>> my mission is simple, to make you money. i'm here to level the playing field for all investors. there is 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, i want to save you money. my job is to teach you and educate you through this one. call me, 1-800-743-cnbc. don't worry, the cavalry, it will come. maybe not tomorrow. maybe not until next week.

this is not custer's last stand. there is not zulu dawn. the good guys can't get there. those who stay in the market won't be slaughtered like those two brave but foolish armies. it just doesn't feel that way on a day when the dow plunged 354 points. s&p plummeted 2.5%. >> the house of pain! >> and the nasdaq took a 2.28% nosedive. here's what you need to understand, after the pacing we went through, you may not know what the timing is, what they will even look like. plus, you may be reluctant to join in. these soldiers will be different from the ones that you are used to, the ones you have been hiding with, the ones you were riding with, but we'll know soon enough and they will be welcome faces with guns blazing when they get here. i think this cavalry will come in the form of financials, industrials and technology stocks, all relative

outperformers on a hideous day. meaning, they lost less than any other stocks. i think they're all capable of saving your portfolios if you are willing to let them. that's going to be a difficult leap of faith, as you will hear. because of their risk profile, these aren't as easy to own versus say the stocks that normally come to the rescue. i'm talking about cereal, yes, soda, drugs. you may have trouble getting used to this. you may not even want to play. let's talk about the cavalry. first, the beginning of this market is the competition from rapidly rising interest rates that comes from the fed decision to ultimately end its bond buying program. that's really bad for the portion. bad, a sugar may not be bad? no. it's bad for the portion of the s&p 500 that's made up of the so-called bond equivalent stocks. think of the consumer package goods, health care stocks like the high yielding drug companies, the telephone

companies, the real estate investment trust, including super high yielding reits and the utilities. hey, look, these have all been fabulous multi-year performers. we sit here and talk about clorox forever, haven't we? much better than anyone can imagine with so many investors upset with the lack of bonds sought these stocks as places to get paid quarterly income checks. these groups represent 40% of the s&p. oh, man, that's a lot. even more importantly, they were visible. notice how you use the past tense. they were visible stocks, easy to spot, easy to own, household names. utilities and phone companies we all paid. tip of the tongue. they served us well, alas, for a long time. they can serve us again, once they go much lower because they're too high after today. also sell-off, perhaps maybe 10% too high in many places. don't forget, all these high yielders have found new competition for bonds, that's risk-free, that's bullet-proof. that's a break when you think about it. plus you may have earned 3% from our dividends.

you may have just lost 10%, if you are lucky. when you make three on the dividend and you lose 12 on the stock, well, let's just say you done come out ahead. that's not tolerable to you. it's not tolerable to many people who didn't understand the risk. they thought that this plus their high yielding bond funds, they couldn't lose. we have been saying you can lose. ever since the fed did that fire drill, you are going to lose, so what can ride to the rescue in this environment. what can, not initially, not initially. what can withstand the blast? we're in the initial phase, the blast of higher interest rates. how about the companies that have historically done well when the rates go higher? that's right. remember, this isn't the first time rates have gone up. that's happened many times before. you may have forgotten it or are not familiar with what happened because it's been so long when rates go up, because business has gotten better. there are three groups of stocks that have historically worked in this environment that have

ridden to the rescue of portfolios. the financials. you are talking about typically the technology stocks and the industrial, why these three for once something is going to be attune about this wacky business. why does ben bernanke feel he can take the bond buying life support away from the market? it's pretty simple, right? what did he say, like 42 times, but they didn't trust him. business is getting better, whose business? the industrials, the technology companies, the financials. all three of which need better economic growth to thrive. that's why the rates are going higher. if business is getting better, we will build more plants, use more equipment, expand. believe me, ben bernanke is not going to taper off bonds, he's not monitoring coca-cola and general mills. he's not focused on duke energy or whether verizon is hiring people. very few of those companies are hiring, anyway. why do these sectors work at this stage?

