that's our edition of 60 minutes on cnbc. i'm steve kroft. thanks for joining us. [ticking] i'm jim cramer and welcome to my world. >> you need to get in the game! >> firms are going to go out of business and he's nuts, they're nuts! they know nothing! >> i always like to say there's a bull market somewhere. >> "mad money," you can't afford to miss it. >> hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you a little money. i'm trying to educate and teach you how all this works. so call me at 1-800-743-cnbc. maybe i'm too skeptical, maybe i'm a creature of history, but when it comes to facebook, i'd rather be a seller than a buyer,

once this deal, which priced tonight at $38 at the top of the range starts trading. if a broker comes to you between now and tomorrow and says, "psst, i can get you 50 shares at the offering price of $38," i want you to take that, take that. but so much of what's going on with this deal, with the stock market in general, the dow plunging 156 points today makes me feel queasy about the prospects of making money in facebook by doing anything other than flipping it, selling that stock right into the after market and certainly not buying it despite its kudzu-like growth. if it's possible, i want to step away from facebook for a moment and look at the panoply of the market stretched in front of us because sometimes the canvas does matter. we are right now after one more day of hideous losses after what i regard as my own proprietary measure, a fulcrum moment where

the stock market could either roar or plummet. the stakes now are the highest they've been all year, right now. at the same time we have this facebook frenzy, which isn't good because you know i hate frenzies, we have a total breakdown in europe, that i always feared could happen. remember our defcon system? as long as europe remained in flux i said we have to stay at defcon 2. one step away from the most perilous status imaginable. i kept us there despite the subsequent rally because i want to believe the countries of europe will grow up, the traffic in euros must be solved. the more dithering they do, the worse things get over there. things have gotten much worse. my biggest fear was that people in greece, spain and italy would rip the money from their own banks because they fear getting booted from the euro.

say you're a spanish citizen of some means you read that greece might get kicked out of the euro area and have to create your own currency. one day you have $10, the next day you have $5. you pull all your euros out of the bank while they're worth $10 before spain comes up with its own relatively worthless currency versus the euro. so if greece goes down, you're prepared for spain to go down, too. it's no different in italy either. you don't want that new currency if that happens. runs on the bank are the most dangerous things in the financial universe. lack of confidence is one of the most dangerous things. you don't know what happens once it starts unraveling. we had the much hated but most successful tarp program that saved our system, they have no tarp strategy and they have a weak central bank compared to our strong one. they fiddle while rome, madrid and athens burns.

after initially blowing it, we saved our system. since the europeans have done nothing to shore up the weaker countries like a tarp, the people who live in those countries are fearful of losing everything they saved that's in the bank. who can blame them? that's the problem. they're acting rationally if they pull their money out, which is so daunting about this whole exercise. usually it's irrational to pull the money out like fdic insured dollars in the bank. you're protected. not over there. not unless you're reassured money will be backed in lira. today is all about the clamor in europe, banking panic. again, we got a huge data point. we had the most important data point we could get, which is an amazing earnings report from walmart. a third of the country shops there. they were robust.

so much for us mattering. so why isn't just a dreadful moment to sell, sell, sell? if we get a coordinated, solid plan of action, a rational thing, the dow will rally 1,000 points here, probably in a heart beat. if we don't, the dow will give up the last of its gains for the year and then some. some stocks more vulnerable than others, a thousand up, a thousand down. selling everything is wrong. walking around with tons of stock i don't think is right either. it's not prudent. again, this is a moment to be diversified, have cash to be opportunistic if the seesaw comes down. that's what i've been doing all week. here's the hardest part. after the whoosh down that i expect if europe drops the ball,

