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, just trying to make you a little money. my job is not just to entertain you but to educate you, so call me at 1-800-743-cnbc. the silent killer. it's always there lurking. no, i'm not talking about shark week! i'm talking about the scourge of

higher interest rates. as a rapid rising rates -- well, let's just say it helps wreck any hope of reaching still one more record high, at least for today. dow backsliding 26 points. nasdaq up .01%. why did interest rates start climbing today after a period it looked like they'd been tamed? why does it feel like we could be, yes, in for another round if we're not careful of mortgage rate increases? today i heard speculation that the reason for the jump -- and they did jump -- one that's kind of in sync with where we were a couple of weeks ago, is that the fed's starting the tapering debate once again. ♪ i'm ending this debate right now. this is -- well, what to we deal with when we hear about the taper rate? it's on the fed and bernanke attitude that bothers me so much. i don't think that's the reason at all why rates went up. i think rates are going up because alas, they should go up. yes, i think from what i've heard this earnings period, the economy's getting well enough to suggest that rates might warrant higher levels.

what makes me say this? remember my ability to divine things has much to do with the country not the data that the economists and their minions derive all their thinking from. frankly, i prefer the thinking of the minions in despicable me or despicable me 2 over the worship of the fed. because the fed worshippers have betrayed us, they have hurt us with their myopic views, just like the pundits have hurt us by constantly worrying that the revenues will never grow so the rally is doomed. they've been saying that for about 30%. in fact, i believe the fed is looking at the same corporate rate reporting data as i am and wondering head scratching, perhaps, whether we're about to get some better employment numbers because of what's happening in the real economy as exhibited by the earnings that have been reported. now, i know there have been plenty of press reports today about how caterpillar disappointed, and that's got us wondering whether the world again is slowing. that is the wrong take away. entirely! >> boo!

>> i have to tell you that i think c.a.t.'s just a victim of excessive optimism on the part of a management team that has repeatedly done the wrong thing! including buying two mining companies for top dollar and writing one of them almost off entirely because of fraud and simply ignoring the fact that it wildly paid for the other one. c.a.t. is about a bet, not on our economy, but the chinese economy. and i'm not talking about china tonight. okay? caterpillar's a distraction with a cavalier and cocky but suddenly gloomy management that doesn't get the new world of commodity declines. you know what, they're not just cavalier, they're clueless! anyway, so here's what's driving rates higher. the first is housing. it's just too darn hot despite the increase in mortgage rates to two-year highs. we learned new home sales increased 8.3%. the prices of homes are up 12% in a year, too fast, too hot. if i were ben bernanke, i would

like to slow down these sizzling numbers and give home builders a chance to catch up, perhaps even shake out the $10 billion worth of homes that are held by private equity in order to be able to play that game. look, i still think like john paulson who was interviewed in that delivering alpha conference that seems to make news every single day, i think we're in the early innings of housing's multi-year comeback. the fed needs to be mindful that there simply isn't enough inventory right now. and no one wants the rampant flipping we're beginning to hear about, like the housing bubble. when i listen to reports today and congratulations to alan malally who is one of our invest in america icons, i thought this is truly one of the greatest auto markets in american history, which ford is definitely the hottest in the world. do you want to have the lowest rates imaginable when autos could be bearing down on the best level of sales in years?

i think you could argue that the ten-year treasury, the most important piece of paper in the world, should be yielding 3.6, not 2.6, on the way to 4% not 3%. business in autos is that good. hey, listen, i want to attribute it all to ford, but the auto business is good, the f-150 is great. i only bought one f-350, known as the superduty. i didn't buy hundreds of thousands of them. we've got travel and leisure getting stronger too. we know from the incredible earnings we got from delta and u.s. airways today as well as trip adviser tonight, wow, what amazing numbers all. when you see the airlines beat the numbers, something that rarely happens in the 70-year trading history of the airlines, you know times really are flush. it gets better unless you own bonds. the gulf stream from general dynamics, they were up 29% from a year ago. if i were the fed, i would be

