Im going to take advantage of it, because im trying to make some money around here. After an amazing week but a homum day with the dow drop pig and the nasdaq gaining 2. 2 , i want to talk to you about two buy dips. Google and ibm. Now you might think im sticking my neck out, but i am saying im doing is introducing a notion of longterm opportunity. And its not a copout. First off, we know google and ibm both disappointed people last night. We know that because they went down after earnings, its undeniable. And a stock that goes up after a good report is a good stock. And a stock that goes down after a bad report is a bad one. In other words, people were expecting an upside surprise simply got it wrong. In the world of trading, you buy a stock for catalyst. You get the catalyst, you sell no matter what, good or bad. Thats what trading is all about. Thats called discipline. Have you the discipline to recognize you bought something for a trade and it just didnt pan out. But investing is what im trying to teach here is quite different. Theres a different set of rules and a different mindset. Investigating is not catalyst driven. Its not about trying to predict quarters and scout a few bucks. It is about longterm Decision Making when given the chance, even though the chance may seem scary, you have to take it. Which brings me to google and ibm. Any trader knows google and ibm failed as trades last night, unless you were shorting them because they both got hammered. However, if you are an investor and trying to catch a few points with Something Big and meaningful, i think you have to buy, not sell these two stocks. Counter intuitive . No, listen, lets start with google. What exactly did cause it to go down . What was googles cry . Simple, it missed wall streets estimates. A company that misses the estimates is a company that immediately gets put in the penalty box. Immediately as in that minute. But understand something, unlike most companies, google doesnt actually help the analysts make their estimates. Most companies do. Most companies provide guidance right before management takes questions, they outline how the companys earnings and revenues are likely to be for the next quarter and for the next year. Google, however, is a rare very be. It doesnt give guidance. The other only company that doesnt give guidance is berkshire hataway. He wants to win long term, same with google. When google misses the numbers, its far less important than if pretty much any other company did the same thing. Thats because frankly the analysts are pretty clueless about what google can really earn when they try to get these numbers. Its not like google missed its own forecast, they dont make a forecast. So the number that disappointed was only disappointing in the eyes of the analysts. Now you might wonder, who else matters in the process of the and lists, big deal, jim. Hey, all that matters is the analysts. Thats where i can help you because the answer is the Portfolio Managers themselves matter. They look at google. In a couple of days they will be looking at it within the vacuum and the internet sector like the analysts who cover the stock. No, Money Managers look at google versus all the other stocks in the s p. All the other stocks they own. And they will see they are missing an opportunity to own a company thats growing, remember these numbers, they will be important, growing at a 19 clip yet it sells for only 17 times next years earnings system. Remember how Money Managers value stocks. You always have to go back to this lesson. You have to make it apples and apples comparison. To make it apples to apples, they look at the price to earnings multiple. Then they put googles growth rate against the companies they currently own and make their judgments about what to buy or sell. Lets make it easy, suppose the Portfolio Manager owns cocacola, that Portfolio Manager knows coke is growing at 6 . 20 times earnings. Go back to google, we stipulated they grow at 19 and selling at 17 times earnings. Hmm, lets see, from the Portfolio Manager perspective, hes paying 20 times earnings for 6 grower like coke when he can get a company that grows three times as fast for 17 times earnings, a discount. Many fort folio manager will be unable to resist google and say cocacola to pay for it, but not today. Do this exercise any time. Take panera bread, 6 growth rate, sells for 24 times earnings. Why panera, google, these are just two growers, why own panera when faster growth from google with a lower price earnings multiple. A stock like kellogg rose at 5 like google. It has a dividend small one. The stock sells and then they will likely sell kellogg for google. The fact is on a growth basis, google is cheaper than almost anything in the s p 500. Believe me, in a week, most Portfolio Managers will forget that google ever missed the analyst numbers and instead be saying, you know what . Thats too cheap to ignore. And thats how this terrible trade, terrible turns into a terrific investment. But you might say, what happens if google keeps deteriorating as missing the analyst numbers applies. Actually, its not deteriorating at all. Google is just spending a lot of money to promote future growth, something you want them to do to stay ahead of the pact. You want your companies to invest in future, not all should be buying back stock and giving dividends. Listen to microsoft, hewlettpackard and dell . You can come back and saying, arent they mobilized by the revolution . Google has the best product out there and trust management when they have a plan to make more money off google. You should listen. You need patience here. I got patience. Do you . If so, i think google is a fantastic investment at a great price. A price being set by traders showing discipline and taking trade off the table at a loss. All right, how about this ibm . Wasnt that a miserable quarter . No Revenue Growth and revenue declined, right . Suspect cash flow, miserable earnings that seem to be made by the skip of the companys teeth. Doesnt ibm have to be sold . Yes, if you bought