♪ pump it >> lululemon, right, i'm telling you i like -- >> the bro mans is on. >> bromance is on. >> thanks for watching. see you tomorrow again at 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 and i'm just trying to make you money. call me at 1-800-743-cnbc or tweet me @jimcramer. today's a first day. 13th anniversary of the terror attacks that kill sod many at

the pentagon and pennsylvania and the world trade center. it's a gloomy sad day. always will be. it's difficult to talk stocks on a day like today but we have our jobs to do and they don't stop on september 11th. so let's do this. let's remember what happened that day. reach out to someone you know who lost a loved one. tell them you're thinking about them and never forget this tragedy. as far as the stock market's long run even as today was mixed sometimes i wonder if we should try to enjoy the rally while it lasts. when i looked at the screen today with the dow dropping 20%. nasdaq advancing .12 i recognize and admit a lot of the good stuff is happening because it costs a little to borough money. each day that makes something good come true. today for example they spent $183 million to buy another resort. park city mountain in utah. ski business has been tough

lately. tenants have been dropping. some down 50% and the earnings of of vail alone weren't enough to own the stocks. but if you didn't own it you missed the news that they're buying someone. 10%. the money is cheap and the expansion makes the stock more attractive. how about twitter boroughirowin $1.5 million. that wouldn't happen if rates were higher or if it did the deal would usually crush the stock as they buy and shorten it to lock in a good investment without a lot of risk. but money is so cheap it didn't hurt. it was down $1.50 at one point. this isn't so bad. they're borrowing at such cheap

prices. they can accelerate their business for a profitable chemical mass. >> in the middle of the day bought another chemical company. for $1.8 billion in cash so it can grow revenues or earnings next year. how about after close when alliance data bought a heavily shorted internet advertisement company for $35 a share. that's a huge premium to the $26 and change closing price for $2.3 billion in stock and cash to grow it's e-commerce business. one thing you know it's $26 and the next thing you know it's $35. of those four you probably only heard of twitter unless you ski or you heard a lightning round call last night asking me how alliance was doing and i said i would circle back. they're cashing in on low interest rates to buy growth because there's so little organic growth out there meaning the natural growth that would

happen if you didn't get an acquisition. at one point they were relative rarities. now they are such daily occurrence they often don't even make the news. i said when have you been mentioning this $2 billion deal. the $4 billion deal we left it out. instead the news is how poorly the economy is doing versus where it should be or how the feds are going to take the low rates away because too much easy money will lead to inflation of commodities. the news is about the contrast between howell stocks are doing versus how poorly you're doing or people are doing or how the average is going up. another continuous loop. the media makes it seem like this is all so odd. so surreal it has to go away. with stocks going down as soon as the fed comes to its senses and raising rates taking away the nearly free money. they raise the cash and do the deals. but there's several key parts of this story misdsing from the narrative you hear every day and i'm going to fix that tonight.

there's many reasons why we have so much money floating around. remember our rates were rising until europe got in trouble and decided to take it's rates lower to help battle unemployment and a lack of growth. their pain, our gain. now you can blame what the fixed income market is doing more on europe than on fed chief janet yellen but i don't see why we should blame anyone or anything that makes business grow. it makes us wealthier. where's the blame? what are we supposed to do? put an asterix next to the growth. what? i mean what matters is that it's happening. i say thank you fed, thank you france, thank you spain, thank you italy. i'll take the 8 point gain in vail. vail stocks do not deserve to go higher using free money. deserves has nothing to do with

it as we learn from the movie unforgiven. who cares? i'm not mad they have access to the capital i would only be angry if they didn't use the free money. second missing piece of the puzzle the fed is supposed to be worried about job creation and economic growth in addition to fretting about inflation. we just got a sub par last friday and another weak number today. what's the fed supposed to do to please the hedge fund guys. say you know what that data is good even though it looks bad all because a bunch of super smart hedge fund managers think they're not worried enough? the data isn't all that good. they can't just claim sit good and make it harder for business to hire. that would be idiocy. as for inflation, where is it? oil is plummeting. everyone uses oil. the fed wants price stability but when it comes to oil the fed wants it lower. it creates nothing for this

