whether we're investing too much in person at the helm, and not enough in the whole team, not to mention the enterprise and what it might actually be worth. of course it's warren buffett inc., aka berkshire hathaway, which triggered my quandary over the value of the influence of the ceo versus the value of the enterprise. buffett's disclosure of his illness caused an immediate decline in berkshire hathaway because alas, for many people he is berkshire hathaway. you know i think that's just not true. the man has built up a huge series of assets, and you're buying the stewardship of those assets when you buy the stock. for many, it's inconceivable that anyone could steer berkshire like buffett has. of course, that's a theoretical question because buffett has made it clear his illness is not life threatening. i for one believe as important as warren buffett is to the organization, the truth is the oracle of omaha has accumulated a ton of assets that haven't performed all that well. i know that's heresy, but it's possible he will pick someone that will possibly bring out more value. buffett has been hands off for ages. that's the way he runs things. with the expansion into dozens of disparate businesses, it's not clear whether some of them should have been trimmed. some should be. maybe some aren't good enough to be in the company. a fresh air of buffett-trained eyes might be a positive. more important, there is a real cyclical bent to what buffett owns, a bent that needs housing and construction to do better. if these sectors recover, as i think they will, then berkshire might do better regardless who is running it. it is a business. it's unquestionable that a buffettless berkshire will not get the same deals with bank of america, goldman sachs that made him so much money. made the company so much money, not him. all right. here is the is subtext about buffett that tends to make berkshire hathaway a much harder stock to own. we can't figure out how to value the darn thing. who know what's the price the price to earnings multiple should be? how does he decide to pay for this disjointed and hodgepodge group of companies? how can we tell if it's cheap or expensive? is it cheap because buffett says it's cheap? he says we should look at book value, but the book value means nothing unless berkshire is being taken over or broken up. or to put it another way, you don't need to view this company as buffett inc. it's really hard to figure out what to pay for berkshire either way. that's a big reason why it's gone from seeming like a focused yet undervalued company to an unfocused yet undervalued company. so as horrible as this sounds, the emotion should be more mixed about the possibility of leadership down the road. he wants you to buy the stock when he is not there. it's a reality. this company needs more focus than its creator is giving it. but it's still very undervalued. i want to stay with this great man theory for a moment, though. how about the zuckerberg inc.? soon facebook, zuckerberg inc., will be coming public. zuckerberg spent a billion dollars buying instagram, the photo company, the uplink photos and he didn't tell anyone on the board of directors. does that make you nervous about buying facebook? don't we want an active board to check the authority of a 27-year-old ceo? again, i'm going to give you a little heresy on the issue. if instagram is good for facebook, who cares? it's a private company anyhow, at least for now. however, i have no desire to serve on a board where i wouldn't be consulted. in the end, though, it's all about price for me. if facebook's priced low relative to its earnings, i want to be in on the ipo. if it's high, i don't. end of story. i actually could care less, far less about the board if zuckerberg is great. a board can check power, and we know that power can corrupt, or at least let a ceo go more wayward than he should. which brings me to chesapeake energy, which you know i think is the most forward-pushing natural gas company on earth, and you know how important i think natural gas is to the country. we learned from a reuters story that ceo aubrey mcclendon, aka chesapeake has borrowed $1.1 billion to finance the purchase of those stakes to which i say huh? after mcclendon gambled when he went on margin to buy chesapeake stock all the way down in 2008 and then came on "mad money" on the set and said how sorry he was for doing that, for margining up when he lost the stock because it plummeted in price? i figured he was kind of dumb with the aggressive borrowing against assets that could decline in wealth like nat gas, which it has. but here he is again borrowing big to maintain a stake in another corporate asset from the company. the margin to a broker, i don't know, it's personal. i didn't even know he had these stakes. and if i were a board member there, i would be against it. i don't know how it furthers the interests of shareholders to make these deals. and although both chesapeake and mcclendon were quick to say that these transactions don't represent a conflict of interest, i can't see how they're good for shareholders. and obviously people agree with me. the stock got hammered today. it makes me more reluctant to recommend chesapeake, and i'm clearly not alone. looks like the great man theory is not panning out there, even if aubrey is a visionary about natural gas. as long as things are transparent, i'm cool with it. you own berkshire hathaway, you know the ceo does matter and you accept that