>> cisco on the lookout for february calls. >> i like uri. >> office furniture space? >> all right. thanks for watching. see you back here tomorrow at 5. in the meantime, mad money starts right now. 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. just trying to save you a little money. my job is not just to entertain but to educate and teach and coach, so call me at 1-800-743-cnbc. right now, right at this very moment, this red hot minute, it feels like the old days are back in the stock market.

what were the old days like? let me remind you. first, you come in this morning, europe is down, china is down, yet after an initial knee-jerk negative reaction caused by the spillover from the s&p 500 futures, the market manages to right itself with the dow ultimately going from bear to bull, gaining 71 points. s&p advancing 1.8%. nasdaq climbing 1.16%. how? because like the old days, the u.s. is once again the center of the universe. europe can tighten. it can slow down. it can do whatever it wants, but finally it isn't falling off a cliff. which is what matters. the bulls definitely want europe strong. >> and they have the united kingdom on their side where there may be some tightening needed because the economy is so strong. but what we care, what we really do care about is whether the head honcho at the european central bank is still in total ben bernanke mode, and he is,

because he is trying to make employment thrive. european banks are coming back. and china's trade with europe seems to be on track. mind you, a slowdown in china, the baltic freight index does seem to be pointing to lately this things aren't so hot. the thrust is that even though the european and the chinese forces are down, they can be shaken off. like we used to shake them off when we didn't care all that much about the rest of the world. this is a very welcome development, people. anything that breaks the linkage, anything that makes us less hostage to the sick man that is europe and the communists, the communists who are constantly trying to assert their power, well, if we can be separated from them, that is good news. we haven't heard anything new from washington lately and that's a good fact. like it or not, bad news about obama care is good news for business.

the more trouble the program is in, the less likely it can hurt business. moreover, anything we can suppress in his hand means he has less levers to push for higher tax -- [ booing ] -- although you know the house of representatives would never let him do that anyway. the monetary break from partisanship from the government by angry children is allowing confidence to creep back up. and it gives new business a chance to launch. now like the situation with europe and china, this won't last. i believe that as we get closer to january and another huge budget fight, the partisan nonsense will start all over again. i also think this time it will actually be worse than what we have seen because of how poorly the obama care website is working. the republicans really do smell blood this time, and it will be vicious as the midterm election season is just around the corner. anyone who isn't keeping at least one eye on washington during this blood sport lull is making a mistake because it could certainly cause for 5 to%

down in january after this remarkable run we've had. but that's january. and it's still too far away to put in this. still incredibly positive. this decline has put as much as a thousand dollars a year into the hands of some aggressive drivers. regular drivers are getting a big tax break that tax break more than offsets the payroll tax that people have been fretting about. consider the lower price of gasoline a tax cut. we don't talk about it enough. well can't pin it down directly to what people spend. but we know gasoline has to help, right, because it's all about disposable income. if $1 goes to opec and the other dollar goes to macy's. bulls don't want oil to go too much lower because then you would see the whole oil and gas patch get hammered. we can't lose that cohort. it's too hasn't. still, it's huge to see gasoline at a two-year low as it was today. there is some gibberish. major positive, though. what does it mean? take the average rate on a five-year certificate of deposit.

which according to rate watch is right now 0.82%. do you know that's the same it's been for ages? but the five-year treasury is now at 1.4%. so you subtract the 0.85 from the 1.4 and realize you have a huge net interest margin for the banks. every time they issue these crowd-pleasing cds and use the money to buy treasuries. we know wells fargo, they are gloomsters. hey, guys at wells, stop it already. you're starting to really make me unhappy. the banks make the best kinds of money on cds and fees. they have no risk and a ton of reward. that's why every time the interest rates go higher the bank stocks go higher better the actual margins of the banks are going higher just from the layoffs, frankly. that's not the way you want to make money, but it will happen. getting the financials in the plus column is fabulous news because it's the biggest and important to the market. fifth, finally, our twitter hangover finally seems to have ron its course, thank heavens. the pressure on zillow, linkedin

