>> that's it? >> many of the same reasons that tim mentioned. i think honeywell does it better. all the reasons tim mentioned. 25 years, hon. >> i'm now. happy anniversary cnbc. cheers to another 25. [ applause ] 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. i promise oh to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. a lot of people want to make friends. trying to make you money. my job is to entertain, eblg indicate and teach you. call me. or tweet me @jimcramer. some dips are made to be bought. you just have to say to yourself, okay. i don't like what caused the pull-back. i'm going to take advantage of

it because i'm trying to make some money around here. after an amazing week but a ho-hum day where the dow dropped and the nasdaq goinged .23% i want to talk to you about two buyable dips. >> buy, buy, buy. >> google and ibm. you may think i'm sticking my neck out. but i'm introducing the notion of long-term opportunity. it's not a copout. first off, we know google and ibm both disappointed people last night. [ baby crying ] >> boo! >> we know it because they went down after earnings. that's what happened. it's undeniable. in the trading world a stock that goes up after reports is a good stock. a stock that goes down after it reports is a bad one. [ buzzer ] >> simple. anybody bought the stock for the

quarter, in other words expecting an upside surprise got it wrong. in trading you buy a stock for a catalyst. you get the catalyst in the earnings report. sell good or bad. that's what trading is about. that's discipline. having the discipline to recognize that you bought something for a trade and it just didn't pan out. investing which is what i'm trying to teach here is quite different. it has a different set of rules, requires a different mindset. investing is not catalyst driven. it's not about trying to predict the quarter and scalp a few bucks. no. it's about long-term decision making where you were given a chance. the chance may seem scary. you have to take it. >> buy, buy, buy. >> which brings me to google and ibm. any trader knows they failed as trades last night unless you were short them. they both got hammered. if you are an investor trying to catch not just a few points but

something big, meaningful, then i think you have to buy, not sell these stocks. counterintuitive? no. listen. start with google. what caused it to go down? what was google's crime? simple. it missed wall street's estimates. a company that misses the estimates immediately gets put in the penalty box. immediately as in that minute. understand something. unlike most companies google doesn't actually help analysts make their estimates. most companies do. most provide guidance on conference calls right before management takes questions they outline how earnings and revenues are likely to be for the next quarter and the next year. google is a rare bird. it doesn't give guidance. the only other one is berkshire hathaway. buffet doesn't care about wall

street. he wants to win long-term. same with google. which is why unlike the vast majority of companies you hear about when google misses numbers it's less important than pretty much any other company that did the same thing. frankly the analysts are clueless about what google can earn when they try to get the numbers. it's not like google missed its own forecast. they don't make forecasts. the number that disappointed was only disappointing in the eyes of the analysts. you may wonder who matters in the process other than the analysts. big deal. all that matters was the analyst. that's where i can help you. the answer is the portfolio managers themselves matter. look at google in a couple of days. they won't look at it in the vacuum of the oh internet sector like analysts who cover the stock. nope. money managers look at googlele versus other stocks in the s&p. all the other stocks they own. they will see that they are missing an opportunity to own a company that's growing --

remember these numbers, they are important. growing at a 19% clip yet it stels for 17 times next year's earnings estimates. remember how money managers value stocks. you have to go back and make it an apples to apples comparison. they look at the price they are paying for the company's future earnings known as the price to earnings multiple. then they pit google's growth rate against the companies they own. they make judgments about what to buy or sell. make it easy. suppose a portfolio manager owns coca-cola. they know coke is growing at 6%. what's the price to earnings multiple? 20 times earnings. go back to google. we stipulated that google grows at 19% and sells at 17 times earnings. let's see. from the portfolio management perspective he's paying 20 times earnings for a 6% grower like coke. they grow three times as fast.

