>> did you know what he meant by black teas quickly? yes or no? >> no. >> solar city. i'm in the finerman camp on the back of first solar. scty. >> i'm melissa lee thanks for watching see you back here tomorrow at 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, 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 is not just to entertain you, but to put it all in context and educate you, call me at nba n800-743-cnbc or tweet mm cramer. when we try to hide from china

we get whacked upside the head and the pain -- >> the house of pain. >> can be excruciating by stocks even if it's masked by the placid averages as we saw today. the dow slipping 48 points and the s&p .22% and nasdaq declining 1.9% and boy did it feel worse than that. for some stocks there was no escaping china whatsoever even though the chinese market rallied yesterday, we got news out of bmw that was extrapolated with negative pin action. quite upsetting. to quote a reuters headline, worsening chinese market could hit forecast. the article goes on to say that bmw which happens to be the world's largest luxury carmaker warned on tuesday that the financial forecast for this year could be at risk from any further deterioration in the chinese market where they've begun to fall for the first time in a decade, end quote, such as bmw that's squawking while the stock market really ails. audi, good company.

worldwide sales leader said the same thing not that long ago. ford and gm, we know they're struggling because their stocks don't go up even though they're doing so well here and their sales in china are hitting a wall and all of these companies made pretty intelligence bets on china and they were rewarded, rewarded right until the second week of june when the chinese stock market started its vicious downward spiral and you know what? it's been lockstep spiral down ever since, even though people don't think they should necessarily relate which brings us toddle fant in the market. apple. the cupertino giant recently reported a quarter where it sold 3 million fewer phones than the analyst community thought it would. a broad consensus is developing right now rightly or wrongly and i emphasize that because i don't know that the iphone missed the 3 million phones was almost entirely because the quarter encompassed the period of june 12th through june 30th when the shanghai composite peaked and then went into freefall.

every time we get bad news out of china like the doom and gloom from bmw last night it gets extrapolated and it reminds us that the most recent quarter perhaps included the july numbers then it would have been far worse than the $3.80 decline for apple which was down more than 3%. i totally understand this logic. china's been on fire for apple. chinese business growing at 144% clip and representing apple sales up from roughly 14% a year ago when people are saying why isn't it better than china. tim cook:out to say sales were strong in china that quarter and the presumption is they weren't strong for the last 18 days of june and after all, if sales were weak for audi and weak for bmw and the stabilization that we saw in the stock market has to be ephemeral because it's a gigantic pop-up from the government, then the numbers have to be cut for apple. estimates have to be cut and this is what the cognizant are

saying. i have no idea how weak or strong the chinese sales really are or how relevant to the bmw and audi sales they are. i do know that apple, the stock, is now caught up in the vortex of a really ugly chart, and i apologize to the good people of apple that we even have to talk about the chart, but it's what controls a lot of big money. what i'm not doing off the chart for "mad money" today, you would see a nasty pick the on graph and disparaging about apple and that's a fact of life whether you believe in that stuff or not and the stock is not for squeamish and it's both overowned meaning a lot of funds have it and too many analysts recommend it while too many institutions are overweighted and felt trapped. all i heard from people that were shorting apple or bailing from it. when i just took a step back and suggested that perhaps they take a longer term view, and accept that there may be some chinese weakness although it could be reflected in the price especially if the stock gets down to, say, 26% decline from

its high. that would be the same percentage that china accounts for apple's overall sales. you know what? they laughed and they have no idea of long term. long term, what the heck was i talking about? they just want it out ahead of others and i continue to hold the stock for my chieritiable trust and no one is listening to me on this. perhaps when it settles down they will. the companies that supply components into apple's iphone, the coattail so to speak, these are shared nightmares and investors are fleeing from the once huge winners like mad. headlong rush that's all china related and exacerbated by the most amateur of chartists would tell you are heredityist patterns that lead to much lower price peps remember, these are patterns and maybe things change, but i'm trying to give you the technicals and fundamentals that are really pressing down these stocks. that apple-china nexus may be news to you, but not news to those that have taken cue from the nasdaq composite.

