>> thanks so much for watching. squawk on thestreet and "options action" followed by money in motion. don't go anywhere. mad money with jim cramer starts now.

and i wake up in the wee hours of the morning. i live it and breathe it along with the recent addition of the last decade. my routine's pretty simple. when the company reports i read the headline which is almost always misleading and then i grab the release and i point out the conference call plus all of the research notes home to

compare that. i'd like to think that i'm one of the greatest critics out there because frankly it's my recreation and my daily regimen that's why i can offer perspective on the mood of the research which tends to mirror the mood of the customers who read the institutions. my conclusion? i have never seen the research more negative, more skeptical, more neoliftic than it is right now. >> that's right. a couple of crashes. several bear markets. periods of remarkable economic contraction and total chaos -- >> the house of pain! >> spanning 32 years, i've never seen anything like it. the very people that were paid to believe in stocks, cynical there, but to recommend them tell you people that are supposed to tell you to buy them, they don't seem to care at all. it's almost like every single analyst has learned that the wisest thing is to not believe

and to not recommend and with the feintest of praise like an intellectual badge of honor not to pound the table. let me give you a couple of classic anecdotes so you can have hard data to tell you what i was excited about. whole foods was amazing. it was a genuine, jigigantic be. we had the co-ceo on and we like the stock very much. remarkable level of execution that i thought would have made the most jaded followers of this stock sit up and take notice. boy, was i wrong. almost to have the big order. the stock's already so expensive, you can't move higher. the valuation is super stretched and excellent new initiatives and customer excitement baked into the stock and the initiatives, who cares? if there was ever a situation where the tables should have been pounded it was this one, but almost no one cared. when i read the research i

wanted to scream and say you knucklehe knuckleheads. this stock sat 77 and it's going to 100 because people would pay up for it the way they would have done in the '80s and '90s and you better get onboard because it's going without you. 5.25%, it ran with most of the analysts not onboard. how about annel? disappointing with the stock at 480. we heard about apple iphone, the new one. the new apple ipad, the 3 might be on the horizon and a piece of research came out that talked about the increasing research in take. this morning on "squawk on the street" melissa asked me what i thought. it will go to 500 right now. dl analyst get behind it? did you hear anyone that get in now? no. beware of stocks. big deal, who cares? don't worry about it that's as bullish as i'm hearing. i want to grab them by the throat and say can you give me a

break? apple sells at ten times earnings and apple's a lot better than the average stock. don't you understand this stock is galloping to where it has to go. don't you see that happening? don't you understand that apple has to go higher? but no, they're worried. they're fretting. they're fearful. they talked about tablet guts. apple wiped all of the tablets and now competition from cell phone companies, samsung. i went to the one person, my one person, my go-to person who i knew would listen to me and i knew would take me seriously and i knew would agree with me, the fabulous woman in my apple iphone, and i asked her right on the set. i said, siri, how high -- how high do you think apple's going go? s irk ri knows how to please a guy. she said she'd defer to my judgment. sure enough the stock rallied 16 points to $493.

tonight when i tell her to wake me up, when i say siri come on. she doesn't like to play in this room. i tell her to wake me up at 3:45, and engage it, i don't know if i can say it on a family show. a little apple pillow talk. get her to check on my higher price target. i can go over all of the negativity i see and the 3m downgrade off of the new ceo. really. a cisco slam in a sea of positives. immediate response, no reaction to today's huge foreclosure deal. it's amazingly positive for the big banks, i can go on and on. giving an honest depiction of what i'm talking about showing the net number of net upgrades and downgrades. there have been more upgrades than downgrades, i find that preposterous. they outnumber them by double

digits. there have been besix days wher they had 20 downgrades or more. that's nuts. it's the definition of crazy. i know a lot about insanity, so does siri. i have never seen a less positive, more positive google of analysts than this krp right now. sure there are worries and yes, there are big issues. the analysts act like we're in the precipice of a major downtown. i search for meaning, and i realize they are, alas, honey badgers. they don't care. they don't -- well, let's say, give a darn, and they are a huge reason why this rally as long in the tooth as it is, as long in the tooth as they think it is could still be in the earlyinings. jonathan in florida. jonathan! >> caller: boo-yah, jim!

