>> i'm mel lit issa lee, do not anywhere. "mad money" with jim cramer starts right now. my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer! welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you some money. my job is not just to entertain you but to educate me, so call me. tweet me. twitter @jimcramer. we're losing cycles and trying to make them up with one-off gimmick and the occasional blowout earnings. but the negatives, let's just say they caught up with us

today, which is the chief reason why the average has turned tail after an initially positive showing. the dow dropping 70 points. s&p shrinking. nasdaq chilimbing 0.05%. you know i want to make everybody the largest amount of money. if it's legal and it turns a profit, it's got my blessing. so if windstream, a super high-yielding telecommunications company gets a private ruling from the irs that it can spin off assets into a real estate investment trust and create instant value for you, i'm thrilled. that's just what happened today. if centurylink and frontier communications, two companies very similar to windstream go from that idea, take advantage of the tax code goodies, more power to them. those are real gains that you got today, big ones. and i think such -- that kind of financial engineering and ingenuity, i'm saying great, guys. i hope verizon and at&t rethink

and say they should do it. i think the cable companies should look it at it. now, if i were a politician, i'd do everything in my power to close loopholes and lower tax regimes, in order to lower their tax bills. but i'm not a politician. and in the interim, i salute any company that's making money for you in this fashion. "mad money's" about you! i don't believe that the paper companies like international paper should be able to flip their virgin paper mills into some master limited partnership so that mlp shareholders can avoid paying the level of u.s. taxes. but if it lifts the stock, as i plan to ask international paper later on in the show, i say game on! let the returns flow in. all of that said, we have to face the facts here. in the last few weeks while the vast majority of companies reported earnings have posted some impressive numbers and we've gotten all these terrific little one-off things, there's been something more problematic that's just not being talked

about by anyone. something that's genuinely worrisome. i'm talking about all of the end-of-cycle chatter that come from analysts who look at only their own sectors, but when taking on mass like the generalist that i am, well, let's just say it's got me a little more skeptical about the underlying strength of the market. before i go into which cycles might be turning down, let me take a moment to emphasize that i have not just become a huge bear. every word of what i say on "mad money" is now measured in social media. so i feel compelled to tell you how i feel, but i don't feel like wasting a lot of energy defending my positive posture. i like much of what i see in the market. whether it be the low interest rate environment, the relatively tame inflation picture, the good growth of so many companies, the activist and merger pressures that seem to produce wins every single day. just today the ceo of darden departed under pressure because of the company's poor

performance and stock. mane while, activists successfully took board seats at cliff natural resources, an iron company, causing that stock to jump. and the success of so many drug companies of late signaled some real health in the market. i think the good news about a leukemia drug, the amazing hepatitis c cure from gilead that keeps power that stock higher, merck driven by new drug sales, amgen join the positive parade tonight with a terrific number. all of this suggests some lasting health in health stocks. plus, some areas of tech are very strong. i said twitter last night was a battleground. it delivered a great quarter. it gained more than a dozen points after hours, spurring a host of buying in other social media stocks. to paraphrase bob marley, those are all the good things we have, but now let's focus on the good things we've lost along the way. namely some tailwinds as we call them on wall street that have been boosting stocks for months that now seem like headwinds.

first we're witnessing what appears to be the housing cycle, something that was so bountiful for so long after the great recession ended. i always like to say that housing punches above its weight because while it nominally impacts about 10% of the economy, that bleeds into everything from retail to building products, service sectors like banks, lawyers, the people, realtors. for the last month, though, we've seen a decided cooling in every part of the housing cycle, it's being ignored too much from permits to sales of existing homes. we've seen companies like owens-corning, armstrong, report dismall numbers. we've seen the mortgage profit lines of the banks get decimated, retailers that cater to homes will no doubt be the next to roll over if they haven't already. when we get the case schiller numbers this morning, they showed a real decline in pricing across the board. we don't want to lose housing. great that we got a good number. maybe home depot delivers. but home prices have gone too high. credit's still hard to get.

