days. they'll release their phone on the 25th here. if it breaks $110, gets ugly, fang is going with it. >> i'm melissa lee. see you my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica brought to you from cnbc one market. other people want to make friends, i'm just trying to save you some money. my job is not just to entertain but to educate and teach. call me at 1-800-743-cnbc or tweet me. the fed gets it! the fed recognizes that if there's no inflation, if there's worldwide uncertainty, if

there's no real risk of keeping interest rates low right now, then they should stay low. that's why the stock market initially greeted the stay put decision with such applause. dow rallied 193 points before the averages pulled back late in the day as traders rang the register, dow closing down 65 points, s&p declining .26% and the nasdaq advancing .1%. remember, i told you we were likely to see a post-fed meeting selloff even if they held off on a rate hike. in part because the market had already run up in anticipation of precisely this decision. so the traders who got it right have every reason to take profits, even as long term investors like you should be much relieved that this fed is taking into account more than just seemingly strong employment figures when it makes its deliberations. before i explain why today's decision made so much sense to me let's get some darn things straight. if the fed had raised rates

today, then i fully expect we would have been down 500 dow points pretty much in a heartbeat. that's because the dollar would have soared, the emerging markets would have plunged and china would have cratered all in the name of what? the idea that it was time for a rate hike? that it's been too long so why not have one? got to ask ourselves does it make sense to create turmoil because of a belief that inflation works around the corner? and there's not ever going to be a good time for a tightening so why not just go ahead and tighten? for years now i have heard the same people say over and over and over again that the fed has to raise rates in order to prevent raging inflation. i have heard people say that the fed's dovishness is going to hurt the u.s. in the long run, that a weak fed will end up with all of us wearing whip inflation now buttons like we had to do under the gerald ford administration. these people have been wrong every step of the way.

inflation never roared. deflation is a more powerful trend at the very moment we're in. eight years ago, some people thought i went off my meds when this happened. my people have been in this game for 25 years, and they are losing their jobs and these firms are going to go out of business and he's nuts. they're nuts. they know nothing. >> these guys know something. the downturn that followed that rant could have been avoided or softened if the fed had made the right decisions but instead they literally laughed off my comments and did the wrong thing. at the time the fed had racheted rates up 17 times nonstop, and it needed to start cutting them aggressively to avoid the financial crisis. instead what did they do? they waited too long to cut, they didn't cut fast enough, we got the great recession. they made things a lot worse. people, guess what? they don't want to do that again. these days a bunch of boneheads keep saying it's been so long since the fed has raised rates that it just has to be okay for them to do so now. oh, thanks for nothing.

we're not back to where we were when i went on my they know nothing rant in the summer of 200 2007. we're in far better shape. i know that, you know that. we have solid employment growth. there's no systemic risk looming in the economy despite the chatter today. but lately it has become clear things are slipping. housing after being so strong for so long seems to have peaked as you can tell from the tepid housing start number we got today. the auto is another strength of u.s. economy, it's been pretty good. they can't really get any better from here. they can only get worse. the rest of the economy, let's just say that it's not as good as it was. commercial real estate, wells fargo, biggest bank in the land, just told us it has a really slowed down in terms of growth. manufacturing is crimped everywhere but a strong dollar as our trading partners with softer currencies takes business away from us, the oil and gas

complex had been a huge driver of growth has been stopped in its tracks. more importantly, there are three critical forces that the fed addressed directly in its comments today which demonstrate that this fed understands the precarious nature of things worldwide. first, we have no inflation. that's a huge positive for stocks. but it's not a positive for our workers. sure, we have solid employment growth but we also have wages that aren't growing and the only people in the world who seem to be cleaning up are ceos and big time hedge fund managers. we actually need some inflation particularly wage inflation. we need people to make more money. what's the matter with that? the pundits who constantly screamed that the fed should raise rates here, let's see, who are they? how about kind of old-time millionaires who are doing just fine, thank you? the real workers, though, are always staying just one step ahead of the firing posse and what i see on display in the great city of san francisco only makes it worse as i will spell

