well, looks like our time has expired. thank you, guys. that's its for "options action" tonigh my mission is simple, to make you money. i'm here to level the playing field for all investors. there's 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, i'm trying to make you money. my job, i'm teaching and making you money. sure, i know we have to take a breather eventually, things are getting too hot, we request see that. as i said over andç over again this market is raised by earning, by profits.

as long as the earnings are stronger than we suspect, there will not be a pullback, think about it, yesterday, one of the worst days of the year, the dow record to 121 points today t. svp subpoena flying. nasdaq leavetating .97%. mostly because the earnings simply remain solid. let me give 2000 quick facts, earnings this quarter is running at 2.4% year over year versus the expectations of 1.8%. that's a very big percentage gate. get this, 67.6% of the companies that have reported this earnings period have had positive earnings surprises. only 26 .3% have been negative. those statistic, those have been the drivers behind this exstrorldnary run. you can't take it away from that. that's true. it's happened. will it continue, though? let's see what it awaits us in the game plan. kicking things off, we hear from

campbell's soup. that's before the opening, the cpb, campbells pork and beans. we normally don't care about the household brand the consumer package has gotten to overvalued, at least over it's historical value, we have to pay attention. hey, geeze, they don't have that big of a yield any more. also, part of it comesç from mh better than expected earnings from this industry. campbell's keeps its trend up, it could spur the next move. remember, mondays around here have been very weak. it's tuesdays that have been up 18 straight weeks. so i'm not betting for a strong report or a strong reaction. now, today, this is really important. because i don't want to let you down on this. today we saw the spectacular performance of the ipo of tableau. it's like zbat eau. tableau. this software company provides trends in visual fashion from

the databases. the stock became public at $31 bucks. it opened at 47. this deal reminds us the street is giving monies away on these ipos again. hey, we want our fair share. so think about this, i need you to put in on monday with your broker for some key deals that are scheduled next week. they told me very few people got stock anyway. this may not be the case. first this channel adviser. this is an e-commerce software company that allows retailers to present their wares. every retailer i talk to want to have omni chaenls. second an old favorite of mine, from what it used to be. public. plygen. finally, you should try to get sprouts, farmer's mark, notç o here yet. this is a real heads up. sprout's farmer's market makes 150 natural organic deals. i expect fairway to be code to

premium. that was at the last minute. so i got to get you heads up on sprout. it got hotter in this segment when whole foods reported a terrific number, that has not moved at all. sprout may not become public really short-term. maybe in a couple weeks, three weeks. but i think it's important to the highlight now. because if i want you to keep this in front of you so you can get some of this i think that will be a high deal. tuesday, like so many days next week, we got a huge number of retailers reporting. i'm a little nervous here. because first up is best buy, bby. this stock has been ripping ever since it last reported. business appears to be stabilized. amazon to death seems to vanish. that said, i don't want to go into that quarter, being, owning that stock. because walmart in its conference call, if you listened to that yesterday, they specifically called out home entertainment as a weaker portion of the store when they

reported their own dis a pointing seller. i think most of the short sells have been done. they have been cleaned out. which means there may not be a trampolineç underneath to boun from anymore. without the trampoline, you get the picture. auto zone, oh, boy, this is an interesting company. auto zone, going to the zone, puts up numbers tuesday. i have been following the stock for years ever since they took the position bsl partners. this is one that's really good to play after reports. so often, azo gets hammered on the quarter. but then we hear about how things are actually better than expected and the replacement auto parts business and we see how much stock they bought. it's an incredible buyback. it's still shrinking the flow dramatically. then the buyers rush in. wait until you see the whites of their eyes and then some. then pull the trigger. now, there is home depot. sadly, my charitable trust sold

out just today. we have become so greedy. we felt the expectation has become so elevated. bulls make money, bears make money. after what we saw with walmart, we didn't want to risk it. keep that in mind as you approach a stock that has run 24% this year and was up big last year even as though the ceo is terrific and i'm going to getpy tomato flats there. the trust also rang the register on some, not all, tjx, which reports before the opening tuesday. here we felt the disappointing results in jw nordstroms could pretend weakness in tjx. although, barely at the end of  got d. that's remarkable, too. it was a big disappointment last night. still the retailers have run too much from my taste at the moment. at a certain point, you get a nose bleed. after the bell, we see a situation developing net app. everyone called it end app. the symbol is netapp.