>> nice stuttering boo-yah. >> caller: as a young investor that i am. >> there you go. >> caller: i currently own panera bread. it had a 7% yesterday. >> i wasn't crazy about the conference call, to be honest. i didn't like the composition of the same-store increase. it didn't give me enough new traffic and they didn't speak about leveraging the sales much and i have to wait until the next quarter until i pound the table in panera. let's go to mary in ohio. >> caller: yes? >> how are you, mary. >> caller: not bad. how are you, jim? >> good. >> caller: based on what i was learning from you about evaluating stocks i bought some stock in oracle and i noticed today that they acquired another company. >> right. >> caller: i would like to know what do you think about the acquisition and will it send the stock higher? >> oracle is continuing to try to broaden its perspective. it's gotten into the cloud.

that's one of the reasons why salesforce.com was up today. i'm not a fan of oracle here. i'm going to ask you to -- >> sell, sell, sell! >> take it home. there are so many other tech stocks. i'm not a believer in oracle right here right now. let's go to jim in arizona, please. jim? >> caller: hi. this is jim from virginia beach with a bright, sunny, tucson gem show. >> i'm glad you clarified that with the tucson initiative. what's up? >> caller: hey, i'm looking at vodafone and it came in with really poor earnings today. i bought it on the recommendation about a year ago. it's been going up today. >> yes, it has. >> caller: but what about the fact -- what is the concern with europe on that thing? >> i have to tell you, i think europe will join caterpillar here and say that europe will be in bitter shape in a year from now than it is right now and i'll urge you to stay with vodafone even though everyone despises it. i kind of like it. let's go to robert from pennsylvania. >> caller: my name is robert from north hampton county,

pennsylvania. >> i used to live there. i was just a few miles from natural gas land. what's up? >> caller: based on wells fargo's recent agreement regarding mortgages and foreclosures, should i continue to invest in wells fargo, jim? >> i think wells fargo is a fantastically undervalued situation. i cannot believe the stock is at 30. i was telling someone literally that it would not shock me to see wells fargo at 50. are you like the noble beast? the honey badger? do you care? i've never seen such negativity. you're beginning to start to drive me crazy. you keep this up, i may just have to pay a visit to your house. "mad money" will be right back. >> coming up, foundation recovery? the stock market's been riding high so far this year, but can commercial real estate tell us if the recovery is for real? cramer's finding out when he talks to the ceo of jimcorealty

next. >> and later, at your request, all this week jim's checking his inbox, voice mail and twitter to answer your best questions on the air. tonight, could it be time to buy into the oracle of omaha's diverse portfolio? let jim decide. 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.

you've got to admit it's getting better. it's getting better all of the time. i want you to call sergeant pepper's band for the u.s. economy. it's easy to forget about the slower and steady dividend names to pave the way for the domestic improvement to kick into high gear that doesn't see it that i see coming.

the fact is this is the fantastic way to pay to wait exposure. i have cramer fife stock guru big e. smalls. he discovered lil' kim and i want to help you discover the real estate investment trust or reit in north america. 113 million square feet of space in the united states alone. it is exposure to canada and mexico that represents 13% of the business. i like the community shopping biz here. for some reason there's not enough supply. we've had new construction in this country and with the economy now accelerating, retailers are expanding their footprints and they need more space and thanks to the lack of construction, space is at a premium. i see 72,000 new stores that are set to open over the next two years. that would be fabulous for kimco. they have the yield of 4.1%. est mo of the reits i follow are yielding less because the stocks

appreciated. it makes me think we may not be waiting all that long. kimco's occupancy rate is at 98.3 and they continue to move in the right direction. they've had seven straight quarters of positive income growth and the company is starting to see an increase. let's check in wit the president and ceo of kimco. mr. henry, welcome to "mad money. >> thank you, jim. >> have a seat. >> i've been somewhat critical of kimco and the reason why is you weren't just shopping centers. you had other properties, and it sounds like the reasons that i was -- let's say critical, are going away. you're making changes. >> yes. we're down to 4.5% of the total assets in terms of non-shopping center properties. we started at 1.2 billion and it's less than $500 million. >> you're simpler, better, easier to understand company with assets. >> it's part of the 50-year

