>> hartford financial, yesterday's quarter i think gives you a level to trade against. 35 on the downside. i think this takes the stock north of 45 bucks. >> our thanks to the bob peck of suntrust for sticking with us. i'm my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make a little money. my job is not just to entertain you, but to educate and teach you. so call me, or tweet me @jimcramer. this is the anti-charles dickens market. a market of not so great expectati

expectations. when the expectations are not so great, stocks can really rally, as they did today in a glorious overall win for the bulls, with the dow roaring 188 points. and the nasdaq skyrocketing 1.75%. of course, dickens has it right in both directions. those stocks, where there were, in fact, great expectations, a la the stephen king of the victorian era, and the company failed to deliver, or if the stock has run up but didn't beat the numbers handily, well, those got taken into the wood shed. yes, during earnings season when stocks are flying all over the place and you're trying to figure out what's going on, you need to know what people are expecting, because the expectations themselves, not the numbers, often decide the direction of a company's stock. we need to drill down on this, in part because the stock market is not inherently rational on a moment-to-moment basis. yes, the market can be stupid on a given day.

but it does tend to come to its senses. let me give you examples starting with a classic household name, whirlpool. here's a company that reported, and immediately the headlines announced it horrible. it was a total dud. misses own revenues. that's what i read within seconds of when whirlpool reported. the stock immediately sank three points, but upon further review, is it all that horrible? hardly. because everyone i know expected them to blow it. i mean, blow it big-time, as whirlpool has a huge latin american business, which was thought to be a black hole because of all the problems down there. nope. whirlpool had a huge quarter in latin america thanks to very strong operating margins and the company also increased its cash flow output. in short, a company that was supposed to screw it up, didn't, and voila, the stock rallied six points. 6.77%. or how about buffalo wild wings? yeah, b.w. this is a total battleground

stock. bulls like to think of it as a national expansion with a likable simple formula that works all over the country, and leave it to sports and beer, two great american pastimes. the bears like to think of it as a play on wings. wing prices have skyrocketed this quarter, which caused many to expect the company to report a dramatic shortfall. whoops. buffalo wild wings announced a terrific guide-out, not guide-down, coupled with a 3% menu increase. wow, demand must be pretty good. there goes the bear case. a bumper chicken crop in 2015, which should indicate crater increase t. no wonder a 13% gain. might have more on "squawk on the street." you never heard a good word about china these days, do you? there's a perception that the people's republic is slowing down than a faster pace than

anybody expected, which is why cummings has dropped from 160 in june to the 120s not long ago, and then today the company reported and guided the numbers higher, not lower. how could cummins possibly do well? it turns out those who only look at china forgot about the united states. where recovery is occurring far bigger rate than people thought. hey, you know what? that's how you get a nine-point gain in a single session. 6.8% gain. when parker announced a big boost last week and the stock jumped 7%, i said i was disappointed that the cleveland industrial didn't wait until it reported to tell us all this good news. yet results were even better than anyone imagined. the stock advanced another five bucks, a testament to how beaten

down the industrials were ahead of earnings season. or how about spirit airlines? do you know that two weeks ago this company cut its forecast for the quarter to be announced today because of an underpayment of fuel excise taxes. when i read that, i said oh, my. spirit's going to get crushed. how could its earnings not be so strong as to make up for this lapse? how could that not happen? others must have felt the same way because the stock got crushed. also because of ebola. and subsequently sold off ten bucks. but it looks like the tax lapse really was meaningless. spirit shot the lights out when reported today. and it rocketed $4. $4.50. stocks soared. even huge stocks like apple can rally dramatically when they roll out an unexpected needle mover. there were a ton of people who didn't expect much out of apple pay. they didn't think it would be a big deal. talk about low expectations. now we find out that one million people have already signed up for the payment season.

