>> 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. i'm just trying to save you a little money. my job is not to entertain you but educate and teach you. call me. 1-800-743-cnbc. lot of talk about bubbles lately. you hear it from smart people who've been around for ages. you hear it from young whippersnapper short sellers who

need the market to come down so they won't look so stupid when they tell their investors how they're doing at the end of the year. i have to tell you, the bubblicious crowd, they were at the top of their game today. top of their game earlier this morning, when the market looked really soggy, only to work its way back on the strength of some better than expected earnings. allowing averages to rebound before pulling back at the end of the day over worries about a step up in syrian strife. finished in the red. dow dipping 73 points. s&p sinking .3%. nasdaq declining .28%. i'm not going to say the market is too high. that's not the way i think. that's not the "mad money" ethos. see, the market is made up of stocks. a ton of stocks. some of which can be very overvalued and be bubblicious at a given moment. and others, well, they actually may be undervalued at the same time. we witnessed whole markets be completely schizoid. look, take 2000. while the nasdaq was riddled with dotcom bombs and going from

5,000 to 2,000, whatever, just kept plummeting, the s&p excluding tech turned out to be cheap. same market. two different markets. we've seen several stocks this year that a lot of people would call bubbles. i prefer to use a different term, a more judicious word. i say they're cult stocks. amazon, netflix and solar city. well, those are cult stocks, okay? that's exactly what they are. tesla's a cult stock. they are stocks where the buyers aren't all that concerned with profitability because they're so attracted to the growth that comes from the total addressable market that these companies seek to corner. let me ask you something. do you think we really care, or at least the buyers, do you think they really care how much tesla or solar city can earn? when elon musk, chairman of the latter, crafted a vision of an electric car market dominated by tesla and a solar panel on every roof courtesy of solar city? we measure netflix by subscriber growth because it wants to be

the de facto global home entertainment company. as long as it keeps adding subs, and as long as that's all we care about, you've got a perpetual motion machine. we don't even want amazon to show profit. that's right. amazon is in too big a hurry to take over the world to be constrained by petty things like profit. it's kicking the can down the road, that profit can. a road of riches. but even away from the cult names, it's still too easy to call the market a bubble. it's easy to label higher prices the inevitable collateral damage from the fed's attempts to stimulate the economy. tell people they need to sell, sell, sell because of the bubbles. easy. but it hasn't been right, and i don't think it will be. let me tell you why. why don't we deal with the reality of the situation rather than just bubbles? let's talk about how difficult it is when the day-to-day basis to call something a bubble and then, therefore, have to sell the whole position based on the logic of bubble overvaluation. consider what happened today

with two big household names, facebook and starbucks. last night these companies reported fantastic numbers. amazing ones. analysts armed to the teeth with bubble poppers wanted to work. they went right to work on the q&a. they highlighted everything that might make you feel like you have two huge bubbles on your hand. you know what? they had double bubbles. double bub -- double bubbles. thank you. facebook delivered a monster quarter, but it seemed as though anyone could focus on a comment about how younger teens have decreased usage, and how the company doesn't expect to significantly increase ads as a percentage of news feeds. the result, we had a real dead horse beating about the peaking of facebook. even though ad revenue grew by an astonishing 60%, the company generated $1.8 billion in ad sales.

you left the call with the sense that facebook's best times, they're behind them. bubbles. of course, that's fact. of course, that's fatuous logic and that revenues for vimeo and instagram haven't hit yet. the company is scratching the service of the ad market. the average person spends 350 minutes on the internet every day and desktops, facebook controls one out of every eight of the minutes while on mobile it's more like one in five. they're just getting started. the bubble-popping analysts saw it differently, though. the company has a self-imposed limit on how much advertising it can offer without spoiling the user experience with an undertone lurking that younger teenagers must already be turned off by the ads and that's why they're fleeing the site. the q and a turned the biggest upside surprise of the season into a downer. that should never have happened. there's no slowing here. i felt very lonely with that viewpoint after listening to the interplay. 50 to 56, after-hours trading based on the numbers but then began a swan dive that morphed into a belly flop as we found out about engagement and ad