and yelp and trulia, including facebook has been so powerful over the last week that we lost a group which the had been integral to the success of the overall market. i think these stocks are now are bouncing back, including, yes, the aforementioned linkedin which many people booed after that last quarter. and i believe that guidance was way too down beat since the quarter was darn good. i'm not worried. i believe the twitter hangover extended all the way to google, which finally caught a bid after some serious floundering around. finally, the positive individual stock action just makes it much harder for the transfer of negativity from europe and asia to happen. think of what we got today. how long have we been fretting about the consumer? didn't matter that costco said the consumer spending, the gap stores said the consumer is spending, but today the nation's largest department store chain, macy's said things are good, and that, well, that was all it took. they left you with a very positive feeling about the holiday season, which was not

something people were expecting as everecently as a month ago. it's going to be a bad holiday based on what? remember i said that? based on what? what are they basing it on? i'm basing it off of macy's. and macy's is just too huge to be contained as is the fabulous pin action from that quarter. remember, macy's isn't like the high end steak joint that told us yesterday things are going gang busters. right? we had the ceo on. macy's represents the great american middle class that was supposed to be crushed by washington. it hasn't been. don't forget what macy's sells, clothes from ralph lauren, luggage from tumi and so many suppliers we have to rethink our negativity about them too. or how about this airline deal. i know after a day's run the good news is baked in the stock. but any analysis of airline merger shows that the big gains in the stock occur after the merger, and the leading gains are small potatoes versus what happens of the combination.

can i say buy us airways, people? can i be more direct? do you like my subtlety? i also like the fact that many of the home builders and housing stocks extended. we lost that cohort ages ago. i heard pulte today tell a pretty decent story. and what else? what can be said about a market where starbucks has to write a $2.76 billion check, more than anyone thought, to kraft, and yet starbucks stock is up 87 cents. if it were $3.76 billion check, would the stock be even up more? no, i have to tell you, i can't even explain this strength. i do think starbucks is terrific. i know, i know. these are all one-offs. a lot of one-offs can create an atmosphere that is always separate from europe and china, which is what is going to have to happen if we are going to shake off their blues. here is the bottom line. we are still in the grips of the money market up pairtive. it spurred a huge amount of chatter from the hedge funds to get in while the getting was

finally good. but the group think was so powerful that the selling supply dried up pretty darn quickly as demand flooded back into the marketplace. and you know what? that's what happens every time you're up 20% coming into november. as i have said endlessly, i do not think this time will be any different. i want to start the calls by going to jimmy in california. jimmy? >> caller: boo-yah, cramer how. are you this afternoon? >> i'm court of appeal good. how about you? >> i'd be great if you could help me out a little bit. i've got a two-part question on t-mobile u.s. >> okay. >> caller: and basically, i know when orange any live they got the settlement from at&t and the other company, i'm drawing the blank, they actually took less cash and got more spectrum. so my first question is besides dish, couldn't google technically be another company that could go after t-mobile u.s. because they're not an

actual phone company? and number two, the second part of the question is with this new offering, do you still think t-mobile is a buy? >> okay, yes. there is this big secondary what this gentleman, jimmy is talking about. they're issuing a lot of stock. i like the stock. why do i like it? very simple. why do i recommend stocks on "mad money," because the fundamentals for t-mobile are good. a takeover, unit that be terrific? could google do it? wouldn't that be fabulous. t-mobile is doing well. they're going to raise the money. they're going to do better. like the secondary. i would be a buyer on the deal. paul in texas? >> caller: this is paul calling from texas with a texas-sized boo-y'all to you. >> an ed reed boo-yah? anyway. >> caller: jim, my question is around the ipo extended stay with former starbucks ceo running the company, do you like it? >> i think it has a great business model. i think it's a company that went bankrupt and has gotten religion. i think jim had a tough run for

a while in starbucks, but he is a good manager and i think extended stay is a very good buy. all right. the good old days, we're still in the grips of the money management imperative right now, and i don't think this time will be any different. "mad money" will be right back. >> all week long cramer's playing hunger gains. with a five-star menu of stocks that could serve up juicy returns. tonight, dining dynamo opentable is up over 60% for the year. should global growth bring you to the table, or will competition cancel the reservation? cramer's setting the table in his exclusive. then taco bell and pizza hut couldn't help yum! brands recover from an embarrassing food scare at kfc stores in china. and caused the stock to go nowhere in 2013. is the worst behind this fast food titan, or could it still get fried? find out when cramer talks to the ceo, 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. welcome back. how is everything? there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise?