country or it's people. how about food. the food price index has been crashing back to levels we haven't seen in four years. ever hear that good news told? here i want to tell good news. the fed wants price stability but when it comes to food the fed wants food prices lower so we have more money left and go to the supermarket. when the fed raises rates oil and food prices typically fall. that's not lapping without raising rates. i say terrific. at the same time there's no inflation at the retail level because the internet lowers the price of everything by pitting companies against each other. amazon and the chinese company that will soon come public alibaba are companies that serve to lower the cost of the consumer to you of goods. you can save a fortune on that thing. that's what the fed wants and doesn't need to raise rates to do it. that's terrific. the marketplace and the internet are doing the fed's job for them. why do we hear the fed has to take action?

for who? for what? if anything the fed is trying to combat the rest of the federal government which is doing it's best to frustrate the fed's efforts to create an atmosphere where more businesses hire more people. new health care rules make it more complicated to hire. the fed does almost nothing to stop foreign countries from dumping their goods in this country. we're becoming a natural resource rich country right before our eyes unless you're in washington. and there are so many new regulations issued every month and so much pressure put on the banks not to make bad loans that entrepreneuri entrepreneurial. those tend to be the companies that don't hire. if anything they tend to fire or replace people with the latest technologies which aren't subject to health care regulations or work rules or minimum wages.

the fed has so many other forces doing it's job you have to ask why should they pile on to this? it's crazy. here's the bottom line. we have cheap money because of the fed and weakness overseas and i say why not enjoy it while it lasts? maybe, just maybe, we even deserve it. lionel, connecticut, lionel. >> caller: hey jim, how's it going. >> i'm doing good. >> caller: i love your books. >> thank you. >> caller: you're welcome. anyway i like the banking sector with all the bad news behind the company, just got upgraded. should we be adding bank of america? >> you know it's a big position for action alerts and we're bummed that the stock is just stuck here. our basis is a little bit lower than this bought i think bank of america is going to at and i don't think it goes there in a straight line because there's so many shares but i think it goes to 18 and that's good news and you'll want to be there. let's go to rich in my home state of new jersey, rich.

>> caller: jim, booyah from new jersey. >> i was just down there. what's going on. >> caller: how about arwr? arrow head research. >> yeah, i know, arrow head research. you know, it's so speculative. as soon as i hear nano tech. let me tell you how i feel about it. i never made any money recommending nano tech stock. this is affiliated with cal tech which is the smartest school in the world but i can't recommend a nano tech stock because i never made a dime for anyone in a nano tech stock. a lot of good stuff is happening because of cheap money. i admit it. i recommend it. i accept it. enjoy it while it lasts. you deserve it. "mad money" tonight a beautiful handbag or ball and chain? i'm trying high fashion accessory places to see if they can strut higher or be an

overpriced drag on your collection or portfolio. then controversial shootings caused them to arm police officers with wearable cameras. could this cause the taser surge to go higher? plus the bio techs ready to go on a shopping spree. i would reveal the names in the cross hairs. stick with cramer. >> don't miss a second of "mad money." follow @jimcramer on twitter. have a question, tweet cramer, #madtweets. send an e-mail to madmoney@cnbc.com or give us a call. miss something, head to madmoney.cnbc.com. for over 60 california foster children,

extra curricular activities help provide a sense of identity and a path to success. joining the soccer team. getting help with math. going to prom. i want to learn to swim. it's hard to feel normal, when you can't do the normal things.