i think customers will demand that merchants accept apple pay. i wouldn't be surprised to see walgreens take from rivals. i bet the stock is going up because apple could be the next big thing for a company that was supposed to be out of next big things. now, of course, the flip side. sell, sell, sell. yeah. not that long ago, kohl's announced it was going to have a big analyst meeting as part of what looked like the revival of a humdrum retailer. last month, citigroup put out a piece entitled "calling a juicy inflection connection, upgrade to buy." this morning we got an inflection point, but it was a negative one. kohl's announced on the sudden downturn. it was devastating and the stock tumbled nearly $4. that's what happens when the expectations get too great. twitter was felled by great expectations, too. the company's growth was accelerating going into the quarter because of a series of changes.

nope, not at all. hence, the stock's hideous clubbing today. more on that later in the show. then there's the sad case of masco, polar opposite of whirlpool. three weeks ago they announced a gigantic 50 million share repurchase plan. only 350 million shares out there. yet this morning it reported a shortfall. masco had high expectations. explains everything. finally, there is the unfortunate case of facebook, which had run right into its all-time high this session before it reported a quarter that people seem to have hated. that meant anything caution nark including some obvious concerns, lighter revenues, not so hot hikes. as well as some locked up stock sent the stock cascading in after-hours trading. i didn't think it was a fiasco like twitter, but it's a real bad bruising, because both the stock and the expectations were both so darn high, there was no

way facebook could be equal to the task. i predict downgrades in negativity tomorrow. charitable trust owns it. been saying take profits, but you never take in another profits when the stock gets hammered like this one. every single day this market is made up of small unit skirmishes like this. people have been betting that the cloud is overdone. morgan stanley makes the best idea and jumps a couple bucks. go-pro had been in pre-fall. google had been tumbling after its disappointing quarter, but ever since yahoo talked about how hard search and advertising has been, people. >> bidding up google. now, facebook, hideous decline, but it wouldn't shock me to be like google a few weeks from now. nevertheless, this market marches to the tune of expectations, and if companies can keep them low enough, or if the market pummels their stocks too much ahead of the quarter, you get a visceral, vicious reaction either way. here's the bottom line. today we got blowouts where we

expected little. tomorrow, it looks like we're going to get hammered because of some stocks that didn't blow out the numbers today. but let's give this market its due. monster bullish moves define the incredibly bullish session. i think tomorrow will be a different story. how about chuck in florida, please. chuck? >> caller: how you doing, jim? boo-yah. >> boo-yah, boo-yah, chuck. what's up? >> caller: i just had a question about the jcpenney. what are your thoughts on that, the stock, and also the announcement of marvin ellis? >> i feel that jcpenney is under -- it's just not going to be great stock for now. it looks like when kohl's reported something that kind of verified how jcpenney is having a tough time, it made me think that these classic department store retailers are not the place to be. i'm not crazy about jcpenney. it's not great, not bad. how about john in illinois, please. john? john? >> caller: hey, jim.

>> john. what's up? >> caller: hey, i need your help, buddy. >> sure. >> caller: last week, klac announced a special dividend of $16.50 per share to be paid by the end of this calendar year. if i buy shares tomorrow, are the shares eligible for this special dividend? >> i believe they are, but i don't want you to do that. the stock has moved dramatically. we've got to find another stock to buy. that one's already played out. i don't want you going there. let's go to jennifer in ohio, please. jennifer? >> caller: hi, jim. >> hi, jen. >> caller: i know you're not a fan of go-pro, but i bought the stock the second day of trade, and i'm up 108% on it. do you suggest i hold it? >> i think it's going to be a good christmas season for them. i'm a little worried about retail. i know they're sold out of a new of the new go-pro hero. i loved it when it became public. then it got to the 90s, and i

said enough is enough. then i tend not to look back, frankly. look, it's a market of not so great expectations. and they're beat. you get the kind of glorious rally we saw today. but tonight, facebook not so good. it will be a new page tomorrow. all right, is the street spooked on twitter? should you just stay away? well, also, there's a smooth ride hire for spirit airlines that reported just this session. can it continue to gain attitude? i've got the ceo. but first, call it a comeback boy. what a difference two weeks makes. find out what something called a dragon fly dogi has to do with the market's rebound and where we could be headed by year end. that's next. stay with cramer. >> don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to

madmoney@cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. will the feds still end qe? steve leaseman live with the fed decision, 2:00 p.m. eastern on decision, 2:00 p.m. eastern on cnbc.rthat i take metamucil because it helps me feel fuller between meals. it's just one small change that can help lead to good things. now she's breaking up with the vending machine. nope. i call that the meta effect. [ female announcer ] 4-in-1 multi-health metamucil now clinically proven to help you feel less hungry between meals. and promotes heart health. experience the meta effect with our new multi-health wellness line and see how one small change can lead to good things.