many a manager will be unable to assist google and will sell coke to pay for it. not today. it's ugly. do this exercise. take panera bread. it sells for 24 times earnings. why own panera, no dividend. they are twoers. get faster growth from google with a lower price to earnings multiple. a stock like kellogg grows at 5% but trades as the same as google. it has a small dividend. they will wait for the smoke to clear, stocks settle and they are likely to sell kellogg for a google. on a growth basis it's cheaper than almost anything in the s&p 500. in a week most portfolio managers will forget google missed analyst nuns and say that's too cheap to ignore. that's how this terrible, terrible trade turns into a terrific investment. you might say what happens if

google deteriorates as missing the analyst numbers implies. truth is it's not deteriorating. it's spending money to promote future growth. something we want them to do. you want companies to invest in the future. not all should be buying stock and giving dividends. isn't that what was wrong with microsoft, dell? i think so. you could say, yes, but aren't they kriched by the desk top to mobile revolution? google has the best mobile product out there. i trust management when they say they have a game plan to make more off mo than on the desk top. you have to listen. you need patience. i have patience. my charitable trust has patience. do you? i think google is a fantastic investment at a great price being set by traders who are taking their trade off the table at a loss. how about ibm? wasn't that a miserable quarter? revenue declined, right?

suspect cash flow. miserable earnings that seemed to be made by the skin of the company's teeth. >> the house of pain. >> doesn't ibm have to be sold? yes. if you bought it ahead of the quarter for a trade. absolutely not. if you're looking for a value stock based on next year's earnings like warren buffett. here's the thinking. sure, ibm isn't hitting the mark. by this time next year it should be because of the change in the mix at the company. if you wait for next year the stock will be too high. it was going up in anticipation. didn't turn around this quarter but it will. you have to get in on weakness though you might hate ibm's configuration. buy it now on sale for an investment that could last years. google and irk bm, two trades that went bust. two investments that can now be started at excellent discounted prices.

the bottom line, one man's trash can be another man's treasure, provided that the first is a trader who only cares about the here and now and the second is an investor who cares about the future. nick in new york. nick? >> caller: hey, jimmy, how are you? >> how are you partner? >> caller: thanks for sticking up for the little guy. >> that's what i do. thank you. >> caller: my son has been the voice of reason. my question relates to b & g foods. i saw it featured on your show and did some buying homework. i bought at 12 and now have a plus 11% cash flow on my capital. what's your advice based on their recent quarterly results which were shy on earnings. >> thank you for taking action alerts plus. that's the companion project. tells us what we'll do before we buy and sell.

b & g yields 4.3. was it a perfect quarter? absolutely not. is wener doing a good job? yes. i would take out the invested capital and let the rest run. keep the yield. thanks for listening. we helped you with b & g foods and thanks for what you said about the little guy. 25th anniversary and i'm proud of what we have done. dubrovka in massachusetts. >> caller: i'm here. i have a question about zebra. >> yes. >> caller: you recommended it and then it dropped like a rock 10%. do you still believe it's good or not? >> it's real good. sometimes stocks don't do with a they are supposed to do. it went up 8, reversed 8. buying that symbol technology business is good and you will hear more about zebra from me in the next two weeks. to madelina in new york. >> caller: hi, jim.

how are you? >> real good. how about you? >> caller: good. i just want to say thank you for taking my call. >> sure. >> caller: i also enjoyed reading your book "get rich carefully." i have a question for you regarding celldex therapeutics. >> yes. we rated that as our great previous analyst ted graham pointed that stock out in the mid teens and a friend of mine showed it to me. we caught a double and left it. we have not looked back. i have not looked at it because it was a trade, a speculative stock. it was done and i'm not looking back. i'm sorry. one man's trash is, indeed, another man's treasure. case in point, google and ibm. trashed by traders. made treasure for the investors. don't go anywhere. i have an exclusive with the bank that's had the best performance of any bank we follow fresh off earnings. there are concerns about the

company that keeps the lights on in new york. i'm checking if the future still bright for coned and the utilities. and sometimed you need a little elbow grease. snap-on tools is coming up next. >> announcer: 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 800-743-cnbc. miss something? head to madmoney.cnbc.com. ♪

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forget about all the problems we have with the stock market. when you look at the actual companies, especially the ones that benefit from the improving economy, they are doing pretty barn well. take snap-on tools, sna, maker of tools they mainly sell to auto repair shops. they sell to agriculture, construction, mining, power generation clients, have a bountiful european business, some asian.

