buy it. >> dan? >> intel and dell. >> karen? >> mhp on the education. >> great secondary and accepted well. i think it's going higher. >> tune in for squawk on the street and the exclusive tomorrow. see you back here tomorrow night at 5:00. "mad money" starts now.

here.

put put simply, without something happening -- i'm always in favor

of catching the up side pip want you there, sure. we also have to recognize this is a dangerous moment. we need stocks in our portfolio that can work. we need stocks that don't need to set the alarm at $3.45 a.m. because they don't have exposure to the faltering couldn't net, which brings us -- well, it brings me to spam. or more specifically to hormel foods, the purveyor of span, germany, france, italy reported a dynamite quarter last night. i want to talk about spam because it represents so much about what is right at a time when so much is wrong! despite its literal proximity to spain meaning that the spelling of spam is just a couple of letters from spain, the on real connection i could find and i searched and i searched and i searched between spam and europe is this bit of analysis from

monty python. >> eggs and spam, eggs, bacon, sausage and spam. everything has spam in it. >> we can't build an entire portfolio based on a spamamid. right now there is perhaps no better name than hormel, at least an an example. i'm just use it as an example of a business that can withstand the withering financial assault that are europe, facebook and jpmorgan. three plagues on the average joe investors. i want to use hormel, homeland hormel, as a paradigm. not only because it's barely a

dollar off its 52-week high but because it's emblematic of fairly obvious trends that you simply can't miss, even if you don't do a lot of security analysis. first, let's start with the issue of financial vulnerability, the vulnerability and craziness overseas where a couple smaller companies are holding the whole world hostage, in part because of panicking depositors, who want out of their country's weakened bank, in part because no institution wants to own these faltering nation's bonds. what's it to hormel? you go to the web site, that's how we start our research, go to the web site. you're going to see under the celebrating 121 years planning ahead segment of the hormel web site, there's a quote that pretty much captures the moment. ready? i think it was the sausage, end quote, said hormel when asked to explain his company's ability to

survive the panic of 1893. if they survived the panic of 1893, do you they won't survive the panic of 2013? i don't think so. how else do they make their money? they slaughter pigs. that's what they do. they slaughter pigs! piigs -- that's the acronym for portugal, ireland, italy, greece and spain! no, it's not piigs kind, it's the good kind. so what does this mean? don't you wish you knew that all the companies you own, how they made their money? don't you wish, for example, how you knew how jpmorgan made its money? i know they do some nutty thing over there in europe that can cost them at least a couple

billion dollars, something nobody has been able to explain, including the ceo, but every kid can explain spam. no adult, not even of the rocket scientist variety can explain a security that's supposed to profit from rising credits. you might not consider spam a real grower, although it did put up some pretty good numbers in sales last night. maybe you want something with more innovation, financial innovation. i don't want any financial innovation on the show. hormel is the king of food innovation from way back and i just don't mean its development of the world's first canned ham in 1926. i'm talking about jennie o turkey! the breakthrough turkey product. this did 70.2 million in sales this quarter. do you know the forecast was 47

million? what's the ticket here? simple. i think people no longer trust a lot of the beef that goes into hamburgers but they like turgy burgers and it plays good the health issues, too. you might not like what spam stands support but jennie o turkey is the real driver here and it's taking the market by storm. and mexican cuisine, what have they done that with? powerhouse brands. chi-chi. this is a cramer save for its salsa and holy gawk moly. you can smear that stuff on chips, dip in hormel turkey and vegetarian chili and i'll be

right over. take dell, they're bracketing from machine gun fire, they're on the down side, the low end and apple's ipad and iphone on the upside. you think you can out innovate spam? in an era where everyone seems to get snookered by the likes of facebook, you don't have worry about the big guys yet getting a call to get out of hormel. no one cares about hormel, which i love. and hormel gives you another great way to win thanks to the great commodity crash now. i can only imagine how strong their earnings could be in the futures because the turkeys that go into jennie o's turkey eat a lot of corn. you know what else hormel has? a long runway of growth that isn't western europe based, a