we should get a terrific bounce because it's not ours, right? we went through this in 2008. the rebound will be a combination of recession-resistant stocks and stocks that offer what can only be called domestic security. remember that term. think domestic security. and you know what i mean. the all american ones i've been stressing, utilities, telecon providers, restaurants, retail, reits and health care plays. they're going to hit just everything. they're going to hit everything, including the banks and industrials but i think they'll bounce back and bounce back hard. you got to be ready to buy them before the smoke clears. they have domestic security. can't remember that, it's like the preamble to the constitution. these stocks can provide for the common defense and promote the general welfare. you have to understand, though, and take a different risk with this philosophy. there's a risk to my strategy. you have to respect the fact that you won't make as much

money as the people who are buying tons of industrials and financials and tech stocks on the way down betting that europe will do the right thing. hey, these buyers aren't crazy. they saw that gold is going to go up, a sign they might print a billion euros or two. they saw the euro didn't go down today. it seemed to be a signal that something's in the works to save the eurozone as it's currently configured. these people are happy people, they expect the best from the germans. that's nice. i guess it makes me a skeptic. which brings us all the way back to facebook. put aside the rich valuation of the deal, put aside where it gets bid up tomorrow at the opening and i suspect it will be a hot, hot deal. forget that the sellers are brilliant people that can figure it out better than we can,

ignore it's the subject of an after market frenzy, choose to overlook that i brought a dot-com company public 13 years ago that was priced at $19, opened at $62, traded up to $67 mid-morning and then proceeded to go down $66 to a buck and small change. yes, deep six all that sorry, cautionary knowledge that gets in the way of the dazzle or excuse it because facebook's profitable, my company sure wasn't, fb has 900 million users. remember this, facebook is a stock that doesn't fit in well with the domestic security scenario i just outlined. it needs a robust advertising market worldwide to do well. it needs major companies to commit millions of ad time when gm dramatically cut back its ad time because it didn't feel it was working. it has no dividend protection. it will have a host of shareholders who will be up huge at the opening, many of whom are

aware of the perils that i've mentioned. those shareholders, they are your enemy if you buy this stock. they are dangerous opponents. they got nothing to lose from selling and everything to gain. they'll take those gains at your expense if you're a buyer once the stock opens, especially if you place a moronic market order, i'm speaking people who had stocks on the deal. here's the bottom line. we're at a fulcrum moment where we could gain or lose a thousand points depending on what happens in europe. if everything goes right there, i still don't think you'll make money buying facebook tomorrow. if everything goes wrong, i can't think of a worse stock than facebook to buy. skip in florida.

>> caller: good evening from vero beach. thanks for taking my call. >> great to have you. >> caller: as an investor i just turned 60. about two-thirds of my portfolio are in bonds and preferred stocks. with the situation in europe, should i be concerned about my preferred stock position in deutsche bank? >> i think deutsche bank is a very well-run institution. i don't want any european exposure at all. how about this, deutsche bank is my least worry of all the bank stocks in europe. that's the only guarantee i can give you. maybe you don't think that's much, but that's how i feel. this is a fulcrum moment on the seesaw of finance. facebook, if europe goes bad, i don't like it. "mad money" will be right back. coming up, social anxiety? while the world waits for the first share of facebook to

trade, cramer's logging on to see how a company that changed the way businesses communicate is faring. get your earnings edge in cramer's exclusive, next. and later, making dough? whether it's fried, fruity or covered in cream, the returns from these food franchises have been sweet, but in cramer's world, only one can truly rise to the top. tonight an all-out slugfest ensues to crown one company king of the confectionaries. all coming up on "mad money." miss out on some "mad money"? get your mad money text alert today. text mm to 26221 to get cramer right on your phone. for more info visit madmoney.cnbc.com. or give us a call.

when we think of cloud computing, we think of salesforce.com.

they help customers in realtime. we've been through the facebook deal, today but i got to tell you i think salesforce.com is the equivalent of facebook for the cloud enterprise. some people say facebook on steroids for the enterprise. it the way people stay in touch with each other to generate superior returns for their companies, one that's been proven time and time again. it's got the best growth of any tech company i follow but it's richly valued because it has that consistent growth. when salesforce.com reports, it trades wildly up or down. the quarterly reports for this company are extremely important. every single word is parsed, everything statement pored over, every piece of data is analyzed. the last time the company reported, it delivered terrific growth and the stock soared and rallied up. can it keep up that pace?

