>> lyondell. i chatted with pedro about this. >> chemical. >> the last quarter, they crushed it. coming into this quarter, at the end of the month. a lot of people have a price target. >> all right. thanks for watching. "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'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 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. or tweet me @jimcramer. after a day where buyers grab some of the highest growth stocks that rocketed higher in 2013 but fizzled in the first quarter. today, investors zoomed right back into companies with stocks that do best when the economy's on fire.

dow gaining 40 points, s&p climbing .29%, nasdaq .20. companies that make heavy equipment, companies that help make planes or cars or homes just keep winning over investors' hearts. as we play in this vacuum that's virtually devoid of earnings reports, how thick is this love? not long ago, i predicted that caterpillar after a serious spell of poor performance could become adored. adored beyond all reason as the economy improves. it seems so natural given that united rental, a company we had several times and said its heavy machinery customers are as bullish as they've ever seen them. it's reasonable to think there's a big uptick coming in construction spending. maybe from the boom in oil and gas and nonresidential building. it's no surprise when the once despised now acclaimed caterpillar, big dow stock smashed through 100 like a hot knife through butter. it is the leader of 2014 that i follow. companies that melt iron and bend steel are acting the way

the biotechs acted not long ago and a huge acceleration in car sales led even general motors to rally. talk about a rising tide lifting the leakiest of boats. it was an amazing reversion to the old industrial days. in fact, feels a little like the '80s and '90s when manufacturing ruled the day in america. now, watchers of the show know i end every episode with the same promise. to find the bull market somewhere. and after a day's respite where 2013's leaders reblossomed, the bull market remains in stocks that do best when the economy picks up speed. something that's been the case ever since fed chief janet yellen told us not that long ago that things are getting better. of course, we find out on friday whether the better sales in so many areas translates into stronger employment. it does look like it's going to translate into higher industrial profits when companies report. yet, this is kind of a rally, might even be able to continue

if we simply get a number on friday that shows any real employment growth at all. but on days like today, i have to take something else into consideration. is it even worth pursuing a bull market at all given the notion that the whole shebang might be rigged. ever since michael lewis burst on the scene with his charges that the market's rigged by huge funds with advanced equipment that allows them to buy your stocks ahead of you and mark them up and sell them back to you, there's been a brutal battle between those who defend those practices and those who think they're nefarious. viewers know i made up my mind five years ago, that this high-frequency trading stuff was a horrendous tax on you, on investors that should not be permitted. it doesn't belong. i used to debate this endlessly

with the people who use their high speeds to front run you, but i finally decided it wasn't worth the energy. because every now and then, you have some practice that's basically no good and helps no one except those who perform it. the high speed traders don't give you better prices for your stocks, they tell you that all the time. they give you worse prices. the reason you get better prices these days is because the system switched from fractions to pennies. they had nothing to do with it. the high-frequency guys don't make for deeper markets either. you hear that one. if anything, they make for thinner ones. this is pretty logical, people. if you think the market's rigged, you aren't going to go near it and you'll go buy other assets. anything that drives away investors is bad for the fairness of the markets because there won't be enough buyers to make the markets orderly. high-speed frequency trading has driven many people away. let me go one step further.

people i've been around, i am not a spring chicken. i've traded everything at one time or another and have friends at every kind of firm imaginable. and i can tell you that with the exception of the companies that do this themselves, everyone i know accepts that defending high-frequency trading is no different from defending the mosquito. now, there's no real positive case to be made that mosquitos are valuable to humans. they're parasites. but unlike high-frequency traders, mosquitos cannot come on tv and tell us how great they are. nor can they assert the time-honored you don't know what you're talking about. but if they could, i hope you wouldn't believe them any more than these self-serving bandits. here's what i find galling, though. we spray for mosquitos, governments try to, at best, to eradicate mosquitos.

