>> and what do we see tomorrow, and i think the latter. that is what makes markets. >> i'm melissa lee. see you back here tomorrow at 5:00 for my mission is simple. to make you money. i'm here to level the playing field for all investors. there is always a 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 trying to make you a little money. my no job is not just to entertain, to teach and educate. call me. 1-800-k3w4r0e6r cnbc. the dollar jumped versus the euro. causing the market to get crushed. oh, wait, now hold it.

no, that actually was good for the market t. dow gained 126 points t. s&p climbed 4.6%. nasdaq advanced 0.4%. how did these terrible things suddenly become good for stocks? this market is trying to find a footing where it doesn't go down every day and segments hard hit can be ready to rally. it's finding its footing in all the wrong or ignorant places. the fed kept interest rates low. banks need higher rates to make more money after your depositles. the stocks got dumped. it doesn't matter at all to people that the banks were actually quite doing quite well here in the u.s. that it's got more robust lending than anywhere else on earth. we learned last week when john stumped the ceo, wells fargo came on the show. he made it clear it was excellent t. stock got hammered. big money matches, what do they want? lending is a risky business.

even if you are wells fargo, which is an amazing sir couple spent lender. nope. the stockmarket prefers its fool proof when the banks take your deposits and invest in a virtually risk-free treasuries and a rate bumped by the federal reserve. so interest rates went up today, haleluia, bank stocks went up with them. that's not necessarily silly. it's not completely ridiculous. the financials represent almost a fifth of the market. so when they rally, of course, they can take the market up, too. even more important to the rally in stocks a and the rise in interest rates is the jump in energy prices. energy. now, we tend to forget how many energy companies did come public during the boom. they have become totally problematic. many were overstretched. saudi will not let up their attempts to flood on oil. occasionally crude can't be kept down because of a stronger demand from europe and the united states. when you see it in oil, sold on crude today, you are getting a lift in the vast complex that

takes in so many different stocks. big energy companies, independents, these stocks lit sorry many portfolios that anything that allows them to rally gives you breathing room. now, of course, here's the nutty part of all this. when interest rates rise, it is per se bad news for the u.s. economy. so take a company like lennar the second largest home builder in the company. it reported a great quarter. growth is changed by labor and land and at a higher inventory of homes i would like to see. plus we got weak existing home sale numbers. the increasing rate is negative for the home builder. believe me, whether it's taken up by the feds the industry suffers. higher mortgage rates, fewer homes sold, giving up housing makes up roughly 10% of the commitment about two-thirds of our commitment healthy housing market, don't be zbeevdty positive action in the banks. higher rates will ultimately hurt the stockmarket.

it just didn't happen today. and there's energy. again, a total con91 drum t. stockmarket has taken no solace whatsoever in the fact that gasoline has fallen below $2 in the united states. the airlines have not bend at all. it's as if this good news is happening in the backup. i suppose the bad news of today's rally is good enough to propel many stocks higher beyond energy. what stocks were the strongest today? even stronger than the energy group? in fact, much smaller than the energy group? which actually went down? we tailers. retailers. that's right. the retailers rallied hard. when the only news, for them is negative, higher rates, higher gasoline prices. the restaurants. they acted great. buffalo wild wings, all time high. the other group that rallied hard off the high rates and high oil, the consumer package goods, cpg. stocks of all things. make no sense at all. these stocks are huge

beneficiaries of lower energy costs and rates and the lower dollar. that's right, lower, lower, lower. the consumer package prices make the packgeing stuff for the stores. energy stocks are similar to bonds. those yields lose their allure when interest rates are higher. the stronger dollar the worse. than high rates, than higher energy costs. these companies have huge overseas earnings. they are fighting for the lives against european competitors. they lose always. oh, let's throw in something even draez crazy. today the stock prices hammered by a tweet. a tweet from presidential candidate hillary clinton, who tweeted price gouging by drug companies has to be stopped. she will layout a plan to stop it. gouge may have been done by a small microscopic company. it resonated through all farm marks leave the orphan drug stocks, they cost a fortune but typically save the lives as

these cost a lot more than the drug, themselves, the destruction in the biotech complex did take my breath away. it rea peeled months of advances of severe decline. those of us who remember when hillary's husband talked about price gouging, totally understand why these stocks, including the stock of allergan which we will hear from later went into free fall. why bother to point out all these contradictions? why not say it's all good news. i can't. it's very simple. just as the decline on friday, i told you proved to be unsubstantially more wry. because it was based on absolutely nothing but fear of fear, itself. today's advance will post-likely prove to be unsustainable because it's based on entirely counterintuitive if not plain wrong reason. higher rates, higher energy, higher dollar are all bad. the other day a follower retweeted something i said earlier in the year, we must never forget the power of the market to be incredibly stupid on a given day. today was a stupid day.

