CSX (CSX): "I like CSX but it's coal related and it doesn't have the yield I want."
Seagate Technology (STX): "I think that we're in excess supply of disk drives. There are bad numbers coming. If it hits a 3.5% yield, I'm a seller."
Nucor (NUE): "This is another one protected by it's yield, but if it hits 3.5% you're going to have to sell. "PetroLogistics (PDH): "No. That one is broken and I don't like the ones that are broken. "
Checking in With PebblebrookIn a second "Executive Decision" segment, Cramer sat down with Jon Bortz, chairman, president and CEO of Pebblebrook Hotel Trust (PEB), a hotel REIT with a 2.3% yield. Bortz described Pebblebrook as a unique company, one that's paying out less than a typical REIT but also one that's growing by 24%. He said the concept is simple -- take advantage of market conditions to buy distressed hotel properties and turn them into great properties. Pebblebrook currently owns 21 hotels in 14 markets and boasts 90% occupancy in its 1,700 rooms in New York City. He said while there are a few new hotels being built, primarily in New York City, growth in the hotel business has virtually been at a standstill as financing has dried up. When asked about Pebblebrook's smaller-than-average yield, Bortz explained that because it is a growth company, it needs to return to the capital markets for funding. In fact, the company has raised $1.2 billion over the past 24 months alone. As such, Bortz said it wouldn't make sense to pay out more to shareholders only to borrow that money back at higher costs. Cramer called Bortz a "master" of the hotel business and called Pebblebrook a great company to own.
Am I Diversified?In the "Am I Diversified" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets. The first portfolio included: Healthcare REIT (HCN), Realty Income (O), Plum Creek Timber (PCL), Kinder Morgan Energy Partners (KMP) and SPDR Gold Shares (GLD). Cramer said that while this portfolio has several REITs and master limited partnerships, they're all in different sectors and are diversified.
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