>> a pretty big guest. >> i'm hanging out for that. facebook reports october 28th. it traded well today. i like fb, facebook. >> all right. i'm melissa lee. thanks for watching. don't go anywhere. "mad money" with jim cramer . my mission is simplejfjfñi e you money. field for all÷ there csñ always homework in summer and i promise to helpxd u find it. "mad money"xd starts oknow. hey, i'm e1cramer.r tááuz cramerica. i'm trying to save you money. my job is to educate and explain how days like todayok occur cramer. why did today's rally fail and there wasw3 one, dow fell 223 points, s&p dropped 1.65% and ñ]

nasd nasdaq shrank. the mid-day surge was a short squeezed fueled rally. too much selling at oncet( and selling returned accelerating into the bell. higher. its was a hideous affair, tretry not xdfáover. since alibaba becameçó public, e isis square, collapse of oilq prices.lp the recession, courtesy of russia.÷%-once again this is a % market. the fed indicated there w3÷ no hard erased rates, i got that and a very good china export number that would turn the market around and we heard peace

rummings in ukraine that willlp turnxd ukraine. we have a genuine sense of panic, ço$eone to get out ahead ofçó others and a fuel somethin nasty is lurking up there that we don't know about. some big bad event we don't see happen so rather than join the panic, tell you what would make it to buy and not sell.fá unfortunately, it's a checklist and for manyw3 investors, it's i hard a checklist. first the ebola htoutbreak, itéc must, so when the lead story in the wall street journal is ebola caselp putsñi focus on safeguar and in the upper right hand corner of the new york times saysc dallas nurse contracts ebola, we won't get a e1e1fábot.

we can't.fálpe1lp these stories will reade1e1-l l it's easier to get thanw3 ebola. ete1r international volume fellçó a staggering 40%ok according to a excellentcñiok comparison piece out this morning from wells fargo research if i canñi get i. airline stocks dropped and to use american airlines it peaked 44 in june. all the way to 28hpd change but this is the daunting figure. it's still up 13% for the year. one source got it under control in late spring of 200lpxd 3 and group rallied hard butfá the te is under control and because of so manyt( conflicting reports a so few safeguards and travel, it'sxd reasonable to presume $h rates can disappear.

again, threeçói] cavti yachts, a is not at the heart ofjf travel and there are many places to be itself and ebola and many other of the things i takelp down. we get news ofñi another ebola health care worker down and we could get bad oknews. we still have safe stocks out there close to the 52-week highs. that's not tenable people, to get ae1 bottom, there can be no place to hide in the genuine the safetyt( stocks need to geu clobbered, too, and only thenñr. remember, this isjf an extensiv checklist. this is not something easily done. third, we need speculation to be wrenched out and that seems toc happen now. we have the colt stocks talked about getting hammered likeo+lcr tesla, netflix, go proandfá thaó too, is essential for a okbotto. we saw a lot of that.

eye is in the tesla for navigation but tesla isn'tt( ev golden. ñr behind go ñis7pro for ages and they reached thukñr extreme the fable bore and goat surfing shorts. the bore one, if you haven't seen that, e1well, whatever, ame yourself. they are linking go pro to a ski accident. normauz wouldn't care about oil going lower. weren't for ebola constraining travel butñr #qq hedge funds fr chesapeake, devin,e1 anything frau+ong sand deep water related and the chaos from the losses ii it. they arexd toxic beyond belief. it's fickle and not long lasting. these mlpñis areñi in these

different etf manys and the eft' the clouds have to stabilize, they are part of a giant tech rex since this microu chip it has a techc food chain. seasonable september is ilp gre month for the people's republic that was ek brutal surprise tha took down the formally bulletproof sociallp media and semi conductor stocks. they are in free fall,çó all of them. end to the sanctions with this russia and the west over ukrain7o cf1 o while t(simultaneously, we're willing to run a deficit into the actions. not talking about unilateral both sides. this must happen because çó770 takers. many u.s. internationals depend ont( european sales. they are in free fall of the internationals that dependñie1 that. those sales have have been coming around ina5xd lpautos, h

