web thing. >> a pool. >> a pool. i like that a web thing. wolverine reports tomorrow, triple ws. good, bad, my in addition is -- my mission is simple -- to make you money. i'm here to level the playing field for all investors. i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to kra mare ka. other people want to make friends. i'm just trying to make you money. my joshgs not just to entertain but teach you and coach you. so call me at 1-800-743-cnbc or tweet me @jimcramer. if this market were in grade school, where, by the way, it truly deserves to be, its report card would be a genuine horror show!

you'd see ds in arhett mettic and current events, another another es in science and reading comprehension and flatout fs in everything attitudinal from attention paid to helpfulness. dow climbing today 104 points, nasdaq jumping .56% and i hated the class work. in some cases the people who are getting these subpar grades they toil in the overpaid vigors of the brokerage houses that played such key roles in recommending stocks. in other cases it's the fearful sellers who dump things all at once for no particular reason. maybe it's because they're -- [ scary voice ] and buyers who only want to come in when the smoke clears. let me give you examples of the second-rate schoolwork that's become routine in this moronic market. i want to start with boeing because the attention deficit disorder here is ridiculous. all the rid until the world is

not going to solve this problem. let me tell you, here's the problem. for weeks now as boeing slid into the abyss of being the worst stock in the dow i've urged you to buy it ahead of the show that started just today. i've reiterated this judgment four times in the last ten shows. i told people to stop selling boeing and start buying because at the air show ceo jim mcmer knee, one of my 21 bankable executives if "get rich carefully" put all the worries to rest. i said he corrected the impression left by many analysts that the cycle is over, ended, revealing he's got more orders than he can handle. i said the fuel differential in the new planes is so great that another upgrade cycle is upon us thanks to the rising price of jet fuel. i said you shouldn't fret about boeing's declining defense business because it's baked in. and i told you that despite the endless drum beat that the republicans could kill the export/import bank which offers cheap financing, allowing boeing

to compete head to head against airbus, that the company remains confident the xm charter would be renewed. i did this over and over again. yet my support for boeing fell on deaf ears day after day. so finally i said i don't even care anymore. sell it if you want to. that's the kind of thing jim cramer on twiter, all right, just go -- i don't even care. so what happens this morning? sure enough, ceo jim mcnerney comes on tv and says the aerospace cycle is flourishing and will keep flourishing because of tremendous gains at saving fuel costs. the payback for airlines is almost immediate on the new planes. boeing's booked to bill for orders running ahead last year, expects it only to improve. the defense division, mcnerney said he saw the hit coming and scaled his business back before it became critical. however, the new tanker refueler program will provide decades of earnings plus -- and this one really kind of stymied me -- there will be organic growth contracts that aren't banked into the numbers. so what is the biggest problem

facing boeing today? demand. as in hallelujah! that's why boeing stock immediately gains back what it lost and then some. the market gets an f on this one for being so wrong for so long and exhausting the heck out of me. then there's urs, the big engineering construction firm that got a huge takeover bid today from a.e.com this weekend. i wanted to see how much overlap there were with these two companies and their federal business. i was concerned about antitrust action. i had to do some digging. what do you have to do? call up the research. what do they say about urs, the target, that it was undervalued and had to be bought? no, no, no. overvalued and should be sold last week. because no one would ever be stupid enough to buy this whole company. wall street wanted this stock sold by you even after a smart activist took a position and

pushed for a sale. how moronic is that? turns out urs is worth a lot to the acquirer even if not to the analyst which is why a.e.com rallied 10% on the news. i'm calling this research a gentlemanly e, not a c, for being completely unhelpful or think citigroup. just when pretty much everyone decided to write this bank off it reports a strong quarter, solves its entire justice department problem including its toxic ceo exposure, for a very decent price. as the biggest black hole, sidney holdings, that cordon of cats and dogs that was constantly bleeding. what did it do? it turned this quarter into a profit center. i couldn't believe it. i asked when i was doing my work on it to have that repeated. i said profit center? i want to be sure. citi's the exact opposite of wells fargo, a stock that's been a victim of not bad earnings but of high expectations.