freaking out at that number. no one really needs to buy a g5, do they? ask yourself. there's probably a lot of people watching the show who have one. boeing reported an amazing number on top of united tech's numbers earlier this week, those are gigantic employers who need to add people to their workforce to meet the demand. don't take your cue about what boeing stock did. the mark was not great. take your cue about what what he said when he sat here, believe it or not, was better than what he said here. we know that gas doesn't want to come in. how about telecommunications? sure at&t may not have had the best numbers, but that's not the fault of the consumer. the consumer is signing up for new lines in incredibly strong fashion and carrier spending at an incredibly important part of the tech sector has to go up to meet the demand as we heard from qualcomm this evening. we know from apple's iphone sales that the customers still wants the most expensive phone even for subsidized, you don't do that if you're down and out. federal reserve had been worried that sequestration would hurt the economy. that it would cut in the growth economy, particularly the defense sector. hold that thought, the

best-performing stocks this year, defense, general dynamics, northrup grumman, lockheed martin. the congressional cost cutting may not be as crushing as ben bernanke thought it was. he's got to be thinking, man, i don't know. auto, gas, homes, leisures, defense spending. let's see, these are big parts of the u.s. economy. and rates are ridiculously low versus the strength in those key sectors. throw in the fact that last night we got our first truly post recessionary numbers from europe, a report that shows an expansion, something i've said is the hallmark of the earnings period but no one believed me until this morning. you get the feeling things have changed for the better. rate changes have got to come. the stock market tries to predict what will happen and not just surmise what is happening. what does the market see? how about the possibility we get a good jobless claims number

tomorrow and a better nonfarm payroll number next week. rates have to come back up to where they were a couple of weeks ago before we got gloomy gus data. i would urge you not to jump to too many conclusions. in an economy where mcdonald's, coca-cola and panera bread tell you things might not be so strong. well, an economy not able to bear higher rates unless you look through the lens of wendy's, chipotle and pepsico, an economy is judged by the earnings of norfolk southern is one that doesn't warrant higher rates, but an economy graded by csx and union pacific indicates things are humming along pretty darn well and lots of people are working on the railroad. you can grade the economy on caterpillar, but how can you explain the strength in united technology, emerson electric? you can say that semis must be in weakness because broadcom until you heard qualcomm tonight say all it will right thing. interest rates should be higher and we know from experience when rates take off, they do hurt stocks. the profit taking we saw today, it's because companies are doing so much better than we thought. and that means rates could,

indeed, head a little bit higher. so until they stop, you can worry -- you can worry for the moment that we've got too much of a good thing going. and after the run we've had, stocks right now, right here just aren't ready yet for the interest rate climb to resume once again. i need to go to don in florida. don? >> caller: hey, jim, thank you for taking my call. >> my pleasure, don. >> caller: my question's on home depot. right now, housing is on the rise and particularly in the northeast because of hurricane sandy where thousands of homes were destroyed. home depot is marketing a new wood in that area that's fireproof and mold resistant. do you think that will help home depot pick up market share? and is home depot a -- >> no, look, it's a rising tide situation there. and it's very gut-wrenching right now. lumber liquidators was up gigantically. that should bode very well for home depot. every time we see a different interest rate climb, people sell these stocks.

i'm not going to bet against home depot. if it comes down -- i've already told stephanie link, co-research director with me, i want to -- buy home depot for the charitable trust. end of story. thiru in california. >> caller: hi, thanks, for taking my call, jim. i just wanted to find out what's happening with the linn energy and walter energy. >> well, people are very concerned, they think that coal's not that good. linn energy, that is in the grips of one of the greatest bull/bear battles i've ever seen. and until the sec blesses linn energy's accounting, you're going to see this war rage and it's like the hundred years war. it's not the war of the roses, believe me because one side i think really smells bad. too much of a good thing, we saw the silent killer in action today. companies are doing well maybe better than we thought so interest rates went up and the market's trying to adjust to that new level.

