Some gains. Remember, we were up big yesterday, raising some cash. Were still very close to the highs. Dont say i didnt tell you at the top if youre just a couple of percent away. Yo tonight im going to the mattress. Not rely. Stay tunun. Any of the purveyors of the plush, well see if theyre worth owning. Then, a meal ticket out of chinas middle class. Is yesterdays spinoff good news . Plus two of corporate americaa oldest institutions and they just had a merger. Dont miss my take on dowdupont. Todays news. And you know what i suggest you do . Stick with cramer announcer dont miss a second of mad money. A follow jijiramer on twitter. Have a question . Tweet cramer, madtweets. Send jim an email to madmoney cnbc. Com or give us a call at 1800743cnbc. Head to madmoney. Cnbc. Com. I have asthma. One of many pieces in my life. So when my asthma symptoms kept coming back on my longterm control medicine, i talked to my doctor and found a missing piecec ininy asthma treatment. Oncedaily breo prevents asthma symptoms. Breo is for adults with asthma not well controlled on a longrm asthma control medicine, like an inhaled corticosteroid. Breo wont replace a rescue inhaler for sudden breathing problems. Breo opens up airways to help improve breathing for a full 24 hours. Breo contains a type of medicine that increases the risk of deathth from asthma problems and may increase the risk of hospitalization in children and adolescents. Breo is not for people whose asthma is well controlled on a longterm asthma control medicine, like an inhaled corticosteroid. Once your r thma is well controlled, your doctor will decide if you can stop breo and prescribe a different asthma control medicine, like an inhaled corticosteroid. Do not take breo more than prescribed. See your doctor if your asthma ask your doctor if 24hour breo could be a missing piece for you. See if youre eligible for 12onths free at mybreoom. Lets s t these dayquil liquid gels and go. But these liquid gels are new. Mucinex fast max. Its the same difference. This one is max strength and fights mucus. Mucinex fast max. The only cold and flu liquid gel thats maxstrength and fights mucus. Lets end this. Phil oh no. under his breath hey peter. u unthusiastic oh. Ha ha ha joanne . Is that you . Its me. You dont look a day over 70. Am i rig . Jinglejingle. If youre peter pan, you stay young forever. Its what you do. If you want to save fifteen percent or more on car insurance, you switch to geico. You make me feel so young. Its what you do. You make me feel so springngas sprung. Ugh heartburn no one burns on my watch they work fast and dont taste chalky. Mmm. Amazinin i have heartburn. Alkaseltzer heartburn reliefchews. Jeez, when you only sleep three hours a night, you take it when you can get it. After todays vicious beat down, its worth remembering that not every stock that went lower today actually deserved to get hammered like it did. There are enty of companies doing whatever they can to take advantage to control their destiny. You should buy stocks and the market throws a gigantic sale like it did today and like i expect it to do on monday. Mattress firm, down 2. 68 today. Who took my lovey blanket . Anyway, back on november 30th, we learned Mattress Firm, the number one Mattress Retailer in n sleepies, that will make it the only coast to coast, border to border mattress chain in the country. Not only does this deal expand Mattress Firms footprint, giving them more than 3500 stories, but it gives the company difficult to penetrate markets until the northeast that can be extremely lucrative. The stock has fallen 23 from its twoweek high back in march. Should you view this as an opportunity to buy it on the cheap . Or are there real issues holding the company back because it should give you you pause . This one is a bit of a shootout. Lets go to the mattresses. All right, its somethinini alwaysysanted to say on television, albeit not exactly in this context. The mattress industry is incredibly fragmented. Sleepys was second. The average cash payback period for opening a new location is less than a year. You can get your money back in a year. Ive done a bunch of businesses. Thats really quick. Even before the sleepys deal, the company had a game plan to grow its business organically and through acquisitions. Organically is the real growth. Mattress c cpanies have been taking more and more shares. Consumers demand ever greater expertise when they go mattress shopping. However, this has not been a particularly good period for Mattress Firm. Think about home depot. When the Company Reported second missed on both the top and the bottom. Mattress firm same store sales increased. These results and especially the weak guidance were so disheartening that Mattress Firms stock weneninto a nose dive. That caught my eye and said somethings wrong here. Since then the stock has picked up some momentum, in part becacae Mattress Firm had an interest if not revelatory meeting where they laid out a growth plan. The compananhighlighted their omni channel and direct to consumer reference. The hand holding caused the stock to jump. After the analyst day, the next Big Development came on november 30th, whenenattress firm announced a landmark acquisition of sleepys, which has locations in 17 states. Close in the second half of next year. This takeover is less about cost savings and more about scale. By snapping up sleepys, Mattress Firm is establishing itself as a nationwide bedding retailer. The combined company will be able to