it's always a gratifying experience. it makes me feel good about my car. i absolutely love my chevy volt. ♪ 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're nuts! they know nothing. i always like to say there is a bull market somewhere. "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you a little money. my job is not just to entertain you but to educate you. so call me at 1-800-743-cnbc. tonight we've got to talk emotions, because oh, boy, are emotions ruling the day, especially on days where the market takes sudden turns and dives on all news, by the way. >> aggh! >> a federal reserve meeting

showing the fed is not panicking about the economy. caused the averages to get hammered at one point before they recovered at the end of the day. dow dropping 49 points. the s&p landing flat and the nasdaq falling 0.49%. emotions are running us over. hmm, running right now, right now, a day like today. emotions? well, let's just say they are about the worst i've seen as people have just lost so much money in the stock market. i'm sensitive to it. so they get angry. people get angry when you're skeptical about one of their rare winners. and don't i know it. last night as part of our endless attempts to be the most interactive program on television, we showed the results of a poll on which viewers voted which stock all star could finish strongest in the second half. you chose arena pharma, a stock that had already rallied more

than 500% for the year. that's right, you heard me, 500%. so i proceed to give you a couple of heads-up about why it might be wise, hey, maybe a little prudent to ring the register for some of your arena, given the huge gain and the possibility of competition. as well as the overall prospects of both the drug which could be good and the company which might not be as good considering its revenue sharing arrangements. pretty smart stuff, accurate. the response, holy cow! i mean unbelievable. [ gunshots ] you know what? i might as well have attacked your mothers along with a half dozen apple pies, and a few american flags thrown in for good measure. twitter@jimcramer lit up like a christmas tree, which by the way i didn't chainsaw or set on fire as you would have thought i would have thought i'd done just because i questioned the prowess of arena's drug and the staying power of the stock. but you know what? this is what i call a teachable

moment. it gives us a chance to talk about the fallacy of being married to stocks, the mistake of falling in love with these pieces of paper, and the need to be more skeptical of everything involving the stock market if you don't want to end up jilted or crushed and immediately lose a ton of money. [ crying ] got your attention? first off, i always say that in this game, unlike, say, sports, you got to check your emotions at the door. check your emotions at the door. you want to go crazy rooting for something then pick a baseball team to be a fan, fan being short for fanatic. don't pick a stock. stocks are just pieces of paper connected to the fortunes of companies. sometimes not really connected very well. and we knew there are reversals of fortune every day. let's depersonalize things for a moment. instead of talking about arena, let's talk about the cummins

which was down another $3.38 after yesterday's 8.5-point shellacking. cummins is one of america's best manufacturers. i'm proud that we make one of the best truck enjust in the country that produce the least pollution that are the most powerful and loved by trucking companies by far. this columbus-based corporation is the american flag of engine technology. but do i root for them? heck no. i mean, i would root for the indianapolis colts if i lived there and maybe the pacers. i wouldn't be rooting for the columbus cummins. and believe me, arena pharma is no cummins. here is the problem in a nutshell. you can't be a fan and an investor at the same time. you surrender your critical faculties when you root for a team. that's just plain wrong when it comes to picking stocks. you should always want to know

what the bears are saying about your stock. never stop challenging your thesis ever. and that's why we tweeted the smartest and most responsible rebuttal to my arena analysis. not because i agree with the guy. i got to show you the other side of the trade. that's the way i play it. i want to be tested. i want to be battle ready if something goes wrong with my thesis. that's not just what i see happening to many of you in arena pharma. you're not doing that. the catcalls on this one remind me of the zealots who got so angry at me for being skeptical of dendreon. bulls-eye! dendreon invented provenge, the prostate cancer treatment. fast forward today and dendreon fell another 6.6% which means they may disappoint again, from a stock that's now down 83% from its high and has cost faithful people fortunes. those losses could have been avoided. you just had to treat dendreon like a piece of paper rather than an object of affection. second, don't forget in the end