risk. you get into a facebook deal, you know you're getting into a company where the ceo has raw unchecked power. you can buy it today knowing the ceo is an extremely wildcatting, some say gambling mind-set, and the board seems to be looking the other way. unlike berkshire, you didn't know if you owned the stock last night. call me a mercenary, but i'm willing to tolerate an awful lot more of the great man as asset theory if it makes you money rather than if it loses you money. if chesapeake were going up, i don't know how much i care about mcclendon's stake in their wells. maybe i wouldn't care at all. but the stock is down 44% year-over-year. so it's bad. berkshire hathaway has done nothing year-over-year. but it's been fabulous over the eons of buffett's tenure. facebook? you get in on the ipo and it makes you money, then zuckerberg, keep making those fast-moving deals. what makes me so open minded? it's pretty empirical. apple. it may have been among the greatest investments of all time. he left the company thriving in his absence. whether it's because of the stewardship or ideas on the board, it's working. and if it's working, got my blessing. bottom line, let's not forget what this business is about. it's not about corporate governance per se. it's not about rules per se. it's about making money and losing money. it's about finding investments that work, as long as the ceos are honest and doing a good job and are not looting the company, which by the way i do not think aubrey mcclendon is doing, then i'm square with it. if they're making money for you. and i'm not square with it if they're losing money for you. the stock goes higher? good. stock goes lower, bad. simple litmus test, one that has made me a ton of money over the years, and it's one that i think can work for you, too. alex in florida, alex? >> caller: big boo-yah from tallahassee, jim. >> hey, sunshine. how you doing? >> caller: pretty good, and you? >> i love t-hass. what's going on? >> halliburton. based on their earnings report that came out today -- >> let me tell you how i feel about halliburton. i was going to do a piece about it but i got caught up in other things. when you have no expectations of a stock doing well and it does okay, that stock goes higher, no one expected halliburton to be able to offset that natural gas weakness, but they almost did it with oil. halliburton, i'm saying it, i think it's in the clear, provided that brent doesn't plummet to $90, and i don't think it will. brenda in illinois, brenda? >> caller: hello, jim, i love your show. >> well, thank you, brenda. wow, i love fired up callers. what's going on? >> caller: i bought 282 shares of sxc health solutions a year ago. it went back up nicely. and today i see it went up 8%. i'm wondering if i should sell or hold? >> well you know, this is the greatest performing stock since we started "mad money" eight years ago. and i would tell you that i think you should hold it because this combination is so fabulous, this catalyst sxc that they will complete against cramer favorite express scripts. without a doubt you want to hold on to this. i want to go to reed in north carolina, reid? >> caller: boo-yah, jim, from wake forest university. >> oh, man, the demon deacs, how are you doing? >> caller: i'm doing great. how are you? >> great because i got a call from someone from wake forest. >> caller: i hold transcanada. with the starts, stops, and redirection of keystone, is transcanada a buy, a sell or hold? >> i think it's gravy. keystone is gravy. transcanada is a company that knows not to rely on american politicians to make money. you know what i got to say than? i think they got horse sense. i want to own the stock. follow the leader. hey, listen, if you're making your money, i say -- >> hallelujah! >> and if they're not, it's -- [ booing ] >> it's as simple that. "mad money" will be right back. >> coming up, retail returns? dividends and development have made federal realty a win for shareholders. but should you be laying down cash for this thing, or could its retail portfolio fall out of style? cramer is taking a pulse of the consumer when he talks to the ceo, next. and later, accelerated revenue. polaris industries kicked it into high gear this morning, plowing through earnings estimates and speeding up guidance. time to ride this one higher, or should you wait for it to cool off? cramer's exclusive with the company's ceo is just ahead, all coming up on "mad money." miss out on some "mad money?" get your "mad money" text alert today. text "mm" to 26221 to get cramer right on your phone. for more info, visit madmoney.cnbc.com, or give us a call at 1-800-743-cnbc. 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(sfx:loud drilling noise continues to drown out gecko's dialogue) ...and a quarter cup of then he... neapple juice. or was that the secret to his barbecue sauce? hey, "secret" sauce. geico®. fifteen minutes could save you fifteen percent or more on car insurance. whose non-stop day starts with back pain... and a choice. take advil now and maybe up to four in a day. or choose aleve and two pills for a day free of pain. way to go, coach. ♪ [ gasps ] think again. try charmin ultra strong for a clean with fewer pieces left behind. its diamondweave texture is soft and more durable so it holds up better for a more dependable clean. fewer pieces left behind. charmin ultra strong. the other day on "squawk on the street," my friend and colleague brian sullivan questioned the future of shopping