business of being in the neighborhood shopping center business. >> i mentioned to "the streets signs" that shopping centers, believe it or not, are not endangered by amazon. why with the internet shopping do people need to go to shopping centers. >> first of all, by specializing in neighborhood and community shopping centers you're talking about tenants that sell staples, for instance, groceries or drug, services, dry-cleaners, nail se salons or discounted goods like marshall's, tj maxx, and we've seen growth in health clubs and things like that that are totally immune. >> you do call out health spas, yogu yogurt, weight reduction, so there's a theme, you can't do those online. >> that's true. very true. it seemed unbelievable to me and it explains why the u.s. is not that strong. in your conference call you say

no new walls have been built in several years? >> malls are different -- >> i know he explained that to me many a time. >> exactly right. it shows that the supply of retail space has been very constrained and will be constrained for quite a while. there's virtually no new development in the sector. they need services. they need services and they need health clubs and so forth. we'll do fine despite amazon. >> there are some retailers that have fallen victims. you've had borders and a & ps. are you able to fill those? >> yes. other grocery stores take these spaces, other discounters, ross stores and others gobble up the spaces as they become free. the inventory of vacant box space is going down dramatically. >> one of the things that i've been trying to explain to people is when a tenant goes bankrupt and has to pull out, oftentimes they're at a lower lease rate than you can -- it's almost an

opportunity for you, right? >> exactly right. kimco's average rent is $11 a foot. we are signing many new leases above that $11 a foot. sometimes we have opportunities as we take back the space. >> is that one of the reasons why you're able to grow your earnings year over year and there's very good acceleration going. >> yes, sir. >> you mentioned in the conference call and i'm not breaking any news here, but it does seem that you do have exposure to sears and kmart. a lot of people are worried about kmart because they announced some closures. those are bigger spaces. a lot of people feel that that real estate isn't that good. is that a misperception? >> in some ways. it depends on the rent that the kmart and sears store is paying. if it's $1 a foot it will be easy to release it. in our case 75% of our kmarts are paying way below market rent so we should be okay if something happens to sears over time. sears is not going away with a $40 billion market cap they'll

be okay. >> canada has weakened lately and mexico which we know from the horrible press, are places you have exposure to. is this something you should pull back from and just go back to the united states? >> let's take canada first. the economy's strong, everything from natural resources to banking systems. it has half the retail per capita that the u.s. has and that's yet occupancy of the portfolio is 98% in canada and target announced 25 new target stores beginning in march of next year per quarter. it shows that they're going to canada. in mexico, despite the violence headlines there are only 1,000 shopping centers versus 100,000 in the united states and it has 106 million people. mexico is underscored which is why walmart alone opens one store a day in mexico. >> one store a day? >> they have different format, but one store a day. >> i should presume you get a fair share of those. >> it's a better story.

like i said, i've often said kimco is the lowest rated of the group, but my worries are being taken care of and the part that is good is clearly shining. so david henry, president and ceo of kimco realty, now one of the highest yielding real estate investment trusts out there only because the stock hasn't yet appreciated. stay with cramer. coming up, at your request, all this week jim's checking his inbox, voice mail and twitter to answer your best questions on the air. tonight, could it be time to buy into the oracle of omaha's diverse portfolio? the oracle of primerica decides.

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♪ i'm sexy and i know it ♪ i'm sexy and i know it ♪ ♪ you've got question, no doubt about that tape, and i've got answers. it's all-request week here on "mad money." where we're taking a page from the mtv handbook and looking at a stock portion like trl, they canceled that show more than three years ago. tonight's request comes from margie in texas who asked, jim, what are the advantages and

disadvantages of investing in berkshire hathaway b. it is always in a positive light, but i never hear about anybody actually investing in it. am i missing something? you have to wonder. isn't the man behind berkshire hathaway warren buffett exactly who he was crooning about? berkshire, it's a terrific question. one of hundreds i've received via e-mail at madmoney "cnbc.com and at twitter where you can reach me @jimcramer #tweets and the cnbc twitter. probably blacked out by that yellow thing. what is that yellow thing? let me tell you why i so appreciate this particular set of inquiries and it's because berkshire hathaway is the perfect stock to own in 2012 andy about yond, but nobody realizes it because the company is so hard to analyze. everybody and their mother will

