final trade. mike? >> don't trade the miners. but i think abx valuation looks reasonable here. >> ambassador? >> yndx get out. >> mastercard still works, folks. >> karen? >> ddgi. >> josh brown? >> myl, still cheap. >> thank you so much for watching. don't forget, the cnbc exclusive with the ceo of herbalife, that's at 11:45 a.m. eastern time. we'll see you back here tomorrow for more "fast money" at 5:00. meantime, "mad money" with jim cramer starts right now.

i'm jim cramer. and welcome to my world. >> you need to get in the game. going 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, trying to save you a little money here. my job's not just to entertain, but to educate, teach you how the market works. call me at 1-800-743-cnbc. the script right now says the companies are supposed to be performing horribly. we're supposed to be geared for disappointment. which makes it so unfathomable that the averages rally today. dow gaining 62 points, s&p rising .27%, nasdaq climbing .45%. what do you do? i have to put myself in the mind of the market. what do you do when a gigantic

fortune country you haven't heard of but with everything with testament -- what do you do when they say things are much better than expected? how do you spin that story negatively, darn it? particularly when the stock jumps $2.12? how confounding and totally off message is the announcement from striker, the medical device company with a broad array of products designed to make your body work better even when it's aging rapidly, like mine, that sales are well above what wall street was looking for? rallied on $1.41. didn't anyone tell those guys or their customers that the affordable care act is going to make their product unaffordable? hey, cgate, listen up, you best of breed maker, what's the deal with you coming out and indicating your business is booming and you're performing well above the street's expectations. didn't you get the message that personal computers are dead? down boy, down.

seagate's not cooperating either. went up $2.09. all right, then, there's alcoa. okay. give me a break. serial disappointors, they're supposed to disappoint. supposed to cast a poll in the action. what does alcoa do? it cites strength in, yes, china. the country that's supposed to have a hard landing. remember that hard landing? i'm going to speak more about alcoa later, but come on, your job is to make us feel worse about things, not better. shame on you. maybe they didn't get the memo. you know what? hey, listen, the gloomsters did come out, the stock did not go up. but in the end, i think this market doesn't want to take its cue from the good. you know what it wants to do? it wants to wallow in the quagmire of worry. it wants to sell off whenever it can. because we all know that things are actually quite worse than

expected. don't they have to be? you know what? to quote marshall sam gerard, i didn't kill my wife defense, in "the fugitive," i don't care about the negativity. i don't care about the pessimism, i've got to find more seagates, i've got to get more strykers and find the themes that can produce them. i've given you a few to fall back on earlier this week, housing recovery, right? the regional bank strength. the insurance stocks, the autos. >> buy, buy, buy! >> into weakness, people. people say, oh, cramer, you like bank of america, it's down -- yeah, bank of america was down, stocks that go up 100% last year, they can go down. i like them when they go down. that's the point of this article, this piece, whatever i'm doing here. all fertile areas that could produce the upside surprises that drive stocks higher after the market's brought them lower.

and tonight i've got two new ones. first is aerospace. by now, we've all seen the stories about boeing's troubled dream liner, nothing like genuine footage of smoking planes to get your attention. but did you know globally there are 8,900 orders for new planes? did you know that airline companies are solvent and desperately need more planes than they're ordering now. do you know there's financing galore to make that happen? that's new too. did you know airplane the demand from business and regional jets are increasing by 12% and 22% respectively year-over-year or air travel could go up 4% this year. did you know that? as we learned in the aerospace line of claus kleinfeld's speech or his conference call last night at alcoa. how do we invest in this theme? the most obvious idea is boeing, which has passed airbus in orders and the premiere manufacturer in the country if not the world.

