held 27.5 a number of times. ty think this is when the stock pushes up towards $35 bucks. >> i'm melissa lee. thanks for watch, watch "fast money" 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 to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm trying to make you a little money. my job isn't just to entertain but to teach you. call me at 1-800-743-cnbc. or tweet me @jim cramer. if expectations are hot, you might lose money no matter what a company says or reports. if the expectations are low, you

have a margin of safety that can produce spectacular gains. i think the expectations are already defining this earnings season so far. today was no different. dow advancing five points, s&p dipping 1.9%, nasdaq dropping 1.54%. the latter with a little sour push down from the federal reserve. >> house of pain! >> yet, today we got an admonition from janet yellen some stocks are too extensive for their own good. i'll go onto more depth on this later. for now, let me just say that this seemed like some lame attempt by yellen to get tough to show she understands that there indeed is some risky inflation out there somewhere. however, i think the real issue here is that some stocks, especially the small biotech and social media names have huge

expectations built into them. even if everything goes perfectly with these stocks, they are just so overinflated the good news might not matter and could you get hurt anyway. something almost magical has to happen to justify some of these valuations. then again, miracles have been known to occur in this stock market. facebook is a bit of a miracle, a stock supremely overvalued because it had no real mobile strategy, which then became extremely undervalued after developing a terrific mobile strategy. that's why i always say that it's okay, janet yellen and the rest of you to speculate with up to 10% of your portfolio with precisely the stocks the fed is yelling at you about. how does yellen know today's overvalued social media won't be tomorrow's facebook? or bioto being doesn't have the next promising blockbuster drug in development?

when gilead bought pharmecead, people thought it was a spectacular overpay. this deal added almost five times that amount to gilead's market cap since pharmacet's amazing hepatitis-c cure became a reality. you should be invested in stocks where the expectations are low, so low that the stocks become less risky while still offering a good reward when nightling strikes. call these the anti-social media/small biotech stocks. here is a classic example. earlier today by squawk on the street partner asked me if i still liked apple even after the big run. yes. it's the cheapest large capitalization growth stock i follow. good things tend to happen to good companies and good stocks that are both solid and inexpensive. sure enough tonight the company

announced a breakthrough with ibm where ibm will shepard apple into big companies that currently don't support apple products. how frustrating that so many of the companies we work for don't support apple's hugely popular personal computers? how many times have you tried to get your company to adopt apple? how often have you called i.t. and told, sorry, we are not an apple shop. with this watershed announcement today that will change because ibm is the tech consultant for so many companies and will enable apple to be part of the de facto system. no more bring your own device or lame excuse, security issues. now apple can be your device at home and work. this hook-up is good news for ibm, too. it's another inexpensive stock but one that has no real growth. i think it's amazing news for apple. a company after a 19% run sells

at a big discount to the average stock and s&p 500. they have additive growth. ibm is paying to get apple in. i like that. good things happen to those who expect little and wait for something to happen. that's apple to a tee. there is intel, another cheap stock that preannounced better than expected earnings. many thought the preannouncement made it so there was little to expect from tonight's earnings report. it sent intel soaring. the preannouncement drove the stock higher but lowered expectations once it got there i like the ceo very much. that is the perfect set-up. how about the banks? my charitable trust has been sitting on them like jg morgan. we felt it was absurd one of the best commercial banks and the

premier brokerage house should trade at a discount. they were so negative at banks as punishments for past sins and need to raise huge amount of capital and this volcrum rule. as the old fixed income no longer generating mutual terms. goldman and jpmorgan and citigroup show when no one expects much as all, you can hit it out of the park. not only that, this is just the beginning of the outperformance for this group. jpmorgan and goldman used to sell at a premium at the stock. these companies have been valued at levels that suggest whatever profits they might have had were about to disappear. now it's dawning on people we are finally at the tail end of the bad and beginning of the good. i believe these stocks along with the cohort are free to head

much higher. that said, while low expectations can be a boon, high expectations can be a curse. that's how you can lose money in reit stocks where everybody expects nothing but the best. it's hard to do better than wells fargo last friday when it reported a fantastic quarter with amazing growth. however it had been delivering consistent numbers and had run into the quarter, which is why it went lower on those results. the expectations were too high versus the group. now the stock had run into a quarter. johnson & johnson had become too expensive versus its cohort like wells did with the banks. same thing. nevertheless like wells, i predict a momentary setback. i expect j&j will resume its climb after this pause.

