might have the same problem 60 times earnings. >> watch that $9 level. >> more fast i'm jim cramer. welcome to my world. >> you need to get in the game. >> firms are going to go out of business, and he's nuts. they're nuts. they know nothing. >> i always like to say there's a bull market somewhere. >> "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you a little money. my job isn't just to entertain but to teach you. call me at 1-800-743-cnbc. you don't have to wait for the olympics on nbc next week to watch volleyball. we have a game going on right here in this market and the rapid rotations aa long with the

spiking are taking your breath away. you saw it rereflected in the averages with the dow gaining 103 points, s&p climbing, nasdaq jumping 1.12%. this was a well deserved rotation. so whose move to the front room to do some whama jama against the bears? how about the most hated sectors out there -- the industrials and the techs. it's amazing. these guys look like beach volleyball players having the time of their lives out there. i find that compelling tv. so let's get through what happened. the key to any rotation is to have a group of stocks that's so beaten down that when the companies merely do the numbers they go higher. when you have an incredible rotation like we saw today you get the most astonishing thing imaginable. companies deliver short falls or guide downs and they have big moves up because people are too

negative. consider four of the most stunning moves i have seen. the first is intel. going to the quarter last night could people have been more negative about intel extrapolating the advanced micro and nasty action in dell and hewlett-packard? i said if intel rallies after reporting a short fall look out, tradeable bottom. what happened? as predicted the headlines were a short fall, cut forecast. however, underneath the company was bullish about the fourth quarter, told a terrific story about growth margins and talked about windows 8 and the tablet from microsoft. it was terrific prose. prose the headlines couldn't capture. traders sold off intel in the headlines. heaven if he should they read the commentary. it's boring but i know it. when the smoke cleared the stock reversed and went higher. that was the call for buying all of tech today. i hope you listened. sure enough, the genuine pin

action -- [ bowling pins ] -- from

pin action? sales force.com, f-5, red hat. all the cloud plays where people have been emulating the rolling stones trying to get off the cloud, it worked back. no one wanted to move like jagger today. most amazing, even the stocks of businesses dissed by intel like sandisk with flash. intel said it was getting weaker. that's like getting a strike and having the ball jump into the next lane for a spare. over the bumpers.

nice. then there's stanley black & decker. the hardware company reported a monster shortfall. stock gets hammered. of course they don't read the commentary. they don't have time. then it was staple with a nail gun like lethal weapon dropping three points before the opening. as people did the work instead of shooting off .44 magnums and having fun they discovered the company put its money where its mouth is and boosted dividend 20%. combine that with the fantastic housing starts and the applications for home loans, off the charts, thank you ben bernanke, and everything housing related came to the front line and stuffed the bears after a real good set-up. how about that? more than a five-point swing bottom to top. you want the best one though? how about that honywell?

what a quarter. the industrials have been in a slump since the lowering the boom on truck engines? coupled with the assumed hard landing in china. we'll speak to honeywell's ceo later in the show. can i say the aerospace sector is over and you have your head examined? these industrial stocks tend to trade together. there is enough overlap with caterpillar to boeing, so honeywell's spike into the heart of the skeptics was olympic caliber. i'm giving them a gold medal today. someone has to step back, get off the court. the banks. they have been spectacular. they were set back, benched when bank of america missed what i regard as an easy set-up. it didn't have the revenue growth of jpmorgan or wells fargo. i don't want to throw cold water on the group.

