>> comps solid, still think it goes higher, gps. >> i'm melissa lee, see you back here tomorrow at 5:00 for more "fast," "mad money" with jim cramer starts right now. st . 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 just trying to save you a little money. my job is not just to entertain you, but to educate you and teach you. call me 1-800-743-cnbc. how much downside is left? is it over? today the averages got hammered

for much of the session. calvin klein triple digits in one scary moment before a dramatic reversal that propelled all the indices. the dow getting 8 points. the s&p rising an astonishing person. people went home feeling real confident. a rebound caused by an eeny, teeny decline in interest rates. tomorrow we get the report from the labor department. that could sent rates back up, which could reverse this rally in a nanosecond. if we get a strong number, one above 167,000 jobs people are expecting, i think the interest rates will spike up. the good news is bad fuse. if we get a weak employment number the number that shows substantially fewer people are higher, then the stockmarket could sell-off.

yet two weak go down too strong go down t. report has to be just right, it has to be 160,000 jobs practically on the do. you know why? i think that can happen. let's just say that can be difficult. so why don't we do this? in the interests of trying to figure out how low we could go, why don't we just presume that it's the wrong number and the market goes down? let's presume it. what does it look like? where could it stop? what's the worst case scenario, not saying the worse will happen. i think it's important to ka noodle on this issue. one thing we know about sell-offs is they take into account all stocks. they can hit everything. so even a too strong or too weak a report would create interest to sell stock, the impact would be initially the same. sec, i'm trying to assess worst case scenario, i seen big moves, starting my career the dow jones

was 1,100, i like to go back and look at when things were when the most recent run-ups started. not the big runup from the end of the 84, the most recent step up. then i ponder what triggered the rally and see the components where they were. i puzzle over whether the games can be held or rolled back by negative news tomorrow. this last leg of the dow to 15,400. i like to use the dow the people know the s&p. they're more familiar with the dow. the last push the dow to 15,400 t. recent peaks started in february. what triggered this last run-up? you know, i go back. i read all the stories from february 14th to 18th, which is really the genesis period and it was a wave of takeovers. a wave of takeovers that looked to be settling at the beginning of a massive consolidation of many industries by brilliant buyers you trusted, warren

buffet, berkshire hathaway, liberty global acquiring kinder media. kinder morgan purchasing pocono, comcast and officemax and home depot talking about americaning in an industry horrendously overpopulated. michael dow, he's trying to take dell private at the same time. smart buyers everywhere. they must know something, right? these deals cause a colossal evaluation of all stocks. for homes, remember i told you last night, homes are what matter, led you believe stocks were too low. even after what had already been a trick run from the whole fiscal cliff problem. however, that wave of deals turned out to be a one off tsunami. there was no follow-up. in fact, we are now on pales for the fewest big deals in years. so much for that evaluation. that was wrong. yes, the spring selling season was strong for housing, perhaps too strong, because it caused

mortgage rates to fly off the levels that could slow down housing entirely, 4% mortgage. i know it sounds lie, the low vs. historic of our lives. it's very high vs. where it was. that's the only part of the economy that's robust at all t. two pill ars that took us to this level have become let's just say shaky at best. all right? next i like to look at what stocks are vulnerable in the dow jones average, ones have moved up. >> tim: gantically since this leg of the rally, this is the leg i think is vulnerable. i see which ones moved up here. it's like they're the likely ones to go down. they're the likely ones to cause the weakness going forward, people have the biggest profits in them. i think this is in the end a profit-taking sell-off. i like profit-taking sell jauvgs bulls make money, hocks get slaughtered. there are 11 dow stocks that are up appreciably from this pearland to here that are really responsible for almost all the gain. american ec press, boeing, hewlett packard, johnson &

johnson, 3m and united health. fortunately, all those stocks reported something substantive it was a positive during this period. although some have run too far since posting these earnings. what do we do? here's the worst case scenario which is that this move is the most, let's say, in jeopardy, american express put up a god number. it has gone from 61 in this period to 76. this stock can easily fall back 10%. boeing has been one of the strongest stocks in the dow of late running from 75 right there, okay, to 99 now. move is deserving, boeing had a terrific corner since they fixed that tremendousmont problem. i don't think it has more than a 10% decline before buyers come in. cisco up from 20 right here to 2455. it reported iths its first good quarter in the year. teleco equipment sales i think it's headed higher not lower, that's a go-to stock.

