the charm in this. >> watch the agricultural space. these things are on fire. mosaic m.o.s., you can buy it. >> express up up a couple bucks. i wouldn't chase it here. 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 cramerica. my job is not just to entertain but to educate and teach you so call me. or tweet me @jim cramer. do you know what? people just don't want to believe that things could be improving in this world. they don't want to accept that the globe might be going toward

a better place. that's why they fight this market tooth and nail. and that's precisely why we can go still higher today. the dow gaining 43 points. let me give you some very specific examples of what i'm talking about. two days ago, ibm reported exactly what i was looking for. i've been skeptical about the company. it is reinventing itself. more of a cloud data plan. not just the soft wafrl not everyone was happy in the quarter and the stock did indeed sell off. guess what? the stock is starting to come back faster than i thought. i'm not using ibm as my thesis because the stock was misjudged in price. i'm starting with ibm because when i look at this company, i see the dollar getting weaker

and the rest world getting stronger, i say you know what? here's a boaten down cyclical company. it might do better if the global company improves. it is really embedded around the world. plus the structure is leaner than ever so it might be something that is shot out of a cannon if you're china. in other words, ibm is leading a worldwide recovery. the stock happens to be down for reasons that are not all that substantive. every day i hear that soil about roll the over. so do you, right? now there are hedge funds short everywhere. that's part of the charter. going into this weekend there was an expectation. they thought it was preposterous. they aggressively shorted the

oil service stocks. then when it turned out there was no deal, it broke down sunday night badly. they trade as low as $38. that was just plain wrong. the futures should not have and oil has rallied up $4 since then. why? the doha media, it never really matters. i've been telling you. i've been saying what matters is supply and demand. now we're getting bored demand for oil in china has spiked fairly dramatically of late. perhaps by as much as 1.3 barrels a day. at the same time, it is yielding a lot less. 200,000 fewer per day. if you believe that china is a spent power, it is slowing much worse than expected, i can't help you. i think china is coming back. rather than fighting it, you can see it in the stocks. i'm embracing it.

i'm thinking it is time right here right now, for the first time, that they'd better get off their butts and start launching some takeover bids before it is too late and the easy drilling prospects. the companies that can make money at $40 a barrel, i think the clock is ticking. why else could there be such interest in a company that was supposed to be bought by halliburton? who wouldn't want one of the biggest in the world when soil surging? and who else? the banks. many of the bank stocks have come down. the fed isn't expected to tighten any time soon. but these are, there are other investors who are saying, i sold these stocks because i was concerned about their oil and gas and poesh when you are crude was at $26. going to $20. and the bank seemed underreserved. that has been a curious value

that. what better oil makes it less likely that bank of america is in trouble, wells fargo has been inordinately punished because of its exposure to oil and gas. it cuts both ways. now people want the stock. if oil is getting better, maybe the banks are safe. who knows? bank of america express reported a terrific the, hold on to your bank of america. don't sell the wells. maybe buy some morgan stanley. or how about more of the agricultural. do you know fertilizers have been down grade over and over again? the stocks are laughing at the down grades. you might have seen an activist taking position. why not? i see what they told them the other day. i see a psych people could be taking off.

i think the stocks are saying, agriculture is getting better. i say what a grand time buy dow kept. down big today which is merging with dupont. it will be the number one seed business in the world. how can you not want to own that now ahead of the big turn? you should be buying dow aggressively. yes, you can do dupont. i prefer dow. speaking of chemicals, look at the 28 commodity stocks have gone? the plain old company shot the lights out last night in a quarter that only makes sfenls worldwide growth might be surging. go brac to alcoa. do you think that stock has been selling day after day because of the quarter rally? i don't think so. it is what you reach for in a better economy. remember the business cycle always trumps a near everybody

thes earning considerations. what other american vacation do we need from the stock noorkt conclude i'm right? that things are truly getting better? i'll tell you the easiest one. consider how badly the safety stocks are. this market is saying, so what? people don't want this kind of stock right now. they want something benefits the global economy recovering. so both pepsi and coke are getting hammered mercilessly. i think proctor and gamble has international exposure, but right now go with the down and out citigroup for more leverage to a potentially better group. do you know what you should most fear should the utilities. that's right. there is no flight to safety trade. which is what's happening. utilities?