>> i'm afraid he has footage of a troubled dream liner. we saw billions in market capitalization taken away these last couple of days because of a couple of defects in a small number of planes. and this is a big but, there have been no huge cancellations. i trust the ceo, when he says these are teething situations, don't stress the small stuff. no wonder the stock bounced back, going up $2.63. i've got to tell you, though, it did become too much for me as someone who runs a charitable trust. i'm going to go with a different aerospace, i'm going to utx, makes equipment and engines. by buying goodrich. with that deal closed, i expect united technologies to begin an aggressive plan to return capital shareholders. i would like a positive surprise here, but last time, we got a reaffirmation. that doesn't mean the numbers can't be better than expected, which is why i like it so much.

now, maybe neither boeing or united technology is your thing. don't forget, dave cote's honeywell, my reservation, the stock has been a rocket ship. and i feel like without a real pullback you will have top ticked this screaming monster. my second theme tonight, yeah, i'm going all in with china. we learned that china's turning on the jets here. claus who has been to china many times knows his markets and political science has told us china was way too restrictive in the monetary policy, that somehow the communist party got caught up on worrying about inflation, not worrying about growth. come on, malice, be like mal for heaven sake. i think they're still going with the techs, though. that's over. klaus is confident that when the dpovt unveils the plan for growth in february, they're going to dazzle, from a disappointing 8% to a stunning 11%. there's plenty to like if china gets ho the t in here and takin

all its clothes, that's ray lewis. the chinese are addicted to coal. and we know electric uses have gotten stronger and stronger as the year's gone on. got that data. although joy's up about 10% in two weeks. you can look at truck manufacturers as the chinese are back with a vengeance. but i don't know, i don't want to outthink this. the best way to play china is china, specifically the etf for the biggest chinese stocks i've steered you away from owning individual stocks except for brief flirtation with baydu. nevertheless, call me in. bottom line, i know that things aren't supposed to be better than expected yet. most people remain skeptical that anything could be better than expected in 2013, supposed to be a bad year. that's why i'm isolating themes that make so much sense regardless of the things i don't

care about. and the two things that will remain red hot, aerospace, they offer two best places to go the next time the dploomgloom's in and our markets get hammered. let's go to p.t. in colorado. p.t.? >> caller: hey, jim, a big dinosaur national monument boo-yah to ya. >> i was going to give a peyton manning boo-yah, but i'll take yours. >> caller: i've been watching the products from the consumer electronics show in vegas. and i'm noticing a trend. some ski goggles with chips to tell you how fast you're going, turns to make, spoons and forks they're calling happy forks to record the number of mouthfuls you take, how fast you eat. so my question is with objects becoming more and more computerized, is it time to get into a chip maker? and if so, which one? >> see, the problem with that is as my friend is writing a book about chip makers, i could tell you, i could make that same case for the last 30 years, you would have sat there with it.

if you want one, scott mcgregor was on the great "fast money" show right before me, broadcom ceo, they've got those kind of chips. you want dazzle, broadcom can dazzle. keith in new york. keith? >> boo-yah, jim. >> boo-yah, keith. >> caller: the other day, got some information coming off of yesterday's announcement of the chinese government's intentions to double the capacity in the solar industry. >> right. >> caller: i got in a little bit. i want to know, should i get out? should i buy more? >> no, no, no, i want you to ring the register. i want to own a broad panaplea of chinese stocks, i don't want -- the financials there are not like usda certified so to speak. barry in new jersey. barry? >> caller: cramer. >> barry. >> caller: cramer, good to talk to you, buddy, it's barry from trenton, new jersey. >> how you been? >> caller: well, not that good. listen -- >> what's the matter? >> caller: i should've listened to you a few years ago when you

were talking about caterpillar and 3m and what a great investment. and of course, i didn't invest and that was my first mistake. i threw my money into -- >> cramer makes, the world takes. >> caller: i guess so. and the next time you were talking about facebook and how overvalued it was, again, i think i'm smarter than the average bear, i couldn't wait to buy it, i got it on the secondary market. i got it real high and i bought a lot of it. >> okay. >> caller: i guess my question is now with it trading now at over $30 for the first time in six months and with the new announcement coming out next week, seems to be pretty secretive, what do you think of facebook now? >> i adopted the monkey's approach to this stock. i'm a believer, i wouldn't leave this one. i think, though, the stock was up so much today, it could pull back without a problem. but i like facebook. and you ought to check out my new avatar while we're talking social media. my new avatar @jimcramer on

twitter. i am 8 pounds lighter and it wasn't just because i had a haircut. take your cue from tommy lee jones, marshall gerard. you just say i don't care. find the themes that can power through the worst negativity and i think you'll do just fine. "mad money" will be right back. coming up, wealth in health. all week cramer's been getting you ahead of the next big banging biotech. tonight, two more ceos on the cutting edge of research. accorda therapeutics and charles river labs. could they continue to deliver healthy returns? 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.

