i like jpmorgan. >> job market is getting better. paychex is dirt now. happy passover. 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 trying to make you money. my job, not just to entertain but to educate. call me or tweet me @jimcramer. can value and growth coexist? is it possible for reasonably priced stocks to rally at the

same time that the high fliers resume upward momentum? on a day when the dow climbed 146 points, s&p rallied 8.2% and nasdaq advanced 7.5%. a few caveats. the cheapest segment rallied simultaneously with the most expensive, the highest high flying techs and biotechs. only a last-minute boost saved the latter from what looked to be a pretty darn nasty roll. it's not just the tech and biotech portion of this market that's disturbing. the s&p 500's been struggling in large part because the financials, the largest component of the index, have been downright hellish. every single segment of the financials, the credit cards, banks, brokers, insurers, been awful for just a very long time. but today for the first time we saw confluence of positive events that gave other sectors an actual blueprint of how to break out from the occupation for a month now.

first we go to the mother's milk of any rally, mergers and acquisitions. everyone knows there are way too many players in this finance space, way too many companies. that's why it was actually darn exciting to see two kind of smaller kpans, but still, notice aspen insurance getting takeover bid from endurance, another reinsurer the same day a gigantic money manager announced a $6.5 billion acquisition. put aside if you will for a moment the fact you most likely haven't heard of either of these two companies. what matters is capacity. or more important the takeout of capacity in order to get rid of price discounting makes so earnings estimates go higher, not lower. think back to one of my favorite groups this year, the airlines. i've liked them for two years now, why? first i hated the sector for 30 years because there was too much competition. but when the obama administration allowed some big

mergers, well, the mergers took out capacity and allowed the airlines to raise price. that's what could happen if we get a beginning of a wave of takeovers in finance. the navine deal shows there's more. both had been black holes. believe me, these things matter because this cohort is so big. speaking of black holes, two favorite pseudo financials that have pulled down the sector, mastercard and visa, actually rallied and rallied hard today on an upgrade reiteration from baird. visa up $4.38 today is a huge dow stock and it's been pretty much on a one-way trip down ever since mastercard reported its first weak quarter that i can recall. mastercard had been so consistent until that last quarter. these two stocks, visa and mastercard, have been the financial names to hide in. but the weakness in mastercard's quarter boded poorly for both. this upgrade resident throughout the banking industry taking many

a credit card issuer with it. some positive pin action for a change. however, the biggest positive today was a very unexpectedly solid quarter from citi group. here's a bank that just got rejected by the authorities for its plans to return capital yet important numbers were so good that you have to believe citi can get approval at least some day. even as it might be down the line because it's regulatory. as i told you on friday this could be an upside surprise, bingo, we got it. it sure wasn't capital constraint. citi group has oodles of capital. i really like what i heard, so did other stock rally 4%. when you see the financials suddenly come back to life says perhaps other areas of the market can do so too. like what areas? how about oil and gas? now, this group's been kind of hanging in because the price of crude stayed stubbornly high. but remember people want reserve growth. they don't just want the price of oil to be higher. today we're witnessing the power

of reserve growth. as good rich petroleum, gdp, struck pay dirt in louisiana, mississippi with some drills. these drill wells, guess what they did? they caused the stock to jump 30% in one session. almost like a takeover. also caused people to scramble for more plays in the group and piled into some of my favorites. pioneer rallied $4.63. sanchez, you know we're behind that one 4.2%. i've been waiting for this group to reignite, but it's been the major integrator that's been stealing the show. given the plethora, any finds aren't just good news for the oil themselves but service too. baker, halliburton, all higher. finally an advance in the amazon twitter segment. the stock represents proxies for what people like. that's what they really are. lots of older professionals hate the fact for years new byes bought shares of stocks in companies they like without regard to earnings per share. people liked amazon prime so why

not buy some amazon? i always thought if amazon could print stock certificates, people would always order them, frame, put on the wall. shares that are framed don't get sold. currently not enough are being framed now, stock down 21% for the year. mainly because momentum stocks have been going out of vogue in favor of the old fashion tech names. and new phone spike for amazon too in the end the earnings story or the lack thereof is what amazon really is. and there's no action on that front until april 24th. whatever this stock sure coexisted with value and finished up $4.18. netflix, which is down nearly 10% for the year, no bargain. it's been silent on the release front. rallied $5 today. finally there's twitter. we got a hopeful sign insiders won't be bailing any time soon. they put out a no sale release. while the stock spiked on the news, it subsequently cooled somewhat i think because people are concerned how much money twitter is going to lose whether

