money" with jim cramer has got an interview with dunkin' brands. stay tuned. my mission is simple, to make you money. i'm here it 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" startses now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends, my job to entertain, teach, call me. 1-800-743-cnbc or tweet me @jimcramer. be your own guru. be your own guiding light with your own views, if you figure

things out you'll never be whipsawed and you might catch a move like we had today where the s&p gained 5.6% and the nasdaq folded 1.05 per. you know what caused today's rally? was it it tthe incredibly move draggy who is single-handedly getting the eurozone out of the deflationary doldrums? no. not really. as we know from the soggy stock market opening despite the news coming out an hour before the opening bell. [ bell ] >> was it more deal talk? this time the potential for a giant sprint-t-mobile tie-up, hardly because both stocks were up fishlly, spreading lots of good feeling it it wasn't long before we realized there was nothing imminent and the journalists who penned these pieces incorrectly failed to crib for fr my squawk on the street partner david faber, the

stories were a tad too breathless. was it industrial earnings from joy global who had a rebound and impactful notes on a few down and outers, think whole foods? no. not a chance. that's way too one off. so then what did happen? what really did happen this morning? go check the time and sales as we call it in the business. the market turned around very specifically when noted hedge fund manager/guru david tepper turned it around, when an interview with cnbc's kate kelly. he said the concerns that made him worry that much, remember, he was worried. worried so much about the market -- have been alleviated. ♪ hallelujah >> that's right. barely a month after his negative comments about how the market was making him nervous and it wasn't time to be too freakin' long to use his word

he's now sanguine. sanguine about stocks. >> house of pleasure. >> apparently with the s&p up 3% from when he made those negative remarks it's no longer nervous time and the market must no longer be, quote, kind of dangerous in a way, now. i put it it like that for a reason. before you start criticizing tepper, let me just say that what he predicted, what he actually said occurred. if. you actually instead of the headlineses go for the transcript of the first interview, he never said he didn't like the market. in fact, he just said he didn't want people to be borrowing money, a view i express on "mad money," tepper said he expected the market to grind higher and that's exactly what happened since he spoke. the man who runs the $20 billion hedge fund lucent management told us at that point that he was concerned that the european central bank wasn't doing enough

to spur growth, but if something changed he could easily get more bullish. well, something changed all right. ecb president mario draghi has brought out every single weapon in a banker's arsenal. save, making personal loans himself in order to jump-start the continent, more on that later. what is david tepper to do now that draghi did precisely the thing that tepper said would make him less scared? the facts changed. so what did tepper do? he changed his mind. he had to get more bullish. if anything, i now think even more of david tepper because he's honest to a fault. didn't dig in his heels with the wrong view. i've known tepper for ages and he's the best there is opinion so then what's my beef? my beef is with the people who took action based on tepper's comments. the people who didn't understand the subtlety of his works and

how he specifically told you what would make him more positive. my issue is with those who use tepper's words meant for the most sophisticated of audiences to justify blasting out in the s&p 500 and then shorting. >> sell, sell, sell! >> the highfliers. my concern has to do with the people who use tepper as a guru when he had duty whatsoever to you and at had zero obligation to tell anyone when he changed his mind. you need to have your own opinions. if you liked your portfolio before tepper spoke then you have a specific chance to buy more of your stocks thanks to the tepper-inspired weakness and you would have had an even more remarkable day today. if you shorted the highfliers on tepper's admonition because they were the most visible excesses at the moment, then you got your head handed to you and -- your bell's been rung. that's why i'm constantly telling you to learn your stocks and to also know yourself, know

your temperament, your tolerance. that way you won't allow yourself to be shaken up by gurus who give you a snapshot of your view or worse. gurus who are just plain wrong and take back what they say days later although you don't know it it until after they've gotten more bullish than ever. i am no stranger to this problem. even as i reiterate my views constantly on two tv shows and through my charitable trust portfolio, we can give you our thoughts in real time. nothing opaque here and total transparence tote ninth degree on every term which is what i demand from others, so we give it ourselves and ubiquitous as i am, i still can't be there every minute. take this morning. just this morning right aid reported a shortfall of some magnitude and the stock dropped 10%. i worked like a dog for squawk on the street to get an answer on what went on. nevertheless, we were preempted