the love for wells was only rivaled with the hatred for citi. both were wrong. how about this market's incredible lack of memory? i mean, geez, what this market -- this market would get on the s.a.t., i don't know, what do you get, the number of points when you sign your name? that's about all this market would get. just last week facebook collapsed under a a deluge of selling. when it was happening we heard declining user engagement to potential earnings shortfall. i decried, love that word rs that the decline was the handiwork of one or two sellers who were banging it down in a very thin holiday-ed a led market. sure enough, a week later, facebook is up the $5 that it lost as buyers flooded back in. where were those buyers last week? you know what what happeneded to facebook in reality? nothing happened to facebook. nothing happened to drive it down. nothing happened to drive it back up. random moves that do not inspire confidence. you want to see some real bad

arithmetic? consider the value subtraction we got from barclays today. wow, i read it this morning said, oh, barclays upgraded ap from a hold to buy! here we go! and why? competitor samsung, potential upside surprise. >> buy, buy, buy! >> got apple moving up more than a buck to 96. but should it have? as i dug deeper, here's what i found. what if i told you that the same exact analyst downgraded the stock from buy to hold in february at $75.88? now it's to 96. what school did you go to? not the one i hope that gives a kid a gold star or an upgrade without taking into account a downgrade at a much lower level. not that long ago the market couldn't give away gilead, one of my favorites in biotech for the revolutionary hepatitis c cure, one of my four horsemen.

i stuck by it. what do i know? dropped from 80, 70, 60, i didn't like it but i heard every major pharma player was working on a rival product and the insurance companies weren't going to pay for the drug's huge price target. the stock was pounded down to 65. people gave up on gilead. i was like, hey, i still like it, i still like it. what an idiot cramer is. wait a second. now it's at 90. you know why? making so much money as the insurers pay the company's freight, of course, it's a lifesaving drug for heaven's sake that it's now going to buy another company, diversify away from the hep c bill because it has so much money. how about whitey and pete buying kodiak this morning? kodiak was allegedly overvalued because of the incessant takeover talk that accompanied the stock, yet today whiting used a huge number of shares to buy it. that north dakota place we visited. what does whiting do? it's the acquirer. how much is it down? no. jumped six points.

whiting. so much for kodak being overvalued. more on this and urs later in the show. finally the action in alcoa, and i hate this, i hate this. this time last year wall street almost uniformly hated the stock. holding ceo klaus kleinfeld in contempt. i needed bullets. i needed ammo. every night i said to people this stock at 8 and 7, it's a buy. tell you to buy it. all right. now what's happened? 100% later alcoa is the most loved materials stock out there. analysts adore klaus' approach to closing expensive plants. the critics who wanted the company to break up, the one who is flame me every day -- how did they get my personal e-mail? oh now they love the finished product and the downstream model. ceo kleinfeld, he was a dope, right? now he's a visionary! except here's the thing. the stock's doubled. the move's already been made. they use the equity offering to pay for the aerospace

acquisition so then you can get in a lower price than the 16 bucks. i also wanted to out the clowns who told me to dis kleinfeld and i know all their names. but you know what, i've become in my older age way too jeffersonian to do that. my inner dalai lama would be none too happy. these are all examples of how poorly the market has been doing its job of valuing stocks. unfortunately for most the mistaken valuations are all case by case. you might not be able to benefit such if you own an index fund like the pros tell you to do to. the bottom line, so many deals and misvaluations out there you benefit from the idiocy that the market seems to show every day at the opening school bell. [ bell ] this warsburg in florida. warsburg. >> hey. >> i had a warsburg when i was in czechoslovakia. it was dynamite. czech republic. sorry. go ahead. >> caller: all right.

