Finest mountainclimbing attire i can get my hand on because i now believe that we may very well go over the fiscal cliff come january and i want to be ready to climb back out with the right stock after it happens. You cant come from a given day like today, dow 107 points, hey, happy days are here again, right . This is a day where my equipment felt a little felt a little superfluous because we had all sorts of happy talk for a bunch of people in washington about how compromise was within reach. However, i think its been increasingly apparent that we actually may not get a deal in time for the january deadline. Something Warren Buffett pointed out. Who am i to disagree. You dont need to change your philosophy just because we cliffed you. Long term it might not matter. Not all of you share his sanguine multiyear view of stocks. Not one of you shares a bank account close to the size of the man that created billions of dollars of wealth. He can afford to take the long view. If we take the plunge over the two million jobs. Makes everyone pay more in taxes. I dont really want to have this gear. The president said today he thought a deal could be done by christmas. The speaker of the house said hes optimistic a compromise could be reached. I wear this pin every night in in part because i genuinely believe it is not a lost cause. Tonight Business Leaders in washington are urging a deal. People who are not really known as pals of the president. The president also bringing his pressure to bear on small regular people, regular folks. Now we use the word folks all the time and im old enough to remember when it meant my parents. Hes turned to twitter to talk about the evil consequences of cliff jumping. Let me tell you, why all this talk may end up being nothing but big hat and no cattle. Small business people, twitter followers. They dont follow this. Congress does. What were seeing now is something which was supposed to be totally draconian, increases in old tax rates, coupled with automatic cuts in spending may not be unpalatable to change the minds of intransit politician. Are you on this side of the aisle . Thats because right now that the very moment many of those politicians believe rising above politics is political suicide, that compromises the real and dreaded ep my dreaded enemy, a sin even. And this pin . Right here, this rise above, this is the very devil when it comes to their career. You know, what i get this. Come on, im cynical, i get it. If you believe an entitlement should never, ever be cut and should be expanded upon, you might favor sending us over the cliff on principle. If you believe that taxes should never be raised, you might be tempted to send us over the cliff on principle. If you believe your house is going to be jeopardized you know what they say above you . You rise above. They say youre a hypocrite. Lets go one step further. Potential loss of jobs, higher mandated taxes, defense budget, small price to pay for standing on principle, rising above, its a betrayal. For a huge number of these people. If youre a republican, hell bent on never raising taxes, go over the cliff and then give into the president but you can also say you cut taxes. Remember that . Its a winwin to go over the clip. Life can. Then you dont break the grover pledge which is why its time to prepare for the failure of december talks. Maybe we need the hardships main street middle class to become so clear that a compromise that abandons cherished principles may be the only way to avoid a recession, which would give other candidates a chance to rise up and take your seat in congress. Hence why im not back with the 10 solution, a solution like how the dreaded tarp got through congress, socalled bank bailout. After the stock market dropped 10 perz after t. A. R. P. Was first rejected. And congress people, conconstituent went who own stock, people who can afford to contribute to campaigns, we better do some compromising. That could happen again if we dont get a deal by year end. It comes down to the final weeks of the year when its clear we dont have a deal, some will sell their stock economically might save a ton taxes versus the 2013 tax code. Were glued each week to the jobless claims and they come out at 8 30 and right now they arent going up or down and thats because business is frozen. If youre thinking about creating a business, you want to know if you sell it you get a good Capital Gains rate. If youre a ceo, you saw the recession going over the fiscal cliff caused you dont want to be hiring. You might have to be firing in january. If we miss the deadline the market will get pounded every thursday as the claims spike because of mandated layoffs particularly in a military industrial complex. People will lose that right in 2013. And thousands of other companies are slimming down because, hey, we failed to rise above. When that happens, believe me, youll want every bit of this mountain gear. Youll want the ice ax. Man, we got to use this. This will no longer just be a key chain because if were cl m climbing out of the cliff you need to be the first there and with the best stocks. I envision all segments of the market getting pummeled but the ones that come back first are the ones that sold down first. So the best