i once heard president clinton about his project to hand out millions of mosquito nets to stop the ravages of disease that these creatures spread. boy, throw a couple of tents wall street's way, would you? our government does nothing to protect you from the mosquitos of high-frequency trading. i think it's wrong. of course, if you're trying to pick the next berkshire hathaway, you're not going to feel the pain from some mosquito that buys that stock ahead of you and selling it back to you. when you're up 1,000 points, you p don't care much about a mosquito bite. but say you trade millions of shares a day. how about if your pension, your 401(k) is invested by funds that get bitten every day by mosquitos. that's a lot of bites. it's a lot of lost blood. it's not a pinprick. it's up to the government to stop that blood letting, not the buyers or sellers who are simply trying to get the best price for you. don't you think we have enough fees and taxes already on trading?

if the securities and exchange commission can stop one of them, this one, why doesn't it? now, perhaps the government doesn't view these mosquitos as rigging the market. but even if it's not rigged, it's obviously still nettle sm to the stocks out there. we hear all the time from funds that promise you the best price, but that's obviously a fiction given that the high-frequency mosquitos stand between your manager and the best price. i think there are three possible reasons why the sec doesn't want to eradicate the mosquito. one is somehow they believe the mosquito serves a function. they do fulfill afunction for bats which is ironically the name of the firm whose boss william o'brien did battle with michael lewis and others in this area on the air yesterday. i don't want to believe it. second is that the sec doesn't think it matters because it's been around and no one said anything before. judging by the fire storm that's greeted lewis' new book, that argument's out the window.

finally, there's the possibility they think there shouldn't be an expectation of fairness at all. and this, the mosquito tax, is simply part of what's unfair. oddly, this is a rationale i can get my arms around. i understand this one. perhaps the sec sees the imperative of the mosquito as being equal to the imperative to the pension fund manager. mosquitos have feelings, too? that's why i think the exchange idea that lewis praises, one that doesn't allow mosquitos, let's call it the mosquito ten exchange, is probably the answer. not an out and out ban of something the sec may not believe in, which is an actual level playing field. i think the bottom line's clear here. no one's going to eradicate the high-frequency mosquito because no one in authority seems to think it's necessary. but don't ask me to like it, and definitely don't tell me that it's good for me.

i'm not a bat, and i don't work for bats either. let's go to jack in florida, please. jack? >> caller: enjoy your show very much and also your book. >> thank you, jack. thank you. >> caller: what is happening with yelp? >> part of this what i call the high-multiple crushing -- there is just a multiple contraction that's going on for stocks that sell for a lot of money and yelp's part of that cohort. we're buying all these metal benders now. yelp will have its day again, but understand, it is in the high multiple tlesher right now. larry in massachusetts, please, larry? >> caller: hey, jim, how are you tonight? >> i'll be hosting friday. i'm doing some hosting. >> caller: i'm telling you, it was great even on a rainy night when you were in seattle. >> thank you very much. i wanted to tend bar that night, man. what's up? >> caller: i'll ask you, you seem to be more positive on the

clothing side of retail. with the rotating from home depot to coach and tvh lately. given the run in footlocker lately and the position in trifecta stocks, can you compare the prospect of those of finish line? >> well, they're both high-quality companies. i have historically liked footlocker. it has fantastic management. i like finish line's move into macy's. you know what, i know that this is probably not the answer you want, larry, and i'll certainly see -- but this one generally is a push at these levels. need some bug spray? the market sure does. the mosquitos of hft are bugging you all and biting. but the sec does nothing to eradicate them. "mad money" will be right back. coming up -- fresh fruit? forget amazon from its secret plans for the future of tv to its next generation iphone,

apple is taking center stage again. is the former cool kid from kuypcupertino about to shock th world again? cramer's slicing it open next. and later -- game time, the final four gives the best in college basketball a chance to reach the big dance. but the turning probably won't swing any profits into your folder. that's why tonight, cramer's kicking off his own magic between the best ballers in the market to help you become a stock champion. 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, 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. oney..