the insiders are going to sell the stock. still it did finish higher, a victory for certain. other companies that have suffered from these kinds of declines you should think about issuing these statements too. are these enough to turn things around? no, that's not clear. biotech fell apart straight out of the gate. those thought the worst selling was over and barely finished in the black after a trip in the red zone. and many high tyke fliers that finished strong and fizzled. tesla is an example of what can go wrong. jumping and hitting a retaining wall and then spinning a ball of fire finishing down $5.69. that's hideous reversal. many other high fliers experienced a similar experience. pulled out in the last half hour to finish up slightly. we have march earnings, citi group, call good, j.p. morgan the bad. keep that ratio and this rally's got legs even with the bonds going higher. rielgt now though it's way too early to tell. people got so negative and so

many shorts were put on in the last ten days if there's a chance of a more than one-day rally. now, i reiterate what i always say in these choppy markets, if you want to leave the table, use the strength to exit, not the panicked get out now weakness. i think this market's not out of the woods. nevertheless here's the real bottom line. the bulls have to be saying when the overall market didn't roll over after a big opening lift and for once the late-day rally held right into the bell. [ bell ringing ] >> hey, jim. thank you for taking the call. >> of course. >> being on your show is great. thank you. i have a question for you on bata. i wanted to take your input on it. it has done significantly this quarter. >> this is exactly the kind of stock that's been under a lot of pressure. it's a very good company. a lot of guys are raising it. but if you get another downturn

in tech, it doesn't matter how well they're doing. it take everything down. that's the problem. i'm not so certain data is the right place to be right now. the fact it's down a lot is actually negative, not positive. let's go to betty in louisiana, please, betty. >> hi, jim. this is betty in louisiana across the lake from the city where jazz began. thanks for taking my call. >> oh, of course. my daughter's down there. although she might be coming back real soon. >> oh, really? it's a great city, it really is. >> yes, it is. >> we love it. i was calling about sea drill, what do you think about -- >> i think it's part of a cohort that includes transocean, diamond offshore and ens co. cannot get out of their way no matter what oil does because the offshore drilling business is not good right now. we sold out when we were at energy 21. i am not in favor of seadrill. sure we finished up, there's no shame though in using any

strength to -- sell, sell, se, i warn you the waters are still choppy but at least the end rally held this time. coming up tonight, too much of a good thing. answers of what the state of ipos is really doing to this market and what the bulls need to conquer all. plus, i've got three stocks shaking off the market and taking control of their own destiny. you need to know them. and, it's time to rethink everything you've been told about your 401(k). don't move. "mad money" right back. ey" righ.

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sure, i like the close, but don't let today's positive conclusion lull you into a false sense of security. this market, it's got a disease. we've been hit with a plague of initial public offerings. that isn't over yet. and for those of you celebrating passover tonight, the plague of ipos is worse than the plague of locusts, frogs, definitely not as bad as the whole death of the first born thing though. i cannot stress this point enough. a stock market is like any other market, it's all about supply and demand. that's basic economics 101. so when you flood the stock market with too much new supply,

say via endless torrent of ipos, that puts real downward pressure not just on those stocks but on the entire averages. just like any other kind of merchandise, when macy's has too many sweaters, they mark down the price. not dissimilar to what we've seen lately and that caused a top in the nasdaq followed by a hideous crash. i am not saying that absolutely going to happen again. no. but as i've been telling you over and over lately, this front of ipos has become a real serious problem for the bulls. if the economics explanation isn't doing it for you, think of it like this. ipos are like candy, they're sweet, they're delicious, if you can get in on the deal that is. but just like candy if you try to digest too many ipos, you get sick. you don't necessarily get pimples though my mom may have been wrong about that crucial teenage issue. ipo indigestion -- we need to

figure out the disease to run its course. we got news at the end of last week when four companies failed to price. more on that later. when you look at the ipos in the first quarter and all in the pipeline for the not too distant future, it's clear the disease has not been eradicated. i know i've been talking about the subject a lot, but tonight i want to approach differently with a quantitative look at the ep deemology of the ipo plague, down to locusts, frogs, boils. we need to study the first supply in the first quarter and then get a better sense of what could be coming next. so first of all let's talk about raw numbers courtesy of renaissance capital, the experts on all things ipo-related. how bad is this infection of the public offerings versus history? in just the first quarter 64 companies came public raising a $6.10 billion. 2013 was the biggest year for