perhaps because they make a lot of money lending. when rates go up, they can make much more money on their loans than they pay you on their deposits. yes. they make a fortune on cds, which i will detail later. think about this, when you see charles schwab and etrade hitting 52-week highs, do you think that's idle? do you think they pick those names out of a stock phone book? they make money that you keep in this environment. same with the regional banks. i keep using that term relative because nothing really went up today. how about technology, when the economy is going south, they cut back. they don't buy, they let it lay fallow. that's because they can't prove. no one can prove, listen, i get this new computer in it will make us more money. it's too ethereal. you can bring more revenue dollars down to the bottom line when you cut back on tech spending. you got to compete with the other guys, all of a sudden you need more hardware, you need more software.

you got to expand. earnings go higher. that's why so many of the other drive and semi conductors were at their 52-week highs today. it would help if business around the world would get better, too. that can come in time. if you stay tuned, i will tell you which of the techs will work soon. finally, there's the industrials. it is true many of these companies have done quite well. they haven't done well the way we want them to. they haven't grown sales, they have fired, cut back, laid off to the bone. so whatever dollars have brought in flow to the bottom line, even if the dollars aren't rising very much. i told you we like the stocks. we had many ceos on the show. you know who i'm talking about. they're like chuck bunch of ppg, sandy cutler from eaton. great executives who could make hay even when the sun doesn't shine. but when it does, look out.

you know what they do when sales are great, which we haven't seen it happen yet because the economy is not good, it's ka-ching at eaton and ppg. the industrials are the real cavalry. anything at aerospace has already arrived. they can't seem to quit, boeing is probably the greatest industrial of our time. you think of the market these days, you are probably thinking of 40% of the s&p 500 the healthcare, utility, consumer package goods, bristol-myers. right now they are clustered as a little big worm, i'm afraid. this other group, bugle blasting financing industrials, they're about 40% of the s&p, an entirely different 40%. there are other stocks that can do well like the starbucks, or google or visa or master card or last night's guest, restoration hardware. there will be stocks people fret about because they think business is slowing. even as these rates aren't so high as to stop much business from being done.

most of the 33 years, rates were double what they are today. i never really feared them. now, remember the analogy for this market. initially, everything gets blasted by a change in policy. we said that. well, actually we said it every single day this week. we said that everything gets blasted when they raise, when interest rates first go up. and we are still very much in a powerful blast zone because stocks are still way too near their highs and not near their lows to say it is done yet! then soon, maybe even as soon as next week. for some stocks, believe it or not, tomorrow, we get some wise old folks like me remembering what to buy, remembering what works. remembering when this kind of hammering occurs, you got to do braving of some bullets and you got to do some buying. here's the bottom line. after the velocity and intensity of the human waves of bond sellers, you can't expect the selling to subside immediately, it's too powerful.

custer doesn't get out, we won't have any casualties. there is a little of a zulu dawn that doesn't make it so everybody goes back to london. however, it will happen. when it does, if you make the switch from some, not all, some will drag 40% to the thriving financials, the techs and industrials and the good one, then i think it will be worth the change. all right, the goal, lose a little less. and then be ready to play for more. joe in oklahoma. joe. >> boo-yah, jim, joe from oklahoma. thanks for taking my call. >> absolutely, chief, what's going on? >> with all the commodity chaos, i was particularly looking at silver, silver techs 9%. is this a good buying opportunity or is the sector too risky, also? >> joe, i have been anti-silver for some time. i'm not going to be tempted on price. silver also has an industrial component that i don't really care for. i haven't liked silver, i don't like silver. i'm not going to recommend silver on the show. i like gold coins.