how can we figure out where the broader averages are headed? you know that one of the key boxes on my checklist for an investable bottom was the technicals. we needed to see the charts turn positive before stocks could start rallying again, which is exactly what happened. but now we've rebounded nicely. it's time to go off the charts with dan fitzpatrick, a brilliant technician, my colleague at realmoney.com, to get a sense of what could be ahead for the major averages. fitzpatrick's view, he thinks we've got a classic selling climax, a technical term, back on october 15th when the market sold off viciously, and then we got a dramatic entry day reversal on high buying. since then, though, the averages have rallied dramatically. and now fitzpatrick thinks that they've become overbought in the short term. which is something he says strong markets do. but nonetheless, it means we could be due for a pullback. but again, fitz expects that any

pullback is likely to be short-lived and he says you should buy the dip, even as he believes this market will be range-bound for some time as it builds a base, before ultimately resuming. you can see something pretty similar in all the major averages, so let's take a daily look at the s&p 500. first fitzpatrick points out that the s&p's multi-year up trend decisively broke down earlier this month. multi-year. as the decline picked up speed, it did so on higher and higher volume. this kind of high volume selloff is always significant panic. but when investors panic and dump everything, it ultimately leads to a fabulous buying opportunity. we've got this selling climax nearly two weeks ago on october 15th, and notice this was always the same day that the volume peaked. same day. fitzpatrick points out that this day of all of the major indices reversed at 1:30 p.m.

it was as if a massive buy program suddenly hit the table. or you could argue the sellers probably disappeared. when you take a close look at the action on october 15th, it shows a very long tale. check this out. where the s&p fell to an extreme low and then reversed to close near the high of the day. this is one section, okay? fitzpatrick says that this is what's known as the dragon fly doji. it's a reliable bullish reversible pattern. precisely what happened, right there. that was it. that was the crescendo bottom, is what i used to call it. from that bottom, the s&p 500 has now rallied 9%. at these levels, fitzpatrick believes it is overbought. at least in the short term. and you can see how trading volume has been declining, indicating that the big boys are not accumulating stock with any particular fervor here. meanwhile, the s&p has a ceiling resistance at 2020.

okay? 2020. that's roughly 30 points above where we are right now. fitz doesn't believe we'll be able to breakthrough that ceiling without first seeing some kind of pullback, so this argues that we're going to retrace a little bit here. at the same time, he also thinks any decent sized pullback will be worth buying. when the s&p broke down earlier this month, it fell, but the s&p only stayed below its 200-day moving average for seven days before breaking back out. there's the seven fabled days above this key level. that's why fitzpatrick believes the s&p 500 should be bought any pullback for the two-day average, which is slightly above 1,900 right now. how about a weekly chart of the dow jones industrial average, that i know a lot of you still follow. just like the s&p, the dow sold off hideously early this month, falling below the 200-day moving average. okay? 200-day moving average is in red. fell below that. it bottomed in the exact same day as the s&p. but the dow hasn't rebounded

back nearly as rapidly. it only rebounded above the 200-day moving average last friday, and we're still a decent ways off from the dow ceiling of 17,350. so will the dow keep climbing making higher highs until it tests that resistance line? fitzpatrick doesn't think so. in his view, it's far more likely that the dow will fail to tag this up trend resistance line. wow. won't hit it. however, if that happens, fitz says it merely reveals that the dow is entering a period of consolidation. charters will sometimes say that the dow needs to do some work. that is code for it's healthy for the market to churn for a while, flop and chop, i call it. and allow the volatility to subside. and the investors can redeem some confidence that might have been lost for the plunge. since the dow had a floor of 16,000 support, which is where it bottomed in april and roughly where it bottomed this month, fitzpatrick expects it to trade

