to buy it. i like that 4.5% dividend yield. >> did you finish that thing? >> no beans. i finished it. beans we've got a problem. we have issues. the facebook. >> question. >> yes. 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 and i'm just trying to save you money. my job not just to entertain you, but to teach and educate you so call me at 1-800-cnbc or tweet me @jimcramer. it may not feel after today's action the dow gaining 18% and the nasdaq at 1.7% but this week -- this week is a minefield. that's right. this is one of the four weeks of

the year where we're overloaded with earnings information, most companies in the s&p report this week. remember that the professionals listen to every conference call check every model and do deep dives in each quarter which means that unless they get up at 4:00 a.m. and work until 11:00 p.m. they simply don't know about what should be bought and what shouldn't be, and i have to tell you, that's why a lot of mistakes are made. that's why i tell you at home to stop, look and listen during these periods. as we try to run the gauntlet created by the cacophony of earnings season. what's exactly in store for us for the rest of this week. tomorrow's all about apple and ten days ago the company made a major push into china and the worry is the sizeable chunk of buyers may have been margined out of this stock positions in the great crash of china and they migrate to the expense of iphone 6. not this quarter, since it

didn't include the chinese debacle and that's why it is so important not to trade off the headlines that came out which i believe will be terrific for apple and instead you have to wait to hear about the commentary about the month of july particularly in china. those that are in apple watch results. i'm telling you, they'll sell the stock immediately and the watch is still in beta form. of course, it's showing me the time in cupertino. thank you. and not yet driving traffic toward apple's phones. as you need to have an iphone to need the watch work making this a potential gain and not loss leader, but game leader for the sign-ups for the whole apple ecosystem, the success levels i'm seeing for the watch are off the charts each though sales are disappointing. my advice on apple with z for those of you who sold the stock is to hold apple until it becomes an expensive stock which is a lot higher than where it is right now and listen to the commentary about next-generation

products that are expected and there's a gigantic move over the last few days. microsoft also reports tomorrow and we're all wondering how quickly microsoft can get to its huge ambitions of being more of a cloud company. it's ahead of ibm which reported tonight for certain, but how much ahead? we'll find out. i will say this microsoft's last quarter was pretty superb and personal computers are now declining in the high single digits, more on that later, and that business is still super important to the company no matter what with the release of windows ten now upon us for free, no less. it would be hard for microsoft to position itself as cloud, cloud, cloud, which is the m.o. for aimes. we know about the painful write-off it is finally taken, but wouldn't it be terrific to get clarity about the prospects for the takeover of sales force.com? remember that? i doubt they'll get it, but would be the cloud company we all want. finally, chipotle has climbed 12% in the past two weeks which is too bad because when it

reports tomorrow it will be hobbeled by some supply chain issues and let's hope you can find enough humanely raised hogs and that's the problem with carity in as and faster same-growth sales growth as long as the belief that the company will talk about international expansion and new restaurant concepts. either way, the risk rewards will be made perilous by chipotle's recent run. it's the last conference call that's going to be led by outgoing ceo jim mcnerney who is retiring as ceo after doing a remarkable job and it's difficult for me to believe that the quarter will be a swan song and only if the yahoos take it down and some sort of herd panic that we have and typically in the first half hour of trading and that's been the case for the last few quarters. the long-term game plan is so ingrained that even if you mistakenly leave that mcnerney's retiring at the top of the aerospace cycle the stock is still worth owning and two stocks that have not distinguished themselves of

late coca-cola and american express and coke can surprise for very impressive expense control, good advertising and gains with the affiliation with monster beverage but american express while due for a bounce doesn't seem to have a handle on things at all. i prefer paypal even at these allegedly exalted levels. qualcomm reports to and all i can say is this will be one more reminder that cuervo and the chips to the cell phone companies and now expectations are exceedingly low, but be careful here as the stock often pops until guidance on the conference call pops the balloon. no need to be a hero and call the bottom on qualcomm. speaking of underperforming stocks we'll hear about how caterpillar and mcdonald's are doing on thursday and i think that both will be as upbeat as possible, but it might not mean anything and caterpillar has been generating impressive cash flow and the big mining and oil projects and they're being canceled left and right and you see the decline in oil right now through 50. the hope here is the commitment