the time it's elliot management, remember them from hess? they just got people on the board. they want a new end team as well as that $5 billion in coiffeurs returned to shareholders. so what's nettap response going to be? let's take a listen as i know my partner david faber will. we are fast netted to this one. wednesday, more retailers. yeah. more worries. target and lowe's let us know how they're doingment programs target has been able to stand taller than walmart. perhaps it can be like coles kohl's, the stock ran. i don't want to bet on it unless the stock comes down ahead of the quarter. maybe the retailers on tuesday are weak, these stocks come down, then we can rethink. that's the same with lowe's if home depot comes down f. nay have even a single fly on it. i think some will say lowe's is infested. we got two other bellwhether industry two i'd like to see

what happens, i don't know.ç hewlett packard and toll brothers, hewlett packard rallied 50%, most of it was down 44% last year. also because many people are thinking the ceo can turn the once proud company around. look, i hope that's the case. there's hundreds of thousands of people that work there. i wish them well. after seeing dell's numbers last night, which confirm they are in the midst of a huge downturn if not a total tailspin, i wouldn't stick with hewlett packard, toll brothers? here's some irony. last time it reported the stock was roughly right where it went out today at $36.92. now, after that report, which by the way i came on and said i didn't think it was that bad, but the stock got hit. well, after the report last time the stock got dropped for about a 20% declient. i thought the hit was unfair. i urged you to buy it when it got lower. but the bruising is still in my mind. if toll is riding high into the quarter, i don't want to own it. that's despite the fact it's a tremendous homeowner.

i'm a huge bull on housing. it seems no matter what toll does, it isn't enough to please the jackals out there. thursday, we got a couple discounters that are worried. yes, i'm portraying myself as worried. we got dollar tree, my favorite place to get candy with pop down in south philadelphia. now, that store has many characteristics of walmart. and that, therefore, is worrisome. ross stores, which hid been on of my favorites has been acting funky of late, the stock. finally, so that also has been served. but finally, get this, there's sears. this has lowly expectations and a housing tie-in? bring it in. that's for me. after the bell thursday we hear from sales force.com. this is the best of the best of the high place. think about that thing tableau that came public. this is times ten. i think it will be a lights out quarter. sales force drove the stock up

immediately. the stock was quite a liquid. i think this is worth earning going into the quarterment i actually say you can buy sales force and sear's ahead of the kwoorter. we also get a glimpse at how williams-sonoma reported. it was a remarkable quarter how good it was. they were on "squawk on the street" this is the highest of the high end all things housing related. it's been winning. this stock, downgraded today, seems to be in the true sweet spot, i think. what is crucial here is the stock must be down a little more than it's currently. it's only $2 off its high. if you want to take a shot ahead of the quarter. i'm worried that one has moved too much, too. finally on friday, we hear from retailers totally ungamable. another one that has run too much. abercrombie and fitch and footlocker. when we last heard, we expected all bad. the news is good.

the expectations have been ratcheting up. perhaps too far for us to make sense to own anf going into the quarter. foot locker will most likely have a good quarter. the stock is pennies from its 52-week high. so far that hasn't been the place for any retailer going into the earnings report. you can say i'm colored by the walmart and nordstrom's disappointing week. here's the bottom line. we've had a remarkable run. expectations were lower going into the quarters. that's no longer the case. given the plethora of walmart and nordstrom's, i want to be careful of these stocks until expectations are reduced or the stocks reflect a little more weakness than they currently do. let's go to larry in massachusetts, please, larry. >> jim, how is the maestro of the market tonight? >> real good. how are you? >> caller: i'm terrific. i want you to know my daughter's welded a pennet from the first inner league game june 16th,

1997, don't ask who won but it took ten innings. >> most likely my friend from the rhode island gaming business was in those games. >> caller: i have no doubt. thanks for your passion.ç keep the homework clear. shoutout to katie in honor of louise who convinced you of being your best you. >> thank you very much. >> caller: you are welcome. you often say don't buy an ipo in the after mark. some of us aren't heavy hitters. with facebook that opened at 38 and closed at 38.01 on the same day, you turned out to be right. >> thank you. >> caller: yesterday, william lyons closed mid-way between its prescription price and its opened. big zimpbs differences, how were we to know yesterday whether this was a buy? >> i think it's interesting you say this i was buying all day yesterday. when the market went down, that's your opportunity. i think if you can buy the stock at 26, it goes to 30. i like the call.