centers, given the power of amazon to destroy bricks and mortar retailers. he wondered aloud how federal realty might be doing in a world where people use stores like best buy as showrooms only to purchase the goods on amazon. federal realty, they're doing quite well. i said that because it's got a diversified portfolio, not tethered to any particular one retailer and tremendous geographic diversity and in a wealthy demographic. plus if amazon were trashing the tenants of the shopping centers of the world, how is frt able to raise rents last year which happens to be much higher than the peers for which is 1.9%? plus, federal is a serial dividend raiser. stock only yields 2.8% at these levels because the share price is going up so much. when you include reinvested dividends, frt has given you a double since i first got behind it in may of 2009. that's why i'm thrilled to have don wood, the ceo of federal realty tonight to talk about the amazoning of america. mr. wood, welcome back to "mad money." >> hey, jim. thanks for having me on. appreciate that. >> first on, happy 50th birthday. >> well, thank you so much. that's the company. personally, i'm past it. but the company is at 50. >> obviously, if you're 50 years old, you've been able to deal with lat of different traumas, not just what might be happening with amazon and bricks and mortars. >> it's funny. when you started that segment and started talking about best buy, i think it would have been three years ago and the conversation would have been circuit city or linens and things. there are always challenges against retailers. you've got to be diversified. it's why you have to be in the right places. i think the demise of best buy, that notion is a little bit exaggerated, too. hey, i do want to say one thing and tell you than if you don't mind, though. it is time for sales tax to be collected on online retailers. >> yes. >> by online retailers. >> your tenants do not have equity in their favor. it just is outrageous. >> that's not a right thing. but nonetheless, that will take care of itself in time. >> at the same time, if anyone goes through the 50th anniversary fabulous transparent, you've always been the most transparent of any real estate investment trust, a fabulous transparent report, you'll see that not only is your demographic better, but a lot of your company, a lot of your tenants, you're not going to buy what they have on amazon. >> well, it's a couple of things. you're right. i will tell you when it comes to online shopping, i think it's got a great place. >> right. >> in everything that we do. i absolutely believe, though, you know, you don't want commodity-based retail. you do want an experience for consumers to come and shop, for them to eat. having restaurants are a big part of the business. for them to be in place where you also live, where you also work. the mixed use component is a big part of our business. >> now there has been some talk, for instance, that bed bath, which is anchor tenant for a lot of your places. >> true. >> that could be amazon. a clever retailer can beat amazon. >> these are individual businesses. >> right. >> and that particularly is one that is run as good as anybody out there. >> now, there have been very few new shopping centers built. that has got to make it so that even if you lose a tenant, the next tenant may have to pay more than the old tenant. >> that's part. it is a supply and demand game. it's not brain surgery in terms of what we're doing. i got to tell you, i haven't felt as optimistic about the future than i do right now in years, quite frankly. and a lot of that has to do with not only improving consumer sentiment, which is absolutely there, but we've got more transparency in terms of how we're going to grow over the next five and seven years than we've had in a long time. >> but this is really important, don. you've been here many times and you've talked conservatively about how you're able to stay in place and still raise. i have never heard you talk about the notion of a visible expansion path. you have never talked about that here. >> it's always been there. i will tell you there is nothing better in business than being able to raise rents year in and year out and create value that way. that absolutely is harder to do post-2007 than it is today. but what we have in addition to that, jim, is a billion dollars, $1 billion in our $8 billion company of committed capital over the next three years, half of which has been spent already in the form of two great acquisitions that we made just at the end of last year that will be helping us for years to come. and the other half of that are in two big new mixed use development projects, one in rockville, maryland, one in somerville, massachusetts, just outside of boston, that are both under way this year. assembly, which is the one outside of boston, we broke ground on last month. >> at one point you told me you felt things were so tough in this economy that without federal money it would be difficult. we're to the point where projects make sense without federal money. >> well, listen, it depends on the project. certainly federal money has not been a big contributor to what is happening in the development world. but you need the right marketplace where demand exceeds supply. >> talk about those two developments. why are those areas able to support all new expansion of retailers? because a lot of areas across the country we wouldn't think they can support. >> a lot of the areas of the