mom. >> yay. guy. >> outstanding. robert in oklahoma city, right on. they're watching the show. i'm watching commodities. is crude, is this the capitulation in crude oil? i don't think so. that's what i'm watching. >> i'm melissa lee. thanks my mission is simple -- to make you money. i'm here to level the playing field for all investors. there's always bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you money. my job is to not just entertain but put it in context and explain and teach. call me or tweet me @jimcramer. does anyone remember yesterday? yesterday when oil went higher, the miners rallied, the

industrials roared because warren buffett brought a precision cast parts? judge big today's action, dow plummeting 212 points, nasdaq nose-diving 1.2%, nobody remembers! as all these positives were undone in one horrendous session for the bulls. now, last night i tried to be skeptical if not down right critical about the rally. suggesting it could easily be repealed as the week went on. i didn't know it would be repealed immediately. but that's because i didn't think we'd be dealing with a chinese currency devaluation that makes their goods cheaper to export and our goods more expensive to sell there. yet that's exactly what happened. i want to put it in context so you can benefit from it but also so you can be concerned as i am about it and know what could come. first, china, china's desperate. chinese communist government's trying to put everyone to work while at the same time putting an end to the widespread corruption in business and politics. we keep hearing that china needs

to grow its economy to 7%, and it doesn't like the so-called blow trend growth. however, much is really below trend we don't really know, opaque country. the people's republic tried explaining its way out of this, it tried infrastructure, build whatever it could, but it seems as if everything that needs to be built has been built. then china, they tried to boost stock market! to stir internal consumption. but it didn't put enough rules in place to protect the gamblers who boar reed huge amounts of money and sent stocks to ridiculous valuations before it cratered, wiping out the life savings of millions of chinese citizens. this weekend we learned that chinese exports dropped 8%. that's an astounding amount for an export-driven country. so the communist party resorted to a truly desperate measure, devaluing its own currency by almost 2%, an amount that might

seem like much from a country that's devalued before to stay competitive but this move is five times bigger than anything the chinese have done in the last decade. desperate. the market recognized what this means from the get-go, and it's a trade war! an that's why so many stock, including stocks that were very strong yesterday like apple and general motors, were so weak today -- >> sell, sell, sell! >> -- because china wants people to buy its cars, its phones, manufactured by chinese companies. the currency might not be enough to slow sales at our companies or their brethren, but it's the size of the devaluation, suggesting things are much worse in the people's republic than the bears might realize or they wouldn't be taking such extreme measures. that's why apple down wiping out the gains frommed last week and gm lost all its gains. i'm just using these two as

examples. there are dozens of industrials that could be hurt by this move. of course this has been a continual theme. we don't get tired of it. it happens all time. it's always followed immediately by the caveat that even though it's slowing other countries would kill for its growth as the slowdown is nothing more than a decline in the rate of advance, so to speak, meaning a 7% growth rate, deceleration, 5% growth rate. but what if this devaluation is a sign that china's only growing in the 2% or 3% range? kind of like, well, um, us. that means we have much more risk to the entire world's growth than we thought, and that's what's starting to get under my skin here. for example, if the chinese economy is in real trouble as a sudden devaluation implies, the raw commodities they reliably buys say bye-bye. that's the case for copper and iron in free first of all, steel too. they've been in a vortex of

agony. the house of pain has been inhakted by those commodities and this action shows that, you know what, not only are they not out of the house of pain -- >> the house of pain! >> -- it could be a permanent address until a lot of these companies are talked about, bankruptcies, reorganizations ahead for many mineral and mining companies and related companies that make machinery for those industries. but we now definitely have to include oil in the commodity vortex. chinese import only about 7% of the world's product. most comes from russia. however, if china is downshifting, some of that supply meant for them will have to go elsewhere. this surfeit comes at a terrible time for the oil producers in our country because the saudis are continuing to pump like there's no tomorrow. why? they want to wipe out our marginal oil and gas companies, send them into ruin, and they're going to succeed at this pace. that means the world price of oil has to go down even further, which it did today, falling to a six-year low, and send do you think those stocks that had been so strong yesterday. a couple bounced but i don't

