collaborative final call. dan. >> i am favorable on the company. i would look to buy it down 5% or 10%. but that is a nasty set up. i like shorting at expired. i'm melissa lee. thank you so much. meantime, "mad money" starts right now. 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 save you some money. my job is not just to entertain you, but to educate and teach you, so call me at 1-800-743-cnbc. or tweet me @jimcramer. we can't save the world. we can't turn it around. we can't make the chinese spend more money. we can't force the europeans to start doing some structural

change or make the japanese find another way to grow other than just dump their cars on us. yeah, we've come to accept that the rest of the world is relying on the u.s. to help them and we don't like it. it's too hard. and that reaction led to a wholesale selling of american stocks today which is how the dow tumbled 252 points s&p fell 1.3% nasdaq declined 1.03%. hideous. yep. you know what, it's become a zero sum game. we know that other countries are going to keep weakening their currencies, and we're going to get earnings from those countries that aren't as great as they were. because our companies report in dollars, not yen or euros or rials. and while i always plead with you it's a market of stocks not just some giant asset class, my pleas have fallen on the deaf ears of hedge fund managers, that don't trifle with individual companies. they just accept the dollar is going up and going up so much that it's per se bad for all american stocks even those who it actually isn't bad for. so the liquidateing stocks and

they're buying bonds and doing it hand over fist. these sellers sure made themselves look right today, wrapping up one of the worst months for the averages literally in a year with a real acceleration of the sell-off right into the bell. why even bother to do this? why even bother with the exercise of studying stocks? first, because we know you like them, or you wouldn't be watching. particularly on a friday evening. but second and more important, we can pick the stocks of companies that aren't being heard here. maybe make money with them. we can find a costco which gave you a $5 special dividend. we can isolate visa which gave us a four for one split. we can tell you to own, but don't trade both apple and facebook. and you can do quite well even as there's always going to be something out there, like a deckers that really sent us in the wrong direction, and yes, indeed, into the -- >> the house of pain. >> sometimes management just gets it wrong. and i very much regret the deckers situation.

you can't mention the good without the bad and deckers, deckers was real bad. >> boo! >> i would appreciate the chance to speak to the ceo about what went wrong here and whether there's any chance for recovery anytime soon. we also know you like to come and find out about things like shake shack, which we suggested you do everything you could to get in on that deal. that was right. next week we're looking for a couple of really important themes. trying to get information. for starters we're searching for america first companies that can weather whatever these other central banks are throwing at us. second we're trying to find out when high yields will protect us again, given that now the ten-year treasury yields half of what a lot of stocks are giving you. right now only utilities have afforded us protection, and they've been champs. but after the dramatic ongoing decline in interest rates, with a colossal move part again today, we need to regard some stocks that have sold off in weaker earnings as potential bimarket equivalency again.

third, we're beginning to wonder whether we have to be on the lookout for a bottom in oil, even as it might be this kind of bottom. >> no no! i think too much of david dempture, the famous ceo of core labs that drilling service scientist, who's been one of the premiere oil service companies of the era. to ignore his view stated here last night, in what i thought was a dramatic presentation, that we could be putting in a bottom if crude soon. this $45 level has been able to hold despite a tremendous onslaught of sellers, and oil jumped up three bucks or 8% to finish at $48. now, this time it was off of uncertainties caused by an isis raid on the oil-rich kirkuk region of iraq. so, what we're going to do is we're going to listen to all the oil companies that report next week in order to return whether they've been cut back so aggressively that we'll get what we call a v-shaped bottom or a u-shaped bottom a miami bottom in the next few months. there's still going to be a ton

of stress on the overindebted oils at these levels. i suspect bankruptcies sometimes in the next six months for many of them all smaller, probably won't know them but dempshire gave us hope that oil would stop its free fall something that this stock market desperately wants to see happen regardless of whether it's actually good for the consumer, for you, or not. with that in mind, on monday we hear from exxonmobil the largest of them all. we heard about some huge cuts this week also heard about suspension from buybacks from big companies, but they aren't occurring fast enough to take ul of this near-term supply out. that's what happens if you shut down drilling. however, that may not be the case fur months from now. and for the record, the major oils after a blistering barrage of bad news have still not taken out their december 2014 lows something that bares close watching after exxon reports. we also get results from anadarko anadarko, apc, a savvy independent oil company that will most likely give us a forecast for crude. it's far more sensitive to the price of oil then exxon.