country are not. there really hasn't been a time when i can remember where there has been such a bifurcation of opportunity and no opportunity. if you're talking about the suburbs outside of washington, d.c., which we are incredibly concentrated in, we own -- we own on rockville pike, which is the prime shopping area, over a million square feet within a mile in four different shopping centers. and the development that we're doing will be a completely different type of product, residential over retail, with a little bit of office, too. so the mixed use as well will play a bigger part in our future. >> but at the same time, one fifth of the country, california, you're seeing opportunity there. that was not the case a couple of years ago when you came here and didn't feel like california is the land of the future. >> it's so funny you say that. i was just talking to somebody on capitol hill last night about the regulations and the issues in california. you can do nothing to california to not make it look good in terms of the future. it really -- especially northern california with the tech sector. it's booming, and it looks like it will be for years to come. >> and obviously because we care passionately as you do about the dividend, a lot of the guys in your industry got rid of the dividend. what you're talking about if you feel you have a five-year plan of visibility. i have to presume that there could be five more years of dividend growth. >> listen, 44 years in a row, jim. that's the softball you've given me. 44 years in a row since '67. it is our most valuable asset. we're running this company to be able to do that for many, many years into the future. hopefully we can. there is nothing i see that would change that trend at this point. >> that's why we like federal realty and i keep sticking by and defending it. oh, look, brian sullivan made a good point because people are worried. they should be less worried. >> three best buys. that's all we got out of those tenants. >> that's great. you volunteered it. that's don wood, president and ceo of federal realty investment trust, frt. look, it's been the best of them. i think it's going to stay the best of them. thank you, don. >> thank you, jim. >> great to see you. polaris industries revved up its earnings by selling toys like these. after beating the streets this morning, i'm speaking to the ceo to find out if there is still time to hop in to this stock. with swiffer dusters, a great clean doesn't have to take longer. i'm done. i'm gonna read one of these. i'm gonna read one of these! 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[ male announcer ] subway, eat fresh. before 9am. all april long. having one of those days? tired. groggy. can't seem to get anything done. it makes for one, lousy day. but when you're alert and energetic... that's different. you're more with it, sharper, getting stuff done. this is why people choose 5-hour energy over 9-million times a week. it gives them the alert, energetic feeling they need to get stuff done. 5-hour energy...when you gotta get stuff done. hey, how do you like my ride? today i'm rocking in a polaris ranger rzr xp four-seat offroad vehicle. let me tell you why. people ask how is it i'm so confident that the u.s. economy is in much, much better shape than anybody even thought possible, say, six months ago? for starters, every day we get more evidence that discretionary spending is back and back with a vengeance. consumers aren't just buying the simple bare necessities of life anymore. they're spending money on stuff they really want, stuff that nobody could ever need. and that in itself is a terrific sign. back at the end of january, we ran a whole week-long series on big ticket discretionary items that at the time seemed to be flying off the shelves. no one believed. and now that earnings season has arrived, the ultra discretionary trade is paying off big time. take polaris, pii, a leading maker of snowmobiles, all terrain vehicles, here we go, as well as motorcycles, ultra light vehicles for the military. i initially recommended pii because the last time it reported in january management gave disappointing guidance, but rather than getting crushed, the stock actually rallied the next day. hey, you know what that is? that's a classic sign that the market believes the numbers are way too conservative. i told you to buy it on january 31st. two days later polaris announced a 64% dividend boost which at its current levels gives the stock an 8% yield. that's another terrific tell that the future could be much brighter than the past. sure enough, last night the company knocked it out of the park. polaris earned 85 cents a share. that's 8 cents better on much stronger than expected revenues, rose 25.4% over year-over-year some, of the highest revenue growth i've seen. the numbers are so good that of course the stock took off. it catapulted 10%. did you have this one? and remember, management's guidance for this quarter was really conservative. talk about under promise and over deliver. so this stock polaris has now given you a 25% gain since i got behind it at the end of january. but i bet this high-end discretionary story has really only just begun. the company has a bunch of major new product launches this year. it's expanding aggressively overseas and has shown itself to be a phenomenal executioner. but do not take this one from me, all right. what i got to do is i want to head back into the studio, leave this beautiful vehicle, the dual