snap-on is a nonstop innovator creating new tools and diagnostic systems to make work easier for professionals doing critical tasks. the company reported and they earned 1.62 a share, an 8 cent beat on are revenues that rose year over year. in particular the commercial industrial sales rose 9.1% driven by a fabulous surge in the european segment. stocks has given us a 23% return since we spoke to the ceo last july. it has more room to run even if today's rally. let's take a closer look with nick pinchuk, chairman, ceo and chairman of snap-on to learn more about the quarter and the prospectses of the company. welcome back. >> great to see you, jim. >> there were only 28 stocks on the s&p that hit an all-time high. yours was one of they will. i think it's because you innovate even with such things as wrenches. >> correct. that's the thing. snap-on is a type of company

that's actually a technology company. it innovates based on a practical understanding of the work place and a soes kuwaited with technology. take this, for example. we can talk about a wrench. this is a tech wrench. it has to do with measuring torque inside an engine or aircraft. an aircraft frame. it is the state of the art in terms of getting just the right tightening necessary for the critical tasks that take place. >> you had this for automotive and it also goes into aerospace. >> sure. one thing about snap-on is it's beenen an automotive repair company. we with realized that snap-on means a lot to any professional as long as they are performing critical task s, the need more repeatability and reliability is important. they have to perform with certainty. that's aerospace, oil & gas and aviation. we apply technology to that.

not shone here is something where we have a smart tool box. one of the big things on an aerospace line is don't lose a tool in the engine. sounds crazy. a screwdriver. >> no! don't leave the forceps in surgery. >> exactly. we make a box that uses imaging technology that tells you, boy, jim cramer took out screwdriver a from door a and he's working in bay # on engine two. you check the box to see if he returned it. >> that's great. >> that's driven growth. cni was up 10% in revenue. >> double digits. >> it's driven by the extension of critical industries. people value snap-on. we have technology and insight. >> a lot of people felt you shouldn't be moving into europe or maybe try to minimize europe because europe was bad. obviously they were wrong. >> right. we have established a business if europe. i've got welts on my back for europe. last time i was here france gave me a headache.

i didn't want to hear the word "france". >> you said it. >> france is up now. germany, spain is up now. we spent a lot of time not taking down productive capacity. >> right. everyone told you to do it. >> we had faith it was coming back. we knew the customers were still there. we improved the efficiency and productivity. before the revenues started coming back profitability was better. now the revenue is coming back for a double dip. both profitability, efficiency and leverage. >> what did you learn in terms of asia? >> well, the thing about asia, if you think of china, united states they both buy big cars. >> yes. >> a lot of new cars. >> a lot of people in china. >> the u.s. market a lot of cars on the road already and they are old. >> yes. >> china, 11 and a half years old and 300 million on the road. despite the fact they are selling new cars in china there aren't many on the road and they are all new. the repair wave is just

starting. i lived in asia for 11 years. you have to have the physical capability to take advantage of this. we have been building those. when i arrived in china nine years ago, shanghai, the only people who worked for snap-on in a city of 15 million people came with me on the plane. >> how many years ago? >> that was eight or nine years ago. came with me on the plane. now we have five factories, 1500 people, 31 offices, a design center. 700 distributors. we are building physicals because the wave is coming. >> let's go to ail & gas. >> sure. >> we have been visiting the sites. we were on an oil rig off the coast. we were in utica shale, north dakota. you guys are there now? >> yes. part of the snap-on base is technology. also an understanding of the business. we understand automotive repair well. we have guys that can tell you why a mechanic takes his rag out of his pocket with his right hand instead of the left. >> are really?

is it an algorithm. or something? >> no. they understand the work. >> the customer. >> when we visit oil & gas sites we see people welding jobs together to do a job that nobody makes a tool for. we are making them and starting to build business there. >> i love the people at stanley, black & decker. they are terrific. they're not doing that. >> i love them, too. it's a different business. >> different. >> different business. >> retail baiz business. they are professionals. >> different business. we are based on criticality. the need for reliability. nothing can fail like in aerospace and mining. take this thing. s this is a diagnostic unit. you plug it into a car and it gives you what the car is saying in terms of the fault codes. it shows you the car's heart bs beat, allows you to make the car run through tricks, sit up and do dog tricks.

this one allows you to go to the internet to get special database. we have a database which we use our field information and we can tell you exactly if a honda is at 56,000 miles and it has these symptoms this is probablies what's wrong. you will get it through this device. high technology in an area which is increasingly dependent on high technology. people don't think of it. >> it's interesting. you are the only industrial and technology stock that hit an all-time high today in the s&p. now people know why. nick pinchuk from snap-on. i'm sure you understand why i think this is a great company. stay with us. honestly, i'm pouring everything i have into this place.