from china for more infrastructure and remember the coal mining machinery company at the exact top of the cycle and the state of coal each in china's gotten quite bleak. mcdonald's got a bit of an issue and the ceo made a very successful turn overseas and he even has to deal with the disillusioned group of franchises in the country. as i said last week too legitimate investment starters and the former involvement at the turn in wendy's and the latter at burger king, two lesser properties than being in mc, this chain can be indeed fixed and that balance sheet allows for dynamite dividend while you wait. i like the risk reward from mcdonald's. after the close we hear from amazon, and i think it will be darn good because if only because whatever they do has brought so many loads of love from the analyst community lately with three different firms pushing it just this morning and expect more clarity on the model and a bunch of number bumps and netflix and starbucks which also comes thursday, and i find this one more difficult, and you know i

love the stock. it's outstanding the decline of the price of coffee is sensational versus what you pay at the store and starbucks is hurt by the strong dollar and it has more expenses as it tries to entice better workers. i think you need to wait and see at this point after the monster run. i also want to hear whether the huge jump in the best acting big pharma company eli lilly is justified by some results for its alzheimer's treatment. it's reasonable to conclude that the run in the sleepy stock came about because of the leaks of effectiveness of this product. it better be. because on friday we heard from biogen on this topic and the latter has been quite promotional they think it might have something here for alzheimer's. it will be an alzheimer's duel and we promise to follow up and friday we're looking for confirmation that the gains run last week and american reports on and it's got heavy integration issues and if they talk about tighter root structuring and lesser competition, i say go buy more delta. here's the bottom line.

it's a tall order week and one prone to costly snap judgments. don't make them. this is a learning week. don't turn into a gambler's paradise where the casino gets more than its fair share of winnings. let's take calls. ross in utah. ross? >> jimbo, a big salt lake city boo-yah to you. >> like that, what's up? >> my wife and i have popped a fresh bag of popcorn every night to watch the show. >> there you go. that's the right way to approach the show literally. >> we have a large position in solar and with the recent news this morning that sun edison will be buying it for around $2.2 billion, what do you suggest i do now and what do you think is the forward sector for the future? >> you know i've been a huge believer in sun edison and it's been my absolute favorite they think is the one to own, and i need to continue that and we have a very very big gain and i feel that what will happen here they're issuing some stock and some convertible notes and here's what i think.

own sun edison and that's the play, it really is. they've done a miraculous job, by the way and it used to be hated when it was part of the big semiconductor company. let's go to randy in arizona, please. randy? >> boo-yah, jim. >> boo-yah. >> what are your thoughts on barrett gold? >> no! no! the gold companies break even levels are way too high versus the price of the precious metal. if you do want to own gold as an insurance which i do think is right, it's the gld. that is the cheapest way to do it. these actual gold stocks with the exception of rand gold are just -- it just costs too much to take it out of the ground and go read the quarters. you'll see, they lose money on most of the prospects unless gold goes back to 1600 which is not going to happen. dave in illinois. dave! >> jim, steve carlton cramer a far cry from selling ice cream at veteran stadium. >> never call me lefty and i don't necessarily share his political views, just for the record. what's up? >> your pops would be so proud.