by the press conference and never even got to talk about it. here is the skinny. right aid's got a relationship with the drug wholesaler that's caused a one-time hit to earnings and it wasn't flagged that was a possibility by manage am. i think that right aid communicated the problem and it took investors' breaths away, but when you dig down into the story you realize that this issue was an anomaly and it pushed back the earnings into a later date. in the meantime the company reported fabulous may same-store sales numbers, what i told you to focus on and get rich carefully, thereby convincing me that the term is very much on track and then some. in fact, this may be the single best buying opportunity in right aid that you're going to get. of course, it wasn't down 10% at the bell. it was down seven. so we missed the actual bottom. my hope is that you get a chance to buy tomorrow. i know people were absolutely panicked by the shortfall. i also know if you're seasoned, schooled or educated perhaps by

the show into knowing that same-store sales are the true measure you need to assess right aid then you would have pulled the trigger and bought the stock. in short, you needed to be your own guru. you needed to have your own tools, your own fishing pole, so to speak, to reel in this keeper yourself rather than picking it it up at whole foods tomorrow. the stock, by the way, finally looks like it's bottomed. i mean no disrespect. tepper is so good that think, you want his view. he's kind enough to share it and to tell us when he's changed his mind. it's my job to communicate to you how i feel like about a stock like right aid that i believe in. i'm simply saying know thyself. know why you like them and why you're confident to put more money to work on someone else's fears or totally realistically if that's too much work, that's fine. let others who are full-time managers or perhaps index managers handle your funds. here is the bottom line, gurus

come and gurus go. they don't report to you and they don't know what's suitable for you and your financial needses and you are always there, always answering to yourself. trufrt yourself, but verify the story with homework and you'll do just fine, much better than those who simply wait for the next morsel dolloped by a hedge fund manager who just happened to be front of a microphone that day. let's take questions and start with john in michigan. john? >> boo-yah, jim. this is john from farmington hills, michigan. >> what's happening? >> thanks for having me on. you suggested palo alto networks. my question for you as a 34-year-old i wonder if it would be a better stock for me that trades the same volume and has a similar market cap. it's just riskier, i think. >> you're right, it is riskier and fireeye, by the way, is not an inexpensive stock and palo alto is not an inexpensive stock.

fireeye's technology is terrific, and i think the stock can certainly bounce 10%, but palo alto is a company that a lot of companies are turning to for real help on both prevention and detection, and i don't know if palo alto can stay independent. i like palo alto more. how about mark in connecticut, please. mark? >> what do you say, buddy? what do you say? it was a wonderful day in the neighborhood today however i'm short joy global and the numbers have been stinking up the joint, but it's like trying to hold a beach ball under water. the stock keeps going up. i'm in a house of pain, should i cover and by the way, thanks for "get rich carefully". >> you're a good man. all right. first of all, here's your big problem and it's real simple, mark. you're not the only one who is short. as a matter of fact, we've got a situation here where 21% of the shares are sold short. that's too much. second, they had oil sands orders and it wasn't just coal. that means the story is not done yet, so i want you to be careful meaning i want you to cover. in connecticut, eric?

>> hi. how's it going? thanks for taking my call. i'm pretty new. my question is about infoblocks a couple of weeks ago. >> oh, yeah. >> i know their earnings were unexpected, but their revenues were lower and the ceo is stepping down. should i average more in or get out now? >> no. if this stock goes up at all. >> sell, sell, sell! >> this is really one of the worst stocks of 2014. i don't have anything good to say about infoblocks other than dead cats do bounce because i know because my cat bounced when the 18-wheeler hit her. believe in yourself. i come out here every night to help you invest with conviction instead of waiting to take action on some other guy's comment, no disrespect intended, do your homework. learn your stocks. be your own guru. >> still to come, breakfast really is the most important meal of the day, but it hasn't been profitable approximately stick around to find out what deliver can do to deliver a jolt or beacon, here's a hint,

technology. want to know more on the secret club that runs the world? is it watches, or wedges? which retailer is ready to take out? i'll reveal the the saksry that could be missing in your portfolio. don't move, "mad money" is back after the break. don't miss a second of "mad money," follow @jimcramer on twitter. have a question? tweet cramer #madtweets. send jim an e-mail to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.