any stock, including arena is part of the overall stock market, whether we like it or not, could burn us up. doesn't matter. you see, almost all stocks are correlated these days with the border averages. so when the market gets clocked like it does this afternoon off the release of the old federal reserve minutes that show the fed might not take any action right now to help the economy, don't for one minute believe any stock can buck this gravitational pull, not this market. at least initially. that concept has to be built into your critical thinking too. third, and perhaps most important, if you have only one takeaway from me from "mad money," it's that nobody ever got hurt taking a profit. on this show we are dedicated to the proposition that if you're up huge on a stock, you simply have to take something off the table. you have to, no matter what. gains are just too hard to come by to let them slip through your fingers. i don't care how terrific arena is.

i don't care if it produces an obesity pill that loses 25 pounds overnight. you need to lock in winnings in this ridiculous, often vicious market. as my late mom louise always said to me when we used to win big at the casino, jimmy, take some of that money off the table right now, go buy yourself a nice sweater. the sweater rule is something that will never get you in trouble, ever. cashmere! ultimately this is a business of risk rewards where your only real friends are nice safe dividends and diversification. which is why today like every wednesday we play "am i diversified?." do you want to own arena? own it in a diversified portfolio, high yielding industrial, and a pharmaceutical firm with a good dividend. arena should be your speculative entry. in other words, it isn't even in the same sector as your pharma position. there really isn't any overlap. that's how different they are. this is speculation. the essence of good speculation is to take some profits as you get them, no matter how good or how hot the stock might be. how hot the stock might be.. your ultimate goal should be to ring the register on your initial investment so you can play with the house's money, which is why i was so adamant

last night that people with big gains in arena, and you know you're out there, simply must ring the register on at least some if not all of their profits. playing with the house's money is the holy grail of investing because no matter what happens you can't lose money. you're playing with pure profit. listen. you have to be willing to be skeptical of any stock you own, even your favorites, something i talk about all the time with my colleague herb greenberg, simply because it makes you a much wiser investor. you have to be willing to see the other side of the trade. you have to know the bear case against you, not just your own stock, but the market in general. you absolutely have to check your emotions at the door. never be afraid of taking a profit in a winner. to get to play with the house's money, ha! here is the bottom line, believe me, you will never, ever regret these principles, even if it means you leave some winnings when you walk away from the table to go buy that sweater. it's so much more permanent and substantial than any piece of paper you might ever own. let's go to john in georgia, please. john? >> caller: hi, jim.

boo-yah from north georgia. i bought some arch coal over the past several months. and looking at a 16 to 18-month hold there's been recent dislocation in the coal sector and bad news. what is your current take on aci? >> we call things cyclical around here and secular. cyclical means when the economy comes back, the stock comes back with it. and we call things secular, it's going in the direction of itself. there is a secular line of coal that will not be solved by any cyclical upturn which i don't see anyway. so the answer is -- sell, sell, sell! >> lauren? >> caller: hey, jim, boo-yah from long island. >> done your way, done your way. what is up? >> caller: i'm calling about hh gregg. it had a really bad day today. >> didn't it? >> caller: i don't know. is it a buy or should i -- >> i can't put you in it because i don't have any conviction. i don't think it's a radioshack. i think it's better than radioshack. it's a little better than best buy, but this is a very big disappointment.

this stock, if i owned it would sell half tomorrow and hope the market goes up. hope shouldn't be a part of the equation. you can't own gregg. it was an overreaction today, but you can't own it. listen, nobody is more passionate about the market than i am, nobody in this whole country, nobody! when it comes to the stocks you own, don't second the emotion. check the emotion at the door. they are not motherhood, they are not the flag, and they most certainly aren't apple pie. stick with cramer! coming up, data delight? wonder how amazon knows what you might like? tibco software hones in on big data to deliver that advantage to its customers. but could sector-wide weakness make this a poor time to invest in tech? cramer's exclusive with the company's ceo is next. and later, breaking the mold? facebook's high profile disaster may have left many investors feeling uneasy about ipos.

