it will be great. it's more about the outlook. >> love denim. >> love denim. >> ever since tim did his stand-up from mcdonald's, made his own burger, look at this stock. 52-week high today. something's going on. does it get through 103? >> 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. >> i'm cramer, welcome to "mad money." welcome to cramerica. other people want to make friends, i'm just trying to make you money. not just to entertain but teach you and coach you at this tough times. tweet me @jimcramer. i've had enough. tonight i'm taking matters into my own hands and say something

positive. positive things about the market that are at odds with what you heard and saw on your screen. dow plunging 163 points, s&p sinking, nasdaq losing .80%. i'm going against the grain at a session that once saw the market skyrocket only to plummet guns again. let me give you the biggest caveat at all -- nothing i'm about to say will mean anything unless you have a month long time horizon which is short in the real world but sadly not in the stock world. to explain this i have to go back in time to the days when i ran a cup hundred billion dollars as a hedge fund manager. let me walk you through what would happen each morning when we reviewed our passions with karen crimer w er wcramer who rg desk with an iron fist. these meetings were ugly, hideous, they were pointed. and they were dead right.

we would start the meeting with a query. she would ask "what's your world view? what's your intermediate term view?" translation wharks do you think will happen in the world and how will it impact stocks in the intermediate term which to her meant over the next month or two. i would expend on my world view and its time frame. we'd methodically review the investment ins our portfolio taking them right down. she would say the name, i would talk about where it fit in. say investments because karen always had trades on the sheets, positive analysts they had, a product sieg l launch that might be well received, think apple and all of its fabulousness. these tradings position were not responsive to my intermediate world view so sometimes they would be add ots with our investments. we tried not to go too far against the grain when we made those kinds of trades.

we're not talking and traiting, i've said repeatedly if you need to trade be hands on. treat it like a full-time job. we don't want to be your trading guide, we want to be an investment companion. from the perspective of an investor, what would my world views say if i were in that office getting grilled? first, we here in a vicious across-the-board commodity meltdown. not a selloff. copper, aluminum, iron ore, that's a positive. it's not a negative. remember we're back at my old hedge fund doing intermediate term world view. if our nation were a producer of

these commodities and companies largely based on that like, say, brazil, we'd be in as huge trouble as brazil is. we're not brazil. maybe 70% of our economy is service oriented, almost entirely helped by cheaper commodities. most of our manufacturers buy commodities not sell them. about 10% of our economy does produce these products and about 15% of the stocks in the market are perceived as winners from higher commodity prices including all of the cascading oil stocks. they would be winners if it were going to other way. not now. i've been up front saying i no longer believe oil can sustain these levels because saudi arabia is flooding the world, uneconomically and irrationally, at least to many of us, with oil to break our country's attempts at energy independence and frustrate the iranian oil industry. remember, the saudis regard our flirtation with iran as sleeping with the enemy so it's not just economics driving the decision to put the oil companies out of

the business. judging by the action where oil plummeted down to $40 to a level unsupported given that crazed saudi pumping. we have to regard this entire move as a positive for the vast majority of our companies. i'll repeat that. it's positive. totally out of sync with what you're hearing. in our meetings, karen would say you'll lose money with any and all oil companies with that view. i would argue we should maintain a couple of the cheaper ones against her wish. but when we'd review the portfolio again at launch -- and we reviewed it three times a day -- those oil stocks would be gone from the sheets because they differed with the world view. they tended to get sold by her when i went outside and bought her a soft pretzel or i ran an errand for her because she was too busy trading. often french fries. i would learn of these sales when we did our next review. there would be no argument because she would say, hey, all

right, go ahead, why don't you buy them back if you want them so much. you never did because you never wanted them in the first place. second i would say my world do includes the notion to go in our september meeting. housing and employment are strong. at this point, total disdain, people. total disdain. she would say "no kidding" al show she would most likely insert a word there between no and kidding. and you're a genius. that's what's happening on your screen. can't you snell that's the selloff we're having. people smarter than you who run more money than you are being hurt by the fed when the fed tightens so when it happens they will be prepared. don't you have eyes? don't you see that? don't you use them? off brain, put it to use. i would be somewhat defensive. i would respond "we getter get out, we'll be hurt by a rate hike." then i would hear her breathe

