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's 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 just trying to save you a little money. my job is to entertain you, to educate you. teach and coach. so call me at 1-800-743-cnbc.

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. the conference calls are the centerpiece of my research process. 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 terrific perspective on the mood of the research which tends to mirror the mood of the customers who read it, the institutions. my conclusion? i have never seen the research more negative, more skeptical, more cynical, more nihilistic 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 to damn with the faintest 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 am talking about. whole foods was amazing. it was a genuine, gigantic beat. acceleration of a fast-growing company. 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 a man. 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 small town 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 knuckleheads.

this stock is at 77 and it's going to 100 because people are going pay up for it the way they would have done in the '80s and '90s. and you better get on board because it's going without you. 5.25%, it ran with most of the analysts not on board. how about apple? 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 straight to 500 right now. did the analysts get behind it? did you hear anyone that said 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 to catch up with the market? 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, siri, 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? siri 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, i'm engaging, i don't know if i can say it on a family show. a little apple pillow talk. get her to check off 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 off one negative 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. i saw a terrific chart giving an honest depiction of what i'm talking about, showing the net number of upgrades and downgrades. there have been more upgrades than downgrades, i find that preposterous. they outnumber them by double digits. there have been six days where

they had net 20 downgrades or more. given the earnings, that's nuts. it's the definition of crazy. i know a lot about insanity, so does siri. in 32 years of research i have never seen a less positive, more gloomy group of analysts than this group 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 early innings. 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% decrease 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 before i can 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 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 really a fan of oracle here. i'm going to ask you to?-- >> sell, sell, sell! >> take it home. there are so many other better 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 booyah for you. >> i'm glad you clarified that with the tucson initiative. what's up? >> caller: hey, i'm looking at vodafone. it came in with really poor earnings today. i bought it on your 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 better shape 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. i kind of like it. let's go to robert in 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 still 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 might just have to pay a visit to your house. "mad money" will be right back. >> coming up, foundation for 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 kimco realty 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? the oracle of cramerica decides. 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. can you enjoy vegetables with sauce and still reach your weight loss goals?

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you've got to admit it's getting better. it's getting better all the slower and steady dividend names getting better. it's getting better all 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 fave rapper/stock guru biggie smalls. he discovered lil' kim and i want to help you discover kimco, the real estate investment trust or reit in north america. 113 million square feet of space in the united states alone. juicy exposure to canada and mexico that represents 15% of the business. i like the community shopping biz here. for some reason there's not enough supply. we've had hardly any 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 estimates of 72,000 new stores that are set to open over the next two years. that would be fabulous for a company like kimco. they have the yield of nearly 4.1%. most 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 93.3% and they continue to move in the right direction. they've had seven straight quarters of positive same store income growth and the company is starting to see an increase. let's check in with the president and ceo of kimco realty. mr. henry, welcome to "mad money. >> thank you, jim. >> have a seat. >> i've been somewhat critical of kimco and the reason why is because 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. you feel much more comfortable.

>> it's part of the 50-year history of being in the neighborhood shopping center business. >> i mentioned to "the street signs" that shopping centers, believe it or not, are not endangered by amazon. why with all 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 drugs, services, dry-cleaners, nail salons or discounted goods like marshall's, tj maxx, and those are less vulnerable to the internet. we've seen growth in health clubs and things like that that are totally immune to the internet. >> you do call out health spas, 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. economy is not that strong.

in your conference call you say no new malls 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 our sector. you have population growth. they need services. they need restaurants and they need health clubs and so forth. we'll do fine despite amazon. >> there are some retailers that have fallen victim. 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 were 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 or sears store is paying. if it's $1 a foot it will be easy to re-lease it. in our case 75% of our kmarts are paying way below market rent so we should do 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 about half the retail per capita that the u.s. has and that's why our occupancy of the portfolio is 98% in canada and target announced opening 25 new target stores beginning in march of next year per quarter. it shows american retailers 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 under stored which is why walmart alone opens one store a day in mexico. >> one store a day? >> they have different formats, 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 cramerica decides.

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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 ] ♪ laces? really? slip-on's the way to go. more people do that, security would be like -- there's no charge for the bag. thanks. i know a quiet little place where we can get some work done. there's a three-prong plug. i have club passes. [ male announcer ] now there's a mileage card that offers

special perks on united, like a free checked bag, united club passes, and priority boarding. thanks. ♪ okay. what's your secret? ♪ [ male announcer ] the new united mileageplus explorer card. get it and you're in. ♪ i'm sexy and i know it ♪ i'm sexy and i know it ♪ ♪ you've got questions, 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 version of 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? you mention it 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? whither 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 #madtweets and the cnbc twicker. 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. it's because berkshire hathaway could be the perfect stock to own in 2012 and beyond, 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 complicated. 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 of 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 a single sector, and it's jack-of-all-trades and that's also why the stock is so under owned. 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 pastiche of stocks that are all or near their 52-week highs, but this one isn't. a little more than two years ago they brought burlington 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. the railroads are struggling because 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 trains from diesel to ultracheap natural gas as matt horwin recently pointed out in a piece. how about berkshire's carpeting business? that's like mohawk industries. and how about berkshire's paint business, benjamin moore? compare that to sherwin-williams.

