>> i'm jim cramer and welcome to my world. >> you need to get in the game. >> these firms are going to go out of business and he's not, they're notts. 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 cram erica. other people want to make friends, i'm just trying to make you a little money. i'm trying to teach you and coach you so call me at 1 -- 800 -- 743 -- cnbc. bear markets, they create problems. bull markets, they solve them.

bear markets, they sow seeds of were re- bull markets harvest that, those seeds, and turn them into something worth chowing down on. bear markets frighten people out of stocks. bull markets let those who stay, those with fortitude, those who are in placket double, and enjoy the games after the weekends have left the table. the bear has got of objections. the bowl trounces them. you saw all of that today with the final breakout of the s. and p. 500, which rallied to it's all time high of 1587. as well as the rally in the dow, up 129 points and the nasdaq's fabulous 1. 83% run. welcome back, apple. to understand the triumph of the bulls you have to go back four months ago to the perceived

wisdom of the moment. back then there were five closely held, near and dear tenets to pretty much everyone i heard or talked to. first, the federal government, it was about to jump off a cliff. taxes would rise for 100% of the people in this nation, particularly those in the middle class. taxes on the rich would skyrocket and dividends would be taxed at the new, very high ordinary in. second the fed was going to raise interest rates, maybe dramatically, because they be worried about inflation it was causing with its bond buying program. that meant after the tax return, the after-tax rate of return for dividend stocks would plummet. it would make them not much better than certificates of deposit. people would sell all of the dividend players. europe, after some months of call was back on the red hot, sizzling griddle. you know what that meant? italian bonds, spanish bonds.

here is a litany of banks about to have runs. fourth him of the debt ceiling was going to derail our economy for certain, even if we manage to solve the fiscal cliff and the sequester lurked ominously. no matter what deal the politicians made. these would have course throw us off track and cause much higher unemployment. finally, four months ago, fourth quarter earnings, the reports were right around the corner and they were supposed to be, yes, nothing to write home about, or maybe worse, particularly the worldwide slowdown that europe seemed to be mandating, we could have huge downside surprises and the last time we had some pre-announcements -- wait a second. what actually happened? how about we had the best first quarter in 15 years. how is that possible? i think it's because the market

has changed its animals. i'm not kidding. investors stopped being scared of washington or europe or earnings shortfalls and they decided to embrace the future, not spurn it. they became like ulysses and his crew, strapped to the mast, oblivious to the sell, sell, sell sirens of the saturnine set. where is sappho when you need him? we got to these exalted levels because standing pat paid off. look at what happened to those five closely held tenets, the five pillars of wisdom from the cognoscenti just last december. the tax code didn't change much at all. 98% of the nation don't pay any more income taxes than they did last year. that's a phenomenon for people who weren't impacted as opposed to what we thought happened. remember the alternative minimum tax? spending had been shut down because of a vastly couple kid tax increase that just didn't occur.

more important, many rich people believe that stocks would not be good assets after the tax code changes. dividend paying stocks were sold aggressively because of that new change in taxes. many companies rushed in their dividends to shareholders, putting tons of money into wealthier people's pockets. it was a bonanza, the ponderosa even. that and then that money already acclimated to stocks flowed right back into them starting in january. the whole worry, every bit of bearishness about how tax rates would wreck it and paying stocks totally backfired, which triggered the most incredible rebound in the dividend names that i have seen in 36 years of watching stocks and investing. the companies that were yielding 5% are now yielding 4%. why is that? because their stocks went up. that has been the trade of the first quarter. the defining trait of the year, actually. it was all on the backs of our friends, the bears. the bears wouldn't stop. i renumber saying at the beginning of the year that taxes are going to change, confidence

could resume immediately with a tsunami of stories about how little i really knew because i was at the end of the payroll tax holiday, the busman's holiday of the tax code. i pointed out that it didn't break up anyway, it wouldn't be a big deal but the bears dug in their cause and made a real federal case out of it. they were wrong. it didn't matter. it's insignificant. blown way out of proportion by so many bad news bears. second, the fed didn't switch its strategy because the fed chief isn't going to tighten until employment gets much stronger, something he's told us many times but we keep playing this stupid parlor game. we're not where he said he's going to stop with the cash into the system. you want to understand why so many talking heads are screaming for the fed to titan, you need to know that lots of the bears you hear are simply rich ideologues who just want to