but is it all about to change? tonight, cramer's outlining two new tech offerings that could have you surfing towards profits once again, all coming up on "mad money". don't miss a second of "mad money". follow @jimcramer on twitter. have a question? tweet jim cramer. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. i'm going to be speaking to freef farrara. >> we have a rare interview with henry cravis. ♪

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we all know it's been pretty lousy environment for tech. just witness the vicious beating the nasdaq has been taking. however, there are still a few high quality technology companies that have somehow managed to buck the trend. and actually seem to be doing very well in a difficult period. but because the group tends to trade in lockstep, the stocks of these rare tech winners are being thrown out along with all the losers. there is a lot of bad pin action in the group. take tibco software, tibx. they delivered a terrific quarter.

i don't know if you remember on june 28th, in response the big analytics stalks saw the stocks shoot up, not down, up 11.5% the very next day. of course, what happens? it came back down. barely a few cents above where it was when it reported. that was in response to this big picture macro-economic kind of worry, and more importantly, dismal reports from its peers like last thursday's horrible announcement from informatica. invest beers have been painted with too broad strokes. in other words you might be getting tibco's terrific results practically for free. so how is it this company is thriving when so many are in trouble? it's all about rapidly analyzing high quantities of data in order to help companies make real-time decisions that help them increase sales or keep their customers happy. big data, the proliferation of vast quantities of digital information is a huge and still working theme in tech. it's holding up. and tibco has a major edge on

the competition. making the data actionable rather than stuffing it into the digital equivalent of a filing equipment. you've seen their stuff. when you buy a book on amazon and they instantly recommend other titles you might like them. the incredibly ack asly is all from tibco. when you buy something at macy's, salespeople seem to know to offer you a deal while your wallet is still out. tibco. and it's not just retail. tibco software allows companies to reap virtually immediate results across a host of industries. that's why they were still up 4% in europe and middle east despite the vicious slowdown in europe. that's how they were up 17% in the americas and 40% in asia and japan. can tibco continue to transcend the weakness like it did when it reported two weeks ago? let's talk with vivek ranadive, the chairman and ceo of tibco, and find out more about his company and where it is headed. vivek, well, welcome back to the show. terrific quarter. great to have you. >> thanks, jim, it's always a pleasure to be with you. >> first, i got to ask you.

one of the things that has really been driving us crazy, even in the last ten days people are telling us dollar up so much against euro, the last ten days so bad in europe. is it still consistent even from where your quarter ended? >> well, we're doing well, jim. what we think is happening is like dickens said, it's a tale of two cities. it's the best of times. it's the worst of times. and for us it's the best of times. year to date our business in europe is up over 20%. and the currency basis up over 30%. i knew you were going to ask me about this. on the way here i checked with my salespeople. and just in the last couple of days we have closed multiple six figure -- seven-figure deals across europe, including a seven-figure deal with the european bank that doesn't have a ceo, a large sports retailer, a drug company. so we continue to be a must-have, whether you're in europe, the americas or in asia. >> i can't tell you how valuable

that is, because literally we had this debacle at cummins, a technology engine company. and it was the last ten days. i needed to ask that. i appreciate your candor there. i want to know, there is a couple of things you've been up to. everyone talks about facebook. no one knows whether facebook has been doing well or not. you guys made a big push, put tibco and whether facebook and tibco are doing things together that companies are liking for marketing. >> well, the way that my customers are increasingly looking at their business, jim -- and by the way, i look at my own basketball team in the same way. >> why did you give away that guy to the sixers last night? never mind, off topic. anyway. >> we think that's a good deal. but it's really a social network. so whether you're a sports team, a bank, a retailer, an airline, a sports retailer, you have a social network.

