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well, would you look at the time... what's the rush? be happy. be healthy. >> 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 are 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 some money. my job is not just to educate, but i'm entertaining, coaching and teaching tonight. so call me 1-800-743-cnbc. does the market not understand the gravity of a u.s. government shutdown? does it not comprehend it's not merely the nation's credit rating that's at risk from the debt ceiling debacle, but the full faith and credit of the republic itself? how long can we shrug off this

grand canyon plunge that's coming? as we did again with another benign day, dow tipped 24 points, and nasdaq advanced .22%. this is behavior. is the market actually smarter than you and i think? i'm starting to believe the latter and tonight i'm going to tell you why. first, i don't necessarily want to invest in a country if it doesn't pay its bills. deadbeat country, but i don't mind if it can pay its bills but for a moment refuses to. constitution says it must honor its debts no matter what. i believe passionately that we will pay debts in a timely fashion. congress is supposed to hold the purse strings, but the american people are less stupid than washington thinks they are. they lived through another one of these scares. that time, we were frightened, frightened about what a ratings agency downgrade would mean to the country. do you remember where you were that weekend when we got the downgrade?

i know where i was. philadelphia eagles training camp, and the news of the downgrade hung over players and fans as if a nation had committed treason and therefore we immediately would see sky-high interest rates, making their houses totally unsaleable, the undrafted free agents, they were totally freaking out. yet, in fact, it heralded one of the greatest rallies in u.s. bond history, with interest rates that fell to rates that seemed preposterous, triggering a housing boom. things are different now. and it's not just because the eagles landed oregon's chip kelly, which just about made my year as a season ticket holder. the thing we feared the most, wasn't fear actually, but it was kind of. the downgrade didn't matter, and the idea that the government will stop paying its bills for an interest for long stretch, please. i mean, people need to run for office in congress. they need to run for office.

they need money. you won't win an election if you are responsible for stopping even a week's worth of social security checks. there won't be any wrangling. pin the tail on the gop and despite the disfunction in the party, within the gop, it's vital donors not be turned off. that's what the business of politics is all about. the gop is no longer beholden to big corporations and is embracing and being supported by small businesses. enough. as someone who has been a small businessman all his life, started many businesses, let me say these articles are stupid and nonsensical. here is the dirty little secret of small business that all of us who tried our hand of starting a small business, i wish it would get into the media's conscious. small business needs big business to do well, if it's going to do well itself. big business hires, grows, puts people to work. small business caters locally to the big business. let me explain how local businesses would love to be as

independent as some politicians seem to believe. we all know better. the inn i own in summit, new jersey. a bunch of guys. we survive because big business in this case, celgene is headquartered down the street. what would make us thrive? merck moving its business there too. everyone at the summit elks knows we are all beholden to big business to make our small ones strong. that's how it works. you got to stop the rhetoric, politicians. go work in an inn. george mcgovern recognized what it's like. neither big nor small business wants a government shutdown, plus the other big voting contingent, the elderly, they are not cool on missing that social security check last time i looked. you will end up making a bargain. one more reason why it won't be such a vicious showdown.

we act as if the democrats are the party of tax and spend, the republicans are the party of borrow and spend. did you see any evidence of the bush administration that there was any entitlement cutbacks? i don't believe most republican politicians have any discipline when it comes to spending or they wouldn't have been nearly as profligate, give me a break. this won't be much of a showdown. republicans -- come here, come here, the republicans, they don't want to cut spending either. embarrassing the president is one thing, but actually offering plans to cut medicare, social security, defense, oh, please. i'll believe it when i see it, even as i think it's important that it be done. both parties guilty of too much spending. the democrats vitriolic, tried to raise money to pay for it. but enough politics. the american investor figured out we're pretty far along