worst group in show. what do you do if you're an individual investor looking at the land scape and want to know what's bad with my pepsico? the answer is nothing. you're being victimized by a breathless deep value rotation that many are fighting every single inch. that's why i tell you to be diversified and not just tell you, here's the bottom line. do you know who can ride this rotation now? do you know had a can handle the pain? only those who play am i diversified and win. otherwise, you're going to be chasing honey well all the way to the top. if you're going to respond, all need to do is stay the course. remember, diversification is the only free lunch in the entire investment business.

garrett? >> caller: hello, jim. i had a question for you. i was wondering, the price of silver has been going down for quite a while, it seems like. and i was thinking about buying some. >> i prefer gold to silver. 10% of your investments can be in gold. a nice protection against the chaos worldwide. >> caller: mr. cramer, you're an awfully good teacher and i thank you for your help. my stock is columbus i'm that line. cpgs. in lue of the trans-canada deal, should i sell? >> i'm not going to get all that bullish when it comes to these i'm that line companies. i think we're over pipelined right now. for the fossil fuels, i think they can go for a little bit. i don't want to endorse any of the i'm that lines. barb in connecticut.

barb? >> caller: hi, jim, my question, staples and office deep over struggling with an old retail model. today's business world, you can buy paper, staplers, online, costco. what is the federal trade commission's reservations? >> i think we can talk about this with jack moore, the research director. they seem a little behind. stalled. the same thing with walgreens. will in florida? will? speak to me, will. >> caller: jim, thank you. i apologize. general dynamics corps. it speems gulf stream is undervalued using the evaluation. the strong balance sheet, it is

trading on such a cheap free cash base i. >> it has exposure to the private jet market. that's why i've been recommending lockheed martin. then raytheon and third, northr northrup. if you're in the wrong stocks. earning seasons for the six big u.s. banks is concluded. tonight i'm going to tell you which place could pay. stay tuned. and then is it enough for the challenges? i'm answering my take. and bill pulte passed a scholarship to build his first home in 1950. now there is a battle in the board room. i'm heading ring side to take a closer look. so why don't you stick with cramer! >> don't miss a second of "mad

money." follow @jim cramer. send jim an e-mail to "mad money" at cnbc.com. or give us a call. miss something? head to "mad money".cnbc.com.

last week jpmorgan kicked off the portion of the earnings scenic with a quarter that is a lot better than people field. ever since goldman sachs reported yesterday with dismal results, basically, we've not realized we've heard from all the financial groups. so now we've got a complete picture of the performance this earnings season. what are the crucial takeaways for this group of the s&p? trading revenues, investment revenues, what the banks make off the deposits. in terms of trading, let's say the numbers were awful. banking business was terrible

too. the first quarter was a lousy time to be a banker. how about regular banks? that's why we care about the market. jpmorgan saw a 7 basis point increase. citiwas flat. any strength is thanks to the december rate hike. if we can get more tightening down the road, the numbers will get a lot better. what about the takeaway from each bank in particular? first of all, jpmorgan with the standard. a strong top and bottom line. very robust. 17% loan growth. things could have been ugly but they sure weren't for this best of breed bank. it really delivered. next up, morgan stanley had a very difficult first quarter.

management indicated the improvements toward the he said. meanwhile the companies got very aggressive. i like that. how about citigroup? like everyone, citiwas playing by lousy trading results. but things improved in march and april. it is the most international banks and the overstretched oil companies the holdings could be gone by the end of the year. bad bundle as bad as it could have been. i like city. if you exclude games, the revenue decline year after year. the trading business a horror sown. peering where the numbers, the some shocking cost cuts with noncompensation spending down