fact of life, not going positive. second, there's aerospace. here's a cycle that's been strong for some time. i've been a big believer, you know that. most recently, we've gotten to see downgrades of all the stocks connected with the group and the downgrades are sticking. and with the exception of honeywell, every single sector that's reported has delivered with a market that's been unsatisfied with. even honeywell's been coming down. we wouldn't have to worry all that much if the airline stocks themselves had gone up when they reported monster quarters last week. but if you noticed them, they're all stalled. worrisome. third, this afternoon, i listened to cnbc's phil lebeau talking about how the fabulous auto cycle, we've been riding that one since 2009. maybe running out of steam. and that there may finally be too many cars in the system. now, i was tempted to disagree with him. but ford reported an amazing quarter last weekend. i looked at it when he was talking, and it has done nothing. again, not a good sign.

makes me wonder whether inventories really are building. fourth, i though that the oil drilling cycle has been very strong. oil prices high, the bakken, permean, you know the drill. i think it remains so, but these stocks have been reacting terribly never since slumberge failed to hit the high end of the range when it reported. fifth, we had the potential for more profits from a whole new lending cycle developing when rates were trending higher. remember the bank being sos went up after they reported? but out of nowhere they've started falling again, which means the banks can't make as much money as we thought they could on each loan. interest rates have come back down too much. sixth, few cycles have been as powerful as the health maintenance billing cycle. these companies have been minting money. but today aetna, a stalwart, got hammered with what looked to be on the surface a pretty strong number. out of nowhere. we don't want to lose that. sengt, we've been hearing that

the truck cycle is picking up after a lull. remember what klaus kleinfeld said. then the biggest and best engine maker reported a number that looked good on the surface but turned out to be disappointing to those who thought the cycle was improving. some one-time gains in there. eighth, the farm cycle. at one time so bountiful. that's just hit a wall. as you'll hear later in the show when we talk to agco's ceo. monsanto, those stocks have been horrendous. last but not least, the transports had been our leaders, right? we always talked about how commerce done with transport has been strong. gangbusters. but this morning's shortfall from united parcel sent a shiver down the spine of anyone who believed commerce was picking up. i remain a believer in u.p.s., but the disappointment was palpable. now, i still believe that most of these cycles are not yet played out. i think most are simply pausing. however, there's just too many of them pausing all at once right now to feel comfortable that the gimmicks and the

one-offs can take us ever higher. as terrific as they might be. here's the bottom line. i now think we need some of the companies that are going to report in the next few weeks tell us that these tailwinds that i just mentioned haven't all -- haven't all turned into headwinds. that the cycles aren't dwindling. if they have, then the market's too high. if they're just pausing, then the rally will pause, too. at least until the numbers get better again. ron in new york. ron. >> caller: hey, jim, it's ron from oceanside. >> yeah, what's going on in oceanside, my friend? >> caller: i appreciate all your investment knowledge and insight over the years, jim. i have a question regarding melco crown entertainment, symbol mpel. i own the august 32 call options expiring on the 16th. the company's going to announce earnings on august 7th. do you think this stock has a chance to pop on that announcement? >> i've got to tell you, today

we saw an amazing turnaround in wynn, and boy, steve wynn is so good. but the turnabout came from how good vegas was. your guy doesn't have vegas. look, it's a call option. can it work? i don't know. but the horse to bet on right now happens to be -- the horses happen to have big volume in vegas, which is mgm, and then when i looked at the wynn number today, i was quite impressed. mary in florida. mary. >> caller: hi, jim. how you doing? >> real good. how about you, partner? >> caller: good. jim, i have a substantial position in staples, and i'm concerned with a few things. number one, they had this penny sale, and hopefully they didn't make a mistake, but i think they sold, like, $22 million of merchandise for a nominal amount, maybe a few hundred dollars. and in addition to that, of course, they had been -- they had the strike of the postal union with the teachers union joining them. and, of course, we're heading

into the back-to-school area. so things don't bode well for staples. >> no, and this feels like an amazon story, frankly. i worry about amazon on the e-commerce side, and i worry about costco coming in on the cost side, costco upgraded by goldman today. i'm not a fan of staples. i'm all about making you money, but recognizing that some of these one-off gimmicks we're seeing are making the market look stronger than it actually is has got me perturbed. until we see some better numbers and some cycles that are waning, the rally may remain on pause. tonight, "mad money," mexican style chicken chain el pollo loco is en fuego. have investors gone cuckoo or are investors keeping the heat? then, international paper is behind the packaging. but is it time now to buy the stock before it repackages

itself? plus, from trash to treasure. the company turning garbage into green and how you can get in on the action. 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 to madmoney@cnbc.com. or give us a call. at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. in a world that's changing faster than ever, we believe outshining 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.

