Im going to take advantage of it, because im trying to make some money around here. After an amazing week but a hohum day where the dow dropped 16 points and the nasdaq gained 0. 3 , i want to talk to you about buyable dips, google and ibm. You might think im sticking my neck out. What i am saying im doing is introducing the notion of longterm opportunity. Its not a copout. First off, we know google and ibm both disappoint ed people last night. We know that because they went down after earnings. Thats what happened. Its undeniable. In the trading world, a stock that goes up after reports is a good stock. And a stock that goes down after reports is a bad one. Pretty simple. Thats because anyone who bought the stock for the quarter, in other words, people are expecting upside surprise, simply got it wrong. In the world of trading you buy a stock for a catalyst. You sell no matter what, good or bad. Thats discipline. Having the discipline to recognize that you bought something for a trade and it just didnt pan out. But investing, which is what im trying to teach here, is quite different. It has a different set of rules. Plus a different mindset. Investing is not catalyst driven, its not about trying to predict the quarter and scalp a few bucks. No. Its about longterm decisionmaking when you were given a chance and even though the chance may seem scary, you have to take it. Which brings me to google and ibm. Any trader knows that google and ibm failed as trades last night, that is unless you were shorting them because they both got hammered. However, if youre an investor and trying to catch not just a few points but something big, meaningful, you have to buy, not sell these two stocks, counterintuitive . No. Listen. Lets start with google. What did cause it to go down . What was googles crime . Simple. It missed wall streets estimates. A company that misses estimates is a company that immediately gets put in the penalty box, immediately as in that minute. But understand something. Unlike most companies, google doesnt actually help the analysts make their estimates. Most companies do. Most companies provide guidance on their conference calls. Right before management takes questions, they outline how the companys earnings and revenues will likely be for the next quarter and the next year. Google, however, is a rare bird. It doesnt give guidance. The only other Major Company i follow that doesnt give guidance is berkshire hathaway. Warren buffett wants to win long term, same with google. Which is unlike the vast majority of companies you hear about, when google misses the numbers, its far less important than pretty much if any other company did the same thing. Thats because frankly, the analysts are clueless about what google can really earn when they try to get the numbers. Its not like they missed their own forecast. They dont make forecasts. The number that disappointed was only disappointing in the eyes of the analysts. Now, you might wonder who else matters in the process other than analysts. Big deal, jim. All that matters was the analysts. Thats where i can help you. The Portfolio Managers themselves matter. They look at google. In a couple of days they wont be looking at it in the vacuum of the internet sector. No, Money Managers will look at google versus all the other stocks in the s p, all the other stocks they own. Theyll see theyre missing an opportunity to own a company thats growing, remember these numbers, theyre going to be important, at a 19 clip yet it sells for 17 times next years earnings estimates. Remember how Money Managers value stocks. You always have to go back to this lesson. Make it an apples to apples comparison. To do that, they look at the price theyre paying up for the companys future earnings, also known as the pricetoearnings multiple. They pick googles growth rate against the companies that they currently own. Lets make it easy. Suppose a Portfolio Manager owns cocaco cocacola. Coke is growing at 6 . Whats the price to earnings multiple . 20 times earnings. Go back to google. Weve stipulated that it sells at 17 times earnings. Lets see. From the Portfolio Manager perspective, hes paying 20 times earnings for 6 grower like coke. When he can get a company that grows three times as fast for 17 times earnings, a discount. Many Portfolio Manager will be unable to resist google and will easily sell cocacola to pay for it. Not today. Its too ugly. Take panera bread, a 13 growth rate, sells for 24 times earnings. Why own panera . Google, these are just two growers. Why own panera when you can get faster growth from google. Kellogg grows at 5 but trades at almost the same multiple as google. These Portfolio Managers will wait until the smoke clears, the stock settles and theyre likely to sell a kellogg for a google. The fact is on a growth basis, google is cheaper than any almost anything in the s p 500. Believe me, in a week, most Portfolio Managers will forget google missed the analyst numbers and instead be saying thats too cheap to ignore. Thats how this terrible trade, terrible, turns into a terrific investment. But you might say what happens if google keeps deteriorating . As missing the analyst number applies . Its not deteriorating at all. Theyre spending a lot of money to promote future growth, something you want the company to do. You want your company to invest in future. Not all should be buying back stock and giving big dividends. Wasnt