jim, one week for today, anthera pharmaceuticals, anth and they look over the next takeover target using receptos as a model of companies having one drug already on the market and one drug in phase three trials and anthera and two other companies were selected and the stock is up 18% today alone. what are your thoughts? >> i'm uncomfortable with that they did an equity offer on july 9th, and can't recommend that stock just on the takeover. receptos, they've done a huge amount of work on that company, saying that it did have the great new drug of its time and seeking it but i cannot recommend that stock on a takeover and not if they just sold stock within two weeks' time. the companies reporting this week are going to get the bums rushed. don't be one of those rules and take this as a learning week and at least stay for the guidance

part of the conference call and you'll make a mistake. on "mad" tonight, understand the rules of wall street. the takeover and we'll talk about receptos and celgene, the acquirer popped on the deal. i'll show you why that's rare and help you spot future winners in my ultimate takeover guide involving the fundamentals, and then it's a monster company that makes everything from splenda to stents, but should all those products belong under the same roof? i'm making my case for a breakup at one of the biggest names in business. plus the one thing you do not want in your portfolio right now. 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. miss something? head to madmoney.cnbc.com.

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last tuesday after the close of the market celgene, one of my most recommended senior

growth biotechs announced it was acquiring receptos and my favorite spike in the biotech for $7.2 billion in cash. normally when you see the deal you expect the stock of the target to roar higher which is exactly what happened to receptos. what you don't expect is the stock of the acquirer to rally almost as much but that's exactly what celgene did that first day and 7% and it has moved back since and it's now almost 10% since the deal was announced and that exceeds the amount paid for receptos for heaven's sake. how is it that celgene can see it soar into the stratosphere, for a company that doesn't have products in the market and any profits. if you want to know why celgene has run up so much and why it can go higher you need to understand the company's outlook and more importantly, its growth profile improved dramatically after a major transformation.

each though celgene's $232 per-share offer only represented a 12% premium versus where receptos was trading the day before, the fact is it's a 46% premium of where it was three months ago and not to mention where receptos was a year ago so celgene forked over a lot of money for receptos, and we know that this transaction is going to cost them money over the next couple of years. only becoming earnings neutral, not positive neutral in 2018 and that's right. no payback before then yet celgene's stock has roared since the deal was announced. why is that? regular viewers know that celgene is r with immunology and inflammation and especially oncology. the company has a number of products on the market like breast and pancreatic cancer and acute myeloid leukemia and special kinds of arthritis and psoriasis, but celgene still

gets the majority of its sales from the cancer drug that brought in an astounding nearly $5 billion last year and that's why this receptos deal is so important. even though it doesn't go off patent until 2027 in the u.s. and 2023 in europe and celgene's dependence on this one drug had caused a lot of people to worry -- about the company's longer term prospects and that's why buying receptos was such a brilliant move. [ applause ] >> receptos' lead drug candidate has blockbuster written all over it. it is a pipeline of drug and the possible best in class treatment for multiple sclerosis, irritable bowel, crohn's disease and a whole other auto immune abnormalities. it can do $8 billion in peak sales across this in the not to distant future. it gives it a blockbuster

franchise. the truth is celgene has made a number of efforts to diversify the portfolio, but the receptos deal is the biggest step forward in that effort by far. the m.s. and ulcerative colitis and they have explosive, medium term cat lit.alystcatalyst and once this drug hits the market celgene's management, can bolster the earnings by 2019 and they think they'll become a key driver by 2020, that's why when celgene announced it was buying receptos the company told us they could expect to earn more than 13 bucks a share in 2020 and it was hitting that market and making a big splash in m.s. crohn's disease and ulcerative colitis which is the reason why they recommended receptos in january and let's put it in context so you can understand what's going on here if they earned this in 2020 then here near the all-time highs, the

stock is trading at barely more than ten times its 2020 earnings numbers which means it's going to start looking darn cheap as we get closer and closer to what's known as those out years. when you think about it like that paying only $7.2 billion for receptos makes a transaction a steal for celgene and that's yet stock hasn't stopped running since the deal itself and why it's not finished going higher. this is a textbook example of the concept that what i call about rerating on the company and its share price is all about the earnings estimates and what we're willing to pay for the estimates and the price to earnings multiple and the p-e multiple and it's that equation that i'm always telling you about, and it's e, the earnings times m, the multiple and the share price that you're willing to pay. we know the receptos acquisition bolsters it in the out years pretty dramatically. what's more important here is that i think this deal will cause celgene to get a larger

