great earnings. >> karen? >> mike? >> ip and financial. >> i'm melissa lee. i will be in chicago money" in chicago for a special trading town hall. >> i'm jim cramer, welcome to my world. >> you need to get in the game! he is nuts, they are nuts they know nothing! i 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" to cramer camp other people want to make friends, i want more days like today. i want to entertain, but i'm teaching today, 1-800-743-cnbc. will the real economy please stand up? is it the economy that's definitely stalling, if not faltering? that's a lousy jobs number. is it the pathetic one that shows manufacturing slowing in may. is it the sad call that the

federal reserve is worried that it might find something else to get the recovery back on track? or is it the strong economy? made up of american companies do fabulously, well enough to rally huge today? best day of the year. dow surge 287 points. which is it? as cramer pal eminem would say, please stand up, please stand up. or was that slim shady? is the economy good or bad, or maybe the real economy is both. we have a country where companies aren't hiring with alacrity, and we also have a company where companies are choosing to return to shareholders we have seen that divergence play out every day. make no mistake. no mistake about it we could care less.

we wouldn't care about economy or stocks if we didn't get a whiff of best case scenario hope out of europe. something really odd happened today. we got a statement out of the european central bank which pretty much told us that we have much ado about nothing. making too much of a fuss about the health of a eurozone, particularly ailing banks which they seem to indicate aren't ailing. theuded a sense of confidence. the type of statement you wouldn't make unless you had something up your sleeve. something so encouraging that you could issue this kind of platitude, this banality, when the white house announced the president is getting engaged and talking to european leaders, we saw a second run on the market. huge a lot of chatter about a secret deal that would bail out

european banks in a serious way. maybe it's a bunch of cards under their sleeves. but the moment you aren't focused on europe and you look at unemployment reports, you peek under the hood of the u.s. economy. we're seeing a deceleration of hiring. that's been obvious, we keep hearing good things about individual companyies profits. please stand up. this morning on "squawk on the street" we talked to the ceo of snap-on tools. this is used by auto mechanics and technicians in this country. talk about the pulse of the economy. you read the papers, you know what pulse is like, but snap-on business touches the vast majority of the people who service 225 million vehicles on the road and we're not getting -- the ceo says his company is in raging bull mode.

best in years. auto business incredibly robust. talks to everybody, this guy. that confirms what we heard earlier in the week from autonation, a retail car dealer where new car sales up an astounding 45%. but snap-on ceo nicholas pincet said it all when he said we're a cash-rich and confidence-poor nation, i wrote that one down. and i thought wow. that resonates. that resonates with me, and the whole economy. both people and corporations have tons of capital. great balance sheets, best i've ever seen. but people are scared, no confidence to do anything with the money. they don't see any real opportunities. they don't see opportunities to hire. it doesn't seem like business is getting better. making money, but what are they going to do? no place to put it not just the autozone. they are a large part of the economy. and big upgrades of a couple of home builders. why? spring is strong.

the traffic is great. prices of homes going higher, right from the research. goes beyond housing too. we had a fabulous number from dollar general. don't laugh. dollar stores a big part of the economy. more than %, the 99% of america, they shop there. i like dollar tree. they have cent mike & ike's. they snapped up 30 million shares of dollar general shares. closed at 48.77. a 4.1% xwgain. some might say, come on, jim. not discretionary spending. how about dick's sporting goods? an upgrade 3.5%. not many necessities sold there, unless are you like me and you regard fishing as a necessity. and home depot held analyst meeting, the company is more bullish than any time i can recall during the whole down

turn. they offered half a million to a bountiful buy backback. and ulta salon, reported a monster quarter. pretty amazing, right, giving the hiring in the country. they sell perfumes and other beauty products. the desire to look young and beautiful is a lub ray can't for the wheels of our late-staged economy. but this will never be confused with buying, bread, milk, or water at the supermarket. what is the belly aching about if things are so darn good? why can't we jump into the market with both feet? first, for the most part, as important as individual companies are, side show. like a clown on in a side show. the macro, not by department, the huge issues facing our economy as a whole, overrides everything i have been tout since i first bought stock in 197. today was an outliar, like a

