>> i like long calendar into deere earnings next week. >> look at cotton. >> happy birthday, tim. >> baidu making a move through the 50. >> see you back tomorrow at 5:00. 5:00. mean time, "mad money" starts right now. know . my mission is simple. to make you money. there is always a bull market somewhere. and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends, just trying to make you money. my job is not just to entertain you, but to coach you and educate you so call me at 1-800-743-cnbc. where is the supply? where is the stock that's for sale? at what levels? believe it or not, that is what everyone in the big institutions

is asking about all over wall street. and it's the reason why the market keeps going higher. like today. with the dow roared 87 points, s&p gained .52%. and the nasdaq advanced .11. it's why we keep hitting new highs. it's why we officially entered bull market territory up 20% from the lows today. so tonight i'm going to explain the mechanics behind this move. unveil the curtain in order to help you understand why we keep getting so many days where the market goes higher and not many days where we get hammered. even as this is may, and weren't we supposed to -- sell, sell, sell. and go away? first, the stock market isn't all that mysterious, if you think of it just like any other mart. there are individual items, we call them stocks. that are for sale. every day, there are sellers, right. every day there are sellers of stocks at different levels. i'm not talking about 100 or 200 shares. i'm talking about the sales of stock by big institutions. these are the large-scale

managers of money and they're managing hundreds of billions of dollars. they handle pension funds, mutual funds, hedge funds. they may be selling individual stocks because they're disappointed in the earnings. or the outlooks. or maybe selling because it doesn't fit into the wall street fashion show right now, the favorites industrials and transports, over the consumer package goods names like dr. pepper we'll talk about later or clorox. they're on too. hey, they may be selling stocks as a basket because they think the overall market is too expensive and want to put their money in some other asset class they think could be worth more in the future. maybe bonds, currencies, real estate, maybe gold. these sellers are the people who actually determine the way stocks trade, determine the direction of the market and the opening and the close, because their movements, unlike yours, are very, very huge and they cannot be contained by the current prices you see on your screen on a given moment.

unless you have worked at one of these funds, as i have, or handled their orders from the brokerage side, as i have, you might not understand the impact these institutions have on the day to at a market. right now their activities are behind this breakout we have been enjoying. you may be surprised i'm talking about the behavior of the sellers and not the buyers. most people talk about what the buyers are grabbing. i think we all understand that buyers buy because they want stocks to go higher. so their motives are pretty obvious. sure the buyers play a big role in the bull market. but that's not what i see happening right now. that's not the cause. what i see is every day the buyers come into the supermarket and they're looking for merchandise. and the shelves, they're getting bare. the supply of goods that they want to buy is growing scarce. and that's leading to the higher prices you're seeing right now. here's how it works. let's say a large institution, let's call it cramer and company which was the name of my firm, comes to work and i say, wow, you know what, i'm beginning to fall behind the averages, i don't know how to keep up with my benchmarks, the s&p, i'm not

making money from my partners. so in that case, i would diligently look through the research, see what the catalyst events are, make calls about what people are hearing, watch "mad money," of course, and decide, you know what, i've got to buy in oil. i'm going to buy shares in an oil company. i want to be one of those -- one that just reported. in short, i want eog resources, which also happens to be on the show tonight. now, you can go in and buy 100 shares of eog and it wouldn't impact the stock, you'll get a report roughly in line with 965. but how did that stock go up an astounding $9.65 to begin with. how does that happen to begin with? here's how. in order to be meaningful to a hedge fund or any fund, a foundation fund, big mutual fund, the size of the one i ran was a half billion dollars, not much by today's standard but

probably bigger if i stuck with it. even a small fund, though. in order to be important, in order for a stock to have impact on the portfolio, you would have to own probably a minimum of 200,000 shares. eog. $135 stock, 26 million bucks. just to make a difference to your performance. that's something you just can't enter into computers. oh, i'm going to buy 200,000 eog with a couple key strokes. it's not something i can take to most small brokers. this is what a -- a sizeable order. a time size order or a ranch-size order, as they say. and that means i need an actual human to work my order, to go out and find sellers. not just go into the market, but to actually find people who want to sell stock in order to get my 200,000 shares and sell. so i go to my broker, let's pick morgan stanley, okay, i like them. let's pick morgan stanley. i call mike. let's call my broker, kelly. i say, hey, listen, mike, this morning, the market looks pretty good. i need 200,000 shares of eog,