issues, taking the stock all the way down to 46. ah-ha. the bubble, it's been popped. ah! no. turns out you had to buy facebook down there because the growth here is unassailable. the next thing you saw was that the stock closed at $50.21, up for the day. same thing happened, exact same thing with starbucks. despite an incredible quarter, the starbucks call had a feel about it, there was a foreboding sense among the analysts that starbucks can't possibly exceed what it's done already. at one point it got so difficult, so, so tense, its ceo howard schultz mentioned the tension between us and you regarding comparable growth guidance had gotten out of hand, and said it would be irresponsible to say starbucks would beat the 8% in america and the 7% overall. lost in the shuffle were the fabulous packaged goods initiatives, double-digit gains there, the tea rollout. we talked about that last week. all those different foods. instead, the mob wanted facts and figures about how the food rollout was impacting same-store sales. management wasn't going to go there.

it didn't seem to matter to the analysts that starbucks may be using its stores for launching pads for a supermarket aisle takeaway. frankly i found the q&a here totally nitpicking. i respect the fact most of these analysts are trying to build future models, right, trying to build some earnings models and they are flummoxed about how to interpret the initiatives within the confines of the spreadsheet. a common problem when it comes to starbucks. how do you value loyalty? what price? how do you put a price tag on cars and mobile if they don't know how? they don't. starbucks doesn't get the credit where credit is due because they don't know how to do it. schultz pains to point out that the panera problem, the universal problem, the slow throughput on hard-to-make specials and new products, isn't an issue for starbucks. he did not mention the term panera. i did. the result, once again, a fabulous quarter was met with selling thanks to fears of overvaluation and the stock drops two bucks from the get-go. then starbucks claws its way back as people recognize the phenomenal and consistent growth

of the enterprise and it finishes up for the day. the commonality of both conference call managers trying to explain how good business is and analysts crafting possible theses about how business has peaked. it's all downhill from here and we're dealing with bubbles. if you think the market is in a bubble mode, then you certainly sell every share of starbucks. facebook is selling for over 60 times, must be public enemy number one for those who want to burst the bubblicious bubbles. and they're probably eager to short it. if you're trying to make money and you know growth is hard to come by, you need to buy, not sell these kinds of companies. sorry. that's what works. best of breed companies with clear, long-term growth. yes, there are pockets of overvaluation in this and every other market we've ever seen. if you decide you've had enough and want to cash out of the whole shooting match, you're going to end up selling some of the stocks, best of breed, just when they're about to rebound. so i've got an oscar wilde everything-in-moderation style solution for you. it's simple. stocks are hot. they have moved a lot, so take

something off the table. we sold some facebook from my charitable trust because we had a huge gain and we're not greedy. the trust did try to buy some starbucks on the dip. we were restricted because i mentioned it earlier in the day. selling best of breed stocks wholesale because bubble talk is in the air just doesn't make sense. as those who dump facebook and starbucks learned this very morning, i say take some stuff off the table, but let the rest run. bob in florida. bob? >> caller: boo-yah, jim, from partly sunny south florida. >> boo-yah, partner. >> caller: i'm calling today about chart industries. symbol gtls. they're involved in all aspects of the change to liquified natural gas as fuel for surface vehicles. it sounds great, but they got crushed today when they reported earnings and lowered guidance. should i get out? buy more? or be patient? >> i was surprised.

i was surprised that miss -- i need to have sam back on because, you know, when i saw it, i was taken aback by it. i was working on "squawk on the street," the morning show, and said i got to speak to sam thomas before i make a judgment what to do. it's worth it to just wait. can i go to sid in massachusetts? >> caller: hi, jim. boo-yah from boston. i'm sid. i watch your show with my dad every day. we're big fans. i'll give it to him now. >> congratulations to you and all the other members of red sox nation. >> caller: thank you. it's about expedia. bought expedia last quarter. sold for a big profit and the rest i took a loss. should i buy again in expedia? >> i don't like to recommend stocks that are up nine the next day because they tend to have profit taking come in. yes, this company is back. it had spent some unfortunate time in the wilderness. it's now crossed over the river.

