day since the japanese bond market cratered, aflac. big exposure in japan. short it at least or sell it and get out. >> thanks for watching. we'll see you tomorrow at 5:00. do i'm jim cramer. 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! >> 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. i want more days like today. my job is not just to entertain you but to teach and coach you. so call me at 1-800-743-cnbc. too many people are mystified by this market. too many people are thrown off by the bounce-back we had from

friday's hideous employment number. or the reversal we experienced midday today which allowed the averages to close in the green. the dow gaining 48 points. the s&p climbing .63%. the nasdaq advancing 5.7%. so tonight, right here, right now, i'm going to explain -- explain it all. in english. and place it in the context that you can understand. the first and most important issue behind this rebound, we have a massive inferiority complex in this country. ♪ we simply don't believe in ourselves. and we certainly don't believe in our companies. and their ceos, especially not ron johnson. who was fired tonight from jc -- who is stepping down from the ceo job at j.c. penney and not a moment too soon.

something we will certainly address later on. when we remove his visage from our own wall of shame. we do however believe in our president. and when he says as he did as recently as four weeks ago that the u.s. economy could collapse because of the sequester, he does have the ability to freeze hiring and frighten people beyond belief. did he use the term collapse? i heard the same thing you did. which was to be afraid. be very afraid. now, i didn't know how badly the nation's business psyche was hurt by the president. president obama's endless pronouncements. neither is one of my favorite columnists peggy noonan hailed him as the fear mongerer in chief. the vast majority took the president seriously when he warned of chaos and gigantic layoffs. think about it, are you going to apply for a loan to start a new business if you know there are

going to be layoffs to rival those in 2009? are you going to hire more aggressively even as the federal government is firing more aggressively? is this the time to hire more salespeople when the government -- a huge customer has to cut back on its orders? do you want to be in the travel business when the transportation secretary says the lines at ear ports will be so huge that it clearly discourages travel? i don't talk to just business people, although to a person they were scared. so i'm in new jersey, when i heard the warnings, well there goes our numbers. i guess we'll be empty like everybody else. any town that relies on the military's largess had to be hit hard. the richmond fed which deals around washington, d.c. came out with data that said that business decelerated last month. the justice department are saying they can't prosecute as many bad guys because these layoffs are so drastic and devastating. i guess the rest of the economy has to fall apart.

because the fed's retrenching. well, as it turned out, the hammer the president warned of never hit and it seems that the furor has sub sided. with that, confidence might come back a little. i saw a line at reagan yesterday, most of what happened hasn't happened at least yet. most people material that it was manufactured to get congress to make a deal. while there will be more sequester layoffs, it's possible we may get a bounce-back, exfederal employees. we are real down on ourselves. you know that, we all know that washington is totally dysfunctional. that makes us feel -- both republicans and democrats align. no one is excluded. we have the -- we know that jobs are hard to find. we're only building the two-thirds the number of homes of a few years ago. more companies would rather pay overtime to existing employees than hiring new ones.

perhaps they're afraid of running afoul of the affordable care act? the small business creation isn't happening in this country that we can tell. but as inferior as we might believe we are, you have to look at what's happening overseas to understand why i say our complex is causing us to misjudge the strength of the stock market. because we feel inferior we think our stock market is inferior. first, despite a belief by many of the wealther people that the president is only a few inches from being confiscator in chief, it wasn't our country that put forward the concept of taking a huge cut out oft bank deposits the way the european union was willing to do to those in cyprus. if you're wealthy in europe, would you really keep your money deposited in a bank that perhaps tomorrow the european union

might say should not be insured? why not send that money to the u.s. banks? wouldn't you rather worry about a return on capital than a return of capital? no one in the world would contest the idea that the banks are the soundest on the earth. no, they forced them to raise the equity. does anyone mistrust the fdic in this country? i sure don't. if you're a wealthy european all you have to do is wire if money into the u.s. bank. except for the pension funds. they should consider buying real estate now that capital gains won't be taxed as they have been since 1980. how about if you're in china? do you think china is doing better -- boy, what a horrible head and shoulders pattern that is. i think china is struggling. more important, i would fear unrest. i can get my money out of china, put it here, real estate in particular. u.s. banks in general.