praise berkshire ceo and the man who built this company 50 years ago to the diversified multinational powerhouse it is today, making investors a fortune in the process, but lately the adoration for buffett hasn't been translating much into a stock, frankly. isn't that a little ridiculous? the reason for it is pretty simple. berkshire hathaway is really, mri kated. it's an insurance company. it's a railroad. >> all aboard! >> it's a utility and it's a pipeline play and a chemical company, and it sells paint, insurance, it owns big portfolio stocks and bonds. there's a lot going here and that complexity is why the stock has so little sponsorship on wall street. see, most analysts are only experts on the single sector, and it's jack-of-all-trades and that's also yet stock is so underowned. it's too hard to get your head around. however, you should own berkshire, and i'll tell you

why. when you break this company down into component parts and look at how comparable companies are doing right now, berkshire is like a pack of stocks that are all or near their 52-week highs, but this one isn't. more than two years ago they brought berlington northern, santa fe to get into the railroad business and remember i recommended union pacific last week? it's within striking distance of its high. they transport so much coal and every other cargo is red hot and berkshire could save a fortune if it ever decided to switch its trines from diesel to ultracheap natural gas as matt horwin recently pointed out a piece. how about berkshire's carpeting business? that's like mohawk industries and how about berkshire's paint business, benjamin moore and compare that to sherwin-williams? berkshire owns a whole bunch of other businesses from

manufactured housing and clayton homes and housing moves in 2012, as i think it will, we have the housing play. berkshire e specialty business, and remember when they bought it with the bottom of the chemical's earning cycle? now the chemical stocks are on fire? it is less than a point off its high. they have a natural gas pipeline biz. energy is making a new high today. you like kinder morgan? and of course, berkshire hathaway is first and foremost an insurance company, they own geico and the medical malpractice insurance segment. together they make up a quarter of berkshire's earnings and we've been hearing spectacular things when it comes to higher premiums. just yesterday, prudential reported a really strong quarter, plus the big storms and catastrophes we've had worldwide, they allow insurers and reinsurers to raise premiums big time. the group is having a renaissance right now and

berkshire will definitely participate. let's put it all together, berkshire is a mosaic of different companies who are on fire or turning around a big way. all of these stocks have been huge since beginning of the year, yet berkshire itself has rallied 2%. that's dramatically lagging the s&p 500 which is up 6%. the berkshire b shares are more than 8 points off the 52-week high of 79 and change. those are the ones that you should be buying unless you have hundreds of thousands of dollars to throw around at the class a stock that trades at $119 grand. factoring in warren buffett's business sense and investing acum acumen, this company is so much more than the sum of its parts. plus, berkshire's fantastic balance sheet to effect enormous preferred returns when goldman was struggling and now bank of america which is really struggling which berkshire invested 5 billion in, unlike

when you buy bank of america's stock. hey, look, that's what berkshire gets to do because they're winners and then there's berkshire's position that no one talks about. 2z of put options when everybody was terrified. effectively betting that that index would go higher when everyone would go lower and it's since turned out to be brilliant. for every 1% increase, berkshire makes it from the puts. timing is everything and right now the timing is perfect for berkshire hathaway. warren buffett isn't just the oracle, he's the wizard, with the insurance renaissance berkshire hathaway is too good to ignore even as it is ignored by everyone. i think it is a screaming buy at these levels and i thank the viewers for great comments and great questions. please keep them coming. let's go to bill in kentucky, bill? >> caller: cramer, this is bill from kentucky! >> i had a feeling it was you. what's up? >> caller: i was watching your

show and i want your thoughts on procter & gamble's stock. it's been in the low to mid-60s for well over a year and should you buy, sell or hold? >> proctor, you have to go to the conference call here, bill, because you'll hear the open rebellion from the analysts who are serious and think the company may be undermanaged right now and having lost its way. remember, they're trying to offload the billion-plus pringles business. they were saying rawcorp would buy pringles or buy diamond foods. you know what? there have been so many rumors fod it is. let's just say -- jeff! >> caller: jeff from florida. >> good to have you on the show. >> caller: thank your staff for your show. >> they're terrific. they make me look good every day. >> caller: they had a shift in management and it looks like their growth is good. they just had a bit of data increase. >> i couldn't agree more. as a matter of fact, there were some analysts i would have called them knucklehead or

