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's nuts! they're nuts! they know nothing! 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 trying to save you some money. my job is to educate you, so call me at 1800-743-cnbc. what happens if we actually get some good news in the market? you get what we had today when a key u.s. manufacturing index number showed an economic expansion. not a contraction. the dow rocking 78 points, the

s&p gained and the nasdaq declined, and the averages were higher earlier in the day. now, we have had some decent data, housing numbers, auto sales, retail purchasing, but the figure from the institute for supply management forced money to flood into the market at the beginning of the day. rather than flowing out of it. breaking the awful monday tradition. and the tide did hold up for most of the session. the bullish data coupled with last night's positive news out of china, the first month to month industrial gains converted some bears into bulls and made all the difference. tonight, i want to translate this news into a context that you can understand. maybe even make some money with it. because it's right at the heart of why the market keeps rallying. we began q4 like we did for the last three quarters even as so people believed in the advanced still. you hear the phrase don't fight the fed. when i first heard it 30 years ago i had no idea what it meant. fight who? isn't this a business where we look at the cold, hard numbers and figure out whether the future is going to be brighter and then determine how much we

should pay for those earnings down the road? the answer is yes, sometimes that does work. but this is not one of those times. when the federal reserve talks about getting the economy moving by any means necessary it is really talking about getting more data like today's terrific ism number. given that the europeans and chinese are doing the same thing, if you're betting against the market you're fighting major central banks around the world that are doing their best to generate good data and sometimes their best is good enough. why does this overused cliche matter so much? ben bernanke said he's going to continue to buy bonds to keep interest rates down, so that this purchasing manager's number won't be an aberration. when you examine the fundamental of individual stocks, you are playing what's known as the micro. when you take into account the big data numbers like the purchasing manager's index, you're making a macro analysis. again though like the idea of fighting the fed this micro/macro dichotomy might mean

nothing to you unless you took ec 101. let's put it in terms that everybody can understand. anyone who's been to a museum or taken an art class knows that for years artists tried to paint pictures as if they were perfectly -- let's say they tried to capture the exact look. like a kodak camera. okay? that's called realism as the painters are indeed realistic. but as art progressed in the late 19th and early 20th century, you tend to get more -- let's say impressionist, less realist and then ultimately expressionists as the artists struggled to get beyond the four walls of the canvas, they took impressionism to the logical conclusion, coming up with spots and dots. my modern art class in college was affectionately known as. hmm, okay. what does this have to do with investing? you want to consider the

microrealism. you analyze a painting by how well it captures the actual look and feel of the subject and that's what happens when you come up with the most accurate valuation of the stock. but the abstract artists think the realists are more difficult to understand and let's say they're factoring in other larger forces, rather than focusing on the company by company details. the result? the abstract painters are like the macro guys. the buyers of stocks who base their decisions on the ethereal moves of the fed, something that can't be pinned down by the realist thinkers. they imagine things, these impressionists. often bullish things that the rigorous realists can't see. realists are valued highly in the art market. moreover, many fans of old school paintings can't

understand abstract art. in fact, they think it might not be art at all. many of them think it is worthless. i mean, you can only think, hmm, is that upside down? jeez, you know, well, i mean, this could be upside down. this, i don't know. there are other times when the expressionists, artists like jackson pollack or mark rothko have tens of millions more worth, and picasso churned out a lot of picassos. where we value the imagination with the central banks of the world, more than we value the trap thinking of the realists. of course, it's an ongoing tug of war as we saw at the end of the day when the realists pushed back because of the fundamentals of the individual companies. they simply aren't good enough for most money managers. plus, the fact that apple was down. that tends to cast a pall on the whole art show. when norfolk southern or federal express disappoints we think what they were thinking? the realistic thinking of the

market, rembrandt is far more grim and accurate than the abstract view. but when we get a robust number, that's a validation of the prices they're paying for modern art. but there's nothing they can do about it other than rail at the gains and portray them as unrealistic and unsustainable even though they take them at the bank. here's the real difficulty for the realists who are sticking to their guns. the stocks that rally tend to be doing the worst, stocks like the banks with pathetic earnings or the oils which need a much stronger global economy and higher oil prices to meet the expectations or the coppers or the aluminums. i mean, at one point that was leading us all day. unlike the art market, we can bounce back between higher values for the realistic versus the impressionists. but the one thing you need to know, there's no right or wrong. there is no judgment to be made by you about whether you hate the modern art stocks or totally embrace them.