lovie blanky for me, an an only leah, an aberration, and most of the time we're worried about bbba, spanish bond yields. we worry more about angela merkel. when we started, she was angela, now she's angela. more important than president obama talking about plans for fixing the u.s. economy. tomorrow, ben bernanke talks to kongs, given how little he can do to help the economy. short-term rates for u.s. treasuries, i feel everything he says will be futile. i don't want to listen. anyway, that's my other show, "squawk on the street" lots of chatter about how bernanke will ride to the rescue again. i don't want to hear that. i want to hear that we don't need a rescue, but europe is casting a huge and horrible shadow the fed chair will worry us, and no more than that. but it would be better if he said, i stand by societe generale or some other european bank, so he knows what we should

really be worried about, and it sure isn't in this country if we get no deal from europe this week and weekly jobless claims tomorrow morning are pathetic, all the good talk from snapple and ulta or autonation or dick's or home depot or lenar or pulte won't mean anything. today was a bizarre day. we took up stocks of companies that are doing well and it happens to be a great deal of them, we can only do so, because we have hope the best case scenario could be playing out in europe and we didn't hear anything negative today about hiring in the u.s. all i can say is listen to me, savor these days, because they are unusual, and we'll be right back to the brutal unforgiving macro salt mine tomorrow. daniel in florida, please. daniel. >> caller: booyah. hey, jim. >> what's shaking there, partner? >> caller: not much. how are you? >> doing okay.

phillies keep losing, starting to bum me out. go ahead. >> caller: all right. obviously with an increase, we have an unending appetite for u.s., europe and china, and central banks and the market anticipation of mr. bernanke's speech tomorrow, my question for you, as investors move toward assets and equities such as walmart and my favorite vivicor, he did with turn to futures market and similar trade that goes 55-1, and as a last result -- >> holy cow. >> caller: thank you. >> i'm a fast talker, but have you got me beat. you outtalked me i get the gist what do we do with gold, with the economy, the federal reserve? they want to print more money, give me a brake, not much more they can do. people will buy gold no bhaert what he says. i'm willing to sanction and buy the junior gold miners for trade only. but i always like gld. andrew in maryland, please.

>> caller: hey, jim. i enjoy your show doing a really good job. >> thank you. >> caller: a question about round foreman announced earnings today. >> what a smoke show. what a report. they are brushing their teeth with a bottle of jack. that is some quarter. wouldn't believe numbers they had in europe. but he is hitting the scotch. there is nothing like liquor. what do i know? i have to tell you, brown foremforbrown-forman terrific. please, don't get greedy. "mad money" will be right back. coming up, go for growth? while the bulls and bears battle it out, cramer's comb tloug a well-groomed stock that has run over 40% this year, raise the volume of your portfolio, or will it fall flat?

later, flip the switch? you might feel recharged after today's rally, but with concerns about europe lingering, cramer is plugging you into opportunities here at home. don't miss jim's exclusive, with the ceo of american electric power. plus, suite deal? the market has investors yearning for r & r. could pebble brook travel trust offer the room with the view they desire? we sit down with the ceo to find out. all coming up on "mad money." miss out on some "mad money?" get your text alert today. text "mm" to 26221 to get cramer on your phone, visit madmoney.cnbc.com or call 1-800-743-cnbc. [ male announcer ] this is corporate caterers, miami, florida.

