Transcripts For CNBC Mad Money 20141015

Whats really happening behind the scenes on a day like today where the dow plummeted, 128 points and the nasdaq declined, nice rally there,. 28 which was quite a rebound from the lows versus the dow down 460 points in one point and still representing another assault in the markets psyche. You know what some todays action had less to do with the fundamentals and more to do with how Big Hedge Fund react to a selloff. You will learn something tonight. This bruising was about the flawed mechanics of the market. What its really like in the trenches of the session so to speak. Fortunately, ive lived if had those trenches. Let me tell you, on days like today it is nasty as all get out in there. In fact, you need to understand just how much pressure the actual sellers of merchandise can put on your stocks because at times like these, its these sellers who control the the action that hurts your pocketbook, not the actual performance of the companies themselves that you own shares in. First, why dont we do this . Lets revisit and go back in the time machine 24 hours ago beginning after the close of yesterdays trading and weve been given a nice, upside surprise. These two companies, the Largest Semiconductor maker in the world and one of the big three rails give you a remarkable read on both the national and Global Economy and that still matters, people. I found myself truly liking the intel quarter despite what you might have heard analysts say. Personal computers and tablets and both of which showed strong growth again, contrary to what you heard and intels minting money. Almost all lines of cargo were strong and even coal, a very positive outlook. I actually left the office feeling kind of good given that today has always been a day on the calendar that takes its cues from the earnings of those two Companies Last night. Sure enough when i woke up this morning and i woke up at hideous hours the futures looked flat. Particularly asia. Al as, that was at 4 20 a. M. To adjust the fantasy football lineup and something i quite can do too much of. After a quick workout, i came back and what happened . All hell had broken loose. Remember, i have a checklist of what has to go right in order to get an investable bottom, investable, and not tradable. It was almost as if fate took the list and turned it upside down, upside down with pain. First, rather than ebola being contained, a Second Health care worker contracted a disease, and i saw a tweet of Carl Quintanilla and said thats it. That in itself sent s p futures down and then out of nowhere, a very good drug company that was trying to take advantage of the tax aversion rules let it be known that it was close to dropping its bid for shire, an acquisition that would be very attractive both for fundamental and cashdriven reasons. Shire, and then everything fell apart. You have to understand there were many arbitrage firms that buy stocks of companies that have been taken over in order to make a little bit of money to where a deal is announced and when it closes. Hedge funds had borrowed billions and billions to buy the shire and a deal they almost certainly expected to close and why not . It reiterated at the end of last month that the transaction would close. With the drooel deal breaking down, you can expect colossal losses by those hedge fund owners and judging by the price of shire down 30 in one day. We got them. Shires a Terrific Company and they felt the treasury departments new rules made the deal unworkable for agve. The firms that lent money to the hedge funds and the brokerages that lent money to hedge funds and they call and say, listen, you have to put up more collateral because the asset you borrowed against us is falling apart. These are very clinical phone calls and no cajoling and just send all of the money in and well send everything to raise. Ive been on both ends of these calls and they sell anything thats not nailed down to stay in business. That was the push down. That was the 400. Sometimes so many funds are involved with these deals that when they fall apart they can take the whole market down and stay down. On friday, october 13, 1989, the fact they remember this and let alone they traded in an almost 7 decline because of the deal to take United Airlines private that broke down. I remember it well since karen cramer and i bought a ton of stock of my old hedge fund. At the end of the day, quarter to 4 00 because we knew how it worked and the margin calls i made as a broker there and unfortunately, some of the margin calls i received when i ran my hedge fund. I knew there was nothing fundamental wrong with the economy back then and it was worth buying. We made a ton of money by picking up the pieces and going home with them. Thats exactly what kind of happened today after the margin clerks did their butchering which ends a few hours before the close because the margin clerks are not allowed to end the end of the day, but the rally couldnt hold this time and wasnt that widespread because unlike 1989, all is not that