that was wrong at microsoft, hewlettpackard, dell . I think so. Yes but arent they being crimped by the desktoptomobile revolution . I think google has the best mobile product out there. I trust management when they say they have a game plan to make more money from mobile than desktop. You have to have patience here. Do you . If so, i think google is a fantastic investment, at a great price. How about this ibm, wasnt that a miserable quarter . No revenue growth. Revenue declined, right . Suspect cash flow. Miserable earnings that seem to be made by the skin of the companys teeth. The house of pain. Doesnt ibm has to be sell, sell, sell. Yes. If you bought it for a trade. Absolutely not if youre looking for a value stock based on next years earnings like Warren Buffett who is a big owner. Next years earnings will by this Time Next Year ibm should be hitting the mark because of the change at the company. If you wait until next year, the stock will be too high. It didnt turn around this quarter but i think it will. You have to get in on the weakness, even though you might hate ibms current configuration. Buy it now when its on sale. Google and ibm, two trades that went bust. Two investments that can now be started at excellent discounted prices. The bottom line, one mans trash can be another mans treasure. Provided that the first is a trader who only cares about the here and now and the second is an investor who cares about the future. Nick in new york, nick. Caller hey, jimmy, how are you . How about you, partner . Caller thanks for your insight and sticking up for us little guys. Thank you. Caller the voice of reason, all this crazy volatility, my question relates to b g foods. Its featured on your show. I bought it at 12. What is your advice now based on their recent quarterly result which is are shy on earnings . Right. Thank you for taking action. Thats my companion product that i do with my charitable trust. B g foods i felt was an attractive idea. It yields 4. 3. Was it a perfect quarter . Absolutely not. Is david doing a good job . Yes. Take out the invested capital, let the rest run. I think we helped you a great deal for b g foods. Thank you for what you are saying about the little guy. Dubravka in massachusetts. Caller i am here. I have question about zebra. You recommended it a couple days ago. It dropped like a rock 10 . I like to know, do you still believe its good or not . Oh, yeah, its real good. Sometimes the stocks dont do what theyre supposed to do. It went up 8, reversed 8. I think buying that Simple Technology business is a terrific business and youll hear much more about zebra from me within the next two weeks. Lets go to madelina in new york. Caller hi, jim, how are you . Im real good. How about you . . Good. Caller thank you for taking my call. I enjoyed reading your book. I have a question for you considering cldx, celldex therapeutics. We rated that our great previous analyst ted graham pointed that stock out in the midteens and we caught a double and left it and we have not looked back. I have not looked at it because it was a trade, a specler stock. It was done and im not looking back. Im sorry. One mans trash is indeed another mans treasure. Case in point, google and ibm, trashed by the traders, made treasure for the investors. Dont go anywhere. I have an exclusive with the bank that has had the best performance of any bank we follow. Fresh off earnings. Plus, there are concerns about the company that keeps the lights on in new york. Im checking if the future is still bright for con ed and the white hot utilities. To get a read on the economy, sometimes you need elbow greece, snaple and tools, coming up next. Dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Tweet, madtweets. Send jim an email to madmoney cnbc. Com or give us a call at 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. Forget about all the problems we have with the stock market. When you look at the actual companies, especially the ones that benefit from the improving economy, they are doing pretty darn well. Take snapon tools, sna, maker of tools they mainly sell to auto repair shops. Through 3,500 vans in the United States. They sell to agriculture, construction, mining, Power Generation clients, have a bountiful european business, some asian. Snapon is a nonstop innovator creating new tools and diagnostic systems to make work easier for professionals doing critical tasks. The company just reported this morning and they earned 1. 62 a share, an 8 cents over year. In particular the commercial Industrial Sales rose 9. 1 driven by a fabulous surge in the european segment. Stocks has given us a 23 return since we spoke to the ceo last july. It has more room to run even if todays 3. 