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 make you a little money. my job is not just to entertain you but to educate you so call me at 1-800-743-cnbc. it's the competition, stupid. the companies doing the best this earnings season are the ones that have the least competition. the companies that are doing the worst, it's where the

competition is cutthroat. and today we let the economy play out once again as we have pretty much every day since this earnings period began. dow gained 22 points, s&p backsliding .19%. nasdaq declining. there's a debate going on oddly which i'm in the center stage of of how anemic business in this country this quarter. the press, notably the "wall street journal," is trying to make a case that business after all this quantitative easing, all this help from the federal reserve, is still depressed. i don't know. i see it another way. many companies are doing extraordinarily well, particularly the big multinational companies and the banks, the ones that don't have much competition. in fact, there's the fulcrum issue. if there isn't a lot of competition, the stock has been soaring! if there is, then the story's been pretty so-so. if it's that simple, why doesn't everybody see it my way? first, they aren't looking at the same thing i am. i'm gauging the results of stock prices.

i'm measuring what the market has to say about the earnings. in the end i'm innately a capitalist. my mission is to help you make money. that's my prism. what's not my prism? hiring. i'm not focused on hiring because guess what -- i'm not a politician. i don't work at the fed. frankly, it's worse now. i don't want to sound like a cutthroat capitalist here, but the companies that are doing the best are the ones who are making money with fewer people than they used to. when revenues aren't totally robust you need bottom line growth. it's pretty easy to figure out how to get there. you lay off people and you get machines to replace them. or you just make the other people work harder. that's how it's done. do i want that to happen? am i some kind of sadist who gets kicks out of layoffs? no, of course not. but then again, from the perspective of an investor, well, that's the perspective of the show, it doesn't matter. my job is to figure out how companies are doing and because competition is slack in many industries the fact remains you're getting some really good numbers from a lot of different places. let me show you what i mean using just today.

so united technologies led the dow and it put up spectacular numbers. why? because it makes aircraft components and aerospace is in total bull market mode. there simply aren't enough parts out there to meet the demand from the big aerospace companies, so united technologies is able to raise prices on its products and have bigger margins because the raw costs for its materials are going in the right direction. talk about a virtuous circle. but what wasn't working today in the dow? what was the worst? travelers. the fabulous insurance company. this one's a textbook case of the perils of competition. the stock was soaring all morning after that great number was reported until our own mary thompson broke in on "squawk on the street" and said hold it, travelers needs to compete on price to get business, particularly car insurance. >> the house of pain. >> talk about what i don't want to hear. competition is the bane of profits. i like bountiful oligopolies

like the airlines, the rental car companies, and of course the rails! >> all aboard. >> i like beautiful duopolies like airbus and boeing. but cutthroat competition to get business. are you kidding? no, thank you. you can use this prism to analyze all the big capitalization stocks that have reported so far. honeywell and general electric have backed away from really competitive markets and again, they're doing a ton of business in aerospace. the oil and gas business seeing little competition on price. oil service king schlumberger had an amazing quarter. they have higher revenues and higher margins because they have so little competition. gross margins are going up. in fact, some of these big dogs have really killed off the little guy competition. both companies have sizable defense businesses while defense orders in the future may be slowing, there's very little competition for these contracts. hey, we know that from lockheed martin, which reported a marvelous number, and it has a stock that simply won't quit. or northrup grumman like we promoted last night on "off the charts." going higher. the defense names are the strongest stocks in this market this year. sequester?

no competition. how about the railroads like csx and union pacific? monster good numbers. the rails, they don't compete. they raise prices routinely when contracts roll over. that is a fantastic business. let's talk health care. united health groups dazzled the dow. why? because these health maintenance companies have to -- well, to look -- i think they stopped competing on price. it's like they carved up the whole country. johnson & johnson posted terrific numbers. patent protection made that possible. no competition. but do you know who has the least competitive marketplace versus the old days? wow, is this a change. and it happened because some companies took advantage of the great recession. i'm talking about the banks. outfits like jpmorgan and wells fargo are tallying incredible earnings because the competition in banking has diminished so radically. no bank has more than 10% market share but because of the financial crisis that was thrown out of the window. the wells fargo and jpmorgans, they bought a lot of banks and