well with the economy. We know that because Interest Rates plummeted throughout the day that things arent well. You know what it does . Rather to say time to buy a house, it it freaks people out because the people who own, the stocks think holy bondsman. The Interest Rates wouldnt be plummeted in the economy was getting better. When you lump in the price of oil with the retail sales that you got at 8 30, you get a picture of Economic Activity screeching to this kind of halt. And that causes many sections to get clobbered. The industrials get hammered, but so do the financials and with visions of ebola dancing in our heads we envision empty planes and empty malls. While shire led the hedge funds down that the economy might be doing better. They got crushed, too, and they were just hopeful. It looked like we could rally midmorning because everything seems so overdone and oil was going higher and midday we got the incredibly terrible news that the second stricken Health Care Worker had actually flown on a commercial plane and we realized once again that we have no real protocols in this country for handling ebola. Now we have to wait another 21 days to find out who, if if anyone, was infected on the plane which may be hard to bottom until we get past tleeftweek period. We saw a total breakdown of travel and leisure stocks 18 anticipating cruise line and theme park cancellations and a number of cuts which i believe will start tomorrow. Oh, ask then at 3 00 p. M. The market tried to mount another advance only to be whacked by walmart which cut the growth forecast. This was precisely the kind of stock that was supposed to be working because of lower gasoline prices. So much for that. With all margins selling out of the way we took a run higher and it was hit by the hardhit transports and oils and talk about hope. That, too, ended up failing and health care and safety stocks that yield more than 3 and thats why the nasdaq was down more than a quarter percent, but if you go over the list of what needs to happen before weeb b m bottom, give me a break. Were not there yet. Ebola is anything, but under control. They knot worse. The stocks havent had gains. Netflix might have changed that game tonight. Oil hasnt found its footing, game on. Didnt get many beats in raises and the charts are in at that timers and china is doing nothing good and isis still on the move and now we have the breakdown in the big levered hedge funds that have to run its course. My conclusion today was a mild positive. We are still oversold. I see bargains, particularly in higher yielding safety stocks that benefit from lower raw costs. Ill trace out some longer term set of positives after the break. I dont want to be too bleak here, but the bottom line is well see more selling on the next Earnings Report by tonights stinker from netflix or the next ebola victim or the next saber rattling and the market is guilty until proven innocent and remains treacherous until the larger issues are ultimately resolved. Harvey in oregon. Harvey . Booyah, jim, from ash lanla oregon. Also the home of southern oregon, man. Beautiful town. That, too. Its terrific. You have to get on that stage for us. And im going to. Whats up some. Listen, i craned manitowak up to 33 and mefr sold a bit of it. Ouchy should i hold on to that . United reynolds reported good numbers tonight. And manitowak said things are bad so theyre not going to say things are bad again. Youre going on get a little bit of a lift and i dont want you to give up on the stock and it is too darn cheap. Jeff in north carolina. Jeff this. Hi, jim. Whats up . Whats up with the volatility of the current market movement. Do you like gld . Yes. what percentage of my portfolio should i because its important to hedge. I do have an ira because i had it before things were going on, and i own one of those gold funds and its been crushed to smithereens, and was tempted to take a little bit more and put it it in there by the end of the year. Spray to. Richard in florida, richard . Good afternoon to you, mr. Cramer. Same. Thank you for what you do for us home gamers and i want to ask you especially short term longterm because of it it. People will sell that stock, but theyre not going to stop going to the theme park. Yield is 6. 9. The stock that is going down rapidly is disney. You know what . Believe it or not, i think disney will be going to the disney theme parks within five years. Maybe thats the place to be. I do see bargains, but unfortunately we have more selling until we reach not a tradable bottom and an investable bottom. We will get through this together. On mad money tonight its been a wild ride lately and while we could see more pain ahead i have my eye on stocks that could soar after the smoke clears. Are they too cheap to ignore it . Dont miss my take. Its called sales force to come back to earth. Is now the time to take your portfolio to the sky . Stick with cramer. Dont miss a second of mad money, follow jimcramer 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 some head to madmoney. Cnbc. Com. So i can reach ally bank 24 7, but there are no branches . 