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suddenly, every analyst wants to recommend value stocks. even when they aren't exactly value stocks at all.

take this morning. we heard an impassioned plea from a very good analyst that apple, apple is an unappreciated value name. the recipe for value stock, apple's got the ingredients. it has to have a valuation blow to the average stock in the s&p 500, apple certainly has that using priced to earnings metrics. sells at a lowly 112 times earnings, average stock at 17.3 times earnings. a new product coming out, the iphone 6 that the analysts, gene munster who opines on apple believes is being underestimated. points out while apple hasn't had great earnings momentum to speak of, he sees the company earning a huge $43 per share this calendar year. and you can expect a boost as well as an increase in the buyback. but the most important thing about this recommendation is that munster's asserting if the market is taking up a lot of other value stocks, and that's

been the case, then apple should fit into the category, too, and deserves a higher valuation. frankly, when you think about it, this is a shocking turn of events. we've often considered apple one of the great growth stocks of our time with ever increasing earnings. but the company's earnings growth is no longer keeping pace with the rest of the high-growth techs and it's failed to blow us away with any must-buy product. instead, there are all of these little products that produce a modest amount of excitement but aren't necessarily blowing away the competition as apple used to before an aggressive samsung armed with google's snazzy android operating system started taking them on. now, in the last few weeks, we've seen a love affair with what can only be called old tech. hewlett-packard, for example, has had declining sales for some time, yet up 18% for the year. the stock was up again today. it just kind of lev at a timing.

oracle, which missed the estimate badly has nevertheless rallied, up 8%. microsoft's had a remarkable move on the change in leadership that may or may not change the company. ibm, which lo and behold my charitable trust has been buying has reported multiple weak quarters with the last one being the weakest. but the stock's moved up 20 straight points, now up 3% for the year. that, despite ibm showing a decline in revenues and no one expects that from apple. apple's not going to give a decline. why i mabm? because it represents value. it's so valuable that warren buffett, mr. value is the largest shareholder. meanwhile, apple down 3% for the year despite the superior profile versus every single one of the old tech companies i mentioned. if apple can't be sold as a growth stock, why don't we just repackage it and call it a value play and have it get taken up by

those who keep bidding up value? the secret behind the value push is the economy's supposed to be getting better and the other companies doing so-so could see a dramatic uptick in business if we get an acceleration of global growth. these are companies that have cut back staff or reorganized or become lean enough the argument goes that any increase in sales from worldwide growth will produce tremendous earnings leverage. but apple, it's not clear how much a stronger economy will really help their sales. maybe apple's real problem is it's not perceived as a growth stock and it's not considered a value stock because we think of value in conjunction with an explosion in earnings if the economy gets better. something that really hasn't been true for apple historically. here's the bottom line, apple, it's in limbo. and perhaps that's where it will stay until it shows us it can produce better earnings if the economy improves or it reveals a new product that could move the needle. a stock being in limbo doesn't mean it can hurt you.

but that's not much of a reason to buy a stock, is it? one good thing, if apple does miss earnings, the fall may be cushioned by its potential newfound value status. hey, it worked for ibm and oracle, it can eventually work for apple, too. mark in utah, please, mark? >> caller: hi, jim, big salt lake city boo-yah to ya. >> same. >> caller: i got a question about disney. company's got a lot of upgrades. and they say that -- i read a ton of cash. and that target is like $130. what's your take on it? >> i think $90 -- i'm only looking as far as $81 can go to $90, i actually believe that. why do i think you can go higher? because it's got earnings momentum, 2015 looks really great, 2016 looks great. he's one of my bankable 21 in "get rich carefully." and most important, they are buying up a huge amount of shares on the down days.

there's a recipe for value and apple has got the ingredients. but the company, it's in limbo. final four action is coming up next. [ female announcer ] working together