i thank you for your kind comments. john in california. john. >> ah, boo-yah to you, cramer this is john calling from huntington beach. my stock, you don't like that at all. amd, it went down dramatically. it went back up. this tuesday, they have a new x-box. >> yeah, but you are right. that new x-box will be true for amd. goldman took it to a sell. the stock bounced right back. you know what, i think everybody knows the good news, i betcha you don't make that much money when it comes out. i believe microsoft will take it. expectations are high again. disappointments. be careful of these stocks until expectations or share prices come back down. it's going to be a little tougher week. retail is the group that has run too much going into the quarters. "mad money" will be right back. coming up, soaring spec. from stints to pace makers, the scientific spec makes medical

devices that save lives. after soaring over 50% this year alone, cramer is giving it a check-up to see if it can continue the run. . and later, . and later, time to part ways? two parts of one major biotech play, both made billions. but, are they better off alone? tonight, don't miss the potential split that could spark the right chemistry for your portfolio, all coming up on "mad money."

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>> how >> how do youç shop for bargai when the market keeps roaring relentlessly higher like today? this is a moment where it pays

to start looking at long-term losers. yeah, losers, ones that had been dogs for ages. to see if any of them have what it turn things around. i have a turn-around story for you on speculation friday. i'm talking about the once great medical device maker boston scientific? bsx? a stock that has been on a long, painful slide lower. >> the house of pain! >> for the last eight years. only now i think boston scientific has bottomed and may be able break out to the upside. boston scientific had a history of making minimally invasive devices, things like catheters, pace makers, implantable dede fibrillaters, and stints. you can use it to open up blocked arterys. they cut down on the need for bypass surgery, which can be

ricky and expensive. i thought they were the king of stint. we used to call at this time king of stints. this business gave them fabulous growth. then it became saturated. since then the company's ref fews have declined dramatically. in bothç the drug elugd stint business and the management pace makers. these two areas very bleeding for ages now. in the beginning of twoex, they got guideant for $26 billion in order to rejuvenate itself in its business. instead, guidant brought tens of thousands of product recalls followed by lawsuits. they would have been better saving its money. the entire company has an enterprise value of just $15 billion beyond the fiasco, boston scientific faced everything from patent lawsuits to serious competition in a weak

global economy to fda warning letters for quality control issues. to give you some idea how far this stock has fallen. in 2005, boston scientific did an astounding $45 a share. for more than three years now the darn thing has been flatlining below 10 smackers. however, maybe something has changed. they've rallied an amazing 59% since the beginning of the year at $9 and change, i think it's poise food breakthrough the $10 barrier. the reason the company has been slowly step by step turning itself around t. margins are on the rise. the balance sheet looks good. they finally have a pipeline with some exciting prospects. that is why we have the revenues now. certainly in theç future. the company is going into a bunch of new areas. they bought a company called asth matics. they're telling subcutaneous implantable defibrillators that

go right in under the skin rather than needing to be placed right next to the heart. the transcatheter aortic valve replacements, where a new heart valve is delivered via catheter. they are working on a closure device, which is implanted in the heart. they have a minimally invasive device via a process renal denervation. they have a deep intran stimulation device that helps with the number of neurological problems. all these new areas together are expected to post a 57% compound annual growth rate on 2014 through 2017. don't get too excited yet. these products account for 1% of boston scientific sales. remember, they are all new. some aren't out yet. by 2013, they will be up to 20% of the company sales and will be very profitable. the thing you need to insurance about medical device kansas, they thrive on if you products.

they give the sales people something to sell. they cap cure tapture the atten of the doctors. they won't start moving the needle uít next year. boston scientific is speculative. consider their subcutaneous implantable defribrillator system. the only device of its kind on the market. this one doesn't require electrodes to be run through the blood vessels and placed right on the heart, making it more safe and reliable. as you know, that kind of surgery is the kind of surgery that is life-threatening if it goes wrong. boston scientific had devices. they don't have the supply to meet demand. when it's fully launched, this could be a $750 million product. it's just one of the many new products that are out there. i just mention it because to me it seems like, well, emplemattic of what bsx is doing.