know. once burned, twice shy here. industrials, oil, tech, the three best acting groups yesterday, the three worst today. now, we need to keep two things in mind. the first is good, down days, i like to give a little more of an optimistic tone. the second, let's call it worrisome. first, as i said yesterday, none of the companies with sinking stocks today has been in bull market mode of late anyway. yes's rally i proannounced it was a fluke. if the winners of companies benefit from the declining commodities do better when interest rates go lower. rates plummeted today, the commodities go down. you have to go back to the high dividend paying stocks, the ones with safe, meaning nonoil, 3% to 5% yields as they give you a much better return. in other words, it's time to circle back to those great consumer packaged good stocks we like so much. remember the ones i cited? general mills? pems coe? kimberly-clark. i'll go with kellogg for

heaven's sake, even campbell soup. or entergy like i mentioned yesterday or real estate investment trusts. domestic stocks with no chinese exposure can begin to go higher midday yesterday. that's the pattern after a blast zone. the next day collaterals. ore companies like google could still create wealth with a brilliant reorganization that shines a light on the real value of the company, dims the light on the parts of the company that you had to hide your eyes from. not just google glass. more on google later. there's another more worrisome china side we have to talk about here. chinese are desperate and they're not alone. japan to base the yen in order to stimulate exports. europe deliberately crushed the euro, still try did so to win over exporls, something germany pushed. they were huge beneficiaries of thor into euro strife.

the one thing these devaluations have in common, all of them, the countries behind them expect to take sales away from our companies both within our borders and outside them. they want to depress our exports anl boost our imports. and guess what, it's working? which brings me to what got me so concerned. our recovery seems real but it's shallow. other than employment, there's nothing strong about the recovery at all. it's true interest rates have been kept down for a long time, it's entirely possible any fed tightening could cause serious repercussions for all of our companies. how serious? it wouldn't shock me to see us thrown back to into a recession with the trade war declared against you and me, the companies, and our workers. the bottom line, if the fed doesn't take this seriously, if it doesn't understand the gravity of the trade war, it could do some real damage with a rate hike because of what's happening abroad. i don't want to start ranlting

that they know nothing. but perhaps it's time for fed's representatives to recognize if they are, indeed, that independent, as they claim, then the data from the rest of the world is almost uniformly awful. perhapsitis time they contemplate the potential systemic risk that comes from pummeling our economy from within. we could reprise the 1937 depression within a great depression, a scenario caused by the fed. it was caused by the fed back then, which also felt it had to raise rates because, come on, the worst had to be over. it wasn't. i don't know what could save thus time around. i just hope the fed sees it my way, because if they don't, things are going to get a heck of a lot worse before they get better around here. a am in florida. adam. >> caller: hey, jim. how are you? >> all right, adam. how about you? >> caller: i'm doing very good. very excited to be on your show. so my question is my grandfather put 5,000 shares of ett in my

college fund and he passed way in december 2014. since then the stock is down almost 20 points per share. what do you suggest i do? >> i think you should actually do what my charitable trust did right here, i would actually buy more. why? because they had a report last week that but stellar. they beat the numbers. they can raise the distribution. we do need people in this country. particularly natural gas pipe. that's what etp specializes at. the stock has been unnecessarily penalized by people thinking anything in the oil and gas market is blowing up. buy, not a sell. jack in florida. >> caller: boo-yah, jim. >> boo-yah, jim. >> caller: i'm doing my homework on csx. the old ceo bought two gas and oil companies a while back, looked like a bailout to me. but i want your opinion as to whether you think they have a 50/50 chance of going with the price of oil down like it is. >> yeah, well, look, they're

raising a billion dollars and for me to put odds on a company that's a big american company, amid it going bankrupt, is a little dicey. let's put hit the way. i don't like the stock. i don't want anyone in the stock. it has bounced once before in the great recession when it ended. it was a great buy. i am not going to take that risk and i prefer that you don't either. our recovery, listen to me, is shallow. the trade war is real. if they can do a lot of damage by raising rates, things could get worse than today, and i will have to be more negative, less skeptical, more just down right critical. on "mad money" tonight, the chaos continues. black gold sinks again. is now the time to search for bargains or do things get worse? my answer is next. identity crisis at google. there's something big you need to know about. what it might mean for the stock. and my exclusive with an etf player up an astounding 60% this year alone. why don't you stick with cramer!

