playing tonight, too. >> so a double header. >> look at that. >> tickets at the door today. >> $130. you can still get there. it's nice to give something back. please support this charity. >> that does it for us. thanks for watching. head down to rocktoberfest. >> "fast money" starts right now. >> 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. kwat mad mo "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. my job is not just to entertain you, but to educate you. call me at 800-743-cnbc. everything we hated we now like! and everything we loved --?

buy, buy, buy. >> sell, sell, sell! >> we now hate. some stocks, the cyclicals and especially the oils were laid to waste while others and the consumer product stocks roared higher almost regardless of how they're doing. the dow sank 54 points and the nasdaq declined 5.47% and underneath the market is seething and rolling and you know what? it's begging for prognosticat n prognostication. so what is going? why are we tossing out the natural resource stocks that do well in the slowdown? three reasons, the united states, europe and china. big reasons. all of the three legs are developing some chinks and they're showing in a way that's freaking out owners of stocks that we haven't seen since interest rates started to soar in the spring. >> first, as has been the case all year, everything has come down to the darn bond market. interest rates which seemed to be on the brink of busting out

of levels we haven't seen in ages are at a pace that we only see when the economy is going into a real slowdown, if not a recession. let me say immediately, i don't think we're going intoa i recession. we have seen no earnings reports that indicate we're going into a recession. other than the day -- >> sell, sell, sell. >> katrina, no company of any standing has complained with any real weakness of the economy. we keep getting surprised by the strength. when it it comes to taking cues you have to understand that gentlemen prefer bonds. they turn heads and heads are being spun by the incredible rally in the bond prices and you can monitor those by how well the tlt is doing because the advance in bond prices with the decline in yields is saying that demand for money has indeed dropped off a cliff. you simply don't get these gigantic kinds of moves in interest rates with the ten-year treasury is now under 2.5% when it was about to break out above

3% unsless something's gone awry and not just here, but there and everywhere. let's go over what's hitting it with the three legs. >> the first, the united states -- it's pretty darn obvious, right? the confidence our country has been shot by the brouhaha in washington. there's a recognition that everything is going wrong from the health insurance website, can you believe that, to the obvious can kicking to the debt ceiling in congress. investors believe that whatever we've seen and heard from optimistic managements this quarter has to be discounted because nothing's been learned in washington and history is going to repeat itself and they will sink below. they don't want to win us over. >> second. europe has been a terrific boost to the growth of late. the bank has been incredibly easy on the continent. looking at the other way at the ne'er-do-well bank, maybe it's time to pay the piper and the central bankers want the banks and many of which would have been shuddered if they were in

this country to raise some equity. that will slow things down for certain. >> finally china which has been seeing a gain of better than expected ords and are economic growth has a pushback from its own central bank which didn't inject reserves and the heavy lifting is done and it's time for the economy to fend for itself, given that china exports and europe might be slowing down and that doesn't bode well for global demand. now the question is demand for what? we know the bonds are saying there is going to be less demand for money, hence the decline in interest rates and more important in commodities. the most visible commodity being hit right now? oil. that's why we seem to have lost one of the most products to this market, the oil and gas stocks. we've seen oil go down for days and day, but the stocks weren't being clipped and they're triking fear in the stocks that bid the stock up endlessly and oil has further to fall. comed is are often traded on a

technical basis and the chart of oil says it's not stopping here. according to the chart, crude goes on $93, and one of the stock market is being torn asunder right in front of us. too early, people, to step in and buy. what else tells us that demand for commodities could be cooling? how about caterpillar? you don't get, and it was about how poorly commodities are doing and they're get worse and not better and that's more fuel to the fire and i don't want to go into how poorly managed cat is right now. i just will say in their defense that their machines are still the best in the world. there's been a spate of technology companies that haven't had much good to say and out of broadcom and altera remind us how fragile they've been and akamai are further reminders of the fragility of tech and much of the government spending component and needless to say, when i mention the word government that means shortfall and money isn't idle in this market and it always is seeking what's working. it's taking the other side of the trade so if commodities are

