these could be signs of rare but serious side effects. is your cholesterol at goal? ask your doctor about crestor. [ female announcer ] if you can't afford your medication, astrazeneca may be able to help. my mission is simple -- to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer! welcome to "mad money." welcome to cramerica. other people want to make friends, want fewer days like today. my job is to educate and coach you. so call me at 800-743-cnbc. to accept the beatdown or not accept the beatdown, that is the question. do you accept the thrashing that everyone expects?

do you just say this is my lot in life, a real pasting? because everyone says we're going to get laid to waste? or do you do nothing, even though there will probably be many more days like today where the dow tumbled 174 points, s&p sank and the nasdaq plummeted 1.06%. >> house of pain. >> it's impossible to be as bullish as you may have been before, given that this market has definitely changed its colors, for certain. it's difficult not to panic when you see headlines like this one. "global tumult grips markets." even as panic doesn't mean anybody died, the averages are down just a couple percent from their highs. i would argue that the global tumult grips markets is you ain't seen nothing yet, so be

afraid, be very afraid. couple that with this stunning revelation from "the new york times" -- "in a shift, interest rates are rising." and you've got a fear factor that makes eating cockroaches and monkey brains seem like chowing down on raisinettes and twinkies. okay, perhaps the time's a little late in that rates have been screaming higher for weeks, but still, like the tumult -- i love saying that word -- like the tumult heading, it's not reassuring, it's frightening, and higher rates aren't good for anybody, right? what are they good for? absolutely nothing! so, what do you do? what do you do if the papers have spoken and the understanding is that the federal reserve can't keep interest rates down any longer and it's causing havoc and turmoil? hmm, what do you do if so many emerging markets are getting crushed? what's the game plan when brazil's being pulverized, india's being mutilated, japan's manipulated and china is

becoming a pitiful, helpless giant! with the ruling communist party actually allowing the workers to be paid more. i mean, what the heck kind of communists are they, the real ones? how did that happen and when? with all this going on, doesn't it seem silly to own any stocks at all? do we have to take a bear leg and smear the blood on our doors so the angel of financial death will pass over our portfolios? first, let me say, at the moment i'm not crazy about the market per se. i mean, last time we had this charter star and you showed us that that i volatility has in the last few years produced a short sell-off in a few weeks' time. i thought it was compelling. a lot of people on twitter have. that's why i've taken my cash position higher, second, i respect a decline like this. i didn't trust the pivot last thursday where the market fell hard and rallied sharply midday. it seemed false to me for all but the real defensive stocks

which i'm kind of warming up to again. third, i don't like big up openings like we had today because they are sucker traps, as they now bring out sellers, not buyers. fourth, the rate increases happen so quickly that people who own bond funds in emerging market eps have had their assets trashed entirely. when they see their statements, they will not believe the carnage. it's been hideous. and you know lots of institutions have been hurt, too. i liked hearing that mortgage applications were higher this week, although i know that unless rates start coming down or at least backing off a little or maybe even stay here for a while, something i think has less than a 50/50 chance of happening, then we'll get even more negative here. but there's one big reason why i can't fully embrace the bear case -- i just don't see a gigantic repeal of the entire advance or even the bulk of it happening. that's because despite the obsession with the fed's next move, i believe that the real next move, if it's tabbed rates higher, will come because we actually have a lot more business being done in this country. see, the stock market's a little

like a hostel. we have wanted life support when the patient looked like a goner, and that's what dr. bernanke gave us. but if the patient's generally getting better, which is the fed's ultimate goal, why stay with the life support? never lose sight of that, no matter how easy it seems if the fed keeps rates down to be able to own stocks, we do only want sales to grow to be able to own stocks. companies, we want them to do better. we want more loans to be made, more jobs to be created. we want to help your business climate, because that's what really makes stocks advance, okay? this obsession with keeping the economy on life support, even if business is getting better, is wrong. [ buzzer ] and it distorts what will only drive stocks, which is higher profits. ♪ alleluia right now we've had solid profits, mainly because so many people have been axed. employers are being paid less. [ crying baby ] and productivity has increased. now, look, if we can get some sales growth, though, the profitability will be off the charts, and that's what you