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the relief, finally had positive action today, but we all know with the battles over the debt ceiling, we could be looking at very difficult moments over the next couple of months. and that's why all week we've been focusing on the noneconomic big jpmorgan health care conference starting on monday where biotech and pharma countries strut their stuff. this is a small billion dollar biopharma firm focused on neuroology. back in 2010, accorda received approval for a drug called emperia that helps people gain their ability to walk. talk about how horrible this disease is, but it is also a lucrative disease for those who are trying to combat it, why? because it's a lifelong chronic condition. at this point, though, accoacor has gotten all the low-hanging fruit. the really impressive thing about this story is they could

have multiple implications. that's the holy grail of the drug business. right now acorda is conducting phase two studies seeing if it can work on people with cerebral palsy. half of them have mobility issues. these additional indications are still in the early stages of being studied. so it's a high-risk pop siropos. acorda also has a robust pipeline. working on a nasal spray version of diazipam. a bunch of intriguing projects still in early phase one development, ultimately could pay off years down the road. on monday, it preannounced higher than expected fourth quarter sales, stocks spiked, fairly bullish forecast for 2013. giving a 15% gain since we last spoke to the ceo back in june. let's check in with dr. ron cohen the founder and ceo of

acorda therapeutics. welcome back to "mad money." >> thanks very much, jim. >> i was going back to our interview in july of last year, and so much has changed. at the time you were only talking about pre-clinical or rat studies of what your drug could be for stroke. since then, i was looking at your presentation this morning -- this week. 66 people with stroke, at least six months trying this. give me the progression. there have got to be people initially happy with the study. >> well, it's still a blinded study, jim. that means we have no idea who's done well on placebo versus drug, but we're going to find out pretty soon. we're getting the results of that trial in the second quarter of this year. we're very excited to see those results. >> i think people want to understand, it's not just everybody who has had a stroke. it's particular kind of people who face a stroke problem, right? >> yeah, well, about half the people who have had a stroke wind up with permanent disabilities. as a result, reduced mobility,

reduced ability to use their hands or arms. so we're looking at those people. it's of the 7 million people who have had a stroke in this country, about half of them, 3 1/2 or so have ongoing disability. to see if we can improve their function the way we're able to improve function in m.s. in m.s., we're improving walking in particular. >> i know there are a lot of people in this country who say, listen, the best way to treat people in that stroke condition is physical therapy. when we spoke last, we talked about germany saying that perhaps physical therapy was every bit as good. has germany changed its tune? to me it seemed like a case where the government was trying to save money. >> well, you know, germany is going through a new kind of process where, in fact, they are trying to save money on paying for medical care, paying for pharmaceuticals. so that's -- i think a completely different issue. in fact, physical therapy is useful for people who have had

strokes, but it is not the same as having a medication that can actually improve the function of the nervous system and thereby give people back some useful function. >> well, tell me if you're a member of congress and we're faced with this debt ceiling and people are starting to talk about cutting back medicare, which is the better bargain? and which is better for the people who need it? >> well, at the end of the day, if you have a medication that can improve the lot of people with these terrible diseases, that is a lot cheaper in the long run than paying for all of the hospital care and other care that you're going to need down the road as these people have their chronic conditions. in fact, investing in good medicines that really deliver value to the patient is an economically important way to go. that's a smart way to go. >> and it has to be the same for cerebral palsy, i have to believe. you've got a 20-person trial going on right now. you don't know what the results are.

