as far as i'm concerned, i would not purchase. we have better discretionary spending plays. the rich are going whole hog. the rich are spending like crazy.

i say harley-davidson is the leader of the pack. stay with cramer. ♪ coming up, want to talk to cramer? call 1-800-743-cnbc to find out how you can speak with the wizard of wall street on the "lightning round." and later, how do your stocks stack up in a mystifying market? cramer makes sure your portfolio makes the grade on "am i diversified?" all coming up on "mad money."

it is time. it is time for the "lightning round." you say the name of the stock -- >> buy, buy, buy! >> sell, sell, sell! >> you hear this sound -- [ buzzer ] -- and then the "lightning round," it's over. are you ready, skee-daddy! it's time for the "lightning round." gary in california, gary? >> caller: hi, jim. this is gary. i want to wish you a baseball season starts in two weeks and hoping for a giants/phillies championship. >> you can always hope. a lot of hope. >> caller: hey, jim.

i want to thank you for all your time and energy teaching us guys how to be better investors. >> thank you. >> caller: with all the signs pointing to an economic recovery in the u.s., what are your thoughts about united rentals? >> that was an unbelievable conference call. >> buy, buy, buy! >> i think both caterpillar and uri are good, i wish uri will pull back. if you do, you have to buy. connie in new york? >> caller: a giant boo-yah, cramer, from connie in long island. >> good to have you on the show. the giants, they're like in my conference. but that's all right. what's up? >> caller: rim. should i trade? >> if it goes down to $18 or $19, i want you to sell it. apple is so much better. it's so much better. let's go to nate in illinois. nate? >> caller: big boo-yah from bloomington, illinois. stock ticker lsi, what do you got, jim? >> good quarter. i like the semiconductors. >> buy, buy, buy! >> amex had a pretty good number after the close. let's go to dori in michigan. dori? >> caller: hey, jim.

boo-yah from the up. >> upper peninsula. go ahead. >> i would like your thoughts on aerovironment. >> we like that. i think the stock has come down a lot. it's a good opportunity. joseph in new jersey. >> caller: boo-yah, zen master. i've been riding the wave of alliance bernstein for a while now, and it closed down on me. >> right. >> i've lost 50% of my stake. >> sorry to hear that. >> caller: yeah. i'm thinking i want to move it over in the blackstone group. >> no, no, no. if you're going to do that, go to kkr financial holdings which i have much more conviction on. you want that kind of company. and that, ladies and gentlemen, the conclusion of the "lightning round"! [ buzzer ] >> the "lightning round" is sponsored by td ameritrade. let's go to kentucky. >> a hillbilly ba-ba-ba-boo-yah. >> a hillbilly boo-yah, holy cow! >> here is a big las vegas ching

ching ching ching bing bing bing boo-yah. >> a staten island hey now forget about it boo-yah. >> boston. >> nashville. >> michigan. >> georgia. >> alaska. >> boo-yahs come from all across america. let cramer help you channel yours. "mad money" with jim cramer, weeknights. take the privileged investing tools of wall street and make them simple, intuitive, and available to all. distill all that data. make information instinctual, visual. introducing trade architect, td ameritrade's empowering web-based trading platform. take control of your portfolio today. trade commission-free for 60 days, and we'll throw in up $600 when you open an account. line dating services can get for 60 days, kind of expensive. so to save-money, i found a new way to get my profile out there. check me out. everybody says i've got a friendly disposition

and they love my spinach dip. 5 foot ten. still doing a little exploring... on it. my sign is sagittarius, i'm into spanish cheese, my hairline is receding but i'm getting a weave. (falsetto chorus) getting a weave. who wants some ronald tonight!? geico. fifteen minutes could save you fifteen percent or more. 

after the incredible run we just had in january, best in 15 years, followed by today's terrific rally, sure, you've been rewarded for sticking with this market. now so many stocks have had big moves up, where the heck are you supposed to find some genuine bargains? here is an idea. what if you had a high quality company in an industry that is booming yet every time that company reports the stock sells off. then it reverses and sells like crazy if not clockwork. what if you discovered this plays out over and over again? that sounds like the definition of a bargain to me. talking about core labs, a stock widely regarded as the scientist of the oil service industry. core uses its technology and its expertise to help oil and gas

companies figure out to where to drill, as well as helping them get more out of their wells. while the domestic natural gas product slows, we've heard that the international side of things is beginning to ramp and should be the next big wave. however, what is just as important is core labs sells off like clockwork after giving you these terrific reports. that's the great chance to buy before it inevitably rebounds. five out of six of the last quarters it's done this. plus, the stock has given us a fabulous gain of 86% with reinvested dividends since i first got behind it two years ago because i love the metrical and return on investment these guys give you. and last month a dividend boost to 105% of the levels. a solid quarter. beat earnings estimates by a penny when you factor out gains from a lower than expected tax rate. with inline revenues that rose 17% year-over-year. i would say it's a bit lighter than what the analysts are looking for, but right in line for the year. let's check with dave demshur to find out more about the quarter and what comes next.