through the united states of three-ring circuses. the most important spur for investment is confidence. three issues that held up business formation and stock investing for a long time, really put a drag on it. uncertainty of the presidential election, uncertainty of the fiscal cliff and the sequester debt ceiling argument. we've gotten through two big bad events, only one more station on the gauntlet. it simply isn't as scary or as meaningful as the other two when it comes to the stock market or new business formation. sorry, it won't sell as many parents, it just won't. smart investors are making a bet they can't wait for the third of the three washington incursions to be finished. once a big bad event is passed, the risk of responding floods in. now we're about to finish the third leg of this political steeplechase, and we will be given a level of certainty we haven't had in ages. you want to wait for those people to come in? it could be investing nirvana, a guy in brooklyn, cramer, smart guy. you scared us with the election,

you scared us with the fiscal cliff and now scaring us with the debt ceiling. what are you going to scare us with about washington after that's over and you faked everyone out and got them to sell? i rolled my eyes, i defended myself, saying that all three of threes issues were and are worthy of worry and i told people to stay the course, like he could care. he said, again, what washington horror story are you going to gin up, cramer? and i said impact on spending of higher taxes, coming affordable care act, instead i said wisely no, that's it. maybe it would be good if you focused on the stock market again. ouch! but it did get me thinking. we have seen bank stocks go higher, today, last week, putting washington behind them. and it didn't look like the bank killing dodd frank had much impact on goldman sachs or jp morgan. high-end retails rally, and it incurred, and we keep acting as it has, and no cessation of home

buying according to lennar, and the sandy bailout will kick in by the end of the second quarter, home depot will fly. we're through two of the washington stumbling blocks, the election and the fiscal cliff. one more leg to go. debt ceiling. the last obstacle may be the least dangerous, judging by what happened last year with the overly dreaded debt downgrade and what's happening now. take your cue from the markets. here is the bottom line. washington fright fest is almost over, people. maybe time to break out the dr. strangelove handbook and learn how to stop worrying and love the irrelevant gridlock that will soon face, once the debt ceiling is raised, and politics cease to be the biggest factor in our investment thinking. kevin in washington, kevin. >> caller: booyah, mr. brilliant one. just a quick question. you know, with the higher cost

of foods and energy, and the lower incomes we're all expecting, the average working person, do you think we can return to the dependence on our credit cards? if we are, is mastercard a good buy? >> i like mastercard, my charitable trust owns it, i like ebay, that stock soaring in afterhours. master card is a paper to plastic worldwide trend, not so much whether we get hooked in debt or not. and i've seen a lot of household debt statistics which show how low we are in debt. i think we're just fine on that issue. a lot of things i'm scared about, it ain't one of them. let's go to laura in virginia. laura. >> caller: hey, jim. thanks for my call. booyah, and my question is the speculation for the decline and demand on iphone. hello? >> i hear you, laura. >> caller: the apple iphone sales. i wanted to know what does that

have to do with cirrus logic? >> cirrus logic is a great company. they do the sound for the iphone and if people feel they are cutting back for orders on apple, i don't know what the story is. they will cut back on cirrus orders. they go down. i want to clear up something. there's a real misinterpretation about me and apple. my charitable trust owns it, it's been killing my charitable trust. fortunately, we're doing okay. it's been the reason why a source of great angst, so when people say jim hits apple lower, why would i want my charitable trust to have less money? i gave away $1.5 million with this charitable trust. i would do anything to give away more money. why would i want to make less and give less to charity? stop with the hectoring me about apple. enough, enough. this market is smarter than we think. washington stumbling blocks are almost behind us.

stop worrying, embrace some opportunities, and don't freak out. keep your head cool, make some money. "mad money" will be right back. >> coming up, can you dig it? instead of digging, investors are dumping joy global as concerns over coal in china put the stock down in the dirt. are they new in the sights of a suitor, and is it time to scoop up shares? cramer is going straight to the source in his exclusive with the ceo. later, dollar store debate. discount dollar shops have been printing money as consumers search for deals, but recently lost some steam. as americans start to feel paychecks pinched, could these stocks come back to favor? cramer conducts a price check, just ahead. 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.