i totally get owning cheap stocks and waiting for something good to happen isn't immediately rewarding or gratifying. many are sick of hearing about cheap stocks. my trust suffered betting at a certain point maybe they would be too cheap relative to expectations. it took ages to play out. now i bet it proves worth the wait. i won't sell them the first day of outperformance. apple made it easy to way vie's large dividends and buybacks. all prove you don't need to take on too much risk to have a high reward. i think today demonstrates the power of owning inexpensive stocks and patiently waiting for good things to happen because they tend to happen. next time chief yellen, it may pay to point out there are plenty of cheap stocks out there. that way you can help us make money, not just lose it for us.

steven, please. >> caller: big boo-yah from the windy windy city. i wonder about hilton. should i take some off the plate or is there room to go up more? >> we thought it could go to $24, $25. thought it was cheap at $22. i think hott starwood can go to $900. you've got to make your choice. i prefer starwood to hilton. steve in new york. >> caller: hi, i appreciate you taking my call. >> of course. >> caller: i'm calling about fairway markets. when the stock came out at $13 a share as an ipo, you were jumping up and down, what a great company it is. you had a little anecdote about your next door neighbor driving 40 minutes to go to the store, loved it so much. i live in long island and i

drive 40 minutes to plainfield because i love the store it. love what they have. the prices are more than fair and have an unbelievable selection. next week they are opening another store in lake grove. my question is, the stock went from $13, went up to $29 and now it's $6. nothing's changed. the store is jammed all the time. >> okay. i think i've got to check the record. after it ran i suggested people sell the stock. i did not stand by fairway. i got people out of there at a much higher level. i am oftentimes criticized for getting things wrong. i don't want to own the stock at $6 because it's vastly overexpanded. i want to shop there, but i don't want to own the stock. i recommend an outright sell of fairway. >> caller: boo-yah, how are you? >> how are you? >> caller: i'm doing excellent.

thank for all you do for us home gamers. i've got a question about cedar fair. it's a limited partnership. i'm holding it in a roth ira. how is it different from a master limited partnership? >> you've got to check -- i tell people, check with your tax accounting professional when you are dealing with one of these, mop or lp. cedar fair, i think earnings are terrific. i like it as a growth stock no matter what. what did we learn today? once again, there is power in owning inexpensive stocks and being patient with them. next time fed chief yellen may want to point out there are terrific cheap nonspeculative stocks. a rumble in the jungle for amazon versus netflix. should we listen to the fed chief on biotech and social media stocks?

buying everything online except for tailored duds? the company with the secret weapon that could be about to change the way america dresses up. stick with cramer. >> 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 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. ♪ [ 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. ♪ we're a force of nature, too. in a we believe outshining the competition tomorrow quires 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.

oh i knew i forgot something... i'll just do it now. well, we're boarding. no, i'll use citi mobile. takes two seconds, better safe than sorry right? yeah who knows if we'll even get service on the islands? what! no service? seriously? no electricity, we're going to make our own candles, we're going to churn our own butter. oh, we lost one. can't leave a bag unattended. bank from almost anywhere with the citi mobile app. to learn more visit citi.com/easierbanking

wait a second. did fed chief janet yellen just tell us to short sell? bang out of twitter? does she hate small biotechs? did she mean we should sell the cloud and e-commerce space? yellen's senate released with comments among the senate dinged the nasdaq and hurt the biotech and social media stocks. she described as overvalued. let's get one thing real clear. i don't like it when fed chiefs

address the stock market with throw-away comments as she did today. how much money you are allowed to borrow from brokers to buy stocks? right now it's 50%. if yellen believes there is too much speculation which is the veiled charge she made when she talked about valuations being stretched, "typically those for smaller firms and social media and biotech." how about 70% forcing people to put more money per trade? raising the margin requirements has always worked to tamp down speculative securities. in the past, fed chiefs have chosen to raise interest rates across the board as alan greenspan did with the dot-com bubble to kill the economy and ramp speculation in internet stocks. i hope janet yellen doesn't follow that playbook. if you want my advice, don't