sideways for a while, bouncing between 16,000 and 17,350 as it consolidates. that's the pattern he's expecting. what does fitzpatrick think about the nasdaq composite? wow. taking a gander at the nasdaq's daily chart. he notes before the big breakdown from mid august to mid september, so you're looking through here, the nasdaq traded in a tight range before peaking at 4,600 where it put in a short-term double top. why does that matter? because that level, where we peaked, can often become a ceiling of resistance. and fitzpatrick thinks that's exactly what will happen with the nasdaq. today's rally took this index right into the battle zone. less than 50 points away from the ceiling at 4,600. ever since the nasdaq composite started breaking down a month ago, all the traders who bought from august to september now feel trapped. they're really waiting for the nasdaq to return to levels where they bought it so they can get

their money back without taking a loss. that's the way big traders think. hey, get me back to even. that's what you always hear in the trading pits. given that the nasdaq rebounded above 4,500 today, fitzpatrick believes this is about as high as it will go right here, right now, because we have all this hidden supply from traders who bought at this level in august and september and are likely to sell, not buy. and that's not the only reason fitzpatrick thinks the nasdaq might have trouble heading much higher. the index has advanced early, 11% in less than two weeks. that's a terrific rebound. but now the volume is declining. and remember, volume is like a polygraph when it comes to the charts. when a volume is low, it tells you a move might be deceptively low to maintain. fitzpatrick thinks it's going to be tough for the bulls to push this index through the ceiling at 4,600 without first taking a bit of a rest. so, with the dow and the s&p 500, fitzpatrick expects the nasdaq to consolidate for quite some time. that said, he thinks it's worth buying on any pullback to the

200-day moving average currently at 4,300 because he doubts we'll be revisiting the october 15th lows, and even if we do, we'll likely rebound from those levels all over again. here's the bottom line. when it comes to the s&p 500, the dow and the nasdaq composite, the charts as interpreted by dan fitzpatrick, indicate that after a period of intense volatility, things are about to get nice and boring again! with the averages trading sideways as they consolidate their gains for the past two weeks. and any pullback will once again be a buying opportunity. you know what? i find fitz's benign view pretty reassuring. there's much more "mad money" ahead, including the discount air carrier that flew higher today. should you be booking this ticker along with this ticket? then ad-co is buying back their own stock hand over fist. but first, you saw how twitter reacted in today's trading. i'll give you the real story. stick with cramer.

i have listened endlessly to the cat calls about how marisa meyer, the ceo of yahoo, isn't focused, that she's not created anything, not reversed the tide, not this, not that. i think the heat's being directed at the wrong person. today's market, let's say today

marks a real important turn. as of right now, meyer has tripled the price of yahoo's stock. she's done so through capital management, mainly making peace with alibaba so she could hold back a huge number of shares that yahoo earns, 122 million, to be exact, from having to be sold on the chinese giant's epo. you have to appreciate meyer's foresight in avoiding the sale of these 122 million shares at $68 that the company offered them. remember, she could have ended up selling many more shares than she did. that was the original agreement with alibaba before she came in, but her decision to fight to hold back that stock is looking pretty darn shrewd. at the same time, let's not forget she bought back 193 million shares at an average price of $26.37, including 40 million shares from the noted

activist, at $29.11. lobe did well out of the deal. but with yahoo now trading at $45.85, mayer's purchase was downright brilliant. but, of course, no credit for doing that. as she stated on her conference call, she helped to boost yahoo's earnings per share by 50% year over year, making smaller acquisitions to boost viewers. it's all been pretty positive for mayer. yep, yep, yep. they've been eviscerated by google's efforts to. which brings me to twitter. last night, twitter reported a number that looked good on the surface, but showed slower user growth and engagement than expected. with sales guidance that i found downright puzzling, to say the least. overseas sales have slowed. timeline views, which management