i for one love cezanne. what matters though is trying to figure out which art work's drawing the dollars right now. if you want to make money in the market we have to recognize which school of thought has the edge at the moment and just run with it. i learned this lesson the hard way. at various times in my career i refused to recognize that the fed can raise the stocks and bet against the fed and only to discover when macro data turned positive, like today, i missed the entire move as i cherish my out of date rembrandt view. of the fundies. i'm not a curator of museum of stocks. however, i'm a stock art dealer. all i can tell you is that you have to value both schools. the microrealists and the macro impressionists and accept the valuations as actionable even if you disdain them. you leave your real taste to the art galleries you frequent, not the stock galleria. here's the bottom line. when you fight the fed you're

fighting the values the marketplace is putting on the impressionists and the expressionists, even those who paint in spots and dots. that's fine. nobody says you have to buy. but if you want to make the most money you need to recognize on a day like today, the moderns did end up being winners and if you fight the pricing, you may just be fighting the history of when the fed does its best painting. even if it is by the numbers. eddie in new york, please. eddie? >> caller: hi, jim. this is eddie from brooklyn. >> i was in brooklyn last week, i love it there. >> caller: okay. i never miss your show. but i have a question for you. what is your opinion of leg now that they're working with j.c. penney? >> well, they've been a terrific performer. it's in the bed business. and it's got some automotive.

this is a stock that herb greenburg and i have agreed on. really well run company and i value his judgment on whether a company is doing the right thing or not. let's go to joy in my home state of new jersey. >> caller: how you doing? >> real good, how are you? >> caller: i'm great. well, i became interested in generack holdings but i figured there would be disruptions in the power grid. i gave it a miss and it's had a great run. so jim, i'm just wondering if your opinion is it a buy at this time? >> i don't know. i don't know. i always presumed if you wanted to do portable generators the only play in town is cummins. we have to find by thursday whether this is a bull or a bear. i promise to get back to you. let's go to brindell in illinois. >> caller: hey, we subscribe to your newsletter and love it.

you're the information highway to investing. your past recommendations for farrow gas and we bought it, and i bought it at $28 and i bought in again when it went down. right now i'm at about $23 a share. with the news today, should i hold it, what should i do? >> remember, i did sour on the propane, it became price competitive, all these companies are shooting each other to ribbons. the number was not good. i did not like the fact they had some other bit of news that was not that positive. that's it. i don't know how much more it can go down, but that's a cop-out for me. i don't like farrel gas anymore. i'm sorry about any confusion it may have engendered. picture perfect is something, this market is not. there's the real and then the abstract. today, the macro abstract. "mad money" will be back after the break. coming up, seasons greetings.

ahh, fall. apple picking, jack-o'-lanterns and the fourth quarter, and tonight, cramer is showing you how to get your portfolio set up to generate some holiday spending cash. later, war on the web? the internet tech giants have been locked in a battle for search supremacy but is it finally time to say yes to yahoo! or should you search for a different stock? cramer decides. plus, industrial strength? prologis is operating a portfolio of warehouses and commercial real estate around the world. tonight, cramer is talking to the ceo to get a real read on the economy, just ahead. all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on tweeter. have a question?

tweet cramer or send him an e-mail or give us a call at 1800-743-cnbc. miss something? head to madmoney.cnbc.com.