last week, boston 69 tick management had a question and answer sex. they told us the company's cardiac arrhythmic management biz is poised to improve remarkably. they highlighted the products just mentioned. management said after years of revenue declines, boston scientific is on track. no one seems to be talking about this. is on flat to flat to positive sales growth in the second half of the year. >> hallelujah. >> boston also told us as the company's revenue growth accelerates, there isçser is revenues to expand. it makes after the cost of its sales. meanwhile, bsx stint business has begun to stabilize and a rising demand from emerging products, not the u.s., brazil, coin, the usual suspects.

overall the overall stint business is still declining, at a much slower rate than the hideous declines we seen over the last few years. we are looking at a gradual 1% slowing for each of the next five years altogether. boston scientific is going from a company with declining revenues to one that's going to have consistent mid-single digit revenue growth and faster earnings growth. since that session, they have upgraded the stock. wall street is clearly getting more comfortable with boston scientific again. something they will, i believe, over time push the stock higher him right now bsx sells it at paltry rate. i said, give me a break. i had to crack the books on it. the best of breed medical devices are out there 16 times the earnings.

if bsx can keep executing, i think it can perhaps trade up to abbott levels. hey, thaé'r a 26% gain. okay. 26% higher than it is right now. i think that can be the beginning. as the revenues for many of those new products start to kick in. here's the bottom line. boston scientific may have had a huge lose, there is no doubt about it. but with the company stemming the bleeding in its businesses or releasing a host of new medical devices, i think the stock will have more room to run. remember, this one is for speculation only as it remains unproven and disliked. but the risk rewards are too great to ignore i. they get to 11 and change where the stock can go to simply the it gets love from the street, instead of the contempt it has experienced for as long as most of us can remember. after the break, we'll try to make more money. coming up, time to part ways? two parts of one major biotech

play, both made billions. but, are they better off alone? tonight, don't miss the potential split that could spark the right chemistry for your portfolio. . . çç

>> what's the best breakup song? i have a lot of god contenders like marvin gaye's "heard it

through the grape 59." or bill withers "ain't no sunshine when she's gone." maybe something more contemporary, i find it in my first 500 songs on itunes, it's nt i was too afraid to rry. ask for my pick. that's my money and that's what this show is about, money. the best breakup song are written by healthcare companies that have gotten too big for their own good. you don't see them on the top of itunes. don't think they're not happening. i'm constantly floating the idea they have value with the stroke of a pen, typically by selling off components of themselves. wall street can be really stupid. to put a value on it, they need to have it broken to have it broken up. by far, the best of tease breakup plays have been in healthcare. which is why tonight, i got a new name for you with a tonne a tonne of breakup potential. teasing. because first i got to go over the formula.

back on october, 2011, abbott labs told us it would split off its pharmaceutical division as a separate company called abv. vie. i think it's silly. what do i know? we recommended it a few weeks later. the day before the breakup was announced, abbott have given you a 60% gain. if you count t when the actual spin-off happened at the beginning of the years ago you'd still get a 25% return with the spin-off they gave you. even after they announce it, you still made money. how about one i really like that i know a lot of people say, oh, jim, it doesn't keep me wide aquake. q qvidium. the stock is up 52%. even whisers that a breakup, covid yen. they took the hem him at johnson

& johnson, ever since then, there has been near constant speculation. i'm whispering, including from yours truly that alex gorsky might unlock value by splitting up the company in four ayes. j & j is up with dividends in 14 months since sikorsky have become ceo. it's up 24% over the same. sikorsky has not hinted at all. he did say he wants to hear from underperformers. these healthcare breakups are a tried and true formula. they create value instantly. so who else can follow this playbook? how about -- bax? that's right, baxter international. the red-headed stepchild of the healthcare sector. baxter is an example where it does not belong under one roof.