it's cheap but the losing season of jpmorgan is over and it's the leader in the american league. i have wells fargo going to the national league. we have more wild cards but it was time for tech and industrials to shine. how long will it last? let's face it. we get a couple terrible bond auctions in europe, something you have to bank on after listening to larry kudlow's interview. you will see the industrials and techs out of the line-up which happens. they get pulled from the floor. what you need to know now is a rotation signals something amazing. it tells you the market is stronger than you think, that the ceos are more optimistic than the policy makers and the portfolio managers who have a foot out of the doors at all times. chinese hard landing, spanish banks, you name it. they have the excuse for not performing. rotations work when people are too negative, too down. exactly what i i told you never to be. rotations work when traders

least expect it. the bottom line, the front line industrials and techs stuffed the heck out of the bears today with the vicious rotation. it was powerful enough that i don't think it can end in one day. take heed. money is being made in the groups where it's been lost and the big boys are just waking up to the fact that they may well be on the team that got spiked today and they might be spiked again tomorrow. let's go to kevin in california, please. kevin. >> caller: thanks for taking my call, jim. >> my pleasure. >> caller: my question is in regards to hsbc. company execs -- mexican drug cartels and the s.e.c. is investigating them. my question is basically with ethical decisions aside do you think this may be a good buy after the s.e.c. releases findings? >> i don't know. they did sound like -- they were like the whirlpool for the

mexican cartels like the spin cycle at hsbc taking the money to the cayman islands. if i want to do international banking i'm going with jpmorgan. jamie dimon for all his sins of the previous season is starting to redeem himself. i'll go with wells fargo. they're not in a laundry business getting one hour martinizing or in the whirlpool spin cycle. they actually do banking. charles in florida. hi. >> caller: hi, jim. i'm a satisfied company. we have plant and tree nurseries and can feel the resurgence in the housing market. phm, polte homes has performed well going from under 4.50 to 10.80 today. thanks for your ability to see the future and advise exceptional investments. can we hold on for the ride? >> yes, i think you can. i was doing work on pulte home and dh horton.

i think they will do well. this is the part of the cycle that's powerful for them after the mortgage applications. you want to stay with them. go with the highest quality. as the cycle gets longer into its depth you stoop down the food chain to pulte and horton. i think we're there. i want you to stay with them. alex in new jersey, please. alex? >> boo-yah, jim. this is alex. i love stocks. i have been watching your show since i was 15. i'm 19 now. i love trading. i love it. i love your show. quick question for uh you. vmw. i'm in the i.t. field. i love it. i love cloud computing. buy, buy or sell, sell, sell? >> no, it was a good quarter. first of all, can i get some of the monster energy drink you're on? i'm flagging. secondly, look, i was delivering alpha all day. i didn't get any red bull. vm ware is good. i prefer the lower beta way to play it. i'm delivering alpha giving you

beta. emc which my charitable trust owns. that's the way to go. man, i have to tell you, gar ten state be rocking. rotate the industrials and techs. stuff the bears today. i don't think it's done. the big boys on the other side of the trade, hey, let me give you an advance on what will happen tomorrow to them. stay with cramer! >> announcer: coming up, tale of two techs. two sides to the tech trade and tonight, cramer is helping you make the right choice. a hard-core reality check for two software services. don't miss out on the tools you need to make the tough call. and later, sweeter than honey? honeywell beat the street and raised four-year estimates this morning. crushing this industrial heavy weight stock way up. but has it just begun to ascend? cramer is checking the temperature in his earnings exclusive with the ceo. plus, street justice. from the flash crash to the facebook ipo, some people

consider bankers modern day gangsters, but there is a sheriff on wall street and he's cleaning it up. can the playing field really be levelled for the little guy? all coming up on "mad money." >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. 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. [ male announcer ] it would be easy for u.s. olympian meb keflezighi

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♪ or this one. ♪ or, maybe this one. ♪ but when it's this easy to use citibank mobile check deposit at home...why would he? ♪ woooo! [ male announcer ] citibank mobile check deposit. easier banking. every step of the way. in a market that increasingly seems to be dominated by big impersonal so called macro forces and institutions, politics like the slow motion collapse of europe or the federal reserve it's important to remember that individual companies have a lot of control over their own destiny. those are the ones that do it well and we want to own. in other words execution matters whether or not management is to be a good job matters. i think this is something we are

going to see over and over again in the thick of earnings season. it's a tough time out there. how important is execution? consider tech, one of the hardest hit sectors out there until today's resbit. before this action this morning the rest of the day actually you might have thought every technology company aside from apple is in trouble. you would be wrong. [ buzzer ] there are winners as well as lose rs and a lot of it comes down to how well the people in charge are executing. last week we had an incredible example of how much this term execution matters to tech and to your portfolio. last thursday we got two outlooks. info sys, provider of information technology for the enterprise reported a hideous second quarter and the stock was taken to the woodshed losing %