where can i buy it? the first thing he says, are you out of your mind? after the unbelievable quarter, there's no stock for sale around here, at these prices, not at all. i say, oh, come on, mike. you've got to give me an orange around here. you've got to find some stock for me. soim place around the last sale. mike says, like, i would like my desk to short you the stock and then find stock among the account base, but it's too hot and try trading desk will be subject to a short squeeze. so i say, mike, canvas your customer and see who will sell me stock. and then he text to his networks, a size buyer of eog. that's me. within a few minutes, mike comes back, listen cramer, i've got sellers, but they don't live here. they live up a few points. that means they're not willing to sell here, they sell higher. i think i can find you, mike says, 50,000 shares up three bucks from the last sale and then we can get the rest in. i'm furious, i'm not paying up 3 bucks for the stock. and i'm saying the sellers are the reason why this market is

going higher. this is why. you see, because i go to mike, i say, look, i need that stock and he says, cramer, get this, the individuals who own the stock, they aren't big enough to seat your buy. i went to the ten largest institutions that own eog and none wants to sell either because they think the stock is going higher or need exposure to this market because it's red-hot or because they like the oils. and by the way, a lot of these guys, they're trying to buy eog themselves. now, of course, i would say that's ridiculous. there have been sellers every time this stock has gotten to this level, sellers come out of the woodwork. mike, find those darn sellers! and he says, hey, cramer, you just don't get it. see, that's the old days, jim. all those sellers are now gone. they're done. they don't live here anymore. they have left the building. now all we have are people who want more stock of eog. so i say, fine, i'll take the 50,000 up three points. mike goes to his morgan stanley trading task and says sell me 50,000 shares of eog up three.

the man on the trading desk says mike, every account wants 50,000 shares. these guys use a lot of expletives. he says he'll try to work the order up five points with 20,000 shares to start. so mike comes back and says listen, cramer, i can only get you 20,000 shares of eog up five. remember, i wanted 200,000 at the same price now i'm paying 5 for 20. listen to me, joke, forget your expletive deleted offering. i will pay up 9 and change, $10 tops for 200,000 shares. that means i want my broker to buy eog up to 135, up ten from yesterday's close and i want him to bid there for whatever stock he hasn't bought in. hopefully sellers will come in when they see my bid. then mike takes every single offering out there, takes it, takes it, takes it and when he gets it up ten, there's still not enough stock. he's nowhere near buying all 200,000 shares and stands there and hopes that sellers wake up

in this market. they don't wake up. because there is no one around to sell at 135. still no real supply. i'm going to have to come back tomorrow to buy all 200,000 shares to get that meaningful position in eog. and that, ladies and gentlemen, is how a stock like eog closes up $9.65 in a single day. you see here's the bottom line. i know you may not believe me, but there is indeed a stock shortage out there. it's not just in eog, it's in all kinds of stocks all over the place, like whole foods after the bell which is just like eog today. the sellers who have been hanging in the wings for years and years, they're done. they're done selling. or maybe they don't have anymore to give. so big institutions have to pay up huge for stock, and even then there's nothing there. the result? what you see on your screen. not just for eog, but for scores of stocks that hit new highs every day. the buyers, they are rabid. the sellers, we just can't find any to speak of, even at what we think are rarified levels. and that, ladies and gentlemen, is the anatomy of a bull market.

dave in iowa. dave! >> caller: hey, jim. thank you for my call. before i ask you a question, thanks for writing "getting back to even." i'm clawing back and doing pretty good. >> that's what i want. i think people have to recognize that this market allows you to get back to even and then some. how can i help you, dave? >> caller: i have a question about blackberry. i am a short-term investor. i don't have the patience for long-time. i've been in and out of blackberry a couple of times. now i read five different analysts, and i get 15 different opinions. i need your skinny on blackberry. help me out. >> it's something i said to my partner, carl quintanilla, these guys are providing no value whatsoever. they say something is good, something is bad, something is good. if you're a short-term investor and trying to play this one, i suggest you play another. because we really have no idea how well blackberry is doing. so i can't offer you any edge that anybody else has. it's not fathomable. we want more stock!