here's one area where playing football and managing money have a lot in common. we call it the check down. that's when the quarterback considers whom he should pass the ball to. checking down one receiver after another, find out who's open. who can score. and then hits him while he's uncovered. the best quarterbacks have a list in their heads about who to go to first, second, third, fourth, sometimes even fifth. money managers perform the same check down too. we just don't call it that. you can follow along at action alerts plus, and i do it for this show as i search for ideas that have enough merit to be noted on "mad money." how does it work? okay, today's the beginning of a new quarter but what like to do at the start of the quarter is look at the winners or losers to see if anything piques my interest. i used to do it with my hedge fund. the best performer on the dow on

the third quarter was home depot up 14%. however, we're no strangers to that thesis here and we already own the stock for the charitable trust, still like it, push it endlessly on "mad money." part of the check down is to find something new, home depot is anything but new. it is tried and retried but still true. how about procter & gamble up 14%. and i pulled down mcdonald, the ceo from the wall of shame. and he's introduced new products like those tipods that have taken a huge share. now it needs to rest or pull back. if it does, we'll be there both for the trust and for the show, but again, a well-covered name. how about among the dogs, tough, tough, tough. the number one loser is intel, down 15% last quarter. it sports a 4% yield, but i have no bull case for the stock.

they just pre-announced they're not in the fastest growing markets. behind that is hewlett-packard. nothing there. i just think it's the ultimate value trap. also ran pcs, declining printer business. second-rate consulting. no thanks. you know what i would rather do? i'd rather ground the ball intentionally than toss it to hewlett-packard. that's like a pick. nothing else in the dow to intrigue me, and then i checked out the s&p. chiefly looking here for laggards because the winner is pcs. sprint up 69%. tesaro is up way too much. you know i like sprint but to start a new position here without a new pull back seems ludicrous to me. under $5 that's a different story. how about the s&p's losers, amd down. and big lots up 24%.

let's say, amd no, investable. uninvestable. big lots is executing terribly. now, monster down 24 cent, i'm calling it intriguing, but still up 17% for the year. i remain concerned that the energy drinks are going to be called into question by the health authority. share loss, difficult to reverse. so my dow jones player is well covered. my s&p receiver can't get any separation. what's left? at this point in my favorite thing to check down is to see what index or group is so far behind the market that there's something that could play catch-up. with the market as hot as this one and i know people don't think it's hot but it really is, what i like to do is find a real laggard. almost every group is up. almost every one. lo and behold, not only is there an index that isn't keeping pace, there's one that's actually down. that's the transports. they were off at one point very badly today. that's a terrific opportunity in and of itself. i know if there's nothing in the other indices, my intended receiver is going to be in the transport group. but which one? they're all down a lot. all looking terrible. i shouldn't say all. some aren't.

first the airlines. i try to keep an open mind with this group. think of how terribly set-up the airlines are for the fourth quarter. you have a weak economy and high fuel costs. i don't think they come down. no to the airlines. trucking and freight, oh, man, with that preannouncement by federal express and then they gave a gloomy outlook, if fedex is doing terribly i don't want to buy united parcel either. they have gotten more and more competitive as the years have gone. conway has some potential. ryder plunged earlier this year. lower forecast that was breathtaking. i'm taking a pass on that pass, which brings me to the rails. oh, i like these stocks. unlike the perennially price warring truckers and airlines, they like each other.

one can imagine how much they'll save if they switch to the natural gas engines. they have little overseas exposure. they have been hit and hit hard. generally because they carry coal and agricultural products and specifically the norfolk southern gave a pretty nasty preannouncement. you should see something that positive happens and i don't see anything positive happening at norfolk southern. i checked csx. and i don't see any comeback there. not an option. that leaves union pacific. unlike the other rails, union pacific ships powder river basin western coal. that's the cheapest coal. so cheap that when natural gas goes above $3 like now and it's made a real beach head there, the utilities switch to this coal. they need fuel, and they'll go with coal. up has tons of auto exposure and

a lot of this is new. oil, as it's the one rail that's really moved aggressively in the bakken and the eagle ford patches. ones that lack much you get the oil to the market. i like that. i always like the fact that stocks come down to levels much cheaper than where it's been historically. as the company continues to reprice contracts higher that's able to raise earnings. union pacific it's open and the one i'm going to toss to. only if it's down will i toss to it. i'm worried about one defensive back out there and that's the chart which indicates that union pacific won't be able to hold on to the ball. otherwise i'll keep the ball myself. maybe dump it off into cash. remember, you don't always need to pass it. the bottom line, i have now completed my check down of fourth quarter opportunities based on the third quarter and i've limited it to one player -- the wide receiver that's union pacific. i'll go to him to pick up a quick six points or maybe more. after the break i'll try to make you more money.