it's in the promised land of travel, and i say buy it. i also say, sid, thanks for watching and don't forget to go trick-or-treating. can i go to richard in new york? richard? >> caller: hi, jim. this is rich from new york. how are you doing? >> i'm doing real well there, chief, how about you? >> caller: okay. jim, i noticed, i was watching one of your shows a couple weeks ago, and one of the top performers you were talking about was the airlines. >> yes. >> caller: and you said that u.s. airways may be a good, if not better value than delta air lines. that's what i got out of it what you said. you still hold that position? >> yeah, richard, my thinking was there, just so we know, there's a caveat. if they can get the deal with amr, if the justice department blesses the deal, then, yes, it's better. otherwise, delta is better, so it's an either/or proposition. depending upon the federales. okay.

don ho would have loved the market chatter today. tiny bubbles indeed. when bubble talk pops, and it's around the best of breed stocks, well, you know what, those who sold today, they learned the hard way. "mad money" will be right back. coming up, ace of bass? harman international's earnings report is reverberating in the market today and the stock is screaming higher. can its chorus of high-end audio brands continue to be music to wall street's ears? cramer talks to the ceo. later, shopping spree? costco has been on a steady climb as consumers turn to buying in bulk to try and save a bundle. can you ensure a happy holiday season by putting this stock in your cart, or are its days as a bargain long gone? cramer's on location for an exclusive with costco's ceo. plus, fright fest. while the market flirts with all-time highs, cramer's looking out for ghosts and goblins.

on this spooky halloween night, make sure your portfolio can withstand the wild witch of wall street when he plays "am i diversified"? all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.

sometimes a company will report a quarter that is so fantastic, it changes the way wall street views the company's stock. take harman, har for all you home gamers. maker of high-end speakers. you know their name, under harman cardin, jbl brands, among others, as well as dashboard systems for luxury cars that integrate navigation, media, smartphone connectivity into a single so-called infotainment system. here's a company who's a number-one player in every

single market where it competes. harman is practically married to the automobile market. cars are on fire, not just here but also in europe, a business coming back with a vengeance. 9 of the world's 15 largest auto manufacturers. this tech is not just making easily duplicated commodity hardware but proprietary infotainment systems providing navigation, wireless and safety. hence why 70% of their business in software. on the sound side system, harman is recognized as the gold standard. high quality professional grade gear used in everything from small venues to enormous stadiums. now, europe is harman's largest market. when the company reported a blowout quarter this morning, like the red sox's blowout victory over the cardinals in game six last night, it was a big deal. one more data point confirming the turn in europe's economy is real. 11% earnings beat off an 84 cent basis. higher than expected revenues. 17.4% increase over the year. this is a $5.7 billion company

that wracked up new businesses in the quarter. the stock soared $9. 13%. epic move. harman is now giving you a remarkable 130% return since we last spoke to the ceo back in june of last year. so more than a double, less than 18 months, and even after this run, the stock is inexpensive. 17 times next year's earnings, 18% long-term growth. let's check in with the bankable dinesh paliwal, president and ceo of harman international, we've been around for a long time, learn more about the fabulous quarter and where it is headed. welcome back to "mad money." >> great to be here. >> i need you to do something. people are going to say, well, wait a second. how does a stock go up that much in one day? and the answer is, you checked off literally every box that a growth stock person wants, right? >> well, jim, companies do well in a sustainable business. if you do the four things. one is you've got to innovate.. that's what good american companies do. we're very fortunate to be surrounded by great companies in america.

we're a global company, and we have to watch out your cost and you need to always look for the new trends. and it doesn't hurt to be in a good company, great luxury car companies, because we learn from them. so with those four things in mind, then comes the execution. execution has to become your dna. >> i think we have to talk about that, because you have three main divisions. infotainment, lifestyle, and professional. they all grew double digits. >> they did. >> you are expanding gross margins. you are building products where it is cost efficient. >> yeah, i like to call it best cost -- so mexico is a fantastic example. right now in the world of harman, we have a plant in 12 countries, but mexico by far the most productive nation we find. and how beautiful it is. it's like an extension of the united states as far as we're concerned. bmw, toyota, and daimler, they're making cars there. we have mexico. we have hungary. hungary is our largest production factory in budapest. these are the best cost countries, india, china,

ukraine. and the key is, you got to have these countries really collaborate with america. the germans. that's where the experience is. >> right. for people who don't know, give the panoply of some of the other brands and where you find them and what cars. >> so you will find jbl professional in all ferraris right now. you will find jbl also in toyota. you'll find it in lexus, harman cardin in bmws and mercedes and the list goes on. now harman cardin has also come in to all fiat and chrysler cars and we just put in all the lincoln cars worldwide will be shipped with our very exclusive brand. >> okay, now, you also, you talked about innovation. you do a series of acquisitions. here you talk about this one called ryan. $25 million bold one. what you do for patents and brainpower. >> absolutely. i'm always looking for technology and acquisition.

