s a substitute. you can use maybe 2% to 3% of your portfolio to buy some in december. >> stock replacement. nice. >> believe it or not i think you should look at puts in september. >> thanks for watching. i'm melissa lee >> looks like our time has expired. i'm me lis salih. meantime, "mad money" with jim cramer starts 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. 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 want fewer days like today. my job is not only to entertain but to explain and tell you what's going on. call me at 1-800-743-cnbc. or tweet me @jimcramer. when i thought we were done worrying about the vicissitudes

of foreign lands, like the greek deal had ended our obsession with what's happening overseas, we're suddenly back in the soup bowl over again, but it a with china. the true proximate cause of the sell-off. s&p plummeting 1.07% and the nasdaq losing 1.12%. yep, the idea that there's big trouble in not so little china based on so some weak chinese orders and the stock market that we know is being propped up by the communist party, that's what lay behind the carnage. it's breathtaking by the way. it has us thinking something evil does lurk in china and china, some think it can take the whole world down with it. it's short term top in our markets at least until we get some clarity on what is going on over there. that's not so easy. i have no idea what the real situation in the people's republic and neither does anyone else and maybe not the people

running the country. that's the new emperor has no clothes theory. the vast majority thought that china was slowing. the totalitarian government will exercise control over what's going on over there. so maybe it's another head wind for the u.s. stock market and now china's front and center with thes a astonishing, breathtaking collapse of all raw goods. oil down for the astounding 12 straight weeks and that kind of thing says look out. maybe some things are falling apart. especially when copper iron and even platinum are falling off cliffs. the weakness is happening all over the globe except in the united states, that is. which brings us to our game plan. because the confluence of our robust economy with the problems overseas will really start to hit home next week. now, normally i start with monday's action. hey, first day of the week.

and then i -- well, i'll get there. but i don't want to bury the lead. on wednesday the federal reserve makes its rate decisions. and because of our very robust job growth the fed is widely expected to say that rates have to start going higher maybe in september. now, you have to give the fed some credit here. it held off tightening earlier because it was worried about the impact of a greek related disaster in europe and that's behind us. maybe the bulls will hope they hold off because of the disaster related to china. can the fed decide that we have growth without commodity inflation, so we're okay? or will the fed say we have wage in inflation, wage inflation and time to raise the rates. we can surmise that one of the reasons that we sold off so hard today even as the earnings reports last night were uni formally fantastic about for one, frankly, is fears that they'll be hawkish. a fed rate hike would send that super freaking strong dollar

screaming, i have to get dollar bills with rick james on them. it rules in a whole new negative coloration i'm about to go. in short, there's a heightened risk of a further rollover here. but this kind of sell-off will give you an opportunity to buy high quality stocks at bargain basement prices because the risk is not systemic. it's cyclical. a general feeling that we're teetering, hence the notion that we're topped out for now. here's how i want you to think about china. i want you tow this i of it as -- to think of it as the new greece and the possible woes of the most populous country on earth. you know what i mean. greece held europe hostage 770 million. and let's look at the earnings calendar on the off chance that what companies say might actually matter as opposed to what happened today.

hey, but it can happen. look at amazon visa starbucks their stocks did go higher. they might be the place to be. the problem of course is those three were about the only ones that went higher. any more amazons, visa or starbucks on the horizon? i don't know. looking at though, let's see. we get results on monday from northrop grumman. remember, coal is dead then this very fine company with a stock that's down 24% for the year isn't finished falling. let's see what they say about their other cargoes. we need to hear that housing related goods, chemicals, those stocks are so horrible. intermodals holding up. the last thing we need is a rate hike just when the industrial complex as represented by what northrop grumman ships is headed down. and the google of china, maybe they'll explain all is not lost

in the prc. anything google is well for the bulls because we know right now that china is feared. tuesday we find out if the housing thesis, the things are better than expected. holds up under close scrutiny. the household formation is causing a real surge. but the company has the misfortune of reporting right before when the fed speaks. we have an awful new home sale that throws the whole positive thrusting question frankly that was a stunner too that new home sales. so many cross currents that make no sense. then dupont. oh, my. the chemical stocks are plummeting, getting killed. we know we that dupont investors are restless after losing a proxy fight to put nelson pelts on the board. it was front and center issue for him. a weak quarter and there's some real fireworks. now, gilead reports oh man,