to help, sleep train is collecting donations for the extra activities that, for most kids, are a normal part of growing up. not everyone can be a foster parent... but anyone can help a foster child. what the heck is happening with handbags? i mean the whole business. for ages the whole business was hit or miss with more misses than hits. except for high end accessories, especially handbags and seeming that the beloved michael kors, kate spade, they could do no

wrong as their stocks were higher and higher. now the rest of the apparel industry is making a bigger come back. something not that long ago right here on the show. but the once red hot handbag stocks are being evicerated. i thought it would be why. not just go buy this or go buy that. why is this happening? what's happening here? why have the stocks fallen apart. most importantly are they going to get to level where is they're worth buying. michael kors which was rallying nonstop since it came public at the end of 2011 was putting up incredible sales numbers. finally peaked. since this peak this stock has fallen down to $75 and change. or how about kate spade? this was supposed to be the next

michael kors. it became the sleepy fifth of pacific and this past february they shed the last of the underperforming brands to focus exclusively on the kate spade handbag business. the new kate spade was producing astounding store figures too. and then about a month ago, actually about a month and a half the stock peaked at $40. since then it tumbled down to $30 and change. should we view these as buyable pull backs or is there something more sinister going on here? is the entire handbag business now in trouble or could it be that kors and kate spade are following the footsteps of the dreaded miserable coach bag? remember coach was once the red hot handbag and it's stock outperformed for many years but 2.5 years ago coach hit and wall

and ever since it's been pulverized. it lost half of its value. let's take a closer look at michael kors and kate spade. when michael kors reported the most recent quarter in early early they had wall street sales and gave you a same store sales number. it's just like this. it was the signature number up 24% year over year but the stock got slammed anyway. it was such a strange action. went up and then went down. into 4.5% in a single session. first of all kors had serious problems with declining margins. something management has been eluding to for awhile. the company's retail operating margin declined by 198 basis points year over year. imagine what forecasted further declines over the remainder of the fiscal year. this had to do with the cost of investing in the business. things like the cost of opening new stores or expanded

distribution facilities. that's money well spent and if that's all it was, i wouldn't be worried about kors at all. i'd be pounding the table telling you to buy it but there's more to this story. the killer word on this conference call that caused the stock to go from this to this was when management talked about mark downs as in the quote heard around the world the margins are going to be impacted most by markdowns. kors has been a luxury brand but when management talks about marking down the merchandise in the conference call that can make people leery. too much inventory is the bain of all retailers because you need to cut prices in order to move your old merchandise to bring in the new stuff. this makes people worry that kors may no longer be the high quality luxury player we thought it was. however management did have an

alibi here. it will take time to tell if it's legitimate. their excuse, the company said they tried to bring in fall merchandise too early to get a jump on the fashion trends and it blew up in their face. they made an unforced error. the problem if their view wasn't with the overall business they just messed up the timing with their fall merchandise. will the excuse hold up? i think we have to wait until next quarter to find out because they just did an 11.6 million shares secondary last week. at $76.75 a stock that was owned by a couple of founders that have since left the company. the stock has gone lower since then but it seems to be stabilizing. after the sickening decline the stock now sells at a low 15.8 times next year's earnings estimates. that's cheaper than the average stock and the s&p 500 despite the fact that kors is growing

faster than that. i like that. i do think it's worth waiting before we see the next quarter's results before rendering my final verdict. if this was an issue involving timing it can rebound but if it isn't and the earnings estimates are too high then the multiple is going to turn out to be lower than it is. as for kate spade this stock has a lot more pain in the future. this one i don't want to touch it. it's too hot. when kate reported on august 12th the stock rallied 10%. they reported specific same store sales of 10% but then as investors listened to the conference calls the stock jackknifed. it closed down 25% in one day. the problem kate spade also saw it's margins getting hurt by markdowns and a more promotional environment. code for wow, look out. in particular the company had been forecasting an earnings margin of 25% in 2016 but management pushed that number out to 2017 while forecasting a

decline of 175 basis points in the gross margin. not good. even worse, the numbers are expected to decelerate down to the high single digits in the second half of the year. a company with 9% same store sales growth is worth less than one with consistent 30 plus numbers. unlike michael kors they didn't have alibis about how they mistimed the release of the merchandise. this stock is quite expensive. it trades at 47 times next year's earnings estimates. boy think about how much more expensive it is than kors. kate was priced for perfection before the quarter was announced and when it delivers less than perfect results the stock got crushed. here's the bottom line. it's too soon to tell if michael kors and kate spade are going the way of coach. but as long as these companies are talking about markdowns,

