only hertz gives you a carfirmation. hey. this is challenger. i'll be waiting for you in stall 5. it confirms your reservation and the location your car is in, the moment you land. it's just another way you'll be traveling at the speed of hertz. >> 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's a bull market somewhere. >> "mad money." you can't afford to miss it. >> hey, i'm cramer. welcome to "mad money." welcome to cramerica. some people want to make friends. i just want to help you save some money. my job is not just to entertain, but to educate and teach. so call me at 800-743-cnbc. hey, we've got to give this market its due. when good things happen, when actors in the world stage try to solve many of the problems they're facing, problems that caused the dow to plummet two days ago, the market reacts the right way and goes almost back

up and the dow climbs 71 points. the nasdaq soared 1.18%. thank you again, apple. ten points a day keeps the bear away. let's just tick down the amazing point-counterpoint transformation that's unfolded in 48 hours since the sell-off. one by one, the fears have been checked and you can see how the averages bounced back. hey, listen. including yours truly, better own it. just when it looked like the whole bailout would break down and lead to the total disaster, the european union blowing up. the leaders of europe pull a rabbit out of a hat and reach an agreement and one that was high and the participation rate and it would fail on monday and the fewer than 60% were going to be involved and how the heck did this happen? turns out that behind the scenes arm twisting makes all the

difference in the world and the germans are in charge. they're not going to let this fail. once again, just like everything in europe, they waited right until the last minute as nothing seems to go right until it looks like everything will blow. they're beginning to remind me of every bond movie that has a ticking time bomb and bond defuses the explosives with 007 seconds remaining. emerging markets and they've been sagging. economies of china, india and brazil are all slowing and slowing quickly. brazil's central bank knowing that growth must accelerate just took the extraordinary step of cutting interest rates right after the previous cut, they get it. they're not going to be the reason why brazil goes into the recession. we know they lowered the growth rate. i am now expecting a similar large cut right around the corner from the chinese, maybe this weekend. third, genuine recovery going on here in america where i expect the unemployment rate will continue to get better. tomorrow's payroll number i think could be good, but the federal reserve isn't taking

chances because they read the papers. the feds worry, as i'm worried, that the higher price of energy can throw this economy back in recession, curtailing consumer spending and undoing the nascent housing recovery. just when the housing market started rolling over, the fed let it be known quietly in the afternoon, starting one more round of easing. i think ben bernanke is recognizing his mistakes. once again he seems to have taken this economy into his own hands and i think he'll make it so money remains easy to retain. the market roared back to life. we also have windfalls that were totally unexpected. last night we got a industrial production number from germany out of nowhere. perhaps a serious recession can be avoided in europe and now it's the slowdown. this was the first solid growth number and gives you the sense that the worst can be avoided.

finally on a big down day tuesday, president obama laid it on the line and made it very clear that iran would not be allowed to get a nuclear weapon. while we've learned not to test the iranians there is a sense that talks will accelerate. that's put a stop to oil's endless march higher for the last few days. oil is ridiculously high and gasoline is still going higher in most of the country and we can't rule out a preemptive air strike by the israelis, but as long as the larger powers are tacking, plus the israeli government has spent the last three years on iran's nuclear facility and it's the best way of pressuring the rest of the world into taking action so they don't have to. di we get back to even? come on, we have a lot of problems here and i think they'll hurt many stocks going forward and it's still very case by case. stocks you can invest in, but stocks you must trim asap. the rise in energy prices and mcdonald's. cramer fave mcdonald's issued a

cautionary comment that caused the stock to get hammered and the shockingly bad earnings report and more on that later. we know about the nasty preannouncment from merck, that was a shocker and cypress semi, were they outliers? no, after the close, both texas instruments and altera joined cypress, really disappointing. it would be hard to recover more than what we lost on tuesday and we won't get back to even especially if the employment numbers disappoint and we catch more negative earnings announcements and maybe they can say the market rallied today because they hope to get a good number tomorrow. it is amazing how when we get bad news the glaring thrusts are met with positive parities. it does not get to that set 3% to 7% that i was worried about. bottom line, these days governments are responsive to the needs of the stock market. it seems like policymakers worldwide are embracing the malcolm x mantra and will combat recessions by any means necessary.