within its $1.61 jump today on the strength of oil futures. who knows more about the demand to drill than national oil arco. the big drilling machine company that reports tuesday. we'll be on bottom watch. if they say their order book is drying up fast it's more likely we'll get a v-shaped recovery than we get a "u." interesting. then there's bp the legally hobbled oil giant that's rewarding to shareholders. we put all these oil companies' forecast together, next week we'll make an informed determination. certainly a lot better than just watching every tick of the futures, like a lot of these jokers do. that's just like you don't feed a weather man to know which way the wind blows. after the bell tuesday, two of my favorites reporting here. we've got disney and chipotle. the formers should be helped by cheaper gasoline right. it helps the theme parks, but it might be hurt by the stunning decline in u.s. tourism, that charlie sharp flagged in this visa call today. listen to that call it was last night's call.

but he said listen tourists aren't coming here. it's really down because of that strong dollar. if disney comes down you know what i say? forget about the strong dollar buy something for your kids. i care passionately about chipotle and have ever since danny meyer told me people should be owning the stock, back when it was in the 50s. it's now up 110. that's the same danny meyer that just brought shake shack public in the most exciting ipo of 2015. wednesday, two bond market equivalent stocks i'm watching very closely. first is clorox. wow, i don't know. the stock has been on a tear. then there's general motors. clorox yields 2.7% and it's been rock steady. by the way, it has much less exposure to almost any other packaged goods company in foreign markets, pull out of event swraivenezuela venezuela, that was a genius mood. general motors has been horrendous. i think if gm announced it's going to raise the dividend then the stock bottoms right here, and if it doesn't, no

bottom. thursday we hear from the quintessentially american buffalo wild wings, which has been on a real tear. i think there should be one more solid quarter helped by a fabulous football season and the desire to have a beer while you watch a game. then, twitter reports. now, here's a special one. the expectations about earnings and monthly average users have come down. but at the same time, the expectations of a possible mcdonald's style coupe has risen. i think both of those things have to occur first. and i don't expect much from the quarter either. that said my charitable trust owns twitter, because we figure that like mcdonald's, where we were right, there's a lot of value here and someone will eventually realize how to bring it out. although, the wall of shame looms large, if the quarter's lousy. finally on friday we get the monthly employment report from the labor department. now, we enter a bizarre situation, where you have to

fear the fed raising rates off a too-strong jobs number because that would send the dollar through the roof and cause more dislocation than we have already. things are crazy enough. that's the last thing we need. here's the bottom line. next week we'll be seeing a bottom on the horizon, as well as the continued strength of the america first stocks and whether big dividends can create a bottom for a lot of otherwise poorly performing non-utility equities. somehow, i'm sure after next week, at the last real heavy week of earnings season we will have the answers. hey, why don't we go to marilyn the in ohio. marilyn? >> caller: hi, jim! it's marilyn from ohio. go, buckeyes! >> we love the buckeyes here. we like their coach, he's real smart. what's up? >> i want to start a championship portfolio for my 2-year-old grandson, with companies that he can relate to. i was thinking about mattel. what are your thoughts or should i -- >> mattel is so poorly managed, you can't have that. i know it looks like a bargain

and barbie could snap back hasbro is better of the toy cos. what's the biggest toy company of the world? apple! why not buy some apple? they make the best toys. but, they're also the most educational. let's go to bradley in louisiana. bradley? >> caller: hello, jim! >> bradley! >> caller: jim i'm calling about linn energy ticker cold line. my first question for you is is this a good pick right now? >> no. no it's got too much -- go ahead, i'm sorry, finish up. go ahead. well, all right. well, here's the problem. there's been margin call selling there by high-level executives, there's a problem with the balance sheet, this whole group is under a lot of pressure. we're not going to go there. it's just too risky. we don't -- even down to 10 it's too risky. it just is. can we go to murt in michigan? murt? >> caller: hey, jim, a great big boo-yah from michigan. >> nice! what's happening? >> caller: i'm looking for some

excitement. what happened? did they forget about abbvie today? >> which one? oh abbvie. we were perplexed. it's been a big winner for us. it's come down hard. we think at 3.25% yield, it is really too cheap to let go. and we're k looking the to buy some or augment our position in the high 50s. but it took our breath away that people were so upset about one of their drugs not selling like they should have. we're in it for the hep-c. don't give up on abbvie. be a buyer, not a seller. pick stocks that make you money. things will be a lot clearer by the end of next week. trying to corral some profits? i got one. boot partnerbarn is up more than 10% since september ipo. and google's quarter sparked a knee-jerk reaction that likely cost a lot of people a lot of

