from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again. 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 entertainment, i'm trying to coach you and teach you, so call me at 1-800-743-cnbc. so this morning, okay, this guy stops me in front of the coffee stand downtown, the one where i get my burning hot high octane cup of joe every day, as i have for years and years, sticks his hand out, tells me he loves the show.

and then he says he wants to know when the day of reckoning is coming. now we know it wasn't today because the averages rallied, dow gaining 13 points, the s&p increasing .12% and the nasdaq up 4.82. that's because people not only don't believe this rally, they think it's on its last legs, at all times. and that when it ends, it will repeal not 4% or 5%, but it's going to give up the whole shebang. first let me tell you what i told my newfound friend after i gave max the two bucks for the extra large java with just a little bit of milk. i answered oh, yeah? the day of reckoning? guess what, pal, because i always pal people if i'm not buddying them or chiefing them, guess what, pal, we already had it. you might have missed it if you blinked. it was the hideous move from the dow down about four years ago.

now that was one serious day of reckoning, captain. with that i then disappeared in my building and began to ponder how i could have answered this gentleman if i had a little more time. now the reckoning we had circa 2008 to 2009 is more like the flu shot i got yesterday, and i hope you're going to get one, especially if i work with you. it doesn't ensure you won't get the flu any more than the collapse of the market between 2008 and 2009 ensures we won't get another crash, but it does make it seem a little less likely. plus i never want to seem complacent let alone be complacent. stocks are dangerous assets. and they get more dangerous, not less dangerous as they go higher, if the fundamentals don't keep pace with the share prices. we've got lots of issues that could go the wrong way and they might produce pretty big declines. what i think has changed in the last few months is that these problems won't produce a reckoning, meaning a wholesale rollback to prices, meaning everyone who missed out on the incredible rally seeming smart

and smarmy and self-satisfied. more important, what i think has really changed in the last few months is that we no longer have this unknown bogeyman hiding in our closet without a night light to make us less afraid. we're no longer confronting some insurmountable series of issues that make it so we have to consider that every day we come into work could be our day of reckoning. hey, look, that was the case just a few short months ago. used to get up at 3:30 or quarter of 4:00, and i wasn't looking at my fantasy league. i was looking at europe. what has changed? why is the reckoning seemingly off the table? simple. i think we've gone from the unquantifiable to the quantifiable. more of a laundry list that has to be dealt with to get through the day every day. first we've got europe. for more than a year all that really mattered was europe. we have policy makers who were raising interest rates, going into a severe recession. oh, man, that was really brilliant. people even thought they were right. [ booing ] we had governments that had no

idea what they were doing. we had discord that made it so everyone expected the euro was on its last legs and there was some secret printing presses somewhere in germany that were ready to start stamping out some good old-fashioned deutschmarks. and of course we had the domino theory. meaning as greece goes down, so does spain and italy, two gigantic markets that would take down the whole world's finances. now, look, europe is still very shaky. okay, it is shaky. and the economies over there, shambles. but we finally have responsible policymakers running the most important countries, italy and spain. we have a central banker able to convince the rich countries in europe to back the poor ones. at the same time safeguards are put in place to buy the sovereign bonds of the most troubled nations, which has led to one of the greatest stock market rallies by the way, led by the banks of all regions of europe. it's been an incredible rally. there is now more money -- there is money galore where there used to be no liquidity. problem solved? no. doomsday scenario off the table.

remember timothy geithner said there would be no more lehmans? doesn't look like there is going to be. second we've got the china issue. i'm going to have more to say about the people's republic later in the show. the fear is china has been on the verge of a economic collapse and will take the rest of the world with it. i think china is problematic, but i think it's a dealable problem, not something catastrophic because the chinese central bank can cut interest rates about 30 times before it runs out of room to ignite that economy. unlike europe and the united states, the policy makers in china have plenty of room to maneuver, and that fact seems to be endlessly forgotten by the bears who point this out daily. sure, many of their banks are bankrupt. i'm not saying that i don't trust -- hey, they built a ton of bridges and tunnels to nowhere, but never underestimate the problem-solving power of cash on the balance sheet. and china's got cash up the yazoo if not the yangtze for good measure. then there is the united states.