could be the worst. To me that means i want to climb out of the cliff using a stock like home depot. Im going to climb out there to get this, yeah, home depot. Thats one im going to get because sorry about that. Because its up 54 for the year. The most visible winner in the Dow Jones Industrial average. You my have to buy that stock as the first week of january. We run into the thickest, i would considinto sher win willi. And i think the housing boom will not be hurt in reality nearly as much as it might be in theory. At the same time, i suspect well get another whackdown in them highyielders because the 2013 tax code more than doubles it. Here ill climb out with the ice ax from verizon. I want to be there with my ropes, make them so i can secure myself. And get them right back in look. Heres the bottom line. I dont us to go over the fiscal i dont want im a 46 in the adirondacks. You can look it up. Anyway, i dont want us to go over the fiscal cliff but the losses of the cliffs wont impact until after the jobless markets slides and you need to be ready to scamper from the abyss with this kind of outfit and preferably not in these pants because they dont work well. The cliff is going to close soon after that and youll be up there with your home depots and your verizons and your at ts. You should be protected. Why not be profitable on the other side of the valley . Lets go to robbie in michigan. Caller booyah go blue. Man, absolutely. Whats going on . Caller i got a question about Green Mountain coffee roaster. Let me talk Herb Greenberg off the Green Mountain cliff, whats up . Caller the huge 27 whopping rates today im wondering if its time to take my money and run or more to come from the coffee guru. I think tomorrow there will be a little Short Covering and people were shocked because it should have been an adjoining five but i dont know if it should be a 40. Walt in new hampshire. Caller hey, jim had been how you doing . Couldnt be better. Caller booyah from concord, new hampshire. The monitor offer med a job in 1977. I almost took it, whats up . Caller i wanted to know your feeling about whirlpool. It keeps on climbing. Housing is doing well. Should i hang on or ring the register. No, i dont want you to sell. It should not be sold. Its been a lagger for many years. I owned it in the 50s in my law school dorm. Heres patrick in wisconsin. Caller hi, jim, booyah. By yeah. Caller given the recent divergence of price of gold going up and the mining stocks staying level or going down, would it be wise to hang on to my investments in the goldmining stocks in hopes that they catch up with the price of gold . Or should i just sell them off and put the money into gld or Something Like that . I think you should sell them off over time and not all once the. I think theyre going higher and today was a temporary setback because of all the happy talk in washington. Im going to pat in illinois. Pat . Hey, jim. How are you . Not bad, how about you. Caller doing well, thank you. Jim, i have a question for you, gow cory, i voted for 14. 5 years and been accumulating it for those 14 and a half years and its been a dog from the day i bought it. It popped on monday. Ceo said that the tv manufacturers are buying their glass like crazy. Jim should i sell it . No, did not sell now. Think about that, 14 and a half years. It wasnt, wow. You remember i had did run from 1998 to 2000. Your judgment is off by 2 1 2 years but its been a real bow wow. Let it go to 15 and get rid of it. Thank on, thats what we heard from the president or the market. Maybe, but you know what . We have to get the gear ready. We have to be ready with the climbing equipment to be the first people out of the cliff, wow am i ever ready for this baby. Mad mon mad money will be right back. One stock surges over 15 in the past month while the market has been flat. Could it still be positioned to profit . Or did you miss the move . Cramers navigating through the facts to find out next. And later, grocery gauntlet . An allout bout for supermarket supremacy and tonight, cramer thinks one of these stocks belongs in your cart while the others could be spoiled. Get ready to go shopping. Just ahead. All coming up on mad money. Dont miss a second of mad money follow jim cramer on twitter. Have a question . Tweet kranler mad tweets. Sent jim an email at cnbc. Com or give us a call. Miss something . Head to mad money dot cnbc. Com. This is america. We dont let frequent heartburn come between us and what we love. So if youre one of them people who gets heartburn and then treats day after day. Block the acid with prilosec otc and dont get heartburn in the first place [ male announcer ] one pill each morning. 