dividend, 45 consecutive years of dividend boosts. it's never missed a payout since 1928. don't worry, hormel is not straying away from its core spam business. you're going to be seeing an animated character, sir camelot. get it? we all have our spam stores, don't we in my spam lot story came as a young boy, climbing the mountains, we've been running on fumes, desperate, thirsty, we had to turn to the one liquid that's got the power, spam juice! mission saved! and for all you doom sayers out there, can i just say spam would rival cockroaches for survivability with the event of thermonuclear war? don't quote me on that since i

never sampled a dock roach! i've bought an experience that will get you through this tough period, a company that's easily understood, pay as nice dividend and best of all it isn't facebook! max in florida, please. >> caller: mr. cramer, booyah! >> booyah, sunshine. what's going on? >> caller: my stock is morgan stanley. i know they're getting sued over the ipo. i'd like your say on it. >> it's funny, stephanie and i were saying you saw morgan stanley led this market back. apple on the nasdaq and morgan stanley on the listed. i think it's overdone but i'll be very honest with you because that's the way i play. i thought it was overdone at 15 and 16. i'm not going to call morgan stamly. seems cheap. hasn't met a thing. >> nick in texas. >> caller: booyah.

>> we have a how texas thing going on here. >> caller: ford. they've got tremendous demand for their product. moody's has upgraded their debt. do we hold, cut and run or buy more? >> i want to hold. i was thrilled they got investment grade status, i was hoping for that. that was a linchpin of why i went positive on ford but boy are they in europe and latin america. on a day like today we felt good about europe. tomorrow we'll just feel hung over about it. set aside any beef you have with spam. spam in the place that you live, not in europe. a an hrl we can trust. delicious maybe profitable, yummy! stay with cramer. >> coming up, as dell suffers its worst day in more than a decade, tech became toxic. cramer picks among the rubble of their quarter for some news you can use. he fonda silver lining. and while it's not good for

dell, it could be for you. find out what it is next. and later, taylor made? although europe weighs on our market, the maker of klein and hilfiger, just ahead. all coming up on "mad money." >> on june 15th, we're celebrating a fifth annual edition of "mad money, it's a family affair." want to join cramer in studio for the special event? >> all the doctor's in the house. >> go to madmoney.cnbc.com. >> miss out on some "mad money,"

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he was there for us, even if we needed him in college. you could call him, you had his phone number. he was just focused on making sure we were gonna be successful. he would never give up on any of us. mcallen, texas. in here, heavy rental equipment in the middle of nowhere, is always headed somewhere. to give it a sense of direction, at&t created a mobile asset solution to protect and track everything. so every piece of equipment knows where it is, how it's doing or where it goes next. ♪ this is the bell on the cat. [ male announcer ] it's a network of possibilities -- helping you do what you do... even better. ♪

are we witnessing the great secular decline of the personal computer, the laptop, netbook and notebook? that was my take away from the hideous quarter dell reported, so bad it caused dell to lose 70% of its stock today. but people are getting it wrong, getting company too much of a free pass. they say what did we think dell would do given cisco is on hold? the problem with the consumer is sales were down 15%. that's a staggering decline. what's going on? i think it's michael dell's vision is proving to be wrong.

his statements about how everyone is going to have three devices got crushed in this quarter, blown to smitherines. you'd be hard pressed to find out if you only read the conference call. how did it happen? apple. the mobile offerings is lethal for the wholedell consumer product line. no wonder apple led a rapid return today, rising to the resistance level today. the ripples and repercussions from the dell quarter are enormous. they're the obvious ones, intel and microsoft, neither which can afford a rapid typewriter type decline are banking on sales stabilizing to these factors. i think the strong balance sheet and dividend protection for intel will keep the stock from being totally annihilated but i do expect estimate cuts across the board tomorrow not to be reversed by the good number

hewlett packard gave. i will be so bold as to say this might even have hurt facebook during the month of may. the mobile adoption appears to be that rapid intra quarter. i think one of the reasons morgan stanley was reported to be cutting numbers for facebook at the midnight hour ahead of the ipo has to do with the lightning fast transition to mobile. facebook hasn't beenable to monetize mobile as much as they can on pc. facebook has fall i don't know so hard that it count a bounce today. consider the progression like this -- internet providers have accepted the switch from all flying dollars to digital dimes when it comes to advertising. we've been living with that for a long time. but they aren't ready for mobile pennies. without very intrusionive 15-second video ads on mobile, all theline advertisers can't deliver the same level of profit growth and sales growth they've delivered in the past when it was just a question of the