you see, jim, growth is easy. you can always find companies but you have to have a profitable growth to begin with. number two, i'm looking for synergy. so little companies found in holland, this will help $350 million speaker business go gung-ho. all the tunnels, unique applications, the acoustic properties were very challenged, we can do that. >> bob olstein is a noted value manager, comes on cnbc. he's been recommending your stock for a long time. he always said it's a growth stock but it's being valued as a value stock. do you think people recognize you have double-digit growth in these divisions? >> i hope people realize that traditionally harman has been put in the bucket of traditional automotive, axle, mechanical. >> yeah. as if it's, you know, that you make seating or make doors. it's not like that. >> it's not like that.

highly technology driven. 70% of work we do in software. all application engineering. all the modular software system. we're investing heavily in harman cloud. harman inside. so all the big data we can analyze in the cloud and give access to peer-to-peer in the car. so you're driving a car, i'm driving a car. we could be accessing realtime information and keep your systems current. so personalization in the car is the next direction we are taking. >> i have to believe you do personalization of the car, it's very difficult for a car manufacturer to switch out harman and put in another company. >> it's pretty high barrier to entry, as you will see. once you inspect in the life cycle, which is typically five years, almost given. unless you make a mess out of it, which means you're going to be blacklisted for the lifetime. so the key is you have to deliver, like we are now third generation bmw. we started with -- you've got to always -- the day you get the new award, you have to start showing them the pipeline. and interesting thing is we have now 5,200 new patterns and we're working on things that come in '17, '18, '19. that's what bmw likes. our carmakers don't ask questions of our capability of harman.

>> it's just a terrific story. down 70, down very big day, you shined. you really shined. this is dinesh paliwal, chairman of harman international. it's symbol har. all of the documents are really easy to read. this is a company you know. this is the kind of company i think you should own. stay with cramer. coming up, shopping spree? costco has been on a steady climb, as consumers turn to buying in bulk to try and save a bundle. can you ensure a happy holiday season by putting this stock in your cart, or are its days as a bargain long gone? cramer's on location for an exclusive with costco's ceo. and later, fright fest. while the market flirts with all-time highs, cramer's looking out for ghosts and goblins. on this spooky halloween night, make sure your portfolio can withstand the wild witch of wall street when he plays "am i diversified"?

hey, it's halloween. so in the spirit of going to a big box store to lug home enormous bags of candy for trick-or-treaters, we're getting a special chance to take a

closer look at one of my favorite retailers. costco. a stock i like so much that my charitable trust owns it. follow along at actionalertsplus.com. three weeks ago, the company appeared to stumble as they reported a rare six cent earnings miss off $1.46 basis on weaker than expected revenues and same-store sales at 3%, 40 basis points below what wall street was looking for. you know what, when you look deeper the underlying metrics are pretty sound.. strong traffic, rising margins and on point to double its store count. expanding overseas where costco already has a decent foot hold. it seems costco cannot be stopped, as the stock is now up six points since it reported and that's a very good sign. the customer loyalty, the low prices better in many cases than amazon, and the incredibly terrific staff make this, of course, free samples, too, make this the retailer to own in 2014. don't just take it from me. earlier today we got a chance to catch up with craig jelinek, costco's current president and

ceo who took over for the co-founder nearly two years ago. it's halloween, holiday season about to be upon us. how do you feel about the american consumer? what are they saying? you're in 39 million households, 71 million card holders. what's the move? >> you know, my view on this at the moment, i think the mood for the consumer is pretty good. i get -- we seem to be, you know, we usually gauge our business on the nonfood business, and, you know, the food business and our business, everybody has to eat. but we feel very good about how we're seeing some of our seasonal christmas items selling. our apparel business is very good. our hardware business right now is very good. if i had to say the area that seems to be weak at the moment is probably television sets, computers. but our tablet business, which i think is going to be a big business this holiday season, i think is doing pretty well for us. so i think overall, in our business, the consumer is relatively upbeat. >> now, you sell about $2.2