margin deterioration and a promotional environment their stocks don't deserve to trade at the lofty levels they used to. i say with all the good stories we're seeing in retail right now, you know what, you can skip the handbag aisle all together. let's go to motion in connecticut. >> caller: hi jim, in light of everything that's happened to family dollar do you think 5 below is a good take over target. >> no, i don't think it is going to be taken over and the company is very happy with how it's doing. when you go over the conference call they're not concerned at all. they think things are good. that's highly unlikely i believe. you own that stock for earnings. it does have a descent source but was not a blow away quarter and i think that the company recovered as the conference call went on because you realized they're on track but not blowing it away. on track is okay. jack in new york please. >> caller: hey jim how are you? >> real good how about you? >> caller: i'm good. i have a question about

jcpenney. i bought that a few months back. wondered if you have any thoughts on it. >> i happen to like jcpenney. why? the comparisons are easy. because i like retail. because i understand that the business is good and he sells a huge amount to jcpenney. that was the insight "mad money" gave you and i'm sticking with that insight. looks that kill? kors and kate sure have them. i think these stocks don't deserve to trade at the valuations they used to have. i wouldn't buy kors here and i would be an out right seller of kate spade. much more "mad money" ahead including taser and not just the stun gun. police departments everywhere turning to the new wearable devices. is it the perfect jolt you need or too dangerous to touch? and then the drugs that could be take over targets. >> plus restoration hardware

sold off after a disappointing quarter but do they have more in store? stay with cramer. ok, if you're up there, i could use some help. smart sarah. seeking guidance. just like with your investments. that sets you apart. it does? it does. you're type e*. and seeking another perspective is what type e*s do. oh, and your next handhold...

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i would never do anything like to talk to you about how you can use the stock market to profit from that tragedy in ferguson missouri, unarmed

teenager shot by a police officer last month. circumstances that are still murky. but given the way it's captured the imagination of politicians and voters and it could turn out to be a pivotal moment in the history of american law enforcement. i'm talking about wearable cameras. they're using them to capture what transpires during an arrest. a confrontation. for a long time they objected to wearable cameras. understandable. who wants to be under that level of scrutiny every second you're on the job. they also didn't want them in police cars too and now they're standard. now i think wearable video cameras could be the new standard over the next decade or so.

they make too much sense not to be used. you know who is the number one maker of wearable cameras for law enforcement? taser international. they're the maker of nonlethal weapons and actually taser do still count for 90% of the companies sales. not a lot of competition there and still has room overseas. only one in 50 police officers use them internationally but what i like the most about tasers now is it generate ace ton of cash. like the rapidly growing wearable video camera business. they'll embrace the wearable video cameras not because i think it's the right thing to do. not because i think it's smart po policy and will improve the behavior of police officers and

everyone they interact with and making prosecutor's job easier. look i like these things. but the reason i think wearable video cameras are sweeping the nation, one simple reason, economics. at the end of the day it's cheaper to pay for the cameras than it is to deal with citizen complaints and invariable lawsuits both with a legitimate and nuisance variety. cambridge university did a partnership with a police department where they made officers use taser's wearable camera. the result, they saw an astounding 88% reduction in citizen complaints and an amazing 60% reduction in the use of force by police officers. no surprise everyone is on their best behavior when they know they're being video taped but the key here is that the reduction in complaints saved the city an enormous amount of

money. the average complaint cost about $20,000 in police resources and legal fees. so the 88% reduction in citizen complaints saved the city. that's a heck of a lot more money than the $90,000 a yet they sent on tasers, cameras and evidence.com. for cash strapped cities across the can country which almost everyone is, the wearable video cams are an investment that can save them a fortune. that's not even accounting for more reliable benefits for prosecutors or reduction of use of force by police. they're already the number one player with seven major cities in the u.s. actively using the companies cameras along with three more during trials and ten major cities having active discussions or using the cam ras in a pilot program including new york and los angeles. they won a contract with san