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look at waste management, one of our old fave here. you might know waste management is consistent, but okay, somewhat sleepy stock. largest garbage company in america. 269 landfills, 297 transfer stations, not to mention a boundful 3.4% yield, not bad versus treasuries. but today this company took drastic action to show that it's committed to creating value for shareholders. first waste management reported this morning it not only beat earnings by a penny, management gave guidance where they said they would either meet or exceed their previous full-year forecasts, which is what really matters. second, they announced a $600

million accelerated buyback program. third most important, we learned waste management is selling its waste-to-energy business which turns trash into electricity for $1.94 billion, with the proceeds going to fund acquisitions within the core business and a larger buyback. talk about a company that's taken control of its own destiny and its own share price. no wonder the stock rallied 3.9% today. it had a very bad day in the market. let's take a deeper dive with david steiner, president and ceo of waste management. no stranger to the show. this big asset sale, mr. steiner, welcome back to "mad money." >> hi, jim. thanks for having me. >> well, david, i've got to tell you, i know that you discussed it now and then, but i did not expect it done. you had a very good price. tell us about the sale and what it means for the company. >> yeah, you know, jim, when we look at wheelabraider, the front end is core to our business. that's where we collect the waste and we call it what we call tip fees. the back end, on the other hand,

is not core to our business. that's the electricity sales. and so we thought why don't we take this business and split it between two people that can do each part the best that anyone can do it. we'll still supply the waste into the front end. ecp, our new partner buying it for $1.94 billion will manage the electricity on the back end. and so what we're doing is making a more efficient asset out of wheelabraider awhile at the same time dropping $1.94 billion of cash to us to do what we need to do to do right things for shareholders. >> but i know that you're not satisfied because when i go through the quarter, your same-store sale averages in the commercial industrialized increased 4.4%, 3.1% in the residential line. but i know on the volumes you're still not happy with that negative 1.4%. >> yeah, there's no doubt about that, jim. we need to do a better job of making sure that we don't give a customer a reason to leave us, right? and so we're going to continue to focus on being the best service provider we can.

and then we're going to look strategically, where can we grow those volumes without affecting the competitive dynamic. you know, when you're the largest in the industry, sometimes you have to do things that others in the industry don't have to do. and from our point of view, we're not looking to go out and grab market share. we're looking to get our fair share of the growth. and now it's time for us to look for those growth markets and get our fair share. >> well, this $1.5 billion high end of a free cash flow guidance. you're clearly getting the most out of each contract you have. >> yeah, we absolutely are. but, you know, jim, look, that's what we get paid to do. we get paid to do better. and you know, the only weak spot that you saw on our earnings report was like you said, that negative volume. we need to do a better job of managing that up. and then when the economy starts to turn, we'll be positioned great to leverage that volume to drop a huge incremental amount to our bottom line. >> aren't you surprised that we're not at that stage where we're starting to see big housing complexes being built again, which i know is bread and butter waste management business?