said were ultra important the last time the company reported, they fell by 7%. meanwhile, twitter is spending fortunes to earn just a penny per share. company indicated the revenues are already slow, something that's not supposed to happen this soon in a growth stock's life cycle. as a very smart downgrade, "our long-term estimates decline materially as slower user growth, a couple of potentially unsustainable growth in ad prices eventually lead to significant lower revenue and earnings estimates." given the stock's already sky-high valuation, there was really no room for that kind of disappointment, which is why twitter was slaughtered today, down almost 10%. a huge hit to my charitable trust. unlike marissa mayer, who has a very good defense of what she's done in yahoo's latest conference call, i found twitter's ceo dick coslo to be downright incoherent. i have no idea what he's trying to accomplish or even what he was saying. but where are all the calls for his head after the shocking

deceleration? twitter should be adding millions and millions of viewers and becoming the world's de facto personal muse service, but the decline in user engagement is showing the opposite. let me give you my bottom line. i think what's directed at mayer is misplaced. what more does she have to do to shut the critics up? instead, some of this vitriol should be at costolo. i think the free pass should end right now, right here for dick costolo, while marissa mayer deserves the benefit of the doubt more than ever. time for someone real to come in at twitter, make hay, before the sun starts setting on this gem of a company. matt in california. >> caller: how you doing? >> i'm doing good. how are you, matt? >> caller: pretty good. yelp recently announced q3 revenue up significantly from last year. how come the stock isn't up

higher? >> a lot of the metrics weren't any good. jeremy stoppleman should come on the show. i couldn't figure out what's going wrong with the numbers, but they were not what i was looking for. and jeremy should come on "mad money," he's been here once before, and tell us what's going on with yelp. because if it's such a great story, why not come on "mad money" and tell it! paul in new york. paul? >> caller: hey, jim, thanks for taking my call. >> sure, chief. >> caller: my question is i have a dividend portfolio that i use just for income to buy growth stocks. i was thinking your thoughts on century link. how safe are the dividends? >> they already cut them once. looks like things are doing better. but i don't like dividend cutters. i like dividend boosters. i suggest you swap out of that one and go into verizon, or at&t for that matter. century link's business got a little better lately, but you know what? i've got to have a little more let's say sleep at night confidence, which is what verizon gives me.

memo to the haters. yahoo's marissa mayer knows what she's doing. but twitter's costolo, puzzling. there's much more "mad money" ahead, including my exclusive check-in with the ceo of spirit airlines. there's a guy who knows h s how run an airline. adco has been struggling to harvest any gains this year. i'm digging deeper to see if there's any hope for growth. a few stocks are down. plus i'm taking your calls. lightning round is coming up next. stick with cramer. (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.

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you want more proof that nobody ever made a dime by panicking, just take a look at the airline stocks. got crushed earlier this month because of overblown worries about an ebola outbreak, slowing down the economy. since come back with a vengeance, rebounding like crazy over the last two weeks. turns out the disease is much harder to catch than many people feared. meanwhile, even as the market was panicking about ebola, the price of oil was plummeting. now that earnings season is upon us, we've seen very strong earnings to the major carriers. but tonight i want to circle back to a smaller player that's one of my favorites in the

space. spirit airlines, the aptly-named ticker s.a.v.e., spirit is in a different business model. it's the largest of the ultra low carriers. this company is the lowest cost in the industry, as is cost per available seat mile, excludeing fuel, 10% below even other low cost carriers. the idea is simple. spirit charges the lowest prices for no-frills flights, packing as many customers as possible into a given plane and making people pay extra for everything beyond the actual suit. that's how spirit managed to turn a profit for years, even before the recent consolidation in the industry. cheap oil is just icing on the cake for these guys. the company just reported a monster quarter this morning. three-cent beat. inline revenues that rose 13.8% year over year. this is airline stock. a and in just the last two weeks, it's rebounded dramatically from $53 up to $71.