disney, which hal rallied from 64 to 53 shaded down numbers, it has vulnerability. dupont moved a fabulous quarter. i'm saying this can pull back to 50. and still be $3 above where it was when if rally began. now, here are the real worry positions. first hewlett packard. now it's going from $16 to $24.survive the. it did report an excellent quarter in that period in terms of the balance sheet and the earning, not the sales. it's still not doing well. i think hewlett packard could easily fall $3 bucks tomorrow. the wrong football. foy home dpe poe, it rallied all the way up to 81. it came back to 87 today. housing slow in listen, that stock can go to 70. next up j & j, guess what, with rates going up, that spur is diminished. j & j pulled back to 24. it can retreat, not much more. i'm very worried about 3m.

this company reported a highly disappointing quarter, in a real sell-off, 3m has real downside, maybe down 11 bucks to 97 where it was right here when the rally began. finally, united health, i would think that unh can travel back to the $56/$57 rage not far where it was before this last leg. people don't have profits since february, so they're less at risk. believe it or not after the week-long decline, at least very few other dow stocks have 'points to give up. i'm concerned about ibm. they reported a really bad quarter. it plunged from 208 rally then fell to 187. ten rallied back to 208 and went to 203 today. this one has a disappointbling number. walmart is at issue, too. the stock started at 76. since thint got better, not worse t. stock has gotten better

the company has gotten worse, 10% in a heartbeat. mcdonald's can go swiftly to 92 since the move started. verizon worries me, at&t is pulling back to where it was if february. verizon it would give that back if things got bad. finally, microsoft got three downgrades since it started. it barely has been nikd. a move to 32 would bring out a lot of buyers at that level. j.p. morgan moved from 46 where it fwaen to 53. banks get hit hard. stock goes to 49. here's the bottom line. after calculating this move, all these are worst case, okay. do i think they will go? no, my goal is to show you if it goes wrong, these are the levels i think the market could be contained by. this is where the latest leg of the rally began so we will go back to test some of those levels, no matter what happens, no matter whether the number is too strong or too weak, unless it's perfect. yes, these rollbacks would put us down the ones i gave you 600 points. remember, we're on a much bigger basis t. dow goes to 14,360 on a

worst case, that's right. that's why i'm willing to see 3-4% down from here seems like a reasonable retreat on the wrong employment number. not much more. buyers will go back. even if interest rates go up from these levels or fears from lower profits prevail. let's go to bill in new jersey. bill. >> hey, jim, i got a question on verizon the bp is over 100, management is talking about spending $130 to buy back stocks from vodophone and is the dividend secure? >> the dividend is secure. you have to business it on cash flow not earning, because it has a gigantic cash flow. that's why the earnings are not listed. the dividends can go loe higher. it's a great company. i think it deserves to go higher than it is, that's what will happen. steve in california. steevl. >> caller: boo-yah, jim, from gorgeous california. are you outstanding. >> true force one is arguing.

>> caller: you got it. news corp, they're publishing arm based on the number of your current shares, true question, one, what happens to my current shares and, two, should i buy more prior to the 19th? >> you are going to get two companies. i really like the nonpublishing because i like if fact, look, i think they're going against espf. is going to be really difficult t. analysts will love it. they're going to say, hey, listen, buy the new nooisz news corps. that's the piece you want. i think frankly the publishing business it's just okay. all right. how do we get here? i looked down the barm of many sell-offs in my day. it's time to look back where this rally began. i gave you the worst case scenario with on the wrong number takes this down only 600 points, "mad money" will be right back. coming up, sweet stock? a surge in coffee and donut sales help krispy kreme shares rise to eight-84 highs and the company just sprinkled on a

forecast that has investors licking their chops. cramer's looking for any holes in an exclulsive with the ceo coming up. and later, balanced breakfast? from shredded wheat to cereal that's more sweet. this company is a staple of many morning routine, but as the stock's fundamentals improve, does it have all the ingredients for a takeover? don't flake out. cramer pours over the details ahead. all coming up on "mad money." [ male announcer ] i've seen incredible things.