stupid days can't be dismissed. the market that makes no sense loses adherence as it goes along. i want to keep driving home this point. markets are about supply and demand of stock. we have a seemingly endless amount of stock every deal, every lock-up operation, like the shares of ali baba today. normally it wouldn't matter, there will be enough to come in to hand him the secondary's big sellers. some of that money comes from takeovers beginning to dry out. some come from cash instaumd on the side lines, waiting for decline like the one we've had of late. instead, though, the irrationality of this market is driving people away. it permeates everything. it's making people uncertain. a market that makes no sense to a guy like me is a market i want to sell, not buy. that's exactly how i feel about this one. sure it's terrific we can rally on no good news. that's the flipside. when we sold off on good news. as long as stocks do not act rationally, as long as the inputs produce the wrong

outputs, i'm going to urge you to have one put out the door at all times. so here's the bottom line. it's just unsafer to see stocks move the wrong way, like today's rally on bad news. because one day it's going to move the wrong way and not recover as it did from today from friday's pasting. instead, it's going to go down and stay down. it's my job to point out how worrisome this market is on a day-to-day basis. even when it's up. dave in illinois. dave. >> dr. cramer. great work, by the way, on your interviews last weekend on market street. >> oh, thank you. we are proud of the team, putting together an unbelievable group of guest was. >> jim, ever since celgene's mid-year announcement with juno therapeutic for gene cell cancer therapy, instead of bloomberg, the stock declined roughly 20%. three patients with sickle cell anemia and hemoglobin

efficiency, phase ii trial results might be revealed in chicago december 5th through 8th. jim, i'll be looking for an attractive entry point into this stock. what are your thoughts on plume berg? >> i'm so thankful. thanks, for the kind words. i am glad you brought this up. why? this group has been slaughtered. i look at bloomberg bio, i say exactly like you did, which is at one point celgene will do what it did, it can buy the rest. not at this point. i think there is going to be pain for those who buy it. if you take a longer-term view, there is no doubt in my mind bloomberg is currently more than it's selling for. how about sally in ohio, please, sally? >> boo-yah, boo-yah, mr. cramer. >> i like that. >> caller: from columbus, ohio, home of the famous ohio state buckeyes. >> well, number one, looking good. >> looking good. you are right. i have been a long-term loyal investor with the company called atmail for several years and i would like to know if the stock

is overvalued at its current p.e. is it time to buy more? or should i sell my 1,400 share position at this time? >> well, samly, they got to take over a bid over the weekend. i thought i took over a piece, the paid set on the street saying this is a great deal. it is worth $10.40 cents. >> that made no sense to me. i think this is a great combination i'm actually breaking my rules heard and tellinging you to stay long atmail. i think the stock is under valued. let's go to arlene in my home state of new jersey. arlene. >> caller: hi, jim, i lover your show. my question is the merger with time warner cable. my shares have tripled in value. do i sell or go with emergent? >> no, i'd hold on t. cash flow is stable. i would not sell the stock. i think you can get higher prices. we are in a bear market for a lot of stocks, but that company

i think can go higher over time. when the heck did bad news become good news for stocks? this market is trying to finds some base? you know what? i think it's an uncertain base, if not, a base on quicksand. that's why you got to keep one foot out the door overnight. more on that biotech sell-off d. company has been making big moves. should you be worried? how do you solve a problem like la quinta? the stock took a nosedive. i will tell you what to do. st. louis president and i had words, as the saying goes, sticks sand stones may break my bones, bor testimony will never hurt me. the fed president, i cracked the response. why done you stick with cramer? >> i have a message for your friend cramer. at&t and directv are now one.