fire saying "well, given the destruction we've already seen in the market and how low our interest rates are already, maybe, maybe you should be thinking about what's being s d solded on and what we can buy, what can rally if the fed doesn't tighten. in other words, a win win. so many stocks are down and it's a win if they don't tighten because most people aren't prepared for that to happen. they would have to come back and start buying stocks. here's the problem -- it's probably not going to be a win tomorrow or the next day or a week, maybe two weeks. that was okay with her. she was thinking bigger than that. she was a displain taker so he could be a large money maker. those people don't exist. extinct. next piece of the world view. china is falling apart because their government is trying to prop up stocks that deserve to be much lower. that can't go on, that causes a big worldwide slowdown in everything the chinese boy. then she would say that's the commodity decline thing you just

talked and if the chinese economy crashes i'll take the one further drown. let's find some of those stocks, maybe there's some buys. that's when i realized what she was trying to do. she was trying to get me to think counterintuitively about what i saw on my screen. just reading your screen doesn't tell you anything. instead of being snuck a house of pain i needed to imagine what can go higher because of the world view i just traced out. so i would have to conclude that we should be buyers of stocks that are being thrown away, the stocks that do well. not all, stocks do well in deflationary environments, foods, drug, biotechs, all right, general millions, bristol meyer, google, netflix, and the fastest growing large capitalization stock there is, facebook. i'd say we need to buy stocks with high yields because there will be terrific bond market equivalents which ever way the fed goes, that's kimberly clark, clorox, more on the bond market

equivalent thesis later. i'd also say we need to buy the stocks in companies that benefit from declining commodity prices right in front of our nose either because they're guion tick users or because customers will have more disposable income along with companies that benefit with the lower interest rate environment that goes along with my deflationary world view. i'm talking about the home builders and home-related retailers. the restaurants, the airline and the consumer package good companies that use a lot of these commodities that are in mi meltdown mode. the cost of what's going into a house, home depot, southwest air, i mean, less exposure to the strong dollar but it uses a lot of foal. how about lowe's? target that gave you a fabulous number but conservative guidance and knocked its own stock down. they knocked it down, not business.

it's a buy. why don't we throw in pepsico. big commodity win there. then the meet iing would be ove. then we had no deviations unless something major changed. here's the bottom line. the meetings at my old hedge fund were about not what was happening now, worthless, everybody has that. how can you make money with that? it would be what would happen in the near future. the near future. not moment to moment. they'd produce different results from what you see on your screen. how do we know it worked? i don't know the method. we compounded 24% after all fees and with patience and pain taking, i think it would work now, too. peter in new york, peter? >> caller: big fan, mr. cramer. in any case, i was calling about kmi, a lot of people are saying 40% return rating, 1.46 on a

buy. $2 per share dividend. what's your take now that the obama administration said that they want to cut and go into what is basically with loe missions and that's a new repositioning platform. what do yothink? >> i know a lot of people feel like these have become cold. that's the word, fossil fuels are cold. we are snuck a fossil fuel country. we had that fabulous company first solar on last night, they won't take over energy. we'll need pipe, we need equipment, we need to get nat gas here, oil here, methane there, i mean, there's a system. they're part of it but it's part of the oil complex. the oil complex isn't thoughtful, it doesn't say "let's spare that one." so when kinder morgan comes down, buy it not sell it. but you won't make money now. we don't know when it will turn. you'll probably lose money tomorrow. but maybe next month or next year it will be up. ron in indiana, ron?

>> caller: yes, jim, this is ron in indiana. i was going to ask you. the chinese economy hurting and the devaluation of their currency. is that a buying point for stock? would it be near the 52 week low or should we wait and see what happens longer? >> i want to contrast sandisk scott works systems. sandisk doesn't deserve to be owned, but scott works, doing fabulously and nobody wants to own it. sometimes the trick is to go against the grain. don't think about what's happening on your screen now but what would happen if it continues, if you do that you'll get different results than what we saw in the screen at the end of the day. there's no gun to your head, there's know total at the end of the day for you. "mad money" tonight, my exclusive with the company that changes the way we vacay, home away has listings on every competitor of the globe.

our competitors like airbnb taking away stock price. i have three babies being thrown out with the bath water. i'll reveal them just ahead. plus everyone is worried but i'll find out when we go off the charts so stick with cramer.

