lion's gate. valuation interesting now. >> bank stocks will have a tough, tough summer. stay short. >> gdx, gold miners. giddyap, they're going higher. >> be back here tomorrow for more fast. jim cramer starts right now. 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. other people want to make friends. i'm just trying to make you a little money. it's not just to entertain but educate and teach you so call me at 1-800-743-cnbc. or tweet me @jimcramer. one big bad event down one to go. i'm talking about how the stock market has gotten through

another federal reserve meeting relatively unscathed but still need to face the uk's big vote on whether to leave the european union. fed agreed to do nothing and that keeps stocks on the agenda the place to get the short term for your money. the stock market rallied on the news as we sold off later in the day after oil plunged a dollar dow sinking 35 points s&p slipping 0.1% and nasdaq climbed by the same amount. still, i was pleased to hear that the fed paid no attention to the idealogues who want higher rates. why? >> boo! >> so they can be lower after they throw us into a recession. >> no. >> i'm flat the fed recognized employment only grew by 38,000 jobs last month and that mattered to them. [ baby crying ] >> i like that they realize the economy is on a real slow growth path and that rate hikes aren't going to be able to come in lockstep. the rhetoric that drove the

stock market down hard at the beginning of the year. i like these things because they mean the fed understands that job creation has indeed slowed in the united states although there's still no recognition from these guys that it might have changed because of technology, because of di digitiization and which they can be transported overseas and taken away from our country and still can't come to grips something like the cnbc disrupters companies, the ones eliminating jobs by the hundreds of thousands. look at your cell phone for heaven's sakes and those apps and icons. those represent millions of jobs taken away with everything from clerical work to calendars to sports programming to pc-makers and camera companies being eviscerate ed eviscerated to mention about 1/100th of the job killing it does with elon.

perhaps why the paralysis of washington runs its course. i'm almost thrilled it took no action to boost the dollar. [ applause ] right now it's unchanged versus many currencies and that's good news as we start hearing the reports. look, i wish the economy was creating all sorts of jobs and the stock market could be able to handle it. that sure wasn't the case when the fed tightened the market and it got hammered. janet yellen was on point when she said it slowed despite pickup in the economy. it means companies are getting more work out of fewer people which is real bad for all wages but the minimum kind. jumped the first hurdle but still needs to get over the second one, the upcoming decision about leaving or staying in the european union. the uncertainty about this the decline in oil explained by the stock prices fell. let's say -- you would have thought they would have exploded higher at the fed meeting but you can't, not with these two events, no way, that's why the

averages had to finish in the red. they had to worry more about the british vote than they would otherwise be because they weren't worried enough a few weeks ago. i believe many of the scary stories we hear about about what could occur are being circulated by people who ignored or dismissed this very possibility, not that long ago and simply don't want to look like idiots if it happens. the rhetoric is yes, indeed terrifying. >> no no aaagh! >> the stocks in the big british banks will fall 40%. [ honking horn ] >> if the brits vote to leave europe. here's where i come out brexit could cause a couple days rally and it could be a godsend for new america. you might get your chance to buy general mills or bristol-myers or pfizer at ridiculously cheap prices. i would stand there and buy all dominion sourceses or con ed

there is to buy and bidding for a million shares of any one of these stocks if the vote goes badly or grabbing the phone and saying 77 bid for 1 million shares of con ed right on the line, come on hit me. yeah i don't hear that talk now. i only hear fear. let me say when everyone is scared you have to worry that you're going to miss the next buy, not selling opportunity or put it another way johnson & johnson $116 it would be a gift to get it under 110 because of brexit but a gift you probably never get. at&t hit that 52-week high and 4.77% yield and treasury yield is less than a third. the stock is at 40. now that it owns directv more levered to the new york giants than the bears than it is to brexit. get that stock at 38. well i say -- >> buy, buy, buy. >> i'll take some before and after. hedge managers predict there

