Of massive overvaluation masks what can only be described as the wholesale destruction of the bubbles already right before our eyes. In fact, today was the first day in ages that the beaten down bubbles didnt get stomped on. Dow climbing 112 points and the nasdaq, the home of the deflated bubble, skyrocketing 1. 77 . After a prolonged period of underperformance when the bubbles were being popped. We got to wade into this bubble debate. Lets first talk about the prevailing. Hardly a day goes by where we dont hear criticism about the inflating bubbles of technology and biotech. Were told that companies are being valued at outrageous levels not unlike the year 2000. And it all has to end in tiers for every stock as it did back then. Theres only one tiny problem. The bubble has been popping for months maybe the critics havent noticed. Today was a reprieve from the relentless deflation and even though it will hasten another round of bubble talk the stocks went up the facts dont fit the bubble story. What is the story here . First, were constantly confusing year 2000 with now. Its silly. While we have had some ridiculous overvaluation going on in the internet and cloud related stocks as well as biotechs you to remember more than 300 companies that came public during the dotcom era failed. They failed because their businesses werent predicated on earnings or even sales. But on eyeballs. Unique viewers and concepts. Most had no real cash flow. The difference today is palpable. You may hate work day, concur technologies or cornerstone on demand, all of which roared today, so be my guest and sell them tomorrow. I dont care. You may think that salesforce. Com and yelp are re pullsive on the system. You can even be rallying against facebook and google. The idea the stocks are somehow updated versions of the failure of 2000 smacks more of fiction than fact. The companys whose stocks have been pummeled of late are largely cash flow positive. Its theyre spending like theres no tomorrow. They want to take advantage of the opportunity. So they cant be valued on earnings. Im not crazy about what theyre doing but at least understand theyre making money. That was perfectly fine for years, ever since the great recession. When we focused on revenues and revenue growth. Because earnings were seemingly made up by the smoke and mirrors of layoffs and buybacks based on stagnant sales. Ever since revenues started growing for much of the s p 500, and the valuations for the high flyers became stretched beyond all reason, weve seen the dramatic reversal with money flowing from high growth to l growth, little value and no dividend, high value, big dividend, abetted by low Interest Rates which makes the dividend look even better. To pull that money out of the high multiple stocks with little grounding toward the traditionally valued stocks is an exact replicate repeat of what happened when the nasdaq peaked in 2000 and cash poured into the blue chips in the s p 500. You just cant tell by looking at the s p itself like the chart, because it, too, was riddled with overvalued techs including microsoft which was valued at 476 billion, its now at 330 billion, cisco, 448 billion then, 120 billion now, and intel 27 billion then, 131 billion now and oracle 260 billion then and 187 billion now. Can you believe it, 14 years ago, after all the wealth the companies created and they are still not where they were. Those four names plus General Electric accounted for 17 of the s p 500 and their stocks pretty much all blew up at the same time causing the s p to decline, gave the appearance of a broad retreat, when, in fact, it was anything but. In short, during the dotcom collapse the damage really was cordoned to the high flying tech stocks but the high flying tech stocks freedom nated. Not anymore. Look at whats happened this time around. Many of the growth Money Managers were conditioned to buying stock or at least paying up for stock when these companies, the high flyers, beat on the top line and raised revenue guidance. Frankly almost pavlovian. This was a recipe for higher stock prices over and over again until salesforce. Com in the last week of february beat and raised as everybody wanted and got crushed and that began the routh thats gone on. Amazon the great survivor of 2000 has been rallying with that same revenue increase playbook. And increase in sales means an increase in market cap. But that, too, waned along with sales force. Ever since we lost those two umbrellas, many of which of the companies ive mentioned copied those two companies its been hard to figure out what to pay for these names out there most of which are, indeed, inferior to sales force and amazon which are very good companies. Now you later on the relentless Insider Selling in the group along with the remarkable proliferation of ipos in the same areas and you end up with a glut of hard to value, high Growth Stocks. At the same time we add added developing shortage of high quality, easy to value stocks shrinking in floats for years with huge buybacks and thats what happened when the bubble popped. Now this has been an excruciatingly painful process, because bart and parcel with the excess of growth to value, weve seen the wholesale abandonment of stocks aside from traditional p e or price to earnings ratio. The market has lost tolerance