what you're really seeing on days like today is the scarcity of solid hiding places that are not anything to do with china. first, there's the overall fear of the fed that was spread today when cnbc's steve liesman broke a story saying that atlanta federal reserve president dennis lockhart thinks the fed should tighten in september. i have multiple problems with this kind of thinking. i sau thought the fed was supposed to be data dependent and can we at least wait to see what the former data says since we heard from the fed last week that we need to see the data, and lockhart's comments caused the dollar to surge. remember, the strong dollar is bad for our market. it caused oil to turn down, and i know that's odd, but weaker oil is bad for the market right now and interest rates to spike higher and always bad reversing what looked to be a pretty decent rally. look, i get that it's not lockhart's job to pop up for the stock market, and this isn't china. still one day after the eighth anniversary of the rant about when the fed knew nothing and ahead of the financial crisis

and it is not lost on me that the same lockhart poked fun at my lant and dismissed it with laughter and that's according to the minutes two year ago. lockhart wanted the lez say fair strategy, it couldn't and he was wrong. i think if we had left things to lockhart then based upon how he spoke at the fed meeting wield have had a great recession and not a great depression. i think he might be wrong again. at least lockhart's comments did give us a dry run about what would happen on a tightening. we got more dollar strength and higher interest rates and instantly a lower stock market. stocks followed lockhart in lockstep. that's not a good sign, but it wasn't just lockhart's comments that made it difficult to hide. lots of people have been hiding in the insurance stocks betting that they'll go higher as interest rates go higher. the lockhart plan. when people think of insurance they think that they're in good hands with allstate as plain vanilla insurer as it get, but allstate reported last night and it turns out the results were

anything, but plain vanilla. you could say it's rocky road. as allstate said an increase in hours driven caused auto accidents to spike and they weren't really ready for it. i wonder whether text-happy drivers didn't play a role in this either. we got the best of both worlds. too much driving for -- and that was caused by lockhart's comments. investors were seek cover in the drugstores and it's a popular hiding place. what a streak they put on which is why it seems natural to buy cvs right into the earnings report which is what happened yesterday. oops, the pharmacy portion of the company rocked and people didn't like the rest of the numbers in front of the store including ones that would have been better if tobacco hadn't been pulled off their shelves so the target fell close to $3 and at one point it was down six. cvs reminds me of disney which rallied into a solid quarter tonight. it turned out not to be solid

enough. in fact, what makes days like today so unnerving is that the best places to hide turn out to be at least in the background that i have the highest risk stocks and not the lowest risk ones. think the biotechs led by regeneron and biogen or special situations like tesla and netflix and the latter rising nearly $9. i think the world of regeneron and you know i like netflix and last i looked they weren't the epito epitome of safety and the consumer package good stocks. actually, only one package good stock that's left doing well and that's clorox and that rally for a second time after its good quarter and now sells for an astronomical 24 times earnings like it's some kind of biotech and quite a feat for a 1% grower and it would aren't be up 3% to 4% even though the dollar wouldn't have been so freaking strong. ♪ ♪ >> super freakin'. hey, listen, it's a theme. the rest of the group got pretty much pummelled and i do like the way clorox delivered a quarter and do you buy it up a second

day? i don't know, that's not clear or you can hide your sneakers as underarmour, skechers soared today. each thou even though you know i do like every one of them. today made me feel like we were stuck in the ring with joe lewis who coined the phrase, you can run, but you can't hide. they weren't free of risk given how far they've run and how much safety they tend to offer. mark in new york. mark. >> cramer, brooklyn here, and a big fan of the show and your book "get rich carefully". >> relevant today because of the baxter breakup. what's up? >> caller: my question is about target. it's one of my largest positions. it's up about 35%, and i'm wondering should i look to take some off in anticipation of a market correction with the interest rate heights? >> think you have to take a longer term view of what brian