management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. sorry to interrupt, i just want to say, i combined home and auto with state farm, saved 760 bucks. love this guy. okay, does it bother anybody else that the mime is talking? frrreeeeaky! [ male announcer ] bundle home and auto and you could save 760 bucks. alright, mama, let's get going. [ yawns ] naptime is calling my name. [ male announcer ] get to a better state. state farm.

at this point in the year, you always want the keep an eye out for stocks that are clearly going to be anointed as winners by the wall street money managers who are desperate to own what is working. like i told you last night, you can be pretty cynical to this whole approach to investing as long as you realize it's real, it's happening, and you can try to profit from the moves of the big boys. you're smaller than they are. you can make this move. this is one of those stocks. this is an anointed one. it brings me to opentable which is all over open. its online restaurant reservation. if you want to book a table even in a really fancy place, you can go on this company's website, easily see what times are available, make your reservation

at one of open table's 30,000 odd clients, all without ever having to pick up phone or interact in any other way with a human or be put on hold. these guys totally dominate the scene. they also run the reservation system of the websites of tens of thousands of restaurants. no matter how you book your restaurant digitally, opentable gets a cut of the action. it's going to be anointed. about a week ago it reported spectacular quarter. a big reason why this wlun be so beloved. the company delivered 8 cents off 42 cent basis with higher than expected revenues. they rose 17.6% year-over-year. and the number of diners seated in a quarter up 28%, thanks in part to the acquisition of rez book which is a terrific mobile reservation app. and 40% out of nowhere of opentable's reservations. opentable is giving you a 30% gain since we spoke to the ceo six months ago. can he keep running through the end of the year and beyond? let's talk with matt roberts, learn more about how his company

is doing and where it's headed. mr. roberts, welcome back to "mad money." accelerated revenue growth real hard to come by this quarter. why? >> it's adding best availability at the best restaurants. diners love it. it helps us add more restaurants. so it's just a natural growth there are tons of opportunities still left ahead of us. only 15% still reservations are online. >> now a lot of people have felt that it was only amount of time before a competitor has come in. but you spent a lot of money building a proprietary system. has anyone been able to try to dislodge it with any success? >> not really. we've had competition in the past. we'll have competition going forward. but we're really uniquely positioned because yes the largest network in the world of 30,000 restaurants, and we seat so many diners. it's really -- we're in a unique position. >> what happens if yelp, because they are in pitch in, in all of the service companies, can you have it, can you flick a switch? or is there something to the installed base that makes it not so easily replicated?

>> it's really about building the real-time availability. it's taken a long time to do. we power many different partners. 600 in total. all of them in aggregate are only 5 to 10% of our business today. mobile has been such an important driver of our business, as you mentioned, 41% of our business is mobile now. >> i'm opening up a 17-table restaurant in brooklyn. sell me the product. >> it's about knowing your guests, helping you figure out how to lay out the table to maximize the turn times. it's a high fix cause business. >> do i have to pay every month? >> you have to pay a monthly fee, and the value, though, is really also in the reservations, the people that we seat where their seats might otherwise be oil. >> how do i know people aren't ripping your system out and going for others? >> ripping the system out? >> yeah. >> they're not ripping our system out because the dollar they pay for cost is generating $43 in revenue. >> $43? >> it's the most cost-effective way to market to diners, period. >> and i saw your terms. almost nothing. >> yes, less than 1% a month.