don't just visit new york. visit tripadvisor new york. with millions of reviews, tripadvisor makes any destination better. you need to see this. show 'em the curve. ♪ do you know what this means?

the greater the curvature, the bigger the difference. [sci-fi tractor beam sound] ...sucked me right in... it's beautiful. gotta admit one thing... ...can't beat the view. ♪ introducing the world's first curved ultra high definition television from samsung. for it's a challengefornia fostto replace clothes that are too small or worn out. i grew 3 inches last year. i don't need anything fancy. i never had much to begin with. when i look nice on the outside, i feel better on the inside. to help, sleep train is collecting new clothes for kids big and small. bring your gift to any sleep train,

and help make a foster child's day a little brighter. not everyone can be a foster parent, but anyone can help a foster child. what do we do with dunkin brands? the owner of two major chains, dunkin' donuts and baskin-robbins with the stock down 4.9% year to date. i've liked dunkin for a long time and not just because my dunkin extra skim from the store in union street helps fuel my hyperactive behavior, but because this company has a strong story. they have 100% franchise business model which makes it much cheaper for the company to

grow while also insulating them from raw cost inflation and it's a classic regional to national to international growth story. the company has 18,250 points of distribution, across 55 countries, but within the united states they're mostly concentrated in the eastern half of the country and the international expansion early innings. they increased their store count by 5% and another 5% increase. for the record i used to love the bear claws, but that was 28 pounds ago. dunkin paid you a solid yield and it's got 2% yield and while the company missed the earnings estimates when it reported in april and much of that came from the weather and it's too easily understood. half of the u.s. business located in the northeast corridor where it was in florida the business was very strong. it's gotten nicer weather now and dunkin's numbers will warm up, too. let's take a closer look with nigel travis, the chairman and ceo of dunkin brands to hear more about his company, how it's doing and where it's headed. welcome back to "mad money." have a seat. have a seat. the first question on everyone's

minds. frankly, i can ask it as well. i think this expresses it best ♪ ♪ ♪ i've been thinking why can't i have you on the west coast, baby ♪ ♪ >> that's not you singing, is it? >> that is viral, and we know millions of people have watched that video and we are wondering how long will it take to open all those stores and is california so expensive and they've got the higher wages that you can't just roll out a thousand in the next 18 months? >> here's a positive answer. on our earnings call the the first quarter that you referred to we actually brought it forward. we said the stores will open at the end of the year. we actually have two or three alternative points of distribution there right now. we have one on an army base, we have one in a hotel and they're doing great. for all those people who write me letters and send me tweets. >> and the song -- >> by the way, that was an interesting video. how did it happen?

how did it happen? >> people do that all of the time. they send in videos with doughnuts. they send in videos with coffee, but people love our brand, and i think that shows the enthusiasm that people have right out there on the west coast. that makes me even more enthusiasm about the western expansion. >> i have been, too, now. tomorrow big day, used to be national doughnut day and now it's global doughnut day. what happens? >> tomorrow in the u.s., if you go in and buy a beverage you get a free doughnut and the one we're pushing is the blueberry doughnut. blueberry cobbler doughnut which is this one here. >> okay. it's got great blueberry filling. >> all right. here is a jim cramer exclusive. you like that, don't you? >> sure, i do. >> it's global doughnut day. everywhere else in the world in the u.s. it's the smiley face doughnut. >> i like that. that's the universal symbol of happiness. >> yeah. >> it's true. >> it is. >> let me tell you here, i feel here's what's going to happen.