for high priced to sales ratios. Its demanding earnings and wants reasonable levels of valuation on those earnings and not satisfied with good cash flow. So take shutter stock, the Excellent Company we featured on fridays show that matches buyers and sellers of images via the internet, thats a terrific business. Its been growing in astounding 40 clip. This new market says, who cares to that growth. It means nothing. So then the market defaults to earnings per share. Shutter stock could earn 1 this year. That would be pretty great. Right now trades at 67, down from 103. Thats a big decline. Probably a compelling discount to some but at the end of the day it sells at 67 times earnings. A sky high multiple without any hope of a dividend or buyback in sight. With the average stock selling for 17 times earnings in the s p 500, the market really has no idea what to do with shutter stock frankly. When it doesnt know what to do with the stock, that stock gets sold down and down and then down again. You can put every high flyer through this same ringer. The software as a service stock that traded well last year with the overvalued ones that came public this year theyre a total conundrum. Who knows what to pay for them if we dont care about revenue growth. The only answer is lower. The biotechs with no earnings, lower. The security and ecommerce plays, lower. The problem with all the bubble callers is that these stocks have already been downright radioactive for two months and going lower lower and lower. If anything we saw today they were due for a bounce. Some of them have come down so much they deserve a look see on a takeover basis. And because the short sellers who have leaned against them are at least taking some profits, look, if russia acts up, china breaks down or if Interest Rate goss lower, these moves will be repealed quickly. We still havent figured out a way to value the stocks. Ultimately the bubble bursts months ago and the decline has gone a little too far, at least in the straight line, because it had begun to knock down the valuation of stocks with genuine and rapid earnings growth. Earnings growth. Simply because theyre in the same zone of influence. For example, consider google. Google sells at a discount to the average stock 2015 earnings. Its next year, people. Does that make any sense some its growing like crazy. How about this one . Facebook is at a discount to the average stock on 2016 numbers. You know what, thats ridiculous. Its ridiculous given the strong and saleable motes they have developed over the years. Even if alibaba came public i wouldnt sell facebook. I would buy it. Doesnt mean the stocks with no hope of earnings in the foreseeable future or absurdly high valuations dont have further to fall after this momentary reprieve. The issue, though, is not that theres a bubble. Its that there was a bubble. Was. And were now simply trying to figure out what to pay for the stocks postbubble but not sure what levels to use. The bubble talk at this point it now ob few skates genuine opportunity among stocks that do have good earnings and high growth. It also scares off so many people from solid stocks that arent overvalued at all. But for the rest, lets just say you should use any prolonged bounce to sell. Because we havent reached a way to value them on traditional earnings terms and until then, theyre in limbo which is no place to be. Chandler in georgia, chandler. Caller hi, jim. I just want to call and get your stocks on the a and b and a good value around 4 considering they have the new partnership with arm holdings . I am in the end a brees of breed guy and i have been burned so many times by amd i cant go there. I cannot praise it. As soon as i do what will happen theyll preannounce a worse than expected quarter and people will say jim, why didnt you do homework amd. I am not going to recommend the stock. Hey, guys, i have news for you, any market bubble we were in, its been popping for months. Cant you hear it . Now were just trying to figure out what to pay for the stocks postbubble and that might take some time. Still ahead going on vacation this summer . You may want to book more than a room at your Favorite Hotel chain. Burritos or big macks . Not talking dinner, tooed to fatten your portfolio. Im serving up the best stock. Mad money will be right back. Dont miss a second of mad money. Follow jimcramer on twitter v a question, tweet cramer, madtweets, send jim an email to madmoney cnbc. Com or give us a call at 1800743cnbc. Missin something . Head to madmoney cnbc. Com. Fame, makes a man take things over fame, lets him loose, hard to swallow fame, puts you there where things are hollow the evolution of luxury continues. The next generation 2015 escalade. Fame despite all of the turmoil lately theres still bull markets out there. Right now i think we have a stealth bull in the hotel stocks. Why . First of all n developed markets like the United States there are few new hotels being built, at least by historical standards. Travel has been on the rebound for years. So the industry has limited supply coupled with increased demand and basic economics 101 tells us that leads to higher prices which is whats happening. The key metric in the lodging business is revenue per available room or rev par. Revenue per available room which is one part