cornell. people don't want to hear longer term anymore, and i respect that, but i've been liking this target for 20 points and that is longer term and my charitable trust owns it and can it go down? every stock can get hit and i'm trying to think what target will be this time next year, and i think it will be higher. i think that's a reasonable thing to do in a shaky market. think about where longer term stocks will end up being. let's go to steve in new york, please. steve? >> caller: steve in new york. boo-yah, jim. >> boo-yah. >> visa and visa europe. any margin news? >> look, i think what matters is that visa just reported a terrific quarter and so did mastercard, by the way. talk about two excellent companies in the same business. that visa europe is good news. there's a lot of things that visa is doing that investing strikes good and the same thing is both visa and mastercard are doing incredibly well and when those stocks pull back that's a great opportunity. all right. you can run, but you can't hide. there is no -- just no escaping the bear in the china shop for

some stocks. today we realize there is a scarcity of solid hiding places and maybe lower. "mad money" tonight, it's the best time to be on a boat. some of the best brands on the sea. i have the exclusive with the ceo. ? i always say i have the smartest audience on the planet which is why i'm always happy to circle back on the names that you stump me with. don't miss what i discovered with under the radar bioteches and then i know you're absolutely devastated over the demise of gwen stefaphanstephan marriage, and it just unlocked serious value and both of which have been watching the show i think you would have nailed. stick with cramer. from autos to apple, china has a grip on our economy. how can you be sure to stay on top despite whatever curveballs may come? cramer's got the answers. his final take before tomorrow's trade coming up on "last minute mad."

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. i take prilosec otc each morning for my frequent heartburn. because it gives me... zero heartburn!

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♪ ♪ ♪ ♪ ♪ ♪ ♪ in this environment what do we do with a company that's basically the discretionary spending play. of course, i don't think so because i love mine. i'm talking about brunswick corporation, b.c., the world's top maker of recreational boat including my 17-foot boston whaler and billiards tables and fitness machines and we'll talk about that. none of these are small-ticket items. despite the fantastic brands, brunswick had a muted performance as a stock, and just

over 2%. perhaps more perplexing though, is the fact that brunswick delivered a strong quarter last thursday yet the stock got slammed down 2% in the wake of news and still trading below where it was when it reported. could this be a terrific bargain given the last quarter was an excellent one? consider that it earned their.05 a share and revenues came in higher than expected 6.6% year over year and despite, the company main thained the full-year guidance. let's dig deeper with dusty mccoy, the chairman to learn more about the quarter and mr. mccoy, welcome back to "mad money". >> i appreciate it. >> i'm thinking the conundrum is the stock is up big year over year, and i think that what i think happened is people said it's doing really well, and they kind of left it at that because to me this was a truly strong quarter for many different divisions. >> we're tickled to death about the quarter. we were up 11% on the constant currency basis and jim, as you

look at the stock performance year after year, every year when we report second-quarter earnings we go down a little and we report third-quarter earnings and we start coming back. >> and the reason i think it is is that people look at us as primarily a marine company and we're finishing the marine season and then we begin to worry about what's going to happen next year. >> do i want to talk about there are styles that came up. i didn't know this, outboard power continues to be more important than the marine market. why is people like outboard more? >> a couple of reasons, and more technology and in the past decade and any other type engine and they're getting smaller and more horsepower for displacement, quieter, slimmer, lighter and everything you want in an engine that we're doing in the outboard business right now. >> another metric they thought was important is apparently you are levered in terms of the overall number and we're still way below where we were in the great recession which i'm told they're drying up and the used

boat market which was a great and bountiful market has really come under a lot of pressure for supply. >> it is. that's why we're comfortable that the new boat market will come back. when we went through the recession there were a ton of used boats on the market and for any number of reasons and they were all personal and that market will begin to dry up and the new boat market will come back and we're relaxed out there. >> i think you're right. >> i want to talk about a division we don't talk about enough because you had an initiative that i thought was really, really interesting and you were in movement and corporate wellness and you've got the top fitness machine company. so integrate this with -- tell me how that's going to work with your fitness division. >> we don't think of it as particularly being with our fitness. that's where we put it right now from a reporting purpose. >> okay. what we're after is the 75% of people who either don't exercise regularly or are not chronically ill, but who want to be well and healthy until the day they die. >> how haen?