>> overseas they like the model? >> same mold, same playbook. best availability, gets the diners to love it, easier to add restaurants. >> forbes article, forbes kind of says look, despite a near monopoly in all my reservation, opentable is finally innovating, saying the site looks the same it always. because you're a monopoly, you don't have to change, you don't have to go to the cloud, you don't have to do mobile if you don't want. to you're a monopoly. you can pretty much do what you want, right? >> we're heavily investing in the business. we're heavily investing in the experience because you need to. you need to continue to innovate. just look at mobile alone. last year in the beginning of the year, only 25% was mobile. now it's 41%. so we had to get ahead of that curve and we continue to put investments to get ahead of the curve, the next curve. >> okay. restaurant openings. what is the confidence level? we know small business was high, then it got hit by washington, went low. what are you seeing out there in terms of people saying leaving a restaurant to open their own restaurant and then become an opentable client? >> we're seeing a nice robust

activity there. >> real pickup from a year ago? >> real pickup in terms of new openings which is a nice healthy indicator as well for us. we've become such an integral part of that opening because it's the largest network of diners in the world, it is the place to attract and to market to diners. >> okay. now i have to buy your hardware, right? can i get it on my apple ipad and not have your hardware? >> it's really a holistic situation. the software and the hardware in one bundled price. >> okay. >> and we're moving towards and we're going to refresh our whole base with a new cloud-based solution next year, jim, which is going to be an ipad. . that will be terrific. will that make it so you can't charge as much? >> no, the charge isn't really related to the hardware. really, it's about the service and what the service does and the value it delivers to restaurants. >> last night we had del friscos on. they're having a gangbuster. darden hasn't done that well, but i'm beginning to believe darden has operational problems. are you are an actual measure of

people going out. >> absolutely. >> are they going out more and more? >> actually, the industry for reservation-taking restaurants is kind of flat year-over-year. >> it is? this is what i need to see up. >> it was really a flat year-over-year for the industry. we of course grew 28% in north america and 46 in international. but the industry was basically flat in reservations year-over-year. >> what will the mobile app do? one of our questions on facebook as we look at all that you announce ready coming, are they going to team up with paypal to do a mobile pay application? >> well, wooer going have a mobile payment. >> paypal, right? >> the solution for us is actually to take that pain point of settling the check and address that. just like we did for online restaurant reservations, you don't want to call. you want to make it online. you want to settle the check through the mobile airngs very much so. >> that's what we're after. . that would be what we're after. we're going have that piloted by the end of the year in san francisco. >> it is the worst moment now when i go to a restaurant. it is by far the worst moment.

that would be terrific if you solve that. >> we're working on that. >> could you ever do social? mark benioff, i know you guys, i go to your website and there you are, he has preached to me, i know we're going out to dream force, he is preaching you got to have social, mobile, cloud. yelp's the social thing. can you do a social thing somehow? >> absolutely. we have a tremendous opportunity to layer the social graph on top of our review. >> really? >> we already have more reviews for our restaurants than anybody. >> okay. >> so it's saying what are my friend's reviews of this particular restaurant. >> that's where you're going? >> absolutely. . that would be the most valuable thing left. okay. thank you so much. that's matt roberts, president and ceo of. it works and people love it. stay with cramer. coming up, fair o foul? taco bell and pizza hut couldn't help yum! brands recover from an embarrassing scare at kfc stores in china. and the poor performance has caused the stock to go nowhere in 2013.

the worst behind this fast food titan, or could it still get fried? find out when cramer talks to the ceo.

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life in a dystopian future. we call it the hunger gains. okay, admittedly not the best play on the on words in the history of the show, but there are a ton of high quality food and restaurant stocks worth checking up right now. check out yum! brands that owns kfc, pizza hut and taco bell with locations across the globe. for a long time it looked like they were taking china by storm. the economy started scaring and the company took it on the chin. yum's latest quarter is widely viewed as a disappointment with earnings and revenues missing the estimates and same store sales down 11% in china. flat in the united states and only up 1% in the rest of the world. yesterday we got the same store sales numbers for china and they were much better than people had feared, down 5%. so we need toe ask ourselves is yum successfully turning things around? this is a very well run company with fabulous management. i wouldn't be surprised to hear good things at their upcoming