multiple, the m. we know what they're willing to pay for the company's future earnings is very depend own the the growth rate. in the case of celgene, this is a darn cheap stock for biotech, trading 22 times next year's earnings estimates despite its phenomenal growth because the people have been worried about this. before this receptos deal was announced, celgene had promised the intermediate earnings growth, but the prospects were considered murky and the overhang, being waged by a hedge fund manager and the hedge fund manager challenged the patent from celgene and not because he wanted to make aen cheer, generic knock off of the drug and he filed the suit because he's short the stock and wants to knock it down. is this a great country for hedge funds or what? it lost the premium price attorneyings multiple and people were worried it might not have enough growth in the distant future and with the wonder drug and celgene has a much clearer

long-term growth story with highly visible earnings growth for the next decade and that's the kind of thing that investors are willing to pay a higher multiple for. celgene, a company that's thought of as an enterprise is the big-cap drugmaker and the kind of drug that portfolio managers, if the fed raises rates and investors have turned out on all, but the best of the big pharma stocks. so here's the bottom line. celgene's been flying ever since its acquisition of receptos was announced last week and if anything, i think the stock has a lot more room to run and wall street continues to rewrite the company's long-term prospects to the upside. what can i say? an incredible story just got even better. there's much more "mad money" ahead including my take on one of the biggest companies on the planet and how a breakup can take it much higher and then the black hole value of destruction. i'll reveal one of the worst investments, plus what soupy sales has to do after the

sell-off tp stick with cramer.

i've said it before and i'll say it again, johnson & johnson needs to break itself up! this time there's real urgency because last week the company yet again failed to deliver an upside surprise. we've now waited two years for. here's a company that is three different businesses under the same roof, pharmaceuticals, consumer health care products and medical devices. that's a pretty diverse product line with virtually no overlap, and as we've seen so often in the past i think these divisions can do much better separately than as one combined company that's confusing to manage or even understand. to me j & j is a textbook example of the parts being worth more than the whole which is why the company split itself up in get rich carefully and why i'm reiterating that sentiment as the stock's basically unchanged since the book first hit the shelves in late 2013.

so look let me just lay it out here. once again, the case for an urgent johnson & johnson breakup is here right now. first of all in recent years, j & j's pharma division has been the company's growth engine at a time when both the consumer and medical device has seen shrinkages being a real pain in the last couple of quarters. johnson & johnson needs to stem the bleeding from its medical device business and boosts sales as the consumer business while also sustaining the growth of its pharma business and it has been a -- it's called disappointing. how can they do it. i think it would be very difficult to manage a single company, i'll bet j&j can accomplish these goals if they split these up into separate companies and one for fast-growing pharma and one for all these famous brands that you see right here. the ones for the consumer even though it might seem like there's some logic to j & j having three different health care-related businesses under

the same roof the truth is a medical device company, a consumer company and a pharma company have very little in common with each other and very different manufacturing needs and totally separate distribution channels and in short, that means j & j is one company with three very different supply chains and that's not only nut, but also makes it very difficult for the company to figure out how it can cut costs and save money overall and from a management perspective it's also very hard to decide what to invest to promote future growth. if j & j were to split up into three separate companies and each one could drill down on its own specific customer base and figure out what works and i think j & j should take a page from abbott labs into of a medical device company that would retain the ad name and since that spin-off took effect in january 2013 abbott labs is up 55% and it has more than doubled, if you own both abbott and abve you own 40% since the

