>> i want to buy protection, s&p puts. >> hawkish fed, i like bank of america. >> b.k.? >> third time is a chart. gdx. i think it's priced in. >> i'm melissa lee. see you tomorrow right here 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 some money, my job, not just to entertain but to educate and teach you. so call me at 1-800-743-cnbc or tweet me at that time jim kr
you have to wonder if something good may be coming, coming up for the entire economy, something bigger than we talk about today. today's sleepy session was the new normal. i've made no secret of the fact that i think that the end of the recession with the federal reserve, it has caused millions of people to miss this amazing run from the generational bottom seven and a half years ago. the current hiatus in buying ahead of janet yellen's speech in jackson hole is typical. we wait and then it's gone. what, why have so many been so skeptical of every darn move
higher? because investors have been conditioned to brief that once the fed starts raising interest rates regularly, they believe the stock market will go down. why? they believe it never should have gone up in the first place. everything that can cause a stock to raleigh, from the dividend yeed to a shrunken h s account, people presume that stocks have to plummet. i have never chosen to make investments based on the fed's next move. because the fed i've known is a fickle beast that's often wrong, parsing every word is a huge waste of time if you're trying to pick the stocks of companies. take facebook, if you've made up your mind that the only thing that matters is the fed, would
you even consider buying the stock of this company? would it have meant anything to you at all? how about amazon, how about sales force.com, adobe or apple? certainly, you've seen johnson and johnson go up, by plunging interest rates. i would contend that those stocks would have been doing next to nothing if not for the terrific managements, cashing in on good opportunities and avoiding bad ones. it matters a lot more to me than this endless fed speculation that i am so sick of. if you have a federal reserve that's not feckless with a grownup at the helm, like this one, and most important, no
external shocks then a non-volatile stock market that behaves itself could be more beneficial for the overall economy than many of us might think. in my world view, a placid stock market produces bounty in its own right. and that might be what's happening right here right now. last year, the ceo of pvh came on "mad money" and called the scope a disaster. we had more negative same-store sales. the only really sal yents story that came up involved stock market declines, notice i didn't use that code word volatility. i'm talking about out-and-out decline. this year's back to school season is so important to retail sales, absolutely crushed by the collapse of the u.s. stock market in the face of weakness that we imported from china.
the spillover was terrified, as we know from the heart-stopping, back to back 500 point tdecline last year. i believe that rapid gu gut-churning decline -- both negative and positive is almost always underestimated by economists and of course by pie k -- my colleagues in the media. sure job growth is better this year, but not so good that it can explain that. it was so awful that we decided that the wall was dead. in retrospect, i think the consumer might have been frozen by the vicious stock market and then thawed. things got less crazy. this past quarter showed that reports of the malls' death were
indeed greatly exaggerated. if all is equal, i say, it's the stock market, stupid. looking back at where we were a year ago, i think a noisy federal reserve, not speaking as one, coupled with the chinese stock market crash resulted in weaker retail sales here, that's what it was all about, not the all-powerful amazon, but i believe last year's mini bear market mauled the consumer. and this year it as bu oying things up. this year's back to school season is so darn strong. i've seen signs that consumers start to behave more like she did before the great recession. home sales are up. causing spending at home-related
stores because homes seem like a good investment. second, consumers have begun to trade up, which is how i believe the stocks of the dollar stores and zales have seen the stocks rising. i know about the disappointments. a once complacent walmart is coming out with guns blazing against the dollar stores, but other high-end chains are seeing improvement. hence the dollar stores. let's not overthink things here. if pvh's ceo comes on our show and tells us that things are
better for calvin klein and tommy hilfiger, we have to take that. now we're on the eve of yellin's talk in jackson hole. we've had another treat from hillary clinton yesterday calling for a roll back in drug prices. but it's certainly a reminder that election seasons and rate hikes could be a witches' brew for the bulls. yes, we can be prepared for halcyon days around here. barring an all-out attack by either presidential candidate on the stock market. be mindful that the stock market itself may be a more important conductor to the orchestra that is the u.s. service and retail-based economy than anybody thinks. and i believe the hallmark of the stock market right now is
resilience, which bodes well for everything from housing to retail to perhaps even the job market itself. lee in connecticut, lee. >> caller: yes, jim. in the past, i've heard you recommend the organic food company hane celestial? >> indeed. >> caller: but recently, han as you know has had accounting issues. the stock has fallen 26%. do you see the stock price t decline as a buying opportunity or given the accounting problems would you stay away from han in. >> i make no exceptions. accounting irregularities equals