>> that's exactly right. because you know when those housing developments are built, we not only get the waste when those houses are built, but then what those houses attract are commercial businesses like dry cleaners and restaurants. and we're starting to see that. you know, right here in houston, texas, we're seeing a huge amount of building. you're starting to see it in places like south florida and california. you know, once we see sort of a sustained year or two of 1.1 million to 1.3 million housing starts, we think that's when you'll start to see the commercial volume bounce back. i'd expect that to happen in 2015. >> boy, my fingers are crossed, if we get that, that would be fantastic. one thing popped out at me on the conference call. all these companies are doing these things to lower their tax bill. they're going to dublin, switzerland, making these inversions, doing national limited partnerships. 44.7% income tax rate for waste management? how did that happen? >> that's right. you know, jim, i've got to tell you, if there was ever a poster child for tax reform, it would be us at waste management.

we pay certainly more than our fair share of taxes. like you say, 44% plus corporate, that's because not only did we pay our normal corporate taxes, but when we sold our puerto rican operations early in the quarter, we then repatriated that money to the united states. to do the right thing, to invest it in the united states. our reward for doing that, a 44% tax rate. so, you know, if we really want to see american businesses reinvest in america, we've got to make it easier to bring those foreign earnings back into the united states. comprehensive corporate tax reform would do that. >> okay. yeah, you are the poster -- when i read that, i said, now, you know what? this is a real problem for on our country. now, we have often talked about natural gas and where it's going to be used for vehicles. now, there seems to be a lot of people still ask me clean energy fuels. it really hasn't happened yet. westport really hasn't happened yet. cummings not clear. the movement seems to be a bit stalled here, david. >> yeah, you know, jim, whenever anyone asks me what should we do

with our fleet, i tell them, this is really pretty simple. you move to natural gas, whether it's cng or lng, you move to natural gas, and your customers are going to love you for it. your planet is going to love you for it. and guess what? you're going to drop more money to the bottom line because the differential in fuel between diesel and natural gas right now continues to be very beneficial for us. so you know, if you want your customers to like it, if you want the planet to like it and if you want to make more money, i'd say switch to natural gas. and you know, again, we're the poster child for doing that. you know, as you know, we've not only moved to natural gas and bought natural gas trucks, we've also built our own fueling stations. so for those folks that are looking to move to natural gas, you know, we're here to help you get it done. >> one last question. i have been following anyone who's involved in the environmental movement and is making money. recycling, good numbers, right? >> yes. yeah, you know, jim, when we look at recycling, we had a real success story in recycling this quarter. you know, we had prices were down 2.1%. you might say, well, that's not much of a success story.

but what we've seen over the last 18 months is very soft commodity prices. so we focused on making sure that we work with our customers to reduce the contamination in their loads, that we manage the rebate structure in our contract so that we can manage the rebates that we get from our customers. and then we've worked on driving operating costs out of our manufacturing, out of our recycling plants. you know, we were very successful doing that this quarter. we actually had an improvement year over year in recycling despite lower prices. i'd expect that to continue throughout the rest of the year. >> well, you do a great job for your shareholders, david, the whole time and you turn as many money as you can. congratulations on a very exciting sale of a division and plowing it right back for the shareholders. appreciate your time. >> thank you, jim. always a pleasure. >> okay, that's david steiner, president and ceo of waste management, wm totally bankable, doing the right thing once again. fantastic, and the stock is not done. "mad money's" back after the break.

maybe it's the name. maybe it's the symbol. maybe it's the similarity to a certain chicken chain from "breaking bad." whatever it is, el pollo exploded after friday, its first day as a publicly traded company, it inspired a whole new

round of top calling. i can only wonder what would have happened today if it would have been up instead of being down that much. are the topicals justified? does a stock that comes public at $15 and then leaps to $34 on the second day make any sense at all? even if they gave up some of those gains today, does it mean something to the broader market, or is this a stock move signifying nothing? first we have to put the run into the context. the context that is gopro reports later this week which had a very slim move after it became public roughly a month ago. this camera company trying to grow into a full-blown ecosystem, high ind of the price range, jumped on the first day to 31, rallied to 35 the next day, then galloped to 40 before peaking at 48 on day four. so pollo loco might not be so loco after all. it's a popular company, particularly among teens with a hot-selling product with staying