look at without an end to the sanctions, the dollar stays strong, earnings get whacked, interest rates go lower, peace eitááuru)ápr'e. seven, most of the reports have to come through with beats andñ raises, not just inline numbers. this must happen when itt( come toxd earnings butçó beginning t cting relativelyçó well. i wish they weren't. i wish they were getting hammered ahead. any sign oflp life from thisñi bellwether grouplp could help t course of the bulls but you got to get all these. eighth, the technical damage has to run its course. we're breaking support levels, that. this isfá causing tremendous pressure in the russell lpw3200 which is hideous. same thing with the formally strong retailers, perhaps the worst given the low+ interest&ñ rates is icy no bottom in the housing stocks. again, that can belp thanks to

europe. we'll examine that tonight, ninth, china has to come out with a dramatic stimulus plan be bought. without a rally looks like a worldwidet( recession that over rises strength in the domestic economy. if you own the emerging market isis crisis has tonow some signs of being stopped baghdad. the potential fallñi of baghdad setting up a terrorist stateñi isis must bes7 contained. now relentless selling can bring back a snap back like t/cy before theq averages gave up goes. áz line is clear. we need these ten boxes to be checked if we're going to get ì% genuinely e1iñ @r(t&háhp &hc% sustainable. without thisxd checklist met, w can have a relief rally but

merely a chance to+ lightening p and nothing else. have i told you this market is treacherous? tim ine1 florida, e1tim? >> caller: yes,xd hello, jim? >> yeah, tim, how are you? >> caller: how are you çódoing? greetings fromokxd the beautifu florida keys and a beautiful hello toñi2ymu from theok woode spoon and group down here in the middle of the florida keys. >> i like e1that. the best key lime in the world. what's going on? >> caller: let me sayxnjust firt off, would a guestxd appearancen "shark tank" would be sow3 with your audio and visual type of effects. >> i'm honored that you say that. that's a great show. i'm honored that you say that. >> caller: yes, all right. >> caller: yes, all right. my thoughts arey !út worldwide challenges and thd challenges withe1 credit and credit cfraud. >'5right. >> caller: a company like black hawk because ixdxd teamed up wi data candy, wouldn't that be nice --

>> sir, we've beent( behind bla hawk netwkj but we got to recognize all these stocks are pulling back and had a big run. hawk is terrific and thanñ( you forlp singling that out and tha you for your kind comments about the keys, our show÷d and "sá%- tank." paul in michigan, paul. >> caller: boo-ya, jimmy. >> boo-yaw3ñi paul. >> caller: in the last couple weeks like theñi restp,hju$e mar7]p, the stocks just got hammered and i thought, you know, their acquisition of noble care, the swift dental implant company isc a good move. followingnke announcement of samq=- going?the communications( >> look, i thought thisxd was a terrific deal but you know what? when i look, what i've beeni] doing is going immediately and looking to see how much business companiesok have overseas becau if you're not predominantly american you'll get hurt. they have a lot of business

overseas andxdw3 lumpedñi in th ges and going down. this, too, will end but not until we check off a lot of boxes. let's golp to carry in florida, carry? >> caller: a sunny boo-ya from the sunshine state. >> i could use that. nail a 4 i]6-yard field goal fux miami. >> caller: i love your book and the question that i haveq isc rs and about the ceo, what are your thoughts? >> i like -- look, i like fighters, maybe they are a little unconventional and he's a little unconventional but that stock at 26 is an issue place to be.q att is getting killed. att. t-mobile isok a good-bye but wak att. if that breaks 30 that will send the whole groupt( down. i'm interestegjez owning att here. now you have the checklist to get a sustainable rally and çó

considerable. without that,ñi if we have anotr relief rally like we saw today, you know what, i would be nothsn more than çóthat. good chance to lightening xdup.] "mad money" tonight. will the wild ride continue or is fear itself the only thing to fear? i don't know. i don't know. could jackxd in the box be read! and shakes is up over 30% this year but couldxd fajitas and bu r -- burritosxd bring more? stay withclcramer. >> don't missok a second of "ma money" fopá'w at jim cramer on fá cramer, hashtag mad tweets. send jim an e-mail or give usñr

missed something?zv head to mad b1lçmoney.cnbc.com. (receptionist) gunderman group. gunderman group is growing. getting in a groove. growth is gratifying. goal is to grow. gotta get greater growth. i just talked to ups. they got expert advise, special discounts, new technologies. like smart pick ups. they'll only show up when you print a label and it's automatic. we save time and money. time? money? time and money. awesome. awesome! awesome! awesome! awesome! (all) awesome! i love logistics.