coward head in the lines of thomas jefferson who downgraded the stock and mr. buckley. mr. buckley has done a good job. the company has the great earnings power and the company could be in the middle of a major turn or a cyclical turn and don't forget, it is a dividend aristocrat having one of the best records in the new york stock exchange. i want to own 3m because they did have a really good quarter. the stock is sexy and we know it. you should know it. warren buffett's brkb is too good not to own and keep those requests coming, if only so i can do one-arm push-ups on the show obscured by the ticker and the yellow thing that seems to always dog me on the show. stay with cramer. want to talk to cramer? call 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 on cramer's "mad money". [ indiscernible ] >> play remembuntil you hear th sound and then the lightning round is ready. rich! >>. >> caller: a great big florida boo-yah. >> a great big barbecue boo-yah. what's up. >> caller: listen, my question tonight is concerning yahoo. after the recent little shake up, what's your outlook for that company? >> no. no. i mean, you know what? we've got literally everyone asking about that stock every

single day on twitter. give me a stock that's working. apple's going up 200 points while we wait for apple to go to 16.5. >> caller: hey, jim boy, this is bill from connecticut. >> i had a feeling. what's up, bill. >> caller: professor cramer, on the proposed settlement and class action hearing of ftr, frontier communications stock to be acquired by holly corporation, if approved what kind of a dividend can we expect from holly? >> i think that's a different fronti frontier. this is frontier the telco company which you know i don't like because they don't have the coverage of that dividend and i think you should be a searle of ftr. let's go to ed in new jersey. jim! >> a south jersey boo-yah to you. >> go rangers and flyers. what's up? >> absolutely. hey, jim, i love the show, but i've got to tell you, you keep touting the restaurant chains

like chipotle, mcdonald's and panera. you never talk about my favorite restaurant chain and my favorite investment, chuck e. cheese, ce kreshgs entertainment. what do you think? >> i don't talk about it because i don't know it well enough. i have to do homework. i just don't know chuck e. cheese well enough. i should be on the case. i think because my kids grew up. that is what i used to identify with. i will do the work. let's go to albert in arkansas. >> caller: boo-yah from razorback land. >> man, what's going on? >> caller: i've been looking at the stocks here a few weeks. >> yeah. yeah. everyone wants me to recommend a water stock. i have to tell you i recommend a water stock if they worked. i'll throw in investments and that's another one i want to touch. wind mel, forget about it. let's go to ian in california. >> caller: boo-yah, jim, from the set of criminal minds. >> yeah.

i'm a production manager. >> i love that show. some people think it's homicidal porn, i'm all over it. your show is dynamite, man. >> we appreciate your viewership. i have one for you. arr, armor residential. is this 18% dividend too good to be true? >> i'm going to say that i'd rather see you in nly which can sustain a dividend. remember with the one where the guy was stabbing people in the eyeballs? when he moved over -- anyway, that's from another network. anyway, let's go to richard in florida. richard? >> caller: jim! >> richard! >> caller: boo-yah to the one and only home gamer guru. >> thank you! i'll take it. >> caller: all right! hey, i want to know if it's time to revisit an old "mad money" pick, standard pacific. >> i have to tell you, in terms of the home building conference call, other than horton there wasn't anyone as good.