now at a certain point i think china has to bottom. it count pretty soon. i saw copper trade up higher today. if i lived there, send the money here. come on, right? finally, there's the japanese. i think that most americans really and truly do not understand what happening in the last few weeks in japan because it's frightening. if you have any wealth at all, it is frightening. you see the government there has decided that it's going to print yen more aggressively than i have ever seen a developed country inflate in my lifetime, previous to my lifetime there were countries that did this. we don't need to go into them. the japanese government, they're buying everything. they're even buying etfs. can you imagine the federal reserve board deciding to buy the etfs? ben bernanke says give me some of the retailers, or hey, hey, take the -- get some of the bank stocks higher. how crazy would that be? we have etf buy numbers out of japan that shows how much

they're buying. i can't imagine a rich person wanting to keep his money in yen if they're embracing that idiotic inflationary strategy. during the 1980s, japan's stock market roared and roared until it dwarfed our own and real estate far exceeded the real estate in manhattan. tokyo much more expensive than manhattan. some parts are but not the rest of the country. they ruled the financial world in the late '08's's. every morning i'd come in and watch the money flow into our stocks. usually at about 10:00 each day from japan. it was so predictable that a lot of us would simply buy stocks at 9:30 and flip them to the japanese at 10:00. well, guess what? it's back. i'm seeing it. i'm hearing it every day. the japanese are once again in buying just like the old days. you just had to be trading in the late ' 80s to remember this. they're not just content to buy our treasuries.

they want the utility to high yielding drug and food stocks. this is like '86 to '89. a water fall of money coming our way. why don't we see it? because we think we're so dysfunctional that we can't believe anyone would covet anything we own. but we don't understand that our property rights remain inviolate in our country. and our democracy and freedom including the freedom to be rich distinguishes us from every other country on the earth. here's the bottom line. our american inferiority complex is minding us to what's driving the stocks higher. the wave of money that floods our markets every day. surf it. the tide is going our way. larry in massachusetts, larry? >> caller: good evening, rabbi cramer. how is the soothsayer tonight? >> i don't know. all i can tell you is that the bosox look a lot better than

phillies. >> caller: i suppose so. i was in citi field last year -- citizens field. it was -- it was a rough night for doc, let's put it that way. >> well, it's kind of citizens morgue. really incredible what's happened there. i was crying last night. we came back within one run -- never mind. >> caller: there's always hope. >> yes. >> caller: tell me about the avian flu. i weathered the storm of the chinese cleaver in january. and yet, we have got another one now. i scaled out last week but i'd love to know with a 1.03 peg when you like us to get back in? >> well, all the chinese related stocks traded up today. and i think yum was part of that. stephanie and i sold our yum. we said maybe in the low 60s we'll go back. the avian flu crushed the stocks the last time. probably a short duration.

i can't be in yum. the numbers are too high. keep your eyes on the money that's flowing into our great country. yes, our great country, it's driving higher. i know, we had a lot of fear. a lot of fear. but i think it is subsiding. don't be blinded by the american inferiority complex. "mad money" will be right back. coming up, sweet spot. a big buy in the oil and gas business sent shares across the space higher today. but which of these companies have real potential? and which are running on empty? and later, fantastic formula? all this week, cramer is taking a microscope to big pharma to find the healthiest place. tonight, a street downgrade of these shares that investors are reaching for the tylenol, but could the pain be relieved soon? plus, new construction? some new starts are planning their street debut this week including one of the first to enter the red hot housing market in a decade.

but are these companies build to last or could these offering fail to find a foundation? all coming up on "mad money." . . "mad money" back to school tour is in session. we're headed to the city of brotherly love. if you're a student at villanova university and want free tickets to see cramer do the show live on campus, thursday, april 25th, visit madmoney@cnbc.com. don't miss a second of "mad money." follow @jim cramer on twitter. have a question? tweet cramer #mad tweets. send him an e-mail at "mad money" or give us a call at 1-800-743-cnbc. miss something? head to madmoney@cnbc.com.

