[ buzzer ] after another day shrugged off the negative. The s p rising 1. 4 , and do you know the nasdaq 100 is now up an astounding 14 days in a row . Did you know that the s p has now closed up eight straight day, the longest win streak since november 2004 . Hallelujah and the analysts just dont believe in this market and the afterlife of stocks that keep coming roaring back, vampirelike. Today is none other than free, left for dead stocks by the analysts roaring back to life, three true blood stocks the wall Street Community didnt care for. Increasin increasingly, maybe theyre warming up to or have been too late to take an action on because they were just plain wrong im talking about citigroup, wireless and the ones that drove up a buck today as the analysts scrambled to show this some love. Was citigroup perfect . Think not. No one perfect than j. P. Morgan and wells fargo this week. Sometimes imperfect isnt up especially when so many analysts and short sellers are betting against you. The house of pain i know i was concerned about this quarter about the turmoil. That was retail bread and butter. I also know that Michael Corbat the new ceo has injected a new spirit in the city with unprofitable global branches. Corbat inherited a Worldwide Network that in the last year of deposed ceo vikram pandits tenure looked a heck of a lot like the state department with embassies everywhere. I think our ambassadors lost less money. How about the emblematic pea body from multiple years. He was looking for a hideous loss and Foreign Exchange with the 1. 7 billion loss and theyre looking for a 5. 7 billion loss in the currency swings and it looks a lot less like likely. Can pea body, can his sell recommendations hold up . They like to dig in their heels when theyre wrong and they didnt get that hideous a number. How about tangible book value . Thats a real good way to measure a banks work, basically, its what the bank would sell for if it was cash. Most book values are considered to be too high, inflated these days in the bank rule, but the government used to own a big chunk of citigroup. So my thought is this book value is scrubbed and real deal. If thats the case the stock might be too cheap selling at 53 in tangible book after this quarter right where the stock is. I would also like to continue decline in the assets of Citi Holdings. Now down to 131 billion and it used to be 131 billion. Why does it matter . Because lots of the holdings in Citi Holdings require a tremendous amount of service. There are endless legal bills associated with the deadweight asset and the sooner Citi Holdings disappear the better. House of pleasure. How about the fact that citi posted 11 Revenue Growth year over year in the very markets i was worried about. Hard to get double digit Revenue Growth. Have you seen the terrific decline . Loan loss analysis . Thats equal to 3. 4 of the loans at the end of the prior quarter. These are big banks so the numbers seem large, but theyre nothing compared to the overall. Finally capital levels are in excellent shape and regulators have nothing to fear here. Theyve risen from 43 to 52 since the 10 for 1 split a few years ago. Remember, divided by ten. Institutions dont like to own stocks under five. From now on, though, it will be the earnings that drive the stock and the earnings are there and citigroup is not done and it is a cheap stock and the big bets against it no longer hold water. I s i say citis a buy. How about leap wireless . Wasnt leap left for dead . Theyre printing out these notes and theyre trying at 6 15 im getting these notes upgrade from sell to hold. Thank you for nothing along comes one of the shrewdest most well capitalized in the countries and at t offering to pay nearly double what leap was selling for on friday morning. Buy, buy, buy, buy, buy and at t might not be able to obtain the amount where it was trading a couple of bucks above where leap stands. Wireless Companies Need to expand the business and it was worth much more than even the bulls thought. Its a hugely Strategic Asset and maybe even sprint softbank to enter the fray. Wouldnt that be something. How could the analysts get it so wrong . Because time and again they only look at the earnings per share estimates which were pretty pathetic in the cutthroat business that is wireless, but they dont look thea the Strategic Value of the enterprise. We had a spectrum shortage and they all need to get their hands on more of it. The only clump of spectrum. Hardcharging, swashbuckling manager because he wants to augment his spectrum. You know what . I dont mind owning that one, either. In reality this left for Walking Dead Company wasnt left for dead at all and the valuation wasnt set by the analysts and they are way too bearish and they kept you out of a good one. Thanks for nothing. All you say to these doubting analysts is you should have covered it, too, hewlettpackard, and heres a dow component down 44 this year and its an epic 85 run for the last seven runs and done much without the analyst community. And news for clay nation death match, but i like what we heard today from the company itself. The addition of three unbelievably good Board Members and john bennett used