are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection. ask your doctor if humira can work for you. this is humira at work. >> 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 money. my job is not just to entertain you but to educate you. call me at 1-800-743-cnbc. you, you have every single right to overpay for a stock if you want to. in fact, you can pay twice, three times what anyone thought was right even a few weeks ago.

i have no problem with it. even as it certainly isn't my style to radically overpay, which is why i'm not going to sweat how the ipo of the year, twitter, traded today. in an otherwise soggy session. dow gave up 115 points. s&p drop 1.32%. nasdaq declined 1.9%. you most likely all know, the company people thought would open at $22 a share a few weeks ago, which actually opened at $45 and change today. you watched the saga today with a jaundiced eye, as i did. i thought it was imperative to put the company's stock within the valuation confines of the other industry in industry, social mobile and cloud space. as someone schooled in relative evaluation, meaning how does twitter fit in with the rest of the cohort even if the cohort has scarcity value, i arrived at a $28 price in the cool of the night that i felt wasn't prudent to go above. because that's what the universe of facebook, yelp, linkedin and

other social, mobile, cloud plays yielded as being reasonable. i reiterate buying the stock up here. it is not prudent because of the kind of analysis i've been taught and almost always done me right. here's how that analysis worked. take a look at the revenue growth and potential growth of the earnings. there are no earnings here. we match it up against the prices of the other stocks in the industry to reach the conclusion about what's in line and what isn't. this is not an idle exercise, people. if we look at the stocks of kimberly clark, colgate and general mills, traded 18 times earnings but clorox, slower growth characteristics traded at 25 times earnings. you know what we would do? >> sell, sell, sell. >> clorox and buy the others in the group because it would make no sense. they are too similar to accept the rogue nature of one particular stock in the cohort. each industry has its relative model of what you would pay for it, drugs, utilities, the industrials, the banks, you name it. if you have one outlier that sells for more than the others, something's up. that's a sign of danger and i've got to throw the red flag.

the red flag is being thrown right now for twitter. even as you see your tweets on the ticker below. many are enthusiastic, much more than i am about the stock. i am very enthusiastic about the company and product which diverged today from the stock. i've also looked at the pricing history of all these kinds of ipos. yelp, pandora, linkedin, zillow, trulia, groupon, zynga. one year later almost of them were lower, dramatically lower for the most part. patience and prudence dictate buying a stock like twitter lower. if i were still running money professionally, i tell you what i would have done. i would have sold every single share not long after the stock opened. that's right. a few minutes after. because i would have said it was overvalued, on my historical comparison work, which is really all i have. yes, today i would have taken the money, steve miller style, and run.

why am i not jumping up and down and telling you you're in big trouble if you own it? why aren't i talking about the double bubble toil and trouble that you're going to find yourself in and how you're going to get hurt? let me give you the possible justifications. i have enough caveats for why this out of the gate move in twitter might not be so dangerous for you. for me, you know, i got to say i'm old. i have my rules, but you don't follow my rules. after spending the last few weeks yapping about the relative valuation, predicting a few weeks ago it would be $20 billion, i was being viewed, by the way, as crazy to ponder such a high price, i can safely say that everyone who bought it today has officially as they say in law school, come to the nuisance. you know you overpaid and you didn't care. that means caveat emptor. you've been warned and it didn't bother you one bit. as i said at the opening, there is free will. you have every right to overpay for a stock. believe me, if you bought it

today, plain and simple, you overpaid. second, unlike the disaster that was facebook, the system totally worked here. it took an hour and a half for the new york stock exchange to open the stock. the stare of nyse euronext was overseeing the process. the goldman sachs banker behind the deal, a seasoned pro was there to make sure it went off without a hitch. it did. unlike facebook, the buyers and sellers met in an orderly way. everyone who wanted stock got in. i like that. i don't like deals where only a sliver of the total stock is offered, which creates that pop. no one can get enough to satisfy. that leads to many flippers and long-term holders who have to reach horribly to buy the rest of their position in the open market, competing furiously with retail investors to so. six months from now, more stock will be released by the company and a more natural float will be established along with a better price than you got today. sure beat the horrendous facebook deal where the fundamentals were faulted and

