costco traded well today, all things equal, let down less than half a percent, into earning, i think costco a buy. >> i'm melissa lee, thanks for " "mad money" starts now. my mission is simple. to make you money. i'm here to level the playing field for all investors. there is always a bull market somewhere and i promise to help you find it. "mad money" starts now. >> hey, i'm cramer. other people want to make friends, i'm trying to save you money. i want to entertain, educate, and teach you. call me or tweet me. corrections? they're a process. think of these sell yuoffs as g

began ti gigantic sales of merchandise. it all gets thrown out at once. that's what happened today with the dow plunging 328 points. i know the market took a hit today, but even after today's sale, you need to know that we're down only able 3% from the highs and there could be further to fall because the market has run a great deal. and we only fell back to where we were mid august. i'm concerned that many of the big industrials, when they report their earnings, will disappoint wall street. some of these stocks have been going down for ages. others are just beginning to roll over. as i see it you have two choices here. you can be like warren buffet, take the paint and all will be

well because it's a great country. given the declines we experienced, you may want to stay the course on everything. or you can acknowledge that we're going to roll back a little more, a decent chunk of the gains for the year. and you could take some evasive action. given the economies are gets worse off, not better, it may be in the cards for many of the companies. and stay where they are or go higher. let me stel you about the process of a correction. let me teach you how a correction works. in order to explain why it doesn't pay to get too negative, and it never pays to panic, even though panic seemed right today. i like to break stocks down. i think we should separate fact from fiction. which countries are really being

hurt by the slow down and which are just collateral damage. which are in a position to benefit from the chaos. as all stocks go down at the same time because they're part of the averages. first off you have to -- some of the stocks are what you consider to be at ground zero, they're at the epicenter of the problems. all of these declines feed off of each other in a negative way. europe put sanctions on russia and it shows business. it hurts u.s. exporters as they make less on each sale overseas. here is the bad news, we have not had the estimate cuts from these countries yet. that means when these companies report earnings, we're going to hear about these cuts.

commodity producers will likely go down even more like ford did when it was already well off it's highs. it is now dawning on many investors that the cuts are coming. many fell a great deal in anticipation for it. it's case by case. while nearly all of the t industrial commodities will fall, some have farther to go than others. companies might get dinged enough for it to matter in their stocks. they may get hurt because of currency debasement. not to mention drug companies. they're going to sell a lot of goods but they will make less money on them. the dollar is so strong. then there is banks. it makes them more attractive. even with all of these wrong

headed people calling for interest rates, our rates go lower. we know that lower interest rates are bad for the banks and they're barely down for their highs. and like consumer goods they will suffer from earnings cuts when they report. they need higher rates and they're not getting them, you can people what will happen. all of them have been holding up rather well until today. they can't any more because the estimates are too high which means their stocks are too high. finally, the earnings where companies are being cut overall. this is where the opportunity lies for you when the selloff ends and they always do. retailers, restaurants, the american consumer can feel down in the dumps from all of the headlines out there. to the confusion coming from the white house and everything from intruders to aggressive foreign policies that don't have much to do to help business. that's okay, they're not meant

to. in the end the profits might be better than people think. why? gasoline is going through $3 for much of the country. that's better for a consumer than a $1,000 tax cut. we may not be hiring as quickly as we were, the consumer is losing -- is less fearful of losing her job than a year ago. third, many businesses are what we call secular growers with more products that people like and use. facebook with their new movies or apple with the phones and watch. these stocks will bounce back first. their earnings will not be challenged. defense stocks are also being put on sale here. think lockheed-martin. the bioteches are on sale. going back to a super store

throwing a super sale, you have to consider the customer and how weak they are. you may have cash on hand, but i can tell you that a ton of new merchandise has been issued recently. including alibaba. there is a lot of hedge funds leaning the wrong way. i interviews jack lou about fannie mae stock. yesterday, a judge agreed that the stock got killed. those owners are hurting and they could be selling to meet redemptions by the end of the year. others remember octobers of recent past and they think this is a month where you could have horrendous stock selling. for some, they should not be sold but they will be sold nanny, and there is a third group that will fall because

they're about to have earnings short falls. i have been sounding alarms on these for weeks. i hope you will cut back, i don't want you to lose money. the stocks that don't deserve to go down but are going down anyway, they're going to bottom fe first and they can be picked at. i think we're getting close to the level at the end of the day where there are many stocks that could be bargains. we got this employment number on friday, i would like to see it. i think everything is going down for now. now hurry. i sense there will be time to buy the good ones. so here is the bottom line. don't panic in the face of this nasty correction. it is realistic to expect a further decline. be prepared with your shopping and return list and we'll get through this just fine. al in florida, al.