24 hours. Zero heartburn. Can i still ship a gift in time for christmas . Yeah, sure you can. Great. Wheres your gift . Uh. Whew. [ male announcer ] break from the holiday stress. Ship Fedex Express by december 22nd for christmas delivery. Oh, just diagramminghey mike. This accident are you up to . By december 22nd with my state farm pocket agent app. You can also get a quote and pay your premium with this thing. I thought state farm didnt have all those apps . Where did you hear that . The internet. And you believed it . Yeah. They cant put anything on the internet that isnt true. Where did you hear that . [ both ] the internet. Oh look. Here comes my date. I met him on the internet. Hes a french model. Uh, bonjour. [ male announcer ] state farm. More mobile than ever. Get to a better state. [ male announcer ] they are a glowing example of what it means to be the best. And at this special time of year, they shine even brighter. Come to the winter event and get the mercedesbenz youve always wished for, now for an exceptional price. [ santa ] ho, ho, ho, ho [ male announcer ] lease a 2013 glk350 for 399 a month at your local mercedesbenz dealer. Yoo every now and then a stock does something that makes you scratch your head and you wonder, what the heck is going on. Whenever we are see one of these moves eds my job to explain to you why its happening. Consider the incredible transformation of trimmable navigation. Trmb, a Global Positioning company that many thought had been left for dead because these days gold position systems are ubiquitous and offer few ways to differentiate themselves. Yet today. Tremble is less than a point off its high. In fact, the stock is up 18 just in the last 30 days. And a phenomenal 38 in the last 12 months. House of pleasure. How is this making such an incredible lazaruslike return from the dead . A couple of different elements here. Pretty instructive. The most important one is even though people think of us as a Global Positioning play thats no longer the case. Its m they have positioning sensors and then moved into to connect activity which allowed them to move information from field sites to the back office to the field office and from one field site to another and then they moved into the business of modeling building a number of modeling applications and then starts doing analytics and the data they collect and proprietariry software to help businesses make Better Business decision. In short sb tremble is a Global Positioning company that got smart and theyve been become a terrific secular growth story. Even when the economy is not doing so hot and the underlying economy is not doing so hot. It helps their customers become more efficient. Though use this proprietary technology and collect data from satellites, laser, and other met methods and they have applications for Pacific Software designed to tell their customers what they need to do to improve the efficiency of their workers out in the field. Especially at construction sites and infrastructure builds and they work along many dimensions. They can cut labor costs, pesticide costs, or fuel costs. They can help them imcustomer service. At the end of the day it comes down to other Companies Finding new ways to squeeze more money out of their businesses and thats the kind of pitch that never goes out of style. Certainly not one the old tremble could have offered. Ill give you an idea. Tremble has joibt technology with anything from Software Solutions and machine control technologies. This gives the company a tremendous Outsource International sales force. It looks likes tremble has become the real deal. They recently had a conference for the users. Not some gigantic hoopla sales force. Com dream shindig. More than 3500 people showed up from more than 80 countries. The reasons so many people showed up is because they offer such a compelling value proposition. The tangible return was less than a year meaning if you pony up for their data, the services will likely have paid for itself in less than 12 months. Now wonder theyre within striking distance. Thanks to this transformation theyve become a general secular growth stock and the company has been executing fabulously in this current lousy environment and the latest quarter, incredibly strong. Blucerchiati, off the 62 cents faces and better than expected revenues. How many of those have you had . And all this is happening despite the fact trimmable gets half of its revenues from overseas. They have serious european exposure. It doesnt seem to be hurting. The forecast is for the country to grow up 15 to 17 over the next five years. I dont know Many Companies like that. The vast majority of that is coming from organic growth and those are terrific numbers but they are not pie in the sky numbers. This gives them a competitive edge. When you have Something Like that you can take market share left and right or raise prices dramatically, either way, you can krish the estimates. The number of analysts that covered him think the Companys Technology is necessary for their customers survival. Only a couple players you can say that about. Sales force. Com, apple. Market for their measurement and equipment is very underpenetrated especially in europe with 22 penetration and asia with 12 penetration. Sales force. Com had good numbers because theyre findly penetrating and theres a lot of room to expand. And theyre introducing new software modules. They are growing very rapidly. Soon they can do upgrades and they can drive the company a margins much higher but that could take quite a while. Even at their latest run its still fairly inexpensive. Less than the companys 18. 