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all coming up on "ma i spent a lot of time talking about the power of execution on this show, what great management can mean for a company's future.

it's one of those things that aren't easy to quantify, analyst prefer to put a number on. when you want to see what great execution looks like with confirmation leadership, take one look at crispy cream. it became public and was hot, spent the next two years roaring higher. by 2003, krispy kreme was $50 bucks a share. the next year, the wheels started falling off. they blamed the atkins diet at one point for turning people against donut. it became cliert expanded too rapidly, in january, 28, they appointed the chairman, a guy with extensive experience on wall street including turn-around experience. at the time the stock was trading at $2 bucks. in the years since, it has gradually come roaring back. i recommended $12 in january. add to the company's most recent quarter, i think the stock has a lot more room to run.

it has a 16% basis, stronger than expected revenue, monstrous sales growth. 11.4%. it raised goints for the full year t. company now has realistic and extremely bullish plans to expand, both domestically and more important abroad. it is growing its international locations by 2019. it's a short period and that's what we want. this is a truly fabulous turn around, don't take it from me. we have the chairman and president and ceo of crispy cream. mr. morgan. welcome to "mad money." i have a long history with krispy kreme. you got a job at my last hedge fund, at i came in at 4 in the morning. you had to bring me a dozen krispy kreme t. magic is back? how did it happen? i remember it was a season like a treasured brand.

people dream about it. one or two. then there were like 50 in new york it seemed, they were everywhere. how did you manage to scale it back and how are you managing to bring it back other way now? >> well, part of the answer is necessity is the mother of invention. we had to do some backtracking, but you know, i probably had the easiest job at the company in the turn around bahamas i inherited an extraordinary brand that's beloved world wide, a product i believe is the best in its class, a great team. we had a few holes we had to fill. we had to bring in a few people in. >> two holes donut joke. >> good pickup on your part there. we brought some strong teams in, speaking of operations and marketing. then we had to do a lot of work, jim, preparing franchisees. >> let's talk about that. these days, when they put out this note, it says lagging domestic franchise development remains our primary concern. in truth, that's up to you now. you grow them at the pace you want. not at the pace others want,

right? >> jim that, is so on target. we have been very intentional about not doing it until we were ready. we wanted to be sure three things were in place. one the frachor had a strong foundation and secondly that we had a buy some model ready to be economically successful and third did the current franchisees we owe so much were thriving. they had 11% sales gain last quarter. things are in place. we are looking forward to growing domestically over the next months and years. >> my friend said i don't understand in the conference call they talked about how they won't be able to duplicate this number. you talked about in the first three weeks of may, things are good. is it possible you are a conservative guy. >> that's probably a small part of that. i think the truth is we are going against much more difficult comparisons. so i think we are pretty much on record. we'd be pleased. we think we can achieve same store growth of 7% and combined with that 11 plus first quarter

we'd be thrilled. >> people have to recognize you have to look at it year over year, that's what's important. you guys are talkingant different day parts for donut, not a morning thing. >> create additional case we did a big research project. what came back, they said don't be a hurry to roll out that menu, right now people are saying give us more reasons to come at different times ought day, by comboing that with a big beverage push, you are exactly right. we are trying to bring people in four different times of the day, four different donuts of different types. >> you are serving lattes. is that working for you? >> actually the specialty coffee has been a big hit. we introduced our coffee products a year-and-a-half ago, more recently, it seems to fit well. >> all right. now, overseas, does the brand have some sort of bizarre resonance we might not know for america. because the footballs you wanted, the number of stores you want to add are similar to what

when howard schultz came back starbucks did. >> it is even as a person working there now, i am just amazed at what happens when we open up new and in a foreign country. the most recent one i mentioned in scotland. we finally got into scotland in edinborough. they had traffic jam, front page pictures in headlines because we were the only store in scotland. that will change a bit as we open up more stores. the brand has an attraction world wide that quite frankly our brand is so much bigger than our company. >> now, let's take this store opening, the trajectory is when you first open, you might have 64,000, then you go down. it does tail off. three weeks later in scotland, was it still something that was doing as well as the first week in three months later, was it doing as well in the first month? >> that's a great question. some people need to understand about krispy kreme, the opening fervor lasts longer than