unfortunately, there is a stock shortage out there, even at these levels. and that's what it takes to get a good old fashioned bull market. "mad money" will be right back. coming up, black gold. eog resources shot higher today after topping earnings estimates on the strength of its domestic drilling. is it too late for you to tap into the rise of american energy? cramer's exclusive with its ceo is next. don't miss a second of "mad money." follow @jimcramer on twitter. have a question, tweet cramer, #madtweets. send jim an e-mail to "mad money"@cbs.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney@cnbc.com. ♪

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look at eog resources run. eog is one of the largest and best independent oil and gas distributors in the united states. fabulous acreage in the bakken and eagle ford shales, two of

the best since the '6 ohs and also have assets throughout the world, canada, arrange tina and off ireland. the stock roared 7.66% today after reporting a true blowout quarter last night. endeded 1.80 a share, 63 cent beat and the revenues came in much higher than expected, rising 19.6% year over year. thanks to strong growth in oil production, up 33% year over year, and up 13% from the previous quarter. plus, eog gave you a five-year outlook that was very sanguine. up 13% since we last spoke with the ceo this past december. we want to hear more about the stellar quarter, so let's speak to mark papa, chairman and ceo of eog resources. welcome back to "mad money." >> good afternoon, jim. >> all right. this was truly an amazing quarter. caught a lot of analysts off guard. did it catch you guys off guard that there was just even more oil in the eagle ford than you

realized? >> yeah, it was a bit of a surprise to us also. actually, our eagle ford results particularly turned out better than we expected. the eagle ford continues to give us upside surprise after upside surprise. it's truly a world-class oil field. >> you actually put it in terms we all understand. you said this is the biggest in 40 years. >> yeah, it truly is. we believe it's the largest asset in north america net to any one company since prudhoe bay, which is 40 years ago and eog is fortunate enough to have captured it. >> also largest in the bakken which i know you said is starting to drop off. but because of the way you built all those railroads, you're going to make a ton of money anyway. >> yeah, the bakken is really a -- turned out very nicely for us. in fact, what we noted on our earnings called today, our reinvestment rate of return in the bakken for the first quarter

rivalled our reinvestment rate of return in the eagle ford, and that's quite a statement, because eagle ford is knocking out the rate of return. >> now, you did hint that delaware basin could be a third, but it would be -- to be equal to the bakken eagle ford is almost impossible, right? >> yeah, it -- it would be pretty difficult to equal to the eagle ford in the bakken. but we believe we have seen enough in the delaware basin that it is our third leg to build a solid asset base for the company. the rates of return in the basin are not quite as strong. but hopefully with time, we'll get them up to approach what we're seeing at eagle ford and the bakken. but with -- >> i'm sorry, go ahead. >> but with what we have in the delaware basin, we are comfortelable enough to come out with a five-year projection for eog. >> right. that's what i want to get to. because you were beginning to

factor largely in the actual percentage of oil that our nation produces. and with that delaware basin, i think -- we should presume that the 37% compound annual growth may not be pie in the sky and can continue to be delivered on. >> yeah. we haven't committed to a number of prospectively, but what we have said is that mock among the large cap independent emps, we believe in the period 2013 through 2017. we are likely to lead the large-cap enps in terms of oil growth. and we feel we have the assets to do that, and we have shown the ability to execute on those assets. >> you did surprise me. you admitted that you have become, and i'm quoting you, slightly more bullish than in the past on natural gas. >> yeah, i'm the resident bear. every time i'm on your show, you asked me if i've turned bullish on gas. and every time so far i've

disappointed you and said no, i'm still bearish. but i am turning slightly more bullish. i will admit that, jim. and that is because more people aren't drilling as much or because you think it's starting to be used more? what made that price go to 4 bucks? because it's already gotten warm and it's still up there. >> yeah. i think last year was an abnormally dismal year for gas prices. and i think that over the next several years, a price in the 4s is going to be a lot more rational. and so, you know, i would expect over the next several years to see prices in the range of $4 to $4.50 is more typical. so i think the worst times are behind this in natural gas prices. >> that's really important. the other thing that did -- that actually saddened me, sir, when peers hammond asked you question, you said that 2012 was the peak for total u.s. oil