i've been -- i got into the silver stream stocks about a month ago and now i'm down 20%. and i don't know if should hold it or if i should just drop it. >> i don't like sodastream. every time the stock goes down someone comes out and says the fabulous ceo of pepsico is going the buy it. and then the stop goes up 10%. why don't we wait for some clown to make the rumor that is not going to be true that sodastream is about to be bought by one of these companies, then you can unload it. do i think that's what should happen? one time i said this is what does happen and people say that's what cramer wants. i don't want that to happen, but i do hope you can get out at a higher price as these bozos come in and tell you that pepsico's going to buy it for $48 a share. can i go to michael in florida, please? >> caller: yes, jim. michael. how you doing? >> all right. how are you doing? >> caller: fine, thank you. i just subscribed to your action alert. >> thank you. >> caller: it is absolutely fabulous. >> thank you.

>> caller: i see that a bank just put to neutral charles river lab, and i was wondering -- i own several hundred shares. what's your advice for me? >> michael, charles river lab, and we've had them on a number of times, they're doing great work and it's a great way for the drug companies to save money, but the earnings growth had been inconsistent. i think you're finding it, but it's not a table pounder. and you know i used to pound the table before -- well, let's just say no table pounding here. this market isn't making the grade when it comes to valuing stocks. it is kind of ridiculous. there are so many missed valuations out there you can benefit almost dele. on "mad money" tonight, krams and frymasters? i don't think they mix. a potential cook-up you can cash in on. then excuses and the real deal. then again, how many times did the dog actually eat your homework? tonight i'm calling out the companies that need to own up to the poor reports.

plus a new oil patch sparks a surge in domestic energy stocks. too late to tap in or is it a crime to go even higher? stick with cramer. >> don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer. #madtweets. send jim an e-mail. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.

sometimes the stock market can be down right predictable. take a company with two very different businesses under the same roof. we throw in an activist hedge fund pushing for a breakup, and suddenly you've got a tried-and-true recipe for making money. [ cash register sound ] we've seen this kind of story play out many times before, and in virtually every case you've done very well by betting on a potential breakup. >> buy, buy bishgs! >> which is why tonight i want to reintroduce you to the latest

activist-fueled braek-up candidate, ltw, a well run but frankly schizophrenic company that makes both cranes for construction and food service equipment for restaurants, two end markets that couldn't be any more different if they tried. needless to say, it doesn't take a genius to figure out it could save tremendous amount of value by splitting up into two. sure enough in late unjune we learned relational investors had taken an 8.25% stake in the company and urged management to spin off its food service businesses. after news, it jumped more than 10% in a single session, and believe me thats a lot of sense because relation nal is the same fund that pushed tkr into spinning out its commodity steel business as timkin steel. and those of you going in on timkin on that breakup have made a killing with the parent

company and the spin-off when you combine them. i think this could play out the same way. in fact, it seems to me somebody at relational investors must have a copy of "get rich carefully" because in the book i wrote about how manitowoc could be an ideal breakup candidate. i recommended it back in 2012 as a breakup candidate. in less than two years since then it's given you more than a 119% return, serious magnificent outperformance, especially giving the inconsistent earnings the company has had in the last decade. it's not done. i think it could have a lot more room to run and not just because there's finally a very effective activist in here pushing for the company to unlock value like i've been saying it should for amgs. the truth is with nonresidential construction markets finally heating up in this country -- and boy, is that a long time coming -- manitowoc's crane

business is a heck of a lot more than years ago when i recommended it and that's when why i feel a breakup makes more sense than ever. otherwise they never get the credit they deserve for the more cyclical side of its business. it's a very old company. they've been around more than a century, originally founded as a shipbuilding concern that got into the ice business in the 1940s. fast forward to today, and the company's all about cranes, that's 60% of its revenue, and food service equipment, ice. well, of course now much more than that, which accounts for other 40%. and at this point i think it verges on the insane to keep the crane business and the food business under the same roof. it's not just legacy. it's history. they're in desperate need of a divorce, and believe me that's something i understand. at least when it comes to corporations and the alimony they pay when they separate. what's so wrong about running two very different businesses