diego for wearable cameras. tsaer has a huge edge because they have strong relationships with 17,000 out of the 18,000 law enforcement agencies in the u.s. thanks to the traditional non-lethal weapons business. they have the connections to sell wearable video cameras to every police department that wants them. plus they're seeing international demand particularly from brazil. how about evidence.com? this is another smart taser innovation that could be a line of business down the road. most aren't equipped with the technological know how to properly manage storing video evidence. many police department versus to dig through a messy mix of physical and digital evidence which results in a lot of mistakes that can lead to mistrials. with evidence.com taser gives police departments a way to manage their video evidence and police departments love the thing. the amount of data uploaded to

the site has quadrupled. because it's a service business, it's a cloud business, it gives taser a nice stream it can bank on year after year. it's about as inefficient as it gets. it could take longer than it should for cities across the country to adopt their evidence platform but i think it's a question of when, not if. however while i like taser the company i have an issue with taser the stock. in the months since ferguson shares skyrocketed from $12 and change to $17.45. that's a 45% move. now the most recent quarter is pretty soon but the stock is trading at 40 times next year's earnings estimates and that's expensive although if you consider the long-term growth rate you'll get a higher stock. my view, i don't like to chase but i think taser is an attractive situation. i felt that way since we brought the ceo on more than a year ago

it was below 12. company has a beautiful balance sheet. $48 million in cash. $100,000 in long-term debt. consistent double digit revenue growth and the earnings could indeed explode higher once taser starts to wind down the research and development spending for its wearable video camera business. if they were to cut the budget by $2.5 million the earnings per share would increase by 30%. in other words the earnings here would be a lot higher if the company were investing so aggressively to grow the business. wearable video cameras are the future of law enforcement and i think taser which is already the number one player here will own this going forward. there's nothing going to happen this week but my confidence that this is no longer speculative but is an integral and serious tool for municipal governments makes me think you can do some buying now and some buying later if the market takes a nonlaw

enforcement spending related dive. it gives you a better price for this new policing necessity. much more "mad money" ahead including the companies battling the most dangerous diseases. i'm naming the bio tech stocks that could get taken out and they're also good. restoration hardware knocked me out of my chair when i saw the disappointing report but on the conference call i heard something that change mid view entirely. i'll share that just ahead. a picture is worth 1,000 words and a tweet just 140 characters so stick with the real thing and call me with your questions on the lightning round. stay with cramer. you're driving along,

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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. you know i like the bio techs here like the gilead and regeneron. but what about the ones i don't talk enough about because they're really hard to learn but that doesn't stop us here on "mad money." last month they caught a huge take overed by from roche

because the company has a drug in the works for well defined patient population that can generate a lot of sales. plus they're starred for growth and innovation which means any of them could snap up smaller bio tech companies that could enhance their pipelines. it's another smaller bio tech that made you a fortune if you owned it going into the news of the acquisition. so with that in mind, i decided, you know what, i have to help you find the companies that could be the next biogenics. they could easily be taken over. that's the commonality on these types of deals. all right. so who's the first name on my list? acadia pharmaceuticals. symbol acad. $2.7 million company developing

a drug. these are always hard for me to pronounce. i'm sorry. and that drug is for parkinson's disease related psychosis and alzheimer's psychosis. in addition to all the other horrible tragic things about parkinson's and alzheimer's both of which are incurable 20% of patients develop psychotic symptoms and there aren't any descent drugs out there to treat them right now. doctors, what do they do now? they just use traditional antipsychotic drugs off label but these have hideous side effects. they have a remarkably clean safety profile. how big could it be. >> how much? >> it's the first real treatment for this condition.