on the one hand, they make everything from prefilled syringes to iv nutrition products, infugs andacy at the timic, kidney systems. take a look, heaven forbid if you have to have one of these, it's always done, it's always baxter. on the other hand, baxter has this biosceness division where it develops treatments based on plasma based protein, high value added. for hemophilia, immune deficiency, burn, all high added proprietary stuff. as we seen from abbott labs and co vidium. the value is created instantly. i see no reason why backster should be any different at all. it looks like those two. even though the healthcare stocks have been red hot this year, baxter is up less than 9% since the beginning of 2013. hey, join the party, partner,

dramatically lagging its cohorts. some balls it was working on a alzheimer's drug. a week ago, it failed phase 3 clinical trials. 24 hour hours later the stock was trading above where it was when we found out it was no good. that along with the fact that compassion ter yields a juicy 6.7%. it's a few below where it is currently trading. so this is not a speculative situation. now, the real reason baxter has been lagging its cohort at least in terms of my view on "mad money", is simply because the company doesn't make sense the way it's currently configured. yeah, it's just like abbott labs before the breakup. abbott walls always misunderstood. you have to understand, wall street is full of analysts highly specialized. typically, they follow one industry. like a cardiac doctor and a surgeon don't follow the same thing. you have analysts that cover and analyze the pharmaceutical

business, but they are separate. the way the professionals work doesn't lend itself to something like baxter, which is a pastich if not a mosaic of medical device and drug company under one roof. if you want a drug company portfolio, you buy a medical device play. to the wall street fashion show, baxter is neither fish nor foul. in fact, it's an unap advertising mix of fish and chicken that nobody wants to eat. you break this company, you break it up, you split it into a medical products business and a pure play drug biz, i think both will get the respect and valuations they deserve. honesty, the baxter situation is so very reminiscent of abbott lab, ever since the beginning of the year, it rallied 12%. the spentoff abv is up a fabulous 33%. that's almost regeneron like, for heaven's sake.

a lot because two plays are easier in value than to own as one jumbled stock that's too big for its own good. baxter has taken a step in the last direction. last july, i efficiently restructured into the biosciences and medical products division, making it much better to organize a potential breakup. earlier this week, morgan stanley recommend that baxter split itself along the lines i'm suggesting. it bothered me. i wanted to do this two weeks ago. they got it out ahead of me. they're paying like a gazillion dollars. now we know management has at least that's what it will be on twitter. a talk show host. that's okay. it's still right. least, another reputable source besides "mad money" had this view. so it's like, the "mad money" team had it and also the morgan stanley team, of which i will match our team up against their team. anyway, how much would baxter be worth on a breakup in the bio

sciences business is expected to earn doctor 2.94. the high flyers traded 21 times earnings. let's be conservative. let's say they can trade at 19 times earnings. celgene is much higher than that. let's call it investigation. the medical products division, a 1.84. that's concerning, you got a 38.28 stock. why don't we add these together? you get about 87.5 dollars. and again, that's simply the value of baxter could create with the stroke of a pen. that's right. it would be up that much. i believe if on monday morning, we came in and they announced this breakup, i think you get 19%. it doesn't factor in all the improvements by letting each business focus on what it does best. baxter bioscience did $6.2 billion in sales. it has a terrific pipeline. many we call these like hockey

plays until hockey season is over. many shots on goal, including a hem fellia b treatment designated an ar fan drug. we love the orphan drugs on this show. it's currently iwaiting approval from the dfa. gambril will give them nor exposure to kidney dialysis machines. so here's the bottom lean of what i regard to be one of the best ideas we've her had on "mad money", breaking up really young healthcare companies is a nearly sure fire way to create value. i think baxter should take a page from the breakup playbook around send its stocks soaring higher with the stroke of a pen. simply by spinning off one of its divisions. in the meantime, you are being paid to wait with a stock that might do fine until they figure out how badly baxter needs to be more than one company. rob in washington. rob. >> hi, jim.

boo-yah from washington, d.c. i'm a recent grad. i just started my portfolio. you speak a lot about orphan drug companies. i'm curious about quest core pharmaceutical. >> it's funny, quest core, that's a sore point with us. we liked it. then there was a big bear rate. it got cut in half. it bounced back. i don't want you near this stock. it's got this one gel product. i just think you got to have many shots on goal. that has one. i do not want you to buy. >> don't buy. >> quest core pharma. sometimes breaking up makes you better, makes you stronger. the best from baxter as we seen it in the other healthcare plays, split yourself in two. we get 19% monday morning. don't move, lightning round is next. [ music playing ] the ocean gets warmer.