should be wishing for, not a permanently bed-ridden patient who happens to have some better vitals. how can i be sanguine given the so-called "global tumult"? how can i have fortitude when we're going up the no fed help river and are now facing the horror, the horror, "heart of darkness" or "apocalypse now." first of all, i am not colonel curtis. the travel trust has taken action, raised some cash to be ready for the pummeling that might be on the horizon. second of all, i have patience, remember those? and not like bernanke as a patient, but patience with the sick. i think we'll get to the side where people realize more business is good, not bad, but we have to go through turmoil. what gives me that patience? some is looking at the markets for 30 years, about 30 years more than most of my most preposterous critics, @jimcramer on twitter.

much of it comes from what the companies tell me, including ceos that i admire and those at my travel trust, like who? how about jamie dimon of jpmorgan? he spoke yesterday about a tale of not woe but optimism. as he said at the morgan stanley conference last night, "we talk about how bad things are. no one talks about how good it is." hmm. let me just take off some of the good he listed -- corporate world, first of all, is in fabulous shape with liquidity and profitability. all perfect. the consumer's in better shape, fabulous balance sheet. housing, has turned the corner in every way, shape and form and is highly affordable and he says we have a developing home shortage. i know jamie's been an optimist for ages, but guess what? with the dow up huge over the last 30 years, was it wrong to be an optimist? no, it was actually the rigorous view. he points out that if rates go higher, jpmorgan will make a heck of a lot more money than it does now, which is why my charitable trust has a huge

position in it. so if jamie says bring it on, i'm okay. let's put it together. i think the market's shaky. raising cash into the brief rallies like this morning is the right thing to do. if you went into the emerging market debt or equity funds, you will be whacked harder than you have been so far because they are ground zero for the "global tumult" that grips the markets. but i simply don't think i can get you out of everything and then back into everything fast enough when the market's done selling. no. nobody can do that. so, here's the bottom line -- raise a little cash, show a little patience, get offensive and i think you can ride this out without too much damage to your portfolio. simple as that. why don't we go to cyrus in new york? cyrus. >> caller: bua! how are you? >> excellent. how are you, partner? >> caller: great. jim, i'm a huge fan of sony

products. i recently changed my computers from apple to sony and i noticed the book value was $20 a share before they sold some buildings. given yesterday's ps-4 announcement, i'm estimating the book value's over $30 a share now. this should be trading at least $50 a share given approximately 1.5 times book value. what's your take on sony, jim? >> you lost me with that 1.5, because that's like an impossibility. it's not going to be there. the company's not doing that well. i think it could rally 10%, and then you've really got to take the money and run. i'm not talking about some people call me maurice, either. rene in delaware, please. >> caller: hi, jim. i saw today where the analysts upgrad upgraded lynnair. do you think that stock will impact hovnanian? i bought that about a year and a half ago. >> hovnanian's done good, but lennar's a better operator. i would buy lennar over

hovnanian. my buddy bob olestein was on today saying lennar doesn't generate a lot of earnings. lennar's a good. >> caller:. i prefer towle to lennar, just for the record. >> caller: we love were in sacramento, you're our all-time favorite. anyway, i talked to you a while back about dole. now all of a sudden, they want to take the company over, take it private. what's your opinion on dole? >> wow, i've got one word for that, i'm going to stay three times -- sell, sell, sell! i really don't trust that situation. i want you to get out of it and get out of it now. all right, look, the market's a little shaky here, but you can ride it out with -- look, damage? yes, some limited damage. raise a little cash, show some patience, get a little defensive and i think you'll do just fine. "mad money" will be right back. coming up, well suited? buying dad a tie this father's day? then you're probably already familiar with fashion icon pvh. can its portfolio of top brands offer more than just runway looks? cramer's got the exclusive with

its ceo, fresh off earnings. and later, slam dunk! the heated series continues, but we're not talking basketball. it's a face-off between two companies that call miami and san antonio home. tonight, a big local bank goes head to head with a real estate aficionado, and cramer makes the call. all coming up on "mad money." hey kevin...still eating chalk for heartburn? yeah... try new alka seltzer fruit chews. they work fast on heartburn and taste awesome.