here we have the fiscal cliff. the fiscal cliff is something we have moderate control over because it's a question of political will. it can be resolved. anything that can be resolved will be dealt with in some fashion. and i think that's why the stock market has been climbing despite the obvious chasm ahead of us. sure, there are other reasons that could cause the selloff stocks. stocks have had a big run. valuations getting stretched if we have little growth ahead of us. twice in the last month federal express, man, they disappointed. twice, twice. it's been a real tale of woe. [ crying ] and what has happened? frankly, nothing. stock's pretty much unchanged. tonight we got a big disappointment from norfolk southern, the railroad. while the stock is being hit after hours, you know what? i bet you buyers come in and snap it up tomorrow at what will be considered real bargain prices a few weeks from now. that's because in this tape, in this market, disappointing earnings don't necessarily produce dramatic and lasting moves down for high quality stocks, emphasis on high quality. that emboldens buyers who would otherwise be on the sidelines. plus, ben bernanke, the federal reserve chairman has said look,

i'm not going to let interest rates go higher. so go out and find an income alternative like higher-yielding stocks while we wait for the economy to catch fire that was one of the things in peanuts where it's in his head. but that's what i read it as. sure, immediately people come up with another reckoning issue, inflation, which is something you risk. we heard from the naysayers that bernanke is going to drive up the price of oil and gasoline. what is happening in the interim? how about three days of the sharpest oil declines we've seen in recent memory. the inflation theory isn't playing out in practice because we have higher inventories of the stuff than we thought. it's just theoretical nonsense. when you put it all together, you tote up the list you get a litany of worries about regions' earnings and inflations while fraught with the ability to disturb the markets, do not add up to a day of reckoning. when you know the problems, when you see them coming you prepare for them. and that's exactly the opposite of what happened with the real days of reckoning not so many years ago. like i should have said this

morning, we have some big worries and they can produce some big percentage declines if they go wrong. but these issues represent price risk to stocks, not systemic risk to the world of finance. and that's why i don't think the next reckoning beckons any time soon. stephon in massachusetts, stephon? >> caller: a big quinnipiac university bobcat boo-yah to you, jim. >> man, i'm loving that kind of boo-yah to start the show. what's happening? >> caller: not too much. i'm a young college investor. i've been looking at groupon. i know they had a big day today and came out with the new payment plan. i just wanted to get your take on the stock. >> every dog has its day. [ barking ] zynga, facebook, they met with unrelenting selling. facebook i believe had a fabulous august. that's the word i'm getting, and that's why i think the stock is creeping up. they've done some remarkable things now with apple. facebook i think has made a stand here and is going to go higher. groupon, i don't know.

i mean, it's come down so much that things can bounce. zynga, same thing. i don't like these stocks, but i do accept the fact that they can bounce. al in wisconsin. al? >> caller: boo-yah, jim, from waukesha, wisconsin. >> love it there. >> caller: thanks for all your help for us small investors. >> thank you. >> caller: my question is about questcor pharmacy company. >> yes. >> caller: took a big hit today, down about 50%. >> well, i got to tell you. we said last week that we thought that medicare, when medicare backed its drugs, that meant that the bears were going to lose and the bulls would win here. we said it was a very difficult situation. now aetna today said some things that made it so that this less than 5% client would not necessarily be paying for what medicare said it would pay for. here is what i realized. this stock is such a battleground that the shorts came in and blasted it down. longs panicked. if you want to buy it, you have

to use deep in the money calls. this is one where frankly i did. sometimes you got to say i underestimated. i thought that medicare was more powerful than aetna. the sellers today said that aetna was more powerful than medicare. it didn't make sense to me. but then again, the stock is up huge, huge, huge, so i understand. but it is beyond comprehension. day of reckoning? not so fast. but don't let that fool you, okay? some issues can still go the wrong way. but this time it's about price risk, not systemic risk. they're very different things. "mad money" will be right back. >> coming up, juicy returns? the headlines are still fresh after one ripe produce company sold off a branch of its biz. but its stock failed to react. upon further review, cramer thinks this one could still provide some fruitful profits. and later, sky's the limit? salesforce has been heading skyward as cloud computing continues to rise in prominence. but can it continue to fly as it

approaches all-time highs? don't miss cramer's exclusive with its ceo from the floor of the dreamforce conference. all coming up on "mad money." >> don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer at #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 ] this is rudy. his morning starts with arthritis pain. and two pills. afternoon's overhaul starts with more pain. more pills. triple checking hydraulics. the evening brings more pain. so, back to more pills. almost done, when... hang on. stan's doctor recommended aleve. it can keep pain away all day with fewer pills than tylenol.