billion worth of tvs. you are a tremendous hard goods provider. provider of many of the companies i deal with are not having a good experience in apparel and are having a good experience in hard goods. does this have to do with the fact that maybe you are taking share nationally because of your prices? >> well, i would hope so. you know, the jury obviously could be out on that. we've had previous very strong years in both the high-end cameras and tvs. my view, there's not a lot of great new technology out at the moment. if you saw where our business, most of our business was going in the 70, 80, and 90-inch tvs. so our consumer has a tendency to be going bigger at the moment, but like i said, the laptops and the high-end cameras are a little softer this year than we would hope. >> okay. a lot of people are saying you are filling big shoes of jim sinegal but you've actually been side by side shoe-wise for a long time. >> you know, as i've always said, you can't fill jim sinegal's shoes. those are tremendous shoes.

i can only be craig. you know, i've spent a lot of time with jim. 30 years. i've gotten to know him well, and i've certainly learned a lot from him, and he's always a phone call away. if not, he'll call me. we still stay in contact a lot. i see him a lot. we still travel together occasionally. it's all good. it's all good. >> is the craig costco different from the jim costco? >> you know, i wouldn't say a lot different. i mean, you know, one of the things when you do transition, we had a very successful company. you keep the transition simple. there's no reason to make a lot of changes just for the sake of changing and wanting to put your own stamp on things. so, you know, we've got 185,000 employees. they know what they're supposed to do, and we just keep moving forward and do what we do, and that's trying to create value for our consumer. >> let's talk about international.

everyone knows, korea, very successful. japan has been terrific. taiwan, australia, mexico, canada, uk. now you're going to spain. is this the beginning of the next big move for international for costco? >> well, of course, it's the beginning. it's the very beginning. and then we'll see how the middle and the end go. but, you know, we should get our first building -- we should open up, be able to open up two in year '14 in spain. as you well know, we're looking around in france. let's see how we get spain up and running. we do have an office set up over in spain now. we're starting to look to source goods. so, you know, we're excited about the opportunities over there and we'll take one step at a time. >> is there a universality of the costco principles? for the people who work here? for the people who are cardholders? >> nothing will change. nothing changes. it's going to be the same, same experience, the same view that we have on people. the same view that we have on our business. wherever we go, any country. you'll see, the mix may be a

little bit different, but a costco will be a costco. >> let's talk about the impact of costco. fourth largest retailer in the country. fourth largest in the world. you are now sourcing in 44 countries. you are now a force when it comes to organic, natural, when it comes to just food in general, to beef, to chickens. are you, yourself, changing the whole sourcing way of international? are you changing the behavior of people who supply to you? >> i believe we are changing the behavior of the way people supply us, particularly in areas like produce. where we've been successful with some of our suppliers, they're looking to actually figure out how they can go set up in other countries. so we don't -- they can be part of the growth in these other countries. so i would say, yes, people are in this business looking to go international and set up shop in

some of these countries and start to grow produce. >> what are the big trends at costco right now? i know organic and natural seems to be a very big push. >> well, organic and natural is a very big push. you know, my view on this is that i think over time, organic and natural kind of came and went, or would come and go. but i think now it's here to stay. i think most consumers are jumping on the -- and they want to be healthier. they're going to the organic and natural. so that is going to be -- that is going to be big for us. the other part of the business is, we're trying to figure out how we can get bigger in the cosmetic business. we'd like to have people like estee lauder and clinique sell to us. we think there's a big opportunity in certain types of cosmetics. we're looking at that business. we're testing a couple of cosmetic -- i won't say racks. i would say small areas in two of our buildings in southern california. so we think there's an opportunity there also.