wells fargo has 30% of the mortgage market. i mean, that's phenomenal. no more cutthroat competition. banking is no longer a dog eat dog world. and you want to know who's simply not competing on price at all? the mortgage insurers. today mgic, one of the biggest, down in profit. to me that means you need to keep buying radian and genworth, my favorite specs for 2013, the two companies doing the best in business because mortgage insurance has become a slap-happy oligopoly. now let's take a look at the supermarkets for some of the big disappointments. there are some really incredible things here. alcoa kicked off earnings season with a dud. is anything more competitive than aluminum? not that i know of. they're constantly cutting prices in that business other than when goldman sachs is tacking a little or at least what the press says. coca-cola reported disappointing numbers. i think that's because few markets are more competitive than the drink market. there are constant price wars. if you've gone to the supermarket, a lot of these hotshot analysts probably never go to the supermarket. i go to the supermarket. i mean, like soda, geez, they give that stuff away. as competitive as drinks are, how about fast food?

oh, my. did you see that wendy's pretzel burger today? the darn thing's beloved. that could give any burger joint a run for its money including mcdonald's. fast food's competing on price at the same time commodities are going higher and that's a nightmare. no wonder mcdonald's missed. sure if i'm a customer i want a value meal but if i'm a shareholder i want chipotle's margins. panera and domino's which we'll hear from tonight, they did seem to succumb to intense competition this quarter. tech is filled with price wars. microsoft's surface is getting its butt kicked by the competition. intel, the personal computer market newly reinvigorated amd will come underneath them. worries about the internet drove google's earnings below what the street was looking for. then there's apple where everyone has gotten so used to the way competition has squeezed its business and its margins that the company reported better than expected revenue tonight with the earnings and revenue coming in above the analysts were looking for causing the stock to roar in after hours traders. but make no mistake about it,

this quarter is a testament to the power of lowered expectations. yes. you see, including estimates that were slashed this very week that we're in retrospect wrong to do as apple is simply making a lot less money than it was a year ago. yahoo. it finally went up. how important is it that companies avoid competition wherever it can be found? look no further than what fell off my desk. look no further than -- oh. alas, poor yorick. look no further than dupont, which today announced a gigantic restructuring. huge. what's happened here? ceo alan coleman wants to get out of the biggest commodity business, the one that produces the quintessential commodity tio2, or titanium dioxide, which is a whitener, something made all over the world. to emphasize du pont's businesses they're about proprietary science, and yes, enzymes. seeds, foods, and safety. it's a brilliant strategy, and it has moved the stock up far

beyond where it would be if there were still a world where it competed on price. so here's the bottom line. you want to know who's doing well this earnings period? just look at where there's little or no competition. and when there is competition, the market's saying i'll take a pass. that, not anything the fed is doing or how much higher it's -- whatever the journal is talking about as defining earnings season. when you're about to buy something, think first. is the company in question going at it hammer and tongs and tooth and nail with the other players? if yes i say take a rain check. there could be much better parties elsewhere. why don't we start with andrew in pennsylvania? andrew! >> caller: boo-yah, jim. this is andrew from pennsylvania. >> yo, andrew, how are you doing? you're from the west coast? west part of pennsylvania? doing well? or east part and just getting crushed like me? >> caller: east part. just getting crushed. >> sorry to hear that. >> caller: well, but jim, i do agree that geno's is better than pat's. but is mastercard better than

visa after its price target was increased and it was affirmed as a buy? >> i have to tell you, mastercard had been more controversial. i like both these stocks. i know one of the things that happens is a lot of times they get hit right after they report. but that has been a buying opportunity literally from the day they came public. and i bet you it's going to be that again. so even though we're hard-suffering phillies fans and geno's eaters, let's wait for the quarters and then do some buying. chris in minnesota. chris! >> caller: hello from the land of ten thousand boo-yahs. >> well, hey. i'll give you a land from supplements, too. what's up there? >> caller: peabody energy. they beat the earnings estimates, reduced costs and they're rallying as of late. do i keep this lump of coal in my stocking? >> i think that every dog has its day and i think that peabody can go a little bit higher. now, the old super cycle of commodities didn't pan out. but i do think coal has been oversold. i want to listen to norfolk southern tonight, though, because coal is norfolk southern

and vice versa and they will tell me more. dog eat dog? well, this market's a kitten. it just doesn't want anything to do with competition this earnings season. look where there's no competition, and then pull the trigger. "mad money" will be right back. >> coming up, wireless war. after a recent run, shares of sprint have stumbled, falling 15% in the last month alone. but after clearing a few hurdles, is it ready to get back up again? cramer's mobile match-up is next. and later, meal ticket? domino's pizza has been increasing its slice of the pie. but after reporting earnings, the stock appears to be cooling off. can you count on the company to deliver more, or is hanging on here just pigging out? stick around for cramer's exclusive. plus, service with a smile. timeless toolmaker snap-on made reporting an earnings beat look like, well, a snap. but can its continued push into

new markets cause its shares to find another gear, or will the stock break down? cramer has the exclusive just ahead. all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com, or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. diarrhea, gas, bloating? constipation, yes! one phillips' colon health probiotic cap each day helps defend against these digestive issues... with three strains of good bacteria. [ phillips' lady ] live the regular life. phillips'. has oats that can help lower cholesterol? and it tastes good? sure does!

