the progress continues... but that doesn't mean our job is done. we're still committed to seeing this through. >> 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 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." welcome to cramerica. other people want to make friends, i want more days like today. i want to entertain, but i'm teaching today, so call me at 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 last week. is it the pathetic one that shows manufacturing slowing in may? is it the sad sack one 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 doing 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 got a country where companies aren't hiring with any alacrity, and we also have a company where companies are choosing to return money to shareholders rather than expand and hire. 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 are doing a much ado about nothing thing. making too much of a fuss about the health of a eurozone, particularly ailing banks which they seem to indicate aren't ailing. the central bank exuded a sense of confidence that was otherworldly 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, plus when the white house announced the president is getting engaged and talking to european leaders, we saw a second run on the market. huge! increased 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 or national aggregate data, then 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 companies 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 having the pulse of the economy. you read the papers, you know what the pulse is like, but snap-on business touches the vast majority of the people who service the 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 were up an astounding 45%. but snap-on ceo nicholas pincet said it all when he told us we're a cash-rich and confidence-poor nation, i wrote that one down. and i thought wow. that resonates. that resonates with me, with the whole economy. both people and corporations have tons of capital. great balance sheets, best i've ever seen. but people are scared, they got 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. they're making money, but what are they going to do? no place to put it. not just the autos, though. 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. last time we had a fabulous number from dollar general. don't laugh. dollar stores are a big part of the economy. more than -- the 99% of america, they shop there. i like dollar tree. they have 99 cent mike & ike's. they snapped up 30 million shares of dollar general. dollar general closed at $48.77. a 4.1% gain. some might say, come on, jim. that's not discretionary spending. how about dick's sporting goods? an upgrade 3.5%. not many necessities sold there, unless you are like me and you regard fishing as a necessity for a happy life. 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, they reported a monster quarter. pretty amazing, right, given the hiring in the country. they sell perfumes and other beauty products. the desire to look young and beautiful is an integral lubricant 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 this market with both feet? first, for the most part, as important as individual companies are, side show. like a carnival barker in a side show. the macro, not my department, the huge issues facing our economy as a whole, overrides everything i have been taught since i first bought stock in 1979.

today was an outlier, like a lovie blanket for me, 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. she's having a snarly day. more important than president obama talking about plans for fixing the u.s. economy. tomorrow, ben bernanke talks to congress, given how little he can do to help the economy. short-term rates for u.s. treasuries, i feel anything 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 such a huge and horrible shadow, the fed chairman 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 our weekly jobless claims tomorrow morning are pathetic, all the good talk from snapple and ulta or autonation or dick's or home depot or lennar or pulte won't mean a darn thing. today was a bizarre day. we actually 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 really bum me out. go ahead. >> caller: all right. obviously with an increase in market volatility, 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 to you, as investors move toward assets and equities such as walmart and gold and silver, 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 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 break, not much more they can do. people will buy gold no matter what he says. i'm willing to sanction and buy the junior gold miners for trade only. but i always like gld. let's go to andrew in maryland, please. >> caller: hey, jim.

i enjoy your show. doing a really good job. >> thank you. >> caller: a question about brown foreman announced earnings today. >> what a smoke show. what a report. more than kesha brushing their teeth with a bottle of jack. that is some quarter. wouldn't believe numbers they had in europe. but diageo is hitting the scotch. there is nothing like liquor. what do i know? i have to tell you, brown-forman is terrific. savor today. we're back in the macro salt mine tomorrow. 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 combing though a well-groomed stock that has already 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's deep dive in may has investors yearning for r & r. could pebble brook hotel trust offer the room with the view they desire? cramer sits 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 right on your phone. visit madmoney.cnbc.com or call 1-800-743-cnbc. people with a machine.

what ? customers didn't like it. so why do banks do it ? hello ? hello ?! if your bank doesn't let you talk to a real person 24/7,

you need an ally. hello ? ally bank. no nonsense. just people sense.