that spf was exactly what i first recommended and i thought it would have all of this mojo. it's finally happening. if i say the stock is good i'm afraid it will take it to six, but i do think standard pacific has a good possibility to go over to 6-7. that's how strong their california business is. i need to go to john in colorado. john! >> thanks for taking my call. what stock do you think will do well with the housing recovery and i'm looking at lowe's and home depot. >> i like lowe's a lot more than i used to. i think the restructuring is paying off and i'll get behind it here. >> buy, buy, buy! >> i like lowe's, right here right now. let's go to olga in connecticut. olga. >> caller: hi, jim! big boo-yah from connecticut! >> love it. fantastic. what's going on? >> caller: um, first of all, i want to quickly say if you could please say hi to joe. he's 90 years old and he's

watching your program since it started. and he couldn't call you, he's, you know, blind, and -- well, we want your opinion on herbalife. >> herbalife is going higher. michael jonsson is doing a good job. i like the way the business is shaping up. let's go to robert from georgia. >> caller: boo-yah from atlanta. >> a southern boo-yah. what's going on? >> caller: not too much. i want your opinion of what you think of mhr, magnum hunter resourc resources. >> natural gas, you know i think natural gas is in the doldrums. let's go to melissa in north dakota. melissa? >> caller: hey, jim, big boo-yah to you. >> oh, man, rocking rocks, and the factor following us recently. what's on your mind? >> caller: you haven't talked about clr in quite a while.

>> i was on twitter last night after the autism fund-raiser and i heard people say when will you reiterate that you will like continental and got. they tend to have swoons and when they have swoons -- >> buy, buy, buy! >> and the dollar down today is not a swoon. let's go to michael, oh, my god, in connecticut. the triple play! the hat trick! >> caller: boo-yah from stanford, connecticut! >> stanford, my sister says it is better than ever. the stores are great and it looks fabulous. >> caller: it is wonderful. my question is i own tmb, tmb since 1953, with the acquisition of tmb by abb for $72 cash, will this make abb a good stock to buy? >> no, you're done. it made us a lot of money and that san absolutely great company. you hold it, you won, declare victory and go get yourself, yes, indeed, a cashmere sweater. and that, ladies and gentlemen, is the conclusion of the lightning round!

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a huge rally since the beginning of the year, it's easy to forget strategy.

remember, the market may not always be a walk in the park and that's why we play kwm am i diversified. i tell you if your portfolio is diversified enough or mix it up a little. tonight we'll do something different and you've been sending in your requests all week and i want to get to as many as possible. the first diversified question comes from three rules. how about an am i diversified tweet? well, let's just read them. ñ and potash. let's take these. i think the gld can be up 10% to 20% of the portfolio and that's terrific. that's the one that mirrors the price of gold. deere, ag name. we put out a link, research director and i put out a piece that was very bullish about the farm equipment stocks. eaton, and conoco, high-yielding oil company.

we have an oil company, we have industrial and a gold stock -- uh-oh, two ag stocks. that's not what we want. so we'll keep here, and we'll keep potash and buy abbott, why? because the company is splitting in two and breaking up is easy to do. audrey in washington. audrey? >> caller: hi. boo-yah, mr. cramer. >> boo-yah, audrey. >> caller: i just want to say you are absolutely the best. you are so generous with all of your knowledge of all of us little guys, and i read two of your books, and i listen to you every day and i'm a retired widow, and i have my what i call my stock play money account and you've made me able to double my account. >> there you go. i say ♪ hallelujah >> let's go to work. >> caller: i have aapl, apple, dis, disney, gld, gold, mcd, mcdonald's and t for at&t. >> well, first, let me say i think we have a portfolio here

that is made up definitely with horse sense. we have gold, we know we want that. i put that in every portfolio and mcdonald's, the stock is still here, why? because the company is was the largest in the dow. apple, 500 about to be taken out, and at&t goes from 32 to 33, and you don't even have to think about it and disney, i love the quarter and the analysts don't seem to like it and they're gone. we have a telco company, a computer, and a food company and gold, that is absolutely perfectoperfect o ♪ hallelujah . audrey rocks. >> let's go to gary. >> caller: hi, jim program my stock are dlr, slrc, nly, and at&t, and exelon, exc, particularly interested in your thoughts on analy and exelon. >> these are very controversial names right now.