what a big week. i wonder if they'll announce they're making an acquisition from success of the hepatitis c cure. you have to just understand, the bulls need to hear something good about biotech. these are brought down by the etf. these stocks were crushed. it was real guilt by association, pin action, but if you own one of them, you didn't care what caused it. after the bell tuesday we get twitter's results. this is a company that's in the process of choosing a ceo. there will be expectations did we get one on the call. probably not deliver. also there will be worries. i believe over the lack of new users. i like the plans for the second half revamp. my charitable trust owns it but we'll realistic that they botched the last couple of quarters. one day the social mobile company will be up, probably not this quarter. wednesday we hear from facebook.

this stock, the "f" in f.a.n.g. facebook, amazon, netflix and google, it wouldn't surprise me to see a give up. a pull back you can buy some shares that executive after executive who comes on the show keeps saying an ad with them gives you the best bang for the buck. if the fed wants to tighten then we have to do more defense. right, we have to play more defense. the whole top is what i'm talking about. you know what that means? it means listening to proctor & gamble. and the former has been knocked down to levels that make it attractive longer term. the latter won't come in. by the way, that's a fabulous sign. so what i say is buy some mondo lease one of these days if it goes down. that's what my charitable trust wants to do. now, welcome to the house of pain that is friday. these are the worst stocks in the market. exxon didn't hold that level off the charts this week.

i have to tell you, this might be the worst market i have seen in oils for ages. exxon and chevron will tell us what is going on. these are two companies with the best long term view of oil. well, that say that we're in a new recovery it's cheaper to drill on wall street, meaning they want to buy a company rather than do more prospecting. oil is in free-fall related to china and saudi's pumping too much. these two companies can make sense of it. as tempting as the stocks look, i can't -- we have been picking at some of them for my charitable trust, let's just say it's nice to hear from sane companies about what it means for cried -- crude. i like to own my mistakes and i might be early in saying we are near bottom. then again, i'm sure you're thinking cramer is just plain wrong. this is about chinese pain, not earnings which makes the market feel -- i don't know when it

means good earnings mean so little. keep your powder dry about opportunities that present themselves that have little to do with the fed or china. as narrow as that list happens to be. why don't we start with questions from janet in washington. janet? >> caller: booyah jim, from d.c. congratulations and best wishes on your recent marriage. >> oh, man, the nuptials the good. the wife is okay. i was talking to her about the market and she said not to worry. but then again she was in the garden picking zucchini. i don't know if that helped. >> caller: listen, yelp what to do about yelp? i was down over 50% and i made the mistake buying it in the beginning. i don't know what to do. >> yelp had put itself up for sale and then took itself off. the business better start being run better because i don't think it is. i admit that this stock does not have the mojo and i'm being kind when i say that. we ought to go to mike in colorado. mike? >> caller: dr. cramer, thanks

for taking my call. >> man, thank you for still calling me a doctor. i thought i might have been in front of the medical board and pulled. go ahead. >> reporter:. >> caller: hey, the "mad money" staff is great. this stock, some of the other mlts have seen declines over the past several months so now that i'm recently retired should i remain in the mlp space -- >> candidly, this is not my favorite mlps, but i'll tell you this. there was a major fund right now liquidating all the mass limited partnerships because it was over lever and it has big redemptions. i have been at this game for 35 years. so i kind know where the bodies are buried. hey, no matter how good earnings may be, we are being held

hostage to china and the fed. they're putting the stocks in the house of pain but it's giving me a chance to buy some stocks at a discount. i'll unveil some of the best bargains in the basement. then biogen took a real beating today, seeking a monster 20%. don't miss my take on what this means for the rest of the market. and plus, what's the heck is going on with ryder? time to buy or a warning sign? i have the ceo. stick with cramer. you've got the game plan, but cramer's got a lot more. make sure you're ready to hear the opening bell. his final thoughts on the busy week ahead are coming up on last minute mad. >> announcer: 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?