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♪ it's bananas, b-a-n-a-n-a-s >> after the incredible rally we've had in this market, we can't go picking at every stock that is up a bit. i'm not making huge revelations here. everybody knows that you're supposed to buy low and sell high. but it's really hard to buy low when most quality stocks have already had such extraordinary runs. that's why at moments like these, i like to review lesser quality stocks, the poorly managed companies that have been written off by most investors. in other words, i like to throw

out the red flag and put these companies under further review to see if there might be perhaps some real hidden value. somewhere, somewhere value that we missed. and sometimes, very rarely, though, you'll see one of these historically mismanaged companies virtually jump up and shout, hey look at me, look at me, i've changed! i've got my act together! i'm actually worth buying. and that's what dole food company, d-o-l-e, is saying to me right now. dole, which has been horribly managed ever since it came public, one that i hated from day one, is screaming that it has changed its ways with the announcement yesterday that the company is selling its packaged food biz for $1.7 billion in cold hard cash, not pineapples. with this deal, dole is saying

it will finally do what it takes to create value for shareholders. if we take a look, give the dole a little shot here, we see there is quite a lot of value to unlock. so that's why tonight i am saying that upon further review, dole is now a buy. and i am not a replacement ref. so i might actually be making the right call. you should know that i had completely written off dole as a farce at best after it came public in october of 2009. and at the exact same time as the ipo coming to a convertible bond offering that practically assured the stock would be a real stinker. people like to sell against the convertible. it really weighs down on it. sure enough, dole's offering price at $12.50. within a few months it was down to eight bucks. i gave up on dole. i figured it would never change its ways as its chairman david murdock is an eccentric 89-year-old man who also owns 60% of the country.

he's one of the wealthiest guys on earth. this guy is a health nut. hey, says he wants to live to be 125. more power to you. what is not so okay he decided to make dole's prices healthier without raising the prices, gives his employees subsidized health-oriented cafeteria, free access to gym including subsidized personal training session. that's terrific if you're a dole employee. i don't know. it may not be so great if you don't make a lot of money for shareholders. this isn't costco. as a matter of fact, this is just the tip of the iceberg. iceberg lettuce, get it? ho ho! when you -- i'm like a 67-year-old guy. why am i doing that for? when you dig deeper, some of the stuff really does get crazy. thanks to murdock, dole food company is the proud owner of the world's largest maze, the pineapple garden in hawaii. now we're entering real howard hughes territory here. how about this one? the pineapple express. i thought that was some sort of seth rogen movie. >> all aboard!

>> it turns out it's a 20-minute train tour of dole's hawaiian plantation. they practically built a whole theme park centered around fruits and vegetables. now it's actually sort of impressive in a michael jacksonesque kind of way, but it's not what we want necessarily from a publicly traded fruit and vegetable company that isn't doing that well. so why am i telling you dole is worth buying? mainly because of this asset sale the company announced yesterday where dole is selling its packaged foods and asian fresh produce biz to itochu for $1.7 billion. the stock spiked on the news but it actually closed flat yesterday. you know, that seems kind of nutty to me. dole should have been up big, i think. i think it should have stayed there. this simply calls attention to the fact that the market has been ignoring for a long time now. dole does own terrific assets. this is another case where some of the company's parts is worth a heck of a lot more than the current share place. the problem is dole's chairman/majority shareholder

has been on extended if not permanent intellectual vacation. but lately there have been signs where murdock's influence is waning. we didn't know whether that would be the real deal until the company confirmed it yesterday by selling off the packaged food business. now that dole is selling assets, the company has a potential to unlock a lot of value. it looks like dole could be broken into pieces as murdoch turns 90 next april that would be terrific for shareholders. plus it has every incentive to make stock prices go higher. it's backed up by shares in dole. better tell he is telling them to focus on results rather than fooling around riding on the pineapple suppress. murdoch is buying stock. you don't buy up stock if you already own 60% unless you think the stock is going even higher. so how much is dole worth if it finally was managed like a real company rather than a super rich guy's play thing?