pricing and one part occupancy all these terms are in get rich carefully. Rev par growth in the u. S. Looks to be accelerated and when that happens the hotels go higher. The whole group is looking good here. But that begs the question, which one should you own . In order to help you pick winners were ranking the four hotel stocks you hear about all the time on cnbc, starwood, marriott, hilton and hyatt. Whos number one . My Favorite Company and my favorite stock in the industry is Starwood Hotels and resorts. The aptly tickered hot. Starwood manages 1200 hotels under the sheraton, weston, st. Regis, w, four points and Meridian Brands among others. The thing i adore about this company is that under the leadership of the ceo who has been on the show many times, starwood has pioneered whats known as the asset light business model. What does that mean . Basically starwood recognizes its true expertise lies in Running Hotels not owning real estate. Why the company runs 1200 hotels they only own or lease the ground under about 50, the rest they manage without owning the property or farm out as franchises. This is a terrific way for a Hotel Company to grow its business rapidly without having to spend a fortune on real estate development. Starwood gets half their business from overseas with a lot of emerging markets exposure. At the moment many of the emerging markets in asia are looking ugly, they looked great at the time, however ive bet against starwood based on a chinese slow down and that was a mistake. They will do it again. Thats not all. Starwood is remarkably shareholder friendly. The company has a base dividend of 1. 40 per share and that only yields 1. 8 . Back in february they announced a 2. 60 special dividend, we love special dividends on mad money, to be paid out in four installments over the course of the year. You missed the first one. Theres three more to go which means at least for the next seven months starwood has a 5 yield. Also the issue of the buyback. These guys have been pretty good about repurchasing shares, repurchasing aggressively. The company didnt spend a single penny buying back stock in the first quarter. I dont know if management wants to wait for a lower price or what. But i think the cessation of the buyback is the reason the stock has done nothing year to date. Heres the good news. Starwood has 650 million left in its repurchase authorization equal to 4 of the market gap. If they start buying again i think that could buy buy buy. Ignite the stock. Starwood is not cheap. Sells for 28 times earnings. Has the cleanest Balance Sheet and best management in the industry and with the special dividend makes it a 5 yield for the rest of the year. The company is paying you to wait for the buyback to resume. Whats the second best hotel stock . Counterintuitive. I think that marriott a truly fabulous operator is the second best Hotel Company. But the trouble with being a fabulous operator is that you dont have much room to improve. And the stock market loves improvement. Is which is why im ranking hilton as my second Favorite Hotel stock because theres so much more hilton can do to make itself a better operator with a stronger Balance Sheet even though it is an inferior company to marriott. Hilton is the largest lodging company with over 4100 hotels and time shares, 91 countries. Hilton, wall dorf, conrad, doubletree, hilton garden in and hampton brands. Company taken private back in 2007. Then it became public last december 20 a share. This is a different hilton than the company that was taken private. It now has the Largest Development pipeline in the industry. 60 of which is overseas. And crucially these news projects are mostly being financed by third party investors. I like that. Hilton wants to move toward a capital light fee base model, kind of reminds me of starwood. This management and licensing side of things accounts for half of hiltons business. Thats good. Its consistent. What i like most about hilton, is that its a better Balance Sheet story and i always like those. Shortly before becoming public hilton completed a 13 billion refinancing of its capital structure. So they now have a no big near term Debt Maturity that was killing us and paying a much lower Interest Rate courtesy of the federal reserves Bond Buying Program and unnaturally low rates that we have anyway. Plus they raised 1. 24 billion from the ipo they did and used the bulk to pay down debt. Management has been getting their bonds to Investment Grade status which would allow hilton to save money on interest. The thing about an improving Balance Sheet the things go to the bottom line and to you shareholder. Thats a major reason why hilton blew away the numbers when reported last friday. The company had terrific 6. 6 growth in its revenue per available room market didnt go crazy for it. I think thats wrong. Next up in third place we have marriott which has 3900 properties under the many marriott and ritzcarlton brands. This stock has been jugging higher all year. One of the reasons im not crazy, its had such a big move. Company extremely well run. Following the excellent asset light model business as starwood. It was a terrific beaten raise. On top of that it generates a ton of cash, cash used to buyback stock. Year to date the companys already are we in may repurchased 9 million shares for 467 million equal to 4. 