until recently doctors believe that psychosis was a side effect of the treatment for parkinsons but lately it's been recognized as an actual symptom of this tragic disease. tip of the iceberg because treating it could be worth 3 to $4 billion in the u.s. the $2.7 million company sitting on a drug that might do $5 billion in annual sales. that's before we look at schitzofrenia. it met all the points in the phase three trial for parkinson's psychosis and they're expected to file a new drug application in the fourth quarter which means this drug could be approved by the second half of last year. meanwhile the drug is in phase two for alzheimer's with data expected for next year. you're still playing fda roulette with this one and while that's not risky as the russian

version it's far from a sure thing. now arcadia rallied 50% in the last four months because the stock rebounding from a major sell off this spring when all the stocks were in the dog house and it's really only up 10%. i think it's worth buying and as we get more positive data acadia could easily become a take over target for many growth big pharma outfits. i said i wish i had come to it earlier. sometimes you do have to say i think it's good here. next up is isis pharma. it's a pioneer in the development of what's called antisense technology. meaning drugs that work by altering the rna. rna is the substance that takes the blueprints from your dna and turns them into reality. if you have a genetic disorder it lets them fiddle with your rna. so the problem, genes don't get

expressed. this is game changing technology and the stock has gotten a 60% gain since i last spoke to the ceo in may. isis has room to run since it's up 3% year to date. the company has one drug on the market for a very specific genetic disease. it's a pretty limited market tu opportunity but the fact that it received fda approval it validates the entire platform which is very important considering the size of this company's pipeline. isis has 31 drugs in development which of which treat rare diseases which can be luck rangers tif for the drug company. including a drug in phase three ttr -- that's a rare genetic

condition that causes problems in the heart and they have something for spinal muscular atrophy. there's also a number of anticancer treatments in phase two and phase three and interesting formulations for diabetes. that's why we were so excited about it. isis has such a big pipeline it will be a big steal for any operator looking to boost it's own growth rate. isis it's time. finally let me mention achn is now basically the last independent small cap drug stock focused on hepatitis c which as we know is a huge market. they have run up from $2 in change to early june right now. the fact that we don't have any efficacy data on their drug i'll take a pass on it.

it's the kind of bio tech where take over speculation could be foolish because the stock already more than quadrupled. the others are up barely for the year. say i missed this one. maybe it comes down big. you had another chance but it's too risky for me to recommend to you. i think we're entering a period where the slow growing big pharma titans will be acquiring it for the big pipelines. i could see acadia and isi isis pharma catching bids. even without takeovers i think the two stocks have plenty of room to run which is why i think they're worth buying regardless of whether they attract a bid or not.

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it is time. it's time for the lightning round. the lightning round is over. are you ready? it's time for the lightning round. christy in north carolina.

>> caller: hi cramer. thanks so much for taking my call. >> my pleasure. >> caller: i'm calling about smith and wesson. it's been down and came up. >> too inconsistent to me. alliant tech systems. the nation's largest bullet company. glenn. >> caller: booyah jim. >> booyah. >> caller: talk to me about aig. >> rates are only going to head higher and the rates is terrific and the company has tremendous momentum. we like it more than hartford and you should be buying aig. steven in minnesota. >> caller: yes, sir mr. cramer how are you? booyah. >> how are you? >> caller: doing good. yesterday i bought starbucks $77 and overnight dropped. seems like starbucks is stuck in the mud. what do you think? >> the stock has been trading down and when i have been calling trying to find out what the story is stock is down $1

and change and i don't want to say it's a buying opportunity because no one knows what's going on. but my charitable trust owns it and we would be buying it tomorrow if i had not just talked about it because the rules of the charitable trust is that we're frozen unfortunately. that's a lot of great stock get frozen before we can buy them. ed in connecticut, ed. >> caller: jim, how are you doing, rax. >> you know there's so much chatter it's going to get a takeover bid i feel it's out of my hands. the stock is going to go down $5 or $6. if there is one it will go $6 clor $7. >> let's go to marsha. >> caller: i love your show. what is your opinion of one oak and it's future. >> oh, i like one oneok very much. i think it's just a very solid good company.