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 cowbell. 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 can transcend their sector. i will teach you about it right here, right now. you know every wednesday, including today, we play am i diversified, 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 too 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 don't save you from. for those of you haven't managed money professionally, the

highest growth companies cohort. they trade together too. ulta is a real high-growth stock. uber growth stock. it's a rocket. in the quarter just reported earnings an astounding 47%. the comparable sales number, the same store last year, increased 10%. spectacular. only chipotle is a little better. any time you can get double digit sales numbers you have a winner. the gross margin increased, meaning the company made more money off what it sold, and i like expanding gross 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 billion 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? isn't it dangerous to expand so quickly? go ask howard schultz at starbucks. 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, that if ulta reported terrific numbers it would allow a whole lot of 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, panera, remember we were worried about starbucks, they rose 3. monster beverage, $1.32.

whole foods ran $2.44. ralph lauren, gained two 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. they feel emboldened to take everything that sells at a premium multiple. that may seem irrational to you, but i've seen it play out time and again since growth stock investing got going in the '70s. even in the '60s it happened, particularly after 1984. momentum 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 in order 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 these 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 company. 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 haymarket, virginia. how about them 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 that 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 took almost 4% hit in the morning. recovered a good portion of the today, and announced 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 snubbers, 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 snubber that is digital generation. ulta looked real pretty today, but do we chase? no, instead 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 even 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 market's steep dive in may has investors yearning for r & r. does pebblebrook offer the room with the view they desire? cramer sits down with its ceo, all coming up on "mad money." [ male announcer ] when a major hospital

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back in the u.s. economy this year. in pipes, cement, steel, jobs, energy. we need to get the wheels turning. i'm proud of that. making real things... for real. ...that make a real difference. ♪ it's regicide. nothing happened to the queen of england at her jubilee. i'm talking about american royalty. they are finally trying to kill off king coal. tougher regulations from the environmental protection agency, competition from incredibly cheap natural gas, they have made burning coal a lot less economically practical. and in march, it accounted for 30% less power than natural gas. this switch is happening faster than i thought.

take american electric power, the utility that owns the largest electricity switch in the country and one top of the power generators in the country. coal currently represents 66% of generating capacity. the company plans to close coal plants as part of the switch to natural gas. they have to spend billions to retrofit remaining cooperations. they shut down their big sandy coal plant in kentucky. 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 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 electricity market. 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, there was just an absolutely amazing article. not good or bad, just amazing, in "the new york times" last week, talking about how american electric power is making switches and the quote at the top was, have you lost your mind? state representative rocky adkins, a democrat, one of kentucky's most powerful politicians, thundered at michael moore, your predecessor about american electric power switching out of coal. how much pressure are you under from local people versus washington to keep using coal? >> jim, i think it just shows, the challenges we face.

i mean, you have communities that are finally realizing these plants are having to fund their 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 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 are 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 kinds of options are continually being evaluated. >> who is your real boss? is it the rate payers, the people who rely on you for power? is it the public utility commissions, all in disparate views? is it 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 rate 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 a company in business and we have to have shareholders and we have to have customers too. and the commissioners who 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 these coal plants, looked it up from 1973 oil embargo, 1978 that caused the power plant and industrial fuel act which said you have to open coal plants. >> that's right. and we built coal plants and now here we face natural gas being prevalent, low cost, and are you seeing the pendulum swing back. >> i mean, is the secret perhaps that 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. the question is, is it sustainable going forward? and we're seeing commercial start to finally pick back up. it remains to be seen, and it's going to be a really tenuous process we go through, making these 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, mr. moore said 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 plants in place that are 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 that 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 planets are 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 area 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 cost. instead of spending $300 billion, it would be $200 billion. that's 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. he's anti pollution. he's a trained biologist, he's 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, you got 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 so the american consumer is a little better off, take these regulations a little bit slower. >> that's right. i 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, and it's 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 steady ground with "am i diversified?" and later, suite deal? the market's deep dive in may has 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 to find out, all coming up on "mad money." [ male announcer ] this is the at&t network...

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all right cramerica. time is running out for this year's family affairs show.

if you haven't gotten tickets, what the heck are you waiting for? head to madmoney.cnbc.com and get you and 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 this 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." play to this sound and then the lightning round is over. are you ready, skeedaddy? we start with jesse in new york? >> my stock is 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 corporation, rbc. >> another industrial company that needs europe to get strong. a leading machinery company. i have to 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 so the stock in that group is going to 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. should we keep it or sell it? >> i like csx but 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 bishop coal. john in michigan. >> caller: a big booyah, seagate technology. great earnings, 4% dividend. what you do think? >> we are now in excess supply of the disk drives. that means there are too many, when that happens, you get bad numbers coming, it's out of bounds 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. if it goes to 3.5% to 3%, you will have to scale out of it. because once again, even though it's a domestic player, foreigners are dumping the steel in our country, especially the chinese.

how about a booyah from the crazy left coast, california. >> san jose, the election, i get you. what you got? >> caller: i want your opinion on a broken ipo. petrol logistics. a play on shale, oil and cheap natural gas. >> sell, sell, sell. don't buy. we don't like broken. and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade. polar shifts will reverse the earth's gravitational pull and hurtle us all into space. which would render retirement planning unnecessary. but say the sun rises on december 22nd, and you still need to retire. td ameritrade's investment consultants can help you build a plan that fits your life. we'll even throw in up to $600 when you open a new account or roll over an old 401(k). so who's in control now, mayans?