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♪ back on january 14th josh in texas asked me about boot barn, the aptly figured bbot a retailer that became public land anded at over $16 a share and has since rallied $16 and change. i've got to do more homework. now i've done the homework and it turns out that boot barn while a small speculative stock, is absolutely worth buying if you're willing to take some risk. here's the company that's the

largest and fastest growing retail chain dedicated to selling western and work boots, apparel, and accessories in the country. 166 stores across 26 states. boot barn has very little in the way of competition, with twice as many stores as its next-closest competitor. and like so many other footwear plays, there's not a lot of fashion risk in this business. when you're shopping for work boots, you generally don't care what's in style this season. hey, don't i know it? i'm hardly styling these days. all right, anyway -- all right. soupy sales as a foot puppet. and believe it or not, boot barn -- it's friday! give me a break! -- actually has a pretty large addressable market. considering the western wear here in the united states think about cowboy boots. ow plantar fasciitis, too. really great. is worth nearly $8 billion and

still growing at a 3 to 5% annual clip. meanwhile, the market for workwear including boots, is worth $12 billion, and it's growing at a 2 to 4% pace. so altogether, boot barn's addressable market remember tam, the total addressable market comes to $20 billion. as of right now, they have just 3% share in western wear and a paltry 1% share in work wear. to me, that means this country still has a ton of room to grow. it's a concept. in fact, boot barn has a number of highly visible growth opportunityings opportunities, which is why i was willing to recommend the stock after i did my homework. in fact the company currently has 166 locations. management thinks they can ultimately grow to a number over 400 locations. that's a big runway. as big as shake shack is talking. that could provide boot barn with years of growth. and frankly, i think 400 stores a pretty conservative target, given there's plenty of demand for its product and the company is still under-penetrated in many regions of the country. i think boot barn could double its store count by growing its

new stores at a low double-digit clip annually. you might think a chain that specializes in cowboy boots is maybe too niche a retailer but the fact is that 45% of boot barn's ecommerce sales comes from places where there's no physical stores. there's a ton of demand for boot barn's products even where their brand awareness is practically nonexistent. and boot barn has a lot of white space in this country, especially the southwest, and the lest most third of the country, from california up to oregon, and out to montana and new mexico, natural boot places. and even in places like texas, where boot barn has a fair number of stores already, plenty of room to add more. plus building a new boot barn is pretty lucrative. i thought that these were some amazing statistics. over the last three years, the company's new stores have generated 41% cash-on-cash returns in the first year. that's an excellent number versus almost every retailer i follow. the difficult new boot barn has a payback period of just 2.3 years. meanwhile, the company has a consistent track record of

growing its same-store sales, which have been positives for last 20 consecutive quarters. wow, not a lot of 'em can say that. this is an inherently stable business. boot barn should be able to generate 6% same-store sales growth in 2015. again, not too shabby. better than the average store. on top of that the company is currently trying to build out a high-margin accessories business selling bags wallets, jewelry, and gifts to fill in gaps in its current product mix and position itself as a one-stop shop for all your western and work wear needs. boot barn is also moving aggressively into private label, which we know you know, from the likes of a kroger, it's a -- or perrigo, it's terrific for a company's profitability, because store brand private label products carry much higher margins than somebody selling somebody else's brand of merchandise. specifically the margins on private label merchandise, they're 1,000 basis points higher than for the third party brands. that is gigantic. right now, boot barn's private label products just account for 7% of sales. management thinks they can grow this number to 15%, as they introduced new private label

brands and more product extension. remember, kroger has as much as 25% product brand. and while ecommerce only accounts for 4% of the company's sales at a moment the business should be able to grow at a rapid 20% clip going forward, especially as boot barn updwrads its mobile site and continues developing a better omnichannel strategy. now, not only do i see boot barn sales rising as the company expands all over the country, i think its margins will be able to steadily expand and again, hedge funds managers love expanding margins. at the moment boot barn has an 8% operating margin. that is not that good. i bet they can get forth of 10% in the not too distant future. that would be pretty good. some of that comes from the increasing private label that i mentioned. some of it has to do with improved supply chain. they ship more product overseas. so if it's a product of an economies of scale, as the company continues expanding the size of its store base and they can, therefore, advertise all those costs over the bigger broader base of stores. all that said you know this one's still speculative. why? first of all, it only has a tiny