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remember that when high quality stocks go lower, they do get cheaper. that's how i feel about aller began, the inquestions ditch company, the last time we connected in with the ceo brent saunders, they had a fabulous quarter the beginning of august. in the month-and-a-half since then, allergan has been slamdz. courtesy of the market, itself. shares are trading 290 today. has anything bad happened here? not really. i think the story is better than it was six weeks ago. they are doing a psychotic drug last thursday. it wound up with more acquisitions to continue to grow its business. the deal earlier this month gave them a developer of medical devices. don't forget allergan is intra selling te for $40.5 billion. they will have enough cash to

make yet another transform. this stock is powered higher year after year after year. every time you bought into a weakness, it made you a killing. i bet time will be no different. don't take it from me. hear more about where his company is headed. welcome back to "mad money." have a seat. thank you. brent, we got a couple notes out lately, it says there is a lot of confusion. we know the generic sale, if it goes through, is the top of what we have seen for pricing, but i think a lot of people are concerned about what you do have left after that? >> yeah, what we have is a fantastic growth company. you have a company that will be growing top line double digit. expanding margins. a pipeline of mid- to late-stage programs and a retooled balance sheet to go out and do more smart ae accretive acquisitions. >> when you look at the company,

you can't estimate the forecast i can. i see 14 tiles earnings was the average drug stock. there is some sort of discounts created by the way accounting is done here. >> i think people have confused the idea that we have to report discontinued operations. it's accounting. it's a rierpt. versus we can't forecast our business. that's clearly not the case. the business is performing well. we have to follow the rules in how we report. so when we report continuing operation guidance, you can't simply annualize that number because it's loaded with g na and interest clause that will go away when the deal closes, then you have it clean. >> i can make my estimate. i think the stock was up. then we got the comments from hillary clinton. now we know her husband took a shot at the drug industry back in the early '90s. something that allergan needs to worry about if she becomes president? >> i don't think so. all of our intelligence says it will be very hard for hillary or

any other candidate to have a profound impact in drug pricing. >> that being said, we have to take this seriously. it creates a lot of pressure in this system. we at allergan don't agree. we take single digit price increases from time to time. but we're not in the high price drug game. we are in innovative medicines. we are in private pay medicines. but we don't have thousand dollar, very few thousand dollar treatment clauses. >> when you bumped umm the alzheimer's, you got negative heat s. that a similar. to what we read today in terms of what she is angry about? >> the example she tweeted about today was just one egregious situation. i think we have to separate the one off kind of situations with what really happens and keep in mind, we need to have good pricing to create innovation and there are many patients and in many communities that have seen innovation, for example, hepatitis c. we seen a cure this year. how fantastic is that for people

suffering with hepatitis c to have a cure? >> they do. >> so that will cost money. we need to be opened to that. being careful not to alou these egregious prices. >> now what about your pipeline? i see a drug that looks goods for migraines. this raylar got approved in the big sell-off. what is different about the schizophrenia bipolar drug than is currently on the market. >> it's a one-on-one in the schizophrenia market. it has lots of "options action." about a 15 to $20 billion market. a big market a. lot of unmet needs. patients tends to cycle. around these drugs, they look for efficacy and it works more like adolphi the only other agonyi agonyist. it is a unique drug of one. >> does it have a weight increase? >> no, it doesn't seem to.

the most interesting. about brailar is negative symptoms. we're talking to the fdant how to take that into the label. we have some work to do. but nothing has really worked on negative symptoms. >> that can be a real game clanger for people with schizophrenic. >> it's a gigantic market. we know dermatologist versus put it in their bag already. how are sales? >> so, we haven't closed yet, we expect to in the coming week or two. but the drug is taking off. sales are great. in fact. >> double digit. >> i had it done. just to test it. it wasn't painful. and really did work. but we works -- what we can do is very different than theracan, we can train a lot of physicians a lot quicker. we are great to bring it in our sales bag perhaps in a week or two. >> migraine, you were excited about your formulation that you got. >> a very exciting opportunity for us. we know cjrp is a validated

mechanism for migraine. we know this works. this is the only oral program in development. we are moving it into phase iii. this could be a billion dollar plus opportunity and very complimentary, botox. >> you currently have for mieg dpra migraines. >> we have another drug. we could have a powerhouse. >> i think you get a great opportunity as people physical out what the new allergan looks like. it has new drug, lots of cash. a transformative 66. those that want buy back, let's go for broke. brent saunders, president of allergan, agn. stay with cramer. . coming up, when it comes to la quinta, say what the heck? what is the old hotel chain dropping 15% after bad news on guidance and a major sweep shakeup. can we help you get back on track? or is it time to pack your backs? cramer is on the case.