38 rally. Lets take a closer look with nick pinchuk, chairman, ceo and chairman of snapon to learn more about the quarter and the prospects of the company. Welcome back. Great to see you, jim. There were only 28 stocks on the s p that hit an alltime high. Yours was one of them. Right. I think its because you innovate even with such things as wrenches. Correct. Thats the thing. Snapon is a type of company thats actually a technology company. It innovates based on a practical understanding of the workplace and is associated with technology. Take this, for example. We can talk about a wrench. This is a tech wrench. It has to do with measuring torque inside an engine or inside an aircraft, an aircraft frame. It is the state of the art in terms of measuring torque and getting the right tightening for the critical task that take place in those places. You had this for automotive and it also goes into aerospace. Sure. One thing about snapon is its been an Automotive Repair company. We with realized that snapon means a lot to any professional as long as they are performing critical tasks, the need more repeatability and reliability is important. They have to perform with certainty. Thats aerospace, oil gas and aviation. We apply technology to that. For example, not shown here is one of these things where we have a smart toolbox. One of the big things on an aerospace line is dont lose a tool in the engine. Sounds like crazy stuff, right . A screwdriver. No dont leave the forceps in surgery. Exactly. We make a box that uses Imaging Technology that tells you, boy, jim cramer took out screwdriver a from door a and hes working in bay 6 on engine two. Before they button up, it checks the box to see if he returned it. Thats great. Thats driven growth. Cni was up 10 in revenue. Double digits. Its driven by the extension of critical industries. People value snapon. We have technology and insight to bring them. A lot of people felt you shouldnt be moving into europe or maybe try to minimize europe because europe was bad. Obviously they were wrong. Right. We have established a business in europe. I mean, i have welts on my back for europe. Last time i was here france gave me a headache. I didnt want to hear the word france. You said it. France is up now. Germany, spain is up now. The thing about this now, we spent a lot of time not taking down productive capacity. Right. Everyone told you to do it, though. We had faith it was coming back. We knew the customers were still there. We improved the efficiency and productivity. Before the revenues started coming back profitability was getting better. Now the revenue is coming back so were getting a double dip, both profitability, efficiency and leverage. What did you learn in terms of what youre going to do in asia . Well, the thing about asia, if you think of china, United States they both buy big cars. Yes. A lot of new cars. A lot of people in china. A lot of new cars, a lot of people in china. The u. S. Market a lot of cars on the road already and they are old. Yes. China, 11 1 2 years old and 300 million on the road. Despite the fact they are selling new cars in china there arent many on the road and they are all new. The repair wave is just starting. I lived in asia for 11 years. One of the things i learned is that you have to have the physical capability to take advantage of this. What weve been doing is building those physicals. When i arrived in china nine years ago, shanghai, the only people who worked for snapon in a city of 50 Million People came with me on the plane. How many years ago . That was eight or nine years ago. Came with me on the plane. 1,500 people, 31 offices, a design center. 700 distributors. We are building physicals because the wave is coming. Lets go back to oil and gas. Sure. We have been visiting the sites. We were on an oil rig off the coast. We were in utica shale, north dakota. You guys are there now . Yes. Were starting to grow this. Part of the snapon base is technology. But also an understanding of the business. We understand Automotive Repair very well. We have guys that can tell you why a mechanic takes his rag out of his pocket with his right hand instead of his left. Really . Is it an algorithm or something . No. They understand the work. The customer. When we visit oil and gas sites we see people welding things together that nobody makes a tool for. We are making them and starting to build business there. I love the people at stanley, black decker. They are terrific. Theyre not doing that. I love them, too. Its a different business. Different. Different business. Retail based business. They are professionals. Different business. We are based on criticality. The need for reliability. Nothing can fail like in aerospace and mining. Were based in technology. Take this thing here. This is a diagnostic unit. You plug it into a car and it give you what the car is saying in terms of the fault codes. It shows you the cars heartbeat, allows you to make the car run through tricks, sit up and do dog tricks. This one allows you to go to the internet to get special database. We have a database which we use our field information and we can tell you exactly if a honda is at 56,000 miles and it has these symptoms, heres probably whats wrong with it. You will get it through this device. High technology in an area which is increasingly dependent on high technology. People dont think of it that way. Its interesting. You are the only industrial and Technology Stock that hit an alltime high today in the s p. Now people know why. Nick pinchuk, chairman and ceo of snapon. Im sure you understand why i think this is a great company. Stay with us. In market thats gotten far too exciting for comfort todays hohum session notwithstanding maybe you need boring stocks like utilities which performed well in the past month. One of my favorites is consolidated edison, con ed, as you know it. You own the utility because it is low risk. Con ed is about as low risk as it comes. The company owns the largest under ground electric system on earth dae signed to supply the most densely populated city in north america but heres the thing, they dont own any Power Generation facilities. This is a wires company which means they are immunized against epa action. They are protected from rising commodity costs like the rally today. They have to face infrastructure issues and thats daunting for a utility. Con ed got slammed today. Falling 1. 