Its because they are so darned righteous. And one thing i have learned in 35 years investing is that you cant afford to be righteous or dogmatic. You cant afford to be doctrinaire, or ideological. It will cost you money. You definitely cant be oblivious unless youre already so darned rich it doesnt matter how much money you lose. Yet, i see exactly the sort of righteousness displayed daily. I see the righteousness and i see the fellow traveler intolerance. Every single day in the stock battlefield. And i think its contributing to the fog of war thats causing people to accuse this bull market of bogus bona fides. On an almost daily basis. So in the interq u of opening peoples minds and showing you the biaser that masked by the righteous indig nation, let me show you why no one is champi championing the market. And why the moves can continue despite the haters. First you have to accept a notion thats more than one way for a stock to go to 1 to 20 or 100 to 200. More than one way. There are multiple ways that stocks move up. I believe thats a big part of the religiouslike intolerance towards certain stocks that we see going up every day many think theres only one way that a stock can go higher. What that one way . Take disney. The righteously indignant crowd want it to be solely valued on the Earnings Growth dividends and how they will vary over time. In fact, theyre intolerant of any other prizm used to value the stocks. Bob iger has transformed it from the wayward enterprise into a successful one. And not to mention more and bigger theme parks and a reliable slate of movies. So a company that used to be hit or miss has become a regular performer. Including the acquisition of pixar andc star wars that has e reliable sequels. Thanks to the new found consistency, disney stock now gets a premium to the average stock in the s p 500. That makes sense to everyone including the doctrinaire types i have been criticizing. Plus this is really important. Every time disney develops a new franchise, like frozen, and yes, i have done a frozen sing along and the darn melody is trapped inside my head right now as im doing this piece, you will see a growth spurt from the higher earnings that could precipitate both near terms and in the out years. Now the first bout of indignation. See, if it goes up too much, then the righteous purists, they dont like that at all. Theyre saying its going up because of the greater fool theory. Thats right. Theyre paying money for the disney, but they wont pay too much of a premium, in orders if it trades at 17 times earnings and they awarded a multiple of 20 times earnings, then theyll say were not paying 21 times or 22. Were not paying 23 times earnings and dont think that you can get away with it either. If you do, cfool. Theyre angry about the notion of whats known about multiple expansion because the ideologues say thats not the way its supposed to work. All youre doing is paying for the same level of earnings. Why is this so simple . The usual justification is simple. Hey, what did our mothers tell us . Youre having too much fun and then someone will get hurt. If an installation is changing for the better its becoming more profitable than i thought. Then i condone paying a higher price earnings multiple. Why . Because its my job to spot when companies have improved and because i put a Super Premium on superb management which is what bob iger has done with disney. So i will think that multiples can expand. Thats just the tip of the iceberg. The idealized get angry when professional Money Managers pay up and up for chipotle, michael koors. They think no stock deserves a premium because theyre stocks particularly when you oar paying in well in excess of the average of the hope of the accelerated earnings. The doctrinaire stocks said they did past tense to go higher. If the puritans dislike expansion they get furious. They get so, so angry. c when we Value Companies based on anything other than earnings. Some can accept we are going to Value Companies on an enterprise basis. If a company is motivated to restructure itself and they might bend a little. However, many went. They went through the normative price earnings model at all cost. Im not willing to sacrifice it on the altar of ideology. What drives them crazy, when you leave the realm of earnings alling to and decide to grade an institution on its ability to produce ever growing sales. Or perhaps a stable of new drugs that wont hit the market for many years. Like so many of the companies that i talk about and tell you to buy. These are the batter rams you have right at this moment. Thats where all the heat comes in. Take sales force. Com. Concur. Many of the other cloud social companies, many is based on theyre all being graded on sales growth. There are funds that will pay for it and thats what happened with camazon. It went from 2 to whatever, come on. If the ideologues