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ulta salon. ever heard of it? sells beauty products, hair care, skin care, fragrances,

doesn't ring a bell? well this fabulous growth company rang a bell today. it was a cowbell. it was so loud and so resonant that it drove up the entire group and you know we need more cowly about, but you know what group i'm talking about? not talking about the hair care group, the perfume group or skin care group. ulta took up the high growth group. growth stocks have a connection that will transsend their sector. i will teach you about it right here, right now. you know every wednesday, including today, we play out the diverse fund, to make sure you don't have all your eggs in one basket. don't have all financial stocks, drug stocks, tech stocks, spec stocks. any one of these areas will have to much correlation in a group, a single core could bring down the whole portfolio. one other cohort i don't talk about enough, don't help you with and save you from. from those of you haven't

managed money professionally, the highest growth company's cohort. they trade together too. ulta is a real high-growth stock. uber growth stock. a rocket. in the quarter just reported earnings an astounding 47%. the comparable sales number, the same store last year, increased 10%. solar. only chipotle is a little better. any time you can get double digit sales numbers you have a winner. the margin increased, meaning the company made more money off it sold, and i like expanding groth margins and ulta expanded store base even faster than we thought. music to the ears of any growth investor out there. it has 470 stores and will expand to 1,200 stores, not the 1,000 locations we previously expected and plenty of skeptics about ulta, including ed greenberg, the 5 million company raised sales and earnings guidance in a big way. i'm not telling you to buy ulta.

go to @jimcramer and say that cramer recommended ulta. no, i don't like the promotional behavior. how can you raise your store account forecast like that with any certainty? dangerous to expand so quickly? go ask howard schultz at starbucks. and insiders do sell for many different reasons, you can't exactly get comfortable with super high speed store growth, since we have seen that wreck many a good company. but i told you last week's game plan, if ulta reported terrific numbers it would allow a whole other growth stocks to go higher, and ulta could be the umbrella ella which protects growth investors and allows them to buy aggressively with less worry and that's exactly what happened today. chipotle roared nine, pannera remember we were worried about starbucks, they rose 3. monster beverage, $1.32.

ralph lauren, gained 2 bucks. problem with the action is nuts. how could that be? this chain of beauty salons have that kind of power? you have to understand how growth investing works. a stock like ulta blows away the numbers, and the mutual funds start reaching for all their favorite stocks, multiple expansion. feel emboldened. takes everything that sells at a premium multiple. that may seem irrational to you, but i've seen it play out time and again since this got going in the '70s. even in the '60s it happened, particularly after 19 4. moemd yum feeds momentum. i'm really pointing the correlation and telling you to beware of owning or chasing too much momentum. yes, it might seem strange, but ulta is a cautionary tale. think about it if ulta missed earnings, all momentum stocks that rallied so hard would trade

down by no fault of their own. they would have been crushed, simply because they are part of the high-growth cohort. what i'm doing is urging to you stay diversified from asking you to protect yourself from hyper growth. that would be fine. that suits me, and more than that and you're hostage to mutual funds that traffic in momentum stocks and they can crush ulta just as easily as they can make it. along with many other high growth stocks. even a slight earnings miss keep that in mind when are you picking stocks. here is the bottom line. high growth sector is indeed a sector and you can't have too much exposure without risking your whole nest egg on a nasty earnings report from one cohort ace companies. when one stumbles, they all stumble. don't make that mistake. many did in 2000, 2001, and we never heard from them again. john in washington, d.c. john. >> caller: jim, booyah to you from hey markay market, virgini.

how about the first place washington nationals? >> you come into my house -- you come into my house and that's what you do to me? is there something that indicates i'm from washington? >> caller: jim, it's been a long time since we've had a winning team here. >> i feel for you. >> caller: top three growth stocks have been your favorites, chipotle, apple, and starbucks. yesterday, starbucks announced they acquired fave red and the stock is up almost 4% hit in the morning. recovered a good portion of the today, and ounce nod that coin star and seattle's best coffee. this acquisition distraction to their core business is starbucks a buy right now for me, or wait a few days for the dust to settle on the acquisition? >> i'm going to tell you to buy starbucks. i don't know if weakness in europe will knock it back down to 50, 51. starbucks in a year from now i think will be higher. i'm betting on howard schultz. i think you should too.