go ahead, al. michael in california? >> caller: booyah, jim, thank you for taking my call. >> of course. >> caller: my question is about the company bioscript. it's the third largest infusion company behind walgreens and cvs. they are favoring the home health sector and this stock has been depressed and there was rumors of a buyout by a private equity firm and what not. that will be affected by walgreens use that had will sell some of it's infusion division. >> when we get these big corrections, i try to look at the companies making a lot of money, not the ones not making a lot of money. so let's hold off on that one. i need to go to brian in pennsylvania, please. >> caller: my 24-year-old

daughter let me manage her roth ira. i want to do a good job. i bought air lease. do i sell, hold, or use this decline in price as a buying opportunity? >> the drop in oil price is good, the ebola virus, there is a panic attacking hold. i won't be able to stem that. that means that travel goes lower, boeing goes lower and air lease goes lower. it only has 8% of the year. i think you can return to the levels it was at before the most recent bounce and only when it hits $118 would i consider buying air lease, they trade together. >> caller: i'm in buffalo new york, ambarella. >> this is affiliated with go

pro. i said if you have not taken any profits in go pro, you're being risky. i could not have been better on go pro at any point in my life. i think i have every right to say it's okay to take profits in go pro. take profits, also in ambarella. there is three that are in trouble for me. companies that will dinged up and company that's are not likely to be cut at all but are going down too. on "mad money" tonight, 81 million people a month look for a home on zillow. and is ford being left behind in the car market? the serious relationship that ebay and apple almost had.

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. it is about to get bigger with their aquisition. monday we learned that news corp is required move, the owner of realtor.com. it is really zillow's last meaningful competitor. will it matter? it will make up 61% of the online real estate listing market. zillow latest outlooks are

solid. meanwhile the stock is up 36%. now down 50 points from it's high. let's check in and get a better sense of where the company is going. good to see you, have a seat. rupert murdoch, he buys a competitor, what does it do for zillow's margins? >> i think the real estate industry will realize it's rupert.com, and that will make them want to partner with zillow.com. >> we have a large audience. we have a business model which is listing agent friendly, broker friendly. and many people have partnered with zillow. i think the acquisition means

that more people will realize it is just another portal and they should work with zillow. the numbers have come out, you are growing much faster. >> we are, we started this company nine years ago and we zoomed past the competition. we're gaining shares each and every quarter. >> did you ever consider buying realtor.com. you said you would not buy them, you would destroy trulia. >> we did consider buying them, yes. and the thing is, on the internet experience rules. if you build a great product, you get the audience lead, and if you have the lead, the audience follows. it's hard to return around a struggling brand online. once the audience starts to buy, it is hard to turn around.

trulia and zillow have unique users. we separated ourselves quite a bit to that when we bought them the exchange ratio was off. it is about growing zillow bigger and we think it will be a great brand in the family. it will be a separate grand still, advertisers will buy from zillow and they will be on both sites. our traffic has grown so quickly that we have lots of inventory and ads to tell. we had 15,000 agents spends about $240 a month saving. now we have 60,000 agents spending over $300 a month. as you mentioned, the revenue per agent continues to grow as well.

>> stocks are down 50, so i try to figure out, some people think you paid too much or how about these, i spoke with a professor yesterday that said price of homes are peaks. we know that mortgage re-fi are big. is it possible there is another slow down coming and people will not be looking as aggressively for homes. >> i'm not worried about that. what's happening is home values are increasing about 5% year over year. so home values are slowing, but the migration for shopping on to online and on to mobile, i think that swamps any potential real estate slow down. we're not forecasting a real significant slow down. it's kind of a choppy real estate market. some parts of the country still growing as quickly, others not. the real estate market is

growing more slowly. >> your usage in san francisco, has it drop snd. >> no, not at all. >> you said once you would spend a lot of money on advertising. i watch a lot of nfl football. i mean is it working? you spend a lot of money on nfl football? >> we do advertise a lot, we're spending about $75 million. it's working. you see it in the audience number and the traffic growth. it is the largest real estate market out there. >> talk about street easy. that looks like that was a good buy. new york center, new york was a market you weren't doing well in. >> you had to do it, right? >> zillow was the largest in every city but new york. so street easy is an incredible brand for new york.