24 7 its just im a little reluctant to try new things. Whats wrong with trying new things . Feel that in your muscles . Yeah. I do. Try a new way to bank, where no branches equals great rates. 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. At a special site for tv viewers; i take prilosec otc each morning for my frequent heartburn. Because it gives me. Zero heartburn prilosec otc. The number 1 doctorrecommended frequent heartburn medicine for 9 straight years. One pill each morning. All right. Here is the operative question, how low can oil go . I think everything overreacts and overshoots in a panic and thats whats happening right now intraday. Lets deal with some facts. There are a lot of oil sloshing around at the moment all over the world. We have saudis pumping oil when they normally would be cutting back production to thain price. It helps to blunt the countrys march toward Energy Independence so we dont need them. It seemed a heck of a lot more achievable. They dramatically increased the output because now that isis is besieging baghdad and iran is now our friend, but true. Theyll be putting up a mass amount of oil and of course, we have the United States anything full bore, adding more than a Million Barrels a year and much of it stuck in this country because of a 40yearold ban on crude oil exports. In short supply, everwhelming demand and there arent enough oil tankes to stash the stuff. They are trying to stash. Can oil trade in the 70s . The ceo of continental resources, the largest player in the shale didnt exactly rule out more down side, but he doesnt expect oil to stay down. Listen. Are we in a situation where we could see 60 oil . No. I dont believe it, in pacfact, believe oil will be back at 90 before we know it. The biggest liquefied oil in america ruled it in. Some companies are clearly concerned that the price of oil could go dramatically lower here. I think it could. You do . Yes. Really . Yes. Do you think it can go to 70 . Yes. Maybe even lower. Dr. Doom of oil. Oh, boy, we could split the difference with 81 today. Lets put it this way. The charts tell us the smallest decline is in the cards. Carly garner, the technician who told me everything would any higher said we would bottom at 77. None of that reassuring although he thinks its gone right back. Heres the thing. Much of the Additional Oil were expected to produce will be cut back in this country because by flooding the market the saudis would kill the drilling programs and they might go bust. Many of the prospective pipelines wont be built because the producers cant pay the bills. Eventually the saudis will reach a price thats not tolerable even to them. Storage space comes on and refineries that have been closed will open. Hey, that does happen, but the process is not an overnight situation. The blownout speculators are going cause a shortterm the bottom. They did it in 2008 when they were crushed and theyll do it again. Thats what happens. Its the mechanics of the market and im not a bull in oil. These stocks can fall further after todays anemic rally. The same people who thought oil was anything through the roof now think its falling through the floor. I find that encouraging. Oil is cheap and does ultimately gets used. Countries that are oil starved and switching fuels to other ones do switch back even if you dont want them to. Big projects get canceled when they were in the indonesian facility, and putin did cut drilling on some of the largest fields on earth because of sanctions. They do correct back, but not until they overshoot of what should be an Oil Consumption as they get cut back by ebola fears and thats what the stocks are telling you. I believe the stocks. There are plenty of winsers from lower oil including the Package Goods companies that represent bargains to me versus the tenyear treasury and no mead on speculate on a bottom in oil and there will come a time when the majors will be too cheap to ignore and the Safe Dividends will be a joy to collect as the companies totally have a wherewithal to pay them. Lets any to mark in california. Dude, whats up . How are you doing today . Kind of a long day, frankly. How are you doing . Okay. Let me ask you, my stock is halliburton and since i purchased the stock its been down about pa15 . To me, thats a lot of cake. I dont know about anybody else, but when i look at the stock i see a 6 billion Buyback Program thats 6 billion, thats a lot of cake, too. Also, i see very strong longterm contracts and very good cash flow. What do you think i should expect when i report earnings on october 20th and i want to hold long term and not panic, but how do you consider is long term some. Mark, the operative question is the long term because i mean, shortterm is not so good. Short term frankly, if youre halliburton you cant make a determination of how many of your projects might get canceled by your decline in oil. They have brought back a lot of stock and they shrunk the float by 70 million over 922 million in three