production. i would have thought we could still go much higher from here. >> well, i think exactly what i said or what i hope to convey there is that 2012 would be the peak for year-over-year growth in oil production, u.s. oil production. i didn't mean the peak. you know, in 2012, u.s. oil production grew by 800,000 barrels a day. and u.s. oil production will continue to grow over the next several years. but i don't think it's going to grow at an 800,000 barrel a day per year clip. >> okay. so it's more of a law of large numbers thing. what i wanted to ask you, increasingly, you have been -- you put the idea in my head many years ago, i didn't believe it, but that continental independence deleted -- if you let that key stone come down, but they can do it by train. continental independence is within our lifetime. >> yeah, i believe that north american oil independence for the u.s. is conceivable by 2020,

between the u.s. and canada, we can become independent, oil-independent in the u.s. and i do believe that, with this shale oil revolution, plus help from canada imports. >> all right. now, in the time i have left, i wanted to congratulate you. i understand this may be our last conference call together because you retire july 1st. but you're a young man. what are you going to do with yourself? >> well, actually, i'll be stepping down as ceo july 1st. but i'll still be with the company as chairman through year-end. so i may still be on a couple more of your calls, jim, if you'll allow me to come on your show. >> i certainly will. but i'm hoping you'll say in the future also that natural gas will be the surface fuel that we both know it can be, provided that washington at least gives tacit support to it. >> you are right. i mean, there is a revolution going on due to shale oil and

shale gas. and i think that it's going to change the whole economic outlook for the u.s. over the next several years. and there's no tenning denying it, jim and you're spot-on correct on that. >> you're the biggest creator of it, and best discoverer of it. i want to thank you so much for what you have done for your shareholders and coming on "mad money," mark papa, chairman and ceo of eog resources. >> thank you, jim. >> fastest, best category, unbelievable resources, unbelievable assets, and a good balance sheet. mark papa, ceo, eog resources. stay with cramer. coming up. cleaning up. >> really cleans stubborn dirt out? >> positively. >> clorox has been a staple in homes for the century. and now can it carry the stock higher? cramer talks with its ceo. and later, the doctor is in?

over 50 brands provide the pop for dr. pepper snappel group stock. but will it fizzle out or is now the time to take a sip? cramer pours over the facts with the ceo. all coming up on "mad money." it's as simple as this.

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steady consistent defensive consumer stable plays and bu bulking up on stocks that do better when the economy is going strong. what do you do with a stock like clorox, a classic consumer package goods play that pays 3% yield at these levels and happens to be celebrating its centennial anniversary today. clorox makes top-notch products, fabulous management, and since the last time we spoke with the ceo in march of last year, the stock has given us a terrific 32.5% return with, of course, reinvested dividends. clorox reported last wednesday, missed street and sales estimates, gave a strong outlook for a full 2013 fiscal year which is what we care about. we don't want to be too shortsight shortsighted. the stock has had a huge run and even though pulling back the last couple weeks, still only a few points off its highs. let's talk to the bankable donca thousand, chairman and ceo, hear more about where his company is headed on the 100th anniversary. welcome back to "mad money." good to see you, have a seat. >> thank you. >> so i see we've got a bottle

here that's 100 years old. and i think you have history of why clorox has been able to have such staying power. >> well, it's interesting, jim. may 3rd, 1913, five gentlemen invested $100 a piece, and they really created sodium hypochloride bleach, really commercialized it. it had been created, but the reason they were in oakland, california, basically bleach is saltwater with an electric charge through it. fairly safe, sustainable product. >> not the stuff we use to bleach paper, which is very toxic. >> that's one of the myths around household bleach is that it's this material that's used as chlorine bleach, if you will, for paper bleaching. and it's not the same thing. this has a ph of 11. that stuff has a ph of 2. so this is a very safe product when used the right way, obviously. but they use the brine pits in san francisco bay for free saltwater and put an electric charge through it and we have clorox bleach. >> and we have clorox bleach for clothes. but we also know, and we had a