within the same company? why not make cranes for construction and frymasters for fast foods? well, simple. i mean, i often talk about how there are two different kinds of companies, cyclical names that do well when the economy is improving and secular growth ones that have rel live the consistent numbers regardless of the overall economy. manitowoc's crane division where it's the number-one maker of lattice boom crawler cranes, tower cranes, and all-terrain cranes. you see their stuff everywhere. as well as being the top maker op boom trucks in the u.s. is the very definition of cyclical business. when the economy gets going, commercial construction really starts heating up, then the earnings for manitowoc's crane segment, they explode higher. that's where we are right now. lately manitowoc's been seeing strong orders in its crane business and on their latest conference call management implied it would pick up even more in the second half of the year, which has now arrived. or just look at the action in a big earth mover like caterpillar. what a stock that has been.

c.a.t. you can see the cyclical are very much in favor at this moment and i think the market would be willing to pay handsomely for manitowoc's stock if it were a pure play on cranes. the market wants a new pure play in the cyclical business. but as long as manitowoc keeps its food service business it will never be a pure-play cyclical. that's because the company's food division is much more secular and growth oriented. granted it's a high quality business. they're known as the leading manufacturer of service equipment like refrigerators, grills, frymasters and beverage dispensers for many restaurants. but they won't explode higher as the economy improves here and around the globe. i know some people say it's a nice offset. that's not the way it's working in the market right now. if manitowoc were to follow my advice, which by the way is the same advice that relational investors is giving them, and just spin with the darn food service division, i think both

companies would get higher priced earnings to multiple separately certainly as they're getting together. that's because investors love it when a company is easy to understand. with businesses that all point in the same direction. right now if you're a hedge fund or mutual fund that wants a pure play on construction, you wouldn't buy manitowoc. what would you do with that food service business? if you want a pure play on food service equipment, you wouldn't buy manitowoc. what are you going do with cranes? break the company up with investors willing to put their money into both components. how much value could be unlocked by a breakup? if we value manitowoc's crane business at nine times next year before interest, taxes, depreciation and amortization, a slight deduction from others, though it fits manitowoc better than these, it would be worth $3.5 billion. write that down. $3.5 billion. say you value your food service earnings at 12 times, also a slight discount to the closest

analog out there. then the food service spin-off would be worth about $4.25 billion. put it all together. a broken-up manitowoc would be worth $42 per share. that is a 32% premium to where the stock is currently trading. ♪ hallelujah one holdup, the fact that manitowoc's management has historically been very reluctant to spin out their food service business. management believes that the food service biz gives them some nice diversification away from its cyclical crane portfolio. they're playing diversified with the company. but the newfound pressure from the relational investors, who most always get their way, i think my proposed manitowoc breakup is more likely become a reality. it's what the market wants. here's the bottom line. if you've been riding this rally in manitowoc since i recommended the stock back in september of 2012, i suggest you have to ring the register a little bit, come on, at least half your position,

cover the house's money you can, but if you didn't catch that move, don't worry. plenty of upside as manitowoc's crane business is heating up and we have activists pushing for the breakup this company so badly needs. remember timkin's management originally opposed relational's proposal to split their business in half. they ultimately got relational religion. i think manitowoc will too. why don't we start the questions with larry in minnesota. larry. >> caller: boo-yah, jim. >> boo-yah, larry. >> caller: question about qvi. bought it a while back when you recommended it. looks like it may have started to turn today. what do you think about it? >> a lot of people turn on the stock if they didn't like the last quarter. when you see a stock down here in all these different projects -- natural gas, liquids, construction projects -- i would not want to go away from the engineering construction business particularly with the merge with

urs. i think cbi and i think it's a darn good company and needs to tell its story. jay in north carolina. jay. >> caller: boo-yah, jim. thanks for taking my call. >> all pleasure mine, jay. >> caller: questions on builders first source, bldr. seemed to be rolling along at the beginning of the year, seems to have lost a little momentum here in past two months. >> boy, that's a twuchb for me. you know why that's a tough one for me? because building products has become such an after-lumber liquidators. i am so gun shy that i've got to do more work before i opine on the answer. what do cranes and food have in common? very little. and that's why manitowoc should die vest its businesses. sure the stock's rallied big, but i think there's still plenty of upside. still more "mad money" ahead. when retailers don't meet the market, they blame everything from the weather to former employees. tonight i'm applying some truth serum to find out which could be ready to rebound.