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you know what, let's do

this. i always do this on down days. sometimes you have to stop and stand in and see what good management can accomplish. believe it north, today is one of the days. we fret constantly about what it means if china collapses. i can't rule t commodities in free-fall, all the negative data on the most populous country on the earth, i can't ignore it. china is larger than greece. i know that many portfolio managers now believe that china could unravel to the point where it could take down the rest of the world. i'm not as pessimistic. instead, i want to approach this whole chinese upending the way i approach anything that sends the whole market down en masse. i want to sell-off to buy the companies with the highest quality management that will be dragged down even if they have no chinese exposure whatsoever or if they're doing well in china. you know how i am by now. i recognize that the forces of the market are distinctly

negative. i have two eyes. commodities falling like a rock which indicates the chinese led regression in growth can pull down the whole world. we have strong hiring in this country and that means the fed is going to raise rates. great, make the super freaking strong dollar even worse. ♪ super freaking now ♪ at least you're getting it. the oil is rolling over in the unnatural way and i expect the hedge funds to go crazy. is that a sign of health? it's a sign of head winds. that means it's okay to have a lot of cash. we raised some for my charitable trust. but you have to be thinking about what happens when we come out on the other side. which brings me back to the idea of great management because you have to be thinking about who can master this environment. i'm talk about executives like jeff bezos, plank. you have to think this sell-off will hit amazon google netflix. they're giving you uniquely an

opportunity to take advantage of the moment. hey you know, that i can make -- they can make terrific buys off of china. go listen to the conference call from starbucks. i had a cup of coffee when i was reading it. they're talking about how china was going gang busters. it was decaf. starbucks is becoming a tech company that sells coffee using the most sophisticated methods of mobile communications to develop superior through put so it can meet demand. oh by the way, starbucks, a week ago the new chief financial office of google said it straight. it's not frittering away the capital. they have discipline. will china hurt it though? google doesn't do business in china, forget it. isn't it something you could get into amazon at a nice number. you know what, that would be terrific. kevin plank ceo of under armour

he has ambitions in china. he's taking stephen curry there. a bit of a beach head, he's not going to be hurt by china. you may get to buy under armour and finally there's netflix. it's not in china, when reed hastings opens up hidden dragon 2. i loved one. it's not getting hurt by china yet, it ain't there. no, i'm not being a pollyanna. here's the bottom line. the chinese ugliness coupled with the fed tightening and the super freaking tightening dollar thank you rick james will allow you to buy at prices you might not get otherwise. all right, i want to apologize. mea culpa i'm sorry to be somewhat positive. i ain't changing now. chris in ohio, chris? >> caller: hey, jim, booyah from ohio. >> i love ohio. i haven't gotten there lately though. what's up?

>> caller: yeah, i'm calling to query about the all mighty tesla stock. i'll be long when it comes to tesla but i wanted to hear your thoughts on the short term because they just came out recently and they beat the street's estimates on deliveries. and three new upgrades that came out with the model "x" that's just turn around the couple. but it was downgraded to a sell. with a target of around $2.10 a share. i wanted to know if you're short with tesla going into the august 5th earnings call or holding on to them? >> i'm not telling something drive a tesla. my daughter said you should buy one. this is a cold stock and i'm punting on tesla. people ask me about tesla, you know what? if you like it, if you like the car go buy it. i'm not getting in your way. listen, i know the forces at play are real negative. >> the house of pain. >> but you know what? there's another side to it. great management can master this environment and they have the

stocks that you should buy at a discount. much more "mad money" ahead including the shock decline in the biggest credit card companies. then ryder is beating expectations at wall street. but the stock still got crushed. see if it can get back in gear after my exclusive with the ceo. plus, are the chinese fears overblown? the biggest semiconductor ceo says it is. don't miss my interview with the top brass at cypress semi. you know what i would do if i were you even though it's friday? i would stick with cramer.