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never count out an executioner. i'm talking about -- no, not someone who cuts people's heads off, though i can think of a few companies on the wall of shame that might benefit from a purely metaphorical beheading.

i'm talking about a ceo who knows how to execute. just take the master executioner at the helm of pvh, the apparel company you know as calvin klein and others. the last time pvh reported, the company beat the numbers. management made cautious comments about the integration of the warnico acquisition, the house of calvin klein or at least a part of it. the stock got slammed falling from $112 down to $106. down 5% in a single day. i told you to stick with pvh, stick with manny. fast forward to today. after the close, tonight, the company reports and it shoots the light out, pvh earned $1.91 a share, wall street was looking for only $1.35. monster beat on revenues that came in modestly above expectations. and this point i have to wonder, if they're being a little conservative because i think this calvin klein acquisition is back on track and then some. let's check in with the bankable

chairman and ceo of pvh. a man that has me wearing a tommy hilfiger tie and ck shirt today. more about the quarter and where the company is headed. welcome back to "mad money." >> hi, jim, nice to see you again. >> have a seat. congratulations. how did you do it? the last time you were here, you were very worried. but obviously some things clicked for you. and it wasn't the weather. in your release over and over, you said the weather's not going our way. >> no, that's absolutely true. it was really our performance across the board, driven by the calvin klein business as well as the tommy hilfiger business. we really saw customers pulling on a wholesale side, pulling orders forward. so we really think that we're being conservative in our guidance, but we think it's prudent at this time so early in the year. >> last time, we were worried about -- you talked about how spain was bad and italy for calvin klein and too many jeans. were you able to reconfigure that merchandise that fast? >> no, spain and italy continue to be challenging markets, but the rest of europe, particularly

for the tommy business in particular, continues to be extremely strong. and our north american calvin klein and tommy hilfiger businesses posted strong comps in the quarter. we're seeing high single digit increases. >> you gave a talk at a conference recently, and i was amazed. the conference at the end of april, you were talking about some numbers here. you were trends plus one and two, trends and it turns out, tommy hilfiger -- you were saying was 2 and 3. that came in five and four. may must have been on fire. >> may's been a strong month for us. in north america, the weather has turned. we got into the second quarter. so that's been a positive. >> okay. >> and those brands, you know, really have been performing pretty consistently. >> right. >> posting all of last year double digit comp store increases. those are powerful brands that continue to deliver. and we've been able to execute on that. >> okay. now one of the things, you did your cautionary comments.

one of the reasons why you didn't want to bump the numbers up, was you're talking about restructuring in the distribution business in europe. could this mean you'll be able to put calvin klein through your pipe, take it to scandinavia and germany where it's so hot for tommy. can you do that? >> that's the plan. >> it's going to be great. >> i think so, as well. we're uniquely qualified to turn that european business around. that was a business that, you know, just three years ago was earning 10% to 12% operating margins, earning $75 million of operating income, that today as we take the business over, we're planning it to break even. there's tremendous upside there as we start to execute and really deliver against it. >> you also talked about quality, that you're improving the quality. wasn't it always good? >> well, the calvin klein brand is products across the board. i have to be honest, the jeans component of that business, we're not happy where the

quality has been. >> really. wasn't premium the rest of your labels? >> given the price positioning of the brand, not at the same level we'd like to see it. so we are significantly improving the quality, the design esthetic of the brand. you know, those are brands -- that's a brand in europe and asia that goes out the door in jeans between $100 and $200 for denim. and here it goes out the door between, you know, $60 and $90. so clearly that's a premium price positioning for jeans, it's designer jeans and we need to make sure that the quality's being delivered to the consumer as we've been delivering across all other product categories. >> now, you called out china and brazil as being good. >> continues to be very strong. >> how come we're worried then? >> well, look, i think when you look at the economy overall there, it's had double, 15% growth. we're planning for high single digit growth, getting that kind of leverage with that top line growth, that still delivers, you know, that'll deliver double digit earnings increases. and that's, i think, a prudent way to plan the business right now. >> how are we doing the other way? pipe for ck some places you