coming up, war on the web? the internet's tech giants have been locked in a battle for search supremacy but after poaching one of google's top guns is it finally time to say yes to yahoo!? should you search for a different stock? cramer decides. later, industrial strength? prologis is at the center of the global supply chain operating a portfolio of distribution centers, warehouses and commercial real estate around the world. tonight, cramer is talking to the ceo to get a real read on the economy just ahead. all coming up on "mad money."

when a ceo does something incredible, we stand up and take notice here at "mad money." that's why tonight i want to give a big round of applause to marisa mayerr, the new ceo of yahoo! who took the helm in july and gave birth to a baby boy just last night. congratulations on becoming a parent and just as an aside, as a father of two girls, i think it's wonderful that we live in a world where the female ceo of a fortune 500 company can have a baby and take a well deserved maternity leave. but this is "mad money," not mad maternity. when i said she deserves a round of applause i was talking about what she's doing for her other baby, which is yahoo!. that's because yahoo! never recovered from the crash of 2008. it looks like it's finally worth buying.

yahoo! is one of the best-known internet brands on earth. i use it all the time. but the company has suffered from years of mismanagement and undermanagement, which is why the stock has been flatlining for the last three years. just stuck trading around the same $15 or $16 range where it is right now. fabulous stock to sell calls against. the dilemma with yahoo! has been that the company has real value as it owns some terrific assets but in the past the people running the company have been unwilling or unable the unlock the value. this is a company where the whole is worth a lot less than the sum of the parts. yahoo! is a classic breaking up is easy to do story. in these stories at a time when there's low growth around the world, management can make the stock go higher simply by deciding to spin off a division or sell off some assets and split the company. the real problem has been that management couldn't get its act together. what's changed? first, some of it simply that

with marissa mayer they have a ceo who is here to stay. now, that may sound like i'm criticizing her with faint praise. i'm not. the truth is yahoo! went through four ceos before they put her in charge. without consistent leadership at the top there's no way a company can execute a turnaround strategy or any strategy for that matter. now that yahoo! has the leadership issues sorted out, it looks like mayer is committed to doing whatever it takes to unlock the the shareholders. mayer comes from google. she had a sterling reputation as the person behind many of the most beloved features that make google so happy. i love the happy birthday google last week. mayer is a product person. if anybody can turn it around, it's her. i bet she can develop a mobile strategy too. however, even more important is that yahoo! figured out how to unlock the hidden value that wall street isn't giving any

credit for at the moment. they got to monetize the assets that i mentioned earlier. that's why it made me happy when yahoo! announced they were hiring ken goldman from fortinet, effective october 22nd. he helped to restructure a software company that sold itself to oracle too. that's the kind of activist cfo yahoo! needs. the fact that she picked him tells them they're going in the right direction. the plan we will hear more about when they report in two weeks, i think the stock can start marching higher. the reason is simple. the company can get aggressive about unlocking the pieces, and yahoo! has got a lot to unlock. last week goldman sachs came out with a terrific piece. i said i'm changing my mind. this is really good research where they added yahoo! to the buy list based on the sum of the

parts analysis, some of the most rigorous analysis on yahoo!. let's go through the pieces. first, yahoo! owns a major stake in ali baba, like the ebay and paypal of china. the old management didn't know what to do with it. that changed back in may when mayer's predecessor interim ceo ross levinsohn worked out a deal to have ali baba buy back half of yahoo's position. this sale closed less than two weeks ago with yahoo! netting $4.2 billion in cash after taxes and fees. and even better, yahoo! will return about 85% of the cash to you, shareholders. we're either looking at a huge dividend or a gigantic buy back. it would shrink the cap by 19%. that's what makes the stock go higher, not the buy back stock, come out flat. now remember after this transaction yahoo! still owns 20% of ali baba. yahoo! can sell half of the stake at the time when ali baba

comes public whenever that might be. how much is it worth? goldman values yahoo!'s remaining ali baba position at $5.8 billion or $4.93 a share. i think that could be a low ball figure given ali baba's legitimate internet growth story. even though they pulled back from the highs it still made people a fortune since it came public in 2005. second, there's yahoo! japan which is a separate company publicly traded on the japanese market. yahoo! owns 35% of this monster and the stake is worth $4.77 billion. that's another $4.03 a share. then we've got the cash itself. by the end of the year goldman expects yahoo! will have $5.84 of cash per share. let's add up all the cash and investments. give $14.85 sans tax