and what we do is we help you capture that network. we help you expand it, engage it, and monetize it. so we know who you are. we know what your household looks like. we know what you like. we have loyalty programs. we know what your household looks like, and we know what you might be about to buy or not buy. and now on the back end we also know what we have and what we would like to sell. so literally, we can pick up every tweet and say oh, you just had cold pizza. you must about to become unhappy. so before you do that, we actually find something to make you happy. now which company doesn't need that? every single company on the planet wants that kind of a social network. >> and that's obviously a mobile app too. some people are saying once things go to mobile, not that effective. to me that's more effective on mobile than it would be a desktop. >> yeah, we want to make the offer before you leave the aisle of the store. not six months after you leave the store, the way an ibm or an oracle might do. >> they may beg to disagree, but i think it's perfect you bring

them up. now, you've got this loyalty labs, speaking of this loyalty members issue. 260 million loyalty members under management. what does that mean? you have the information that is needed to be able to reach those people? 260 million people? >> that's correct. that's correct. and loyalty is one of the hottest killer apps of the cloud right now. and again, so we're not building 20th century cloud apps like your friends at salesforce or other companies do. >> right. >> right. >> this is the 21st century. and it's all about things like loyalty, about customer upset across sale, master data management. these are 21st century apps, jim. and just putting something in the cloud that you did in the 20th century is -- what we're doing with loyalty is a great example of what is needed for the future. >> i think it's important because you said things not that

complimentary about oracle and about ibm and salesforce. i want to ask something piper afterray put out -- jaffray put out, reaching from 17 to 32% in the prior four quarters, that is something i'm sure oracle, ibm or salesforce would say why didn't you ask vivek that? >> if you do it on a constant currency basis, jim, we're accelerating. and if you look at it across product lines in visual, up 40% to date, and dpm 87% growth. in loyalty we had 100% growth. so really, we're quite happy with the way that our licenses have been growing. but we're not satisfied. so in the americas, we felt that we were leaving a lot of money on the table. and so we're very focused now on correcting that. so i think our numbers compare quite well, whether you look at

40% cash flow growth, our 20% plus constant currency license growth, our over 25% eps growth. we've grown our eps at over 20% now for ten quarters in a row. so i think our numbers actually do reflect that it is the best of times for companies like tibco. >> well, that's for sure. vivek ranadive, the chairman and ceo of tibco software. vivek, thank you so much for coming on the show. >> thanks, jim. it's always a pleasure. >> obviously you can see that he is up against some big competitors. he is obviously doing quite well against those competitors. they were brought up during the interview. the cohort is a tough one, but he does seem to be on the top of the heat that is vivek ranadive, and he is the chairman and ceo of tibco software. stay with me. coming up, breaking the mold? facebook's high profile disaster may have left many investors feeling uneasy about ipos. but is it all about to change?

tonight, cramer's outlining two new tech offers that could have you surfing toward profits once again. plus, lag in luxury? with high-end retailers stumbling, some companies are all dressed up with nowhere to go. cramer decides if it's time to shift his stock shopping habits. all coming up on "mad money." stocks are crushed. >> the family and i appreciate all the expertise you provide for us in helping to get us back to even. >> the last couple of days i touched on being back to even, and i couldn't have done it without you. you're the man! >> let me give you a thanks for getting me back to even plus ba-ba-ba-boo-yah! >> yes! >> even in hard times, don't get mad, get "mad money." so... [ gasps ]

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♪ some people call me maurice". ever since the monumental catastrophe that was facebook's initial public offering, the entire ipo market has been stalled. it seems nobody is wanting to do a deal in the wake of facebook, and that goes double for technology companies. but next week the ipo drought is coming to an end. >> hallelujah!

>> with not one, but two major offerings, specifically thursday the 19th, mon began stanley, the firm that now infamously brought facebook public is now taking both kayak -- yes, like row, row, row -- dot-com and palo alto networks public. kayak is an extremely popular online travel network. palo alto is a security play. two deals with a high level of sex appeal. so what should you do with them? after the way morgan stanley blew it with facebook, look, i can understand. i understand why you would want to stay the heck away from both of these ipos. but i think that is the absolute wrong takeaway. [ booing ] see, i think the backers at morgan stanley privately recognize that they tarnished the reputation with the bungled facebook deal. they know they need something to redeem themselves, or at least how about save some face. that's why i bet morgan stanley will do everything in its power to price both kayak and palo