a year ago we bought it for $50 million, we took the zillow play book to new york which means focus on mobile. we launched a mobile website, and then i phone, i pad, and android ads. i could not be more excited about street easy in new york. >> last question. marisa meyer, from yahoo, just got $5.8 million after tax. i'm not a particular d-- is thee a price? >> this could be a good deal for you, you could start another company, you could stay with it, but this is how i would -- this is how i would turn my company

around. >> yeah. i don't know for us we feel like we're still pretty early and with the tr urulia acquisition, don't think it's the right time to sell. >> thank you, that's what i wanted to know. always great to have you. thank you. shares of ford are in reverse after big losses abroad. is this a buying opportunity or are there more roadblocks ahead? don't miss cramers take.

memo to every board of director out there, when companies take my advice stocks go higher, sometimes much higher. a few weeks ago i told you that angie's list, a business that has been having troubles, was not worth owning. i also said they could be incredibly valuable to an inquirer. and that the right buyer could turn this business into a legitimate competitor. angie's list has hired investment bankers to explore options, including a sale. this stock last year that was

going down sored right into the stratosphere. looks like i was a little too harsh on the people running angie's list. listen for those of you who own angie's list against my advice, i would use this rare moment of strength to ring the register and get out. it is sti it is simply too risky to own. remember i never give you my blessing for takeover speculation in a situation where the fundamentals are in decline. if they are good, i will bless it. angie's list has serious structural problems. they require subscribers to pay a fee. that just doesn't fly. also, angie's has to spend an

unholy amount of money on sales and marketing, about 84% of company revenues. as long as they're charging people for content, it will not reach the level of people needed. potential buyers, listen up. if you were to buy angie's list, make it easy for your billion plus users to access the company's content, it could be a great acquisition. when the company floated the idea of a sale, it's stock went through the roof. so for every our corporate director is listening, maybe the lunatic with the sound effects board, to think if only for the benefit of your long suffering shareholders. here is another piece of management advice for all of you ceos out there, don't wait to

look. consider ebay. earlier this year, noted activist carl icon got involved. finally they announced they're going to spin off paypal. today they got hit with a slew of analyst downgrades. they're looking so bright with so many other companies rolling out mobile and online payments of their own. ebay is not that strong either. spinning off paypal would have been great a year or two ago. now with apple pay, they're just acting desperate. according to a story with bank innovation, they apparently made

a really poorly timed deal with samsung that infuriated apple. the partnership was forced on by the ceo. the former president of paypal left and joined facebook over the summer. i'm starting to wonder ifthey have caused problems for themselves at ebay. but now, apple has surrourounde nearly everyone in the industry that matters, including visa and masterca mastercard. these partnerships are everything. even apple didn't try and go it alone. they teamed up with with the best chip makers and merchants.

paypal is their own mobile payments app to let you buy things in the store but only at participating retailers and they're having trouble getting people to participate. i think they're growth could be crimped by all of the problems in the mobile payment space. listen up, ebay. don't wait until you're backed into a corner to do something for your shareholders. by that point you may have waited too long. >> sam. >> caller: i'm a first time caller, you mentioned that american airlines is in the first place in the airline industry. now you're saying american airlines is -- even if --

american airlines is 22% below their peak. and it is trickling down, how far may it go down. >> i rerank things because companies get better and worse. i reranked them. if i didn't then i might as well not have a show. amr came down a great deal, the shards look horrible. people are worried about that and about ebola virus. i understand. i think that is overdone. if you apt star position here, that's fine, i expect the stock to trade lower, but i will bless it as a starting position. if you own a ton of it, it's not necessarily going to rally here. rodney in mississippi, please, rodney. >> hey, jim, the longer i hold on to it the less i like it,

should i cut her loose or keep her? >> what we did with dean foods, we recommended it and when we saw the quarter, we said that was a mistake, we devoted a full segment to saying we got it wrong. it didn't go down that much, but we said we got it wrong and moved on. i don't like dean foods. it's difficult to say listen, i blew it it, but when i do i own it and say it. mike in california. big time booyah from levi stadium. >> hey, jim, i wanted to ask you a question. in today's stock that i have been watching and thinking about purchasing in, it was up 3% during the day and gave back most of it during this down day. i like the fundamentals of this company and the division. >> you're dead right, they have

good management. they're no longer under the thumb of sears. i think it's a domestic play works. not even needs to be thrown out. some stocks, when all of the selling is done, are going to do okay. i like lands end. memo to management. we'll have more coming up on "mad money." plus, america found more oil than anyone thought possible. instead of investing your dollars in a driller that may come up dry, buy the company that has to touch it before it gets used.