currency catastrophe in china. interest rates at home ready to rise. how can you stay afloat amidst all the market madness? with the help of cramer. his "final take" before tomorrow's trade coming up on "last minute ma." >> don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.

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oil is in a deep slide today. >> closing at a new six-year low. >> it was a session that really only went one direction. >> oil is cheaper than water. with the pattern of the last few weeks reasserting itself today, the averages get crushed, price of oil plummeted to 43 and

change. the key level where it's bottomed twice before although oil closed at a six-year low, time to take a step back and consider the carnage in the entire oil complex. remember yesterday we saw major rallies in the oil and gas stocks as they bounce back from vicious declines. today, much of those gains were put on hold and in some points really wiped out. when you're dealing with a group of stocks that have been e ves rated like this group, the last thing you want to be is emotional. that's why we're going off the charts, which is completely unemotional with a brilliant technician who's the founder and senior strategist at explosiveoptions.net as well as being a senior technical star in this three-man team behind thestreet.com's trifeck ka streets newsletter. to examine what's happened in the beaten-down energy group especially chevron and exxon, eog, if you look at where these stocks are trading they're all substantially lower than where they were the last time the price of crude tested the $43 level back in mid-march. he thinks when it comes to the

higher quality oil names the technicals may paint actually, and i thought this was shocking when i went over it with him, a brighter picture. he said a brighter picture than you' expect at a moment when crude is getting crushed. some of that's because lang doesn't believe oil has all that much more downside from here. i want to you check out the monthly chart of the west texas media group. lately the price of crude has made monthly closing lows down at levels we haven't seen since the great recession in 2009. the williams percentage are oscillate. a tool used to determine whether secures are overbought or oversold is at insanely oversold levels which suggests oil is due for a bounce. if this oscillator work, we're due for a bounce. today we tested that key 43 level, which crude has rebounded from back in 2015, but we didn't get the bounce yet. in short, lang thinks it's going to happen. so, with that in mind, should we be thinking about the oil stocks? start with exxonmobil, the largest and most conservative oil and gas company on earth.

at first glance their daily chart seems pretty darn ugly. call that a downturn, huh? no kidding. looks -- that's like a praul in a locker room for heaven's sake. over the last week or so, lang noted the stock has been consolidating, trading sideways and just as important, even after yesterday's bounce, the williams percentage r oscillator is still about as low as it can get, meaning exxon remains oversold and lang thinks it's ready to rebound. again, you could say wait a second, was it ready to tloub? well, kind of. yeah. now, let's step back and look at exxonmobil's long-term monthly chart because lang sees a number of signs that suggests exxon might be worth buying longer-term horizon, please. first of all, the rsi, important momentum indicator, has fallen back to levels that we soont seen since the dark days of 2010. then he sees that spot where lang thinks many technicians are going to be looking to get on

board right there, okay? just like in the daily chart the williams percentage r oscillator is as low as it can get, all right? suging the stock's ready to bounce if the price of oil can just stop going lower. lang points out exxon has a powerful support going all the way back to 2012 at 76, all right so, so far so good, a little less than 2 bucks below where it's currently traded so that might be a good place to start the position. exxon down 22% from its highs, risk/reward starting to become attractive. let's not forget company has a aaa credit rating, 3.7% dividend yield, not worried about the payment of that at all, not to mention their other businesses like chemicals and refining are doing fine. some of the refining stocks at 52-week highs today. it's not totally hostage to the price of crude. next up, not as good as chevron. looking at chevron's daily chart, the last time oil was at 43 in mid-march chevron was