spout laissez-faire pablum and don't want to give regular people a chance to do better, and they hate been bernadina for what he's doing. i've got news for these folks. the bulls don't care. unlike these politically motivated bears, the bulls know there is is not to reason why, theirs is just to make money or die. that's rule number one in the alfred lord tennyson guide to investing, one of his more obscure works. europe stopped imploding, contrary to what the bears expected. the government have been able to pay their bills. the banks are solvent except for those in cyprus which were crushed. it didn't cause any bank runs. they couldn't hire actors to get the runs looking like something. i haven't met able in europe, not for ages, but things will stop getting worse over there. stabilization is coming. whenever there is turnover anyway, whether it be europe or japan, where they are crushing

the yen, and the rich want their money here. who can blame them? it's nicer here. the sequester turned out to be a brilliant nothing, really and because it revealed there is no room whatsoever for the president to get anything done, maybe ever, if the republicans control the house. if they win next time it's going to be like this all the time. this is called red lock and we had it in the '90s and it was the best form of government because governmental uncertainty is among the biggest reasons why business is weak and it's a major obstacle to stock price appreciation when you have one party ruling. obama has twice tried to scare her body into believing that things are going to fall apart if he didn't get his way. it didn't happen. we will see a decline in the market because of all the tax receipt increases. the president and congress have made themselves irrelevant to the markets. that's lish. the bears at this point, the earnings, first quarter earnings won't be better than the first quarter but those didn't hurt then and they won't hurt now.

courtesy of the values in homes going up and stock price improvement, along with potential stimulus in china, bottoming in europe, could combine to allow companies to give bullish outlooks. remember it's the outlook and not the previous earnings that matters. i think it's fair to say the bulls aren't in control of the agenda anymore. their warnings have cost people too much money. their insistence that all we should focus on is when the fed is going to stop helping the economy has cost people too much money. there believe that washington would destroy us or china would destroy us or europe would strike us didn't pan out. that cost the most of all. when the s. and p. 500 moved it to its all-time highs today, the reign of the bears was winding down. they've been outed, not as skeptics but as well the cynics him a or even nihilists, who simply believe in nothing, and perhaps like my buddy in dostoevsky's the possessed, you

don't want to destroy your upper to the to get rich, too. there will be earnings shortfalls that will probably knock your socks off but unless they are crooked or corrupt or run by total buffoons, they will bounce back. i'm sure there are other countries in europe that will disappoint. slovenia, i've got my eye on that one. the problem is to be contained. there are exotic miss events that can conjure but unless they are catastrophic, we will look past them because as much as the bear can continue to create mayhem, the bull keeps finding answers. you can cling to the notion that the sky is falling or it is apocalypse. i come back to saying fine, but if you want to try to make money room number the bull, the bear is not in charge and we're finally able to break through to new highs on the snp. sumner in new york. sumner. >> how are you, jim? a wonderful pastiche of information on the hotel industry. >> you bet, chief. go ahead.

>> what do you think? i'm looking at the hyatt hotel corporation. can i do as well as i did with you? >> don't switch horses midstream. stick with hot. they don't call it hot for nothing. by rain in indiana. >> this is by run from the southern tip of lake michigan. i've been a fan since the kudlow and cramer days. never miss your show. want to thank you for all you do and all the advice you've given me. >> you are very kind. thank you. let's make money together. >> i bought my stock, life technologies, after you had the ceo on a wild back. >> wasn't he a smart fella 2 he impressed me. what should i do now, buy or sell? >> the papers. >> my brother's 70th birthday. happy birthday. >> i think the stock goes

higher. i don't want you to sell it. i would pay $70. we've got all these guys wanting to take the company over. i say hold on. it's good. animal spirits, it looks like the bears could be doing a little hibernating. the bulls in charge. a little pamplona thing going. i like it. mad money will be right back. >> coming up, read right. all week cramer is checking on big pharma stocks that are lighting up the tape. tonight from toothpaste to toms, jim is revealing a play that could keep your portfolio from the indigestion. later, natural stunner. some are calling it the largest untapped field of natural gas in the world and it could he about to make people a lot of money. it's a story of international intrigue him a geopolitical power, and it reads like the latest bestseller, this is far from fiction. cramer has got the play, all coming up on mad money.