institutional buyers who knew it was faltering were canceling. i hate that deal. every bit of it. it turned out it was, a huge number of people got turned off by the whole market because of facebook. twitter did a hot deal, not as best as it could have done. thirdly i'm a huge believer if i love a product, if you've done the homework and figure out the valuation and the trajectory of the earnings in the out-years, 2017, 2018, you can buy the stock. the first part of the logic is trumping the second part. people love the product, so they buy. as i found out today when i interviewed sir patrick stewart. he came close to admitting he's addicted to typing in 140 characters and reading 140 characters of others. i'm renaming him sir hash tag. which brings me to my fourth and final reason why i'm not perturbed with twitter's first day trading, even as i abhor the valuation. this is a company that is disruptive and changed behavior in this country and changing it in the world as surely as television did and the personal computer.

maybe even the cell phone. smartphone, that is. it's a product like facebook with user-generated content. it is still in its infancy with what everyone respects as being incredibly good management. it's possible one day twitter will be exactly worth what it's selling for, like my charitable trust bought facebook stock in the mid 20s. perhaps twitter can find a way to make huge amounts of money and faster than we think. maybe pepsico and unilever and fedex and mcdonald's get a return on their investments. why not, it could happen? most important, perhaps the opportunity is so great for twitter that twitter's worth $30 billion right now, really. maybe twitter is so exceptional, so beyond the four walls of the existing stock canvas, that it's reasonable in some universe this thing might be worth what you paid for. i thought apple or microsoft should have bought netflix to

get more mobile social and cloud exposure. i thought apple should have paid $20 billion to twitter just a few months ago to get this unique property and become instantly social to complement its mobile business. i think they were wrong. a much better buy than the stock the company keeps buying or the dividend. they paid for a fraction, they could have gotten twitter. what's all that buying back done anyway? seen the stock? if apple had shelled out that money for twitter, i bet the stock would be at $600 instead of the slow boat course that i think it's going to take to get there. if microsoft had done so, steve ballmer could still have a job and there might be more to twitter than you otherwise expect. let's not forget that perhaps this is another amazon. or a tesla, circa, like, last week. a cult stock where we don't even care about profitability. we just care the market is so huge that they get on the market. here's the bottom line. twitter is outrageously expensive. i understand the love.

in my heart of hearts, i look at twitter's stock as i look at the stock you can buy in the green bay packers. not meant to trade. it's meant to let you be part of the twitterverse. feel free to overpay. feel free to love twitter, the stock. let's just hope it's not unrequited. josh in kansas. josh? >> caller: hey, boo-yah from kansas, jim. >> boo-yah. i love kansas. i think university of kansas could go all the way. go ahead. >> caller: i will see. looking at bwld. buffalo wild wings. >> well, you know, there's a lot of stuff going on today by people who seem to have buyers remorse. they say, wait a second, maybe we paid too much and buffalo wild wings was part of that. it's called the whole foods effect. i believe in sally smith. i recognize the stock is up a lot and i see people taking a profit. no one's ever gotten hurt taking a profit. denise in new york, denise? >> caller: hi. hi, jim. i've owned activision blizzard in the past and made a profit.

they reported earnings today. i wonder if it's a good time to reinvest. >> you know, i think it's fine. i mean, look, this stock -- these are hit-base stocks. and i don't like hit-base stocks as much as i like, say, time warner, which just delivers consistent hits or cbs, consistent hits. those i like. i will probably, when the smoke clears, like disney which i think is doing a terrific job. as i said last friday, disney would trade down ahead and whole foods would trade down ahead and you can wait until the smoke clears. i got the smoke from a distant fire right now in my eyes. ever been in love? it's the same way investors feel about twitter. call it birds of a feather flock together and tweet. "mad money" will be right back. coming up, forgetting something? twitter sure had a good day, but things weren't so swell for the rest of the market. how long will the selloff last? and what can you do to protect

yourself? cramer's on the case. and later, french fried? pretzel burgers weren't enough to satisfy wall street's hunger for growth, and despite better than expected earnings, wendy's got cooked in today's take. is this just an opportunity to take a bite? don't miss cramer's exclusive. plus, oil slick? bakken shale big shot eog resources may have beat the street, but the stock cooled off in spite of its surging profits. could concerns over crude cause a further selloff, or should you use the decline to fill her up? cramer drills down with the ceo. 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?