coming down and then the users and the buyers of commodities, how about the makers of consumer goods like hanes celestial and coke coal willa the spice company, kimberly-clark and kellogg. the stocks are all going up and money also seeks what will be working and not just what is working and what will be working and houses and loans got too expenses and housing prices seem to have plateaued and interest rates have gone down enough to give buys are a second chance and mortgage rates are cut next week. those that didn't act can be enticed again and the housing stocks are rallying and d.r. horton, and home depot are starting to go back up after a reported great quarter and the markets also pull toward safe, no-growth stocks and secular super-growth stocks and the barbell that i often talk about and that always happens the moment the economy stalls out. remember, secular growth keeps going even when general demand

goes down bringing the cyclicals. we know google has it because it figured out how to make money. i told you the stock isn't done going higher and it still isn't. the tablets look like they will be another hit on top of the iphones and of course, they report next week. there are always guys saying the chart looks bad, this or that. i remain convinced that the stock is cheap and i don't like the stock that is generated by a tweet, though. how about boeing? we know from its earnings report and conference call that the airline super cycle is alive and well and that's just killing it. jim mcnerney, what did i tell you, the ceo? is he bankable or what? and what no-growth companies do okay when they go down are utilities and that's why we keep them front and center. american electric power did amazing. con ed, don't forget duke. they've done well since rates peaked and they will continue to do so. we have a rotation out of what works when rates are going down and it will most likely continue as long as interest rates in oil continue on their downward trajectories.

the problem with these rotation, of course, is that we don't know is the stuff we're throwing away or the stuff we're taking in and perhaps that's why i always fall back on being diversified. you get less pain, and less pleasure, but sometimes that's the best way to make long-term money. we aren't sure when the honeymoon will be over with the stocks and if they'll be over soon. we do know that it's hardly dried on the divorce decree or the marriage certificate and we could be off for a couple of more days until europe and china aren't going the way of the u.s. if they aren't because the communists and socialists aren't as dysfunctional as the pseudocapitalists in washington and that's what's tossed today. it will soon be a lie and that's why the bottom line is if you pick stocks growth space and the internet and you match them with companies that thrive in the slower economy along with the companies that thrive in a fast one, you hardly notice the

turmoil today. if you go toward commodity growth you pay the price. remember, it is never too late to being more diversified with best of reit stocks that have the commodity winds at their backs and not in their faces. alex in new york. alex? >> hey, jim, coming to you from sir use, university. >> i love that! the orangemen! orangemen! >> go orange! there's been a boom in oil production in the united states. refiners have lagged the general market rally, so is now for american refiners to shine and more specifically valero? >> i think there was the time now. valero has had a big move up as has holly. there was a moment when that was the right trade and we are no longer in that moment and i want to go to don in new york. don? >> hey, jim. the symbol avax and it's gone down 35% over the past two quarters, i'd like to get some

insight, basically it's short term and long-term outlook and the at the current price which was told to accumulate. >> people did not like the revenue games there. they were pretty slight there. we can do more work, but remember what we do say is that the small companies in that particular segment, we think and it's the test analyzer we think may be under some pressure, you about we can do more work, but that quarter was not what people liked. what we loved, we hate. when we hated we now love, sister, mother, sister, mother, diversification, once again, is our only free lunch. "mad money" will be right back. coming up, fire extingui extinguisher? pallo alto had a red hot ipo but this operator has cooled off since its initial spike. is the decline offering an opportunity to buy into the next generation of digital security or will this wall come tumbling down? find out in cramer's exclusive.