berkshire owns a whole bunch of other businesses from manufactured housing and clayton homes and if housing booms in 2012, as i think it will, we have a fabulous housing play. berkshire specialty business, and remember when they bought lubrasol on 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 for auto insurance, 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, almost all of which 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 only rallied 2%. that's dramatically lagging the s&p 500 which is up 6%. the berkshire b shares are more than 8 points off their 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 common stock that trades at $119 grand. consider it the sum of its parts without factoring in warren buffett's business sense and investing acumen, this company is so much more than the sum of its parts. plus, buffett is able to lever 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 common stock. hey, look, that's what berkshire gets to do because they're winners and then there's berkshire's gigantic put position that no one talks about. buffett sold tons of put options when everybody was terrified. effectively betting that that index would go higher when everyone thought it would go lower and it's since turned out to be brilliant. for every 1% increase, berkshire makes $16 million 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 all of our viewers for these 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 enjoy 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? >> procter, you have to go to the conference call here, bill, because you'll hear the open rebellion from the analysts who are furious 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 either pringles or buy diamond foods. you know what? there have been so many rumors about diamond foods and how good it is. let's just say -- jeff in florida! >> caller: jeff from florida. >> good to have you on the show. >> caller: thank you and your staff for your help. >> they're terrific. they make me look good every day. >> caller: 3m had a shift in management and it looks like their growth is good. they just had a dividend increase. >> i couldn't agree more. as a matter of fact, there were some analysts, i would have

called them knucklehead or chowder 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 dividend-boosting 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 floor obscured by the twicker and the yellow thing that seems to always dog me on the show. stay with cramer. 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

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there's no going back.

it is time -- it is time for the lightning round on cramer's "mad money". >> play until you hear this sound and then the lightning round is ready. rich in florida, rich! >> caller: a big panhandle boo-yah. >> a best 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 yahoo 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 frontier. this is frontier the telco company which you know i don't like because they don't have the coverage for that dividend and i think you should be a seller of ftr. let's go to ed in new jersey. jim! >> a south jersey boo-yah to you. >> go rangers/flyers this weekend. what's up? >> absolutely. hey, jim, i love the show, but i've got to tell you, you keep

touting these restaurant chains like chipotle, mcdonald's and panera. you never talk about my favorite restaurant chain and my favorite investment, chuck e. cheese, cec 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 a stock here for a few weeks. >> yeah. yeah. everyone wants me to recommend a water stock. i got 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. windmills, 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 the dividend. remember with the one where the guy was stabbing people in the eyeballs? when he moved over -- anyway, that's on 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 calls, 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 i will take it to six, but i do think standard pacific is a good possibility to go over to 6-7 over the next six months. 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? 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 really 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. second connecticut call. 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 fantastic job. i like the way the business is shaping up. let's go to robert in georgia. >> caller: boo-yah from atlanta. >> a stuttering boo-yah. what's going on? >> caller: not too much. i want your opinion of of mhr, magnum hunter resources. >> natural gas, you know i think natural gas is in the doldrums. it's too speculative. let's go to melissa in north dakota. melissa? >> caller: hey, jim, big bakken boo-yah to you. >> oh, man, bakken 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 fabulous brooklyn autism fund-raiser and i heard people say when will you reiterate that you like continental and eog. 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 stamford, connecticut! >> stamford, 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 is an 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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to forget strategy. remember, the market may not always be a walk in the park and that's why we play am i diversified. i tell you if your portfolio is diversified enough or maybe you need to 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. it's conoco phillips, deere, eaton, gld and potash. let's take these. i think the gld can be up 10% to 20% of a portfolio and that's terrific. that's the one that mirrors the price of gold. deere, ag name. we put out, the 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 throw out 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 was the largest in the dow last year. 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 didn't seem to like it and they're gone. we have a telco company, a computer computer, and a food company and gold, that is absolutely perfecto. ♪ hallelujah? audrey rocks. let's go to gary in oregon. >> caller: hi, jim, my stocks are dlr, slrc, nly, at&t, and exelon, exc, particularly interested in your thoughts on annaly 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 they're making a mistake. i think it's a great utility and i like the yield, and i think it's safe. att, 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 fund. 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 he 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 annaly 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 in connecticut? >> 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? >> mr. 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, microsoft, and very undervalued, 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.

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the housing glut has gone nowhere. 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 big banks and 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 economic downturn and remains at the epicenter of the recovery. on the surface the settlement will provide aid from bank of america, 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 clean out inventory and speed up short sales to get past the logjam for underwater home sales. it will give the banks a big break on legal fees. these have hurt the bottom

line. 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 during this period like i have, but banks have demanded huge down payments even if you're obviously able to afford a property. banks have been unwilling to refinance at low rates unless you put down colossal amounts of money that most people don't have and they've been the big obstacle. i know this, i have tried and given up buying short sale property because of the banks' 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, if i'm having problems, everyone's

having problems and i can tell you that this settlement is a godsend 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 bank stocks? you know i've been a fan of wells fargo, i have to tell you the answer is yes, absolutely. even as the banks failed to react to the deal today. i think the banks will do more help for homeowners and they'll see a real dent in the inventory overhang and yes, the beginning of a sustained rise in prices. for once, i'm tell you 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 short sale 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.

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 t