$520 million market cap. i think you become a larger player. but boot barn's already the dominant retailer of western wear and work wear. it has twice the number of stores as its next closest competitor, and more stores than the next five largest pure play competitors combined. this is a highly fragmented market, and boot barn can also grow via buying some of its smaller competitors. there are still thousands of smaller independent mom and pop outfits in the space, and if we've learned anything over the past 30 years, it's that the big chains ultimately put these mom and pomp players out of business sporting goods, pets. you can go right through what we call the verticals and see how the large chains whether it be home depot, they all end up destroying the smaller guy. boot barn is going to be a destroyer. let's don't forget, much of what boot barn sells falls in the category of necessities. this is how this retailer manages the to sell 89% of its merchandise at full price. i find that incredibly. they barely have to discount anything to move product. most guys have to continue to cut price just to get people in.

boot barn is competing in one of the least competitive segments of retail. and they benefit in the collapse from the price of gasoline given the average american household almost $1,000 extra of discretionary income. boot barn trades at 20 times 2016 earnings estimates, but given the consistent same-store sales, typically this would be setting at around 29 next year's earnings. that's not bad. that would make this a $25 stock. that would be up roughly 25% from where it's currently trading. that would put boot barn in line with other high-growth retailers like lieu lemmon or ulta salon. and my charitable trust owns lulu. i think you can go much higher. but one major caveat. boot barn rootereports next wednesday. i want to make sure you know this. i would not recommend it to trade in the quarter. we don't do that kind of.

if you like this story, you can bust buy half your position before boot barn reports. and if the company somehow disappoints, you can use the ensuing weakness to buy more at a better price. i think i have a real good feel for the next couple of years. that's what matters long-term. here's the bottom line. if you want to speculate on early-stage regional national retail growth story with a lot of great, i think, you know, concept that no one else is after, boot barn might be for you. i think this fresh faced company has many years of strong growth ahead of it which is why it's worth buying at these levels. and you know what? thank you, josh in texas, for bringing it to my attention. you've got horse sense! all right, much more "mad money" ahead, including the expensive mistake many just made with google. i love what we're saying about this. i'll show you how the action surrounding this latest quarter is a lesson in how not to trade a stock. and big brother has a bad rep, but i've got a company that's using cameras to boost safety results. i'll do my own surveillance going off the tape. and biting into the shake shack

ipo to see if you should bite up some shares after it soared a monster 118% today. so why don't you stick with cramer!

okay. i'm sure many of you are wondering, what the heck is going on with google?

last night they report a big miss on the headline sales and the earnings estimates. and the stock initially plummets 17 straight points in after-hours trading. then a funny thing happened after the conference call. google starts to trade up. and then this morning, the stock exploded higher ultimately closing up $24 or 4.7% today, one of the worst days for tech in recent memory. quick aside. when i tell you not to trade off the headlines, not to pull the trigger on buying or selling until you've listened to the actual conference call this kind of action is exactly what i'm warning you about. if you sold google into its after-hours swoon last night, you probably feel like a moron. actually, candidly you are a moron. a real chowderhead, to quote mo or maybe it was larry. now, i've heard a bunch of explanations the today for why google, which we own for my charitable trust, managed to rally despite missing the thnl number headline numbers.