$100. oh, man. here, here, here. with oil a tat same price it's an $85 stock. the vel rant strength index and the williams r index, chevron extremely oversold. the lowest you can get, which is why he's saying it will bounce. i would point out it's been low the whole time neeps why i don't like chevron. how about chevron's long-term monthly chart? strong support just above 80. that goes all the way back to 2011. to me i saw the head and shoulders here, but he's looking -- he's not thinking like, that okay? now, that's 4 or 5 bucks below where it currently trades. it was lower than the dark days of 2009. that supports the view the stock is coming down too far, too fast. they have a notoriously big yield they're willing to defend. so picking the stock right here. how about an independent-based shale producer?

eog resources, owned by my charitable trust. take a ganlder at this chart. no doubt eog is down trading here. shocker. however, the stock just tested the floor, a lit bellow 74 this morning and bounced back up to 77 and change. that is quite a move. plus the stock's already $10 below the last time the price of crude was in the low 40s, all of which makes eog feel, according to lang, like it could go to 80. how about their long-term monthly chart? ever since the end of 2014, lang points out we've seen this massive sell tofg stock on high volume. currently eog stock is sitting on top of a 50-month moving average and the last time it tested this key moving average back in 2012, the stock rebounded smartly. it more than doubled over the last 18 months as the price of oil went higher. when you look at williams percentage r oscillator, the chart is very much in oversold territory. considering it managed to go

higher today, an interesting snapback, lang thinks this one is very attractive. again, i know the bears out here would say, oh, come on, jim, that's the biggest head and shoulder i've ever seen. lang is say right herings right now. last but not least, occidental. let's start with their daily chart, which is much better than you think. it's been consolidating, trading sideways at low pace for the past few weeks. consolidation, okay? probably thought it was straight down. no. consolidation. occidental has a higher low and a higher high and not many oils have done that. that's something technicians consider a possible sign. not only that, but their move average converse jens/divergence indicat indicator, that's the mack-d, using this to track trajectory, it's recently at a bullish crossover where the black line goes above the red. in fact, let me circle it.

and the index has been trending higher the last couple weeks. even as stocks are trading sideways. this is a bullish chart. there's a lot to like about it. but the stock faces resistance at 76. if it could get there, who cares. which brings us to the long-term monthly chart. they've been holding firm at a floor of support that goes all the way back to 2013. the momentum indicators have washed out, which suggests to lang stocks oversold and suggests to bail. if this works, it should bounce. downtrend line at the level, if they can break above 76, lang says that would turn the technicals bullish. all it needs is six points upside and the charts would go positive. if these oscillators work, this is a buy signal, a buy, buy, buy signal. and where i'd love to circumstance this will but here's the bottom line. despite today's climbs, the price of crude, lang suggests it might be time to start building

positions in a group that everybody's scared about, high quality oils, exxon, chevron, eog, occy. it's contrary to everything you've heard everywhere, it's cheaper than water! oil is on a verge of a huge collapse! but as charts proven by lang have prooufded more accurate than objections made by the fundamental analysts. what that's why this contrary view of the carnage, believe it or not, may actually be right. once again, let's circle this. if it works, if this oscillator ever works, this stock is a buy. much more "mad money" ahead, including what to make of the big google name change. tiff skinny on this thing. is the alphabet just a bunch of letters? you don't want to miss my take. cxs. and biotechs launching game-changing legs. why don't you stick with cramer!

cnbc "deal night." she won't hit the brakes until she's number one. >> i want to blast them away. >> and these sharks do it texas style. >> the investment is everything. >> and they take no bull. >> asking for $300,000 and he doesn't know his numbers?