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was that you jason? it was geoffrey! it was jason. it could've been brenda. when the leadership of a market gets taken out lined up against the wall and shot, by a firing squad, you can't really expect to have is a good day. look take a look at the biotech stock. take a look at biogen, one of my favorites in the group. it reported an astonishing week number including a huge guide down for the multiple sclerosis drug. it was forecasting 14 to 16% growth and now they're looking for nearly 6 to 8%. just as important, the company's much ballyhooed alzheimer's formulation was not as good as we thought.

biogen's weakness pushed down the whole sector. because the group's connected through etfs that make -- that are made up of biotechs. regeneron is getting a lot of love for the anti-cholesterol drug that got approved today and gilead might do an cans to diversify away in the hepatitis c franchise, biogen wrecked the whole shooting match, they were clubbed. you may think this is silly, but as i wrote in "get rich carefully," you get the stocks that pull down collateral damage. today was day one. and it's not just biotech. take capital one. the banks have been monster leaders, because they're winners in the environment where everyone expects the fed to raise rates. most don't have branches in beijing, but they never do better in a rising credit risk

environment where more people default on loans. capital one in an attempt to expand quickly had to increase the loan business by 21%. talk about a piece of data that took your breath away. i had to read that several times. i didn't believe it. you think one of most important groups can rally, no way. capital one hammered for a 13% loss. tumbled the whole sector. then there's health care. how many times has this group saved us, saved us from a big decline? but then we get the news that anthem is buying cigna. somehow, both hmo stocks go down. cigna was down 8%. in the past they have gone up. both the targets and acquirers not down. this is a double whammy as health care mergers have been holding up this market. i know we still have some high

growth leaders, i'm not obelieveobelieve oblivious to them. surprise profit sent the stocks soaring 10% today. the quarter was mind blowingly positive and i think amazon can report a huge profit if it wasn't building out the network in far flung places like india where it's loved. i was amazed to hear that amazon prime day, celebrating the 20th birthday, put together as big results of the black friday. i could argue though that in retail amazon's strength is every other retailer's collective weakness. a zero sum brick and mortar there. you know my acronym, facebook, amazon, netflix and google, the last three have exploded. some think i should add an "s" with the "s" standing for starbucks. which reported remarkable quarter last night. 's a technology company that sells coffee. it is creating its own currency

with the rewards program and attracting new users. think of this, starbucks is big. they put up same-store sales of 8%. and by the way, no slowdown in china. maybe drink more coffee when the stock market crashes? but here we go again. it's about china. i mean i can't get a way from china. you can't either. all day we saw the pressure exerted by china son the natural resources. if you sell oil, and china using oil, you're getting hit by it. even consumer packaged goods into china you're considered suspect or just plain outguilty. remember my proxy for china. i said it over and over again on

this show. this company represents oil, copper and gold, it's the unholy trinity of everything bad. it's free-fall. which is crushing the stock. down another 9% today after a similar thrashing yesterday. do you know ironically freeport reported a decent quarter. it's all about china. down in the standing 40% in the year. it's only july. we just had the all-star break. what's going to happen? what do you think is going to happen in football season? the worst week since january, it's hard to make any headway. and the themes i have been outlines line f.a.n.g. that doesn't mean we should get too negative. here's why. if oil keeps going down and then the domestic stocks, restaurants, retail they can rally hard. they peaked when oil bottomed. other than the housing related plays they haven't done much at all. or oil can catch a bit. yesterday, the ceo of core labs he made some amazing statements

on this conference call. first he said that oil production in this country peaked in ill proandpeak peaked inpeak peaked in april. he said that the domestic oil flut will be over at the end of the year. he said the saudis and the russians are pumping full out and you can only do that before the wells get too much water in them. that's a natural issue that always happens when you pump too rapidly. imagine how hard -- thanks for nothing. if our oil production peaked and the saudis and russians have to cut back you'll see a rebound in crude no matter what happens with iran. if oil were to go back up people will feel much better about the global economy. they'd stop talking about china. remember it's the linchpin of negativity. we don't have enough leadership to mount a comeback. that's why it feels like a short term top. but we can't afford to get too negative either because every time we have done that in 2015 it comes back to bite us. i bet this time it will be no different. hey, why don't we speak to sonny who's in illinois. sonny? >> hey, jim, a big "get rich carefully" booyah.