09, almost 2 . Yearold is 4. 5 dividend declared today. They have been treating the stock as a fixed income alternative. When bond yields striked that made them look less attractive by comparison. The company has a lot going for it. Since we first had ceo kevin burke on the show in april 2009, con said has given you a 7 return after invested dividends. Not bad. Far less than gains in the s p 500 but thats good when you sacrifice upside and go for comfort you might fall behind the market. Doesnt mean you didnt get the dividends and live comfortably off them. Lets dig deeper with john mcavoy, the new president and ceo of con edison. He took over in january. Welcome to mad money. Nice to see you. Have a seat. Thank you for coming on. Pleasure to be here. You have challenges and Technology Working for you. I wanted to show people my electric bill spiked, ive got to tell you. Im convinced that if i had been sensitive to what my appliances were doing i would have saved money. You have a new device thats a cool stealth only the play with honeywell. How does it work . Im one of the few ceos that will tell you how we try to help our customer use less of our product. Thats what we are doing with our Energy Efficiency programs. These are two of the devices we roll out to our customers. This is a wifi thermostat, used for a central air conditioning system. There are 400,000 of those in our territory. We partner with honeywell. There are others available in the market. Many have that. The device here is the one thats unique. In our Service Territory we have over 6 million window air conditioners and you cant use a central air thermostat with that. We partnered with a Company Called think eco to develop this device called the smart a c modlet. You plug in the air conditioner here, plug this into the wall. It connects to your wifi system and you can use this, when youre in the home, to control the tell temperature. It connectses to your smart device. Your android, ipad, iphone so you can set the program for the air conditioner and change the temperature in the room from wherever you are. Lets start with the presumption you just said. Wait a second. Why would someone want to sell less energy . Isnt that how they make their money . We are a wires and pipes company. Our revenues are decoupled from the amount of sales we have for our electric and gas systems. It allows us, puts us in a position to help customers become more efficient, use less product, save money and also help the environment. David cramer was here, nrg, hes aggressive and buying companies that allow us to put solar on our rooptops. You can do that. Should i call you if i want solar on my roof in this area . We are not installing rooftop solar but we can help you integrate it into the system. Conversion into system. Thats right. We think thats an important role. We try to make it easy for the customers as possible. We want to facilitate that so the customer can make any Energy Choice they want. Is there incentive to do it . There are incentives from others. We dont provide an incentiveful there are state and federal tax incentives as well as rebates that are offered. We are a big player on the unregulated wholesale solar market. You are the fifth largest player in the country. Right. We have about 400 mega watts of solar production. Some in the southwest, some in the northeast. It allowed us to take the power experience. We dont own the plants anymore. Apply it in a new way and do it in a way thats renewable and environmentally friendly. Let me ask you. Youve got new technology, solar. You are also saddled with an older infrastructure. We have tragedy, unrelated to money here. We have the east harlem, terrible incident that occurred. I presume you have a big maintenance. You have an infrastructure from a long time ago. What do you do . How much money can you really generate to make the infrastructure current . We have a very aggressive infrastructure renewal program. We put 2. 5 billion into the electric, gas and steam systems each year. Each year . Each year, 2. 5 billion added into our systems. Wow. Weve developed some pretty advanced place to put the money based on equipment performance, historical trends, ambient conditions and usage to get maximum benefit for every dollar we invest. Is it possible to cut down on the terrible incident we had . Jech so. Part of our Infrastructure Investment strategy includes significantly Risk Reduction as input. The incident in harlem is a terrible tragedy. We are working closely with the ntsb, National Transportation safety board to identify the cause. We looked at the cast iron piping and the new plastic piping as well as water mains in the area. Im confident well get to a place where we understand the cause. In the meantime we have been working to support the community and people affected by the tragedy. And working to encourage customers that if you smell gas, act fast, leave the area. When youre in a safe location, call us, call 911, call 80075con ed and let the experts respond. Last time mr. Burke was here in may 2012 he said we have 7,000 buildings that are using