bets, this is probably the best way to do it. use things like the put spread we're talking about in morgan stanley. looks like airtime has expired. for more you money. i'm here to level the playing field for all investors, i promise to help you find it. mad money starts now. hey, i'm cramer, welcome to bad money. i'm just glad this week is over. my job is to educate and teach you, explain this stuff. call or tweet me. be nice or i'll block you. tumultous, dramatic, nausiating

you pick the word, that what it felt like today, nasdaq tumbling, a brutal end to a brutal week. the bulls paired with hard ones that more than wiped out the positive sessions. >> house of pleasure. >> the house of pain. >> today could have been a lot worse considering jpmorgan reported a truly ugly quarter. jpmorgan rarely misses. this was a terrible effort, particularly by wells fargo which gave you a terrific number and roared higher before tempering like everything else at the end of the day. jpmorgan is a reminder that the mindfield of earning season is now in frochnt of us. stock is going to get hammered

no matter how much good history there might have been before it came. which brings me to our game plan for next week, still chalk a block, with earns. starts with city. citi reports -- flunked tests last month. you think the quarter is going to be awful, especially after the jpmorgan debacle, doesn't matter because this market is in love with dividends and city groupcitigroup, only a buck in e off the 52 week low seems over done, but remember we had a big interest rate decline. whatever number you see, the next will be worse. no buy back, no earnings growth,

in other words, stay away. tuesday we get a couple of tests of i love the low valuation to death pieces, it is prodominant for the last couple weeks, people are getting their arms around it. the first is coca-cola. not a lot of growth in it. it's not cheap. this might be a focal moment, let's say coca-cola reports a hideous number but it doesn't go down, low flyers like coke isn't over, money in. same thing's going to happen when intell reports after the close tuesday. intell has been dicey. every time it is run up to this level it is repulsed when we see the actual earnings but this time it is different with a nice

yield. they love yield. second it is profitable even though it has almost no growth, that's what this market wants right now, the polar opposite of what we had the last year. such dead money so long have now become walking dead stocks, but in this version of the show they can come back to life in something particularly if someone adds a cost saving structure, which i think one of the two will do. i think people are falling for the false f dichotomy, ibm versus google. the old versus the new. the perception is ibm is a growth company, not true, google

scoring 16 times earning, it's cheaper than the average stock in the s&p 500 by this great growth. perception has been killing google. not so hot. meanwhile the idea ibm is about to return to solid growth, betting the market will figure out on wednesday that both google and ibm will have great growth in 2015, still i think ibm's current quarter is not good, but because warren buffett owns, people will buy it anyway. i think google's quarter will be good, my check shows it remains the gorilla in the search base. bank of america. by wednesday, i bet we will have a reset where we all hate the banks so much this will be knocked down more than it got

clocked this week. this stock has been turned on, it's been turned on. these people thought that they had what is known as reverse head and shoulders suddenly i hear it is the ultimate said and shoulders play. if bank of america gets hammered you might want to take some down ahead of the quarter's announcement on wednesday. thursday another contrast day, i keep telling you this market loves value and hates growth. i'm trying to drive that home. mcdonald's last numbers were awful. it since has advances since that announce. . what happened against us? one of the worst performing stocks of the market, chipolte, high quality growth out of low quality value will end, i think

their report will be another chance for a reality check unless it improves on 9% same sell stores it had last time i think it gets clubbed into a limp burrito while mcdonald's slices through $100. life's unfair. so is the market. the saber ipo will come on thursday. those ofs us old enough to know what happened 15 years recalls a transition processing company. i look at this one more giant steaming piece of ipo merchandise that the bankers are going to throw at us, it could break the camel's back. there's no way it ask handle a $3 billion deal now. no way. so look out below if the saber

deal actually comes because unless the banker's price it right, i don't think it will, we will have a lot of hurt on us by sabre, i've been worrying how it is turning down, the stock has told you how bad things can be. it now has some dif iddent protection. it is tough-owned even though it is dirt cheap. if something doesn't happen i sense scoring frustration. finally there's agagenuine fork fire works next week. i bet the pressure goes up higher. you will be a winner if you wait

until after pepsi reports, you buy some. here's the bottom line, we are trying to figure out when value ebbs and growth flows, so far by next wednesday with ibm versus google, we'll certainly know for sure. how about we go to johnny in pennsylvania. here's johnny. >> yes, jim here in pennsylvania near the ohio border. >> you're on the other side of the state, but what's up. >> i believe ford motor deserves to be in the early 20s before gm goes to 50, am i crazy? >> you know what gm has been put, this is the worst address of the block. ford can't move out of it's way until they find texas is better. until they do it will be in this range. >> let's go to dylan.