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attention, get you interested in the stock market, this week in celebration of march madness with the final four coming up this weekend, we're doing our own "mad money" version of the final four. when it comes to money madness, our tournament was the first quarter where the broader averages seesaw but only climbed slightly as the dow, the s&p inched up 1.3%. the idea here is that we want to compare the best-performing stocks from the first quarter to see which one has the best chance of roaring for the rest of the year. here's how it works. we take the two best-performing qualifying stocks from the s&p 500 for the first quarter and tonight we pit them against each other, the winner takes home the title for the s&p conference. then tomorrow, we've got the two qualifying best performers in the nasdaq. friday is the big game. where the winner of the s&p conference and the winner of the nasdaq conference face off against each other. and whichever company prevails is our first quarter champion that we think will do well for

the rest of 2014. so who are our top seeds for tonight's match. the number one performer in the s&p for the first quarter was forest labs. we can't do that. forest is being acquired by activist. that's an automatic disqualification. once a takeover's announced, you get a big spike that caps the upside going forward. just not exactly what we're looking for. the number two performer, though, was neighbors nbr. the onshore driller that rallied 45% for the first quarter. nabors is in. and keurig green mountain disqualified since the gains are all about coca-cola bought a 10% stake back in february. we want stocks that have radical rallied on their own organically and they're more likely to keep rallying. which brings me to our next contender. tyson foods, tsn, the fourth best performer for the first quarter up hefty 31.5%.

and i think harmon deserves a mention as best in show company with terrific stock. that's the auto company and we love that company on-air. they have been fantastic when they've come on "mad money." anyway, this round is nabors versus tyson. which one has the best chance of rallying for the remainder of the year? before we can answer that, we need to deal with an even more fundamental question. how the heck do you even begin to compare an oil driller with a food company? mainly a maker of meat products like chicken. well, you've got to learn how to do this, people, so i'm teaching tonight. you start by comparing the sector. remember, as i told you before, sometimes 50% of a stock performance comes from the sector it belongs to. nabors has gone from being a land drilling business focused on north america to a global player with onshore and offshore operations in most of the world's major oil and gas markets. that said, nabors has been a laggard within drilling space because of a number of execution

issues. but thanks in large part to the found unconventional oil plays in north america, the ones we always talk about as well as the continued relatively high price of oil, we're seeing an acceleration in worldwide drilling activity. particularly onshore in the u.s. so the drillers have a rising tide that benefits everyone. in short, to switch metaphors, nabors is a not so great house. but in a rapidly improving neighborhood. >> house of pleasure. >> tyson foods, on the other hand, kind of the exact opposite really. tyson is a consistent meat packing position, nice packaged foods. number one integrated beef and chicken player in the united states as well as the number two pork passing firm. of course, the most important division here clocking in at 45% of tyson sales is chicken. because the original white meat is now the fastest growing protein out there and that's courtesy of consumer demand for healthier food.

however, as well run as tyson is, this whole meat packing industry is really volatile. it's hostage to the cost of animal feed and the price they can get for the meat. both of which can swing pretty wildly. just such a strong performer. everything worked great this quarter. that makes tyson the best house in a neighborhood that, frankly, is not particularly attractive. and when you start to drill down into the specifics here, it becomes pretty clear that nabors is the better bet for 2014. when the drilling business was not so hot, nabors was the worst of the bunch. but now that we're seeing improvement around the globe, this company has the most leverage to that improvement. basically benefitting from a two-prong cyclical -- excuse me, cyclical upswing on the domestic land drilling side, that's 55% of the business. the industry's currently fully booked when it comes to high-spec rigs. meanwhile, there's so much demand that the oil and gas exploration and production companies also known as enp

