but if i were russia, i would immediately back my currency with gold. first one to do that wins. that's the way you solve it. so gdx is my trade. >> i'm melissa lee. thanks for watching. see you back here tomorrow at 5:00 for make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. >> hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends, i'm just trying to help you make some money. my job is not just to entertain, but to explain so call me at 1-800-743-cnbc or of course, tweet me @jimcramer. we are now in event-driven mode. when we get a negative headline, we get hammered, but we have an

absence of negative news, guess what? we bow as we did today with the dow finishing down just 25 points after having fallen 203 points at the opening, the s&p actually advancing .0% and the nasdaq gaining .5%. we were able to bounce because we are very oversole and a lot of the sellers and the flailing hedge funds gone wild seem to be out of the picture for now or margined out of the picture is like likely. when you borrow money from the broker, you are pushed out of the picture pretty darn quickly by a margin clerk demanding you sell other stocks or else and in the absence of forced selling played a big role in today's comeback. in pack, now we've anyone from panic where we saw the bottom yesterday, some 450 points ago into complacency as in all is well. many people think we're out of the woods, but that's exactly what no bottom until checklists

are made of. checklists that give you a real foundation for a move up and not a tradable one where we have to sell on the strength. remember, i want to be opportunistic here and i want to make as much money for you as possible if i can and i'm willing to miss upside because it it remains a treacherous mark. sure enough weeks, got got checklist stuff today which is why we were able to move up a tad. what went right some first, oil did find its footing and oil's been in freefall, and this is a counterintuitive market and everyone wants oil low, but not too low. i get that. we want gasoline cheap enough to create the equivalent of a tax cut and we don't want it so cheap that has been such a creator for the country. we don't get the weekly job numbers if oil goes too low. i think we have the same consensus that oil must go down huge as oil hit $80 as we did when we thought oil on was going

higher when it traded at a hundred. i think it can balance substantially because there haven't been cutbacks in production, just threats of it upon. i also didn't like the baker hughes, big oil service company. the red light that the drilling boom could be showing, but schlumberger lookeded good after the close. maybe it holds arnsz 80. i like the fact that we saw a speculative stock get pancaked. if you owned it, you didn't like and we know there's been speculation of late and it's just been a terrific momentum story based on sign-ups. the company failed to live up to its billing on that score and it knot crushed. that's a nice box checked and much more on that disaster later on the show. dow stock, united health group putting up a terrific number. hca, huge hospital company delivering a huge increase in earnings in a real earnings surprise. hc attack the extraordinary move of preannouncing its earnings

because they were so much better than anyone thought, especially thinking that expenses would ra have to ramp up to meet the mes of future ebola patients. the ceo didn't jump up and down saying things are fabulous be totally bizarre, if you ask me. the banks remain a very bad place to be and they're along with tech, another group that acts terribly represent the two biggest components of the sich 500. i'm saying, maybe box half checked. we saw another box half checked when the oil stocks were at the opening. something you want to see because you need a real low and it means people are shaking out, and it was hideous and it was a sea of red and the residue of the s&p 500 stock futures that occurred at 5:30 a.m. on the news extensively with greek bonds and i saw it happen and there was no real news that caused it. at the exact moment at 4:30 when

interest rates and the futures pe fell down and rates spent the rest of the day going higher and that plus the rally in oil sent the market higher. i'm never crazy about stocks going higher and they'll move up if rates and the market fears a big decline in economic growth and in real life we want the interest rates low, we want gasoline to stay down here, but the stock market's not the real world. if it were the real world it would be a heck of a lot easier than it is. remember my view, we have a tradable bottom where we don't have to worry about getting our heads cut off if we do serious buying. a market could decline the equivalent of a percent and a half between 5:30 and 5:40 a.m. and no news, it is a treacherous market. you know why that is? because there's still so many unchecked boxes. here we go, ebola under control. no new outbreaks today which made people forget the scourge temporarily. that doesn't make it it under control. we get another negative incident