i think gold coins have a place in your portfolio, i will not recommend silver. ron in florida. ron. >> caller: jim, hi, greetings from an ex-jerseyite. i was like everybody else today, clutching my chest watching this market. my question is about bkcc, black rock kelso. >> right. >> is that a buying opportunity or just take my lumps and run like a thief? >> first of all, i like black rock the company very much. i have shied away from these companies where i don't know what they own. that company yields 11%. i don't know how it yields 11%. i don't know the loans that they own. that will be too hard for me. there may be others that do know. they have an edge on me, so i cannot tell you something better than they can. i defer to them. i'm not as we say on wall street the call for black rock kelso capital. we are experiencing a changing of the guard. it is a very, very painful

changing of the guard. >> the house of pain! >> we live here for now. what we get here -- >> the house of pleasure! >> 40% of the stocks might, "mad money" will be right back. coming up, diamond in the rough? it was a gut-wrenching day for the markets, but don't move, cramer's got his eyes on a group of stocks that could be the first to bounce back. and later, 2q commanders. they've been the top stocks that soared during this chaotic quarter. could their resilience help you cash in for the rest of 2013? cramer reveals the list just ahead. plus, pirate's booty? a strong dividend and recognizable brands have made b & g foods a satisfying stock. will the fed's plans spoil its shares or could its cart full of acquisitions propel it higher? cramer's exclusive with the ceo is next, all coming up on "mad money."

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>> we're in the blast zone. those dividend equivalent stocks are not the place to be right now. i like to go after stocks that have good earnings that we know of. okay. the businesses that do better when the economy is getting better. which is after all the cause why bernanke is reigning in the magic carpet ride. i always like to take my cue from the market. always, meaning on a bad day, i ask myself, what group acted best? what is tipping its hand so when the futures selling lets up, it can roar. sometimes the action underneath the market isn't as dumb as it often looks.

what do i come up with? how about the regional banks? despite the horrible action in the averages today, we witnessed this group of stocks performed better than they have, relative to the market. it's absolute if they went up. relative to market better than any time i have seen in the last six years. huntington bank shares, people's united connecticut. these were up a lot when the market was still okay. it was only down 250 points. i'm talking about bedrock local banks, the ones that have been a huge drain on the market. ones riddling people's portfolio from losses from the old days. we have one all the time. right? six years ago the stock was at 39. huntington, 24 to 37. 10, now they're going up or barely getting dinged on days when the averages were being massacred. how can that be? can they truly keep rallying? something i heard all day today said, hey, you got to sell the banks when rates go higher?

well, you know something, that's not true at a certain point in the economy. this move makes all the sense in the world right now. that's what's amazing to me. int chaos, it was the aftermath of the fed statement. people figured out now at last, these banks are going to be allowed to make the money the fed denied them to, by keeping rates so low the fed was saying, can you not make money, banks the financial cohort represents 16% of the s&p 500, second to tech have been a gigantic tag on the index. they make fees for services, loans, certificates of deposit. fees have been terrific, especially when they keep getting raised constantly as you and i know all too well. loans, well, loans and cds both have been horrendous. there just hasn't been enough of a spread between what a bank pays you for deposits and the return it can get for investing those dollars of yours. that is known as the net interest margin.

these may be fabulous. big bank investors don't care for them. they don't value them the way they should. they don't seem to count for anything. they don't. loans, hey, they can be terrific. they carry default risk. if the economy is troubled like some people are saying it is already, that risk may not be worth it if the bank is going to make so little on them. aha, the deposits. that's something else altogether. let's say you buy a five years cd, you know your bond funds are losers, maybe are you a conservative every day investor. for the longest time, banks pretty much gave you the exact same rate on the cd that they couldn't get from investing your money because the fed kept down the interest rates that they could profit from. now the fed is letting them go up. we don't know. suddenly, the banks are paying you .81%. they're investing in treasuries and getting 1.38%.

you may think that interest margin isn't that big. from years of trying to scrape by, they're able to make for turning on the lights in the morning and capturing the spread between the cd and the five-year treasury. treasury rates have been going up, up, up, but the five-year cd, it's only up one little point it went from .8 to .81, i mean, come on, that's banking nirvana. you aren't getting more on those cds. sorry. that spread is all that the large institutional buyers of bank stocks care about. day one, today, the big change. day one where investors can buy bank stocks and feel they have a terrific year over year earnings profile, which will lead to big buybacks and higher dividends without that much risk to make it happen. that's why today was amazing. even though the averages got pounded into oblivion, usually it takes months for the market to figure out what takes right.