>> 75%. about 11% of the people exercise regularly in the world, and 12% or 13% of the people have two or more and they're working not to be fit, but just to stay alive and well. so we have 75% of the people who sit every day. >> okay. >> hour after hour and there's more and more evidence coming to light that says sitting is as bad as smoking. so we're launching a new business to get people up, standing, working, moving in the office workplace. >> like the standing desk that i have. >> the standing desk and it will be walking treadmills and we're coming out with really neat stuff they can't quite get to. >> the sales force at the walking treadmill and it's just a great idea. >> and standing desks are wildly popular. >> i like mine. >> sky fit and where does that fit into this past niche. >> we're the big boy in the commercial fitness arena, but as

we're looking at demographic trends people are getting older and moving into assisted living and nursing homes and the folks who run those sorts of operations and these people will be ambulatory as long as they can be ambulatory and we think there is a growing demographic there and it has a great particle lineup who helps people that need to be in rehabilitation who are a little older and not as strong and don't move as well and can't use the classic commercial equipment. >> that makes so much sense and i see the treadmills for people in their 70s, 80s and 90s, it's ineffective and too dangerous. >> it is. >> you have other equipment. >> we have other equipment and we have sky fit, and it is a perfect fit. it will be a great piece of our growth business as we look at the business going forward. >> it's a great portfolio that you have and terrific going forward. >> that's the ceo of brunswick. it was down second quarter and comes back up right after that. "mad money" is back after the

break. coming up, brushing up on biotech. cramer's doing a deep dive on some under-the-radar biotech plays with potential, but not winning any popularity contests, but could they be the next big thing for your bottom line? cramer's on the case coming up next.

now that we're approaching

the end of the summer it's time to address the homework that's built up over the last month and i apologize they haven't gotten to the stuff earlier. remember, this is the most interactive show on television. so when you call in about a bunch of biotechs i don't recognize or can't keep up with because of all of the different study, i consider it my duty to do the research and get back to you with the answers we deserve which is exactly what we'll do right now. so without further ado, on july 15, francine in florida requested about qur, and this is a gene developer like spark therapeutics. it is working to create gene therapies that can cure serious disorders in one shot. it's been approved in the eu for a subset of patients in lpld and that's a rare genetic disease that can lead to multiple attacks of pancreatitis and the drug is currently in phase three trials and the company has a pipeline for hemophilia and

congestive heart failure and it is a very big market. and uniqure has entered into a partnership with bristol-myers back in april to cooperate on cardiovascular therapies and they're getting $50 million up front after meeting certain milestones and hence yet stock jumped 47% on that news. since then it's given up the bulk of those gains and part of it happened because they did a 3 million add-on secondary offering and it's up from earlier this year. my view, it's speculative and not yet profitable, but you expect that, right? gener this me has the potential to be huge which will likely come to the u.s. some time next year. you know what? i think it makes uniqure something we're speculating on and francine, thank you for bringing it to my attention. next up all on july 15th, justin in california called about la jolla pharmaceuticals, ljpc. this is a dine otiny biotech, a like the category that's gone so good for us.

la jolla's lead drug is a therapy for patients with catachloromine hypertension where blood pressure drops to dangerously low levels and they have phase three results by the second half of next year and the rest of the company's pipeline is in a much lower stage. it's up 60% year to deet and up 200% over the past 12 months and up 800 pierce over the last two years. while it has a near-term catalyst and most of the is up idea is baked in at these levels. any negative piece of data would cause the stock to nosedive. i like la jolla, the pharma, the company and it's definitely good, but i don't like the risk reward of the stock of the company. you know what i kind of say? sometimes you have to say to yourself, i have to take a pass. we're too late on this one. then on july 21st chris in new jersey called about pacira pharmaceuticals, pcrx, i recognize the company because i live in jersey and major news about it had just broken that was causing mixed reactions so i