notebook, net book, desktop. facebook's insane growth could become a casualty of the transition del is describing. people simply don't know yet, except the big accounts who might have gotten tipped that morgan stanley was cutting numbers before the abomb inability ipo. the big thing about technical, it's a zero sum game. there's usually a winner on the other side, the purveyor of the disruptive tsunami and that is apple. when the smoke clears off this miserable dell quarter, people will realize apple is behind the destruction of the laptop and with that comes a world of hurt for just about everyone with the exception of apple. people are putting two and two together, which is why apple rallied so hard this afternoon. taking it to that level where the off-the-charts guy said it has to break through. if it does, to the moon. hewlett packard did report a much better than expected quarter.

perhaps there will be some who say this a dell problem. the bottom line, it is no longer a three device world. why have a desktop, laptop and phone when mobile devices make it redundant? while it's terrible news for potential people like dell and for facebook, it's fantastic for apple, which remains the one to buy. marcia in ohio. marcia. >> caller: hi, jim. i've been hearing so much about the digital cloud computer thing. i bought some sirius logic. it did great. in march i decided to buy brief cove and jive. sirius is up about 60%, jive is done 38 and what can you tell me about the two stocks that have gone down so much?

>> bright cove, i've used their product and it's very good. i would not give up on that. jive is part of this social media craze. that's the problem. it's become a crave. i'm not in favor of owning it. this was the worst day in the decade for dell. what we have to conclude is that apple has obviated the need for many for the small form factor computer that was dell's bread and butter. stick with krcramer. >> coming up, tailor made. the makers of tommy klein and hilfiger is showing demand on the other side of the pond is still strong. time for to you go shopping? cramer's earning exclusive is just ahead. and later, accelerated profits? the future of computing is headed to the cloud and this company is paving the way. but after dell's disaster quarter drags down most of tech

with it, should you avoid the battleground? don't miss cramer's take and his exclusive with the ceo of lsi corp, all coming up on "mad money." [ male announcer ] when this hotel added aflac to provide a better benefits package... oahhh!

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possible good news, then the

market came back. we recognize some of our stocks are more vulnerable than others, which is why i've been telling you to play it safe when it comes to american companies with substantial european exposure. but is it possible to be too cautious at a moment like this? is it possible that we're too negative about an incredibly well-run apparel company like pvh corp, the artist formerly known as phil van hughesen. it gets 27% of its sales from europe. they have great brands. but tommy hilfiger have very, very strong, calvin klein, big driver. pvh is so ubiquitious, you'll find their labelson half the ties, a third of the dress shirts. stock down about 12 points. since i last spoke with the ceo at the end of march. this company has a fantastic long-term history outperforming. it's given as you 103% gain

since i first got behind it in january 2008. even though the company preannounced the up side, still delivered a better quarter. its revenues came in higher than expected rising 4% year over year. the company also raised its full-year guidance. that's why manny, the chairman and ceo is here with us tonight to talk about this quarter. welcome back to "mad money." >> nice to see you. >> i'm going to ask you just as a business person, do you come in like stock people do every day and say was today the day that tommy hilfiger fell off a cliff in european? >> definitely not. like everyone else i look at stock price and everyone else in our company, i look at the daily sales reports. and the last three, four weeks there's just been a disconnect. business has been just very, very strong geographically. europe and the united states and, you know, the stock has

been getting pounded just based on the noise going on in the market. >> i think that after this facebook thing where people feel that somebody had inside story on facebook, i want to turn the tables. there east an analyst when they down graded warned of a convergence of trend in northern and southern europe. the people who follow your company may not know the real trends of your company. >> if they were listening they know. we couldn't have been out there more. we've been transparent. we were talking at the end of april, early may. we raised the guidance as you said in your opening clip and talked about the trends of the business. those trends have continued in may where we've seen our come ps of calvin and tommy. >> and how about in europe? >> up hype single digits. so accelerated.