oil. Oil is 105. How have we done at that . How has con ed done in terms of reducing the number of buildings using that inefficient fuel . We are changing out 800 to a 1,000 buildings each year. Driven by the Price Comparison we are getting buildings to switch from number two oil. Those are large buildings. The one to four family buildings, 1,500 of them convert every year. Its a triple win. Its better for the environment. It saves our customers money. It improves the operation of their equipment. Excellent. I think if you want a safe dividend, youve got the best record of any of the utilities. And consistency. I think youve got it if you own con ed. Thank you so much. John mcavoi from con edison, new ceo and president. Sometimes its good to have something. Stay with cramer. [ banker ] sydney needed some Financial Guidance so she could take her dream to the next level. So we talked about her options. Her valuable assets were staying. And selling her car wouldnt fly. We helped sydney manage her debt and prioritize her goals, so she could really turn up the volume on her dreams today. And tomorrow. So lets see what we can do about that. Remodel. Motorcycle. [ female announcer ] some questions take more than a bank. They take a banker. Make a my financial priorities appointment today. Because when people talk, great things happen. Market commentator for the street. Com. Now also for cnbc. Jim cramer. Hey, mark. How are you doing. We have to put up with you twice a month. I wish it were more. You know that. Come on. I wear this on my sleeve. Quit kissing. Thats kernan. Have i professed my love of squawk . That was mark. Miss mark every day. Cnbc turns 25 today. I think this is a terrific moment to reflect on how business has changed over that period. How we have changed wit. First of all, when the network was born i counted myself among skeptics. The Financial News network when i first started managing other peoples money out of my dorm room at harvard law. I thought it was useful. Until then you had to call brokers to get information about how stocks were trading. I did watch it for the tape. That ticker thing in the lower third of the screen. Much more than for the information. I wanted to get a feel for the action the way the day was going. Nothing tells the tale like the tape. I went to Goldman Sachs after graduating from law school. I thought i would have been fired if i suggested watching fnn. I had the machine that brought me the information i was supposed to need and the dow jones news tape which gave you the Corporate News but it didnt start until 7 00 and it ended early. If you were a stock junkie when you got home you watched the nightly Business Report on public television. By the way, thats still worth watching because its produced by cnbc. You could watch the National News see where the dow closed. That was it until the wall street journal came out the next morning. When i left goldman to start my hedge fund in 1987, i brought along the same tools i had at the brokerage. A couple years later i heard people talk about the network. They were breaking news, talking about stocks in a creative way. Talking to ceos. Back then the requested of having a television in your office seemed like the height of absurdity. Youre supposed to be working not watching tv. I would dismiss anyone watching tv at work. How could i put one in . Two years went by after our networks birth and i realized i had no choice. Cnbc was a realtime newspaper, a living, breathing organism. I was tired of hearing about stories secondhand. I had to beg the landlord to wire the place for cable. One of the reasons i ultimately moved my office is because he wouldnt let me have my cnbc. Not long after i was mesmerized by particularly the anchor work done by the late great mark haines. I talked to the screen driving everyone crazy yelling he should be doing this or saying that. Next thing you know im screaming at him in all caps saying how hes getting this wrong or should emphasize that news right up until he finally answered my emails and said it was time for me to shut up or put up and be a guest host on squawk box. He put me on the air. Life has never been the same. All my years spent as a guest host on squawk and kudlow cramer. Followed by nine years here at mad money. I know for sure this has made an impact. We are indispensable not just because we are on pretty much everywhere but you ignore cnbc at your own peril. Business news is too important for tomorrows paper. When the paper arrives its been overrun by events, events this network covers in realtime. We all do our part. Breaking news, making judgments, teaching all to help you make money without fear or favor. Im proud of what we do at the network and what we have carved out on mad money to celebrate business and hold people accountable for what they do. Its been a terrific run. Im thrilled to be a part of it. Thanks for taking us into your office, your hotel or your home. Unlike when i got started in the industry, these days, i think its fair to say, if youre in the money business you dont get fired if you dont watch cnbc. It takes a lot of great people to keep a network thriving for a quarter century including a voice you hear every day on the show. But never get to see. Were changing that tonight. Ladies and gentlemen, jim bursall. Thanks, jim. Thank you, cnbc. Stay tuned, cramerica. Well be right back with the lightning round. Booyah