and we'll find ourselves down a percent or two, or down to the low. ebola is incredibly important to the psyche of the market even though we overrate it it. as an issue in the whole big country and the govern wament doesn't have it under con roll. tech has not stabilized. other than skyworks solutions, the cell phone part solutions, new product intro and the stock gets hammered and not enough venth. intel went down again and i like the metrix inside it it. sandisk, give you a big upside surprise, and the charts, no! the the charts, they have not stabilized and we had a floral in the dow. and better than nothing, bii know most technicians are not crazy about this market. i care about that. i'm not happy with what's happening overseas and. you look at the papers about vladimir putin hoo he's talking

about cutting off western europe's natural gas line, instant recession. do you think he's done with his havoc? you're right. the press underestimates how negative this plays out for our stock market. stay focused on russia. an isis outfit was stopped by a bombing run. that doesn't count as containment. i expect isis and russia to continue to play us and we'll get fears going into the weekend in tomorrow's trading. china, we tend to forget, china is lurking as a negative and didn't see anything good about it it. must do so. when you get some bockes checked and you have no new negative ebola news, the fundamentals can surface and give you good trading news, but i would like to see a preponderance of box checked and even before i sound an all clear. with the idea that we can absence in the rally of bad news. let me give you the bottom line. i need good news on man fronts before i bless this market as an investment. charlie in tennessee. charlie?

>> boo-yah, jim. this is charlie. >> how are you, charlie? >> i'm fine. i've got a question for you. my question is with oil and jet fuel prices at two-year lows and both are reporting good earnings today, is your opinion on delta air lines going forward some. >> think the fact that it rallied showed you how oversold it was. i do believe that if you get another incident, another ebola incident and delta will revisit the low that it just hit. the stock's up 21% for the year. i don't think it can maintain that high if we get another ebola incident. barry in new york, barry. >> barry from new york. my son is here future investor is with me. >> boo-yah, mr. cramer. i'm a big fan of the show and my dad has a question for you. >> the stock has had a decline over the last year which has picked up retailmenot.com.

oui not going go with retailmenot. online retail not that great right now even for amazon. coupon, groupon, i'm against the group. kevin in california, kevin! >> hi, jim. thank you for taking my call. >> quite welcome. i was wondering what you think about replacing winners? >> i like david, and i like what he did over time although the last 18 months have been a little bit of a struggle. b and g foods i think he can make a come back, and i think he can press it hard because i have to meet this gentleman. when we bought the stock in the teens, remember those days? >> we're in event-driven mode, people. you know what? i node good news on more fronts to say that this market is one you should pour your cash into and not sell into strength. on mad tonight, the battle over what you watch and where you watch it is heating up. hbo announcing that you'll soon

be able to subscribe without a tv. is it it closing or the first act of a thriller with a twist. don't miss my take. it's time to get done up. i'll take you behind the doors of ulta. i was in queens, new york, looking at it with its ceo to see if its future is as pretty as its products. >> could ebola fears continue to send the market into a tailspin? stick with cramer. don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. missing in? head to madmoney.corks nbc.com.

> amazing. this whole time we suspected the wrong federal agency for the decline in the stock market. for the last three years i've had to listen to endless yapping about how the federal reserve would create a huge amount of

inflation with its various bond buying programs designed to reignite the economy and when inemployment began on grow and we started creating jobs. we heard how the fed needed to tighten and tighten fast. w why? because it was behind the curve. the people universally expected rates to soar, thereby killing the bull markets in both bonds and stocks while repealing all of the amazing gains we'd been putting up. it was blame the federal reserve all day and all night and when the fed finished with the fe fairious methods of stimulating the economy, they wanted to see a 4% federal funds rate, and willing to rip inflation now to use a throwback turn to another time when then president gerald ford encouraged us to wear pins and be more disciplined in our spending habits. according to the bias commentators it's a routinely short bonds and the fed was

sowing the citied seeds of dest. they were filled with worthless dollars as we tried to buy seven-grain whole wheat in the morning before it it doubled in price by the afternoon. amazing even though it's obvious that deflation had had it it and not inflation without anything having to do with the fed, these ideological gas bags won't stop urging rate hikes at the slightest sign of job growth. they are shameful in the self-serving predictions that also happened to be dead wrong. my, how i wish they could take some of the abuse i get when making the correct call like warning people that the market has been treacherous at the time of the alibaba ipo. it it turns out that all along these bears had fingered the wrong suspect when it it comes to slaying the bull. it wasn't the federal reserve in the kitchen with the led pipe. nope. it was the cdc. the centers for disease control that turned many parts of the stock market into a wasteland by making so many assurances about