sell. >> caller: welcome back. >> i've been back a couple days now. >> caller: i now. >> just sayin'. >> caller: hey, jim, i'm involved in two stocks, rdn and the timber company, what do you think? >> i like them both, but i have to tell you, after that toll brothers call and the home doept call, i'd rather own those. i think toll and home depot are the ones to own. they don't get enough credit. thank you for acknowledging that i'm back. i was looking at my second producer saying i was back at the same time, very helpful. ken in texas. ken. >> caller: i own shares of dow and dupont. if their mergers are true and they break up into two specialty companies, do you think they will be approved and which of the companies will be a great investment? >> i'm more skeptical than
andrew lib ris. because i think this government has decided that anti-trust -- i'm worried about the combination, i like dow more than dupont. i like the story about warren buffett, but most importantly, if the government blocks this deal, it would be just a shame, because there's a lot of competition in the seed business anyway. look, i'm not saying that fed chief yellin can't send stocks into a tizzy tomorrow. the stock market itself could be a far more powerful force. what do janet yellen and tim cook have in common? and then a necessity for people with is serious allergies. i'm cutting to the core of the debate around the drug. and leaked e-mails, the cyber attack, the nsa system being
breached. i'm sitting down with a private player to see how it's keeping itself secure and you too. stick with cramer. don't miss a second of "mad money." follow@jimcramer on twitter. have a question? tweet cramer, #mad tweets. send jim an e-mail to "mad money" @cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to "mad money".cnbc.com. hey, it's been crazy with school being back- so we're constantly going over our data limit. oh, well, now - all of our new plans come with no data overages. wow, no more overages? so that means... go on...say it...
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treated it the same way. investors aren't as bullish as they used to be in the company's fwl glory days. you should sit tight and own this stock, not try to trade it. i've repeatedly said that apple doesn't get nearly enough credit for its fast-growing service revenue stream. i think i was the first one to put this out there. the money they get from i tune sales, and the cut they get from every purchase in the app store of this service stream grew in a 19% clip, it could be as big as a fortunatee 500 company next y. it's massed more than $230 billion cash shore. there's a lot you can do with that kind of money to get your
business growing again. for years i've been saying that apple should go out and make a big acquisition if it wants to reinvent its growth rate. buy netflix, for streaming video, it is worth half of what it is today. and pandora, own that market, but pandora's nearly doubled from its february lows, and it looks like spotify's dead set on putting itself public. is so tonight i'm putting on my investment banker hat. i have a deal that would affect apple, not that either company has to do it, but it would make a lot of sense and i want to own them both. are you ready? ski daddy! apple should buy sirius xm. i just said it. why? because underappreciated sirius
xm would kill two birds, first the subscription service could boost apple's revenue stream, second, sirius would give apple a major foothold in the car! the infotainment space, which is the next frontier when it comes to technology. it would really brighten the outlook for the company's long-term perspective. this is what they should do. let's take it a little deeper. i think the case of snapping up sirius xm is compelling for you even without apple. so what can sirius do for apple or for you if you wanted to own it? for starters, there's plenty of life. sirius xm has steadily been growing its revenue around the 10% level. it with easily add $5 billion to
apple's revenue stream next year. second, sirius has higher gross margins, what they make after the goods sold than apples to. 60% for sirius xm versus the high 30s for apple. but sirius loses on the back end. one big reason for that differential, sirius has a ton of debt on the balance sheet. high-cost debt, but apple can easily pay down all that high-interest rate making the satellite business a lot more profitable. it's substantially more expensive than the average name in the s&p. not to mention way more expensive than apple itself which trades at 12 times next year's earnings. investors recognize it has this
fantastic, steady-growing business. its subscription-based model makes it easy to figure out how much money they're going to make down the road. but the real draw lies outside the financials. remember i said they should buy pandora and spotify? at the right price, buying either of those would let apple own the streaming music business, which leads me to the third and best reason that apple should snap up sirius tomorrow or monday. it would give them a leg up when it comes to owning the car business. it's pre-installed in nearly 75% of new cars these days, and their penetration rate could use a rise. it would be the fastest ways for apple to get its claws in three quarters of every car that rolls offer the assembly line. of course not everybody who buys these cars necessarily signs up