49% from the previous quarter. compensation and benefit down 40% year over year. you'll notice this is a repeated theme of the banks. goldman told us february was better than january. with all these cost cuts they put there when business comes back, a lot more of the new found governor will drop. how about bank of america and in their regular solid growth. the company continues to cut costs with non-interest expenses down. one thing that is a major theme going forward. bank of america, mobile. they lead the industry. just as bank of america added 910,000 new mobile users. the more people they can convert to mobile the less they'll need

to spend on labor at their physical branches. this technology change is the theme that can create better earnings down the road. finally wells fargo which is straight up money central bank delivered an okay quarter. not bad. they're just a u.s. bank. the company's recent purchase was a bit of a drag. wells posted decent growth. the ge position takes in an additional $three million in loans and leases. the one area of concern, wells has $7 billion in energy loans. if it keeps climbing, that will be less of a worry and is an out and out positive. wells' stock was discounting much lower oil prices than a few weeks ago. still, they make a ton of money from fees. this is still the bank to own.

how do the big banks look on an evaluation basis? they're all pretty cheap on earnings. the real valuation metrics is the boong book value. what they would be worth if you liquidated everything back to shareholders. only jpmorgan and wells fargo. bank of america is at an 8% discount. morgan stanley at a 10% disdown. it makes sense that they are the most expensive. wells is in the strongest position to handle the interest rates. it is why they have kept rally since they reported it. even though there's no sign of it. when you see this dislocation from book value, it means a couple things. it will get a lot worse or the

market is making a mistake. i think it is a mistake. especially since thing seem to be getting better for morgan stanley, citi, and bank of america. it seem nuts that it is a 10% discount. i think the stock will only close that game which means it is going higher. this is a 12th quarter for invest. banking which means the next one should be better. while bank of america has a lot to be desired, it shouldn't be this cheap. bottom line, any way you slice it this was a rough quarter for the banks. they didn't deny it. they didn't apologize or make excuses. the banks are focused on the future and some are darn cheap. especially now that the banking business seems to be improving.

this is something that has been skornld for years and it is their time. you can own any of them. much more ma"mad money." if you're not paying attention, you missed a big headline. talk about a house divided and the battle brewing for the third largest home builder. i talked to the ceo to hear what he has to say. should you be buying the drug maker after the move? i've got the exclusive with the ceo. and some amazing news. stay with cramer.

could intel be on the verge of splitting itself into two companies? is the world's number one chip maker going to break it self up into a slow grinding but extremely lucrative semiconductor company and a high growth company that serves the internet, data centers and all the cool gizmos of communications? is that why the highly respected

stacy smith, one of the favorite chief financial officers out there, i think that guy is terrific, is moving to a new position where he is overseeing sales and manufacturing? pretty much the guts of the entire institution? a kromt in waiting for something. even though the current ceo isn't going anywhere soon. when we interviewed him for squawk on the street, i couldn't resist asking if the company would break up. with the clip business being run by stacy and brian taking faster growth segment and really turning on the jets with it. take a listen to what he said. >> i don't know if stacy smith, running manufacturing, old intel. the core of the business. but you are right in that there's really becoming two segments of intel. this is the segment around the client that is tending to be more stable and a lot of foblt fuel growth for the other segments. and there's the new segments

that we're going to move into at a faster rate. just like so many others, they slow down the overall company's growth, bring down the valuation and imfeed natural enterprise, intel has been kept back by the decline in personal computers. in fact it took down number pretty hard because it said that personal computers would decline in a high single digit pace. that's one of the reasons why intel had to lay off 12,000 people. the table of employment had to be shrunk. intel needs to find the money to expand the fast movement stuff. the kind of stuff that they have, the hottest semiconductor company out. there it is all about communications. the reason it could break up is that the business still grows.