good evening. Im jim cramer. Welcome to my world. We call my world mad money. I want to help make you rich. Really rich. What is mad money . Its that little bit of extra money. No, scratch that. Its a lot of extra money. You can make it by making the right investments. No, that wasnt a puffy shirt. It was a puffy guy. Anyway. Can you believe i havent aged at all . Maybe i look a little bit younger, frankly. Not really, but anyway this is in honor of cnbcs 25th birthday. We want to remind you how handsome i was when mad money premiered nine years ago. Back to business. Now it is time for the lightning round on cramers mad money. We play this sound and the lightning round is over. Are you ready . Time for the lightning round. I will start with sean in iowa. Sean. Caller hi, jim. This is sean from iowa. Nice. Caller black rock reported today. It shouldnt have reversed. That stock was up, going up. I want to buy it. Theyre doing a real good job. Tyler in my home state of new jersey. Tyler. Caller from the garden state, jim. Good to be on your show. Hologic. Me no like hologic. They havent delivered the goods for many years. Ges Health Care Number wasnt that good. It was a nice cop to hologic. From california, jalal. Caller hello. Cramer, thank you for taking my call. Of course. Caller my question is about sunedison. I want to know your opinion. Im negative on sunedison. This could be the right way to go. I like first solar but sunedison has game. I like it. Im going to dominick, also my home state of new jersey. Dominick . Caller jim, how s it going . Going okay. How about you . Caller going okay. So my question is on mankind. Its had a Good Committee meeting with the fda. They still need approval but i want to get your thoughts. I think mankind is a cold stock. If i Say Something negative i cant go to twitter for days. All will be in the feed is what a jerk i am. I think the new device, i wish them luck. I dont know how big the device will be. Thats all im going to say. Because im critical and skeptical. Now to fred in ohio. Fred. Caller hi, jim. Fiveyear listener. Love all that you have done for us. Thank you. Caller my question is paccar. There is a bull market. We know a lot of companies are talking from alcoa to many of the companies that reported today. I think youre in great shape with paccar. Pull the trigger. Christine in pennsylvania. Caller this is chris, but my grandsons call me boo. I have a boo, hoo, hoo booyah for you. I bought whole foods at a lower cost basis than you guys at action alerts. I want you to tell me its going to turn around and go up. Otherwise whole foods will lose a customer. Because i will have a heart attack. I am shocked in this decline with this stock. Action owners has a small position. Wanted to buy more. Stephanie and i know there is competition. Walmart is coming in. These guys are good and the stock has been straight down. We are taking a pause, trying to find the right level to buy more. We are obviously not there yet. I feel your pain. And you feel my pain. This is a tough one and i dont have an answer about why it should be this far down. Not yet. I feed to go to james in texas. James. Caller howdy, cramer. Or booyahs as you say in cramerland. Thats right we do. Caller action alerts subscriber. Started listening to you in bulgaria. Bulgaria. They have a king there. Caller yeah. Mark haines recommended i listen to cramer. Ive been following you ever since. Thank you. Caller do you have a view on isis . Up to the mid 40s, sold it. I was wondering the if its time to get back in . Look, the biotech stocks havent found their footing. The btk is one of the biggest danger zone areas in the market. That said, this stock has been cut in half. I think there is real value to the situation. Remember, we have not reached a bottom yet. They keep pumping out new biotech stocks. Thats the problem. Too many ipos. Too much insider selling. Its day will come. Im not calling the bottom here. Thats the conclusion of the lightning round. Announcer the lightning round is sponsored by td ameritrade. For the last couple of weeks the banks had become real dogs. Since the financials are the second largest component in the s p 500, when they do poorly its difficult for the broader stock market to act well. Then earnings season starts and most of the banks are reporting pretty darn good quarters. Today we heard from the regional banks like keycorp. One with i have liked for a long time. What did key, a big regional player based in cleveland with over 1,000 branches have to say . This morning key reported a 2 cent earnings beat with inline revenues and 4 loan growth year over year including a 9 increase in financial and agricultural. Key is still cutting costs left and right. If we get a sustained up tick they will make a killing. Thats how banks make money. They pay you next to nothing for your deposits and then lend that money out at a higher rate. While we wait for an uptick, keycorp is returning capitol to shareholders. They used 564 buy back authorization gr a new 542 million buy back authorization for 2014. Add them up, thats equal to 9 of the companys market cap. And it is expected to boost keys dividend annually next month. Part of the fed approved capital return plan which would give the stock a 1. 