is it insane that google just rallied nearly 30 bucks today on the news of a simple name change? hardly. in fact, i think the stock deserved to run a lot more, but then again, the market was horrible today, and give than google's a member of the s&p 500, you have to be impressed it

was able to withstand the onslaught of selling and enjoy a terrific move. alpha bid is the name, includes the profitable google and the unprofitable to warren buffett's structure for berkshire hathaway. but buffett has a number of disparate businesses under one roof. he spent 37 million bucks buying precision parts. no. i think for mar apt than an analog is the recent transformation of amazon. this rapid by growing online retailer constantly spends almost all the money it makes building out new infrastructure to dominate the world shopping to the point many on wall street have begun to sniff at amazon, suggesting it could never turn a profit. then this past spring amazon started breaking out how it's doing as a retailer and web surface company, and it turns

out when we got a peek behind the web curtain, we liked what we saw. they could be very profitable. that's a drag on the core business because jeff bezos needs to keep spending in order to take over the world. amazon stock was at 389 when it started breaking out numbers for the web services division, now at 527. at a time, by the way, the whole darn market has not been so hot. how about google? they've had reputation for reckless spending and totally unprofitable projects that obscured its lucrative and fast-growing businesses. then ruth porat arrived on the scene from morgan stanley with a reputation of being a stickler on controlling costs and a rigorous e valvaluator of what' worth spending money on and what's not. they have lots of forward-looking projects that shouldn't be squelched because a little nurturing and maybe they could pay off gigantically stay. the solution?

break them out like amazon did with its service. show where the money is going and why and let the core business shine within the holding company. that way people can understand what dpoog l really is and why it's worth much more than they thought. analysts could model how much an aid droid could make or media advertising and google search, the dominant search company in the world, 70% share. remember, the analysts are always desperate to put a number on the earnings estimate line. and then tell you how much you should pay for it. so how much should apple pay for alphabet with its newly broken out line items? it go an answer. a lot more than we've been paying, perhaps 25% more or greater given how profitable and fast growing the core businesses are. that means the newly transparent restructured google/alphabet could have a run much like we've seen in amazon since we found out how lucrative the company could be earlier in this year. if alphabet turned off the tap on the nonprofitable portions of

its endeavor, they would skyrocket. we can't judge it in the same negative way and mind frame we did before the reorg. that means, yes, i think it's not done going higher, maybe a lot higher. thanks to today's sell-off of china in the averages, maybe you'd get it for much less than you would have to pay. google is the only large capitalization international company i know that doesn't do business in the people's republic. i've always regretted that until of course today when a flailing china devalued its currency, something that means absolutely nothing to goog oral the newly minted alpha get yet could be terrible for every other tech company on earth. bill in new york, bill! >> caller: hey, jim. how you doing today? >> i tell you, i don't like days like today but i'm doing okay otherwise. what's happening with you? >> caller: well, listen, jim, a short time ago the ceo for integrated device technology,

idti, was on your show. he was praising the company. and it's been pretty erratic since then. there's no large swings in either direction. had a great earnings report recently, up 27%. but no positive reaction. and today the price is down about 6%. should this stock be held, jim? >> boy, bill, that's a great question. i was take quite take within the ceo when he came on the stock rant and they reported this simply beautiful quarter and the stock did run again but it's giving it back. technology is in the doghouse. but idti, they have the right stuff nape ear not just linked to cell phones. i would be a buyer down here. let's go to bob in illinois, please. bob! >> caller: hi, jim. i'm a first-time caller, a longtime fan and a life-long cub fan. i'm also a fan of stock spin aufs and i've done very well recently with a recent spin-off of a spin-off by baxter and prior to that abbott labs

spin-off of ab vx i. can you suggest or recommend any other such upcoming transactions, sir? thank you and keep up the good work. >> other spin-offs that could be in work. you know, front and center because that's one i have been recommending for ages. you know what i want to do? rather than off the cuff say, listen, i think this is the one or that's the one, let me do some thinking about which of the next spin-offs they were. we were very pro and i'm sure there are others. i don't want to short sight it. i will tell you the google slit split is going to give you one company that's good and one that's bad. maybe split those off and you can make a lot of money. let me spell it off for everyone. google is worth much more than anyone thought. the new and improved company isn't done going higher. get more familiar with the fall bet. more "mad money" and my etf that's um huge in the last couple months. and charles river labs is helping biotechs discover these

blockbuster drugs. is it the right prescription for your portfolio? and of course the lightning round! stick with cramer. tomorrow, kick off the trading day with "squawk on the street." live from the nyse. >> this call was -- it was like a call where you just said, i'm hungry. i just had dinner when i did this call. i wanted crinkle fries. >> it all starts at 9:00 a.m. eastern. at ally bank no branches equals great rates. it's a fact. kind of like shopping hungry equals overshopping.