something bernanke adopted beginning three years ago today. yeah, the birthday of this fabulous bull market that hasn't finished running its course and i'm still taking profits from my charitable trust. with bernanke leading the charge and domestic housing plays as ways to play the by any means necessary strategy. stick with a plan, stay cautious and keep some cash, take some outsized profits, but as always, stay the course. renato in pennsylvania. >> caller: jim, thank you so much for taking my call. >> my pleasure. >> caller: i want to send you a happy birthday belated boo-yah. >> i want to wish a happy belated birthday to the bull market. thank you very much. >> caller: you're welcome. my question is about johnson & johnson. the ceo is out, there is a new cancer drug coming out. is it a buy or sell? >> it's funny, that old ceo who was so revered by everybody and was incredible, that reverence should have been irreverence, and i think the stock won't go

down as hard as other stocks, how about that? because he's gone before i get involved in that one. joseph in florida. >> caller: cramer, boo-yah from tallahassee, florida. >> let's get some barbecue! what's up? >> caller: listen, jim, i wanted to get your opinion on exxon mobil, xom. i was reading how the ceo was doing that presentation at the nyse talking about a big expansion in the next five-year plan, and i wanted to get your opinion, buy, sell or hold long term, and i'll take your answer off the air. >> nobody ever got hurt out of exxon. they want to get growth going and want to be able to endorse and embrace the natural gas company. when they bought xtl, this was -- let's put it this way, exxon has got to start buying natural gas if they'll get earnings momentum in this country and right now they're not. we have plenty of problems.

we're staying cautious, but we have to admit that the skeptics, let's just say we learned another lesson, but don't forget to take profits because while we're almost back to where we were, we're not there yet. "mad money" will be right back. >> coming up, a fuel that's cleaner, cheaper and more abundant than oil, we may be exporting it soon. >> who stands to profit from sending nat gas abroad? cheniere energy. cramer is talking to the ceo next. and later, join the revolution. it's one of the most traded stocks in the street. is it time for you to get serious about satellite radio or will free music through smartphones and tablets lead to static? cramer's exclusive with the ceo of sirius xm radio is just ahead. plus, no place like home. while rents have soared, record low mortgage rates in rock bottom housing prices are looking more attractive to investors. cramer dishes on which stocks should be evicted from your

portfolio. 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.

>> we all know that here in the united states we have more natural gas than we know what to do with and the rest of the world is desperate to get its hands on the stuff. even though it sells at a ten year low, japan, same amount, $17. how come we don't ship all of our nat gas to japan, europe or china or anywhere else? here, why do we fetch a much higher price? simple, takes too much space. in order to export natural gas you have to chill it in liquid form and build export terminals, something we haven't done in ages because the price differential is a huge thing

caused by a huge boom in domestic shale drilling. cheniere energy, lng for you home gamers, owner of a nat gas import terminal in louisiana and they're spending billions to turn it into an export and import terminal that should be operational in 2015. they have another export facility planned in corpus christi, texas and could be up and running by 2017 if it gets approved by the federal energy regulatory commission. the stocks just moved, it's doubled since i first got behind it back in june at $8.17. bulls make money, bears make money and pigs get slaughtered so don't be too greedy. that said, if everything goes right, obviously it's more risky at these levels. the biggest concern is funding and it costs billions to build one of these terminals and that was partially addressed just last week when we learned that the subsidiary would receive a $2 million investment from blackstone. what a score. this has been a speculative story. let's check in with the

co-founder and ceo of cheniere energy. >> good to be with you again. >> thank you. it has been a worrisome time in the energy market because lots of people are worried that we're going to raise the price of natural gas if we let many people export it. where are you in the process that you could perhaps be still stopped by the federal government because people are worried that we shouldn't be exporting this important commodity? >> jim, what has happened in the natural gas business in the last three or four years is truly astonishing. we've gone in three years in being in a situation where we thought we needed to import gas to a place where we are now coming into march with 2.5 million cubic feet in storage, 60% full. we have a number of wells that are waiting to be hooked up $5,000, $6,000 on a nation basis

and we can accommodate a tremendous amount of increase today without much difficulty. the demand has simply not kept up with it. now with $2.20 prices, i am reasonably sure we'll find new demand initiatives or core substitutions or investment renewal. the truck fleet becoming natural gas base over several years, but it's a slow process. demand is not keeping up with the growth in supply. >> the federal energy commission says everyone will let you do it each though they look like they're pausing for everybody else? >> i think they will pause for everybody else, but i think they will let the others come through, too, because we need it. we don't know what to do with the gas. we drilled 45,000 wells last year. 15% more than the year before. in other words, we employed 15% more people than the year before