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at a time when the world seems flooded with companies trying to help you find the perfect place to stay, what do we do with a veteran vacation place like home away? the web-based company is still the world's largest marketplace for vacation rentals. i've been a big fan of their web site for years but the stock has been snuck a rut for more than a year and can't seem to rally without getting back its gains. maybe that's about to change because earlier this month the company reported a strong quarter, sending its stocks soaring 9% higher the next day. home away's earnings were just in line, the company's revenues came in higher than expected, that's what i like to see about growth companies. 13.9% increase in paid listings, 53% increase in pay per booking listings where the advertiser plays nothing but gives the rental company a cut.

home away's vacation rental properties will now be listed on kayak. so can they see their stock put up a sustained rally. let's talk with the co-founder, chairman and ceo and hear more about what his company is headed. mr. sharples, welcome to "mad money." >> nice to be here, thank you. >> tell me where we are in the consciousness of americans when they're trying to think about vacation and where to stay versus where we were five years ago. >> well, i mean, i think vacation rentals have risen substantially in the consciousness of americans and home away has led a lot of that. i mean, families are looking for great values, there are millions of housing all over the united states available for rent but still, you know, what the data says is that when a family goes to go on vacation maybe about 40% of them today consider a vacation rental. that's up probably from 20%, 25% five to six years ago. so it's moving but there's still a tremendous opportunity for growth in the business.

>> i like a lot of what you're doing and i'm going to -- most recently and i'm going to label it concierge. you get the -- you get a tie in with uber, you get a tie in with a potential care.com baby sitter which my daughter is part of that network. and what i'm hearing is that you're making it so that it is just like checking into a hotel if you use all our services on our mobile app. >> well, we're working hard to do that. when you check into a hotel, you do typically have a concierge so you can run down stairs and get that information but we live in a mobile world now and one of the things we've been working very hard on at home away is a mobile app that you download before you go stay in the property and houses are complicated, they have tvs and stereos that people have to learn to use, there are door lock codes, there are swimming pool things to turn on and off and so we have a new app that does all that and also provides all these great services like grocery shopping through intercard or you want to grab a car you can do that through uber

or getting a babysitter or chef are all things people want to do and so in this digital age we can tie all those together and we've been doing it and customers are responding to that in very positive ways. >> i love the fact that the free cash flow, which i know you tell me is the metric that i should be looking at, is really exploding but am i to be concerned that the direct marketing budget is up so much and can you prove the return on investment here? >> yeah. i think that was a conscious decision. you may remember last year we announced that we were going to increase marketing 50%, 60% and we were going to do it this year without sinking our margins and we did that by leveraging other parts of our business. as we grow as a company, we don't have to grow gna and product and other areas of our company so we move that into marketing because there is a big opportunity to create a wareness among consumers. so i think coming out of this quarter we proved that we could spend more on marketing, we spent almost 60% more than last year but still delivered a great

quarter in terms of that. >> we talked about unicorns on cnbc and you got asked a direct question about airbnb and you said they certainly had a busy quarter, launched a new campaign which they like quite a bit but at the same time you have a new campaign and to some degree it's saying look out, we're not airbnb. >> well, that's exactly right. if you look at our campaign it's all about families going to vacation destinations, that's what we do. if you look at their campaign, it's about a single traveller going to a city, that's what they do. and i think that there's a lot of misinformation out in the marketplace where people think we're the same company when, in fact, airbnb maybe has about 10% of our property. so about 90% of everything in our million-plus home network is unique to home away and actually quite different and so the marketing has been a good way to make people aware of that. >> well, do you think one day there will be kind of a

comeuppance with this venture capital world. zulily became public, went up big and sold for less than it became public and i think probably some people were saying well, wait a second, what is the private market value for these? do you think the private market value of some of these company wes see is just kind of a -- i'm not calling it fictional but let's just say inflated. >> oh, i think it's massively inflated for some of these companies and i actually do believe we here in a private market bubble, especially for these would be unicorns. i think there's a handful of companies that investors are just scrambling to put money into and the prices you see have a lot more to do with competition to get capital into the big deal of or the hot deal than it does any sensible evaluation against cash flow or earnings potential so, yeah, i think there's a bubble there and i think we'll see that burst at some point. i don't know when. >> one thing i would tell you that i feel like the recognition of your company dramatically -- i get it anecdotally. i talk to people all the time