alto low enough, this time making sure to get it right for an opening with no trading glitches hopefully from the nasdaq. they need to woo investors back into the game. no kidding. and they're going to use these two hot tech ipos to do it in my opinion. after the facebook fiasco, morgan stanley can't afford to do it any other way. so given that insight into the minds of the bankers and the underwriters in this deal, how should you play kayak and palo alto networks? the strategy is simple. it's the same way we exploit other deliberately underpriced soon to be red-hot ipo. with both kayak and palo alto you want to get shares in the actual deal, not the opening price but the price of the actual ipo and then you want to sell them into the initial spike. don't hold on to either stock. just follow the sage advice of steve miller. take the money and run, and absolutely do not buy them in the after market. [ buzzer ] mind you, do not confuse this

theme, this take the money and run theme, with steve miller's "joker, midnight toker" corollary. and please do not call me maurice! >> by the way, one of the problems with the fais book deal, it spiked to as high as 45 the day of trading to come back down to close just 28 cents above where it became public. if you sold it at the opening you made a quick 10%. you waited a few minutes longer you snagged 18%. the oddity with facebook is many investors didn't know if they got shares in the deal. they didn't know until many days later because the nasdaq wasn't equipped to handle such an enormous ipo. those people didn't have a chance to sell it to the opening. it was an unprecedented screw-up. i don't think that's going to happen again. certainly not with kayak or palo alto. they're much smaller than facebook, therefore much easier to handle. let's take a closer look at these. you can see why getting in on the ipo action, and then, yes, flipping both stocks into the first day or two makes the most sense.

you got to still know what you own, even if you're renting. first off, kayak has all the makings of a smoking good initial public offering. the company runs a beloved travel site. i've used it. maybe you have. many consider it the best place to find great deals. it takes all the deals out there and aggregates them in one easy to navigate place. the company doesn't take a cut when you book a hotel room or a flight. kayak makes most of the money from advertising. it gts gets paid whenever it gets surfs book on another site, like priceline. that's typical. as the owner of an inn in new jersey, people swear by this thing. kayak is perhaps one of the most important and respected travel destination sources out there. you don't mess with kayak. not only does kayak have a beloved brand, it's growing like a weed. the second quarter the company expects revenues to rise 34%. we don't have a lot of triple kind of growers, right? and operations increase an astounding 133 to 151%. pretty much unprecedented in this year.

kayak has great bloodlines, something we care about enormously when evaluating a new ipo. company created in 2004. guess who? by the co-founders of expedia and travelocity and orbitz. triple play. it's kind of like being fathered by seattle slew by way of secretariat. kayak is offering 3.5 million shares. that's small. ex peck the to price between 20 to 25. that means the stock will be selling for 20 to 23 times next year's earnings. that's an valuation roughly in line with travel websites. i think you get in on the ipo and then you into the initial pop when kayak starts trading. don't stick around. there are a number of risks that make kayak too difficult to invest in. the company faces lots of competition, including from google which recently launched its own online site called fare fighter. the second and third quarters you don't want to own a stock like kayak going into the end of the year. then there is the migration of web users to mobile. kayak has done a great job of getting its smartphone app out there.

it's an ad-supported business. look, it also let's not forget this economy. do the smart thing. get in on the kayak deal and ring the register as quickly as you can. how about this palo alto networks. this is another one that could be a sizzling ipo. but a not so hot investment. they make next generation network security technology creating firewalls. you have heard that word, that allows customers to have customized control over what their employees can access through the internet. this is a time saver and a money-saver. the company is taking share from its competitors like checkpoint and it's growing faster than they are too, 25% compound annual revenue growth. really good. however, palo alto's stocks expected to price at 34 to 37, and that puts it at a slight discount to its peers, even though it's better than its peers. that's why i think the stock should pop once it starts trading. that's what people do, they look at the comps. again, you have to sell in the initial strike.