but 400,000 people have this. if you have a pill that could make people to be more physically in control of their lives, i have to believe that's a bargain for america and it's great for the people. >> couldn't have said it better myself, absolutely. >> now, how about epilepsy. where are we? because when i see someone buying a compound for another company, i always think, wait a second, why could acorda do a better job? you're going to spend a lot of money this quarter trying to get the epilepsy drug off the ground. >> well, we're going to spend some additional money this year actually leading up to what we hope will be a filing with the fda to get approval. so we actually have a chance to get this drug potentially on the market and two people with epilepsy as early as 2014. it's well worth the investment from that perspective. this is a drug that is well known, a rescue medication for people with very severe types of seizures. and right now, the only way you can treat those at home is with a formulation that has to be

delivered rectally. that poses concerns in terms of acceptance and feasibility at home. a lot of these people wind up having to go to the emergency room when they have breakthrough seizures. this is an intranasal spray that works very much the same as the rectal form. and if we can get that on the market, that is a huge benefit for all these patients who otherwise have to call 911, wait for the ambulance, go to the emergency room and so forth. >> i want to focus on washington because it's so much of a belief that our country can do nothing to hold back costs and improve patient care. to me, this drug, which is obviously -- it's been around, but if you use this drug, then, again, system saves money, patients lives, rewarded, more money. >> absolutely. >> people don't understand the things that are positive. let's talk about m.s., there are a huge number of people already taking your drug. you talked about the low-hanging

fruit already taken. isn't it true there's still another huge part of the population that really would want this if they knew more about it? >> yes. we've had over 70,000 people with m.s. have tried the drug in just the last 2 1/2 years or so we've been on the market. we estimate there are probably another 130,000 or so who have walking disability and could potentially benefit from the drug. our job right now is to make sure that they know about the drug and that their doctors are able to give them a trial of the drug to see if it'll help them. the ones who have tried it and for whom it works, it can be life changing. it's been a fantastic and really gratifying thing to be able to deliver to society. >> well, i want to thank you. you completely delivered when you were on last, i had to talk to you about a goldman sachs sell recommendation. they since dropped coverage, a lot of good that did. more importantly, your company is making people's lives better and can save the government a lot of money. people need to know that. thank you so much for coming on "mad money." >> thank you so much, jim.

>> we had him on last year, everything delivered and then some. that's what i like. a pre-announcement earlier this week, dr. ron cohen, president and ceo of acorda pharmaceuticals, makes a lot of sense to me. pull back a little because of the pre-announcement. after the break i'll try to make you more money. coming up -- diagnostic dollars. don't go anywhere, charles river labs is working to speed the development of next generation drugs and drive down the cost to get in the market. is this stock the best medicine for your portfolio? don't miss cramer's exclusive with the ceo.

we've got this big jpmorgan health care con fab going on right now, which is a major reason why all week i've been highlighting individual biotech stocks as a way to transcend the morass created by washington. you're playing a high-risk game. you know i tell you that. i think everyone should do a little speculation over time. keep things interesting, keep involved, but i recognize the play fda roulette with small-cap biotech stocks is not for everyone. what fif you want exposure. how about owning what i call an arms dealer to the pharmaceutical business. i'm talking about crl. an outfit that provides drug companies and universities with everything they need to discover and redevelop new drugs up to the rats and mice these drugs need to be tested on. easier and more efficient, they

enable their clients to more quickly decide whether given early stage compound is worth developing or not, the go, no-go so to speak. plus, biopharma companies outsource more and more of their lab work, charles river sees an opportunity to take share. stocks went up about $3 or 8% the last we spoke. and even though it jumped over dollar today, i don't know, we've got to find out whether there's more upside. let's talk to james foster, the chairman, president, and ceo of charles river laboratories. welcome back to "mad money." >> nice to be back, jim. >> well, sir, first, i was -- i was reading through your excellent presentation from october 31st, not the one you just did, but where you're talking about being very conservative about your earnings. and what i don't want to run into. our narrow guidance assumes a meaningful decline of per share. you are spending a lot for a couple of big clients. i want people to be prepped for the idea that 2013 could be the