>> don't miss a second of mad money. follow a's jim cramer on twitter. have a question, tweet cramer has tag mad tweets. send an e-mail to mad money a's cnbc.com or give us a call at 1-800-743-cnbc. missed something, head to mad money.cnbc.com.

>> with the market roaring today, s. and p. 500 hitting a brand-new all-time high, you don't want to hear my preaching about the virtues of caution and discipline, but that's just what i'm going to do. my job is investing. you know that unlike a lot of the talking heads out there, i met a huge fan of the bull. like most of you at home. i love it when stocks go higher. but i also believe we need to be prepared in case one of the many warnings, the jeremiads from the endless legion of bears, comes through. that doesn't mean you sell all your stocks. i took a call earlier and someone said i really nervous. i said don't sell your stocks. wanted to sell everything.

no, some of the stocks that rallied in the first quarter, i understand taking some off of the table but you can dump everything that moved up a lot, maybe lock in some games. i'm not in favor of that either because those are the stocks that are winning. that means you need to own something that will hold up if the market comes down and may even go higher if the wheels fall off this bull market. in a guy versified portfolio you need at least one defensive inning with a big event and to protect your wealth at all times. even in raging bull markets like this one where it might feel like it's a waste of money. you need an anchor and that's why all week i am focused on big pharma, because the best of these companies have exactly what you need for that defensive slot in your portfolio. their business is not dependent on the economy, and they've got bountiful dividends. what have i given you so far? two great ones, j. and j. and merck. tonight we're going to take a

look at one more. not all big pharma companies are created equal. some companies pay dividends that are more bountiful than others. take for instance, glaxo smith kline, the huge british drug company that is diverse if i'd, a host of diseases, respiratory, diabetes, oncology, and the rolla g. cardiovascular, you name it. glaxo unlike j. and j. is not a breakup play, although the company does have a big consumer division that i think it could sell or spin off in order to unlock some value. they don't need polygons or tom's and everything that i use here. this is not a ketchup play like merck, which we talked about yesterday, as this thing hit a new 52-week high. merck is a catch up play. j. and j. is a breakup play. this stock is a dividend play. the american version of this

stock sports a monster 5. 8% yield, much better than the other big pharma names at the moment. they tend to yield anywhere between 3% and 4%. i would never recommend a stock simply that has a high yield. that could be a red flag. that the danger of the dividend being cut could be out there. so what about the fundamentals? glaxo's revenues have been shrinking slowly, but surely. i think this company could be about to turn the corner. let me tell you why. it's a little bit different story from the others. glaxo had this huge legal risk but has now put that behind its when the company reached a $3 billion settlement with the federal government over the way they promoted some of their antidepressants and didn't report safety data on a big diabetes drug. very bad. then in december the country reached a bunch of smaller settlements with state governments and drug wholesalers. this is a big worry taken off

the table. it may seem like a high price but i think it was actually a small price to pay. second and more important, glaxo smith kline has a gigantic pipeline of late stage drugs that could possibly hit the market pretty soon, and some of these drug candidates have potential to be big sellers since the start of last year, the company has filed for approval for six new drugs, some of which could be multi-billion-dollar blockbusters. merck had singles, j. and j.'s rake up but this has multibillion players. next week the fda is convening a panel on a new drug with expectation they will decide whether or not to approve it in may. company has a melanoma drug that could be approved in may or june along with a new hiv drug that the fda is ready to sign on in august. there could be more phase three data on two high risk but very high reward products, the new cancer immunotherapy drug, and a heart drug in development.