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many of our viewers care passionately about investing in other countries but at a moment the dollar is super freaking strong, how can you benefit from rallies internationally? wetf, the industry leader in actively managed efts and the company that's figured out how to let you invest in overseas markets without being clobbered by the strong dollar. stock up more than 60% for the year and despite the downturn in the average, barely a point off its all-time high, a sign of strength. they reported a week and a half a ago and delivered a fantastic

quarter. more important, their assets, a key metric, increased by 72% year over year to $61.3 billion. let's take a closer look with jonathan, the president and ceo of wisdom tree investors, to hear more about what sets his company apart. welcome to "mad money." >> good to see you, jim. >> good to see you. we want everyone to understand, we're always talking about how the dollar is so strong and people, if they just go out and buy europe, basket of europe or go out and buy a basket of japan, it's conceivable unless they hedge, they could have lost money despite the big rallies in these countries. you've come up with a solution. >> absolutely. we pioneered about two years ago at the end of -- well, a couple years ago we introduced currency hedging in the etf format. our big success was in japan in 2013 when abe was elected, more

recently with drage doing qe or european exporters, hedj, has been the big success. >> on the show our philosophy, unfortunately for u.s. manufacturer, we think the dollar could stay strong, particularly if a federate hike occurs. how would you have done with those two versus plain out being without it? >> you would have lost much of your return if you hadn't hedged out the currency. most people don't realize when they buy international equities they're exposed to the currency, it's not currency neutral, they're long the currency. now the market, the etf industry is giving you a choice. >> how are you able to hedge? what do you use and how much does it cut back in the return you might get? >> these are extraordinarily liquid. the futures for the yen and the euro extraordinarily liquid. there's a slight positive carry. it doesn't cost you anything at the moment. it's the differential between the interest rates on the dollar versus the yen or the euro. it's a positive. >> last night china devalues.

>> yes. >> this has not been a focus because it's been very hard to understand, but say you self-index, what you did for china markets. would you now say you have to hedge and would you ever do the china? >> there is not a china equity currency hedge product in the market today. someone has filed for it. what we have done on china is we've taken out the state-owned enterprises, so china ex-state-owned interpries. a more capitalistic way to play china. >> that's good. >> absolutely. >> the ones opaque are not in there. >> exactly. >> explosive growth in barron's. they're talking about how they think it's -- baron's, unfortunately, they say the pace of your growth isn't likely to continue because of your concentration in the wisdom tree japan and europe. but in truth you've opened a bunch of others that have taken a lot of money in. the concentration is not as great as it was. >> we've gone through a series of concentrations over the years. the money will flow where the

money will flow. so about three years ago we were about 50% emerging markets, two year ago about a third in japan, now more broadly currency hedged is about 60% of the assets. we had a nice balance between dxj and hdgj. they offset each other to some degree. >> if you do believe dollar will get stronger, what are the ways you would best suggest that viewers get involved if they wanted to be in america or alternatively if they wanted to be in another country that could really benefit from a strong dollar? >> well, we have a strong currency etf usdu, which would benefit from a rising dollar. we have equities that are geared towards strong dollar environments, degrowth, which would be an equity for that, and then on the international side hedging out the currency would be the best place to get your exposure if you believe that a strong dollar's going to continue. >> okay.