and later, tea time? >> this is not your mother's lipton tea. while the world's largest coffee chain stock flirts with all-time high, it's adding another flavor to its business. will starbucks' big plan for tea help keep it caffeinated? don't miss cramer's one-on-one with ceo howard schultz from his brand new flagship store. plus, we go impact. the finite resources demands our next generation way to monitor every drop. cramer's finding out how smart grid technology could power the future and which companies are leading the way when he heads off the tape. 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 email to mad money@cnbc.com or give us a call

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>> is it time to circle back to palo alto thet works? here's the next generation that works with proprietary fire wall platform that allows them to have customized control over how their employees access through the night. it came public at $42 with a bang. it rose over 26% in its first day of trading. the stock soared as high as $62. since then the high-growth, high-multiple tech stock has been a house of pain. the company stumbled when it reported in june. the results in september were much lower, in-line earnings and they were up 7% year over year. after the insanity of the last six week it's gone back to where it was before reporting and the company's taking share. so what should we do with the stock? i think we need to do more homework. he's this chairman and president of palo alto networks, mr.

mclachlan, welcome to "mad money." >> hi, jim. glad to be here. thanks. >> you guys are the cutting edge company and in the most recent conference call you talked about replacing it with the equipment company and you replaced cisco and a large insurance company and you were able to get into a larger company. give me your pitch about why you can topple a company like checkpoint that we regard as premiere and cisco which everyone says it's best of breed. we developed the next generation security platform and that's the only thing in the market today that can have applications on enterprise networks and from a cyber security perspective, applications are the main way threats are getting on the networks. we have the next generation platform which is rapidly displacing the legacy technology in cisco, juniper and checkpoint are using an old traditional platform. >> do we have to worry about juniper? jefferies says it could be heating up and this is something

i want our viewers to realize that you could be living with for a long time. >> the litigation is what it is and we can't talk much about that. we are paying attention to the business which is growing very well because we're delivering the best security in the market today. >> global protects subscription, when a remote user locks into the device, it has the roaming devices that have a secure connection and how are the bad guy s able to get in then becaue we know bad guys are getting in and they realize that the best way to get into an enterprise is through applications and that can be from a mobile platform and it can be from a desktop and we build as a platform that can cover from the data center to the perimeter and all of the way down to all of the mobile devices as well and we're protecting the entire enterprise all of the way from mobile devices and all of the way to the data center against the application center and threats. >> i always thought blackberry had the secure system and you

didn't have to worry about it. if someone has blackberry, they still need palo alto? >> not in necessarily because it may be one of the more secure systems from the phone perpective and you need palo alto, because they're coming from all sorts of places and mobile, and just one of those threat factors. >> okay, on your conference call which was september 9th which was kind of a different world, your cfo, stefan tomlinson said with the government year end coinciding with the fiscal q 1 we're anticipating to see decent growth in the federal business and since then the world fell apart in washington. can you still stick by that statement? >> generally, the public sector has been a strong vertical force and no vertical force represents 12% of the business and if you look at what we do for a living there's a strong need for that in the public sector and the government space and we've done very well there. >> in other words, i don't need to worry that they shut off the spigot in washington. it's business as usual when it it comes to network security.

>> it never helps anybody in government shutdowns and if you put that aside it's a temporary thing and big picture and it was a pressing concern for the government and we have a platform that can really help. >> the group that you're in. you can say yours isn't and it's prone to shortfalls. given the secular nature of the bad guys always trying to crack in, why this is this business so quarter to quarter for so many companies in your industry? >> well, generally it's because there's a capex extend itch you are that goes with buying networking gear so there are ebbs and flows in capex expenditure, but as a general matter, cyber securities are a growing concern and the top three priority in the boardroom and i would expect them to increase over time. >> thank you so much for coming on to "mad money." >> thanks for having me. >> that's mark mclackland.

the bad guys are breaking into your system. palo alto has a solution. stay with cramer. >> coming up, tea time? >> this is not your mother's lipton tea. >> while the world's largest coffee chain stock flirts with all-time highs, it's adding another flavor to its business. will starbucks' big plan for tea help keep it caffeinated. watch cramer's one-on-one with howard schultz from the brand new flagship store. and this will be your premium right here. sorry to interrupt, i just want to say, i combined home and auto with state farm, saved 760 bucks.