domestically. we will have it last income japan it lasted in some stores two or three years before it started to dwindle. the same reason our international same store sales don't look as good. the average per stores still look great. >> the last question i want to ask is fill sockal. we spent time talking about whole foods, to have you looking good, feeling good. i love these, candidly i will treat myself to one after i've done maybe a two-and-a-half hour workout, i might have one of these or a half of them. how is this in seempg sync with where the country and the world is supposed to be going. >> we think about that. we recognize krispy kreme is a treat. we see it as an affordable indulgence, with the lifestyle and done in moderation. this might surprise you a bit. i think that's physical health and there is also emotional health and we think it's a great product for people's emotional health. >> do you sense that from the

social media? are you a huge social media pro point. >> they tell us the emotional attachment to the brand and the product is every bit as great as the physical attachment. >> you have done an amazing job. it's a fantastic transformation. we were rooting for you. we felt you did come in it did look desperate, jim. >> we all appreciate that. i have had more fun than any one person could have on the earth. if i had known how much fun it was going to be, i would have had them get them hire me years ago. >> guy, you know i like duncan donut, i like those stories. this one maybe has the most growth from the potential right now more than all those other stocks. "mad money" is back after the break. coming up, balanced reckless? from shredded wheat to cereal that's more sweet. this company is a staple of many morning are you teens. but as the stock's fundamentals improve, does it have all the

ingredients for a takeover? don't flake out. cramer pours over the details ahead. and later, greased lightning. are you 93able energy group takes her table scraps and turns them into gas at the tank. could its newly vintage stock give you long return foss tr long haul? don't miss cramer's exclusive, all coming up on "mad money." tomorrow the jobs report, april's numbers sparked a rally. will the trend continue? be here when it is released t. jobs report on "squawk box" tomorrow at 8:30 eastern on cnbc. oh, he's a fighter alright.

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>> the market seems to get hammered by the day even as the averages rebounded this afternoon. where do you go in order to pick them among the rubble? what kind of stocks does it seem to bet on in an environment that seems to be getting worse, frankly. simple, you want a decent fundamentals down in price from their highs because of the nasty sell-off we are going through. one of the biggest complaints the companies missed tear window to make their acquisitions. we had a roaring bull market. for a while it seemed to make sense to boy companies. then they became too expensive to acquire. now the mark has been hit and hit hard, a whole number of companies have become affordable. if any of the stocks catch a bid, you know they will soar. let me tell you about a company that i think is just begging to be taken over. i'm referring to post holdings. yes, the breakfast cereal company that makes everything from honey bunchs to, well, take

a look, shredded wheat, pebbles, waffle crisp, grape nuts, raisin brand. mm. anyway, compared to most package food, post is a climate. they get caught in your throat a little with a market capitalization of roughly $1.4 billion. you want to wrap your head around it? you need the history. post was never intended to stand on its own. it was a division of old kravlt. back oo kraft. in 2008, including lots of knockoff cereals, however the post-acquisition didn't make a tonne of sense. it did a poor job of averaging the national brand cereal business. they make a smart move, break itself up by spinning off post holdings as a separate company.

don't debt me wrong, post has done very well with a focus on improving margins, jen rakt lots of cash flow. one of my long-term execs in the world. by the way the deal king of the consumer package, good sector. i think he has one more deal in him. lately, costs have been rising latelyment they still have to do deals with the surms supermarkets. i recommended roughly 16 months ago, since then they have given us a gain t. spinoff allowed them to get from conagra. they will prefer a simple pure play over a complicated mish mash of different businesses. that's why i think post is a great takeover target. i think the company is too small to remain independent in the cut throat world of the cereal business. this guy is really the latter. we know that post has done a great deal to get its house in order.

even so, some of the company's key brands have been in trouble. for example, post reported on may 13th. the company did miss numbers. partly because of a 4% decline in averages. meanwhile, honey bunch es of oat, one of the key brands was down 9% in the channel. post was trading $27 before the quarter was reported. they've come down to 42, the keystone brand, i know you want me to pull this out. watch. ha, yes. this decline was kind of pretty rapidly. i think this move lower is going to be what it takes for suter to come in swooping, acquire the company for other than less than it would. the window is here. haertside foosd makes organic food and granolas. that's what consumers are craving these days. it's not that i believe post makes sense, i think we are starting to see more