overhead cam that is so cramer and talk to scott wine. he is the ceo of polaris industries to find out more about the company's quarter. mr. wine, welcome to "mad money." thank you so much for coming on the show. >> thanks for having me, jim. >> all right. i got to get right to this. look, scott, we believed in the high-end discretionary business, but frankly didn't believe in it enough. how are you able to get this power sports business up double-digits in an environment where everybody's got a woe is me attitude? >> you've got part of the story there in your studio today with that xp-4. innovation has really been the main driver of our success. and really, i think you're talking about discretionary products. there is a whole lot of our customers that will speak to their spouses about the work utility value in these things. really, it's a good mix of the hardest working, smoothest riding ranger customers as well as our sport recreation customers with the rzr xp-4 there. we cut across a broad range of pricing structures and hit more of the economy than you think. >> now, scott, a lot of people feel, i always hear we don't make anything. i'm tired of hearing that. we make, you make these vehicles better than anyone in the world, don't you? >> we do. we're very proud of our team. well started in rouseau, minnesota 54 years ago. we're proud to employ almost 1500 employees there today. we've got great products, and that's really a key part of what we do. >> now you also have -- i would call it a classified business in some parts. you have a big business with the military. what does the military want with these vehicles? >> well, it's big, and it's getting bigger. it's not nearly as big as we would like it to be. but the same as our consumers that find that we can innovate and give them the solutions that they need, our military customers find the same thing. they can use our products to stay off the main roads where typically they'll find ieds and can really get places just like our consumers can here in the u.s. the military can use our products to get places in afghanistan and iraq that they can't otherwise be. >> in that sense it made me feel like the general purpose vehicle, the jeep of world war ii comes out and takes america by storm for the next 50 years. could polaris be much, much bigger than it currently is? >> oh, our goal right now -- i'll call it fairly aggressive to get to $5 million over the next four or five years. we're well on our way to getting there. we had 25% revenue growth in the first quarter. we're forecasting to be up 20% to 25% for the full year. we're well on our way, and we think -- our real focus is on profitable growth. it's not just becoming bigger. and with the military and our other consumers, we think we can deliver on that promise. >> just like american car manufactures that initially had tremendous luck overseas, now in the case of general motors is doing really well in china, i have to believe that your current international business could be far bigger than it is right now. >> you know, you've got that one right, jim. we've got about a 15% of our business outside of north america right now. we've got a really strong business in europe where we're number one. we had 20% growth in our international business in the first quarter. but we've got small but very fast-growing businesses not only in china, but also in india and brazil. and we're very optimistic about what we can do long-term in those markets. >> now you were able to do this quarter despite what looks to be an inventory glut in snowmobiles, some weather perhaps. how were you able to do it? and what is going to happen to the snowmobile market, because i think there is a lot of snowmobiles that just didn't get bought? >> actually, there was a dichotomy somewhat. our snowmobiles are the best mountain sleds in the industry. we had very good sales in the mountain region. for the season which really runs october through march, we retailed more snowmobiles this year than we did last year. so we had more sell-through than anybody else in the industry. while there are certain dealers across the country that have more inventory than we or they would like, overall we're feeling very good about where our snowmobile business is in spite of the weak snow conditions this year. >> you know, i was tempted to also say, because i know it's been a big thing for others, other brands, you got a big apparel business going. >> a thing of what? i'm sorry. i didn't hear that. >> you have an apparel business going. >> we do. actually we're really excited. we call it our parts, garments and accessories business. about $450 million this year, and we think it has the potential to reach a billion over the next four or five years. we just brought in an executive from target, steve eastman, a few months ago. he brings tremendous retail experience to us. and we're quite bullish on what we can do not only with garments, but parts and accessories as well. >> how about motorcycles? it seems like you had a high-end business, something you could really be doing internationally too. but it's not a big part of your business yet. >> not yet. but we are very bullish on our motorcycle business. steve minneto, who runs that division for us, is doing a great job with our victory motorcycles. the performance enthusiast sector, it is a great performing, great-riding bike. and we recently acquired the indian brand last year, and we're very excited to now have that iconic brand to build upon