can pass a law banning the moves they would. If there was they would put you in the stock jail for buying these. The purists they dont care that the stocks are making you big money left and right because they consider them apostates. Or agnostic to the current dogma. They refuse to accept that the kind of stock can make you more money than any other out there. Lefts take a step lets take a step further. The out and out atheism, which is to value it on the scale of the opportunity. Stocks like netflix, tesla. Amazon. These names are valued for what can happen. They are valued, yes on dreams. But per jeff bezos, the dream came true. This is nothing short of alchemy, its witchcraft. And they want to burn the ceos and the acolytes at the stake. Metaphorically speaking. These are salem stocks. There are some outliers. For example, the sales or facebook and google, when it turns out they were earning a huge amount of money and we didnt know. A duckling turns into the swan, like facebook going up to 70 in the blink of an ceye. When you hear about imminent crashes, remember that from time immemorial theres more than one way to value stocks and please accept that there are more ways to fuel a rally than just better than expected earnings. Once youre liberated, free of the dogma, you can at least see why the market isnt totally crazy. Im not telling you to buy into it. Its not totally crazy. Nobody involved in the stocks should be burned at the stake. Although a couple certainly deserve to be burned in effigy. Dale in wisconsin. Go ahead, youre up. Caller a big burr booyah from wisconsin. Whats going on . Caller yeah, i was wondering, with more and more states legalizing this marijuana, do you feel that Tobacco Companies will be players . And if so, what are your thoughts on the Philip Morris i dont think theyll be players. Im not a big fan of morris. I get my stuff from mainstreet. Com. Because hes done the best work i know on marijuana. They write about it every single day. I tweet a look jim cramer, but i dont so Philip Morris being part of the trend. Read his stuff. Lets go to ed. Caller cbooyah, dr. Jim fr florida. I always wanted to be that doctor all my life. Great at the age of 59 i am one. Caller you and your staff are wonderful. Thank you. They are fabulous. I dont talk about them enough. Because i like to hog all the glory. Caller anyway, jim, the reason why im calling you today, i have been i invested into this Company Called lnco. In fact, you had recommended it and i think its a great stock. The yield is a good yield at 9. 5 . I paid around 27 a share for it. Its been sitting around 30 a share, although last may i think it was around 44 a share. I want to get your gut feeling if this is a buy or a sell. Talk to mark ellis. I didnt like the last quarter. My Charitable Trust this is not a good investment for the Charitable Trust. I talk about the facebook or the google. But i dont talk about the bad one enough. This has been a bad one, but call in the show, lynn, and tell us why im wrong. Its in my head. The market, not the frozen. There are more ways to fuel a rally than just expected earnings so stocks, listen to c him. Hes not saying go buy all the crazy stuff. Hes just saying its hard to understand. Mad money will be right back. Coming up assault on aids. Its one of the most feared diseases of our time, taking over 36 million lives. Now, a breakthrough in biotech thats being talked about as a potential cure for hiv. Is it time to get serious about this . And later, all aboard. To energy, the outlook for american industry is on the rise. As business picks up, should you hitch a ride on the rails with csx or could concerns about coal and other big shipments put on the brakes . Plus, cleaning up on aisle 5. Forget about wall street. Your local Grocery Store may be the best way to find the stocks that could soar. Pinnacle foods is up 30 from the ipo. Are the brands you find on the shelf better off in your portfolio . All coming up on mad money. Invest in what you believe in. Invest in america. This monday, cramer hits the road to explore how the countrys Energy Renaissance has reignited manuficturing and pt people back to work. Get an inside look at the companys leading the charge towards energy independence. A mad money special, from the gulf, invest in america. Born on the bayou this monday. Dont miss a second of mad money. Follow jim cramer on twitter. Have a question . Tweet cramer mad tweets. Send jim an email to madmoney cnbc. Com or give us a call at 1800743cnbc. Miss something . Head to mad money. Cnbc. Com. [ male announcer ] help brazil reduce its overall reliance on foreign imports with the launch of the countrys largest petrochemical operation. When emerson takes up the challenge, its never been done before simply becomes consider it solved. Emerson. The small dollar stocks sometimes its interesting, its the reason i