"mad money" will be right back. coming up -- broken glass. from keeping you insulated to keeping you in the air owens corning has you covered. but this morning's earnings miss caused the company to go from pink into the red. could its housing exposure help solidify the foundation? find out in cramer's exclusive. and later -- sweet specs, high risk could also mean high reward. it's all part of a little healthy speculation. tonight, cramer's taking a look back to see how his best plays have done, and he's found one that may have even better days to come. plus -- too hot? while the market flirts with all-time highs, are you worried your stocks are becoming too hot to handle? cramer makes sure your portfolio makes the grade on "am i diversified," all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question?

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to build or not to build, that is the question. or to put it in less shakespearean terms, the market is wondering what will happen to housing. did we just hit a speed bump on the road to a multi-year bull market or a retaining wall? perhaps a stoplight. i'm a big believer in housing, but i know we need to collect some evidence. and the way i do my research is by listening to what individual companies with boots on the ground have to say. take owens corning, the best maker of building materials like insulation, roofing shingles, fiberglass composites. gets 54% of the sales from north american residential and new construction. but rallied 6% year-to-date. now, owens corning reported this morning, numbers came in shy of

wall street estimates, delivering 12 cents miss off a 69-cent basis, the revenues declined, 100 million below the consensus. the stock barely moved. more important, though, looking beneath the headlines, you get the sense that both roofing and especially insulation are expected to improve in the second half. insulation in particular is projected to experience higher volumes and higher prices. let's check in with the straight-shooting chairman and ceo of owens corning. welcome back to "mad money." >> well, thanks for having me, jim. great to be back. >> i'm trying to figure it out. there's so many levers. and in the conference call, you've got them. the price of raw materials, you've got whether there's storms, new housing, hey, you've got europe, you've got asia. if you had to look at why this stock acted so well in the face of what analysts said is a shortfall, is it that you personally and your team believe that the second half's going to be stronger than the first? >> yeah, today we reported that we were actually very happy with the progress we made in the first half. we came into the year looking

for improved pricing and volumes in insulation, improved margins in our roofing business and financial performance of our composites business and we reported all of that in today's quarter. the miss to the extent there was a miss is really timing of roofing volumes. last year, we had very, very strong first half roofing volumes and quite disappointing second half roofing volumes. we think this year, we'll get a more natural progression of roofing volumes where we'll have some good volume in the second half. our revenue this year in the second quarter wasn't quite as strong as it was in the second quarter of last year. but we think that's left good volume for us in the second half of the year. we expressed a lot of optimism that the price volume gains that we see in insulation will continue in the second half, roofing should have great margins and good volumes in the second half and, in fact, composites is beginning to make progress in terms of its operating leverage and getting some of the operating performance through to the bottom line. we're happy with the second half outlook we put out today and we're actually happy with how

that builds momentum into 2014 and beyond. >> okay. i had a discussion with a terrific strategist, known him for 25 years, he was on "squawk" and he was saying, jim, the biggest worry i have is margin improvement. i present your company as exhibit "a," that you can have margin improvement with revenues being okay. across the board margin improvement. >> yeah, you know, i think at least in our building materials markets, the rate of change of the market is very important to the confidence of our customers, to the confidence of their customers. i think we're all seeing house prices go up. so we know that there's some ability for the market to absorb some pricing, some ability for our customers to pass that along. and as long as we feel like demand is going to continue to grow kind of each month in a fairly predictable way, then i think the inventory management practices and the things you need to do in order to put price increases through, in order to get your margins improved can happen. where we tend to have challenges is when there's a disruption in the market. and even though currently housing is at very, very low

levels relative to history, it has been progressing nicely now for 12 or 18 months and we think that's a really positive trend if we can keep that going. >> you're not concerned with a little blip up in interest rates, 1.6% to 2.6%, moving mortgage rates to 4.4%, 4.5%. you're not concerned like so many others that this means housing has to take a big step back? >> no, i'm not. you know, relative to history, mortgage rates are still very, very low. and to a certain extent, an increase in mortgage rates might bring buyers into the market where they feel now's a time they need to buy a house so that mortgage rate increases could be a bit of a catalyst. i think with house prices increasing now, you know, really surprising to the upside for two years, increasing at double digit rates. if you can buy an asset that's appreciating at 10% and borrow your money at 4%, it's still a