the other one could be multi-billion-dollar opportunities. despite is loaded. yesterday i told you merck had a lot of players in its pipeline getting on base. glaxo smith kline is like the angels, stacked with power like josh hamilton, albert pujols, mike trout. they are living up to the potential. that said, glaxo smith kline is anna norma's company. $150 -- $150 billion market cap. these products are too small to move the needle more than a little but altogether, over the next three years, glaxo could launch 15 new drugs worldwide. that is a huge slate of products that could help achieve an 8. 4% compound growth rate through 2018. that would be a very big deal. we know new products can rally. even the largest pharmaceutical companies, pfizer broke out today on a surprise at the a breakthrough therapy designation for an anti-breast cancer drug. the management needs to execute these new drugs because glaxo

smith kline, let's just say it is in a race against time with its biggest product, the asthma drug advair, about to go off a patent cliff. there is no free lunch in this business except for diversification. advair a count for 20% of total revenue. that's unfortunate because generic versions are expected to hit the market in europe sometime this year. at their loses patent protection in the united states in 2017. in the united states him a at least it's especially difficult to get fda approval for a generic version of inhaled drugs, but you have to believe the european business could get hurt and the four years the un side will be living on borrowed time. the company's european business has been getting hits but i think they could turn the corner as they are restaurants ring aggressively in a play that could generate a billion pounds worth of annual savings by 2016. the next few years for this one,

they're all about the pipeline and i think the pipeline, it's really interesting because gs k. is never known as a pipeline company but this is the best i've seen. the pipeline is terrific. glaxo smith kline traits 13 times next year earnings and if management can execute on these new drugs and also cut costs i think they could trend up to 16 times earnings. where would that be? a $55.84 stock and i've got to tell you that's 17% higher than it is now. glaxo's historical multiple is more like 19 times earnings so the stock is pretty darned cheap right here. when i started working i said 52-week high, no, i've got to do this one. look at this. take a look at the weekly chart. the stock has just broken out above the ceiling of resistance. it has been keeping a lid on it for the last year. as we find over and over again in this bull market, the technicals do matter.

this breakout could mean the stock is ready to start the next leg of its rally after doing this massive consolidation. here is the bottom line. all big pharma names are not created equal. glaxo smith kline gives you a 5. 8% yield but the company is in a race against time with the drug coming off patent in the united states in four years. i think the company will win that race as it has a host of candidates coming up in the not-too-distant future, and the chart, let's just say this is a chart that says it's ready to roll her. stay with cramer. >> coming up, natural stunner. some are calling it the largest untapped field of natural gas in the world, and it could be about to make people a lot of money. it's a story of international intrigue, geopolitical power, and it reads like the latest bestseller, but this is far from fiction. cramer's got the plate.

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take double energy, $821 billion independent oil and gas company that i now believe is the cheapest high-growth energy play out there. it's the large-cap american oil company that has the ability to double its production over the next five years, also doubling its earnings per-share in just two years. under december analyst day, it was a very exciting day. i was hoping the stock would cool off but even at its 52-week high it is trading at 14 times earnings. if the company meet those targets, and i believe they can, that multiple is way too low for this high-growth oil company. noble has a lot of acreage in colorado, one of the big oil heavy shales we like to highlight on the show, one that i think may one day actually rival the box in. back in december 2011 the company got into the barcella shale via a venture with comes all energy. it was a moment when natural gas prices were very low and there was an action as a lot of companies had to raise capital.

noble energy is more conventional offshore assets that make this stock so attractive even at its 52-week high. the gulf of mexico, the eastern mediterranean and west africa to the company plans to test the koblenz of what is known as net risk resources. this is oil and gas a company believes to be recoverable even as they aren't classified as proved reserves. these tests, provided the good results, noble gets a series of positive counts like a pipeline from a drug company that will give a nice boost to the company's oil and gas reserves. the reasons why the company is drilling these test wells, all areas where noble has had success in the past, in the gulf of mexico where noble plans to drill three wells this year. the company has an exploration success rate of over 50%. that's good for a major. that there aren't noble's international holdings. the company has already had

multiple exploration successes in west africa and the eastern mediterranean, especially if their discoveries off the coast of cyprus and israel. in israel and cyprus alone, noble has discovered more than nine trillion cubic feet of natural gas over the past two years. this is not cheap natural gas. the price is much higher over there. it's not glutted like in our markets. a playoff the coast of israel, which everybody talks about, noble might have as much as 17 trillion cubic feet of gas and there could be huge upside if the israelis he of them permission to export the stuff. the company has to get permission from the israeli parliament. i'm thinking they would pull this off knowing that they have a specialist in middle east policy who also used to work for the state department. noble's gas might be the key that allows europe -- this is really important because there is a big geopolitical angle, allow europe to break its addiction to russian natural gas. writenow russia has a choke hold