ipos in the decade, but just in the first quarter of 2014 we've seen twice as many deals as we had during the first quarter of last year. on average a stock that came public rallied 23% the first day and ran up 6% in the aftermarket. though lately the aftermarket performance has been getting weaker and weaker. when you go through the 64 new issues one by one, you see the really flooded tape with biotechs. and to a lesser extent cloud-based software service tech companies. almost half were health care companies in the first quarter. far too many early stage plays. to put that in perspective historically averaged about 12 biotech ipos per year. we just had more than double that for the year in one quarter. that's what's the problem here. so many biotech ipos investors need to sell like a biogen, gilead in order to raise flags.

when i tell you it's crushing growth companies, that's how it works. it's all pin action, people. no wonder that group has fallen for five straight weeks and now down an average 22%. take a look at the chart of the btk, bob, ted, ken. supply overwhelmed demand. if the market hadn't rallied at the end of the day we would have had still one more ugly biotech close. the group gave up the ghost after a strong opening. that's now become a common pattern. please don't buy the tape at the beginning of the day. tech, 11 deals in the first quarter mainly cloud based software service plays. most of these ipos were both unprofitable and super expensive on price-to-sales, of course no earnings, price-to-sales basis. bio tech there are a lot that did well in the aftermarket and a lot that did poorly. but the cloud stocks are starting to follow a common trajectory. they roar first and then get completely clobbered in the

aftermarket. coupons.com went from $16 to $30 in the first day of trading and since then vomited back to $20 and change. paylocity now had a ton of rejs and that's all it could do. and the ones that came public near the end ofrt quarter are dogs. 13 jumped to 15 now back under 14. border free came public at 16, spiked 20% on day one. still trading below the ipo price at $14.43. losses without borders. at this point nobody really expressed these ipos to keep playing in the aftermarket. they gave you a quick initial pop and that is it. when you look at the first ten day performers in the first quarter decline by 11% in the aftermarket and that's through the end of march. plus six months out from these deals when lockups expire you know they're going to get hit with a wave of secondary and

insider selling like we've already seen with so many other deals like a fireeye, viva. what troubles me is not the first quarter, it's the future. right now there are 122 companies in the ipo pipeline, which together could represent $32.3 billion in proceeds. out of them 88 are considered active, meaning they're probably going to be on. last quarter alone we sold 103 initial public offerings with the s.e.c., the largest influx since the peak upfiled with the s.e.c. the largest since the peak of the market in 2007. these are all sobering. even worse the ipo pipeline looks a lot like what we saw in the first quarter, 25% are health care, mostly biotech, 20% are tech. this market will wilt under that ipo epidemic. so we need to cure the disease. what would a cure look like? if we get less enthusiasm for ipos like we saw last week i think that would be a good thing. we are not going up with these

all priced, we are going down. bottom line we're beginning to see the possibility of a decline in the number of new deals. more on that later. but from the report card these ipos are toxic for all but those who got in on the ipo price and only on that price and then sold them into the pop. that's the exact opposite of what the bulls need and want to see. after the break i'll try to save you more money. you more money. coming up, obscured opportunity? next generation science and the tax time headaches. the market may have been in selloff mode, but at time honored trend has been taking these stocks higher. don't miss it. and later, retirement reality. get ready to rethink everything you've been told about your 401(k). make sure you're set up to retire right when cramer opens his playbook. his playbook.

in this volatile roller coaster of a market, there's still at least one tried and true way for companies to create value for the shareholders. they can breakup. yep, i keep coming back to this breaking up is easy to do theme for one simple reason. over and over again we've seen the break up strategy work and work tremendously. conoco, marathon, american

standard, tyco and altria just to name a few. here on "mad money" we're always on the look out for the next big corporate divorce. and over the last few weeks we've seen three major split ups that have been obscured by the market's recent turmoil. so we've got to go back over them because there's real opportunity here. there's baxter international, actually highlighted as one of my ten potential break up plays in get rich carefully. i devote a whole chapter to this concept. looks like somebody with baxter's board is a jim cramer fan. and then there's h & r block, the tax prep kingpin selling off its unnecessary bank business. and adp, the number one payroll processor in america. before i get into the details, first let me give you a refresher course why this works. first of all, the companies themselves benefit from becoming leaner and more focused. that's one of the reasons i wanted e-bay to split with paypal. splitting up your company can be a fantastic way for the stock