3 longterm growth rate. One more reason why they can go even higher. I wasnt thinking when i was looking at this, i cant believe ibm or oracle hasnt snapped them up. If the stock sits here it will happen. Takeover talks are been driving the last leg of the stock because it so miraculous. Dont be surprised. This isnt a what the heck . In is no longer a has been Global Positioning company. Its a data productivity automation powerhouse and i think the trimmable rally is far from over. After the break ill try to make you more money. Coming up, grocery gauntlet . An allout battle. Tonight, cramer thinks one of these stocks belongs in your cart while the others could be spoiled. Get ready to go shopping. Just ahead. Ally bank. Why they have a raise your rate cd. Tonight our guest, thomas sargent. Nobel laureate in economics, and one of the most cited economists in the world. Professor sargent, can you tell me what cd rates will be in two years . No. If he cant, no one can. Thats why ally has a raise your rate cd. Ally bank. Your money needs an ally. Try running four. Ning a restaurant is hard, fortunately weve got ink. It gives us 5x the rewards on our internet, phone charges and cable, plus at Office Supply stores. Rewards we put right back into our business. This is the only thing weve ever wanted to do and ink helps us do it. Make your mark with ink from chase. N you take a closer look. At the best schools in the world. You see they all have something very interesting in common. They have teachers. With a deeper knowledge of their subjects. As a result, their students achieve at a higher level. Lets develop more stars in education. Lets invest in our teachers. So they can inspire our students. Lets solve this. . Matter what the circumstances, with the sole exception of whole foods which is practically in another category all by itself. Given that its the place where people go to buy expensive food that as the companys natural and organic seal of approval. But the rates of them have been just the definitive house of pain. These companies have raised their margins and facing cutthroat competition. Vote and if Big Box Store like walmart and costco and the drugstores like cvs and walgreens. And the dollar stores. Holy cow. Its a tough, miserable business. However, even in an incredibly difficult sector you get some true differentiation. Some companies will execute better than others. And their stocks outperform the rest of the group. In the supermarket space the one company thats bucked the overall trend has been kroger. While supervalue has cratered down 64 for the year and safeway has been hammered down 19 , kroger has managed to keep its head above the water, up 43 , not particularly good but relative to others but relative to the other supermarkets krogers performance has been downright incredible and we call that hot absolute performance but supreme. Thats why we want to figure out whats if secret here . Whats the secret to krogers success . The Company Reports tomorrow morning so we did this many preparation. I think well get cluesing that tell us whats happening and what to look for as we head into the quarter so you can find out if you really want to buy it when the numbers come out. The main question is, why hadnt kroger been crushed if the rest of them have. And look, even that, fresh market got crushed today ppd this is not a company like whole foods with the beloved high end and super fast quote. A regular old Supermarket Chain across 31 states. Last night we got some insight into why krogers that avoided to going into the valley of the shadow of death. Last night we talked to gary rock and hes the ceo of con agra and we talked about raw corp, the king of private label foods, especially syrup. Meaning the knockoff generic products that sell for much less than the nationally branded stuff. He noted that the economy is currently very bifurcated. No matter what economic strait they might be in are trying to save on the basics. Tons of folks are trying to figure out how to get the most for their money and thats kwha whied cthats why they wanted t by role corp explains why kroger has outperformed the supermarkets. Which is just about every consumer these days. And they do it by managing pricing. So how much better has krogers execution been . Consider these numbers. Krogers been the only Traditional Grocery store operator to consistently jep rate returns above its cost of capital at its most recent back in october the Company Raised its longterm earnings quote forecast and they raised it substantially. While supervalue saw samestore sales decline, safeways were down. 01 . Now, kroger actually posted an impressive 3. 