>> well, i know i've got a picture in your presentation of the suppliers, but i also know, i buy kirkland. i buy kirkland because i think it's a better brand. now, these great suppliers who are your partners, and you talk about in the most recent coupon, our suppliers put together terrific savings on products. how do they feel about the fact that kirkland brand is so good it gives them a run for the money? >> i can't answer how they feel. i know that the kirkland signature brand has been a very good brand for us. we always try to build a quality brand, and, you know, there's a cost of getting into a kirkland brand. we wouldn't mind having a supplier keep us out of that business if their prices were low enough, but, you know, it's the right thing to do for the consumer. we bring value to the consumer with those brands, and i'm sure they're not crazy about it, but competition's good. >> you offer great value. does that extend to diamonds?

you have a $140,000 diamond in this store. >> well, it does. we like to have higher end goods. diamonds are very exciting. diamonds are a very good business for us, and we think it's one of those areas that we can bring a lot of value. >> all right. let's talk about what the ethos of costco means. right now there's a big debacle in the country about the interface of the health care issue with affordable care. you have been at the forefront of providing your employees with the best care. what does it mean for costco, and what could you teach the country? >> you know, all i can tell you is that from our business, you know, life is tough for individuals. and, you know, you've got -- you want to have good employees. you want to provide for your employees. you want them to be able to not have to worry about a lot of things at work. you know, there's enough to worry about in life. but just worry about work. and i think health care is just one thing that i think is important for people to have.

it's one less strain on them, and i think it makes a more productive country. >> let's try to figure out the force of good of costco. you've got loyal people, which i understand from jim sinegal means that you don't have to train like everybody else does because people come and go. you've got 90% renewal rates for cards. what is driving this loyalty for the whole panoply? >> all i can say is you do the right thing for your consumer, try to do the right thing for your employee. our view has always been if you do the right thing for your member, you do the right thing for your employee, you do the right thing for your supplier, the shareholders are going to be rewarded. so just kind of do the right thing and things have a way of working out. >> and your comparable store sales, people were first disappointed at the beginning of october. 5%. turned out that you had the strongest. does that say something about the state of retail in this country? >> well, i think one of the reasons, we would have actually, if you look at it from a merchandise standpoint, we were

slightly stronger with deflation of gas. that's caused our comp business to come down a little bit, and also when you look at the international exchange rates, it's caused our u.s. sales in terms of dollars to come down a little bit. i think our overall merchandising business right at the moment is very strong. >> one last question, because i shop costco all the time, as you know. free samples. more or less during the holiday season? >> well, we would -- there's a couple things with free samples. they do have a tendency to clog the aisles, where people can't get around. that being said, we're going to continue to do samples, and we always want to continue to try to make them a little bit bigger to satisfy our members. >> well, thank you, because i don't -- i always fast before i come to a costco. >> we appreciate you just coming. >> oh, fair enough. thank you to craig jelinek, president and ceo of costco. great american company. >> thank you very much.

lightning round is sponsored by td ameritrade. >> happy halloween, cramerica. time for an extra spooky edition of the lightning round on "mad money." >> buy, buy, buy. >> sell, sell, sell. play this sound then the

lightning round is over. are you ready, skee-daddy? time for the lightning round on cramer's "mad money." i'm starting with john in new jersey. john? >> caller: jim, aig. i started buying it at $38. i've been selling it above and below $50 for a while now along with some option calls. that's $50-$55, through january. when and where does this ride stop? >> i have not been on the conference call yet. i've been going back and forth with stephanie link, co-research director with me of actionalertsplus.com, charitable trust. we were unhappy with the revenues and now have to hold them. it was disappointing and i'm surprised. i did not expect a disappointing quarter from aig. we're caught with our proverbial pants down because we have a big gain and we didn't take it. let's go to chuck in florida. chuck? >> caller: boo-yah, jim. >> very good, scary. >> caller: from sunny florida. yes, indeed. i want to wish you a happy halloween. >> thank you.

>> caller: jim, my stock has been on a tear this year and keeping with the halloween spirit, i want to know if this stock is a trick or is it a treat? ticker symbol, hclp, hi-crush partners. >> this is very similar to carbo ceramics, up 27 points today. i think you're certainly in the right zone. how about mike in texas? mike, mike, mike. >> caller: boo-yah, jimbo. this is mike down here in texas. dnc. looked like they reported -- >> all right. semi trailers. i got to tell you, i think cummins has come down enough i'd rather see you in cmi. i think that one is the one to -- >> buy, buy, buy. >> one more. let's go to john in new york. john? >> caller: yes, jim. my question is about dryships. >> i'm willing to get behind dryships. i've been waiting and waiting and waiting for the baltic dry freight index to bottom.