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even after an incredible day today, or maybe especially because of today, we need to play it safe going forward. that means sticking with companies that give us the two "ds." domestic security and dividends. these are the things that will keep you safe if this rally reverses itself and the market takes 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's a new reit 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, that's been the case each time they've done it, and the most recent quarter was terrific. the other thing i like? pebblebrook has good blood lines. jon bortz, the ceo, comes from la salle hotel properties. it outperformed its peers. 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 to tell you, it is doing very well.

mr. bortz, welcome to mad money. have a seat. jon, i follow a lot of companies. sometimes they are companies in the real estate business, where you really just 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 downturn, we looked at what was going on in the real estate world, and it had collapsed, hotels had been pounded and i 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? >> it was kind of a silly idea for public market actually. a blind pull read, we had no assets and on the roadshow 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 so 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 downturn, really incredible. not like any other kind of real estate and that obviously created a lot of problems for owners who overfinanced, bought at the peak, lenders, and others in the industry, and there weren't financial markets that could bail it out. that was the opportunity. >> and still -- 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 speak at all. >> pretty much nothing other than in new york city where there are a few hotels under construction. financing is not available.

we can buy at big discounts to 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've redone them with your partner and suddenly they are filled. >> we will run about 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 400, 500, 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. 2.3% yield and be wondering if this isn't like starwood, the h-o-t kind, 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 all this 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, we've raised $1.2 billion in 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 a whole bunch of fees to do it. >> aren't you a traditional growth company? >> we certainly are a growth company right now. our industry is cyclical so we'll do great in an up cycle and we'll suffer a little bit in a down cycle. but, yes, we're looking at a 24% growth in our same-store ebitda this year. >> that's the highest of any real estate investment trust i follow by a factor of two or three. >> john, you are 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. i've got all kinds of companies on. you have to learn, jon bortz is a master of hoteling. stay with cramer. we all know there's nothing more important than family. >> on june 15th, 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. >> we're having a brotherly dispute. >> the doctor is in the house. >> head to madmoney.cnbc.com to sign up for free tickets. >> the family that invests together stays together. [ female announcer ] life is full of compromises.

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

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 kmp and gld. the spider gold trust etf. am i diversified? now, this is really, really difficult. and i'll tell you why. because a lot of people would say real estate investment trusts all trade together. that's not true. this health care reit trades with health care. realty income, that one trades with -- that one is a pure real estate commercial property play, and plum 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, master 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 we have three reits and an mlp. let's go to john in indiana. >> caller: ba ba booyah, dr. jim. i'll leave out my biggest holding, apple and go with nly, coke, nike, nke, kraft, kft, and a biomed, abmd, dr. jim, am i diversified? >> all right. first, did you hear how john identified abiomed? 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 really the kind of health care i want. it is a spec, and abiomed, we had that conversation, this is a heart care company and a revolutionary company, we like it very much. kraft foods, terrific. fast growth and slow growth. nike apparel, dick's upgrade tells me nike will have a good quarter. are beverage and food too much alike? i'll bless it because 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. denderon corporation. eep. enbridge energy partners, and at&t. >> lisa, if she had identified dendrion as her spec play, i might have allowed it given that merck is also a pharmaceutical. she didn't say spec, so i'll take it out, i'll take 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. stock going higher. pipeline company, bank, telco, and two drug companies. dendrion is out, apple is in.

now it's diversified. nice yield, good play. three good yielders and two non, i say stick with cramer. [ male announcer ] this is the at&t network. a living, breathing intelligence helping business, do more business. in here, opportunities are created and protected. gonna need more wool! demand is instantly recognized and securely acted on across the company. around the world. turning a new trend, into a global phenomenon. it's the at&t network -- securing a world of new opportunities. ♪ how math and science kind of makes the world work. in high school, i had a physics teacher by the name of mr. davies.

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