analyst december 4th. let's check in with david novak, find out if his company's prospects especially in china. mr. novak, welcome back to "mad money." >> it's great to be on, jim. how you doing? i hope you're getting a good dinner tonight. >> how can you not? you know kfc is a favorite of mine, not to slight the other brands, but i love it. it looks like kfc is turning in china, but maybe i'm being too optimistic. you can rein me in. you know my charitable trust has a position in the name. >> i think we've made steady progress this year in china, and we've been making great progress rebuilding the trust of the kfc brand, and our sales are definitely getting better. we're not fully recovered yet, but we're very optimistic about a full recovery in china. you know, kfc is the number one consumer brand in china. and this was a recent vary by bbc cited that. pamper's was number two. we're the number one consumer brand in china this year. and we have a great brand to take forward as we go into the

future. we're still underdeveloped with kfc. we see lots of opportunities. so the long-term has never looked better for kfc and china in total. and one thing i don't know if you're that familiar with, jim, is just pizza hut. you have to go to china to see pizza hut and the power of that brand. we are just absolutely knocking the cover off the ball there it's casual dining with all kinds of variety. when i was just there just a couple of weeks ago in shanghai, had a late-night happy hour. well duly have bailey's irish cream if you want a cocktail. and the next morning you can get up and have breakfast there. it's just a power brand. we're very enthusiastic about china, what we can do there, just as we have been in the past. >> david, do you think that analysts make too much of kfc? i mean, it has been a major driver over the years. it is time to just focus on the others while kfc turns around, or do we just have to accept the

fact that kfc is still the dog does that does wag the tail of pizza hut in china? >> well, i think you have to look at our company, jim, and put it into perspective. if you go back the past 11 years prior to this year, we exceeded at least 13% earnings per share growth every single year. i mean, we have a powerful company with a great portfolio. and the fact that we have a position in china like we do with the leading brand kfc and now pizza hut, which is coming on. we just opened up our thousandth pizza hut. we have 4500 kfcs there is no retailer in the world that has a position like ours. plus we have all kinds of headwinds behind us as we go forward. we literally have the opportunity now to take advantage of 300 million consuming class in china going to 600 million. and plus disposable income is growing soft if you look at the long-term you have to be bullish

on kfc in china. well think we're at the right place in the right time. i wouldn't trade places with anybody. >> how about switching to our country. taco bell. major ad campaign, a lot of brand visibility, a lot of talk. how is it going? >> well, taco bell is a bright and shiny star in our portfolio. the team led by greg has done a fantastic job. the live mas advertising campaign has recognized as the best in our category, and we were named marketer of the year. not just in our category, but across all consuming goods. we have breakfast coming next year. we have a breakfast that we're totally excited about. i was just at the franchise convention a few weeks ago talking about how we're going to win in breakfast. and we've got great tasting products and great value, and we really think that we can bring a major new sales layer to taco bell in the future. and that bodes well, because we really think today we have over 5500 restaurants, taco bells in the united states. we think that that can go to

8,000 over time. and as we make breakfast work, the economics are only going to get better. i was also in india recently where we opened up our 40,000th restaurant, a kfc, but also had time to go take a look at taco bell there where we have an exciting new format that is doing well in india as well. so taco bell has great opportunity in the united states. and again long-term, i think we'll make taco bell a global brand. >> now, when i fist met you in china, people would get married at kfc. people felt that kfc had the single best health standards. what happened that it became as if the government or at least the journalists there decided that all that was no longer the case? >> well, i think we had a food safety issue that got a lot of press. but remember this. we have a three-on-three basketball league that kfc sponsors in china. we have over 18,000 teams this

year. we do more kids birthday parties than anybody else. this is an absolute power brand. kfc is rock solid in china. and one thing that i look at is we play a great role in society in china, because one thing the government is really looking for, they want jobs. and we have over 430,000 employees in china, and this year i think we added about 45,000 new employees. so we're a strong growth company providing jobs, which is what the government is really looking for. and what the chinese customers are really looking for as well. and they like our food. so i think we have a really good brand. >> all right. so just to be sure, everything i'm hearing makes me feel very convinced that, say, this time next year we will not be focused on the problems in china, we will be thinking about the opportunities. because we're still focused on the problems. the a-list is still focused on the problems. >> i think when you have a