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today...and tomorrow. so let's see what we can do about that... remodel. motorcycle. [ female announcer ] some questions take more than a bank. they take a banker. make a my financial priorities appointment today. because when people great things happen. in market that's gotten far too exciting for comfort today's ho-hum session not with standing maybe you need boring stocks like utilities which performed well in the past month. one of my favorites is consolidated edison coned as you know the it. you own the utility because it is low risk. the company owns the largest under ground electric system on earth dae signed to supply the most densely populated area in north america but they don't own any power generation.

this is a wires company which means they are immunized against epa action. they are protected from rising commodity costs like the rally today. they have to face infrastructure issues and that's daunting for a utility. coned got slammed today. inyield is 4.5% dividend declared today. they have been treating the stock as a fixed income alternative. when bond yields striked that made them look less attractive by comparison. the company has a lot going for it. since we first had kevin burke on the show in april of 2009 coned gave you an # 7% return. far less than gains in the s&p 500 but that's good when you sacrifice upside and go for comfort you might fall behind the market. doesn't mean you didn't get the dividends and live comfortably off them. let's talk to jon mcavoy, the ceo as of january. welcome to "mad money." >> nice to see you.

>> have a seat. thank you for coming on. >> pleasure to be here. >> you have challenges and technology working for you. i want to show people my electric bill spiked, i've got to tell you. i'm convinced the if i had been sensitive to what my appliances were doing i would have saved money. you have a new device that's a cool stealth only the play with honeywell. how does it work? >> i'm one of the few ceos that will tell you how we try to help our customer use less of our product. that's what we are doing with our energy efficiency programs. this is a wifi thermostat used for a central air conditioning system. there are 400,000 of those in our territory. we partner with honeywell. many have that. the device here is the one that's unique. in our service territory we have over 6 million window air conditioners and you can't use a central air thermostat with that. we partnered with a company called think eco to develop this

device called the smart a/c modlet. you plug in the air conditioner here, plug this into the wall. it connects to your wifi and you can use it in the home to raise and lower the temperature. it connectses to your smart device. your android, ipad, iphone so you can set the program for the air conditioner and change the temperature in the room from wherever you are. >> people are saying, why would someone want to sell less energy. isn't that how they make their money? >> you said wires and pipes company. it allows us -- puts us in a position to help customers become more efficient, use less product, save money and also help the environment. >> david cramer was here, nrg, he's aggressive and buying companies that allow us to put solar on the roofs. should i call you if i want

solar on my roof in this area? >> we are not installing rooftop solar but we can help you integrate it into the system. >> conversion into system. >> right. we try to make it easy for customers if they want solar, other distributed generation. we want the customer to make any energy choice they want. >> is there ineven sieve or do you hope -- >> there are incentives from others. we don't provide an incentiveful there are state and federal tax incentury ifs and rebates. we are a big player on the wholesale solar market. unregulated -- >> you are the fifth largest player in the country. >> right. we have about 400 mega watts of solar production. some in the southwest, some in the northeast. it allowed us to take the power experience. we don't own the plants anymore. apply it in a new ways that's renewable and environmentally friendly. >> let me ask you. you've got new technology, solar. you are also saddled with an

older infrastructure. we have tragedy unare related to money here. we have the east har lem terrible incident that occurred. i presume you have a big maintenance. you have an infrastructure from a long time ago. what do you do? how much money can you really generate to make the infrastructure current? >> we have an aggressive infrastructure renewal program. we put $2.5 billion into the electric, gas and steam systems each year. >> each year? >> each year, $2.5 billion added into the system. we have developed pretty advanced algorithms to identify the best place to put the money based on equipment performance, historical trends, ambient conditions and usage to get maximum benefit for every dollar we invest. >> is it possible to cut down on the terrible incident we had? >> very much so. part of our infrastructure investment strategy includes

significantly risk reduction as input. the incident in harlem is a terrible tragedy. we are working closely with the nts b, national transportation safety board to identify the cause. we looked at the cast iron piping and the new plastic piping as well as water mains. i'm confident we'll get to a place where we understand the cause. in the meantime we have been working to support the community and people affected by the tragedy. and encouraging customers if you smell gas, act fast. leave the area. when you are safe, call 911. call 800-75-coned and let the experts respond. >> last time mr. burke was here in may 2012 he said we have 7,000 buildings that are using oil. oil is $105.