to run Liberty Media and the chief software and then one of my personal heros and the now retired ceo of mcdonalds. Why does this matter . We dont talk about boards of directors on mad money, the single worst, most subversive least helpful board of directors in america, and i like this move very much and i think the stock can go higher still. We keep seeing this pattern where the analysts are too negative versus fundamentals and the patterns are always the same even as it turns out theres plenty left in the tank and they say valuation, give me a bank. Microsoft and wells fargo. The last two being key positions and you can follow along on my charitable trust. Com and the leaps and the hewlettpackards and the citigroups and plenty of others like including best buy up 150 for the year or most egregious netflix, 179. So heres the bottom line, one of the most Important Reasons the market wont quit is refusing to leave on the upside or simply writhe off huge winners entirely. It might be the single best one for 2013 and something tells me if you see this action in a leap wireless or citigroup, perhaps you havent seen anything yet and maybe each wing Company Wants to suck the short sellers blood. How about fozzy in colorado . Fozzy. Booyah, jimmy im calling about yahoo. It looks like a handle chart there. Is it safe to buy more . I was soa, trade when i saw it was fozzy. I think miss meyer is doing a fabulous job and i welcome her on the show. Shed be a fabulous guest. I know her Company Better than most. Should we take another . How about we go to chris in virginia. Mr. Cramer, booyah from arlington, virginia. Yo, yo i want to know your thoughts on lenovo. I understand last week they went to the new york stock exchange. Do i sell or the fact that they went on the market, is that a catalyst for more growth . It doesnt matter they were in the market, i just happen to like the bioprinting technology, but its a speck, my friend and as long as you know that, then its okay. Lets go to rav in new jersey. Hi, jim. How will microsofts recent Corporate Restructuring impact shareholder value and what is your overall opinion . One microsoft, kind of like one ford. Al mulally and Steve Ballmer are friends. I like the synergy there. The analysts are still too negative for microsoft. Dont expect a move, okay . But the stock is undervaluid and think the entertainment business is worth much more than people realize. Being back from the dead has never looked better. Just ask suky. Stay with cramer. Coming up, street heat . Theyre an exciting way to stay in the game, but while some ipos like the ticker, others fall flat. Tonight, cramer reveals the keys to success, and which ones can soon heat up when you get to know your ipo. And later, supermarket . Milk, cereal, hmm, lets see, how about adding some stock to your Shopping List. Kingpin kroger just swallowed up a market chain. Can this phenom go from stagnant to health mode . Put some shares in your cart or leave it on the shelf . Cramer decides. Plus, good harvest . The World Population is expected to grow to nearly 9 billion people by 2050 and Agriculture Company eggco is helping feed the globe. Can this longterm theme help the stock grow or could weakness overseas leave the company high and dry . Cramer has the exclusive with its ceo all coming up on mad money. Dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Tweet cramer, madtweets and send jim an email to madmoney cnbc. Com or give us a call at 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. If you have high cholesterol, heres some information that may be worth looking into. In a Clinical Trial versus lipitor, crestor got more highrisk patients bad cholesterol to a goal of under 100. Getting to goal is important, especially if you have high cholesterol plus any of these risk factors because you could be at increased risk for plaque buildup in your arteries over time. And thats why when diet and exercise alone arent enough to lower cholesterol i prescribe crestor. [ female announcer ] crestor is not right for everyone. Like people with Liver Disease or women who are nursing, pregnant or may become pregnant. Tell your doctor about other medicines youre taking. Call your doctor right away if you have muscle pain or weakness, feel unusually tired, have loss of appetite, upper belly pain, dark urine or yellowing of skin or eyes. These could be signs of rare but serious side effects. Is your cholesterol at goal . Ask your doctor about crestor. [ female announcer ] if you cant afford your medication, astrazeneca may be able to help. For those of you who are worried that the easier money has already been made in this market since the averages are flooding along in new high territory, let me point out there is still one area where you can rack up a whole lot of gains and not a lot of time and its the pin action in the ipo world. Last week i told you how the ipo market was red hot in the second quarter. With biotech consumer and technology stocks, and i gave you all of those and you can go to cnbc. Com which is brand new and beautiful, by the way. It i believe it will continue to work and today i will use the road map to share the companies that are coming public as we