the stock's giving you a 22% gain since we last spoke to the ceo six months ago. i think we'll have a lot more going forward. let's check with the president and ceo of spirit airlines. different kind of guy, different kind of airline. mr. baldanza, welcome back to "mad money." >> great to be back with you, jimmy. boo-yah. >> boo-yah back. i bet i've never heard you this upbeat. you're an upbeat guy. but it looks like everything is coming together. the other airlines are all raising price. you have a pricing umbrella that it looks like people are just loving right now. >> well, we always work on trying to lower our price. every night before i go to bed, i think how can we make the price lower? that's what we're in business for at spirit. >> when i first met you, you were in a place that other guys didn't want to go. you are opening up -- dallas, chicago. your model works even head-to-head. >> you know, we look for places

where there's a lot of people. and obviously a lot of people live in big cities like the ones you mentioned. and what we find is when you connect two big cities, there's lots of traffic that is willing to fly if the price is right. so we look for where there's a lot of people traveling but paying high fares. when we come in with a lower price, we can find more people that are willing to travel and those are the people we carry on spirit. >> one thing is certain, ben, this ebola thing. i was thinking maybe it's the news media. your planes were packed this whole period, weren't they? >> yeah, they were pretty much packed the whole period. we've really seen no impact due to ebola on our bookings. >> all right, now, ben, i'm a little worried. i'm worried because i'm seeing this friendlier spirit 101 policy. now, we're used to just the bare bones. are you starting to pamper travelers? >> well, mostly what we want to do is make sure travelers understand who we are. so spirit 101 is all about better aligning the customer expectation to the reality of

spirit. we have customers, for example, who really buy us because they really like our low fares, but they're surprised at some of the things we do. we want to make sure they understand exactly what we're going to do, or the fact that we charge extra for bags, or to print a boarding pass at the airport, and such. so what we're really trying to do is help people better understand the business. we're not changing the business model. we're making it more understandable for customers. >> ben, i would have thought this long after the great recession, people would start thinking, you know what? i'm willing to spend a little more. it seems like as we get further from the great recession, the frugality mindset takes hold even in younger people. i mean, isn't this kind of reverse what you would have thought coming out of the great recession? >> well, you know, in every market, jim, we've found that there's a set of customers who are looking for the value play. now, in a real strong economic environment, maybe that's a smaller percentage of the

market. of a larger market. in a weaker economy, or a weaker economic environment, it might be a larger percentage. but there's always a group of people who want to eat at mcdonald's, who want to buy the cheapest car, who want to get to where they're going for the lowest price, and that's where spirit sort of lives, in that side of the business. and so the difference really is if you care about price as the main reason you're choosing your airline, spirit's a really good play. if you're looking for more creature comforts, you can probably find it a little bit more in some other airline. >> one last question. i know that a lot of the airlines were crowing about the lower price of gasoline. you mentioned in passing, it's not what you're about, but it sure does bring a lot more money to the bottom line, doesn't it? >> well, certainly lower fuel prices help in the short term. in the longer term, the industry has benefited a bit from higher fuel. that's going to sound strange for an airline ceo to say, jim. but it's benefited in that what

it's done is created capacity discipline that's been good for the industry. it created some of the consolidations we've seen. and it's created an economic stability for the whole industry. lower fuel prices in the short term are absolutely good for us and good for the industry because it allows us a little bit of breathing room on what is generally a fairly thin margin business, even though at spirit, we found a way to expand those margins a little bit. so we're a really fuel efficient carrier and we plan to make money whether fuel prices stay high or low. in the meantime, we're going to enjoy these low fuel prices. >> you've changed the whole template. i you were a margin play and a frugality play and you've done a fantastic job the whole time that we've been together. i want to thank you, ben baldanza, the president and ceo of spirit airlines, for once again delivering a fantastic quarter. >> great to be with you, jim. >> this guy knows how to run an airplane. ben baldanza.

this spirit air symbol s.a.v.e., it is going higher. maybe much higher. "mad money" is back after the break. tomorrow, kick off the trading day with "squawk on the street." live from post nine at the nyse. >> i'll give you another one. iverson. practice? not a game. practice? this is like -- no, see, it is a game, costolo. >> it all starts at 9:00 a.m. eastern. ♪ there's confidence... then there's trusting your vehicle maintenance to ford service confidence. our expertise, technology, and high quality parts means your peace of mind.