squeeze more value out of its Distribution Networks and its ad c cpaigns, plus theyllll have more Bargaining Power with suppliers and with pricing. On top of that, the buying to p y down the 740 milliln its taking on in cheap debt to bubusleepys. All that said, there are concerns about the sleepys deal. The implied price of 780 price for sleepys. Some people are worried that Mattress Firm is paying for a company thats basically been stagnant despite pretty strong growth in the mattress business. Ive seen analysts fret that Mattress Firm is taking on t t much leverage. At the close of the transaction the company will have debt to ebitda ratio of 4, which doesnt leave a lot of room for error. Theyre still going to have ormous interest paymymts to me. Plus Mattress Companies have a long history of failure. However, i think many of these worries are being blown out of proportion. Mattress firm has a long history of making acquisitions like this one. E. 2012, they bought mattress giant. Last year they acquired mattress discounters. Mattress kgs, bed mart, sleep train. Country. We like that. In short, Mattress Firm has a to know ton of experience as a consolator. Sleepys has been extremely successful in urban areas. At theheame time that we learned about the sleepys deal, Mattress Firm preannounced its Third Quarter results. This time the company beat wall streets earnings estimates, up 3. 8 . When Mattress Firm went on to report full results this past monday, Company Management maintained their full year guidance as they expect sales toto dececerate in the next quarter. Put it all together and theres a lot to like about Mattress Firm. Here is a company that just started getting its act together. And one you might want to look im trying to give you a full list this week of what could get hurtrt the stock market doesnt have enough stocks that are plays on rising household formation. The optimal situation would be if Mattress Firm cut down its dell. A deal of stock would be good. It would give you a chance to buy at a discount. If you want to speculate on a nice Mattress Retailer then you have my bless to go buy Mattress Firm. I think the bull case is stronger than the bearish one. But keep in mind, it is a legit bear case. Not to mention theres an army of short sellers betting against the stock because of its uneven performance and higher leverage. I think the bulls will win out. You should still be careful and only buy Mattress Firm in akness, because it would be the acquisition with sleepys. With all the moneyts borrowed to make the transaction, that truly would be disastrous. Thats why i need my lovey blanket in case they dont issue that equity that i want. Theres so much more mad money ahead. It could be a spinoff in yum. Could it be a nasty treat for shareholders . Then there are two giants of american industry, and today they decided to tie the knot. Whats next for dupont and dow . Im revealing. Plus investors barred from accessing their money, the sec standing on the sidelines. Its not the latest hollywood feature. Its happening right now. Ill tell you why its going to why dont you stick with ugh heartburn no one burns on my watch try alkaseltzer heartburn reliefchews. They work fast and dont taste chalky. Mmm. Amazing. I have heartburn. Alkaseltzer heartburn reliefchews. Heres a question for you. Whats happening with yum brands . The global fast food brand has untouchable, given the companys huge e eosure to china wherere theyve been plagued by the avian influence, food safety concerns, and worries about the overall strength of the chinese economy and the consumer. Yum finally decided to take some tion, announcing its going to spin off its business, creating two separate businesses, yum china, and yum brands which will latete the macro weakness over there along with operating concerns have been dragging down the rest of the company. Although if the Chinese Market were to come roaring back, then yum china would let you participate directly in the upside. When yum first announced the china spinoff, we learned that yum china a uld have exclusive rights to kfc and pizza hut in the peoples republic, growing its locations from 69 to up to 20,000 down the road. The global is to create a spinoff that will serve the Chinese Consumer. At the s se time, owning this stock would be a bet on kfc, pizza hut and taco bell. At long last the rest of the Chinese Business. Over time it plans to be a many of its own restaurants. This slower growth, higher Margin Company also plans to return to shareholders. We like that Business Model very much. Yum just hosted an incredibly important analysts meeting have we finally got some details about the spinoff plan which management expects will be finished by the end of next year. What did they y yesterday . Lets starwith what we learned about the future of yum brands once they get rid of china. It will be a more focused, high margin, ill call it a steady eddie global franchise plan. Yum is targeting 13 annl Earnings Growth along with a 2 dividend someones the separation goes through. The nonchina part of yum will be 96 franchise, oh, my god, a cash machine. In short, the postbreakup yum brands will be exactly the kind stock that im sure many of you would like a piece of. Look what happened with mcdolds when it got sloand steady. This business will have a very different profile after the spinoff. Yum china is going to be a much higher risk, Faster Growing Company y an the remaining yumum brands. The Chinese Company plans to generate 