power. plus it's profitable. pollo loco has fresh chicken made the way that real mexican roadside chicken is cooked and also profitable, earning 19 cents a share this past quarter. it's what a call a sliver deal out of a total of 35 million. gopro is almost three times, 17.8 million shares trading, but it's a $5 billion company. while pollo loco is worth a little more than $090 million. you don't want to ascribe too much to that differential. plus pollo loco does look a little like chipotle, the star. of course, nothing's really like chipotle given it had 17% same-store sales growth last quarter which is why is can trade at 50 times earnings which is totally elevated up there with the twitters of the world. maybe a little bit cheaper. each store does rack up $1.8 million in average unit volume which is $300,000 more than the average chipotle store back when it became public. the company has 400 restaurants. it says it believes there's room

for 2300 locations. california, texas, nevada and utah to the rest of the country. that's a reasonable trajectory if management can deliver on the execution. on top of that, pollo loco same-store sales have been running in the high single digits with 1/12% number, much better than the average chain. better than chipotle for many of those quarters. given the authenticity of pollo loco's mexican chicken, the company does claim a special niche, although i can tell you its appeal extends far beyond america's burgeoning hispanic population. i thought it was funny they did put it in the prospectus that this bird is enfuego. it will improve the profit picture as the debt gets paid down. no one denies that this stock is speculative, but the simple fact is that pollo loco is yunique. and it does have the characteristics of a company that could be the next chipotle. so let's dream that the 19 cents

blossoms into $1 per share. 50 times earnings even though they have a much bigger runway for growth because it's smaller. and you can see that someone might say i think that thing goes to 50 to i'm going to pay in the mid-30s. i don't think it's worth that, but i know plenty of growth managers who do. the bottom line is you may think this stock is loco. i think it was simply underpriced badly with too few shares going public to go into the open market and pay a ton extra for more shares. so while there are plenty of signs out there that this market could be nearing a top, as there always are, chiefly with the waning cycles i mentioned earlier, i'm sorry, but pollo loco simply isn't one of them. let's go to josh in virginia. josh. >> caller: how you doing, jim? boo-yah! >> good, josh. boo-yah! >> caller: control four, looking at that one today. i wanted to know, they had a good run toward the end of june up until the first part of july. i want to know if the decline in home sales has anything to do with bringing this one down.

>> yes, it does. yes, that's exactly right. and you know, i have to tell you, remember i like harman. and harman is more car sales, and that's why harman's doing better. this is home automation system, and that concerns me, particularly, by the way, with best buy kind of stalling out here. so that's what it is. you correctly identified it, and congratulations. that's exactly the way you must think. let's go to michael in ohio, please, michael. >> caller: hi, jim. boo-yah from the buckeye state. >> how are you? >> caller: i'm noticing a growing trend in curation and personally believe zulily does a great job at curating, but i'm also a huge fan of amazon.com. can both of them exist, and zulily is reporting earnings next week. >> zulily was a big short squeeze. i know i was shocked, and i didn't mean it. i mention that it could be the next amazon only because the people who are behind zulily have really good blood lines and they're doing a lot of

amazonlike characteristics. i think zulily will be fine. remember retail has been declared a battleground on the show, and zulily's part of the battleground making it a little too tough. remember, what i'm doing is starting to shy away from areas that i think are too tough to call, but i do like it long term. ed in pennsylvania. ed. >> caller: boo-yah, jim. ed from pennsylvania up in pike county. >> sure, i know exactly where you are. what's going on? >> caller: yes, sir. i was just wondering what you think of sirius satellite radio. i've been invested in that for years, and i have quite a bit of holdings in it. and every time they get good news, it goes up a little, then it drops again. what do you think? >> i think you've got to stay the course sirius satellite. remember, you had that buyout and the buyout disappeared and the stock got hit. and i redoubled miests to be able to say listen. i am not giving up on sirius satellite. i think at $3.40, it makes long-term buy. why? because people get the product. they like the product.

they get autopay. the company continues to do well. auto sales remain strong. i think sirius satellite is doing quite well. and at $3.40, i re-recommend the stock. there's still more "mad money" ahead. could international paper make you some money? then one of the biggest farm equipment makers in the bit of a drought. i'll tell you why you may want to buy now or look for greener pastures. plus your calls in the "lightning round." stay with cramer. we do? i took the trash out. i know. and thank you so much for that.