problem people will focus on it until you turn it around. this is show me, don't tell me, the proof is in the pudding. but we believe in the basic fundamentals of our business, not only in china, but around the world. this is a great business. we're investing in china and emerging markets and getting great returns. we have a franchise model. 90% of our stores are owned by franchisees. and as you know, there are very few businesses that will give you a higher return than collecting royalties. and we opened up this year outside of the united states and outside of china a thousand new restaurants, and 90% of those were opened up by our franchisees. so we have a very powerful business model. we're investing equity in china and getting great returns for the long-term. we've got a great franchise network outside the united states that is opening up 90% of our restaurants, and in the united states, we've really turned taco bell into a real force. we'll be adding breakfast. at pizza hut we have a major sales layer we'll be launching next year. and we're actually opening up

net new units in pizza hut and taco bell this year. you know, sometimes in your toughest years, jim, you do some of your best work. that's how i feel about our company. and i know i sound bullish right now. but i've always been bullish in our company because i believe in our brands and i believe in our people. and if i don't believe in this company, who will? >> look, and your track record is extraordinary. one last question. small-time, don't have a lot. you're a huge hirer. are we okay with health care? are we in trouble with health care and the workers you have? >> well, listen, i think that this country needs to get behind health care in the best possible way with the best possible solutions. right now we have a solution that has lots of debate, as you well know. and i think the jury is still out in terms of how it will really perform. but i think what we have to deal with now is the reality that we have, and we need to try to make it work and get on with it. >> excellent. david novak, you are the most

bullish i've haefrd in a long time. you were very concerned. it sounds to me that things are getting better. david novak, chairman orpheum brands and ceo. it sounds like it's okay. stay with cramer. are you long america? >> we ford in the united states are competing with the best companies in the world. >> look at the global competitiveness of american companies. >> my life story can be your life story. you can start with nothing in america and create the american dream. customer erin swenson ordered shoes from us online

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it is time. it is time for the "lightning round." that's about calls. >> buy, buy, buy! >> sell, sell, sell. >> play this sound and then the "lightning round" is over. are you ready, skee-daddy? time for the "lightning round." we go to john in massachusetts. john? >> caller: hey, how are you? what do you think about 3-d systems? >> we prefer strat sis. that's been our one the whole time. the whole group is red hot, but

stratus is the one we decided is the best. douglas in washington? >> caller: hey, jimbo, how is it going? >> all right how. you? >> caller: great, great. my stock is unt -- >> yeah, we got tired of unp. why? it missed the quarter really badly. we decided to exit on the strength. i got to tell you. i don't think you should own this stock north of 160. let's go to bobby in georgia. bobby? >> caller: great big georgia bulldog boo-yah to you, man. >> love them when they're on tv. can't get enough of the georgia bulldogs. what's up? >> caller: all right. i wanted to ask you about high max, himx. >> we like that. >> buy, buy, buy! >> but i don't believe their technology is that good or else google wouldn't be doing what they're doing with them. let's go to jonathan in washington. jonathan? >> caller: hey, jim, big fan. >> thank you. >> caller: i'm looking at volc. i can't decide whether to sell or not. can you help me out? >> in terms of medical devices, only get behind -- i love boston

scientific. it's move upped a lot. i like the st. jude med. that's the one i want to go with. let's go to bob in iowa. bob? >> caller: jim, this is bob in northwest iowa. >> hey, hey! >> caller: my stock is anderson, ande. >> only agricultural equipment stocks except for that one are just getting killed that one must have something so special that i can't -- i don't know why that stock has been able to withstand the selling pressure of the others. it looks like they just must be doing it right. let's go to chris in rhode island. chris? >> caller: hey, jim, boo-yah. how you doing? >> all right. how you? >> caller: i'm doing fine. have i enterprise partners for you edd. >> that's a very simple yes. now mark west today reported a really, really bad number and the stock got killed and they're take do you think a lot of the group because this is a better operator than mark west. we have to have mark west on. we have to have them on the find out what really happened. i invite them back. guys, you got to come on the show. let's go to fletcher in texas.

fletcher? >> caller: jim, boo-yah. i was calling to see what you said about tyler technology. i jumped in early 2011. got in at the bottom and it skyrocketed. i wonder if it's going to hold up. >> well, they do a lot of government work. they do so much government work, that does worry me. especially after some of the most recent blowups in that industry. i got to do some more checking. let's go to jim in colorado. jim? >> caller: hi, jim. how you? >> all right. how you? >> caller: i'm fine. send you a big boo-yah from denver, colorado. >> oh, man, i hope the weather, i hope everybody recovered well from the floods there. i know they were terrible. what's up? >> caller: well, i'm calling to ask about ampe, oh, man, local company. this is a very speculative anti-inflammatory play. as long as you recognize it as your spec play, i'll bless it. otherwise no, too high. and that, ladies and gentlemen, the conclusion of the "lightning round"!