let's go to james in new york. >> caller: hey, jim, it's james. the stock is digital generation. dgit. >> oh, man. did you see that. >> caller: it popped, and karen recommended it on "fast money." and they were looking for buyers, too late, what is the story with it? >> i'm going to do what i have to do on this show, and it's painful for me to say this, but we saw the takeover bid come in, we understand that they were snubbed us, they snubbed the takeover bid, but we haven't done enough work to tell you what should happen. this came out at 4:00 tonight. i got to do more work and i'll be back with the snub that is digital generation. ulta looked real pretty today, but do we chase? no, we learn from the move. we learn that growth stocks all traffic together and you need to be careful of having too much momentum. what they giveth in that sector, oh, boy, do they taketh away.

after the break, i'll try to save you more money. coming up, flip the switch? you might feel recharged after today's rally, but with concerns about europe lingering, cramer is plugging you into opportunities here at home. don't miss jim's exclusive with the ceo of american electric power. and later, suite deal? the mark's steep dive in may has investors looking for r & r. does pebblebrook offer the room with the view they desire? all coming up on "mad money." we're sitting on a bunch of shale gas.

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[ clang ] this is the next level of performance. the next level of innovation. the next rx. the all-new f sport. this is the pursuit of perfection. nothing happened to the queen of england at her jubilee. i'm talking about american royalty. they are trying to kill off king coal. tougher regulations from the environmental protection agency, competition from incredibly cheap natural gas, made burning coal a lot less economically practical. and in march, it accounted for 30% level of power for natural gas. this switch is happening faster than i thought. take american electric power

that owns the largest electricity switch in the company and one top of the power generators in the country. coal currently represents 66% of generating capacity. the company plans to close coal ambulance as part of the switch of natural gas. they have to spend billions to retrofit remaining cooperations. they shut down the big production plant in sandy coal country. american electric power is the kind of stock perfect to own in this environment. maybe not today, because the market is up huge, but listen, it pays you a juicy 4.76% yield, doesn't have exposure outside the united states and canada, and it's a you utility. the real issues and not just epa cracking down on king coal. they get 30% of revenue from ohio. the state is deregulating the

utilities there is still a lot to like about it let's check in with nick akins, ceo of american electric power. welcome back to "mad money." >> hi, jim. great to be with you again. >> sir, an absolutely amazing article. not good or bad, just amazing, in "the new york times" last week talking about how american electric power making switches and the quote at the top was, have you lost your mind? state representative rocky adkins, one of the most powerful politicians, thundered at michael moore, your predecessor about american electric power switching out of coal. how much pressure are you from under from local people to keep using coal? >> jim, i think it just shows, the challenges we face. i mean, you have community that are finally realizing these plants are having phono to fund

futures if they exist or not. if you don't exist, you have tax base, fire protection, police protection, all those types of things, and these plants are located in areas of the country, in many cases, they are the town. so it really is starting to come to bear here, what epa is doing and what the impact is it's going to have on communities, jobs, so forth and it makes it a tremendous challenge from a decisional process to find, oh, you going to spend a billion for a new scrubber or put in natural gas or nothing at all and take from the marketplace? so those kind of options are continually being evaluated. >> who is your real boss? is it the rate payers, the people who rely on you for power. the public utility commissions, all in disparate views, the epa who you have to report to. the people who want good dividends, i regard the people in the audience i have. and the ratings agency, you

don't want to pay too much. how do you do your job? we have a lot of bosses and have to balance a lot of interests. our shareholders are important. we're in a company in business and we have to have shareholders and we have to customers too. and the commissioner who's represent customers in various jurisdictions and authorize payment of the bills, so we really have to be sensitive to what the interests are across the board. >> you built coal plants, looked it up from 1973 oil embargo, 1978 that caused the power plant and industrial fuel act that says you have to open coal plants. >> that's right. and we built coal plants and now here we face a natural gas, being prevalent, low cost, and are you seeing the pendulum swing back. >> i mean, is the secret perhaps you are in a growth area now in ohio and you can grow your way out of this problem? >> well, you know, one of the difficult propositions where the economy is today, and the big