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[ radio chatter ] ♪ [ male announcer ] andrew. rita. sandy. ♪ meet chris jackie joe. minor damage, or major disaster, when you need us most, we're there. state farm. we're a force of nature, too. ♪ when a company misses the numbers and management starts making excuses, how can you tell whether their alibi is legitimate or down right questionable or even so

ridiculous -- as to be silly? this is a problem that comes up a lot during earnings season. and tonight i'm revealing my solution. a tool that will help you figure out if the ceo at a company that disappointed you -- >> boo! >> -- deserves to be believed. i call it the "mad money" credibility scale. to show you how this works, let's take a look at the excuses offered by four separate retail ceos who delivered some pretty sad results just last week. >> the house of pain. >> we're going to rate these alibis from 1 to 10, 10 being the most believable and 1 being the least believable. the least credible. first we have the container store, which reported awful numbers last tuesday, saw the stock get hammered the very next day. how did the container store ceo

defend the company's performance? on the conference call, he did something bold -- he took no responsibility whatsoever saying, "but now we've come to realize it's more than just weather and calendar, consistent with so many of our fellow retailers, we're experiencing a retail funk." so many retailers that we talk to are experiencing that. a retail funk. i've got to give this guy points for innovation, at least when it comes to formulating excuse. unfortunately his grand funk retail story doesn't exactly reek of credibility, and not just because there are plenty of other retailers out there doing just fine. this isn't the first time tindall told us it's not with the container store, it's with everybody. last time it also missed numbers by the mile. that time he said it's the

weather. now that the temperature is balmy he has to find something else to blame. so the container store is suddenly victim of a retail funk. here's the thing. the weather excuse, ah, somewhat believable. but the funk? i mean, please. williams-sonoma and restoration harbor, they didn't say anything about a funk when they blew away the numbers. in fact, they expect optimism about the state of the consumer. you'd think these guys were operating in a different universe. but when the container store was doing its road show ahead of the company's ipo issuer, williams sonoma and harbor is who they compared themselves too. where does the alibi fall on the credibility scale? i'm giving it trois, a 3, meaning maybe he believe what is he's saying but i don't. retail funk? more like a container store funk. and i don't see it going away until the ceo steps up and starts taking responsibility for his company's problems. next excuse maker, tractor

supply, which gave us a look wednesday. what plagued this farm and garden chain so much that it felt the need to preannounce and punish its shareholders? why don't we hear it from the horse's mouth, ceo greg sanford. he said, and i quote, "the challenging spring weather conditions we experienced in the first quarter persisted even later into the second quarter than the prior year." okay. all right. all right. it sounds like we had another ceo blaming the weather. but wait a second. if you read on, you find out that as the quarter progressed and the weather improved so, too, did tractor supply business. with the second half of the quarter being much better than the first and traffic picking up steadily in both june and july. i'll be honest. not only do i actually believe tractor supply's alibi, but i'm impressed with their analysis. we did have a late spring. and when many of our customers are farmers, generally or otherwise, that matters. with business now picking up, i

bet management is being conservative here by resetting expectations lower. i give mr. sanford an 8 on the credibility scale, meaning very credible. that said, i can't recommend tractor supply aggressively as these levels because the stock is all about consistency. if it can't deliver consistent numbers it deserves a lower price-to-earnings multiple. third, ahem, timber! we got lumber liquidators. north america's largest specialty retailer of hardwood flooring and the back stop for many a stadium. last wednesday, this company came out with a drastic negative preannouncement, just slashing its earnings forecast, reporting a hideous 7% decline in same store sales for the current quarter. what excuse did ceo robert lynch have for his company's hideous performance? all right. let's see, and i quote, "customer traffic to our stores was significantly weaker than we expected, particularly in geographic areas severely impacted by the unusually harsh winter in the first quarter.