as well. >> are you worried about being taken over? did you see that ducati acquisition last night? someone could be opportunistic and go buy all of polaris. >> you know, they could. and our board and shareholders would have to agree that's the right thing to do. but looking at the future that we've got as a stand-alone company, i think we're going to do just fine. >> all right. one last question. in 2008 you told people that you had 15% international and you wanted to get to 30%. you're certainly not there yet. are you, one, disappointed, or is that because domestic has grown so much? and, two, when will you hit that target? >> i am disappointed. we set targets not just because we think they're good goals, because we expect to hit them. but on the other hand our north american business has grown so fast over the last three years, we're not going to really complain if that's the reason we missed our international percentage increase target. our international business in llar terms has grown quite significantly. you know, with a very strong team in europe and a very strong team in the developing world, we're quite bullish on our ability to get to 30% over the next four to five years. >> well, scott wine, you are a great american success story. polaris is terrific. and i thank you so much for coming on "mad money." >> jim, thanks for having us on. >> okay. that is scott wine, ceo of polaris industries, pii. guys, i got to tell you, the those companies you might not know about, you might think it's just a little small thing. this is a company that could be taking over the world in a category that's got the highest growth of any vehicle on earth. i think it still goes higher. stay with cramer. coming up, ride the lightning. take a nonstop thrill ride as cramer goes stock after stock. all your calls taken rapid-fire on the "lightning round." and later, whether the dow soars or hits the floor, jim tries to help you stay on steady ground with "am i diversified?" all coming up on "mad money." it is time, it is time for the "lightning round" on cramer's "mad money." say the name of the stock -- >> buy, buy, buy! >> sell, sell, sell! >> play until this sound -- [buzzer] and then the "lightning round" is over. are you ready, skee-daddy? it's time for the "lightning round." i want to start with ryan in ohio. ryan? >> caller: hey, jim, how are you? thank you for taking my call. >> my pleasure, ryan. what's going on? >> caller: as a long-term and defensive play, what do you think about awk, american water works? >> well, it does fit. look, as long as you realize that's what it is, because i'm not crazy about how little it gives to yield. i would much rather be in a utility, like a con ed, than that. but i bless it -- >> buy, buy, buy! >> that's okay. ken in florida? >> caller: ba-ba-boo-yah. >> all right, sunshine, what do you got? >> caller: orbitz worldwide. >> total spec. uneven earnings, uneven revenues. a total spec and no more than that. i will like it if you keep it as a spec and not an investment. let's go to jimmy in tennessee. jimmy? >> caller: hey, mr. jimmy. >> yo, yo. >> caller: i wish you would come to the university of memphis and do a show this fall. >> i agree. i love memphis. what's up? >> caller: what about ocn? >> you know, it's a -- let's call it a predator of assets. it's been very, very good at managing a book of business. it's a very, very well-run company. boy, i wish they would come on the air. i like it. let's go to david in new jersey. david? yo david? >> caller: david here. >> hit me, david. >> caller: north jersey boo-yah to you. >> i love jersey. what's on your mind? north, south, i'm indifferent. >> caller: what i'm looking at is westport. >> here is the problem with westport. we were waste management yesterday. cummings and westport have now become frenemies. let's call them frenemies. and i don't want to go against cummins because it's one of the greatest manufacturers in the world. so right now i have no opinion on westport because i don't like this duel between the two. [ gunshot ] how about al in nevada? >> caller: how is the presidente? a million boo-yahs. >> boo-yah, boo-yah, boo-yah. >> caller: look, i've got a thousand shares of las vegas sands. i want to sell and buy 100 shares of apple. >> why do you hurt me like that? the news about wynn casino is good too. i'm not going to advise you to sell lvs and buy apple. i like them both. i'm not footing that baby. let's go to rose in pennsylvania. rose? >> caller: hey, jim, how are you doing? >> good. how are you? >> caller: good. kulicke, klic. >> i'm from the willow grove area. they have always been able to consistently deliver earnings, but never blown them out. i would tell you this is not my favorite semiconductor equipment stock, but the semiconductor equipment cycle is in sync so kulicke is fine. howard in west virginia? >> caller: hey, jim. mead west vaco. >> slow and steady wins the race. >> buy, buy, buy! buy, buy, buy! buy, buy, buy! >> i like it very much. tom in wisconsin. >> caller: boo-yah from paradise. i'm upside down in fro, frontline. >> if you want to own that business, go to north american tanker. could get bigger. how about linda -- [ buzzer ] >> uh-oh. how about linda in connecticut, linda? >> caller: hi, jim. i'm calling in about solar capital, slrc. >> i think the yield is fine. it's not really doing anything great right now, but it's safe. i think the company is going to do an okay job. but it just there. and you're getting the yield. that's