it bottomed and reversed last night, according to my friend, matt. i think we're good to go. buy. let's go to dylan in ohio. dylan? >> caller: hey there, jimbo. big cleveland, ohio, browns loving boo-boo-boo-yah for you. >> flash gordon booyah. playing them this weekend. what's up? >> caller: insy. what do you got for me? >> yes. great for cancer. incredibly speculative. if it is a speculative stock in your portfolio, i will, indeed, bless it. with pleasure. and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade. coming up, fright fest. while the market flirts with all-time highs, cramer's looking out for ghosts and goblins. on this spooky halloween night, make sure your portfolio can withstand the wild witch of wall street when he plays "am i diversified"?

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really? what's wrong with trying new things? look! mommy's new vacuum! (cat screech) you feel that in your muscles? i do... drink water. it's a long story. well, not having branches let's us give you great rates and service. i'd like that. a new way to bank. a better way to save. ally bank. your money needs an ally. just by talking to a helmet. it grabbed the patient's record before we even picked him up. it found out the doctor we needed was at st. anne's. wiggle your toes. [ driver ] and it got his okay on treatment from miles away. it even pulled strings with the stoplights. my ambulance talks with smoke alarms and pilots and stadiums. but, of course, it's a good listener too. [ female announcer ] today cisco is connecting the internet of everything. so everything works like never before. people find out should take state farm does car loanswn? the internet of everything. as well as they do insurance, our bank is through.

good point. grab an edge. look there's two guys on the state farm borrow better banking sign. nope for real there's two dudes on the state farm borrow better banking sign. [ reporter ] breaking news from the state farm borrow better banking sign... we're seeing two men that have climbed the borrow better banking sign gentlemen please get down from the state farm borrow better banking sign. phil get the hose. okay he's getting the hose. alright, let's go. [ male announcer ] talk to a state farm agent about car loans that can save you hundreds. that's borrowing better. i got to offer up a spooky boo-yah tonight. listen, i'm trying to not eat a whole basket of candy after i go

trick-or-treating, like i did last year. gave me a major tooth ache. tonight i want to focus on a whole different kind of basket, the diversified kind that i always talk about, where you don't put all your eggs in the same sector to keep yourself protected in case the market turns sour. speaking of sour, one of my favorite halloween treats is sour patch kids. where was i? am i diversified? call me, tweet me @jimcramer. tell me your top five holdings. i'll tell you if your portfolio is diversified enough or if you need to mix it up a little. let's start out with blake in new mexico. blake? >> caller: hey, jim, green chili boo-yah from the land of enchantment. >> thank you. right back. >> caller: all righty. my five stocks are salesforce, apple, boeing, tesaro, and one i really want to break bad, specially after the last two days is whiting petroleum. am i diversified? >> all right. just a second. all right. now, this is actually a little complicated.

i'm going to have to make some changes. i think salesforce.com is going to trade with apple because they're both two technology companies. aerospace. i think that boeing is great aerospace. they're doing terrifically. we know niobrara could be even bigger. we learned that last week. tesaro, biotech. speculative biotech. i'm going to ask you to keep salesforce and i'd like you to sell -- i think you got to sell apple and let's add -- let's do something auto. hey, you know what, i'm going to give you harman. it was so terrific. i got to recommend it. okay. let's go to jennifer in ohio, please. jennifer? >> caller: jim? >> jen. >> caller: my five stocks are cisco, csco, ford, "f," grmn, garmin. orcl, oracle, and schlumberger, slb. jim, am i diversified? >> wow. all right. now, let's think because, again, we've got a duplicate here.

we're going to have to be careful. first i'm going to call garmin non technology, say it's a company that has -- how would i characterize it? they've got, you know, ship on board. i love my garmin when i'm on board my ship. they also have interesting global positioning devices away from that. garmin is a global positioning company. schlumberger, oil. ford, auto. owned by actionalertsplus.com. cisco also owned by actionalertsplus.com. cisco and oracle are too much the same. so what we're going to do is we're going to sell oracle, okay, and bring in a high quality drug company. we're going to bring in johnson & johnson. all right. now i'm going to amin in new york. >> caller: hey, jim, how are you doing? >> how are you? >> caller: i'm good. i'm on my way to boston. my stocks are ebay, starbucks, rs, ip, and px. >> all right. go to work on this.