let's ask marc benioff, the chairman, ceo, co-fonder of salesforce.com about the better than expected quarter his company just reported, that's better on every single key metric and get some color that can help us make the best possible decision of what to do with this most rapidly growing tech stock i follow. welcome back to "mad money." >> great to be here. thanks for having me, jim. >> you've now given us everything. what happened? why are you giving every single point, including the ones the bears said you couldn't come up with? >> what's exciting, jim, is look at these numbers for the quarter, $695 million in revenue, up 38% year over year. it's pretty awesome and over $200 million in cash flow. book business on and off the balance sheet is now more than $4 billion for the quarter, up over $400 million since the last time i was on the show. it's been an unbelievably great quarter for salesforce.com.

we're opening the kimono more than ever so the fundamentals can be really seen to how great it really is. >> i'm a businessman first, not a hedge fund manager. i like to gauge companies by their operating cash flow, because that shows me whether they're really making money or not. i want to drill down. you had $213 million operating cash flow, up 53% year over year. don't you regard as i do, that that's really what you're doing? >> cash flow is outstanding, jim. that's really the result of just incredible revenue growth. now, you're right, there's no better predictor in future profitability in the success of any business than its cash flow, it's one of the things we focus on at salesforce.com. you've seen us consistently deliver increases in that cash flow quarter over quarter. we've been on the show now for so many years and now you're seeing this huge cash flow number.

it's really awesome. >> a lot of people are worried about europe. there's no way could you do these numbers unless europe was better than expected. >> we had a great quarter in europe and a couple of large deals that we did in the quarter including the royal post office in the uk and vodafone were european deals. we also had a great quarter in japan with a lot of large transactions. we had a great quarter in the united states. it was rally all of our markets performing well to deliver this outstanding first quarter. >> people still don't understand what you do. i'm going to ask you on vodafone, what did you sell me and why am i happy? >> for our customers today, they have to delight their customers in a whole new way. you talked about facebook. facebook has changed everything. it's changed how we use software, but it also changes where our customers are. what salesforce.com lets you do is sell, service and market to

your customers in the most modern way. that's why hundreds of thousands of companies are using salesforce.com. what makes us special is our user interface is patterned after facebook. it's that social user interface, that focus on mobility, and we deliver it all in the cloud. there's no hardware or software to buy. social, mobile and cloud. this is the modern era of computing. if you're not organized around those three axes, you're not experiencing the growth we are. that's why you see really tepid growth from oracle and sap. customers aren't buying at the rate they are on salesforce.com. >> you brought those companies up. oracle's got a user installed base, sap, we've had them on a number of times, they offer a lot of products and often are in conjunction with you. so you're not the enemy of these

companies but you provoke them and they do have consistent growth. >> so many of our customers use products from oracle and sap. the reality is we do a great job of working with those companies. you look at a great customer we have that you've talked about on your show, kimberly clark, which has really rebuilt their customer management systems as well as how they've built a social enterprise at kimberly clark and they've done that all with salesforce.com. that's in harmony with their sap back end. we've become the front office and oracle and sap have become the back office. that's how can you look at this total story. >> why is it better to be the front office? >> well, it's better to be the front office because there's just much, much more growth. crm remains the number one technology that companies want to buy this year according to gardner. the reason why is where your customers are have changed. we're going to let you find those customers and close deals with those customers, service