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wait, i feel like we're forgetting something today. oh, yeah, that's right, there's a whole other market of 6,000 stocks that aren't twitter. today we saw a roller coaster of up, then down and then down some more in a poleaxing that could only send shivers over everyone who didn't get twitter at $26. a throwback to yesteryear or the last couple years. today the u.s. economy was one piece of the puzzle. most of the weakness started overseas, elsewhere. qualcomm and whole foods brought their own bit of jaundice to the cohort throughout the day, we have the bubble talk writ large because of twitter. that's a terrific reason to sell. the market got a twitter hangover that it wasn't able to get over. first, the big industrials that have been all the rage lately came unglued today courtesy of rumors that china is building up a head of steam. you know what's going to happen? the chinese government is going to tighten as soon as this weekend. i am not kidding. slow the economy. i don't know how much credence to put into this theory, but

remember, it doesn't matter how much credence i put in, people are selling everything that goes into china and will continue to do so tomorrow. don't forget the marginal prices are set by demand in china. not here. far more important today was an interest rate cut by the european central bank to ensure that europe's economies don't contract. the europeans have long memories and in 1920 germany caught the deflation bug. there wasn't enough money in the system to support any economic activity. that then led to hyperinflation. germany turned on the deutsche mark printing presses and that destroyed most of the nation's savings base. running around with wheelbarrows full of deutschmarks. they view the deflation, hyperinflation cycle as the rise of hitler and nazi party and do anything to avoid a repeat of what occurred. this move caught some people off guard. i can recall people saying just this very morning when i got up

at 3:30, we're waiting for a surprise rate cut. hmm, a few hours before we got the surprise rate cut. as soon as it happened, the dollar shot up which caused dollar denominated commodities to get crushed. on top of a slowdown in china, it spurred decline in oil. the question will be independents. the ones who doing fabulously. eog. the reversal in fortunes can be a buying opportunity for the stocks. i figure tomorrow is the day we start getting some serious downgrades of these independent oil companies i like. better prices coming. but there's also some unnerving action away from the commodities. for example, there's a lot of chatter of a strong employment number tomorrow and an instant taper of fed bond buying. we'll know shortly if that's the case. we have a real rout in tech. while qualcomm should have some spillover, i'm calling it a tad mystifying. if you believe in the power of twitter, you should believe in

all the power of the social and mobile and cloud stocks. people are presuming a worldwide slowdown in tech spending because of qualcomm, as if this is the ultimate bellwether of the group. i don't think it is. people get scared when they see a company they revere. qualcomm is however incorrectly revered and it's getting them to bail on so-called lesser companies. the market is not immune from what's going on with whole foods. a terrific growth company assumes the economy is getting weaker and the sales are not that hot. we have to extrapolate and say, wait, i thought the economy was strong. maybe i'm wrong here. get me out. you also have a propensity to be reminded of the risk of owning high-growth stocks, big decline in whole foods demonstrates. why not take something off the table? i saw a lot of this. >> sell, sell, sell, sell, sell. >> think of the analogous companies whole foods gives you. shouldn't we be a seller of starbucks? can you really still own hain celestial. they're very expensive stocks that just now reported and shot the lights out. if they were down big today, they were down in sympathy, even

if they shouldn't be down at all given the outstanding earnings we jsut learned about. why shouldn't we sell chipotle? don't they have that food with integrity thing? whole foods, chipotle, whatever. of all the reasons for the selloff, perhaps a sense that the party's over. a company that should have been worth $14 billion, as valued two or three weeks ago, it traded at more than double. the top callers were out in full force when twitter opened at $45.10. now i am not a top caller. i hate the whole notion of okay, now that retail is in the pool, at last after this big run courtesy of twitter, i know it is time to sell, sell, sell. still, though, i heard it all day. all day. bubble, bubble, bubble. you can frame a justifiable mosaic to sell. first the cult stocks are all being smashed. tesla and solar city, two of the four most overvalued stocks