payoff for what you spent in the fourth quarter. >> so we're at this very interesting inflexion point in the market's history. where the drug companies are -- have drugs rolling off and they're going to have to outsource more. we've been signing large deals, taking share, not just from competition, but as our clients shut down fixed costs, they've been outsourcing more work. there are several conversations going on now with additional large drug companies. and it's a great opportunity. and i think over the next two or three years, there's an opportunity to garner a significant amount of business. and our goal is to get the majority of the work with the majority of the large drug companies throughout the world and have them utilize our expertise to make these go, no-go decisions. and to focus on basic drug discovery and not on the early development phase. >> i know you've been talking for a long time we're going to

get to the patent cliff. i've been working on pfizer. i got to interview the ceo of eli lilly earlier this week, these are companies severely challenged. it can only be maintained by huge drugs that are not generic, staying patent, but they don't have this luxury anymore. is this the kind of company, is this the kind of company that's going to have to turn to charles river as their drugs roll off. >> unquestionably. 2012, there were many drugs rolling off patent, 13 and 14 additional ones, at least a third of all drugs will roll off patent. you're already seeing major facilities closed. and if the drug companies can do the work as fast or faster as well or better and always at a lower price point. always as efficient or more efficient because our facilities are built for efficiency. i think that's a win/win for both -- for all of us and we're firm believers we all need to do

what we do best and we're in the drug development business and the drug companies are in the drug discovery business, which they'll either do on their own or they'll have deals with smaller biotech companies. in any event, we can do the development phase for them after the drugs are discovered. >> do you think that we hear -- the public hears about drug companies whose drugs were given the no-go so to speak by charles river and we don't know it? i'm trying to figure out. you're involved so early now. you're involved early and you're able to like keep the blind alleys from losing a lot of money for companies? >> yeah, i mean, it's a really important phase so they work a significant amount of time to get a lead candidate, but they may have multiple lead candidates. and betting on the right one to go through the process is critical. it's a really big responsibility we have. we take it seriously. we enjoy the work, it's quite complex. but the drug companies have

really honed down their pipelines. and as i said a moment ago, use smaller biotech companies as their discovery engines. and i think that's one of the reasons we saw more drugs be approved by the fda in 2012 than the prior year because they're much more focused than they used to be. the indications are much harder, the mechanism of action of diseases is much more complicated. they're really honing in on the drugs that have the best potential to get to market. >> i think you save the system a lot of money. at the same time you have government business. the government is trying to figure out what they should cut back. there's a lot of shortsighted things that would be cut back if we went over the usual cliff. are you concerned about the government-side of your business because it seems washington's run amuck with the idea good and bad we have to throw them out if they have to do with r & d? >> we're not concerned -- we have a lot of long-term contracts. the price point particularly for the research model is relatively low and so critical to basic research that we think it would

be obviously unwise but very unlikely that the government would interfere with basic resources to develop drugs. so we're optimistic that our government and academic business will not only be not affected by that, but on the academic side, we think we have great growth potential to grow our share. >> one last question, we had talked financials the last time we were on, meaning that you were a company that said you were going to buy back stock and i looked at the share count, you have really rally shrunk it. was that because you knew that anybody that took a long-term view this company's stock was very undervalued. now we're at the promise land. you were able to bring in a gigantic amount of your float during the interim. >> yeah, well, i mean the stock was significantly undervalued. we always think our stocks are undervalued. but at that point in time, it was really severe. we didn't have a better use of the cash at the time. we do like, obviously, accretive

strategic acquisitions. and we still do that. we just done two in the last three months. but it was a very opportune time for us to buy back our stock. obviously it was an effective proposition for us. depending on the stock price continue to do that going forward, as well. >> well, thank you so much. thank you. your company's very exciting. it's a long -- been in business for a long time. i like what the current posture is versus the patent cliff. thank you james foster. >> thanks, jim. great to be back. >> all right. guys, very good scientific company. go read the financials. you'll see they're not saying, listen, it's the breakout right now. not a lot of talk about the big clients, it's kind of like apple. they can't talk about who the big suppliers are. but i think the latter part of 2013 will be very big for them. do your homework, it's a well-run company. charles river labs, stay with cramer. coming up -- can you handle the heat? cramer gets you fired up for a