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12k3w4r6r7b8g9s. it is time, it's time for the lightning round. then the lightning round is over. are you ready, ski daddy? it's time for the lightning round. i want to start with nick in

arizona. nick! >> caller: how are you doing, man? >> couldn't be better, how are you? >> caller: ubnt. >> you will get a chance to see how good it does. it filed a secondary tonight. now, i happen to like the kind of network assistant company. but i have to tell you. you have to wait for the sec area. let's go to rich in illinois. richard. >> mr. cramer. i want to thank you for all your help and guidance and today i want to know about cornerstone on demand. csod. >> i recommended that stock a couple years ago after doing some research on it when i was when the. it's now double. believe it or not, even though it is doubled. you should ring the register, you are being greedy. social networking software and people like that. software on demand. people like that. this is a good stock. i need to go to john in washington. john. >> caller: boo-yah, mr. cramer! >> boo-yah.

>> caller: thank you for keeping my head on most of the time. sometimes i want to get unscrewed. >> no, keep it on, it's much better that way. >> caller: my stock is heckmann, now they're changing their name. >> we got the baker reused count today. for the first time as when i can remember the rate count is the higher, which mean, buy, buy, buy. it is going to make a comingback. i know people are sick of it. bruce if arizona. bruce. >> caller: they're raising their dividends here this week. how does that look? >> what was the stock, i'm sorry? >> caller: pot ash. >> caller: pot ash. >> pot ash+++zr(x that doesn't cut it for me. that, ladies and gentlemen, is the conclusion of the lightning round.

. >> caller: a big texas boia. >> i like that one. >> hello! this is michelle from zane st. charles, missouri. >> one of my favorite towns. >> caller: first off i want to tell you i'm madly in love with you. [ music playing ] >> caller: i am, are you a man that makes me money. >> take it where you can. i want to go to donna in texas. they like me, too. >> caller: hi, jim cramer. thank you for taking my call. a few months back, you had the ceo of millenial media on. i liked everything so much, i lost the stock and then i --. e. >> over the last two years, pot ash underperformed its peers, lagging by 20% and falk behind the philly semi conductor index also known as the sox. led-based lights have become increasingly popular. they actually look like an old fashioned light bulb. not a prop from a low budget

science fiction movie. i feel like i'm the sham wow guy here. oh, yeah, the chap slop, whatever that thing is. >> when i originally recommended this, no, they're indestruct i believe. when i it's not rocket science. o' it's just common sense. from td ameritrade. -- when i

--

--. you know what's been building up in the tweets. it's time to answer the tweets, you have been sending the them @jimcramer. i go through most of them t. ones scatological, i delete you, i'm sorry. let's take our first tweet from @gamekeeper, who tweets, how do you think radian rdn group can run, how far? okay. now here's the thing about radian, i was asked about this on twitter yesterday and the day before, it was my speculative stock of the year.

i said i don't want to get caught up in the notion i give you a price target like 16 and it go es to like 15. here's what i want to say. radian is very undervalued an what's happening is the bad mortgages are rolling off. remember, there were mortgage insurers. a lot of good mortgages are being written. next year, the faa the principal exceptor, ratings number one, i expect them to drop out entirely, radian will have a much better year 2014. i want to stick with the facts. i like radian, by the way, i also like genworth. it's very, very good. next, let's go to tyler ashworth at tylerash worth, who says, since stocks such as ko, coca-cola and wc, wells fargo have hitten high, should i wait until lower to re-invers. there was a tweet, i answered, was there a situation where i should assess dividends? i said, yes, they're a nuclear

war. you want to reinvers your dividends. i like wells fargo. it's an inexpensive stock it just got back to where it was before the great recession. coca-cola, frankly, not a lot of upside. "mad money" is back after the break. .

[ chainsaw buzzing ] humans. sometimes, life trips us up. sometimes, we trip ourselves up. and although the mistakes may seem to just keep coming at you, so do the solutions.