it's true, the underlying numbers were strong but it's not the main reason the stock went up. the big difference the big change here was management's tone on the conference call. that's why you've got to listen to not just read. in the past google has often behaved like it's too cool for school in these calls. they don't seem to like explaining themselves or how they're spending their money, throwing it around even if they sure spend a lot of it. in short, google has a history of not holding its investors' hands. and for many years back when google has consistently blown away wall street expectations that was perfectly fine. but lately as the company has gotten in the habit for missing the estimates and got a reputation for spending money like a drunken sailor that kind of attitude won't cut it anymore. which is why last night's conference call was such a relief and revelation. this time chief financial officer and chief business officer walked you through everything. they held your hand. they told investors exactly what they wanted to hear. that's why it really went up. first of all, even though the headline numbers were ugly google reporting 25 cent earnings miss off a $7.13 basis,

lighter than expected researches, the miss was caused by a mix of currency issues and a host of one-time items. and on the conference call he pain stakingly went over the details of the havoc caused by the dollar and each of the one-off costs to make sure we understood the underlying costs was actually pretty good. and that's that kind of hand holding that google hasn't given us in the past, but management seems to have learned the their lesson. and it worked like a charm. they explained how currency woes shaved off a remarkable $468 million of net revenue, even after their very aggressive hedging program. they told us how the company's new smartphone the nexus 7, was very well received. they had problems producing enough phones to meet demand which also caused a hit, even if that's a high-quality problem. then he went over the unusual one-time operating expenses that cost google more than $300 million, going through them one by one. again, unusual for google but it was right to do. however, the big news here was the way google discussed its

spending habit itself. management went through the whole process, going out of the way to explain that their investment spending wasn't just some random free-for-all. that's another big change. they used the word "discipline" about their spending, four times. i dountcounted them. he went through each item to explain why they were necessary, including the big opportunistic $900 million real estate purchase. beyond that, google indicated their spending growth could be more muted in 2015, people loved that, even going so far as to say they don't see the investments to give them the kind of returns they can expect including google glass, they'll continue returning money to shareholders. no one from google said the word "buyback" on the conference call, but i can tell you, that's what everyone who was listening was thinking. finally, this was crucial, google finally gave us a sense that they care about the stock price. that they care about the shareholders. again, another total 180 for these guys. let me quote patrick's response to a question about how other tech companies aren't ashamed to

reward shareholders with their cash. and i quote, i just can reiterate the same message thatty givethat ty i give on a regular basis, and that is, share price does matter. it matters to our board, to all of us. we're all shareholders in the company. at last, google shareholders have a reason to believe that management won't just sit there and let that stock languish. they want it to go higher too! >> hallelujah! >> they actually talked about wanting profitable growth. i almost fell out of my chair! google didn't give the impression at last that they were too cool for school. donate don't get me wrong, i'm not saying google was to buy today. but it wouldn't matter if the underlying quarter wasn't really robust. and when you look at the key mettics, and i'm going to go into them it was a pretty darned good quarter. on a constant currency better remember, x out the currency, google's revenue increased by 18% year over year. of course, google's core business is still selling

search-related advertisements. the key metrics are the cost per click, what they make each time you click on one of their ads, and the number of paid clicks. while the cost per click was a bit lower than expected down 3% over flat overseas currency issues, the aggregate number of paid clicks was basically in line, up 11% versus the previous quarter. crucially, last quarter's paid clicks improved by 3% sequentially. seeing some momentum. paid clicks rose by 25% year over year. increased by 18% versus the previous quarter. that is strong sequential improvement. people love that. at google network, which covers ads the companies help its customers place, paid clicks fell by 11% year over year, but their cost per click increased by 10% versus last year and 10% versus the priority quarter. that's a sequential acceleration. google's mobile business doing fine. mobile shopping traffic, doubling versus last year. meanwhile, youtube's on fire. surpassed 1 billion users. the average watch time increased

by 50%, and youtube's mobile revenue increased by 100%. there are millions upon millions of views of super bowl ads on you to know. and it's time to start aggressive monetization of the phenomenon. there's still a ton of room for them to cash in on what's the most undervalued asset they own, especially as traditional advertisers begin to spend more and more of their budgets on online video a trend i mentioned last time when we talked about facebook, which i want you to own. memo to google start making some major deals with big advertisers, please, rather than giveing away stuff. finally, google's problematic ad buying business where they help the advertisers get the best bang for buck is roaring. double versus last year. even after today's rally, what is google? is it expensive? only trades at 15.5 times next year's earnings estimate. thattic mas it cheaper than the average stock in the s&p 500, cheaper than campbell's cheaper than kellogg, cheaper than