>> we are changing out 800 to a 1,000 buildings each year. driven by the price comparison we are getting buildings to switch from number two oil. those are large buildings. the one to four family buildings, 1500 of them convert every year. it's better for the environment. it saves our customers money. it improves the operation of their equipment. >> excellent. if you want a safe dividend, you've got the best record of any of the utilities. i think you've got it. john mcavoy from conedison. sometimes it's good to have something. stay with cramer. h cramer.

market commentator for the street.com. now also for cnbc. jim cramer. >> hey, mark. how are you doing. >> we have to put up with you twice a month. >> i wish it were more. you know that. >> come on. i wear this on my sleeve. quit kissing. have i professed my love of

"squawk". >> cnbc turns 25 today. i think this is a terrific moment to reflect on how business has changed over that period. how we have changed wit. first of all, when the network was born i counted myself among skeptics. the financial news network when i first started managing other people's money out of my dorm. room at harvard. i thought it was useful. until then you had to call brokers to get information about how stocks were trading. i did watch it for the tape. that ticker thing in the lower third of the screen. much more than for the information. i wanted to get a feel for the action the way the day was going. nothing tells the tale like the tape. i went to goldman sachs after law school. i thought i would have been fired if i suggested watching fnn. i had the machine that brought me the information i was supposed to need and the dow jones news tape which gave you the corporate news but it didn't start until 7:00 and it ended early. if you were a stock junkie when

you got home you watched the nightly business report on public television. still worth watching. it is produced by cnbc. you could watch the national news see where the dow closed. that was it until the wall street journal came out the next morning. when i left goldman i brought along the sale tools i had at the brokerage. a couple years later i heard people talk about the network. they were breaking news, talking about stocks in a creative way. talking to ce os. back then the requested of having a television in your office seemed like the height of absurdity. you're supposed to be working not watching tv. i would dismiss anyone watching tv at work. how could i put one in? two years went by and i realized i had no choice. cnbc was a realtime newspaper, a living, breathing organism. i was tired of hearing about storieses second hand. i had to beg the landlord to wire the place for cable. i moved my office because he

wouldn't let me have my cnbc. not long after i was mesmerized by particularly the anchor work done by the late great mark haines. i talked to the screen driving everyone crazy yelling he should be doing this or saying that. next thing you know i'm screaming at him in all caps saying how he's getting this wrong or should emphasize that news until he finally said it was time for me to put up or shut up and be a guest hose on "squawk box." he put me on the air. life has never been the same. all my years spent as a guest host on "squawk" and kudlow & cramer. i know for sure this has made an impact. we are indispensable not just because we are on pretty much everywhere but you ignore cnbc at your peril. business news is too important for tomorrow's paper. when the paper arrives it's been over run by event this is network covers in real time.

we all do our part. breaking news, making judgments, teaching all to help you make money without fear. i'm proud of what we do at the network and what we have carved out on "mad money" to celebrate business and hold people accountable. it's been a terrific run. i'm thrilled to be a part of it. thanks for taking us into your office, hotel or home. unlike when i got started in the industry these days it's fair to say if you are in the money business you get fired if you don't watch cnbc. it takes a lot of great people to keep a network thriving for a quarter century including a voice you hear every day on the show. but never get to see. we're changing it tonight. ladies and gentlemen, jim bursall. >> thanks, jim. thank you, cnbc. stay tuned, cramerica. we'll be right back with the lightning round. boo-yah! i've always kept my eye on her...

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>> announcer: lightning round is sponsored by td ameritrade. ♪ >> good evening.

i'm jim cramer. welcome to my world. we call my world "mad money." i want to help make you rich. really rich. what is "mad money"? it's that little bit of extra money. no, scratch that. it's a lot of extra money. you can make it by making the right investments. >> no, that wasn't a puffy shirt. it was a puffy guy. anyway. can you believe i haven't aged at all? maybe i look younger. not really, but anyway this is in honor of cnbc's 25th birthday. we want to remind you how handsome i was when "mad money" premiered nine years ago. back to business. now it is time for the lightning round on cramer's "mad money." we play this sound and the lightning round is over. are you are ready? time for the lightning round. i will start with sean in iowa. sean. >> caller: hi, jim. this is sean from iowa. >> nice.