>> long term shareholder here, helped through the last earnings report when it hovered around $80 and i cashed in over $90. i'm concerned about the wild oats. >> i questioned ceo of hanes, he said even if there wasn't walmart hans will make it through. we will get through this, sometimes we have to do it with next week's likes and dislikes, what's in, what's out. right now values love, growth hated. by wednesday we will see a

change. i'm wrapping up my best for your buck stock count down with an under $10 beauty. plus light them up if you have them, i'm looking at ecigarette maker njoy, if you want to know who the key stock is, stay right here where you are because mad money will be back after this. >> coming up. >> seven and a half million americans have signed up for health care through the exchanges. >> the legions of the newly insured could mean more than a healthy country, a major wide change could soar, that stock is your best bang for your buck under $10. stick around for the big reveal. and later, discount shopping, after the recent sell

off, special set of skills, get a heads up of how cramer looks for value on his play book, all coming up on mad money. >> don't miss a second of misdemeanor money, follow jim cramer at #madtweets or send an e-mail or give us a call. miss something? head to madmoney.cnbc.com. gunderman group.

gunderman group is growing. getting in a groove. growth is gratifying. goal is to grow. gotta get greater growth. growth? growth. i just talked to ups.

they've got a lot of great ideas. like smart pick ups. they'll only show up when you print a label and it's automatic. we save time and money. time? money? time and money. awesome. awesome! awesome! awesome! awesome! awesome! awesome! awesome! (all) awesome! i love logistics.

>> maybe, just maybe, twitter holds the key to this market. maybe that's the stuff we have to watch every hour, make that every minute of the trading day. if you watch squawk on the street, you know we are always talking about what's the key to this market, oh, sure we do it a tad feciciously because we did it as a throw back to the old days, i was on once a week back

then, every wednesday, i always came with a stock that was the one stock that i said you needed to keep an eye on in order to figure out what is happening with the entire market. in the great dot com ballooned, and it gave trading hungry viewers the context they needed. so this morning, the key to this market, i'm ready, microsoft, i'm following it like a hawk. if you are old enough you can see it as a flash back. my own name for the stock, that got stolen for commentators, most of whom i will never forgive, why microsoft, this market hates high growth and worships at the alter of low growth, low price earnings with multiple tech with dividends,

and that fits microsoft to the t. it is entirely possible you get a value added restructuring. [ applause ] never easy for my part to agree. but he did. and it touched him for this moment. i realize i should have given you a contrasting key as well, and i've got it, drum roll please -- the polar vortex opposite of microsoft is, twitter. yep twitter is everything microsoft isn't, it's cool, it's loved, no dividends and no earnings, sure it might break even, it might make 24 cents in 2015, it makes twitter obscenely expensive versus the cheap mister softy. it has great potential for

earnings, maybe stocks in 2015, twitter's price tag make season investors blanch but not reef tail investors, they bought twitter the stock without caring whether the company will be profitable, that is what made it rise to the $74 range, it has charted back down to $40. twitter was part of the mania, if you bought twitter around the opening price you were up one until the beating it took this week. the vast majority of the recent waves of ipo's have produced losses, not gains, a sign of terrible action. many of these losses now sizable. first date buyers for twitter are now under water, some dramatically, that is how

vicious the tears have become. what is the pair key to this market. if you see twitter start to rally and microsoft begin to really decline in this incredible rotation out of hyper growth into super value, will at least being drawing to a close. however h if twitter keeps spieralling down and microsoft inches higher, the nose bleed is not over for the growth stocks. twitter and microsoft, there's a pair that holds the key 2014 style. after the break i'll try to make you more money. >> coming up, corner show show downs, which of these retails stand to grade up for the incoming insured. the answer is cramer's best bang for your buck. and later, americans are skipping out on cigarettes and reaching for alternatives instead.

find out what this trend could mean for your money when cramer talks to njoy off the tape. tap. aflac.