it for the quarter of trade. Absolutely not. If youre looking for a value stock based on net shares earnings like Warren Buffett who is the big owner because next years earnings benefit from the new hardware product cycle and rapid expansion to cloud services. Sure, ibm isnt hit the mark now, but by this Time Next Year it should be because of the change at the company. However, if you wait until next year, the stock will be too high. It was going up in anticipation, didnt turn around this corner, but i think it will. So you have to get in on the weakness even though you may hate ibms current configurat n configuration. Buy it on sale for an investment to last years and years. Google and ibm, two trades that went bust. Two investments that can now be started, an excellent discounted price. The bottom line . One demands trash can be another mans treasure provided that the first is a trader who only cares about the here and now. And the second is an investor who cares about the future. Nick in new york, nick . Zblk hey, jimmy, how are you . Im good, how are you, partner . Im good. Caller my question relates to b g. A short speech on your show and did some homework, i bought it at 12 and now 11 investment capital. What is your advice based on the recent Quarter Results which are shy on earnings . Thank you for taking action owners plus, thats the companion product i do with my Charitable Trust to tell you what we are doing before buy and sell. B g foods yields 4. 3. Was it a perfect quart her . Absolutely not. Is david doing a good job, yes. If i had a big gain as you, take out the invested capital and let the rest run. Thank you for listening to the show. I think we helped you a great deal with b g foods. We are the 25th anniversary and proud of what we have done for the regular investor. Dubrovca . Caller yes, im here. And i have a question about zebra. Yes. You recommended it a couple days ago and then it dropped like a rock, so i would like to know, do you still believe its good or not . Its real good. Sometimes the stocks dont do what they are supposed to do. The stock went up eight and reversed it a, but buying that Simple Technology business is a great business and youll hear much more from zebra from me within the next two weeks. Lets go to madelina in new york. Madelina . Caller hi, jim, how are you . Im real good, how about you . Caller good. I want to say thank you for taking my call. And i also enjoyed reading your book get rich carefully. I have a question regarding clbx. Yes. Remember, we rated that as our great previous analyst ted graham pointed that stock to us out in the midteens and an old friend of mine showed it to me. We left it and have not looked back, so i have not looked at it because it was a trade, speculative stock, it was done and im not looking back, im sorry. One mans trash is indeed another mans treasure. Case in point, google and ibm, trash by the traders, made treasure for the investors. Dont go anywhere, ive got an exclusive with the bank that has had the best performance of any bank we follow fresh off earnings. Plus concerns about the company that keeps the lights on in new york. Im check if the future is still bright for con ed and the white hot utilities. And to get hot in the economy, sometimes you need a little elbow grease. Snapon tools coming up next. Dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Tweet cramer, madtweets. Send jim an email to madmoney cnbc. Com. Or give us a call, 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. We did a 27point inspection on your chevy,ce, you got new tires and our price match guarantee. Whos this little guy . Thats birney. Oh, i bet that cone gives him supersonic hearing. Watch what you say around him. Ive been talking a lot about his procedure. whispering what . Get our everyday price match guarantee plus a 100 rebate on 4 select tires from your tire experts. Chevy certified service. Forget about all the problems we have in the stock market. Because when you look at the actual companies that benefit from the improving economy, they are doing well. Take snapon tools, sna, they make power tools to auto repair shops with 3500 vans here in the United States, and they sell to agriculture, construction, mining, Power Generation clients and bound for european companies, too. Snapon is a nonstop up no say or the creating Innovative Systems to make it easier for the professional task. They earned 1. 62 per share. Thats higher than expected revenues that rose 6. 2 year over year. Snapons commercial industrials run 9. 1 driven in part by a fabulous surge in the european segment. The stock has given us a 23 return since we last talked to the ceo past july. I bet it has a lot more room to run. So lets take a closer look with nick, the chairman and president and ceo of snapon to learn more about the company and its prospects. Welcome back to mad money. Thank you. Great to see you, sir. Yours was one of them, i would like to think its because you innovate with such things as wrenches. Correct. I mean, thats the thing, snapon is the type of company that is actually a Technology Company that innovates. It innovates based on a practical understanding of the workplace and associated with its technology. Take this, for example, and we can talk about a wrench here. This is a tech wrench. We call it a tech wrench that has to do with measuring torque inside an engine or aircraft. Aircraft frame, it is the stateoftheart in terms of measuring torque and getting the right tight anything necessary for the critical task that takes place in those places. This could be initially for automotive and it can tran send and go to aerospace. Sure. One of the things about snapon is it has always been an Automotive Repair company, but what we realized is snapon means a lot to any professional as long as they are performing critical tasks. That is the need for repeatability and reliability is important that they have to perform with certainty. And thats aerospace and oil and gas and aviation. And we apply technology to that, for example, not shown