finish off the the month of july and there are very exciting companies. I have three deals i want you to try to get a piece of that are coming in the next two weeks so go do your homework and the Online Consumer play and when i first heard it i said can can you give me a break . I like it. Im talking about retail me not or retail me not like forget me not. You might want to take a look at it. Retail me not is the worlds number one purveyor of Digital Coupons, and they operate the top coupon websites with popular apps for both the iphone and the android. This sounds gimmicky and we know consumers do love their coupons. Jc penney almost destroyed their business when they stopped giving them out. Retail me not is a real company and its got real numbers. This is not some fly by night ipo that had 20 million unique eyeballs or whatever. No, this is real. Retail me not has contracts with over 10,000 retailers. And whenever someone uses a coupon taken from some of the websites either from the internet they collect a commission. Last year the company had sales of 80 and the net income had 26 million bucks. Im not kidding. Retail me not is making good money. However, there are legitimate concerns and hey, is it the next groupon which i now like, but didnt like for a long time and the mason guy, and whatever. Retail me not may not be growing rapidly. Its growing rapidly, but heres the problem. When i look at their business i think there really arent any serious barriers to endry in the Digital Coupon space, but i think somebody could. Competition is growing and the first day of trading and it was bad company. So if you got it on the deal for retail me not, you know what . I think youll make a bundle and thats the strategy i want. Thats what i want you to do. The Company Plans to sell 9. 1 million shares for 20 to 22 each. I say call your broker and try to get shares in the deal as long as it actually prices below 24. 24 is your magic number. Then you need to turn around and you need to sell, sell, sell retail me not into the initial spike right after it comes public. Play the music. This is a steve miller ipo, okay . You want to take the money and run. Dont be a space cowboy. Next up, agco med pharmaceuticals, thats an early stage biotech. Already my ears are burning. I love those. Early stage biotech firm starts trading thursday. This reminds me of epizone that came public in the end of may and it was 53 , second best performer in the first day of trading and it hasnt looked back since uncle med. Which has a revolutionary approach when it comes to cancer treatments and the antibody therapies to destroy cancer stem cells and they allow them to midwest aft size in your body. It has a fivedrug candidates in clinical developmental though all of them are in phase one trials since theyre many, many years away from the market. The company has two major partnerships and glaxosmithkline and the other with bayer and we know from epizine whose impressive ceo we spoke to on friday and these collaborations are crucial for the early stage Biotech Companies and based on the fabulous performance of the biotechs, i think this can roar when it starts trading on thursday and then i think we can keep running. They sell 4 million shares at a price of 14 and 16. If you want in on this one do some homework and call your broker. If you can get in on the deal, i say ring the register on some, but you know what . The history of these biotech stocks, i want the rest of you i want you to ride it. Im not kidding. Let the rest ride. Next week, we have another biotech firm, and heres a company in my two favorite sweet spots and they treat a subest is genetic Metabolic Diseases and this is where Drug Companies can charge hundreds of thousands of dollars and you can offer a lot for the course of treatment because theyre selling lifesaving medications that patients cant live without and Congress Wants you to do that. They want these drugs. Or if youre more of a Glass Half Full person you can say you cant put a price on life which is yet orphan Drug Companies have been so success flt. It is still in Preclinical Development and earlier stage than on commit which is earlier than epizon. They target the metabolism of cancer cells disrupting the ability to have nutrients into grow american mas. These drugs arent even in promising target, wow damaging the rest of theed abouty. Remember, that is the theme of these. They no longer carpet bomb the body and they go after specific parts of the cancer. The same time theyre developing treatments for what are are known as in borner are rors which are no disease or modded owner. A decision that causes the break down of this blood cells and that should earn some time last year and even though theyre a long way from having a possibility they can feel. Celgene has a noented this and who am i that the fabulous ceo offal gene doesnt plan to sell. This is another one where if you can get a piece of the deal, i expect the first day of trading to be great, but then let the rest ride. I know, highly unusual for us, but the bioteches have been more than oneday wonders and finally theres been an intriguing one. Energy, energy, yes, the big utility is doing a spinoff on