You need to understand its seemingly unrelated developments can actually have a lot in common. Im talking about the unveiling of apples new smart music device, the home pod, and the departure of Mickey Drexler from the top job at j. Crew. What does a high end speaker system have to do with the resignation of a retail ceo . They help define whats working and not working in this crazy stock market. If you dont know mickey. Hes the legend who turned gap into a powerhouse and left to ignite j. Crew. He succeeded behind his wildest dreams at crew. That was his second second gig. People tend to forget that, i dont. Seven years ago, he was doing so well, he and two different private equity firms took the company private. For the next several years, things went well for mickey. Like so many others who sell apparel, particularly in the mall. Things started to go down hill. The same store sales have been down for 11 of the 12 lost quarters. Not unlike a lot of others. Given that mickey is one of the greatest clothing retailers of all time, there have been tons of stories about how hes struggling. You see, no one who runs a stand alone apparel chain is doing well these days. You name it, from urban outfitters, macys, jcpenneys, neimanmarcus, nordstrom. Apparel has been disastrous. The reason . I think it has to do with brand loyalty. There is none. Even a few years ago, you wore crew, you know what you wear now, you wear clothes . In the old days you liked crew style. Now you wear whatever you saw last. Even louisiana lemon. I think lulu has beaten back lot of the competition. But in the age of amazon. Where driving to the malls mickey couldnt entice people to go to a place they didnt want to go to begin with. Who cares how the stuff looks if no ones there to see it . Traffic, not the merchandise itself, is the real retail killer, as we heard today in a difficult presentation by macys. Which saw its stock drop 8 , to a 52 week low. Pvh which we had of all time, has done a fabulous job putting together a house of brands. I would argue that mannys best move was diversify away from the United States where the real growth is, his second best . Keeping inventories lean here in america. Although its important to point out that one of his designers of calvin klein just won the mens and womens designer of the year awards, which will boost sales in the Big Department stores come the fall. Thats another reason to own that consistent company stock. Really the only one im recommending in this group. Pvh, its the exception. Macys is becoming the rule. Just think about the landscape. Remember when underarmor was all the rage . Now its all the rage at tjmaxx, thats not where you want a rager. Remember when victorias secret couldnt miss . Now it condition the hit. Urban outfitters used to crush the numbers with fashion . Now theyre talking about how fashion is difficult. Thats code for loyalty. Or the lack there of. Young people dont go to the mall to hang or peruse. Theyre laser focused, head down, getting what they want and going home. That hurt crew immensely. Its hurt the whole sector as we recognize that this country is dramatically overstored. It wouldnt surprise me to see as many as 7,000 stores this year, turning some malls into ghost towns many crew had a worse balance sheet. The darn thing hasnt had to file for bankruptcy. I know, low bar. But it was able to attract top talent in the form of james brandt. The man behind the success of williamssonoma. I wish him luck, given the current landscape, hell need it. What does any of this have to do with apple . Other than Mickey Drexler is a former board member on apple for 16 years. Despite all this internet mediation, apples got the best brand loyalty in the world. I know, its covered by these tech analysts, the best days are behind it. The loyalty is the key to the earnings per share, its the key to why Warren Buffett became the companys largest shareholder. See, apples charging 349 for its yet unseen home pod. Get that, the amazon echo is at 179. Yeah. And you know what, even though this thing is much more expensive, i think its going to have a lot of takers, why . Even as the wall street journal asked, home pod first look, hey, siri, what took you so long . I think the answer is Crystal Clear to the apple lovers out there. What took so long . They took their time, they wanted it to be perfect. See, apples phones are the most expensive phones in the world. They force the phone companies to pay full boat, the carriers dont bat an eyelash. The customers want them. When apple develops a new ipad, tens of millions of people want them. They go to the apple store, they see them, theyre blown away. Apple develops a sound device, we know it will be the best. I love my echo, its really cool. I asked it to play coltrane the other day. I got a fantastic array. The sound didnt blow me over, its going on there. Okay, well, it played coltrane. It knew coltrane. There you go, i have a logifech bluetooth speaker. I like it okay, pretty good sound. Im an audiophyle from way back. Nevertheless, im still going to ask for a home pod for the holidays, i figure tim cook wouldnt be releasing it, if the sound werent better than whatever else is on the market. Im not saying im insensitive to price, i am saying that my loyalty to apples brand has never been unrequited. Dont you increasingly believe that most apparel is generic . My daughter bought me a 55 incher the other day, i didnt ask which maker. I figured it would work no matter what. Same with the fridge and washer and dryer. I recently bought a terrific bike. I had never heard of the brand, i love it. In each case, i used to have a brand i was loyal to, to me, it would