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it is time -- it's time for the "lightning round" on cramer's "mad money." rapid-fire calls, i tell you whether to buy or sell. play until this sound -- and then the "lightning round" is over. are you ready skee-daddy, time for the "lightning round" on cramer's "mad money." starting with bob in new york. bob? >> caller: hi, jim, how are you? >> all right. how are you, bob? >> caller: not bad. jim, verizon's ceo lowell said that 2013 would be a flat year for the company. are we starting to see a downward spiral for the stock? >> yeah, you know what? i mean, look, this is lowell who i like very much and i always loved ivan too. here's the problem with selling verizon on that. what happens if verizon accelerates? it created a floor on the stock. you've got a good yield. you want to wait until it gets to 40? i don't think it gets to 40. i think it's like watching paint dry. but you want to watch paint dry, sherwin williams, 52-week high. how about john in georgia please? john? >> caller: boo-yah, jim. how about rnm.

>> i'm onboard. stephanie link, you see her all the time with the judge. she and i have been kicking ourselves that we missed the ag move, okay. i mean even deere, but monsanto, this one's fine. i like it. i'm going to joe in new york. joe? yo, yo, joe. >> caller: how you doing? >> all right. how about you? >> caller: good. yeah, jim. i got together with scott redman back in november and gave him a couple of picks on alga rhythms. now i've got -- what's your take on it? >> the guy who runs goldcorp. is a great guy. the problem is i like the gld and i'm going with the gld and i reiterated that yesterday. i see your gg and i raise you with the gld and that's what i want. i'm going to taylor in california. please, taylor? >> caller: hey, jim, big boo-yah from california. >> nice to have you. >> caller: hey, calling about the search engine yandex yndx.

>> where is yandex located? where my old buddy pal, of course my great, great uncle, i'm not kidding, actually, i'm not investing in russia, i've got enough problems with china. i'm going to say sell, sell, sell. >> good boo-yah, mr. cramer. i'm calling about nokia. they look like they should be headed up. >> nokia's already headed up and as a matter of fact apple at the low-end product, i think cuts into nokia's profit margins. i'm saying don't buy, don't buy nokia. ron in alabama. roll, ron. >> caller: thanks, jim. well, first, roll tide. >> you bet. >> caller: second, the question is visa. long-term investment? or cash out now? >> i was going to criticize goldman because they didn't like it last year, he's a brand new analyst, he's right, recommend the stock. conviction buy. does that mean it's a lack of conviction buy?

i've never understood that, but i'm with him. >> buy, buy, buy! >> "v" goes higher. jerry in texas. >> caller: hey, jim. >> boo-yah, jerry. >> caller: i'd like to hear about -- >> this is a biofuel, they make it out of -- no, this is too speculative for me. >> don't buy, don't buy. >> don't buy on that. i've got enough problems with the non-speculations. i need to go to joe in new york. joe? >> caller: boo-yah, jim cramer. >> boo-yah, joe. >> caller: yesterday you were talking about bank stocks, bku out of florida, bank united. >> that used to be called bakuna matata. i said get me 50,000, well, the answer is, i'm not a buyer of that one, i do like florida, but that one has spiked. let's go to the ohio banks. i need to go to ivan in new york. ivan? >> caller: boo-yah, jim. ivan from long island. >> good to have you. >> caller: my question is, with companies switching to mobile advertising, give me a birthday