all right? because of how crowded it is and even though they've got great people at union place behind the counter, i fear that the line will be too long and that my through put would take too long because i like my coffee when i want it, what can we do about that? >> several things. first, we encourage people to go through the drive-through and people do go through the drive-through. we spent a lot of time on speeding up the drive-through. we said on earnings calls that we've had had a little bit of blockage on the sandwich station. >> know some. it takes too long! >> we're revolutionizing from our office in canton, massachusetts. upon we have a brand new sandwich station that will speed it up and it will be extra capacity because the good news is people are buying more and more sandwiches of ours. that's the other side of that. >> i love this, when i'm on the road -- whenever i'm driving, wherever i go, and i've got to tell you, most of the places -- most of the places that are roadside, the line's too long

and there are people who don't know how to order. when can i order on my smartphone? >> we're looking at that. we've already started with the app which is, as we reported in the first quarter of over 6 million downloads and now you've got the perks. we're looking at how we can utilize that and make it available for people to come along and particularly regular customers like you. i think if we can have some kind of set menu and then a beacon. i think the beacon is the link there. we're working it out right now. i don't want to give you a date. you know i'm big on technology, and i really think there is a big opportunity. >> you know a lot of us, our people know what we want. >> i always feel i'm eighth deep in the line, but they know exactly what i want. why isn't there a way that they can get it where i'm not cutting. >> it comes down to a number of people working in the store, but i think technology is the answer. >> i do, too. you've got to give it to us. >> the key word i know it's a

big buzz phrase in i.t. circles right now is beaconson. we're investigating and a few other people are investigating it. so i think you've spur mead to go back and put more behind it. >> i like the perks program, but would you ever give us a special line? funny you should say that because our biggest franchisee in new england asked me that very question last week. >> that's what we want. so again, we'll listen to our feedback and the franchisees' feedback and as soon as we do it, you'll let us know. >> it's absolutely true, right? the weather. there were too many places where schools close. where people didn't get to do the routine and it's part offa i routine and the routine was disrupted, by the way. >> these days, if you get up in the morning and you see 18 inches of snow as we had in massachusetts, you can work from home. 20 years ago. >> good point. >> 20 years ago you used to somehow make it into the office because your files were there and your computer was there and

you have it all at home. i've done it myself. so it is very disruptive and i was listening to a program about ford yesterday and they were saying well, they missed some sales in the early parts of the year and they could make it up in april and may. you don't come back in april for the coffee you didn't get in january. >> how are you doing with coffee prices? i know they've peaked and i know there is a lag. i pay $2.67. i would pay $3 and not know a difference and there would be a lot of people that would feel that. >> people do pay attention to prices. our franchisees have done an unbelievable job controlling kof tote consumers. yes, prices have been going up, and the franchisees have done a good job going forward and you're right. the coffee futures are now at a bear market and that's encouraging. you will see an increase in coffee prices this year. it won't be much, but everyone cells doing it. we look at what the competition is doing, but you will see the prices go up a little bit.

>> i'm sticking with your stock from the day it came public and i'm sticking with it right now. that's nigel travis and dunkin brands ceo and always open totion suggestions about how to make it faster for us to get our coffee at dunkin' donuts. mad money is after the break. coming up issue the perfect accessory, kors, and fossil. cramer thinks only some fit in your portfolio. find out the best plays next. sa. cramer thinks only some fit in your portfolio. find out the best plays next. pa. cramer thinks only some fit in your portfolio. find out the best plays next. da. cramer thinks only some fit in your portfolio. find out the best plays next. ea fossil. cramer thinks only some fit in your portfolio. find out the best plays next.

♪ ♪fame, makes a man take things over♪ ♪fame, lets him loose, hard to swallow♪ ♪fame, puts you there where things are hollow♪ the evolution of luxury continues. the next generation 2015 escalade. ♪fame

♪ ♪ we know that retail has been incredibly hit or miss lately. the whole group is a total mixed bag and an unpredictable one, at that. take the accessories business, hand bags, watches, jewelry. the fastest growing product category in the entire luxury goods industry in the decade. this has become a minefield. bradley reported a hideous miss and downside guidance to boot and that's why the stock dropped 9.81% in a single session. what about fossil who delivered a dog of a quarter nearly lost 10% of the value and don't even get me started on the disaster that is coach. retail is a mixed bag. yeah, couldn't resist.