along with netflix and amazon were whacked and whacked hard. that's been bubblicious forever. i think people who own highly valued stocks are selling other highly valued stock to buy this particularly highly valued stock. there's a sense the twitter ipo demonstrated insanity. not in twitter itself, but insanity in the market as a whole. that's as good a reason to cash out as many. no bell goes off at the top. here's something you don't hear at the top, by the way. all right. you don't hear that. but people thought twitter was a pseudo bell. what do i think of all this? we have a lot of stocks that have moved up a great deal. the market has pretty much been one way higher for months now. we're due for some selling. weakness in bellwethers like qualcomm and whole foods and unjustified strength in twitter, it's too compelling for many professionals to ignore. here's my bottom line. i'm looking for the stocks that sellers are throwing away. in the end, there are stocks and companies who reported terrific earnings. my charitable trust has been waiting to buy on a pullback. i don't cut and run. i stop and evaluate. the trust was actually a buyer,

not a seller. these kinds of multifaceted selloffs, keen on growth stocks, are always vicious. when they're happening, they always feel like the end of the word, don't they? they usually last three, four days. today feels like day two. particularly because the bonds are tame and interest rates have seemed to have gone higher. steven in new york. steven? >> caller: hey, jim. big fan. >> thank you. >> caller: question for you. pandora media. what's your short term, long-term outlook, in lieu of apple iradio? seems like they came out with their numbers and listeners were actually good last month. >> pandora is another cult stock. i can't really opine, other to say people love pandora. i can't wait until songza comes out. there are situations where people will pay anything for a stock, and pandora is one of those.

how about waxy in new jersey? >> caller: hey, jim, my 10-year-old daughter, emma, wants to say something to you. >> sure. >> caller: boo-boo-boo-yah. >> there's a kid with horse sense. what do you got? >> caller: talking about the social space, if you're playing something that's disruptive like that, if that's how you feel, you're not worried about valuations. you're looking at the upside, aren't you? >> i always care about valuations. there are times that some people, not me, some people are willing to pay any price. i think linkedin is the game changer and own that business. i like linkedin. linkedin could be very cheap two years from now. earnings that came out two years ago. that's what's important. i believe in that. growing pains? we're seeing a selloff in growth stocks. you know what that means. pretty soon you're going to have to start hunting. after the break, try to make you more money. coming up, french fried? pretzel burgers weren't enough to satisfy wall street's hunger

for growth, and despite better than expected earnings, wendy's got cooked in today's tape. is this just an opportunity to take a bite? don't miss cramer's exclusive.

what just happened to wendy's today? here's a fast food company, classic third wheel in the burger space between mcdonald's and burger king. last year, totally on fire, rallying from $4 and change to $9 as of yesterday. you made a killing if you own wendy's, thanks to the hard work

of an activist investor and a new ceo, emil brolick. they're in the process of refurbishing stores. earlier today mr. brolick showed me a redesigned spot, a place that's beautiful, and sampled menu items now and then just for research. company cleaning up the balance sheet, shifting more toward a franchise-based model. we like that. the company reported this morning. if you own wendy's today, you didn't make a killing, you got killed metaphorically speaking. going to find out what's going on. i think this is a testament, frankly, to the power of expectations and what happens when expectations get too great. set by analysts, by the way. it doesn't matter what management will do at a certain point. how to execute is what wendy's does. it is the top of game in the quick serve business. so you know, let's not write this off yet. wendy's delivered better than expected numbers. eight cents. two cent beat thanks to better restaurant level margins. the stock went up a lot this quarter. same-store sales were a bit weaker than expected.

the company only modestly raised guidance for the year and didn't give a real forecast for 2014. all this caused the stock to get slammed. falling down 11.44% today. still up huge for the year. is there buying opportunity in a stock that hasn't given you too many of those lately? let's talk to emil brolick, president and ceo of wendy's. welcome to "mad money." >> jim, how are you? >> thank you, thank you for bringing our food and for having wendy's on. okay. we did -- i tried this delicious burger out today. i saw the beautiful new store. and to me, even though there was a glitch in the stock today, i don't think there's anything that was that earth shaking that happened in the quarter. >> actually, we felt great about the quarter. comps up 3.2%, 5.9% on a 2-year basis. when you consider that's the strongest two-year performance we've had since the first quarter 2005 eight years ago. you know, that's great. 170 basis point increase in margins.