last question. are you concerned at all about contagion, meaning that we have seen periodically that these hot-money emerging bond funds have gotten hurt? we saw that in '97 and '98. i know you offer one. is that something you want to offer for people because they may have a taste for it or you personally think it's too risky? >> we don't actually tell you what to buy and when to buy it. the whole etf industry is like a giant menu. we're offering choices for different markets and opinions. >> how do people know if something is a risk tolerance? >> since we sell findex, we create a lot of content on the website. wisdomfree.com, the ir site, tremendous amount of disclosure and information on the efts. >> okay. things can move quickly. you have to whole menu and have done an amazing job and it's the products that are making people money. that's jonathan steiberg,

president and ceo of wisdom tree investments. quite amazing. "mad money" after the break. >> first on cnbc, alibaba's ceo, instant reaction to the number, strategies for global expansion, and surprising china's market. plus big gamble in retail on "squawk on the street." it took serena williams years to master the two handed backhand. but only one shot to master the chase mobile app. technology designed for you. so you can easily master the way you bank.

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is it time? yes, it's time for "the lightning round"! >> sell, sell, sell! >> buy, buy, buy! >> are you ready? it is time for "the lightning round." cramer's "mad money." i am starting with carol in my home state of new jersey. carol. >> caller: hey, jim. boo-yah. >> boo-yah, carol. >> caller: so, aqua america, i inherited quite a bit from my mom, 200,000. >> wow. >> caller: it's a quarter of my long-term savings now. she said it's golden, don't touch it. i -- >> it's a consistent stock. it doesn't have a lot of upside, frankly. it has not worked out the way i first thought it would, but it's not bad. as far as i'm concerned, you can own it. but a quarter, know. we don't like anything to be more than 20% so trim that back a little. i know your base is probably low. pay the tax, cut it down. grant in california. grant.

>> caller: jim, we sure appreciate you and your staff. >> thank you. >> caller: i've been free throw following a stock, lsft. >> another mission critical software company like so many of them. let me do more work on it because it's a swiss company and i got to figure out whether it has, like, currency exposure. i got to come back on that. let's go to brian in new jersey. brian. >> caller: boo-yah. thanks for taking my call, jim. >> sure. >> caller: my stock is npw. buy, hold, or sell? i think this segment has gotten too hard for me. i know yield is 7.5%. i've decided that's a red flag. we're going to go with deb cafaro. this one is too difficult for me. liked it in the past but too hard. michelle in california. >> caller: hi, jim. i love you. you've made me lots and lots of money. >> you're quite well come, michelle. how can i help you? >> caller: i want your opinion on biogen. >> they took a lot of air out of the stock and yet i would still

rather see you in celgene, which i think has a better track record and is not hype oriented like unfortunately they have to be. if they want to come on the show and disagree with that characterization, i welcome them. heath in texas. heath! >> caller: boo-yah, jim! >> boo-yah, heath! >> caller: could you give me the scoop on venga natural resources? >> too risky. 50% yield is a definite red flag. they could be giving you the business if you're not careful. jim in florida, please. jim. >> caller: hi, jim. buy, hold, or sell on raytheon. >> easy one. that's an on the world. raytheon is a buy. and that, ladies and gentlemen, is the conclusion of "the lightning round"! >> "the lightning round" is sponsored by td ameritrade. 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.

another hideous day for the averages. time to circle back to powerful secular growth themes that will keep working regardless of what happens with the chinese, the currency, the fed, brings me to charles river labs, provides universities and biopharma businesses with everything they need to discover new drugs and conduct early stage clinical trials including the right kind of lab rats and mice needed and eggs. we spend a lot of time talking about the amazing compounds being developed by farm and biotech companies, regardless of which drugs end up winning they

need someone like charles river to get through the early stages of the fda approval process. that's why they're an arms dealer to the entire industry. reported a solid quarter a week and a half ago, raising guidance thanks in part to their acquisition of a rapid bacterial detection system in a deal announced earlier last month. a gain of 10% since mid-january, although down more than 9 bucks from its high in march. let's check in with jim foster, the chairman and ceo, to hear more about the company's prospects. welcome back to "mad money." >> good to see you, jim. >> i got to start with something that i read -- maybe i'm too positive a guy. when i heard you were opening up the old schmoozebury plant, i thought i was tripping. the analysts are all questioning whether that's too aggressive an maybe you're too bullish. make some sense of this for me. >> we had our analysts day