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>> man oh, man has this market been giving us a real beating. just a sea of red across the tape yesterday and more red today. this kind of sell off makes you feel like a fool froening stocks, we know that.

there's one stock, the under $10 stock for today's count down that would have made you money during yesterday's hideous sell off, i'm talking about rite aid which soared yesterday and another 10 cents today. the company crushed the expectations who have been betting against this one. before we get into the details let me give you a round up on the mad money count that happened all week. we have been looking for the best performing stocks by price range, starting with the over $500 crowd and counting down to the under $10 stock where we are today. i picked out my favorite name trying to figure out what will do well. counting down by price. priceline at the top.

and harmon. spirit airline. gt advanced technology i told you to by on weakness not strength for the 10 to $50 with range. and that brings us to rite aid up 30% year to date. i told you to buy it ahead of the quarter and the only stock i suggested you buy. even after this week's run, it ended down, the market is complying with these down openings so maybe you can get a better price. rite aid has clearly reached ininflection report. it has already turned and broke

on through the exit doors. just over a year ago the company was barely breathing. and let pretty much for dead. with the stock trading about a buck. since then this company has gotten it's act together and i think yesterday's results are the definite prove that the bulls are correct and all the bears and short sellers don't have a leg to stand on. even with this epic move they have a lot going for, many for the better. let me detail them. first the big picture, the stuff that benefits all the pharmaciy names, regardless of how you feel about the fooaffordable ca a act, it will allow

>> they have a database of more than $1.6 billion transactions

and rite-aid is bringing in a new level of targeted marketing campaigns, all these efforts are how you get a truly stellar quarter like the one rite-aid reported. off a four cents basis, 50% higher. revenues came in higher than expected while earnings for tax, is a lot of debt were much higher than the analysts were looking for. they got this wrong but rite-aid got it right. 2.5 to 4.5% sales growth is incredible. in reality they have conservative numbers, it could turn out higher. it still sells for less than 15

times earnings, much cheaper than cbs and wall greens, our count down ends with rite-aid, best for under $10, until yesterday i would say it is a speculative name, it is still some what, but it has turned itself around. you want to wait to buy this one into weakness because given the viciousness of the market you would probably get a much lower entry point than you would other than any point than told. let's go to ian in new york, how are you. >> i'm good >> i'm good . >> i have stock that has done well for me for the last six months and it is up 45 points in the last 30 days. do you think it is because of a

poor valuation or the fed miscommunication. >> no this is about the rotation that i keep talking about. i'm glad you asked. i'm been thinking to myself and to cliff mason, my head writer, have we talked about the head rotation too much but then i talk to individuals and they don't understand it. activist expensive stock, look at bristol myers, look at fiezer. >> joe: those are out of activi activist. let's go to jude. >> hey what's up. you're on. >> is bristol myers a good investment? >> all right, bristol keeps going down. people say don't you love bristol-myers, this became one of the most expensive of the drug companies now it is getting

cheap again. it almost yields 3%. when it yields more than 3% we pull the trigger. you know i think the stokt market when you invest wisely is the key to financial freedom. and i always say it has something for everyone no matter what your budget is. you know i got the stocks for it and next up, you shouldn't be buying any stock until you know the answer to this question. stay with cramer.

>> every week we focus on the basics, why, because almost nobody tries to teach this stuff. every high school teacher has to sit through a health class where they teach you not to get std's. you can get a graduate degree without learning how to balance a checkbook. that drives me nuts. money is really important. there are few things that can

ruin a relationship or ruin your life faster than money troubles and that's why i'm running these play book segments i know you like so much. week after week i teach you how to handle your finances and the basics of investing, the stuff we gloss over to in our quest to find you the next bull market. if you have a question to ask, ask nicely, with #getaman. and of course go to cnbc.com for more great financial advanice. we have a question who asked what range or number is good. that is a good question if you are picking your own stocks. all this week i have been saying never judge a stock by it's cover, it's dollar price, that's