in the drilling business and we employed more people to build the rigs, to accommodate the communities and it's been an incredible boom for the economy and helped people in lots of places, northern pennsylvania, eastern colorado, all of north dakota, all of oklahoma, south texas. it is making a change in the way people live and have survived the last two or three years. it is too critical and too important and it's a phenomenal revolution, and i think it's just started. >> all right. you were able to get a lot of money in between the time you were last on and now. is the $2 billion that you just brought in plus the secondary that you did enough money to get you to where you need to be able to make it so that you're going

to be finished with the initial buildout? >> with the initial two trains, absolutely. >> you will. >> as you know, we want to continue very quickly to move to the second phase and build two more trains. those are all permitted and ready to go, and they're all sold. we want to expand to corpus christi and continue to do the same thing. there is an enormous need for the gas on a global basis and we have just too much of it. in corpus christi just 75 miles from us, last year there were 650 applications for flaring permits. in other words, we've got so much gas we're just burning it. >> incredible. bg group, gas and natural, coal gas, india, korea, you've got spanish, you've got the british. do you have even more customers than you've announced since the last time you were here?

i mean guys that could sign up? >> we have been forced not to sell to people starting in puerto rico, dominican republic, chile, singapore, japan, people that are friends of the united states that would benefit tremendously from this, and at the same time we continue the job creation that this phenomenon has started to a few years ago in the united states. it's a win-win situation. it's good for us. it's good for them, and it helps us help ourselves and helps our friends around the world. >> one last question, how many thousands of people will you have to put to work to be able to finish these projects? >> directly, we'll peak at about 3,000 people working on the site, but we will also help louisiana continue to develop their gas production and employ 40,000 to 50,000 more people indirectly. >> incredible. sharif souki, you just made a

lot of promises on the show and you delivered more than you promised and i thank you so much for coming on "mad money." >> thank you, jim. and thanks for being a supporter of this. >> well, look, you made me a believer. you did much more than i thought you'd ever do. thank you so much, sir. that's sharif souki, who stood there and made a series of promises that i really didn't believe and he has made good on so much more than that, and that's why i still believe in lng. i think it can go higher. stay with cramer. >> coming up, join the revolution. it's one of the most traded stocks in the street. is it time for you to get serious about satellite radio or will free music through smartphones and tablets lead to static? cramer's exclusive with the ceo of sirius xm satellite radio is just ahead.

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>> as sirius xm, the one and only satellite radio company in america finally got its groove back. it's up 35% in the last few months and now seems to have more catalysts than it can count. i was skeptical of sirius before approving the merger with xm. as a result the combined company did have a near-death experience in late 2008.

before only being saved from liberty media which purchased a 40% stake in the satellite radio company and more on that in a moment. auto sales are now on fire and it's a huge market for sirius. they also moved into the used auto market which is gigantic for them and in the most recent quarter the company added 540,000 new subscribers. the total count is 21.9 million. sirius xm has become so successful that liberty media could buy the whole company on the cheap, something that i problem. and i'm thrilled that mel karmazan, the ceo of sirius xm radio, and before that, successful in tv and he was celebrating the anniversary in an amazing fashion. what is sure to be a legendary bruce springsteen concert for sirius subscribers. there was a ticket going for $10,000 on ebay this afternoon. he's with us to give us a sense of where the company is headed, mr. karmazan, welcome to "mad money." good to see you.

my father got sick while he was in the hospital and they didn't have cnbc so we very quickly got him a sirius xm radio which had cnbc. you guys are doing a whole lot more than when you first started. >> oh, yeah. things have been great. i've been here now almost eight years and when i joined the company we had 600,000 subscribers and we had revenues of $67 million. so it's been an extraordinary run. >> i like to measure your company as a cash flow company because you taught me to do that when you were in radio. it must be losing a lot of money. can you explain to people how it's the cash flow that matters and how that is really ramped up since the merger? >> i believe and have for a long time that free cash flow is the only metric that creates wealth for investors. free cash flow is what enables you to buy back your stock and make acquisitions and pay down debt, and i believe free cash flow is an important metric. our free cash flow now is