sent it to circle back after doing more research and couldn't make a snap judgment and it focused on the pain management space and most-surgical pain management and it is about its proprietary drug delivery technology, depo phone, which encapsulates drugs and releases them from a day to a whole month. the company's main drug on the market is a local painkiller that uses their depophone delivery platform to highly addictive openoid or oxycontin. of the 70 million surgery that take place in the country and if the drug are gets 8% market share it could present zero opportunity. it is a smaller drug in the market and used to treat a life-threatening complication from lymphoma, called lymphoma meningitis.

it has fallen out of favor of late and when chris called two weeks ago the stock was down 50% from the february highs and we know the biotechs fell not that much. >> they got the upper hand and when it started to likely to plateau this year which is certainly what oui seen so far. to make matters worse, this got hit from the subpoena from the justice department with the overaggressive marketing of the drug. that said when the company reported last week, the numbers were better than feared and the stock jumped 13% over the last few sessions and my view is pacira had gotten cheaper in the last six months and with no real catalyst and a potentially serious legal overhang and the juice is not worth the squeeze. >> last wednesday, lou in pennsylvania asked me about chiropharma. chiro pharma therapeutics, kpti, whose lead product is currently being studied for various types of blood cancer. the technology here is as

intriguing as chiropharma's drug works by blocking the expression of a gene found in cancer cells. basically it sabotages the cancer. and also being cited as a treatment for solid tumors, too. it is another biotech, and this thing is down 40% year to date even though it had a nice bounce and a secondary offering in january. this company is $246 million in cash. my view, i think you're getting a good entry point in karyofarm. and until the second half, not of this year and 2016. phase two is early, so far so good, but a long wait and last thursday greg in new york stufrmed me with progenic pharmaceuticals and it's $8 and focused on fighting cancer, especially prostate cancer.

it has a vast pipeline of diagnostic imaging products and just today progenics announced a licensing agreement with johns hopkins for another potential imaging agent that could be used in prostate cancer and they gave the breakthrough therapy designation on the phase two orphan drug for combatting ultra rare tumors that can pop up in a dreenl glands and progenics gets a steady revenue stream from a drug that's designed to relief constipation which the company licensed. i like the story here, but with so many of the great story, the stock is up 72% since the end of april and that's a big move to have missed since the copy of late and to an intraday peak of $11.15 last tuesday on the breakthrough therapy news before pulling back to $9.42 by tuesday's close, selling off by 10% the very next day. at this point you have to wait for progenics to come down even

more and i say pull the trigger if it falls down to $7.50. why at that price? i like a better margin of safety and finally, jerry in the virgin islands where i said jerry was coming from asked about array biopha biopharma, arry. so many of these are diny and that's one of the reasons i don't know them all and i try to know as many as i can. it has phase three studies in the works one for melanoma and one that puts a damp or tumor growth and one where they partner with astrazeneca which has an anti-cancer reputation and it can stop nonsmall cell lung cancer and differentiated lung cancer and a kind of melanoma found in the iris of your eye. the stock's been slammed 30% in the last six weeks and that's because astrazeneca has announced that a study of the drug they partnered on failed to meet the primary end point and that's such a negative for these stocks and it's only a small piece of the pie.

and the company set to announce clinical trial results for its two other big product candidates in the second half of the year and early next year respectively. i think array could be a bargain at these levels and it's speculative and be willing to take pain and volatility if you're going to think about owning it and remember it did have that partnership go bad at least on that one drug. here's the bottom line, when it comes to the speculative biotechs, let's go over them upon i like unicure and i like array farm and i considered picking up progenics, buzz as la jolla and pacira pharmaceuticals, i say stay away from them at least in the case of la jolla until it comes down much lower. let's go to corey in massachusetts, please. corey. >> caller: jim, thanks for having me on. first off, i need to say this. you've got to own apple, not trade it. i love the apple watch. i love it so much. oh, man, i'm telling you, it's awesome. a great product. >> just, corey -- go ahead. >> i just want to say, i mean, i'm not -- i am certainly not