companies are willing to step down and nabors has the most of those. sometimes when you're not doing that well is when you do the best in your stock business. at the same time, we're seeing real optimism when it comes to international onshore drilling, that's about 25% of nabors' business. with strength growing in the middle east and latin america. look, at the end of the day, there's so much oil out there, especially in the united states, but there's a fixed quantity of rigs for drilling oil and takes time for the industry to build new ones. right now, supply is getting tighter, and that's a trend i see continuing, which is very good news for nbr. the stock has been playing catch-up to the rest of the drillers and i bet it keeps doing so as this is one of those cyclical companies that could be looking at tremendous growth for the rest of 2014 now that business is getting better. tyson, though, tyson's a different story. tyson while it is no longer your father's tyson and

decommoditized, it's still exposed to commodities much more than nabors is. this has a lot of moving parts. the business is all about managing margins, how much they make after raising and selling their merchandise. and right now, things may be looking a bit grim on that front. you see, last year, we had a huge decline in the price of corn, tyson's feed and a terrific rise in the price of chicken, what they sell. however, since the beginning of 2014, corn prices have been climbing and it seems increasingly likely that chicken could come under some pressure, which could pressure tyson. granted the company hedges 45% of the grain contracts, that means 55% unhedged. and while tyson's the number one player in the industry, there are smaller guys constantly nipping at their heels, which makes it difficult to pass on higher costs to the consumer. in short, i think nabors, while having a history of poor execution is now on a rapidly-improving business so the estimates probably need to be raised and the stock is not

all that expensive, 14 times next year earnings estimates, average s&p stock sells at 17.3. plus, it's my subjective view that oil's going up in price, or at least staying at the same elevated level and natural gas is not going back under $3. so the backdrop's a good one. tyson's doesn't have the potential year-over-year growth we could see at nabors selling at 13.5 times next year's numbers. for the s&p 500 conference, the two best performing stocks from the first quarter that qualified for the final four are neighbors and tyson, and even though tyson is a very well-run company while neighbors has a history of spotty execution, i'm telling you, nabors, the driller is the winner because it's part of a sector that's improving dramatically. and i believe a rising tide will lift all ships and rigs for that matter. can i go to jordan in ohio?

jordan! >> caller: cramer. >> yo, yo. >> caller: i want to give you a buckeye boo-yah. >> holy cow, man, you know what kind of boo-yah that is. what's up? >> caller: i own mankind mnkd, the stock was up over 70% today. what do i do now? >> it's interesting. people really hated what i did. you know what, i can't opine this, the rest of the day working on it. i have to tell you, pfizer did try to do something they couldn't do -- couldn't be done, which is this inhaled insulin. but this apparent little device is better, smaller, maybe more efficient. but you know what, you've got a really big game. you've got a double, you sell half and let the rest run. i need you to go to eric in new jersey. eric? >> caller: hey, jim, thanks for taking my call. >> no problemo. >> caller: my question is about intuitive surgical who makes the

da vinci robot surgery. >> right. >> caller: and i was interested to know what your thoughts are on the stock now that it just got approval for the new model which caused the stock to shoot up to over 500? >> this has been a heavily shorted stock. people felt they run out of room. my friend herb greenberg who writes the reality check for the street.com was saying to people, listen, there are issues here that have to do with the affordable care spending. do hospitals have enough money? i think that this is a revolutionary device. i see the stock going higher, i see it getting back in favor. i think it can still go higher. but don't be greedy! because the stock is at a high. i think it can probably go up another 10% and then. it's final four "mad money" style, people. first and second seeds, the s&p, nabors versus tyson foods, nbr is the winner. tomorrow we'll see who they face after the naz showdown.

you know what, the final game,.