release a statement that impact as couple of stocks. pointless. all you have to do is raise what it costs to borrow money from brokers. that will do it stick. yes, it's true prices aren't as hard as they were. needless swipe. are we to guess which ones are overvalued? is celgene too expensive? was ide nfnix overpriced? yelp is covered by many companies. how about zillow? 150 times earnings? it's killing them. does yellen distinguish between facebook with actual earnings and twitter which is losing money? where does she put regenero? concerned about gilead sales or are they big enough that they

are okay? given that yellen clearly feels comfortable dissecting specific segments of the stock market, why wasn't she more worried when the smaller biotech and social media stocks were higher four, five months ago? let me give you some federal reserve history to put this in context. back in december 1996, alan greenspan suggested the stocks were suffering from irrational exuberance. market got hit a couple of days. people hated that. then climbed dramatically higher. rallying like crazy for three more years. it turned out to be one of the lamest comments greenspan ever made. let's hope yellen recognizes she shouldn't make gratuity yus comments about stocks. bunt instruments and pot shots don't work. raising the marginal requirement does. speak softably stocks and use the big margin stick or don't speak about them at all. joe in pennsylvania.

>> caller: hey, jim. boo-yah. >> boo-yah, what's going on? >> caller: you are, buddy. >> i'm trying. >> caller: my question is concerning groupon. just want to get your take on their strategies and strategies going forward, some of the recent acquisitions. some of their expansion in mobile platforms. and deals being developed through other companies. >> you are right. groupon has a lot of irons in the fire. i got excited about it lower. i neglected to get off the bus before that last quarter. they have to report a better number. i like their bread crumb program at bar san miguel. it tells me how the restaurant is doing. it's a pastiche of different companies. i can't understand the structure. that's how much they've done. deliver a better quarter and all is forgiven. donald in pennsylvania.

>> caller: jim, boo-yah. i own shares of facebook and i'm authenticing of adding to my position before they report. i seek stock swami advice. >> the stock is all over the place. if you remember last week at this time the stock was at $62. there were no buyers. there was nothing but sellers. the stock climbed to $68. no sellers. you know what? let's wait in the middle. get in $63, $64. that's at least somewhere where i can say, you know what? it's been higher, it's been lower, but it's right to start buying. i've got a memo to the fed. you have a tool to curb speculation. use it. please don't just throw out unclear remarks that can cause some of the pain we saw today. there is still more "mad money" ahead. netflix versus amazon. is the king of all things delivering to your story ready to take a prime position over the streaming star?

"grand theft" got an extra light that scored big this year. i'll see if it can kin. fundamental shift from the shopping mall to your smart phone. the iphone app changing the retail landscape. stay with cramer. i make a lot of purchases for my business.

and i get a lot in return with ink plus from chase. like 50,000 bonus points when i spent $5,000 in the first 3 months after i opened my account. and i earn 5 times the rewards on internet, phone services and at office supply stores. with ink plus i can choose how to redeem my points. travel, gift cards, even cash back. and my rewards points won't expire. so you can make owning a business even more rewarding. ink from chase. so you can.

after taking a real

pummeling during the spring, two of the biggest most beloved cult growth stocks have been rebounding in late with a vengeance. i'm talking about amazon and netflix. because i get asked about these two names all the time, probably more than any other stock, tonight we are going off the charts to figure out where they could both be headed. with the help of tim collins. a terrific technician and colleague of realmoney.com. notice disintegrate say with the help of fed chief janet yellen. she trashed the small biotech and social media stocks when many wags would say these are the two stocks that define substantially stretched valuations. they didn't come up in the discussion. what does collins think of amazon and netflix? let's start with amazon. take a look at the daily chart. amazon rallied in early june. next month the stock was stuck in a very tight channel between $324 and $340. amazon has been on a tear the past three days. didn't get hurt today either.

picking up $30 in just three sessions. and with this rally, the stock has broken out of the tight trading channel it was stuck in which means it broke out above the same resistance level that was keeping it down back in april. you can see this thing has been bound by that level until now. collins says this pattern tends to create a strong floor of support underneath the stock which is why he recommends buying amazon into any pullback down to the low $340s. the next ceiling of resistance is at $380. which means amazon has more potential upside than downside. that's something collins likes very much. although again, he would like to see it dip back to the $340s before he pulls the trigger. his biggest worry is amazon won't pull back and give you a better entry point. the moving average convergence to vergens indicator the mack-d which they use to predict a