who are now using you, especially if they want to do two and three families instead of one family because the cost of a hotel is prohibitive. do you find the group gathering is a terrific way you're seeing a surge in business from? >> we're seeing a big change in that. i started the company about 11 years ago. we're seeing the numbers of people who travel together going up and up. we live in the world of a modern family where there's a lot of intergenerational travel, a lot of multiple families getting together. not just because it saves money but because it's fun. my kids love to travel with other kids. home away lets you be do that, it's not getting a bank of hotel rooms somewhere. if you look at our advertising it's very much geared words that and trying to encourage that travel. >> i thought -- that's why i wanted to bring it up. this was the breakout quarter for, you brian sharp ls, co-founder, chairman and ceo of home away.

congratulations, sir, looking up for you guys. >> thank you, jim. the private market valuat n valuations are insane, public market valuations are too cheap like home away. after the break i'll try to make you more money. coming up, long-term outperformers getting slammed on the day. is it the fed? investors making room for something better. cramer's getting to the bottom of what's fuelling today's selloff to help you come out on top. next. at ally bank no branches equals great rates.

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when i see the mindless willy-nilly selling day after day in stocks like dow company or general electric, solid companies with good stories, i'm emphasized repeatedly, i wonder to myself, what do people really fear? what makes them keep dumping them no matter what? declines like we've seen in restocks have become endemic. we do this show every night i try to figure out what 's the mind-set of the seller. is dow chemical trying to dodge three or four points of pain that might be caused by declining earnings estimate? if you're selling dow you don't care about getting a high quality company with a 3.8% yeld headed to 4% if the stock drops a couple points in the world where the ten-year treasury

drops to 2%. maybe the sellers noticed something else so come peeling they had to flee down to raise the money to buy it. or is it just so toxic to own a stock that doesn't go out much and gets punched in the face on bad days that they can't take the pain? >> the house of pain. >> that's usually a sign you're closer to a bottom than top. how about the commercial printing company rr donnelly? what's dangerous about owning shares in rr donnelly? it has gigantic cash flow, more than enough to pay for its 6.6% yield and waiting for you -- paying to provide the breakup. it's a value recreating transaction. while you may think the printing side of the business is a loser, they only need to buy applied graphics to get a hammer lock on commercial printing jobs that still exist out there. how can someone want out arer donnelly that badly? i don't know, i can't get my head around it. how can the stock be considered so dangerous to people that they

have to get rid of it at this very moment instead of waiting for the positives to unfold? and then there's general electric. here's a company with a 3.6% yield with a totally solid dividend that's got some of the fastest organic growth of any industrial in the world that's important because the company is becoming more and more industrially oriented. only 10% of the business will come from finance. sure 6% of ge's revenues are from a slowing china. yes 13% of the company is devoted to the oil and gas biz. but that leaves 80% of the company growing micely. that could be dividend boosts. ge is involved in a couple stalled acquisitions for sure but nothing that should impact the stock. it obviously can't get out of its own way. i called it this morning a box 259. i use thee three stocks as examples. all good companies, all good yields all doing fairly well

that people cannot tolerate owning for a nano second. it's as if the whole cohort of decent stocks with good yields and economic risk has to be banished from portfolios wherever they might be found. it's almost as if if you see them you have to shoot them and that's what makes the market so unforgiving. it makes us feel like somebody else must be lurking around the corner. given the characteristics i just outlined most stocks aren't worth selling, otherwise why bother? sure we can say look, it's just the fed, they'll raise rates, the market goes down, we'll get right back in. or we can argue all the earnings rejections and don't trust the low price of the movement because the estimates are too high. but the that's the case, why the heck should at no time fed raise rates? my bottom line is i bet people believe both. think they things aren't getting better, they're getting worse and the fed foolishly wants to raise rates repeatedly and that's the reason why the stocks are for sale. and the fed hasn't stopped you from thinking that. it's the best explanation i can offer. neither positive nor negative