6 increase. Relative. Krogers margins have been increasing. And krogers been taking share aggressively. Over the last several months their volume is 300 to 50 0e basis points ahead of the industry average with hints of acceleration since mid august. Theyre not in the same weight class which is whole foods which is the best story. Its not really a super charged growth stock at all but within the troubled supermarket business this company is in a league of its own. How has kroger been age to do so much better . Like i said before a lot comes down to their ability to control pricing. About a decade ago kroger made a smart decision to cut prices aggressively in order to ward off competition like costco and and oh kroger has done a terrific job of cutting prices at the right time in order to retain customers. They acted early and fast and thats why the company said for the first time theyve become more comfortable with their Competitive Position and feel less urmg si urgency to cut pri. Kroger understood the name of the game is market share, better than supervalue. Now the company has to change course because they cant take if pain of people paying less. What else explains krogers ability to rise above the herd . In part, a question of scale. But even though theyre larger than safeway or supervalve theyre opening more stus. Safeway, they dont have the Balance Sheets to perform aggressively. Even if they could it wouldnt make sense to open new ones. Lets open some more bad stores that dont do well. Kroger also sells gas at nearly half of its supermarket and company uses and thats been a very smart model for them and cost okay. And then prief value label and ill drill down on this. The reason why they brought raw corp, thats krogers trait. We know the private label products carry substantially higher Gross Margins from the nationally branded ealternative. Kroger has the highest,bility 25 . Big step up from supervalue is 20 . But kroger produces more than 40 of its own private label products so therefore, they make a ton of money on kroger itself. Now, its too late to buy kroger ahead of the quarter unless you do it after hows and i refuse to counterthat as buying but we got great insight last time and i tried to transfer that into this piece as to why kroger is doing so much better and i bet that story continues when we see the quarterly results. Heres the bottom line, if you need any more evidence that execution matters, the supermarket business is incredibly tough by while their kpe tors have been hammered kroger has thrived, thanks to excellent management showing you can transcend a lousy industry if the people in charge can make the right calls. Joey in florida. Caller booyah, jim. Booyah, joey. Caller you think it could be a large percentage of Companies Like annies . Id rather go with haynes. They slammed him the other day. I saw irwin simon on fast money and i thought he told god good stories. Best of breed is haynes celestial. Or mond in connecticut. Caller how are you. Want to look at the fresh market earnings. The stock got hammered. I was wondering if its over with or stay away from the stock completely . What do we got to be in the secondbest . I like this, nice looking stores. Dont get me wrong. If nice looking stores all that mattered id be a bye byebyer. But we got whole foods and unbelievable players who run whole foods. Why do we have to figure out to play whole foods fresh market . The way to play whole foods is whole foods. Lets go to janet in the home state of new jersey. Jim, booyah to you. Im learning so much from you and your show. How i can help . Caller i was watching your show yesterday about private label goods and i just want to know, could private label grow or hurt or help kimberlyclark . Thats the opponent. If you go and sit down with the jim seven gal hell tell you with where they can crush is in paper towels. Thats their number one seller. Kirkland brand. And may i also admit if you came to my closet, youd see nothing but kirkland. Loss in the supermarket no longer. The grocery gauntlet has a winner and its kroger. Not safeway and supervalue. Kroger looks good. Stay away from the other guys. Dont move, lightning round is next. Bp has paid over twentythreebp billion dollarsnt to the gulf. To help those affected and to cover cleanup costs. Today, the beaches and gulf are open, and many areas are reporting their best tourism seasons in years. And bps also committed to america. We support nearly 250,000 jobs and invest more here than anywhere else. Were working to fuel america for generations to come. Our commitment has never been stronger. It is time, it is time for the lightning round whats that all about . I tell you to sell, i tell you to buy, buy, buy. And then the lightning round is over. Are you ready skeedaddy . Jeff in virginia. Jeff caller my stock is hillenbrand. I do not have a fresh take on it. I promise to do my homework on it. Lets go to brent in alaska. How are you . Caller fine. Its kraemer. Do you have a stock . Caller clne, its not doing well. No major representative in washington seems to want to do anything as having natural gas a regular fuel for service vehicles. Therefore its just a speculation. John in florida. Caller jim, big booya to you from lake ashland, florida. Man are you lucky throb. Its so miserable here. Whats up . Caller baidu. No, no, i cant own individual. A loss there represents a value. John in florida. Caller hi, jim. I just want to mention i dont know if anyone ever told you but you remember billy joel, not lennon like you showed that portrait last week. Billy joel was quite a hero in the concert for sandy. He looked great and he sounded great. If i dont like billy joel, im done. Caller whats your opinion on plcn, polycom . We dont want to be in anything i regard as video and voice because youll be competing against the giant that is cisco glen in illinois, please. Again . Caller id like to thank you on your excellent insight into jobs in general. My stock has been up at past eight