ebola that turned out to be false. health care professionals have led to a staggering level of lack of preparedness and that's the chief reason yet death of a single person in a count reef 317 million people could send our stock market and our economy into a tailspin. not being too charitable and other branches of government when it comes to bullfighting and the state department comes drops the ball and the defense department's deeply engaged with global warming when many feel bag cad and ckabul could fall. can you imagine if they took kabul and isis took baghdad. that would represent a horrible loss of american li lives with little to show for it. to recognize the peaceful relationships with the mad dictator vladimir putin. i'm not saying that any of these things were easy to predict, but the inability of the government

to get ahead of every single geopolitical story hadda i lot to do with the jam we're currently stock with. the one outfit that could be exonerated, the federal reserve which quite correctly recognized that the inflation scare was ephemeral and alas, just noisy as janet yellin, as she infamously, now famously put it. if only the fed had the fed's foresight and we'd be hitting new highs rather than fearing new lows. milton in kentucky. milton some. >> boo-yah, mr. cramer? >> boo-yah, milton. >> sir, i'm a 67-year-old retired construction worker, and i put a chunk of my life savings into a new up and coming stock that's highly recommendeds and powers energy and should i abandon ship some. >> no. you don't want to do that. there are a lot of false stories out there about what would happen. if oil fell to 70 and 60 and some outfits fell into trouble. i think oil will go to 70 and

80. it may go back to 85. it's going come down a lot and i think that web a mistake, but i do want to have him on the show. mr. sheffield, had your dad on, tell us more about parsley energy. jay in washington. jay? >> well, boo-yah. i want to ask about concerning n, request, canadian natural resources. i've owned it for a pretty long time. it was up and i took some gains and i'm losing my energy here. i want to know where this energy stock is going. >> yeah. this is another one that's been caught up in the decline.decline is very vicious and it is hurting a lot of the stocks in the group. i'm not denying that, but the yield is at 2.5% and selling it here rather than waiting for a bounce would be a mistake. i'm not as crazy about canadian natural resources, a lot of natural gas, crude and related product, but i like some of the partnerships that i like or some

of the majors that i think will do quite well because they have great balance sheets. all right, it was just noise. after all of this time, we realize the inflation scare was just noise pep the fed had the right foresight. more "mad money" ahead. netflix is falling like a house of cars, but can the streaming giant soar again or could hbo put it under pressure? they put the squeeze on the big banks. one of the regional players better able to adapt in this environment and i'll find out on the show. plus, from blowouts to blush, ulta has you covered, but can this stock keep glowing on wall street? i'll take you into the one-stop beauty shop with the ceo. you'll like her. stay with cramer. go ahead and put your bag right here.

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and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. even in the midst of a treacherous market that's been destroying gains left and right. ♪ ♪ >> i know many of you are scratching your heads at the immense value destruction in netflix. >> the house of pain. >> which fell an astounding 19% in one day today. 19% after reporting a sub-par quarter last night. how the heck does this kind of thing happen somewhat went wrong for ceo reed hastings and his team? tonight i want to explain this move by walking you through the

a mnatomy of a disaster and mak no mistake about it, when a stock loses a fifth of it's value it's a disaster. first of all, going to the quarter the expectations were just very high, but they were set by the company. the analysts covering netflix were way too optimistic with 20 hold, six sells and the fact that the stock was quite expensive trading at nearly 70 times next year's earnings estimates and most stocks average 17 times. after a huge run-up ahead of the quarter. we even got a significant and very loud, i might add, upgrade from a firm called btig on monday at $438 where the analysts in question noted that he had been too pessimistic. he had previous low downgraded it last september at 308 and that was a mistake, and now he was bullish based on the company's growth for subscribers. talk about subtracting value. he liked it at 438. the second ingredient in the net

mriks meltdown. the stock rallied from the 60 to the pit-400s without being looking back at all. as of yesterday, you really be couldn't justify the sky high multiple base on the company's 33% growth rate. no, the people owning netflix owned it because they believed in the scale of the opportunity here. they liked the product and they thought subscribers would grow like crazy because they, too, would like the product because the problem of sky-high cult-following stocks. when they stumbled on the one key metric that everyone cares about, hen there's nothing to stop them from going into freefall and that's exactly what happened with netflix. let's look at the quarter itself. remember going into this thing pretty much every single analyst was betting on subscriber growth. turns out they were wrong. netflix added 3 million new subscribers and roughly 600,000 less than the company itself had forecasted. they added slightly less than a million subscribers and it would