6 of the stock. They got over 30 million shares left in the buyback authorization which at these prices equal to 10 of marriotts market cap. By the way thats what everyone was hoping for from starwood. Like i told you marriott is a Better Company than hilton. If you believe as i do that hilton can keep improving hilton could be the stock with more upside. Although i wont hold it against you for marriotts cleaner Balance Sheet and epic buyback. Hyatt reported Strong Quarter at the end of april but remember we have a bull market in lodging here. Hyatt is the smallest of the bunch, doesnt have a huge buyback like marriott or the c student becoming a b student like hilton and a little expensive, 53 times earnings. Heres the bottom line. Dont ignore the stealth bull market in the hotel business. Starwoods my favorite with that special dividend giving it a 5 yield for the rest of the year. Hilton has upside as the Company Improves itself and marriott well run with a giant buyback. I could endorse any of the three, please, though, lets skip hyatt and if starwood starts buying back its shares the stock could take on ten points in a heartbeat stay with cramer. Coming up burritos versus burgers. The fast growing chipotle and the established icon mcdonalds. Youve probably eaten at both but which stock should you be taking a bite of now . The one cramer is ordering up might surprise you. And later eye on the aisles. The biggest winner on wall street today was right under your nose at the local grosser. Critical foods. The next money maker may be hiding in the supermarket. Stay tuned. Were moving our company to new york state. The numbers are impressive. Over 400,000 new private sector jobs. 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Weve seen staggering losses in last years hottest starts. The turbo charge growth names. The last few months people have lost fortunes in tesla, amazon, facebook, salesforce, whole foods, chipotle, and these are just the more legitimate established players. Anybody has had the misfortune of owning the biotech ipos has been annihilated. Heres the weird thing. Unlike in the year 2000 where the dotcom implosion dragged down the whole market, laying ways to the major averages, but the tech stocks dominated, this time around not only has the Broader Market hanging in there, its actually doing well. Dow jones average hit a high again today. The momentum meltdown hasnt spread to the rest of the market. I would argue contra to Everything Else you hear the weakness in the Growth Stocks is partially responsible for the strength in the slow and steady consistent value names. Because as Money Managers sell hand over fist they have to put that money somewhere and theyve been sticking it in safer stocks with buybacks and dividends and valuations that dont give you nose bleed. Now thats been the dynamic over the past ten weeks. Not the ten days either like people say the bubble is just starting. But it was not the dynamic today. Today we saw resurgence of the momentum names, which i think this is the Perfect Moment to put this issue in perspective. I do not believe that resurgence necessarily has to last but its gone pretty well for now. How can we make sense of the market . Well lets step away from tech. Tech is too emotional. Let me give you a pair of examples that illustrate the Current Situation perfectly. Mcdonalds versus chipotle. Aka, my modern day retelling of the tortoise and the hare. Obviously chipotle is the had, are and all i know may be future fast food in america. Putting up new stores all over the place with a concept natural food with integrity allowed them to produce the hottest samestore Sales Numbers in the business. And until a couple months ago chipotles turbo charged growth was exactly what this market wanted. Last year the stock surged from 300 to 530. And by early this march, before the whole market changed its stripes, it had climbed to 622. Ever since, growth at any price went out of style on wall street fashion show, the stock has been decimated falling down to 510 where its is right now. Yeah the growth thing disappeared. The hare had an amazing run. Two months ago started napping. Been losing ground ever since. Compare that to the slow and steady mcdonalds the tortoise of the fas food world. Mcdonalds has developed a habit of putting up mediocre results. Growing at a snails pace compared to chipotle. What mcdonalds does have, supports 3. 15 yield unlike chipotle which has no dividend. Also has a hefty buyback. Last year when Interest Rates were on the rise those traits were not valued. Mcdonalds was the fourth worst performing stock in the dow for 2013, up 10 , the s p rally 29. 6 . This year things has changed as the momentum stocks fall apart mcdonalds has climbed from the mid 90s to 102. 86, an 8 gain. The tortoise is catching up and done without any good numbers posted by mcdonalds. You know what thats about . Its not about the food. Its about the dividend. Take a look at this most pertinent chart of the yield on mcdonalds versus the yield on the tenyear treasury. This is remarkable. At the beginning of the year the tenyear sported a juicy 3 . Okay. Go to the beginning of the year. The tenyear is the blue line. At that level treasury make a ton of sense for any investor seeking a riskfree return. Over the course of january treasure yields plummeted. Right now the tenyear giving you 2. 