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this market has a real bob dylan feel to it. we are in a times, they are a changing moment. right now 2012's losers are looking like 2013 winners. we ran kicking and screaming from any stock that had major exposure to china. china is reaccelerating and the industrials are coming back with a vengeance. tonight, i want to talk to you about the company that literally on "mad money" called the bottom in china, right on this show. joy global, the maker of mining equipment. back on september 13th when things were looking pretty grim, joy's ceo came and said he saw a turn in china, based on better electricity usage data. he keeps a close eye on the chinese.

since then, china's rebound has become apparent to everyone. and on december 12th, they had stronger than expected revenues that rose 19.4% year over year. the estimates for 2013 could be too low. that's my view. joy global was among the worst performers in the s & p 500 last year. in 2013 i think it could be among the strongest performers in the s & p. they gave a 20% gain since we spoke to mr. sutherland in september. let's check back with the bankable president and ceo of joy global to get a better sense of where his business is headed. welcome back to "mad money." >> thanks for having me. >> you were saying, yes, after much prodding, because of electricity usage, we've seen the bottom in china. is that a curved bottom or are we about to see a "v" recovery? >> we have seen steady

improvement since that time. as you and i talked last time, we track a lot of things that are highly correlated to economic performance. electricity demand year over year has continued to improve, november was up almost 8%. we see steel production improving, and its november numbers were above year-to-date average. we look at other factors like truck haul volumes and those things are up, export orders in china were up 14% in december. we are seeing real significant improvement in a lot of different indicators that we look at, that we think are highly correlated to economic and industrial growth and into the demand for commodities. >> what is the lag between the turnaround and when you think that the order book is going to show the kind of robust nature we had a couple of years ago? >> if i can sort of break this

down into two pieces, there are two elements to this. one, that in addition to the improvement we've seen in china, one of the real underlying stories we have in china is a restocking phase, that china has in 2012, particularly in the second half, really reduced their stock levels down quite significantly. we see the power -- the utilities -- independent power producers have reduced their inventories they carry of coal from 31 days to 18. steel mills have reduced their level of inventory for metallurgical coal and iron ore from 18 days to 12. those level will have to be replenished on top of demand. we still have supply-to-demand where supply is still in surplus right now. as demand improves, that will begin to change, but it will take some time for that to change. if the trends continue the way

they are going and we believe they will, we should start to see some improvement in the order rates, but probably not until the second half of 2013. our customers are more cautious than they've ever been, they will be much more methodical, and you won't see a lot of interest to jump the gun and do something too early. so there are early signs, you have to be patient to see the results of those, but certainly by the second half of 2013, we should start to see the china improvement translate into improved order rates as we look at it from our business standpoint. >> has the u.s. stopped going down? >> the u.s. is actually getting better. we've gone from coal losing share to natural gas. natural gas prices have begun to move up, coal has gained share back. coal saw 31% share of power generation in april. it's back up to 39% now. not what it was before now, but a large portion has been gained back. we still believe that gas is

going to need $4 to $4.50 to justify drilling programs to replenish the gas supply, so there is a replacement cost higher than today's market price. stockpiles are down, coal production in the u.s. is running down year over year by 7%, but only 3% in the fourth quarter. a lot of the decline is behind us and we're seeing markets, seeing markets in closer balance, and that's a good sign for us. our u.s. customers continue to invest on mine projects to bring online new mines to rebalance their portfolios, to improve the technology that they have in their mines to lower the unit cost of production. we are seeing investments in the u.s., land acquisition to prb, clear indicator of the long-term potential that our customers see out of that region as well. >> it sounds like no credit problems with any of the customers. china turning around. united states stabilizing. 2013 could be a dramatically better year for joy global than