blessing on millennium medium. >> yes, i will. but i think it's a takeout name and i think the fundamentals are good enough to recommend it. go back to our interview, we interviewed the ceo, i thought it was quite impressive. go to ryan in ohio. ryan? >> caller: yeah, upl. my question is upl -- >> it's so low -- it is so low and natural gas is so low, do you know how much i want to recommend that stock? but you know what? every time i do a stock because it's so low, it's like encana, i think it's going nowhere. ray in my home state of new jersey. ray? >> caller: i want to thank you for the excellent calls that did well, motorola and mechanic resources. >> thank you. >> caller: i'm now a holder of cys investments, i purchased it mid-december for the attractive 40-cent and currently 52-cent dividend. >> as low as the economy remains

strong, you're going to be fine on that. as wrong -- the economy has to remain strong. but i think the economy is going to be okay so i think you're okay in that one. that high yield is a little offputting, but if you've done the homework, you're fine, i'll bless it. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade. coming up -- whether the debt threat pulls the market down or we head to new highs, there's only one man with the knowledge to get you prepped for whatever wall street has in store. are you ready? call, e-mail, or tweet cramer and find out in an all new edition of "am i diversified." r. and his new boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him,

and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade. olaf gets great rewards for his small business! pizza! [ garth ] olaf's small business earns 2% cash back on every purchase, every day! helium delivery. put it on my spark card! [ pop! ] [ garth ] why settle for less? great businesses deserve great rewards! awesome!!! [ male announcer ] the spark business card from capital one. choose unlimited rewards with 2% cash back or double miles on every purchase, every day! what's in your wallet? i am probably going to the gas station about once a month. last time i was at a gas station was about...i would say... two months ago. i very rarely put gas in my chevy volt. i go to the gas station such a small amount that i forget how to put gas in my car.

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well, this market may feel like a turbo charge seesaw, there are themes i've been highlighting. housing, insurance, aerospace, china, there are many places to put your money to work in the right place. most important tip for making

money in the hot sectors, mix them up. exposure to each, which is why we play am i diversified. you call me, you tweet me @jimcramer, new avatar, you tell me your top five holdings and i tell you if your portfolio's diversified enough. let's start with a tweet, @jimcramer, new avatar from @robb. he writes, am i diversified? apple, melly, visa, and lulu, which is lululemon athletica. thank you, jim, i'm learning a lot from you. you're quite welcome. here's the deal, this is not hard. i like this. lululemon is apparel. better than expected, stock didn't hold up, i didn't like that.

visa recommended by goldman. ford, yes, let it pull back and do some buying. apple, the most hated stock in the universe, technology, growing as internet south america kind of thing, internet, tech, financial, apparel, and auto. i'm going to say that is diversified. some are going to say these are both tech, i think it's fine. go to john in ohio, please. john. >> a pleasure to speak with you tonight. >> same. >> caller: jim, my five stocks tonight are boardwalk partners bwp -- >> boardwalk partners or pipeline? >> pipeline. >> okay, good. >> caller: capital one financial. >> okay. >> caller: john deere, facebook and u.s. gypsum. jim, am i diversified? >> guy knows the rules of the game. let's take a look at this. this is a great portfolio. capital one i said the other day was an absolutely terrific bank.

they've got the great ing business too. don't forget sandy is going to be great. ag market is b on fire, boardwalk partners, someone downgraded that today, really good yield. and facebook, i told you, when zuckerberg came on the conference and said that was a chance to buy and i'm sticking with that stock and now i'm going to the bakken boo-yah, chris in north dakota, chris? >> caller: big boo-yah, love the show. >> well, i love where you're from, man. your oil production was up more than 50% year-over-year in north dakota. >> caller: hey, let's hope we can keep that going. >> i know you can, bisons, go ahead. >> caller: well, i've got five stocks here. first off, home street. hmst. >> okay. >> caller: next is goldman sachs, gs. >> okay. >> caller: ford, "f," cisco, and

eaton. >> we've done eaton, that's a manufacturer. goldman sachs, just a fantastic financial, it's really coming back. i think the stock goes to 180, not kidding. ford, looks like a keystone for a lot of portfolios, you know i'm a believer, cisco, technology, and here's the problem, homestreet is like herb street, if it were herb street, i'd keep it. home street, we're going to go, we don't need two financials, we're going to go health care. and you know what we're going to do? we could do this. we're going to go biojet. because i thought that was terrific last night. how about that? patrick in new york. patrick? >> caller: yes, jim. we love your show, the nyfd loves you and my pick for the diversified is disney, dis, ibm, mcdonald's, mcd, microsoft, msft