out later in the show. in short, the risk of deflation remains greater than the risk of inflation, and in that kind of scenario, there is simply no reason for a rate hike. but plenty of reasons for the fed to wait before it takes action. we don't want 1937 again. google '37. second, fed chief janet yellen and her team are very right to be worried about the international ramifications of even a small rate hike. the global economy is in a precarious position. europe is still trying to rebound, clawing back up, but china's economic decline is palpable and brazil, the eighth largest economy in the world, they are on the precipice, maybe past it. if the fed had ignored these issues it would mean they were ignorant of something that could cause severe earnings declines for international businesses. declines that would have been exacerbated by a rate hike. because it would have sent the dollar screaming higher. thankfully, janet yellen is far from ignorant. only what's the darn risk of doing nothing here? puzzle over it. in a world where people need to take multiple jobs to make ends meet and many industries are

just getting back on their feet, others haven't, why not wait for a healthier global economy before we raise rates? like the head of the imf suggested. glad the fed listened to her. so what happens now? the same people have been playing that fed parlor game for years, will talk endlessly about the next fed meeting. i say let's get on with it and find high quality companies with stocks that have been kept down by all this negative chatter like those we talk about every night on this show. including a couple you will hear from later this evening. maybe look at the bank stocks like wells fargo. we will hear from the ceo in a moment. how about some of these tech stocks that have been clubbed of late despite their terrific growth? companies like health and wellness pro, fit-bit wait until you hear the new angle for that fabulous story. the bottom line is that we are better off because the fed stood pat. for anyone who disagrees with me on that, you're welcome to sell into the higher prices that i

expect will only come because the fed chose to act wisely and wait for our economy to get stronger while giving the rest of the world a chance to turn things around. let's take questions. adam in massachusetts, adam? >> caller: hi, jim. i love your show. been watching it for years. >> thank you, adam. >> caller: read your book, see you on "squawk box" if i get the chance. my question is, obviously the fed did not raise interest rates this time around but if it happens next time around, what do you think would be the hardest hit and go down the most? >> look, first of all, i think the fed next time around are going to do it when the economy's a little stronger. i will be less worried. the companies that do get hit are the companies that are international in nature that will get hurt because the dollar will have to get stronger versus the other currencies. but you know what? this fed has got horse sense. i think when they raise next time, maybe we shouldn't be so worried. they're smarter than the average bear. hey, why not go to andrew in

massachusetts. andrew? >> caller: hi, jim. thanks for taking my call. i bought optimum health a few years ago on your recommendation. it recently dropped but i believe the buyout was a great investment but the stock has fallen and 55 million shares are held short. yet the ceo owns 180 million shares and since the beginning of august has added an additional $120 million of stock seems to think otherwise. should i buy more now or do you think i have a chance to buy at a lower price? >> i think you should buy more. phil frost has done a great job. he was opportunistic in making the acquisition but that stock's come down too much and those who don't believe in phil frost ought to study history. it's been the wrong side of the trade to bet against the doctor. how about jeff in wisconsin. jeff? >> caller: yes. jim, how are you? >> boo-yah! >> caller: before i ask my question i want to tell you how much individual investors like myself appreciate your help. >> thank you very much. thank you. appreciate it. >> caller: the stock i'm

interested in is energy transfer partners. they have dropped about 30% since beginning of the year, down around mid 40s but a very attractive 9% dividend yield. they also appear to be acquiring companies to better position themselves for the future. my question is, do you think they have the potential to recover their stock value while at the overall energy sector and you think the dividend is safe? >> first, the stock's killing me. that 9% yield is the wrong kind of yield. that's because the stock's dropped so much. they have more than enough coverage. they had a terrific quarter. that acquisition is causing a lot of pressure on the stock. i say stick with it. almost bought some today. pulled the trigger. hey, maybe the fed just gets it. sure seemed like it today. we have come a long way since they knew nothing. i think they did the right darned thing. ceo of one of the largest banks of the country, what does he have to say about the fed's decision to hold off on rates and the impact it will have on his business and the whole

country? my exclusive with wells fargo is just ahead. plus a name you may visit every day with a stock that's so darn cheap it may be irresistible. i'll clue you in. first, there was a hidden course influencing the fed's decision today. what it is and the impact it could have going forward on your money. stay with cramer. don't miss a second of "mad money." follow on twitter. have a question? tweet cramer. #mad tweets. send jim an e-mail to mad money@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.