for a subscription. it's kind of interesting, right? apple music has just 15 million subs. so a merger would triple the size of the business overnight. catapulting apple past spotify's 35 million subscribers in the blink of an eye. this has not to be one of the stickiest businesses out there, low churn rate, been holding steadily at 1.9% for years. and just like that apple bill you get, oh, there it is, right? i've been on auto pay for sirius for years. you can create a must-own, one-stop-shop for apple's library from the cool howard stern to many live sports
broadcasts, including nfl. imagine how much better sirius xm's hardware would get if apple's design team getting to tinker with it. can you imagine? so can apple, the world's largest company afford to buy sirius xm in please, sirius has a $20 billion market. apple could buy it for a fraction of what it has on hand. put a 17% dent in the company. it can certainly afford 30 billions or $40 billion to get a foothold in the car with ease. i can imagine apple being a little squeamish about sirius xm, i don't think apple's too keen on the satellite business. it's pocket change. one thing that could make this deal difficult, sirius xm doesn't control its own destiny,
liberty media does. they own 65%. so any decision on whether to sell would have to come from john malone, their ceo. and given how sirius xm stock has been stocked below $5, apple could easily make him an offer he couldn't refuse, even if malone insists on making the deal. here's the bottom line, every six months, apple spends the equivalent of sirius's xm's market gap. they've got $230 billion laying around. they could give itself a foothold in the connected car. that's how tim cook can get investors interested in this darling again. especially since they could blow out the revenues that sirius is expected to make next year, which would force these doubting
analysts to put a hefty ral situation on these current revenues that they seem proud and smug to ignore. all right, much more "mad money" ahead. the average sales of the epi-pen, i'm get being to the heart of the issue. then the internet of things is making us more connected but increasing our threat of cyber attack. i'm talking with red seal. then i've not a way to keep your money rising no matter what the fed decides. we're playing am i diversified. stick with cramer.
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drug companies who just put through monster prices for its epi-pen simply because they could. i don't know about you, but i watched as my colleague interviewed the ceo of mylan. judging by social media, many were convinced that she is a heartless arrogant individual who pretended to sympathize and talked about the health care system. the consensus seems to be that she should roll them back right on television, giving americans the same low prices you can get in other markets outside the unit. to others, bresh is doing her job. no one's toppistopping her, and shouldn't expect her conscience to kick in if she's working at a
public company. these people say why should the government step in? howe else do we get these fabulous medicines. where do i come out? first, i have faith that the free market will come up with a competitive product that drive the price of the epi-pen down and big. i know this, how? because i've bought the competitor before the fda took it off the market. good advice. second, i'm against monopolies where there shouldn't be one. we don't let the utilities charge whatever they want. they're regulated. we endorse higher prices for drugs where the patient population is too low for the
company to take the risk of billions of dollars for something that there could never be a payoff for. they're almost all priced below the cost of care that a health unsu insurer would have to bear. then there's the gray area, where prices could be increased and the patient with a high deductible plan is getting hung out to dry when the price point is elevated $600 for a pair of life-saving epi-pens. we think it was trying to sneak in a few extra dollars until a competitor comes along with a generic alternative. so at least for the moment, mylan got away with it, and the big managers that are supposed to negotiate better pricing, failed to do so. mylan had all the coverage, what's the deal?
and therei in lies the problem. we have to hope the companies have a heart, so to speak, because there's really not much we can do, given the health care system we have, we're stuck with cajoling companies that put through unreasonable price increases. the real issue here is is competition, sadly, just because something's generic, and i know a lot of you feel this isn't true, doesn't mean there isn't competition. i take a particular medicine where there used to be a ton of competition, no more though, why? not enough money. so the company that makes the drug and the device used to deliver it is now a monopoly. the price per each use, despite the fact that the dose is less than $10 a shot, each shot is $125. given that i have to take 20 shots a month, that's $2500 a
month versus $200. insurers don't want to pay for it. if another company were to get into it, the price would plumm t plummet. i'm lucky enough that i can afford it. how about other people? i don't know. the bottom line, there's clearly a glitch in the drug system. one that requires more regulation or competition than we have. presidential tweets, they don't solve the bigger problem. joe in new jersey? >> caller: hello, cramer. >> nice to have you paback. >> i did this show from my garden. my question is on med nax. they're at a near 50-week low and a good pd ratio. is it a good time to buy ?