for entirely separate reasons. this has to do with wall street. wall street has a serious preference for bite size pure plays as opposed to larger more diversified conglomerates which they can't get their arms around. analysts typically analyze -- they usually specialize in a given sector. they analyze one particular business. they're more likely to give a stock favorable treatment if it fits into one of their easily understood boxes. plus, the smaller more focused company is more likely to catch a takeover bid than a cats and dog conglomerate after its seasoned. which brings me to baxter international. my number one break up play from get rich carefully. absolutely. baxter, i'll waive my investor fee. i've been waiving for ages because this is two different businesses that don't belong under the same book. the argument from my book, a slow and steady medical device and instrument that makes everything from prefilled syringes and fusion pumps. anesthetics kidney dial sis machines.

on the other hand also a fast growing biosciences development as well as immune deficiencies, burn and shock. the biosciences business could surely get a much higher priced to ratio multiple and pay a much larger dividend. this is a textbook break up play when you have a growth business skm a cash cow under the same roof. you can create a lot of value simply by splitting them in half. that's exactly what baxter intends to do. back on march 27th the company announced it was separating into a medical products businesses and a biopharma business in a break up that should be finished by the middle of next year. this is like when abbott labs spun off drug division and a move that made shareholders mucho money. the logic is pretty darn compelling. baxter's been trading at a substantial discount for ages. but as two independent companies i think baxter's medical products and baxter biosciences

could be worth a heck of a lot more than the current value of the combined company. the medical supply business generated $9.4 billion in revenue last year, so if it were just to trade in line with other large cap hospital supply places i think it could have an enterprise of $25 billion. baxter biosciences division brought in $5.8 billion last year but higher margins and faster growth rate. you end up with a company that should have an enterprise value of at least $25 billion, maybe more. so we add them up, we subtract the net debt on baxter's balance sheet, end up with two companies that could be worth $45 billion to $50 billion on a break up. that's 14% to 25% higher than baxter's current market cap. now, baxter's trading at $70 before the break up. so this only at $72.76 there's a lot more upside here. although obviously i prefer to buy this one on weakness, you've just got to understand that this selloff has kept this stock from being $80 right now. how about the second break on h

& r block. just this week the company's number one tax prep company in america announced selling bank business to bofi. h & r block only had this internal bank service -- remember it had its tax prep business, but ever since the great recession it also had this bank tried to make the bank and tax prep do a good synergy, but ever since the great recession it's been a big headache because it means h & r block is a holding company and that limits to return capital to shareholders. it looked like a smart idea before the great recession. the key here is that by jed setting its bank business, they will be free of handcuffs that have prevented it from being a friendly shareholder company and it is and it was before this. tax season may be coming to a close this week, but now another catalyst. as soon as this transaction closes probably around september it will be buyback season. remember we just spoke to the

ceo william cobb in january. he made very clear the plan is to buy back stock aggressively, the kind that could dramatically shrink the company's share count over time. it wouldn't surprise me if h & r block can borrow enough money to do a $3 billion buyback. this is not a big company. i think that buyback would be pretty impressive. this is just a $7.7 billion enterprise market capitalization. wow, they could buy back maybe a third of the business, maybe even more. look, everyone at the lower end we're talking about a buyback that could gobble a gigantic part. also we find out automatic data processing, the king of payroll processing, will be spinning off its dealer services business. who cares about that if you're at adp? it's going to raise roughly $700 million. adp has a long history. they spun off its claims business, broker business so with this move finally a pure play on the human capital management business. the company can use the money from the spin-off to buy back

stock in a boost that by as much as 7 cents. i think a leaner more focused spin-off post is worth $90 a share especially if interest rates go higher. interest rates are important to payroll processors because they sit on large amounts of money while they wait for clients and employees to cash paychecks. they collect interest. adp looks more attractive as a company that has become a pure play. i never understood the synergies of that other business. bye-bye. here's the bottom line, in all the turmoil we've seen lately, don't forget companies can take control of their own destiny and breaking up is often the best way to do it. hence why i like baxter, h & r block and adp on the recently announced break up news that was obscured. this bottle market always lets you in, so don't pay up for any of these. but i think they're going to be terrific stocks for not just the next few months or quarters but years because of this break ups. how about zev in new jersey. >> hi, jim.