wednesday. Nrgy yield that i think is worth checking out. Unity ipo, a youngster, utility ipos had the best week of all stocks. People now see these stocks as bond market equivalents vulnerable to Interest Rates rising. However, energy has held up and the stock is currently at a 52week high and the dividend vehicle and the plan is for the company to support a 6 yield and now i cant bust this ipo on the current environment, but it is absolutely worth watch to see if the mark has saved it over the high yielders heres the bottom line. We have three sex ipos coming over the next two weeks that are worth getting a piece of that i want you in. Buy, buy, buy. Retail me not, and get out once it starts trading. Well, if you get in on the ipo theyll sell some shares on the first day and then sweeten if you let the rest fly. Coming up, supermarket, milk, cereal, lets see, how about adding some stock to your Shopping List . Grocery kingpin kroger just swallowed up a rival chain, but can this food phenom now go from stagnant to stealth mode . Put some shares in your cart or leave it on the shelf . Cramer decides. Oh, hes a fighter alright. Since aflac is helping with his expenses while he cant work, he can focus on his recovery. He doesnt have to worry so much about his mortgage, groceries, or even gas bills. Kick kick. Feel it feel it feel it nice work you got it you got it yes aflacs gonna help take care of his expenses. And us. Were gonna get him back in fighting shape. [ male announcer ] see whats happening behind the scenes at aflac. Com. [ male announcer ] see whats happening behind the scenes this man is about to be the millionth customer. Would you mind if i go ahead of you . Instead we had someone go ahead of him and win fifty thousand dollars. Congratulations you are our one millionth customer. Nobody likes to miss out. Thats why ally treats all their customers the same. Whether youre the first or the millionth. If your bank doesnt think youre special anymore, you need an ally. Ally bank. Your money needs an ally. [ whirring ] [ dog barks ] i want to treat more dogs. Our Business Needs more cases. [ male announcer ] where do you want to take your business . I need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, Small Business solutions from at t have the security you need to get you there. Call us. We can show you how at t solutions can help you do what you do. Even better. [ male announcer ] the parking lot helps by letting us know whos coming. The carts keep everyone on the right track. The power tools introduce themselves. All the bits and bulbs keep themselves stocked. And the doors even handle the checkout so we can work on that thing thats stuck in the thing. [ female announcer ] today, cisco is connecting the internet of everything. Everyone goes home happy. Its hardz hea hard to tell when theyre not jersey tomatoes. Clearly not new jersey tomatoes. Here on mad money we like underrated stocks that dont get the respect on wall street. Theyre based out of new york. They often miss or dont understand whats going on in the rest of the country. So tonight i want to tell you about the underappreciated supermarket in the whole United States because, well, lets just say its not centered on wall street im referring to kroger the second largest Supermarket Chain in the country with over well, 2400 looks. Kroger is the best regular supermarket in the business. Friday the stock was downgraded from neutral to sell by Goldman Sachs because they see softness in the broader industry and they think kroger in particular is too expensive. All i have to say is wrong just last week kroger did something that makes me a believer in the companys future. On august 9th it happens to be my fathers birthday, and the highend Grocery Stores and most of them located in the southeast and the mid atlantic which happens to be a premium to what Harris Teeter started trading that the company was putting itself on the block. The tale is twhoopd kroger after the news broke. The acquired jumped 2. 6 that day, a move that makes a ton of sense, but i feel very lonely saying so. I feel like a melon head no, because then i have to clean it up later. You know i do all of the clean up here, too all right. Remember, this is something that we have been seeing a lot of lately. No one expects the shares to go higher and it usually goes down, but sometimes the deal makes so much sense that the stock becomes unstoppable like when ginnett bought bi, well o, when activists bought warner chill cot and when b g foods, remember the pirates booty or most recently just today when the number one canadian supermarket bought Shoppers Drug mart and im willing to bet thats the case with krogers Harris Teeter acquisition. So come Goldman Sachs downgrad s s kroger to sell. Kroger doesnt command nearly the respect it deserves on wall street. Dangerfield super mark. Some of this has to do with the simple fact that for a long time the supermarket industry used to not make a lot of money kind of like the rental Car Companies and some Supermarket Chains arent doing that. Safeway, for example, not great shape. Supermarket used to be challenged when the two bucks and the stock has come back with a vengeance and now