considerations, but we haven't talked about the core business yet. right now it's trading at $15.82. in other words, when you consider the stake in yahoo! japan and the remaining stake in ali baba which is worth a bundle and the cash which is well, cash, then the market is valuing yahoo's core business, yahoo! search, yahoo! finance, yahoo! sports, these stocks have tremendous gravitas at $1 a share. goldman believes yahoo business is worth $7.17 which means it was to trade at $22. that's a remarkable, remarkable move you need to catch. it could be worth even more frankly. if you believe as i do that she has what it takes to turn this business around. again, i need to see mobile and i need to see social because that's what all the winners in tech have. bottom line when yahoo! was a headless company with no strategy for monetizing its assets it made sense for the stock to trade down here.

now it has leadership and a turnaround plan that we'll hear more about, and the company is unlocking the hidden value like it did with ali baba. that means the stock gets to go higher. i say congratulations, marisa mayer, you finally made yahoo! a stock that's worth buying. let's go to david in kansas, please. >> caller: hey, hello, jim, i'm a cpa from wichita, kansas. dropping a big boo-ya from the capital. >> i was with a bunch of guys this weekend with my daughter at school, we were all saying what is the subject that people should major in or take years of? it's accounting because there you get a job. i'm glad you mentioned that right up-front. >> caller: go cpas. i'm a long-time listener and first-time caller. i noticed that aol had a nice run-up here and has under the

radar assets like mapquest. this seems to be a value opportunity. does it have more room to run? >> i happen to think that one of the most underrated ceos in this country is tim armstrong. people sold this guy short. he's a nice guy, i think he's great. i think he can go higher. let's go to eric in nevada. >> caller: jim, my stock is fortinet. is the recent pullback a buying opportunity? >> look, they didn't make the numbers but i think the company has got a strong, strong position. i'm afraid of saying anything good about the guys because you pick up the paper and they pre-announced to the down side or something. but that got strong -- network security, whether it be symantec or mcafee, that's a place i want to be. don't forget life lock this week. steve in california, steve? >> caller: sunny california beach boo-ya to you from california. >> well, you've got the edge on me. >> caller: right on highway 1.

>> all right. >> caller: news corp, they're going to be splitting up maybe. hear that might be a publishing side and entertainment side -- >> 30 bucks, 30 bucks. that's where stephanie link and i think it is headed. she's co-portfolio manager with me. we think there's a $30 number that comes when you break that into the pieces. it's a win. do you yahoo!? i think ceo marisa mayer is what yahoo! needed. i think she has what it takes to turn this company around. particularly when it comes to unlocking value. and the sum of its parts. congratulations, marisa. stay with cramer. coming up, industrial strength, prologis is at the center of the global supply chain. operating a portfolio of distribution centers, warehouses and commercial real estate around the world. tonight, cramer is talking to

the ceo to get a real read on the economy.

it is time, it's time for the lightning round. say the name of the stock, i tell you to buy or sell. and then the lightning round is over. are you ready? time for the lightning round. yolanda in new york. >> caller: hi, cramer. how are you doing? my husband and i watch you all the time and we think you're great. >> thank you. >> caller: we have frontier communication stocks and we received an offer to buy some more at $8 a share. >> no, don't touch this thing. i think it's a bad company. it's just in a bad part of the whole space of telco. let's go to faisal in illinois. >> caller: big boo-ya, jim, from chicago. >> good to have you. let's make money. what's the stock? >> caller: -- corporation. >> i once owned 4.9%.

i know the company really well when i was at my hedge fund. i don't want to own the stock. it's too cyclical. matt in michigan? >> caller: yeah. from warren, michigan. the arsenal for the second world war. henry ford built a b-25 bomber every 55 minutes. anyhow, it's cabot oil and gas. >> i'd hold on to it. let's go to lucy, like lucy the elephant in new jersey when i was growing up in margate. go ahead, lucy. >> caller: this is lucy from wayne. >> great paintball. i'm sorry. >> caller: thanks for taking my call. i wanted to ask you today about dex. >> oh, boy. i don't know where to begin. this thing is a one-way ticket to a lack of paradise.