65 . Thats not attractive. The low Interest Rates make dividend paying stocks like mcdonald sexy to investors who want income. Because dividends get special tax treatments mcdonalds 3. 15 yield is more attractive versus treasuries than it looks. Rather remarkable. This is a chart of the performance of mcdonalds. As witnessed through the dividend prism. In short the big Institutional Investors want nothing to do with chipotle but crave mcdonalds because they crave mcdonalds yield. Cheese. Mcdonalds yield like a big mac. You can see this in how the markets reacted to the quarters. April 17th, chipotle reported results that would have sent stocks soaring if they had been reporting reported say any time in 2013. But this is a new environment which is why the quarter caused the stock to drop 6 in the single session. First the good. The Company Posted a phenomenal 13. 4 increase in samestore sales. That is much better than the 9 gain we had been expecting. This has been the key metric we cared about for the slow growth period coming out of the great recession. In this market you need more than explosive sales growth. Chipotle missed wall streets earnings estimates dramatically because theyre investing money to grow the business and huge rise in food costs up 150 basis points to 34. 5 of the companys revenue. These guys are getting killed by higher beef, cheese and especially avocado prices. Something i know about because i run my own Mexican Restaurant in brooklyn and my food supplier, my guacamole guy are taking me to the cleaners because im a sole operator. Even the guac apocalypse couldnt destroy a good cinco de mayo. I believe chipotle is a Terrific Company but the stock selling 40 times 2014 earnings and thats not what this market wants or willing to eat. You can put it on your Shopping List and pick it up when it trade downs to 35 times earnings. Chasing this hare could hurt you. How about mcdonalds. The tortoise reported a hohum quarter with samestore sales up. This puppy had 13 and nobody liked it. This had 0. 5 . The stock has been able to move higher on the 0. 35 . Why . Because mcdonalds has what the market wants, 3. 15 dividend yield, a stock that sells at a reasonable valuation, which may not be cheap but is not nose bleed expensive and buyback that shrinks and boosts the earnings per share but plus a fantastic Balance Sheet they could do something with plus lets face it with its clout mcdonalds can get better food price, 35,000 locations, they can strong arm their suppliers. Unlike chipotle mcdonalds isnt trying to change that food change. May be farmed and dangerous but affordable worldwide. Kind of a tradeoff. One more point. Mcdonalds has been doing well even without particularly good results. So just imagine for one moment what happens if the company gets it right . Say with a low single digit samestore sales increase, c student getting a b more attractive to the market than an a student like chipotle getting an aminus. I dont want to single out mcdonalds and chipotle here. Im just trying to show you whats in style on wall street and weight out of fashion. We could have done the same thing in software with a value stock like oracle, 52week high, salesforce. Com has been eviscerated. Intel versus arm holdings. The bottom line, as weve seen from the tortoise and the hare, aka mcdonalds and chipotle, buyers are no longer willing to pay through the nose for growth. Theyre selling growth at any price. They can swap into Safe Companies with beautiful dividends, great Balance Sheets like mblgdss when the safe component arent produce stellar results. Where you would rather eat at chipotle where the food is better and more natural and organic than mcdonalds will ever be. James in new york. Caller booyah from james in new york. Whats up, partner . Caller i wanted to talk briefly about sonic restaurant. Does this stock have a downside . I mean it just keeps going up. It keeps going up because it puts up better and better numbers and room for expansion. Its come back a little bit but i think sonic is a cheap. Im a buyer of sonic. Why dont we go to roger in california. Caller hi, jim. This is roger in be san clemente, california. Thank you for all the wisdom you impart on us. Youre kind. Thank you. Caller im calling you about a stock called dell hayes. The Grocery Store group that is throughout the world. And ive owned it for over 5 years and own about 3,000 shares and it has just recently split 4 for 1 and that concerned me a little bit and i just dont know quite what its good. Guy runs lone pine, steve mandel, smart investor, took a position in kors, turned me on to this stock. Ive liked it ever since and still like. Tradition ishlists will like kroger here. Theyre doing well and i like that stock very much too. Cravings come and go on wall street and investors are hungry for safe, consistent companies with satisfying dividends. Case in point the modern day to tortoise and the hare. Still ahead, its not every day someone tells you do goo after a gold digger. Cancel your match maker. More mad money after the break. Tomorrow, kick off the trading day with squawk on the street. Live from post nine at the nyse. Your farm stand. I always have a farm stand. Always. Theres