years and thats not that trons trous. I will say this. I think oil will go up and i think youll be fine, but you might get another 5 , 6 , 7 dip. Mike in new jersey. Mike. Good evening, jim, how are you some. Im fine, mike, over the years. Please give me some information on Energy Transfer partners and what do you think of the mlp sector. It looks like to me that the hedge funds that were long these stocks and borrowed money have been margined out. I like etp. I like enterprise, too. E perk d. All right some those are good ones. No need on speculate on the bottom in oil and there will come a time when the majors are too cheap to concern. Much more mad money ahead. Ebola, europe and oils declined and will not get settled overnight, panic never helped anyone make money, dont miss the opportunity to make money in the chaos and can can the cloud help you weather the storm out well . Ill talk to the ceo of sales force which was up today from the annual dream force conference in San Francisco. Plus, there werent many gamers today and ill introduce you to another stock that wasnt swayed by a sea of red and it was a safe one. Stay with cramer. 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Sounds great. cell phone typing typing continues woosh cell phones buzz, chirp and we have to work the weekend. Great. More good newsits friday woo ship a pak via Fedex Express saver® for as low as 7. 50. There are wo ways to look at this market. You can view it as a place of tremendous havoc for everything is being slaughtered. You can see the bloodletting and the spiral down and the coughups. You can smell the blood and say enough, already. The house of pain who cares about longterm values being created in thats only for someone who is rich like Warren Buffett who has real staying power or you can breathe deeply, be mind frl of corporate profits and take a longer term view in which case, you have to be seeing opportunity. First, let me explain the hideous nearterm case and it is hideous and some of last years rally, and after a bounce down 173 points from a 460point decline earlier in the day. It isnt better. This selloff and it was still a selloff despite the lateday rally is based on totally legitimate shortterm fears. The names was slowdown, and the spread of, bowla and the advance of isis and total confidence by a president who seems absent despite the concern, justified or not of Many Americans that theyll be the ones who will die of ebola. Well see more cases breaking out before anything real is done. As its spreading much more easily than we expected and were much less prepared as a nation than we thought. Each new incident and each new plane ride saw the market to go down. Im not asking the president to don a hazmat suit and help an ebola victim. I am helping the head of the cdc to put invisible places and make some real rules about travel and waste and protective gear. Restore some confidence in the system and confidence thats been destroyed by the poor performance of one particular hospital that could be like a lot of other hospitals. As far as europe goes and it cripples s dribbles to china. If you were force western europe to neuter ukraine. Putin may keep that natural gas flowing simply because the plummeting price of oil may mean russia cant a port to stop selling gas to western europe, but we have to presume there will be more bloodshed in ukraine as putin fears nato coming in to surround his country and shut off access to the black sea fleet, right some understandable fear for this man. Its not just the sanctions thats got europe in a mess. The weakness in the economies of so many countries and something that we thought was past us is something very real. Angela merkel is taking a page from Herbert Hoover who thought the best way to handle a recession was to balance the budget and trying to stem the crisis at the federal level and it was too little, too late. The fed kept raising rates and should have been lowering them. Merkel has made it abundantly clear shes not loose edge the reins in her country. She could do so much if she would issue a 30year bond to build infrastructure and put people to work. She will do nothing before zee to admit shes herbert hoofer in a pant suit. Did she forget there was Severe Development before the third rikt took over. She forgets the economic turmoil that aloud hitler to come to power, the lessons of germany affecting the rest of the world. Meanwhile, were dealing with the panicked hedge funds and several strategies have backfired all at once. First many of the smartest people in the universe bet that Interest Rate his to go higher and that the fed had to tighten. Remember the conference and now the feds on hold and we dont have to think about it anymore although people still keep bringing it up. Im sure well find out very Big Hedge Funds had their heads busted today. Thats a panic toward lower rates and not higher ones and people were betting that rates would go higher. Thats highly unusual. We thought oil had to go up because of isis and other middle eastern turmoil and