have been herecy at another time to trade away. Thats what Mickey Drexler ran into. I dont sit there and say, i need to have crew. I dont say i need to have anything. Yes, when it comes to the ult ultrahighest end clothes, theres some loyalty. I buy my casual clothes at costco. Or i buy on amazon. I dont want to browse the mall, i want to get in, get out, period, just like everyone else. The bottom line is, the apple has the kind of Customer Loyalty other brands can only dream of. Its why we pay that price for this stock. With the home pod, my biggest worry, i think i might get too many of them. Will my daughter communicate with my wife . Or will they both give it to me . I mean, they know i want it, i want something apple makes, thats enough for them. Its enough for me. Bill in pennsylvania, bill. Caller mr. Kramer, thank you for taking my call. My pleasure. Caller a little while ago b t foods were a 50 stock, now theyre having a hard time holding 40. Whats your comments or thoughts on b t foods . It was okay. I like growth, okay . If if i want food, i like growth. I dont want the 4. 96 yield. I like pepsico. You say, wait a second you want to buy 200 shares, you hope something happens with the fed. Theyre having a good quarter. And a good year. Why . Because theyre better than the other people. How about we go to rex in my home state of new jersey. Rex . Caller booyah from sin men cen, new jersey. I acquired pandora simple p, and its making me lose sleep here. Verizon considering investing in th them. With all the rumors, do i sell my position in pandora now or hold it . Heres my problem. I dont care where a stock comes from, i care where it is now. Is it too low to sell . I dont know, i think they did that piece a paper, a lot of people felt that was because theyre able to take it over. I dont think theyre going to get taken over. I think you have dead money. Dead money is not what i want, but perhaps youre willing to ride it for a while. I dont see anything beyond that. Lets go do michael in california. Michael . Caller hey, cramer. I use yelp heavily for their reviews, while i was reviewing my stock portfolio i came across them. Is yelp still a tasty stock or has it spoiled . I like that last quarter from yelp. They were thinking maybe stocks completely lost it. This was a quarter that said to me, yelp like distill low can stay independent and if amazon, google, if all these suspects havent killed them yet, i think theyre going to make it. Yeah, im okay with yelp. When it comes to whats working in this environment, loyalty is key. Loyalty per share, apples got it, j. Crew unfortunately suffers a different fate. Mad money tonight, palo alto surged on earnings last week. A potential for true turnaround behind the firewall . When will oil really go higher . I mean, not like 48 cents higher, but real . One Company Holds the key, im going to reveal it, and then beauty may seem ugly so far this year. Over the 5 rise today, is their beauty beneath the surface . Ive got the exclusive. Stick with cramer. Will you be ready when the moment turns romantic . Cialis for daily use treats ed and the urinary symptoms of bph. Tell your doctor about your medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempas® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis. And get medical help right away. You realize the smartest investing idea, isnt just what you invest in, but who you invest with. Sin men sin. Cinnaminson. What do we make of the Cyber Security stocks here. Many former market darlings getting totally obliterated. The Fast Growing Company that pioneered the next generation firewall. Heres a stock that spent two years getting hammered. Peeking just above 200 in july 2015. And sliding lower and lower. It all came to a head at the end of february, when pail low alto told us some changes in the Sales Organization had a tough effect on its numbers. And the stock lost 20 of its value the next day. The darn thing kept sliding until it bottomed. Palo alto seemed like it may have gotten its group back. The stock is up in just two months. Including a gain last thursday, in the wake of a much better than expected quarter. Much higher than expected revenue, excellent guidance for the next quarter and the full year. Has palo alto gotten their house in order . Lets take a look with mark mcglocklin. Heres the chairman with paloalto networks. Welcome back. Caller thanks, jim. You told us in the previous quarter, were having some Sales Organization problems, were going to fix them, the numbers are coming back. A lot of people are skeptical, isnt that what a lot of people expected . Caller we had a sales force work through. We are very pleased to see the quarter came in better than we expected. It looks like you have taken business away from the larger companies. Can you talk about some of those wins. Were acquiring customers at a rapid rate and growing them after we acquire them. We had the second highest new Customer Acquisition in our history. In q3 with over 2,000 new customers. Most of them are coming from our competitors we continue to take customers at a high rate. A lot of people feel youre goal oriented. Thats not true. People have their own Cyber Security, but the fact is, they i was with gary from prupoint yesterday, they all talk about you as a good partner. Well, you know, securitys a complicated space, and no one company can do everything. At least thats our philosophy on that. Weve been trying to team up with folks who are doing an outstanding job in their portion of the ecosystem. We do a very good job in our portion. What customers ultimately want is for them to do less integration themselves. Let me ask you how seriously were taking