didn't have tommy. >> i think, look, we're four months into this and that's a plan that goes forward. i think that's 18 to 24 months out. there's clear opportunity as we integrate this acquisition, stabilize the operating platform in asia and in south america to really bring the -- to utilize the calvin klein platform that we acquired from warnico to take directly the tommy hilfiger business. >> you've been brutally honest about yourself and your company. when things were good you came on, when things were tough, you came on. is calvin klein now where people thought it might be because the hilfiger acquisition. is calvin klein now where you want it to be versus the last quarter when you were on? >> no. i think there's still tremendous positioning, repositioning, particularly in the jeans business that we have to do. i think we have that all planned in the numbers. i think we have the opportunity to outperform the numbers. but i -- right now, it's not

where we'd like to see the business. i think 2014, fall 2014, that's when we're really gearing, we think it will be repositioned the way we'd like it. >> the last time you were on, ron johnson was running jc penney, you called out izod as being good. new man, is he sticking with that plan with izod? >> absolutely. mike is continuing that plan. >> always strong relationships. >> always strong relationships there. and what we're excited about is another component of that business with jc penney is the main floor dress shirt and neckwear business where they're really trying to reinvest in the second half of the year, back into inventories to get them better positioned to sell those main floor classification categories that jc penney historically has done so well. so mike is really working very hard to turn that business. i see some real positive signs coming out of there. >> you do? that's so good. >> i really feel that back to school and the christmas season

we could see some -- a real turn around in that business. >> everyone pulls for him because he's such a great guy. we all love him. now, i wanted to ask you, there's a couple of things i was trying to figure out, but i couldn't. if you were to try to figure out what the heritage would look like without the bass. bass is a problem. >> in the heritage business in particular, the toughest part of the business is the bass business. >> now that you've got the warnico, the olga, the speedo, why not close bass? the leverage would be huge. >> we constantly look at pruning the portfolio. >> okay. >> bass is a strong brand. we think we can reposition it back and get it there. if we're not able to do that, we have to look at the alternatives. >> i know this is hypothetical, but if you had had better weather. because now if you extrapolate may. the weather was bad all over the world. the numbers might have been appreciably better.

>> i think we're happy with the results, but clearly, you know, in north america and europe, if the weather had been more seasonal. i don't want to -- i don't like to play weather man, but it clearly had an impact on the business. the fact that we were up against in the prior year mild spring weather as we came in, so all those things, look, you have to deal with. >> you also said since the quarter. and that's really important. that is really important. manny, you really delivered as we knew you would. and everyone that watches "mad money" knew you would. this stock is going all the way back and then some. stay with cramer. coming up -- slam dunk. the heated series continues. but we're not talking basketball. it's a faceoff between two companies that call miami and san antonio home. tonight, a big local bank goes head to head with a real estate

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[ electricity crackling ] so you can capture your receipts, ink for all business purchases. and manage them online with jot, the latest app from ink. so you can spend less time doing paperwork. and more time doing paperwork. ink from chase. so you can. in the aftermath of san antonio's incredible monster blowout against miami in game three of the nba finals last night, i don't know if you caught it. but wow, the spurs crushed the heat by 36 points. well, we're going to do our own analysis of san antonio versus miami. except because this is a show about stocks, you won't hear me talking about lebron's disastrous no crash boards performance last night or the spurs' airtight defense and

great shooting. who would've thunk it? instead we're using it as a metaphor, an exercise in comparative stock picking. all week, picking the top san antonio based companies against miami's finest. on monday, we had san antonio's valero energy against the miami headquartered burger king. valero eked out a win. and tonight we've got another match-up. cfr, san antonio based bank that we've been recommending for some time, versus equity one, eqy. the miami-based retail real estate investment trust. let's take a close look at the two contenders. collin frost is a texas regional bank in the business of commercial and consumer loans. also insurance and a securities division. the company has 110 financial centers and 1,100 atms across