on your up but if noble partners with turkey you could see an instant revaluation upwards as turkey can pipe it right through to central europe. it might be israel to turkey. that's one of the reasons the recent rapprochement between israel and turkey was so important. i thought the stock would jump and it didn't. in west africa and noble energy has proved some oil off the coast of equatorial guinea and they have preliminary results from sierra leone. these guys have latin american properties in nicaragua and the falkland islands that could be worth something down the road. how about on shore? noble energy has a position out in colorado, some 640,000 acres and their acreage is mostly concentrated on the wattenberg shale. company could have resource potential of more than 2 billion barrels of oil equivalent. that is gigantic. at the end of 2012 noble had drilled a 300 horizontal wells.

that's that special technology. the company is looking for a 20% increase in production this year, but given this acreage, noble has some 9. 5,000 potential drilling locations. that's a massive multiyear drilling backlog right there. bank of america came out with this terrific piece of research where they pegged the value of noble's assets at 13. $8 billion. that's $80 a share, huge when you consider this is a $117 billion stock with a market cap. you at the offshore assets, especially that giant natural gas field off of israel and cyprus and the analysts at banc of america believe noble has a net asset of $160 a share, 37% higher than where the stock is right now. there is more upside than the eog and i've always been thinking they were the best. this management team led by the brilliant and now legendary chuck davidson, who i'd love to

have on the show, is incredibly savvy. davidson is the real deal. unlike a lot of energy companies that rushed into natural gas and marsalis shale in the middle of last decade, noble energy weighted and waited for the fall. their patience paid off as the natural gas market was flooded with new supply, prices plummeted and noble energy pounced, making a joint venture with consul energy which needed money for a 50% interest in the best marsalis shale acres there are. there a great may make it better. i don't know. it's not far from august 2011. they only had to pay 3. 4 billion to do it. natural gas prices in north america are rebounding. they could take out $5 and this investment is looking very smart. here we have an energy company, top-notch management, tremendous asset, double production as new projects start to rant and potentially double its earnings per share in two years. the stock is trading at a big discount to its value, 14 times

earnings. noble energy is a steal. why is it so cheap? investors tend not to give oil and gas companies much credit for future production growth until that starts to hit the bottom line. noble energy has excellent visibility so i think the stock will ratchet higher as production increases year after year after year. new paradigm for me. now if you are looking for the cheapest growth and energy stock, i've got to tell you it's not eog anymore. don't take offense, your stock has been fabulous. it's now noble. thanks to fabulous finds in israel and cyprus as well as assets in the united states, this stock may be at a 52-week high but i think it's going higher, possibly a lot higher. i want to go to jason in virginia please. jason? >> cherry blossom boo-yah to you from the nation's capital. >> i was there last week. nice magnolias near regina's hunt of georgetown.

what's up? >> i'm a by honesty are in vester and i had a position in transocean ever since the oil spill. when will we see transocean getting to pre-oil spill levels? >> it is a tough call because he would be there if it weren't for the spill, i believe that. i think you are in great shape. i would have a half position and if the lawsuit goes really bad i'd pick the other half up because they are here to stay. i'm going to jeff in my old home state of pennsylvania. april 25th, going to villanova. what's up? >> i'm interested in what we use everyday, petroleum. it has revenue growth and book value growth. >> i have to tell you i do not understand why this stock is below $50. i don't understand why statoil hasn't come in. this company is therefore the asking. i want to be a buyer.

i think you've got a horse sense. stay with cramer. [ male announcer ] they say that hard work is its own reward. but there's nothing wrong with enjoying a little extra reward. ♪ that's why southwest built a better rapid rewards program with unlimited reward seats, no blackout dates, and points that don't expire.

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>> "lightning round" is sponsored by td ameritrade. >> it is time. it is time for the "lightning round" on cramer's "mad money." rapidfire calls, i don't know the colors or questions. play to this sound and then the "lightning round" is over. are you ready skee-daddy? time for the "lightning round." start with gary in the a line i. gary. >> a big land of lincoln boo-yah to you from springfield, illinois. thank you for all your advice you've given us. my stock is red robin gourmet burgers. are they going to build a restaurant in our city?