11%. if you took your cue from infy let's say cash strapped companies are dramatically cutting back their i.t. or information technology budgets. if you believe the alibi you have to conclude any technology firm which relies on the enterprise must be in trouble. i listened and felt like buying inbev so i could cry into my budweiser. the exact same day s.a.p. pronounced terrific second quarter results. stock vaulted 2.9%, continued to rally. it's up 10% since the preannouncement. get me a round of pilsners. infosys and sap are part of the same end market and enterprise food chain. same company buys the software from sap may hire info sys to set up software integrated into their network. from an outsourcing perspective

that company may pick info system to manage the software when it's up and running. how do we wind up with a situation where sap is thriving but infy is in trouble? you may say it's because info sys has exposure to financial services companies which make up a third of the business but there is too much exposure to europe. these are bad excuses. info sys says the european business declined 7% from the previous quarter. financial business declined. energy yutilities business declined because of weakness in the wire line telephone biz. nobody else is seeing the rates of decline. you can't blame europe, especially not when sap, a european company is doing well. can't blame the banks. do you know who the culprit is? infy. the company is doing poorly because of lousy execution. this is the third consecutive quarter where info sys has missed. third in a row. this company is becoming a

serial disappointer. clearly management doesn't have a hand on how business is doing. infy said they are no longer going to provide guidance because of uncertainty in client spending. management is only going to give annual guidance that makes no sense. info sys has more. i like the short companies that don't give guidance. it means they don't know how they are doing. not good. the problem is that infy was pricing services a at the high end of the spectrum but lately has been losing to ibm which reported a nice quarter. these guys have to cut prices to stay competitive. that's why the company discounted prices by 3.2% during the quarter. uh it's kpie the margin was down 180 basis points from the prior quarter. oh, man, we have companies making basis points like mad and they are losing it. yes, i.t. budgets are shrinking.

yes, europe is a problem. well managed companies like sap haven't let that stop them from posting stellar results. thursday, the same day infy was crushed, sap preannounced to the upside. second quarter revenues up 18% year over year. the high end are the previous guides. double digit growths in all geographies. while infy blamed them for the business sap called out the financial end market as a particular source of strength. huh? kind of a weather epiphany about this. maybe it's only raining on info sys's side of the street. maybe it's that sap has executed better than infy. uh i think so. some of you are probably thinking what if it's that software in general is holding out better. i don't think so. it's not like every enterprise software name is posting fabulous results. july 6 we got hideous numbers

from informatica which sells data integration software. they preannounced to the down side missing by 20%. stock fell from 43 to 31. single session, 27% hair cut. who did informatica blame? europe, of course. i don't want to dump on them too much. we all know this is a tough environment for tech. you know what? when times are tough, that's when you can separate the winners from the losers, twheat from the chaff. infos is sys and informatica are anything but. results on the 25th. i look forward to hearing more good things. even if the hardest hit sector out there, even in that one you can find winners and losers. when it comes to enterprise technology companies stick with sap which has proven it can execute when the space is flailing. stay the heck away from infy and

informatica. maybe it's only raining on companies whose names start with inf. but in that case move to a different part of the alphabet like sap. never has sap tasted better. never has being a sap been more rewarding. ted in connecticut. ted. >> caller: boo-yah, jim. how you doing today? >> not bad, chief. how about you? >> caller: i have a question for you an accenture. they beat expectations the last three quarters but the price action hasn't been great. i have a position and i'm thinking of adding to it. what do you think? >> you should add to it. it may be up tomorrow morning. ibm is often considered to be an analog to accenture. i'm surprised the stock isn't over 60. i want you to be in on it. brad in new york. brad. >> caller: boo-yah, cramer. >> boo-yah. >> caller: my question is whether or not it's time to buy