>> is there a possibility of a disconnect what people think of tommy hilfiger here versus what you and i know, maybe they don't understand the -- where the high end aspirational nature of you and germany and france? >> i think clearly the positioning internationalally of the tommy brand is premium price positioning at a premium channel of distribution. in the united states we've been raising that perception here, but both markets have put up this quarter put up double-digit increases, both the u.s., north america and our european business. >> your licensed revenues have held up, despite the weakness at warnico. should we worry or monitor wornico. >> they have two big categories for us, jeans and underwear. their business is very brand focussed in spain and italy.

65, 70% of the business is there where tommy it's just the exact inverse of that. so our exposure with the calvin brand is very limited since we're a royalty model there. for the balance of this years, we're planning the jeans royalties at contractual minimums. so there's very little exposure. we've really tried to capture whatever risk is in the numbers. >> unlike most stock players, i don't want to bury the lead. you gave it to us. double-digit gains in the united states. we're seeing a big turn in this country, aren't we? >> yeah, we're definitely seeing a good trend to business. the tone here has continued to be strong. we started the year off very strong in general as the industry. from what i'm seeing in may, my business, we've seen the business accelerate in may. the weather turned warm and the business turned on like a

switch. >> some people have been worried because the weather was good in earlier months that some guys pulled business. that's clearly not the case pup did not have people buy a lot in march and april and have nothing left in may? >> we saw a lot of people buy in march and april but continue to buy in may and june. there's the easter calendar shift and that throws everyone into a little confusion. once that settled and we got into the first week of may, business has taken off. >> two times when you've been on you said we're not seeing the big break in kmed tease but the second half has to be terrific year over year. >> we're seeing significant cost reductions but in particular our heritage business is starting third quarter in particular. >> when i see down 3% for heritage, i'm used to down 1, down 2. is this something that's a tipping point on hair damage,

down 3? >> we exited some business that were underperforming. we redeployed that capital and we're really trying to manage that business from cash flow and profitability point of view and to set ourselves up to see a second turn in the business come the second half of this year. given what we now see in front of us with the cost reductions and how the business is reacting, we couldn't be more confident about that turn around. >> one last question, manny. your company has been a phenomenal acquirer. tommy hilfiger originally doulted. not by me. it's a great acquirer. it would be phenomenal if you could identify another target now and add it to the group of laebls. is that the right thing to be doing or the business is strong

enough you don't need to think of that? >> no, we signalled to the market that we're looking for acquisitions. now its performance has been better, it's two years, we're at a point in our balance sheet where we're very confident. so we're clearly looking and we'll be aggressive about it. >> and just give as you lot of reasons to own the stock right through this period. if the period ever ends, we know where this stock is going very quickly. manny chirico, thank you for coming on. i think it's time to have faith in manny, not necessarily these analysts who when a fossil goes down, they say ooh, i got to get out of pvh. pvh is not fossil, tack it from me. >> coming up, the clock is ticking. call cramer at 1-800-743-cnbc to find out how to fire away at

cramer on the lightning and thunder 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." >> we all know there's nothing more important than family. >> on june 15th, we're celebrating our fifth annual edition of "mad money, it's a family affair." want to join cramer in studio for the event? head to madmoney.cnbc.com to sign up for free tickets. >> the family who invests together stays together. >> tonight, why doesn't congress

react? "the kudlow report" tonight. sadly, no. oh. but i did pick up your dry cleaning and had your shoes shined. well, i made you a reservation at the sushi place around the corner. well, in that case, i better get back to these invoices... which i'll do right after making your favorite pancakes. you know what? i'm going to tidy up your side of the office. i can't hear you because i'm also making you a smoothie. [ male announcer ] marriott hotels & resorts knows it's better for xerox to automate their global invoice process so they can focus on serving their customers. with xerox, you're ready for real business.

welcome to the world leader in derivatives. welcome to superderivatives.

it is time for the lightning round! i play this sound and thin the lightning round is over. are you ready, skeedaddy. brad in connecticut. >> caller: living the dream, booyah to you. >> i'm living it, too.