first the packaged food business that dole just sold for 1.7 billion smackers net proceeds from the sale translate into $15.70 per share, money dole can use to pay down its substantial debt load. that leaves dole with its fresh fruit and fresh vegetable divisions. together the remaining portion generate about $250 million. hey, in a whole foods world, we like this business. if you give this side of the business a similar valuation to its peers, you get something that could be worth about $1.56 billion. that's $16.73 a share. remember, there is a lot of debt, so don't get too excited. we add the value of the remaining business with the value of the itochu bill. we get a stock that could be worth $16.21, a substantial premium from where dole is trading right now. no it's not $25, but it's a lot. that's without even counting the upside from dole's unused land assets which could get us much higher. the company owns 113,000 acres of land all over the world, including 25,000 acres in oahu.

the aggregate non-core assets are about 25 million. it could be conservative. this could be something like the land clooney fought the family members over in "the descendants." plus, larry ellison just bought the hawaiian island of lanai, which i love. maybe somebody wants to buy dole's acreage to keep up with the ellisons. we have a ellison style transaction, and that gets dole to $21.72 cents. here is the bottom line. i'm not saying dole is going to go to 21 overnight. the company may not even be able to get there at all. but i am saying dole's assets are worth a heck of a lot more than the market seems to be giving them credit for. i believe the time to buy is now. this is not about being bullish on bananas, it's about recognizing a clearly undervalued company that is at last getting its house in order. let's go to marie in kansas, please. marie? >> caller: yes, jim. as you know, we've been stricken with droughts here in the midwest. and i'm wanting to know what you

think of conagra, cag. buy, sell, or hold? >> i think it's okay. it's got a good dividend, being paid to wait for some sort of value to be brought out. the brands are just okay. but i'm never going to snarl at a pay to wait situation. let's go to john in my home state of pennsylvania. john? >> caller: very good, big boo-yah from downingtown, pennsylvania. >> love it. >> caller: i would like your opinion or prospects on hsh, hillshire. >> you know, i think it's good. a lot of people worry about hillshire because of raw costs, because of the drought just referenced by the previous caller. i think the stock situation is good. i want to do a revaluation in light of the drought because we liked it as part of sara lee. let me go back over the numbers and see if they still make sense. frank in north carolina, frank? >> caller: yes. >> frank, you're up. >> caller: hi there. >> hi. >> caller: i wondered what you thought of the future of the dividend on roundy's, rndy?

>> roundy's is a stock we spent a lot of time on that you just got to say i made a mistake. we thought they had a good dividend, the company was doing well. i went against the secular trend against supermarkets. this is not good. i have said i think i made a mistake in roundy's. i don't see anything that tells me i haven't made a mistake. i have to own that mistake. i have done a lot of soul-searching today because of questcor. i thought that would be okay. these remind me, be humble, there are a lot of things that can go wrong in this market. i have isolated a couple i made mistakes on. i'm throwing the red flag. under further review, i think dole is too cheap at these prices. after the break, i'll try to save you or make you some money. coming up, sky's the limit? salesforce has been heading skyward as cloud computing continues to rise in prominence. but can it continue to fly as it approaches all-time highs?

don't miss cramer's exclusive with its ceo from the floor of the dreamforce conference.

we've now entered the part of the year that has historically been the strongest

season for tech. normally this is when you double down on all things tech. there is just one problem. when a moment where the future of tech looks a heck of a lot different than recent past, it seems like downright untouchable. the part we like and that we can own is all about mobile, social, and cloud, the three, the three together. if you want to get a glimpse of that future, the company to talk to is salesforce.com, crm. it is a service player that practically invented cloud computing. every year this company holds a conference, dreamforce, based out in san francisco where they talk about the future of the industry, laying out a bold vision for where the business is heading. the conference is on right now and runs through thursday. this year upwards of 90,000 people are attending. hey look, this is a huge deal, bigger than the launches that steve jobs used to have that is written about so well in walter isaacson's fabulous book. salesforce.com has tremendous long-term track record of creating value for shareholders. it up more than 600% since marc benioff came on the show in november of 2008. he told us everything would be okay, bold call. even though the most recent