the improvement in customer demand we experienced beginning in mid-march did not carry into may and june, weakening further." all right. let me think. let me think. they say is reduced traffic coincides with weak mac macroeconomic trends related to residential remodeling and that the weak traffic trends could continue until the spring of 2015. all right. come on. how on sert the bad weather from the first quarter still hurting lumber liquidators? lynch explains, here's a new one -- i didn't know this, and i've done many a flooring job -- once a customer cannes ems a prospective flooring job because of the weather, he or she tends not to reschedule it promptly and will often push it far back on their calendars. huh? i don't buy it. you can blame the weather for the first quarter's weakness but there's no excuse for may and june to be as weak as they were, especially since things seemed to be getting worse this time, not better.

also when the ceo says traffic will be weak until next spring, i mean, you got to wonder what's going on under the hood. one bad winter could ruin lumber liquidators's entire year is laughable. i didn't believe in his explanation, and the investors didn't either, which is why the stock lost 25% of its value following preannouncement. i'm giving them deux, a 2. finally, family dollar, the worst run of the dollar stores, which just reported third straight earnings last week. ceo howard levine's excuse, "while our long-term positioning and growth prospects remain strong, our results continue to be pressured by a difficult competitive economic environment. our core low-income customers continue to deal with elevated unemployment level, cuts to government benefits and volatility in energy prices. they are tightly managing their spending as a result." all right, guys. i have to say, levine takes the ally game to a whole new level. he makes it sound like the plight of the family dollar is

the same as the plight of a middle guy. if he'd only just do something to fix poverty and unemployment and high gasoline prices in this country then family dollar would do just fine. until then, he makes it sound like the whole dollar store category will keep suffering. that is the most bogus reasoning i've heard yet. i'm surprised he didn't blame the lost war on poverty. look, there are two other publicly traded, dollar tree and dollar general and their last conference calls were bullish, how business keeps improving now that the weather isn't so horrible. if levine's ally bye had any truth to it, his competitors would be suffering too, right? make sebs? it does to me. and one more element to consider. the fact levine has a history of making excuses for family dollar's results. back in january he spent half the quarterly conference call blaming his former chief operating officer for the company's underperformance. some ceos just never take responsibility for their company's well faeshgs and i think that's what we're seeing at family dollar, which is why i give howard levine a 1 on the

credibility scale. here's the bottom line. when a company keeps putting up lousy results and management makes excuses instead of taking responsibility, you better seriously evaluate those alibis before taking them to heart. tractor supply, legitimate excuse. container store, lumber liquidators, family dollar, they're just dodging the real issues. so you know what? i say the alibis, they must end. going forward, either stand and deliver or just plain blame yourselves period. end of story. still more "mad money" ahead. activist alert -- he did wit wendy's, but now nelson peltz is going to the bank. find out if it's time to make a deposit. then a deal on america's energy sweet spot today. could it just be the beginning? find out which stocks could still shoot higher. and your calls rapid-fire on the lightning round just ahead. stick with cramer. ♪

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piggybacking, where you buy a stock just because some famously successful hedge fund manager owns it too, is an anathema to my philosophy of investing. [ buzzer ] i believe in buying on homework and knowing what you own so that you can make your own decisions about whether it makes sense to sell or buy. >> sell, sell, sell! buy, buy, buy! >> but when you purchase a stock just because someone else likes it, even if that person is a stock-picking genius, you're actually begging for trouble. these hedge fund managers have no obligation to tell you anything, not their strategy, not when they're going to sell, and often the simple disclosure of the one that they own -- sometimes it will drive price up versus where they themselves pay for it. so trying to piggyback off starts off from the beginning as a sucker's game. this is true even with most activist investors where you're investigation alongside a hedge fund that's aggressively pursuing and pushing management to unlock value. now when i did my research, i found that you cannot beat the