long-time listener. my question is about arcp. i was wondering you thoughts and especially based on the recent spin-off -- >> i think arcp is okay. real estate got hammered, it's coming back. i've been recommending it. i think you're in fine shape. let's go to andrew in missouri, please. andrew. >> how are you, jim? >> all right. how about you? >> doing great. i called in a couple months ago inquiring about sandridge energy. however after further research i've learned they have a mid continent water disposal business that could be worth up to $1 billion based off nine times ebitda. do you think this is finally the way to unlock value for shareholders? >> i don't want value unlocked. they've already sold a couple billion dollars worth of properties. i want them to just start drilling. i think we need growth from sandridge, that's going to get it going. i was very encouraged by good rich petroleum today told me sandridge could be a winner.

don't give up. all right. breaking up is easy to do after all. and some companies can be masters of their own destiny. h & r block, baxter and adp are three companies i think you should consider buying. don't move. time to rethink everything you've been told about your 401(k). i'm not kidding. i'll help you turbo charge your retirement plan after this. stay with cramer. stay with cram. passion... became your business.

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we got an expanded mission here on "mad money." every week i come out here and do my best to fix the woeful state of financial education in america. where you can graduate from high school knowing how to do calculus but have no idea how a credit card works. that's why i've been running a new segment lately called my playbook where i teach you what to know about personal finance and investing 101. if you have a question, tweet them to me @jimcramer. i've already told you that out of all the things you should save and invest for money, nothing is more important than retirement. once you stop working, you don't want to be hostage to social security for the rest of your life. and for the younger members of the audience, who even knows if social security will still be

around by the time you retire. that's why i keep coming back to this idea that you absolutely must invest a decent chunk of your income in the tax favor retirement account, like your 401(k) plan at work or individual retirement account which is something that anybody can have. which brings me to tonight's tweet from @nyceen underscore it. who asked should i still open an ira on the side if my company is offering a 401(k)? funny you should ask that. now i'm going to answer the question. in my opinion ira's the single best retirement investing vehicle out there. typical 401(k) plan hits you with so many more fees visible and hidden. even though 401(k)s vary from company to company, usually have a lot less choice what you're allowed to own and maybe you get to choose from a couple dozen different mutual funds.

an ira on the other hand lets you actively manage your own money. pick and choose your diversified portfolio five to ten stock which is in my opinion is the absolute best way to growth wealth overtime. as long as you're willing to do the homework researching all the companies that you own, you can own index, but get a little juice into your ira. pick some stocks you really like. you've heard all this before though. so i want to talk about a new aspect for investing for retirement. you ideally want to keep as much of your retirement money as you possibly can in the ira, but because we live in a ridiculous country with ridiculous laws you're only allowed to contribute $5,500 a year to individual retirement accounts that for some reason the government lets you contribute $17,500 a year to 401(k), much more than three times as much. personally i do have a sneaking suspicion these rules were written by lobbyists. why? because when your money is sitting in a 401(k), these companies can gorge themselves in your assets taking all sorts of fees, some of which don't even show up in your monthly

statement. these fees may not look like much, but remember the power of retirement investing is all about compounding. the whole idea is that you get to contribute pretax income and then your money can grow for decades without taking any kind of hit for capital gains or dividend taxes. but if you also happen to be paying 1% a year in fees, that can really add up over the course of your entire career. there was a terrific associated press piece yesterday about how 401(k) fees can cost someone earning an average salary roughly $70,000 between the time they start working and the time they retire. 70-grand, that's serious money. which is why i think you should move your savings from a 401(k) to an ira as frequently as possible. iras have very low contribution ceilings making it difficult to get a lot of money into them even though it's clearly a retirement vehicle. you can turbo charge by rolling over money from your 401(k) plan and swapping into an ira. some company let you rollover

any time, but unfortunately that's more the exception than the rule. in most cases the only time you're allowed to rollover your 401(k) is after you leave or lose your job. think of this as a bizarre silver lining that comes with being fired. since 401(k) plans are tied to the company you work for, again, another ridiculous nonsensical element of the american system, when you lose your job you have a choice. you have the option of keeping your 401(k) money in your old employer's plan, i think that's the wrong move frankly. if you get a new job, you can roll the money over into your new employer's plan, still a 401(k) so not ideal. you also have the choice of cashing out your 401(k). that is disastrous. if you cash out your 401(k) before you turn 59 and a half, the age at which you're allowed to start taking out money, you get hit with a 10% penalty and also have to pay state and federal income tax on every penny that comes out. i think the 10% hit is really unjustifiable. which brings us to the final option, you can rollover your 401(k) money into an ira, bingo,