wonderful transaction. i'd like to see stability in the mortgage market. i think important would be mortgage reform so the credit gets easier in the housing market and certainly with rising housing prices, that's something to look forward to. >> they talked about maybe doing a little bit more origination mortgage bonds today which would be terrific. there's a thing on page 13 of my transcript. the chinese have been the bane of a lot of our great american companies' existence. the first time i heard it, feels like the chinese have flown a white flag and are not being the predator pricer we usually discover they are. >> i think saying they've thrown up a white flag might be a little bit more optimistic than we were on today's call. but what we've said is we've seen a dramatic change in the investment profile of our china-based competitors really since the financial crisis. and that there has been a bit more discipline around the rate of capacity expansions and waiting for some demand to come in and fill in capacity. we actually think recently tight credit in china is causing more discipline around return on capital and the need to make returns. in our composites business,

we've seen a dearth of investment over the course of the last three or four years and the growth in the market is starting to improve utilizations globally. historically, it does lead to a positive pricing cycle. that's maybe not something we're on the precipice of yet, but we certainly look at the next, you know, year, year and a half and feel like the lack of investment over the last three or four years that's going to start come back to help our north american and european businesses which will benefit from stronger pricing environment built off utilization. >> we get pricing. if we can ever get back to 1.3 million, 1.4 million housing starts in this country, and you can get back to the 2008 numbers in europe, your margins would explode, your revenues would explode. that's how you get your numbers, right if those two things occur? >> those two things would help our business tremendously. one of the themes in our insulation business, we've seen a dramatic increase in energy efficiency standards in new construction since the middle of the last decade.

so the last housing boom we saw, 2003 to 2006, we were building at one level of energy efficiency. the houses being built today are 20% to 30% more efficient than what was built a decade ago. so, in fact, as we move through this housing recovery, we don't need to get anywhere near the levels of housing starts we saw in the last decade in order to see very, very good performance out of our insulation business. we think that business is somewhat uniquely positioned in that not only will increased units in housing benefit us, but actually energy efficiencies will benefit us in terms of more units in those houses that are being built. >> all right. last question for those of us who live in the northeast. will you be thinking, now, wait a second, we've got storm sandy, that's got to be really great for owens corning. is that in the stock, is it over? where are they with the storms? it sounds like everything's done. >> you know, it's interesting, you know, obviously storms are a reality of life for our business, and we certainly don't wish anybody to get caught up in storm damage, but when it does, you know, our products are very important to the recovery effort

and the rebuilding effort. in the case of sandy, the extent of the damage was so widespread and there was so much flooding that, in fact, that didn't create a big near term bump in roofing demand or really in construction products, at least for owens corning. typically where we see big increases in demand is where you see high winds or lots of hail. where there's rain and flooding, the rebuilding effort tends to be extended over a year or two and spread across the market. that has not been a big theme in our stock and we certainly have enjoyed good business in the northeast, but that's not a big theme in terms of our investors or growth for us. >> you've taken the stock up dramatically from the depths of the recession. you never got hurt because you were very well managed on inventories and terrific on raw materials. thank you to mike thaman, chairman and ceo of owens corning. great job. >> thanks, jim, we appreciate you having us on. >> okay. this is just a classic great american company. i'm not going to tell you you

have to make a stand here or stand there, but when a company reports a disappointing quarter and doesn't go down, what can i tell you? what happens when they report a blowout quarter? that's more likely to happen next. "mad money" is back after the break. coming up, sweet specs? high risk can also mean high reward. it's all part of a little healthy speculation. tonight, cramer's taking a look back to see how his best plays have done, and he's found one that may have even better days to come. ♪