meaningless, you judge them by price to earning multiple, or we call it the p/e. this is a concept we use on the show constantly. to understand it, you don't even need to know math. just elementary school math. price of the stock is letter p. divided by earnings, that's e. equals m -- the price earnings multiple, i mean the earnings estimate for the next year, not the current one. this is all about the future not the past. we use the future because that is what the major institutions are looking at. the reason we use this method is simple because it gives us an apples to apples way to compare stocks. right now general mills trading at 16 times earnings kellogg 15. does it mean general mills is

more expensive? no. this is where it gets complicated. the truth is the priced earnings multiple loan doesn't give nearly enough information to assess the stock value. the multiple tells you what investors are paying, but it doesn't tell you why. so consider this, remember salesforce.com, even after being brutally malled, still sales 77% earnin earnings, you may see the comparison and say it doesn't make sense. general mills is slower stay with bounciful yield. kels kellog kelloggs, king of the cloud. these two companies are not just in different leagues, they are playing a different game, part of that is because of growth. future earning stream, general

mills have a slow grower of 7.2% over the next five years, earnings will increase 7% annually. investors won't pay for those. salesterm.com 40% earnings. which years from now it will be much more valuable. giving it the sky high numbers i mentioned. so you always have to consider verse us the growth rate. stocks with faster growth, higher priced earnings multiples, brings me to a whole new values metric that under pins much of the analysis we zo on t do on the show. the pe multiple to the growth rate. divide the multiple by the long term growth rate. we are driven by peg rates

whenever we make comparisons and judgments. good news for michael, when it comes to the peg ratio, we can talk in more absolute terms about what is good number and what did is bad. you need some black and white in this crazy process, my rule of thumb that i have arrived at is i don't like to pay more than two times a company's growth rate for any given stock, more than two is too pricey. if it is 10% growth rate but trading at 20% earnings, that's too expensive. that's only a rule of thumb. sometimes year earnings based to be cheap. by the same token i consider any stock trading less than one to be darn cheap. many stocks deserve to be cheap. some will only get cheaper.

but when you see a high quality company trading for less than one times growth you might have terrific trading opportunity. if it has that thousand dollar price, priceline sales for 18 times earnings, 19% growth rate, yes that stock is actually inexpensive using this correct methodology and rigorous one. for those who are new no the game, we used price earnings multiple to value stocks in relation to each other. whenever making a comparison always consider the growth rate too. if you only take one thing away from the segment, just remember you can't value stocks in a vacuum. you can only value them in relation to each other. stay with cramer. [ hypnotist ] you are feeling satisfied

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♪ this is a wake-up call. geico motorcycle. see how much you could save. gunderman group is growing. getting in a groove. growth is gratifying. goal is to grow. gotta get greater growth. growth? growth. i just talked to ups. they've got a lot of great ideas. like smart pick ups. they'll only show up when you print a label and it's automatic. we save time and money. time? money? time and money. awesome. awesome! awesome! awesome! awesome! awesome! awesome!

awesome! (all) awesome! i love logistics. >> it is time for the lighting round. are you ready?

time for the lighting round, want to start with ross in illinois. >> boo ya cramer, my stock is doing well, great new menu, delicious food, stock is wendys. >> i don't think wendy is terrific, i think the stock is coming down. it has had a big run. if you can get it under $8 that would be a pull trippinggger mo. ian in missouri. >> boo ya, what is your input on westport invasionovationinnovat >> it has been a nightmare, the company misses and misses and misses, enough already. let's go to sal, new jersey.

>> i'm from camden, new jersey. >> i will be there on sunday. what's up. >> my question is on atk. >> they got a huge contract this weekend. this stock is coming down. peter in oklahoma. >> my cramer, peter from tulsa, oklahoma. >> go ahead. >> i'm calling to ask you about lindsay. >> i like irrigation and culture, i think it is a good stock that nobody talks about. and that is the conclusion of the lighting round.

>> chr >> krispy ckreme stocks not doig so well. i'm sinking my teeth into this one. mad money coming up next. >> eat it. just have a bite. >> take a bite. >> i'm not going to eat it. >> the camera adds 47 pounds, i can't get away with a donut. so what's my favorite stock trading in the 100 to $500 bracket right now. i'm talking about harmon thousand dollar speaker. let's go to robert in colorado. robert. >> you okay, man. what happened. >> holy cow that was scary.