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interested in the stockmarket again. the market has been my passion, my wife's work. i like to progressive conservative it. keep it as pristine as possible for individuals of all age, all levels of wealth. sometimes i consider myself the equivalent of a park ranger, for all generation, that's why i consider the facebook ipo the equivalent of a man-made forest fire, an abomination of a deal which spoiled the park that i wanted to much to preserve for those missing out on this amazing mechanism, the market that raises money for companies an helps tens of millions of americans save for retirement or college or plain old fun. by now, we all know what happened. the public's demand was the amount available for sale until the last minute when a segment of the public, including hedge funds and mutual funds, learned that business had slowed. facebook has been caught flat footed with incredible speed from desktops to mobile devices. the smartest guys in the room

didn't see the widespread mobile adoption coming. so they were no longer able meet the projections that so many thought they could. at the same time, facebook realized it wouldn't be able to deliver on its promises. the underwriters were uncertain of what to do themselves. the sophisticated investors with the knowledge of the slowdown and transfer from the desktop to mobile were walking away as users were stepping up to buy stock. that created distinctly the 1999-2000 dot-com outcome where the tide and the institutions that got stock, they were all eager to flip and the retail investors chose to use mark orders and had to settle on an artificially high price that, of course, co loopsed immediately. as if it wasn't enough. the machines broke down, too. overwhelmed, despite what had to be the most telegraphed situation imaginable. one where humans and computers should have been able to keep a steady hand on the tiller. instead, the hand broke.

we can say all these aren int mistakes. all right in the combination of a greedy company, mutual funds and hedge funds with better information than you had who had a chance to back out at the last minute and the public, which trusted an untrustworthy system, caused a true spoiling of the landscape. given there have been so many insider trading an ruination of the flash crash, so many questions about the shady nature of high frequency trading, facebook amounted to a big nail in the comp, for pretty much everyone who jumped into the stockmarket on that faded day. since then, i believe facebook has come on strong, the adoption of the site remains ro bust. but it has become a very hated company with a very hated stock. at least on wall street, in part because of what happened the day it became public. in part, because the xen executives have never regained the confidence of institutional investors for the failure to see users from the desktop to the mobile phone.

i think it's an unfair judgment. charitable trust has been a buyer of facebook, a long-term speculation. it has candidly been unrewarded. i think the execs are smart. i think they figure out how to monetize their popular institution of 1.2 billion users. but the market, facebook made many people avoid the stocks since they realized nothing's changed at all. they were simply there once again for the fleeving. the lack of respect for mom and pop investor discussed. for these people, the initial offering oof facebook was truly a revolting development. one that left them thinking, you see, it is, indeed, all rigged. while you know i don't agree with that, i can't blame anyone for reaching that sad, sad conclusion. stick with cramer. we must have a special council to clean up the irs

rat's nest and apple steve cook is becoming a sider and consumer confidence has spikes go spike up. up next on "kudlow." on something that concerns all of us...obesity. and as the nations leading beverage company we can play an important role. that includes continually providing more options. giving people easy ways to help make informed choices. and offering portion controlled versions of our most popular drinks. it also means working with our industry to voluntarily change whats offered in schools. but beating obesity will take continued action by all of us. based on one simple common sense fact, all calories count. and if you eat and drink more calories then you burn off you'll gain weight. that goes for coca cola and everything else with calories. finding a solution will take all of us. but at coca cola we know when people come together good things happen

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[ static warbles ] [ telephone ringing ] (announcer) at scottrade, ourom clto make their money do more.re (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies." well, it's been an amazing week. i know all everyone can talk about is froth. tesla, we'll put that in the froth category. i'm not putting netflix in the froth category. i still think microsoft or yahoo or facebook or even am should buy them. i tell you, if that's all the

froth we got, i say stick with it. do not be cashing out yet. you do have some time. we can go higher. like i said, there is always a bull market somewhere. i promise to find it for you right here on "mad money", i am jim cramer. i a will see you monday. good evening, everyone, i'm can you do lie, this is "the kudlow report." steve miller found himself on the enof a capitol hill grilling today, apologizing for what he called mistakes, still denying the agency targeted tea party and conservative groups for idea logical reasons. at times, it got a little tense. take a listen to this. >> is it illegal what they have done? >> it is absolutely not illegal. >> it is not illegal what the irs has done. >> so let me understand the question, what is your statement as to what is