those customers and market to those customers much more aggressively than any other vendor. >> obviously we had the facebook princing tonight, $38. i can't ask you to opine but facebook is part of a general revolution you have talked to me about multiple times. is there a price you wouldn't pay for the revolution? >> i love facebook and facebook is a big customer of salesforce.com. you know we run their front office and we've patterned our technology off facebook. there's a couple of key areas you have to think about when you think about facebook. first of all, you've never had an application like this, a billion users using an application and half of them logging in every day, unprecedented, incredible. that's number one. number two, you've never seen this kind of fundamental growth in a company. i mean, this company really has command and control of the most important market today in computing, which is social

computing for the consumer. that's number two. number three, you've got a great ceo with mark zuckerberg who has really developed himself and shown the market he can lead and execute. those are three great things coming together and it's why facebook will be the largest ipo we've ever seen. >> i didn't want to bore our viewers but everyone's beat. and i'm sure someone will quibble over deferred revenue because it wasn't exactly -- >> you can't ask for more, 38% revenue growth for the quarter. it's what every enterprise software company wants but only salesforce.com is delivering. >> i don't have any 35% growers other than you. thank you, marc benioff. this quarter shows salesforce

has real growth, unlike almost any company i follow. >> coming up, making dough? whether it's fried, fruity or covered in cream, the returns from these food franchises have been truly sweet. but in cramer's world, only one can rise to the top. we crown one company king of the confectionaries. and later -- >> what the heck? >> despite a pending patent cliff, shares of this pharmaceutical giant seem healthy. is this the work of a market placebo or a medical miracle? cramer is breaking down the chemistry behind this company's remarkable resilience. all coming up on "mad money." ale announcer) most life insurance companies

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industrials, it's a huge boon for commodity consumers and companies that thrive on lower gasoline prices, especially if they have domestic security, meaning no europe. so while you can't go near most of the oil or coals or other resource stocks, the other side of the coin, american retailers and restaurants, the locals so to speak, they can be terrific buys right here on weakness. but which ones? here at "mad money," we never play a whole sector when we can isolate the best of breed stocks. the trick is to separate the proverbial wheat from the chaff. let's take the donut stocks so we can learn how to do this. because everybody knows donuts. here in north america we have two thriving donut chains, the canadian based tim horton's and the new england based dunkin' brands.

we know they should benefit from lower raw costs. everything from the box to the filling and declining gasoline prices will give each of them a nice boost to traffic. they're both regional players expanding across the continent. classic growth stories make people boat loads money in the past if you get in early and it is still early. how do we tell which one to buy? who is winning the donut wars? both concepts are very similar. both dunkin' and tim make the majority of their money selling people caffeinated drinks, mostly in the morning. i got to tell you, i don't have one after 6:00 because you see what happens? tim horton is the king of canada. out of every ten cups of coffee that are drunk outside the home in canada, eight of them come from tim horton's. they have 80% market share. where the's canadian justice department anti-trust division when we need them? dunkin' is the number two

purveyor behind starbucks and the number one on hot coffee and iced coffe, bagels, donuts and muffins. and they own baskin robbins, which is the country's best seller of hard ice cream. do we go based on whose store we like better, who has the best coffee, who has the tastiest donuts? wrong! i like to express the importance of this qualitative thinking. but please don't overdo it. to answer homer simpson's timeless philosophical question, donuts, is there anything they can't do? sadly, yes. they can't help you decide between dunkin' and tim. you're not investing in the donuts, you're investing in the companies, tim duncan. can you imagine? different show. when it comes to these two companies, we really care about two things, the ability to grow and what do we always talk about, because this is where management comes in, the ability to execute.

i think dunkin' wins on both counts. first let's talk growth potential. you may think because tim horton's is smaller with about 4,000 locations, only about 700 in the u.s., they would have more room to expand than dunkin, but that would be a mistake. even though dunkin' has more locations worldwide, it nevertheless does indeed have the longer runway for growth. that would have been hot coffee all over the floor. management plans to triple its domestic store count by 2020. how is that possible? you think the ceos maybe have been drinking irish coffee? i like mine with jameson's in case you want to buy me one. as ambitious as that store target might sound, it not as crazy as you might think. dunkin' is still mostly a regional chain. take a look at this map of their locations across the country. it tells you everything you need to know about this story.