. tough day. what can the cboe volatility

index tell us about the mood of the market after this terrifying sell off? in the past it's been a great predictors of bottoms and down drifts which is why tonight we're doing a special monday edition of off the charts. typically don't do that but we have to talk about this with the help our of vicks expert. director at swan wealth advisors. last friday as the averages got beaten to a bloody pulp, the vehicles that uses options prices to measure the í;x sunce genius surged above 20 for the first time in ages. the vehicles rallies but when it crosses above 20 many view that as a sign the market is bottoming out because it is panicked. in other words, once the vix shoots above 20 the bulls and the weak hands have been wiped out which means the decline can come to an end because panic is

already sold. and you know what? when you look at the chart of the s&p 500 versus the chart of the vix over the last two years, sebastian points out this rule of thumb has consistently held true. every time the vix spiked above 20, there is your 20 level or spiked at all, it's quickly pulled back and the s&p 500 is off to the races, however, this is a big however, people, sebastian could be different. this time the spike might not signal the market is ready to rebound at all. why is that? simple, every other time the vix spiked in the last two years, something else happened. the s&p 500 pulled back to the 100-day moving average. this pattern played out exactly like clock work. the index will peak on the same day the s&p many crossed and a day or two would pass and the vix would stall out for a couple days and the s&p would rebound like crazy but this time the s&p

500 broke down below it's 100-day moving average and instead of peaking, the vix kept climbing. wow. s&p continued to get pounded including today. in other words, the s&p's support at the 100-day moving average failed and that's not the only thing that's different. sebastian says this spike in the vix coincides with the break down in world markets, precious metals, bond yields and panic everywhere not just the u.s. stock market and it is panic. seems quiet but panic. sebastian doesn't thing you can count on the market to have a sustainable rallies because the vix spiked above 20. the pattern looks different, that's not good. what else is different? t typically a bottom will be followed by the s&p 500 but check out these parts and the volatility index in the last six months. sebastian says while the vix bottomed in june, here we go,

the s&p didn't hit its peak until september. in fact, the volatility index is slowly rallying. i mean, this is what really is i think freaking people out. it's been slowly rallying for six months hitting higher highs and higher lows when the s&p 500 was rallying. when the s&p goes up, the vix is supposed to go down but what we see is panic was building and building even before the market peaked. isn't that where we're seeing the playing out of that today in the last half hour? look at these charts of the s&p 500 and index going back to july. okay? like i mentioned before, over the past years when the s&p pulled back to the 100-day moving average, that will be the green line, the vix would stop climbing and the fear would abate. that's not what is happening at all. white the s&p 500 bounced around this key moving average for several days with each bounce the volatility index kept climbing hitting higher highs

before breaking out. the s&p 500 has been totally breaking down and sebastian vowed the key level is no longer the 100-day moving average and it's likely to make a similar pattern around the 200-day moving average, which is roughly where it's currently trading and if that means a there is a strong chance the market will break lower yet again. that's right. the prediction is for more pain and yes, i'm trying to use a calm voice even as this is not calming. why does he think -- what makes him so pes mesimistic. the best analogs for the recent action happened in 2010 and [ñ that's where we see this pattern. it's not a good one, people. take a look at these charts of the s&p 500 and volatility index in 2010 and 2011. in april of 2010, as the s&p 500 was peaking, the vix slowly made its way higher like we saw over the past few months and the next

month the vix spiked above 40 and in response the25-c s&p spe two months getting totally hammered. the market didn't return to the peak levels it saw in april of 2010 for more than half a year. or how about the summer of 2011? again, through june and july, all right, we see the vix claiming at the same time s&p is peaking, same pattern we've been hit with lately. in 2011 when the vix spiked, the s&p 500 fell off a cliff. so if anything sebastian thinks the current rally could be a sign of 2010 and 2011-like action and the s&p could have a good deal more downside. he expects the vix will break out 25. we'll go back there. we'll have another hideous down day or two in front of us before sebastian thinks it's wise to start buying. how much panic? sebastian wants to wait for the next down drift before he recommends going long and that could knockmvdç down to 1850, 2