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all right. what the heck are we supposed to do with this spring? >> sell, sell -- buy, buy -- >> last year the single best performing on the s&p 500, rallying 180%. thanks to a terrific turnaround followed by a fabulous takeover bid from softbank, the japanese tech titan. but the sprint nextel, the specter of the stock to be good, it made us a fortune, no longer exists.

now we have a new sprint. two weeks ago sprint closed on its acquisition of clearwire, giving the company complete control of a massive amount of wireless spectrum, which is the coveted commodity in this business. and then on july 10th the soft bank deal closed. soft bank paid $21.6 billion for a 78% stake in sprint soft bank. and soft bank gets control of the company. sprint gets a ton of cash to help pay for its big 4g infrastructure rollout. remember, that's what happens right now. you have to have 4g across the country. and sprint shareholders got $5.50 per share, plus 26 shares of the new sprint that we see traded for every 100 shares of the old sprint that they owned. however, something else happened when the soft bank deal closed. the new sprint became controversial. as a matter of fact, this stock is now a total battleground! on july 11th, the day after soft bank bought most of the company, citigroup came out and

downgraded the stock -- >> sell sell sell! >> from buy to neutral. at the same time deutsche bank reinstated its coverage of sprint with a buy. then a week ago on the 15th bank of america reinstated coverage with an underperform. a day later ubs raises the price target on sprint from 6 to 7. >> buy buy buy! >> holy cow. this isn't just your typical analyst duel. it's a wall street shootout. this stock is the equivalent of the gun fight at the ok corral! so who's right? who's wrong? first let's give the bears their due. sprint reports a week from today, july 30th, and pretty much everyone thinks the earnings will be a disaster. the reason? sprint is still in the process of building out its next generation ultra high-speed 4g lte wireless network. there's a mouthful. it will be 3 to 12 months before they can roll out a competitive product nationwide that can fend off att and verizon. beyond that sprint always had a lot of moving parts and now you've got even more. so it's possible the real quarter, it could be a mess. >> the house of pain.

>> but like i said, nobody expects this quarter to be good. and i think if sprint gets banged down on lousy-looking earnings, that could be a fabulous opportunity to -- >> buy buy buy! >> and yes, i do think that sprint is a buy. it might just be the best long-term investment opportunity in the whole wireless industry right now. you just have to be patient enough to let the story play out. why don't we be bullish analysts and be right about sprint? let's think this through. before soft bank came along and injected the company with boatloads of cash sprint was already doing pretty darn good. bang-up job of turning itself around under the top-notch leadership of ceo dan hesse. the old sprint was aggressively winding down the legacy of nextel business while convincing nextel customers to migrate to sprint's core network, also cleaning up its -- by the way, that migration push, hesse did a great job with that. with the new sprint hesse's still at the helm although he reports to some incredibly smart people at soft bank now. more important right now,

there's nothing more important to the wireless industry right now than electromagnetic spectrum. that's why at&t offered to buy leap wireless for an almost absurdly huge 88% premium. everybody in this space needs spectrum if they want to offer high-speed service with lots of bandwidth to more customers, think netflix, because they're squeezing all the bandwidth they can out of their existing spectrum. guess what -- with its clearwire acquisition sprint has 200 megahertz of spectrum, double of at&t. more available for its 4g lte network than all of their national competitors combined and sprint's spectrum is also better quality than the competition's. so once sprint finishes its 4g buildout the company's going to have a decisive edge over the competition given that at&t or verizon has half as much spectrum to service twice as many customers. and by the way, those are both good companies, but i've got to tell you, spectrum is what counts. the bullish analysts at deutsche bank believes sprint can grow earnings before interest, taxes appreciation and amortization, that's ebitda at a 25% annual clip and that's a conservative estimate that only includes the