2012. >> it could be a better year. i caution about how quick the turnaround is going to occur. customers have i think grown very cautious about jumping the gun. we've seen them do that several times before. 2008, they cut too quickly. 2011, they ramp back up maybe too quickly in retrospect. much more cautious, much more methodical. there certainly is upside in our business. one of the things we've done that helps that, we cut the cycles down. today it takes us five months to manufacture a shovel, down from 15 months. our response time is quicker than it was a couple of years ago. we'll see the improvement in the order rate. people will want to see more sustainability in the trends we're seeing out of china before they begin to commit large-scale investments on new mine expansion. by the second half, we'll start

to see that kind of improvement. >> thank you, mike. stuck your neck out. china hard landing, called the bottom. great for people, in terms of the shareholders who watch the show. thank you for coming on the show. >> thank you, jim. >> customers are cautious. customers won't do anything that is wildly extravagant, given the last two cycles have been so short. china, second half of the year, driver, that means to me the stock is too cheap, joy global. stay with it. stay with cramer. >> coming up, dollar store debate. discount dollar shops have been printing money as consumers search for deals, but recently lost some steam. as americans start to feel the paychecks pinched, could these stocks come back into favor? cramer conducts a price check, just ahead.

ever since the great recession got going, the dollar stores have been among the strongest segments in retail. for over four years, these companies posted stellar results, and it began to look like dollar store names were taking over the low-income world. over the last few months, they have reported quite disappointing numbers. since the beginning of december, family dollar is down 18%,

dollar general has fallen, an 11% decline. dollar tree has been crushed. this thing, i mean -- since the summer, this stock is down more than 25%. since august, falling from $52.38 and change. dismal performance, just dismal and you would think with all the cow tales and turkish taffy i buy, i could pull this group out of this funk. maybe because i'm only buying mike and not mike & ike anymore. it's not working. why are dollar stores being crushed? should we expect them to bounce back as in the past, or are they finished? drifters going lower? i think they're drifters. the dollar stores, not a lot of upside. and it's not too late for you to sell, particularly into any strength. the reason? actually more like reasons, a multitude. the trajectory is downright

lousy. dollar tree reported that the company beat the street's expectations, same-store sales up 1.6%. 300 basis point deceleration. that's like slamming the brakes on a car going 60. december 11th, dollar general reported, they delivered inline same store sales numbers. gross margins once you got into the conference call, they suffered, down 11 basis points year over year, the company gave the impression that the gross margins would remain under pressure through 2013. sell, sell, sell. dollar tree disappointed on sales, dollar general on margins, and it makes you feel like this is an industry you can have one or the other. decent same store sales or stable margins, but you can't be losing on both. and, man, was that negative impression bolstered. we got the results from family dollar a couple weeks ago, i tell you, family dollar story, i mean, it was -- >> the house of pain. >> january 3rd. the worst. family dollar couldn't even

manage to deliver on earnings. remember, the others -- a 6 cent miss off 75 cent basis. fdo issued downside guidance, cutting numbers for the next quarter for all 2013. conference call? it was a horror show. like when a stranger calls, except the stranger was family dollar management. it was not a family rated picture. it's not just the quarter was seriously subpar. i didn't like what dollar store management had to say about what went wrong. dollar tree blamed the election, higher gasoline prices, blamed the broad macroeconomic picture for lousy same-store sales. talk about a bunch of bogus alibis. i mean, those are the reasons why we shop at dollar stores for heaven's sake. family dollar claim they can differentiate because they offer

such great values and such a convenient shopping experience. i could almost buy that if there was any evidence that it was actually happening. dollar stores are getting squeezed by the competition. from companies like walmart, taking share aggressively of late, and drugstores like cvs, house on fire cvs, walgreens, and a reinvigorated target. they have acknowledged -- let's put it this way -- that there may be lurking price wars. i think there are price wars galore, including tobacco sales. dollar stores up against difficult comparisons, bar set high and wall street expects the best from them. in recent months, the bar has been lowered indeed, but it's still too high versus what the dollar stores are up against. i think they made a lot of smart points about why they are struggling. end of the payroll tax cut holiday. something dragging down on

retailers, and higher payroll taxes disproportionately hit low and middle income consumers. customers make 40,000 a year or less. end of the payroll tax holiday, means a household will have to pay $800 to $1,000 in taxes that they won't be able to spend at the general. these families will have to tighten their belts. since they are more likely to shop at family dollar or dollar general than saks, that's bad news. the debt ceiling fiasco, and the negotiation of the budget sequester, we could see actual cuts to entitlement programs in the next few months, at least there will be tons of chatter in the media about it. i don't think either the republicans or the democrats have the guts to cut entitlements. what does this have to do with the dollar stores?