very slowly. and it generates a huge amount of cash. intel is the only company left in the game which still make these micro processors. there will be more than enough to fund a big did i have denied to ensure that no one catches up with the company and get ahead of it. so i put it out there. just venl urd why stacy smith will be moving across the country. and what happened? you heard, brian didn't shoot it down. not one bit. i felt like he encouraged the speculation. he could have stuck a fork in it, laughed at it. they now famously told us in squawk box that there was no way know how honeywell would acquire his company. brian made me feel like you read his mind. you know what else?

the stock itself. why did it rally today on the do downbeat forecast some so many analysts were disappointed with the results. i think it is because they're willing to bite the bullet. i would like to think i know him. he is about reinventing the intel. they bit the bullet. stopped making xlod at this chips and made the 86. when they made the me, people found it shocking. what were they doing? they went to being the biggest semiconductor company ever. this time it is what intel is known for. personal computer chips and into all the fast stuff people like. if you own intel, keep it. if you don't, consider it.

brian will send out. plus intel has the greatest manufacturing assets in the world and i would take bet any day of the week. robin in missouri. robin. >> caller: i'm calling about square. should i hold what i have, buy more or sell? >> i happen to like the process but i think you've gotten all you're going to get out of square. i say, rosalyn in nebraska. >> caller: hey, carl icon bought a lot of direct stock and he will be on the board. they're going on split the company and i'm thatter jack revalued it at $14 on the pre split and rated it overweight. fourth quarter of 2015, they announced $1.2 billion in cost

savings into 2015, there's the number up with in the u.s. recently they announced for florida. rather than throwing coins in, a device in the car. they have strong financials. >> true. >> caller: is xerox worth buying now? >> yes, indeed. absolutely. i recommend the stock. i think the sum of the parts. joe in arizona. joe! >> caller: yes, jim, how are you doing? i was wondering what your thoughts are short term, long term with cisco? >> i have to tell you. i look at cisco's valuation. when i recognize what chuck is doing to re-evaluate the company. what is the deal? i think it goes higher.

maybe much higher. legacy still has got it. manage lmt bring out the value. don't miss it. be a little patient. watch "mad money" ahead sclug my interview with bill pulte. the battle over the leadership continues. i'm getting his family's side of the story. you don't want to miss it. then biotech. what can they tell us about the future of the stocks? and all your calls, ram i had fire in tonight's special edition of the the lightning round. stick with cramer.

things have gotten real heated at pulte group. in the midst of a major leadership dispute like i've

never seen. the company's family has been pitted against the them. it got crushed in the great recession. it hand bounced back as well as the other home builders. even after that prolonged period of underperformance, it was shocking when it finally got thrust in the public eye when the company announce that had they plan to step down. partly because of pressure from bill pulte of the same name. later that day we learned that the company was trying at the annual shareholder meeting next month. there was a scathing, to put it mildly, letter to the board reiterating the disappointment in richard dugas as ceo. the decision to spend tens of millions moving the company's headquarters from detroit to atlanta. since then pultes have been firing shots back and forth. just this week their ally will

resign from the board of directors. there is a lot of uncertainty which is why i said they should grab up pulte home. i think that will make a lot of sense. bill pulte is the grandson of bill pulte. it is pretty jarring. welcome to the "mad money." >> to see you. this sounds like you're now in this new letter that is being released, talking about poor oversight and corporate developments. you're saying independent directors have no experience in single family home building. what happens between now and may? >> the board needs to help us out. we're the largest shareholder. we own a lot of the company. the board only owns less than 1% of the coil. we're the founding family.