dunkin' has only barely made it across the mississippi river. they're a national brand that's only in 35 states and the only region that fully is penetrated is new england. in the red areas there's one dunkin' for every 9,500 or so people. in the orange ones, there's one for every 24,000 people. how about these yellow regions? one duncan per every 97,000 people. the lines must be really long. meaning they could build ten times as many stores before hitting new england levels of saturation. in fact, unbelievable, they just opened their first store in california two weeks ago at a military base! this is virgin territory here! just now, do you know that this area right here is one fifth of america and they're not even there yet! dunkin' has a proven concept east of mississippi.

there's still tons of room to put up new stores. it's this westward expansion that could lead to many years of growth. go west young donut shop. dunkin' is also expanding internationally but that's just icing on the donut. the company plans to double its stores in the middle east to 1,500 while filling up eastern europe with new restaurants. also moving into china. memo to dunkin', hold off on that europe for a moment, please. the trouble with tim is it's filled up in canada. management sees them maxing out at 4,000. plus the canadian consumer is in weaker shape than her u.s. counterpart. did you see the sears canada stores doing much worse than sears america stores? tim horton's does plan to expand aggressively in the u.s. but the company needs time to build out

the brand here whereas dunkin' is well known, even in places where it has no stores. even with their larger footprint, dunkin' is expanding at a faster pace in the u.s. than tim horton is. while i like tim, most don't even know his last name but everyone knows america runs on dunkin'. so dunkin' wins on growth. it also wins on execution. compare the latest quarters from both companies. dunkin' delivered terrific numbers, something it's done consistently since going public last year along with higher than expected revenues and they also raised their full-year guidance. dunkin' sees its domestic same-store sales chugging along, excellent quarter. plus dunkin' has given you two probable secondaries. let's hope facebook does something like that, huh? these have been great buying opportunities. with the stock up 23% from the former, up 6% from the latter.

how about tim horton's? last wednesday the company reported a 3 cent earnings miss off a 56 canadian cent basis. the company is being hurt by higher franchise and commodity costs. the latter should go away but the slowing traffic in canada, i'm regarding that as a problem. tim horton's is a mature canadian business hoping to expand in the u.s. what about price? maybe that will help us determine things. dunkin' sells for 22 times earnings, tim horton's sells for 17 times earnings. dunkin' has a higher growth rate. it's cheaper on growth and has a higher yield. here's the bottom line. it's a terrible environment for a lot of stocks but it is a good environment for restaurants. we only want the best, though,

and dunkin' brands wins the donut wars hands down. i love the fact that donuts aren't staples in spain, italy or greece. you can't beat that or an extra large with a little bit of skim like i get every weekend at my own dunkin' donuts in summit where not only am i regular but they know my drink and they have it poured by the time i get to the front of the line. robert in pennsylvania, robert! >> booyah skeedaddy. i have a question about roundy's. they plummeted after earnings. >> they put out a good note saying don't fret roundy's.

it rose from 1070 where we recommended it. it's a jpmorgan note. they're very happy with it, i'm going to go with what jpmorgan says. they're following it very closely. i think we're fine in roundy's. a lot of people asked me, that's why i was up to date on it. mark in new jersey. >> caller: hey, jim, a big little silver booyah for you. >> what part of jersey booyah? >> caller: little silver red bank, right there. >> yeah, okay, i know that. i was thinking jersey turnpike. i forgot the garden state. what's up? >> caller: my question to you is carlisle group. it ipo'd earlier this month and it wasn't a big hit. i have friends who work at booz allen, dunkin' donuts was my first real on the clock job. what's the play here? can you hedge yourself or take some of these companies or just go straight with carlisle? >> i don't want you in carlisle at all.