be 1.33 million. excuse me. last year they added 1.29 million. it's also decelerating year over year and ugly stuff for a growth stock. even worse, they expect to have 1.85 million subscribers next quarter, a huge deceleration from last year's 2.33 million. netflix had the same problem everseas. 2.4 million overseas subscribers much lower than the 2.36 million. the guidance, underwhelming in in short when it it comes to new subscri subscribers, the company missed by a mile. for many investors it must have felt like management just flushed the case down the toilet. >> now some of had is forecasting, reed hastings and his team were too optimistic about the ability to keep adding new subscribers at an incredibly rapid clip. what went wrong? netflix raised prices in the

beginning of the quarter by $1 to $2 a manning. even though when costco and amazon, the customers didn't flinch, some of them signed up even faster. netflix put in a price increase in july of 2011 which along with a couple of missteps sent the stock crashing from 300 to the 50s. netflix blamed its own underwell whelming contact, but for investors the numbers have to make you wonder. you have to wonder if perhaps the online competition like amazon prime, hulu, hbo trying to take a bite into the the business and the size of the total adjustable market from 60 to 90 million house holes in the u.s. might be too optimist and being you have to wonder if the rollout would keep delivering new subscribers as the old days. while the disappointing subscriber numbers were on the quarter, there were plenty of other problems. the company's earnings guidance wasec treatmently down beat and

44 cents a share when the analyst was looking at 44 cents. netflix did launch in germany and france. still, monumental guide down. what else? the precash flow was negative for the first time since the first quarter of 20 lane. yes, it's spanning costs for western europe and netflix expanding on content is exploding with a host of original series are expensive, including adam sandler and if all of this wasn't enough, it could not have been worse. i'm not talking about the fact that the company report a truly hideous sell-off and i mean they came off on the same day that hbo roll out its own online-only streaming service next year. so you can get hbo without having to pay for basic cable. today we found out that cbs is doing the same thick with the $5.99 a month service that will let you stream almost will all of their content over the web.

what do you do with this netflix right now? the stock ended up losing 250 points over the next three months, you did a lot better if you would cut your losses. >> sell, sell, sell! >> before it started falling like today. the last time a stock went dunn a huge amount was when chipotle got axe immediate 2012 falling to 300 in a single session. chipotle fell to 235. >> boo some. before it reversed direction. i think that could be the blueprint for netflix here. that means even if this disappointment was a one-time blip, it it will have to spend time in purgatory before it goes higher and that's what happens to stocks when they lose the cult status. here's the bottom line. it's possible this is a short-term issue and netflix will be able to rebound, but for now this is a stock that's fallen from grace and after today's nearly $89 decline it's

still not to late to sell netflix. the stock needs to go lower before we can think about buying into weakness. for now, there are too many weak-handed shareholders who need to be wiped out before netflix, disappoints the acolytes. billy in kentucky. billy. >> hi, jim. big boo-yah from kentucky, home of the eight-time national champion kentucky wild cats. what a great team. what a great school. what's up? >> i wanted to know about yahoo. on an episode you recommended buying before the alibaba ipo and i bought it at $42.78 and curious to see what you think. >> i've been recommending buying yahoo since melissa meyer came in. i think these misjudged and it's what happened under her stewardship, and i think it's fine. i would buy more yahoo. notice, by the way, alibaba, one of the strongest stocks in the

market. that company's business remains on target. blockbuster or bomb. netflix has fallen from grace, and i think the stock can go even lower. thissen and only then we can consider buying the weakness. much more mild ahead and i'll bruise with alta to see if they can make the regulations were pretty. >> is there finally a catalyst to ride them higher? i'll take your fast-fire calls on the lightning round. stick with cramer! ♪

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in this volatilen viern am where the rest of the world is in so much trouble and it's pushing down interest rates here in the united states as foreigners send their money here in order to keep it safe, what do they do with the regional banks. they're oriented and i am worried about russia, but on the other hand, this vicious decline in rates is often considered bad for business. take bbnt, bountiful dividend gives you 7% yield.