>> it's not a bad idea. it's a growth stock. i was going to shift it toward the narrow but that's a good idea. let's go to craig in new jersey. >> this is craig calling from always beautiful moorestown, new jersey. >> urban table. what's shaking? >> i hope you've been enjoying this rally as much as we have. i've got a question. 3 g. systems, been in this thing for the long haul. do you think i should hold? >> there is a lot of competition in that space and that's what worries me. i wanted to rally. i think it can rally but i don't think you can make an investment. i think it is just a trade. i want to go to howard in california. >> hi mr. cramer. i was asking about floes serve. had a purchase price of $157. it's up to about $165. >> we care where it's going to but i like that business. i'm also looking at emerson with some good yield. let's go to frank in michigan.

>> hello, jimbo. >> hello. >> first time i got on. >> that's good. >> i want to know about g. and are c. e. p. i've had that thing for about six months. got about a 30% profit that it just hangs on. >> it's regarded as a disaster stock because it makes generators. joe kernan has one. i like briggs and stratton because it has another offset the sides just pure generator api need to go to chris in florida. chris. >> boo-yah. jim, i've got a question about mosaic. where do you see mosaic six months to a year from now? >> mosaic is okay. i'm not a big fertilizer fan because i think the crop on plex is going down. it could go 5 -- a 6%. it is not one of my favorites. i'm going to david my old state of pennsylvania.

>> a big dolphin boo-yah from northwest pennsylvania. >> i'm going to give you a master shout out. >> i'd had the stock since early 2009 and it has already nearly doubled, semper energy. does it have more room to run? >> yes, it does. those guys are the real deal. i like that stock. let's take one more. scott in colorado. >> jim, boo-yah to you. >> boo-yah back. >> i'm calling about phillips 66. i acquired it and it split off from the philips. >> i like it that bolero is doing this thing where they're splitting off one of these divisions. i think valero is more valuable he be that ladies and gentlemen is the conclusion of the "lightning round" of. >> the "lightning round" is sponsored by td ameritrade. [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats.

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>> whether you like to watch the fed, the earnings calendar or stock market levels, you've had

an entertaining couple days. those fed minutes came out early. could have scared the market into a downturn but instead it chugged right along to record-breaking levels. maybe you are getting nervous as i know some people i talked to on a conference call, nervous they were going to have a pullback or that the job numbers around the corner, totally reasonable, which is why i'm here to make sure you are doing everything you can to protect yourself, even if it does cut off your upside. if your portfolio is well-rounded and you do your homework you should be guarded against any crazy swings in the market. that's why we play my absolute favorite game, and i die versified. you call me, or you can tweet me a's jim cramer, tell me your top five holdings and i'll tell you of your portfolio is diverse 5 enough for you need to mix it up a little. drew friedman to eat laps, and i die versified, conoco, new york

"times," nordic american tanker, weyerhaeuser and blackstone. mad tweets. let me see what we've got here. conoco phillips, action alerts plus name. a real estate investment trust with a homebuilder and a lumber. company phillips is a natural gas and oil company. blackstone is private equity. nordic american tanker is shipping but i'm going to say it's different enough. the new york "times" is a pay wall company that also produces journalism. journalism, housing, tanker, oil, private equity. holy cow. dave in california please. gave? >> boo-yah, jim, from west los angeles. >> holy cow it's a beautiful there. what's going on? >> i want to thank you for all your help. my wife and i never miss a show. >> that is so terrific. i love that because i just wanted people to get back to even and then start prospering.

what's up? >> here is my top five. i'm 60 and i just retied to retire this year. >> i've got to go for another 42 years. >> here is my top five. realty income, ryan air, at&t, general electric and ventless. and i die versified? >> i think he's got here, you know what i think dave has got here? dave has the perfect portfolio for a 60-year-old who thinks young. this is what i want. he's got rainier. you may not know it. it's a real estate investment trust like weyerhaeuser. it yields 3%. vent us, we had that terrific woman on, that's the healthcare company that yields 3.5.