17% increase. i consider a very solid quarter. >> i mean, i'm looking at goldman sach's research. they say point blank, we view figures broadly disappointing given the company's high profile pretzel bacon cheeseburger. is this a case where the expectations were too high but the company delivered what they were supposed to? >> if you look at this in the >> if you look at this in the context of other reports in our space, this is a very strong report. >> let's speak broadly what's been happening with the company. lunch, thank you, again. >> absolutely. >> there was a great trajectory from dave and the company and it fizzled, nelson peltz gets involved and you get involved. the trajectory has been straight up.

perhaps investors got ahead of themselves but the turn is for real. >> absolutely. we're going through a total brand transformation. what i mean by that, we're touching all elements of the brand experience, so everything that the consumer experiences is going to stay a cut above for them, whether it's the employees in the restaurant, the friendlier employees, new uniforms, new packaging. the physical space. of course, the food. we're always going to be about the food. quality was our recipe in 1969. quality is our recipe today. also, we have a tremendous heritage of product innovation. dave was first in salads. dave was first in chili, baked potatoes, and many products. this is a brand that put together 16 consecutive years of same-restaurant sales on the backbone of increases in innovation, and i think we can see that performance again. >> okay, my wendy's in our town of summit, boarded up right now. when it opens again, what will it look like, and what could it mean to sales? >> you know, we have 180 image activation restaurants open now. by the end of the year, we're going to have 300 open. okay?

and our expectation is these restaurants, once they settle in, will average some place between 10% to 20% increase in same-restaurant sales. so, excuse me, step up in sales. and we -- every expectation that that will occur in your restaurant as well. >> at the same time i'm seeing commodity costs come down. >> correct. >> 2014 has to be a tailwind. >> yeah, you know, we think there will be quite a modest increase in commodities in 2014. we'll speak specifically about that, and january 13th when we preannounce the 2013 and give guidance on 2014. >> okay. could you just tell me, i want everyone to know this. talk about patrick doyle, about domino's. the delivery people end up owning the stores. we talked about cheryl bachelder, i know you know her from kfc days. they're the franchisees, people who worked behind the counter. the people i met today, the people who work at wendy's, how

many of these people are people who have came up through the ranks and own their own stores? >> a huge percentage of them, jim. we have such invested equity on the part of our franchisees. i'm proud of them and the commitment they make to the wendy's brand. they're very interested in growing this brand. they're the backbone of the brand transformation along with company operators. they drive this and put their capital into this and are very excited about it. >> how about cost of labor? we have affordable care act. a lot of people feel that just the base level of labor after being steady for a long time might start going up in 2014. >> yeah, you know, that's definitely a possibility. but we're very excited about the growth and the brand. we feel when you're growing top-line sales on a consistent basis, we're going to be able to deal with any increases that we see in labor overtime. >> let's go back to this idea of innovation. i told you i love this burger, i loved it from the day it came out. i read today that it's so long, pretzel burger. i know in the quarter, in the last month of september, sales did tail off. was it people got tired of it

and just, it's a novelty thing? you always have to refresh? >> they do like product innovation but they also like variety. so we have a bacon portobello melt on brioche coming in in the next few days. >> that's what i had. holy cow. >> it melts in your mouth. this product melts in your mouth, okay? and so that's going to be something that we see driving sales toward the end of this year. and you're certainly going to see pretzel bacon cheeseburgers and pretzel club chickens come back in the future. >> the overall nature of wendy's was always it's not mcdonald's, it's not necessarily panera, but the store i saw today, panera, chipotle. it made me feel it's a lot more panera than mcdonald's. >> if you think about that in the context of quick casual restaurants like panera, the key thing here is we believe that we're giving them, our consumers, every bit that same experience but a dramatically lower cost point. >> right. that's really important.

>> much bigger opportunity, we believe. >> thank you, sir. okay. that's emil brolick. president and ceo of wendy's corp. listen, the stock went up a lot. it's been a huge winner. remember, it was at 5 1/2 five months ago. profit taking made a lot of sense. i think the story is multiyear, not several day. stay with cramer.