sandy decision represents an example of that. if you build a scrubber there, are you asking for a 30% increase of cost to customers and really you don't have the denominator or the number of customers to spread over if there is not growth in the economy. so that's exactly what we need, and we're seeing growth from an industrial standpoint. is it sustainable going forward? and we're seeing commercial finally start to pick back up it remains to be seen, and it's going to be a really tenuous process we go through, making the major capital investments and those kinds of decisions in the face of an economy that we don't know whether it's going to really come back or not? >> last year at this time, "chicago tribune" article, says the sudden increase in electrical rates and impacts on state economies will be -- he goes on to say, cause a 40% to 60% jump in bills in the next few years. is the price of natural gas

fallen so much in the last year, you don't expect to see that kind of jump if you go nat gas? >> i think if you go natural gas, you will certainly have fuel cost savings, fuel costs for natural gas if you have ambulance in place highly efficient, you can mitigate the increase. but generally speaking, though, you will continue to see major increases as a result. because you have a huge capital investment associated with putting the retrofitting in for coal plants. you also have to replace some of the capacity with natural gas, which is a new capital cost, and then, oh, by the way, you still have refurbishment of the entire grid that's occurring at the same time, so it really is -- the plant is aligning on the amount of capital that needs to be spent. i'm still pretty much where mike was before. mike morris was before in that discussion. >> let me ask you point blank. the economy is tough. country is struggling, these requirements from the federal government do, they not

dramatically over time raise the price of the bills that people in your bill have? >> absolutely. really, it's a poor time in the juncture of this economy to be doing this, and, in fact, the electric power research institute came out with an independent study that said if we took an additional two years, just two years in this process, we could reduce the cost and get the same environmental benefits, by a third less costs, instead of spending $300 billion, it would be $20 billion. an important thing to consider in the process. it's a matter of timing we want to wait for the economy to come back to really get moving on this. >> one last thing. you can't speak for your predecessor. i was doing work on michael morris. he is a biologist for heaven's sake. anti pollution. he's a trained biologist, not some guy from the coal industry. >> and he learned a long time ago to balance many interests, just like we are today. >> i have to tell you, a tough

job. certainly a job i don't want. but i understand you have said point blank now, if you want to make it to the american consumer is a little better off, take regulations a little bit slow. >> that's right. agree. >> thank you so much. nick akins, president and ceo of american electric power. dividend is real good, when we stop thinking europe is all okay, which we saw today, they will come back to american electric power, a real good stock to own. stay with cramer. coming up, whether the dow soars or hits the floor, jim tries to help you stay on the ground with "am i diversifdiver" suite deal? investors yearning for r & r. can pebblebrook's domestic travel portfolio offer the room with the view they desire? cramer sits down with the ceo coming up on "mad money."

all right. cramerica. time running out for this year's family affairs show. if you haven't gotten ticket,

what the heck are you waiting for? head to madmoney.cnbc.com and get your family right here to the studio for a special show on friday, june 15th. i always say, the family that invests together stays together. i need your help to prove it. here i go again with the address. madmoney.cnbc.com. no hashtags, just that. that's how you get the tickets. and now it's time -- time for the lightning round. on cramer's a mad money." and then the lightning round is over. are you ready, subcommittke ske? we start with jesse in new york? >> huntsman? >> don't buy. wait until it gets to 5. tom in wisconsin. swing state. >> caller: jim, i want to thank

and you your staff. what you can tell me about regal beloit, rbc. >> an industrial corporation that needs europe to get strong. a leading machinery company. i had say don't buy until we have more clarity about europe. david in new jersey. david. >> caller: hello. star scientific. sigx. >> come on, chief. they just shot down that dollar thing over in california. and some t the stock in that gr will be altria, symbol mo. let's go to cynthia in virginia. >> caller: thank you for taking my call. we're currently heavily invested in the railroad stock csx. keep it or sell it? >> i like csx, it's a little too coal related and doesn't have the yield i want. i'm going to say don't buy. king coal isn't king anymore. maybe like bish old coal.