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liberty mutual insurance -- responsibility. what's your policy? this morning longtime cramer famed international paper, the largest paper company in north ameri america, reported what the market is treating like a mixed quarter. off of an 84 cent basis. declined 1.7% year over year. the stock dropped about a dollar today. you know what? i think this is a pretty solid quarter. and if international paper hadn't run up into the quarter, then today's action might have been different. plus, you could have made a lot of long-term money in this one. with the stock giving us a 160% return, with dividends, it says it got behind in december of 2009. let's check in with the chairman and ceo to hear more about the quarter and where his company is headed.

welcome back. good to see you. >> good to see you. >> have a seat. john, i've got to tell you, i felt that there was just a very good quarter, but there's a lot of chatter going into the quarter by my old friend richie perry at goldman sachs that there are some parts of your company could be dramatic. he's talking about $75 if you took advantage of what i regard as a tax loophole and create an mlp. you seem to be in the conference call will be to be open to anything, but is this pie in the sky? >> i don't know if it's pie in the sky, and it's not just international paper. perry capital came out and said this is something that could apply to all the producers. so it's not unique to international paper. it's complicated. it's probably more than theoretical, but it's a long way from something that international paper could contemplate. for one, you need an irs private letter ruling. >> right. >> they're not giving those now. >> they're not -- even if you applied for it? >> there's a moratorium on the irs, we understand. and they haven't given one to a

container company before. and we need to understand what the ramifications are across all of international paper, not just the container business. we talked about that. we're very open to talking with all of our shareholders about any ideas they had. and i think as you know, we've been ready, willing and able to do whatever it takes to improve international paper. >> right. you said at one point in the call, you look at ip's track record, unisource, transaction the first one to take two private companies public, i mean, you're clearly -- if you evaluated this, it sounds like, and it really could produce big gains, it would be on ip's radar. >> sure. if it passes all the pressure tests and we think it's the right thing for share owners and the radioity thing for international paper which obviously are one and the same, we'd look at it very seriously. >> there were a couple of secular trends in here that i thought were really important we've got to talk about. one is that throughout this quarter, it looks like that consumer, the environmental stretch, the environmental leap that paper is making over plastic and foam is really starting to play out in real earnings now. >> it certainly is in our

foodservice business where we've got record units, you know, record revenues. and we're making one of the first investment we've made in that business in organic growth and probably the second organic growth in north america in the last five years because, you know, we've had plenty of capacity. but now we're out of capacity. >> this is it, right? i mean, this is people requesting that whoever they're buying food from not use foam. >> we've got a great sustainability story. ip does, our industry does. we haven't told it. in some segments like foodservice, particularly hot coffee, consumers are catching on. and as a result, our customers are catching on. >> wow, it's really happening. now, the other side, obviously this had been a great story just in terms of rising price of container board. at a certain point we get softness in the economy, we just don't get the price increases that you expect? >> well, you know, pricing in these businesses as you know is all about supply and demand. and demand has been, you know, pretty, you know, pretty anemic. it hasn't been going backwards. >> i know. >> the consumer, which is 70% of our economy, it's been very

choppy. you know, one month consumer spending's up. another month, it's flat. another month, it's slightly down. so until we see some steady, sustainable increases in consumer spending, we're going to see a box market that's improving but improving very slowly. in europe, our box business is up 4% volumewise year over year. and the industry's up, like, 1%. >> i know. you still have the best proprietary technology. >> and that's all upside for us. if we could get the kind of performance they're getting in today's environment with demand the way it is, think what will happen if the u.s. economy improves, which it will. >> absolutely. now, while the market was open, the president is talking very tough about russia. you've got a good business in russia. at what point does that turn out to be something that we've got to worry about if we're shareholders? >> well, at this point, it's had no impact on our operations. i mean, obviously we'd like to see a diplomatic solution to this as well. it's good for the world. it's good for the u.s. it's good for russia. it's good for all businesses. so we're watching the situation carefully. but we have two businesses in