action alerts plus name, ge, at&t north of four. realty income, real estate investment trust, this is a high yielding portfolio that i'm going to bless. it's got healthcare, commercial properties, lumber, diversified industrial and telephoned. that is just what i want. right that down. please write that portfolio down. well done. dennis in illinois. dennis. >> cramer, white sox southside boo-yah to you from chicago. >> it seemed like i was going to put you in boston but you are right, chicago. >> trying to make some "mad money" here. i've got facebook, ford, wells fargo, microsoft and i'll co-a. but i'm thinking about greenbrier for the out, he should i swap it? >> i want you to keep it as it is. selling out tele here is selling

short. i think clouse can pull it out. facebook, my charitable trust owns that. i think that stock has bottomed. it's not cool to short it anymore. industrial maker of aluminum, ford, if europe is good, ford can rock. microsoft and wells fargo, they report friday. a bank, tech, auto, tech/tech. we can't have that. you know what we've got to put in here? we've got to add merck. take out microsoft and put in merck. that has to be done. we can't have two techs or otherwise -- "mad money" is back after the break. >> stay connected to cramer. changing the world is exhausting business.

with the innovating and the transforming and the revolutionizing. it's enough to make you forget that you're flying five hundred miles an hour on a chair that just became a bed. you see, we're doing some changing of our own. ah, we can talk about it later. we're putting the wonder back into air travel, one innovation at a time. the new american is arriving.

>> what hasn't gone up a lot that can really fly if the economy is actually improving? how about technology, which dramatically underperformed in the first quarter. we know that tech stocks have been in a literal bear market for almost a dozen years. they've been harangued as performers forte reasons. the demise of growth in the personal computer has crammed everything in the pc chain from makers like dell and hewlett-packard to the innards like micron. then there is the smart phone which crust no kid, hurt texas instruments, or the positive apple which has hurt apple itself and left serious in the

dust. enterprise spending has damaged everything from oracle and cisco to sienna and jupiter. demand for semi conductors and all the other semi conductor capital equipment makers. i could go on and on and on for this gigantic part of the s. and p. 500. it seems the only online companies with the most leverage to mobile have worked, mainly google but yahoo and facebook although there it has been fits and starts. all that seems to have changed overnight with this new quarter and while it may not be as sustainable as it appears once we get actual earnings, there is a move afoot. what could drive the sudden urge to own tech? this is fueled by a belief that worldwide growth will return in the second half of the year. the components, a bottom that comes from an understanding that the leaders of europe will bend on the austerity issue in order to placate whole countries that can't the people to work the china started selling because the new year had put a damper on spending, it is now behind us. the government can stimulate growth.

japan could have some real growth now that the central bank is printing money. did you know japan used to be a huge buyer of our tech? united states getting better. the gdp growth trade for tech is on. it's a function of gross to net the product and it is working as consumer and corporate spending get more robust. the valuations are insanely low here versus the worst historic levels. i had a conference call with my charitable trust cohost, comanager, stephanie link. she's a cnbc contributor. we were marveling at so many terrific tech stories that we all know. they sell at 11 times earnings. do you know oracle, intel and cisco, even apple is ten times earnings. blackout. the cash is ridiculously cheap. seaton and western digital are six times earnings. may take seagate private at-bat. whatever growth you believe they will have, i think could be

accelerated by the second half is there is any expansion in worldwide gdp. in a world where safe stocks sell 18 -- 20 times earnings, microsoft, cisco and intel have a much lower growth rate, you get any growth from these guys, which i think you will if the global economy improves and the stocks keep going higher, i want you to consider the curious case of oracle. here is a company that screwed up when it reported. the stock fell from $36 to $31 within a day. at that price the stock sold for 11 times earnings. even though it has a terrific balance sheet and some promise for the second half, oracle has had a huge bounce. i don't even think it's finished going up. a disaster quarter of a we make it okay quarters on like the hideous one from fortunate this evening. holy cow. you could see a real run in all back. you get positive earnings and the run could last for the whole

quarter. tackett despised for years is coming back and if you get through the earnings, this move could have some huge legs as the sector tries to play catch-up with the rest of the stock market. stick with cramer. aaah! aaaaah! theres a guy on the window! do something, dad! aaaah! aaaah!

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