you also have companies that are doing pretty darn well. so let's take a look at two of the hottest accessory brands out there. kate spade and michael kors. to see what's working and why it's working and whether which one is worth buying. yep, it's kate versus kors! these are two companies that have a lot in common. even when you look back in the rear-view mirror they've had different trajectories. michael kors, for example has been around for 30 years and it only came public in the end of 2011 and since then the stock has been going higher, pretty much in a straight line if the company reported a strong carter. they never had hair on it it. kors has become one of the most popular high-end brands out well selling a ton of handbags from 200 to 800 dollars any women's apparel, kors has licensed out the brand to fossil for watches and jewelry for a decade now and it's not surprising when fossil

reported the ugly quarter the one bright spot was michael kors' branded merchandise. kors is taking share especially from coach and its brand already popular in america is starting to grow awareness overseas. kate spade, on the other hand, very different story that somehow taken them to a very similar place. kate spade itself has been a popular handbag for ages and company itself has had a troubled past. in fact, you might not recognize the k-a-t-e ticket and it was known as kate and pacific. the company was known as liz claiborne. liz claiborne had a hideous meltdown several years ago and if you'd asked me not that long ago if this company would have become a beloved highflier that had a share, i would have laughed in your face. liz claiborne had a weak product portfolio. over the last few years it's become this company whether you

want to call it liz or fifth pacific or the kate spade and company has had an incredible turnaround and it's sold a lot of its brands and jetson and liz claiborne making jc penney its exclusive retail. tonight between sold dana buchman to kohl's and manage said they would focus three brands, juicy couture, lucky brands and that's a jean company, and kate spade. last year they sold off juicy and lucky and focused almost exclusively on their best brand, kate spade. craig lelevitt, the man running the brand since 2008 taking over as ceo this year. take this as an cinderella story with the unattracted liz claiborne, transforming itself into the very sexy kate spade. which one is better? at first we need to look at their business models. michael kors gets 48% of the sales from retail. via 288 stores in north america

and 117 stores overseas in europe and japan. the company gets roughly the same amount of the sales from wholesale. where its products selling in thousands of of department stores both here and abroad. as for kate spade, the company has a rapidly growing retail business that accounts for the bulk of their sales and 325 stores under kate spade new york, kate spade saturday and jack spade brands, kate gets 25% of the sales from wholesale which means they have a better mix fr than michael kors. both companies also have the vast bulk of their sales from the united states with smaller, but rapidly growing international business. europe and japan and kors and southeast asia and japan. i love the way europe has been delivering for kors. how about some numbers? in its latest quarter michael kors posted a 26% gain in overall same-store sales. that's very impressive, right? it was deceleration from the 40-% plus comps that some people didn't like that.

although in europe their comps are up 62%. kate on the other hand is putting up struly spectacular numbers and the latest quarter, overall same-store sales growth, grew at a 43% clip. the pace at which they build new stores. michael kors believes they can have 400 storeses in north america and it's up from 288, 1200 in europe or japan. they're planning on opening another mom and shop looks within want tos on top of the 1500 or so they already have. so kors is a solid runway for expanding the store count earning specially in europe. kate spade has a massive expansion opportunity and the company has 225 total stores and personalingment thinks they can grow that to 600 globally and they've acquired rights to the southeast and businesses and what else here? kate, higher gross margin, 61%

versus 69.9% of michael kors. in the retail segment kors saw a decline of 92 basis points which is one of the reasons why the stock drop frommed 97 and change down to 92 after the report. another reason being inventory worries pointed out by cnbc and the street.com colleague herb greenberg in his proprietary reality check report. so which is the better stock? kate spade has been putting up stronger numbers and it's smart which means it has more room to grow. both stocks have room to grow. kate is up an eye-popping 78%. kors sells for cheaper and despite the 23% long-term growth rate. kate spade sells for 53 times next year's numbers and that's a real highflier. if kate sum stumbles or drops the ball in any way the stock can be be on lit the rated whereas kors has more cushion. so here's the bottom line. if you're willing to take the risk, that comes with owninging

a highflier, kate spade might be the accessories player for you. for me, i prefer michael kors with the much cheaper stock even though the remarkable run, although as for viewer bradley and coach, someone call a handbag kr. paddles clear. bob in new york. been? >> reporter: good afternoon, jimmy. >> hey, how are you doing, bob? >> i'm a lifetime holder of a firm called irk connicks brand so they call me iconics bob. >> what a stock, huh? >> $2.50 a share going back many years and i feel like buying everybody a round of fibonaccis. >> i'm so glad i brought that up. my own bags provided by my father's own. what's up? >> i like it as much at 43 as much as i have in 40 years. we have a short squeeze going right now. it's awesome, like a dark hole. it's a mammoth short squeeze and