>> caller: black rock reported today. >> it shouldn't have reversed. it was going up. >> buy, buy, buy. >> i want to buy it. i think it's doing a good job. tyler in my home state of new jersey. tyler. >> caller: from the orange state, jim. great to be on the show. >> good to are have you. >> caller: medical equipment hologic. >> they haven't delivered the good ifs years. move on. ge's health care number wasn't that good. it was a nice cop to hologic. from california, jalal. >> caller: hello are. thanks for taking my call. >> of course. >> caller: my question is about conedison. i want to know your opinion. >> i'm negative on sunedison. this could be the right way to go. i like first solar but sunedison has game. i like it. domenic. also in new jersey.

domenic. >> caller: jim, how 's it going? >> going okay. how about you? >> caller: going okay . so my question is on mankind. it's had a good committee meeting with the sea. they need approval. i want your thoughts. >> it's a cold stock. if i say something negative i can't go to twitter for days. all will be in the feed is what a jerk i am. i think the new device, i wish them luck. i don't know how big the device will be. that's all i'm going to say. because i'm critical and skeptical. now to fred in ohio. fred. >> caller: hi, jim. five-year listener. love all that you have done for us. >> thank you. >> caller: my question is t paccar. >> there is a bull market. we know a lot of companies are talking from alcoa to many of the companieses that reported today. you're in great shape.

pull the trigger. christine in pennsylvania. >> caller: this is chris, but my grandsons call me boo. i have a boo, hoo, hoo boo-yah for you. i bought whole foods at a lower cost basis than you guys at action alerts. tell me it's going to turn around and go up. otherwise whole food wills lose a customer because i will have a heart attack. >> i'm shocked at that time decline. action owners has a small position. wanted to buy more. stephanie and i know there is competition. walmart is coming in. these guys are good and the stock has been straight down. we are taking a pause, trying to find the right level to buy more. we are obviously not there yet. i feel your pain. you feel mine. this is a tough one. i don't have an answer about why it should be this far down. not yet. i feed to go to james in texas. james. >> caller: howdy, cramer. or boo-yahs as you say in

cramerland. >> you're right we do. >> caller: action alerts subscriber. started to listen to you in bulgaria. >> bulgaria. they have a king there. >> caller: yeah. lock ames recommended listening to cramer. >> thank you. >> caller: been following you ever since. do you have views on isis? up to the mid 40s, sold it. i was wondering the if it's time to get back in? >> look, the biotech stocks haven't found their footing. the btk is one of the biggest danger zone areas in the market. the stock has been cut in half. i think there is real value to the situation. remember, we have not reached a bottom yet. they keep pumping out new biotech stocks. that's the problem. too many ipos. too much insider selling. it its day will come.

i'm not calling the bottom here. that's the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade. 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. with the mobile trader app. i just ah woke up today and i said i need something sportier. annnd done. ok maxwell, just need to ah contact your insurance company with the vin number. oh, i just did it. with my geico app. vin # is up to the loaded. ok well then jerry here will take you through all of the features then. why don't weeeeeeeeeeee go out to the car. ok, i'll just be outside... ok, yeah.

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we will pause for two minutes. ♪ >> our heroes will now open the marketplace. [ bell ringing ] >> everybody should step to the plate now and show the strength of the american economy. >> a show of unity at the nasdaq market site. >> this city is the capital of capital. >> just giting markets open is a victory. for the last couple of weeks the banks had become real dogs. since the financials are the second largest component in the s&p 500 when they do poorly it's difficulter for broader stock markets to act well.