spin off, and even worse than the s&p 500 which is up nearly 50% in the timeframe. we're talking about a great american company not delivering. in short, the value creation from splitting a pharma company all from a medical device play has been enormous in the past and it's also allowed abbvie to make better decisions and i was able to buy cyclicals for $20 million, and j &, should have snapped that one up, but j&j i think it was too timity and abbvie where people thought overpaid and i think the pharma business acting independently could make similar deals going forward and that's why johnson & johnson should follow the abbott labs playbook, and as much i like the ceo and i do i have to believe that the consumer and medical device divisions would be better run on their own than lesser parts of a gigantic pharmaceutical company. at this point i wouldn't be surprised if an activist actually came in and pushes for

this abbott labs and abbvie-style transformation. most important, if johnson & johnson breaks itself up and it would be much easier for wall street to understand and wall street managers can want something simple and if you want a drug company, you buy a drug company. right now j & j has three different businesses under the same roof and that makes it hard for them to understand and extremely difficult for the analysts to model and that's what they care about especially in earnings season and that's what they're focused on but break it up and you'll have three very easy to understand companies that the money managers will flock to. so what exactly would a broken up j & j look like? it would abbe a best in class drug company and they have a host of potential blockbuster and development and metabolic drugs and anti-cancer compounds and mental health formulations including a new schizophrenia drug that was approved a couple of months ago and j & j have seven recently launched drugs

that should exceed $1 billion in sales and it planned to follow regulatory approval for ten new compounds for 2019 and in other words, to assemble such a robust pipeline and the celgene and radius health and g.w. pharma. right now j & j is being weighed down by the performance of the two other weaker divisions and if it would stand on its own it would get a much higher valuation and the growth start big pharma even if it's not a scorching biotech. next up the over the counter consumer division. j & j has a portfolio of very strong brands here. we all know them and household, think listerine, okay? band-aids, neosporin, tylenol, holy cow! among many anothers and they've been able to stabilize the business for years, but j & j division know its to lag its peers. do you know this was down in the last year where procter & gamble which isn't doing all that well itself after it saw

a.6% increase is as its own separate company, j&j,'s consumer business can focus more spending on more brain power on boosting sales and revitalizing plans without having to share rnd dollars with the other two divisions and i think the j&j business will be a takeover target for some of the larger peers who are fantastic with the brand names, splenda, well whatever. not every brand is perfect. finally, what about the j&j,'s laggard medical division, and here they have an orthopedic business and makes stents and catheters and a substantial surgical product segment, even though the medical device business has been shrinking it's still number one or number two by market share in many of the categories where it competes and it wasn't up to snuff. quarter after quarter the sales keep declining although much of the decline came from the diagnostics business and j&j has repeatedly said that it wants to grow the medical device

business which means spending a lot of money and money that jump-starting the consumer division. i think there's a ton of potential to unlock value here and it's just not going to happen unless that medical device business is spun off as a separate company, where it won't have to compete with funds like mouthwash and cancer drugs. based on comparisons, i think that this consumer business can be worth $10 a share. the medical device business, and i have the comps and the comparables, $63 and the pharma business, the strongest, and i think it might be worth as much as $78 a share which when you add it all up gives you the sum of the parts valuation of $151. that is a sweet and realistic plan that has to be obvious to management if it's repeated ho-hum quarters. here's the bottom line. if johnson & johnson wants to propel its stock higher it needs to break itself up and it needs to do it now. there's a dazzling pharmaceutical company buried in here and both the consumer and medical device businesses can be

turned around much more easily as stand alone companies. i think the value creation from the three-way corporate divorce could be enormous, and roughly a 50% increase from the $100 price where j&j went out today. let's go to terry in north carolina. terry? >> hey, jim, thanks for taking my call. >> my pleasure. >> caller: i own stock in baxter international, and i'm happy to say that i finally took your advice and have split the company. my question is i now own shares in baxter and the new company backsalta, and i would like your recommendation on both of those. >> i was there when backs alta and it is starting to come back. i think the combination of these two should both be held. i like them and i applaud baxter for doing the right thing which is what i want some other companies to do. how about colin in florida. kohl snin. >> thanks for having me on. what's the skinny on a kill