>> announcer: "lightning round" is sponsored by td ameritrade. in honor of throwback thursday and the ipo, we took a look back at our twitter time machine and found some fun stats. i sent my first tweet back in 2008. after quick math which i did in my head, i sent 17 tweets a day. i can't decide if i work or tweet more. don't tell my executive producer that. anyway, now it is time, it is time for the "lightning round" on cramer's "mad money." what is that all about? rapid fire calls. >> buy, buy, buy. >> sell, sell, sell. >> play this sound and then the "lightning round" is over. are you ready, skee-daddy? time for the "lightning round," cramer's "mad money." let's start with jack in new york. jack? >> caller: boo-yah, jimmy. jimmy, you're my hero.

hk. buy, sell or hold? >> i'm tired of halcon. they've got to get it together and meet production goals. that absolutely to have meet production goals. they're not. let's go to nick in ohio. nick? >> caller: boo-yah from ohio. >> boo-yah. >> caller: all right. sierra wireless. is it a keeper? >> you know what, i'm not -- you know, i'm not crazy about any of the component plays to wireless right now. i'm going to take a pass on that. let's go to brad in washington. brad? >> caller: hi, jim. enjoying your show. >> thank you. >> caller: from seattle. throwing out a seattle seahawks russell wilson boo-yah to you. >> does he watch the show, you think? does russell wilson watch the show? i mean, preparation is everything with him. >> caller: good to know. so ticker symbol sbx. freeport mcmoran. is it still oversold? would you buy, hold, or fold?

>> reminds me of percy harvin. freeport, i don't like. it's overvalued. there are other plays in the industry i think are cheaper. i'm not going to recommend that stock. let's two to raj in pennsylvania. raj? >> caller: boo-yah, mr. cramer. >> boo-yah, raj. >> caller: hey, i would like to ask you about alliance fiberoptics. this company recently reported results. >> yeah, you know, it's -- i don't know. i mean, the fiberoptic -- you know, look -- buy google which is doing some fiberoptics. it's a cheaper stock. let's go to joel in new york. joel? >> caller: yes. >> you're up. go ahead, joel. >> caller: boo-yah, jim. this is joel from fayetteville, new york. >> nice. >> caller: a compliment to your staff. donna is a lovely young lady. >> isn't she? she rocks. she rocks. go ahead. >> caller: she does.

in july i bought omed. >> right. >> caller: i've been kind of disappointed. i wanted your opinion. >> my opinion is the speculative biotech stocks, we are not recommending them for the rest of the year. we all think they should be trimmed, not bought, because they've gotten too hot for this show. i want to go to billy in ohio. billy? >> caller: boo-yah, jim. thanks for taking my call. >> of course. >> caller: i want to ask you about your outlook on humana with the upcoming -- >> humana's quarter was really beautiful. >> buy, buy, buy. >> what can i say? i hope the stock comes in so people can buy it. that was a beautiful quarter. let's go to burt in kentucky. >> caller: hi, jim, how are you tonight? >> how are you, burt? >> caller: thank you. i have a question about transocean. they've had significant problems in the gulf, and the stock is somewhat depressed. what do you make of it? >> i don't know. good numbers and think you probably have another couple day or two going up, but it's not my favorite.

i do like schlumberger more. let's go to farnum in texas. >> caller: i'm truly amazed at your wisdom and knowledge of this vast stock project. >> thank you. i always wish i was smarter and have to work harder. what's going on? >> caller: help me with this. do i buy, sell some, or do i hold home depot? >> no reason to sell home depot. i want to be a buyer of home depot. it's a great american company. mr. blake has done a terrific job and it's not expensive. i bless home depot. that, ladies and gentlemen, is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade. ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading.