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it got personal this morning between fed president and "squawk box" or at least it got personal on his ends. >> i have a message for your friends cramer, the fed cannot

criminally raise stock prices. so the idea that it's all of the fed is going one way or the other and this is what's dragging the stockmarket is not true. he's one of the great people at looking at businesses. what's the profitability of the business. what's this. worth and you know to have him cheerleading for low rates, you know, 24 hours a day is i think unsavory. >> your honor savory, wow! i have my hands full trying to be sweet. now i got to be savory, too. seriously, though, i'm a student and i have been hard on buller because he's wanted to raise the federal funds rate for years now t. economy has been way too weak to do so. it's not like my feelings are hurt, i'm too old for that. first i am not a cheerleader for this splarkt t. truth, i happen to like this market for ages. i was the first commentator i know to call in an outright bear

market. second, while i'm definitely a fan of stock price, i want you to do well. the reason i've argued against hike is i'm a cheerleader for markets. it's main street not wall street. for example, i have housing has been a standout sector in our economy. lennar reported good numbers today, however, existing home sales came up this morning, they were down 5%, lennar got crushed when long-term soared, housing has taken a hit. if the fed were to tighten, sending mortgage rates higher, that would make things much worse. more important, i am not against a rate hike per se. one day the fed must tighten. as i said on friday night's show, i'm not against one foreverch when we're sure china is not teetering. europe is on firm footing. i will be on agreement on board when the tightening comes up then. sure. right now, though, i'm seeing deflation all over the plapgs, including most of the commodity complex. without minimum wage hikes at

the state and level the aij wages i think would be on the decline. i'm not staking out a radical position. i'm agreeing with the wise imf chief who has asked the chef to put too many rate increases. the unsavory fed, i don't know, decided not the take action last week. here's the real rub. i recall being laughed at by the fed in 2007. when i said they knew nothing and they should cut rates immediately before we experienced a collapse in the real economy, not just stock prices. i went out of my way to be forceful and, yes, personal, as possible frankly. i didn't think they would listen. i said they know nothing. it turns out they listen all right. later on when the fed minutes were released, we learned they listen and laugh, seduction it as if i were a lunatic. i am not a lunatic. i have lived through a series of downturns oversea, the 1977 stockmarket crash that set back the economy. when we had a spout with the germans. it was that very weekend.

1997 or 1998, it's using the far east and russia impacted our economy. why should we think this time will be different? sure employment is strong. it was strong in those situations, too. right now we got a number of foreign countries teetering the brink and a rate hike could send them over thep edge we are verb racings helping the working person, main street here in the u.s. so maybe just maybe i know what i'm talking about. maybe i'm the one who should be given the benefit of the doubt. not st. louis president james board, because he has been wrong for multiple years now while i have actually been right. i'm sorry, he takes it personally. this is too important in the lives of regular people, not just the stockmarket for me to back off. here's my bottom line. he can call me unsavory, sticks and stones and all. one about a guy that says things are very much the opposite of sanguine, maybe i should just take that one as a compliment. jesse in california. jesse! >>. >> caller: hey, jim, thank you

for taking my call. >> of course. >> caller: my call is about keycorps, key. >> thatry due to report october 15th. my question for sui is this stock a buy and should i get it before or after the report? >> okay. let's be really -- i want to speak long and short term here. there is no doubt in my mind, longer term, that is one of the best ceos in this country, including the banking business. secondly, though, short term, i am concerned about this short rate issue, how it will impact their earnings. i am advising you, you may have to buy it lower after they report. let's go to elise in illinois. >> caller: hi, jim. first of all, i had a recent marriage and happy new year to you. >> same, thank you very much. >> no, you have a fabulous mind. i'm an investor of cme, can mercantile exchange.

i was told by one of the members they will not go over 100 until the rates go up. last week it was 95. i thought, great, finally it's going to grow up. of course now it's to 90. i just wondered, do have you any insight, is it always with the federal reserve you know that it will move higher or not? >> well, i like the exchange business. i also like, by the way, intercontinental exchange. i was doing work this weekend. cme are very good. it's benefitted gross margins. all right. i'm just trying to get things right for you, cramerica. i'm your cheerleader. other people shouldn't take it too personal. all right. much more "mad money" ahead, including what the heck is happening with la quinta, the ceo stepped down last week. i am tike i taking a closer look. gold medal has had its best day since friday. i am sitting down with the first minor to see if a case can be made from precious metal. i am taking your calls in rapid fire on today's edition of the

lightning round. stay with cramer.