growing extraordinary. before the merger, we had negative free cash flow of $500 million. negative free cash flow. this year we will have $700 million of free cash flow and we haven't given guidance for next year. analysts have us at $1 billion of free cash flow and continuing to grow. >> they are in tune. they are off the mark? >> who am i to say what analysts say but we have not acknowledged what will happen. >> it wouldn't shock you to do that. >> if we've gone from 400 last year to 700 this year, and the year before that, we were at 100 and something and that growth rate looks like it will continue for some time. >> if that's the case, you're one of the smartest guys in the world, the 40% shareholder in liberty, why shouldn't they now that the standstills have gone away start buying and buy the rest of the company for 250 which is capping all of the return that you can give

shareholders? liberty media is free to do anything they want. >> you can't tell them what to do. >> and i have no interest in telling them what to do, but what i am able to do is represent the best interests of the non-liberty shareholders as well, so the way i look at my job now i'm responsible for all of our shareholders including liberty. if there ever was to be a transaction that liberty would want to initiate, my responsibility would be to our shareholders to make sure they're treated very fairly. >> just a couple of days ago, pandora reported a number. pandora and spotify. all these free internet models can destroy you. i look at pandora and i think they have rising costs that you don't have and that the competitive threat is overstated, but i need to hear it from you because people tell me i'm nuts believing in sirius at this point. >> we have a lot of competition, and i believe business models matter. some people can sit there and

disagree and say it's about eyeballs or it's about something else. i believe it's about the business model. we competed with our terrestrial radio for the last 11 years and grew from zero subscribers to 22 million subscribers. we now have competition from i.p. no barrier to entry. anybody could be an i.p. audio content company. they have a questionable business model because it's dependent upon advertising. i have believed for the last ten years from before i came to sirius xm that the internet has created so much inventory, so much inventory in the advertising world, that a business model that is principally advertising driven, whether it be terrestrial radio or ip radio, it's advertiser

driven, is at risk. i don't particularly like that. great company, pandora and great product and question about the business model. >> speaking of your programming costs there were deals put together when xm and sirius were fighting tooth and nail so you paid a lot more. is it possible? i don't know how much the stern contract is, and i know he'll be on nbc soon, and i'm very excited about that, but i'm trying to figure out whether you have a bunch of levers. including your cost could principally go down as contracts roll over. >> if you take the entire premium entertainment category, so include television and cable television, satellite television, and their costs are all going up. you see how there are these wars between the msos and the content owners. >> right. >> what we have said is that our content costs are going down and as a percentage of revenue it's going to be less. there is no -- your company comcast is faced with the idea that their programming costs are going up. ours are going down and they're going down because though we have all of this competition,

there's only one satellite radio. if cnbc wants to be on satellite radio because it's one of the buckets they want, they want to be on the internet and they want to be on cable, there's one conversation they can have and that's with us and that's different than when they're at war with each other. >> i got my bill, and i didn't notice, i guess it's higher. am i like anybody else? you've had enough time to gauge whether there's been a falloff in the price increase. >> sirius started getting its first subscriber ten years ago and has never had a price increase. when i first came to the company i thought we ought to raise prices because from the time it started, got howard stern, got the nfl and other great content and never passed along those costs. we wanted to grow rapidly and decided to hold off. it was looking at doing a price increase again and the merger came along. i said you know what? we don't need to do a price increase. we can get the savings that way. so now 11 years later, we've raised the price for the first

time and i think we handled it really well. we learned a lesson from another company. >> that company is valued much less than you, but it's a subscription model, netflix. >> on the price increase and i'll give you the answer on that one is our consumers have been really loyal and they really love our product, and the reaction has been very modest. very modest. so you know, we feel very good about, you know, the subscriber growth in light of the fact that we put in a price increase. on the valuation, i don't make the valuation. >> i know you don't, but it's hard for me to get my arms around why you should be at 15. >> 80% of the ebitda is free cash flow. that free cash flow is growing at 75% last year. it's going to normalize and keep growing and the idea is that the

competition that we are facing today, the competition we are facing today, terrestrial radio is not investing in new content. they're not going to get bigger. on the i.p. side of the house, you don't know who is going to win. today we are the number one radio revenue company. number one radio in the world. and have growth characteristics. a growth company characteristics. >> i want to know -- boy, i would love to make news, you can only buy so much debt because you have restrictions and call options. why not initiate a gigantic buyback and make the people who have been with the stock for so long making them believe like they do that the stock is way too cheap. >> this isn't the first time i am acknowledging this though i always love making news. >> i appreciate that.