that's the jackpot. an ira rollover is retirement gold. after all an ira is the better option, there's just one problem. actually doing an ira rollover can be a little complicated. you have to go over to your old 401(k) administrator and give them all the information about the ira where you want them to send your money, account number, social security number, everything. this is what's known as a trustee to trustee transfer funds. best way to go. you can also do incorrect rollover where your 401(k) administrator sends you the check and you have 60 days to get that in. don't try it. not only inviting calamity, you're up the creek without a paddle and end up having to pay 10% taxes. but even if you're totally on the ball the problem is your 401(k) will not send you a check for 100% of what's in your plan. the irs has a 20% withholding requirement means you get a

check of about 80% of your value and then roll the money into the ira. you need to make up the other 20% yourself of your own money because when you take the check from your 401(k) administrator, it's as though you've cashed out. when you cash out you have to pay taxes hence the 20% withholding just like income tax withheld from your paycheck. irs will reimburse you when you file your tax return, that's a lot of hassle to go through when you can get the money sent directly from old 401(k) to new ira. losing your job may be horrible, but in the bizarre world of retirement saving comes with a signing. you can rollover into an ira which is a much better way to invest for retirement and save tremendous sums of money over the course of your working life. in fact, this rollover is so helpful that you might want to consider losing your job every five or six years just to turbo charge the darned ira. lightning round is upon us next. stay with cramer. with cramer.

huh, fifteen minutes with cramer. could save you fifteen percent or more on car insurance. everybody knows that. well, did you know bad news doesn't always travel fast? (clears throat) hi mister tompkins. todd? you're fired. well, gotta run.

geico. fifteen minutes could save you fifteen percent or more. it is time. it is time for the lightning round. play the sound. and lightning round is over. are you ready? time for lightning round. let's go to zack in tennessee. zack. >> hey, jim, zach from memphis, tennessee. i want your opinion on netflix. >> okay. i think the time for these stocks has kind of come and gone for now. now we have to depend on earnings and netflix doesn't have a lot of earnings. be careful netflix. we had a big run here. and i think that as it goes higher you can scale out. mike in missouri, please, mike. >> hey, jim. how are you doing? calling from st. louis, home of

cardinal nation. looking at just purchased alabama gas -- >> that's what i want. a good yield, good growth, terrific slow grower. nice to have in the portfolio. herb in new york, herb. >> hi, jim. i have your bobble head right here. >> you do? >> yes. >> well, man, i hope i'm going up and down. >> yes. today thank god we had a good day. >> yes, it was a good day. >> coned. >> it's terrific. it's actually lagged and i think it's ready to have its move. some of these stocks like nrg, on fire, but that's a good stock. i need to go to jim in connecticut. >> hey, jim. >> what's up? >> what do you think about windstream holdings. >> womens uconn, mens uconn, no, don't buy.

i don't trust that dividend. i think that i can maintain it for a while, but they don't have the growth for it. brian in new york. >> we got a marine corps boo ya for you. >> thank you for serving. >> tell me about under armour. >> the street.com we had a little conversation about this morning on video. and i said under armour's now down enough that i think it's right. i know it doesn't fit the pattern of what's working right now, but sometimes you got to go with kevin plank and take a little longer term view. i need to go to frank in south carolina. frank. >> hey, jim. myrtle beach. >> so beautiful. i've actually played golf there, can you believe it? what's up? >> well, i have a stock for you that i own for a while and ugi corporation -- >> oh, ugi, king of pressure. that's a good utility, very solid right here. douglas in illinois. douglas. >> marine corps booya. >> another thank you for serving. what a group of callers we have. best in show.

what's up? >> my question is nycb. >> a lot of people worried about that dividend. when i hear that i've got to say don't reach for yield. i happen to think it's a good bank, but when i hear so many people say the dividend may not be good, i invite the company on and tell us why it is good. that's how i want to handle it. one more. let's take one more. let's go to ed in texas. ed. >> ed in houston. >> yes. >> would love to have your opinion on starbucks. >> i want to take a long-term view here. people worry about the price of coffee going up 80%. i say wait a second, starbucks, you buy it, you put it away. multiple levers to win. i like starbucks under 70. that, ladies and gentlemen, is the conclusion of the lightning round. coming up, whiplash. after our roller coaster ride on wall street, find out the two key things that cramer's zeroing in on. can the rally continue?