below where it is now. that sounds like a small number. that will be a lot of pain. here is the bottom line. the charts of the index as interpreted by vix, suggests this market could have another substantial leg down. sebastian isn't saying it's the end of the world but does think you should keep your powder dry and wait for lower prices and if the history of the vix is any guide, sebastian is right. much more ahead on mad money including an out of the box idea for one major fast food return that could land you returns and would you cancel your next vacation because of the ebola break? i'll look at the stocks at risk and new young is a living legend that sold tens of millions of rortds. can he have the same success, why not have a feel good story on a bad day? i'll ask him. stick with cramer. so ally bank really has no hidden fees on savings accounts?

that's right. it's just that i'm worried about you know "hidden things..." ok, why's that?

no hidden fees, from the bank where no branches equals great rates. at a time when the rest of the world feels like it's falling apart and our stock market keeps getting clubbed on a daily basis, what is worth owning or worth thinking about? you know i'm not exactly bullish about the overall market right now. i've tried to make that clear to you for weeks now. we're in a treacherous moment. caution, we'll be rewarded. that doesn't mean throw up your hands and stop searching for opportunities. we need to narrow the

parameters, this are few occasions it makes sense to sell everything, i said that. this is not one of them. as this market gets pounded it's creating sells and while much of the merchandise is getting marked down it's compromised and some is high quality and that's what i intend to highlight. the plummeting price of crude may be bad news for the oil patch but perfect for restaurants. every dollar people save paying for gasoline at the pump is a dollar to spend going out to lunch or dinner and don't get me started on how the climbing prices on crops like wheat and corn are not yet to the restaurant names allowing them to boost margins. but like i mentioned before, treacherous market, yes, now five times i've used that word. so we don't want to bet on just any restaurant stock. we want to find a company with an ace up the sleeve, a business to instantly unlock value for shareholders with a little more than a stroke of a pen. we're looking for a restaurant that can break itself up and

make shareholder as fortune like the breakup stories we're highlights from here on "mad money" even in a bad market which brings me tjack not boin . one of the nation's largest burger trains, 2250 locations in 21 states and one of the better mexican inspired fast cause well chains, more than 600 locations spread across 47 states. now regular viewers who listen to me about jack in the box made a killing on this. more than two years ago in june of 2012 i said jack was out of favor stock and ready to roar. at the time the stock was at $26 and now it's at $66. that's 150% gain after this terrible market. then two month ace go i circled back to the jack in the box telling you it's worth buying because mexican food is mainstream united states and the

second best mexican chain in the country after chipolte. not bad which is why you should take me seriously when jack in the box may have a lot more going and the stock could have enormous upside. if management breaks up the business, something we heard rumors about although the company hasn't done anything to enduring it. if jack in the box spins it off as a separate lly traded compan. in 2006 another burger chain, mcdonalds spun off the fast growing mexican division, chipotle. you never say stuff like that. jack in the box is a company where the hole is worth more than some of the parts. before i get into the breakup evaluation, why i'm a fan of jack because you can't just count on a breakup. the company is anding through a refranchising effort with the jack in the box brand selling from 25% franchise before the

recession to 80%. this is what we're talking about with general nutrition. the company is much more stable cash flow, greater visibility and put that cash to work in a very friendly shareholder way with one of the most aggressive buybacks i follow. just from january through august the company bought back $277 million worth of stock. that's 10% of the company's current market capization and have $160 million left in the repurchase authorization. that's another 6% they can retire. same time jack in the box worked wonders when it cops to turning around qudoba closing under

which is why a break up makes so much sense. assume they trade in line with peers, which i think is conservative, then some of the parts basis, jack would be worth $85 a share and again, i'm using conservative forecast but understand the market is bad. jack in the box, you can't unlock a tremendous men amount of value if you simply break up the business. i don't care if you sell qudoba. either way&éwwr you're be doing shareholders a favor and without a breakup, jack is worth buying any week, particularly this week involving the ebola scare. market throwing sales. think about this. let's go to chris in new york,