this, do you ever advise that internally an organization, they ought to have a red team and a blue team, where the red team is always trying to penetrate what you have, and trying to figure out what the bad guys are going to be up to, and the blue team tries to stop them . Yeah, thats a familiar concept from the military, actually, the in companies of certain sizes, can do that, where they can deploy red teams, blue teams. Regardless of whether you can red team your environment, whats really driving the need for security these days is increasing levels of automation and oerk station. Particularly for smaller companies, they dont have the resources to keep up with all the complexities of Cyber Security. What were trying to do, we think were leaders here, is create real platforms. A lot of leverage that drives simplicity, because were fighting a highly automated a adversa adversary. You have to drive the directors on these companies were picked long before there was a Cyber Security threat, they must not understand any of this, and think its mumbo jumbo . Yeah, i talked to boards all the time. I had a couple boards in last week, what i always tell them is, heres a simple way to think about things, go back to your cio, your chief security officer. Think about the level of automation the adversary has, and ask how many people have to touch each attack that comes into your organization. If your answer is, youre not driving down people. You dont understand the nature of the problem. One of the things i learned yesterday. There were Cyber Security people who were saying, listen, in europe, not as involved. I know you have a Great International quarter. Some of the kbanks and some of the other people with ransom wear pay in bit coin. One of the reasons bit coin has gone up so much, are these institutions that want to hide from regulators and pay off. Have you ever heard anything like that. Theres going to be these new currencies. I think this is the reality for the future. They can become convenient when theyre used in these directions. The things like ransom wear, which is how you pay for things. We have to deal with the fact that new currencies are here to stay you dont fall subject to ransomware. When you go in, do people recognize that youll get in trouble with the government if you dont spend the money . Theres a purchase like that in europe that came out recently, which is a stick care rot kind of approach. The government recognizes its a big deal, and they want to drive the industries to upgrade their cape abilities. So we can be as advanced as possible. Its a good thing. When you said at the beginning, when you talked about that reorganization, you think youre the early innings of that, it would impress upon me the idea that not only things are back on track, this quarter itself, youre winning eye lot of business. Well, in the Third Quarter we won a lot of business. Our expectations are going to win more business. We see 20 to 23 growth these are big numbers we have to take down. Chairman, ceo of palo alto networks, thank you. I think the guys are back. The stock is not expensive relative to where it was, and obviously, i think the Cyber Security is of the utmost and were not spending money on it. Coming up, is this stock a sight for sore eyes. Cramer sits down with the ceo of elle cosmetics when mad money returns. 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Some of our regions start feuding with each other . If you were not an oil bull before this moment, you have to question your thinking. Im not asking a rhetorical question. There is an answer. And its buried in these schlumberger Conference Call from last quarter. They talked about oil stabilizing and going up only when the deep water oil wells begin to run out. And there are no new ones to take the place. When it comes to supply and demand, schlumberger knows more than anyone. They saw the downturn in crude coming, saying, there is no bottom coming in 2017. If you wan the to chart their words, take a look at its stock which took a downturn when it refused to call a bottom on its Conference Call. Thats unlike everyone else in the industry. Why . The real deep water wells, the ones that have far more capacity to produce oil. The single good shale prospect today are still in fabulous shape. Theres been no need to drill new ones. Worse, even our own country, the big offshore wells are producing monster amounts of crude right now. The ones that were drilled off the maconda oil spill thats almost 300,000 barrels a day more than last year, you want to know where that glut is . There you go. You may think we can put back on production at some point . The opposite is happening. The one thing thats in the oil bulls favor, and schlumberger has been telling people this, most deep new most new deep water projects around the world have stopped, okay . And theyve stopped for two years. Thats the chief reason why schlumbergers earnings have been sub par versus halliburton. By late sometime next year, some of the older deep water wells that have been producing such sumptuous amounts for years, will begin to experience decline rates. Only then will Oil Prices Get tighter. It will take too long for new projects to come to the market. When that happens, it will be the first time the bountiful shale oil comes into question. Right now, were still in the grips of speculators. According to carly garner, whos made this point on and off the charts and been dead right for us. Those speculators have too much oil in their hands. You cant expect a panic liquidation of these people to start until oil creeps down to 43 a barrel. 5 below where we are now. All the stocks will remain perilous until we work