quarter which reported late august was excellent, many people think it's just too expensive. and that's why it's only up 16% over the last 12 months. could dreamforce be the event to get salesforce really moving again? let's check with marc benioff, the visionary co-founder, chairman and ceo of salesforce.com to hear more about this conference and the future of his company. mr. benioff, welcome back to "mad money." >> thank you so much, jim. it's great to be back with you. >> thank you, marc. now i know that each of these dreamforces have a particular theme that you deliver. you talked briefly. i didn't give you enough chance to talk, i was so worried about the numbers of the quarter, about salesforce marketing cloud. i understand that's the keynote. can you give us a synopsis for people who still don't understand what the heck you do? >> well, jim, as you know, we run hundreds of thousands of sales organizations all over the world, helping them to manage and share their data more efficiently. and we also introduced several years ago our blockbuster product the salesforce service cloud, which does the same thing for customer service organizations. well, today we introduced the

salesforce marketing cloud. and the reason why that's important, jim, is that by 2017, chief marketing officers are going to spend more on technology than cios. and now we're giving them a cockpit so they can fly their fighter, their marketing fighter, if you will, into this incredible new marketing cloud. >> all right. you've got some terrific stories on your website. i'm going to drill down on two of them, because they're companies that lately people think have faltered. i want to know what salesforce does for them. chipotle and dunkin' brands. how does salesforce make those companies better? right now they've stalled out, don't know what's going on and what are they going to do to reignite growth? >> our big message of the show is that it's time to connect with your customers in a whole new way. everybody realizes it's a customer revolution that is happening right now in the world because customers have the opportunity to connect with you and your company as never before. we had unbelievable keynotes today from companies like

coca-cola and facebook and general electric. all of them are building products to deeply integrate the customer relationship into their core products. it's a customer revolution. it's an employee revolution. it's a partner revolution. it's a product revolution. if you can combine all those things, you're going to have a much better relationship with your customers, and that's what we're doing at salesforce.com. by introducing the marketing cloud, we're able to take that up one more level because we're bringing in all the marketers in the company who need that information to be able to tune social marketing, the advertising, the very nature of what is out on the network so that those customers can connect with us in a much deeper way. >> ever since i had millennial media on, when i go to every one of these companies, they have a facebook page. what i'm thinking now is the companies are more in touch and they know from their facebook page what people like and dislike. where do you guys fit in? why can't they just look at the facebook page?

why do they need you? >> i was just with george zimmer, ceo of the men's wearhouse. >> good quarter. >> he has a brand-new store in san francisco, and he has hangers in the store that are directly connected to his facebook page and the number of likes that he gets on each one of the products shows up directly on the hangers. so when the customers are walking into the stores, they can see which are the most popular new product and which are the products that customers really like. that's amazing, jim. >> that's very cool. i didn't know that. look, what i always hope is one of these guys will come on and say listen, one of the reasons why i had a great quarter was because of this new thing that salesforce helped me with. i know people come on and say it with s.a.p. you are up against and also a collaborator with some of these companies like s.a.p. oracle reports this week. do you regard yourself a collaborator with everybody or are there some companies that are just plain your enemy? >> well, these companies have tremendous back office, some built on s.a.p. like coca-cola,

some built on oracle like virgin america. in fact we had the ceo of virgin america here. they're building a new seatback, jim, where you're going to be able to collaborate and exchange information with the virgin american team while you're in the air. so if you're late for your flight, you're going to be able to let that ground staff know, or they will proactively reach out to you. they'll send maps to you. they'll make sure that you're settled, that you're ready, that you know exactly what is going on, so when you get to your destination, they're ready and everything is set for you. that's the next generation of connecting with your customer in this realtime environment. >> i see g.e. speaking. coca-cola speaking. there are 90,000 people out there. what good does it do for ge and coke? aren't they just getting more business for salesforce? >> we're building products with general electric, jim. you may know the next generation of gen-x engines are built integrated into salesforce chatter. they're able to collaborate between the engine and the