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i've always believed if you want to be a truly good investor, you don't need to be a genius or well connected on wall street, you just need to be rigorous. you have to be willing to put some time, effort, and thought into the process and be disciplined. and that's extra true when it comes to speculation. betting on high-risk, high-reward stocks will give you huge payoffs when you get it right as well as hideous losses when you get it wrong. that's why tonight we're going to review our speculative picks on "mad money" over the last eight months. you can't just put them out there, you've got to go over them. all of you should periodically review your holdings. we do it every friday for my charitable trust, stephanie link and i send out a bulletin saying how we're doing. you've got to be able to learn from your successes and your failures and figure out what to do next. when it comes to the speculative side of the market, what's been working and what hasn't? when the market was down in the

dumps, everybody believed this year was going to be a disaster for stocks. i've highlighted 12 stocks in the speculative segment. vernetix, blackstone, jds, raidion, compuware, facebook, wr grace. these specs are up 20%. that's a tad more than the s&p 500 up 9%. but it doesn't work like that. you've got to break them down individually. we've got five massive winners that produced gains in excess of 50%. that's speculation. one stock up 30% in just seven weeks. three losers that produced double digit declines and a bunch of names that did nothing. that's usually the distribution. more important, though, what do you do with these speculative stocks? which ones can still work and which ones have passed their expiration date? let's start with wr grace, a specialty chemical company focused on refining. got behind this on june 14th. and while it's only up a

percent since then, i think it's just getting started. wr grace will be exiting bankruptcy caused by a lawsuit some time near the end of the year and i think the company's going to have an incredibly strong 2014. i just didn't know when the rally's going to be. i don't think it's going to wait until after. how about jazz pharma. story hasn't changed. which brings me to celdex therapeutics. it's developing treatments for some of the toughest cases of brain and breast cancer. plus, celdex has more data coming near the end of the year, i think there could be additional upside ahead. when you have a speculative name like this one that's rallied so quickly, though, in a short amount of time, here's what the trick is, you have to ring the register on a portion, not all, a portion, so that ultimately you can play with the house's money, which, of course, is the holy grail of all investing. let's say you invested $5,000 in celldex, that means you should

take profits on your original investment. you can sell, i don't know, couple thousand worth right here and let the rest run. same thing goes for tier lab, which provides a way to diagnose dry eye using only the patient's tears. they went up despite announcing a secondary offer. i think tearlab is on a roll since the company preannounced better than expected sales. but it's a tiny company that's gone up a lot in a short period of time. i think the best move would be -- on some, a third, maybe even half, let the rest run. at the beginning of may, i got the behind a company that was universally reviled. people hated it. i felt like a dope when i got into it because people were cat calling me everywhere. it was called facebook, down 6% since and this is a stock i own, much to many chagrin, at least until it reported after the close today and blew away the numbers! thank heavens, because, boy, oh, boy i was feeling alone on this one. and you know what happens when you're there?

they would have had my head on a skewer @jimcramer on twitter if fb had missed, but it didn't. in march i recommended a maker of performance software that's come down 10% total bummer. now, look, i don't blame anyone for bailing. who wants to speculate on tech when it's so hated? i believe it can rebound as it cuts costs, but it might be rebounding from a lower level. you've got to be patient. i'm disappointed myself on that one. in february, i gave my blessing and speculated on radion. given us a fabulous gain. i like this business going forward. even as there might be some near term turbulence, like we saw today. i also didn't like @jimcramer on twitter how many people panicked when they didn't make money. that shows bad holders here. but, it's another case, with a smart move might be to ring the register, but i've got to tell you something, i think the stock can go much higher. same thing with genworth.

krispy kreme has rallied 63% since i got behind it in january. it has plenty of room to grow. if you're willing to speculate responsibly, take some profits, do some trimming, i still like it. i recommended jds uniphase in january. telco spending is coming back. we heard it from a bunch of guys. hold on. back when everyone was terrified of the fiscal cliff, i said buy blackstone, the asset management firm with various hedge funds and real estate investments, it's rallied 56%. you can expect the company to get hit if interest rates soar. that gets hurt with higher rates. these guys are doing a lot of things right, and periodically while some of you may be jealous of them, well, let's just say they're pretty darn good guys. also in december, a pharmacy benefit management called catamaran. since i told you to stick with it eight months ago, the stock has barely budged up 2%.