the reason why it only has the 3% yield is its a growth mlp and not unlike, by the way, nwe which i like a lot. steven in washington. steven. >> caller: booyah from seattle. >> booyah. >> caller: so should i hold on to my sandridge energy? >> the problem is oils come down a lot. he's done a lot more work than i have. i'll stick with lee. let's go to rick in pennsylvania. >> caller: booyah jim. i'm wondering about sonoco products. >> this is a great american company that's done nothing right now. it's a container company and i like it and i want you to stay in it. let's go to dino in michigan. >> caller: hey, booyah. what's going on? >> not much. how about you. >> caller: all right.

i have a question about just energy. >> that has a high yield. when i see an 8% yield it makes me think something is off i don't know about. i've done well with this name, up 31% for the year to first solar. why deviate? and that ladies and gentlemen is the conclusion of the lightning round. >> the lightning round is sponsored by t.d. 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 with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade.

all right. restoration hardware, they blew it. they blew the quarter. they whiffed. they forecasted more revenues than they ended up delivering and people furiously dumped the stock. at one point selling it down almost 10% in after hours trading last night, an insanely stupid bit of trading because the stock only closed down 2.5% today. frankly i think the stock's attractive and i saw the huge double digit brand revenue in solid earnings. i liked it during the call when the company showed tremendous humility and i liked it more when the stock got hammered. here's why. first sure they closed down $2 and change earlier today. but expectations were high because the company did overpromise. normally i would regard the excuse that it's more of a forecasting problem and not an execution problem as totally lame. he put the forecast out there, we didn't. however the candor he showed about the huge catalog the one i

jumped about on air because i couldn't lift it resinated to me. as he said listen i run the company and my big set of books gave and i was telling the team last night i said look it's sitting on my counter in my kitchen and i haven't sat down and went through all the books yet because it's a lot. same thing with me. why back these guys? first because they adjust. they figure it out. they improve. the quarter did improve by the way. second because garavagly is a visionary that gets he's creating a gallery for those that would actually do it. it's difficult and the interplay between the catalog and the store is an on going struggle he's going to nail down. it's not just a struggle. one of my favorite moments on the call came when he said being in the retail business is like being at war. you need a solid strategy

constantly evolving. you have to not only focus on your plan but address your plan and execution to the recent developments of the battlefields and the moves of your competitors and you have to be prepared for hand to hand combat monthly, weekly and daily as the environment is brutal and ever changing. that's my guy even as he admits he got the top line outlook wrong. he said we should have been smarter in how we built our plan. he didn't site the weather or the challenging environment or the weakness of the american consumer for his incorrect forecast. he blamed himself. now of course if getting a real mea culpa made me want to buy a stock i would be a sentimentalist. they have gotten it right as the quarter progressed. you have less risk and more reward now than you had yesterday. i like people who know the stakes and know the score and

offer great merchandise for good prices in their own environment. restoration got it wrong this quarter but they got it more right than just about anyone else and that frankly is good enough for this guy. stick with cramer. tigers, both of you. tigers? don't be modest. i see how you've been investing. setting long term goals. diversifying. dip! you got our attention. we did? of course. you're type e* well, i have been researching retirement strategies. well that's what type e*s do. welcome home. taking control of your retirement? e*trade gives you the tools and resources to get it right. are you type e*?

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that's real good news. stay in it. i like to say there's always a bull market somewhere. bull market somewhere. i promise to try to find >> narrator: in this episode of "american greed"... could this man be brooklyn's own bernie madoff? >> people who lived in that neighborhood never conceived that this schlubby-looking guy was going to hurt them. >> narrator: because, unlike madoff, philip barry's no fancy billionaire flaunting the high life in front of his victims. he's one them. >> he was wrapping himself in the mantle of the hardworking work ethic of that neighborhood and using it to lure people in. >> narrator: and he's quietly building what may be the longest-running ponzi scheme in