that the people are no longer worried that it can go higher like best buy and hewlettpackard. They can go up a lot, and the second thing, though, is that there are a group of Grocery Stores that are red hot and they get the credit theyre due from wall street. The analysts met their wives husbands there and all of the organic place and when you think of this in terms of the organic and nonorganic dichotomy, its a nonorganic name thats actually doing quite well which leads me to the third reason why people in this game dont appreciate krogers strength. Its the snob factor take a look, right now kroger operates in 31 states, okay . Throughout the midwest and the south and california as well. Remember, this is the second biggest Supermarket Chain in the country after walmart. Krogers where real people go to shop, but for many of the wall street analysts who live right here, the stores might as well not even exist. These analysts shop at woel foods and fairway. They dont have a clue about what happens here west of the hudson maybe some of them went there, too or maybe they played for green bay and thats when your opportunity comes in because wall streets snobbish. What happens in the heartland stays in the heartland attitude and it should be trading in the wake of this Harris Teeter deal. See, maybe i have to analogize. Kroger is plague the Shawshank Redemption kram which i watched for the tenth time at the summit elks club, no less. Get busy living or get busy daiing and buying Harris Teeter is the way to get busy living and they have 2012 looks across eight states, but theres hardly any overlap with the kroger store base and this deal will allow them to expand in the southeast especially in the growing cities of North Carolina and the mid atlantic and theyll have 40 to 50 million and i think theyre low balling that, and i think theyre being conservative. More importantly, kroger is serious about building out a truly natural footprint and just like this one in order to move into new markets and eliminate the competition. I think Goldman Sachs made a mistake when they downgraded kroger. Sure, the stock has had a monster move lately up 4 to 5 year to date and compared to 179 and lowly worm safeway has rallied 38 since beginning of 2013. And the supermarket stocks are doing better and the Old School TraditionalGrocery Stores, too, and in my view, crowinger is the best of the bunch which is why we recommended it on may 28th and has given you a fabulous 52 gain, although kroger is a few cent away from the 52week high and ill pull back if you dont want to own one already. On the other hand, get this, kroger is trading at 12. 2 times next years earnings and its got a 9 longterm growth rate and thats not at all expensive when you consider the companys earnings and the fact that kroger has poefsted the best numbers of the Supermarket Chain, quarter after quarter after quarter and the private label store Brand Products in the business and thats 25 safeway and 20 at super value. Listen to this, its usually important because they carry Gross Margins that are 10 to 15 points higher. Heres the bottom line, too Many Companies are just standing there like theyre obtuse kroger is actually doing something to enhance its future growth. The market may have been roaring lately, but you need to think of it as a stock version of shawshank state prison where the analysts and not the warden are obtuse Companies Either gets busy living or get busy dying or go to zihuatanejo and theyre getting in the busy living column. You just might not realize it because this is the heartlands Grocery Store and unless theres something happening in new york city where the analysts on wall street would have to be blind to ignore it, they often dont understand the importance of whats going on. Another reason why we listen to cramerica. All of cramerica. Do not be a snob buy some kroger the next time you get a chance to shop. Its a terrific place to shop and a terrific stock to buy. Rodney in South Carolina rodney hey, jim, what about walmart . Give me your thoughtis. Think walmarts okay, and i prefer target and costco which my charitable trust, and its the cheapest of all. Why dont we go to bill in florida . Bill hi, jim. How are you doing . Real good, bill. How about you . I live in the land of the manatee now. The manatee you have to keep the boat engines away from the manatees thats right. Jim, the reason im calling you is ive seen you talk to some of these ceos where supposedly mcdonalds, et cetera, and i dont hear any mention about sonic. Ive had it about a year and im up 68 . Thats my bad and i like the ads are funny and there are two jokers sitting in the car and stuff and they have 200 shakes now, but you know what . I cant recommend them all and the texas roadhouse has been good and red robin gourmet has been good and panera and you only have so much restaurant bandwidth in the end. All right. It may be a concrete jungle where dreams are made of and the great city of new york is also where most of the analysts live and thats why they dont understand the goodness of kroger. They probably put a kroger they probably put a Kroger Grocery bag over their heads before they would shop there. Dont move. The