please, chris. >> caller: jim, i'm wondering what the sell off recently whether it's worth to hanging on to some stocks including wendy's. >> look, we're in a tough run here. i don't want people to sell all their stocks. if you want to raise some cash, i think wendy's is fine. it is at a 5 the -- 52-week low. we do get bounces. we had a bounce, one point the market was up. wait for the bounces. don't just cascade and sell them to the cascade. that doesn't work. let's go to winston in minnesota, winston? >> caller: mr. cramer, how are you, sure, big boo-ya to you and what a pleasure to have a chance to ask questions. >> absolutely a. tough day i like to open the floor to a lot of questions. >> caller: well, i wanted to ask about starbucks. it's running low and i was wondering if you feel that's related to overall market conditions. >> i'll tell you i think it's overall market conditions. go tonf'ñ actionalertsplus.com. we've been hurt like everybody

else. i did not say buy more today. there is more pain ahead. should there be? this stock is cheap for a historical great rate that means nothing in this sell off. patience makes you whole. it doesn't necessarily make you money. but it can make you whole. james in kentucky, james? >> caller: yes, jim. >> yeah. 5 caller: i retired in march,j jm smucker stock, is it on a buy, sell or hold. >> no, that's a really good situation. i think that what happens next in this market is they go away after stocks like smucker and proctor. they held up. you don't get a bottom until everything is taken down. that said, i would be a buyer of jm smucker if it came down to under 90, 85 because that's a great franchise. you're in good shape, sir, i wouldn't go trading. time to think outside the box, people, there is value if you break up your business and you home gamers without a spin off,

i think the stock will be appetizing into this weakness as so many people are scared of the unknown. there is much more "mad money" ahead. not just the airlines taking hits. there is another industry that stands to move people more and you got questions, i got answers and don't forget music legend kneel young is here in the building making a bed of future music. don't miss. it stay with cramer. how much money do you have in your pocket right now? i have $40, $21. could something that small make an impact on something as big as your retirement? i don't think so. well if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge might not seem so big after all. ♪

the all new, head turning cadillac ats coupe. it's irresistible. ♪ ghave a nice flight!r bag right here. traveling can feel like one big mystery. you're never quite sure what is coming your way. but when you've got an entire company who knows that the most on-time flights are nothing

a few weeks ago we had ebola at the back of the mind that declined at the front. now ebola is front and center negative for the stock market and a blunted positive for those who use a lot of oil and decline dragging down the market, only about 12% of the s&p 500 benefits from higher oil prices. to understand, look no faurt ev -- further than the cruise line. i profiled the group before ebola, before the scare but now you worry the fear of one coming down with ebola on the ship could put a dent on the booking.

the cruise ships might be the most vulnerable, maybe more so than airplanes that have a huge problem. you would say the right word is disruptive to the business. the group seems to lack support given that carnival cruise just report add terrific quarter has fallen from $41 to $33.89 and royal ka cari caribbean decline move that's been repealed again because of ebola fears. so what can you do? to me that group is still vulnerable. the overall market is jittery and every single new ebola case like the health worker in dallas causes the group to move further. disruptive. brings me to a larger plan about this market and stop judgment and my rule of someone trying to navigate the waters. some get a kick out of my

previous recommendations. they can say these were terrible picks but investing is recognizing when things changed and changing with them. if you are stuck with the cruise lines because i said i liked them even though i didn't see the ebola scare coming, you'll take pain for sometime because of safety fears. didn't see it coming. it's easy to extend this. one case in a casino, how can you risk it. las vegas had been doing badly. ebola disruptive. airlines, united reported a beautiful number in the rally and reversed. ebola. airlines are at the top of the show aren't done going down. i don't know if you want to think where price line goes or expedia with increasing travel volume to headache tmake the nu. this is one of those issues that cannot be put to rest until we know more about the illness and it can be contained or a vaccine developed. what is so difficult now, this are so few stocks that allow you to bend from the price of

gasoline. will restaurants be hurt? a ceo of zoeys based in dallas couldn't deny there could be a blip in sales, at least it's tht enpa center of it. the second case of ebola doesn't help. you know the group can't go anywhere, as well and if oil does go up, there is more pain coming to the cruise ships, airlines and travel leisurery. there are so many stocks because of this scare. tretry is operative term. don't try to be a hero. even after last week's clobbering, please be careful because the ebola scare is much worse than reality but sometimes that's all you need to know about. "mad money" is back after the break. we needed 30 new hires for our call center.