oblivious to the fact that apple is going down. >> right. >> i just want that point. he's seaing buy, buy, buy apple, not saying that, but go ahead. >> absolutely. i bought some more today. on horizon pharma give wen the lawsuits, i think this is a great long-term growth story and i think it's a baby allergan. what are your thoughts on the long-term outlook? >> agree. i think the stock's had a run and it's caught up with the depomed and once you starting caught up on something like that, you're not going to get a clean move here. i think the stock will be solved and i share your enthusiasm longer term, and i emphasize that because once you're involved in this, boy do they tie up management. >> i have the smartest audience there is and you stump me on bioteches and after homework and when it comes to uniqure and

karypharm. much more "mad money" ahead including my health care play putting investors in the house of pain and how the heck do you plummet more than 10% today? don't miss my exclusive with the ceo and first ben and jen and now gwen and gavin. it seems everyone is calling it quits and not every breakup has to put you in the dumps. i have splits that are really paying off and even on an ugly day anda i brand new edition of the lightning round is just ahe ahead. so stick with cramer. a i brandf the lightning round is just ahead. so stick with cramer. brand new the lightning round is just ahead. so stick with cramer.

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geez, what on earth happened to hal yard health. it's the medical supply company spun off by kimberly-clark last year that makes prevention products for the operating room along with other medical supplies and the company has a faster growing medical device business. beyond that we own halyard health in my chieritiable trust which is why it's agonizing to see it go down 12% in the wake of the disappointing quarter and it really hurt. it delivered a 53-cent basis weaker than anticipated revenues that trend 6% year over year and it was down 3% even on the currency basis.

the prevention business was down 11% even as its medical device division managed to post 5% growth and what was dismay is it slashed the guidance in 2015 and the sales forecast. no doubt it was a tough quarter and to be honest it was worse than the previous quarter which wasn't so hot either. we had to ask, once the analyst finished cutting estimates and once the numbers become low enough to beat or should it be dumped and move on. let's check in with rob abernathy, the ceo of halyard health to find out about the quarter and the prospects going forward. mr. abernathy, welcome back to "mad money". >> it's great to be back and it's our third time on "mad money" in the last 12 months and i appreciate you on to tell the message. >> why your stock will not drop to the 20s. i think the estimates are still too high. i think you talk about the long term, but the short term, i don't see how you can possibly make these revised estimate, but i want to hear your side.

i don't hear buyback, and i don't hear acquisition and short term is more pain and i'm trying to figure out whether it stops at 20 or does it go to the teens? >> we have two businesses and a medical device business and a surgical and infection prevention business and the medical device business performed well this quarter and right on strategy where we'll transition the portfolio to more and more medical devices that are growing faster and higher margin. the problem we had this quarter was in the prevention products. we saw some price loss and we saw some market share loss and we're focused on turning that around in the short term, but we're squarely on task in term of delivering the long term, strategic shift toward medical devices. we're going to use a strong product portfolio. we're going to use our strong balance sheet where we've got cash to start doing acquisitions early next year, and we're going to continue to very efficiently separate ourselveses from kimberly-clark so that we can get on with doing those acquisitions to create growth within the company. >> how will you recover from the

prevention business? i know you said that consistent with our historical results we expect the fourth quarter to be stronger than the third quarter and a lot of last year was pumped up by ebola preventive surgical and that's going to go away, so why not cut the third and fourth quarter drastically rather than leave them up there? >> we actually sell more in the third and fourth quarter than we do in the first half of the year so there is a natural lift to the business over that time period. we've got some business that we expect to pick up over the back half of the year, particularly in our gloves and apparel area. we will continue to see strong innovation coming to marketplace. we rolled out a new surgical gown that we're very optimistic about its growth. we rolled out a new exam glove that's doing well in asia. we rolled out a new line of face masks that are taking off very well and a combination of innovation and stronger second half of the year historically will cause us to have sequential improvement in the back haftful year while we continue to focus transitioning our business to