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one of my favorite growth companies is doing something brilliant. tomorrow starbucks opens its very first tivana tea bar. it was a play where you could buy tea bags and tea pots and not actually drinkable, on the spot tea. starbucks is rolling out an entire concept that gives it one long lasting growth driver on top of many others that have propelled the stock to $80 their 20 from the last time we spoke to the ceo just in the end of zoon. now i had a chance to chat with schultz and got a brand new look at the teavana tea bar. >> howard, this is a different store. a lot of people told me why do they need teavana, they have already have starbucks, why

don't they just run tea? >> i don't think so at all. in 1971, starbucks was coffee, tea and spice, but coffee completely dwarfed the opportunity for tea to have a real place at starbucks and if you look at the category and people don't really believe or understand this, it's a $90 billion global category, twice the size of coffee on hot and cold that we strongly believe is rife for innovation. so we want to build the kind of stores that show case these fine tea, that create a beverage opportunity where we can sample beverages and create a new destination for teavana in the morning and bring to the tea category in a sense the romance and theater of what we did for coffee over the last two decades and i think also unlike starbucks, where we spent two decades in the u.s., teavana will be a global enterprise where we will leapfrog to places outside of the u.s. before we go

national throughout the country. >> we're not used to paying triple venti cappuccino with skim wet $5.75 prices for tea, and i notice your prices are elevated. what's the value added? >> well, this is not your mother's lipton tea in all due respect in the same way it wasn't nescafe. >> were you at my house? >> what we're bringing to the tea category are fine, exotic teas and the art of blending and introducing flafors and profiles that people have not had before and the customization. you will be able to come in here and we will blend your own tea and customize it for you. this will become a meeting place and it will become a ritual for tea and all afternoon, as well and it will take on a life of its own, but it is a different kind of environment and a different kind of pace and we could never have done this inside a starbucks, but it does capitalize on all of the

capabilities and disciplines that starbucks has honed for 40 years. real estate acquisition and real estate design, sourcing of a commodity of high-end tea and retail operations design, theater, romance, this is who we are. >> panera reported last night and you and i think the world of ron shake. they talked about through put problems. chipotle, another management team that's exroared near. before they got back onboard there were problems particularly at lunch. i look at this and say this is a complicated deal, howard. how will you get people through the store in time to make enough money? >> well, unlike panera or chipotle or for that matter starbucks, the average sale at a teavana store will be higher than the average sale of starbucks or the ones that you've mentioned and so we do not need the number of transactions in a teavana store, however, the beverage component is going to drive incrementality, but this is a different environment. it's more merchandise. it's more high-end tea and as a result of that we'll not have a

through put issue. >> with regard to throughput, i will stay that starbucks cracked a code with that over the last three years because of the loyalty card and because of mobile platform. we are now processing at starbucks almost 5 million mobile transactions a week and clearly, there isn't a company in second place that is even processing a million and that gave us the ability of speed, customer service and automatic reload and higher average ticket. >> speak demographically, there is a movement from whole foods and chipotle that you want to be good and good for you. a lot of people feel tea is better for them than coffee and worldwide, tea is a first drink in many different places. why not make the centrality of teavana india or china and then come back here and reverse the product? >> well, i think given the infrastructure and resources available in the u.s. that

teavana has 350 successful mall stores we believe that we've got the opportunity to leverage all of that in a way that we can do it and it's very consistent with the core strategy of starbucks. one thing that people should not take away, this is not a distraction. this is absolutely part of the strategic opportunity that starbucks has to leverage our core capabilities. we've been in the tea business and we will elevate it and bring innovation, the likes of which has never been seen in the tea category before. >> news in china, obviously. we know that at times the chinese seem to want to pull back from certain american enterprises you have to do certain things that they want. a teava. >> reporter: a initiative in china right time or wrong time given the resistance about the labor cost and the heightened notion of starbucks on the radar screen? >> i think this is a good opportunity for me to explain it and probably to dispel any concern that people have. anyone who is doing business in china especially on the consumer