consolidation in the food base. for a period we didn't see it. will make acquisition a lot more likely t. last big wave of mergers and acquisitions happened more than a decade ago when we saw numerous large scale transactions. unilever was snang up kraft foods, general mills devouring pillsbury. among other, since then, most of the players in this industry have basically been untouched. it's kind of done, until now. things have begun to change. we see a number of breakups and spin-offs that have created more companies, alternatively to make focus acquisitions itself. sara lee, we liked that one. kraft broke up into smacks and a few kraft food group for everything else. meanwhile, more and more deals happening in the packaged food space. conagra's world corps, berkshire hathaway said it was taking over

heinz, hormel, bought a company. sara lee's spin-off, that's what will happen here with post. look, a week and a half ago, we learned that smithfield foods were bought by the chinese, 31% premier. i think these dreels just beginning. post is next. who would buy this company? as stupid as it sounds, i think the former other than could be kraft. listen, i know it's a ridiculous question, the old kraft sold it five years ago the new is different. it's a different company from the one that sold off post. it's a company that's much morphocussed open the u.s. grocery business. we know they are looking for acquisitions with cash flow to take over more aisles in the supermarket. post fits the bill. then there is this new heinz at berkshire hathaway the heinz ceo said if the goal of the deal is to make his business into a

kwoerkt -- yoet, quote, bigger food brand. this is one i think is the most likely, pinnacle foods, one of my new favorites, a stock my charitable trust owns. it's a recent ipo. it specializes if revitalizing older brands like alabama, who is older than raisin bran? duncan hines. post is like really old. pin cam has stated it wants to grow its shelf space, which post would like let them to do instavently. i think this deal makes a tonne of sense. as a matter of fact, i know they're a close viewer on the show. just go do the deal. how much would post be valued? we get 3.1 billion inten

enterprise $63 a share. let's go more conservative. based on what conagra paid, $50 a share. here's the bottom lean. in a bull market, you can still make money on takeovers, which is why i'm recommending post holdings for takeover speculation right here right now. thanks to the terrific management. the acquisition is a real possibility for this tiny cereal name n. one fell swoop it would send post soork. let's take some calls. michael in connecticut. >> caller: hey, jim, love the show. my stock is bnny. should i hold? >> i got to tell you, annie's a rollup by stern agy of fresh mark and whole foods that emphasizing how importantt this cohort is, i'm going to say annie's is god. buy, buy, buy.

>> because they, too, are taking shelf space. they have a great organic level. funny, donuts work, tasty cereals like this works. food works. let's go to maryland in texas. >> caller: boo-yah from johnny footballing agyland texas. >> well, we'ring agys. none of this, you know this stuff. don't hook 'em. you know. >> caller: i know you are a hook 'em. how are you, i'm anning agy. jim, a few years ago, you were talking about cheesecake factory and i went ahead and bought some of that and it's been doing really good. it's judge, going down and actually today, in fact, it went up. what do you think about getting rid of it or buying some more? >> no, that is a very well company. it's at a high. listen, so my trainer comes to me, he goes, you know what, cheesecake factory has a new diet menu. anyway, yep, but that's the joke. cheesecake is a really well

managed company, a dollar off its high, i want you to stay in it. johnny football, what can i say? he's an exciting guys, always welcome on the show. don't cry over spilled milk in the market. instead, look for companies to give cereal profits. i think post goes higher. stay with cramer. ♪ [ engine revs ] ♪ [ male announcer ] just when you thought you had experienced performance, a new ride comes along and changes everything. ♪ the 2013 lexus gs, with a dynamically tuned suspension and adjustable drive modes. because the ultimate expression of power is control.

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[ female announcer ] if you can't afford your medication, astrazeneca may be able to help. it is time, it is time for the lightning round? i tell you whether to buy, buy, buy, or sell, sell, sell, when you hear this sound the lightning round is over. are you ready, skeedaddy. it's time for the lightning round. why don't we start with mark in arizona, mark! >> caller: boo-yah, jim cramer. >> well, how are you dog boo-yah kids? >> caller: mr. cramer this is mark, natalie and evan in the grand canyon state of arizona. we appreciate everything you do for our family and it's like macy's drew a sale yesterday. we pulled out the shopping list and bought allstate, all.