will be a 10% to 20% swoon in stocks but then they find it impossible to name a stock they buy if the market were to come down that much because they don't even bother to think about it. that's typical and a sign of how unhelpful they are. i'm not calm about a possible brexit but get ready for the next down day however if we are, indeed, off 3% to 5% going into the vote next week i'm going to ask you to buy stocks that yield 3.5% ahead of the vote then buy some more. what keeps me from saying well hole it. let's get aggressive right now? simple. oil. we were rallying just fine off the fed today when oil turned down and took the market with it and i have to tell you that the wall of $50 is less likely to be banged again than the floor of $45 is to be touched. when oil goes down s&p goes down okay. there was a moment where the dow swooned 40 points and i checked everywhere to find out what happened. there was only one reason oil went from positive to negative. we got a big oil inventory numbers and showed a further drop in production which makes

the $45 level one that could provide support. nevertheless with the fed on hold brexit not for another lead crude is what matters and oil is a variable, so bottom lie, with the fed out of the picture but oil playing havoc we can only remain cautious until oil drops 3 bucks and the stock market drops ahead of next week's vote and that's when you put "mad money" to work and hire yielding all domestic equities, that's the game plan. you just have to be ready to implement. to jesse in california. jesse. >> caller: butoo-yah kramer. i wasn't sure if hsbc was good or whatnot. >> i think that difficult send is still a red flag. i don't trust those kinds of dividends. we saw those really get axed in previous times. come on. we want a good dividend go to at&t. cody in minnesota.

cody. >> caller: hey, jim. what do you think of dow chemical long term? >> members of actual earth.com asked how i wish now it would fall. why? the longer it takes to close is killing me. dow deserves to be higher and should be bought. jp in virginia. jp. >> caller: yeah, i'm long ford 14. been hammered down to 12 and back up to 13. looking to hedge it and sell and covered calls -- >> you know what look 4.6% yield. be in a waste -- you're going to waste some vig with the buys and the puts. if you don't like it go. with the yield and we recommend it in france in the first week of february had a nice move but the auto stocks are trudging through it. the game plan against our brexit

appointments -- opponents. that's if the things come down. i'm not saying go out and do things now. what do we got on "mad," who says this isn't the most interactive show on television? earlier i talked about companies that could profit from the race to the white house. tonight, sitting down with the ceo of one of the companies, i highlighted and it's safe to say more stock controversial than valiant valeant pharmaceuticals. i'm highlighting a play bucking the trade. don't miss my exclusive with ollie's bargain outlet and stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimkramer on tweet. have a question tweet him at #madtweets or send an e-mail to

mad p moen az madmoney@cnbc.com. or call us at 1-800-743-cnbc. miss something head to madmoney.cnbc.com.

♪ earlier we talked about the potential winners from the

deluge of political ad spending we're about to see in the run-up to the november election. both could shell out $12 billion a lot going to local television broadcasters which is why i gave you a list with the most exposure to both swing states and also this hot congressional race. one of those is nexstar which owns a broad portfolio of local affiliates for fox, abc, nbc and cbs. earlier we learned they're acquiring media general. another con comblom race for $4.6 billion and would create a company with tremendous reach in scale. it could have a huge positive if it's approved and also -- there's some obstacles, i'm not saying it's done but i think it will happen which will make it intreeging. let's check in with perry sook chairman and ceo of nexstar. welcome to "mad money." >> great to be here. >> thank you for being here.

i didn't know you were in town. now, i just want to be sure because i know it's difficult that the deal hasn't closed but that's a correct way to say, right. if it closes i can't say it's a done deal. >> the shareholder vote was approved last week by both shareholder groups nexstandary media general and laid out a plan for the doj and fcc and the last of those was made earlier this week so we feel we're on a path to completion. we have committed financing and haven't priced it yet but the money is available there so we're counting on a closeing. >> good. looks like you have a bit of a windfall when you sold some. very high multiples of cash flow when you sold them in local television, particularly in the medium size markets as you know there are a lot of aggregators of content, in terms of professional producers local content in the markets we operate in there may be three or four competitors and not a dozen or more so i think that we are