mr. demshur, welcome back to "mad money." >> hey, jim. thanks for having us back on "mad money." >> of course. i read through the excellent release. it is very clear that you have really, really had an explosion of business internationally. it seems like that is the call throughout. i know from schlumberger international is where the oil boom is. you're following that boom right along with it, right? >> that's correct, jim. as you know, about 70% of our revenue is related to crude oil-related projects and is generated outside the united states. so the company is very oily and is very concentrated in international oil plays. when we look at the deep water plays, especially the presalt plays off of brazil, and now especially some of the recent wells drilled off of angola in the presalt, this is very exciting. some of the other areas we're look at in the eastern mediterranean where noble energy has had some very, very significant discoveries, the middle east including iraq, and then offshore australia, where some successes have occurred as well.

>> now, do we have to worry about some of these e&p producers, some of them cutting back their drilling because they're so heavily involved with natural gas? is that something we have to worry about with core labs? >> well, if you look at it, only 20% of our revenue is derived from natural gas projects. most of those actually outside the united states. if you look at our concentration in north america, it's really three plays. the oil shales which you have talked about continuously are key to core lab. also the deep water gulf of mexico, which we think will return to pre-moratorium activity levels later this year. and the oil sands up in canada. those three plays in north america are critical for core laboratories. and of course outside of north america, it's oil, oil, and more oil. >> well, got to tell you, schlumberger came out and said they think we're going to be past macondo levels. we're going to above that. you're absolutely right. the gulf of mexico is terrific. the other plays are very strong. production enhancement. we're hearing company after

company come on and say listen we know there is more oil in the ground. we can get it out of the ground, but they need technology. that's your technology. >> that is correct, jim. we've come out last quarter with htd blast, which is a great technology for extending lateral wells so you can produce more every day, and moreover, more importantly, more over the life of the well bore. in these oil shales we are producing somewhere on the order of 9%, 10%, or 11% of the oil in place. if we can boost that to 14% or 15% of the oil in place, it would really make a big difference in the returns that oil companies see. moreover, the amount of oil and gas that they'll be producing not only today, but tomorrow. >> you pointed out a field that i have not done enough work on, i've been criticized for not doing it. the field that is off the coast of israel, the noble deal. now what would they hire you to do? just walk through so that our people who own the stock or are

thinking about buying it, what does noble hire you for? >> well, if you look at it, jim, these wells cost on the order of $100 million plus. so when they drill down into the reservoir, they core extensively. one of the first things they're going to look at is what are the total reserves in all of those reservoirs in leviathan and timor. the first thing is how much natural gas is there. we'll give them a quantitative read on that. moreover, and more importantly, we'll give them a production enhancement technologies to ensure that they recover the most gas out of those fields as possible. and we continue to work there from the beginning. that will be a decadal project for core laboratories and our technologies. >> they're a great customer too. one last thing. you is a been so disciplined with your capital, but you raised the dividend. you just boosted it again. it's just been amazing. this must be because i know you use metrics. i know you're the number one

performing company in the bloomberg oil survey of the service companies. you're not doing that dividend boost -- you're doing that after doing a lot of metric work that says you can do it, right? that's not idle. >> absolutely correct, jim. we look at our free cash flow. that's one of the important tenets with core laboratories, along with return on invested capital, it's maximizing free cash flow. we do our projections in looking forward to 2012. we think that we will increase that free cash flow by more than 12%. so we felt very comfortable in raising our dividend by 12%. that free cash flow that is not utilized in the dividend we will also return that to our shareholders in the form of share repurchases, which we were very active in 2011 where we opportunistically were able to reduce our share count by over three million shares. we think that was a very

opportunistic way to boost our shareholder value. and if you look at shareholders within core, the top 50% of our stock is owned by ten long-term shareholders in and around $57 a share. our top 20 shareholders owns two-thirds of the company in and around $62 a share. some of this ownership can be traced back to 1998. so long-term shareholder appreciation is what core laboratories is all about. >> i like it because you're not a cyclical business. you're a growth business. i got to tell you, if oil were at $80, i would be sure you made your number. you are secular growth tech story where everyone else is very cyclical. dave demshur, thank you so much for coming on the show and delivering a terrific quarter for shareholders. >> hey, jim. thanks for having us back on and thanks for having us on "mad money." >> that's dave demshur. you know about the return on invested capital. you know about how they're overseas. and most importantly, they're

not involved with the worries, the natural gas worries that so many are. this is the one to buy. let it come in if it comes in and then pull the trigger. >> buy, buy, buy! >> stay with core labs. stay with cramer.