>> i like that very much. a 10% missouri i like that. you got a good one. don't forget, everybody, june 13th is the family affair just like we got from mark. have your kids on. it's fabulous. we get all kind coming on this show. let's go to lorna in new york. >> caller: hi, jim. my stock is alny. >> we like that. that's a special pharma. they do a special speculative buy after what regeneron did today, you have to like that stock. we will stick by it. let's go to paul in washington. paul. >> caller: hello, jim, from brain, washington. how are you doing? >> all right. how are you? >> caller: good. my stock is calumed, until it started reversing, it was going down three month, a meg ratio .5 and a gray great dividend, what do you think? >> i will say okay.

i seen similar stocks, a bait. yesterday i think they went up a little. today they can beat past that. i think you will be fine, not my favorite in the group. i think you will be fine. don in new york. >> caller: carl i am a tremendous fan of yours and we have something very much in common. i was jackie wilson's road panger. when you play "higher and higher," it brings tears to my eye, no kidding. >> i had friend at the latin casino that night, sir. >> caller: jimmy, i'm making a couple commentsant this company and i'm asking your opinion. microon technology. >> they make class and d-ramps, both of those two lines are actually going up in price. usually the average selling price is going down, that's why micron is a buy, buy, buy. tom in illinois. >> caller: jim, first time caller, long-time listener.

>> great. what's up? >> caller: i am without waiting for vis sars, you said wait for a pullback. is it railroad to buy? >> you know, i would use a deep in the money call strategy, i would actually buy some visa, if we have a bad number tomorrow the stock drops, i want you to buy some. it is a great company. i like it more than mastercard so we know in terms of the pecking order. ray in ail notice. >> caller: jim, we never miss your show. >> thank you. >> caller: a few weeks ago we heard from titon. >> holy cow, i will go with him, not against him. he's got the tire business. i have to tell you that, is a cyclical billions. you are boy tag stock at a rock bottom valuation, which is why i would endorse it. it is inexpensive. ladies and gentlemen, is the conclusion of the lightning round. [ indistinct shouting ]

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it's time to talk about how to speculate wisely. what do you do with a little stock you probably never heard of that has more than doubled since the 1st of the year. symbol rgei, a quarter million dollar company the largest maker of biodiesel, many have not heard about it until recently. it's made from vegetable oil of animal fat t. reason they have been worried is in a way biodecember sell a lot like ethanol, but i guess it falls into the renewable fuels program. every 84 they require them to blend a greater and greater volume where the traditional diesel fuel t. refining industry has no choice. that's a reason why they are rallying. the other factor is the traditional diesel tends to sell at $4.50 a gallon. it's may from soy, which is expensive. it relies 80% on agricultural link there is grease products like the gross stuff used from

the fires in mcdonald's. it's a heck of a lot cheaper and doesn't drive up the market from your food. rgi had a major share holder file 3 million shares. be careful, there is a bit of an overhang, once it trades, it will be a speculative play. we want to talk to the ceo to learn more about its company. it's a complicated company and its prospects. mr. o, welcome to "mad money," thank you for coming. >> jim, thanks for having us here. >> we talk about natural gas being a great service fuel, it's independent, make it so we would be able to have cleaner skies, all good. yours could do the same for truck, too. >> it already does, actually has for many, many years. it's a part of the diesel complex and is growing right now. we are about 2% of the overall distill lat pool. >> your feed stock is different from traditional biodiesel and different from ethanol in that it's much less costly than what

they are doing, it doesn't make it so our chicken and meat are more expensive. >> what we've done is built a business that's fully integrated. we are sold in 39 out of 50 states last 84 plus canada and our facilities especially our refineries and our procurement and logistics system work hand-in-hand so we can say really crude raw material, clean it up, run it through our refineries, make a very high quality diesel fuel. >> this stuff would be thrown out a lot of it? it's all waste, waste to energy? >> the raw materials with euse are co-products. they come out of the oil and fat complex. when we take that raw material and pay a higher price, we make it far more likely that food and carbohydrates and protein are going to be produced. >> now, when i talked to people about the company the stock has been a rocketship. they point out that biodiesel government incentives were still a bis big part of your profits

that ended 2013, not subsdy, incentive itself, so to speak. what happens senator koerk, a smart guy, seems to be trying to change the economics of this industry? what happens if washington goes with corker and makes it so tease refineries don't have to use your hub? >> we operate under a policy called reif youable fuel standard 2. rfs 2 is the shorthand. i like i. i'm as tough as a catalyst you will find out there. i am dedicated. our company is dedicated to make a tough, lean, competitive business. in the long run, we have to assume as our industry grows and the complex around us grows that those incentives will go away. >> it's not the solar industry i'm speaking to, they know there is no business. >> our business existed long before any of the incentives that are here. we started in known 96. now, they're very important. they help build a very important complex and in terms of energy security, food