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alka seltzer plus night fights your worst cold symptoms, plus has a decongestant. [ inhales deeply ] oh. what a relief it is. sometimes the market will simply give you a gift, like when a best of breed oil company reports a stellar quarter, then oil drops, allowing you to buy the company's stock for less than what it was before we knew about the terrific quarter. that what seemed to happen here right now the last 24 hours with eog resources. big independent oil and gas company, all over the world that has incredible shale assets here

in the united states. they're the biggest oil producer, one of the largest in the bakken. delaware basin area which is red hot. come out with a monster earnings beat last night with earnings per share coming in at $2.32, excluding one-time items when wall street was looking for $2.06. they say they're going to grow oil production. they also reaffirmed their fabulous five-year plan, which calls for a sustained production growth through 2017 as long as the price of oil stays above the mid 80s. eog opened up this morning, opened up big. the price of oil went down. a lot of the growth stocks went down. this one went down with it closing up $5. i do know these rotations tend to last for a couple days. you lucked out today if you don't already own the stock. this may be the chance. let's check in with mark papa, executive chairman and former ceo of eog resources. mr. papa, welcome back to "mad money." >> thanks, jim. good to talk to you again.

>> first thing i have to say is congratulations. i know it's your last quarter. people say, wait a second, executive chairman, is he still involved? i thought he was the ceo. i'll give you a chance to explain the change and why you're still with the company. >> yeah, i'll be with the company until the end of the year, and so this was my last earnings call, and at the end of the year, i'm going to step down and remain only on the board of directors. and i'll remain just as a simple board member from that time forward. >> all right. and you think that the job is done? time to do other things? because, again, people don't like change. they're used to you being eog resources. >> yeah. i'm 67 years old and i need to pass the torch to someone else. bill thomas who's been with the company 30-plus years is more than able to pick up the torch and running with it, but i'll still be able to provide guidance to bill from my seat on the board. >> excellent. >> so i think it's been a good

transition. >> congratulations. there are a couple changes in this quarter you've got to tell us about. you had previously not said that bakken was not producing as much as eagle ford. technological changes you've done seems to have been a game changer for you. tell me what happened so bakken is full bore now? >> yeah, what really happened in the bakken is we've taken some of the completion technology that we learned from the eagle ford in the last year and applied it to the bakken and it's really made kind of a night and day difference in the productivity of the new bakken wells. productivity in the new bakken is wells is up about 50% relative to some of the completions we've made a year ago, so we now view the bakken as a pretty big growth area for eog, whereas a year ago we viewed it more as a stabilized production area. so it's a big upside for eog.

>> and same thing happened with west eagle ford, previously i thought that was not pay dirt. >> exactly. a year ago the western eagle ford was thought to be a little bit inferior in terms of quality scared to our eastern eagle ford where we were routinely making wells started out at 3,000, 4,000, 6,000 barrels of oil a day. in this intervening year we're now hitting home runs pretty frequently in the western eagle ford. last year, due to our well completion technology, we've turned western eagle ford into a home run area, bakken from a stabilized to a growth area. we don't have to find new areas but continue to improve existing areas. eog will continue to hit the ball out of the park for the next five years. that's the real growth story for eog. >> delaware basin, where are

they with the new completion technology? >> exactly. delaware basin is going to be an emerging growth story for us, and we feel good about that also, jim. >> all right. let's step back because one of the things i'm concerned about is i don't want to get -- you and i have always felt, look, there's a lot more oil than people realize. now i'm starting to hear from other people, wait a second, jim, you're being too conservative. there's even more. i don't want us to get ahead of ourselves, but i did have mr. sheffield on. i know he works with core labs. he is talking about numbers about permian and sprayberry wolfcamp. are we getting too enthused? >> in regards to permian i think we are, frankly. if you look at our investor relation charts, see the growth

to date in the permian has not been anywhere near what the growth in the eagle ford and the bakken has been. and when you really look at all this, it kind of tells us that year over year growth in u.s. oil in 2012, we believe will not be duplicated in 2013, nor in 2014. so we are seeing a renaissance in u.s. oil growth, but i think it's being kind of overestimated as to what the overall impact is going to be over the next four, five years. it's a major game changer, no doubt, but it's now being overestimated, in my opinion. >> fair enough. i needed to hear that and i know that you are the dean of the group. i want to wish you the best of luck with the new role that you're taking, and how great you have been for shareholders and for all of our viewers at "mad money". thank you, sir, very much. >> thanks a lot, jim. >> good to talk to you. that's mark papa, executive chairman of eog resources. sobering view. correct view. stay with cramer.