we have an improving and reliable earnings stream. it's just a sensational situation, it was low amount of stock outstanding with tremendous amount of shorts and i don't know what the hell they're doing. >> what's the short story? i mean, i know, the shorts will tell me, jim cramer, and i like the story very much. it's just people can say listen, they're just trading brand names and they have the peanuts brand that we like so much and that will be good, i think the shorts will not make money in this name. let's any to fween in of j jeff. it's great talking to you. i feel you're the poor man's warren buffett. i love your style. >> well, thank you. >> new. i like that. take it where you can get it. go ahead. >> i mean it sincerely. i've listened to you. i may not always agree with you because i always buy with a gut feeling.

>> good. gut feeling, follow it up with homework is the best way to go. >> i do. >> go ahead. >> why is everyone down on jc penney? >> because people feel there say big dilution and they won't fall on the bottom line. i have told you that i think i believe in the term, okay? i think that j.c. penney, look, i'm not saying this stock will roar to the mid teens. i am saying that mr. oldman has got to go and if the stock goes higher, check out your j.c. penney. it looks a lot better than it it used to. mine does. in our view versus kate spade showdown, two very hot stocks of two very high brands and i like kors as the cheaper stock and still ahead had, a special look inside the secret club that actually runs the world. "mad money" will be right back.

despite the shady practices to keep the stock market from being a level playing field, despite the chick anry we saw with bonds in the lead-up to the financial crisis, the least regulated and most manipulated asset class out there isn't stocks or bonns, it's commodities. unlike the high-profile world of stocks and bonds they mostly stay under the radar screen even though they play a huge role like wheat, corn, soybeans, oil, all that matter the day to day cost of living. that's why today i'm thrilled to be talking to cnbc's own kate kelly author of "the secret club that runs the world," kate, welcome to "mad money". >> thank you so much, jim. it's a pleasure to be here. >> i'm not going to mince any words because i lovered your book. >> thank you. >> i could not find a redeeming thing about the commodity

trades. >> i'm not kidding, start to finish. >> what about some of the knowledge they have about the markets? >> they studied chemistry at oxford. >> why won't they all be professors? >> honestly, katie, right from the beginning with the guy who is rich and gets married and stuff. at first i said maybe i'm jealous and then i said what did she create? right. you have to wonder what motivates you to become a commodity trader. one of the reasons i was interested in this topic is i had a contact, a guy that was based in this area, and he said you have to have daddy issues to be in this business. i don't know why anyone is crazy to do what i do. he's self-depri kating and seriously, you have to have a stomach for risk this which is surreal and you have to pretend everything is cool with your family when you can see standard deviations, and he said, i don't know, i have a gap to fill and i have caddy issues. >> these people operate, many of them as a tax on this had system

and you did some great reporting. you're at the end of the book about gary comb and goldman. >> right. there was a tax on aluminum. >> what they did was added a premium that users like coca-cola were paying to get aluminum out of the system. it's complicated and not that i think it's legal, but they're selling the asset. >> i thought they might have sold it because of the times article. >> the federal reserve said in january they indicated they're asking for comment, but they basically signalled that they think physical commodities are systemic risk and they talked about deepwater horizon and they talked about fukushima daiichi and said we don't need the banking system necessarily to be exposed to this kind of systemic risk. let other people do it and i think they've had a chilling effect. >> you get the financial people out of the actual market. >> i thought it was interesting. you made a point that the actual users of the commodities, big

users tend to be clueless. how can that be? >> i'm sympathetic to them and i want to get your view of this, too, coffee, we might call it the best performing thing and the scariest, most expensive thing and coffee is the most expensive major commodity this year and you were talking dunkin today and i'm sure we'll talk smuker this week. smuker rose prices 9% for coffee. howard schultz has made a point that it's single digit cost to starbucks, but he also has is a great hedger. >> he probably locked in prices two years ago in the arabica market before the drought ins bra il. >> your people throw their hands up and say i'm captive to these traders. >> they have all of the resources, too. why does coca-cola have to complain? >> here's the rub. we're in the business of selling coffee, airline seats, what have you. we don't want to get into this