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for that moment, where right place meets right time. and when i find it- i go for it. (announcer) at scottrade, we share your passion for trading. that's why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so you're always connected, wherever you are. because at scottrade, our passion is to power yours. it is time, it is time for the lightning round. buy, buy, buy, sell, sell, sell. playing the sound and then the lightning round is over. are you ready? time for the lightning round.

alexander in california, alexander? >> caller: hi, jim, how is it going today? >> very good, how about you? >> caller: pretty good. my question today has to do with the wallet dt disney company. >> this stock is in the grips of fear as many theme parks and travel leisure. if it goes under 80 we'll look back and say what i was thinking. let's wait until it gets there or we get fable news on ebola. that's what the market issi doi. hi patricia. >> caller: thank you for taking my call. what do you think of vsdl. >> too speculative. when first solar is getting hit hard i'm not going to go out on the food chain division. let's go to maxine in

california. >> caller: i've held on to ge stock for about 30 years and i was wondering, i know it's down a little bit right now, but if this would be a good time to sell it. >> okay, this is a great question. a really long piece and maybe i have to do it on here to, on real money where i talk about ge. here is the problem, ge has got some businesses that are oil related. people think that may not be good. in the end, this stock yields 3.6. what are you going to do? sell it or buy it back? you have to stay the course ge. i sold it higher. the charitable trust sold higher. 23 where it went out today. that's more compelling than i've seen it in sometime. i'm not going to cut and run. john? >> caller: hey, how are you doing, jim? >>qihñ doing well, john, how ar you? >> caller: another day on the market. at&t. >> yeah, the disparity between at&t right now and verizon is

rather amazing. i was talking to my friend whose been a great inspiration to me during this period and helped me stay fit and recognize the treachery in the market and at 6%, this stock is really come down a great deal. it's at 5.6% and if the stock gets to 30, 31 pull the trigger. it's just not that bad a company. how about gina in connecticut. >> caller: hey, jim. tell me about high max. >> high max is speculative stock. we had a good call to do a trade and then left it. said it was no longer that good and we have not revisited the stock. craig in minnesota, craig? >> caller: boo-ya, how are you doing? doing? >> well,jvv >> caller: good. i've been looking at airline stocks recently and they have fallen like a minnesota thermometer in january. >> what can you -- bridge water. go ahead. >> caller: what can you tell me about delta airlines? i have a few questions on them. number one, what do you think about the cash flow and number

two does recent events have an opportunity for them to buy back shares? >> you're spot on. you're being very rational in the face of irrationality. if we use the analysis like wells fargo provided, that 12% will be wiped out. it will take that down and that is when you should pull the trigger. we're going to use extreme caution with the airline because if we get another ebola incident, that delta is going to slice right through that up 12%. so you don't want to pull the trigger. we're taking one more, jay in new jersey, jay. >> caller: boo-ya, this is jay from new jersey, how are you doing? >> good. >> caller: i'm calling about morgan stanley. >> morgan stanley is up 5%. a good company doing well but i think it can go lower if it doesn't report a perfect number and therefore, that's not that great for me and that, ladies