clorox. even though it's far superior and has a faster growth rate and that's without backing out the astounding $64.4 billion of cash on google's balance sheet. that's equivalent to 18% of the company's market cap. i think the stock remainnin steal at these levels but i like it even more if it gets slammed the next time we have a market-wide sell-off, the way facebook did today for no particular reason. here's the bottom line contrary to the initial headlines, google reported a solid quarter. and management finally gave investors what they needed to hear on the conference call. a sense that there was method to the company's spending madness. and these investments will start paying off. the stock deserved to rally today and i bet it goes further. maybe much further. minaz in texas? >> caller: thank you for taking my call and thank you for your show. >> no problem. >> caller: i'm a new trader and i have invested in groupon, about 200 shares. can you please advise me on it? >> i saw an upgrade today of groupon, and i thought it's still too early. it's had a couple of points off the businesses. it's probably worth more in a

breakup than it is together but i can't get excited about it when i've got facebook at 76. that is a buy. 75.91, to be specific. how about mike in illinois. mike? >> caller: cramer, how are you? longtime fan, longtime holder of ibm. buy, hold or sell buddy? >> they had a big analyst meeting, a big analyst meeting coming up and at that analyst meeting, i may change my mind from being as negative as i am if they tell a good narrative. right now i'm negative and i've been right to be negative. i'm waiting for that analyst meeting. if the narrative changes, i might change with it. google it's not done going higher. >> buy, buy, buy. >> the company is finally giving shareholders what they want to hear. hey, much more mad, including my take on shake shack's phenomenal wall street debut. should you still take a bite after it surged more than 118% today? i'll give you my view. and cameras aren't just for surveillance anymore. i've got a company that's using them to boost safety and bottom

lines, with eye-opening results, plus a look back at the week that was and a friday edition of the "lightning round." stick with cramer!

is big brother watching in

your workplace? maybe not yet. but big brother style remote video monitoring could be the wave of the future. that's why tonight we're going off the tape to go to a privately held company that's pioneering this technology and growing like a weed. i'm talk about arrow sight, which provides a remote video auditing system that allows third party auditing of worker production, to figure out ways to improve safety and productivity. they already work with many fast food companies and hospital systems. where health standards are maintained is a very big deal. i think this platform could be a game changer when it comes to helping businesses become more efficient and implement were the health and safety standards. let's take a closer look with adam aaronson the founder and ceo of arrow sight. have a seat. when i first read of this i thought, why didn't i think of that? tell me how you thought of it? >> you know you can almost roll the clocks about 12 years when i started this company. and for the life of me i couldn't understand why

corporate america wasn't using video cameras the way that you know sporting the teams have been using it for decades. so we just said let's start a whole company around this. the two industries we have a primary focus on is food manufacturing and health care. and they both share a lot of risk factors, patient safety food safety, and they also have a lot of focus on efficiencies and productivity. >> but i'm on a call like just a regular customer service call it always says be aware that it might be recorded for monitoring. how come we care more about that than when he care about something like public health? >> you know it's interesting. i think that most of the companies out there have done as good a job as they possibly can with conventional methods. front line managers. and what we found is that by doing random sampling throughout the day, a great example would be in the operating room so there, as an example, we've been working with a health system a big new york state health care chain. and their partner, north american anesthesia, and they've installed cameras in each and

every operating room. and they're set at a low resolution, so you're in the going to be getting into patient privacy. and from our monitoring centers, we're looking into those rooms every two minutes, and providing realmtime feedback on safety measures, on efficiency measures, and the results have been terrific. and they take advantage of the fact that, you know, managers can't be everywhere all the time. >> when i thought of this i said geez malpractice insurance is such a big problem. you know it's kind of like when you have these -- when you have taser, you know, cameras and the police can avoid brutality charges. i mean those cameras can be used, then a patient, as soon as you can see that the doctors did everything they could, right? it's got to help. >> you know, it absolutely helps. and so the main focus in health care, in case of the operating room, is to avoid surgeries. to avoid surgical site infections. so these guys have been able to get their compliance rates to 90 to 100% by getting realtime feedback to plasma boards, text alerts, phone alerts. so you're getting a whole

advancement in safety, but at the same time, efficiencies are really important too. because you don't want to keep patients waiting or surgeons waiting. they've been able to reduce their turnover times in between cases by about 20%. >> i just thought that was so great. i'm trying to get, why are the meat packing companies a focus -- why haven't others -- like, why, just to use one that's in the news why doesn't mcdonald's have everything filmed? >> in the meat industry which is really the first market that we focused on they have a tremendous amount of you know, priority on food safety. >> right. >> so one of the great examples we work with a lot of large companies, cargill, jvs, one of the great food safety examples which came from jvs was, you know, let's get after in our beef processing plants, sanitation practices. so they were able to get their compliance rates to 99.7%, which reduced their e. coli rates by 60% in the first year they did this. that really sprung us into a lot of the food industry.