super bug pharmaceutical company on recently that clorox is still the best way to kill germs. not just on clothes. >> it's very interesting. sodium hypochloride bleach and clorox, we have a 56 -- 65 share of this commercial market. there is no more effective disinfectant in the world and it's very interesting. it's been around 100 years and you would think organisms can adapt. but bacteria and viruses cannot adapt because bleach breaks down the entire cell structure, nothing left to adapt. so when looking at c divor mrsa or hiv and these bad bugs that cause a lot of chaos in hospitals, for example, and outside hospitals, there's nothing more effective than bleach. >> we did have for a period there a horrible flu season. >> right. >> and i understand you were able to pinpoint where it was and be able to have the clorox ready. >> it's very interesting. we have been monitoring social media fairly aggressively the last 18 months or so. >> twitter, facebook. >> exactly. and so we really looked at the chatter that was going on, basically by zip code, and monitoring the tweets in

facebook and we can actually -- what we did is coordinating with retailers, rifle shotted shipments of clorox disinfecting wipes, for example, into specific store locations where we saw the chatter the highest about flu -- >> you wouldn't have been able to do that from your own stores. you had to monitor centrally. >> you really have to monitor centrally, and we never could have had that capability three years ago, even. but now we have that capability to coordinate with retailers and go in. >> now, one of the things that happened this quarter, and it wasn't -- clorox had the same consistent growth it always has. but you are also kings ford, charcoal. i did not know how weather-prone clorox could be on a given couple of months. >> yeah. charcoal is one of those brands, jim, we tried to make it a 52-week year brand, but it's still between march and june, we do 60% of the brand's business. and we had the coldest march in over a decade and the category went down 23%. >> that's incredible -- i didn't know that could happen. >> in the six and a half years i've been ceo, i've never seen a

category that size shrink like that. so it's a bit of an aberration and investors looked at that and what happens over a year, weather events tend to phase out and you come back to a more norm. >> one of the things i think is important is to not jump in and out of clorox, because a lot of the performance you get as an individual shareholder of clorox comes from reinvesting the dividend. >> if you look at the last five years, jim, and this is basically since we have had the centennial strategy in place, we have returned about 98% tsr or total shareholder returns. our peer set is 82 and s&p 500 is 36. about a third of that 98% return is the dividend. reinvesting the dividend. so you really have got to look at tsr, not just stock price. >> that's why your stock has outperformed the peers. in the most recent presentation of cash, you want you want to maintain the debt leverage, support the dividend. you have a board meeting. repurchase shares when economically attractive. the stock has had -- we mentioned, more than 30% return. it can't be as economic to buy

the stock up here as it was. >> well, you know, when we look at the value of the company, and we're using a discount rate of about 7.5% of which we think is fairly good, the stock is trading in a range we think is good value. >> okay. >> so, you know, we'll look at that. we have an evergreen authorization, obviously, to offset, we have an authorization to do that. we will continue to look at that. but clearly, the priority right now is supporting growth for the company, and then getting this dividend. we have done 35 years in a row. >> right. one of the reasons why you know i favored your stock when i started because i love the long-term dividend aristocrat. one of the things people have to recognize, you're part of transformation -- actually, a couple. i don't want to slight multicultural and i don't want to slight the sustainability. but health and wellness is the way you view clorox. i'm trying to figure out how much innovation you're getting, a fantastic number from whole foods tonight. i'm conscious that that's where the market is going. but your green portfolio is not a big -- needle-mover yet,

although burt's bees is very important oh. >> burt's is doing extremely well, another double digit growth quarter, growing higher internationally. we see great prospects for that brand. and we were in five countries when we bought it five years ago, now in 36. a lot of those countries are kind of small flags we have planted. but we see tremendous growth potential in natural personal care. the other thing we see great growth potential, getting away from health and wellness into retail and into acute care facilities, hospitals and nursing homes. >> okay, now, there's been some private label competition, but it fluctuates. but is it anything -- i know some of the categories have been hurt and shown a little bit of decline. is that temporary? >> we think it is temporary. you know, you think about it, clorox competes in basically three categories where we primarily face off with private label. bleach, charcoal and trash bags. so three brands. and if you look at those businesses, clorox bleach has about a 62 to 65-share, depending on the quarter. >> it's not going to go to 80. >> no, but when you've got that

kind of share, you really set the category trend, and really we're the innovators in the category, private label does not innovate. there is an opening price point role. where is the innovating role. charcoal, 75 share. so, you know, it's -- we've got a nice castle there with a deep moat around it, and we are going to keep it that way. and trash bags, a 35 share. there's more competition from other brands in there, as well as private labels. >> let's take the case of other companies that want to be in this category. you have to innovate to stay ahead. but it seems like everybody wants to be in the filter business. how can you distinguish one from another? >> i think, you know, this brand has tremendous equity -- this is another one of our brands that over a 65 share of that market. and the product you have right in front of you, the can kids' version of the on the go bottle which we launched 18 months for adults now with kids, we're seeing this is a tremendous opportunity for getting this on the go consumption. so this brand used to be a brand stuck in your refrigerator.