lightning round is next. Tomorrow, kick off the trading day with squawk on the street, live from post 9 at the nyse. Another eye roll . Im not give young an eye roll. Im going to take you to an opthalmologistment . It all starts at 9 00 a. M. Eastern. Humans. Even when we cross our ts and dot our is, we still run into problems. Thats why Liberty Mutual insurance offers accident forgiveness with our auto policies. If you qualify, your rates wont go up due to your first accident. Because making mistakes is only human, and so are we. We also offer new car replacement, so if you total your new car, well give you the money for a new one. Call Liberty Mutual insurance at. And ask us all about our auto features, like guaranteed repairs, where if you get into an accident and use one of our certified repair shops, the repairs are guaranteed for life. So call. To talk with an Insurance Expert about everything that comes standard with our base auto policy. And if you switch, you could save up to 423. Liberty Mutual Insurance responsibility. Whats your policy . It is time it is time for the lightning round on cramers mad money. Buy, buy, buy sell, sell, sell play until we hear this sound and then the lightning round is over. Are you ready, skeedaddy . Its time for the lightning round on cramers mad money. Lets go to kent. Kent yo, yo booyah to you. Im liking that booyah. Whats going on . I want to know and get your take on pfizer. I thought i would have the deal. I bought in the low 20s because i like that and should i buy more . Pfizer . Yeah. I like pfizer by the way, bristolmyers pulled back and you get that under 45 and thats also a buy. Thats called a two for. Lets go to kim in florida kim . Thank you. Thank you for taking my call. I watch your show every evening and made lots of money. Thank you. There you go. Thank you right back id like to know homestreet, hmst. Oh, thats a seattle bank. Buy, buy, buy . I think home street, and that stock can go much higher. Oh, come on, dave in arizona. Dave from goodyear, arizona. I like that i love the show. Jim, got a question for you. Assuming the us air merger is approved by the doj, what will happen to the stocks . Forget about the amr stock thats trading and just focus lcc. I think lcc goes to the mid20s and then goes even higher. I like that stock a lot. I need to go to beverly in florida. Beverly hi, jam, this is beverly from gainesville florida, home of the gators and my question is my firstever ipo trade, Pinnacle Foods. I got frustrated from pinnacle and action alerts and we made 10 . Lets move on. I need to see that quarter, p and g is giving pinnacle a run for their money on possible acquisitions and so is conagra. I do welcome Pinnacle Foods if they do want to come on the show. And that, ladies and gentlemen, is the conclusion of the lightning round the lightning round is sponsored by td ameritrade. Coming up, good har vefrt . The World Population is expected to grow to nearly 9 billion people by 2050 and Agriculture Company agco is helping feed the globe. Can this longterm theme help the stock grow or could weakness overseas leave the company high and dry . Cramers got the expect with its ceo. [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All on thinkorswim from td ameritrade. A talking car. But ill tell you what impresses me. A talking train. This ge locomotive can tell you exactly where it is, what its carrying, while using less fuel. Delivering whatever the world needs, when it needs it. After all, whats the point of talking if you dont have something important to say . No matter how you feel about politics, some groups will always feed it to federal trough. If youre trying to make money it makes more sense to bet with them than to bet against them. The farmer makes the most favorite work in america because nobody can get 940 billion out of the senate, which is what happened with the Senate Version of the farm bill. This industry has flushed no matter what, not just here, but also in europe where they played the same sub sidation game. Every year the World Population grows by around 60 Million People and thats roughly the size of italy and all of them need to be fed. Farmers have begun to make a lot more money and when they make money they spend it on machinery, i say more power to your portfolio which brings me to agco, and that is the pure play maker of agriculture equipment Replacement Parts and everything from tractors and combines and sprayers and hay tools and tillage and grain storage. The company has some rellrecognized and respected brand names of which i own one and valco. It does half of its business in europe, the middle east and africa and theyre beginning to expand in asia and also the leading searle of tractors in brazil and agcos been trailing the market up 11 since the beginning of the year and they reported in the end of april and knocked it out of the park and i have to wonder if this isnt the time to play catchup with the rest of the market. Lets check in with martin, and hes the chairman, president and ceo of agco. Welcome to mad money. Thank you for having me. Welcome, what i heard now is you are customer also, so i really appreciate that. Thank you for the business i have