security,orevitalization, agricultural reenforcement. this is a very well regarded industry and it's supported by many, many sides. >> okay. you missed some competitors who are substantially larger than you, including archer daniel, but they're not, they're larger as a company they're larger but they have mot moved into this. what if they decide, you know what, we ought to be in this industry? it is a lucrative industry. >> well thatry in this industry and world wide they are substantial in vegetable conversion. they look at it than a different way than we do, for the most part. they're in the business of crushing seeds. they're creating oatmeal. they will send it to edible or fuel. we're in a different place where we're taking those co-products, that's our main raw material. so we got to have a widespread opportunity. >> last thing, your motto, food security, food then fuel. explain that to people. it's something i believe in strongly.

>> it is fundamental to one of the reasons why you will see the industry around for a very long time because as much as energy security is focused on, food security is driven by us, too. so when we take those co-products that are small value, livestock, grain or a bush el or something and we may a much higher price than in the past, which was low value. now we are putting an energy value on it. we make it far more likely that food will be produced at all, we're at a god price. >> that's very meaningful for all of us. we didn't foe you guys are around. now we do. that's the president and ceo of renewable energy group. remember speculative stock. do the research. it's a very valuable interesting company and it is for real. "mad money" is back after the break. announcer: where can an investor

be a name and not a number? scottrade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade.

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to talk with an insurance expert about everything that comes standard with our base auto policy. and if you switch, you could save up to $423. liberty mutual insurance -- responsibility. what's your policy? >> oh, what makes someone like me skiddish about the stockmarket? first i am a sector guy, the employment number we get tomorrow is important. i don't care that much about the charts, but i respect what the charts are saying, we go off the charts. at the end of the day i respect what companies are telling us. i try to form a world view, not politicians or world chartests tell me, that way i have more conviction in my feelings. i say that being confident in your choice is more important than how you make those choices, see, chartists look at a

pictograph. i prefer the conference calls the earnings reports and the research. lavths i haven't liked what i have been hearing of late. last night, four retailers were plane out disappointing. now, i haven't been a fan of vera bradley. i didn't like the fashion aspect the hit or miss element of the business. the handbag line, a big one. vera bradley talked about merchandise challenges, which in my bid don't happen if you have a smart bid. they talked about a weak spring for their apparel and accessori accessories, ascena, i didn't think it would this bad. dress barn is down. you put these three together, you got a gloomy picture of what is out there with many shapes

and sizes people spending less. you couple that with dollar general, you get a sense may was a bakke month. the huge interest rates are on a percentage basis is happening at just the wrong time. plus all the jabbering fed head guys. you can buy higher rates for less business. it wasn't all bad him we had a hard goods retailer cons report god numbers. they sell home furnishings, appliances, they were up today. normally, it would be important to the offset vera bradley and ascena, conn's trend is in a grain of salt. when i put it together, i come back with a best, a mixed retail picture at a time i expected an improven one, frankly. now mortgage rates have gone over 4%. is it the end of the world? no, no, no, do these numbers embolden me to think the correction is over? not really. that's what gives me less

confidence to say things will improve for our stock, even though they have come down to emboelden me for my charitable trusts to start picking among some of the rubble. stay with cramer. my interview with mitt romney tonight. you don't want to miss it. t.j. rodgers, ceo of cypress semi conductor is my head host. all that up next on "kudlow." .

>> i hope to sigh you guys at the monster conference on saturday. i like to stay there is always a bull market somewhere. i promise to find it just for you right here on "mad money." i'm jim cramer and i will see you tomorrow [ music playing ] an unprecedented government violation of privacy? a police stay or a necessary step to keep us safe from terrorists? it turns out the u.s. government has a vast database of phone calls on millions of customers. we are going to debate both sides of this hot button issue. chris christie makes his pick for interim u.s. senator. some republicans and conservatives are furious that the appointed senator won't even be allowed to run for the senate. plus, stamford economist will brief us on tomorrow's crucial jobs report. what should we really be looking at? how will it affect the markets? and we haven't seen him much since the election.