faster, better, cheaper, more with less. that's the undercurrent of every tech executive's sales pitch out here in san francisco. you bring in their wares and your company saves money while growing revenues. the holy grail of running a business. but what they don't talk about is lower, as in hiring lower

numbers of lower wage workers to do the remaining jobs that aren't wiped out by the automation that they're promoting. as i talk with technology leaders, i realize that their innovations are perhaps the reason why the federal reserve didn't need to raise rates today. despite our country's stronger employment numbers. that's because we don't have the kind of rising employment that the fed needs to worry about. innovations like those we see here at dream force, the incredible sales force.com exposition are all about companies paying less money to whoever is left in the enterprise after the new technology eliminates the middle managers and the minions who support them. sure, there's a bidding war for the highest level talent out here. however, that's because we have a shortage in this nation of code writers, a shortage of computer scientists, programmers and engineers. that's the fault of our darned school system. that's something that they can't control. outside of this high skill cohort, we have a surfate of

individuals searching for higher paying jobs. know why this battle for minimum wage is sweeping the country? technology, that's why. if state governments didn't try to artificially boost wages, no matter the feds, they would likely be plummeting thanks to innovation. there's a surplus of formerly higher paid workers whose jobs have been destroyed. why not use the euphemism disrupted by the technology that's being invented around the clock here and of course, around the nation. take mark beniof's sales force. whether you manage general electric or home depot or barclays or phillips or a host of other countries, any other industry sales force does its work in, think about how many people can be replaced by such a powerful platform. sales force.com makes it so the only people you need are revenue producers and not that expensive support staff that can be chopped. if you don't produce revenue, then you are surplus. dead wood, to be cut down so management can raise

productivity and margins. let's consider amazon for a moment. all right, they're in seattle, not here, but whatever. here's a company that's about replacing those that build stores, those who sell product and anyone who supports those sales, cut those people out as amazon has and all you have left are lower paid workers who put things in boxes. wells fargo, the nation's largest bank, no different. since 2009 wells increased its nationwide reach dramatically but reduced its real estate portfolio by 20 million square feet. how? by slashing occupancy costs. oh, that's another way of saying cutting out surplus labor. it's made obsolete by technology. you think airbnb creates jobs? it creates wealth for those who want to make more money from the living spaces but it can stop the hotel industry's expansion in its tracks. one more thing. they are all about ought mating the human resources management portion of the enterprise. h.r. doesn't produce revenue. you got to minimize it. same thing for people who build and service on-premise computing. hence why the cloud saves companies so much money. you don't need nearly as many

workers to manage the information flow. using artificial intelligence, the machines figure out how to interpret and organize the data, placing thousands of highly paid analysts. technology is doing that all over the country. notice how oil production is not going down that much despite lower oil prices. that's about technology. the oil service industry's been able to discover and drill and produce for far less money than it cost even two years ago, eliminating the highest paid workers in the process. what do you do with all these leftover people? maybe some day they will rise up against the machine overlords but for now, they cobble together work lives by begging for the low paid part-time tasks that these algorithms dictate. technology is building a people-less economy and that is inherently deflationary. that's why there's no need to raise rates. technology's doing the federal reserve's job for them and my bottom line is that fortunately, the people running the fed seem to realize that higher paid jobs

vanish every day, disrupted by the brilliant minds that surround me here in the silicon, not the human, valley. let's go the jason in california. jason. >> caller: jim, how are you? >> all right. how about you? >> caller: good, good. so my question is on the heels of the fed non-interest rate and alibaba. is il stt not a good risk or because of the size and because of the asset they invest in outside of its own stock, is this a place to get back in and -- >> we got to parse what the fed was saying. the fed is basically saying it's international problems that is being imported and so we have the world including the united states, and that's china. that's why i worry about alibaba. i am a seller on strength is the way we would put it on wall street. it's not for me. why raise rates when technology's around doing the job here?