>> right. >> right? now people are walking around with it. and so we think that really the equity of what was in the refrigerator for years is transferring now to their ability to want to walk around with it. >> one last question. the food business seems strong for you. >> yeah. >> you've added some extensions. is that one of your goals, i know you're not going to do any big acquisitions. o your goals to take more of that salad out? >> in fact, jim, if you look at the next few years for us, because i know you're trying to focus people away from a quarter into multiyears. one of the things you'll see from clorox over the next few years as this push into ajays en see is off core brands. so hidden valley just launched sandwich spreads. we were never in the sandwich bred aisle. we've got an equity that transfers and doing extremely well out of the chutes. so you're going to see us push brands, whether it's brit ja, hidden valley, kings ford. think of it like an archery target, going out. >> exactly. or artillery target. one of your strengths. anyway, don, thank you so much. congratulations on your 100th anniversary. chairman and ceo of clorox,

100th anniversary of this company that has paid a fantastic dividend and i think the dividend is only going to grow. stay with cramer. still ahead. the doctor is in? over 50 brands provide the pop for dr. pepper snapple group stock. but will it fizzle out or is now the time to take a sip? cramer pours over the facts with the ceo. i want to make things more secure. [ whirring ] [ dog barks ] i want to treat more dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us.

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today. liberty mutual insurance -- responsibility. what's your policy? it is time! it is time for the "lightning round" on cramer's "mad money." what is that all about? calls, you send them in and i tell you whether to buy, buy, buy or sell, sell, sell. you hear this sound and the lightning surround over. are you ready skedaddy. it's time for the "lightning round" on cramer's "mad money." start with ron in texas. ron. >> caller: bee bop boo-yah to ya, godfather. >> i like that. >> caller: thank you for taking my call. >> what do you have in mind? >> caller: clean harbor. buy or eliminate? >> are dealing with the quarter, i'm a long-term viewer.

it's got spills and will do great stuff with drillers. i'm a buyer, even though the chart is horrendous. hank in pennsylvania. hank. >> caller: how are you doing, jim? >> real good. how are you? >> caller: what i'm curious about, what's happening with rite aid? >> they're making a comeback. cvs is doing well and we know walgreens is doing well. and there is room for rite aid after all. scott in virginia. scott. >> caller: boo-yah, jim. i'm calling about calumet specialty product partners. >> i like that one very much. seven-plus. that is my kind of mlp. it is terrific. and i've got to tell you, these are all coming in, and i want to buy them. let's go to daniel in connecticut. tan yell. >> caller: boo-yah, jim. this is dan from connecticut. i'm heavy into clne, lien energy. let me know what's happening. >> earlier on today on our network, he always acquits himself well, but as long as you recognize that it's a speculative situation, i will

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whenever you hear someone talking about the beverage stocks, your mind automatically goes to the gargantuan billion dollar coca-cola or pepsico. but off from when vesting, it pays to take the road less traveled. get rich quick in ten easy sonnets. i want to draw your attention to the third largest cash natured beverage company, the $10 billion dr. pepper snapple group, dps for your home gamers. and not because i consider dr. pepper a tapel elf a balanced diet, everyone at the office laughs because i have to have it. it has gradually built itself into a small scale powerhouse, a series of acquisitions, also canada dry, 7-up, sun consist. you bought one, believe me.