the medical devices and see strong growth in medical devices over the back half of the year. >> should the company split again and just be in one business that's a cash cow and no growth rather than the business that is fast growth? >> no. the two businesses are very important. the surgical and prevention product generates a lot of cash and it generates over 50% of the cash and that cash is important so that we can start doing the acquisitions so that we can grow the medical devices both organically through the product lines that we have and through those product lines that we'll be purchasing. so the cash portion funds the strategy and it's important to keep that. >> the surgical prevention protection and the competition is stiff and it doesn't seem that it necessarily has the cash flow that you need to do any deals at least this year. i mean, maybe if you stock up some cash, maybe next year some time? >> no. we've got good cash. we have $114 million of cash on the balance sheet. we paid down 50 million of debt in this last quarter. we maintained the flexibility we need to borrow.

so we've got the position on the balance sheet so that we can continue to grow and do acquisitions, but long term, s and ip fills out a big portion of ourl portfolio and we have to get it back on track. it wasn't underdeliver. we have to get it back on track. >> i'm really focused on the estimates, sir, because this is twice that the estimates have been taken down really badly and i think that your shareholder base wants very much to believe in you, but when you over promise and you underdeliver you get this kind of decline each time. >> oh, absolutely, jim. i understand that. you know, the shareholders own this company and they hired me as the ceo to deliver returns to the business, and we're focused on doing just that. how are we going do it? we'll continue to grow the strong medical device business which is fast-growing, higher margin and we'll get focused on innovation and we're doubling our research spend over the next four years to get innovation back into this business and we'll make sure we shore up the s and ipo business in the back

half of this year and next year and we'll use the strong balance sheet to start doing acquisition to create both in the business and that's what i'm going to do to make sure our shareholders get return from this business. >> okay. thank you very much, robert abernathy ceo of halyard health. thank you, sir. >> thank you, jim. >> okay. missed twice. i screwed up on this. it's my fault. when you miss once, you have to be more skeptical. maybe this time the estimates are finally low enough. he thinks they are. if they're not, the stock will go still lower. "mad money" is back after the break.

it is time -- it is time for the lightning round on cramer's

"mad money,". [ indiscernible ] play until we hear this sound and then the lightning round is over. are you ready skee-daddy and we'll start with careen in texas. karen? >> caller: boo-yah, mr. cramer. >> boo-yah, karen. i'm wondering what your thoughts are on buying nutrisystem. >> the stock has had a very, very big run and i feel we're late on this one and i congratulate those guys are looking good and i would like underarmour with the pullback because i like the fitness connection that they've got. wow! let's go to rand ney new york. >> hi, cramer. thank you for taking my call. >> of course. so i bought lincoln before the earnings came out and the stock changed, is it a hold or a sell? >> you know, i've got to tell you, i'm getting tired of lincoln reporting a quarter that i can't understand and i could not understand this one. they've got to simplify the financials and i'm going to have to say take a pass on linkedin or sell it. let's go to mark in new york, mark? >> jim, a big boo-yah to you.

>> nice. >>. >> caller: paypal, double up. >> my charitable trust just bought some paypal today because it's gotten cheaper than mastercard and visa, but we took a small position and my hope is my charitable trust will buy it on the way down and not too aggressive because this market has gotten very hard. let's go to robert in california. robert? >> caller: jim, transportation stocks are taking a dump. the canadian national railroad, cni, is it time to dump this stock? >> no, no, no. i think it's doing better than a lot of the other rails and i don't mind canadian and you know i'm not a fan of the rails and we did put the vast majority of them in this sell block. marilyn in texas, marilyn. >> caller: hi, jim. thanks for taking my call. >> of course. >> caller: i want to know why amerigo went down the day after they delivered a terrific earnings report. >> i think people expected more from amerisourcebergen and i

agree with you and i think it's a terrific buy. >> lues a in colorado. >> i bought gw, and i need you to know i bought it at $79 a share. >> wow! you've got such a big gain, you know? bulls make money, bears make money, hogs get slaughtered and let's get a little bit off the table. that's a big game. and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade. like a custom screener on your desktop, that updates to all your devices. and you can share it with one click. wow. how do you find the time to do all this? easy. we combined every birthday and holiday into one celebration. (different holidays being shouted) back to work, guys! i love this times of year. for all the confidence you need. td ameritrade. you got this.