cost savings from the wind down of the old nextel network and a modest increase in wireless service revenue. right now sprint has the lowest margins in the industry thanks to the costs associated with running that parallel network for the nextel legacy customers. but as the company finally finishes shutting down nextel -- ♪ hallelujah their earnings before interest taxes depreciation amortization, ebitda margin could easily rise from 17.2% this year to nearly 30% by 2016. >> the house of pleasure. >> and we're just talking about cleaning up the old sprint here. if you factor in the synergies from the soft bank merger that both companies elaborated upon then sprint's ebitda could grow at a 40% compound annual clip to next year's, by far the fastest growth in the industry, and this is an industry where you buy the fastest-growing players. now, the bears will tell you that sprint is facing a ton of near-term turbulence. the company indeed needs to integrate clearwire, which could be messy, messy indeed. but long term i think it's definitively a positive given the value of its spectrum.

what else? sprint's probably going to lose something like 850,000 subscribers when they report the second quarter results next week. oh, that's going to be so ugly. people are going to really drill down on that. i'm not thrilled about shrinking subscribers, but the reason these particular subscribers are disappearing is because sprint is shutting down its iden network, which is part of the old nextel. nextel was just horrendous. remember, we want sprint to unwind all this parallel nextel nonsense and if losing these subscribers is the price they have to pay to get their cost structure under control, then so be it. you'll also hear worries about a resurgent t mobile which now carries apple's iphone. i say ah, the iphone isn't that much of a game changer anymore. and once sprint gets their lte network up and running nationally, all the chatter will be about a resurgent sprint! plus for years now sprint has focused on converting nextel customers to sprint customers and the company's regular cdma wireless network because it was cheaper and easier than going after new subscribers. but starting in the second half of this year, that phase, it's over. and sprint is now focused on bringing in new subscribers from wherever they can get them. in other words, sprint only just now, only just now is really

aggressively starting to try to compete with the rest of the industry for customers. unleash dan hesse! last but not least, there's the chatter about the funding gap. sprint's expected to shell out something like $8 billion in capital expenditures in 2013-2014 followed by another 6 billion in 2015-2016. the critics say that means sprint is going to have a massive funding gap. i say come on. this is the entire reason they agreed to be bought by soft bank to begin with. somebody cleaned up their balance sheet, gave them access to softbank's healthier balance sheet so they can borrow. sprint needs money to fund its capital expenditures, believe me the banks will throw the money at them as will the high-yielding debt players. that's fine as long as they can manage the interest payments and i think we know they can. so here is the bottom line. i think the new sprint is worth owning long-term here, and especially if you can buy into the weakness like the weakness we saw today where the stock fell 1% and the weakness i expect when you actually see the print the next quarter. sprint reports in a week. so i would buy a little before the quarter and then really load up if the stock gets dinged off

of earnings. yeah. sprint too. it's back. it could be bigger than ever. let's go to trevor in texas, please. trevor! >> reporter: mr. cramer, big texas boo-yah to you. >> well, i'm liking that texas boo-yah. what's going on? >> caller: just want to say thank you for everything that you do. i'm a 19-year-old investor, going off to college. ahead of the curve because of your knowledge. >> there you go. i thought 19-year-olds cut cords, don't watch tv, don't care about it. here you are, i've got a living, breathing 19-year-old talking about the stock market. it does happen. how can i help? >> caller: i want to ask you about cisco. the stock has risen 5% in the last three months but i'm more interested in their announcement to buy source fire. is this going to make them a major player in cyber security? >> they already are. it now gives them a huge market share. everybody knows, as my friend and colleague buddy pal david faber said, you've got to be one step ahead of the bad guys when it comes to cyber security. cisco's going to have the best suite of cyber security. it's a great use of their cash. i think better than just standing there buying back their stock. it makes me want to like cisco even more for my charitable

trust. and there you go. how about chad? we hardly ever go here. in hawaii. chad! >> caller: boo-yah, jim! >> mahalo boo-yah. >> caller: thank you for everything you do for us. i love your books, by the way, "real money." >> you're terrific. thank you very much. >> caller: thank you. my question today is regarding t-mobile. with them doing new things and changing their approach as a wireless carrier, i'm wondering, jim, what's your take on the stock? >> i like the stock. i like the management. i like the stock. i don't like it as much as sprint. i like verizon, by the way. but i've got to say i like it. i like this group all of a sudden. i did a lot of work on tmus. and i think it's entirely possible that charlie ergan, that's right, dish, buys tmus. i would never recommend it if i didn't feel the fundamentals were also fine. it's not a sprint, people. it's a marathon. i agree, which is why i think

sprint, run by the terrific dan hesse, always invited on the show, by the way, is ready for the long-term marathon. i want to buy it if this stock gets hit when they report next week. after the break i'm going to try to make you even more money. >> coming up, meal ticket? domino's pizza has been increasing its slice of the pie. but after reporting earnings, the stock appears of to be cooling off. can you count on the company to deliver more, or is hanging on here just pigging out? stick around for cramer's exclusive. [ male announcer ] i've seen incredible things.

otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪ when you have a turbo charged stock that has doubled over the last 12 months, you cannot afford to stumble even slightly. that's what happened to cramer fave domino's pizza today when it reported a quarter that was seen as basically in line. nothing to write home about. and the stock got poleaxed falling $4.16 or 6.57%. i think this week this could be a buying opportunity. remember domino's one of the

premier international growth stories out there with a brilliant understanding of global technology. more than 70 countries and the company's adding 500 new international restaurants a year. plus domino's is still eons away from saturating even the largest overseas markets. and honestly while the quarter wasn't a blowout like many had hoped for, domino's did beat the street's earnings estimates by a penny off a 56-cent basis. its revenues did come in higher than anticipated. the company did produce some excellent same-store sales numbers, a 6.7% increase domestically, but believe me panera after the bell would love to have that, and a 5.8% increase internationally that exceeded all expectations. the one piece here was the company's operating margins came in at 17.9% when people were looking for 18%. nitpicking to me. let's remember, even after today's trashing domino's has rallied 12% since we last spoke to the ceo april 30th and it's given you a 530% return since i first got behind it january of 2010 when the stuff still tasted like cardboard. that's a joke. for years this stock has been a terrific buy on weakness. let's check in with patrick doyle, the president and ceo of

domino's pizza, to hear more about the quarter and where the company is headed. mr. doyle, welcome back to "mad money." >> hey, jim, how are you? >> patrick, i've got to till, i'm going to be really honest. i am an observer of everything you say. and i thought on this conference call i'm going to say it, you came off as subdued about the industry. maybe not domino's, but about the industry. and i kind of without saying that, you know, you do something you that didn't do in the conference call, i don't think you meant to sound that way. >> well, i mean, look, our business is doing great. i mean, you just said the numbers. i mean, up 6, 7 domestically. up almost 6 in the international business. store growth continues strongly internationally. earnings per share are up 21%. you know, and the answer is the category i think is flattish to up a little bit. that's the reality. i think our growth has been coming as it has been coming for the past year, mostly through taking market share.

and you know, we're excited about where we are. we're excited about how the brand is performing. the comps were driven this quarter really by the brand, not by specific new product news, which is great news. that means that customers are happy, they're coming back, we're driving frequency. so overall, we are very happy with the quarter. and i think to your point on kind of subdued around the category, i think that's probably correct. i think there are still more headwinds than tailwinds in the category. >> but shouldn't we just be -- look, i'm being apologist for you and it's your company. but i'm looking at this is an international story and i think that your -- that this whole subdued part is about the united states. by if i just looked at the united states i would have missed the last 20 points of domino's. >> that's absolutely right. that's absolutely right. and there is clearly more category growth outside of the u.s. than there is inside the u.s.

i think probably 3, 4, 5 points more, which is why we're generating more store growth outside of the u.s. but overall we were very happy with the quarter. >> okay. now, you also i felt were a little less effusive about the margins. the margins weren't like what we're used to with domino's. so why don't you walk us through? maybe that was a little too downbeat, too. >> yeah, i think there are a couple of things going on with margin. there was a lot of little things with the margin. it was about expectations. margin was actually still up overall. i think we're about a tenth short. we beat the overall on earnings, but i think we're like a tenth short of what they were hoping for on the percentage margin. it was a few things. commodities. food costs were a little bit higher in the second quarter. overall, though, you know what? we can generate 20% eps growth, 21%, we're very, very happy with that. >> you've now rolled out the 95%

apps. you've got the windows phone 8 app. are people getting apps? are they also buying more? are they ordering more than the people who are just doing it on the phone? >> absolutely. there is more loyalty once people shift to digital. so the newest launch, as you said, was the windows 8 phone. it's actually got voice capabilities now. so you can actually say "large pepperoni pizza" into the handset. that was a first for us. and we're now on 95% of the phones we've got a native app for them. and that continues to drive better frequency, better retention for those customers. >> even at the end of the call, suddenly you're talking about how again the smaller players are still not where they need to be in terms of being able to get credit to open stores. if we got a loosening of credit in this country, would your same-store sales numbers go up or would it just be more revenue in this country, but not same-store sales? >> actually, if there was a little loosening of credit,