okay, first of all, exelon, i think is a fine utility and i think it's terrific. people don't like it, and i think you're making a mistake. i think it's a great utility and i like the yield, and i think it's great. >> a great utility, this time, telco, and a terrific yield. i want to own them both and a speculative resource company. here's the real problem. we have solar capital which we have had on air and this is a non-diversified management -- we've had them on and it's terrific. it's a financial company. they both have high yields and mike ferrell, a lot of people worry about his health and you put out a release saying things are going to be good, and i think the quarter was viewed as a miss. i'm not worried about the quarter, but i would take ana latin america y and throw back solar capital, and once again, i'll recommend abbott to be consistent and get a higher yielding health care company and then -- ♪ hallelujah >> jonathan? >> caller: first time caller

long time is listener. good to talk to you. i want to know if i'm diversified. i have berkshire b, cbu, microsoft, chevron and pfizer. am i diversified, jim? >> this is a big cap here, i've got to tell you. someone asked me yesterday about chevron, and i have not talked enough about chevron because i've been so fixated on conoco phillips and it's absolutely terrific. community bank is what i actually like here. chevron oil and gas, berkshire, i'm going to call it financial with other characteristics, conglomerate, and very big, 35, pfizer and not a lot of earnings momentum and a terrific yield and the drug company, diversified insurance and conglomerate, tech, oil and bank. hey, you know what? i'm blessing that one, too. >> well played by everybody, i know, people are starting to really get the game now, but if you do something for ten years, that's what happens.

stand by after the break. [ tom ] we invented the turbine business right here in schenectady. without the stuff that we make here, you wouldn't be able to walk in your house and flip on your lights. [ brad ] at ge we build turbines that power the world. they go into power plants which take some form of energy, harness it, and turn it into more efficient electricity. [ ron ] when i was a kid i wanted to work with my hands, that was my thing. i really enjoy building turbines. it's nice to know that what you're building is gonna do something for the world. when people think of ge, they typically don't think about beer. a lot of people may not realize that the power needed to keep their budweiser cold and even to make their beer comes from turbines made right here.

wait, so you guys make the beer? no, we make the power that makes the beer. so without you there'd be no bud? that's right. well, we like you. [ laughter ] ♪

the housing glut has gone nor. the federal and the state level and the banks have been at each other's throats that's why today's $26 billion settlement between the federal and state governments and five big think bah asks mortgage servicers over

the outrageous foreclosure procedures that they embrace during this period, i'm calling it a game changer. this deal is exactly what's needed to make progress on such an incredibly important issue, the one that precipitated the coming downturn and remains at the epicenter of the recovery. on the surface the settlement will provide aid from j.p. morgan and wells fargo and allied financial to states and beleaguered homeowners for principal forgiveness, forbearance and refinancing, but what will it actually do? it will put cold, hard settlement cash into the pockets of millions of homeowners and in many cases reduce their mortgage payments. it will accelerate foreclosures to speed up short sales to get past the logjam for underwater home sales. it will give them a big break for legal fees. these have hurt the bottom line's major impact for years now. sure, some people will get a break on this, versus those that have worked hard to meet every

payment. they will go unpunished, but if all housing goes up in value everyone's a winner. i don't know if you've tried to buy property like i have, but banks have demanded huge down payments even if you're obviously able to afford a property. banks are unwilling to refinance them, and unless you put the colossal amounts of money that most people don't have and they've been the big be obstacl. i know this, i have tried and given up buying short sale property because of the ridiculous intransigence. i have to pay a gigantic amount of money to refinance if you're going through dozens of banks to get approved. i know i might as well buy it with cash. that's how strapped and confused and just befuddled the banks are. i really don't like to play the 1% card on the show, but let's put this in perspective, everyone's having problems and i can tell you that this settlement is a god send for anyone that wanted to buy property because it may loosen

up the banks to do the right thing. is it a reason to buy the stocks? you know i've been a fan of wells fargo, i have to tell you the answer is yes, absolutely. even if the banks failed to react to the deal today. i think it will do more help for homeowners and they'll see a real dent in the overhang and yes, the beginning of a sustained rise. for once, i'm tell young to become less cynical. this one's big. this one's real. recognize it. we're now over the hump of the housing issue and be prepared to hear about much better housing numbers moving forward. me? i'm going to search for wholesale opportunities to buy after giving up in 2011. i'll bet there are real bargains out there and with these low interest rates, i want them. stay with cramer.

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united mileageplus explorer card. today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers. diamond foods, look, we're not trafficking rumors, but we still don't think you should be a buyer. linkedin, that stock is going higher and terrific numbers te