a lot of ways to bring in income. It starts at 9 00 a. M. Eastern. I make a lot of purchases for my business. And i get a lot in return with ink plus from chase like 60,000 bonus points when i spent 5,000 in the first 3 months after i opened my account. And i earn 5 times the rewards on internet, phone services and at Office Supply stores. With ink plus i can choose how to redeem my points. Travel, gift cards even cash back. And my rewards points wont expire. So you can make owning business even more rewarding. Ink from chase. So you can. Carstheyre why we innovate. Theyre who we protect. Theyre why we make life less complicated. Its about people. We are volvo of sweden. Even though the price of gold got obliterated last year after roaring higher over a decade i believe its worth having good gold in your portfolio. If onlyp as an insurance against inflation and world chaos. Sometimes the economy will do well with little inflation and the precious metal will lose you money. Whenever the crisis hits you will be glad you owned some gold. That could be years and years away but you wouldnt want to buy Auto Insurance until after you got in a car accident, would you . You should treat your portfolio the same way. I always say the easiest way to play the shiny stuff is the eld. The gold stocks themselves can be super risky. There are all kinds of bad things that can happen when running a mine that has nothing to do with the price of the commodity. One gold miner left putting up consistently excellent numbers. And thats randgold. Symbol gld. The most successful player left. While its rallied randgold is up 24 because of Production Growth. This is the growth gold company. When randgold reported last thursday the company delivered a 43 year over year in Gold Production thanks to the ram up of the the mine in the democratic republic of congo. A good place to do business. The company is on track to deliver Production Growth in excess of 30 for 2014, cash costs while up 9 for the previous quarter, down 19 year over year. A closer look with mark bristow to get a sense of the gold business and his company prospects. Welcome back to mad money. Hey, jim. Nice to speak to you. All right. I have to tell you, mark, im hearing about a mine in the congo with some of the lowest finding costs and greatest amount of production and its all yours. Isnt it . Well, weve got 45 . Government has 10 . Were the operators. We run the show there. And it looks to me that even though that this is going to be the mine that will get you well on the way to a million ounces, producing 550,000 ounces this mine . Yes, jim. If everything works out as we plan it will do over 600,000 ounces for the next 13 years. At under 600 an ounce. Thats because youre going to not just have one hole in the ground but five and its a very deep mine like south africa . Weve got the underground mine at the moment goes to about 850 meters, so about 2500 foot. And then weve got five pits as you. I it seems to me your industry is in chaos away from you. I was listening to one of your Conference Calls and youre saying that 40 to 50 of the industry is producing gold thats not profitable . How long can that last . Well, you know, jim, i always say, you know, go back in history, you remember in the late 90s when things were really tough in our industry and we seen the drop in the gold price you know what the gold industry did . They cut exploration, cut capital, and then they borrowed gold in hedging and sold it into the market and put more pressure on the gold price and were doing the same again. Look what the guys are doing. Theyre cutting exploration, cutting capital, and continuing to produce gold at a loss. I know a lot of these companies are for sale. Im sure youve kicked the tires. None of them worth buying . Im afraid not. I think weve seen the rumors in the market about the big guys wanting to restructure and save costs and get efficiencies and the small guys doing the same thing. I think what we eventually got to is that the industry has realized its structurally not optimal and it really needs to restructure itself. Youve been saying that actually youre surprised about the price of gold but when i read through all the things youve been saying over the years, it seems like its a matter of time that the wrong production, the high cost production, closes and demand has actually been consistent all the way along . Jim, can you believe it . Since 2002, the average grade of ore mined by the industry as a whole has dropped from 2. 6 grams to just over a gram. Wonder the cost is so high to produce a bar of gold. Ultimately we have havent invested in finding new gold and that separates randgold from the rest of the industry. We rarely are about looking for those worldclass deposits and bolding them no matter where they are. Do i see 2015 as the year that the ivory coast comes in big . I think, you know, i always say if if you were the fairy godmother and i had a wish of where i wanted my next mine it would be there. But you cant always choose where you find them. But were looking hard. Well, also, just one last thing. I was reading another interview about you. You realized that the congo was a safer place to invest than russia. How is that possible, you had that vision . We spent a lot of time there and you know what . You cant