>> when you have the free cash flow for acquisition and there's nothing out there. there is nothing, zero, that i want. okay. so you're not going to make -- you can return the capital to shareholders. at end of this year, at the end of this year we'll have between $1.2 or $1.5 of cash on our balance sheet? i don't know what to do with it other than to use it as you are characterizing. it's a board decision. i would hope that the board would have to share my view, but that has to be the agenda. >> howard is still amazing after all these years. you like that from your point of view? you don't mind sharing him with nbc? >> i think howard is absolutely the greatest radio performer of all time. in history of all time. we are very identified with howard because he does these radio shows. the bigger howard gets and the

more exposure howard gets, the better it is for me, for us, our company. howard's not doing it for us. howard's doing it -- >> he's getting paid hundreds of millions. >> he's worth it. it's not that he's paid badly. he's worth the money that he's getting and it's good for us that he's so successful. >> where do you get your customers? the average car is 11 years old. are you beginning to see from used cars a major growth initiative or will it have to come from new cars and the 14.5 billion built could provide upside in 2012? >> so far this year on the new car side most people see 14 and 15. that's up huge. >> from a couple of years ago. >> that will drive the top line together with the price increase and that's where the top line revenue growth is at. the used cars, there's 200 million used cars on the road today.

a lot of them have satellite radios in them because it started five years ago we started ramping it up. we believe that used cars will be a big driver. we're working hard to find the information. as an example, i know how to deal with the certified preowned and auto nation. if you sell the car to me i have to find out how i can get that information so i can market to you and give you a three-month trial. it is a big deal. a little work and we're getting better every day. used cars are contributing to the growth number that you said in the fourth quarter. record year last year. you talked about pandora. in 2011 last year with the competition we added the most number of subscribers since our merger. >> it's sort of a remarkable story. i did think you were dead, mel. >> in fairness to me, it hurt. >> i appreciate you coming on

the show because it was a hard-hitting thing that i did. i know that. >> you're right. a lot of companies -- a lot of companies -- warren buffett was lending money to goldman sachs and ge at 10% plus warrants. so when we spoke to 22 companies, okay, that were frozen, that wouldn't do it and to his credit john malone and greg lefevre stepped up and made a great investment for them and a great investment for us. >> you're a winner and thanks for coming on "mad money." mel karmazan, ceo of sirius xm radio. google him and you'll know exactly why sirius xm is going to be a huge success beyond where it is now. stay with cramer. coming up, ride the lightning, take a nonstop thrill ride as cramer goes stock after stock. all of your calls taken rapid fire on the lightning round. >> later, no place like home,

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it is time -- it's time for the lightning round on cramer's mad money. play until you hear this sound -- and then the lightning round is over. are you ready skee-daddy? time for the lightning round. start with glen in michigan. glen. >> caller: boo-yah, prince jim. >> boo-yah, chief. >> caller: the tigers have a prince of their own now. >> tigers look good, what can i tell you? >> caller: i bought this on pullback today. mcdonald's. >> you know i have done enough work that these monthly numbers should not control and we think the boilerplate negativity, i am a buy, buy, buy, of mcd. let's go to frank in california. frank!

>> caller: boo-yah mr. jim from california in long beach state 49ers. >> yeah! >> caller: i'm calling you regarding the wells fargo -- >> wells fargo is precisely the kind of bank i want to buy here. i was worried that the fed would start looking the wrong way and they said maybe we're okay. wells fargo is a buy, buy, buy. how about deb in pennsylvania? >> caller: i'm loving the new ellen commercials of jc penney. what do you think of jcp? >> i think the stock has won and i'm willing to pull back. i've told people before he started ron johnson, he should buy it. the stock rated at 42 and 43, and i walked away. let's go to gary in oregon. >> gary! >> hi, jim, my stock is bgc partners. is the dividend safe and how do they make money? >> okay. we had howard on the other day, and i thought that you made it very clear that the company can pay that dividend as a return of capital. i am not that concerned and we need to see the markets better and your dividend's fine. let's go to kevin in florida. kevin?