that were very long at the top and they had to stop the drive toward Energy Independence and theyve done it before and theyre doing it now and that provided money to be blown to smirthereens and the oilproducing stocks and the former happened in 2008. They borrowed money to boost yields and they got blown out. Including buddies of mine. I see no support for many stocks and i cant found where they went to intraday today, and maybe they do that at retest. Were in the grips of a tremendous loss of confidence and afraid to give excellent gains of their own recommendation. Look what happened to met fliks tonight. We dont know what theyll be and its immense and growing. All right. Thats the bearish, nearterm case that im sure some of you thought went away with the bottom. Im not so certain because of my unchecked list of things that must go right before we get an investable bottom. Now lets look at this market with a longer term, mindful, mind set. When i start using the word mindful its part of the parlance. First, longer term upon. I really dont care about europe. We lost europe once before. It turned out to be a remarkable time to buy u. S. Stocks. Remember 2011 some remarkable. Just a terrific moment. If the natural gas gets cut off by putin, it it will happen before, it will happen again, and we cant expect spain to default on the treasurys, remember that . Gain for you and gain for the consumer. People are more likely to buy a house this time around because banks are willing to lend more and homes have started to become more affordable and the banks have better Balance Sheets and some in the presence to cut taxes and the gasoline declined much better than a tax cut and makes every commute better thanks to the money theyre saving at the pump. Isnt that exactly what pat doyle, the ceos of dominos pays told us last night. Yes, 16 states have less job growth and drilling slows down, maybe dramatically if if oil falls to 70. It it can. There are tons of leelthal diseases that are far easier to catch like ebola that is only spread through direct fluid contracts. And could be that the cdc is finally starting to do its karn job, the consumer from cheaper oil and far exceeds the shortterm rate of the stock market that clearly peaked a month ago when alibaba came public. That should be the wrong takeaway and its the jim cramer takeaway and the panic of even one more outbreak of ebola and someone struck with here could send us down another couple of a percent. When the smoke clears and it it always does clear eventually, youed need to remember that the American Consumers is getting a serious better boost here and the longer tim picture is very good, indeed. Yes, im saying it, we wished we fought a pew percent down from here. You may not have buffetts money, but you can share the viewpoint. So far im with him. Eric in pennsylvania. Booyah. I like the bbbooyah. I like pennsylvania. Whats up should. The markets in general lately, i bought tires. How about goodyear tires and symbol, gt. It has come down a lot and you know what . The auto business everybody hates it now so you have to be heroic to buy it. I hate being a hero when the markets going down. I like to be a hero when ive got stocks that go higher. Lets call a spade a spade. The nearterm of the market is hideous r, damage, massive, but you know what . Long term, smoke clears. Always does. Much more mad money ahead including the Founding Fathers of Cloud Computing and the the sales force is 20 off its highs and has the market created an opportunity for the highgrowth stock . The help for the American Consumer with a company that has insight like mow other. After a tough day like today you have questions and i have answers. Lightning round, stick with cramer. So ally bank really has no hidden fees on savings accounts . Thats right. Its just that im worried about you know hidden things. Ok, whys that . No hidden fees, from the bank where no branches equals great rates. At what point in this hideous decline can we start picking at the highflying Growth Stocks. And c rshg m, the king of Cloud Computing and the stock that has made us tremendous longterm gains, it it has peaked. Sales force. Coms fundamentals have been consistently excellent. Its just that the stock seems to have gone out of style with the wall street fashion show, but. Global growth is slowing, i think it is, usually Money Managers start circling back to Companies Like sales forces that can deliver consistently rap growth in a declining economy. Its been hosting the annual cloud, and in the the past its reignited interest in the sock. Can it happen again . The chairman and ceo of sales force. Com to learn more about his companys prospects. Welcome back to mad money. Hey, jim. Great to see you. How are you some. Oh, great. Thank you for having, mark. It seems to me that were in another phase of sales force. Since we first started talking in 2008 i felt you were a cloud company. I think that cloud really is just a small portion of your business now, and i think that dream force represents where the company is going. Tell us what the companys going to look like five years from now. Well, jim, it is dream force in San Francisco and we had more than 150,000 people registered to attend this event here. Thats just in person. 