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it is time. it is time for the lightning round! are you ready? time for the lightning round. let's start with jason in washington. jason? >> caller: what's up, bada-bing, bada-boo-yah to you. >> excellent. >> caller: my stock is gmc. where do you think it's going? >> i think gmc has to merge with

vitamin shoppe. without that, too much competition. gio in north carolina. >> caller: a big charlotte uptown boo-yah to you, jimmy. >> how you doing? >> caller: i'm doing all right. best in class financial with you, great price of earnings, great third quarter earnings call last week. goldman sachs. >> goldman sachs is very interesting. after they reported that quarter, the stock got completely obliterated and people thought about it a little bit more and said that's not so bad. this is a common pattern now in this quarter including what we saw with google. i think we might see it with facebook. i think facebook starts creeping back up. this is a new pattern. let's go to john in new york. john? >> caller: hey. let me give you a boomer sooner scooner boo-yah to you. >> got that when we were in oklahoma and when we were there in 2009. >> caller: i purchased agios,

kind of kicking myself in the tail for not buying more. anyway, my dilemma is with the conference call due next friday. and the stock having run so hard. do i a la steve miller band take the money and run? >> i think you take some off. it's been a monster call. i think that when you -- i mean, just give you an example with facebook. it's really on my mind. we sent out a bulletin saying listen, the stock's too much. it's too high. take some off the table. i feel the same way about agio. i really like it. this is not palo alto where i'm saying listen, just declaring victory and moving on. i just think some of this has to be taken off because i can't let a gain turn into a loss. let's go to cat in oklahoma. cat. >> caller: hello, professor. >> hey, cat, how are you? >> caller: you are the rabbi of revenue. i just want to thank you. i bought rice energy at $30. >> right now, that is one of the

situations that is challenged. if you see oil go to 75, people are going to say rice is not going down. i think that oil is going to stabilize here and i think you're okay with rice product. don't want to buy more now. how about matt in north carolina. matt? >> caller: hey, jim, how you doing, buddy? >> i'm doing all right, how about you, matt? >> caller: i'm doing fine, thanks. my question is about fireeye. a new deal from mobile iron. does fireeye stay in its trading range or move higher? >> i have now said that i thought that palo alto got too expensive. i am more interested in fireeye down here. did move two bucks today. i like cyber arc best of all. i like fort net, too. let's go to brent in tennessee. brent? >> caller: yes, jim. good to hear from you. i'm glad to get your program. i enjoy it very much. >> thank you. >> caller: i was wanting to know what you thought about

haliburton. >> i think haliburton has just been just crushed here as people are worried about what's going to happen with drilling. i kind of like haliburton right here. it's got a big buyback. very well run. stocks have been crushed. just annihilated. that means to me -- >> buy, buy, buy! david, how can i help? >> caller: i recently bought a stock, it's up $10 on no news. you always say bulls make money, bears make money, and pigs get slaughtered. so how high can isis pharmaceuticals? >> i think it got slammed. dr. stanley cook has had some real breakthroughs. i am not willing to part yet with isis pharmaceuticals. and that, ladies and gentlemen,

is the conclusion of the lightning round! >> the lightning round is sponsored by td ameritrade. in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. 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.

what to you do when a company reports a mixed quarter thanks to an overall lousy environment, yet its stock goes higher? that's the question when it comes to adco, the third largest districter of agricultural equipment in the world.

when crop prices are down, farmers spend less money on equipment. however, in the past few weeks, corn and soybean prices have both begun to rebound, in part because high meat prices are causing greater demand for corn and soy to feed livestock. when adco posted this morning, the company posted a 9% earnings beat.gco posted this morning, the company posted a 9% earnings beat. however, even though these numbers beat expectations, agco still saw softening equipment demand, and it implies the sales and earnings next quarter will be weaker than the analysts have been forecasting. in response, agco stock rallied. that got me thinking. perhaps agco stock has come down to the point where there's nowhere to go but up. maybe that four-year guidance is conservative, given that this company has managed to report two consecutive earnings beats in a very tough environment. meanwhile, the companies right in there consistently buying its own stock.