maybe that's going to help the consumer, but the real key is loosening of credit would allow us to open more stores. the one-store, two-store franchisees would be able to access credit, so i think it would be more effect on store growth than it would on same-store sales growth. >> i'm used to crazy things from domino's. got the new transparency, the cameras in the kitchen. how's that working? >> it worked well. people were remarkably interested. we had a couple hundred thousand people spend five minutes or more watching to see how the product is made and to understand that, you know, it's starting from a dough ball. people want to see where their food is coming from. they want to see how it's made. and it was pretty darn good interest in doing that. >> all right. now, you have -- this was a quarter where you didn't have any big rollouts, and i think you mentioned listen, we're not going to have any new rollouts. i thought that implied that perhaps there will be some things that could stir some excitement, and don't give up

the ship down four today because there may be a second half story or fourth quarter story that we don't know about yet. >> yeah, we're going to continue to drive innovation. i think the change for us is that we've kind of quit the product of the month club. we're coming up with things that are bigger, that are going to drive overall preference, and they're not just product. innovation for us is also coming on technology and the ways that people can access the brand, can order the brand. and that's going to be every bit as important a part of the story going forward as new product launches. but there's going to be some of both. >> okay. thank you so much, patrick doyle, president and ceo of domino's pizza. good to talk to you, sir. >> thanks, jim. appreciate it. >> conference call i felt was way too heavily weighted toward domestic. that's the analysts' fault, not patrick's. the foreign story is all in the materials. go to the slide show. this stock will probably catch a downgrade tomorrow because people don't think they're not as excited. i think that's a mistake.

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it is time. it's time for the "lightning round"! rapid-fire calls one after the other -- buy buy buy or sell sell sell. my staff -- play till the sound of -- [ buzzer ] are you ready, skee-daddy? it's time for the "lightning round" on cramer's "mad money." start with brett in minnesota. brett. >> caller: boo-yah, jimmy! >> boo-yah, brett. >> caller: my question for you is last week raymond james analysts called for a 10% correction in the marketplace. i want to get your feedback on that. >> well, i don't think -- i think raymond james is a great outfit. just a terrific outfit. a lot of people have used them. i'm not buying the 10% correction but i do like the

stock. let's go to robert in florida. robert. >> caller: ba-ba-ba-boo-yah, dr. cramer. >> thank you. thank you for that promotion. >> caller: mr. cramer. alr. alear. seems to be a lot of infighting due to the upcoming nominee for the board. what are your thoughts? hold them, fold them or go ahead and stack them? >> got a nice, nice run there. you know, i like diagnostics. i don't want you to sell the stock. i think the stock can go higher. it does very well. very well in affordable care. let's go to tim in california. >> caller: hey, jim. wondering about susq, susquehanna bank shares. buy, hold, or sell? >> you know, i know that area. i see this stock at a 52-week high, but i don't know what its book value is. so therefore, i have to make some calls. i've got to do the homework because that's how i'm valuing

regional banks. i'm not ready to give you an answer. let's go to michael in new jersey. michael. >> caller: boo-yah, professor. >> boo-yah, michael. >> caller: just one short question. gmcr. what's going on with this stock? >> oh, man, what a battleground. i think what happened, this was the case with herbalife. so many people got shorted and then the stock didn't fall, so suddenly it rallies. that is what i call a place where i -- >> don't buy. don't buy. >> too complicated for this guy. i need to go to daniel in texas. daniel! >> caller: booyah from texas. >> what's going on? >> caller: oh, not too much. i was wondering what do you think about baker hughes? >> i like baker hughes. i like halliburton. i like that segment. oil's going higher. oil service is good. steve in vermont. steve. >> hey, jim. boo-yah. >> what's going on? >> caller: rambus. samsung's using all rambus chips. >> i like rambus. i also like micron. i like paleozoic tech.

i don't like that new modern tech like broadcom which i said you get out of. i think rambus is okay with me. >> buy buy buy! >> and so is samsung. and tonight so is apple. and that, ladies and gentlemen, is the conclusion of the "lightning round"! coming up, service with a smile. timeless toolmaker snap-on made reporting an earnings beat look like, well, a snap. but can its continued push into new markets cause its shares to find another gear, or will the stock break down? cramer has the exclusive just ahead. [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade.