stock trajectory had a powerful bullish crossover here. that often points to much higher prices while relative strength up top is breaking out. you've got the breakout there and the bullish crossover there. according to collins, pretty much every tool in the technical analysis playbook is saying amazon is headed higher. maybe dramatically higher. all right. that's the daily. we've got to do something tricky. let's go to the weekly here. this is much more difficult. collins says this one looks bullish, but unfortunately, unlike the daily, there is room for interpretation. even though amazon spent the first half of 2014 getting obliterated, collins believes when you look back at the stock's fabulous run in 2012 and 2013, the recent six-month pullback looks like a flag pattern that formed after 23-month-long rally. the timing does work. why do we care if this pullback

looks like a flag? you see the flag there. a flag pattern is known as a continuation pattern. if the stock is roaring higher and makes a flag formation, it's likely soon as the flag formation ends, the stock will resume its rally. flag then boom. that's been the case. of course, there is a but here. a big one. you see even though the moving average convergence to vergence line and the money flow index, which measures whether money is flowing into or out of the stock have turned higher, collins does not find them convincing yet. these other indicators don't give reason to doubt amazon's new rally, they are also saying, i like a little pullback. he can't pound the table because the weekly is not as good as the daly. as long as amazon doesn't start sinking, the biggest argument is a bullish flag thesis which means it has room to run. it turns lower, that creates a

lower high and the bull thesis on the weekly chart dead. if the bull dies, amazon could visit the mid $200s. that's down 100 points where it is now. collins thinks there is enough positive evidence that the weekly chart should be presumed bullish until proven otherwise. preponderance of evidence says innocent, you can buy amazon. what about netflix, the other big cult favorite? if amazon has a hot daily chart and a borderline weekly one, netflix is the exact opposite. a daily chart is very much at risk and longer term weekly chart is more constructive. check this out. this is hideous. netflix's daily. we are looking at a head-and-shoulders pattern. that is it. that is the most classically and reliably bearer formation. if it drops below $430 and that's $19 below where it is now, that would complete the head-and-shoulders pattern and

should trigger decline down to $390. that would be very painful to at love people. i thought it was interesting. it's definitely something to be concerned about, as long as it stays above $430, the head-and-shoulders doesn't appear and won't be a problem. unless we get a big down draft the stock could climb higher. if netflix can break out above $460, a dozen points above where the stock went out today, that kills the bearish pattern all together. if it can rally past $475, collins says the upside could be phenomenal. netflix's daily chart is smack in no-man's land. if it goes down, it will go down a lot and if it goes up, it will go up a lot. i don't like down 100, up 100. netflix's weekly charts got some positives. collins, this is the opposite. it's really good. netflix has an inverse head-and-shoulders on the weekly as opposed to the daily.

that is one of the most reliably positive patterns out there. with the stock breaking out above its ceiling of resistance in the past few weeks. everything on the chart other than prices is less bullish. relative strength index has made a lower high. while netflix rallied, that is a bearish diversion. same thing with this index which looks at volume along with size of the stock's move to measure the power and the bears. that is another bearish diversion. all this makes collins feel netflix is a more risky stock from a technical perspective. he wouldn't recommend shorting it, but be careful if you own. stock and be a seller if it breaks down below its floor of support. he's got an exit strategy that is not that far from this level. the charts are interpreted by tim collins. if you are looking to play a cult stock, amazon appears to be a better bet than net flick.

at least for the moment. remember, please, they are both cult names. that means they are both extremely risky. collins' chart works with both stocks soaring from here. it's hard to tell whether bulls and bears will prevail. you are simply buying the stocks of companies you like to use. nothing wrong with that. understand if janet yellen wanted to talk about overvaluation, she would have mentioned these two. maybe she likes to use netflix. "orange is the new black" good show or is an amazon prime member. it's a bargain. that's why these stocks are high to begin. with i wish i could come out here with valuation case to be made for either one good. charts or not, there just isn't. you can own amazon or netflix for speculation. don't ever mistake eat woern for a core blue chip holding with limited downside and terrific consistent long-term profitable growth. brian in pennsylvania. a lot of pennsylvanians tonight.