now seeing private equity come back in to start up some of these and speaks to the health of the business at the local level. >> that's what i want to do. we talk a lot about all these different kind of new media and yet when i read your incredibly good -- there's a june 26th decision. you have page after page about the actual industry itself what large-scale reach, what millennials watch and go over people. tv certainly didn't seem dead after i read through this deck. >> well, i've been working in the dying industry for now 35 year, jim. you know we do two things locally that are really important. produce local content and help local advertisers sell stuff and that also happens at the national level but we're much closer to the man or woman standing next to the cash register so take very much a bottoms up approach of growing and building the business and i think if you're true to your core mission of local content, hoping local businesses grow then you become much less focused on how you do that.

what technology you use. you use all the arrows in the quiver to make the best outcome for your client. >> and how about that stage that you gave us of what millennials look like and what they watch. >> when we were 22 we may not have been home to watch the news because certain establishments were still open for business. but as you get older, as your kids, you know you have to think about what to put them in clothing to put them out the door in the morning, you become more involved in your community, local news viewership has always been 25 to 54. i would say with the graying of america that may be coming more of a 35 to 64 but it's very much in line with the population. and i will tell you in our marketplaces our anchors are differencemakers known in the community and general managers you know are the mayors of the city. >> also cuts to the reason why we think the political advertising even though the web is caught on and you got these big national stations it really is local and the best way to get to it is through nexstar. >> all politics is local.

while we in a presidential year a third to 40% revenue comes from the presidential campaign. the real lift this year is further down the ticket senate race or house race where they may feel they might be negatively or possley affected by what's going on at the top of the ticket and we have senate races in nevada in illinois and in pennsylvania that will probably have the highest dollars spent to contest those races of any of the political races sdaltwide and have huge footprints in those. >> state pennsylvania, i know you started in scranton a republican senator may be concerned that in a democratic state that trump could bring that down and might be -- thrown out of office. the best way is to spread the money around nexstar. >> that's right. if you want to influence opinion reach the most number of people possible. the internet is an effective fund-raising medium 1 to 1 but a broad message out that's what broadcast does local television and that's why we are the number one stopping point for

politician, not only get their message out but to get their ads out as well. >> the last thing i need to worry about, want viewers to be cognizant of the balanceacquisition, debt. were you okay not without that worrisome cash flow covers it and seals to be a good situation there. >> we will. we'll have opening leverage approximately five times. we also operate at margins in excess of 40% so pro forma -- >> not a lot of competition. >> so $500 million a year of average annual cash flow. more in the political years, less in the nonpolitical but two-year cycle half a billion a year. we can plow through that. >> do you think the government says nexstar says it's done. >> there's statutory cap and be at 38.9% and make sure we're there but i will tell you that there may be some stations that are sold in the spectrum auction.

that clear cap space, you can say i cleared cap space and go back into the market ben. i don't think we'll ever be done but adjusting the portfolio. >> do i have to worry after the election there will be a sudden big fall off in advertising, something we brought up the other day. >> i don't see it coming out of the election. first of all we have all that inventory back. we can go sell it to regular advertisers, no crowding out there's got to be the demand there to drive the yield but our salespeople work hard every day to bring new advertisers to the business and we've got over 600 of them out on the streets every day so i don't see it happening unless there's a big falloff in the general economy. >> this is excellent. thank you very much to perry sook, the charel, president and ceo of nexstar, nxst. lucky to have you after we did that piece. "mad money" is back after the break. >> announcer: coming up cramer likes lululemon so why does the company founder think his enthusiasm is off base? >> that's because you have a very low volume yourself.

it should be double. so we're now talking billions and billions of lost value. >> jim's take on what lulu is doing right. >> look at this and say, wow, if this is bad, you know what do i think about the other people in your industry? this is the best stock i got in the whole group. >> why the company's founding father thinks he's wrong. >> so can you go and head and compare it against the bar you want to, jim, i'll compare it against the bar what's possible in the world. you have a low bar, jim. >> "mad money" returns next.