the stock will be too expensive to be a good vestment. trading at about five times sales. and if the company stumbles slightly, you have seen what happens in this market. you can get crushed. plus, this is not a tech friendly environment. lots of companies are gunning for palo alto. and while they may not succeed, competition is going to get hot. you'll hear that from the bears. bottom line, i think the firm is going to do everything it can to engineer a juicy first-day pop in both kayak and palo alto networks next thursday. bankers need to entice people back into the ipo game. boy, they didn't entice people back into the casino. do your best and quickly sell the stock once they start trading. to me i wouldn't stick around. i certainly wouldn't buy in the after market. be a trader, you should come out ahead. be an investor and you just might regret it, especially in a market that has simply not rewarded the patience of the vast majority of shareholders in these newly minted internet ipos. [ crying ] why don't we go to jason in

massachusetts right now. jason? >> caller: jim, on december 31st, george soros sold out of priceline and bought tripadvisor. at this time the result would be double the capital appreciation. tripadvisor is using an app for restaurants to access facebook's 900 million users. can it take market share from priceline? >> maybe the world is big enough for both of them. i got to tell you, tripadvisor again, because of this inn i co-own, tripadvisor is red hot. once you're actually in this business, you cannot believe how powerful these are. i do like tripadvisor more than i like priceline. let's go to tim in my home state of new jersey. tim? >> caller: hey, jim, thanks for taking my call. >> you're quite welcome. >> caller: i have a two-part question for you. one, i wanted to get your thoughts on why some ipos seem to fly under the radar and don't get much play, and some of them seem to be good companies. one i was thinking of was gaslog.

it runs shipping and lng. and it seems like it's a great business to be in right now with natural gas prices so low. and the company's got some new ships and things look somewhat promising there. >> well, here is the deal. first of all, the shipping companies, the ship companies have been such stupendous losers, tim, that no one wants to touch even the best because this is one real bad neighborhood. secondly, there is a belief that there is an overabundance of these ships coming to hit the market. so whenever you think about what this company is doing right now, it will be worse six months from now. and i got to tell you, i share that trepidation. i need to go to nathan in california, please. nathan? >> caller: hey, jim, boo-yah from santa cruz university. >> they're listening, the students are listening. boy do i love that. i got a lot of great messages from students just in the last few days. how can i help? >> caller: so i'm calling about yelp. it's about 8 points off the

highs it was making off the news from the integration with ios. >> right. >> caller: i'm wondering if you think this is a major game-changing catalyst for this stock in the future. >> look, i got to tell you. i'm going to give you a twofold answer. you're a student, you'll understand this. you're a student of the game. yes, it will have an impact. the problem is it happened. i mean, look, this stock has now moved from 14. it was up to 23 yesterday. that's the monster move that you could have had, but the move is over. and that's the way you got to look at it. you just missed it there is nothing else you can do. facebook, boy, has this one ever spooked the ipo zone. but kayak and palo alto will likely shoot up and shoot up real good. so if you can pull a steve miller, take the money and run. stay with cramer. whether the dow soars or hits the floor, jim tries to help you stay on steady ground with "am i diversified?" plus, lag in luxury?

with a lag, some companies are dressed up with nowhere to go. cramer decides if it's time to shift your stock shopping habits, all coming up on "mad money."

it is time, it is time for the "lightning round"! cramer's "mad money" -- >> buy, buy, buy -- >> sell, sell, sell! >> my staffers play the sound -- [ buzzer ] -- and then the "lightning round" is over. are you ready, skee-daddy? it's time for the "lightning round." start with manny in new york. manny? >> caller: ba-ba-boo-yah, jim. >> nice. >> caller: from the true upstate of new york, utica. >> oh, that is. that's the heart. that's the heart in new york. what's up? >> caller: my stock, i'm asking about teva pharmaceuticals. >> don't buy. i'm not going to tell you to sell it. i still believe they have one really good drug that is proprietary, and the rest of it is kind of commodity. i'm not going to say it. i'm not going to tell you to sell it, but i don't want the buy it. let's go to eric in new jersey. eric? >> caller: hi, jim. i'm interested in peabody energy. >> stay on the sidelines.