but at least it's an explanation that can make sense of things, something no one else seems to be offering. let's go to paul in texas, please. paul? >> caller: booyah, jim! >> booyah! >> caller: i've got a question in reference to the talk about the fed raising rates and i know you've done segments on how it helps our banks. >> yes. >> caller: my question does it affect foreign banks around the world? specifically i've been looking attica aid innian bank, the royal bank of canada and canadian imperial bank of commerce and they're paying 4% and 5% yield. would they get hurt when our fed raises rates or would this help them? >> yes, yes, they will. our dollar will shoot through the roof versus the canadian dollar and your stocks will go down. now, remember the fed isn't about the stocks going higher or going lower, it's not. they're not focused on that. but i have to focus on it and you don't watch to touch it. it's too bad. they're a good company. dow chemical, rr donnelly and general electric are three examples of what's endemic in

the market -- mindless selling. is there explanation? all i got that the fed wants to raise rates repeatedly and the things maybe they're getting better but maybe that's why they're for sale? i don't know. much more ahead, including a deeper dive into the rate hike question. the fed says we're approaching conditions for an increase but could rates be going lower in the meantime? you don't want miss that. and what's going on with therapeutics. a triple ipo but a roller coaster ever since. is it time to buy? every the ceo. plus rapid fire calls, lightning round just ahead. stick with cramer.

on a truly hideous day for the market, it's worth remembering that while the rest of the world seems to be in disarray, there's positives in the u.s., if you're willing to do the work. we like it when interest rates go lower, it makes it cheaper for you to get a mortgage and gives you a boost to fixed income dividend stocks. the idea that rates could be lower on a day like today, perhaps a lot lower, something to hang your hat on. especially at a time when people believe the federal reserve needs to tighten in the future despite the fact that the global economy is in turmoil and a rate

hike would do damage to our stock market. that's why tonight we're going off the charts with bruce cannon as well as my new colleague at street.com. right now they say the charts are telling a story and it suggests interest rates are going lower over the next two to three months and it's a beautiful arc he traces with charts. will it's look at this long term chart of the yield of ten-year u.s. treasuries. the key benchmark for longer term interest rates over the last 50 years. kamric says the rates are going down. volcker's plan worked and ever since then the yield has been trending lower. and kamic said this is still in effect despite the improving job market. it's still there. next piece of the puzzle, take a gander at this chart which shows the yield from moody's aaa bond

index. that's another important benchmark of interest rates that acts as an index for the highest quality bonds out there. kamic likes this chart because unlike with treasurys the moody's aaa bond index lets us look back to before the great depression. with a chart that shows you the action in high quality bonds over the last 09 years. in particular he thinks it's important to look at what happened in the 1940s and 50s. he notes while the aaa bonds yield bottomed in the mid-40s near the end of world war ii, it took many years for longer term interest rates to head higher. the yield on moody's aaa bond index didn't go permanently above 3% until the mid-1950s. that's a full decade after. the point kamic wants to make is that an actual bottom could take a year to play out and think this is cycle isn't much different. yes he believes long-term interest rates will rise eventually but that could take a long time. big chunk of time.

if we're going to talk about interest rates, we need to talk about inflation because rates go higher when inflation is rage bug they do nothing or go lower when we have no inflation or deflation. that's why it's important to check out this point of crude oil futures going back to the late 1980s. today the price of oil dropped to 6.5 year low and broke down to the 40-year level and he believes the price can go lower. he doesn't see a bottom in this picture and thinks oil futures could sink down to the 30 to 32 range where oil bottomed during the great recession. why does this matter? because oil prices are pretty good short hand for inflation is and that's a powerful sign of deflation. when we get deflation it means bond prices are head it higher and when the price of bonds goes higher that means yields go down. that's how it works, meaning lower interest rates ahead. speaking of inflation, take a ganlder at this important one. this is the chart of the core

commodities crb index which is a pretty good proxy for inflation. it measures a wide basket of commodities. he points out that the index has been declining for five years and like oil no bottom in sight. in fact, no matter what commodity index you prefer, they're signaling prices are going lower. that's another sign of deflation. another reason kamic sees interest rates going lower. now check out this chart of the tlt, the long-term treasury etf. when the tlt goes higher, that means treasury prices are climbing and yields are going lower. as you can see, not only has the tlt been roaring over the past month, but the rally has been accelerating with the 50 day moving average, the pink, and the 20-day moving average now on the rise. he thinks tlt will keep climbing which translates into lower long term interest rates. for anyone thinking of taking about a mortgage, this is a nirvana chart. how strong could this bond rally