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if you want to get a read on the real economy, both here and even in europe, then look no further than snap-on, sna for all you home gamers. the top maker of premium hand and power tools, particularly for auto repair shops. though the company also has its paws in aerospace, agriculture, construction, mining and power generation too. it's an endless innovator of new tools that its clients love. now, last thursday snap-on delivered an excellent quarter

with earnings coming in at $1.50 per share, five-cent beat while the company's revenues were in line rising 3.6% year over year. snap-on has given you an 18% gain since we last spoke to the ceo back on april 18th. the stock is up 41% since we first interviewed him roughly a year ago. let's drill down with nick pinchuk, the chairman and ceo of snap-on inc. find out more about the quarter and his company's prospects. good to see you. >> good to be here. thank you, jim. >> this was a quarter i think where you stood out by saying, okay, did good in u.s. but actually made money in europe, not off of revenue but because you just did the right thing with margins. >> right. europe stabilized. but we for the last couple of quarters have started to make more money on less sales. and this is what we like about snap-on. snap-on is a target-rich environment for improvement. 65,000 skus. deeply integrated manufacturing. so we have something called snap-on value creation that says

we're going to improve even if the sales are flat. and that's what happened in europe. >> i think it was great you said i just want to get europe out of the way because i wanted to get this line. you said yeah, france, i don't like to hear the word "france," it gives me a headache. >> right. it was mixed. well, france was down again, but germany was up a little bit. spain was down again. benelux was down, sweden was down, but the uk was up. we had a mix. we think europe is kind of stabilizing. >> that's what i want to hear. one of the things i thought really stood out in this quarter, i've been talking about you and technology, is the inventions. the inventions, what they mean. so for instance, let's just pick one. bk 8000 wireless digital inspection scope. what does it do? what it does is you have this wireless scope that you have a fiberoptic that you put it inside an engine and you can inspect what's going on inside the engine itself, under the instrument panel, inside the transmission, and it shows up on a video screen that's bigger than ever before. it is a touch screen now. it's an advancement that our technicians are loving. >> what happens? you introduce that product, then they have another reason to make a sales call or they sell more

products? >> what happens is technicians get on our vans. we have vans that go around the country. and when they get on the van they get excited about the new products. we call them hit products. products that will sell more than one million. we have launched more than six times that number of $1 million sellers than just like 2005 or 2006 because our innovation processes are better. and what happens is the guys get on the van, they get excited about this new product and then they buy some of the old. >> i see. which is more important, the number of vehicles on the road, the new ones, or the age of the vehicles when it comes to -- >> oh, the age of the vehicles of course. the vehicles have gotten older every year since 1980. they're now at 11 1/2 years old. the age of the vehicles are important and also the change in the vehicles. vehicles keep changing. you know, the number of engine codes are maybe 100 times what they were just a few years ago, and we keep innovating to do that. >> you guarantee your tools for life. now, that's fine if it's one of these.

but you can't guarantee something like that. >> no, we don't guarantee this for life. you know, we don't guarantee that for life. but we guarantee it for a good period of time, and it operates because people, when they buy snap-on, they expect it to operate with quality and repeatability every time. >> now, one of the things that i thought was a standout, you had talked about initially indianapolis. now for aerospace, really coming on, starting to be really profitable for you guys. >> right. the aerospace business, what we call the critical industries business. you see, the thing is about snap-on, what it's always meant for nine decades is an idea of pride and reliability for technicians, for working men and women. and that applies, whether they're automotive techs or techs in aerospace or oil or mining or anything. aerospace is one of those places where rolling the snap-on brand out of the garage to sell to those people and they are really receptive. >> that area, what is that levered to? is it the age of planes? >> no, actually, it's the change in the planes.

and for us, because it is part of our proposition, which is only a portion of which has been explored, there's market share gained for us. that's what you see for us. >> last week we had t.j. rogers on, he's from cypress semi. he does the touch screen for autos including, for instance, the tesla. will you be developing products for electric cars, building products for touchscreens to be able to analyze those? >> no, of course. of course. anytime a car changes it's good for us. whether it's electronic or hybrid or so on. we love change in cars because it generates the tools. as you said, we guarantee this -- by the way, when you feel this, it's a good wrench. >> mr., you know, maybe goodwrench. >> actually, we guarantee these for life, but every time a car changes it needs a new style. i had a guy get on a van the other day, i ride around on these vans all the time, he had 15 or 16 ratchets and he said this is a standard tool. he said i need two more because the cars have changed, i can't get in the space. we love this. this is what drives our volume. >> last thing, i know that you talked about asia, you said china right now all the cars --