russia. one makes products and sells them in russia. >> right. >> the russian economy is slowing for sure. >> right. >> the other bigger business makes products in russia but ships them to china. and that business is quite robust and it's where we put a lot of our capital vemt over the last year and a half. >> but it seemed like china even isn't consistent anymore it seems. >> well -- >> they made this great move in asia. >> the emerging markets are slowing. but the analogy i use, it's like a car when it's going 70 miles an hour feels to 50, it feels like it's slowing down. the developed economies like western europe and the u.s. are growing from 2% to 3%. so instead of going 20 miles an hour, we're headed toward 30 miles an hour, and it feels like we're going faster. still relative growth rates are different. >> now, how about energy costs. somewhat discouraging. unfavorable input costs. could your company ever do what new core did, own natural gas

wells? >> ip's been down that road. >> that's right. >> we had natural gas properties. we leased wells, we drilled some of our own. that's really not our core competency. >> right. >> we're competing like everybody else is, whatever energy markets are, gas prices have come off recently. >> right, that's why i thought that maybe next quarter the input type would look very different. >> i think it will, jim. what's going to hit us for the full year is wood, fiber. you know, that's -- pressure on the wood resources here in the u.s. because of biomass fuel going to places like europe. is just creating a supply/demand imbalance, but we can compete for fiber. >> well, it was still a good quarter. >> it was a good quarter. >> a really good quarter. >> best second quarter in ten years. >> right. and i think people overlooked that because the stock did have a magnificent run last week. another good job from you. >> the important thing is we're not done. >> you're clearly not done. and a lot of things secular are going very right. the chairman and ceo of international paper. there's so many ways to win with

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if energy could come from anything?. or if power could go anywhere? or if light could seek out the dark? what would happen if that happens? anything.

it is time, it is time for "the lightning round! when i play this sound, the lightning round is over. are you ready, ski daddy? we start with pat in michigan. pat. >> caller: yeah, cramer, calling you from the rose bowl champion michigan state spartans. >> yes. >> caller: my company is peabody energy, btu. >> i'm not a big fan of coal. i mean, i can get behind iron, i life the cliffs guys that are coming back. i like new korbut i'm not going to get behind coal. mitchell in california. mitchell. >> caller: hi, thanks for taking my call. i'm a longtime shareholders of williams, wmb. it took a big bump in june around the same time as the secondary at 57. my question is, at a pe of about 97, is williams too pricey to buy? >> no, it's a cash flow story. it's made a great position. it yields 3.68%. i urge you to hold on to it and

maybe even buy more if it ever would come in. bob in california. bob. >> caller: a beautiful lake tahoe boo-yah. >> i appreciate it, thank you. >> caller: jim, i purchased a couple hundred shares of diamondback energy about a year ago when it was about 32 a share. i increased my position a couple of times. and playing on the house of money, how does it look? >> well, as long as you have taken out all the money on the house, let it run. permean has kind of been stalled. i don't want you giving anything back, but that's a great job. congratulations. dave in illinois. dave. >> caller: i am calling about earnings coming out next week, i'm wondering about the relationship to earnings and about the recent slide. what do you think about the stock? >> sandridge, i just listened to leon cooperman talk about sandridge the other day. he spoke very positively about it. he's the guy who got me interested in the name. i do think that leon is taking a

very long-term view on sandbridge, and i urge you to do the same. let's go to inger in oregon. inger. >> caller: hi, jim. how are you? >> fine, how are you? >> caller: i'm doing great, thank you. i have a question on mankind. >> okay, mankind's got that very new way to be able to -- you know, this is that diabetes -- their device that they need to find a partner for because they haven't found a partner, the stock has not gone higher. they need a partner for the stock to go higher. and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> the "lightning round" is sponsored by td ameritrade. ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future