onpharma? is gill going to mesh with them? >> i would not recommend that on a takeover basis. remember how we work. i would never recommend a strock that didn't have strong fundamentals on the takeover basis because if there is no takeover you're totally hung. that's not the way i want to do business on "mad money." i tell you over and over again, breaking up is not hard to do on wall street. j&j, come on man, get it together. it's time to break up and create some new value. hey, much more "mad money," including wreaking havoc on a number of stocks right now and why i'm calling it a black hole of destruction. i'll reveal it straight ahead and what does soupy sails have to do with amazon netflix and google? my explanation will help you in the next sell-off and let's start with the calls with the lightning round that's coming up. stick with cramer!

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show trying to identify and explain key secular growth themes meaning long term trends driving whole groups of stocks higher, and i think the rapid rise in cybersecurity spending or the massive consolidation in the hmo space. however big secular themes

aren't necessarily positive. you could have a secular decline, and it's just as important to spot the long-term downturns so that you can protect your portfolio from any company that might be hurt by the slump and recognize what we call a value trap where the stock might keep going down but it doesn't get cheaper. that's why tonight we're taking a closer look at two of the ugliest themes out there in totally different industries. the secular declines in personal computers, and in coal. in coal to help steer you away from the companies that are being affected either directly or even tangentially. let's start with the black hole value of destruction that is the coal business. as i mentioned before coal production in the u.s. has been falling steadily for years from 2008 to 2014 domestic coal production fell by an average of 2.2% a year and lately the decline has accelerated dram eighticly with coal product down a staggering 8.4% year to date.

when it comes to coal the trend is not your friend and this downturn shows no signs of abating any time soon and that's because coal production is not coming back and thanks to the host of regulations and a rise of natural gas which is both cheaper to produce and cheaper to transport. coal is increasingly looking like a thing of the past especially since 94% of the companies coal-fired power plants were built before 1990 and they were courtesy of the new pollution regulations, of the coal plants that existed, 17 were closed this year and you have to believe more will be shut or going forward and although a considerable amount of power will come from coal in short, king cole has been dethroned. we've already seen dozens of bankruptcies in the coal space since 2012 with another prominent member of the group, filing for chapter 11 bankruptcy, and they traded a staggering $140 as recently as 2011. now the stock's been delisted and over-the-counter market for

pennies a share. another big coal producer alpha natural resources that traded in the 60s a few years back and delisted from the nyse. they've become difficult to own thanks to the weakness of coal which in the past has been one of the largest cargos and you can't ship coal by any other method. the mining equipmentmakers and this group's been crushed and while we've been see weakness in all sorts of match rl resources, the equipmentmakers in coal have been eviscerated and take joy global. a very good company and it gets its sales from coal-related markets and the stock is down 26% year to date and it's been more than cut in half over the past 12 months and caterpillar caterpillar, sure they've got good businesses but it's down in the past year and coal is a key area of underperformance, after coal mining equipmentmaker bucyrus is right at the top of the coal cycle although iron ore

hasn't been helped either. ♪ the unstoppable rick james. you might ng an advanced piece of personal technology like a personal computer would have nothing in common with a lump of coal the the commodity and you'd be wrong and that's because pcs have begun a different kind of commodity and they're experiencing a nasty secular decline and just about everybody has recognized the personal computer market is in the downtrend thanks to tab'lls that make owning a pc less necessary and the severity of the decline has surprised a lot of people and taking the breath away with worldwide pc sales plummeting 9.5% year over year in the second quarter and think about it that's a whole percentage point worse than the decline in coal. not only is this killing the personal computermakers with hewlett-packard down 24% year to date, and the company is splitting off in two different divisions and lenovo and asis the pcmaker is down 18% for the year but it's also crushing all of the componentmakers and