side understands that navigating through all of this at times can be challenging and you can misunderstand the situation. what has occurred here is that we do charge slightly more for products in china that we do in other markets. we're not hiding behind that. we've been accused of something and in the last 48 hours we've explained it and i think we've explained it to the right people. the cost of doing business in china for starbucks in setting up that business and in building the infrastructure and in building the supply chain and investing ahead of the growth curve for thousands of new stores has put us in a position where our cost structure and what we charge for products in chinaa is slightly more upon it is on par, though, with our competitive set who have matched us, but we have 20,000 employees in china and we have very good relationships at the highest level with the chinese government officials and other constituencies in china. this is not a yum situation, and we're going to be able to overcome this with great respect

and most importantly transparency and that's what we've done over the last 48 hours. with regard to your question about teavana, i wouldn't be surprised to see teavana open stores in asia over the next couple of years. >> venti cappuccino. >> maybe 20 or 30 cents more. >> that's all? >> that's all. >> with teavana, i've met people behind it. there are teaologists and people that are highly skilled. he was concerned that starbucks would not be able to find enough educated labor force in america to be able to open starbucks all over the world and completely disproved. are these harder places to open and a more difficult step? >> i don't think it's harder, but i think it requires a level of sensitivity that tea is not coffee. it is an exotic beverage. it is fine leaf tea. it needs to be nurtured. it needs to be taught. it needs to be sampled and going

back to what i said earlier, this is not a high transaction business and this is not speed. we need to nurture the relationship with the customer and nurture the relationship with the staff. the training and the investment we make in our people is something that we'll obviously deal with tea vanna and let's not lose sight of one thing and teavana has been doing it for 15 years and doing it well. we will enhance the equaty of the brand and the experience that only starbucks can do. >> tomorrow morning, 84th and madison in new york city this store will open. will this immediately be perceived as another third place and now how is this third place from starbucks' third place. >> i don't think this will be a necessarily third place. i think it could be people's first place. the store is beautiful. i'd like to live in this place. >> the architecture is stung. >> it's beautiful. i think people will use this for many different occasions. i think we are going build a

morning ritual for tea that doesn't exist anywhere, and i think you will see mothers, you will see people on dates and i think there will be a lot of curiosity about people not knowing that much about high-quality tea and making it at home and we will provide a primary level of education and tutelage. >> okay. education and tutelage. also, will there be a moment here where you will also have a petition about bringing people together? a new starbucks initiative and a lot of people in the country are ready for it that may not have been ready before the debt ceiling and budget shutdown. >> no. i think teavana's brand and position needs to be viewed and judged on its own merit. >> okay. >> and if starbucks enters things i think that will be skewed toward starbucks. >> do you think -- is there any way, can someone cynically say you know what? that petition brought better same-store sales for starbucks. >> i can assure you this was not about marketing and pr and this was about the conscience of the company and recognizing that america in a way has been losing

its conscience and we as americans should not be bystanders. >> walmart, costco, target, big employers, any feedback from them, are they going join the costs? because their same-store sales have been hurt. >> i talked to over one-half of the dow 30 ceos leading together. >> okay. >> we had many of them join the petition with us. i think everyone i talked to, 100% of the ceos i spoke to felt the same level of concern, disgust, shameful performance and we need to do something about it. >> i hope they stand up. you're obviously, you're right now, i think somewhat alone in this effort. >> sometimes we need somebody to lead others. >> thank you, howard schultz, president and ceo of starbucks. tomorrow morning at 7:00 madison avenue? >> thank you. that was great. thank you so much. this veterans day, "mad money" honors those who defend our country's freedoms by helping defend their financial