what it is. it's a little bit like annaly. you're just getting the yield. but i do think annaly is slightly better yield so therefore slightly better stock. wayne in new york, please. wayne? >> caller: hi there, jim. jim, it doesn't get any better. i'm sitting here with my 14-month grandson trying to teach him boo-yah! >> it's even better if he has apple that he bought at $30. but go ahead. >> caller: jim, several months ago you sang the praises of mips technology. >> yes. >> caller: i'm curious if you still feel the same way. we're in earnings season now. >> i said they came on and told a story that did not come true. i disavow any knowledge. take today was on takeover talk. and i continue to think -- >> sell, sell, sell! >> they came on air, talked a big game and failed to deliver. when you fail to deliver, you do not get my endorsement. and that, ladies and gentlemen, is the conclusion of the "lightning round"! [ buzzer ] >> the "lightning round" is sponsored by td ameritrade. when the going gets tough -- >> you constantly have the courage and the tenacity to fight for us. >> cramer gets going. >> you're an honest man with guts. it's a rare species. >> thanks for teaching me and putting me in charge of my other own future. >> it's time to take charge of yours. >> "mad money" with jim cramer. i used to not travel very much, but then i discovered hotwire. now, i use all my vacation days. i can afford to visit my folks for the holidays. and reconnect with my girlfriends in vegas. because i get ridiculously low prices on all my trips. you see, when hotels have unsold rooms, they use hotwire to fill them, so i get 4-star hotels for up to half off. now i can afford a romantic trip to new orleans. hi honey! ♪ h-o-t-w-i-r-e... ♪ hotwire.com challenge that. olay smooth finish facial hair removal duo. first a gentle balm then the removal cream. effective together with less irritation and as gentle as a feather. olay hair removal duo. get a little wacky these days. one day we're up. the next day we're down. i know the seesawing market has been frustrating if not torture for you home gamers since april began. but i always say you got to take the good with the bad. find the bull markets no matter where they are. how do you find them? we're focusing on real sustainable growth. we're looking at the top performing sectors and we're picking the best of breed stocks. now let's see how much homework we have done. let's play "am i diversified?." this is where you call me and tell me your top five holdings and i tell you if your portfolio is diversified enough. maybe you need to mix it up a little bit. it's more about being in the different sectors than it is about the quality. that's okay. last week we got a tweeter in the game. i got great response from people @jimcramer on twitter. tim callan tweeted at "am i diversified?" he has hewlett-packard, red hat, starbucks, sba communications, which is the tower company, and cisco. so let's go to work on this tweet. all right. starbucks just a phenomenally performing stock. that's our growth stock. sbac terrific. a cell phone tower and we've got a restaurant, all right. uh-oh, we have hewlett-packard, tech. we have red hat tech, and cisco tech. that's no good. we're going to get rid of cisco and go buy verizon. we still get the telco exposure. well can't buy verizon because of sba. abbott labs, we like that. and we're going to get rid of hewlett-packard and instead what we will do is we will buy -- let's buy ensco, esv, get a little oil service going. those are my trust names. that is three in tech. twitter or not. wayne in texas, wayne? >> caller: hey, jim cramer from aggieland. >> oh, man. >> caller: i have abbott, kraft, conocophillips, win stream and mattel. and if you can, make a comment on mattel's nice run-up and dividend since 2008. >> okay. let me look at this. mattel missed that quarter really badly, but it may not be a crucial quarter. kraft, both parts we like. we like both parts of abbott. mattel does have the good yield. they did miss a quarter. toy company, food, drug. i'm willing to forgive it because it has yield support. conoco is splitting into two also. i think people are too negative on the refining part. oil, telco, food, toy, drug, bingo! let's go to caroline in washington. caroline? >> caller: hi, cramer. it's so great to talk to you. >> same. >> caller: i'm in my mid-70s. i manage my own portfolio. >> okay. >> caller: and i've been watching you and learning from you for the past two years. >> thank you. >> caller: thank you for your brilliance. >> thank you. i hope i deliver for you. thank you very much. >> caller: i've been following five stocks. am i diversified? and should i hold on to them for growth, especially for oil and gas. first one devon. dvn. eog resources, las vegas sands, lds, suntrust bank, sti, and statoil, sto. am i diversified? >> let me go to work here. las vegas sands, an incredibly well run company. i like the casino business. suntrust, i've been buying it for my charitable trust. why? i think it's going to succeed next time. i love devon. owned that for the trust, too. here is the problem. devon, eog, and statoil, they are all in the oil and gas business. devon and eog have a very similar product portfolio. at least statoil has the dividend. it doesn't have the growth. we're going get rid of statoil. unfortunately, i think devon is now cheaper because it's really fallen. and now we're going to buy verizon, get that yield. and we're going to go back and get