so is zuckerberg. >> caller: my stock is seadrill. >> i am concerned oil could go below my target is 90. >> gopal in colorado. >> caller: booyah! i've been watching for six year. hp. >> this looks like a decent quarter. we don't know enough yet but they may be rationalizing the company and doing the right thing. if i give it up on hewlett packard? i don't give up on anything. doesn't mean i want to recommend it. it makes me feel better about apple. steve in connecticut. steve! >> caller: hi, jim. first time caller. long-time listener.

lad, lithium motors, it beat earnings estimates the last seven quarters in a row and a 1.6% dividend. >> you know what i got do with this? i got to compare it to auto nation and carmax. i'm going to do a threesome -- a three-move clay makes death match. if yours prevails, you'll know by watching "mad money." let's go to donald in new jersey. >> caller: booyah! incy. >> it's a great speculative situation. i'll bless it as a spec. tony in new york! >> caller: big booyah to you. >> done your way. what's on your mind. >> caller: twi. >> remember, twi -- wow, okay.

we had the management on and the management was let's say they were optimistic and i will share their optimism. they were toughly optimistic, like in your face optimistic. they're like, jim, you're too negative optimistic. i do like it. larry in maine, please. larry? >> caller: yes, jim. the stock i was wondering is vbtx, it's a tech. >> right. i think vertex goes remarkably higher. it has made a lot of back and forths at these levels but i think it's going to see $80. it may be the best biotech other than celgene and it has more up side. that, ladies and gentlemen, is the conclusion of the lightning round! >> the lightning round is sponsored by td ameritrade. you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep,

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he made physics more than theoretical, he made it real for me. we built a guitar, we did things with electronics and mother boards. that's where the interest in engineering came from. so now, as an engineer, i have a career that speaks to that passion. thank you, mr. davies. after a day where the market was crushed by europe in the morning, only a rebound wonderfully in the afternoon, it might be worth taking some time to look for stocks in out of favor sectors that nevertheless have powerful secular growth trends going for them. take lsi corporation. just lsi for you home gamers.

semiconductor company that makes chips for storage and network technologies. tech is about as out of favor as it gets but they benefit from the explosion of digital information in our society, what lsi calls the data deluge this that's a huge sector. we're always talking about data. they make chips for routers, switches and hardware base stations. they enable mobile networks and data centers for cloud computing. those are the sweet spots as mobile and the cloud are indeed as we know the future of tech. even though lsi is up 16% for the year, the stom has been hammered the last couple of months down to 6.88 today. could lsi be a bargain at these levels? let check in with abi

tollwalker, the president and ceo of lsi. this is the first time i've met you. this is fantastic. >> good to meet you. >> a lot of cross currents in tech, we saw dell say some bad things, about personal computers, we saw cisco say bad things about the telecommunications market because of a demand worry. how can lsi buck those waters and still grow? >> there are some spots here and there consumer retail the way we'll buck the trends is the sheer number of product cycles we've got. we're participating in cloud, wireless, infrastructure. as you said, data and traffic continues to grow. our silicon is all about helping to address that challenge. >> now, there's also a part of your business that's connected to flash, short-term memory and also to d disc drives. suddenly because of a call earlier this week, the disk drives are more plentiful.

people are say being you should sell lsi. does that make sense? >> no, that doesn't make sense. we're still below flood levels. focus on the units that are support those hard drives and the units are still below prefund flood levels. we don't have an inventory situation. that collateral consequence i think has been overblown from my perspective. >> how does that happen? to me i say there will be more drives, that's good for lsi. people are like are you crazy, that will be bad for lsi. >> from our perspective we're doing fantastic in solid state drives. for every solid state drive that ships it's three times the atp and higher margins. >> what kind of units are you thinking about? >> the solid state drive market will be 35 million to 40 million units. >> that's a little more bullish

than some. >> it's in the range. the first quarter upside. a big part of that was flash. >> you have made a series of acquisitions, sometimes hard to keep track of because you've reinvented the company so rapidly the big one was the sand force acquisition for flash. tell me why that makes the company more able to grow. >> the flash -- >> you see flash in lots of different devices. >> this is solid state technology for clients in servers, storage systems. we see the market about $500 million growing to about $3 billion in about three years. very fast growth, 50%, 60% growth. we've publicly said we're going to grow 150% this year over last year's flash revenues. the way we're going to grow is to participate in solid state drives but pc flash technology to accelerate applications.