g-engineer as well as the customer engineer. by creating that triangle, the engine, the customer engineer and the customer, they're able to collaborate in a whole new way that gives g.e. the ability in realtime to know exactly what is going on with their products and their customers, and give them a complete institutional memory around that engine. >> yeah, but if i'm a competitor of g.e., g.e. just gave up one of its secret sauces. >> well, what you see, jim, that the opportunity today is to do exactly that, to build these connected products. you mentioned coca-cola. they have their brand-new machine here who builds custom coca-cola. we've been able to tie that directly to facebook, back to coca-cola's systems to give them more understanding of their customer and what that customer wants on a daily basis. >> well, i guess what has always been the disconnect, and i know that you know i'm a huge backer

of salesforce.com, is that these things somehow don't seem to translate to the kind of hard numbers that some of these analysts want. and yet you're talking about major american companies, major worldwide companies doing business just with you. what is the disconnect between what they're looking at, the four walls of the canvas, and what you've got going out there? >> i don't think there is any disconnect, jim. we have 37% growth in our last quarter in constant currency. we're the fastest growing of all the large software companies. we're now the fifth largest by market cap. but if you look at the top 20 software companies, nobody is growing at this rate, and the reason why is this. companies, our customers, they need to connect with their customers in a new way. they need to be able to connect with their employees, their customers, their partners and their products. no one else is delivering these kind of dynamic solutions for them, and we are. and that's why we're so excited to be here at dreamforce. >> one last question. i got to ask. there's got to be something you're concerned about. you told us last time europe is going great. you've got all these new customers.

look, nobody is perfect. i mean what is -- what are you worried about out there? >> well, it's san francisco, you know, and i was worried about the fog. but, you know, fortunately we got some great weather here, which is awesome because we have over 90,000 people registered to attend this conference. it's now the largest, you know, tech conference in the industry. we got good weather. that's all we care about right now. >> well, that's a high quality issue to bring up. marc benioff, look, you got to 90,000. i didn't think you could get it. you got the numbers. i was skeptical. what more can i say? at least i want people to understand how you're doing it. thank you so much, marc benioff. have a great rest of your festival. >> jim, we want you here next year at dreamforce. you got to see this yourself. >> sounds like a compelling offer. thank you, marc benioff, chairman and ceo of salesforce.com. we have to hold him accountable on some of this business. but i got to tell you, even though he's got a lot of doubters, it does sound like a lot of big companies are endorsing crm software. coming up, the clock is ticking.

call cramer at 1-800-743-cnbc to find out how to fire away at cramer on the "lightning round." can he withstand your thunderous onslaught of stocks? and later, how do your stocks stack up in a mystifying market? cramer makes sure your portfolio makes the grade on "am i diversified?" all coming up on "mad money." now, that's what i call a test drive. silverado! the most dependable, longest lasting, full-size pickups on the road. so, what do you think? [ engine revs ] i'll take it. [ male announcer ] it's chevy truck month. now during chevy truck month, get 0% apr financing for 60 months or trade up to get the 2012

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it is time! it is time for the "lightning round" on cramer's "mad money," they say the stock -- >> buy, buy, buy! >> sell, sell, sell! >> -- and then the "lightning round" is over. are you ready skee-daddy? start with mike in delaware. mike? >> caller: ba-ba-ba-boo-yah, jim. how are you doing? >> oh, man, i always love a stuttering boo-yah to start the "lightning round." how can i help? >> caller: awesome. alexion pharmaceuticals, alxn. what do you think? >> this has been one of our favorites. it is a true high-flier. at these prices, you got to start saying okay, listen, how

can you like it as much as we did earlier. but autoimmune deficiency stocks that get involved, the companies that do this kind of targeting -- >> buy, buy, buy! >> we like them. carol in new jersey. carol? >> caller: hey, cramer, how is everything? >> not bad. how are you? >> caller: good, good. i'm calling about morgan stanley. what do you think about the stock? >> i'm not crazy about it. i'm not crazy about the investment banking business. i'm not crazy about the security sales business right now. i'd rather own a plain vanilla bank than morgan stanley. larry in massachusetts? >> caller: yeah, this is larry from salem. >> all right. >> caller: how are you doing? i need to know about vale. >> i like it. my charitable trust bought the stock all the way down. why? because china we think starting to show signs of turning. wait another 50, 60 cents and then join the trust.