>> boo-yah to you, cramer. the man with the plan! >> boo-yah back to you, sunshine. >> caller: my question to you is anr still in the doghouse? >> a and r, 52-week low. the coal market is just endlessly down, but you know what? i don't want to sell it anymore. i can't tell you to buy because there is no reason to buy, but at 16 i'm not a seller. let's go to debbie in new york. debbie! >> caller: hi. boo-yah to you, jim. >> boo-yah back at you. >> caller: wtw. >> i don't like the quarter. i think you should sell into the tender offer and the earnings are what matters. let's go to dana in montana. >> caller: hi, cramer. i was looking at cypress semiconductor, are you moving out of it? >> you know what? it's inexpensive, but tonight texas instruments and altera preannounce, i think cypress gets hit again. i think at 14, and you should buy it because the company has a boat load of cash and it has

been disappointing. let's go to larry in florida. larry? >> caller: boo-yah from jacksonville, jim. thanks for taking the call. >> my pleasure. >> reporter: my stock is accuright corporation. >> i thought i could play the turn in autos. i thought that i could do it with that one. you know, because i just felt it was, you know, truck, car, truck, car, it was the wrong play. cummins for truck and auto is mga. okay? the accuride was not the bull market and it's a vehicle market, and i thought it was and that was a mistake. let's go to matthew in massachusetts. matthew. >> jim, boo-yah from boston, buddy. >> boo-yah. yeah, man. looking forward to the season. go ahead. >> your thoughts on odp. >> the way the celtics looked against the sixers and it was just a disaster an odp is similar and they should put odp on the lineup and rondo. >> let's go to neil in virginia. neil? >> caller: jim, boo-yah!

>> any time i've recommended game stock, they should shoot me! i'm not going start now. let's go to greg in new york. greg! greg! >> caller: mr. cramer, first-time caller and a boo-yah from long beach, new york. >> long beach, got to get out there. good weather. >> bob is money, he'll blow out the numbers, and i think this is a big year for celgene and they have a lot of new approvals and that's my favorite biotech stock in the book and that, ladies and gentlemen, is the conclusion of the lightning round! [ male announcer ] if you believe the mayan calendar, on december 21st, polar shifts will reverse the earth's gravitational pull and hurtle us all into space, which would render retirement planning unnecessary.

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>> hey, look. eventually even the greatest bull markets have to come to an end. for the last few years we've seen a fabulous raging bull market in rental apartments.

it's the flipside of the housing bust. people can't own, they rent and with all of the foreclosures as the totally moribund housing market have there have been a ton of renters. they make fortunes in reits, but alas, i think the bull market may be coming to an end slain by the matador known as affordable housing. it's time to put the apartment reits in the sell block, stocks like investment in management and equity residential. the reason it's pretty simple. when nobody was buying homes, now that we are looking at the genuine bottom in housing, the rental reits may not be such winners. this is about the economics of owning versus renting and when the housing market fell apart and nobody wanted to buy anyway, even as homes were getting less and less expensive, but just yesterday we got new data suggesting that houses have never been more affordable than they are right now. every month they release a housing affordability index that

measures how median home price stacks up with the median family income and the average interest rate on a mortgage. when that's at 100, it means the typical median household is existing single family home. in other words, a rating of 100 means the average family can afford to buy an average house and the higher this index goes the more affordable gets. do you know where that index was in january? it hit a record high of over 206 and the typical family more than doubled. it's never happened before. not since the nar's been keeping records since 1970. there's never been a better time to buy a house than right now which is one of the reasons i'm putting my money where my mouth is and closing tomorrow. all of this is great news for me, but it's horrible for the rental business because for the first time in ages owning is cheaper than renting. rentals have become more expensive and way more, and in fact, it's become more like apartment buildings have become victims of their own success. that's a 12% increase and astounding and as a result,

vacancy rates have dropped to levels unseen in years. which is exactly what's been happening. last year's sales of residential rental property up 50% from 2010 and this year there's a ton of new supply coming online and when you throw in the competition from people who can afford to buy their own homes and it seems to me that those rental rates, that climb, let's just say it's not going keep up and that's why you ring the register on the apartment reits. they've not performed the average real estate investment trust for the last few years. the worst of the bunch happens to be some of the best run and equity residential and apartment investment and management and these two have both had huge runs and they now sport some of the lowest yields in the space. really crucial considering that the main reason to own a reit is a dividend. the management has run up 392% from the generational low three years ago. now yields is 2.9%. this is one of the largest owners and operators of apartment properties in america and it could be hurt the most