higher paid jobs vanish every day in this country. disrupted by the brilliant game changers of silicon valley. much more "mad money" ahead from cnbc one market including the grocery store stock that may actually finally have gotten too cheap for wall street to ignore. i will reveal it. plus fit-bit just signed a huge deal to deliver its fitness trackers to hundreds of thousands of people at target. what it means for their bottom line. first, the fed has spoken. now i'm getting the reaction from one of the country's largest financial institutions. wells fargo's coming right up. why don't you stay with cramer.

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at ally bank no branches equals great rates. it's a fact. kind of like shopping hungry equals overshopping.

the market initially loved it when fed chief janet yellen decided to keep rates low at the moment, even as that decision didn't come as that much of a surprise. but there's one group that could have braenled from a rate hike, the banks, because they make more money off your deposits when the fed raises short term rates. sooner or later the fed will start tightening. when that happens you will want to own the best bank in the country, wells fargo. in fact, i think this one's

worth the wait even if janet yellen doesn't talk rate hikes until next year. they have gigantic exposure to the mortgage market, a streamlined business and top-notch management. one of t of course, the yield doesn't hurt either. let's take a closer look with john stump. i'm very excited about this. the chairman and ceo of wells fargo. hear more about the state of the bank and the u.s. economy. welcome to "mad money." good to see you. >> nice to be here. >> you shouldn't get excited about seeing a banker but what you built is amazing. your predecessor, too. >> we are in our 164th year this year. this is our hometown, san francisco. we started in 1852. so there has been a lot of people along the way. if there wouldn't have been innovation we would have stagecoaches on the freeway here. >> you are probably the most technologically advanced bank in

the country oon though you're the largest. >> we have an innovation center and follow our customers and some of the people influencing the industry today are here in the bay area but not in our industry. google, apple and those kind of folks have a big influence on how customers think about retailing and how to get services. >> those are the companies you say you admire. >> i do admire them. they take complexity and make it simple. that is real innovation. anybody can take simplicity and make it complex. the other way around is tough. >> let's talk about today, because i know that you're a bank that has said listen, we're not going to wait for the fed to move, we are going to start doing things with our money that not many banks are doing, yet your stock fell 3% today. isn't that an anomaly given the fact you are the one bank of the big banks that said we will find ways to make money with that money and everyone else is petrified and keeping it all in cash? >> we actually went out last quarter and said we think rates could be lower for longer. >> you got it right. >> well, you know, we don't try to -- we don't speculate on

rates but we do have views on things. if you look at the rest of the world, in fact, i think today's comments and the activity by the fed or lack of activity was a statement about the rest of the world almost more so than the u.s. so when you look at negative rates in some places, slowing in china, the eu doing only okay, it has a big influence on the global economy. so if you took the united states in its just isolation it's actually doing quite well. >> yes. yes. >> but in a global economy, surely, you know, lack of exports today probably takes a point off of our gdp growth. >> i also felt that to some degree, you are largely domestic -- >> 97% of what we do. >> that 1% you just talked about knocked off won't really hurt you. but your cfo the other day came out, i was quite surprised, said commercial real estate has seen significant slowdown. how is that possible? >> well, you know, actually, a lot of -- that's from a lending

side. if you look at actually construction, there are cranes up everywhere. >> good. okay. >> but a lot of fixed income investors or insurance companies are buying a lot of those and loans we would have had traditionally so it puts pressure on what's going on in the portfolio although we have seen some growth. it's just a lot of competition for only a certain number of assets. >> at the same time you do that very opportunistic acquisition with ge. >> we love that deal. >> people don't understand the other side of what ge is doing. >> well, ge, actually, i don't know that company as well as i should, but ge's cc, the finance side, was half or more than half the company. and through i think jeff and the board and the management team want them to become more of an industrial company and they are reducing their reliance on the financial part of the business. so we bought a number of loans there and with blackstone we financed some, and we think that's a great add to our