who the heck know what they own? i got enough problems owning dunkin' donuts. hey, life's tough enough. let's just face the facts! why don't you wake up and smell the coffee? america does run on dunkin', east coast at least. you want to think it's time to make the donuts, please make dunkin' donuts, not tim horton's. tim? dunkin'? take dunkin'. stay with cramer. >> coming up, ride the lightning. take a nonstop thrill ride as cramer goes stock after stock. all your calls taken rapid fire on the lightning round. and later -- >> what the heck? >> despite a pending patent cliff, shares of this pharmaceutical giant seem healthy. but is this the work of a market placebo or a medical miracle? cramer's breaking down the chemistry behind this company's remarkable resilience. all coming you on "mad money."

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it is time for the lightning round!

rapid fire calls. my staff prepares the graphics. i play this sound and then the lightning round is over. are you ready? let's start with nick in arizona. nick. >> caller: hey, how's it going mr. cramer? >> real good. >> caller: what are your opinions on osh kosh? >> governments all over the country are cutting back. sell, sell, sell. buying equipment. i don't want to own the stock. susan in california. >> caller: jim, thank you for giving me the tools and confidence to manage my money. >> i want to teach you, not have me do it. what's up? >> caller: i recently inherited a stock and i found out there's been a major fight for management control. do i jump off or stay on the train with canadian pacific? >> i don't like the rails. they ship various things with

oil and oil is going lower, and also coal. sell, sell, sell. >> robert in arizona. >> caller: booyah, jim. >> what's up? >> caller: i've been investing in intuit. what are your thoughts? >> it's a great franchise. i don't like to buy the stock after tax season. i feel like there's no catalyst. i'm going to say away. curtis in texas. >> caller: booyah to you. >> what's up? >> caller: not much. ww granger. >> granger is terrific. here's the issue. a stock that's viewed as $150, $180 stock, it's viewed as a place to raise capital and decline. the fundamentals are good but the fact that the stock is a big dollar amount does make it for

sale. kevin in new york. >> caller: how you doing? >> real good. >> caller: walter energy, solid company, funny sector, perennial takeover target, what's the story? >> i don't want to call it a falling knife. why is it going lower? frankly because no one wants coal and coal is in the decline. i can't recommend a stock where the fundamentals are in decline. oh, no, that's it! ladies and gentlemen, that is the conclusion of the lightning round! the lightning round is sponsored by td ameritrade. [ male announcer ] if you believe the mayan calendar, on december 21st polar shifts will reverse the earth's gravitational pull and hurtle us all into space. which would render retirement planning unnecessary. but say the sun rises on december 22nd, and you still need to retire. td ameritrade's investment consultants

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and retirement specialists can help you build a personalized plan and execute it with a wide range of low cost investments. get a great plan and low cost investments at e-trade. in the midst of the facebook frenzy and the european madness, it seems to drive us lower day after day. i think it's time for a little sanity check. because in an environment that's this insane, you need to pick some stocks like a crazy person in order to win. case in point, eli lilly. this old fashioned big pharma

company is about to fall off a gigantic patent cliff. zyprexa recently went generic and sales are down 66%. cymbalta goes off patent next year and there are more patent expirations that will blow a huge hole in eli lilly's bottom line. this used to terrify investors. the stock has been performing like a champ while the s&p 500 is down 6% and right now it's just a little more off a point. a little more than a point off its 52-week high. so what the heck is going on here? why is lilly pulling ahead when it should be falling behind, given the patent cliff, right? has the market totally lost its mind? no. we looked into this.