trading days and i was wondering if this was any case the stocks were to pop. Cldx is the prop. Dont know why its up. Got to come back. Sorry. Could be a could good expectation. All my florida calls are so what do you got . You got this guy mr. Social meaning he knows how to use social media better than anyone ive ever seen. Stephanie lake, we were talking, i said this is right now one of my absolute favorite stocks between now and when this deal closes, underrated, so smart, it will do 14, what he has done for coffee lets go to john in colorado. Hi, jim. Id like to give a big booya. We got another call about one of these deals. These oil trusts. When they rally you got to scale out. This group has become the public enemy number one of the shrz. They dont want to own them and i dont want to fight the shareholders about it. My stock was at 55 and pulled back to 52 and i hedged in down to about 48 and change and have i made a good play . The stock is red hat. Whitehurst is doing a great job and business is good. Im not going to tell you to stay away. Ill tell you to step up and buy more. I think red hat is a winner and not a loser. And that, ladies and gentlemen, is the conclusion of the light nierng round. The lightning round. Coming up, how do your stocks stack up in this mystifying market . Cramer makes sure your portfolio makes the get on am i diversified . And then treats day after day. Block the acid with prilosec otc and dont get heartburn in the first place [ male announcer ] one pill each morning. 24 hours. Zero heartburn. [ male announcer ] this is karen and jeremiah. They dont know it yet, but theyre gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, theyll find some retirement people who are paid on salary, not commission. Theyll get straightforward guidance and be able to focus on other things, like each other, which isnt rocket science. Its just common sense. From td ameritrade. You can stay in and like something. [ car alarm deactivates ]. Or you can get out there with your family and actually like something. The lexus december to remember sales event is on, offering some of our best values of the year. This is the pursuit of perfection. Ois bigger than we think. Sometimelike the flu. Fer from with aches, fever and chills the flus a really big deal. So why treat it like its a little cold . Theres something that works differently than overthecounter remedies. Prescription tamiflu attacks the flu virus at its source. So dont wait. Call your doctor right away. Tamiflu is prescription medicine for treating the flu in adults and children one year and older whose flu symptoms started within the last two days. Before taking tamiflu tell your doctor if youre pregnant, nursing. Have Serious Health conditions, or take other medicines. If you develop an allergic reaction, a severe rash, or signs of unusual behavior, stop taking tamiflu and call your doctor immediately. Children and adolescents in particular may be at an increased risk of seizures, confusion or abnormal behavior. The most common side effects are mild to moderate nausea and vomiting. The flu comes on fast, so ask your doctor about tamiflu. Prescription for flu. [ male announcer ] starts with arthritis paing day setand a choice. Ews take tylenol or take aleve, the 1 recommended pain reliever by orthopedic doctors. Just two aleve can keep pain away all day. Back to the news. That makes tv even better. If your tv were a prom queen, zeebox would be a stretch limo. Just like a limo helps make a prom queens night special, zeebox turns watching tv into a party with friends by letting you connect, share and chat about all your favorite shows. Download zeebox free, and have the night of your life with your tv. This market is a chaotic place. I doubt things will change much over the next few weeks. Now is the time to prepare for the worst. Hope for the best but prepare for the worst. If your portfolio is diversified and you understand how to execute you should be able to protect yourself and go right through the deliver to the other side and thats why we play am i diversified . Where you call or tweet me and tell me your Top Five Holdings and i tell you if youre diversified enough. Well start with henry miller, 100, lets see what he says. He says mad tweets am i diversified, bp, pepsi, pepsico, apple and nova scotia and a win we know that win is win stream, and lets see. Theres that 24 music lets go to work. Bns nova scotia, pepsico, fine job, great yield. Win stream im worried about the yield there. A lot of bad notes in the abc day. Bp as an oil company im worried. 