se mrk symantec. they did restructure management to increase the salesperson work force. considering that potential along with the company who generated at least $1.4 billion in free cash flow in each of the past five years. internet security problems not disappearing and the stock flirting with a 52-week low. is now the time to pull the trigger? >> i have wrestled with this question. like what james chainos said at the delivering alpha conference. is this a value? i believe it is. if it isn't making money in this era of cyber security that's overmatched by the bad guys i don't know when it will. i don't want to own the stock. want cyber security? intel bought mcafee and is dirt cheap. not all companies are created equal. forget the ones that begin with inf and go with the one that

starts with sap. after the break i'll try to make you even more money. >> announcer: coming up, sweeter than honey? honeywell beat the street and raised estimates this morning pushing this industrial heavyweight stock way up. but has it just begun to ascend? cramer is checking the temperature in his earnings exclusive with the ceo. later, street justice. from the flash crash to the facebook ipo, some people consider bankers, modern day gangsters. there is a sheriff on wall street and he's cleaning it up. can the playing field be levelled for the little guy in all coming up on "mad money." this man is about to be the millionth customer.

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talk about a teachable moment. this is one of the days where the market beats you over the head with the fact that it never fays to get too negative. i talked about the way the hated

sectors like tech and the industrials staged a comeback fuelled by the fact that people had gotten too pessimistic. i want to circle back to a company that led the charge today. i'm talking about honeywell, the great american manufacturer of everything from aerospace to energy saving automation, specialty materials, auto parts, so much else. they can provide a big boost to your car's gas mileage. over the last few months many investors had written off honeywell. not me. along with the rest of the industrials because of worries about the slowing global economy, not to mention the horrid announcement from cummins that's a good technology company. honeywell proved them wrong with a terrific quarter. three cent earnings beat off the basis raised the guidance for the year, not cut it. with the strength from aerospace which i told you would be better than expected. as well as their performance materials and technologies business which sells to oil

refiners that can boost their margin from $2 to $15 per barrel. is it any wonder that the stock soared $3.64, 6.67%, a huge move particularly for a large cap company? under estimated with its juicy yield at your own peril. let's talk to the man himself, honeywell's fabulous chairman and ceo to hear more about the quarter. welcome back. have a seat. >> always fun, jimmy. >> i'm calling it a rally. there was too much that's good that's happening at your company for me to believe the world is ending. >> well, i'm with you. there is a lot good happening at honeywell. it goes to the seed planting we have done for a number of years. you heard me talk about this. you don't do well during a slightly more difficult time by focusing on it then. you have to have done the stuff over the years. it's seed planting in new products and services, process initiatives. that positions you to do well at

a time like this. >> talk about one you have planted for a long time and how you really own aerospace. last week there was a spate of articles. also the same thing. it's the peak of the cycle. i didn't see peak mentioned in your verbiage about your report about aerospace. >> i don't buy into the idea that it's a peak. you could argue it could stay for a while. you could argue at some point demand and supply will come in balance. geez, there are orders for this. flight hours continue to grow. i don't know that i buy it. >> you also have a business that looks like it's coming into the sweet spot. this business that's humdrum but turns out to be red hot now. the refining business. not just for oil but also natural gas. you've got to be a believer that natural gas will become a surface fuel, will be used more in this country.

>> there are huge changes in the u.s. and around the world. the demand goes up 2 to 3% a year. but there is a huge amount of churn going on. if you look at investments in refineries outside the u.s., for example, it's huge. one thing that has to happen in the u.s. that still hasn't yet is investment in improving the refining capacity that's here. natural gas, shale gas is going to be an important dynamic for the u.s. economy for a long time if we do this right. low cost gas doesn't just help in the fuel bills. you think, should i drive cars differently? are there other industries we should be in? it could give a huge economic boost to the country. >> this is the type of thing, you have become -- because of the -- you're an elder statesman now. we're roughly the same age. you speak about what our country has to do but tip clue you speak it in terms of the fiscal cliff,