bbnt reported delivering a one-cent earnings miss off a 72-cent basis that fell short of the 7% figure wall street was expecting. the stock got dinged slightly and fell 1.3%, but long term, bushing b & t has been a solid performer. let's take a closer look with kelly king, the karm an and ceo of bb & t to find out more about the quarter and where it is headed. mr. king, welcome to "mad money". >> thank you, jim, always glad to be with you. >> i have to ask you point-blank. wells fargo was weeting today they have been deluged with people who missed the first mortgage refinancing who were coming to the banks saying i knot a second chance. are you seeing that happen at your bank, sir? >> absolutely, and the last wo or three days our production volume has almost doubled. it's been incredible. after a period of time i think we kind of all thought this the

refinancing was done, but this has been such a precipitous drop in the ten-year rate in the last two or three days, as you well know, people are coming out of the woodwork to refinance. >> fanny pea was telling me, i deal with pannie may said don't forget, some housing val us have gone up in the interim and there's still a lot of 5% to 6% rates out there. so you're sewing that kind of activity. >> oh, absolutely. it's very interesting. a lot of people that could have refinanced all along just have not, a certain degree of complacency. for people focusing on the financing every day, if it drops a quarter of a point they kind of think if they is refinance, but for a lot of people these types of decisions are much m e mores passive. we've passed the point of inflation and the rates

s.t.a.r.t.ed started going back up and we heard groups say you missed it, you missed it, you missed it. if it comes back down, i'm not going to miss it again and that's why you're seeing the resurgence of it now. >> i am so glad you mentioned it. sometimes when you get lower interest rates it is sometimes good news for the consumer. in the end you need your areas to do better and this is good news. oh, absolutely. this is good news for the remaining folks that we talk about and being able to refinance and it's good for small, medium sized microbusinesses. you know, they can get that additional lever to be able to make investments that they've been wanting to make. it is hard on our savers and we do get concerned about that, but every dog has his day, as they say and, you know, probably over the next couple of years, that will be the time they'll have their reward and for right now

the folks borrowing this is a good time. >> i've always felt that you've made brilliant moves moving into texas. are you seeing the loan growth we're getting providing that oil stays fairly high at least that there's a lot of activity. >> jim, texas is a wonderful state and i've been down there a lot lately and i love texas and it's 26.5 million people and it's kngot a can-do business attitude and a lot of manufacturing and a lot of retail and we have been growing rapidly as you indicated through the branching and a couple of acquisitions and city bank and bank divestitures and there was receptivity that has been fantastic and the positive growth has been really, really growth. >> this isn't a good story, but i have to ask you, at the end of your comments today on the call you said something, you said, look, we have a positive

operating leverage and key strategic conditions and you felt good, but it's a tough environment from a long-term perspecti perspective. when will it it get easier? >> well, i think, jim, it will get easier when we get a renewed level of confidence in the business commune ied. i know a lot of people are trying to look for esoteric complex and economic reasons for why the economy is not doing well. i do my own economic research kind of like you do, and i do it by out in the marketplace and sitting around having luncheons with business leaders all of the time so over the course of the year i'll talk to 400 or 500 business leaders and can them the question. are you investing? . if not, why? 95% of the time over the last two years going right up until very recent they would say i'm only investing defensively, that is to say the truck broke down and i have to do something. i'm not investing for aggressiveness and i'm not investing to create new cash

flows because i'm concerned about taxation, regulation and the uncertainties coming out of washington. here's to good fuse. when we see more confidence coming out of washington, i believe out of more positive oriented leadership and not politics here and this is across the board, but when they start taking this country back to the great place, well r is so pent up-demand out there you will see a resurgence of growth in this country like you haven't seen in a long time. you are 100% right, sir. and you've been a great steward of your bank and i a preeppreci you coming on "mad money". >> that's president and ceo of bb & t making real money for shareholders. "mad money" is back after the break.

it is time -- it is time for the lightning round on cramer's mad money." rapid-fire calls -- [ indiscernible ] play until you hear this sound and then the lightning round. are you ready, skee-daddy.