♪ ♪ we've been huge fans of the breaking up is easy to do school of thought here. all of the companies that could be poorly performing divisions and now i'm thinking about the halyard and kimberly clock at the top of the earnings cycle. most of the time managements want to unlock value by turning a complex, multi-division company in the smaller, single division companies that are easier to understand bite size. today we got terrific news from two companies that are determined to the breakup and baxter and donnelly are the latter that they were doing it themselves for ages, i've been pushing back to split itself up and that's something i even devoted part of a chapter in "get rich carefully." i wanted it to be a slow developing company. baxter supported it, and in the beginning of june, baxter gave a dividend, and made up of dominant blood franchise drugs

including the best compound for hemophilia. baxter gave back less than 20% of the new company because it is so darn cheap and so good that they wanted to keep in the game, but that's the way the rules are. we praised a breakup as a terrific way to get exposure in the niche business and someone was listening. this morning's shire, a very aggressive pharmaceutical company launched a hostile takeover. i think because they covet the company's rare diseases medicines and the $45.23, and an amazing 36% premium into the spratts on fear and it has to fend off the bid. even of a a higher price because shire's very fair favorable tax status and can boost it if the deal closes and baxalta, and you still have an 18% gain if you

own baxter and baxalta in the spin-off and congratulations to those who did. the cramer fave which knocked our socks off today with the decision to split it off into not one, not two, but three different companies always makes a ton of sense on their own. the remarkable ceo with the stand alone financial communications and data services company and a customized multi-channel communications management outfit and a printing services business, with the stock up 2.8% with the stroke of a pen. before this new configuration was announced r.l. donnelly did seem like a confusing mosaic of businesses. donnelly's got a hammer lock on the aspect of public company and dissemination and the multichannel management business can catch up on the desperate need of bricks and mortar retailer and that's the omni channel thing you keep hearing about, but the most exciting division will be the print services business which i think you can continue to consolidate in an industry that prints catalogs and periodicals and the

print space has little to no growth, but there is averagel opportunity for donnelly to buy in the industry and it will do so from the get go and there will always be printing that's needed. and the create to need structures that immediately unlock value and baxter and donnelly and breaking up is veryize toe do and very lucrative. i hope other ceos take notice of these bold actions these bosses took to bring out instant wealth for their shareholders. stick with cramer. ♪ ♪

all right. a lot of work to be done tonight in preparation for tomorrow's interview with bob iger, the ceo of "squawk on the street." most of the people are worried about the revenues and this will be the first time in a couple of years that the revenues did not equal the estimates, but you know what, a lot of people were waiting for disney to come in. are we supposed to flee now that it comes? why don't we wait until what they have to say tomorrow. that stock's been down endlessly and it is popping in after hours. you know what? maybe there's life to the internet after all because home away also reported a good number and that was in bear market mode and maybe they're switching. i like to say there's always a bull market somewhere and i promise to help you find it here on "mad money." i'm jim cramer and i will see you tomorrow.

(man) the sharks are back, looking for the best products and businesses america has to offer. if they hear a great idea, they're ready to invest using their own money... you're insulting us with an offer of 5%. i give you a little money, you give me a little money. you don't really want to make a deal here, do you? and fight each other for a piece of the action. you just bumped your offer up? you went up? yes, i just did. wow. but first, the entrepreneurs must convince a shark to invest the full amount they're asking for, or they'll walk away with nothing. we have other money on the table, as well. if you have money on the table, why would you be here? restaurants don't sell wine apparel. yet. do you feel like your whole life has led up to this moment? who are the sharks?