we're in about 60% of the beef industry and a lot of penetration in turkey and pork. >> i know you had 30% growth. is it possible? i know taser has the product for law enforcement. could someone else come in and dislodge you or are you guys -- is it greenfield right now? >> it's greenfield and it's very challenging. it's not just software and cameras and recording devices, you have to be expert in a lot of things. you have to be able to manage call centers, you have to be able to deploy and manage cameras, and you have to create amazing feedback mechanisms so that people can get instant information, right in their hands or on boards and so i'm not saying that you know, other companies couldn't get after it but it's a big step. >> but you've created an ecosystem, and that's exactly what people -- it's always a good mode. the ecosystem is a great mode. that's adam aaronson the ceo of arrow system. this is a private company, and you never when companies will become public but this is the kind of company that's intrinsically filling a need and that often leads to great success in business. "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, i don't know the name of the stocks or the caller. when you hear this sound, the "lightning round" is over. are you ready, skee-daddy. start with don in new york. don?! >> caller: yeah, boo-yah, jim. what's your take on fireeye. >> it seems like a sweep spot. let's go to jeff in michigan. jeff? >> caller: hey, dr. cramer. rockwell medical. >> everyone keeps hyping the stock and it ain't moving. don't buy, don't buy. john in massachusetts. john? >> caller: hello, mr. cramer! i just needed your advice on a stock that i bought probably around 14 and it's slowly declined to around the $10 range. it's sunopta. >> no, i don't like. whole foods has bottomed here.

let's go to nate in new jersey. >> caller: what's up jim? how you doing? >> not bad. >> caller: i had a question about ally? >> no, we're shying away from the financials. let's go to basil in georgia. basil? >> caller: a boo-yah from basil. my sector group. >> i like the tobacco stocks don't like the product, like the stock. i think that's a great value. let's go to mike. >> caller: big b-b-b- boo-yah from miami. how you doing jim? >> i'm shying away from the insurance companies. too much pressure curve. we're staying out of that group. let's go to doris in california. doris? >> caller: hello, mr. cramer! thank you for taking my call. >> okay! >> caller: i would like to know your recommendation on the stock, silicone motion. i notice that it is forming a

100 day, recently. >> i need to do more work on it. the semi-conductor group is in such turmoil. i do like scar works solution. that is not necessarily a similar situation and i like cypress. let me do some work. alex in florida. alex? >> caller: hey, jim, how's it going, buddy? >> all right. how about you? >> caller: i'm here in orlando, florida. i've got one question for you, man. how do you deal with dw pharmaceuticals? >> let's here what they have to say. they report next week. i'm in this for the long-term, but the idea that this is a company that has a product that helps epileptics children epileptics. i'll do anything for them. and that ladies and gentlemen, is the conclusion of the "lightning round"! >> reporter: the "lightning round" is sponsored by td ameritrade. hey, i'm -- oh did i do it too soon? oaks, darn. >> boo-yah, tim, this is tina! how are you dodd.

>> cramer you're the best! >> yes, mr. cramer baa b-b-b- boo-yah! >> spirited what's up. >> reynaldo in pennsylvania, reynaldo? reynaldo, go ahead. you're up. reynaldo? just one second. the board froze. >> jim and patty is filmed in front of a live studio audience. >> okay. >> because tomorrow's you know, the week that was. >> but i'm not going to be in tomorrow. >> all right then forget ain't. we'll change the whole show. >> do you have a hat or something? last friday we got a juicy $2 pullback in a very high-quality stock, as hershey was hit with its second downgrade in less than a week. if you can't tell it's in the

mid, you haven't watched the show along enough. it's a great-looking mid. god, it's great looking. look, i know i'm a huge hershey fan. honestly, i'm probably like addicted to the stuff. i'm a fan of hershey's kisses a fan of hershey's twizzlers. i mean, there isn't anything i don't eat of theirs especially good n plenty. believe me i bought all the twizzlers that was in the store for this storm. how else can you justify eating that much candy. stick with cramer!