it's time for the lightning round. let's go to joe some. >> boo-yah. thanks for doing what you do because as confusing as the markets are now it's good on have you there to help us out. >> thank you. thank you very much. ? yesterday, there was bloodletting all over and i'm trying to buy regeneron and i can't get one. >> no, because there is a very large company that owns a big stake in it and they're in there buying it with you. that's why i like regeneron. it it has a backer and has new drugs. it's the future and that's why i like biotech. a lot of of people thinking they have something for ebola. that's where you get the good news from. richard in mef neve, richard. >> hello, mr. cramer. boo-yah. i'm in a little bit of a pickle and i'm wondering if you can help me out. >> sure. >> i put my life savings in the stock market and i'm not doing very well. i'm down to two stocks. i bought a thousand shares of

facebook at $79 and acad at $25. i've knot a thousand shares of that. >> al cadia is very speculative. facebook you have to take a loom view upon. my charitable trust is investing three to five years. we think facebook will go higher. could it go to 68 before it it goes to 88? yeah, sure. people will sell it down there. i urge you to stay the course. facebook. troy in washington, troy! >> hi, jim. how are you some. >> good. my question is on pioneer natural resources. >> pioneer is probably the biggest beneficiary of what's going on in the perm onat the same time and they have low cost in perm onwhich is a gigantic basin in texas. at the same time a lot of people have given up on oil and if oil holds at the $80 range then pioneer is a buy. if it goes below you have people thinking it should even go lower than already has.

it was at 234 and down to 177. let's go to philip in visualing verge. >> hey, cramer, how are you doing? >> i'm doing well. how about you, philip? >> i'm doing pretty good. thank you. i was wondering. you had dominion. dominion has been going down because people feel with oil anything down so low the big plant that they want to use, and be able to lick refi natural gas, it won't happen. i think that's a big mistake. i like dominion and its growth prospects and i like its dividend and i want to buy it. joe in pennsylvania. joeship. >> yes! >> love the show. joe from pennsylvania! >> yeah. what's up? i'm looking for amlp. >> that is the amalgamation of the limited partnerships and it has been completely trashed and buy half because if it revisits

the level it was at wo days ago then you'll be able to buy the other half and get a good average. need to go to jer ney massachusetts. jerry some. >> boo-yah, jim. >> boo-yah. >> i have some exxon, it's probably 70% of my holdings. i'm retireded right now and i would like to start enjoying the dividends and i would like to leave my shares to my niece and nephew. in spite of the oil situation which i just considered a snapshot in time and there's that tempo to have a very diversified portfolio. do you think i'm okay it to go along with it? >> i don't like 70%, but i understand you have tax considerations that are probably weighing on you and exxon is a great long-term situation. they have a 50-year plan. i am fine with exxon down here at the 3% yield and there are others i prefer and i just wish it wasn't such a big part of your portfolio. and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade.

when the smoke clears after a hideous sell-off, even if. it's just for a moment like today's pairly placid session, we need to go over the events of the last few days to see if there's anything good that we may have missed because we were too focused on how everything was falling apart which brings pea to ulta salon cosmetics and fragrance. ulta for you home gamers, the one-stop shop beauty retailer with 696 stores across 46 states

that's growing aggressively and hiring 2,000 people a year. 92% of them women. ulta used to be one of the hottest growth socks out there. hit a wall, spent months in the doghouse. lately it's become clear that mary dolan, the company's ceo has masterminded a terrific turnaround, something the market acknowledged when ulta reported a spectacular quarter and the stock went through the roof. yesterday ulta had an annual investor, and 3.24% as befitting one of the fastest growing retailers which is why i was thrilled to catch up with barry dillon, the ceo at ulta at the shops in queens, new york, earlier today. take a look. >> mary, you came in just last july. you're putting up incredible numbers. the highest comp tstorr sales numbers at 9% and people were looking for 6. how were you able to generate

that kind of performance. >> beauty is a growth industry. what we are cog at ulta is focusing on the guests having insight to what she wants thou and what she might want in the future and working with the vendor partners to make ulta a beauty destination. great products and great marketing and all coming together to drive our results. >> you have different tiers. i know your background was to work at mcdonald's and you have prestige in one store. >> ulta is all things beauty all in one place and this is what our guests love. if you look at any woman's beauty bag she's not going to have all one product and all one price point and she can any to ulta and find something that's more prestigious and find things that she might find at other stores that are lower price and most importantly she can find the products that she wants. color cosmetics, skincare, hair care, fragrance and an expert salon in every ulta. so it's really a beauty destination. one of the things you've made