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now, listen, i know that it's easy to get lazy. sometimes i'm even tempted to sleep in until 4:50 a.m. not last night, it was 3:50. as soon as you get too comfortable, that's when you can end up getting burned. this time of the year, even though the market seize pretty positive, it is vitally important to keep your portfolio as strong as it can be. what is the best way to do it? diversification, of course. let's start with warren in alaska. warren? >> caller: good afternoon, jim. my five stocks i have for you today are ford, pfizer, ge, coca-cola, and u.s. steel. >> very interesting blue chip grouping here. isn't it? ge, steel company, auto, pfizer a drug company and coca-cola is beverage. look at that, industrial, the congress glom rat, steel, auto, drug, beverage, that is picture-perfect.

and good yield too for the most part. that's not bad. i'm sticking with u.s. steel because i like that new guy, the new ceo. he really knows what he is doing. let's go to dan in florida, please. dan? >> caller: boo-yah, mr. cramer. how you doing? >> all right. how you? >> caller: pretty good, pretty good. are you ready for the most diversified portfolio you've ever seen? >> yes. >> caller: i got siri, avx, ford, and facebook. >> interesting. two people in a row have u.s. steel. and ford. ford i get bawl because of al mulally. but steel. haven't seen that in a while. barrack is a really not great gold company but too low to sell. sirius really well run. facebook is the internet company. my charitable trust owns that. ford, i think al mulally probably is going to go. that's how i'm feeling. i just get that feeling. don't want it, obviously. and u.s. steel is steel.

we have steel, we have gold, let's call it entertainment, internet and aude auto. and that's, again, perfect diversification. ford and u.s. steel. sounds like 1967, doesn't it? okay. let's go to robert in my current home state of new jersey. robert? >> caller: hello, jim. a big boo-yah to you from new jersey. >> oh, man. i remember when it used to be called something else. go ahead. remember? it was like leavitttown. >> yeah, yeah. it was levitytown. now it's sounds better. what's up? >> caller: boeing, halliburton, precisioncasting parts, starbucks, and noodles and company. oy. >> oh, man, a little something old, new. starbucks pays $2.76 billion to kraft and it goes higher. my kind of stock. 15% in colorado with the floods. halliburton, they have great gain. the oil service company. boeing, jim mcnerney.

you want to bet against him? uh-oh. precisioncast parts. that make parts for boeing. so we're going yeah, have to make a change. what do we do when we make a change? who do we summon? what do we bring? bristol-myers. that's right. well need a drug company. that's the one we're going to choose. let's go to matthew in new york. matthew? >> caller: hi, jim. first time caller here in midtown manhattan. how you doing? >> man, i was in midtown manhattan yesterday. it was dynamite. what's up? >> caller: the other day on twitter, you gave me some love back. you're a patriot, brother. much love. >> done your way. thank you. thank you very much. thank you. >> caller: okay. you ready for this? am i diversified? >> yes. go ahead. >> caller: let's do this. first we have hbi, haynes brands. >> yes. >> caller: we have alu. >> alcatel lucent. one of my faviea.

western real estate. >> caller: and then siro. >> really? the dental company? >> caller: yeah. >> shoot, man. you have some game. >> caller: and then snt, kate spade, baby. >> oh, you like the whole thing going here, my friend. all right. now we have apparel company, a dental company, a real estate investment trust, that yield is too high. i don't trust it, frankly. haynes brands, which i think is going up much higher. alcatel lucent can go higher. oh, we have two apparels. i'm going to sum it up once again. i'm sorry. i can't resist. let's sell and buy bristol-myers. stay with cramer. coming up, torn on twitter? bird is the word on wall street. but before you buy the new kid on the block, you don't want to miss what cramer has to say.