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and if you switch, you could save up to $423. liberty mutual insurance -- responsibility. what's your policy? it is time -- time for the "lightning round" on cramer's "mad money." rapid-fire calls. say the name of the stock. play until this sound -- and then the "lightning round" is over. are you ready skee-daddy. time for the "lightning round" on cramer's "mad money." keith in hawaii. keith? >> caller: hey, boo-yah, jimmy. >> loving that. what's going on there? >> caller: hey. i'm wondering if i'm on a slippery slope with costco. >> i want you to buy costco, my charitable trust has been buying it. stephanie link and i co-portfolio manager talking about how this is the right level. let's go to jake in michigan.

jake. >> caller: hey, jim, thanks for taking my call. big fan of the show. >> thank you. >> caller: i haven't had a lot of time to read it yet. i might have to wait for the cliff's notes. my question is about six flags, you recommended it this summer. it's kind of starting to go back up. >> six flags is part of the new frugality. this is where people want -- do they want to stay at home, grab a nice vacation, get a 4.6% yield. i want you to buy -- >> buy, buy, buy! >> -- six flags. and costco's part of the new frugality, too. douglas? >> caller: boo-yah, cramer, from fresno, california. >> fresno? >> caller: abx. >> not my favorite gold stock. unlike your quarterback from fresno state whom i really, really like. and i would prefer you to, if you want to own a gold stock to buy gold. eric in wisconsin, eric? >> caller: jimmy, what's going on, man? >> hey. not much.

badgers, i had baylor. wow. go ahead. what's up? >> caller: hey, man, shoutout to badgers in the final four. what are your thoughts on the company long-term? can i hang with the big dogs or sell? >> i would do a little schnitzel, take a little off the table. let's go to obi in virginia. >> caller: boo-yah from virginia. >> nice to have you on the show. >> caller: just want your opinion on -- >> celldex, we never look back, don't look back at a good trade. we're not touching the stock. mark in california, mark? >> caller: jim, boo-yah. >> what's up? >> caller: i'm looking at software company autodesk. >> they had a great quarter, the stock has been doing terribly since then. comes under the category of the high multiple stocks not working. let me counter with autodesk and i'll give you, yes, ibm, one

last quarter and i think it's really in the hole. got to anticipate that. warren buffett agrees with me and, of course, i agree with warren buffett. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade. ♪ ♪ ♪ [ tires screech ] chewley's finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. get the most extensive charting wherever you are with the mobile trader app from td ameritrade.

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we're always on the hunt for long-term themes here on "mad money." places where you can turn the next time the market takes a beating because you know they'll bounce back stronger than ever. and sometimes when we're searching for these themes, we needed to turn to people who aren't exactly the usual suspects when it comes to picking stocks. which brings me to danny myer, the famed restauranter, author of setting the table and expert on hospitality. normally we only like to listen to picks from stock guys. but way back in february of 2009, danny came on the show with a brilliant idea. he said companies that connect with their customers and make them feel comfortable would do better than those that don't. now, at the time danny gave us a list of companies he thought understood the hospitality quotient. now after a couple of

adjustments over the years, danny myer index contains chipotle, whole foods, apple, amazon, american express, nordstrom, ebay, men's warehouse, southwest airlines, mattell, google, bed, bath & beyond, goldman sachs and salesforce.com. we got a chance to check in with danny earlier today at one of his restaurants to see if this thesis still holds water. how did the hospitality index do? we'll tell you after we run the tape. take a look. >> danny, we care tremendously about success. and i know you know success, this is the 20th anniversary of grand mercy. what have you learned that defined success for you. >> first thing i learned about success, jim, is don't believe in it. you've got to go in and do better because there's always someone out there that wants to eat your lunch.