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we're finally getting some of the signs of stability that i've been looking for among the high fliers. and you saw a brief bit of momentum coming back to the group even as though we're not able to stay in the black toward the end of the day. what were the positives that helped the bulls win the session? i think the first was the cooling of the ipo market that

occurred near the end of last week. quote from investors business daily on these matters and the top headline speaks loudly. "ipo frenzy freezes as four new issues delayed." these include a couple biotechs, human resources management company, two of the most thoroughly saturated sectors of the market. those ipos would have been the last thing this market needs. the human resources space is so crowded that the oversupply has crushed the best of the best. stocks like cornerstone on demand and workday which have repeatedly failed to find footing although workday was finish in the black albeit $2.69 from the high of the day. if you bought it there, you feel like a chump. after a series of post ipo disasters, a welcome event in the crushed cloud group. what can i say about the need to cancel the biotech deals? the biotech index down 22%. bankers keep pumping out these darn deals. again, way too much supply. the group got a stay of execution after midday swoon,

but we simply can't have another slew of ipos without banging down the gileads and the alexions tries to stabilize. a fast food casual restaurant chain exploded higher on the offering friday and 65% pop shows you the travesty of an ipo season can still hurt existing companies. i say unfortunately only because this deal like grub hub shows there's still plenty of investors who just buy the stocks of companies they like without any fundamental grounding or comparisons. far more representative were the two giant busted deals, l la quinta and ally financial, an $11 billion company that's a full dollar below its offering price. both failed to rally today. grubhub, no. zoe's, they're anomalies now. the other positive sign, i've been saying twitter has become the poster boy for the ipo pullback. for people who buy the first

day, the ones who did it after a magnificent run have now round tripped and actually lost money. this morning the big gun owners of twitter, benchmark, announced they don't intend to sell stock any time soon. this is a very important development because unless we see more of this kind of i'm not selling down here self-ban, we're going to continue to question the longevity of these companies that have come public in this era. just like in the year 2000 we've had far more voxeljets down in a straight line from 70 than we've had anti-selling statements from insiders like those of twitter. welcome development others in the business should think about doing what the twitter guns did. so many people refuse to understand how insider selling and ipos can indeed kill the bull, which is why i keep talking about it. and you know why they don't know? because they aren't old enough. they didn't come through the 2000 period.

i know, i know from the street, i know from the year 2000, i know these things. now, i got to tell you, both the cessation of the ipos and that no selling ban are so important because i got to tell you if we don't see more of these, then it shows you the companies that we're trading are jokes. and the insiders know it. i've been a basher twitter of the stock of the profitless company, not a basher of the actual site. so i got to tell you when i saw this no sell statement, i said that's much-needed. you know why? that's because like a smarter version of the who we can't and won't be fooled again. stick with cramer. stick with cr. so she could take her dream to the next level. so we talked about her options. her valuable assets were staying. and selling her car wouldn't fly. we helped sydney manage her debt and prioritize her goals, so she could really turn up the volume on her dreams today...and tomorrow. so let's see what we can do about that... remodel. motorcycle.

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this is a wake-up call. ♪ two camps you must understand are fighting for the control of the mind share of the investor, the value camp and growth camp. tomorrow is all about value. we have intel. i don't expect a lot. we have coca-cola, i don't expect a lot. however, even if they don't do anything, i believe the value guys will buy the stocks anyway. coca-cola's in the morning. that will dictate how the next few days are going to go. if coca-cola does something

good, watch all the money go back to the slow value stocks and away from the red hot high fliers. i like to say there's always a bull market somewhere, promise i'd find it just for you here on "mad money." i'm jim cramer and i will see you tomorrow. hans motors, a used car dealership started by a guy with no car experience. >> i don't have cars, but i have a good business. >> but you don't have cars! that the business! >> no, i'm done arguing with you. >> he spent so much money building the most opulent dealership i have ever seen that now he can't afford to buy cars or pay bills. if i can't stop the wasteful spending... what'd you spend on these walls? >> $100,000. >> wow. and sell some cars... >> i won't sell it. that car's worth 30 all day. >> athans motors will be out of business. my name is marcus lemonis. i fix failing businesses. this month you lost $150,000. i make tough decisions... you're not gonna come behind every single person and change the deal. >> i didn't agree to this [bleep]. >> and i back them up with my own cash.