earnings season starts and suddenly most of the banks are reporting good quarters. today we heard from the regional banks like keycorp. one with i have liked for a long time. what did key, a big regional player based in cleveland with over 1,000 branches have to say? this morning key reported a 2 cent earnings bead with in line revenues and 4% loan growth year over year including a #% increase in financial and agricultural. key is still cutting costs left and right. if we get a sustained up tick they will make a killing. that's how banks make money. they pay you next to nopt nothing for deposits and lend the money out at a higher rate. while we wait for an uptick, keycorp is returning capitol to shareholders. they used $564 buy back authorization gr a new $542 million buy back authorization for 2014. add it up it's equal to #% of the market cap and it is expected to boost key's dividend

annually next month. part of the fed approved capital return plan which would give the stock a yield at these levels. it's given us a 16% gain since october. i think it has more room to run. let's check in with beth mooney from keycorp to find out more about the quarter and where her company is headed. welcome back. >> thank you, jim. glad to be back. >> you had a tremendous 9% commercial industrial growth in loans. where are the loans concentrated? who's taking them this? >> it was one of the strengths of the quarter. we are with leading our peers in that regard. commercial lending is up 9% year over year. 4.5% length. generally it's across the board. the business model is winning with clients. if i were going to look at sectors doing particularly well, i would say energy, health care, technology, but geographically it's dispersed and has been a strong quarter in lending for us. >> it turns out geographically

key actually has a lot of overlap with what turned out to be the new oil and gas portion of the country. >> it does indeed. the energy sector that the natural gas and shale play as we call it is in our backyard. >> okay. let's go over. i think people want to hear wait a second f. interest rates went higher you can make more money. what rate is the optimal rate for shareholders to make the most money owning key corp. >> any lift in the short end of the curve would be good for banks. particularly for a bank like key with the large commercial lending book. 70% of those were variable rate loans tied to one-month libor or prime rate. as we get lift in the short end of the curve you will see earnings and revenue. >> you mentioned the commercial doing great. you have an impeccable home equity book.

60% of the mix is first liens. what do you do right? that the other guys aren't doing? >> good old fashioned back to basics lending. the home equity book is branch originated. they are customers of the bank. we make sure they have strong credit. it's also for a strong need as you pointed out. 58% of them are first liens. many of them act like a mortgage for our clients. we keep strong fico scores and very low loan to value. at the end of the day it was a high performing book through the crisis. for us it's been one of the most profitable consumer lending products. >> let's look back fwr a second. in the 2006-7 period key high dividend, very small. 400 million shares. is it reasonable to think one day given the fact that the country might be growing we could go back to the smaller share count and higher dividend? >> as you know through the downturn we issued equity as part of the recapitalization

plans in the financial downturn of 2008 and 2009. in 2010 as we repaid our t.a.r.p. obligations. we have a larger shareholder base. what i think is important is we are successful in returning capital to shareholders. our second consecutive year that key has been able to return pure leading levels of capital in the form of dividends and share repurpose. our investors find it attractive. it's a reason many of them hold key. >> m & a comes up as being a bright spot. people don't think there is a lot of m & a going on. who are they acquiring and merging with? >> it's interesting. when we look again at what use is for the commercial lending it's not a lot of historical plant and equipment lending or building of inventories. we find companies are finding ways to grow more inorganically. they are buying products or

capabilities or competitors as a way to grow. there is a fair amount of oh m & a dialogue and m & a activity going on. it's on a smaller scale. part of oh corporate are america learning to grow their in a slow economic environment. >> i want to congratulate you on the best performance of any of the bank stocks we follow. great job. that's beth mooney of keycorp. good to see you. >> thank you for your support. >> of course. this has been a big winner. it will stay a big win wither. stay with cramer. ♪ [ banker ] sydney needed some financial guidance 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. [ female announcer ] some questions take more than a bank. they take a banker. make a my financial priorities appointment today. because when people talk, great things happen.

all right. google and ibm. did they stink up the joint? absolutely. do people hate them? yes. why would you own them? actually one is going to turn in 2015. that's ibm. you can't wait. google wasn't even bad and the

money managers are going to flock to google because it's got growth at a very reasonable price. happy 25th cnbc. there is always a bull harkt somewhere. i promise to find it for you on "mad money." nbc sports welcomes you to the following presentation of the stanley cup playoffs. and we are under way. the flyers in white and the rangers in blue. >> they have had legendary battles. he is still going at each other. he is getting the worse of this. >> this is the main event. >> and the kick right here. >> and the intensity now carries on to the e next generation. >> and a save by lundqvist. a