i think the stock has a ton of potential, the stock is cheap, company signed a 10-year contract with cigna. they report in a week, august 1st. i'm willing to bet on this quarter positive. last but not least, and you've got to mention it, boom, you've got to put it out there, say it, you've got to wear the post-it. i made a mistake when i blessed virnetx for speculation. this is an intellectual property company that makes its money by filing for tons of patents and suing anybody who infringes on them. had been a huge gainer over the last decade, but the stock is down 48%. fortunately, i did tell you to buy it, check the script, using call options. yes, it was that risky, and you should have been stopped out at much higher levels. if you bought it with common stock, it's now too risky after not cleaning up on the last lawsuit like i thought it would, time to cut your losses. here's the bottom line. looking back on our speculative picks over the last eight months, you need to ring the

register on the big gainers so you can play with the house's money and do let every single one of them run. let facebook run as the bears will be converted into bulls tomorrow morning. and if you're looking for a spec that's still viable right here, go with catamaran before it reports next week. oh, my neck feels better once facebook reported that number. alonzo in virginia. >> caller: boo-yah, jim. >> stuttering boo-yah. >> caller: hey, thanks for helping small investors like myself feel as though they know what they're doing. >> doing my best. >> caller: hey, with the recent run-up in himx, a supplier of advanced display drivers and semiconductors, two days ago they announced they're in an agreement with google. google was going to purchase some of the sales in himx, it may confirm that himx may be one of google's suppliers, what's your take on it?

>> i'm surprised the stock isn't up more. i'm not kidding. maybe i'm just so in love with the google touch. a google touch is like the magic touch. it's not a new product they come out with next week, which they probably will. let's go to mark in california. mark zuckerberg, you're supposed to be on the facebook call, but i'll take your call in the "lightning round." >> caller: okay. thanks. >> go ahead. >> caller: oh, boo-yah from crescent city, california, jim. i'm looking at a stock called student transportation, the symbol is stb. it pays a dividend of 8.5% and it's been pretty consistent in its payout over the last three or four years. and i was wondering what you think about this stock. is it a buy or should i pass? >> man, you stumped me on this. this is a school bus company. i feel completely stumped. the only thing i know about

school buses were the blue bird, i walked to my school because i wanted to be like lincoln. that's about it, though, with me and lincoln. justice toward all. michael in virginia, please. >> caller: yeah, i was wondering if it's wise to invest in wwe wrestling now that tna have hulk hogan and sting and stuff. and i was wondering if tna, if you can invest in their stock? >> i think the stock has run enough. i think it's, in the end, no. it's not -- not -- malice toward them? no, but i don't think it should be owned. the excitement of specs can help you stay in the game, but you must have rigor, and follow your shot, and check back in! and facebook! don't move, "lightning round" coming. tomorrow, kick off the trading day with "squawk on the street." live from post nine at the nyse. >> had he lowered expectations

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it is time -- it is time for the "lightning round" on cramer's "mad money." rapid-fire calls, you say the stock i tell you whether to buy or sell. play until this sound -- and then the "lightning round" is over. are you ready skeedaddy? time for the "lightning round" on cramer's "mad money." i'm going to start with chuck in south carolina. chuck? >> caller: boo-yah, jim from south carolina. >> what's up? >> caller: private equity firm, calling about private equity firm kkr. >> well run, well managed, and good guys. i like that stock and i want to buy it. marilyn in new york, marilyn? >> caller: hi, jim. >> hi. >> caller: thanks for taking my call. i have owned computer associates, that's c.a. technologies for years, should i continue to hold it? >> yeah, i think they're doing pretty well. that's come back from many iterations, but i do like c.a. let's go to mohammed in illinois. mohammed? >> caller: hello, cramer, how are you?

i bought amd last week at $456 and held on to it and didn't sell it, it's at $363 right now. what should i do? >> well, if you bought it, you bought it for the fourth quarter when they ship all these game consoles, i think you should buy more. let's go to dave in north carolina. dave? >> boo-yah, jim. >> boo-yah, dave. >> caller: boo-yah, jim, this is dave from north carolina. >> hi, how are you? >> caller: good. my question to you is, first off, thank you for all you do, and my son watches you every night now with me, he's learning stocks. >> excellent. >> caller: yes, sir. my question to you is last week i bought the ipo retailmenot. i got into the ipo and sold some. do you recommend before i buy some more? >> no, no, no. that was terrific.