organic business. >> i want to mention that your bank was the most opportunistic during the big decline. how did it all work out? because you took on a lot of assets, i know you couldn't have been that crazy about, you had a lot of real estate, corporate real is statestate. where are you now versus where you were five years ago. you are buying back stock, increasing dividend. what will it look like five years from now? >> let me go to the runup of 2008 or '09. how you behave and think about credit and serving customers in the boom times will allow you to have the capital and capacity when the real opportunities come in the bad times. so there was times between 2000-2008 where other mortgage lenders as an example were make loans with nothing down, no verification, the so-called liar loans, they were doing negative am mortgages and we didn't participate in most of that. so we gave up billions of originations, hundreds of millions of profit, but then

when everything came apart, we were able to use our capital to buy up wachovia and that turned out to be -- it gives you the ability to do that and now that will be -- go down as the best large acquisition ever in our industry, i don't think ever could happen again. >> what scale, what percent of the country did you have versus now? >> it was about -- we were almost the mirror image west of the mississippi that wachovia is on the east side. we were both about $600 billion companies, put together for $1.2 trillion. today we are almost 7.1, 7.8. core deposits are $650 billion to a trillion two. loans are up substantially. so we are essentially a main street bank. we do traditional banking. some of it's quite sophisticated but we are not a money center bank, we are not -- we don't corner aluminum markets. that's not who we are. >> that's why when i read about

the justice department investigating banks i never see the largest bank in the country mentioned. >> well, you know, we didn't do everything right. and we have had issues. but everybody in our company we think is a risk manager. how we behave, how we think about going to market, because people surprised when i say this, our number one goal when we get up in the morning is not about making money. it's about serving customers. that's the reason for business. the result is you make money. and we think about risk adjusted rates of returns. we think about will this loan -- every loan's a good one the day you make it. the key is you have to get a return sometime and in the lending business the margins are traditionally thin, you have to get it right most of the time. that's not the only risk we manage today. >> speaking of return, warren buffett, huge shareholder. that's an amazing marquee in itself. you have been returning capital. can you get aggressive when you see your stock down to say look, this is really nuts, 2%, 3%, we

will be buying back stock or is the government still saying wait a second, we don't want you doing that? >> every year there is something called the c-card, the comprehensive capital analysis that we do, and as part of that process, we set our dividend policy for the year and our capital buy-backs or stock buy-backs as part of a whole capital return. now, we can make decisions within quarters of how we do that and we always want to buy it of course when the intrinsic value is more than the actual value. or the stated value. >> that could be right here. >> you know, it could be. you are ahe not going to get me to commit to that. but we think return of capital is really important. >> that's terrific. john stump, chairman, president and ceo of wells fargo which i think is the best bank in the country. "mad money" on a mission. jim cramer celebrates american innovation in the heart of silicon valley. tomorrow, bold ideas from a

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when a once beloved growth company suddenly loses its mojo and goes out of favor on the wall street fashion show it can take years and years for that stock to find a bottom. i'm not talking about broking growth stocks here like the many high flyer thas got obliterated last month which do generally start working their way higher once the smoke clears. no, no. i'm talking about broken growth

companies, meaning a once hot company with a rapidly decelerating growth rate. it's going from a fast grower to no growth at all. when these momentum stocks lose the growth fuel that's been propelling them ever higher, the declines can seem endless as the stock transitions from being a high-flying growth name down to a low-flying value name. we have seen this happen time and again. and the adjustment period can be incredibly harsh. given that there's a huge difference between the high prices growth oriented investors will pay for stock that fits their parameters and the much lower cheaper prices that start to attract the patient disciplined value guys. eventually, some of these broken once expensive growth companies will become actual bargains. you just have to wait for it. and know how to recognize when it's safe to start the buying. that's why tonight i want to highlight a textbook example of a formerly beloved growth stock that's become hated and after

falling for years, literally years, has now transitioned into being a potentially buyable value play. i'm talking about the fresh market, tfm. the high end grocery chain that sort of feels like a smaller version of whole foods with 174 stores across 27 states, primarily in the southeast. that's right, after nearly three years of being in the doghouse, i think fresh market is bottoming and at these levels it represents the start of a pretty compelling value play, one that i would like even more judging by the latest quarter can still be ahead. so why could the stock of the fresh market be putting in a floor and what makes me think this stock, this once high flyer might actually be worth owning? in order to understand what's happening right now, you need to know the history of the rise and fall of the fresh market. here's a company that came public in november of 2010 back when these high end organic grocery stores, let's say those chains were hot, hot, hot.