that's fine. >> caller: boo-yah, cramer. this is brian. >> what's up? >> caller: hey, i bought a spin-off like the hank green lot technique, barnes and noble is spinning off its kindle. want to know what you thought about it. >> it's spinning off its nook. i'm a big believe that they just don't have the goods. it's not technology. i think the nook is a fabulous product. amazon is a juggernaut. you can't go up against amazon. a many not, after this run of barnes and noble going to recommend that stock. fred in florida, please. >> caller: i really enjoy your show. >> thank you. >> caller: this is fred in florida. okay. my question is about dds, dillard's. it's had a good run this year. do you think it will go higher and would you buy it at this rate? >> the retail -- the retailers

that have been strong have been remaining strong. dillard's is in a breakout moment for its retail business and dillard's will remain strong. all this said, let me caveat this. retailers are my least favorite group in the stock market with the exception of utilities because of what i've been citing the last few days, which is hit or miss nature of retail made it so the group i find to be uninvestable. find other areas, old tech or financials are cheaper. the industrials are. two of the markets beloved cult stocks are coming back with a vengeance, amazon and netflix. charts suggesting you go with amazon, but there is too much overvaluation for my liking. still ahead, it's game on for the maker of "grand theft auto." the stock is soaring. can it continue to ride? is it time to say sayonara to the shopping mall and all the stocks in it? i've got the company that wants to put them in their graves. rapid fire calls ahead with the lightning round. stick with cramer.

♪ ♪ ♪ [ male announcer ] if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. but hurry, offers end july 31st. share your summer moments in your mercedes-benz with us.

offers end july 31st. having a perfectly nice day, when out of nowhere a pick-up truck slams into your brand new car. one second it wasn't there and the next second... boom! you've had your first accident. now you have to make your first claim. so you talk to your insurance company and... boom! you're blindsided for a second time.

they won't give you enough money to replace your brand new car. don't those people know you're already shaken up? liberty mutual's new car replacement will pay for the entire value of your car plus depreciation. call and for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch to liberty mutual insurance and you could save up to $423 dollars. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance. back in january i told you the take-two interactive software ttwo, maker of "grand theft auto 5" the best-selling

video game of 2013 wasn't getting any real respect from wall street despite the company's remarkable success. take two has begin you a magnificent 30% rally. since we spoke last to the ceo six months ago. there is more upside here a lot of people think take two is a one-trick pony. they think it's nothing but "grand theft auto." it has a bunch of major franchises that can spin off a bunch of sequels. others who have been around longer may remember how "take-two interactive" ran itself into the ground back in 2006. reckless management, bad behavior led to a string of lawsuits. in 2007 the shareholders revolted and appointed a media turnaround artist as the new ceo. these days it's just getting

lawsuits from lindsay lohan who i think is trying to spur up publicity. the money keeps flowing in as this company continues to blow away wall street's estimates. these guys can still generate amazing new titles. this fall they are publishing a game called "evolve" which took home best in show last month at the mecca for video games. does the stock have more room to run? let's check in with the chair. welcome back to "mad money." >> great to see you. >> everything you said came true and the stock's been a remarkable winner there is a slide. you've always been totally transparent and your presentations are great. a slide in a recent conference robust development. strong line for fiscal 2015 including unannounced new releases. teasing or saying 1,900 gaming

developers and you are not sure how great it will be? >> we don't have a marketing moment to announce. we wouldn't tease. we did, however, announce title for fiscal 2016, battle born from gear box software. we are beginning to give insight into the release schedule going forward. >> you are starting to tease about what could be the next generation. you are saying take two is ecumenical. >> we want to meet the consumer wherever the consumer is. we don't vote on business models or platforms. we have to be highly flexible. >> does it include oculus from facebook? >> absolutely. if they turn out to be great game development platforms. it's too early to say they will. people who tried them are excited. we haven't seen how it interacts with our software.

i've been reported to be skeptical. i'm not at all skeptical. i'm excited if the consumer is excited. >> you always talked about a form one you've got coming out. this is a recent presentation that you gave. you are saying this fall is going to be exciting. >> the fall is huge. we've got a big month in october. obviously we have a gta coming to the platform. that is huge. you mentioned evolve and i am excited. when we spoke about it, it isn't my nature to punt titles. it is what happened to ea3 is wonderful. we couldn't tear them away from the controllers and winning best of three from the e-3 2014 critics. new titles from wwe and nba. and borderlines, the presequel.