we think we have the west interests of the shareholders. we met with richard did you goas, privately. my grandfather was the only one who asked him privately to resign. the board came out. they came out aggressive and it is just not accurate. we need new leadership after $530 million in losses. >> again, the guy is willing to step down in may have next year. is there something so critical right now? you waited until after the centex disastrous acquisition. underperformance for a very long time. why now knowing that the guy will step down any way? why don't you say, could you do it a little earlier? this is a pretty vocal fight. >> yeah. a wild thing. the company going after us. we need to make sure we work in a constructive way.

pulte just bought a $430 million acquisition in john wheelan, a luxury brand. the total trade is 1 time 3 sales. you identified with kb homes. the purpose of these needs to be able to bring things up. not only did they pay expensively. we're concerned they're going to fail. >> what are you going to do if they don't go your way? >> we'll be looking at every option. the difference is we're a long term holder. we're not looking for control of the company. we're looking for shareholder recommendives. i'm sure the company will do great in earnings the next two quarters. the fundamental difference is the company continues to lag its peers and it needs to stop. >> and you don't want to be the ceo. >> absolutely not. i'm not qualified to be ceo. but at the same time i can say

that mr. dugas, with all due respect, losing $500 million, that doesn't make you this able to run it either. do you know of anyone who could lose that? >> there are some, kb homes has done worse than pulte. >> but kb is not pulte. we were the top builder. lennar is smoking the coil. we want volume and margin. they're not mutually exclusive. >> how did it get so off track here? typically we don't see these disputes. this is not going our way. this is soap public that i have to imagine, your fight alone is hurting pulte home stock. >> it is not good for the employees. where it really turn, a guy named jim postal. massively failed deal. the guy joins, becomes lead

director. we believe that jim and richard are still running the koifl remember, they hold chairman, ceo and lead director. we need someone to work with us on the board. we'll meet any time. our calls haven't been answered. >> they're not calling you back. >> we've asked to meet with them. they haven't answered. we've e-mailed and they went public and blind sided us. >> why did it just happen now? >> my grandfather is a great guy. he loved rich. he was like another be son. he wanted to give richard another shot. after 13 years, $530 million worth of losses. the sales have gone from $11 fwol $6 billion, we have to do something more or we'll have more erosion. >> what can i say? you've made your piece. the stocks for many, many years. bill pulte, grandson of the founder.

the company's stock has not done that well. "mad money" is back. this clean was like, pow!

it added this other level of clean to it. it just kinda like wiped everything clean. my teeth are glowing. they are so white. i actually really like the two steps. everytime i use this together it felt like leaving the dentist's office. crest hd, 6x cleaning, 6x whitening. i would switch to crest hd over what i was using before. it is time!

the lightning round! are you ready? time for the lightning round. let's start with cole in new york. >> caller: boo-ya! >> boo-ya. >> caller: what do you think? >> we needed a better ipo market so they can bring the stocks. so therefore i think -- let's to go joe in florida. joe. >> caller: hello. jim. thank you for taking my call. the restaurant group. >> yes. they seem to have lost a little momentum. let's listen to it. i think that one is good. buy some before, maybe some after. paul in florida. >> caller: boo-ya, jim. >> how can i help? >> caller: it's in the fast growing data analytics and

security phase. real-time operational intelligence. and they're approaching a billion in sales. >> i like it. i have to tell you, service now reported this evening. they did a great job. the stock is screaming. and i think it could be good too. let's to go jim in new jersey. jim? >> caller: hey, the sign of money. what's going on? i have a love-hate thing. i love the dividends. a well run company. >> you want dividends? florida is the one. they don't have as much momentum as i like but they have yield. let's to go randy in indiana. boo-ya. >> boo-ya. i'm one of your biggest fans. and i have in upstate new york that is an even bigger fan. we argue over a particular

stock. the stock is kroger. >> we saw a note this morning saying kroger, that's true. my problem is that i didn't like the acquisition and the stock has been doing okay. not great. i prefer if these prices hold, move to 30. it's a hold. jake in california. >> caller: boo-ya, jim, how are you? a quick question about british petroleum. bp. i'm thinking of getting into it. >> i'm not going to be in favor of that. that one has had its share of problems. let's stay away. i have to tell you, at a certain point someone will go guy darn thing. i don't know when that will happen. thank you for sharing your knowledge with the small investors myself stock is exact