the abbott labs for the yield and growth. you got to make the changes because you've got way too much oil and gas, way too much. john in washington. john? >> caller: good afternoon, mr. jim. a big boo-yah from federal way. >> beautiful. >> caller: the following five stocks for about a year. >> okay. >> caller: cop, conoco phillips. ep, el paso corporation. procter & gamble, pg. unh, united health care, and wm, waste management. >> all right. we'll go to work here. by the way, united health reports tomorrow. i expect this is going to be a great quarter. procter & gamble just boosted the dividend, even though it's just been ho-hum. conoco splitting in two. waste management. yes, it's terrific. and what does this leave us? we cannot own el paso and conocophillips. so we're also going to buy verizon and get that terrific yield. and that, ladies and gentlemen, is the conclusion of "am i diversified?" "mad money" is back after the break. they say money never sleeps. neither does jim cramer. follow @jimcrameron on twitter. greetings from the windy city of chicago. people here sure are friendly but some have had a hard time understanding my accent. so to make sure people get every word of the geico savings message i've been practicing how to talk like a true chicagoan. switching to geico could save you hundredsf dollars on car insurance... da bears. haha... you people sure do talk funny. geico®. fifteen minutes could save you fifteen percent or more on car insurance. a, the appearance. amber. [ jim ] b, balance. sam adams has malt sweetness, hoppy bitterness. [ jim ] c, complexity. pine notes, grapefruit notes. only believe your own pallet. go taste them. [ female announcer ] been looking for excedrin lately? now for your tough headache pain, turn to the long-lasting strength of aleve. problem solved. ♪ zero in to win and play subway battleship. get codes on 30oz cups for a chance to be one of thousands of winners daily. get your code today. and catch battleship in theaters, may 18th. subway. where winners eat. what does a company have to do to get the benefit of the doubt around here? last night ibm and intel, two tech companies about as tried and true as it gets explained why you shouldn't panic and dump their shares, even though they both seem to have anemic growth. that didn't stop both stocks taking it on the chin today. i think they both deserve your benefit of the doubt simply because over the last few years they've done a terrific job of making good on the targets, defying the skeptics. sure ibm didn't deliver the revenue growth we'd like. there were some big orders that didn't get filled and there were some real weaknesses. that said, i believe ibm should be given slack here, even with the new ceo virginia rometty at the helm. ibm is not expensive on the $15 in earnings i expect it to generate this year. most important, the company continues to transition to a hardware light model. and that's going to produce some hiccups. the fact that the business was strong in the uk and spain -- spain of all places -- makes me feel like the product ibm offers is in need no matter what. software growth, just $7 million shy of 2%. so they called it 1%. it should start climbing soon. that's what we told my charitable trust. as for intel, you have a disc drive shortage because the manufacturers couldn't make enough pcs to meet demand because of a shortage. huge windows 8 cycles product. that's always been terrific for intel and a reason to buy. at the same time you have a number of new plants opening up for ivy bridge, which will knock down margins qe2 no doubt because of new chips as so many have to be thrown out. that always happens. this amazing new romley chip that will be so crucial for overheating data farms. most important of all, you have people i trust. the ceo and cfo saying the transition will be completed this quarter and the rest of the year will pretend an increase in gross margins. that's terrific because gross margins drive earnings that drive cash that can return earnings to you, the shareholder. aggressive dividend boosts are a major catalyst for the stock's performance down the road. when a company reports, you want to see it fire on all cylinders, a la intuitive surgical and united rentals. in wall street, bald is beautiful and hair means profits. so when you see some follicles, it might not be the end of the bad news. still, one of the benefits being in this business for as long as have i been in it is ages, i can sense corporate cultures and what they're about. and i know intel and ibm are about adjusting to get it right. these companies are experts at under promising and over delivering. of course as i said at the top of the show, i'm acutely aware that it's difficult to ever make a solid judgment on character. but like people before the docket in court, intel and ibm, they are innocent until proven guilty, despite what the market says. their long-term performance gives them that edge over so many other companies i follow. they're among the rare few that actually deserve your benefit of the doubt. stick with cramer. c'mon dad! i'm here to unleash my inner cowboy. instead i got heartburn. [ horse neighs ] hold up partner. prilosec isn't for fast relief. try alka-seltzer. it kills heartburn fast. yeehaw! remember, it is earnings season, and there are a lot of mistakes being made. they threw away the banks immediately. they threw away ibm today. don't throw it away. do the homework. you might actually like what you're throwing away.