it took months in 1990 to 1991 when the trade occurred. back then, investors didn't understand that regional banks can do well when rates go higher. hey, now it just took 24 hours. bottom line is these regional stock banks have been red headed stepchildren for ages. they were the last place to be for a very long time. you know what, now when you sense that things are getting a little better, i'm not talking about going out into this torrential rain. when it tapers, the rain, not the fed chief, maybe that's where if you feel a little bold, you should put some money to work in. nick in california. nick. >> caller: boo-yah, jim from nick in newport beach. >> how are you? >> caller: good, thank you. yesterday, immediately following the fed's conference we had a big sell-off followed by a huge sell-off today. obviously, we were hit harder today, but regardless, we didn't see any reflection in the volatility index. it was flat yesterday, up .3% today. why do you think that is?

>> the vix did spike. it did spike. we were using mark sebastien. he was our guy we used earlier who said the vix is going to spike. it's going to be bad. remember we did off the charts not that long ago. i checked in with him. vix did set a new high for the year. it did go up a lot. i will say, listen, it's reacting on plan, it was signaling this big sell-off and now we're getting it. let's go to jay in georgia, please. >> caller: hi, cramer, how are you doing? >> what's up? >> caller: i have two positions, wells fargo and cisco. i want to know, both are bullets, which should i buy 91st? >> i would buy wells fargo over cisco. wells is really all it is is back to where it was before the great recession. but how about doing this, don't buy either yet. let them both come down. my charitable trust owns them, i have no desire to buy them here. i'll buy them lower. makes sense to me.

let them go down a little. i think they can give up a little. then you can buy. think globally, invest locally. yes. not all banks do great when rates rise. like the regional banks, history says they do. "mad money" is back after the break. coming up, 2q commanders. they have been the top stocks that soared during this chaotic quarter. could their resilience help you cash in for the rest of 2013? cramer reveals the list just ahead. and later, shock market. frazzled by the violent pullback in stocks? cramer makes sure your portfolio makes the grade on am i diversified? all coming up on "mad money." vo: traveling you definitely end up meeting a lot more people but

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and more time doing paperwork. ink from chase. so you can. after the second day in a row where the market got absolutely crushed, in the wake of yesterday's federal reserve inspired carpet bombing, pure carnage. where do we begin to pick among the rubble when i sound the all clear? are there any hidden gems underneath the white phosphorous and high explosives we've been laid to waste by? okay. i think there are a handful likely to rally next week, simply because we are now approaching the end of the quarter. normally the best stocks get a boost as hedge funds and mutual funds do some buying to mark up

their merchandise. it is illegal. well, let's just say they do it. and the funds that do some buying, two reasons why they will get bought. one you move them up more. look, they have been in the quarter the best performers. you have to understand, if a manager owns two million shares of a stock, let's use this example. he can move that stock up by half a point with intensive marking up, using multiple brokers, that's how unfortunately they do it, boost it, he can boost the performance by a million bucks. hey, if he does it across the board with all his positions, you know what, they can beat the averages that way, it happens. other money managers dress the windows. otherwise, their clients might say, yo, chief, game stop, you idiot, how could you not have owned that? even my kid knew they were

great. ain't you ever heard of "call of duty block-ops 2?" you moron, their kids play it. it is so incredibly popular. in a difficult moment, think of these top performers in the s&p 500 as our second quarter captains. yes. and marianne, the millionaire and his wife. the ones with the wind behind them are the ones that likely can move forward next week, even as we know this market has turned horrible and nasty. so right now, who are the best performers? now, not every single one of these stocks is worth owning. they are all likely to end from this better than quarter markup from this window dressing. we look at the strongest ones. number one is first solar. that's been up 56% since the quarter began.

on april 1st the best performer of the quarter so far. pretty amazing. first solar, who would have thought it. companies have that in april. caused it to jump 45% in the a single session. it declined to less than 40 cents by 2017. hey, that will make solar power actually economical. meaning the company has a booming order book. and it's the unquestioned best of breed in the sector. first solar shifted away from the united states as well as faster growing developing countries. perhaps most important of all, chinese dumping of solar panels has become much less of a problem ever since china got embroiled in a dispute with the eu and the chinese solar companies started folding. i don't want to go near this one, no, i don't want you to go near first solar now. i think we missed the move. we can price 9.7 million shares at $46 apiece.