the fresh market was the next whole foods which helps explain how the stock ipo'ed at $22 and spiked to $32 on the first day of trading. then fresh market began delivering fabulous 20% plus revenue growth quarter after quarter which sent the stock flying up to all-time intraday high of $65 in august of 2012. but a few months later the wheels started coming off this story. in november of 2012, fresh market report for the quarter contained jarring negatives including a nasty deceleration of same store sales growth from 8% in the previous period down to 5.6%. remember, same store sales are the key metric in retail. when they suddenly go from red-hot to just okay, that suggests the growth story can be coming to an end which is why fresh market stock lost more than 12% of its value the next day, falling to $52. by february of 2013, shares had plunged to the high 30s and while fresh market tried to rebound from those levels, the

rally stalled out in the mid 50s and the stock went into a prolonged down trend. the rest of 2013 and 2014, well, they were basically lost years for the fresh market, with lots of unfulfilled promises, mediocre to weak results and ill-advised expansion plans. let me give you this example. fresh market opened a store in sacramento in october 2012 at the height of its popularity. a year later the company opened two more locations there. by march of 2014, just six months after the two new store openings, fresh market decided to close all three of its underperforming sacramento stores. in short, fresh market ran out of places to expand in markets that it didn't understand so they moved into a new market without quickly doing their homework, just put them up. it blew up in their faces. in the end, fresh market stock was stuck in limbo because it had no natural buyers. come on, there's no consistency for a slowing growth stock. the company's numbers weren't attractive enough to entice growth investors but its shares were still too expensive to entice the value buyers.

it could have stayed in limbo for ages so what happened? what's changed? fresh market reported a truly disastrous quarter a little less than a month ago, a top line and bottom line miss with lower earnings guidance and declining same store sales. this terrible quarter spawned a wave of downgrades from the analysts community. more importantly, it finally caused the fresh market's holdout shareholders, the growth people, to capitulate and it lost 25% of its value in one single session. the stock plunged from $30 at the beginning of august down to an all time low of $18.70 on august 24th, more than $3 below where fresh market was when it came public in 2010. that's exactly the kind of delicious capitulation you need to see before formerly beloved growth stock can enter value stock territory and actually bottom. sure enough, since fresh market sank down to that $18 level more than three weeks ago, it's caught a wave of upgrades from the analysts, with many firms taking it from sell to neutral and some of them even giving it a buy rating.

the reason? fresh market finally had a valuation that was too cheap to resist. there's a price for everything, people. even with the stock's recent rebound to $24, it's still trading less than 15 times next year's earnings estimates, a big discount to the group given that whole food sells for 18 times, sprouts 22 times. a high quality normal supermarket like kroeger trades at 17 times earnings. plus fresh market's been trading at a discount to the s&p 500. while this is not the red-hot growth stock that entranced investors three or four years ago, it never lost a profitable company with a decent 12% plus long term growth rate. in other words, there is some price where value investors will buy that stock and we found that price last month when fresh market plunged below $20. that's a level that entices if we revisit it, something that i actually expect with the next quarter report. one last thing. fresh market had been without a permanent ceo since its former leader announced his resignation in january.

the ceo search dragged on and on, creating a huge cloud of uncertainty. that cloud finally lifted earlier this month when fresh market brought in richard anacetti, an experienced retail executive who ran food lion from 2002 to 2010, take over as president and ceo of fresh market. it's a good executive. here's the bottom line. i think the fresh market is now worth considering for speculation and that's because it's gone through all this stage of growth to value transition. the old shareholder base is totally capitulated. a major overhang. the lack of a ceo, it's been removed. most important, the stock has become so cheap that it's almost irresistible to value investors. stay with cramer.