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at a time when the overall market is still within striking distance of its all-time highs, maybe it's worth circling back to a stock that's pulled back hard. down just $1 above its 52-week low. i'm talking about agco which has been having a tough time lately courtesy of a difficult ag environment with all sorts of falling crop prices. wow, this morning agco delivered a 8 cent earnings beat but with weaker than expected revenues and downside guidance for the year. in response, the stock dropped $2.44, or 4.77%. so we've got to ask, has agco

been punished enough? is it buyable? let's take a closer look with the chairman and ceo of agco. welcome back to "mad money." >> thank you very much, jim. >> sir, i've been focused on the idea that some cycles that had been just terrific for so long may be either running out or pausing. the agricultural cycle had been one of the great stories for multiple years. when i read through your quarter, sir, i was trying to figure out whether this is a pause or whether we got real problems. >> no, we don't have real problems, and i don't think also that actually a lot's changed. the fundamentals still are very strong. but what we expected and everybody in the industry does is a little pause. it's partially because of lower commodity prices, as you mentioned already partially because the fleet, because

farmers invested so much during the last many years. we had several record years in a row. and then we faced certain problems which are not related to the industry at all like france is very unstable. then we have problems coming from the east, and that basically doesn't help. >> well, let's talk about some markets that were surprisingly weak. north america. is that just a function of corn? >> yeah, it's a function of corn for the edible farmers. so america is somewhat split into two businesses in general. so after those guys who do farm crops like corn and soybeans and wheat and so on, they are not doing as well as expected. but the weather basically supported them. so prices are down, and yields are up. so that means farm income will be good. and then on the other hand, there are guys who benefit from

lower crop prices because for them, they are inputs, and this is basically the chicken and dairy industry. they're doing very, very well. they typically buy small tractors which is not our strength. >> are there different parts of europe that you're very worried about and others that you're okay with? >> yeah, there are some countries in europe finally coming back to normal, and those are england, spain and also scandinavia, which is sweden, norway, denmark and also parts of finland. and then there are other markets, they're the bigger ones, unfortunately, like germany and france aren't doing so well. and on top of that, we are the market leader in those markets. so we are hit a little bit more than some of our competitors. >> but i felt you had some good things to say about brazil. that you think brazil could be turning here. >> yeah, brazil actually is doing not as bad as expected. overall the farm sector is very important for brazil, but we

have some political instability. so the president is not doing so well. and also during the world championship of soccer, the country was not really working hard, so that means everything lags behind a little bit. so brazil is also not really doing as good as in previous years. >> we do know there's an election coming up, and it's making people like brazil could be a better place to invest. >> that's true. but one has to keep in mind that the president is coming for basically more we would call it socialist party. but the predecessor who was the union leader at vw, so he was a kind of very -- we would call him maybe left-leaning guy turned out to be a pretty good president. so she is maybe not as good as her predecessor, and that will be interesting to see what's going on.

a big problem, of course, we face in argentina, big. so the market as such is not very important for us, but we basically did open a factory there, a brand-new factory, and now the market is falling a little bit behind. it's not the market, it's the whole country facing serious problems as you are well aware of. >> speaking of serious problems, ukraine. i know that we had talked, and we had hoped that russian business could be okay and that ukraine would result peaceful which has not happened. prognosis, russia, prognosis, ukraine. >> well, ukraine, actually for us is doing okay because we do have some major business with the gsi division, so that means they invest in infrastructure and also xm bank helped them a little bit, so we could do some nice deals there. and our grain bin, grain elevator business in ukraine is doing pretty well, better than expected. russia is very, very slow.

and who knows what kind of sanctions we might have to expect. so what i was hoping is that russia could compensate a little bit for the headwinds we are facing from some of the western european countries, but most probably that will not happen this year. >> all right. well, tough times, but obviously you're buying back a lot of stock right here, right now. you clearly believe 2015's going to be an uptick. >> well, the time for the buyback is pretty good, but it's not so that we basically tried to perform below expectation intentionally. first and second quarter were pretty okay, so they were not as good as last year, but we were slightly above guidance and also consensus. only the rest of the year, we are not that optimistic, and we basically are a little bit more cautious. i'm sure that we will deliver. >> all right. thank you so much to martin, the chairman, president and ceo of agco, good to see you, sir.

tough sector. became a tough sector all of a sudden. we have to understand that. whether we were talking to deere, it would have been the same if we were talking to monsanto. just a very tough business. but it is a cyclical business, and it can snap back. stay with cramer.

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