uggs have definitely peaked. the tom brady uggs not doing that well, he had a good game yesterday. if martinez were to come on the show we'd feel a heck of a lot better. we need to hear from management. that's what going to turn the tide. i need to go to harlan in washington. >> caller: hey, jim, vancouver boo-yah to you. i have celgene and the stock has moved up so much. do you still have a strong buy on them? >> i like it and we're getting some good news out of europe. i think i want to own celgene and buy celgene right here. let's go to janet in ohio. >> caller: yes, we love you here in ohio. >> thank you. >> caller: i'm calling about devon energy which i bought a while ago and i have been losing a pot load of money. >> me too. talk about david -- they said they were moving more toward oil. they have not been able to do so.

it's a distinct disappointment. i'm not couching that. devon is a disappointment. let's go to mary in california. mary? >> caller: boo-ya, cramer. >> go ahead. >> caller: can you give me the long and short of sears holdings? >> until you tell me you want to shop at sears, i don't recommend it. eddie lampard, he runs the company, but you know what? no. i won't shop there. i don't want to own the stock. i shop pretty much everywhere. jeff in minnesota, please. >> caller: from the land of the most undervalued football team in the nfl. >> i like the vikings, i had ponder. he was back to the old fsu self. what's the stock? >> caller: what do you think of

the steel company archer? >> sell that stock, i don't want a steel company. that's the conclusion of the lightning round. >> the lightning round is >> the lightning round is sponsored by td ameritrade. s m?

today ben bernanke our valiant fed chief reaffirmed his pledge to keep the interest rates down. let me give you the basic cramer english translation. ben's once again saying buy dividend stocks, high yields. because if you want income from your investments dividends are going to be the only game in town for years to come. bernanke is promising that the returns from bonds will be puny. same thing with cds. he can make that promise. you need to swap in the dividend stocks. that's why we'll introduce you to prologis. it's a global real estate interest trust. they specialize in distribution space for customers that do business in multiple countries. that's why some of the biggest

customers, dhl, amazon, pepsi -- pepsico and fedex. think of prologis as a logistics reit, one that sports a yield, exactly the kind of dividend stock you want in this low interest rate environment. it's rallied since the beginning of the year, but lately it's pulled back three points. it could be giving you a good entry point here. first though, before making any decisions let's take a closer look with the chairman and co-ceo of prologis. brand new guest, brand new name. welcome to "mad money." >> nice to meet you. >> first, you just have the biggest building portfolio i've ever seen. it's global, right? just giant. >> it is pretty big and it's pretty good, which is more important, right?

>> the reason i asked, normally i like to have real estate investor guys on because they know the tenor of the united states but you have huge exposure. in your most recent conference call you actually talk about -- what it's like in japan, china, brazil, canada. mexico. and these are doing very well. >> they are indeed. we're in 21 countries and with the exception of a few countries in europe, the rest of the world is actually doing pretty well. including some of the places in europe and northern europe, the u.k., turning the corner. so southern europe has still got a ways to go. i would say the world after three or four years of being very soft in our business has really firmed up and is doing quite well. >> okay. how do you deal with the perception of the gloom and doom? in other words, if someone were to turn you on and say this man obviously has no real exposure to these economies, he would know better than you, but no one has the exposure you have. >> this is not new news, the fact that europe is in trouble is not new news.

that has been more than adequately reflected in our valuation. in fact, i did the math at one point. i thought it was 3x the real impact on us. so i think that's the old news. i think the new news is that after four years of virtually no construction, these markets are getting back into balance. and there are real opportunities going forward. >> you're both disposing and creating, right? you're actually in the build mode. there's not many guys in the build mode. >> we're doing about $1.5 billion of development this year. which is a pretty big number by most comparisons. it's certainly not what we think would be the run rate. the run rate would be something larger than that, about $2.5 billion going forward. but it's quite a few buildings around the world. >> now, wells fargo is saying you have -- they like your stock. you have to do these disposals or you'll come up short. come up short to me said maybe do an equity offering. i'm not sure their analysis is something to agree with. >> we don't think so. based on the program we have