with the available housing and rallied 20% since november and i think it could be due for a real pullback, and even if it raises the dividend from current levels, the yield will still be too low for my taste versus the better yielding reits. how about this equity residential? up 241% from the generational bottom and not only is it a 2.7 pure yield and this is the best managed apartment reits out there and solid balance sheet. however, i think the upside is limited and equity residential has become a good house in what could be a deteriorating neighborhood. the bottom line, the ultra affordability is not good news for everybody, and i think it could spell the end of an outperformance run in the real estate investment trust which is why i'm putting all of the rental reits in the sell block and apartment investment management, they have the lowest yield and thus issue the lowest and least protection. "mad money" is back after the

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>> it was the best of quarters, it was the worst of quarters. forgive me for quoting from charles dickens' greatest work, a tale of two truck makers, but that's how i felt after reading about the hideous quarter of from navistar, compared to the blowout number its principal competitor cummins reported a month ago. you don't need to look further than these two truck stocks to understand why execution is so darn important in this business particularly if you're a global manufacturer selling to china

and europe because some companies have it, and other companies just don't. cummins knows how to execute. it's the company with the midas touch, taking advantage of the latest technology built fool-proof engines that are the envy of the world, but navistar, these guys couldn't execute if their lives depended on it. it's a staggering $153 million loss and $2.19 cents a share came from warranties and recalls. without one-time charges, the company reported a still horrendous loss of $2.08 per share. talk about upon dropping the ball. navistar had to recall 19,000 trucks and busses courtesy of faulty brakes, but of course, that loss is on navistar. the company's had $112 million from warranty losses and stemming from the manufacturing in 2006 and 2008. hideous. as pathetic as those charges may have been, they were only the

tip of the iceberg. was it last month from $5.79 to a much lower range from $5.24 and talk about not being in control of the situation. navistar is like a truck that jackknifes across the highway all because the driver was asleep at the wheel. contrast that with cummins which delivered a remarkable quarter last month, sales up 19% and earnings coming up at $2.56 a share and the street was looking at $2.54. it was riding high on the huge increase in truck orders worldwide, but particularly from china. ever since the beginning of january, 2012 was becoming the year of the stock picker and nothing drives it home more than the disparity of the two truck companies. we tend to look at price to earnings multiples and growth rates when we need to figure out the price to earnings that figure out the comparison of stocks, but sometimes it all comes down to management and in this case navistar doesn't have its act together while cummins is running circles around the competition.

at the moment it might be up too much to buy it off this disparity. when china lowered the growth boom this southbound the stock shed 12 points which tells me it has more risk up here than when it traded in the '90s and '80s. when you want to play a theme like, for example, the global growth of trucking, you must absolutely play it with the best of breed, even if it's the most expensive stock of the bunch. sure navistar is cheaper than cummins, and then again, it deserves to be. stick with cramer. wanna know the difference between a trader and an elite trader? it's this... the etrade pro platform. fast. beautiful. totally customizable. finds top performing stocks -- in three clicks. quickly scans the market for new trading ideas.

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my dad and grandfather spent their whole careers here. [ charlie ] we're the heartbeat of this place, the people on the line. we take pride in what we do. when that refrigerator ships out the door, it's us that work out here. [ michael ] we're on the forefront of revitalizing manufacturing. we're proving that it can be done here, and it can be done well. [ ilona ] i came to ge after the plant i was working at closed after 33 years. ge's giving me the chance to start back over. [ cindy ] there's construction workers everywhere. so what does that mean?

it means work. it means work for more people. [ brian ] there's a bright future here, and there's a chance to get on the ground floor of something big, something that will bring us back. not only this company, but this country. ♪ >> all right. remember when i'm saying here. it's a stock picker's market. it was dreadful if you owned altera tonight and texas instruments. it was bountiful if you owned apple, so perhaps what you should be doing is investing, not trading, investing. that is the hallmark of what you should do with apple, but understand that for every apple there is a texas instruments. there's even more texas instruments than there are apple and still the overall upswing in the market and take some cash, but we do have policymakers who seem to react very quickly to what's wrong with the stock market and make the right moves. so