let's go to mohan in new york. >> caller: hi, jimmy. boo-yah. >> boo-yah to you. >> caller: love your show, man. my question today is on isis pharma. >> it got ahead of itself. should have rang the register on it then, i like it but we did get the win and it's time to move on. andre in california. >> caller: i'm a young investor. you're a huge inspiration. i was wondering about vonage. is it a good buy? >> yeah, i haven't looked at vonage in a long time. i haven't checked it out. we'll have to do some work on vonage. how about t.k. in maryland? t.k.? >> caller: boo-yah from maryland, jim. >> home of old bay and the ravens. go ahead. >> caller: absolutely. thank you for all you do. learned a lot and made a lot of mad money. my stock's had a heck of a run already, but with 25% long-term growth estimates and 38% growth margins and strong forward

guidance, what do you think about afop? >> what can i say, akamai is in a sweet spot. jdsu is in a sweet spot. telco spending is back and bigger than ever. i need to go to neil in pennsylvania. >> caller: hey, jim, boo-yah from the steel city. >> nice, steelers. hey, pirates, underrated. >> caller: yeah. i recently invested in best buy and i was wondering your opinion on it in the near future. >> it's run so much. i've got to give best buy -- best buy needs a breather. it needs a breather. my friend likes it up here, i've got to wait. i've got to wait. it just moved up too far for me. can i go to scott in pennsylvania? please, scott? >> caller: hey there, jim. i have a question regarding the brazilian oil company petrobras. my question is, have the tides finally turned on oil? >> yes, and that's why i want you to buy.

the stock was down about 80% from the high. pbr has great fields, i want to own it. let's go to john in iowa. john? >> caller: boo-yah, jim cramer! >> boo-yah, john. >> caller: hey, you came out in favor of the smithfield purchase by that chinese company i don't remember the name of, but what assurances do we have as consumers this company won't plunder just like -- which is now in bankruptcy. >> i'm not fan of what chinese have done to american business, but i am a fan of making money and you should take that one off the table. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade. coming up -- too hot? while the market flirts with all-time highs, are you worried your stocks are becoming too hot to handle? cramer makes sure your portfolio makes the grade on am i diversified.

i'd like to know, are you long america? >> we are competing with the best companies in the world. look at the global competitiveness of american companies by any measure. >> my life story can be your life story. you can start with nothing in america and create the american dream. e if bob were a vampire. but he's not. ♪ he's an architect with two kids and a mortgage. luckily, he found someone who gave him a fresh perspective on his portfolio. and with some planning and effort, hopefully bob can retire at a more appropriate age. it's not rocket science. it's just common sense. from td ameritrade. it's just common sense. could save you fifteen percent or more on car insurance. mmmhmmm...everybody knows that. well, did you know that old macdonald

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it's wednesday, half way home. why do i love wednesdays? because of playing "am i diversified." you call me and i tell you if your portfolio is diversified or not. people keep sending me these, because i love it, i dig down, it's fantastic. let's start with -- from @chewysauce. yeah, @chewysauce. hey, why not? as a beginning investor, am i

diversified, yahoo!, juniper, coca-cola, key bank and kinder morgan, kmi. and that's not the kinder morgan partners, kmp. juniper, telco equipment has bottomed, bingo, key corp., people think it's going to be acquired, a good bank. coca-cola not as bad as people thought. kinder morgan, that's energy pipeline and yahoo, we know what that is. we've got internet, pipeline, soda, telco equipment, bank, and i say @chewyrocks! why don't we go to chris in pennsylvania, please, chris? >> caller: hey, jim. big wyomissing, pennsylvania boo-yah. such an honor. >> i'll give you a break up the phillies boo-yah. >> caller: phillies boo-yah right back at you. >> thank you. go ahead. >> caller: all right. i was calling to see if i'm diversified.