tell you to speculate on tiny digit stocks with small market caps, just because of what youre about to hear. Im talking about sgmo for you home gamers. Theyre at the forefront of c dnabased medicine. They can treat medicines by physically changing your dna. Your dna. According to the genetic therapy for hiv, it could be a functional cure. The stock popped up 17 today, on the news that the Genome Editing Technology was published in the new england journal of medicine and they had positive data at the conference today. I believe its a game changer and theyre more than a one trick pony. They have treatments for Blood Disorders like sickle cell anemia and other diseases. Thats it, the stock will give you a 145 gain 11 months ago. Especially its a speculative stock. Some critics claim that the current standard of care for hiv a cocktail of drugs from gilead is effective. Lets take a look at it with the founder and the ceo, well learn more about the company. Welcome to mad money. Good afternoon. How are you . Im fine. I want to get everyone so theyre not too excited the idea is that you have a platform that can be applied to a lot of dfoerent diseases. Including potentially hiv. Its not that youve got an hiv cure and people should get excited about it. Well, i think its both, jim. But youre right. What we are developing, we can physically and permanently engineer that gene and the goal is to focus that on genes where either disrupting the expression of the gene like were doing in the hiv program has significant therapeutic value, or physically repairing a gene where theres a mistake like in he mow fill ya or Sickle Cell Disease. Were trying to physically change the dna to cure the disease. Okay. On the cure for hiv, youre in phase two. So its not necessary that people who are right now taking a cocktail that is established are about to jump to your your genome editing process. Youre right, jim. Were in phase two Clinical Trials but ultimately if were successful, thats exactly the goal. The goal is to modify an hiv patients immune system in a way that his own cells or that persons ownc cells can track down the virus and try the virus so they dont have to be on any of those cocktails for the rest of their lives. Now, hemophilia, you have a partner here, so how do you make sure you dont run out of money . Well, were working with shier and they fund 100 of all the work. But sagimo is well financed. We started with 130 million in cash and because of those partnerships and our new collaboration with biogen in the air of Sickle Cell Disease we are guiding to ending the year cash flow positive with 135 million in cash. So were in a Strong Financial position, we partnered with some of the programs and we are taking forward some of the programs on our own. Youre in a competitive business. I was reading about another company they have a doctor at duke saying theres a way that zinc fingers which is your way is not as good as another system called crisper. Yours may take months and crisper ta cj weeks. If you can engineer the human genome and generate not treatment but cures this is an exciting space and theres a lot of interest in it. Our technology is the only technology thats been in humans. We have treated over 70 patients in the hiv space. I think crispers are fantastic. I think theyre going to be an incredibly powerful tool because of what you siaid. Theyre a powerful tool for research, but the key to human therapeutics is specificity. Targeting the gene you want and only that gene. Thats we have the complete monopoly on that outcome. We had thermofisher, thermoscientific, they told me you cant see this without right . I couldnt see any of it. Naked eye, nothing. Only really powerful kind spectrometers can see what youre doing. Is that right . Well, one of the real tools we use and theyre a leader in this basis, whole genome sequencing. Thats one of the reasons i can talk about it with specificity. Lets take a program were doing with biogen in the area of sickle cell. When we modify the one gene in a stem cell, we can do a whole gee gnome sequence of the stem cell and showc that its only that single site thats being modified. So youre right, none of us can see this work. But the instrumentation like those groups are incredibly important for what we do. Is there any disease that with dna, like defective dna so to speak you couldnt with this platform solve some day . Well, ultimately, jim, i dont want to go too far off the reservation here. Were focused now on clear socalled monogenyk diseases where theres a correlation between the gene and the mistake in the gene and the disease like sickle cell. Like the other diseases. Theres an unequivalent correlation between the mistake in the gene and the disease. And so thats really the lowhanging fruit for us. Ultimately, the technology is completely agnostic to the gene. So if we can deliver it to the cell, or