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>> okay. what do you do when you like the company's stock for some time but then suddenly disaster strikes and cuts off the bold pieces at the knees. but consider the case of la quinta holdings. the select service hotel chain with roughly 870 locates that we've recommended largely because of the positive commentary we got from the company's long time now former ceo wayne goldberg. in his numerous interviews on "mad money," he always had good things to say. len last thursday an unwelcome surprise. he made not one but two incredibly jarring announcements. wayne goldberg is stepping down

by mutual agreement with the company's board of directors, end quote. effective immediately. la quinta didn't give any real reason for its exit. goldberg said he's fulfilled his goals and it's good time for him to look for new opportunities. but if that was the whole story, why not give investors a heads up and announce he is retiring in a few months. this move was especially disturbing since goldberg was la quinta's ceo since '76. it's been an eyebrow raiser. he took the company public and decides to resign with no warning. you never want to see a long-time ceo step down immediately for no particular reason. considering the cfo keith klein will serve as interim ceo while la quinta searches for a few permanent chief executive. hmm. doesn't sound very planned to me. it was just as if goldberg would step down, that would have been

bad enough, it would be banished. okay. then the other shoe dropped. >> that same night la quinta cut its four-year financial guidance for two months. the key pet trick is rev par, revenue per available room. it slashed it all the way down to 4.5 to 5%. that's a big number when you have a lot of rooms. then last thursday, they cut the forecast down again. now that's a vicious downward revision. pretty much devstates the whole bullish case as a growth hotel stock. that's why we liked it. one that can hold up in any environment. it was a grower. on top of that, it cut the earnings and amortization. it went from 398 million to 404 million to 3 na eto'o 400 million. that's with our factory and the cost of goldberg's 11 million golden parachute t. reason for lower gains, la quinta anticipated hotel demand from

august to debris and industry trends to suggest it won't be getting better any time soon. yes, i'm a little steamed about this, how bad was the one-two punch. the next day, they lost 15% with shares falling below the april ipo price as the analysts community downgraded the stock and cut their price targets. now to offen the blow, la quinta had a buyback program. to me this smacks of desperation. la quinta has a huge amount of debt. 1.73 billion t. company maintained they would get their debt to ebitda ratio down to below 4 before they started buying back stock. it makes me feel the company is generally flailing here. in fact, la quinta said they might borrow from the revolving credit facility in order to fund this buyback. they ended with 65.5 million. when do you the math, the $100 million buyback starts to seem

it's not a use of approved exam. i am not reassuring you. so what do we do now? la quinta made us a lot of money, emphasis on had, shares surged when it came public last year. but ever since then, la quinta has been trending lower. in part because of the broader market sell-off and they lowered the guidance dramatically. not once, twice in the past couple of month. at this point i have to tell you, it's not good to sela quinta. if you own the stock from my recommendation i would run not walk away from it. why? la quinti is facing head winds and to make matters worse, management has lost all credibility, given repeated number of cuts in the long-time ceo. i cannot stress enough how important it is wayne goldberg left the building. one of the main reasons we liked la quinta is goldberg was so bullish here on "mad money," not only that, when everthe words concerned about the company,

he'd show us and let us know not what is knowing about. it is turning out the sources are a lot less credible. you take that away. you have a hotel chain that is way too much exposure. it gets 30% from texas and the hotel business is challenged anyway. let me walk you through the statements. the last time we heard was may 8th less than a stock started going down the trade. i asked about la quinta's prospects, here's what he said. >> we will continue to grow this brand. we feel very good about the outlook and the horizon. we have a lot of momentum. >> now that interview took place well into the second quarter. they should have had some clarity in the softness that was occurring in its business. don't you think? it just doesn't look food when the ceo says he feels very goods about the outlook. two months later, he slashes it dramatically. this tells you the management is cool or way too pro mother-in-law. then the time we spoke to gold berke, i grilled him about the

effect of oil and gas price, given that 30% of the sales came from texas. where you expect to be a lot less corporate travel given the collapse in the price of crude. i say, listen, i don't get it. goldberg had the answers, basically said the bears are as well. they're wrong, watch this. >> we need lower oil and gas prices oz a net positive to our business. >> in retrospect, it is looking like that is simply not the case. when you canner the nosedive and the performance this august. when the price of oil crashed down to its lowest level since the great depression. it seems that lower oil is not a positive for la squint that's business. i got it wrong, mea cullpa, i should have been less exuberant. i was quite enamored. here's the bottom line. when the facts change, you got to change your minds. boy oboy the facts changed with la quinta with the immediate resignation of the ceo and the company cutting its forecast for the second time in two months.

when this disaster acts, you have to be willing to say you got it wrong. rather than convince yourself this is the pullback of some buying opportunity. it isn't. i would say when goldberg left the office, he took the bold case for la quinta with it. "mad money" is back after the break. .