sciences. >> this is a product that tests for disease. i think it played out. one more. let's go to irv in california. >> caller: hello, jim. greetings from sunny san diego. i'm calling about ilmn. >> it word a missed quarter. a very bad quarter. even general electric trick. that's the conclusion of the lightning round! random? no. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday. jerry: every third tuesday. we have pattern recognition technology on any chart plus over 300 customizable studies to help you

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a hideous thing from biotech when hillary clinton seemed to declare war on higher drug prices. the bioteches have come roaring back. in most cases, maybe they should not have. one of the leading makers of orphan drugs that treat rare diseases. drugs tend to be very expensive for good reason other. wise no one would try to discover them. it plunged from $150 last july. it bounced back to 90 in the

back of the research and development. and it is a real doim. the company has a robust late stage i'm that line that we heard about. actually just astonishing date on he on. welcome back to "mad money." >> i saw the headline. and i frankly have known people who have hemophilia. you're talking about a potential cure. just tell us what you saw. this was a surprise to everyone. >> we started the program. we were hoping to get to a 5% of normal. that's a major hurdle. when you get above 5%, the number of patients is very low.

this is definitely beyond our expectations. we didn't think we could get above 10% and we have two patients at 50% which is basically normal level. one of the patients that are eager to get treated, he said when he got above 20%, he said he thought he won the lottery. it changed his life. >> we're not expecting to see the levels above 20%. is this, this could achieve your normal cure. >> this is early data. it is only eight patients. i would say the results are above our own expectations and above most key expectations. so we hope, we have to follow patient for several weeks and several months as he continuals. >> no safety side effects. >> there is some liver function

he wi . but a short course of prophylactic steroids, and it seems to prevent the liver issues. >> tell our viewers how many people suffer from this and what happens to them if there is nothing? >> well, in the world, about 100,000. about 60% are 50 or 60% are severe. only the severe patient that's need one injection every other day. in this case, we will entirely eliminating, it is invenl and extremely expensive. >> also, and dwarfism.

>> yes. we are very, very happy with the the number one dwarfism. we presented the most data, i extrapolate to a year. now we can see it gets kids back to a normal growth curve. we have some preliminary data that shows it may improve multiple personality which is very important. and the safety profile so far is pretty good. >> and how many people surf from dwarfism? >> about 100,000 in the world. the developed world. this drug will likely, probably the ichblg a 17. which is with 24,000 patients in the world. >> do you have, the diseases

you're talking about, if your company didn't address them, they wouldn't be cure. s that i've seen, i think continuinged the research in innovative programs. i think the potential live speck attentiony will always be rewarding. >> if there was no orphan drug designation, these drugss wouldn't be worth anything. >> company like biomarine to devote research disorders. >> i hope people almost that. the ceo of biomarine. some amazing research today.

. we're talk abouting about the new job. incredible number. did not speck that. this is always a bull market somewhere. i promise to final it right here on "mad money." i'm jim kraimer and i'll see you tomorrow. tonight on "billion dollar buyer"...

this is a luxury item. if you can afford one, you want one. i'm searching for gems in sunny california, where i'll give two small businesses... i want to get big. ...the chance to make the sale of a lifetime. a jeweler with a great feel for design... every piece is a true piece of art. ...and a not-so great feel for numbers. if you don't know your numbers, you'll go out of business. can i have a pen and paper? ( laughs ) a furniture maker with serious talent... we use electricity to warm our furniture. ...and the stubbornness to match. i can't believe you just told me that, aaron. i cannot believe you just told me that. - if they deliver... - i want to see some magic. i'll take 'em to new heights. this is like nothing you've done. if they fall short, they could stay small forever.