the market may have given us

what we were looking for today, but who is to say it will last? who knows what will happen in china or europe in a few months? that is why i come out here stressing the importance of a diversified portfolio, even on the best of days. a portfolio to hold your head high in good times and above water in bad. this is where you call me and tell me your top five holdings. i tell you if your portfolio is diversified enough, maybe you need to mix it up a little. richard in illinois, you're our first caller. what do you have for me? >> caller: i want to know if i'm diversified. hcn, kfp, mrk, nwl, and i'm considering fcx. >> let me go to work. [ buzzer ] >> kraft foods, breaking up is easy to do. we'll thrilled with that yield. merck we think it's a terrific company, a great yield. it's got a really good 2012 pipe. health care reit, just a fantastic and overlooked name with a great yield. newell rubbermaid, an incredible learn.

we have a mineral, households good, a drug play and a food play that is perfect with a very nice yield, i might add. let's go to aaron in missouri, please. aaron? >> caller: professor cramer, boo-yah to you. >> boo-yah back. >> caller: i'm calling to see if my children's custodial accounts are diversified enough, ages 2 and 5. their five holdings are bank of america, mcdonald's, home depot, nike, and john deere. jim cramer, are these portfolios diversified? >> look at this. mcdonald's, it's one of my favorite. i think the comp store numbers are going to be terrific. if they have one bad month, it's a great opportunity. deere named best in farm. home depot, terrific retailer who lives on the 52-week high list. nike another stock that is on fire. apparel, they are in charge. bank of america, a decent spec on a big turn in the whole country. a bank, a fast food, a farm equipment, a retailer, and an apparel play, you bet. and nice growth. >> hallelujah! >> very good for that age group because you have a long time and

they're going to do great and know the stocks too which is important. let's go to david in my home state of pennsylvania. david? >> caller: hey, cramer! >> yeah. >> caller: boo-yah from montgomery county, pennsylvania. >> look, i'm from that county. what's going on? >> caller: i want to say thanks for the education and the laughs. because i never bought a stock before catching your show. >> all right. >> caller: so all the stocks i have are cramerica stocks. >> well, i like that, because this is a big country. go ahead. >> caller: here we go. exc, vz, dd, kmp, and ibm. >> is this a great country or what? here we go. exelon, that stock yields too much, meaning i think it's too cheap. kinder morgan and dupont, alan coleman doing a great job. ibm, same address. verizon, nice yield. a nice yield.

telco. really terrific i'm going to call it a consulting company. a great master limited partnership, a good utility, and a great industrial with really good yield. wow. i tell you that is the kind of portfolio that is going to stand the test. that is a fabulous portfolio. >> hallelujah! >> fabulous. i'm glad he is from pennsylvania because i know they got horse sense there. let's go to barbara in oregon. barbara? >> caller: hi, jim. boo-yah. anyway, what i wanted to say is thank you very much for your insight and guidance. i'd be out of the game without you. >> all right. >> caller: you have saved my portfolio. >> thank you. and i need to keep you. when you get to the promised land moments, you got to be in to wind. what's going on? >> caller: okay. the stocks that i have are ed, gold, gld, kmp, mcd and waste management, wm. >> man, look at that combination of yield and growth? i salivate over that. here we go.

con ed, a big run but still has good yield. kinder morgan, everybody's fave, and why not? gold, i like the gld more than any individual stocks. mcdonald's, we're again looking for the numbers to be terrific. david stodder gives you terrific yield. waste management, paying for the big turn-up, which is starting to happen. fast food, waste, utility, master limited partnership and gold, which i think everybody should have some. i would congratulate all of our players. >> hallelujah! >> i know some people at jim twitter are mad because they say they're gaming the show. hey, it's about making and saving money. i don't care if they're gaming. stick with cramer. >> don't miss a second of cramer. now you can find each episode of "mad money" on itunes and download it for free. take all of cramer's picks, pans -- >> sell, sell, sell! >> plus the "lightning round" with you on the go. get "mad money" on itunes today. for more info go to madmoney.cnbc.com.

all right. i pledge to you that i will keep you up on facebook every step of the way. i know how important this is to you. i will not let you down. particularly those who are watching with their kids, doing the friending. i know this story and i will deliver it to you.