underway we are 42% leveraged today, which is right in the middle of most reads. by the time we're done we hope to be under 30%. we think we'll get it done by the end of 2013. >> okay. so the serial equity issuance is not something you subscribe to? >> no. >> a lot of people always are curious, they say jim, you so rely on net asset value. but unless the company is selling itself what does it matter? you've got net asset value -- you do this 35, 38, simply below the longer term value of $59 a share. how do we get net asset value from you? how do you calculate it? >> prologis went through a difficult period during the downturn because of leverage and it's amd and prologis merging together a year ago. totally different story, balance sheet and the like. we are by far the most dominant

owner of industrial real estate. the difference between us and the number two players on the order of 5 to 1. so i don't think we're being awarded that kind of premium where we're net asset value that most companies in our position get. so getting 35 to 38 of net asset values only the first step. i think the second step is earning that premium that goes with deleveraging and finally industrial rents are 25% below where they were in '07. if we just get that back, that gets us up to a very attractive valuation and good return. >> how many of your customers are u.s. customers that are putting up buildings overseas? they need you overseas? >> our customers are global customers. where they're domiciled is not so important. their needs are all over the world. so we're doing business with european customers in asia, with asian customers in latin america. it is all over the place. >> well, look, i think this is a great product portfolio. once again as i said at the top of the show if you think europe can come back, you can get up to

more than 25% in europe. that would be really terrific. i want to thank you. this is a new name for us, ceo of prologis. a real grower with a good yield. "mad money" is back after the break. thank you so much. [ male announcer ] the 2013 smart comes with 8 airbags, a crash management system and the world's only tridion safety cell which can withstand over three and a half tons. small in size. big on safety.

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want something to buy here? how about taking part in the 3.63 million share offering right now by b & g foods?

here's a little company that's one of the biggest wins, they buy old line sleepy brands and revitalizes them. making a ton of money for all the shareholders. david wenner the ceo has got brands like vermont made, cream of wheat and regina salad dressing, ortega and las palmas, b & m baked beans. and polaner jams and b & g pickles. they bought also scotch guard, as well as mrs. dash and molly mcbutter and other shelf takers. these are all from unilever. those little brands didn't move the needle for a giant like unilever, but they do remarkable things for the bottom line of b & g. and these are all brands that i

like. he bought new york style and old london from for $62.5 million in cash. the brands, they're essentials in the cramer house. got bagel crisp. pantini toast, as well as melba toast which is what i feel like right now. jj flats. i love these. i've got a ton in my closet. i'm like a salesman for this stuff, but i use it all. if you go to the supermarket, there's always a couple of rows of packaged -- you know, the kind of packaged goods. and with this acquisition b & g now has a major toe hold in a growing healthier snack category. they do profitable line extensions and then it expands. the cash deals through credit lines and follows up with equity offers. these acquisitions to get ready

lowers the debt levels from these acquisitions to get ready for the next big deal. it's a terrific deal that's done time and time again. taking the stock up to almost $31, $2 to $31. they pay an above average dividend. they have consistently delivered on earnings and the comparisons are getting easier. sales stay steady and raw costs come down. more dividend boost, they could be ahead. wenner doesn't make acquisitions idly. he's never overpaid for anything. this is an opportunity to take a discount on the variety. you usually don't get a discount and when you do, you have to do some buying. i call my broker, get in on the deal, and it will be stronger after they raise the capital and they'll continue the pattern of under the radar growth. that is exactly what you want in this rising stock market. stick with cramer. hmm, it says here that cheerios helps lower cholesterol

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with the best. it's just another way you'll be traveling at the speed of hertz. why they have a raise your rate cd. tonight our guest, thomas sargent. nobel laureate in economics, and one of the most cited economists in the world. professor sargent, can you tell me what cd rates will be in two years? no. if he can't, no one can. that's why ally has a raise your rate cd. ally bank. your money needs an ally. five things i'm watching. i'm watching gold that's going higher. i'm watching copper that seems to stabilize. i'm watching the fxe which is the dollar that's holding in just fine. i'm watching the transports. they have been wavering. i'm watching apple and apple acts horribly.