clear is that your store dominant in this particular area, there's still tremendous runway and still tremendous market share to retake. >> right now, we have a tiny share of the beauty industry which is interesting. we're doing great. we're growing, but i see plenty of runway ahead and our current guests come in more often and getting more guests growing ulta. we're confident that that's the right pace for ulta right now. >> you have a five-yore growth plan, how can you feel that confident? >> i worked very hard with my team to step back and say what figured out what brought us to the party ask what are the other opportunities as we look forward and what the consumers and guests might need and the competitive need might be and how do we drive growth that the beauty enthusiast as we call her, love what we offer so we felt it was our time to step back and create a clear point of differentiation and lead into the future with that. so we have a five-year lan it that we shared with our

investors yesterday and we're very confident about that. >> despite the fact that there is a view because of ebola and a view that the consumer is not doing very well. your numbers are demonstrating that consumers are spending on certain products. >> beauty is never going go out of style, i believe and our guest loves that she can do at ulta. so our traffic numbers are strong and the overall comps and we're guiding for the year and for the five year with a 5% to 7% comp over the five years and 20% eps growth in the first couple of years. we'll have supply in i.t. investments, but you know, that's really strong performance and i think it's pretty rare for the retailer to perform that way. >> only a handful of players are doing what you're doing and you mentioned what you're doing is that you're building a level of loyalty that is based on finding

what the customer wants which i think is the new customer relations management that we keep saying on our show is the secret to the success of of retail. so the guests are actually very loyal to your company. >> it starts with understanding who your guest is and we feel we know her well and one of the neat things is she loves coming to the store. she also loves to buy online and our gives who are buying both in-store and online are our best guest and she'll never want to buy everything online. she loves to come to the store, try products, try fragrances and get our services and we offer skincare services and we offer brow waxing and an expert hair salon. for us, understanding how the guest shops and what she needs is critical as we thought about our five-year plan and where to invest. >> brow waxing, salon, not something you get on amazon. >> no. >> exactly. that matters because when we look at retailers that have a low price to earnings multiple,

people believe that amazon can take over that cat knorry and that has not been the case in your stores. >> it's a combination of a great opportunity for us to grow our services business. we have expert, trained sielists that are world class. they take trend right from the runway and when guests come and discover that at ulta for a cut and color, she'll come on regular basis and getting her brows done at the brow bars and the microdermabrasion. can't do that online. >> i don't think people realize how hard trends are. some people felt that you had to turn around ulta when you came in july. how are you able to so quickly get your own people in place and make it so that the store which some people felt had too quick growth has manageable and executed growth. first of all, we're growing rapidly and a hundred stores a year is a good growth rate and here's my thinking. ulta was not broken and ulta was

performing very well and look at our year last year and we had one of the best years. my philosophy is fix it when it's not broken so understand what's working and think hard about what's coming and how do we put a lan and team in place. many of my team are ulta executives that have been there for a long time that know the business and new team members and we put that together and have a good growth plan. >> congratulations on having a story that is not dependent on some of the other things that are bringing down the market. you've done a terrific job. mary dillon, ceo of ulta beauty and stay with cramer. ♪ wawant to change the world? create things that help people. design safer cars. faster computers. smarter grids and smarter phones.

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synchrony financial. engage with us. lost in the shuffle, some real companies doing really good things. ppg, first the stock sold down. i thought they toll a great story and the stock then turned around. snapon tool, how much do we love s america a ask they delivered a

very nice surprise and they wn higher. when the smoke clears on ebola and russia, by the way, russia is a driver lear and i urge you to stay close to it. they come back on things like small capon and >> narrator: in this episode of "american greed"... he makes millions by hooking customers wanting a better sex life. >> the "smiling bob" campaign has to go down as one of the more memorable of a generation. >> narrator: taking advantage of their sexual insecurities, steven warshak makes illegal charges on the credit cards of thousands of customers. >> i was upset, and i was angry that they did this to her, put her in this situation. >> narrator: and later, an investment manager takes on the toughest clients -- retired nfl players -- and steals their money. $150 million vanishes before the