>> it is time, it is time for the lightning round. i tell you to sell, sell, sell, or buy, buy, buy. and then right now the lightning round is over. are you ready, ski daddy? we start with dennis in michigan. dennis! >> caller: hello, jim, lulu lemon dropped 18 pars after a second quarter report. yet the report was universally positive. i am pulling the trigger now. >> i am in agreement with morgan stanley. it happened out in california. i took a look at the stock this weekend and was surprised it was down so low, so are they, i think they're right. let's go to tom in walk. tom. >> caller: jim, it's a pleasure talking to you, how is it going? >> what do you got?

caller carl my stock is kmi. what do you think -- >> this zprup under heavy liquidation, it doesn't make sense to me, i like kmi. this is the first day they were up in a very long time. let's go to kevin in florida. kevin. >> caller: hey, jim, how are you? >> i'm all right. how are you? >> real good, real good. i have been happy with coned for a number of years ago lime looking to expand. am i correct you like southern better than con ed? >> a lot of times these are yields at this point i have to tell you i think con ed a 4% yield, if it drops more, you are absolutely fine. i like their acid method of fought having cold plants, that kind of. . they're not building nukes. let's go to cody in louisiana. cody. >> hey, jim, boo-yah, all the way from louisiana. >> well, su i thought had a great game this weekend. what's going on? >> oh, not much.

i just got out of college. i was wondering what your thoughts about power shares are. qqq. >> you know what, when you put it out of college i do want you to take more risk. i have been working with generational investing. i think you can pick the best of the best in that qqq. i prefer you to do that. let's go to john in new jersey. joen. >> hey, boo-yah, jim. >> boo-yah! >> caller: i want to thank you for foreign tier, a couple years ago you had the ceo on. it allowed me to retire. >> wow. wow. the yield is 19% now. what you know i think is a bit of a red flack. >> that is, a little too high. so let's be careful and not be greedy is the way i would look at it. thank you for those kind words. let's go to mike in illinois. mike. >> caller: boo-yah from chicago where we're trying to help the bears. >> don't talk to me. i said no one is allowed to talk about the eagles. i will reiterate.

no one talks to me about the eagles. i'm a fan. i can't talk about it. go ahead. >> caller: okay. i want to thank you for everything you do. i have only be investing in stocks for two years. conformis was on the show. they have disruptive technology. now they're accused of making statements and have a suit filed against them. buy? sell? >> i have done a lot of work on that. . i don't think they made false statements. i think that itself the cost of doing business. this has to him down. let's go to michael in wisconsin. >> a big boo-yah from the university of wisconsin. >> nice, with elove following them on saturdays. what's up? >> caller: buy, sell, or hold, exact sciences? >> when the stock was higher, it was time to ring the red. we felt the best had happened. i'm sticking by that. that ladies and gentlemen is the inclusion of the lightning

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>> the price of gold has been going downhill for years now, to point it's trading below where the financial quit. considering the feds were unwilling to raise rates, they used that as the marginal buyers of the precious metal. it's tough to make the case gold is ready to bottom. however, i always believed at

having gold exposure is a lot like buying insurance policy on your house. gold tends to go up in moments of inflation, two things are bad for stock prices, inflation seems like a distant worry, if anything, deflation might be the real concern t. whole point is to protect yourself against unforeseen, that's why i have said since the beginning of this show, there is always a place for gold in your portfolio and i'm sticking by that. which brings me to rand gold, gold. the best run gold miner in the business. operations if subsaharan africa. a they had a solid quarter thanks, to terrific production growth. they aim to create a joint venture to redevelop particularly valuable mining. >> that doesn't mean the stock down more than 10% year-to-date can necessarily overcome a continued downtrend in the price of gold. rand gold would be the way to play it. let's take a look at the ceo of rand gold resources to get a better sense of where the gold