i know i should be used to this by now, but it drives me crazy that so many people don't understand something so basic about the stock market. people on twitter don't believe that, or at least some of them.

when you buy a stock, you don't want to have to change your mind or sell it for a loss. you buy is because it makes sense for the inputs. you're buying that with a thesis in mind. but if the thesis changes, the inputs go wrong, you will have to change too. you will lose money, that's just what happens. we have to make decisions based on the knowledge we have and whether the stock and your bank account can withstand the pain. you can't invest like warren buffett because unlike him, you can't afford to wait forever. being a billionaire has it's perks, that's one of them. ford motor told us for months that europe was looking better and south america was not a hardship case any more. then ford took it back. europe bad, south america terrible, and the united states worst than they thought as well.

none of these were in the script a few months ago. i had no reason to doubt malali, he was going out at the top. it turns out things were worse than we thought. you can reach a couple conclusions. things suddenly got much worst in a very short period of time. it's hard for me to believe that malali deceived. he has always been straight with me. mark fields has been straight with me, too. i don't know what you conclude, but i think things got much worse very fast. but i still wasn't ready for a total triple whammy. i don't like to lose 10% or 11% in two days.

when the stock market opened yesterday, we, meaning my coport foal you manager and i, viewed that has a rally. even if we had to take losses. i communicated that to you and with you in the show last night. it worked and the trust saved a lot of money even as we took losses. they're brutal and painful. what we didn't light up up on hurt us. we have to try to perform the best we can given the constraining restrictions and we have to answer to people who subscribe. we have to change and adapt to lose less money now. it's what you have to do if you care about performance. if you don't, hold it from balking. why is this reasoning so hard to grasp? this business is totally imperfect. people are constantly making

mistakes. you're just trying to make as few of them as possible. that's it. sometimes you're just trying to cut your losses. that's the way it's done. i have no problem admitting it. i wish i could be all knowing and all seeing. and we're talking about imaginary super powers, i wish i could fly too. i commute is awful. in the real world, the future is always uncertain and we have to deal with that the best we can. if you ware a denture, take the simple test.

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relational activist? is a break up going to happen? >> it's very sad what's happening, and i think that what you have to do is say that you know what, people have done this for awhile. it is not structurally in the right moment. the group is headed down. i have faith in the long term. let's go to paul in connecticut, please, paul? >> booyah, gym. >> i have a guy, the commissioner of our league is from connecticut. new york community bank, i would like your opinion on what the stock might do as they cross $50 billion in assets and becomes classified as too big to femaai. >> the yield protection is not working. you have stocks 6% to 8% yield where the stocks do not start going mcclendon.

we will take a pass on owning that stock. david in california, please, david? >> caller: hi, jim, i was wondering what is your opinion about harman international. >> it is going down. we have been talking about this theory, i think harman is a great company. i think when the smoke clears they will be one to buy. right now it is still for sale, and i think that will have a peak year. people are selling because they have the brains in cars. how about jason in massachusetts? jason? >> caller: jim, when would you buy salix? >> i like it, and i like allergan. they're all in situations that i think will likely do better for shareholders than work, it's fine with me.

how about boris in new york. >> caller: thank you for your show, the combination is entertaining. >> thank you. >> caller: my question is about lazar financial services. >> if you like this at 3.5% i think it's a buy. why do i have to wait in the whole complexion is going down and i don't want to be too eager. let's go to dave in california, dave? >> caller: booyah. i want to know about avnr. >> we have to look at this thing, it spiked big on a new win, and we have to go back over and make a decision. i cannot opine on it right now, taking one more call, i'm not making fun of people who stutter, and i know there are people champions of that cause,

i don't want to get in the way of that. let's go to jay in texas. >> caller: booyah, jim. mine is chart industries. >> nay missed the quarter, they missed the quarter, what happens when you keep missing quarters your stock gets cut. let me throw in west port, you don't buy stocks where you repeatedly miss the quarter. that, ladies and gentlemen, is the lightning round. >> sponsored by t.d. ameritrade. ♪ 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.