you cut program that help people who shop at dollar stores, you hurt these stocks. the low-ends retail environment is getting more competitive. they have to become more promotional, code for more discounts. in order to hold their own, they have to put real pressure on margins. the higher payroll taxes on consumers, i think it's very hard to make the case that dollar stores can be owned here. it's true companies have big long-term growth stories, as they expand store base around the country. that's not a reason to buy them as long as existing stores have so much trouble. at this point, dollar stores may be too cheap to go much lower, dollar tree sells 14 times earnings, and when their historical multipliers are higher, however, there is no catalyst that can get that multiple to expand. no catalyst to drive this stock higher, and that makes buying them frankly a big no-no. you said to me, jim, give me something in the space.

you want something in the space? i say go with cramer fave five below. five for you home gamers. i've been a big fan of this company since it came public in july, and -- philadelphia based and if you got it on the ipo at 17, have you more than a double. congratulations. as you can guess from the name, five below is not a cold clothing and everest climbing sporting goods center. a retailer where everything is $5 or less. it's a niche market, and much more than i could pay my kids to go to five below. much smaller than dollar stores. 243 locations only upper eastern quadrant in the united states, mostly around my house. regional and national growth story in infancy, they could still triple and not have enough stores to handle business. five below announced better than expected numbers.

stock shot up. and i think you wait for the pullback, and you know what? maybe you wait -- the company has 7 million share offerings and start on that offering. start a position on that deal. that's a good one. but make no mistake this is the one to own. bottom line, the dollar stores, sadly, crushed. i don't expect them to rebound anytime soon. too many difficulties and no real catalyst to get the stocks moving higher, so forget dollar general, dollar tree and family dollar, and if you want to trade downplay, go with the one posting fabulous numbers. go with five below. just like in real life, $5 trumps $1, and five below trumps the dollar stores beneath it. michael in louisiana. michael. >> caller: booyah, jim, in baton rouge, louisiana. >> holy cow, lsu. >> caller: actually, mississippi

state. >> just so you know, i'm going down to new orleans in a couple of weeks for guess what? >> caller: mardi gras. >> no, super bowl. >> caller: oh, yeah. >> okay. >> caller: leap frog, top ten toy of 2012. toys r us announced their tablet back in september, there has been a short interest, it's leap pad two and leap pad sold out multiple times over christmas. nice run, do you see the run continuing back up? >> too dicey a stock for me. disappointed so many times. a nice move up. i had take a pass and i'm not going to leap the frog here. don't buy here. i feel it's gone up enough. let's go to rick in kentucky. >> caller: hey, mr. cramer, how are you? >> i'm fine, mr. rick. how are you? >> caller: i'm good. i spoke to you in early december

about cabela's, and it's up 7% or 8% since we talked and i've been very happy about that and appreciate your good advice, but i feel like we're in the early inning of this game, maybe third or fourth inning, like their expansion plans, they picked a great location here in louisville, and they are driven a lot by catalog sales. my question, how far do you think it can go? is this early on in the process? what's your target for that particular stock? >> i've been staying away mentioning it, because it has a lot of hunting -- first, i love my cabela's, point blank. but because of the terrible tragedy in connecticut, i felt that cabela's sales could be hurt. it's a really good investment, and i think you can ride it through. got a dollar and a dream? what i want you to do is take it to five below.

there is just too much working to get the individual dollar stores, but you know what? this one has a secondary. this one has -- it's begging for you to go inside it and buy something. five below, trumping all the other guys. stay with cramer. coming up, can you handle the heat? cramer gets you fired up for a searing hot lightning round. officemax has exactly the ink... your business needs... at prices that keep you...out of the red. this week get a bonus $15 itunes gift card with any qualifying $75 ink purchase.