here is one of these things where we have a smart tool box. One of the big things in the aerospace line is dont lose a tool in the engine, sounds crazy. Dont lose forceps in surgery, right . Exactly. So we make a box that uses Imaging Technology that tells you, boy, jim cramer took out screwdriver a from door a and is working on bay 6 on engine 2. Before you button up, check the box to see if you returned it. Thats driven a lot of the growth. Cni, the commercial industrial business was up 10 , 200 basis points, driven by the extension because people value snapon with Technology Inside to bring them. Nick, a lot of people felt like you shouldnt be moving into europe or try to minimize europe because europe was bad. Obviously, they were wrong. Right. We established a business in europe and i mean, ive got welts on my back for europe. I told you, last time i was here, france is giving me a headache. I didnt want to hear the word france. Well france is up now. France is up now, germany is up now, spain is up now. The thing about this is, we spent a lot of time not taking down productive capacity because everyone told you to do it, though. We had faith it was coming back and knew our customers were still there and kept improving productivity. So even before the revenue started coming back, profitability was getting better. Now the revenue is coming back and we get a doubledip. What did you learn in terms of what you will do in asia . Well, in asia, if you think about it, china, the United States, they both buy a lot of big cars. A lot of new cars, a lot of new cars. A lot of people in china. A lot of new cars and a lot of people in china. A lot of cars on the road already and they are old. In china, 11. 5 years old and 3. 5 million on the road. In china, there are not many cars on the road and they are all new. So the repair wave is just starting. I lived in asia 11 years myself and learned you have to have the physical capabilities to take advantage of this. So what we have been doing is building those physicals. When i arrived in chi in about nine years ago, shanghai, the only people who worked for snapon in the city of 50 Million People came with me on a plane. Now we have that was about eight years ago, nine years ago. Now we have five factories, 1500 people, 31 offices, a design center, 700 contributors. So we are building those physicals because we know the weight is coming. Lets go back to oil and gas because we have been visiting these sites. We have been on an oil rig 1300 miles off the shore. Utica, shell, north dakota, you guys are there now . Part of the snapon base is the technology and also understanding the business. So we understand Automotive Repair very well. We have guys at snapon that can tell you why mechanicals take his rag out of his right hand instead of his left. So they really understand. They understand the job. They understand the work. So were developing the work in oil and gas, so when we visit oil and gas sites we see a lot of people welding tools together to do a job which nobody makes a tool for. We are making those tools today and starting to build business there, too. Look, i happen to love the people at stanley, they are terrific, you know, they are not doing that. I love them, too. Its a different business. Its different, right . Retail business, what are they . Professional business. Different business. Our business is based in criticality. And criticality, in other words, the need for reliability and repeatability so that nothing can fail. Like an aerospace or mining, we are based in technology to take this thing here. For example, this thing, this is a diagnostic unit. And this you plug it into a car and it will tell you what the car is saying in terms of the cars heartbeat and allow you to make the car to run tricks, sit up and do dog trickles. And this particular one allows you to go out to the internet to get special database. We have a database which we use our field information and we can tell you exactly if a honda is at 56,000 miles and it has this symptom, heres probably what is wrong with it. And you get this device, its called a verace pro. Hightechnology in an area which is increasingly dependent on hightechnology, but people dont think of it that way. Thats interesting because you are the only industrial and Technology Stock to hit the alltime high in the s p. Now people know why. Thats nick, the chairman and president and ceo of snapon, sna. Now you understand why i think this is a great company. Stay with cramer. In a market thats gotten far too exciting for comfort, todays hohum station notwithstanding, maybe you need stocks that are boring, one of my favorite utilities is con edison, or coned as some of you know, or just ed. This is low risk and coned is as low risk as they come. Designed to supply the most densely populated city in north america, yet heres the kick, they dont own any Power Generation assets. This is strigtly a wires company that means they are immunized against apa action and commodity costs. The company does have to face aging infrastructure issues daunting for any utility. Coned following 2 because investors are looking for the bountiful dividend. They have been treating this stock as a kind of fixed income alternative. So in buying yields spiking dramatically, that made coned look less attractive by comparison, but the company has a lot going for it. Kevin burke on in 2009, copper is giving you the 87 return in dividends, far less than the s p 500 for that same period, but thats good when sacrificing for comfort, you may fall behind the market but doesnt mean you didnt give dividends and live comfortably off it. Lets dig deep we are the new president and ceo of conedison who took over in january. Welcome to mad money. Nice to see you. Thank you so much for coming on. Pleasure to be here. You have challenges but you also have Technology Working for you and i want to very quickly show peop people. Im convinced if i had been more sensitive to what my appliances were doing, i would have saved some money. You have a new device thats kind