mag in california, mag? >> caller: yes, high, this is mag. >> how are you doing? >> caller: good. how are you? >> all right. >> caller: i have a question about mt. >> certainly. >> caller: arcelormittal. >> i don't like the steel stocks. i just don't like it. >> sell, sell, sell! >> nucor again saying things aren't that good, i can't take the group, just too hard. let's go to brook in alabama. brook? >> caller: jim, a big alabama roll tide boo-yah to you. >> roll, crimson. what's on your mind? >> caller: delta airlines, dal. >> the oil goes down three straight days and the airlines get a rally. and what do you have to do every time you get a rally in the airlines? >> sell, sell, sell! >> chad in hawaii. aloha, chad. >> caller: i'd like to say thanks for your last advice for me.

>> oh, man, i appreciate it. >> vivus incorporated, vvus. >> i think there is too much competition. i don't like it. take profits and ring register in these diet pill stocks. mike in pennsylvania. mike? [ buzzer ] >> caller: how are you? >> pretty good. >> btu, peabody energy. >> oh, man, i was going over my mistakes the last year. to get bullish on call after fukushima is a mistake and i own that strength. peabody on any strength in china is a sale, not a buy because the epa here is shutting down coal. how about dave in michigan. dave? >> caller: hey, jim, how are you? big detroit red wing boo-yah to you. >> man, detroit real estate coming back boo-yah back at you. what is going on? >> caller: i've got a question about pfizer. you said about doing your homework. i noticed -- i've been reading they are going to split off their division. and i wonder if pfizer is a buy

right now? >> yes, i think it is. i think pfizer can go up over time on that. it's a very good stock. i also like a lot of big pharma. now don't forget, celgene is really one of my favorites in the group, and that's doing great, as well as gilead. let's go to jack in florida. jack? >> caller: yes, opk health. >> we had phil frost on the company. not been a big performer, down 10%. i want bill frost on the show before i hit the buy button because there is just too much heat around this small cap stock. and that, ladies and gentlemen, is the conclusion of the "lightning round"! [ buzzer ] >> the "lightning round" is sponsored by td ameritrade. [ male announcer ] if you believe the mayan calendar,

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although i said earlier that the day of reckoning isn't coming any time soon, that no way means this market is immune to a roadblock here and there. that means we have to be a little defensive. unlike four years ago, we can better see the problems that are likely to send the market down, and therefore we can prepare our portfolios for that disruption. how do we play defense? diversification. that's why every wednesday we play my fave game, "am i diversified?" this is where you call me, tell me your top five holdings, and i tell you if your portfolio is diversified enough, maybe mix it up a little bit. you all have opko, or you all have heck. that's what people are doing wrong. they have all heckmann. i don't want people to do that. our first tweet from @jackomas23 he says #madmoney, am i diversified? and he's got apple, amazon, aig, nike, jpmorgan. this guy's got a lot of my -- thanks for helping out the

little guy. you're quite welcome. let's take a look at this. jp morgan, one of the largest banks. amazon is a retailer. aig, this insurance company, this is technology, apple. and obviously that's sporting goods, shoes. all right. i am going to say that you can't own both jpmorgan and aig. that is not diversified. i think that this gentleman needs a health care company, and therefore i am going to add -- we just praised pfizer. let's give him pfizer, a little more balance there. and i would prefer to sell jpmorgan to aig. let's go to andrew in texas. andrew? >> caller: boo-yah, jim. >> boo-yah, andrew. >> caller: all right. i've got apple, aapl, bristol-myers, bmy, gld, aig, and wells fargo, wfc. >> let me take a look at this. oh, boy, a lot of controversy here.