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it is time -- it is time for the lightning round on cramer's "mad money,". >> buy, buy, buy. sell, sell, sell. >> play until we hear this sound and then the lightning round is over. it's time for the lightning round on cramer's "mad money." let's start with ed in new jersey. ed! >> you're doing a great job and i've subscribed and i've got your stuff. >> you're great to be a subscriber. appreciate it. >> my question for you, i have three stocks with the same question. >> agco, rite aid and rvs and all of them with great profit in them. >> okay. those are all stocks, sir, that are very, very speculative. we know that opco coming up and i think the break-up value is

very big. rite aid, i think that one can can come down before it it goes up. the stocks are taking it on the chin and you have to bare with them before they reload. >>erec in illinois. eric! >> boo easy from the windy city. thanks for taking my call, cramer. i'm inquiring about o-m-e-r. >> when i recommended last week to take profits in a lot of the small, speculative biotechs and that's what i want you to be careful with. that's when they're up more than 100% and i think that what you have to do is take half and book it so that you do not give up that gain up 107%. let's go to venu in illinois. >> hi, jim! i have shares of zhenga and groupon. i was just wondering what you thought about it. >> i like groupon. zhenga is a new value play. groupon has a good ceo and these

are speculative situations and let's go to mark in nevada. mark? >> hey, how are you doing, jim? >> how are you? >> i'm doing fine, thank you. i've got a question about molecor. >> no. let's go to jill in pennsylvania. jill? go ahead, jill. >> jim, boo-yah. >> boo-yah. >> i want to know if -- a couple of months ago you said was a hold. should it still continue to be a hold? >> it had to move and they brought in new management. i don't want to overstay my welcome. and the old pitney bowes was not done right and their they seem very together and that, ladies and gentlemen, is the conclusion of the lightning round! >> the lightning round is sponsored by t.d. ameritrade. it told him what was happening on the trading floor in real time. ♪ the shell brought him great fame. ♪

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a tough day like today reminds us if we can isolate great american company anies just own them without the regard of the day to day of the global economy we can stand to gain much longer than those that roll

the dice and risk it all what could be a fad or trend that might end a moment's notice. we here at cnbc are isolating some of the companies and you need ton about them and it is a privilege to be able to shine a spotlight in this ney-huddle on johnson & johnson, the best pharmaceutical company in the land with fantastic management, the best balance sheet and the fastest growth of any of the major drug companies. >> those who watch the show know i like nothing more than the the fine companies that give you lots of ways and that is johnson & johnson to a tea. it's gone from being poorly managed, and ever since william weldon over the worst manufacturing bungling of any -- of any industry since the start of the new millennium decided to spend more time with the family and alex gorsky took over and the stock is up a fabulous 31% and you know what? i think it's the beginning of the multi-year, not multi-day, multi-year move. and it's accelerating. we love accelerating revenue

growth and that's what's so crucial is that this market thrives on growth and that's the best balance sheet in the industry and say j & j and the revolutionary antiblood cancer drug, and i think this drug which has shown an incredible 68 response rate on non-hodgkins lymphoma could do $6.5 billion in sales. if the drug is that good, j & j can buy the most company and a luxury most companies do not have. they create massive value by splitting themselves into three pieces and the consumer products division, also includes rejuvenated tylenol provisions under the regime and a best in class medical device division and the pharmaceutical business with the biotech kicker. medtronics today of late and st. jude, remember we interviewed them last week and it's for new medical device stocks and the consumer products companies have caught fire in the last few days

and it's spun out and it's just pristine and it could buy a host of companies to become a real consolidator in the space. the j & j drug company has so much better than the slow growers like merck and pfizer, and it can give you the same awesome yield and there is just that much cash and sometimes we're being given a real gift by the like of having even a stock like j & j. i always felt that the first stock i ever used when i was selling stocks to wealthy individuals. we get that will bahhance sheet, that cash, those drugs and the aaa balance sheet and the lineup of drugs, the brand names and we get that ceo all pulling for us, perfect in a slow growth atmosphere where we're always one step away from le session and here's the bottom line. j & j makes you wish for a sell-off to create for a buying opportunity and unlike so many other stocks, you can buy johnson & johnson without for and without worry that the stock will ever sink back to what you