and just give them the basics, you know. i got this. [thinking] is it that time? the son picks up the check? [thinking] i'm still working. he's retired. i hope he's saving. i hope he saved enough. who matters most to you says the most about you.

at massmutual we're owned by our policyowners, and they matter most to us. whether you're just starting your 401(k) or you are ready for retirement, we'll help you get there. help the gulf when we made recover and learn the gulf, bp from what happened so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, where experts watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger.

if it weren't for twitter, this session would have been so different because the focus would have been on two growth

stocks that everyone loved coming in. only one is truly deserving of your adoration. whole foods and qualcomm. whole foods is the fastest growing of senior growth retail stocks and qualcomm is the same in semiconductors. qualcomm posted pretty consistent 30% revenue growth and whole foods slipping 5.9% to 7% same-store sales growth. both top of their game for respective groups. that's why it was so jarring to hear both lower their growth rates because both companies are core holdings in many portfolios. i've got to tell you this. i have been a fan of whole foods, but i've not been a fan of qualcomm. it's given you high growth as phone companies transition from 3g to 4g, i find the firm inconsistent. it would be perfectly in character for qualcomm to raise its growth rate back up because of new orders or because there's less concentration at the top tier of customers. something they talked about today. there's a reason why a stock with a 30% revenue growth is only up 12% this year.

i'm obviously not alone in thinking qualcomm produces too many surprises. the actual share count has been pretty consistent. it hasn't gone down. 2% yield. with qualcomm, i'm thinking great company, but why can't these guys forecast better? someone is always looking to start a position. i'm sure this time it will be no different. management held out hope for a rebound. i think the benchmark of weak semiconductors. whole foods on the other hand has consistently earned our trust, up 41% coming into this session. i feared the reaction to this quarter and i told people not to buy. i was disappointed as we are meant to be by the guidance of the slowdown. but whole foods is not just another company. it is, as co-ceo walter robbs said on the call, this is a no excuse company. so it was just a sense that the bar was set too high for the quarter given the company's aggressive expansion.

whole foods gave out a huge amount of fodder to the bears. john mackey citing the three c's of growth stock obliteration -- cannibalization, competition, and currency. the store distribution, $374 million out of whole foods' $11.6 billion in sales. now, i suspect some of this weakness is temporary. mackey explained, for example, the cannibalization in boston where the company is expanding aggressively, the stores will be producing gangbuster numbers. fresh market and the private trader joes. i think the plethora of me-t00s that have come into the market has to put whole foods in the penalty box. these guys are the best of the best. the theme of the chain, healthy eating is accelerating. the lowering process is about time and price, meaning the stock has to go a little bit

lower and stay lower for a couple quarters. all of that said, once again whole foods will be de-risked and you've got to buy the stock. two terrific growth companies. one worth keeping. the other worth exiting. at least right now the sellers will dominate in both stocks. stick with cramer. mad about "mad money"? immerse yourself into cramer's world. while you watch the show with zeebox. on your phone, tablet or on the web, get sneak peeks, go behind the scenes and join the conversation. download the free app today for the ultimate cramerican adventure.

keep up with cramer all day long. follow @jimcramer on twitter and tweet your questions. #madtweets. >> from inside the house. computers can steal millions of dollars and you won't believe where the money goes. tonight on an all new "american greed." okay. twitter, you've come to the nuisance. you understand the risk.

you are willing to accept it or take the money and run. i do think it is ridiculously expensive. maybe one day it will be worth what it's selling for. until then, just please understand i am not blessing this price. i like to say there's a bull market somewhere. i promise to find it for you right here on "mad money." i'm jim cramer and i will see you tomorrow. people's life savings. >> we could get 10% a month on our money. sounded awful high, but awfully good, too. >> narrator: he is accused of profiling his clients. >> the older you were, the more vulnerable you were, the more likely you were gonna become joe mccool's next target. >> narrator: but after the money runs out, mccool loses his cool. >> if he didn't like what you had to ask or say, he would hang up on you. >> narrator: and, finally, when no one is looking, joe mccool slips out of town. but first, in lexington, kentucky, jim hammes plays his role perfectly -- the hardworking family man. >> i thought, "wow, i hope i have a great husband like that