deliver it to the organ for the right period of time, theres really no gene that this technology cant approach. I think thats why theres such broad based enthusiasm. The hiv program you referenced in the new england journal paper, the data at croix today establishes the power and the ability november this forward from a regulatory perspective. Discussed really highlight the general ralty of this. Its very exciting. Generality, thats the right term. When you read about it, they may have a cure for everything, no. It can be used widely that i think a lot of drug companies, they have to rely on your platform. No one has this gene editing that you have. Thats whats special about sagimo. I think thats true. And, you know, going back to, you know, as a company, were very well financed. And were in a great position to take this Technology Forward over the next 12, 24, 36 months. We expect to have four new programs in the clinic this time next year. Four more programs in the clinic the year after that. This is really what in the industry wed call an ind engine, that were able to very efficiently and systematically develop targeted genome editing therapeutics for genes that really have that have a cl r clear, unequivalent correlation with that disease. Well, its both exciting and practical. Im glad you shared it with our mad money viewers. Thank you for coming on. Thank you for having me. Thats the president and the ceo of csagimo bio sciences. If you hit it, ring the register on some, but you can hear, very exciting long term platform that can solve a lot of diseases. Stay with cramer. Coming up all aboard. From the auto market to energy, the outlook for american industry is on the rise. As business picks up, should you hitch a ride on the rails with csx . Or could concerns about coal and other big shipments put on the brakes . What are you paying every year for your Car Insurance . And whys your neighbor paying less . Youve been driving for what . 30, 40 years . Shouldnt all that experience be worth something . With the aarp Auto Insurance program from the hartford, all those miles are worth something. You see, the hartford has designed Car Insurance specifically for those of us with over 30 years of driving experience, and its the only Car Insurance plan endorsed by aarp. Because we group more experienced drivers together, we can lower your Car Insurance rates significantly. Wouldnt it be nice to pay 395 less when you switch your Car Insurance . And, if youre an aarp member, you could get even greater savings. If youre not an aarp member, give the hartford a call and join to take advantage of this program. Being an experienced driver with the ap Auto Insurance program from the hartford has other coverage benefits as well. Like if you get in an accident, the hartford wont drop you. Its called lifetime renewability and its free when you switch. The hartford also provides free recovercare. So, when youre injured in an accident, well cover the costs of things like house cleaning, Grocery Shopping and lawn care. And it wont cost you a cent. You may never know how much the woman next to you is paying for Car Insurance, but at least you know that the hartford has your back with an average savings of 395 along with benefits like free lifetime renewability and free recovercare. Switch to the aarp Auto Insurance program from the hartford today. Call the hartford at or go to thehartfordaarp. Com to request your free quote. Call the hartford at or go to thehartfordaarp. Com, and well give you this free calculator just for requesting a quote. Just this morning there was a bottom called and when i heard that i thought, well, that could be terrific use for the railroads which transports coal which is one of the things thats holding the group back. If coal is bottoming that could be a tail wind. And now im a big fan of the Rail Industry in this country. It only has four major players, not that much competition. Were looking at csx. The last time they reported back in january, the Company Posted a 6 increase in volume and strengthened other areas intermodal in particular. c and off set lower volumes in coal. The rails have their finger on the pulse of this economy too because they ship everything. I think agricultural cars, you name it. So lets check in with michael ward the chairman and ceo of csx to learn more about the company. Mr. Ward, welcome back to the company. Have a seat. I want to talk about coal and i was i was reading about the joy guys and they expect for first final in 20 years u. S. Coal production expected to rebound, in illinois. And when you read the things and read that natural gas went to 4, you have to believe theres light at the proverbial end of the tunnel and its not an on coming train. We are optimistic now. Okay. We thought domestic coal would level out this year. Wed be flat in volumes after declining for two years. But were now