bought it again, this stock is a buy every time it goes down with alex gorski's j & j, this is the best buy and hole, a term i don't even like in new jersey. >> let's go to evan -- >> i've been watching you since you were with larry. >> larry kudlow! >> i was watching him at the stadium and i probably even bought ice cream from upstairs. so we are good fans of the eagles. >> yes, when they were in the frankfurt yellowjackets. i loved them. >> jim, a while back someone called you and asked you about preferred stocks and you said yes, but banks only. i'm looking at something on barron's here and they said the repackaged securities and there is a bkrhinco, and is it berkshire and if it is, would you buy it? >> let me just say, the

preferred. there are several bank prefers that i do like, and what i was recommending is an etf bank preferred on the best way to do it. in other words, you don't necessarily want to have one preferred. i like to have a basket of them and if you want to know more about it, but getting back the exact status and what you need to own when it comes to bank preferreds. all day we at cnbc have been highlighting america's favorite stocks. we had j & j in our sights and the 3w58ance sheet and management is looking strong. i say up, up and away j & j. stick with cramer. mad about "mad money?" immerse yourself into cramer's world while you watch the show with zbox on your phone, tablet or on the web, get sneak peeks and go behind the scenes and join the conversation. download the free app today for the ultimate cramerican

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we're trying to get a better understanding of where the particular industries are headed and sometimes in order to get around cutting edge technology you have to drill down with privately held companies even though there's no way yet to invest with them directly and that's why we're going off the

tape with census, one of the advanced metering infrastructure and an automatic meter reading business and sometimes you describe it as the smart grid. census helps everything from water to gas and electric and heat and utilities by providing them about advanced measurement and it makes it possible to read your meter remotely and letting them conserve power or whatever they're selling. >> which helps customers save on their electric bill or gas bill. we want to dig deeper with the chairman of sense us and respected business leader which is the ceo of sears holdings thisser yoo. before that he was the ceo of avia and he worked at ibm and yes, he's a philadelphiaan. welcome to "mad money." thanks, jim. >> pleasure to see you. >> pleasure to see you. >> we know from honeywell and we know from our work with eaton that the greatest thing we can do in this country in term of saving energy is not finding oil, but it's saving it for the buildings that are already

there, but are there enough incentives to make it work? >> several years ago the government had a large stimulus package and a lot of that was targeted toward a smart grid. today there's very little government funding, but there's justification unto itself and when you employ smart meters you save money and grow revenue. yes you provide society benefits as well and if you think about it, all of the trucks that have to roll to check your meters. you don't need those any longer. a line goes down and you have to wait until someone calls in. you can put that line up and you can get the people back on-line much more quickly. the benefits whether it's saving costs and growing revenue and increasing customer satisfaction town themselves makes sense. the justification is there. >> it's pretty clear that some of these state commissions aren't sensitive to what you're talking about and maybe the utilities should be given more

money and a bigger rate increase. what's the incentive in the system? >> well, the incentive in the system is frankly at the end of the day to help consumers. let me give you an side -- and go to the united kingdom the united kingdom just launched a program to reduce carbon emissions bee 20% in the year 2020. everybody around the globe bid on it. census was the only north american provider to be part of that deal. what does the uk think they're going save? do you have any estimate? $10 million. why are they going to save the money? because now the consumers armed with the data of how they're using their energy, when they should use their dish washer or their washing machine, 8:00, 3:00, et cetera, information goes a long way, by adjusting now their consumption habits they will benefit significantly and you talk about the commissioneds as advocates to consumers and so do the the