no institution no matter how desperate can move it back above the $46 level. not now. all these new shares flooding the market. if market below 32. every attempt to mark this up on wall street will be met by selling, by defeated co-shareholders. so at this point i'd stay run of the made the money of the made, we need now to made until the next quarter to see if first solar can maintain the momentum. coming in second, advanced microdevices amd, it's tied to making processors for the personal computer business might be on its death bed. i was worried. i hated amd too far down. given the massive debt load and lack of profitability, there was a concern whether it was on its death door. amd announced they were launching the sony play station. that's been a total game changer. revenues from the ps 4 should start to really ramp next quarter. at the same time we know they

are powering microsoft next generation's x-box. amd is a fast growing game market, it is launching two major cycles. right now we have only four rated to buy. 20 of us have a hold, four have sells. that's unsustainable. when one of these guys changes, we will send the stock higher. you know what, you got my blessing on this one. you may buy it only on the weakness. the markups will take it higher by next week. there is a terrific second half coming because of all the new product cycles. i consider this amd some sort of sequel, it's amd 2. it's back, it's bigger than ever. i know, it makes sense to me. this terrible, miserable, abysmal market takes this thing $3.87 at close to $3.50 where i would just plain buy it. the third best performer for the quarter is a tough one for me. i got it wrong.

own that you get it wrong. jim cramer, he got it wrong. no, jim cramer says i got it wrong, game stop. it rallied 46%. they will benefit from the same product cycles i outlined with amd, the ps4, the x-box, all the related games. game stop spiked $2.41 or 6.21% on a terrible market. microsoft announced they are scrapping the plan to restrict trade or used games on the new console and use video games, 40% of their business. that's a dig big deal. i think the game stopper now for too low going forward t. company should have a terrific second half. even though it made a new high, it has room to run. that's one reason game stock is aggressively buying back its own shares. but with the end of the quarter coming, who knows if you will get one. any stock up huge on an

annilation day with the wind in the face, if it turns around, it could really go if the wind comes from its back. again, i will repeat it. i want to play with an open hand and be tough on myself, especially on a day like today. i have missed the bulk of the move. i was not a believer in the story. next up is one that i have, i can lay claim to it that i have liked. the fourth strongest performer in the quarter is another retrosemi conductor stock, amd, micron, i have been telling you they are about improving commitment as business gets better, you should expect something like micron to get higher. they just announced a stellar quarter last night. i love the conference call after the close. they actually beat by a penny, delivering their first profit in two years. it has been a huge user of cash. the cash flow is very positive. i think the stock would have been up possibly a buck, maybe a two. and i think the next quarter will be even better. they are a maker of d-rams,

dynamic random access memory chips. that's the memory found inside most computers and the new game consols, yes, for a long time this was a lousy cut throat commodity business. there used to be ten players in the d-ram space, all at war with each other. right now they are in the process of acquiring a company. they will be among samsung and micron. in the past, prices for d-rams came down dramatically. it made it a vicious cycle. they aren't now. there is no new capacity to speak of. i haven't seen it this good for micron since, hold your ears, this stock went from 18 to 99 in the period 1999 to 2000. wow! it did crash and burn terribly after that. you made some big money when things were going well, and i think that the company known as mu is going to do it again. companies like micron live and

die by capacity. that's why you got to have decline and supply, right? the demand pretty much stayed like this. inventories are leaked. there is not enough new capacity. at the same time the men might pick up for micron. if you don't believe me, a net conference call, the company came from anywhere. skepticism was thick. however, i believe management on the issue. one more. what else for micron? man, they make flash memory. flash isn't under nearly as much pressure as i would have thought. again, i would buy micron, are you ready at the opening tomorrow. finally, the number 5 performer up 31%. we talked about this drug maker on monday. they announced last month the stocks shot through the roof on the news of 13% in a single session. this merger makes so much sense, give acquisition to new businesses and filling a big hole in the company's pipeline.