the stock has run, up 30%, less than a point away from a 52-week high, but dividend yielding more than 3% and when dr. pepper and snap he will reported on april 24th, delivered off a 46 cent basis, but revenues were light. right now, i know, midsummer rotation where the defensive stocks like this could be going out of style in the wall street fashion show, now that the economy is coming back. that's where i want to check in larry young, president and ceo, to learn about the prospects for the year. mr. young, welcome to "mad money." >> thank you, jim. great to see you. >> thank you for coming on the show first time. >> absolutely. >> now, i know that this is a category that has been challenged, but what you're doing is bringing out new products to take more earl space aisle space of which we have some right here. >> exactly. what we're doing, jim, is coming out with a doctor pepper ten. we lost it about a year ago and with the test market and

everything, we started doing research to figure out who was drinking this product. we found out that 55% of the consumers had left the csd category and we brought them back. so bringing them back is how we get this category back to life again. >> okay. but the same time, you've got some noncarb that i think are among the best brands in the world that are still growing. which is the way -- if you have to put a dollar behind any brand, which would you do it? >> put a dollar behind it? >> yeah. >> you know, dr. pepper, of course, the number-one. dr. pepper. then it's the name, dr. pepper, snapp snapple. we play heavy into premium. a lot of value ts but we focus on the premium with our snapplel and dr. pepper. >> now, right up in the front, you're the only guy that did this, right up front in the conference call, pleased with the performance of the quarter. and right there, unseasonably cool weather across the country, and continued criticism of sugar sweetened beverages have hurt. unseasonally warm -- cold weather comes and goes. is this criticism ever going to die down or do you have to

adopt? >> i think that's one of the reasons we looked at and came out with a ten. we have got to do things to get that criticism to go away, get people realizing that we're giving choices. i'll never tell you it's not easy out there. it's tough right now. you wake up in the morning, we feed people bad news for breakfast. but we're going to have products out there that we can try to get some of that away from us. >> there's a piece of research by a guy who likes you, wells fargo, says it's called you're a bond. deutsche bank says it too. this is bond-like. when i first saw it i thought maybe like james bond. but you accept in our view, the company understands its lot in life, a slower, no-growth environment. i look at how so much of your business is united states. i know there are restrictions on what you can sell overseas but some brands have got to be gigantic if you get them overseas. >> they could be. but cad bury sold them in 1998. >> asia, you just made a deal. >> we can do some stuff with the noncarbs, exactly right. and we have a team look at that right now. but i want to keep the team

focused on north america. even though the behemoths out there have slowed down, have some cold fatigue, we still have a lost opportunity with distribution and availability. now, some brands are doing well, others doing -- stand out well, some stand out badly. how do you make more with mots and how do you contain losses in hawaiian punch? >> the mots has taken off well for us. we had had the cold weather this year. last year warm weather. the frost came n killed the apples. we went in and bought a lot of apples so we could continue to supply people. our mott's applesauce is doing well. you saw the numbers. hawaiian punch. we to some innovation, got a low-haul morning. we took 40% of the sugar out to make it better for you. plus added vitamins a, c, d and e. and this is a fabulous product. i do love it. hawaiian punch, normal brand, you're correct, it's down. we took a price increase and got punished at a large retailer. haven't taken a price increase in seven years.

can't make money doing that. >> i was saying to my friend david faber this morning, how would you like a hawaiian punch. i remember the ad from 50 years ago. a lot of these brands are well-known, but not thought of as dr. pepper. does that matter? like, this weapons -- wait a second. i always say, do i want to buy the canada dry or the scwepp's? it's all you. >> it's number one, number two in its category. people don't realize we're number one in gourmet beverages, we have all of the battled beverages. we're number one in mixers with mr. and mrs. t's. so we have a portfolio that gives us a lot to play in. >> we talk about slotting fees on these conference calls. you've got two of the most vicious competitors in the world, coca-cola and pepsico. i think the average guy at home wants to say those are great but you cannot compete against those two great companies. >> you know, those two competitors are fantastic. but i think that because of their strength, it makes us even

better. >> why? >> when we went public five years ago, we could not have gone public at a worse time. >> no. horrendous. right. >> we looked and said we are not going to just try and survive. we are going to thrive. most people were retrenching. we reinvested. we went out and started investing behind these brands, built a team of people that loved to fight that fight every day with the big guys out there. >> okay. but you also used the big guys to bottle. >> great partners. >> what did they have -- they said you know what, i don't like larry, i'm going to -- why didn't they shut you down? >> we have performance agreements to where we make sure we protect each other. and the brands are protected. >> okay. pepsico has a fantastic snack food business. i find a lot of these -- i drink this, i think snack. i drink this, i think snack. where is your snack business or is that not -- should want go there? >> it's not where we're at. we want to stay focused on beverages. we want to be the best beverage business in the united states. >> alcohol, ever? because you've got the mighty, you know -- >> we do a lot with budweiser