aig and wells are both financials. we can't own two financials, even though one is insurance and one is a bank. what a tough call. i'm going to say sell the wells and keep the aig. i'm going to give you a technology stock that i like. i'm going to tell you to buy broadcom, downgraded today. i thought that was a stupid downgrade because it was connected with apple. oh, darn it, i can't do apple and broadcom. all right, all right, all right. let's do weyerhaeuser. that's right, we need a housing play. came up with toll brothers and lennar today. we have a pharmaceutical play and a housing play, because the housing plays are red-hot. and then -- >> hallelujah! >> can't have an insurance company and a bank. you can't, you can't, you can't. ken in texas, ken? >> caller: jim, a big boo-yah from texas, baby. >> i like that spirit, right? that's what we really come to the show for. what's going on? >> caller: real quick, two words

for you, though, jim, roll tide. let's get started, jim. i got mcdonald's, mcd. british petroleum, bp. walmart, wmt. oracle, orcl. johnson control, jci. [ buzzer ] >> roll tide from texas. hmm. hook 'em, 'bama. all right. here we go. johnson control starting to move up today. i think the parts are worth more than the whole. it's an industrial. walmart, a retailer. the stock on fire. bp a second rate oil company. it's an oil company. mcdonald's, fast food. quick service. and oracle reports later this week. i think it will be fine. i got a tech, i got a retailer, i've got an industrial company, i've got a restauranteur, and an oil company. and that is exactly what we wanted. >> hallelujah! >> no changes need to be made. and thank you for playing "am i diversified?." jim cramer, looking out for you. >> thank you, sir, for helping

us average joes on the road to financial freedom. >> thanks for all you do for us small investors. >> thank you for helping all us home gamers. >> thank you for sharing your knowledge with the everyman. >> i love doing it for you. any time someone says thank you, it's great. >> anywhere, any time, any place. answering the call of cramerica, weeknights 6:00 and 11:00 eastern on cnbc. -[ taste buds ] donuts, donuts! -who are these guys?

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everybody's worried about china. [ gong ] >> so few people trust the numbers, the chinese stock market has been in bear mode for ages. people as smart as jack welch, the former ceo of general electric saying china could shrink to 5.6% growth, amazing for most countries but only about half what we used to expect from the people's republic of china. especially when japan considers to be on the verge of banning chinese goods and europe seems to have stalled out entirely. political systems is a mess. we don't even know who is running the show over there. funny thing, when everyone has decided to write off china, maybe you need to take a second look, see if the judgment is premature. last week i was struck by comments made by mike sutherland on the show, a major exporter of mining machines to china and a company with huge after market business repairing and replacing parts for existing machines. sutherland told us that china after a dramatic decline in electricity use this year has now seen two months of stable production. i almost fell out of my chair.

the electric figure runs totally against the grain, including some of the reports we just got from fedex. we know that much of the data coming out of china comes direct from the communist party and therefore has the potential to be, ah, unreliable. but sutherland points out that his figures come from private companies, not state-owned enterprises. so therefore they have more reliability. business is improving. look, i was thinking that the electricity numbers could be outliers. that is until i saw a sudden move up in the baltic freight index this week. that's a very good measure of chinese commerce. after weeks of going straight dow, the key shipping index has reversed sharply to the upside. copper is back. the iron ore stocks are roaring too. now, look, i got enormous respect for the bears on china, led by tomorrow's "squawk box" guest jim chanos. he is one of the brightest people i've ever met.

i don't trust communist capitalists. i have no chinese stocks. i have from time to time, but no chinese stocks i think you should buy. i also think the chinese interest rates are way too high. the stimulus is too small to matter. all that said, the possibility that china isn't falling off a cliff could be good news for the world economy. if china stops decelerating, it would be a pleasant global surprise. you know i think the united states is the best place to invest in the world. i worry about europe's recession, japan's secular decline, india's inflation, and yes, china's deceleration. not to mention our own looming fiscal cliff. we could conceivably go to new highs. i think the u.s. issue is the most likely to be solved because it's about political will. but these green shoots out of china, they tell me stop being as negative as i've been about the prc. china just might not be the train wreck we all think it is. stay with cramer. does the market have you stumped? no fear, cramer is here. just e-mail him, madmoney@cnbc.com. uh, i'm in a timeout because apparently

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oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. now save 50% on banners. all right. after the close, bed, bath & beyond did not report the number people wanted. remember, it was 73 and went down to 59 and now it's given up a lot of the gain. norfolk southern, a lot of coal there. the stock is down badly. norfolk southern will be the tale of tomorrow.