15 Earnings Growth annually after the separation with no external debt, a massive amount of free cash flow. Management believes yum china will have enough cash to pay a significant buyback. Yum is forecasting 5 and 6 annual salesesrowth in china and 3 to 5 margin improvement. Put it all together, thats 15 Earnings Growth. That seems doable, although it certainly hasnt been doing that lately. Through the most crucial pieces of information they gave us. For starters, november Sales Numbers for yums china business, sales declined by 3 , driven by a brutal 9 stepdown at pizza hut. It hurt the stock particularly since wall street was expecting a 3 gain. Management reiterated their preference for growth in china given the strength of kfc. My view . Yum china still has a lot of work to do to stabilize its comps. For now, theyre no longer in a tailspin. Could be some easy comparisons ahead. Yum brands wants its Chinese Business to flourish. Of course theres stilila year go before the breakak goes into effect. Yesterday yum told us it plans to return 6. 2 billion to shareholders. Proshareholder. One company will be trying to feed the other. How is china doing and what does yum expect Going Forward . Pizza hut yum blames on the market. Kfc continins the gradual rebound. This was once a redhot reason to own yum, kfc china. Its very difficult to predict the actual course of the Chinese Consumer economy. I think this could be a good story if yum china could figure out whats ailing its chains. The new ceo appears to be focused on making the menus and operations easier for the customers to interact with. But many analysts worry the strategy might be too aggressive and numbers might have to come down. On the other hand, yum outlined five issues they believe could help them turn around pizza hut. Pizzzzhut value proposition. Right now the chinese view this as some kind of high end fancy dining play. Thats definitely what yum is going for. They plan to improve thehe instore experience and roll out better digital technology. Personally i find some aspects of the turnaround plan less than encouraging, especially the focus on value. It suggests that yum china might sacrifice price to go boost traffic. Outside of china, pizza hut is bringing in its best numbers in years. Plus we know taco bell, which has nohinese presence whatsoever, is currently on fire. Thats something yum believes they can keep doing for many yeyrs to come. Changing advertising, people like it. Weve got a lot of promises out of yum at yesterdays investors meeting. While the company answered many of the biggest questions, right now the story comes down to the companys ability to execute. Thats going to o difficult to before the spinoff happens. Lets see if yum can turn around its Chinese Business. Otherwise i would rather ignore yum china and stick with the stub of yum brands when the breakup happens. But again, weve got a lot of time to make up our minds before we do. However i salute yums management for taking these bull actions to bring out value at a time when the market is not satisfied with business as usual. If you can get the stock below the 71. 31 they were at today, i think its worth it for the ride. Elise in new york. Caller hello, mr. Cramer. Can you advise me if i should keep wmart . Ive had it for 35 years. This is a very tough question. If youve had it for 35 years, you have a b tax basis. I dont want you t tpay taxes. I think it will take two years to turn. To turn it. If you can hold it, take the 3 yield and sit on it, i think it will be fine. I dont expect anything good before then. It will take too long. Can yum execute . Time will tell. Lets see if it can turn around its chinese busy. Otherwise but with the stub of yum brands when you get it. Much more mad money ahead. Its a 130 million deal. Dont miss my take on the dowdupont merger. Its kind of like a script out of a hollywood blockbuster. Stick with cramer. coughing coughing disrupts everyones life. Thats why theres delsym. Delsyms advanced time release formula helps silence coughs fofoa full 12 hours. All night. Or all day. Americans. Wery to live healthy. But many of us dont know there e nutrients that can help support our metabolism. 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Well be kicking ourselves that we missed the opportunity. I know theres plenty wrong with the stock market right now. Lets go through it again, because you knkn im very cautious. We have everdeclining prices including oil which put pressure this week with a disastrous cut by Kinder Morgan and the shocking decision by a large mutual fund manager to bar sales of a High Yield Fund because there was no liquidity to meet redemptions. Every industry that i follow is weaker than it was six months ago. We know that the rest of the world is slowing. The stock market is now doing quite pooror. Ive become less bullish about stocks. As ive repeatedly said, once the right hikes begin, you cant like it as much as you did before. Or to put it another day, this was a bad day to announce the merger of dow and dupont. Who wants a worldwide Chemical Company in a fed slowdown . I would totally agree if i didnt have so much faith in the people doing the deal. The ceo of dow chemical has been rking like a dog to get his company out of the chemica little value added. Meanwhile, hes cut out a gigantic amount of waste, in kind of a brilliant way. Lowered the cost of the raw feedstock needed for plastic. Thats natural gas or methane or propane, while buying back a huge amoun