be? look at this next chart of the tlt. he points out the long-term treasury etf has broken its down trend and established a new up trend. he thinks it could rally back up to 130, 132 area and the stocks keep getting slammed here and abroad he wouldn't be surprised to see the tlt go higher. that's known as what's a part of a flight to safety raid. i think long-term treasury yields will go much low sore let's put it together and we have a serious case of deflation coupled with charts to suggest bond prices from going higher and bond yields going substantially lower in the near future which is why kamic believes despite all of the talk of a fed tightening, interest rates are headed down over the next three months because we could be in a deflationary spiral. that's bad news for the banks, they need higher rates but good news for minute who wants to borrow money to buy a house, not to mention the high yielding bond market and alternative stocks that will become sexy in this scenario. here's the bottom line -- the charts as interpreted by bruce

kamic indicates it's going lower for next few months. that's important because it gives the market at least one bullish prop on a hideous down day like today. "mad money" is back after the break. more data means more freedom to do..whatever. that's why at&t is giving you 50% more data. that's 15 gigs of data for the price of 10. because the more data you have, the better. and right now at at&t get $300 credit for every line you switch when you trade in a smartphone and buy any smartphone on at&t next.

it is time! time for the lightning round. are you ready? time for the lightning round? let's start with lenny in new york. lenny? >> caller: lenny oceanside, weight watchers, wtw. >> i think they've been outmoded by connected fitness which is why i reman a fan of underarmor. we here in a tough market. let's go to mary in california. >> caller: what's your take on max media mxl. >> max linea it's up a lot. go right into sky rockets. ted in california. ted? >> caller: silicon valley, buy,

sell or hold, infm. >> very good digital equipment provider but cisco is down a lot before it reported that upside quarter, how about a yield and a stable base? jusuf in wisconsin. >> caller: huge fan, one question. el pollo loco. >> what's the matter we chip po poet lay. just because it has a 700 handle? step up to the big time. tom in florida? >> caller: a big sunny booyah from the sunshine state. what. >> what's going on. >> >> caller: i need to head up northeast get cool fall weather maybe go to bar san miguel. thanks to you and your team i'm up 20%, buy more, sell hold? >> my tractor supply is constantly jammed, that's a niche retailer i like very much. stick with tsco.

eric in texas, eric? >> caller: jim boorks yah in houston, texas. what are your thoughts on rnb? >> interesting company. don't see a catalyst for a sleep deprived problem. let me say this has always been a company people think will get a takeover bid and i am not a buyer of a companilike that. nancy in massachusetts. nancy? >> caller: hi, jim, thanks for taking my call. my dad and i, my father was a big fan of you and your show and i'll calling about illumina. >> i see you that and raise you with tmo which we've had on the show. illumina is a good company, too. but thermo fisher, i think they deliver. that's what i want to be in. jerry in tennessee. jerry? >> caller: hey, jim. watch your show, appreciate what you do. >> thank you. >> caller: my stock i'm

interested in, have some shares in is cyprus semiconduct zblor it's just a total house of pain. we had t.j. rogers on, they had a good quarter, it's got a yield of 4.5%. i don't know what to say other than this stock market a little bit irrational when it comes to semiconductor, witnessvti which had a blowout but then last night onanalog guys goes crazy. tony in new jersey. tony? >> caller: hey, jim, booyah from somerset county. i want to know about amethyst pharmaceuticals. >> very unmet needs. we think it as a good stock. but remember it's a spec but a good spec. that, ladies and gentlemen is the conclusion of the lightning round. >> the lightning round is sponsored by:

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. everyone loves the picture i posted of you. at&t reminds you it can wait.

back on june 26, a little developmental stage biotech company called series therapeutics became public. the stock nearly tripled on its first day, traded up to 51.40. a few days later i told you series, symbol mcrb, seemed like it would be volatile and sure enough the stock has been a roller coaster but it's come down, trading to $40 as of today.