optimistic it will be a couple million tons up on the domestic side. You have easy comparisons. But this would be in addition to that. Yes. I know when Northrop Grumman got the compareson, it went up and. If you look, jim n the last two years we lost 800 million worth of coal revenue. As you alluded to earlier weve grown the other businwsses faster than weve lost the coal business. Lets talk about the other businesses. I think intermodal is a true growth story. And yet, you know, its up more than coal was down on a percentage basis. Wheres that business coming from . That, jim, is basically coming with us, partnering with Trucking Companies. If you look at it, theres a shortage of truck drivers. People dont want that lifestyle. You look at the highway congestion, environmental friendliness of rail, but what Trucking Companies are saying, let us get our drivers home to the families every night and put it on the rails in between. So right now, domestic intermodal, you say 550 miles is a place where we can compete. Theres another 9 million containers out there we can go after, so its a huge Growth Opportunity for us. Now, there are a lot of other products that people dont realize, that they cant ship them by truck. You have forest products. All up for the year. Minerals looking good. Then automotive. Youre in the heart of where they want to build more plants. Yes, absolutely. We are seeing great vibrancy there. 15. 32 years, 168 this year. And the average age of a car on the highway isc the oldest it ever been. A lot of our guys in the housing business are saying were nowhere near where we were building the homes. So do you see the continual kind of gradual Getting Better in the housing . We do. About 6 of our business is related to the housing business. Last year it was 930 new housing starts. Theyre talking about 1. 13 this year. Light right. Thats over 20 growth but normal is a million and a half. During the crazy period it was 2 1 2. Theres good growth this year but more room to continue to growth. All right. We have a Chemical Industry in in country affected by the great renaissance of oil and gas. You have a huge chemical business. How are you feeling about it . We materire feeling good. Youre seeing a renaissance in chemical manufacturing in this country. We are excited about it. One thing thats interesting. We have improved our Service Product quite a bit. Over the last two years, the economy has grown, 2. 3 . If you look at our noncoal business, 82 of what we do now we have grown that over 4 . So were almost doubling the rate of gdp growth. We think we can continue to do that. You talked about the idea of so much naturalc gas, maybe lo at the engines, and we dont know about the approvals. You were worried about safety. Since then, natural gas is not its up. But taking a look yet . We are. We have a partnership and were looking at can we convert some of if the existing locomotives to natural gas. Its tough, because you have to put some capital in to deploy it. Youre dealing with the differential of two fuels. You dont use that much diesel to move a train anyway. We dont. We can move a ton of freight about 450 miles on one gallon, so very fuel efficient. I wanted to ask you about, but i looked at the Facebook Page and ed wanted to ask about this to get vox there. I saw now hes telling you, listen, we have to move this stuff by rail. And the rail i see youre doing one to two trains from the bakken area to the Eastern Refinery as that bakken gets bigger and bigger. Youll do more volume for oil . We think it will grow on our lines about 50 this year. 50 . 50. 50. We get 100 car unit training. Pad one up in the northeast here its about a million barrelsc day refining demand. We think theres opportunity there. The intermodals is much bigger. Right. I certainly dont want to i thought it was interesting that you guys are very much in the mix they dont want to send it all to the gulf. Yes. That was important. Exports of coal. Where do you think theyre going . Because youre so involved in this. This is going to be a tough year. Yeah. Last year we did about 44 million tons. Were thinking well be in the mid 30s this year. The demand is down a little bit. The supply is strong. Wow. So the so the pricing is down. Thats a more volatile market as you know because its subject to world forces. Right. So thats a little bit of a head wind for us this year. The epa today, the house voted to block epa regulations on the coalfired plants. The epa said youll never build another coal plant in this country. Do you think thats possible . Well never build a new coal fired plant in the country . Even as the current regs stand there will be no more coal even whats interesting, in the cold winter that we have had, a number of the utilities are running to plants they planned to close because of regulations very hard. Right. So you have to question wheres thatc capacity going t be if we continue to put the pressure on the coal markets . Thats what our Utility Companies we have been talking to saying. Sometimes the train wrecks are in the news. I know you have a fabulous safety record. Its the first or second thing you bring up. Is it overblown or is there so much traffic by rail that its a percentage . Its pretty much the same and we shouldnt be overly concerned . I wouldnt use the word overblown, but first i want to brag for a minute. We were the safest last year. So we have a very, very safe record in moving the products. But when it does happen, it can be very serious. Right. So we are continuing to push towards zero. But were 99. 