i think this is terrific for activists. you buy the current stock. the wind will be at its back going into next week. so here's the bottom line. today sell-off is not the end of the world. going into the end of every quarter money managers like to buy the best performers out there. the five strongest names of the second quarter, my favorite is mu, micron, which i am buying tomorrow. you can buy amd, game stop on weakness. i am sure this market could give you a lot of weakness considering the hellacious way that it's beginning to trade. bye-bye first solar, see you later, out of here. sal in new york. sal. >> caller: hi, mr. cramer. boo-yah from harlem. >> what's up? >> how are you doing? >> all right. how are you? >> i'm great. i start my day with you and end my day with you. you are a wonderful person. >> it's a terrific day. that was a terrific thing you said to me, i thank you. >> caller: we appreciate everything you do for us.

the company, imex technology, what do you think, they just closed their secondary offering. do you think they're with the wearable technology? >> i totally understand the story. micron is better than himax. mu is the way to go. gregory in new york. please. >> caller: boo-yah, jim, how are you? >> all right. how are you? >> good, good. i have a stock i wanted to talk to you. my number one rule if i can't pronounce it, i don't buy it. back in may, i bought arcelor mittal. >> i wish you pronounced it like mattel, it was close enough to matel inside of mittal. one time i bought cvs, i went up big. i don't like the company, you should sell. i don't like the steel business.

it's the end of the quarter, everybody, not the end of the world. that's what i keep hearing is the end of the world. in rough seas, you want the wind at your back, for heaven's sake. these are the stocks with the wind at their back. i tell you something, don't forget. this one tomorrow morning. don't go away now. lightning round is coming up next. uh-oh! guess what day it is??

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it is time for the lightning round. i tell you whether to buy, buy, buy, or sell, sell, sell, when you hear this sound the lightning round is over. are you ready, skeedaddy, we go to sandra in connecticut. >> caller: hi, jim. i am wondering about agnc. >> you can stop wondering. i am not going to get into that stock. the real estate mortgage investment trusts, you will not make up the principal loss with the dividend. that's my view. i need to go to shelly in massachusetts. >> caller: hi, jim. >> shelly. >> caller: yes. >> go ahead. >> caller: i own sun power at

$20 a share and i followed it for the last eight months go from $4 to $23. today it's down. i want to know what your thoughts on long term on the stock. >> okay. right. "mad money," remember, we don't care about where the stock came from, we care about where it's going. that's going to tell me to sell sell sell, because i don't like that cohort. first solar is going down, it's going to bring down the whole group. don in connecticut. >> caller: what is going with pkd? >> i do not care for it. it's done better than some. i don't think it's high quality enough. john in florida. >> caller: john k. in dunedin, florida. i want to know what you think about international gambling. >> things are starting to do better there.

i go to the source. i like las vegas sands. ladies and gentlemen, is the conclusion of the lightning round.

>> a horrible day. you don't need me to come out and pull out what's left of my hair. you need to be a little constructive. that's what you do. let me remind you regardless of whether the fed starts tapering or doesn't or the rising interest rates is doing to the bond alternative stocks, there is a way to make money. there are some companies that take control of their own destiny. they move their stocks higher through sheer force of will. not only does the stock of the target go up, so does the stock we acquire. i don't think anything about this current bond market driven sell-off will change that fabulous dynamic. take b & g foods, bgs, it's a house of brands.

you see all these behind me, it came out a week and a half ago and announced it is buying pirate brands, the makers of pirate booty, the natural transfat and gluten-free snack for $195 million. in response the stock went from $29 to $31, a 6.8% gain. despite the latest sell-off, it traded $33 at today's close. we know what a horrible market we had today. b & g is the master of buying smaller brands to support the need to grow. i don't like many of the other deals. plus while it's no longer safe to buy stocks for the dividends, we appreciate the 3.5% yield. the stock has given you a return with dividends. since i got behind it october of 2010, it's up 8% since we last spoke, we know the market has gotten tougher. the s&p advanced over this period. that's terrific. although, we know the food group is away from b & g. let's check in with the president and ceo of b & g