. tomorrow, quick off the trading day with "squawk on the street." live from post 9 at the nyse. >> i'm getting -- >> $1.8 billion out of your briefcase? >> i'm looking for my checkbook. here it is. >> it starts at 9:00 a.m. eastern.

i got real steamed when i heard barry diller, the chairman

of ic interactive talk yesterday morning about how no one is investing in twitter. they're just trying to make a quick buck in the stock, and how the only people who will actually make money are the insiders. i found these comments uninformed because in truth the exact opposite happened with twitter's ipo. investors actually bought the stock. that's right. that's who bought the stock that day, not traders. nope. the traders were the people who flipped to it the investors. the people who sold twitter were trying to make the few bucks, not as barry dillard contended the buyers. in this case the buyers thought they had a great company that they were buying at a reasonable price. when in fact what they did was buy a very good concept at a very expensive price. dillard thinks the buyers were totally cynical. i say they might not have been cynical enough. that's because individual investors thronged to the twitter deal so they could invest in a product they like, not the stock of a company they have researched. there is nothing inherently wrong with that. there are plenty of times it's

okay to buy the stock if you think it's reasonably priced versus the value of the enterprise and its products. but the people who bought twitter that day, well, the day it came out, they stepped -- they stopped at the first step of analysis. whether the product is any good. and most didn't bother to analyze the company's prospects. let alone try to link those prospects to the price of the stock or they would have found it to be absurdly overvalued as i did. it's not all the fault of the investors, though. twitter was front-end loaded sliver deal meaning that only a small piece of the total share count was offered for sale, and a big concentration of that tiny float was given to about a dozen institutions which purchased the rest of their stock when the market opened to get full positions. if a mutual fund got 1 million shares of the 80 million chair ipo, it might have gone into the open market and bought another open shares at an average of $36. that mutual fund buyer, who is pretty much pledged both to keep the stock and to buy more is a tough competitor to you because he's got such a good cost basis

by virtue of the earlier allocation in the ipo. the new investor, however, gets hurts both by the paucity of stock for sale. i think the underwriter needed to release two to three times as much stock as they did so twitter didn't open that high. something that might have been better for all concern, especially the company which always needs more money. the investors in twitter didn't care what price they paid because they had no intention of flipping it at all. they want to be long-term. long-term is no excuse for overpaying. just consider that you could have bought all the twitter you wanted at $41, yesterday, i think you'll be able to buy even more lower in the not too distant future. i simply don't believe that most of those buyers at the opening when twitter came public intended to sell it higher that very day as dillard charged. they want to own it. and what do you do now if you happen to be one of those people? i would read any of the number of terrific research reports now available about twitter. i would learn about what you would own from collin sebastian at baird, both have penned high quality piece about the company.

go do business with them if you need to see the reports. they can help you make a considered judgment whether to buy more, hold, or actually sell. ultimately twit kerr go higher from the opening day price. it might do that. if twitter gets it right, you could see the same thing thated to facebook that the stock got cut in half before rebounding to new highs. i don't expect twitter to go down all that much, but maybe it will come down to the low 30s before rallying. the thing i fear most is that twitter will get hammered again, and all the folks who own it will sell into it the weakness. perhaps the dirty down may be too much for you. if you do your homework, you'll at least be forewarned about the overevaluation and you can either get comfortable with it or cut and run now while it's still too high. either way, if you own twitter, accept that now indeed you are an investor, not a flipper, who simply got started at the wrong level. stick 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

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take the risk. but after listening to mr. novak, my charitable trust is not going to sell. it just sounds like it really is turning in china. i like to say there is always a bull market somewhere. i the obama administration timely coming clean with the real number of people who signed up for obama care. it is a bad number. only 27,000 through the federal exchange. even that number may be inflated because the folks haven't paid yet, but we'll see. is obama care going to crumble under its own weight? that is the big question. another new high for the dow industrials. great stuff. i think there's still reason to be bullish. by the way, janet yellen, she's testifying in front of the senate for her nomination, but her testimony was released late this afternoon and it