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it is time, time for the lightning round. i take calls and i say buy, buy, buy, sell, sell, sell. and we hear this sound and the lightning round is over. are you ready, skedaddy? let's start with joe in new york. >> caller: joe in garden city. i'm asking about cot, how is it affected by the new tax france is putting in? >> frankly, i'm more worried about what's going on in the middle east. i like the stock, good yield. i think it should be owned. tax or no tax, middle east, those guys are good at what they do.

>> caller: a big booyah from florida. >> what's going on, sunshine? >> caller: i called a month ago for cisco. you told me to buy. now it's $21. you think i should buy? >> i think it's good. a very hard stock. i see the orders coming from the telco companies, so my charitable trust pulled the trigger, bought cisco. i think it will go to $24. sally in california. >> caller: a big booyah to you from california. can you tell me about anteras pharmaceutical? ants. >> the injectables, very competitive business. not a believer or buyer of that particular industry, not that crazy on the stock. let's go to drew in california. >> caller: dr. cramer, l.a. kings stanley cup champ ba ba booyah to you.

>> what's up? >> caller: thank you for getting me back in the game in 2012. my stock has a lot of insider buying. chesapeake, chk. >> a hard one to own frankly. i'll tell you why. my trust owns southwestern energy, which i think the ceo will tell you, is a darn good company. natural gas prices won't go up i feel. and i worry about the fact that that stock has too much natural gas exposure. chesapeake is only a hold, not a buy. let's go to bill in wisconsin. >> caller: hi, a buckeye booyah to you from wisconsin. >> buckeyes, ohio? okay. >> caller: i'm interested in snts. >> profiled that stock in the first two years of the show and have not looked at that it in six years. i have to come back about santerus. i don't know how it's currently

doing. let's go to mike in florida. >> caller: jim, booyah, thank you for taking my call. >> you're welcome. >> caller: thank you. you've been really helpful to a new investor and made me some money. >> @jimcramer, always a debate if i'm a fool or a charlatan. >> caller: i'm holding and questioning emc corp. >> four downgrades, the last one shook me out from the charitable trust. i feel like it's on shaky ground to begin with and emc is even shakier. too many downgrades, i don't want you to own it. that is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade. ♪

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♪and you will be happy too. 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.

when i tell i think you should own a stock, that doesn't mean you should throw all of your eggs into that one basket. even if you are almost positive it goes up. because diversification is the only free lunch in this business, which is why, of course, we play am i diversified every week. you by this time know the drill. call me, tell me the top five holdings, and i tell you if you are diversified enough or you need to go back to work. i can't stress how hard it, even in a soft market. let's get started with a tweet. yes, @jimcramer, someone went on, didn't yell at me. @roymessaros, ph.d. am i diversified?

apple, caterpillar, celgene, gilead, yum? let's go to work here. we have a high-quality problem. here we go. caterpillar, industrial machinery company. apple, terrific company. there i said it @jimcramer twitter. why would i want it to go down? my charitable trust owns it. yum, restaurant company. and here is the problem. you've got two of the greatest companies in the world. celgene and gilead. i am going to swap out cgln and keep gilead. and you know what we're going to swap? we're going to put in nike. nike. i'm not worried about -- i was worried about chinese overlap for a second. you know, i am worried. that's a mistake. let's put in ross stores. get a retailer in there. a little just kind of mix it up. a little.