>> i bet you wear your cup tomorrow. did you see i didn't skip a beat. >> hello. [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade.

>> if you want to see where the world is really headed,

sometimes you need to forget about the public trading stocks that we talk about all the time. got to go off the tape with private players that can give you a better glimpse into the future. on december 10th last year we talked about electronic cigarettes, anin innovation to help stop people from smoking. it is already worth $1.5 billion in the u.s. sure they should be regulated. sure the story about the dangers of getting the liquid nicotine on your skin scared the heck out of me. but no way is not a improvement over the real thing. there are no public traded ecigarettes yet so with will go to njoy, the gold in thein

dusty. let's hear about the on going controversy that surrounds this business. welcome back to mad money. >> thanks so much for having me. i really appreciate it. >> i got to ask you, do you find more people are using them as a gateway to start smoking or using it to get off smoking. >> there is no evidence they are using the product to use it to start smoking but in fact just the opposite is happening, which is that smokers are using the product and when they do they are smoking less cigarettes or moving off cigarettes entirely. we published an article last october about a clinical study we had done to track behavior in a pilot study in smoking sensation in reduction which demonstrated results similar to what i'm describing right now. >> if it is better than the real

thing, why wouldn't the government say, we are going to ban the real thing and let people smoke this if they want. >> unfortunately, there's a situation in the united states where the tobacco companies have a taccid agreement with the government that even though sell a flood kill half the customers who use it, because they make their taxes to the attorney generals they get to keep their product on the market. there's no other product in the world that is responsible for the deaths of over 450,000 americans every year but there doesn't seem to be the political will to ban the products and as i result they stay on the market. so it is critical that companies like njoy be able to produce a truly satisfying alternative to this harmful product. >> you are the only one that is

talking about obsoleting the traditional cigarette. can they be done in our lifetimes? >> absolutely not just in my lifetime but i think it can happen a lot quicker than people think it can. we are using this incredible thing called technology, our competitors are lighting the cigarettes on fire t this is thousands of year old technology if you want to call it that. and we're using integrated circumstan circuits and heating elements into a relatively small form factor and we have just is scratched the surface of the beginning of a technology revolution to find a way to sufficiently satisfy smokers. we have made enormous progress but the exciting stuff is yet to occur. >> what else can be improved on, it tastes like a cigarette it

doesn't light up the room with smoke. what else is left to be done. it's kind of an end product isn't it. >> to me the reason we have more to do is i don't have 44 million americans smoking these cigarettes. the facts that it is a $1.5 billion industry is great but at the end of the day to accomplish our mission of obsoleting cigarettes we have to do better. we have to make a sufficiently satisfying product that is a true alternative to smokers. >> cvs pulled cigarettes from their selves, is that something good or bad for you and who it make it necessary for one of these has to buy you to get into stores. >> with respect to cvs we commended cvs for the statement they made.

they weren't carry any electronic cigarettes. to me if i believe in a world in which cigarettes are obsolete, which i do, than cvs did a positive first step towards achieving that reality. i would love to see more and more retailers stop selling come bustion products that are so harmful. people forget tobacco companies didn't create this category. they have been late comers after the success of companies like njoy have had and we see our product as part of the solution not part of the problem. >> i'm glad we kept touch with you. this is a fascinating story. fascinating debate. to me it is trying to help stop killing so many people.

thanks so much for coming on the show. >> thanks, really appreciate it. >> if this company were public you would want to own the stock. in the interim we will put this one out and wait. i take prilosec otc each morning for my frequent heartburn.

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>> ipo's and insiders still killing us. there's always a marketable market somewhere. i'm always going to try to find it for you. i'm jim cramer and i'll see you monday. broker. she's a vice president at a leading financial firm. >> she was making close to a quarter of a million dollars a year. they were living large. >> narrator: tina and joe caronna lived the good life, with a nice house and a collection of classic cars. but joe has one very dark secret. he's stealing money from clients to finance their fun. >> he preyed on people that were friends and family. he didn't prey on strangers. there was nobody he would not steal money from. >> narrator: how far will joe caronna go to keep his sins a secret? >> i started crying, and i said, "i don't want to believe this.