9 yield at these levels. The stock has given us a 16 gain since we talked to the ceo in october. I think it has more room to run. Lets check in with beth mooney from keycorp to find out more about the quarter and where her company is headed. Welcome back to mad money. Thank you, jim. Glad to be back. You had a tremendous 9 commercial industrial growth in loans. Where are the loans concentrated . Whos taking them . It was one of the strengths of the quarter. We are with leading our peers in that regard. Commercial lending is up 9 year over year. 4. 5 length. Generally its across the board. Our Business Model is winning with clients. If i were going to look at sectors that are doing particularly well, i would say energy, health care, technology but geographically its well dispersed and its been a Strong Quarter for us in lending. It turns out geographically key actually has a lot of overlap with what turned out to be the new oil and gas portion of the country. It does indeed. The Energy Sector that the natural gas and shale play as we call it is in our backyard. Okay. Lets go over. I think people want to hear wait a second, they hear if Interest Rates went higher, you can make mr money. What rate is the optimal rate for shareholders to make the most money owning key corp. I will tell you, any lift in the short end of the curve will be very, very good for banks but particularly good for a bank like key. With the large commercial lending book, 70 of those are variable rate loans tied to onemonth libor or prime rate. As we get lift in the short end of the curve you will see momentum in our earnings and revenue. You mentioned the commercial doing great. You have an impeccable home equity book. 60 of the mix is first liens. What is it that you guys do right that the other guys arent doing . Good oldfashioned backtobasics lending. The home equity book is branch originated. They are customers of the bank. We make sure they have strong credit. Its also for a strong need. As you pointed out, 58 of them are first liens. Many of them act like a mortgage for our clients. We keep strong fico scores and very low loantovalue. At the end of the day it was a high performing book through the crisis. For us its been one of the most profitable Consumer Lending products. Lets look back for a second. In the 20062007 period, key high dividend, very small. 400 million shares. Is it reasonable to think one day given the fact that the country might be growing we could go back to the smaller share count and higher dividend . As you know through the downturn we issued equity as part of the recapitalization plans in the financial downturn of 2008 and 2009. In 2010 as we repaid our t. A. R. P. Obligations. We have a larger shareholder base. What i think is important is where you started, we are successful to returning capital to our shareholders. Our second Consecutive Year that key has been able to return pure leading levels of capital in the form of dividends and share repurpose. Our investors find that very attractive. Its a reason many of them hold key. Thats why we tell people to do it. M a comes up as being a bright spot. People dont think there is a lot of m a going on in the country. Who are these companies . Who are they acquiring and merging with . Its interesting. When we look again at what use is for the commercial lending its not a lot of historical plant and equipment lending or building of inventories. We find companies are finding ways to grow more inorganically. Theyre looking at buying products or capabilities or competitors as a way to grow. Yes, there is actually a fair amount of m a dialogue as well as m a activity going on. Its on a smaller scale. Part of oh corporate are america learning how to grow their business in a slow economic environment. I want to congratulate you on the best performance of any of the bank stocks we follow. Great job. Thats beth mooney of keycorp. Good to see you. Thank you. Thank you for your support of key. Of course. This has been a big winner. It will stay a big win wither. I would stay with key corps. Stay with cramer. Beautiful day in baltimore where most people probably know that geico could save them money on car insurance, right . You see the thing is geico, well, could help them save on boat insurance too. Hey okay. Im ready to come in now. Hello . Im trying my best. Seriously, im. Im serious. Request to come ashore. Geico. Saving people money on more than just car insurance. Why relocating manufacturingpany to upstate new york . I tell people its for the climate. The conditions in new york state are great for business. New york is ranked 2 in the nation for new private sector job creation. And now its even better because theyve introduced startup new york dozens of taxfree zones where businesses pay no taxes for ten years. Youll get a warm welcome in the new new york. See if your business qualifies at startupny. Com all right. Google and ibm. Did they stink up the joint . Absolutely. Do people hate them . Yes. Why would you own them . Actually one is going to turn in 2015. Thats ibm. You cant wait for 2015. Google wasnt even bad and the Money Managers are going to flock to google because its got growth at a very reasonable price. Happy 25th cnbc. There is always more. I promise to try to find it just for you. Mad money. Im jim cramer. I will see you next time. Fast money starts right now. Live from the Nasdaq Market sight in new york citys bright lights of times square with cnbcs melissa lee. The traders tonight are tim, the ambassador seymour. Risk reversals own dan nathan. Brian b. K. Kelly