i have ross stores, stephanie and i think it's going to go up. >> caller: jim, a big gratitude booyah. >> i'm liking that. you're welcome booyah back at you. >> caller: thank you. i started listening to you about a year and a half ago while i was on unemployment, and anyway, here is my top five from my roth ira. apple, aapl. annaly, nly. i'm concerned about that one, and wondering if i shouldn't buy at&t. >> we'll address that. >> caller: okay. southern copper, that's my foreign play and eli lily, and iau is my gold play. >> man, you're smart. i'm glad you're off unemployment and doing some work. that is fantastic. that's what america has to do. and people come, say they are not looking for work. i've been unemployed, looking for work.

gold, we think it has a place in everybody's portfolio. eli lily, high-yielding pharmaceutical. we swore up and down that dividend is good. apple, a terrific company. i don't want it to go down. i own a bunch. and annaly is financial, and southern copper, mineral, precious metal, pharma, tech, financial, yes. new management at annaly, i think that management has been well schooled, no longer concerns, it has come down a great deal. not expensive. johnny in new york. here is johnny! >> caller: a ba ba ba, a ba ba ba, a ba ba ba booyah! >> another person whose day job must be kept. go ahead. >> caller: i do what i can. i just want to say i love you in the morning too, mr. cramer, on "squawk." >> you like that show? i got the night show, the morning show. i could use another three shows. three more shows, and then i might be too busy, including a special half hour on espn.

go ahead. >> caller: i already don't change the channel. i wake up with you, fall asleep with you. >> get that alarm clock, man. >> caller: i got it. >> i know it's sweeping america. >> caller: my stock is off. qualcomm, qcom. verizon, vz. silver, slv. and here is where i might have some problem. whole foods and hain celestial. >> wow. you identified it. you brought it. hey, listen. you put it out there, so i have to follow through. first of all, verizon, high-yielding telco. i was worried about the notion qualcomm which sells chips that go into smartphones, and i was going to approve that. and silver, poor man's gold.

i prefer gold, but it's okay. hain, one of the largest sellers of natural foods, and whole foods, so we'll trade out of hain, and we need a pharmaceutical. we'll go buy some pfizer. that's the conclusion of am i diversified. if you think running a restaurant is hard, try running four. fortunately we've got ink.

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more than a century ago, the german philosopher frederick nietsche said there would be a reevaluation of all values. i think he was right when it comes to bank stocks. the days of the radical revaluation of banks are upon us. the days that we say it's because of the crummy net interest margin are being put behind us right now. the days when we worried about the government every minute, those are a thing of the past too. it is simply time to make money in the bank stocks and it's important to recognize that because of the difficulties of the previous year and how hard it is to run the gauntlet of the new regulations. only a handful of companies that can dominate in each space. those companies will make cha-ching fortunes. goldman sachs, which my charitable trust owns, and jpmorgan. goldman dazzled, and not just in that department.

it was truly -- i was truly shocked at how much money goldman made in equities and fixed income, commodities, currencies, goldman has a return of equity of 15%. that's about twice what people thought they would have at this point in the cycle. the shareholders, you, are getting the incremental gains, not the people who worked at goldman. the ratio of compensation to revenues was 37.9%, compared to 42% the year before. they are leaving money in the firm, that's shocking. the real story now, not a jerry built one. this is not a hedge fund in drag, that was thee accusation that used to get thrown out all the time before dodd frank. the gains about regular business lines making a huge amount of money and dominating. tangible book is now $134 per share and this company deserves to sell at a 24% premium. like the old days, you see them going to the 160s, and straight

line off this quarter. i would buy it right here. with that amount of cash, they make money every time they turn the lights on each morning. how about jpmorgan? what do you say about a company that does $100 billion in revenues and cut the ceo compensation in half because of the whale issue, now put behind them for good. and never mentioned on the show again. the whale is back in the natural history museum. this isn't star trek 4. we aren't out to save the whales. here is what's incredible about jpmorgan issues. and you know what that means? it says are you overly focused on one line, not on the other dozens of lines. the one line which will change as business gets better in america and around the world. and the fixation on the government thing? it's past, it's over. and jpmorgan will return a ton of capital to shareholders soon enough. the rest, about to become passe. it is starting now. today. stick with cramer. so, we all set?

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