game where we're outstarted, outgunned and they're limited to using more simple instruments, right? they want to use options and not futures, not swaps. even at southwest which is one of the best hedgers in the airline business and they have a mixed track record, by the way, but they called in in 2008 and saved themselves some money. >> but the delta instance, delta is a win-lose, right? did you come away thinking they were smarter or took too much risk some. >> with the refinery? i want these companies to be more informed and i think the more information you have about commodities, the smarter you are. >> right. and i know that klaus kleinfeld spin a tremendous amount of time, ceo of alcoa, analyzed the problem that no one else was able to crack. the reason why is absolutely true. i didn't know you got into their lives which is pretty amazing and i'm kind of shocked, but they have daddy issues and maybe they also had mommy issues. they wanted to talk to you about things that surprised me. >> no, this is the thing. the title of the book kind of

bespeaks what i learned. i had this thesis that you have a small club, essentially, very under the radar people that have a huge influence on the economy and we ended up using it as a title because they were so freakin' hard to find and talk to. it was amazing in the end that i got anything out of them, but once i broke the ice i did and they do realize that they were in this unique position and they want to vent about it a little bit. >> you're a great reporter and i think you're humble. >> thank you, jim. >> that's kate kell, the author of "the secret club that runs the world." you may be as enraged as i am. i know that's not the point of the book, but i was enraged about what these people do. stay with cramer. >> you know how i feel about making friends, i could care less, but family, that's a different story. >> boo-yah, jim! >> on june 13th we're celebrating our seventh annual special, it's a family affair. if you want to join cramer in studio for the special event head to madmoney.cnbc.com to

sign up for free tickets. >> the fa amly that invests together stays together. that i stays together. a that invests t stays together. m that invests tr stays together. il that invests together stays together. y that together stays together. ♪ [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪

my mom works at ge. humans. even when we cross our "ts" and dot our "i's", we still run into problems. that's why liberty mutual insurance

offers accident forgiveness with our auto policies. if you qualify, your rates won't go up due to your first accident. because making mistakes is only human, and so are we. we also offer new car replacement, so if you total your new car, we'll give you the money for a new one. call liberty mutual insurance at... and ask us all about our auto features, like guaranteed repairs, where if you get into an accident and use one of our certified repair shops, the repairs are guaranteed for life. so call... to talk with an insurance expert about everything that comes standard with our base auto policy. and if you switch, you could save up to $423. liberty mutual insurance -- responsibility. what's your policy?

it is time -- it is time for the lightning round on cramer's mad money. rapid-fire calls, [ indiscernible ] play until we hear this sound and then the lightning round is over. are you ready see daddy? i'll start with jim in arkansas, jim! >> i'm looking at jdlu, gyp, what do you think? >> keep looking, don't pull the trigger because we are american airlines fans aal! better name. all right. we're going right now to eric in michigan. eric! >> jim, dqm, long term and short term. it's been a real winner and i don't like the-year-old because the stocks sell so much, i like access, midstream better and ezra in florida. ezra? >> it's ezra from tampa, florida. i want on get your thoughts on charles schwab. schw. >> i'm a big believer in schwab. i believe that as the individuals realize that the

market is not going into bear market phase and they will any back, but slowly, but surely i sure think mary joe white cracks down on the high frequency traders. let's go to paul in vermont. >> i uponed yowanted your opini on xls. >> i prefer lockheed martin which was down the the other day. that's cheapest. let's go to adam in iowa. >> beeia, jim. >> boo-yah, adam. i'm wondering what your opinion is on gwinnett company. >> i think it's independent and i do prefer mile an right here and don't forget peridot. you have to wait until this quarter is over before you can pull the trigger. let's go to tim in california. tim! hey, cramer, i wanted to follow up with you with boston private. >> i like the banks. i think the interest rates right