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general electric gets it.

today, ge paid $3.3 billion for a stock we suggested would get a takeover bid -- lufkin. because ge wants to dominate the oil and the natural gas service industries. i have liked leff kin ever since i want to the balken shale. we stood in front of the nodding donkeys. it can be shipped to writ is needed. it's a crucial part of the oil and gas food chain that is indispensable to getting it out of the ground. you have ge -- yeah, ge gets it and they made you $24. or 37.6% just today. that's right. today. if you anticipated this acquisition. now, we would not spend as much time talking about oil and gas in this show if this didn't make you the kind of money that i have seen so often. whether it be lufkin, gardner

denver. okay that was another oil service company and at a nice premium by kkr. another outfit that united nations this revolution that can makes you so much money at home. the reason the money is being made is simply because the opportunity is humongous. on "meet the press" this weekend, i discussed the need for the keystone pipeline to be permitted if you wanted high-paying jobs including unskilled ones to be created. listen. we have tons of oil and gas, you put the people to work on the pipeline, $60,000 you'd put people to work all over this country. i emphasized that it can bring back manufacturing jobs which we need in this country. jobs are being exported to places that have higher energy costs than we do. that eliminates some of the edge that the companies have in lower labor costs.

no, i still don't think people understand how big this is. they don't understand how big the opportunity is. i know this because i couldn't believe the outpouring of incredible venom toward me. i mean, vicious @jim cramer on twitter for my embrace of these positions. hey, maybe some facts would help. 9.6 million full-time and part-time jobs in the direct and indirect production of the oil and natural gas. that's about $580 billion in annual labor income and the sector is responsible for more than $1.1 trillion in value added. call it 8% of the gdp. these numbers are growing rapidly as more finds are announced, more oil is brought out of the ground. to me the bigger issue is the multiplier. this is what people don't understand. this is why people are so wrong about this industry. for every one oil and natural gas sector job created, the american petroleum institute says 2.7 jobs are supported in

creating materials, technology, and most important pet row chemical plants and equipment labor that's why i believe keystone could create as many as 60,000 high paying jobs. i know people doubt any figures as a real enemy of man kind. fossil fuel promoter. although natural gas is cleaner than coal which it often displaces. you can doubt the industry all you want. just go ahead. you can doubt all you want on climate change for certain. i do. but don't doubt them on jobs. because of the massive amount of work and prep we have had to do for our visits to the balkan shale in north dakota with continental resources howard hamm and then they were dead right when they said that natural gas would break out in this spring, 2013. we did too much work on this thing. it's like empirical. we saw the difficulty of getting enough people to work in north dakota as we flew over it and couldn't believe the man camps we saw. the hardship in trying to get a

hotel room near the utica shales. if people only knew or washington would embrace the oil and gas revolution, then these positions could be filled by those who are so desperate to get jobs but happen to live in the wrong places in a country where mobility has become an intrackable issue. we know that. we know that the natural gas is increasingly gaining here. as a surface fuel. and we believe it's only a matter of time before the trucking companies embrace westport and cummings engines, the way that waste management has. and in part it reduces particulates in the air and it would cut back the use of diesel by leaps and bounds. remember, they import 25% of the oil. we could reduce that dramatically. maybe to nothing. how can you profit from it? we know the earnings are going to be fine.

not going to be great, why, because schlumberger have told us it's cut throat. of late, it means nothing to jeffrey immelt, the ceo of general electric who penned a piece on lincoln entitled game on. shale gas could ignite manufacturing, lead to energy independence, end quote. i expected ge is going to do much more buying in this space because of the multiple prongs. everything from ge locomotives which are tested with westport engines to the natural gas turbines which so many utilities are switching to. along with oklahoma city, they're creating state of the art technologies to harness this energy. what will ge do next? let's see, they had a stake in the artificial lift business that luf kip dominates. and as well as water management technology. given that lufkin extended ge's exposure to lifts what could extend the rest of ge's reach? first i'm thinking fmc technologies which makes processing technology along with