in the first nine months of the year, they bought back 6.4 million shares, 7% of the share count. they made it clear they plan to continue their aggressive repurchases. where exactly does that leave us? i think if crop prices keep falling, agco will keep being difficult to own. but if their rebound is for real, then this is a bottom. let's take a closer look with the chairman, president, and ceo of agco, find out more about the quarter and where it's headed. welcome back to "mad money." >> hi, jim. thank you for having me again. >> okay. i've got to get right to it. you're buying back stock. you're also plowing money back into the business. you're spending a lot to make the company -- you've got the cap expenditures going higher. why bother? >> well, i don't think that you shou should. we are hanging in. still have a great story to tell. changing diets. renewable fuels. everything is still intact because the fundamentals are

still there. and then we do the right things. so we not only buy back shares, we also do a very radical and very quick reengineering of our business which is healthy, and which will help us to reduce costs substantially. >> all right, where are inventories right now throughout the world? >> inventories for some of our competitors are very, very high. in our case, they are reasonable because we manage them early enough, so we have big professional dealers in most of our markets, and therefore i think we are doing better than some of the other guys. >> have you been able to manage down inventory in the ukraine situation? >> yes, but what we did not have to -- what we did not plan for when we talked last time, we don't have a problem in ukraine, but we have -- i would call it collateral damages, like for example, i don't know whether you heard about it, but dutch

vegetable farmers lose about 350 million in sales because they are sanctioned by russia. spanish orange farmers the same. polish potato farmers. so that means we have quite some impact from sanctions from putin, which hopefully will be discontinued sooner or later. >> all right. now, on the other side, i am seeing some crop prices come back. you are in a cyclical industry. is it possible that we could be at a trough, and are you even factoring that in for 20, 15 years? >> we are very conservative, because i think there's nothing wrong to take now, very conservative assumptions in order to make sure you do the right steps and change things properly, and if basically business does better as some of our guys say, it will rain through the roof.

so basically we think it's nothing bad to be on the safe side. >> latin america has had a big election in brazil. huge business for you. are you okay with the politics down there? >> well, actually, we are happy that the election is over now. maybe the president can be discussed, but i think overall, they can go now back to work. and brazil i think also has some potential to come back. >> i've got to tell you, you hang in there. i just feel like -- when you get a stock down so low to its intrinsic value, it's when people have to start buying it. and that may actually be the case with what we've seen with agco. great job in a very tough environment. >> thank you very much, jim. >> okay, that's martin richenhagen, the chairman, president, and ceo of agco. listen, what goes down maybe must go up? "mad money" is back after the break. (receptionist) gunderman group.

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all right, i like what dan fitzpatrick had to say in our off the charts segment. said listen, maybe we've run a little too far, we have a pullback. i think that's what facebook is saying. i think that that's what twitter is saying. i see a bunch of stocks after the close like gilead looking a

little heavy here. let the market come in for a while. we've had a huge run from the bottom. don't panic, though. google was down really badly and now it is higher than when it reported. there's always a bull market somewhere. i promise to try to find it just lemonis: tonight, on "the profit"... i visit artistic stitch in queens, new york, an embroidery and silk-screening business plagued by an identity crisis. sal: it's a multiplex of businesses that really work together. lemonis: that's what's called a "mall." lemonis: delusions of grandeur compelled the owner to build out his entire facility with whatever he could think of. sal: this is the restaurant. this is the sports complex. this is our baseball facility. lemonis: is it profitable? sal: no. lemonis: if i can't figure out a way to bring this company back to its original roots, artistic stitch will close its doors forever. the numbers aren't adding up here. sal: i'm this close to going home. lemonis: my name is marcus lemonis, and i fix failing businesses. lemonis: if you don't like money, don't follow my process.