5 million online. Theres been 3 Million People who have joined us online for the program. You know all about it and you were here last year and weve got some amazing new products including the new Analytics Cloud and the applications on mobile devices like lightning and we have a whole few version of the customers success program. So its really an exciting time at dream force. I think one of the things thats changed again since i met you is the total Addressable Market has got much bigger and explain to people who are trying to figure out how to buy a growth sock and why is it more important how big it is versus when we used to talk . When we first started talking, jim, which was quite a few years ago now, maybe wed been a private company and maybe four years or five years when this year were celebrating the tenth year as a private company and we see a phenomenal amount of growth over the last ten years and one of the ten Largest Software Companies in the world and were a Sales Force Automation provider. Now we are also offering cut of per service. Were also offering marketing and were also Offering Community and you heard that with neil young had week and were offering an incredible new applications, and at this show were introducing analytics, as well. I want to ask you. Last night we had dominos pays on. Patty doyle. He was talking about how one day well go into our house and well say, could you please put on mad money . They have neil young, and i want to see that. Where does salesforce. Com fit in that connected world when we know that voice activates everything and someone has to be making it all work together. Well, jim, theres something you have to remember, okay . Which is behind every one of those apps, behind every voice activation and behind everything thats going on whether in in your home or in your business is a customer and all those companies that are providing those next Generation Services and you have them all on your show, well, theyve knot a new generation of customer systems behind all of those apps, behind all of those connected products as well as behind their entire Employee Base and the way to manage all of that customer information is using sales force. It doesnt matter if theyre doing sales or service or marketing. Just mentioned Building Community and they need a Customer Success platform and thats what sales force is offering. You spend a lot of time in europe this year. We keep hearing about europes slowing. Thats right. I have to believe if europe is slowing what they do is put more money into technology and not less. Less money and hiring technology. Youve been over there. Is that happening some . When i was there, jim, i saw amazing growth in germany and youve seen that in our numbers as well this year, and we have here at the show we profiled yesterday and you can find it in my facebook account, cocacola germ fee. They have sap on the backend, of course, but on the front office its also sales force and its also sales force on these mobile devices and their ceo is here and he said theyre going faster than ever before in germany because theyve rebuilt using sales force as their agile platform and thats what i see in the major european customers that we have, Companies Like cocacola, phillips, lvmh, and others. The more they invest in mobility, the more they invest in social networks and the more they invest in building these next generation customer systems and the better theyre doing and the faster theyre growing and you can see the growth of the companies. Thats true and we recognize that dream force is the place where everybody gets together to think about the next ten years. They think about using sales force which is why weve been behind you the whole way. Mark benioff. Thank you for coming on the show. Its good to see you and you mentioned something very important. People are underestimating what you can do in a year and a decade. Thanks, j im. And come next year we want to see you back here at sales force. So does neil young. People return to Growth Stocks in a slowing world environment and thats when thai go back to crm. Were in that environment. Coupen that in mind, mark benioff, of sales force. Com. Kth sales force. Com. Ethat in mind, f sales force. Com. Ethat in mind, of sales force. Com. Pthat in min of sales force. Com. That in min, of sales force. Com. Today could be the day. The day we give you hope. Relief. A cure. Today, we believe every life deserves worldclass care. As one of the top four hospitals in the nation, over 100,000 people from around the world come to Cleveland Clinic for care each year. And were ready for you with a Second Opinion or a sameday appointment today today today and everyday. Call today, for an appointment today. receptionist Gunderman Group is growing. Getting in a groove. Growth is gratifying. 