fluid control equipment. natural fit, natural compliment to the existing pump business. this is a $12 billion operation. it will be too big for most companies as well, but not for ge. second, chart industries. dominant maker of the equipment that liquefies natural gas. it is performing fabulously. you can win it on earnings or a takeover. this one is only $2.3 billion, rounding error for ge. if they want to boost the water cleaning, they can buy a company that cleans up the water. and finally if ge wants to buttress the research only one independent company can leapfrog them to the top and that's the $6 billion core labs. they own the intellectual property that allows for the big oil players to make the gigantic finds that are keeping

production growing. by the way that's the lifeblood, so here's the bottom line. we are in the infancy of this oil and gas revolution with multiple shales being exploited. perhaps the biggest ones yet to be discovered, i have to tell you in california. they're out there. ge wants to be number one in this business. as it is in so many other businesses and lufkin is a step towards that. but chart energy, clean harbors or core labs would cement that leadership. i'd recommend a company stock on this show as a potential takeover candidate if i think the fundamentals are faltering but all four of the companies are doing just fine. and they make for terrific targets. for ge and it's game on quest to further the energy revolution. buy buy buy. let's take calls. lloyd from illinois. lloyd? >> caller: cramer, lloyd from southern illinois. >> what's shaking?

>> caller: i have got cd's coming out, they've matured. i'm looking to get more bang for my buck. the two stocks i'm kind of considering is schlumberger and kinder morgan partners. >> this is easy for me because you mentioned the cd rollover. cds from 2006, 2007, you were getting 6%. now you're getting 0.6%. buy kinder and i think foreigners are coming in and that's how good that is. sandra in ohio. >> caller: hi. boo-yah to you, jim. thank you for having our backs. please give me your opinions on national oil -- >> i think it's a buy. we got shaken out of that. stephanie lincoln, coportfolio manager, it is so, so hard to own because it trades so wildly. i was going to mention this as a possible candidate for ge to buy. but i worry about the quarter. wait for the quarter and then

maybe we'll do some buying. oil and gas revolution was booming today, thanks to ge's acquisition of lufkin. a company we saw up close and personal in north dakota, fmc, chart industry, clean harbors, these make a lot of sense. i want to tell you, i think that ge is going to be buying them like crazy. i think you should be buying them too. stay with cramer. coming up, fantastic formula? all this week, cramer is taking a microscope to big pharma to find the healthiest plays. a street downgrade of these shares that investors are reaching for the tylenol. but could the pain be relieved soon? oh, he's a fighter alright.

since aflac is helping with his expenses while he can't work, he can focus on his recovery. he doesn't have to worry so much about his mortgage, groceries, or even gas bills. kick! kick... feel it! feel it! feel it! nice work! ♪ you got it! you got it! yes! aflac's gonna help take care of his expenses. and us...we're gonna get him back in fighting shape.

♪ [ male announcer ] see what's happening behind the scenes at du for the for the last two weeks i have been talking about the past and future of pharma. doing some reminiscing about the 1990s when the big drug names used to trade like turbo charged growth stocks that they were and then some of the biotech stocks, because they could have the spectacular growth going forward. but after two straight weeks of telling you about big biotechs like celgene and gilead or small ones like immunogen, i don't want to leave you with the wrong impression. it's not that growth biotech stocks are good and slow growing big pharma names are bad. that's what i call a false dichotomy.

the truth is a little more complicated. the big pharma companies may not give you the rapid growth, but they give you something else that's really important. they give you big, bountiful dividends that therefore transfer into high yields. i'm not trying to make your portfolio overdose on drug stocks here, however, you need a high yielder in your portfolio that's especially true right now when interest rates are this low. never thought they'd be this low in my whole life and will likely be there for a long time, thanks to ben bernanke. we got that hideous jobs number. the parlor game of guessing when it's over is over. as long as the fed is keeping the rates low, investors are looking for a cd that rules over. the returns from those cds laughable. and that leaves dividend paying stocks. hence, one of the major reasons why big pharma has been on fire