even though the stock looks dirt cheap, i'm afraid it could go even lower. let's go to norma in florida. norma? >> caller: yes, boo-yah. oh, i'm so happy to talk to you. i want to know about enterprise product partner, epd, and what do you think about limited partners? >> first, i want to thank you for being excited to talk with me and i'm excited to talk with you. second, it is one of the best limited partnerships. you know how you know? it deals under five. people will not deal that stock. i say -- >> buy, buy, buy! >> let's go to eric. >> caller: ba-ba-boo-yah. i have all your books and i've been a listener since 2005. you're a great inspiration. >> thank you. >> caller: would you recommend bby as a great speculative trade? >> no, i wouldn't. too much money lost in hh gregg today. i think people think there is going to be a buyout. i do not believe it's going to happen. i remain a --

>> sell, sell, sell! -- seller of best buy, even though i do like one that is on route 202. let's go to raymond in new york. raymond? >> caller: hey, jim, boo-yah from brooklyn, new york. i'm a junior in finance. qe3 could happen any day now and historically low interest rates. do you think arr is a safe play to earn some yields? >> i'm going to say it's a -- >> buy, buy, buy. >> why do i doubt it? we got the fed minutes. wait for another employment number before you make a move. let's go to lori in washington. >> caller: a seattle boo-yah. >> nice. in the show it never was sunny once. what is going on? >> caller: my stock is ascena, asna. i'm wondering if it's a buy, hold or sell. if it is what do you see as the target price. >> it does agree with the steve miller corollary of "some people call me maurice" because it's one of their product lines. i like this stock very much. >> buy, buy, buy!

>> i say buy, buy, buy. kent in virginia? >> caller: hey, jim. >> what is shaking? >> caller: boo-yah from leesburg, virginia. i'm hanging onto chesapeake energy, chk. >> you know what? i'm going to split the difference. i like the preferred much more than the common. i'm going to say still sell the common, but buy more preferred. let's go to jim in florida. >> caller: hi, jim. i want to know what you think about polyone, pol in this tight market. >> this is a tough group, but they buy a lot of nat gas -- i believe they buy a lot of nat gas, that is my understanding, and that is good. i'm going to say yes to that. i'm also going to throw in that i also do like ppg, which is a better company and the one i would stick with. and you should stick with cramer! [ buzzer ] >> the "lightning round" is sponsored by td ameritrade. sitting on the sidelines because of all the uncertainty

in the markets? >> thanks for turning my portfolio from mean to green. >> that's what i want to hear. >> with over 25 years of experience in bull and bear markets, let coach cramer show you how to play to win. >> thanks for keeping us in the game. >> "mad money" week nights on cnbc. 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.

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like i said earlier in the show, and like gordon gecko tells bud, relax, pal. first lesson in business is don't get emotional about stocks. it clouds your judgment. while gecko is no investor to admire, not in the least -- [ buzzer ] -- he did say one thing right. in difficult markets when emotions are running high, it's more important than ever to realize this is a business of risk, reward -- >> buy, buy, buy! >> sell, sell, sell! >> where skepticism is imperative where your only real friends are safe dividends and diversification. that's why we play "am i diversified?" every week. you call me or tweet me @jimcramer. you tell me your top five holdings and i tell you if your portfolio is diversified enough, or maybe you need to mix it up a little. i love letting my twitter followers get in on the action.

so let's start with a tweet from @billsales. he tweets @jimcramer, "thanks for all you do. i learned a lot from your show and action alerts." that's a service i provide for a fee which runs my charitable trust. "am i diversified?" he wants to know with apple, verizon, costco, mcdonald's, and chevron. thanks, jim. all right. here we go. costco, i want to sell it here. $94, but it's a great retailer, just too high. sold it for the charitable trust. chevron, own it for the charitable trust. terrific company. great news tonight after the close, great earnings. apple favorite technology. i think that stock is putting in a bottom in the high 80s. along with telco, a restaurant, and a retailer. wow, it is perfect!