whether it's flash, dram and hard drives and take micron the ultimate commodity semiconductor and flash memory chips gets 30% of its sales from the personal computer space and that stock is down 46% for the year and that's after the big pop micron got last week on the news of an unlikely takeover bid from the unigroup. that's the big chinese semiconductormaker and when you're selling into a declining end market that has a big glut of supply your sales get slammed and your margins get cut to the bone. in fact the stock is pretty much back to where it was when it got wind of the bid and let's not forget seagate and western digital, down 20% for the year even intel, a best of breed company with phenomenal management can't overcome its exposure to the personal computer which is why the stock is down 20% for the year after what many people thought was an upside surprise and the positive from intel's growth end market and the data center and the internet of things are trumped by the negatives from a slowing pc business and it's pretty

telling when intel reported last week its fabulous chief financial officer, says it cut the an mall forecast from the mid-single digit decline last quarter to down high single digits right now. i don't even know if the altera bid, as smart as it was to make up the difference and here's the bottom line. there's nothing worse than the business that's in secular decline which is why you want to avoid anything with coal exposure and anything connected to the personal computer. the irony isn't lost on me. one of these items has billions of dollars in intellectual property involved and the other kills a lot of people from pollution. then again, the typewriter was mightier than the pen and where did you get that? solar power is a heck of a lot more efficient than fossil fuels eons ago. "mad money kwot "is back after the break.

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it is time -- it's time for the lightning round on cramer's "mad money." [ indiscernible ] play until we hear this sound and then the lightning round is over and are you ready, skee-daddy? we start with the lightning round and we start with mario in

new jersey. >> caller: jim how are you? >> real good. how about you? >> caller: good. alibaba alibaba. >> the only way i want to play alibaba and worry about the tax consequences and yahoo is a cheap way to play it because it's worth nothing after they get rid of the ali beena. kevin massachusetts. >> caller: thanks so much for taking my call. >> of course. >> caller: i'll be starting college in september, and i want to invest in my future and with stocks invested at highs, am i too late to the party? i'm really interested in underarmour. the stock ran up and it was languishing and it suddenly goes to a 52-week high. you have to wait for a pullback which the company will give you. there is a lot of heat right now because they've endorsed the right people but let's just wait until it comes in a bit. why don't we go to david in florida. david? >> caller: jim, thanks for talking to me. my question is on -- generic

cigarettes. >> we like vector group. i don't like to recommend tobacco stocks and philip morris had a good quarter and this one had a good quarter and 52-week high and again, i don't like to recommend them bii have to admit they're compelling on a fundamental basis. george in california. george? >> caller: mr. cramer big southern california boo-yah to you. >> excellent to have you on the show. how can i help? >> caller: my stock is wwe. >> i've been against this stock for a long time. i was right on the way down. i did not call a bottom and right now i'm too cold on the stock. i don't feel like i have a lot to offer. let's go to corey in massachusetts. cory? >> caller: jim, i just want to say thank you for the call on receptos. that was amazing. >> i appreciate that. >> caller: yeah. absolutely. my question is on horizon pharma long term? >> i'm glad you asked me that way. i talked to tim wahlberg this morning and he's the ceo and no doubt about it that the last two acquisitions were brilliant and i think he has to pay too much

to get it. that said if the stock pulled back again. yes! but at the all-time high i can't recommend it. how about we go to zack in washington, zack? >> boo-yah jim, from the nation's capital. i'm calling about onof your favorites, cisco. what should i do? >> here's the probe lem with cisco. everyone has decided they'll miss the quarter and i don't know where they get that. it's got a terrific new ceo, and i happen to think the stock is very cheap and it's got a good yield and john chambers is the outgoing ceo and we'll be able to get robbins and robbins will do a terrific job. i know that the stock seems stalled and do not give up on it. i like cisco. let's take another. let's go to martha in florida. martha? >> caller: hi, mr. cramer. i enjoy your histrionics every morning on "squawk on the street qwest ", and i never miss your unbiased opinions on stocks and bonds on mad money. >> thank you. >> caller: what can you tell me about anle. >> the ceo is leaving and i