it is time. it is time for the lightning round. it's where i take your calls rapid fire. buy buy buy, sell sell sell, my staff prepares the graphics on the fly. when you hear this sound, wow, the lightning round is over.

are you ready, skee-daddy? let's talk to jeff in new york. jeff? jeff? jeff? hmm. all right. you know what? i think we should go to bob in michigan. bob. >> caller: hey, jim. how are you tonight? >> all right. how are you? >> caller: i'm doing good. my stock is sun coast energy. >> you know what, i'm going to tell you right now. you got to be in energy transfer partners. down on its luck but not down on its business. larry in tennessee, larry? hit me. >> caller: hey, is this jim cramer? >> you got j.j. >> caller: j.j., hey, i'm under water on an industrial stock. is it too late to buy?

>> too late to buy? the stock can't get out of its on vortex. 4% yield or good business, sandy has that buy-back going, i say it's a bye-bye bye. john in california. >> caller: boo-yah, captain cramer. i need your opinion on u.s. silica. >> you're down the food chain. you're buying a guppy. let me give you the great white. buy schlumberger. >> caller: boo-yah, mr. cramer. i'm confused about tpc therapeutics. >> you got one of the most speculative names in the business. why not settle in, buy cell-gene? how about jim in delaware. jim? jim? >> caller: hello. >> jim, it's cramer. >> caller: hi, jim. thanks for taking my call. you seem a lot more relaxed out west than back east. >> i'm very relaxed.

i'm chill. people say i'm chill. >> caller: you smile more out there, jim. >> it's a happy place. >> caller: my question's on p.o.n. the merge didn't go through with exelon. the stock dropped around $5, now it's hanging around $23. you think it's a good buy? >> i don't think it's a good buy. that was a disaster, i have to admit. i think it's okay. i'm a dominion guy from way back. we're not done. i am in a happy place and i'm chill. let's go the mike in north carolina. mike? mike, bring it. you know what? forget mike. let's go to cory in new jersey. cory? >> caller: hey, jim. thanks for taking my call. i want to talk to you about gero corporation. >> let's add r-e-g and make it regeneron and you make me a buyer. that's the conclusion of the lightning round.

random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this.

while we're out here in san francisco i think we need to check in with one of the most popular makers of connected devices on earth. i'm talking about fit-bit, the number one maker of wearable fitness trackers, a stock that's been on a real roller coaster ride since it came public three months ago, even abits business has been on fire. fit-bit initially exploded higher after its ipo thanks to the company's staggering growth rate but after they reported their first quarter out of the gate in early august, even though fit-bit beat the stuffing out of the wall street sales and earnings estimates, the stock nevertheless got slammed because it was priced for perfection. though the results were excellent, maybe they weren't perfect. but the bears roaring about weaker margins and rapidly increasing marketing expenses, fit-bit kept going lower as part of the last month's epic selloff of all the high-nigh growth names. but yesterday, fit-bit suddenly announced a huge deal with target, where target will provide the company's most basic devices free of charge to all of its 335,000 u.s. employees or subsidize fit-bit's more

expensive offerings in order to keep their employees healthy and happy. fit-bit went from 33 up to 37 on the news yesterday and climbed again today. i think this deal is a game changer because it made it crystal clear that fit-bit is a health and wellness company with great technology, not just a device company with a fitness component. even up here, i think it's worth buying but do not take it from me. let's check in with james park, the co-founder and chairman and ceo of fit-bit, hear more about his company's prospects. welcome to "mad money." >> thanks, jim. >> all right, i thought that yesterday was a defining day not just because of the target deal but also because you are now compliant with hipaa which to me makes it so that you have the right protections of privacy and you have the device that could save people millions of dollars, not just millions of pounds. >> exactly. so hipaa is a big step forward for the company. it enables us to create deeper partnerships with corporations who are interested in the health care of their employees and target is a great example. target is a leading u.s.