lately. they tend to perform bet wherp the economy does poorly as investors search for safety. that's another component of the big pharma rally. the market was anticipating a lousy drug market, so it drove the stocks higher. i have to tell you, i don't think it's over. it's going to take some breathers. so with that in mind, i want to take a closer look at big pharma this week. because the large drug companies are not all created equally. because many of you own the stocks, these are bedrock portfolio names for you. let's start off with one of the favorites in the space. i'm talking about johnson & johnson with the 3% yield. better than 30-year treasuries. even without factoring in frankly the tax treatment for dividends. and china has a aaa, what country is that like? i like j&j so much i own it for the charitable trust. i'm anxious to buy more after that jpmorgan downgrade this

morning. it was one of those downgrades based on valuation, i'm tired of hearing. this meaning the stock has moved up too fast. i find that premature. why do i disagree with jp morgan? simple, j&j is a big, messy company. gets 38% of the sales from pharma. 41% from medical technology as well as 31% from the consumer products division. i think it's a case of a company begging to be broken up. j&j's pharma business has appeal here. and the money managers are getting a higher valuation than the combined company does right now. meanwhile, the medical device and consumer parts of the company, they have a completely different set of cohorts. the wall street fashion show likes the stocks simple. right now, j&j is complicated. but if it were to simplify

itself, but the downgrade to j&j is at a premium to where it would trade if it would break up the sopt. that's much more value to be unlocked than anyone would believe. j&j is the best example of a stock that can explode higher and then go higher still after we have the pieces trading. plus for years j&j was mismanaged. under the unfortunate leadership what a diplomat i am, bill weldon, the company got hit with a host of product recalls. especially the consumer products business. hey, maybe some were taken off the market forever. well, it seemed from ever, as long as we got the market share and the stock lagged the rest of the froup. but weldon left the group a year ago and he was replaced by alex gorsky who was widely viewed as the brightest young star. when you get off the table and

get off the desk with pharma executives, they talk lovingly about gorsky. since then, j&j has been getting the house in order. and considering that he took over a year ago, you're getting a 27.7% return. i think the move is far from finish. j&j is trading at less than 15 times earnings. the companies can't grow as fast as j&j when it gets its groove back. granted, j&j still has issues including the big fda mandated recall of an orthopedic device back in february and a ton of lawsuits for the artificial joints where i would say from my legal training they have some real bad facts on its side. but that doesn't seem to put a lid on stock. however, the company has been doing a bunch of smart things. j&j closed on the acquisition of sinthis. expanding the orthopedic

offerings, giving them more exposure to the trauma business. j&j has a gigantic metal pipeline. this division is looking better by the day. that said, the important part of the company is the pharma business. i wish they'd spin it off as an indpen department company. they're so far over the patent cliff that people have decided that it's splat. many of their biggest drugs have lost patent protection, went generic. and the pharma division here is once again growing. j&j is a rapidly expanding oncology business. last year, their cancer products were up. their treatment for multiple mile aloe what. and then the prostate cancer drug which i think has a potential to be a blockbuster. and diabetes, that's a raging

illness. they just approved a drug for diabetes. and plus they have the rights to sa rel that. an anti-clotting drug that reduces the risk of strokes. it breaks up the blood clots and the fda just rejected it as a heart attack drug a couple of weeks ago. i think it can do over a billion dollars. beyond that, j&j is a healthy pipeline. they have a hepatitis c drug and rheumatoid arthritis drug. i think you want to own the stock ahead of the meeting. buy some next tuesday when j&j reports the next quarter. you know what everyone is saying to me the quarter is going to be ho-hum. i don't think the quarter is important frankly. but if it knocks it down when it's announced i mean what a great opportunity to pounce. i do not expect this quarter to be the breakout that a couple of people are looking for. so

so here's the bottom line. even after this run, i think johnson & johnson can be a terrific break up play as the pharma is growing much faster than the rest of the company. if it is to be spun off, it would get a higher valuation. j&j is paying to unlock value with the juicy dividend, 3% yield. which the company will most certainly raise as they have done for the last 50 consecutive years. don't move. "lightning round" is coming up next. the the "mad money" back to school tour is in session. and this time we're headed to the city of brotherly love. if you're a student at villanova university and want free tickets to see cramer do the show live on campus thursday, april 25th, visit madmoney@cnbc.com.