delicious burgers, yes. but the stock may be a tad rich for me. that's how i feel about shake shack, the brainchild of the brilliant danny meyer, pricing its ipo at 21 bucks and opening at 47 today. i've known danny for ages and i wished him a hearty congratulations tonight floor, when the bell rang for shake shack's first day of trading. i think he would tell you i'm one of his most diligent guests as much as he's been a diligent guest here on "mad money." danny is perhaps the smartest person in this business, also one of the most humble and hardest working. i have no doubt that he and the ceo will do a magnificent job running my favorite quick serve change order. however, while i have a ton of faith in danny and his amazing team, i don't have much faith in the ipo process, as it currently happens in this country. i have seen time and again, that it has an inability to price merchandise of a particularly popular service or process or device in the first few days of trading or for the worst time to

buy these hot stocks regardless of how fabulous the underlying company might be. consider the last three restaurant ipos that doubled on their first day of trading, pot belly and noodles and company. just like shake shack, each of these stocks more than doubled on day one, but they all proceeded to lose you money if you butt into the initial spike. pot belly down 53% in the aftermarket, havoc down 16%, noodles down 27%. but shack's better than all of these, but it's a bit of a pattern. a company like shack shack has two kinds of shareholders, there are the devoted, the people who love to go there and will always love to go there, and they aren't sellers. then there are the owners. then there are the opportunistic people who got shake shack on the deal typically because they've done a huge amount of business with the brokers who parceled out the shares. the distribution of this deal is pretty much the classic way ipos are always doled out. the hitters get a bunch. and while a great deal may be placed in the hands of those who don't flip, a ton still goes to funds that the brokers want to reward for commission dollars. and they'll look the other way

if those funds ring the register. i know, the whole process is inherently unfair. why shouldn't the stock only be placed with those who love the company? why can't the buyers be locked up? why should anyone be rewarded with a stock who doesn't love shake shack! but it just does a lot of commission trading. but alas it doesn't work that way. and myer and his team are helpless to change the process, as good as they are. if you want to own shake shock, which is now a $1.6 billion company, that represents just 63 stores with 10 more on the way, you have to take a very long-term view, because it's valued so much more highly than any other restaurant chain, including cramer fave chipotle. that's a tough hurdle. if anyone can overcome it that person would be danny meyer. was shake shack is now valued at $28 million per share. a number that is applied to the admittedly vastly inferior mcdonald's who put a $1 trillion price tag on that $90 billion company. the stock has to grow into its market cap and do so flawlessly and quickly. and you have to let the flippers out to stabilize the situation.

if you understand all of that think you can take the pain of the flippers and take the risk of getting slammed if things don't go exactly according to plan, you have my permission to hold the stock. if you don't, wait a bit. history says you'll get a chance to i boo it later and lower. stick with cramer. the most powerful app or managing your portfolio from the palm of your hand. only vectorvest mobile analyzes ranks and graphs... ...over 16,000 stocks worldwide, everyday,... ...and gives you clear buy, sell, hold recommendations... ...on every stock; anytime, anywhere. vectorvest mobile comes free with your vectorvest trial. get it now! visit vectorvest.com/mobile to get started

tough week. anyway. i like to say, there's always a bull market somewhere, and i promise to try to find it just for you right here on "mad money." i'm jim cramer. see you monday!

>> tonight on the "car chasers"... >> so, what do you want to take to branson? >> flat 12's gearing up for another auction, and i'm going on a buying spree. [ engine revs ] it's got some cojones. [ laughter ] we're stacking cars and spending cash. hey, would 10 grand work? >> no, sir. >> but when i set my sights on a couple classics... i really hate to walk away without it, but i'm gonna have to pass this go-around. all right, you got a deal, bud. $10,500. ...i find out some deals might just be too good to be true. >> you know what? just something's telling me maybe i shouldn't sell it? >> really? [ engines revving ] >> i'm jeff allen, and i buy fix, and flip cars. along with meg, my partner in crime, and eric, our mad scientist, we're flat 12 gallery. my main competition is still my dad, the toughest negotiator