a 50yearold Massey Ferguson and its one that has you know, theyre very simple machines back then which brings me to my first question for you which is i see how much money you are now spending on rnd and youre spending on capital expenditures. You must be saying that these tract o these combines are filled with technology now. These are not all generic machines anymore. No. The quality is still the same so they last forever. We have excellent service, but also the technology changed a lot, and this is one of the reasons why we can actually help farmers increase their productivity to make them more efficient. Youre going in some really great companies. We know that, and are you out engineering them because you seem to be growing in a market that many people say is not growing that much. We are leading by technology and our strategy is not to compete by price, but to offer the leading technologies and weir the leaders with the plant in conventional tractors and we have the best tractor in the world and so we also invest a lot in precision farming which has helped the farmer with yield mapping and with auto guidance in order to reduce the use of equipment, the fuel consumption, pesticides and fertilizers and so on. On one of the things that i find amazing is you had a huge upside surprise. Youre doing incredibly well in brazil and incredibly well in europe and youre doing great in north america, but in the end your stocks up 10 and almost as if its hostage to crop reports and how wrong is that given the International Global breakdown of your business . You dont talk too much about farming and that is one reason why we maybe dont have so many investors. We are undervalued, i agree, but we will have another record year so we are planning to beat our last two records years. We will outperform our competitors and therefore, i think, wise people look into our stock and say this is the right time to buy. I cant disagree with you. Your business is on fire. One thing i think people worry about is the house of representatives in our country wants to cut the foreign subsidies and europes weaker and they subsidize farmers. In the end, the farmer does get subsidized, though, right . Youre not really concerned and maybe through ethanol or through food stamps, there is money for farmers in this country and in europe. Yes. Actually, and nothing is new. So that means those programs are discussed quite in advance. Farmers know what they have to be prepared for and what drives the demand is as you mentioned already, the growing World Population and changing diets like china and india where people tend to eat more meat. As soon as you put in more meat, you have to put in more crops and therefore, farm income is rock solid and that means farmers do have the funds to invest. Crop prices in this country are not at the highest level, but youre saying worldwide, theyre still at a very high level. Yes. And they are compared to previous years still on a pretty good, pretty high level and what counts is basically farm y2k. This is the function between the club prices and the input costs and theyre making pretty good money and they dont talk so much about it because farmers like more to complain, but they complain on a very high level right now. Mr. Reish, i have one last question and this is important for me. It looks like your raw costs are going down. Your labor costs are stable and thats why the Gross Margins are so terrific, and better than the rest of the industry. Our strategy is to increase our margin, to improve our margin, and i want the target to be 12 . We are not there and we are just about 8 to 9 this year and we are shooting for ten for the remainder of the year, and so i think what drives our our stock price is, one, we started to pay a dividend. We enjoy creating investment in the meantime and we also want to improve our margin performance and we want to see. I know that china is still a very small part of the puzzle for you. What will your pie charts look like say five years from now when it comes to china and apac . Actually, we are already number two in india for the licensee and those numbers because of the we own around 25 of this partner, those numbers are not consolidated in the sales numbers, for example. In china, we think we will see a big growth because we invested in a combine business. We bought some years ago. We have small tractors, big tractors. We have built a grand and the footprint of the company would change towards 20 being generated in china. Well, sir, your stock sells for below ten times earnings which is ridiculous. Youre doing well too well. Mr. Richenhagen, and thank you so much for coming on mad money. Thank you for having me. This is a cheap stock and Everyone Wants a machinery and industrial company, if you can get any company like this that beats the numbers for under ten times earnings thats what you buy. Agco is right. Stay with cramer. Oh, hes a fighter alright. Since aflac is helping with his expenses while he cant work, he can focus on his recovery. He doesnt have to worry so much about his mortgage, groceries, or even gas bills. Kick kick. Feel it feel it feel it nice work you got it you got it yes aflacs gonna help take care of