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outrageously high drug prices and other questionable practices. since that since stock has come down 90% in a brutal wholesale collapse but now that it's trading in the low 20s, we're starting to hear that valeant may become too cheap. with the stock selling for less than three times next year's possible earnings estimates. in fact this battleground stop caught the attention of value hunters. the short seller who initially trashed valeant last fall okay at 120 points ago, equating the company with enron. announced rieptsdzly taken a long position in the stock a couple weeks ago though when i checked in he said it was hedged with puts underneath so is it safe to go bargain hunting in valeant or is this a falling knife? but you know it's a tricky question. worked for awhile on this. so much different moving parts including their debt position and owes $30 billion and have a hard time paying back. the way that valeant just seems

to keep on creating new ways to disappoint investors, the fact competition seems ready to tear them apart, wow, this is a tough one and that's why tonight i want to take a different approach to evaluating value. we need to deconstruct this company. need to take a look at its core assets to see what's really going on at the company. get ago way from the chatter. the thing about valeant is that it is what's known as a rollup meaning for years they made acquisition after acquisition forward to fuel their growth rate. even before the stock price collapsed last year these guys had a business model that many people found questionable. after valeant bought a new company they would slash research and development spending in order to boost short-term profits at the cost of their future proz secondspectsprospects. now, the company has neither the cash nor inflated stock price to make more acquisitions kind of stuck with this bizarre conglomeration of questionable businesses without any growth. valeant gets 10% of its overall sales from dermatology and 15%

gastro gastrointestinal drug, 23% from generics and a bunch of cats and dogs make up 14%, consumer surgical denial oncology and remainder comes from overseas. biggest scombigs is generics since they're a commodity with no protection they own a bunch of low-cost pharmaceutical manufacturing facilities with not so hot margins. i don't find anything to get excited about in the generic market. it has three major units three with the potential to differentiate themselves dermatology, opththalmology and gastro gastrointestinal divisions. dermatology, okay yesterday was reported that the company's new ceo who came on the show as soon as he got the job wants to sell key assets in order to raise as cash. it helps them with athletes

foot fungus and aesthetic products to remove wrinkles but it may be the most troubled part of a very troubled company. when they reported its first quarter results earlier this month their u.s. dermatology sales were down a staggering 43% year over year. the key reason for this huge decline, filadore one of its practices were put under a microscope, well the wind-down of their relationship with them crushed the company's dermatology business on top of that valeant announced it entered into a new fulfillment agreement with cramer fave walgreens which sounds like a positive except now we're learning that the average selling prices for these drugs at walgreens are actually below valeant's costs. or as ceo joe papa put it we have got some significant challenges in dermatology primarily related to profitability. [ horn honking ]

>> that really blew me away. either those earlier sales were illusory, channel stuffing or price gouging or they're losing share hand over fist which in this business is -- what about new products. they're expected to launch two new dermatology products a treatment for plaque psoriasis and then the next generation of aesthetic device thermage. the aesthetic device is from a division that they're allegedly trying to sell and the plaque psoriasis drug has serious warts. their partner with astrazeneca which limits the profitability. second the drug's safety profile is kind of terrifying, the darn thing can cause events of suicidal ideation and behavior. originally amagain was partnering with them but amgen

decided to step away. i have a hard time seeing many doctors presign things that want make patients want to kill themselves. that's no way to deal with the heartbreak of psoriasis. they're trying to sell two of its unit to raise as much as $500 million. that sounds good right? well, wait a second. that's disappointing. given that valeant bought those in 2013 for 418 million and 250 million respectively so in terms of the dermatology business there's blood in the water and it's clear the sharks smell valeant's blood. and i got to tell you i think that allergen knows a lot of what to take here. how about this icare business one of their core assets buttress the by bausch & lomb a portfolio of eye care products they bought a few years ago. in addition to make everything related to contact lenses and a huge variety of eye drops they