business is headed. well come back to "mad money". >> how is it? >> i'm doing well. i'm grad are you on. i am a big believer when everyone wants to throw away gold. it's like throwing away house insurance. you'd love for it never to pay off, right? it does occasionally pay off. your company is the only gold company i followed that has costs going down and revenues increasing. how are you able to do it? >> well, you know, we run it as a business with the focus on being sustainably profitable rather than a gold business. we happen to be in gold. but we rarely try, you know, focus on creating value for our shareholders and at times like this, you don't want to mess the equity. you want to create value per share. >> now, the other gold companies seem to be, frankly, running out of inexpensive god. i don't know any other company in your business that seems to be able to find gold medal at a

lower price. your minds seem to be, especially the ones you brought on lately seem to be particularly high grade orr. is that the case? >> yes, jim. i think the key here is we have used a thousand dollar gold price long-term to allocate our capital. so we've introduced sa discipline to make sure that our business performs at any reasonably foreseeable long-term goal price. that's what separated us from the rest of the group. we know we've never impaired, we don't have debt. we are positive in cash flow and, you know, those are all the ingredients that culminate in a profitable business. >> i think a lot of people don't understand you are actually able to get that current gold projectiles for what you bring up. i.it's literally, when i look at the price you get for gold, it's the one i see on my screen? >> exactly. we get that. >> so how is it that the other

guys seem to get less when they take it out? is they're somehow hedged and it's a mistaken hedge? >> yes, i think there is right now, there are a lot of gold companies trying to survive. rather than trying to be profitable. with that comes, you know, the necessity to capture all sorts of ways to fund their survival t. latest craze is the royalty and strategic opportunities, which effectively put the equity owners last and, you know, one. you get in rand gold is our owners are our shareholders. of which i am one, by the way. >> yes. now, at what point can gold turn around with this negative interest rate? because to me i always think that at a time of inflation, you certainly have to be in it, many countries are experiencing deflation right now. just have to stay the course with your balance sheet and your new minds? >> you know, in your introduction is so rarely on the

mark, jim, because if you look at the global economy, you know, you got europe talking about further quantitative easing. you got the u.s. in a quandary of whether or not that should raise interest rates. you got china struggling. >> right. >> to keep, you know, it's growth up. you know the world is? a very, very complex situation at the moment and by far the world economy is not in good shape. so in times like this, when you can't really see where it's going to be in a few years time, it's good to have some goals. the good. about gold is as you pointed out, the mining industry's hasn't been too good about managing its business in mining gold. so there is every indication that the supply of gold is going to shrink. which will tighten up the mark as we saw in the early 2000s when the industry stopped edging. and that will support the goal for us and then any other

impact, you will drive that gold price up. so, you know, i'm rarely positive about the gold price in the medium to long term. in the short term, it's about making sure we keep ourselves profitable and we don't do anything to impact the value of our stock. >> well, that's why i like your stock. one last. when you were oranges the ebola crisis was raging. you came on and said this, too, sham pass. you are the only one i know who said that. you are able to continue to build in those areas. it's paid off, hasn't it? >> absolutely jim. we make a difference to people's lives. that's also good. >> you put a lot of people to work. that's why you are the only gold stock that i can recommend. i can't recommend any of the others. dr. mark bristow, the kre eo of rand gold resources, all i can say, if you want to own a gold stock, it is randgold.

no other gold stock. stick with cramer. we'd be read. but demand for our cocktail bitters was huge. i could feel our deadlines racing towards us. we didn't need a loan. we needed short-term funding. fast. our amex helped us fill the orders. just like that. you can't predict it, but you can be ready. another step on the journey. will you be ready when growth presents itself. realize your buying power at open.com. selling 18 homes? easy. building them all in four and a half months? now that was a leap. i was calling in every favor i could, to track down enough lumber to get the job done. and i knew i could rely on american express to help me buy those building materials. there are always going to be unknowns. you just have to be ready for them. another step on the journey... will you be ready when growth presents itself? realize your buying power at open.com

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on friday, we complained stocks were down for no reason. today they were up for no reason. it just doesn't make sense. therefore, i can't be that force. there is always a bull market somewhere. i promise to find it for you on "mad money." i am jim cramer. i will see you tomorrow.

[ mid-tempo rock music plays ] >> more than a year has passed since colorado became the first state in the nation to legalize the sale of recreational marijuana. but sometimes the line between what's legal and what isn't is still a little hazy. this is not the first time cops have been called to this head shop in wheat ridge. >> sle