>> oh man. you know geez, the big -- the four horseman of the apocalypse. >> caller: that's my favorite book. what's your opinion on sun core energy? >> the same opinion i have been saying in the 40th bulletin on oil, they're not going down yet. they're not being saved by yield. oil has to bottom 42 was the bottom last night. hey, that was some core labs report. i want to know more about what he's saying. follow the leader tough task in this market. leadership is lacking. sorely lacking. which is major reason why we got crushed today. don't get too negative. much more with ryder, it delivered a solid quarter in up

guidance. yet, the stock got slammed. see if it deserved the punishment when i talk to the ceo. and cypress semi is back in the house of pain today. is this the time to buy? don't miss the exclusive with the ceo. and then the lightning round, coming right up with cramer. (vo) rush hour around here starts

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all right. what the heck is happening wither here? yesterday morning they beat the earnings estimates and yet the stock is down 5%. ryder is a company that many don't understand because they still associate the brand with the consumer truck rental business. they sold it off two decades ago. the ryder is a leading provider of logistical solutions like fleet maintenance, outsource supply management. they have over 30,000 trucks. to give you a sense of the actual business consider what they do for cvs. ryder provides cvs with hundreds of dedicated drivers to meet the tight delivery schedules at their stores and support its supply chain expansion. by outsourcing all the stuff to ryder they save a bunch of money and they're doing business with e commerce company that requires

flexibility. when ryder reported yesterday, the market didn't care for it. so do they deserve the punishment or a misunderstood stock that had run up too much like so many we had seen? let's take a closer look with ron robert sanchez to find out more about the quarter and the company's prospects. welcome back to "mad money." >> thanks for having me. >> robert, i want to understand, i mean, you added a lot to your fleet. got a lot of new customers and yet somehow people feel that your revenues weren't where they should have been. is this just a misinterpretation by the market? >> yeah, i think revenue could be a little confusing because the total revenue line that you're looking at includes fuel which we resell about 300 million gallons of diesel fuel to our customers. as fuel prices have come down, that fuel cost and that fuel price has come down for us. it's reflected in lower revenue

and a lower price that we sell to our customers but the profit margin stays similar. so really the top line being down is all due to the fuel costs and fuel prices being down. >> all right. >> if you looked at the operating revenue that excludes fuel that was up 6% and up 6% across each of the business segments. >> that's good because we're confused because the revenue line did look weak. i said oh -- and i realized that's a pass through and that's a mistake. what i'm interested in even at the time we spoke to you last we mentioned cvs. when you talk about e commerce, those involved in e commerce they don't know anything about taking it from a to b but about the product. what kinds of companies are you working for? omni channel or stand alone internet companies? >> it's really both, jim. i mean, it's any company that needs help on how to get products from point "a" to point "b" is where ryder can come in

and help. sometimes we're working with traditional retailers and traditional companies that are now finding new ways to leverage e commerce and to move into the e commerce space and are looking for partners to help them do that. other times we are working with new companies that don't have the infrastructure and are looking for a company that can help them that has some of that infrastructure and can help them build out and start up their e commerce companies. >> this may seem to be an off the wall question, but a company that we had on a bunch of times called united rentals reported. it was a disaster. i'm wondering whether there are any complimentary issues between ryder united rentals because united rentals they took no prisoners with that one. i was thinking oh here's another rental company. they do the same thing. you don't really have a lot of overlap, do you? >> right, i think we got caught in a little bit of the downdraft. because united rentals rents construction equipment primarily and they really were impacted from what i understand from the oil and gas sector which had a meaningful part of the total revenue.

at at ryder, it's only 2%. so the rental business was up 8% and rental by the way is only 10% of the revenues for ryder as opposed to the united rental a much larger percent. but it's very healthy. we actually increased the number of rental units to add to the fleets because of the additional demand that we have. so we're dealing with a much broader part of the economy and of a customer base. really we're seeing a very healthy rental environment. >> all right. one last question. there are a lot of people who feel like just as the fed may tighten this week, that the country itself is getting weaker. i see the employment numbers. they look good. i see ryder's numbers and that i look good. there's no weakness going on right now versus three months ago, is there? >> remember ryder is primarily north america based. so we're dealing with product movements inside north america. if you look across the typical things that we look at to gauge the economy which is first and foremost our truck rental

business, very healthy, our truck leasing business where customers are signing to long term leases on trucks that's very healthy. we are growing that part of the business more than we have grown in decades. then our logistics and dedicated business the volumes with the customers has come up nicely also. so from our vantage point the economy is moving at a good pace. >> that's all we need. and i think that it was kind of a guilt by association, frankly, because i know the space and you have -- there's no real overlap. anyway, thanks to robert sanchez, ceo of ryder systems. >> thank you for having me. >> all right, look, people think that this whole sector is problematic. that's not true. ryder is not part of the sector but it as a service business that companies need. "mad money" is back after the break.