now went from 2-5, 2-6 in the tenure and there's money going into the banks and i happen to like u.s. bancorp. let's go to pat in new york. pat! >> hi, jim cramer. >> i read your book sxoots really great. >> if i had you in school i would have been a rocket scientist now. >> well, you have to go to harvard you might want to do that at cal tech. go ahead. my stock is gilead. >> it's one of the big pharma apocalypse. we know biogen, and gilead and, of course, celgene on the breakout. >> buy, buy, buy! >> and that, ladies and gentlemen, is the conclusion of the lightning round! the lightning round is sponsored by t.d. ameritrade. ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪

it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. all on thinkorswim could help your business didavoid hours of delaynd test caused by slow internet from the phone company? that's enough time to record a memo. idea for sales giveaway. return a call. sign a contract. pick a tie. take a break with mr. duck. practice up for the business trip. fly to florida. win an award. close a deal. hire an intern. and still have time to spare. check your speed. see how fast your internet can be. switch now and add voice and tv for $34.90. comcassiness. built for business.

thanks heavens for mario draghi, the head of the european central bank and the man that might finally get europe back on its feet and i heard what draghi said to get europe moving again. i'm shocked at how he's being. deflation as much as inflation which makes sense because deflation helped cause the social unrest that brought the republic in germany and led to the third right and that still casts a long shadow over european monetary policy. draghi is not just trying to save the economy. he has to prove the eurozone could be a force for good and not just a wrecking ball especially in a moment when the

european parl am has a big block of ultra far right-wing members that make the illusion more pertinent than ever. i think this time draghi's efforts will work and while i have tremendous faith in what he's doing, the fact is no matter what the central bank ask, it makes europe such a tough place to invest in, and it's coming out of a great recession in part because we started ours earlier and they were totally blindsided initially. ben bernanke, former fed chief saved the day in the u.s. and jean claude trichet, often respected, took the exacton sit track and raised interest rates twice because he foolishly thought the continent was coming back strong. europe is still paying for those two rate increases. but just as important our treasury secretary tim geithner forced the recapitalization made them more capable of making

loans once the economy rebounds and its banks remain incapable of lending at the pace that can stimulate demand. they didn't clear the decks like our banks did. like a wells fargo or u.s. bancorp. why does this matter? the national headquarters in america that i followed does about 20% of its business in europe. the european operations only stopped hurting them about sick, maybe 12 months ago, but as far as helping the bottom line, that's only happened to a handful so far. i think draghi's forceful by any means necessary approach has turned fannie mae, and lender of first resort that something good won't happen to the european consumer economy. he's a remarkable man who has single-handedly saved europe from the lost decade and yet his job is still not finished. he's being helped by stimulus from all over the world including china, japan and india and he's not being helped by the united states.

and our gridlock do-nothing government where the administration is constantly at lagger heads with congress. a big part of the reason is not helpful is that we've been saved. the federal reserve has done everything it can to keep interest rates low and our economy is in much better shape. i wish our government was capable of doing something to address the still-high levels of unemployment and when i look at the foolish things the government has been doing, and at least when the government can't do anything, that means it can't make catastrophic mistakes. winston churchill was dead right when he said that democracy is the worst form of government except for all the others. the the unelected ben bernanke was a god send for the american economy and forio draghi is doing the same for europe. that's huge for all of the companies that do business over there and everyone who trades with the world's largest economy. stick with cramer. ining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better

and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.

amazon and twitter and j.d., reignited that whole group of e-commerce software and service play plays. all i can tell you is i don't want you to get greedy. they're trading vehicles and too expensive versus the rest of the market. they tend to have two to

three-day rallies and this was day one. don't get caught, all right? because they are still tooec pensive for this guy. that's all i really have to say. i like to say there's always a bull market somewhere, and i bull market somewhere, and i promise to try and find it >> narrator: in this episode of "american greed"... dr. mark weinberger, the self-proclaimed "nose doctor" has it all and he's not afraid to flaunt it. >> he had to be the big shot. he had to be different from everyone else. >> narrator: but inside the weinberger sinus clinic, all is not what it seems. >> all he did was bore two holes in my skull. >> i found it pretty appalling. he was basically cheating the patients and cheating the system. >> narrator: and when lawsuits threaten the empire he's built, the nose doctor heads for the hills.