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Time for the lightning round and start with billy in virginia. Billy. Hello. A booyah from virginia. Im liking that from the taylormorrison home. Lennar is up 1. 40. In this market thats not a sustainable advance so you are not going to buy a home builder. Youll get another chance if you really want to, but lennar is the play. Jackie in new york. Jackie . Hi, jim. Thanks for taking my call. Of course. We love your show. Boy, you have to have a strong stomach for this market. Yes. But i like your input on g. W. Pharmaceuticals. Its a speculative stock and the speculative stocks are getting hammered here and the news was quite good for g. W. Nobody cares right now. Why do they not care . Theyre looking for yield and theyre looking for safety and that stock has risk, but i believe that it is going have many uses and will matter. Lets go to glen in virginia. Glen . Hi, jim. Im longretired and living on dividends and youre helping to keep me afloat. All right. I would like to know what you think in this atmosphere and what you think of compressco. Oh, man. Another one of those partnerships that is kind of, you know i am going to tell will you that these are now becoming suspect. Why are they becoming suspect . Because they do services for natural Gas Exploration and people fear that thats going to be cut back. I want you to be very careful, sir, with that particular situation. How about patrick in ohio . Patrick. Hello, good morning good evening, jim. How are you . Im just short of perfect. Well, cant beat that. My question is rpm. Ive had it it for 28 years. I probably have 50,000 profit on it, and will while i lover t the company, should i shed it . This is precisely the kind of company i want to go toward and not lean away from and the company, should i shed it . This is precisely the kind of company i want to go toward and not lean away from and ibm and snapon and the market is not that good when things are good you never get a chance to buy a good stock like rpm. Keith in new york, keith some. How are you doing . I want to know how you feel about right aid. I know you liked it in the past. I do like it it, but when you have major drug Companies Like cvs getting clobbered, you will not see stabilization in right aid, but the transition is occurring and they have a good Balance Sheet and are able to turn the company and it doesnt matter what speculative stock i talk about. The answer of where it is going is lower. The right aid transition is for rail. Dont back away. Daniel in new jersey. Hi, jim. Thanks for taking my call. I have a quick question about lockheed martin. Right now it feels like its taking a beating and i was just wondering if you think it will any back up to the 180s, if not, any over. I think you have to think longer it term and i want marilyn on the show and she would be such a fabulous guest. They have a 3. 4 yield and if anyone believes the Defense Budget would stay like this in light of whats happening in the world and i want to buy lmt. Lets go to gary in washington. Gary . Hi, jim. Im wondering about orcpko heal. The ceo continues to buy, and i like the longterm view, but once again, speculation is not working, not now, but it it will. Its not a not now, not ever situation. Its got some time and that, ladies and gentlemen is the conclusion of the lightning round some. The lightning round is sponsored by td ameritrade. Go ahead and put your bag right here. Have a nice flight traveling can feel like one big mystery. Youre never quite sure what is coming your way. But when youve got an entire company who knows that the most ontime flights are nothing if we cant get your things there too. Its no wonder more People Choose delta than any other airline. In this vicious, volatile market do you know what hung in there today . Ill tell you, federal realty and frt, the best Shopping Center Real Estate Investment trust in the United States. Roughly equal for the return of the 30year u. S. Treasury after todays gigantic decline in Interest Rates. Lets take a look with don wood who is a visionary in this industry and hear more about his company is doing. Mr. Wood, welcome back to mad money. Good to see you. Good to see you, likewise. One of the things that happened since i talked to you last is theres been challenge not to the idea of amazon versus stores, but challenge to the idea that the Shopping Center has lost its relevance. You seem to recognize that and are doing some things including something you announced today to change the perspective, at least for your group on this issue. Yeah, you know. First of all, i think really when you hear the internet is killing retail. Right. I think thats really shorthand, and i think its shorthand for Consumer Behavior is changing and i couldnt agree more the Consumer Behavior is changing and i dont think that the two things are disconnected. I think when you look today at Consumer Behavior what you see are folks that really concerned about efficiency. Okay. Theyre really concerned about value and i dont mean value as cheap. Youre