corporation and thinks a huge priority for them to use technology to help save health care costs and improve the lives of their employees. >> why do you think stlethey selected yours? we always hear of other companies. why did they select fit-bit? >> it's easy to characterize fit-bit as a device company but we are a solution company around health and wellness. we have invested a lot in our enterprise software offering. i think people don't know that. when target evaluated both the hardware and software, they were pretty impressed and the hipaa announcement was the icing on the cake. >> data, inspiration, guidance, all those which i know is your mantra. i love this competition target has and what it could mean for charity. >> exactly. target is trying to incentivize employees so target is giving away $1 million to charity as part of this competition. is' great. employees are super excited. >> lot of people trying to figure out the size of this market. if it is just a device market i don't think it's big. health and wellness, 11 million units, what are the number of units it could only be if you have that mindset?

>> consumers spend over $200 billion in health and fitness services globally, so i think fit-bit is the leading company in this category. we are well positioned to take a lot of that. >> when apple came out there was data which says the watch is taking off. i think people didn't understand that it's not mutually exclusive and also, you partner with everybody. >> yeah. it's a huge market. again, $200 billion spending, there's a lot of differentiation. with apple specifically our price points are different, our target audience is different. we have a wide range of devices. we have a huge social network. we focus a lot on battery life. so there's a lot of differentiation there but like you said, on partnerships, that's a key part of our success. we are very aggressive about partnerships. we have one with kellogg, microsoft, weight watchers. >> bp? >> bp, target, et cetera. all of that stuff accelerated our growth. >> i don't know if people realize it but you make more money on a xwrgroup deal. >> that's right. that's why there's such a big focus on it.

>> let's go back. when the quarter was reported i got very excited about it. it turned out to be gross margin issues. your cfo explained it, it was the highest of quality problems, demand and trying to meet it as fast as you could. >> exactly. look at our explosive revenue growth. there is some fx stuff but investors want explosive revenue or slightly lower margins, we will try to deliver both. we had a fabulous quarter. >> you are talking about a lot of different uses. you are talking about sleep and heart rate, holy grail, perhaps, one day blood pressure? >> it could be. again, last minute r & d, but we're going to try. >> all right. one of the things i'm trying to figure out is people don't seem to get you have a software subscription model. it's not one and done. >> exactly. we acquired a company called fit star a few months ago. a big part of again, our company's mission is about inspiration and guidance and coaching is a big part of that. how do we use that data to tell people exactly what to do.

>> now, protecting the security of health care is important. you are a 35 person staff. how does the sales pitch change post-hipaa? >> it will allow us to make the pitch to employers and health plans that we can sign more comprehensive agreements with you and that will enable us to do more with the data, enables us to have deeper integration so everyone is really excited. >> it allows you to get your health care bill down? >> ultimately. ultimately. yes. >> that's why there's a lot of ways to win. this is a very exciting story. it's a big discount from where it came in just a few weeks ago. that's james park, ceo of fit-bit. this is a health and wellness company, not a device company. that's why it should be valued higher than it is. stick with cramer. it's a fact. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda.

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kind of like shopping hungry equals overshopping. you know what, sometimes the fed does the right thing. listen, when they do the wrong thing you know i'm going to call them out and i have called them out. but this was right. now, why didn't the market rally big? a lot of people got in smarter and faster and they rang the register. but where's the stock market headed? that's what we care about. i think this was good news for stocks and you know what? i think there are a lot of buys as it comes in. why would anyone be disappointed? no rate hike. it's good. i would like to say there is always a bull market somewhere. i promise you i will find it just for you. see you tomorrow. >> a million-dt

takes imagination. >> a million-dollar invention takes a whole lot more. >> you need guidance. >> you need money. >> you need us. >> i'm george zaidan. i'm an m.i.t.-trained chemist with a passion for inventions. >> and i'm deanne bell. i'm a mechanical engineer, and i can get almost anything built. >> getting a concept from paper to prototype to market eats up so much time and money, countless ideas just never get made. >> i've took money from my grandparents, my parents. >> but i'm not an engineer. >> there's no way we can do this. >> that's why we're on a nationwide mission to rescue them. >> pick up some speed! off you go! >> each week, we'll meet two inventors. i found your patent. i think it a