markets are getting slaughtered again today, i think it is time to embrace security. that's why i like these pipeline plays. toll road operators that benefit from the rep sans in north american gas and oil production. enb, they operate the world's longest pipeline season through canada and the united states. they have exposure to the shales, the oil sands, and the natural gas gathering business where they collect from a well and transport it. and they have wind and solar

energy. they make money from fees. not much volatility in the results. thanks to our country's energy renaissance, they have a lot of growth projects under construction that are commercially secured. a big boost is coming to the company's earnings. they had a big analyst day yesterday. one worry that came up is that some of the part-tiipelines got delayed. let's take a closer took and learn more about prospects with mr. monoco. just like last year you had a big energy conference, you reinvested in the dividend, you went up in the market. this was the first time where i felt when i went through the comps that there may have been more about regulation and how that can really slow you down than ever before. >> yeah, i think that's right. let me maybe just set the

context. it's tough out there, no doubt about that. if you look at the last two to three years and what we will do in the next two to three, we did a lot in terms of executing in the field. there is a concern about regulation and how long things take. at the same time we're manages that situation the best we can. we'll open up new parks of 1.7 million barrels per day with the infrastructure that we're putting in place right now and that we'll be putting in place before 2017. now to get to your question, it's tough because regulators are taking longer with their processes. they're consulting more with their stake olders and that takes time and adds cost. could it add so much cost that it makes it so that you're not competitive against trains and, i think it's very clear that the safety record of trains it not as good as the safety

record of pipelines. >> i think the margins on trains and rain is pretty good. even if your costs go up a little bit there is always escalation. i think the margin difference is quite substantial. >> so your oil producers still want to deal with you? >> i think so in the long run. having said that, jim, if you're a producer in canada or where ever, you want some backstopspig in case things don't go the way we plan. >> i see, and i didn't see as much as i would have liked, you have been very shrewd about where you can take your production. there are refineries in all sorts of places that were being underutilized or using -- you're getting that oil and gas to where it has to be like nobody else is. >> excellent point. the issue is that not all oil is the same oil. heavy oil from western canada, in particular, is a real good

match for the refining capacity in the gulf coast. which is predominantly, half heavy. a good match there and now with so much light crude it's important to get that to the right market. in the eastern u.s. and canada, that's where the light has to go. >> if i'm an environmentalist, can't i say they really did a lot around me? >> i guess our view on this question, jim, and we said this before, we need all of the pipes in western canada. the supply profile is so strong that we need all options out of the base. >> you really embraced bocking. >> no, that is a case of history, really. we have been in the balcan before it became popular. it was a stroke of luck, we're

not as strong in the other two. >> you don't want to be where there is a lot of competition. one of the things i like about enbridge is i don't feel like you're bidding against others, you pick them where they're not. >> sometimes we lose projects because it is competitive. if you're weighs every project you a different kind of problem. we're pretty selective in what we do. you talk about having great ideas, but you point-blank say, you, to conclude on this one an unusually high growth favors a higher payout than our peers. does that mean we cannot get what they pledged on this show? >> our growth rate will match our growth rate at minimum which is 10% to 12% average annual per year. >> how about just in terms of

energy independence, i had to speed up my view just because of what we saw the other day. that means that i was looking for ten next year, do you think we are energy -- we're going to be continental self sufficient by 2018, aren't we? >> i think that is probably right. assumed in that you have canadian barrels and -- >> i'm saying continental. i also know that we're exporting it. i don't know if you think that's the right thing. >> we need to have connective between north america and the rest of the globe, there is no doubt about that in my mind. the reason for that is you need the right price signals, you need global price signals to induce further investment. we don't want to stop the flow of growing production because we're not getting those -- >> that's right, that's why you

have to get rid of the $70 a barrel price. this is the great growth pipeline company with very conservative financial standards. stick with cramer.

tough day, industrials still going lower, some spots will bottom tomorrow. there is always a bull market somewhere. i'm trying to . >> tonight on the profit... >> marcus, nice to meet you. >> i go inside jacob maarse, a high-end florist and gift shop in pasadena, california that hasn't earned a profit since its founder died in 2010. how much money will this business lose this year? >> close to 200,000. >> sloppy business practices... do you have an inventory system? >> no. >> together with lax management has driven down sales and piled up debt. so are we going the right way? >> i believe so. >> we need to know where we're going. if they don't make changes, this 47-year-old family business will be forced to close its doors. this business is a total mess. i'm fighting against time to light a fire under these people... this is the thing that will help us go from the red to the black in one month. before this business crumbles and dozens of employees are out on the street.