ever control anything. You cant work under the law in russia. You have to rely on other peoples favors. The drc they want investment. They want the money. They want to create jobs. They want to develop their country. And they have a good mining law. You know, at the end of the day ive always said, if you develop worldclass businesses that are highly profitable, you pay tax, you employ people, what else do politicians want . So youre not worried about any sort of change in the tax regime in the drc . Jim, i worry every day about every place that i put my shareholders money in. I will continue to do that. Youre doing much better than the industry. Dr. Mark bristow, thank you for coming on mad money. Thank you, jim, for having me. If you want to own a gold stock it is this one. Randgold. Thats mark bristow, ceo of randgold resources. Symbol gld. Dont move. Lightning round is next. [ female announcer ] theres a gap out there. Thats keeping you from the healthcare you deserve. But if healthcare changes, if it becomes simpler. If frustration and paperwork decrease. If grandparents get to live at home instead of in a home. The gap begins to close. So lets simplify things. Lets close the gap between people and care. Dewhos got twond rhooves and just got ae. Claim status update from geico . This guy, thats who. Sfx bing. And i just got a. Oh no, thats mom. Sorry. Claim status updates. Just a tap away on the geico app. Predibut, manufacturings a prettin the United States do. Means advanced technology. We learned that Technology Allows us to be craft oriented. No ones losing their job. Theres no beer robot that has suddenly chased them out. The technology is actually creating new jobs. Siemens designed and built the right tools and resources to get the job done. It is time. It is time for the lightning round. [ inaudible ] the calls, questions. Play the sound. And then the lightning round is over. Are you ready . Time for lightning round courtesy of mad money. Start with richard in california. Richard . Caller jim, how are you doing . All right. How are you . Caller pretty good. I dont say that booyah, whatever it is. Exactly. I feel the same way. Caller out west. Let me ask you something. Some 20 years ago i started buying shares because the stock kept going up but at that time it was [ inaudible ] i dont know if you remember back far that. Sure i do. Caller now its my main franchise player enterprise, products partners. Right. And that is a great stock. It doesnt have a great yield anymore. Why . Because its going up so much. I do think it is Worth Holding for an income vehicle. Jerry in florida. Jerry . Caller hey, jim. How are you . How are you . Caller from florida. Thank you. Great show. Thank you. Caller you make it very interesting. Thank you. Caller my question is, i guess, is on yahoo and alibaba, ipo coming out some time soon, and kind of really the future of yahoo with the alibaba right. Heres the thing, after tax consequences theres still going to be a lot of money coming to yahoo . I think yahoo can reinvent itself with that money if it decides to buy a High Growth Company so i like the stock of yahoo . I would not be a seller. I dont think its as poorly managed as others thing. Larry in colorado, larry . Caller hello, jim. Hi, larry. Caller my question my question is, encana with the acquisition of the Texas Oil Company last week for 3. 2 billion i thought that was a brilliant acquisition. And encana will explain it tomorrow when they report. I think encana is a buy, not a sell. To sally in arizona. Sally . Caller booyah, skeedaddy. How are you, jim . How can i help . Caller long time listener, firsttime caller, respect your work and your show. Thank you. Caller athena. Athena comes under the category of stocks i dont know how to value anymore so i think they can go longer. Sounds like 100 times earnings and were valuing stocks on earnings per share. I was told that i was the big supporter of atheen that by some Hedge Fund Guy and i just say, you know what, so many people say so many things different about me, what i suggest is people watch the show and make an informed judgment about what im talking about. Athena, i cant value. Too expensive. John in california. John . Caller jim, love your show. Thank you. Caller [ inaudible ] profit posse for jim here. Thank you. Caller we are playing the lng play. I remember. I think the lng portion of the capital structure is too expensive. I like the Master LimitedPartnership Part affiliated with that, charif soukis company, respect what hes done, dont care hes paid a lot of money because he came on this show at 8 and told you to buy the stock. How many other people give you that leads upp. To rick in new york. Caller jim. Rick . Caller hello from a future home in buffalo of the great clem mens receiver sammy watkins. True. Caller emerged Energy Service a steady rise in price and given its business do you consider it still undervalued . No, not anymore. Its had a big move. It has a good yield. No at these levels im not going endorse it. And that, ladies and gentlemen, is the conclusion of the lightning round the lightning round, is sponsored by td ameritrade. Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. A rwbecame your business. Rswim. Passion. At t can help simplify how you manage it. So you can focus on what you love most. When everyone and everything works together, business just sings. Ladies and gentlemen, i have a pure good news story about a stock and i want to shout it from the rooftops. Close watchers of this show know we think theres been a lot of junk coming public this year. Most initial Public Offerings since the beginning of 2014 can only be described as the jetsome of biotech, the drags of technology, meto companies with no business coming public yet. These ipos are a function of the process where wall street hates the desire of the public with more deals of lower and lower quality in the segments that the markets most rabid for. Thats a far cry from what we saw last year where ipos were priced reasonably, managements and bankers alike were determined to bring merchandise at prices everyone wins. Case in point, Pinnacle Foods. Which you might know as birds eye, duncan eye, pickles, fish sticks and so many other terrific household brands. Heres a company that came public a year ago, 20 bucks, rallied 11 on day one. Thats the best possible outcome of the first day. Everybody wins. Company which had a lot of debt managed to help fix its Balance Sheet with new capital. The buyers got a nice pop that makes the stock reasonably priced that they can buy more. People who bought it in the open market didnt do badly either. And immediately the ceo and veteran of mars, one of the best Food Companies in the world, set out to create value for shareholders, offering an outsized dividend, higher dividends down the road. He made that promise and asserted he would cut costs and make acquisitions to bulk up pinnacle space in the supermarket aisles where the Company Sells its wares. He assured us he could make pinnacle more natural and organic and keyed on birds eye to be his vehicle for healthier foods. He came on the show two months ago and emphasized the cash flow of these brands was so strong he could lay out a multiyear growth plan to create value, an ante dote to the techs coming public to huge acclaim. We have been pushing this stock so darn hard some say ive been pushing it down your throat. I dont care. Meanwhile, pinnacles dividend which gave the company about a 3 yield began to benefit from the bond equivalent trading. Interest rates plummeted taking up stocks with a decent yield. In august of last year pinnacle bought wish bone from unileaver for 580 million. The company could easily afford it. Huge cash flow and it did. When he came on the show he explained the wish bone teal as the classic example of a brand where he could raise his profile and cut costs. He said there were many other opportunities out there and pursued them using inexpensive debt with a quick pay down. He acknowledged he might have to compete with b and n, brands that we favor and a company which should be revalued in light of this morning of whats happening with pinnacle. You know what . It didnt matter. He just told you he would keep his nose to the grind stone. Hes never going to get the chance to make pinnacle any bigger than it is. Why . Because today he announced the sale of this company. He opted to accept a fa nominal takeover bid from hillshire, gives shareholders cash and upside in the deal. Hence, why the stock rallied 13 today. In short, Pinnacle Foods is the kind of tale that gives equities a good name and bob gives executives a paradigm to follow. Congratulations, bob, and all the shareholders who benefited from this amazing 15month run. Stick with cramer. Were moving our company to new york state. The numbers are impressive. Over 400,000 new private sector jobs. Making new york state number two in the nation in new private sector job creation. With 10 Regional Development strategies to fit your business needs. And now its even better because theyve introduced startup new york. With the state creating dozens of taxfree zones where businesses pay no taxes for ten years. Become the next business to discover the new new york. [ male announcer ] see if your business qualifies. Rack space a heavily shorted high flyer reported better than expected number and its stock is flying as directv. I think that could spur another day of rallying in the high multiple, highly valued momentum names. In the new york area, im going to be talking with former treasure secretary Timothy Geithner right after the show this wednesday about his new book, stress tests reflections of financial crises at the barnes noble at union square. It could be great. Well be Live Streaming it online cnbc. Com. You know the key role he played. I have questions you might not have seen yet. I promised to find it tonight, on the profit, i go inside mr. Green tea, a secondgeneration, familyrun ice cream business that has hit a wall. We physically cannot fill our orders to the distributors. The fiery dynamic between the father and son is hurting any chance of growth. You are strangling the business. Back up. Youre crossing the line between father and boss. If i cant fix their relationship and business, this company will be swallowed by a competitor. My name is marcus lemonis, and i fix failing businesses. This business will never function well under the green tea name. I make tough decisions. It was a mistake. This is never gonna happen again. And back them up with my own cash. Thats a real check, by the way. Its not always pret