utilities and the consumers do as well. >> how do you compete against it? silver spring networks, hot as a pistol and they got 32% of the market share and how do you defeat them? you're a private company. >> first of all, we're a multiple in terms of the size of silver spring and not withstanding the fancy press release. >> they do have them. it looks good. >> good writers. it looks good. >> itronhas a history in the meter business. silver spring is new to the party and they come from the technology base. what we bring at sensus is the combination of both, we bring gas, electric and water, plus have the leading technology in the industry. >> okay. >> so we believe it's a false dilemma in terms of should you start with someone who has a background in utility and meters or technology. >> it's a false dilemma. you go with sensus and you get

both. >> ufrp trying to, when you were at sears inject technology. did it have an impact at sears when you were there. >> it's all about information. it's all about information. sears is tens and tens of millions of customers gathering that information now to help predict what those customers will buy has a big impact. at sensus now, the utilities understand and look what's happening at jim cramer's residence. his line's down and i have that information now and god forbid there's something going on with the gas line. remember the old days? how did you find out if there was a gas line problem? >> smell. >> you had to wait until the the guys game. >> your mother told you to get inside and hide under the bed. >> exactly. i grew up in south philly. they used to come and they used to dig the ground up and we used to party until midnight because people were checking the gas line and now we can identify, great. look what's happening. what's your concern? and now remotely, we could send the information to close the

valves to prevent a disaster. so information goes a long, long way. >> okay. i've got to tell you, people will want a piece of your company. >> guess what? we'll see how things play out, jim. right now we're focused on building a very, very special company. now, whether or not we take it public, whether we combine with other, we'll see how the whole industry plays out. >> but i like what you're doing, lou. you're a technologist first and foremost. lou's trying to bring you the cutting-edge company. this is the type of cutting-edge company you do eventually want a piece of. stay with cramer. tomorrow, kick off the trading day with "squawk on the street." live from post 9 at the nyse. >> this is a winner from the younger person's point of view. >> it all starts at 9:00 a.m. eastern. customer erin swenson ordered shoes from us online but they didn't fit. customer's not happy, i'm not happy. sales go down, i'm not happy. merch comes back, i'm not happy. use ups. they make returns easy.

unhappy customer becomes happy customer. then, repeat customer. easy returns, i'm happy. repeat customers, i'm happy. sales go up, i'm happy. i ordered another pair. i'm happy. (both) i'm happy. i'm happy. happy. happy. happy. happy. happy happy. i love logistics. transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right.

you're thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it's no surprise to you that companies depend on today's xerox for services that simplify how work gets done. which is...pretty much what we've always stood for. with xerox, you're ready for real business. you'd do that for me? really? yeah, i'd like that. who are you talking to? uh, it's jake from state farm. sounds like a really good deal.

jake from state farm at three in the morning. who is this? it's jake from state farm. what are you wearing, jake from state farm? [ jake ] uh... khakis. she sounds hideous. well she's a guy, so... [ male announcer ] another reason more people stay with state farm. get to a better state. ♪ you are awesome. >> your show is the best. i'm so glad you're on tv. >> you have transformed me. thank you, cramer. ♪ ♪ so much craziness after the close. akamai looked up and now it's down. fort net which is in the palo

alto group that we spoke about earlier did do better. symantec did do worse. that group is so volatile you have to have a conviction about the long-term secular nature of anti-cyber crime. what a tough market right now. i'd like to say there is always a bull market somewhere. i you right here on "mad money." i'm jim cramer, and i will see you tomorrow. welcome to a night of crucial late-breaking news on obama care. first, the political pressure is mounting against the white house. we just learned that west virginia democratic senator joe manchin is working on draft legislation to delay for one year the financial penalties connected to the individual obama care mandate. there are also reports that every democratic senator running for reelection next year will vote in favor of some kind of delay. second, the tech company that created the obama care website is blaming other contractors for the problems with the site. it also says