solar city, i have, coty, p.o.t., seas, and bgcp. >> wow. okay. got some tougher ones, the bgcp was kind of a failure. okay, okay. let's go over these. we've got solar city, i am going to play solar city, i think they should put one on every single roof. that's the lender, if you want that. sea world, we know that the theme park business is in its own bull market. potash is fertilizer, coty is perfume. these two are a natural pair. fertilizer and perfume. am i diversified joke. and bgc is financials. financial, fertilizer, perfume, we've got theme park and we've got solar and that is about as diversified as it gets! ♪ hallelujah that's it? i just got started!

i hadn't even passed go yet! what can i say? stay tuned for more. hey! did you know that honey nut cheerios has oats that can help lower cholesterol? and it tastes good? sure does! wow. it's the honey, it makes it taste so... well, would you look at the time... what's the rush? be happy. be healthy.

is that true? says here that cheerios has whole grain oats that can help remove some cholesterol, and that's heart healthy. ♪ [ dad ] jan?

when the consensus speaks, it's hard to argue with. the consensus was that no matter how apple spins it, there's high-end saturation of phones. even though apple sold 31.3 million phones, 5 million more than apple was looking for, it doesn't seem to matter anymore. the consensus holds the market

isn't growing anymore. additional phones, according to the analysts are the wrong phones because many are 4 and 4s's and they're supposed to only sell newer phones. they make the most money on those and the trade down to the dumber phone gamut, well, it's something the other guys do, right? it's not apple's way. it's worse, the consensus now believes as apple's gross margins stayed steadier that low-end apple market is now cannibalizing and the iphone 5 isn't good enough to entice new buyers. this is what i heard last night. this conference call was so negative, you never think the stock would be up again. the consensus has spoken and apple doesn't have it anymore. the imagination, the excitement, the new product glow is over because the old products, the steve jobs products, the apple 4 are overshadowing the tim cook products. and unless that changes, the consensus sure doesn't believe that's possible. it's a no growth stock you don't have to pay attention to anymore. yeah, that was the theme of the conference call. not only that, but the consensus

does not like where apple sells the products. many asian countries as well as, of course, incredible sales in america, means nothing now to these nattering nabobs of negativity. the only sales that matter for these people are from china. and china, well, it isn't apple's strong suit. sure, they sell a ton of tablets there. the consensus has to acknowledge that. how else can china be 14% of sales? but you can tell they want to see double or triple that until it's satisfied. you can tell the consensus isn't happy with the arc of time, because the analysts want chinese growth, they want it here, they want it now. it's almost as if a chinese phone sales worth two or three phone sales in india, something that i'm sure the indians aren't that crazy about. and did the consensus bury the ipad as a new product. you would think an ipad sale is nothing but the sale of a sony

tv, no, a zenith, and they're the kind of giveaways that don't matter anymore. you can only surmise that apple's doing nothing right and is on its last legs, that's the consensus. what's the truth? how about this, the consensus analysts, they hate apple way too much, which is why the stock vaulted $21 in their faces today. no matter to you guys today, this is a battleground stock, almost as if -- i never thought this would be the case. it's now telling apple how the consensus think it's doing. there's only one problem, things aren't as good as apple says or as bad as the analysts say. discourse will change to the positive, and so will the longer term trajectory of the stock. unless, of course, the consensus is right and there's no longer any there there. wow, hope it's not the latter. stay with cramer.

i know it's a huge company, but i actually believe there's a short squeeze in facebook. why? because the last quarter was actually quite good. we opined positively on it here on "mad money," yet the stock got hammered anyway. i think people figured no matter

what they reported, it would go down. that turned out not to be the case. qualcomm was another company that people got fed up, except for recommended last week on delivering alpha. once again, delivering alpha delivered beyond anybody's dreams. qualcomm goes higher and facebook goes higher. if interest rates stay the same tomorrow, we go higher. there's always a bull market somewhere, i promise to try to find it for you here on "mad money." i'm jim cramer and i'll see you tomorrow! >> you're watching an industry go from an underground -- what i like to call the "wild west days" -- into a respected, legal, licensed industry. >> there's endless business opportunities. it's like the internet boom. >> do you represent the new generation of cannabis entrepreneurs? >> this is america's new hot industry. >> so, it's always important to make sure that you have high-quality pot. >> with the medical marijuana, you take a hit of it, you're