in fact, i'd say lilly's holding up this well because it's a rare sign of sanity in an otherwise psychotic market that could probably benefit from a zyprexa/cymbalta cocktail. sure it has patent problems. it has a secure bountiful dividend that yields 4.8%, a strong pipeline of new drugs in development and a healthy balance sheet. it lacks exposure to the troubles in europe, the pain in spain falls mainly on companies other than eli lilly. even though europe made up 23% of sales, it's not all that vulnerable because people don't cut back on medicine during a recession, especially in socialist european countries with universal healthcare. sure there could be some cutbacks. maybe that's why lilly doesn't trade even higher. this is a drug stock which means it's about as recession resistant as it gets. the notoriously big yield gives

you income and protects you from marauding short sellers. when you're short a stock you're responsible for paying the dividend to whoever they borrowed the shares from. you have to pay them. eli lilly should be working in this environment. there's nothing nuts about it. it may not even be finished going higher. it may be a go-to name i talk about when the fulcrum happens and if europe goes the wrong way. why am i so confident about this? there are two big catalysts coming next month, the american society of clinical oncology meeting on june 1st through 5th where we could hear more about the company's huge pipeline. more importantly, the annual meeting of the american diabetes association coming up june 11th where the company plans to release data about diabetes drugs it's developing. diabetes is an awful disease to have. 79 million have diabetes,

millions more expected to develop diabetes thanks to the obesity epidemic. sadly, this is a growth illness. lilly might have an answer for it. i think it's worth getting ahead of the stock before the conferences. lilly is expected to come out with important phase three trial results, including a promising new alzheimer's treatment. the time frame might even be two years but i think this is one of those cases where it doesn't pay to be overly skeptical. eli lilly's revenues may be declining thanks to the loss of zyprexa but when they reported, they raised their full-year earnings guidance. a really well financially managed company. the rest of lilly's portfolio is doing pretty darn well. the company's non-zyprexa revenues grew 10%.

lilly is paying you to wait with that juicy 4.8% yield. why the heck is eli lilly rallying when the rest of the market gets hammered? it's safe, recession resistant company you want to own in a tough environment, especially with that bountiful dividend. slow and steady safe companies like lilly will indeed win the race. "mad money" is back after the break.

retail's in my blood. ever since the times my father took me to see his customers with boxes, bags and gift wrap when i was a little boy, have i been enthralled by retailing. but believe me, i know how hard it is. my mom worked at litz, my dad at gimbel's. does anybody remember those? almost every single customer has folded. retail is a rough business. it's about as hard to discern what's happening in retail now that i recall. what's so mystifying? for the last few years the dollar stores figured out how to take shares from the big stores and today walmart blows the numbers away. i believe maybe walmart has figured out an every day low

pricing scheme with the right merchandise. judging by this run in the stock, we have a first class breakout in walmart. it seems to be fueled by short sellers who are hoping that the investigation into walmart's mexican practices will lead to indictments. this quarter is the best i can recall from walmart in many, many years and that matters. but the worst quarter i can recall, that's from jcpenney, down 19% comparable store numbers, about as hideous as it gets. it tells me that jcpenney is in big trouble, target, macy's, gap, maybe sears might be beneficiaries. we have no tangible signs the turn is working or that the ceo knows that it is. but what about sears? in a few months ago it was on

life support. this quarter, however, dispels the notion of liquidity problems. while the company doesn't have positive comp stores, it making money and it's seen improvements in some key shocking categories, including apparel. could that be the jcpenney effect? possibly. the shorts were gunning for sears and they didn't get it. i believe they will cover their shorts and the stock can be squeezed higher than the buck and a half it rallied today. three retailers,three balls of confusion. suffice it to say as jcpenney goes to a tail spin, another comes out of one, sears and boy have we ever seen a turn in walmart. stay with cramer. i went to a small high school.

the teacher that comes to mind for me is my high school math teacher, dr. gilmore. i mean he could teach. he was there for us, even if we needed him in college. you could call him, you had his phone number. he was just focused on making sure we were gonna be successful. he would never give up on any of us. [ engine turns over ] [ male announcer ] we began with the rx. [ tires squeal ] then we turned the page, creating the rx hybrid. ♪ now we've turned the page again with the all-new rx f sport. ♪ this is the next chapter for the rx and the next chapter for lexus. see your lexus dealer.

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