it seems like it's oversold. >> thank you for the kind comments, but i'm going to have to pass on that. i have to know more about that one. i just don't know enough about it to be able to make a judgment. i'm sorry. that's a hospital care, particular, particular kind of employment organization that i don't know enough about. i'm sorry. dave in illinois. >> caller: dr. cramer. >> yeah. >> caller: from the city of wind and home deep-dish pizza and italian beef, thank you for taking my call. >> absolutely. i just thought that the white sox are killing the phillies. what's up? >> caller: i did not take your advice -- deep decline weeks ago, recently, the stock has rebounded up 19% in july aloin
on a new ceo increased financial forecasts and a false rumored takeover bid, is it still worth -- >> geez, dave, it broke up there. what is the stock there? i'm sorry, but i didn't catch it. >> caller: biogen. >> yes, action alert, we moved out, and then the stock took a big jump. in this market, i think you should hold it. it goes below 280, the trust may get back in, i don't now. and then to the first question for joe on med nax. i think a better one is amn health care. the price of prescription drugs is a problem, but with less of a clear answer than you might think, and until we get serious about solving it with competition or, yes, increased regulation, i fear we're going to get more of the same.
anybody who pays even mild attention to the news knows that the need for cyber security has never been greater, just this summer, not only did the democratic party get hacked, but somebody hacked into the nsa, they leaked all the hacking tools that the nsa uses for espionage. that sounds like mr. robot. cyber security comes with its own set of problems. who watches the watchman? how do we know that the companies we trust with our personal information are doing enough to keep it safe? enter red seal. there's no stock, privately owned software, normally only talk about public companies on the show, i think this could be
the next frontier in cyber protection. it is an analytics platform that helps measure its customers' security. they even offer you a digital resilience score that's modeled after your credit score, like a f few-fico. let's take a look at the ceo of red seal. welcome to "mad money," good to have you. >> thank you. >> i was looking at your deck of the things you tell us. we see some of our favorites, nvidia, and fire eye and cisco. >> they have the best engineers
in the world, but they understand that the complexities networks need something extra cisco's been a customer for five years. >> they want to make lusure it' working, and you're the guy who tests it? >> in fact, cisco took us to rio, they were the rio network provider. they tested it, found problems, used red seal to fix it. >> that's a great thing that he did that. now we mentioned the dnc and the nsa. >> yes. i don't, should they have been able to spot the tough thstuff happened? >> they could have. they should have spotted in advance how the stuff could have got in there. >> and that's something could you have -- >> yeah, that's something we could have done completely. >> you know that. >> yes. >> i would have hired you.
>> there's an outfit today, it's weird what happens in our world shaworld, the stock world, and there's a stock called st. jude net. we're talk beiing about pacemak. hacking claims absolutely untrue, would it be better to say red seal says than st. jude says? >> we can verify that it's possible. >> you can say the short seller doesn't always know what he's talk about. >> he knows what he's talking about, but could i have helped st. jude with red seal figure out what happened. the u.s. government is a big customer of ours. you can't be perfect, there's no such thing as perfect protection. you got to understand where everything's nflowing.
>> so what goes into my digital resilience score in. >> first is configuration checks. you have all this equipment, it may not be perfect. we can assign that. vulnerabilities. that's what everybody talks about. you need to know where is it in the network. is it reachable from the bad guys on the outside? why spend all your time scanning and fixing a host computer that's not reachable. and the third thing is call the incomplete model. there's always a router routing out and about that nobody knows about. and when we go in there and analyze that router's capabilities we see it going places. firewalls all around. the firewalls are perfect. some executive said hey, by the way, i want this to route to my home. the executive moves on, the engineer moves on, it's
forgotten and we find it. >> then you're waiting for a call. >> no, but we have this very complicated software enterprise-grade software that analyzes large, large networks. we bring it down to one number, the digital resilience score, you'll narrow the three things. not only that, do we score it and give you a number. i don't know, if your credit score's 375, you probably have problems. >> right. >> so i don't have to explain what 375 means. >> yeah, easier than tech mumbo jumbo. we have those guys, but i don't understand what they're saying. i need a doctor to tell me, not blah, blah, blah, blah, but this is what you have. when green goes away you've got a problem. you're a ceo, every ceo should
ask them, how do they tell if their networks, but it got bad. he can come to work in the morning, make a phone call and say fix this. >> cars. >> definitely hackable. >> planes. >> i hope not, but i think they are. >> electrical grid. >> i worry, you know, people ask me all the time. i worry about the power grid. i'm an old nuclear engineer. electricity is a big deal to me and most of our infrastructure, not just the lights. everything. >> we have solved the notion that it could be pacemakers. >> it could be. >> that horrible scene in homeland was true. >> unfortunately, it is. >> you've taught us a lot. that's what we want on our show, ray rothman, the ceo of red seal. it's fascinating and dangerous, and it should be solved. m"mad money's" back after the
round! and then lightning round's over. are you ready, ski daddy. let's start with jerry in arizona. jerry! >> caller: hey, mr. cramer. i've got a two-part question. after earnings last week, goldmgol goldman sachs down graded the stock. >> the high-priced earnings have not fared that well. but maybe there's hope here. bruce in ohio, bruce. >> caller: boo-yah from the cleveland waterfront. >> nice. >> caller: crzo. >> i think chip johnson's done a good job. i like concho more than corizo.