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pretty sure everyone in the audience knows neal young is one of the greatest musicians in the world but he doesn't just make music but change the way we listen to music with his company. let me explain, most of us these

days listen to digital music stored on smart phones or computers or mp 3 but in terms of sound quality, this is garbage designed to take minimum storage space. even on a cd let alone vinyl. for those of you too young to ever have had a turntable with a macintosh amp, you're missing outment that's where neal young's company comes in. it's a planned digital echo system for playing high-definition audio including an online store coming out in the first quarter of next year that will met you hear songs the way it's supposed to be. i'm introduced to introduce neal young and the author. you got to read it, about electric cars and so far ahead of his time and comes out tomorrow. mr. young, welcome to "mad

money". >> thanks for having me. >> certainly. >> when i listen, it reminds me of when i had my vinyl records but i can carry this around and everyone who listened for a second will want one. >> i think so, too. >> it's revolutionary, when you are music lover, you can't help but smile when you put this on your phone or speak rs and you can do anything you want with it, put it anywhere you want and plug it into anything and sounds great. so it brings the feeling of the music right to you. gives you goose bumps. it makes you feel it because that's what is missing. you can recognize's today musics and know who the artist is and recognize the song but you can't feel it in your heart and body. it's not an experience. as soon as you hear it, it blows your mind that you haven't had it. >> it seems like the artist, no

matter what age,(lréj know thate been audio ripped off by the corporations versus what you're trying to do. >> well, the artists know, all the artists that we played this for and there were literally hundreds of them all said oh my god, i got to have this. this is amazing and this is what i really want music to sound like. this is how i want my music presented. we did videos with them and that helped us to get started and we used it on kick starter. >> fastest ever. >> it was very good. we had a great start and it's a grass roots thing. it's hard for us to explain to the venture capitalists why we can come into this space and do so well because if you're not musician or music lover, you don't get it. as soon as you put the phones on or listen to speakers with pono, you know you're living in a new world. >> i would like to think ever

video, the one most compelling was moe austin who knows music better than anyone who sold the company, right? >> yeah. >> but understood that this is the way music should be listened to and he listened in the car. is there is a way to be able to make it so that i can have this in my car, too, like the big corporation? >> yes, there is a way to do it and we're working with the -- i think it is harmon with the lincoln continental for 19 -- for 19 -- that's funny. see how old i am? we're working for 2016 release. >> really? with this? >> yes, with pono built in and i talked to ben with tesla and as soon as we're ready with our store, they are said they are ready to put it in. of course, their car is a computer. >> can we have it in link bolt. >> we have it in link bolt all right. >> you have always tried to develop what steve jobs tried to

develop, the car that doesn't use gasoline. >> right. >> i would think that these days that steve jobs had this, he would have recognized he defeated music in someway. >> he would love this. you know, in his house he had vinyl. he listened to vinyl in his house in the living room and he was a real music lover and, you know, i talked to him about it and he understood why we were doing this, and i talked to him about what they were doing and everything and i said well, neal, neil it's a consumer product. that's one thing the iphone does. he has a point there. and he made -- they made a lot of inroads into this. we're perfecting it. this is a device that is dedicated to making music sound great and the iphone does all kinds of things, as we all know and ultimately the iphone will control this so that you don't take it out of your pocket, you know. >> well, it's been in someways too much of a success because i want to give it to my friends for the holidays.

what do -- i know i go to pono music.com. what do i get? i don't know if you can make for the demand? >> they have gone so fast that we're out of the ones that we're able to make because we're just ramping up and we're making more and if you want to give one to your friend or somebody that you know wants pono, we have certificates, which i sign myself and they get a pono player. so it's like you put that under the tree, and then in january or suspe sometime very close to january they can get their players. >> what happens in the end? a lot of what you do is to stay independent. it seems to be a hallmark. >> we're about music. we're about the music and artist and art experience of music. we have plans to put on our players and with every song there is the album cover created by the artist. a space for the artist to speak. so you can go into the player

and read what the artist has to say with our sales force community -- >> i know. >> with sales force community cloud, which we use in the player as well as the -- it's in our app as well as artist community and, which is also in the app. that's amazing. we are starting with the community cloud in our desktop application on the computer, which is where the music comes from through that, much like the ipod model was. the reason why you don't do the streaming is because it's too much -- there is too much data and it would be corrupted and overload everything and wouldn't be a good experience to hear it. >> full disclosure, i was one of the people that went on kick starter. private company. i just wanted to be part of it like everybody else who remembers what music used to sound like because it really does choke you up. it's the pono smile. thank you to neil young, rock

'n' roll icon and the arthur of a men homoir of life and cars. it's a different auto buy ogden f -- auto by ogden fee. stick with cramer.

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