the irresponsibility on the part of congress, the longer term. do you see our country needing something like a boost in washington for our natural gas to make this happen or will the market take care of itself? >> for me, when it comes to natural gas, the best thing they can do is not overregulate it. >> okay. >> we should make sure in shale gas the drilling is done correctly and we have a standard that makes sense. we should do it quickly, not drag out on for three years. i think that makes sense. at the end of the day, if you go around the world the competitiveness of countries around the world, we have gone from a billion people in the global economy to four billion now when you add china. we act like we did whether it's debt, energy, infrastructure, math and science, tort reform, free trade. we need to start moving. that's why i keep talking about debt saying we've got to get off of this thing. natural gas is one of the things that can give us an economic boost. >> there was a great moment in your conference call because it made me think about what you said about america.

talk about china. china is so important. you had double digit growth in china. it was spectacular. >> thanks. >> there was an up tick in the short cycle stuff. you said, i'm a guy who believes that china is going to continue to make the right decisions. it made me pause. did the communists have a longer term capitalist view than the united states does? >> well, it's funny. there is an old joke that goes, okay, president of the united states comes to a traffic light. he looks left, looks right, puts the right blinker on, takes a right. putin goes to the traffic light. looks left, looks left, stares there a long time, goes right. hu jintao goes to the traffic light with the ghost of ping in the back. hu jintao says, what should i do? put the blinker on left, turn right. >> that's what they are? the greatest right wing leftist

we have ever seen. >> the commitment to capitalism, the focus on how to improve the prosperity of people through a robust private sector, i don't think it will disappear. they need to evolve but it won't disappear. >> lots of people today pretty much writing off europe. i know you can't afford to write it off, but you also didn't. there are auto problems. made up by this incredible amount we are building here. you didn't speak as if it is going to be something that's catastrophic in europe. >> there are three possible outcomes here. of course government makes a big difference. government is what ends up deciding whether they are going to enable or destroy business. if you take a look at europe, i think the high probability outcome is they do just enough to muddle through. as a result of that, i believe you can end up with a five-year 0% type growth economy in europe. >> oh, man. >> i really do. they could make it worse if they just don't even do that.

>> right. >> they could create a global recession if they did what was right they could make it better. we'll plan assuming 0% growth for the next four or five years. it's the only prudent way to plan for it. they are not showing the political will to do it. >> you are taking the hand you have been dealt. >> oh, yeah. the thing is it's not like the plays disappear. 0% growth isn't great but it didn't disappear. as long as you're driving the new products and services, feet on the street, you can still do well. >> that's what you have been doing so well. congratulations. >> thanks. >> congratulations for busting the group. you did it in one quarter. that's dave cote of honeywell international which i told you again and again to stick with. don't rent it or trade it. just own it. stay with cramer. thank you, dave. >> announcer: coming up, the clock is ticking. call cramer at 800-743-cnbc to find out how to fire away at cramer on the lightning round.

can he with stand your thunderous onslaught of stocks? later, how do your stocks stack up in a mystifying market? cramer makes sure your portfolio makes the grade on am i diversified? all coming up on "mad money." ♪ ♪ ♪ ♪ [ male announcer ] what's the point of an epa estimated 42 miles per gallon if the miles aren't interesting? the lexus ct hybrid. 

>> announcer: lightning round is sponsored by td ameritrade. [ bell ringing ] >> it is time. it is time for the lightning round. you say the name of the stock. i tell you whether to buy or sell. when uh play this sound [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? that, ladies and gentlemen, is >> caller: hey, jim. boo-yah for tampa bay. >> stuttering boo-yah for you. what's up? >> caller: i really want to thank you for giving me the courage to take over my own accounts and turn them from the red to the black. >> yes! >> caller: thank you. my stock today, i added a spec into my medical plays six months ago. alxn. >> oh, this was our homerun derby winner last year. the winner this year is arna.