market. in other words, you bought a stock versus thousand s&p did that day going forward. you couldn't beat the market by piggybacking off the vast majority of activists. but there has been one exception to this rule, an exception i write about in the book. i discovered if you invested alongside nelson peltz buying after, not before and not -- after, right after they're announced, right, as the stock is even run, you still would have consistently beaten the market. over and over and over again pig by backing off peltz has worked, paid off. at the end of june we learned his triumph fund has built up 2.5% stake in bank of new york melon and that he wants to have discussion with management about ideas which would, quote, drive long-term growth and enhance shareholder value, i was viv etted. caught my attention. bank of new york melon jumped 30e6r% on the news, but i think it has more room to run. i told you even after an announced peltz position, you can still beat the market.

let me tell you why. melon is a kaus cust toad yal bank safeguarding $28 trillion in assets for money managers and assets and ore client, also an investment manager. i wouldn't necessarily say that the bank is troubled, no question it's been lagging its competitors and the two best ones we think about are state street and northern trust. that said nelson peltz has tremendous experience in helping to turn around challenged financial companies. in october of 2011, peltz's triumph took a stake in state street, a custodial bank like mel melon. at the time it urged them to spin off its money management unit and they refused to sell their asset management business, but they got aggressive about cutting costs and returning capital to shareholders in part i think because they felt pressure to deliver results. by the time peltz exited his position a little more than two years later, state street had more than doubled. how about legg mason? another venerable financial firm that peltsz got involved in after the company had fallen on

hard times. peltz is actually on legg mason's board of directors with his company. and since the standstill agreement preventing him from arding more shares late in 2012, the stock has rallied a spectacular 97%, trouncing the 39% gain the s&p 500 over the same period. that's extraordinary outperformance. if peltz can work the same kind of magic with bmy melon we saw with state street and legg mason, and the upside, i'm calling it enormous, i think he's likely to put pressure on the bank to cut costs and sell or spin off assets or units like the corporate trust business, possibly the asset management business, which is what he proposed to do at state street. i wouldn't be surprised if we hear more about peltz's plans nor melon at the alpha conference this wednesday where i'll be interviewing the treasury secretary jack lew. at last year's alpha conference, peltz laid out big plans for pepsico and another, which have returned big. also telling us he was buying shares of dupont, which gave 17%

return with dividends. who know? maybe bank of new york melon could be his next delivering alpha winner on wednesday. i could go on and on about peltz's performance. he joined ingersoll rand, since then outpacing the s&p, in part because he successfully convinced management to spin off some units. how about heinz, 75% gain since the date peltz joined the board in 2006, the date it was acquired by berkshire hathaway and another consortium last year. s&p up 15% in the same period. this story isn't about nelson peltz, although the fact he's taken a position at bny melon is positive and his recent moves to cut costs could be accelerated by his presence. here's the bottom line. piggybacking is almost always a mistake, but we know empirically there's one exception to this rule, and that's if you're piggybacking off nelson peltz. he's a different kind of activist fund manager who works with executives at the companies he takes a position in rather than trying to bully them into

submission like so many others. now we found out that peltz has taken a stake in bank of new york melon, i think you want to own this stock because it's just like state street where you caught a double in the two years after he got involved. oh, you know what, i'd do some buying ahead of cnbc's alpha conference on wednesday because you can catch a nice piece -- a nice gain and peltz talks about it. remember, though, please, when it comes to peltz, don't take the pennyings. be long-term greedy. that's his way. it should be your way too. stay with cramer. in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today.