he's out! yeah, ron johnson, the errant ceo of j.c. penney is history. not a moment too soon. we put ronnie on the wall of

shame back in february 28th, urging him to spend more time with his family back in california for the good of the brood as well as for the shareholders. i'm calling this a win for the people. mike goldman, the man so mistreated by johnson is back. at least in the interim. he can no no worse than johnson i felt hope for the people who are work at j.c. penney that ullman can save the company. even though they lagged the stocks of other department store stores at the end of ullman's tenure. now, it is time -- it is time for the "lightning round" on cramer's "mad money." that's where we take your calls. buy buy buy, sell sell sell. ♪ are you ready? let's start with will in tennessee. will? >> caller: hey, jim. boo-yah from arkansas alumnus

living here. >> what's up? >> caller: the stock is tri. i worked for thomson reuters and i'm maxing out the employee purchase plan. is that a good plan? >> i think it's a steady business, i think they're a long-term winner. that can be controversial for some. but i praised them in the speech i gave on saturday. and i reiterate it. let's go to costa in pennsylvania. >> caller: boo-yah cramer! >> exactly. >> caller: you are a machine. >> a lean mean fighting machine. >> caller: that's right. nee, i have had it for four years i love it. >> well, i see -- got a yield, okay. i wish it would come in at 4.5%. we need to go to joey in new york. >> caller: hey, what's going on, this is joey calling from college in new york city. >> horn college, good luck.

>> caller: i'm asking about menswear house? >> i like mens warehouse. they have to stay consistent. i'm banking on this next quarter to be good. i need to go to johnny in california. >> caller: boo-yah, cramer. >> university kids we love them. what's on your mind? >> caller: if the market pulls back what do you think about ipg platonic? >> lasers, medical lasers, lots of different lasers. i'm going to go with jdsu. let's go to andrew in virginia. andr andrew? >> caller: this is andrew from the investment club. >> how many kids at college watch tv these days. thank you for calling. we'll be there. i hope you'll be there. >> caller: thank you. we were wondering if you had any insight on the stock -- sticker ryn. we're thinking of pitching it in an upcoming stock pitch competition. >> i wish the yield were higher.

the stock has moved up too much. but that said it's a high quality play. may i just point out that i like warehouser more, wy. the better investment. i'll take another call. jim in pennsylvania. jim? >> caller: hi, jim. boo-yah. >> boo-yah to you. >> caller: what do you think about suntrust -- >> i think i have sellers remorse. travel trust, we decided to sell this stock and build up the other banks. ever since we sold it it's been a rocket ship. i want's killing me. take one more. joseph in wisconsin. joseph? >> caller: jim, national championship night, no cheap scotch tonight. i'm calling about toll brothers, tol. is it a buy here? >> you're right on the no cheap scotch. toll brothers is good. terrific. i saw i think it's buy buy buy. that is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade.

coming up, new construction? some new starts are planning their street debut this week. including one of the first to enter the red hot housing market in a decade. but are these companies built to last? or could these offerings fail to find a foundation? [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right. you're thinking of the 1.6 million daily customer care interactions xerox handles.

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♪ ♪ another day where we got crushed before we rallied later today. an entirely mixed picture. there's one corner of the stock market that is just on fire. that's ipos. we know that 2013 is so far anything better. we saw 31 deals and they've given you an 18% return since becoming public. 18% is the average. in the first quarter, including the bad ones that's just an average. you'd be more selective and you could have done better. i think this is likely to continue. which is why tonight i'm going to tell you a tale of two upcoming ipos. first, what kind of ipo should you stay away from? intel stat.

they provide video and data services around the world. this one came to my attention because of the sheer size. intel operates more satellites, and they have more services to more customers in more countries than any other commercial satellite player out there. the company plans to raise $500 million by offering 21.7 million shares. and at the midpoint that would give intel stat a big market cap. last year the company generated $2.6 billion in sales. so on the surface it seems inexpensive. why am i telling you to stay away? for starters, they lost under $147 million, even that's hardly a start-up, it's been around since the '60s. what really turns me off is the underlying reason it's not profitable, they have a mountain of debt. nearly $16 billion. they plan to use the proceeds from the ipo, pay down some of the debt. which is good. we're still talking about a gigantic mountain of death. in truth, it's risky.