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>> announcer: lightning round is sponsored by td ameritrade. >> it is time. it is time for the lightning round. you say the name of the stock. i don't know the calls or the -- sell sell sell, buy buy buy -- when you hear this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy?

time for the lightning round. why don't we start with tony in florida. tony. >> caller: hey, jim, great to speak be you. i'm a former philadelphia boy, i love the sport teams especially the eagles. >> i love the eagles how can i sell help? >> caller: my question is about cesar. >> is a sell sell sell sell sell. >> ian in florida. ian? >> caller: hey, jim it's a pleasure to speak to a true icon. i'm looking for a view on a stock under ten, radiant logistics. >> we have to go with ryder, that's the best in show. we need to speak with dean in florida. dean? >> caller: jim, big fan of the show. my question is about pacific ethanol -- >> no no. >> sell sell sell sell sell. >> get rid of the subsidies and tell me otherwise. that ladies and gentlemen, is the conclusion of the lightning round.

>> announcer: the lightning round is sponsored by td ameritrade. fiat and unilever are not headquartered here so they're beneficiaries of the strong freaking dollar. >> the super freaking strong dollar. ♪ she's super freaky now ♪ >> thank you. >> freaking dollar -- strong freaking dollar? >> rick james, got it from super freak? >> i remember that one. ♪ >> jim, what can i do to get cnbc to rebroadcast "mad money" once again at the 11:00 p.m. time period so i can start my day and end my day with jim cramer? >> well, i mean, wow, is that over my pay grade. [ crickets ] we have a lot of heat on the show between candy. people blasting me on twitter. go and keep blasting me. i'll keep deleting you and i'm not reading you. this by the way is pulchritude.

>> i want to thank you and your team for everything you do for us little guys jim. you guys are great. >> team makes me look good every day. including heather gains. happy birthday. ♪ f.a.n.g.! >> f.a.n.g. is back. you know, white fang, soupy sales? no? >> soupy sales? >> yeah! where are you going? [ mumbling ] >> i'm not sure what happened there. >> what are you laughing about? >> i'm laughing at my twitter feed. people insulting me because i didn't understand soupy sales white fang reference. >> f.a.n.g.! the time. sup jj? working hard? working 24/7 on mobile trader, rated #1 trading app in the app store. it lets you trade stocks options, futures... even advanced orders. and it offers more charts than a lot of the other competitors do in desktop. you work so late. i guess you don't see your family very much?

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so right now what are we supposed to make of the semi-connecter space, at the heart of internet of things? specifically where does that put a company like cypress semi that makes controller chips for all kinds of machines like autos and other uses. they rallied 36% in large part thanks to the merger of equals that announced expansion last december. while they claimed up this march

since then it's been pretty down hill. it trades at 11 and change. but yesterday the company reported terrific quarter, delivering a 2 cent earnings beat off a 13 cent basis and in large part because we're seeing the synergies from the terrific expansion and merger earlier than most expected. cypress gave us strong guidance for the next quarter so let's check in with tj rodgers to hear more about the quarter and where his company is headed. welcome back, tj. >> thank you. >> all right, so we've got this merger. where it seems like pretty much every day since it's happened you're taking out costs, boosting margins and the margins of the company that you merged with are much lower than cypress'. can you ever bring them all the way up to cypress? i know it seems like they're halfway there. >> that's exactly right. we merged a 50% company with a 32 or 33% company and ended up at 40%. turns out gross margins aren't the end of the story. obviously margin on your selling price matters but it turns out the businesses we acquired that

we merged were flash memory business which is huge. 400 million bucks, and it turns out you have a very, very small operating expense associated with the high volume. so you make only let's say 35% on what you ship. but then your overhead is much lower like 25%. so the business the gross margins is going to stay down. we'll improve it by ten points but it's never going to get back to the 55% that cypress enjoyed but that's a okay. we'll make 20% on the bottom line. >> i want people to understand why this is happening and why it's synergistic. i'm looking at a terrific presentation about where the increased penetration of existing automotive markets, that's the internet of things in the autos. when we change -- when we by mistake change lanes and with ekind of get woken up by that that is a product that you make. right? that's something that almost