and citibank, "c." >> and we love what you do. >> caller: any suggestions would be appreciated. >> we love what you do and thank you for what you do every day, you've got one tough job. i didn't mean to interrupt you, i just got excited about that. mcdonald's, absolutely terrific stock. disney, entertainment, citibank, ibm, technology, and microsoft. and we're going to put in, maybe get a little more conservative, let's go with pfizer. nice yield.

thank heavens, earnings season kicks off with alcoa. that's the first time i've said that in four years. and it's monumental when you think about it. i've always held that alcoa's outlook is perhaps the most terrific by any company. and the outlook is for accelerating worldwide growth. 7% going to 8%. with global forecast of 7%, nice pick-up from 6%. that's what i expected they would repeat after giving that last year, you know how disappointing the stock's been. how is that possible in a world where growth is not so hot in the u.s. while europe's actually dropping again? the answer simply is -- china. there's a gigantic acceleration going on in china. specifically the potential for return to double digit gdp growth of 11%. that is a significant jump from the high, single digit growth we've been getting used to lately and that most people are

expecting to continue. that's solid and coming from aerospace, infrastructure, trucks, autos, specifically points out sports utility vehicles. this is tremendous news for us trying to figure out what 2013 could look like. kleinfeld credits for dropping the anti-inflation stance and getting more aggressive in the fourth quarter of last year. but it isn't all china. no, russia, brazil, and india all called out as beginning to reaccelerate and that plus steady and low growth in the united states and slow of the rate of decline in europe is contributing to the worldwide acceleration. europe can't drag down the world as fast as china pulls it up. where alcoa's projections are most encouraging is in the line-by-line items of each product line. also potential for aluminum, the base products they think are going to climb because of a tightening of global inventories. specifically alcoa sees aerospace strengthening, albeit

lower levels than last year, but it makes it difficult to see an even bigger ramp in 2013. aerospace, growing about 9% to 10%. down 13% or 14%, rooted in 8,900 orders, and business jets, kleinfeld sees auto production going up to 16 million. that's back to pre-recession levels. while going from 7% to 10% growth in china, up from 6% to 7% growth last year. again, encouraging. they're not going to be down 15% to 19%. again, that's a decline in the rate of the decline. something that's crucial to include in any calculation. one look at europe, where production would be down 6% to 10% instead of last year's 12% decline. china's going to see a dramatic reacceleration of truck growth, which is why i heard people buying a start today. put it all together, and you see a world in resurgence with

aluminum part of that resurgence, tremendous news for the economies around the globe. terrific gains and free cash flow and increase in productivity. quite a repudiation of a now questionable review by moody's. to me, this is an inflexion point, the long awaited inflexion point. very strong start to the earnings season from a company with a good handle on the global economy and all of the segments. sure, okay, it failed to go higher. the skeptics remain and need to see more than one good quarter. but to me, it's changed. the risk is to the up side, not to the downside. for this $9 stock, it sold in the 40s. stay with cramer. at 1:45, the aflac duck was brought in

with multiple lacerations to the wing and a fractured beak. surgery was successful, but he will be in a cast until it is fully healed, possibly several months. so, if the duck isn't able to work, how will he pay for his living expenses? aflac. like his rent and car payments? aflac. what about gas and groceries? aflac. cell phone? aflac, but i doubt he'll be using his phone for quite a while cause like i said, he has a fractured beak. [ male announcer ] send the aflac duck a get-well card at getwellduck.com. office superstore ink retailer in america. now get $6 back in staples rewards for every ink cartridge you recycle when you spend $50 on hp ink. staples. that was easy. we don't let frequent heartburn come between us and what we love. so if you're one of them people who gets heartburn and then treats day after day... block the acid with prilosec otc and don't get heartburn in the first place!

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