the lone star state, $21 billion worth of assets, which means loans. more important, cullen frost has a terrific operational reputation, going through the downturns in texas. pretty amazing. these guys have a solid track record of responsible underwriting, lower than average loan losses, and the company has a very low cost base of deposits. 40% of cullen frost deposit base is made up of noninterest bearing deposits. that's huge. because, remember, regional bank makes money every day by turning the lights on in the morning. though, through what's known as the net interest margin. you'll often hear it called nim. the difference between the rate they paid depositors for money and the higher interest rates they charge borrowers, or what they give you on a cd. and cullen frost is paying nothing. literally 40% of the deposits, which means they can afford to keep high credit standards and be very picky about who to lend to. they're already making a lot of money away from the lending business. all this results in cullen frost

having high margins, key metric in banking which came in at 3.45% in the first quarter. and with rates on the rise, you better believe that number is going higher, especially if the fed starts to taper. jpmorgan came out last night and jamie dimon said they will make so much more money if the fed stops tapering and interest rates go higher. same thing with cullen frost. best of all, though, is the simple fact that cullen frost is from the great state of texas. >> house of pleasure. >> the great state of texas has low taxes, booming oil and gas industry, robust economy, thriving housing market, rapid population growth compared to the rest of the country and unemployment of 6.4%. more than a full percentage point below the national rate and that's falling. those are real good conditions. why it's one of the highest valuations in the group. it's deserving of selling at 16 times next year's numbers. how about our other contender, miami's own equity one. here's a real estate investment trust, retail 142 properties, 13

states, bulk of them in south florida, california and the northeast. those are okay markets now. equity one has a lot of exposure in urban areas, prime real estate, zoning restrictions make it fairly difficult to build new urban retail space. we hear that from almost all of the real estate investment trust guys we have on. equity one just reported an excellent quarter on may 1st. coming in at 32 cents, that's a three cent beat. the occupancy rate rose 60 basis points to 91.8% and their same property net operating income increased by 3%. plus equity one plans to boost these numbers by selling its 15 worst properties, something that could bring in about $450 million and raise the margins here. yet over the last 30 days, equity one has been crushed. stock falling 13% in a period the s&p 500 was flat. that's because the real estate investment trust has gone out of

style on the show. reits were viewed as fixed income alternatives because of the high dividends, right now 3.7% yield. but the return from bonds has improved and investors dump these kinds of stocks -- >> sell, sell, sell -- >> en masse, including equity one. look, a 3.7% yield doesn't protect you from much downside at all anymore. and 3.7% doesn't make up for 11%, meaning the 11% you lost on your principal in the stock in order to pick up 3.7% interest. and this gets at the heart of how you actually compare a regional bank like cullen frost against a trust with retail properties all over florida, california, and the northeast. when you're choosing between companies in different sectors, look at more than just the characteristics of each business. you have to consider the overall environment, because the truth is both cullen frost and equity one are high-quality operators within the respective areas.

they both have good dividends. cullen frost, 3.1%. but, remember, 50% of a stock's movement comes from its sector, and the performance is a lot to do with the broader macroeconomic backdrop. back then, a real estate investment trust would have been the stock to buy. today, though, right now, i have to give this match to san antonio because cullen frost bankers is clearly the stock to own going forward. in fact, cullen frost versus equity one is a perfect example of what works and what doesn't work in a high-interest rate environment, although i expect equity one to do a little bounce. we thought this group could bounce last week. i think you could put in a little bounce. we've seen how equity one is crushed by the rise in rates and rates going up and fears that the fed could start tapering, ratcheting down, as bond buying programs send these rates higher. this has turned it into a falling knife. the stock could come back if we get some clarity from the fed, ben bernanke says that he won't