i tried to get you to ring the register and you have another competitor in visas. melanox is up after the close. that was one of my picks. up 50% on the quarter. john in arkansas. john? >> caller: hey, jimmy. a big boo-yah from beautiful arkansas. >> it is beautiful. >> caller: it's hot here, brother. my stock is going to be sonic. it's had a nice run up here. we are seeing them all over the midwest. what do you think? >> the analysts are so negative. it's repugnant to me. it's like they say it's moved too much. they ain't seen nothing yet. i want to go to catherine in florida. >> caller: hi, mr. cramer. how are you? >> hello, sunshine. >> caller: i have a question, sir. i would appreciate, i want to bug you on lululemon. >> everybody's saying everyone's gunning for lululemon like

underarmour. that apparel complex is coming back. i want to own lululemon. now to ryan in texas. ryan. >> caller: boo-yah, jim! this is ryan from the lone star state. i will be a freshman next year in high school. >> love it. >> our stock is first energy. >> when first energy was yielding 6% i had the company -- i had to coax them on. i said you're the buy of the century. that's a terrific utility. that merger was fantastic. at this point i like duke more than i like first energy. may i go to terry? wow, in georgia. >> caller: hey, boo-yah! >> boo-yah, terry. >> caller: your thoughts on ccl, carnival cruise lines. is it a buy? >> it's okay. do you know who's got a cruise line that's humming? disney and they have espn.

go with disney, not carnival. vinny in new york. vinny! >> caller: jim, big boo-yah from new york. forget about it. >> i like it. what's up? >> caller: what's going on, brother? i have a quick question about amrn. we are a a week away from approval instead of slowly creeping up to $18 it's going back every day. what's going on? [ buzzer ] >> this is a biotech i'm willing to take the risk. remember, that means you can lose a lot of money but you can make a lot of money. took a lot of heat on twitter about saying own it and ring the register. if we get good news ring the register at least on half. marvin in new york. >> caller: boo-yah from a wet manhattan. >> it is awful out there. what's going on? >> caller: first, thanks for explaining the markets, the politics, the economics in these

difficult times. you have helped me develop my own philosophy and strategy. >> that's what i want. i want to help empower people. what's going on? >> caller: i'm looking at allt communications in the data traffic optimization business. >> it's good but it had quite a run so we took a little off the table. brian ashtonburg runs the newsletter at the street.com where i am on the board. the stock is played out. i don't want to chase it here. we like it at 15, 16. let's go to chris in new york. chris? >> caller: b-b-boo-yah. >> okay. >> caller: thanks for taking care of us, jim. >> it's an uphill battle. >> caller: entertaining, informative show. i want to know if i should get rid of altera. >> it's fine. they are in the usual battle. you can't always get melanox

technology up 40 points. i want to hold altera on the cycle. everyone's giving up except for me and some friends. we're in good shape. that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade. on december 21st 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? you know what i love about this country?

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today's rally may have some of you feeling more optimistic about the future. uh bet just as many of you are frustrated and confused about why the market is jumping around like a pogo stick. neither will make you money. there are plenty of opportunities out there. instead of falling off the stick, start doing your homework. look for stocks to make the ups and downs not so bumpy. stocks with juicy dividends, stocks capitalizing from secular trends or domestic security. i say diversification is key, especially in this market. if i have taught one thing in the uh show it's diversificati n diversification. you call or tweet me, give me the top five holdings and i will tell you if you need to mix it up a little. last week they were blasting me saying, jim, it's predictable. listen, if diversification is predictable then i am winning the war. i am starting with a tweet first

from @legal celebrity who writes, boo-yah from l.a. west coast luv. uh i've got michael kors, at&t, apple, magnum hunter, facebook, # am i diversified. [ buzzer ] let's take a look. spec oil play, apparel. facebook is tech. all right? you can say social media. telco and apple. we have two. a problem here. apple and facebook are both tech. we'll get rid of facebook and buy -- bristol-myers so we get a little yield. to charlie in alaska. >> caller: hey, jim. i have a 61 degree north latitude land of the midnight sun b-b-boo-yah going out to the most didactic personality in media, jim cramer. i'm doing great.