so has series pulled back to a point where it's safe to speculate on it? i have to say speculate because these are difficult stocks, it's not bristol-myers. here's a company focused on developing drugs to treat disease caused by dysbiosis which are when the bacteria in your body become imbalanced. this ecosystem is essential to your health but when it gets out of balanced you can become sick. series is about developing combinations of microbes that make your bacterial co-system healthy again. the company's lead drug is a single-dose pill that prevents recurrent cvi, an infullammatio of the large intestine that kills 29,000 a year. the current treatment is antibiotics but that disrupts the healthy bacteria in your gut and likely you'll get infected all over again. that's where series comes in. this therapy could be a big deal but it's only in phase two

trial, we won't get the results until the middle of next year. they have other products in the pipelines on similar lines, very big but also early stage development. this is an intriguing story but a high risk one because there aren't many catalysts in the company for years. the question is has the stock come down to a level where the risk/rewards asflakt let's talk to roger pomerantz, the ceo. welcome to mad money, dr. pomeran pomerantz. >> good seeing you, thanks for inviting me. >> we have a lot of home gamers watching, this is not something that will necessarily be approved tomorrow but the fda has blessed what you're doing in a positive way already. >> that's exactly right, jim. thanks for having me on. most importantly, though, we here in series are developing a whole new class of drugs as you said, no one has done this before. we're using bacteria as therapy. not molecule, not atoms but bacteria. because of that, we're

interdict, we're affecting your microbiome that is not only important for health but important for your life. it's like an organ that they forgot to teach me about in medical school. they didn't forget, it's that new. you have to think of it that way. it's that important and when an organ gets out of balance it causes disease. c. diff is the first drug type we're going into and we are able to affect this in a meaningful way. the reason the fda gave us what is called breakthrough status designation is that this is a breakthrough drug for a huge medical need. c. diff is the largest hospital acquired infection in the united states, 800,000 people each year in the u.s. alone and 30,000 die. when we treated these patients with our drug, with our first microbiome drug, what we expect to be the first micro biome drug, we cured 97% of patients

when standard of care cures 20%. >> i understand break through designation but we're talking about u.s. sales by 2022 of $280 million, whatever. why doesn't the government just say "you mknow what? this is so good we'll let them give it now"? >> i think the important point when you develop a drug -- and as you know jim i've developed with great teams eight drugs so far with approvaled in infectious disease. you have to be careful that you don't have a safety signal. i'm happy to say in the first group of patients we had no safety signals. we'll get this drug as rapidly but as safely as possible to patients and the fda is our good partner now with this huge breakthrough designation. >> okay. another even bigger market, this is ser-287, ulcerative colitis. we're talking about a gigantic market. too big to talk about? >> not at all. one of the things we saw is we're able to develop a drug so

rapidly compared to small molecules because of the safety and the way these are develop that we have this drug, ser-287 for ulcerative colitis, inflammatory bowel disease, we expect it to be in patient this is year. >> this year? >> we thought of it last year, we saw clinical data which gives us ideas that this has a high probability of success. this is why series is so -- gets me so excited. this is what gets me out of bed in the morning because we're not able to not only treat infectious diseases but chronic diseases not amenable to other therapies. >> i've got this off-the-shelf stuff, that is pro biotic thing, is there something i can take that would prevent something like ulcerative colitis? >> if there is, it's going to come out of a company such as seres. we understand the microbiome as you said, very rightly, as an ecosystem. like a forest or coral reef. one bacteria not just doesn't work, it can't work.

now let me show you, one of the things that's different is we don't just do cool science, we put a pill on the table, this is what makes series special as a bio pharma, that is the first we expect micro biome drug. that has one times toen to the eighth in spore form and that's how we cured 97% of the people with c. diff infections. >> i want to emphasize again, this is not bristol-myers lily, you can put this away and it if works it will work huge. dr. roger pomerantz is the chairman president ceo of seres therapeut therapeutics. huge unmet need on the table. stick with cramer. ...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.

at ally bank no branches equals great rates. it's a fact.

kind of like shopping hungry equals overshopping. we have time to talk about target. cornell did a magnificent job, that was beautiful quarter, they took a lot of business from walmart in baby, in natural and organic but they threw cold water on the future. i am telling you they are underpromising. it was picture perfect and they're doing everything right and you have back-to-school season and a good deal of cvs, don't lose heart, that target stock should have been up. they just tried to temper enthusiasm. it's deserving of your capital. there's always a bull market somewhere. i'm jim cramer. see you tomorrow. male narrator: tonight on the "west texas investors club"...

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