be tapering any time soon or we get an interest rate -- an end of the velocity of the rise. that could even help. but that's a very risky bet to make. meanwhile, the same thing that has crushed equity one could be fabulous for cullen frost. the bank could make more money off the loans which results in, yes, that better nim. i want you to know that term because you're going to hear it going forward a lot. i'll try to make it as exciting as possible. it isn't. cullen frost doesn't have any international baggage unlike the boys that get hammered when there are problems overseas and people worried about currencies. the bottom line, in an environment where rates have been rising and everyone's terrified the fed can start tapering in the future, a bank like cullen frost should thrive while a reit like equity one could continue to get crushed. that's one more resounding win for the town of the spurs over heat city. i just don't know if even lebron

can get miami out of this brutal hole, or the one in the real world where he simply didn't show up to play. francis in arkansas. francis? >> caller: hi. i've made some money from a stock, the bank of ozarks, do you think it will split again and what do you think the future of the stock is? >> well, i like bank of ozarks very much. i do not care -- i don't care about the split. the business is very strong. i think you have a winner there. that's a great call. why don't we go to phil in north carolina. phil? >> caller: jim, how are you? i want to say a big b-b-boo-yah. one quick thing about cole hamels, what are you going to do with this guy? 2-9. >> no, he's been pitching really well. he gets no run support, i think that's really unfair. i think cole's a good guy. >> caller: you should do a buy, sell or hold on him.

>> i'm a buyer of cole. don't you -- any -- a stock? i get a little fired up. >> caller: yes, yes, yes. listen, i just want to thank you. i'm a long-time listener. and, you know, when you make suggestions on buying stocks and selling stocks, that's one thing, but where you're head and shoulders above everybody else is the lessons. your trading lessons, do you diversify, different sectors, that's where i learn so much from you. >> thank you, that's what we're trying to do. >> the reit, cys, i had cys and annaly two weeks ago. i'm out of them now. i made some money. is there a time to get back in? >> i've got a forensic accountant who knows this group better than anybody i've ever seen. he's saying be very careful, it is not the right time, that they may not even know what they own. and that, sir, is what i worry about.

and what i'm proud of are the very kind words that you said about what we're doing on "mad money." miami's biting the dust in the finals. valero energy beat burger king on monday. tonight san antonio takes it again with cullen frost trumping equity one. 2-0. can miami ever come back? don't move, "lightning round's" next.

hold on. before we get to the "lightning round," i want to remind you that tomorrow we got a real special show for you. you know i'm a big family guy. you might even get a little tired hearing about my daughters, i don't care. i think investing should be a multigenerational activity. that's why tomorrow we're keeping it in the family with the "mad money" it's a family affair show. got a lot of special things coming up. be sure to tune in to learn why the family that invests together tries to stay together. and now, it is time, it is time for the "lightning round" on cramer's "mad money." what's that all about? rapid-fire calls, you say the name of the stock, i tell you whether to buy or sell. play until this sound -- and

then the "lightning round" is over. are you ready, skee-daddy? robin in nebraska. robin? >> caller: mr. cramer, you're the greatest. >> thank you, robin. >> caller: georgia gulf, it keeps going down and down. >> yeah. frank mitch, the guy who really knows it, was just kind of lukewarm on it and said now it's come down, he kind of likes it. >> buy, buy, buy! >> it's going down with all the housing stocks and i think it's overdone. ed in florida. ed? >> caller: hey, jim. i just want to say, you know, give you my thanks for your insightful comments on individual stocks. >> thank you. >> caller: the one i'm worried about right now is mercado libra. >> that's a winner, not a loser. that's a great company. if you want to take a little profit, ca-ching ca-ching, but that's a good one, good quarter. don in virginia. don? >> caller: boo-yah, jim.

>> boo-yah. >> caller: love the show. >> thank you. >> caller: sysco foods. >> i actually like the csco. sysco foods is levered too much to the restaurant industry. a lot of those stocks up 50%, it's not generating the return i thought it would. let's go to alex in new jersey. alex? >> caller: jim, it's an honor to talk to you. big boo-yah from holland. >> oh, man, fantastic. not that far from me at all. what's up? >> caller: say, listen, i'm looking to see what you think about numont mining. >> nope. can't be there. don't like the gold miners, don't like the silver miners. there's a trade developing in them. don't need to blow them out tomorrow, but as they lift, you want to go, because the refining costs are too high and many things have been going wrong. i don't like them. let's go to kate in michigan. kate? >> caller: hi, jim. how are you? >> real good, kate. how about you? >> caller: good, good. thank you so much for taking my