getting something for the dollar that you spend and i also think social interaction is becoming more and more important. If you kind of think about it and think about the last ten years and where the world has gone and what has happened, restaurants, chefdriven restaurants have done better and better and better. Personality. Lifestyle type of things where people dont have to be in their car all of the time and places where they can actually work, where they can actually play and where they can actually shop and maybe even stay in a hotel and live are more and more fruitful, if you will. Lets start with that because hiltons new end roads and well will abe time when i would think the last thing i would want was to live with a mall or stay with a mall, but now its kind of abexciting thing. I saw it it in egypt once. I saw it it in Central European places, but not here. When you talk about when you talk about shopping in general and you think about the different businesses, there is no question that the mall business, the enclosed mall business which is a business which is highly dependent upon womens fashions and other things, too, but womens fashions, that business is a completely different business than the business that were in. Now, we dont have any malls, but all of this has come out and, you know, whats the future of the mall . The only thing i would say and i do have an awful lot of friends in the mall business is i dont think i would want to own the secondbest mall in a town, you know, that can support only one. Right. The Shopping Centers always been your bailiwick. Whether its better or not, when i sit and think about consumers, behavior and where thats going, its environment and its a place and its a real place and when you think about a hotel like canopy and what hilton is doing here, its a Perfect Match and what you think of that lifestyle and open floor plan versus what you can have, on a street that is vibrant and on a place where we have great rooftop music venues where we have theaters and luxury theaters and great shopping and great restaurants, together, that all seems to work. Okay. All right. You mentioned that people like social contact. We know people gather. You and i have known each other a long time. I think its okay to ask you this. Anything you want. When we have an outbreak of ebola or sars because youve lived through everything, sars hurt the shopping business. In all your reports you always say the same thing, i dont care about the day to day. Is this a day to day issue that you can care about, but you also have to think that its going to be solved . Well, i do. I do. First of all, the ebola breakout, its just devastating. Its a terrible thing. Im glad i live here and im certainly we live in this country and with what the cdc and the Health Care Providers have to take care of themselves when they do that. You can bet its job number one. Is it a behavior changer . I dont see it as a behavior changer for any longterm period of time. We talk about this a lot, jim, the idea of us being in the real estate business rather than in the reail business means we look at things over the longer term. Which is why that yield is safe and which is why youve been honest the the whole way. Let me say one thing to you. Its been three times in a row ive come on this show over the last couple of years where the market has died significantly during the day today or its been volatile. I want to apologize to investors all over the world because it cant be a coincidence. It is you. I dont want to see you again, maybe on hump day. Its don wood, president and ceo of federal realty Investment Trust longer term. Hey, thats an idea, isnt it . Stick with cramer. You know, right now i am saying the speculative stocks are are not a great place to be and how do i know that . Because netflix is down more than a hundred bucks and thats the classic case of a cult stock that has to give up the ghost before we get on an investable bottom. We had a tradable bottom and today, and thats all it was. You know how i peel. You know the dips are not to buy. I feel the rallies are to sell until the risks go down because my checklist which im going to feature almost every night until its checked off is met. I would like to say theres always a bull market somewhere and i promise to find it just ue lemonis tonight on the profit, courage. B is a familyrun Clothing Company with seven Stores Across the country, but they have stumbled badly over the past two years. Lousy decisions. Noemi i never approved this design. Nicolas you approved this. Stephanie are you kidding . Lemonis . And poor execution. I just see cash. Have put the company in a deep financial hole. Thats created a ton of family drama. Nicolas you want all of the accolade without doing any of the work. Lemonis if they cant figure out a way to iron out their differences, there wont be a business to fight over. Stephanie nicolas, i dont want him to walk out that door because of this. Lemonis my name is marcus lemonis, and i fix failing businesses. I make the tough decisions