100 others that are better and then theres apple. I got technology stock, a get an oil, packaged goods and a bank. Great for diverse occasion but the twaeblt choices leave a little to be desired. Why dont we go to robert, from my home state of pennsylvania. Caller booyah to you, jim. Back to you, whats up . Caller chesapeake, exc, nokia, nlk, ford, and sprint s. Okay. Chesapeake, down on its luck right now at a utica shale, not as good as people were betting on but i told you if it goes higher. Sprint doing a remarkable job. Congratulations dan on notre dames season. Ford auto company, were hoping that they are able to cut the losses in europe. Exlon, and nokia, and tetelco a want some technology throw in apple. Its down. Auto, utility, tech, and energy. Here we go. Lets do another. Curt in virginia. Curt . A big booyah hoo yah to you. Tough losses by the steelers and eagles. With all the injuries we should form the steegles. We chased babin having good luck. Whats going on . My stocks are Bristol Meyer squib, easy chip, starbucks and westport, im diversified . Let me get this straight. Okay. Starbucks, we think the world of Howard Schultz and that team. Westport, oh, boy, technology . Truck play for nay and Bristol Myers and easy chip, a technology play and an Oil Technology play. Downgraded i think mistakenly by morgan stanley. An oil, lets go restaurant, and a technology play on natural gas. Drug and semiconductor. And thats hey nice apartment andly bless it and now we need to go to donna in texas. Donna . Good booyah to you, mr. Cramer. Currently i hold about 16 stocks and i need help diversifying. Because youre being in a virtual mutual fund. Pretty much. My stocks are bank of america, bac, American International group, aig, conoco phillips, cop. Kkr financial, kfn. And Western Union, wu. All right. Well get rid of Western Union like tomorrow. Now you only have 15 to deal with. That one is no good. Western uniyun online on. C conco, nice yield. Kkr, a private equity company. You may have too much of a concentration in financials so what we want to do is get rid of bank of america. Put in Bristol Myers and keep in the travel trust and youre leaving Western Union entirely and lets add apple for that, too. You dont have enough technology and that, ladies and gentlemen, is the conclusion of am i diversified . Back after the break. car horn paying with your smartphone instead of cash. phone rings thats a step forward. With chase quickpay, you can send money directly to anyones checking account. I guess hes a kicker. Again, again oh, no you dont take a step forward and chase what matters. Some decisions, some transactions say more about the u. S. Economy than all the other reports throughout. Labor, commerce, maybe more than all of them combined. The to booir roll corp for 5 billion is one of those decisions. A lot of different has how old brands over time and take advantage of a good supply chain for soup marke supermarkets, hebrew national, slim jim, swiss miss, brands that were in your moms cabinets and brands in your kids cabinets. Something happened to big National Brands in the great recession. Many of them lost their cache. In part because they took prices up year of year after year. Why . To please their stockholders and they havent made as much money selling them like they used to taking up a lot of space. Not good business. The endless jaeking up of prices and more Profit Margins for the stores that sell them. You feel pinched and the supermarket feels priced out, enter private label. At one point they came in black and white cannes and the sup supermarkets tried to adopt this. They want to say, look at me, look at me, im cheaper than the other stuff. Instead it had another connotation. It it was like loob at me, im out of work and then you take it home and they say it doesnt taste the same. And then we get evolution. The Shopping Club thing emerged, costco being the example. And the company has been at the vanguard for provides private label brands no longer questions to being named with the big name product. Im surely judging how few people balked at paying higher club member prices their brand may be considered superior to the big brand of products and the more lucrative the store itself because the Gross Margins for private label are gigantic versus the heavily advertised products and the recognition if the storebought product looked more like it, allah pier go supermarkets tried to outdo it. Not just by price. When you get to the checkout counteryou now look smarter than the other guy when you have the private label and very few believe theres a compromise in terms of quality. I, myself, am a huge private label buyer every time i can be. Given a world where 47 Million People are on food stamps, up dramatically from years ago and a world where this is having a private label brand is the most important way to grow your company. The new hybrid model addresses the new world headon. Branded products in certain categories. And you have superior quality private label in places as widespread as walmart because the gulf between the rich and the poor in this country demands it for survival sake. They buy roll corp because they can. The trend is too powerful. Not because the world we bif is in is for of a tale of two cities and both cities are fed up with paying more for the exact product because it has a wellknown label. And ceo, probably the most of the execs knows you capitalize on it or you eventually fade away. Stick with cramer. Follow jim cramer. Bp has paid over twentythreebp billion dollarsnt to the gulf. To help those affected and to cover cleanup costs. Today, the beaches and gulf are open, and many areas are reporting their best tourism seasons in years. And bps also committed to america. We support nearly 250,000 jobs and invest more here than anywhere else. Were working to fuel america for generations to come. Our commitment has never been stronger