again, we see a pattern here. we got to do some work again. ebay technology, and also a retailer. okay? more of a technology play because of paypal. starbucks, okay, that's an actual out and out retailer. we know that. regions financial, a bank company. international paper, obviously the largest paper company in the world. and then blackstone. you know what, these are too much alike. they are both financials. this is private equity. you know what, this portfolio also needs a pharmaceutical. this portfolio, we sell regions and we buy j&j. "mad money" is back after the break. tomorrow, kick off the trading day with "squawk on the street" live from post 9 at the nyse. >> i know you watch tv 4.5 hours per day. that's what actually america does. >> it all starts at 9:00 a.m. eastern.

don't ever say this market doesn't give you chances to get in at terrific prices, prices you may not even deserve. take yelp. last week i told you to be ready for yelp to report a terrific quarter and announce a secondary stock offering to fund its global expansion. that's what the company did, selling a ton of stock today that knocked the online yellow pages down a couple points to where you could snare some yelp at a price that could be considered a steal when we look back not that long from now. take yesterday's show, where i

revealed the pattern the market follows. for days we rallied into the fed meeting, as we were confident bernanke would leave the money policy unchanged because the economy is soft. the fed tells us exactly what we expected to hear and suddenly the sellers swarm in, crushing all the big cyclical companies that might be threatened by the softness in the u.s. economy. even as most of the companies do a huge amount of business overseas. as i predicted yesterday, cooler heads prevail and the same exact stocks get bought, causing them to come back with a vengeance. yesterday's trading in high quality cyclical stocks which were knocked down. 3m, united technologies and boeing. end of the day sell program related to middle east turmoil did shave some of those gains off the rebounders. or if you want to take a longer term view, consider the action of two very high quality companies that rallied gigantically today on earnings. expedia and perrigo.

they reported quarters that were disappointing. expedia told you not to worry saying it would solve its problems and come roaring back. i had to believe them because i co-owned the debarry inn in new jersey and the online travel company has become the de facto travel department for many who tell their employee, save costs, book through expedia. when expedia reported last night, it did everything it said it would on the previous conference call and an 18% move and a very big capitalization stock. when perrigo reported last, i thought the quarter was a good one. i said so right here after i listened to management come on the show and tell us about it. it was very clear the company that makes private label store-brand drugs was going to have a strong rest of the year thanks to drugs coming off patent that the company could knock off immediately. that's what happened when the company reported today and the narrative caused the stock to jump nine bucks. you knew it was going to happen. because the show isn't just about reporting what has happened, let me tell you about a new discount that surfaced in this session, that you should take advantage of. visa, letter "v."

after listening to today's conference call, many people decided visa peaked. they were upset about comments. because of the government shutdown and death ceiling wrangle. the sellers didn't care and knocked the stock down seven bucks. that dip to me is a buying opportunity for three reasons. first visa is an international story about a fabulous secular trend as consumers worldwide switch from paper to plastic. this is one of the most pro-shareholder companies in the world doing big buybacks including today. third, visa has had periodic swoons based on its own candor, only to see these swoons erased in the next quarter. this time it will be no different and you have at long last another terrific chance to buy what i think will be a nifty discount to where the stock should be trading a few short weeks from now. stay with cramer. mad about "mad money"? immerse yourself into cramer's world while you watch the show with zeebox. on your phone, tablet or on the web, get sneak peeks, go behind the scenes and join the conversation.

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you're not going to get a fight from me that the market has moved up a great deal. you will not get a fight from me

for the idea of taking something off the table. i agree with profit taking. i don't agree that the market's in a gigantic bubble and you got to get out now. that is fatuous logic as we saw today with facebook and starbucks. i like to say there's always a bull market somewhere. i promise to find it for you right here on "mad money." i'm jim cramer. i will see you tomorrow. >> narrator: in this episode of "american greed: the fugitives," promises like this, luring thousands of unsuspecting victims. >> they were very nice. "this is a wonderful experience for you. i'm sure you're gonna be very happy. now, what we need to do to process your prize is the following." >> narrator: but instead of paying a jackpot, roland okuomose is accused of ripping people off. >> not one victim has received any lottery or sweepstakes winnings. >> narrator: now this alleged criminal mastermind is on the