john in michigan. >> caller: a big booyah, seagate technology. good earnings, 4% dividend. what you do think? >> excess supply of the disk drives that means there are too many, when that happens, you get bad numbers coming, and protected by a 4% yield if it goes to 3.5% yield, sell, sell, sell. brandon in arkansas, please. >> caller: ba ba ba booyah. >> wow. >> caller: nucor. >> protected by the 4% yield. goes to 3.5% to 3%, you will have to bail out of it. because once again, even though it's a domestic player, phoners a foreigners are dumping the steel in our country,est peshlgly the chinese. how about a booyah from the crazy left coast, california.

>> san jose, the election, i get you. what you got? >> caller: your opinion on a broken ipo. petrol logistics. a play on shale, cheap natural gas. >> sell, sell, sell. don't buy. we don't like broken. and that, ladies and gentlemen, the conclusion of the lightning round. >> the lightning round sponsored by -- mission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering, web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account.

even after an incredible day today, or maybe especially because of today, we need to play it safe going forward. sticking with companies that give us the two "ds." domestic security and dividends. these are the things that will keep you safe for the rally reverses itself and the market take as a turn for the worse, which has been the pattern, something we've seen before. let me introduce you to pebblebrook hotel trust. peb for home gamers. real estate hotel trust that owns 21 hotels, all domestic and located in major metropolitan areas. it formed in december 2009. and used the down turn to

acquire upscale hotels at bargain prices. it started operating right at the beginning of the recovery. so many other reits have a situation where they paid too much before the recession. pebblebrook, latest occupancy rate, increased by 62% and renovating some hotels which should allow them to charge more per room, the case each time they've done it, and the most recent quarter was terrific. the other thing like? peblbrook has good blood lines. jon bortz, the ceo, comes from la salle hotel. and it outperformed its peers. and the bet here is on the jockey, not just the horse. let's talk to jon bortz and find out more about his company and where it's heading. i have toly te ltell you, doing well. mr. bortz, welcome.

have a seat. jon, i follow a lot of companies. sometimes companies in the real estate business, where you focus on the personality who runs it. your company is emblematic of that. how did this one start? >> well, i had retired from la salle hotel properties and the -- right before we got la salle into great shape from the down turn, we looked at what was going on in the real estate world, and it had collapsed, hotels had been pounded and looked around for real estate opportunities and ended up right back where i started, with the idea that you could acquire hotels at great prices. >> the company was really just a company with money, not hotels, right? >> a silly idea for public market actually. a blind pull read, we had no assets and we said we don't even have a pipeline. i have been spending time getting the s-11 done. so people really were betting i guess on the idea that this was

a great time to buy hotels and the track record of myself and the rest of our team. >> the combination of no new hotels and a lot of hotels in your conference call, that banks owned, made it you were really able to buy things more cheap than you would have two years before that? >> that's exactly right. the average hotel cash flow declined 50% in the last down turn, really incredible. not like any other kind of real estate and that created a lot of problems for owners who overfinanced, bought at the peak, lenders, and there weren't financial markets that could bail it out. that was the opportunity. >> and till -- we're still not building -- we often talk about why the economy is not moving. why it's stalled. no construction of new hotels in this country to pespeak at all. >> pretty much nothing than in new york city where there are a few hotels under construction. financing not available. we can buy at big discounts for

replacement cost. how can it make sense to build new supply? >> in new york, you own 49%. but these are hotels that people forgot about, and you redone them with your partner and suddenly they are filled. >> we will run 90% this year through 1,700 rooms in new york city, and the hotels are a great value. they are very large rooms. most people come to new york and think i'm going to stay in a closet, and here you stay in a room that's 4, 5, 600, 800, some 1,000 square feet. >> we talked about the pod hotels, are you not a pod hotel. people get confused, they see a relatively low yield. 3.2% yield and be wondering if this isn't like starwood, the h-o-t time, than a real estate investment trust where you get a big yield. how do you reconcile those? >> the balance right now, as a growing company, taking advantage of the distress in the