there's a lot of cars on the road but they're all new. is china going to be a good market ten years from now? >> china's going to be a good market ten years from now. in fact, all of asia. but china's a place where the repair wave is rising. the cars are new, but they're all new, and they haven't really gotten the idea of the need for repair. so that's what we're doing. we're building our physicals. just ten years ago we had nothing in china. two offices, ten people. now we have 1,500 people. five factories, a design center and scores of offices all over the country. >> yours is a great american success and growth story. thank you so much. nick pinchuk, chairman and ceo of snap-on. see why this stock hit a 52-week high? this has what you want in a stock, right now and for many years to come. stay with cramer. >> good to see you, sir. thank you.

this market is making you afraid to sell. as i watched netflix fall today i kept thinking what if netflix is the next google? what if it's the next 3m? the next starbucks? what if it's the next federal express or coca-cola? these are all companies that let the marketplace down, disappointing analysts, causing downgrades and lots of hand wringing. >> sell sell sell sell sell sell sell! >> yet what happens a few days later? they start coming right back. then they even pass where they were when they reported what we didn't like. seriously. was there a quarter more downbeat than fedex where the company basically told you that there's no urgency to sending

freight around the world, something that was echoed by united parcel recently when it preannounced and then again this morning with the actual quarter. what did fedex do? it was flying high when it told us how badly things were really going, then it had a straight shot down to 91 and change. then after that a methodical rally all the way back to 108. it was incredible. and while you could say it was based on nothing, it did happen. or take starbucks and 3m, two companies that report tomorrow. i still can't figure out what people originally didn't like about starbucks last quarter that sent it down to 60 after hours trading from 62 when it closed but it obviously didn't hold any water because the stocks moved methodically back up to 67. was at 69. well above where it was before it reported that so-called disappointing quarter. while we're on the eve of starbucks's q let me just say this danone yogurt tie-up announced today i think it's a pretty bullish long-term idea. it didn't drive up the stock today. 3m's much more problematic. when that company reports you have to hope it bested heavily slashed estimates a la what apple did. the ones that dropped the stock from 107 to 103.

because the stock is now up nine points from before the slashing. i can't see where the business has turned, but maybe i'm being too negative because the stock's been a real horse. the turn in google is astonishing. last week all we cared about was advertisers weren't paying up for mobile ads and the mobile acquisition was a terrible one. the hand wringing about the quarter that sent the stock from 912 right after it reported to 880 in after hours was astonishing, perhaps the most high profile disappointment of a beloved company since microsoft. so i think it's kind of a different kettle of fish. mr. softy had crept up too much in light of the surface's failure. coca-cola management weather and economic excuses rang hollow but you can't see the downward move on the chart after the quarter. and the stock's regained all of its losses. which brings me to netflix. yes, it didn't get the hopeful -- the hope for new ads some are hoping for, including netflix itself, by the way. the number was still pretty darn good. those that thought there would be a huge bump in subscribers because of "arrested

development," of course my appearance on the show, were certainly disappointed, as the company said some people signed up for "arrest rested development" that might not otherwise because it was a seasonally weak quarter. talking about expenses running high is grim but what happens if netflix turned out to be coca-cola or 3m or starbucks or google? what happens if people are excited about international coming on or how the ads are still good and the critical mass is worth a lot more than what the company is selling for as was debated today on judge wapner's show? to me there's a case to be made that the sellers -- we saw in the aforementioned stocks it could grip the shares of netflix too. in other words, i don't think you need to rush to dump it. if it follows the pattern of the others it just might be a buy in a couple of days. either way it's certainly worth waiting to see at this point, if only because forgiveness reigns in this market for all but a handful of stocks that have no adherents and are truly dead in the water at least until the next quarter. stay with cramer. when we made our commitment to the gulf, bp had two big goals:

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sun shines on apple for a day. i like to say there's always a bull market somewhere, i promise to try to find it for you right here on "mad money." i'm jim cramer, and i will see i'm jim cramer, and i will see you tomorrow! materials and components for a variety of weapons from right here in the u.s.a. this man set up a trading company in philadelphia. you are charged with trying to buy a centrifuge that could be used to make biological weapons, like anthrax. >> yes. that's what they say. >> do you know how much money you have? >> no. >> i mean, does 17 billion sound about right? he is the richest man in russia who just bought