randolph in massachusetts. >> caller: boo-yah, jim. >> boo-yah. >> caller: this is randolph. i was wondering what you think about kol advice oncology. >> i don't like to chasing the spike. it's got priority review for ovarian cancer, and i think that you have to be in it last week to be honest. let's go to hollis in florida. hollis. >> caller: yeah, how you doing, cramer? >> great. >> caller: i want to know if gi gilead is best of breed. >> i can't recommend it. let's go to pat in virginia. >> caller: thank you for taking my call, and thank thank yoyou the help.
horizon pharmaceuticals. >> i've got to tell you, this is the kind of company you can easily be in the cross hairs of a tweeting politician. doesn't mean that i think they should, but it could be. let's go to dave in new york. dave. >> caller: hey, cramer, how are you. >> i'm doing well, dave, how about you? >> caller: very well. i'm in fairhaven, new york, upstate new york. >> that's fabulous. >> caller: great place, great place. >> how about stock too while we're at it. >> caller: i have two of them, gwr. and nsam. >> genesee is a dekrcent railro. i would prefer union pacific. that is the condition collusion of the lightning round! >> the lightning round is sponsored by td ameritrade. that's a great idea, but why don't you just go to thinkorswim's chat rooms
where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade. well right now all our new plans come with no data overages. ...we'll finally be in control... and we're back... introducing new at&t plans with no data overage charges.
this week you heard me debunction the bone headed decisions some make during panics like the flash crash and the strategies you can use to avoid them, whether there's concerns about the fed, brexit, fwrexity, china, i don't know. you need to have a plan for when any of it happens. before any of that, the first step in panic is diversification. that's why we play, am i
diversified. i'll let you know if your portfolio's diversified enough or if you need to mix it up a little bit. we have one from jim frosty. g, lloyds, royal caribbean, am i diversified? and let's go through this. this is very complicated. we might know lloyd's, lloyd's is a prbritish banks. charitable trust owns it. lloyds can be considered a spec. boeing aerospace, royal caribbean cruise lines, and a health care stock, let's go with united health. some of these have been knock out, or know, al lergan. let's go to charles in massachusetts. >> caller: hello, jim cramer,
not only informative but educational, thank you. >> that is what we want. that's what the show, we talk about that in "people" magazine this week. >> caller: my positions are caterpillar, cisco, duke energy, ge and at&t, with all the dividends reinvested. >> see, charles, did you hear what he said is? all dividends reinvested. this is the best portfolio i've se seen for some time on "mad money." got general electric, nice yield, nice dividend, ceo, duke energy, good, i prefer dominion and, you know, candidly, aep, but i get that. cat caterpillar's go being to have a
better year. machinery company, diversified manufacturer and utility company. i really like that portfolio, and i love the yield, and yes, keep reinvesting like charles in massachusetts. eddie in north carolina. >> caller: hey, jim, thanks for taking my call. i need to know if i'm diversified. these are my stocks. home depot, pfizer, u.s. bank, dominion resources and emc. >> oh, kim, fofour out of five that. a utility i hi like more than duke. and u.s. bankcorp. what can i say? i s stick with cramer.
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i not a case for that cyber security company i just spoke to, red seal, it steals the ids of the living and the dead at 10:00 p.m. i got to watch this. a hlot of people are talking about the stock of chipotle bottoming. i want you to go on your twitter account and answer our poll that will be on later, about whether you see lines at your chipotle. dollar tree, dollar general, not yet, signet, no. i always like to say there's always a bull market somewhere, i promise to find it right here on "mad money." i'm jim cramer, i'll see you tomorrow.
>> trying to stay with curry. catches. one dribble. steps back, puts up a three. won't go! rebound tip taken by speights, final seconds. it's over! it's over! cleveland is a city of champions once again! >> i came back home to win a championship and energize northeast ohio. but in a place like cleveland, there's so much more work to do. >> 3300 acres of land sits vacant. almost 2% of the population has left in the past three years. >> to revitalize cleveland, we need to work block by block... >> straight up... >> and street by street. i wanted to invest my time and influence to create a movement that may strengthen our community and transform neighborhoods. >> i'm just like the underdog around here. >>o