so what we try to do is become the company that if only it existed would put us out of business. >> okay. if you had to start over, would you do it the same way? >> i would never ever do anything different. >> really? this is it? >> i think it's really critical to learn from your mistakes, and we make a ton of them every day. they're the greatest renewable resource on earth, mistakes. but you know what? ten years between opening union square cafe, restaurant number one and gramercy tavern, restaurant number two, i wouldn't do it differently. we learned our community, learned what it meant to run an employee first business and really learn to take care of people and understand what hospitality meant. >> is hospitality across all of the different danny meyer enterprises? >> it better be. whether we're serving barbecue or burgers, the way you feel when you leave here better be a little bit better than how you felt when you first got here. >> well, when i started going to

danny meyer, i can't expect to see danny there or the different places you are now. >> and i want to tell you, a mark of my leadership would be that you shouldn't care. i think that the people who take care of you at any of our places do a better job at whatever their job is than i possibly could. >> has technology made it so there can be more than one danny meyer? >> technology is a huge player in all businesses, but in the hospitality business, it's given us a chance to virtually be in more places than one. we use open table, obviously, in all of our restaurants. >> and you're very -- >> i'm a board member at open table. just want to make sure everybody understands that. but what open table does is gives us a chance to know who's dining in all of our restaurants. it gives us a chance to remember in case we forgot. same way people use google all the time. where you like to sit, what your favorite dish is, who your favorite waiter or waitress is, what your favorite wine is. and in a certain sense that's what i did for ten years on the front door of union square cafe. and now i can do that from my

iphone wherever in the world i happen to be sitting. >> there's a lot of new technology in the restaurant business. i have a restaurant these days and i know there's bread crumb -- >> are you competing with me now? >> oh, yeah, definitely, one to one. there's also a new app where if you have an empty table, people can bid lower and say, listen, we'll pay 80% of a bill for that table. is that something i'm ever going to see at a danny meyer place? >> i don't think so. we've always been about trying to add value rather than trying to give you a discount. and i understand that there's lots of restaurants that bid for your business by giving you the same for less. we want to give you more every time. >> one of the reasons why i wanted to get to that point is that you developed an index of companies that you said give you more for less. treat you hospitably. it's been remarkable. >> here's the hallmark of all of the restaurants, they are companies that are led by a

culture. they're companies that want to make more money than any other company, but they do that not by putting the interests of their shareholders first, but by putting the interest first of the people who work there, then the people who do business there, then the communities in which they do business and then their suppliers. and they realize that virtvirtu creates a profitable model. >> you say the employee first, the person who works with you first. >> absolutely. we're in a day in age where human beings have been tribal creatures. we used to segment ourselves based on religion or politics. today, it's where do i work? people work for companies that say something about who they are. and the -- we're obviously not big, big manufacturers the way we used to be. so our capital is human capital, and how we make people feel and who we put on our team, same in sports, same in restaurants, same in financial companies, works every time. >> but you have been -- you've

written a fantastic book i've called the best business book of our time. you have also been very open in your philosophy. why have more companies not -- not adopted your view since it obviously produces superior results even in the stock market. >> i have absolutely no idea. i'm happy in the restaurant business that more don't do it because it makes our lives easi easier. but at the end of the day, i think there are people who really are so greedy that they think the way you make the most money is to first think about the investor. that's what adam smith said. i think the best way to think about the investor, the best way to be selfish for the investor is to think first about the people who work on your team. because the guest experience, the customer experience will never ever rise to a higher level than the employee experience ever. >> danny, right now, there is a big restaurant chain many of us are familiar with, darden, olive

garden, red lobster. they're actually under attack from shareholders who feel they're not doing enough for shareholders. what do you do if you're under attack from shareholders for declining comparable store sales? is it a change in the way you handle employees? or are some methods of restauranteuring old-fashioned? >> i've got confidence we'll figure this out. however, i think a lot of restaurants play in what's been a tough segment these days. the casual restaurant segment has been squeezed. it's been squeezed by the economy. it's been squeezed by fast casual, which has found a way to deliver really good food at much lower prices. and now it's even being squeezed in some senses by what we call fine casual, which is the segment that shake shack plays in. >> right. >> but i think they're going to figure this out. >> i want to thank danny meyer, as always, danny, thank you for

your lessons, for your wisdom. >> thanks, jim. >> okay. so are you curious about the performance of the danny meyer hospitality index yet? you should be. take a look at how well these stocks have performed. now, meyer is an excellent businessman, but he's not wall street insider or hedge fund manager. all he did was figure out what each of these companies was doing right. the same thing i preach every day here on the show. finding long-term themes to invest in. since its creation in february 2009, the hospitality index has given you a whopping 375% gain crushing the s&p 500 which is up 129% over the same period. looks like danny's thesis was dead right. and there's no reason you can't do the same thing, too. stick with cramer.