foods. welcome back to "mad money." >> jim, thank you. >> good to see you. have a seat. thank you. i think we're a changed country. not just because of the stock market. we know that ama says obesity is a problem. >> yep. >> we know that mayor bloomberg has said snacking is a problem. we know there are a lot of people who go to whole foods because they want organic. this is to me the initiative you needed to do in light of the other foods you have. >> well, we're moving our products to a healthier profile wherever we can, lower sodium, lower in fructose, lower calorie counts, things like that. this is an extremely exciting proposition because it resonates with the consumer, as you said, all natural, gluten-free. it has a better nutritional profile than most snacks out there. people are eating it themselves, more comfortable feeding their children this as a snack because

it has that profile. >> now, we have often talked about the idea that the acquisitions are integral to your growth story. in this conference call, after this one, you used the term m&a is limited. at the same time you indicate there are other things that are for sale. is this the time to take a breather? big three acquisitions out here? >> we are poised to do another acquisition. we feel we create tremendous value by doing the right acquisition. we don't want to take ourselves out of that game. >> it's a company for sale. we don't know if it's in there. it's a little kind of tease. but yet there is still 5%. >> we never seen that before. is that in there? >> but you say there are. we know that uni-lever selling. you bought from uni-lever before. >> we bought mrs. dash from unilever. i think we were both very happy. >> yes. when i look at what's going on in the country and i know that

right now the yield. you are a banker and a food guy. what do you think about the whole idea that people are hiding in these bond equivalent stocks. they're selling them because rates are up. you have been around for years. should they stay put? is this what you should do? are you worried? >> well, in the conference call, i said, you know, when i look ahead and when i can get yield somewhere else, if i can put money in a money market, it's perfectly safe for something like that, i think people are going to be inclined to move their money away from a pure dividend play stock. we are kind of hedging our bet here, saying, you know, we're going into snacking, which is a higher growth part of the industry. but we're doing it in a way with brands that are efficient in terms of how you grow them, so even if we fail to grow these brands, they'll still have the same profile as our other brands and still give that you great cash flow and that yield. if we can add a growth aspect to

that model, still be very cash efficient, i think it's the best of all worlds. >> i can't have that flat growth. i need some growth. >> people have been very happy with flat growth. they work a while. >> in a no yield environment. >> suddenly i want industrials give you a little umph. you are talking innovations finally. you are ready to turn on the jets. is this the begining? >> that's certainly the latest launch we did with cream of wheat. we have done over 30 launches in the line from unilever. we did another pasta sauce and bolognese. we are doing a lot of innovation. we've trying to drive our base business growth with a lot of new products. >> i got to tell you, you did it again. it was at 28. people said, when is he going to do something? he does it. three big deals, great cash flow. you haven't had to tap the equity market here on this, you still use the credit line. >> we're still at a reasonable leverage level right now.

we don't need to go to the equity yet. if we do another big deal, we would probably have an equity component to it like we did with the culver acquisition. >> right. >> that helps you reload the gun for the next one. >> that's why i like it. i tell people to get out of the food stocks. i did not include bng. thank you, david wenner. acquisitions, growth, these can fight off that gravitational pull down on food stocks that are there. thank you. stay with cramer. coming up, shock market. frazzled by the violent pullback in stocks? and worried about what you own? cramer makes sure your portfolio makes the grade on "am i diversified?" we went out and asked people a simple question:

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>> a tough day. still in the blast zone. certain stocks haven't started to do that. remember, mu is one i am blessing tomorrow him i'm jim cramer. i will see you tomorrow! homebuilding giant >> we looked at every model home, and then when we found this one, of course, this is perfect. >> narrator: but when he diverts $34 million worth of mortgage payments into his company's bank account, the dreams become nightmares. >> when you bring it down to just its basics, it's just pure stupidity. it's pure theft. >> narrator: so when hundreds of homebuyers are left in danger of losing their homes, don't expect any of them to shed a tear for bill erpenbeck. >> i can't imagine the fear that all of them had, and i realize that that's my responsibility.