industry, we need to go back to the capital marks on a fairly regular basis to finance the acquisitions we've made. over the last -- 24 months, w we've raised $1.2 billion equity in the markets. it doesn't make sense to distribute out the cash flow beyond what we need to and turn around and go get it back again and pay fees to do it. >> aren't you a traditional growth company? >> we certainly are a growth company right now. our industry is cyclical and we'll do great in an up cycle and we'll suffer a bit in a down cycle. but, yes, we're looking at a 24% growth in our same-story ebitada this year. >> that's the highest of any real estate company i follow by a factor of two or three. >> john, are you a moneymaker and people have bet on you before, betting on you now.

the guy who turned me on to jon, a pretty interesting situation. thank you to jon bortz of pebblebrook hotel trust. all kinds of companies on. you have to learn, jon bortz is a master of hoteling. stay with jim. we all know, nothing more important than family. >> on june 1 59, we're celebrating our fifth annual edition of it's a family affair. >> once a year only. check it out. >> join cramer in studio for the special event. >> a brotherly dispute. >> the doctor is in the house. >> head to madmoney.cnbc.com to sign up for a free ticket. >> the family that invests together stays together.

on incredible days like this, some of you question how much has all been all smoke and mirrors, trying to deceiver what's real and not, sometimes it's beyond me. that's why it's so important, moirn ever to know where to find opportunities that are immune to troubles abroad, like in high-growth ulta. focus on diversificatiodiversif. make sure you don't throw all your eggs in one basket, it's time to play "am i diversified?" . tell me your top five holdings and i tell if you you are

diversified enough or need to mix it up a little. let's start with a tweet today, prn 51. i worry about diversification. three of my top five are reits. real income. pcl, plumb creek timber, and top five rounded out with knp and gld. the spider gold trust etf. am i diversifdiversified? now, this is really, really difficult. and i'll tell you why. because a lot of people would say real estate investment trusts trade together. that's not true. this health care reit trades with health care. real income that one trades with -- that one is a pure real estate commercial property play, and plumb creek is a timber company so what we have here, a timber company, a real estate company and a health care play. we're okay. kinder morgan, mass limited

partnership. that's all right. a pipeline company and we've got gold, timber, real estate, health care and oil and gas. that's perfect. i'd bless it even though three reits and an mld. let's go to john in indiana. >> caller: ba ba booyah, i'll leave out my biggest holdings, apple. and go with mly. coke, nike, nke, kraft, kft, and a biomed, abmd, dr. jim, am i diversified? >> all right. first, did you hear how john identified abimed? he identified it as his spec, okay? that made me feel good about it. because had he said it was -- you know, a regular placement, i would say, wait a second, that's not the kind of health care i

want. it is a spec, and aviamed, we had that conversation, this is a heart care company and a revolutionary company, like it very much. kraft foods, terrific. fast growth in slow growth. nike apparel, dick's tells me nike will have a good quarter. are beverage and food too much alike? i'll bless it coca-cola is pure soft drink if it were pepsi, i would have to question it, because pepsi has frito-lay. health care, food, beverage, apparel and financial real estate, excellent. treasuries versus mortgage reits, versus fannie and freddie. lisa in oregon, please. >> caller: booyah, jim, from wet and cloudy portland, oregon. how are you? >> isn't it always?

seattle, it's always like that. i'm doing fine. how are you? >> caller: good, thanks. i have bac, bank of america. dndn. dender in corp ration. eep. end ridge energy partners, and at&t. >> lisa, if she had identified dendrion as her spec play, i might have allowed it given merck is a pharmaceutical. she didn't say spec, so i'll take it out, i'll take a it out and recommend she put in, let's see. what did we -- what are we missing? we can own a tech and apple. why don't we put in apple. charitable trust name. stack going higher. pipeline company, bank, telco, and two drug companies. now it's diversified. nice yield, good play. three good yielders and two non, i say stick with cramer.

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