>> you have enough in the pipe for me to think you are being too conservative at this point with your cash. you bought back stock at $17. the fact the stocked moved up, should you do something else other than buying back stock? is it too high? >> we definitely have the opportunity to return cash to shareholders. because of this luxury having cash is new we had to be conservative. we have the opportunity to finance our organic growth which has been a good story since '07. potentially to pursue inorganic growth in a highly disciplined way. i'm a big believer do you deals that be accretive or you don't do them. i don't mean pie in the sky, i mean mathematically accretive near term. >> you are a completely, sorry for the cliche, outside the box thinker. maybe there is a theme park, some big ride, you hook up with a universal or disney. some of these things i want to

ride in myself. is that too far-fetched? >> we are not going to build a theme park. but i think you are right. there isn't an interactive entertainment attraction at a theme park. we do this fantastic collection of intellectual property. we wholly control it. it's all wholly owned. if someone were interested in that, that is something we could do in the future. but to be clear, and i need to be clear about it, we would never use our own capital. it's not the business we know. >> don't want you to. want you to be "harry potter" because i would like to change my schedule. thank you for delivering everything you promised then some. the chairman and ceo of take-two interactive. it is still a cheap stock. i think you'll find at $25 and $26 it's cheap. stay with cramer.

at every ford dealership, you'll find the works! it's a complete checkup of the services your vehicle needs. so prepare your car for any road trip by taking it to an expert ford technician. because no matter your destination good maintenance helps you save at the pump. get our multi-point inspection with a synthetic blend oil change, tire rotation, brake inspection and more for $29.95 or less. get a complete vehicle checkup only at your ford dealer.

once there was a girl who even in her laundry room.ry. with downy unstoppables, she matched her one of a kind style with one of a kind scents. downy unstoppables in wash scent boosters wash in the wow.

just want to say, i bundled home and auto with state farm, saved 760 bucks. love this guy. so sorry. okay, does it bother anybody else that the mime is talking? frrreeeeaky! [ male announcer ] savings worth talking about. state farm. it is time, it is time for the lightning round. i take on calls and tell you to buy, buy, buy or sell, sell, sell and play to this sound and

the lightning round is over. are you ready, skee-daddy? start with mark in new york. >> caller: i have a nice mark in akamai. >> they have good quarters, but the stock is fully valued. i would not be a buyer. >> caller: i want to let you know my brother died in november. he passed away from liver disease. financially you have supported our family for the last two years with picking stocks. what i would like to know about today is vvus, please. >> first, i'm sorry for your loss. i think vvus is too speculative. i would much rather see new a traditional drug, a bristol-meyers or merck or use the weakness we got today from

johnson & johnson. ned florida. >> caller: boo-yah. i'm interested in lmco. >> lnco, we had our ups and downs with linnco. i think the company is fine. it went through a bad s.e.c. period. people say why did you dump it for your charitable trust? i don't like to own stocks the s.e.c. investigates. >> caller: thanks for the money you made me. i'm calling about lannet. >> i prefer parago. >> caller: a big morris county, new jersey, boo-yah. >> local guy boo-yah back at

you. >> caller: rite aid. >> the stock doubled and had a bad quarter. it's recharging and said what's happened is the next quarter is going to take back the earnings it missed. i believe rite aid. it is a great stock to own. understand it's much more speculative than either walgreens or cvs. max in washington. >> caller: boo-yah, how you doing? >> all right. how are you? >> what is going on with wind stream? >> it doesn't have growth but people like windstream. me, i don't like to reach for yield. i'd rather be in enterprise product partners if i want yield that badly. it's got more growth. andy in new york. >> caller: my question is general electric. >> it has been hurt by this. i like to talk about my winners. ge has not been able to break out of this range.

it needs to make a clear statement when it reports. jeff emmelt has to explain why the future is brighter than the past and simplified structure to the enterprise or it's going to do nothing. a dividend raise would do the best. mike in arizona. >> caller: jim, grand canyon side boo-yah from ranger mike at grand canyon national park. >> thank you for being a ranger. i love the park. >> chubb. >> chubb is very good. happens to be one of my insurers. i like travelers more. it's cheaper. big dow stock, i know, but it has been chronically undervalued. jay fishman is one of the smartest investors. rick in idaho. >> caller: thanks for taking the call. i appreciate your show. >> thank you. >> caller: it's a great product. >> thank you. >> caller: my stock is alu. >> i like alu lower. stock had a good run. it seems to have been capped right now. it's not exactly in a position

where i want it to be. i suggest you buy cisco. and that, ladies and gentlemen, is the conclusion of the lightning round! [ male announc] once, there was a man who found a magic seashell. it told him what was happening on the trading floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ so the magic shell went back to being a...shell. get live squawks right in your trading platform with thinkorswim from td ameritrade. [ 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. ♪ humans. we are beautifully imperfect creatures living in an imperfect world. that's why liberty mutual insurance has your back, offering exclusive products like optional better car replacement, where if your car is totaled, we give you the money to buy one a model year newer. call... and ask an insurance expert about all our benefits today, like our 24/7 support and service, because at liberty mutual insurance, we believe our customers do their best out there in the world, so we do everything we can to be there for them when they need us. plus, you could save hundreds when you switch, up to $423. call...