20% of the business comes from the government. what kind of ipo is just right? let's consider taylor morrison. a home builder that could be the taylor swift of the ipo market when it becomes public later this week. you know that housing is on fire. mortgage rates are super low, affordability is terrific. housing related ipos have had a phenomenal track record. it popped 12% the first day it traded. boise cascade maker of housing materials spiked up when it ipo'd on february 25th. october trul ya soared 41% the day it became public in september. you get the picture. and the home builders after being hammered, they've been working their way back up today. so the timing for taylor morrison couldn't be better. they build and sells homes in three regions. first the east which is really the south, which is houston and west florida. and the second is -- they

operate in phoenix, phoenix, arizona, northern and southern california and third, a small canadian business accounting for 17% of the sales. these are markets that have experienced significant improvement in home of late. last year, taylor morrison closed in on 4,013 homes. the company increase orders by 48. -- 45.8% year over year. they have been profitable three years in a row. they own terrific real estate including -- at the bottom of the cycle. now taylor morrison plans to become public later this week. midpoint of the range, $2.6 billion company. more important, it would be selling at a slight discount to the average home builder there as the group trades two times book value. here's the bottom line. the ipo market has been on fire this year. doesn't mean we should caution to the winds. stay away from intel stat, but the taylor swift of the ipo market, taylor morrison, this is

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my two my two favorite speculative ideas for 2013, the airlines and the mortgage insurers, well, they're starting to come roaring back. aided by timely research, these aren't one quarter wonders. they're not flashes in the pan. you know, i have hated the airline stock ever since i gaffed my whole goldman sachs

account base when i recommended american airlines as the best stock in 1995. i have stayed away from them ever since until this year when the government blasts the u.s. airways merger to bring them out of bankruptcy. today, deutsche bank has a preview, airline stocks on track. this is astounding. explains why a lot a lot of the crew they have been so good. why the increase in the index is up 27% this year. that far exceeded the s&p's excellent first quarter. that's incredible. 27% versus 9 or 10%. deutsche bank is predicting 42% upside for delta stock over the next year. 37% increase for united continental. 27% move for u.s. airways. the stocks are catching up to the fundamentals as deutsche bank points out this could be the industry's fourth straight year of profitability and the seventh year out of eight with

positive free cash flow. pretty good. the best i believe will be the u.s. airways amr combo. it will most likely not be challenged by upstarts. that's always been a lot -- been the case every other time that they have pricing power i can recall. the big roots are being divvied up a couple of large, sensible, rational, big players. i sense that the price wars are a thing of the past. we recently interviewed ben -- the ceo of spirit. the only real upstart with traction. he wasn't the least being interested in competing with the big boys and likes to go with -- again, the bustling of the consolidation by the antitrust division makes this price depreciation possible. as far as good research macquarie recommended radion. you know my favorite of the group. it comes out from the rollout. remember, the rolling off of the

bad mortgages and increasing the money and good mortgages. something that's happening at lightning speed. there used to be ton of players but the competition has dropped off dramatically. and the government which had been the biggest player in the industry, via the fha has reined in the business dramatically. only will get more and more -- let's just say less competitive. i believe a lot of people are late to the party, but i believe leaving right now before the explosion of positive hits is just plain wrong. the sponsorship for the two groups is still minuscule. that's much closer to the beginning of a move than its end. these stocks should be bought here and bought buy buy buy aggressively. stick with cramer.

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♪ ♪ the new blackberry z10 with time shift and blackberry balance. built to keep you moving. see it in action at blackberry.com/z10 it had to it had to happen. when you're down 30% on comp store sales you cannot put any more money behind a guy who did that. this is an arrogant man, i want the j.c. penney people and the store to survive. i don't know whether it can. mike ullman at least knows it. maybe he can turn it around. he's a good guy. but the destruction