>> we know you're not the only guy in the segment. one thing that's made lsi difficult for me is you have a lot of people shooting at you a. >> right now in the industry, we're always in the top in terms of our performance, endures as an example. >> now, dell this morning was very down beat about net books and talking about -- and notebooks, talking about notebooks down 15% to the consumer. you've got exposure to the sector. how will you make it so it doesn't you are the hurt the next quarter in. >> 80% of our business is associated with the infrastructure, clouds, data structure, growth in smartphones as well as the mobile ent net, that's where 80% of our business is. if some of that exposure is because of let's say cannibalization, if you will, that's fine, too.

because the more smart devices that are putting pressure on the internet and the cloud and the service providers, that's business more lsi. >> this is the best balance sheet i've ever season. >> i think our position right now is good. we've been active in buying back shares. we do generate a lot of cash. right now our focus is operating margin expansion. it's about returning value to shareholders and we've been significantly expanding year over year. >> will you be able to stay independent in the stock stays down here? >> they'll steal the future for you. >> we've been a con sell dateor yourself. and i don't think there's been a better player in terms of network security that's taking

advantage in the marketplace. >> it is a compelling story. skpl we're excited. >> terrific. >> thank you to abhi talwalkar, a really interesting stock, considering all the things that doing right. ght. 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.

look, fabulous late-day come back, right? but the market's been a rocky

place this last few weeks for investors since april 2nd. a lot of you home gamers want to cover your eyes close your ears and close out but don't do temperature two of the best strategies is combat the uncertainty is make sure you're doing your homework and not put all your eggs in one basket. that's key. you call me and tell me if your portfolio is diversified enough. paul, what do you have? >> caller: thank you very much. an honor to talk to you, jim. i have five stocks. i notice you've had a good recommendation on them in the past because couple of them are taking a kind of a dive. my favorite stock is liquidity services, lqdt and sirius logic, crus, and sturm ruger, sea gate

technology and starbucks, sbux. >> right. those are all doing well. i wouldn't feel too bad about them. all right, all right. let's take a look at these. first of all, starbucks recommended today. it's going down too far. i was glad to see their recommendation. it's a growth stock that works. sirius logic has had a remarkable run. that's the sound for apple. sturm ruger, wasn't able to fill demand. that's why people like smith and wesson, a good yield. sea gate is problematic. they're in balance in head drives. looks like they're not going to be able to blow out the numbers time and again. you have a refreshment stock, a goods and services auction play, you have a gun play and then you have two that are too much the same. you're going to sell sea gate. get out of sea gate and own a

health care stock. maybe like a bris tom myers or hormel. own a food company. that would be a nice diverse case. ted in florida. >> caller: booyah from sunny palm beach, dr. cramer. >> i love palm beach. what's going on? >> caller: please tell me if i'm diversified, apple, baker hughes, cisco, intel, century link, ctl. >> okay. no. no. you got some real work to do here. century link, that's fine. that's a higher yielding slow growth teleco. baker hughes, not great oil services company so you have oil services and teleco. then you have these three. these are all in the same cohort, cisco, apple and intel. even though intel has had great yield, we'll sell intel and though cisco is down on its luck and seems cheap are we're going to sell cisco and keep apple.

let's put honeywell in, that would be good to replace cisco and then maybe not all industrials, we'll go back and use the hormel example to replace intel and then i would feel -- but not yet. rich in california, please. >> caller: thanks very much for sharing your knowledge and that dirty adult linoleum floor with us. >> i hear you. what's up? >> caller: my fold holdings are the infamous american international group, british petroleum, government properties income trust, gov, northern american tanker, nat and north run grumen. >> i see you're a difficult i dividend hog. northern american tanker, even though it is an oil tanker, i think it's about to buy some more ships.

that usually means equity offering is coming. and financial oil tanker real estate, trust and defense, that will do it for me. great diversification and very good yield. stay with cramer.

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