>> hallelujah! >> hash tag. okay, let's go to joseph in massachusetts. joseph? >> caller: hey, jim, this is joseph. my top five holdings are apple, aapl, bank of america, bac, coca-cola, ko, facebook, fb, and euronext, nyx. >> all right. let's look at this. this is difficult, if not complex [ buzzer ] >> why? because of this, i'll show you why. facebook, social media, apple technology, i'm going to say these are two different things. they don't trade together. we know that already. coca-cola a soft drink. bank of america is a bank. next euro next involved with banking in that it does ipos and trading. we're going have to scratch that one and pick a health care company, a little bit of diversification. that's why we're going with breaking up is easy to do, abbott labs. let's go to andrew in florida. andrew? >> caller: hey, professor

cramer, ba-ba-ba-boo-yah to you. >> nice! >> caller: yes, yes. please turn my day around for me, buddy. >> okay. >> caller: let me know if my portfolio is properly diversified. >> okay. >> caller: and i have five holdings. my five holdings are smith & wesson -- >> i know. just on "fast money." >> -- akorn, akrx, jpmorgan, jpm. i have cs industries, ticker cs, and then i have under armour, which recently just split. ticker ua. am i diversified? >> i like it since it came public. [ buzzer ] >> i'm tired of people getting mad at me when we're doing okay. jpmorgan is a bank. they do report later this week. hope shouldn't be part of the equation but a lot of bad news out there already. cf industries, a little fertilizer action going. smith & wesson, and under armour clothing and akorn.

how about speculative pharma, a clothing company, a gun company, a fertilizer company and a bank. bingo! >> hallelujah! >> perfect. that's diversification. "mad money" is back after the break. ♪ ♪ ♪

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listen to me. you got to worry about what's

expensive. we know shortfall stocks are expensive. i'm talking about companies that sell expensive products. take burberry, the phenomenal clothing business that's done so much to reinvent itself. transforming from a stuffy raincoat company to perhaps the most fashion forward weed killer that i know or that i like to go. to and i'm sure i'm not alone. hey by the way, talk on the street thought this is pretty cool. burberry simply missed the quarter which says not that they have the wrong product line but the right product line isn't selling at the same pace it used. to to me that's an example the world is slowing in general, not burberry's fault. burberry's not doing badly. at 11% growth, that's double-digit. it's just that when you consider how the previous quarter's growth came in at 15%, previous quarter before that 21%, you can see the pattern. the critics wanted to blame china for the weakness. that's too simple. a global problem.

the company plans to take the number of stores there from 63 to 100. i was more concerned that burberry the u.k.'s largest luxury goods couldn't do better in the stants. in the stautz is /* /- -- in the states. burberry's quarter makes a case but it certainly isn't for burr rememb burberry, for dollar general. for target which has just joined forces with neiman marcus. if neiman were still a public company, i would want to short its half of the deal and buy target. so what do you not want to be in? well, ralph lauren is a company

i like, but reported an amazing quarter last time around. it's done little except go down since then. got europe there. i think you have to avoid it. to me rl is the american analog to burberry that has become too risky for my taste. it makes me more cautious about pvh and vf corp. again, not because of actual weakness in the business, there is none that i see, but in collateral damage to burberry. the press release from levi strauss which talked about a sales decline in asia, that does give you pause about vf corp. i'm not good enough to pull it off. it's too hard for me. we're in reset mode right now for the high end. we'll know when the bar is low enough when these fine companies report in line, not even above, but in line numbers and don't go down. it's a bummer to not be able to say come on in, the businesses are fine. but with this burberry announcement, the luxury end of the pool, it's become shark infested. you want retail? think cheaply priced merchandise, not expensive goods, because that's where the real bargains are. stay with cramer.

grchts guess what's on today, "american greed." how does one man pull up an a $2.9 billion fraud that results in the sixth largest bank fall your in u.s. history? we ought to watch this. tune in at 10:00 p.m. and 1:00 a.m. eastern to find out right here on cnbc. i got to tell you, it always is amazing you hear these things out of europe w