today. liberty mutual insurance -- responsibility. what's your policy? every now and then i like to go off the tape and highlight a privately held company that is doing some innovative and cool. these small start-ups can invent

new technologies that totally transform a given industry. take m. taylor. company just launched a couple of weeks ago and may revolutionize the way we shop for nice clothes. m. taylor lets you order tailor dress shirts. mtailor's mobile app uses your phone's camera to take precise measurements of your body that say are 20% more accurate than you would get from a real life tailor, says the company. order yourself a shirt tailored just for you with prices starting at only $69. that includes free shipping. by comparison, a regular tailored shirt of similar quality might set you back $150 or more. eventually their technology could let them cover the entire wardrobe for men and women. right now there are only two employees, both graduated from

stanford in 2012. it could change the way we buy clothing. is mtailor the future of shopping? let's take a closer look with miles penn. welcome to "mad money." earlier, i got to try it. downloaded the app, was doing the 360. to me, it's an ultimate time saver. that is what inspired you to do it? >> yeah. for me it was really, how can i get well-fitting clothes with the convenience of online? i hate shopping, i hate trying things on. i wanted something more convenient but also stylish. >> how did you get to this assumption that it's 20% better? >> we brought in a bunch of tailors and brought in a bunch of people and went head-to-head with the tailors. we had them measure the people and we measured them and we were 20% better. >> you could have gone into

finance but you decided to be an entrepreneur. >> i was working at goldman and doing investment banking. it was fun but i started thinking about this idea and especially at goldman, you know, tailored shirts are very important. >> i know. that's where i first learned i had to have a tailored shirt. >> i started working on this on the side and it grabbed me. i didn't want to do finance. i noo yknew this was going to b. >> can someone rip you off? what is patented about it? >> we do have a patent license, but it's all propriety. the technology was developed by me and my co-fund ounder a lot stanford professors said this technology couldn't exist. >> why does it? >> we read a lot of research papers and went beyond what academia had done. it was the power of the profit that motivated us to make something that works. >> we've seen a lot of good

ideas that don't triumph. how is this going to get -- how does the word spread? >> besides being on this show which is an honor for me. >> thank you. >> right now, we've been running a 0 lot of facebook app install ads. >> return investment is good on facebook ads. >> yeah. facebook ads have binneen incredible for us. specifically app install ads. i can turn on the spigot. if i want downloads, i run some apps. it's been great so far. >> this is the $69 shirt, this is a little bit more, little bit higher quality. >> yeah. >> there are many different selections. >> a huge amount of selection. like you said, over 10,000 combinations you could make from the app right now. >> i don't like to shop either. this is a real good call. that is miles penn, co-founder of mtailor. this is the kind of stuff that really turns me on.

spectacular news from earnings on intel tonight. i think that stock can continue to power higher. this ibm/apple tie-up is good

for ibm. they report this week. it's great for apple because they have a whole new customer base. it's important for apple. >> i like to say there's a bull market somewhere i promise to find it for you right here on "mad money." i'm jim cramer. see you next time. >> male narrator: in the culinary world, there are always innovators with new ideas and products, but turning a dream into a reality requires money-- lots of it. now they'll have a chance to get both funding and guidance from two of the industry's heaviest hitters. joe bastianich is one of the country's culinary giants. by combining great food with smart business, he's created an empire that includes 30 restaurants, 6 high-end italian markets, and 2 best-selling books. >> we're not here to teach you. we're here to make an investment, and if this was school, you'd be paying us tuition. >> narrator: tim love is a celebrity chef and master of urban western cuisine. he owns five award-winning restaurants throughout texas and has his own retail empire of rubs, sauces, and cookware. >> i'm a food guy. tell me how you make the frickin' food. >> narrator: hun