his expenses. And us. Were gonna get him back in fighting shape. [ male announcer ] see whats happening behind the scenes at aflac. Com. [ male announcer ] see whats happening behind the scenes humans. We are beautifully imperfect creatures living in an imperfect world. Thats why Liberty Mutual insurance has your back, offering exclusive products like optional better car replacement, where if your car is totaled, we give you the money to buy one a model year newer. Call. And ask an Insurance Expert about all our benefits today, like our 24 7 support and service, because at Liberty Mutual insurance, we believe our customers do their best out there in the world, so we do everything we can to be there for them when they need us. Plus, you could save hundreds when you switch, up to 423. Call. Today. Liberty Mutual Insurance responsibility. Whats your policy . What number finally gets china off our radar screen . What number do we need to see before we say okay, enough already. Commodity stocks are so low the producers are cutting back to the point that you say, we have this level. I think we hit it last night. The chinese gdp growth figure and it was actually in line. Thats right. It didnt disappoint at least for a change. It didnt take the market down and it didnt cause people to talk about the collapse of china it was just there, kind of a nothing. It didnt upset. It didnt thrill and just left you saying at the same time, the irony of irony, the lead story in todays wall street journal. The big news of the day, china slump ripples globally. Wow stop trading its finally a headline that china is slowing. What is this confluence handle . Why . Remember the market at the bottom . Our markets used to go down regularly during the 2011 and 2012, didnt they . Remember when there were whole periods that we freaked out each single time and how scary it was when we came to work . Remember when we would worry about every little piece of data out of europe and we said its not so hot, but its not that much worse than expected and then its roughly in line numbers and then we have to i guess, well, not so bad ones and yeah, it figures. Thats progression. Thats the five stages of Economic Group that brought stabilization to the european bourses and the rest of the world. At no point did the data come in better than expected. We still have a smattering of data points that are actually better than expected, but look at how high hes gone without that. The difference is its now on upside surprise mode and thats quite a journey from the down side when you think about it and no bell ever went off. You never heard that. In heterospe spekspek spekspeks saw china slump, except it said european slump. In fact, the gdp number drove the aussie dollar and china would go higher initially. I saw the index rise for men weeks now and the world price of oil is being pulled up by the financial buying and the hedge fund against inflation and its being aided by the chinese demand. To put it in a nutshell for several years now its been bad, but compared to the rest of the world and anybody else would kill for those numbers and when we hear that, we quickly dismiss it because we know that china is supposed to be growing in double digit, right . What happens if dieja doesnt go back to double digits . What happens if we settle in to the its not so hot and not worse than expected followed by thats roughly in line and then the we get europe and china we get a bottom. Not necessarily a tradable bottom because i dont like the way the stock market works and its pretty awful at rung a stock exchange, and even patient ones when it comes to world trade. All of this tells me you can keep an eye on china and not necessarily in a negative way anymore, either. Just keep that bottom in mind. Its beginning to repeat itself in china right now and, well, like usual, its happening when we least expect it. Stick with cramer announcer scottrade knows our clients trade and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Voted best Investment Services company. Its hard to believe he was ever sick. But the bills, they just keep coming. You remember the Life Insurance you bought years ago. It has living benefits that you could use for times like this. whispering mom, is he sick . No, honey, hes fine. Dont worry. Your hair will grow back. Mine did. [ male announcer ] state farm puts the life back in Life Insurance. With benefits you can use when you need them most. [ male announcer ] some things are designed to draw crowds. Others are designed to leave them behind. The allnew 2014 lexus is. Its your move. Good job at citigroup, letter c. Theres always a bull market somewhere. I promise to find it here for you on. The new week has begun. So where exactly is that terrible gas spike that we have been talking about and what impact might it have on the u. S. Economy . We are certainly going to let you know. Nothing can derail this rally, not even oils big jump. Stocks at alltime highs. The nasdaq 100 up for a remarkable 14 sessions in a row. 19 america is that record. Plus, england considering privatizing its post office. Should we do the same . A question we want to hear from you. Tweet me at sully cnbc. Well discuss and