97 now. Were working with the department of transportation now. We have agreed on the oil trades for the bakken. Right. To slow the speed from 50 to 40 miles an hour. Were working to make whats safe even safer. What is he talking about safety up front, because its more important than anything. Absolutely. Michael ward. Look if coal goes tail wind, Everything Else is really hitting it out of the park. If csx goes higher, like the rest of the group its probably done. Stay with cramer. c invest in what you believe in. Invest in america. This monday, cramer hits the road to explore how the countrys Energy Renaissance has reignited manufacturing and put people back to work. Get an inside look at the Companies Leading the charge toward energy independence. A mad money special from the gulf, invest in america, born on the bayou this monday. We needed 30 new hires for our call center. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. Lightning round is sponsored by t. D. Ameritrade. It is time it is time for the lightning round. Well, thats a rap the stock sell sell sell. Then the lightning round is over. Are you ready, skeedaddy . Time for the lightning round on mad money. Why dont we start with dave in massachusetts. Dave . Caller jim, i want to say thank you, to cramerica, for all the great advice and insight you have offered over the years. Very kind, thank you very c much. Caller my son ralph gave me a suggestion a couple of weeks ago, jtat too hot. Its got the sapphire and too hot. Im not going to endorse it up here, very sorry. Ray in delaware. Ray . Caller booyah, jim, from delaware. And im asking you about con edison. Oh, another Solar Technology semiconductor thats way too hot. Listen, youre in delaware, i know this is going to bore you. But rather than that, i like dupont. Lets go to dave in massachusetts. Caller hey, jim, booyah to you. Fantastic show. Entertaining. Very educational. Dont forget great staff. Caller thank you for all you provide. Speaking of insight what are your thoughts on nycy insight corps . Oh, another smoking hot biotech stock. No, too hot for me, im sorry. This is too hot for me. Lets go to gail, please. Caller big guy all right, i continue to believe if you take a longer term view on whole foods, longer term, i believe in that theme in get rich carefully and i believe in it. Mark in maryland . Caller hi well, it happens to be the worst Defense Company in a group. This is an example of the worst house in an unbelievable neighborhood. It doesnt matter. I like lockheed martin. Lmt. Okay . And the ceo is welcome on the show. Lockheed martin, Northrop Grumman, lll and that, ladies and gentlemen, is the conclusion of the lightning round the lightning round is sponsored by t. D. Ameritrade. Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. A Research Tool on thinkorswim. Coach calls her a team player. Shes kind of special. She makes the whole team better. Hes the kind of player that puts the puck, horsehide, bullet. Right where it needs to be. Coach calls it logistics. Hes a great passer. Dependable. A winning team has to have one. Somebody you can count on. Somebody like my dad. This is my dad. Somebody like my mom. My grandfather. Im very pround of him. Her. Them. So our business can be on at ts network for 175 a month . Yup. All 5 of you for 175. Our clients need a lot of attention. Theres unlimited talk and text. Were working deals all day. You get 10 gigabytes of data to share. What about expansion potential . Add a line, anytime, for 15 a month. Low dues, great terms. Lets close new at t mobile share value plans our best value plans ever for business. Next time the market gets hit with a hideous across the board decline, i want you to have Pinnacle Foods on your list. You might not not have heard of them, but you might know them as mrs. Pauls seafood, celeste pizzas, hungry man frozen meals and they have a groceryc business. You know them as duncan hines. Maybe mrs. Butter worth and they acquire the brands and turns them around. We got behind the stock before it became public at 20 bucks a share a year ago. 41 gain since then. They reported this morning, laid out the incremental sales increases and Debt Reduction statemeat the same