today. i just came from there. we had a little chat with the analysts about that because i was very surprised on our call that people weren't thrilled with this. >> so -- >> whose companies do not have -- a deman problem? >> i was really surprised. our space is essentially full everywhere else. we have this huge facility 45 minutes from cambridge, massachusetts, the center of biotech research. it's closed. we had to close it because in the economic pullback in '08 there simply wasn't enough work from the pharmaceutical industry. and now we have this incredible asset close by to major pharma an biotech companies that we need. so we mae this great announcement, which we made again today. i do think people get it now. we're going to open it a portion at a time so we don't have too much capacity. i think their reaction was the last time there was an inversion between capacity and pricing. and that was a problem. so people were worried a little bit about the price.

we're going to open it very rationally, open it in stages as the demand improves, and we're thrilled about it. >> i've got to tell you, we've had many immunotherapy companies come on, in m from the boston yair. where else is the work going to get done? to me the question is will that old refurbished facility be able to handle awe a all the business that comes from the ipos we've seen where everybody is flush and they want to do more research? >> yeah. i think that given the choice, biotech -- look, biotech will go where the work is done best. but they'll always go where it's done more proximate if possible. so they're going to love to drive to this facility. they're going to like to be there with the study directors and participate in the drug development process. and think of the site as an extension of their own facilities, which is why we build these sites all over the place. so we're really enthused about the growth potential. it's a big facility.

it has some growth potential for year, i think. i hope as you say, i hope it gets filled up faster. but we're really thrilled about it. >> yesterday we had a company called i november owe on. i know you can't speak about specific company bus they signed a big deal with astrazeneca. you have a big deal with astrazeneca. it would seem they turn to you to see whether something works or doesn't work with this new partnership. i think the partnership is significant. you should tell people about it. >> yeah. the az deal is one we're very excited about. we did a three-year deal with them three years ago. it was done at a time when they were contemplating shutting a facility in sweden, i think, so they shut a facility. this is a time i had just met with the head of r&d and said we do all this outsourcing work, we'd love to have a big relationship with you. he said let me think about it. he called me the next day and said we'd like to talk to you because you could tell they had been contemplating this. they shut a facility, reduced

the staff, and moved the work to us. we just signed a five-year deal with them. we're doing all the drug testing, drug safety testing and the early work before the safety testing. the go and no-go decisions they immediate to make they will make by utilizing our science. >> is that pretty much an exemplar of what you're looking for or is that enough? i know there's a lot of other big drug companies that it seems you could do that for. >> we have deals to the majority of all the drug companies. they're not all multiyear. we like them different structures for different sized companies. >> fair enough. jim foster, chairman and president and ceo of charles river labs. too much demand for his facilities. i like this stock. stick with cramer.

chinese going for some desperate measures for desperate times with that devaluation. how bad is it over there? i don't know. why don't you turn into our alibaba interview tomorrow on "squawk on the street." maybe we can find out a little more. i'm still amazed it looks like oil could bottom and bounce according to the charts because i have been a believer that the oil market is going to just take a breather from any upside far while. i do like the google deal very much. remember, that is a major reorganization. like i said, there's always a bull market somewhere. i promise i will find it just for you. i'm jim cramer. see you tomorrow! ale narrator) deep in the heart of texas,

two men carved a fortune from a harsh and unforgiving land: butch gilliam and rooster mcconaughey. butch and i have actually done it all. drilling oil wells... a cattle business... i'm 50/50 partners with one of the world's largest steel manufacturers. no one gave them a damn thing except the moxie to get off their ass and do something. and they did it. (narrator) now they're passing on their success by investing in others... we'd like to make a deal with you. (narrator) but only on their terms. let's get the damn party started! [dramatic music] (narrator) with the help of their friend and mentor gil prather... you can't go into a partnership with any bad feelings. (narrator) butch and rooster bring entrepreneurs from across the country