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it is time! if the lightning round! >> buy, buy, buy, sell, sell, sell! >> then the lightning round is over. are you ready? time for the lightning round. paul in nevada. paul. >> caller: hi, jim. thanks for taking my call and thanks for helping me make

money. just started reading your book, "get rich carefully," and it's doing great. my question is what's going on with whole foods market? >> yeah. here's the problem with whole foods. we need to see a couple good quarters in a row. you can say jim, you'll cause me to miss three, four points on the joup side. jut, it's too expensive if they continue to have not as good as they've said earnings. so we have to wait. i'd love to tell you to buy it but i have to wait. let's go to joan in virginia. joan. >> caller: hello, jim. this is joan black in petersb g petersburg, virginia. >> civil war battlefront. what's up? >> caller: right. well, great to speak with you. i need your word on biomarin. >> the stock is too low. it's not kept pace with celgene, gilead, with biogen. it doesn't deserve to be in that group but it does deserve to be higher. how about we go to donald in

arizona. >> caller: boo-yah from donald in arizona. my stock is puma. >> i prefer that to biogenesis. don in illinois. >> caller: boo-yah from carbondale, illinois. >> beautiful. what's up? i've been there. >> caller: you have. >> yes, i have. i had a friend who went to college there. >> caller: really. well, we'd love to have you come back to southern illinois university. >> i know. very nice. thank you. >> caller: my stock, jim, is apache. apa. >> oh, man. apache is the overlooking independent oil, i like that stock so much. i think you should buy it. if you own it, i would buy more. and that, ladies and gentlemen, is the conclusion of the declan-inspired lightning round! [bell rings] ♪

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did whiting petroleum hear footsteps? that's the first thing i thought when i heard yesterday that the company's buying kodiak oil and gas or kog, a fellow traveler in the region of north dakota, in a $6 billion deal. that amazing bid did little for kodiak's stock. takeover speculation, but it sent whiting soaring more than 7%. exactly a year ago where with its stock at eight bucks and

change could have had sold itself and whiting apparently decided to take a pass. since then there's been a real acceleration of finds. north dakota has become the second largest oil producer in america leap-frogging alaska and california. something almost no one thought possible even four years ago. what do i find most spreintrigu though, if you asked me going into this session which oil company would be most likely to be acquired in that shell, it wouldn't have been kodiak. it would have been bhiting. at $9 billion, certainly swallowable, and several companies made it clear they wish they had more american exposure, especially statoil, which brought brigham for cash three years ago. i know from speaking with statoil's management on this show that the company regarded the brigham acquisition as incredibly successful, which is very important considering the receding production lines.

could the much-overlooked kodiak be the poison pill whiting was looking for? to me this deal feels a lot like when hill scheyer brands tried to buy pinnacle foods maker bird's eye on the heels of what turned out to be a big takeover offer from tyson that we didn't learn about until later. of course a bidding war ensued for hillscheyer. it wouldn't shock me to learn that whiting had been in contact with the buyer too and kodiak simply pinnacle in the patch. i love the stock of whiting petroleum and have always felt it to be very undervalued. i can't blame any company for trying to steal whiting at these low prices. feels like this and another announcement today where a.e. com bought ur, is s as it brings consolidation to the engineering construction business remain the most lucrative portion of this market.

they force you to revalue stocks on a daily basis. today it's the oil patch and the engineering construction stocks. last week auto part, the week before medical device, before that, biotechs. does anyone see a pattern? i know one thing -- the bears sure don't. stick with cramer. ♪ during the cadillac summer's best event, lease this all new 2014 cts for around $459 a month or purchase with 0% apr and make this the summer of style.

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big bank earnings tomorrow. >> narrator: in this episode of "american greed," meet the attorney who swears he can make the dreams of couples wanting children come true. >> these people weren't looking for money. they wanted a family, and he preyed upon that. >> narrator: he promises babies for a hefty price. >> i'm thinking, "oh, my god, there's a baby. how are we gonna come up with all this money?" >> narrator: but kevin cohen is actually a merciless con artist, brokering deals that shocked investigators. >> i've never seen anything like this before. he had every angle figured out. >> narrator: and he callously exploits the hopes and desires of people just wanting to be parents. >> it really is incredible that anyone would do this, and, you know, had he stabbed me in the