time. Maybe perfect for those who want a lower risk situation in the portfolio. With potential for excellent Dividend Growth over time. Lets check in with the ceo of Pinnacle Foods. Welcome to the show. Thank you for coming on and have a seat. You have a collection of brands we grew up on. But i think youre reducing the cost of producing it which is terrific. But also the change subtly, the freshness and organic nature of what originally when we were growing up. A couple of things you touch on here. First of all, our mission is reinvigorating iconic brands. We take other brands that people declare nonstrategic and we make them fresh and relevant. We drive productivity really hard. That gives us fuel to invest back into the brands to bring them to life through innovation andc marketing. That health an wellness trend is certainly clear in birds eye. Can you make it happen . In other words, like i see this is a farmers garden. This is much more natural and organic. From vlasic. But i see mrs. Paul, i see process, hungry man, process. Can you have the best of both possible worlds . Yes. Our single largest brands is birds eye. Over 1 billion in retail sales. I think were scratching the surface on the potential there. But within our total portfolio about 40 of the sales come from products whose primary ingredient is fruits or vegetables. We do not eat enough its good you say that, because theres a lot of debate about health and wellness is. Fewer than 10 of americans eat the minimum required vegetables in a day. So we see that as a tremendous opportunity to expand that consumption. And youre quite bullish about the idea there are potential targets out there. You bought wish bone. We did. One of the big gainers in the quarter. Yes. Ragu mentioned as being a possible for sale. Would that be something youd look at . Without talking about anything specific, let me talk about the criteria for an acquisition for us. Were looking for brand leaders. We dont want to buy distressed brands. One of the big factors we consider is how much synergy and productivity can we put into the brands to make them fresh and relevant. Youre going up against b g foods. Do you have the firepower to beat them or just say that you dont see them that much . Theyre buying a different kind of brand . We dont overlap with them. Where we go out and hunt for acquisitions, doesnt really have a lot of overlap. If you take a look at the size of the acquisitions that we have gone after. Now, i looked at your percentage thats Domestic Versus International and i realized why wouldnt this fly in mexico . Or in africa or asia but youre optimistic. In my past, ive run a global business. Right. But very few food brands travel internationally. There are a lot of opportunities here in the u. S. , let me tell you something. One of the signature parts of our Business Model that allows us to add value is probably one of the best in class overhead cost structures. If youre going to do that you have to be focused. We think theres a tremendous opportunity to leverage that into more cat negotiates categories, more brands. c given that you wont go crazy. Youll do it with cash flow. You bought wish bone and paid it down. This can be a serial grower of a dividend because of cost takeout. Acquisitions. A fair depiction . Very fair. Our cash flow yield is probably the highest in the industry. Right. That gives us a lot of optionality to pay down debt and pay a dividend which is an important part of the investor acquisition. I know the Food Companies dont have a lot to do with the government, but they cut down food stamps. I grew up on duncan hines. We werent buying in it. My mom didnt want to buy the big cakes from a fancy store so you bought it yourself. But this might be something that a food stamp cut back would hurt. You know, the best we can tell in the industry, the snack reductions is about a 1 head wind. Thats all . Across all of food. There are some in the farm bill theyre talking about additional cuts to come. It cuts across the industry fairly evenly so were not seeing any disproportionate impact to it. But lets be clear, the American Consumer is challenged and the industry has had a challenge growing. Thats one more head windc out there. We know that the supermarket has been challenged itself. Are you in enough parts of the supermarket not price oriented . I think we are. The supermarkets still general rate almost threequarters of food sales in total. Okay. Theres some shift in where the growth is within channels of course and you have talked about them here on the show but we have wide representation. Were in 13 different categories. Yeah. Our opportunity is to take a lot of the trends that you talk about in terms of natural and organic and bring them to the average American Consumer thats who were selling to. Duncan hines was one box, red box. These are your new creations, these are yours