liked it when mike farrow used to run it, and he was absolutely terrific. and the new ceo, i don't like it and i want you to stay away from it and that ladies and gentlemen, is the conclusion of the lightning round! >> lightning round is sponsored by td ameritrade. t's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. we're not rich but we want to be able to enjoy our retirement. futureadvisor has identified 9 best practices to help you retire sooner and with more money! i was leaving a lot of money on the table. futureadvisor uses award-winning technology to give you investment insights once only available to millionaires. just link your accounts

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no, siree. you had one glass and that's all you can drink for 25 cents. [ indiscernible ] >> in the old days we used to call them by their acronym, fang! i'm talking about facebook amazon netflix and google. the stocks investors reach for for virtually every sell-off and only philadelphia who recognized one of our own would think about f.a.n.g., and the famous soupy sales. people immediately started posting videos of the famous comedian puppet. what i can say? i know i date myself with this reference, but why throw away the older demographic and why not use youtube to reignite the love for the late soupy who always had his muppets coup to each other especially white fang. >> thanks to the conflicts of events and a predicted slowdown

of most other technology because many companies are linked to the secular decline of personal computers and the super freakin' strong dollar is taking up the -- super freak. the strong dollar's taking away the upside of the industrials that had been our leaders. don't forget we're going to get a rate hike this fall and that will further boost the dollar and hedge fund managers are trying to get ahead of the monumental change and we don't know if facebook will deliver when it went next week and amazon cut not one, not two, but three analyst pushes this morning which is reminiscent of what happened to the end in f.a.n.g. netflix last week after netflix reported some amazing subscriber growth, and i wouldn't be surprised if amazon's stock has a similar reaction since it reports on thursday and the stars seem aligned on the growth story which had been stalled stalled for a bit. the aforementioned netflix blew through the previous highs and

before carl icahn rang the register on a brilliant trade late last month and netflix is well prepared for a rollout which could mean a upside for its stock. how about google? what can i say? this company's been a spend a holic and any sign of spending discipline as it did last week when the ceo, and later morgan stanley exerted an influence that indicated it might be better to return excess cash to shareholders rather than spending on on pie in the sky projects and one even that the company might bring, believe me it's what drove google's stock higher and after taking a breather we'll be ready to roll again. it's not done. with the slow growth backdrop people are reaching for other junior fangs too. i see some nation farm team players like the company that's the brains inside the gopro and most of the sophisticated drones that are coming on and the newly minted paypal first started trading today exhibits high-growth prospects that won't be hindered by a rate hike and

the pharma apocalypse in the mix, biogen celgene, gilead and regeneron. new drugs matter to these companies and they're buying them or building them with e lack riddy. they won't be kept back with the strong dollar or the fed bent on tightening or a slowdown foreign or domestic. finally, i think it's safe to say that the inverted drug companies like valiant and valiant are much sought after the growth pharma plays. they're the two that cracked the code, the tax code that is and rapidly integrating them a at lower taxes bahhis on foreign earnings to show dramatic eps growth because of course, their headquarters are overseas and f.a.n.g.'s in the lead again and i'm not going to attempt to provide an akon imfor the rest and it won't be restrained by larger economic forces and you've now got your list. my advice is to buy them only when the market's getting hammered and not when they're running. they come back the fastest, but they go down the hardest, too. stick with cramer.

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it took tim morehouse years to master the perfect lunge. but only one attempt to master depositing checks at chase atms. technology designed for you. so you can easily master the way you bank. >> after the close, ibm rolls back its whole game from last week. speaking of disappointing, i do not think oil can hold 50 and it goes to 48 47 and there's always a bull market somewhere, and i promise to find it for you. i'm jim cramer and i will see you tomorrow!

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