call. >> my pleasure. >> caller: so excited to talk to a celebrity. >> how about a recognizable figure? that celebrity thing goes to your head. all right. go ahead. go ahead. >> caller: listen, jim, my stock is cma. >> oh, i like cma. a lot of guys downgrade it. they don't understand, the margin going higher, i like cma. i do like others more, but cma is fine with me. sam in new york. sam? >> caller: hey, jim, thanks for taking my call. >> you're welcome. >> caller: my stock is tivo. it's got $1.1 billion in cash on the balance sheet and a market cap of only 1.37. >> i know, makes no sense. they didn't like the settlement that came in that lawsuit. i, on the other hand, feel like there's some value here. it's like safeway, it's up nine. i think there's assets in tivo, i'm blessing owning tivo. and that, ladies and gentlemen, is the conclusion of the "lightning round." the "lightning round" is sponsored by td ameritrade.

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saw this one coming. this was market extending losses again today. we all get one of those big wag fingers from the stadium, bernanke, you name it. people being depressed by the heat's performance in game three. pretty miserable. anyway, all i know it's time to batten down the hatches. be sure to survive this market's volatility. what's the smartest way to do it? of course, diversification. let's get to my favorite game, am i diversified which is important on a day like today. call me or tweet me @jimcramer. tell me your top five holdings and i'll tell you if your portfolio's diversified enough. maybe you need to mix it up a little. i'd like to start with a tweet from @liznagata. weyerhaeuser, bristol-myers, emc, eog resources, thank you for your help.

and yes, i am in the tent that is going hunting. we had a preservation capital and hunting for capital. and that's where liz is. let's go to work. okay. let me think. all right. eog is oil, emc is tech, bristol-myers is drug, weyeyerhaeuser is lumber and housing owned by charitable trust we've got an oil, tech, industrial, we've got a wood products and industrial company. i knew liz would rock and she did. well played. why don't we go to robert in illinois. robert? >> caller: hey, jim. this is robert in centralia with a big southern illinois boo-yah. >> whoa. carbondale boo-yah. what's up? >> caller: hey. my stocks are walgreen's, ticker symbol wag, union pacific, unp,

berkshire hathaway, berkb, lorillard, lo, and barrick gold, abx. >> all right. we'll take it from there. here we go, southern illinois rocks, we know that, walgreen's an illinois based company, it's a drugstore chain i like very much, lorillard is tobacco. don't want my kids smoking, but i understand why you want to own the stock. berkshire hathaway, union pacific on recently, what a smoking good story and barrick don't like the company, but respect the exposure to gold, rails, tobacco, retail, diversified conglomerate, what's not to like? let's go to another robert in pennsylvania. robert? >> caller: hello, jim. nice to hear you. i've been listening to you for a long time. >> thank you. >> caller: my five stocks are alks. >> okay. >> caller: agnc. >> okay. >> caller: npw, nly and rdn. >> okay. we do have some -- a couple similarities here.

american capital and annaly, let's say it right now, those are very, very similar, both real estate mortgage trust. we're going to sell american capital, keep anannaly. radian is also in the mortgage business. i'm now going to throw away annaly. and we're going to bring in -- we already have a drug company, mpt is a real estate investment trust invested with health, but not an overlap. let's put in, you know what, let's go with weyerhaeuser. it's too much like mortgage, like housing too, we'll go with berkshire. let's go with berkshire hathaway. make that change. we'll get rid of the american capital, and we'll get rid of the annaly and then i'll feel like we are -- ♪ hallelujah >> -- diversified. george in new york, george? >> caller: dr. cramer. i've dealt with the rest, i'm on the phone with the best.