every new car -- especially the high end cars have. >> yeah. it's called aid s. advanced driver systems and the fastest growing segment of the automotive market growing at 15% of the year. automotive at 5% a year and you're absolutely right. it's cameras that look at things and can see lane lines and stuff like that. and we make chips that go into that both microcontrollers and memories that are required for the very complex programs that drive those microcontrollers. >> all right. we're very familiar with harmon. when you sell to a bmw or honda or mercedes, do you -- for infotainment is that to harmon or to those companies? >> it is through harmon. of our five top customers now after the merger, three of them -- three of the top five are automotive. one of the other ones being sony which everybody knows. and three of the top five are

japanese. so last week i was in japan and i was talking to nippon denso the supplier to toyota. they're the largest customer. they're important to us and we make things for them. they make systems and they in turn sell to toyota. >> now, there's an important divestiture that i understand from yesterday's conference call that's coming up with which is a company that we liked and talked about before the true touch. it seems like from the conference call that others have come in and mimicked it. you try to be in the lowest cost producer and people undercut but you will get a lot of money for it. what are you going to do with the money? >> we'll use it partly -- we have a buy back program and use it for that. and we currently have a little bit of debt. we'll probably reduce our debt. >> all right. now, your -- you have some china exposure. this is all anybody asks about these days the luxury market.

you're a shrewd guy and you're much more of a man of the world than i am. are you concerned that china is literally falling apart and in a command -- and the command economy could go to the dramatically lower level? >> no. i don't think china's going to go backwards. really what's going to happen and has to happen to everybody that succeeds, you succeed strongly for a while and then your rate of growth tapers off. china has a lot of workers. their wages are lower than other places you can go. their technology levels are rising every day. and china is a power house that's maybe having a little midterm correction but no there's nothing going wrong with china. >> last question. i was concern -- confused. this is a term you use constantly and i know that our investors want to hear about it. you do a lot of energy harvesting chips. is that to save power? is that something that everybody wants in their pcs or wants in almost every device? >> energy harvesting chips allow

you to run a machine without a battery. for example, you talked about the internet of things. well, that's exactly what it says. it's the thing on the internet. so for example in the future if you want a building to be more energy efficient, you might put a thermometer in an attic space let's say. and then that thermometer will tell you in the attic is hold or cold and you'll turn on and off fans and route air conditioning et cetera. you don't want to have to climb up in the attic to change the battery once a year. so what you do is you have to -- for that internet of things appliance, you want it to be powered with harvested energy. so we make power chips that harvest ambient light in the room vibration, if you're in an automobile the vibrations from just driving are enough to give you a little bit of power, microwatts. and heat if you've up against something that's warm, you can

get the heat out of it and use it for power. so by harvesting light, vibration or heat you can create microwatts of energy, tiny, but they're enough to cause an internet device to power up once every second and go back to sleep for another second. and what that'll mean is you'll make little boxes, throw them around and measure a bunch of stuff without having batteries and it will be wireless. it will all talk to mom. and you'll be able to know a lot more about your environment than you did before. >> those are the type of chips that we don't see, but we want. tj rodgers, president of cypress. i know this company has got the great yield and will keep going higher over time. thank you so much. good to see you, sir. >> thank you. this is the kind of chip that you want right now. not all cell phone which is all everybody wants to believe. it's industrial and automotive. i still like this stock as much as ever. "mad money" is back after the break.

can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing? ♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ the answer is yes, it can.

so, the question your customers are really asking is can your business deliver?

at ally bank no branches equals great rates. it's a fact. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda. don't miss an all-new "american greed" tonight. i repeat, i feel the market is toppy, because this has become the handbook of this market. that's never really good it says the force of the core leading the cause, the chinese communist party. i'd like to say there's always a bull market somewhere. i promise to find it for you right here on "mad money." seem jim cramer. see you monday!

>> narrator: in this episode of "american greed"... two grannies in jail ... caught on tape.... their cold-blooded murder for money plot is finally up. >> jimmy covington: they already killed two men and were gonna murder me. >> their story... is about to unravel... >> ed webster: they just fed them and housed them like animals just for the sole purpose of killing them. >> and it sounds just like something out of a hollywood movie... >> i think i still could not really get my brain around the fact that these two geriatrics had executed this guy.