and clam atto. >> i like the clam atto. >> that does well with that and clam ato in canada, caesar is the national drink. >> its? >> yeah. >> i didn't know that. learn something every day. so in north america -- i had a place in mexico. i would expect to see more of your products. is that going to be the push? >> yes, it is. our business in latin america, especially mexico, has just been stellar the last two years. we're putting a little more focus than cad bury had in the past. our brands are pinifial, flavored water and squirt is huge. >> yeah, squirt is big down there. pressure to get rid of the big boys, i know that our mayor in new york city, bloomberg, regards these as public enemy number one. >> he is it. but, you know, we had the issue here, and we won in the courts. >> right. >> i sent him some of our ten. >> you sent mayor bloomberg? >> i sent him some tens to show we're involved. we want to help be part of the solution for obesity.

but don't start banning things and telling people what to drink. you can get a 12-pack of ten. you can drink the entire 12-pack and have less calories than a regular dr. pepper. of course okay. you -- when you do ten, i'm trying to understand the supermarket business. i once had a food company. you go into safeway, you go into -- well, let's say you go into kroger. listen, a new product. why don't they say we don't need room for your product. we've got pepsico, coca-cola. i'm sorry, it's great you have a new product, no shelf space. >> we show them our products are growing. if you break the cst category down, flavors are still growing. cash natured soft drinks, cola has had fatigue, flavors are growing. they want to see something growing. they get that category back to profitability. so we walk in and work with them on category management, say, let's make sure we have the brands in here that are number one or number two in their category. when we do that, our brands win. >> well, it sounds like, look, you've -- been able to make a huge amount of money without a lot of growth. if you get growth, it's probably

going right to the bottom line. >> right to the bottom line. very shareholder-friendly. >> i know you are. other categories in the company are too. you have great businesses you're against but you have a fantastic return. that's larry young, president and ceo of dr. pepper and snapple group. can you believe all these brands are theirs? stay with cramer. with the new staples rewards program you get 5% back, on everything. everything. everything. everything. everything? [ all ] everything? everything. [ male announcer ] get free shipping and 5% back on everything your business needs. that was easy. test.

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businesses are doing, and how they're stocks are towing. stunning. the percentage winners tell it owl. first consider fossil. here is a company stung by an overreliance on europe trying to recover since a shocking shortfall around this time of year. today crushed the earnings and pulled nearly 9 bucks. i don't think it's done. now the comparisons to last year grow easy, and fossil has new-found support. perhaps to take the stock back to its old 140 level. then there is the chronic underperformer that is abercrombie & fitch. just simple mentions like this upgrade from wells fargo send it soaring. all is forgiven with one of the worst retail stocks to own the past couple years. or take textron, may have had the biggest miss, now the defense contractors are rallying. time for the stock to play catch-y catch-up. dropped on the breakdown, but now has rallied and starting to come back and maybe can go all the way. although definitely a buying opportunity when down there.

ultimately, it did give up the game later in the day. but fedex, in its fall from 109 to 91, wow, itight been, and could still be a buying opportunity. here's the stock that's never has to say it's sorry. it just bounces down, suddenly people totally forget its transgressions and say worldwide economic growth coming back? buy, buy, buy! fedex. could the stock regain its old heights? all it has to do is keep its mouth shut and perhaps it will. finally, one other loser back in is jen worth, gnw, this along with raid i don't know is doing strong because of the mortgage settlement, and continued runoff of bad insured mortgages for good once. they're roaring as part of a grab for anything left that hasn't run. and you know what? i agree with almost every move, as long as these companies don't report and spoil the thesis their stocks can still go hihigher. remember, the market is not about truth, justice and reality. it's about perception and prognostication. even if it's wrong.

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here on "mad money." i'm jim cramer, and i willç for faced each other before in the playoffs, animosity escalated quickly. >> eller is down flat on his face and hasn't moved. >> just hockey play that went bad for now. >> we don't really care about what that bug-eyed fat walrus has to say. >> we are going to have a war here in center