>> thesaurus boo-yah. what's up? snoo here's my portfolio. verizon, vz, altria, eli-lily, consolidated edison, and -- no coke -- pepsi. >> oh, sorry. >> caller: the cyclicals have gotten fried. should i mess with the secular success or am i diversified? >> the poet laureate of the land of the rising sun who must never quit his day job. nice yielding tobacco company. pepsi, tobacco is different from drinks right now. let's hope pepsi can match coke whose quarter was unbelievable. electric, verizon reports tomorrow, telco. we have electric utility, tobacco, beverage, drug company

and telco. alaska rocks. that's the best diversification portfolio we had in ages. he's a rhyming magician. scott in texas. >> caller: boo-yah and howdy from texas. >> how-dee. what's up? >> caller: the humidity. >> not the heat? >> caller: i'd like to know if i'm well diversified given the current environment with the best of breed. what should i replace and what would you replace it with. ready? >> born ready. >> caller: epd, s.o., bmy, t, bgs. >> you know them as a pickle company. all right. here we go. this is one of the greatest master limited partnerships there is. b & g, terrific yield. he's delivered consistently. at&t, another high yielding stock. southern company. you know what? they had a good dividend and

bristol-myers, one of the better yielding companies. drug, electric utility, phone company, food. wow! i take it back what i said about alaska. that's a darn good portfolio, too. no offense to the land of the rising sun. "mad money" is back after the break. [ male announcer ] at scottrade,

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cheating is cheating. lying is lying. whether it's masked behind 17

pages of powerpoint presentations about why this tax shelter is okay, at the end of the day i think folks and our investigators and the fbi and s.e.c. are smart enough to see through that. >> now, that's the kind of guy you want in your corner. i got to wear a wire with him today at cnbc's delivering alpha conference. all i can say is uh i'm glad it was just a microphone and not something used to incriminate anybody. i say that because the u.s. attorney for the southern district of new york is the most feared prosecutor of our time. he's prosecuted 71 insider trading cases and won 65 of them. the other six are still pending. that's a record. he's done it by using wiretaps and building complex cases with informants who are eager to help him. he's clever in the courtroom. something obvious today during my interview with him.

i'm glad i was interviewing him not vice versa. he's serious about leveling the playing field and is shocked that miscreants think they can get away with the crimes they commit. what i found profound is he doesn't understand my money managers don't take into his office into account as a risk factor, the way they would factor in the declining euro or bond market. a call from him or a grenade rolling into your office can wipe out your franchise immediately, something even a bad investment can't usually do. he says the calculation is wrong and he wants to change it. i wrote on my harvard law application it was my goal to get the job he has. when i applied to his office i was shot down. didn't have the grades. mine were good. but the lesson is so many business people under estimate the intellectual fire power of

the office. they believe it is government work, so to speak and if they were good they would be running a hedge fund. i have news for you. anybody who watched him today knows not only could he run a hedge fund he's smarter and more sophisticated than just about anyone who does. why is that important? if you're a fund manager who thinks he can get away with insider trading either because uh you masked it or you think no one is listening, all i can say is be prepared to hear the five most frightening words in the financial lexicon. bharara is online two. you feel someone has an edge, knows more than you do, the game is rigged. i can't tell you that you're wrong but when you ask if anyone has your back i have an answer. it's the u.s. attorney for the southern district of new york. he's done more than anybody else in this era to be sure the playing field you're on has a semblance of fairness despite the dark forces that try to hijack your money on a daily basis. fraud, corruption and insider trading. the market may have too much in

common with the wild west now. but at least we've got a real subpoena-toting sheriff. believe me, as he told us today he has enough to do the job. stick with cramer. ♪ ♪ ♪ ♪ [ male announcer ] what's the point of an epa estimated 42 miles per gallon if the miles aren't interesting? the lexus ct hybrid. this is the pursuit of perfection. trick question. i love everything about this country! including prilosec otc.

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