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out there in the world, so we do everything we can to be there for them when they need us. plus, you could save hundreds when you switch, up to $423. call... today. liberty mutual insurance -- responsibility. what's your policy? i have an announcement. i slept in this morning until 6:00 a.m. and i'm going to take a nice relaxing vacation to tahiti tomorrow because i think i deserve some down time. april 2nd fool's. you know i would never sleep until 6:00. i was up at 3:45 and i'm not going to be away any time -- forget the beach. really, i'm going to be here tomorrow focused on making you money. and what's the best way for you to protect the money? of course, it's diversification. let's get right to this very

special april fool's edition of "am i diversified" with a tweet from @melusaco who asks coca-cola, charles rivers labs, american tower, disney and phillip morris, am i diversified? is it good portfolio? let's go. all right. coca-cola under attack from activists. beverage, entertainment, disney, telco, american tower, charles river, health care, we've seen the company a number of times and phillip morris international tobacco. should that be too much with coca-cola? yes. we're going to get rid of phillip morris, we're going to add an industrial. let's add -- honeywell! because we like honeywell. and that will do it. now, let's go to ron in maryland. ron? >> caller: hey, jim, love your

show. >> thank you. >> caller: i like to say a big boo-yah from the people of oakland, maryland. >> i'm liking that. sounds like a raven fan, too, by the way. what's up? >> caller: i need for you to tell me whether i'm diversified or am i just a -- >> i've got it under control. let's hear them. >> caller: kmp, wll, uri, susquehanna bank shares and intel. >> all right. intel upgraded tonight by piper jaffray. good bank, united rentals, the equipment rental company, terrific, semiconductor company, whiting, that's a bakken name and, kinder morgan. we're going to keep kinder because we like the dividend, although it's been under a lot of pressure. and we're going to get rid of

whiting, we'll talk about a portfolio that needs, indeed -- you thought i was going to say bristol-myers, i'm putting in cellgene. ♪ hallelujah let's go to howard in california. howard? >> caller: hello, mr. cramer! let me give you a big boo-yah from central california. i would like to know if i'm diversified. isys pharmaceutical, technology, tibco technologies, key corporation and facebook. >> all right. this is going to be very, very tough. key corp., the charitable trust likes it, facebook, same, undervalued on 2016 numbers. here's the problem, tibco, that's tech, i think this portfolio could use a honeywell, an industrial, and it could use a financial. and that's why -- oh, no, key corp., it could use a -- you know what, i want to recommend here, i think we should give it

a tech. a -- i want to do a defense stock. itching to give it away. lockheed martin. there, i said it. please come on, lockheed, martin. and that, ladies and gentlemen is the conclusion of "am i diversified." diversified." ♪

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i like to say there's always a bull market somewhere and i promise to find it for you here on "mad money." i'm jim cramer, and i'll see you tomorrow. "american greed"... maurice michael mccant is a convicted bank robber who claims he's gone legit. >> mccant carried himself as somebody who was legitimate. he had the swagger of a rap promoter. >> narrator: mccant offers 30% returns on investments in his rap-concert-promotion business... >> he actually said to them, "you can stop the bleeding that you're suffering in the market if you invest with me." >> narrator: ...and investors are forking over their entire nest eggs. >> i liquidated my i.r.a., and it was to the tune of a million dollars. >> narrator: and later... mark anderson holds millions of dollars' worth of fine wine in trust for clients... until greed gets the best of him. >> he didn't make the coec