since you took it over . These are all recent introduction, we did a red velvet cupcake, voted to be one of the best new products of 2013. This is your special cake with your face on top. I know your license fee is very, very high for that. But our opportunity is in all of these categories is to go from what used to be a box of devils food cake and add a lot of value with all of the great varieties. Well, its working out good. It is. This is an iar 401 k stock, it wont shoot the lights out, and not for everybody. This isc the kind of solid sto that i like. The ceo of Pinnacle Foods. Mad money is back after the break. Save you fifteen percent or more on Car Insurance. D Everybody Knows that. Well, did you know pinocchio was a bad motivational speaker . I look around this room and i see nothing but untapped potential. You have potential. You have. Oh boy. Geico. Fifteen minutes could save you fifteen percent or more on Car Insurance. Lemme just get this out of here. To go. Unlike some places, we dont just change your oil. Our oil offer comes with a fourtire rotation and a 27point inspection. And everything looked great. Actually, could you leave those in . Sure. Want me to run him through the car wash for you, too . No, no, i cant. Get a dexos 1, syntheticblend oil change, tire rotation, and inspection for just 39. 95 or less. Chevy certified service. Theres a terrific feel good story developing in the news this week and its encapsulated by the New York Times lefthand column u. S. Hopes boom in natural gas can curb putin. Yeah. Just one problem. The story is not at all realistic. Its very cynical. Our government is not doing anything to speed up the building of the facilities and the idea that the state department can do anything to accelerate the timetables fast enough to impact the g geopolitical events its fanciful. While we have a glut of natural gas here in america, we literally burn off more of it and Oil Exploration process than we use to heat our homes, the fact is we dont have any of the infrastructure needed to ship liquefied natural gas. The only form it can be transferred and id be shocked if we have more than one up and running by the end of the decade thats the facility being built in louisiana. By the way, well be doingc m money on the bayou monday. I have been a huge fan of his company and beiepdz the terminal under construction. Ambidextrous because it was meant to export but it didnt happen. The whole reason why sue i can has been able to build this facility is that the natural gas the exports are already spoken for. None of the utilities are dependent on the russian gas. It is true that both the british and the spanish utility have locked in some of the natural gas, but Neither Company uses gas from russia. The other is taken to south korea and it cant go to europe that needs it. That wont be solving the geopolitical tensions and that is the only plant that will be ready for the period. And the other train is not yet booked by putin or anyone else for that matter, but i dont expect the second facility to start shipping until by 2018 at the earliest. The one remotely close to export to europe is the one that dominion is retrofitting into again though, i highly doubt it can play a role in the ukraine mess. Why . Because its just too far away. Although the stock of dominion letter d is a bargain for certain. Everything beyond the projects from dominion its a glimmer in the eye or a pie in the sky. Dont expect any meaningful effect of natural gas to leave this country until 2018. Feel good about it being a weapon against the russians, but it doesnt add up. In fact its ridiculous. Its ridiculous that it is being taken seriously by someone. Put it in the too good to be true file and dont worry about it. Im sure putin isnt worried about it either. Okay, no dogma. What do i mean by that . Im not saying listen, i want you to buy tesla or solar city. Please understand that there are many ways to value stocks and you may think its not right. But its not illegitimate. Its not something they should be put in jail for. Its just another way to make money in the stock market. Like i say, theres always a bull market somewhere. I promise to find it here on mad money. Im jim cramer. Ill see you tomorrow. c president obama keeps the pressure on vladimir putin. As he imposes visa bans, pushes for other sanctions and denounces a plan in crimea. We have the latest to get putin to stand down. Also, a late break, bad news for obamacare. The Washington Post reports that just one in ten of the uninsured americans eligible for obamacare have signed up. 90 of the very people this law was created for arent buying. And were just over 13 hours away from the big february jobs report. Were going to get you 100 prepared for tomorrows release when we talk to a top ceo and our panel of money experts. All those stories and more coming up on the kudlow report