george from new york city. >> thank you. >> caller: i'm also a member of your charitable trust and no matter wherever i travel to, you're always in front of me. >> you're the best. and thank you to subscribing. i'll tell stephanie link you said that. what's up? >> caller: i have -- let me know what you think about how diversified i am, please. adt, facebook, linn, apple and joy. >> wow, we got 100% action alerts there. facebook, we got the big upgrade, i think the bottom is in, that's internet, apple, what can i say that hasn't been said by apple? i don't have much. adt is a big disappointment. but it's a housing play. linn energy, that's been a tough one to own in oil, but i believe in that merger, and joy global, down and out mineral companies, this is a mining company, housing company, this is an oil, this is tech, and well this is internet and tech, and i'm telling you that is diversified.

there have been some tough ones there, but i think this is a portfolio that bounces the moment you get even any snapback from china. and this company, adt, says something good which so far it hasn't. stay with cramer.

what are you supposed to do when an entire market is wrong? what do you do when it trades

wrong, it's benchmarked wrong and unfair to the rest of the world? i'm talking about the worldwide market for oil, which is right now priced off of brent crude, the european benchmark. currently the brent price is absurdly high. it controls the entire market, i think it's ridiculous. let's start with a supposition that the world is indeed awash in oil. we're producing three million more barrels per day than we were a couple years ago. thanks to north dakota, the bakken shale, eagleford shale, texas and alaska when it comes to the amount of recoverable oil. they're the biggest discovery in almost 50 years, canada had a similar increase in capacity, iraq has doubled the output in just a couple of years time. when every other commodity is in freefall, the price of brent oil remains stubbornly high and that's wrong. what's going on? two things, first, the middle east sheiks can turn it on or off at will because they've got plenty of spare capacity. they've been keeping it high by strategically keeping oil off the market. but second, the go-to energy guy i use at thestreet.com explained in online conversation with me,

brent is an atavistic benchmark. the price of brent is set off rapidly declining oil fields in the north sea. the price you pay at the pump is being set by a worldwide market that as it turns out is not really worldwide at all. brent's just a snapshot of the output from four oil fields in one tiny area, and those fields are rapidly losing the relevance as well as the recoverable oil. they're getting tapped out plain and simple and we're stuck with their benchmark because we do import 7.5 million barrels of crude a day in america. we are stuck with the brent price and it determines the price at the pump too. since we don't have an energy policy and we're not harnessing our shale natural gas in any meaningful way, we're hostage to an outdated benchmark that keeps us from enjoying the oil resources. i think one reason is our unstated policy set in washington, that fossil fuels should not be encouraged. if we were to aggressively harvest the resources we have in this continent, the price of crude in north america would be

set here and it would probably be perhaps $20 lower than the price of brent. it would mean the price you pay for the gasoline would be roughly 20% lower, which would encourage more use, putting more carbon in the atmosphere. something the administration is against. another reason, we seem to be okay with the status quo. do you hear anyone in washington say it's time to bust the oil cartel in order to create more jobs, become more secure as a nation? we alone are now the sole reason why our country is still hostage to the brutally unfriendly regimes in the middle east. we could change that with the political will and willing to accept natural gas until they become practical. we don't. last night we had spectra energy on with pipelines crisscrossing the country. the ceo made it clear, there's still much more oil to be found in the country and scores of years of natural gas. but it's meant nothing in terms of lower energy prices thanks to the tyranny of brent and very little in terms of jobs. washington turns a blind eye to the possibilities. it's time for all of that to change right now. yet, as the spectra ceo says, there's only a 50/50 chance that

crucial keystone pipeline will be approved by the president. enough is enough. let's take back control of the most important commodity in the world and give our country the prosperity it deserves. stay with cramer. vo: traveling you definitely end up meeting a lot more people but a friend under water is something completely different. i met a turtle friend today so, you don't get that very often. it seemed like it was more than happy to have us in his home. so beautiful.

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all right. after the close, safeway does this remarkable transformation where they sell the canadian division for a huge amount of money. the stock went up too much. but i have been, you know, liked safeway initially and we thought you ought to be in whole foods. there's always a bull market somewhere, i promise to try to find it for you. i'm jim cramer. see you tomorrow. [snapping photos] ♪ (female #1) wanna do one on his lap? ♪