also have drugs including a treatment for a glaucoma and a therapy for post operative pain in patients who've undergone cataract surgery. but here's the thing, in the last quarter valeant's eye care sales were down 30% year over year. and in a way it's more sun etting than the weakness in dermatology because management doesn't seem to acknowledge testify a problem. i think they're being hammered by the rollback of various price increases, joe poppa said he would do that and the deal with walgreens and the competition from other big contact lensmakers including johnson & johnson. how about the pipeline. valeant has one new eye care drug company later for patients with open angle glaucoma or ocular hypertension. with the fda expected to give its ruling late next month. management said they're optimistic about this but it needs to get approved and take a significant amount of market share before i'm willing to bet on it. who knows if that will happen. now, many times we've heard that

valeant could raise a lot of money if they were just to sell bausch & lomb which they bought three years ago for 8.7 billion. given their track record i bet they get less if they ever do decide to sell it and potentially much less in a for sale situation. if bausch & lomb gets up for sale who could do a better job than the ceo of allergen who used to run it. if they keep it look out j & j, what a balance sheet the opposite of valeant, crush them. valeant's final propriety business is gastrointestinal division which they got into with last year's $10 billion acquisition of saleix pharma. but salix has turned out to be a bust. just $208 million in sales in the most recent quarter. actually down from the quarter before.

linked quarter down and here comes allergen again asking the fda for permission to sell a generic competitor and while salman says they're highly confident in their patent protect allergen has a successful history of pursuing new generic opportunities. even without that competition it's clear valeant dramatically overpaid for salix last year which brings me to the sad bottom line of valeant. even if you forgot about the representational issues, the dangerous debt load, the loss of credibility, valeant has a pretty negative outlook for all three of its core businesses. that's why even after disliking it all the way down, i got to tell you something, i'm still urging you to stay away from it. and i like its competitors. why not buy allergen or j & j? they're the real winners here. jeff in massachusetts. jeff. >> caller: hey, jim. how are you doing. say hello to my kids tara and steiffens. i bought this at 50 bucks, it's 23 now for ionis

pharmaceuticals. what are your thought. >> we don't care where they come from. it was one of those where i just basically said listen you can't be in it. speculative stocks are no longer good an reiterate i think down here 20 i think it's a hold but not a buy. one other chief drugs looks like it's not as good as we thought. how about nick in florida. nick. >> caller: hey jim. how are you doing, buddy. >> doing real good. how about you. >> caller: i am outstanding. love your show you're crazy just like me. >> there we go. >> caller: i'm a holder of s ssrepta therapeutics. >> on muscular dystrophy. will it be approved? i have to tell you that adam t thirsteen told me i think this is going to get some approval. and that therefore, even at these prices it should -- it might be something that you want to buy calls on.

notice i didn't say common stock because it is binary. get approval it goes up a lot if they don't it goes down a lot. forget the debt and loss of creditability, there's still even down here and, boy, i disliked this tore a long time. even down here there's not a like to like about valeant. i caution you i don't think it's a buy. after riding 40% year to date might feel like the only deal you can find at ollie a bargain outlet is the store that sell i'll tell you if the company can continue its climb. then did you catch what some might call a spirited discussion with the founder of lululemon this morning? i'm giving you my takeaways from the exchange plus all your calls rapid fire in "the lightning round" so stick with cramer.

the retail cohorts ss dragged through the mud for months. many continue to struggle. there are a few areas working like the off price and bargain retailers. take ollie's bargain outlet holdings. olli which came public in july of last year and delivered

terrific performance up near 40% year to date right around 50% since the ipo less than a year ago. ollie's is your classic retailer that sells it at 70% discount. 218 locates but management believes they can expand 4 1/2 times that to 950 locations across the entire country. now, the company blew away numbers when it reported with ollie's posting a 3 cent earnings beat off a 17-cent base, pretty good with higher than expected revenue up 19.2% and solid 6% same-store sales worth but bullish guidance and said new storms continue to perform better than expected. could this be the next regional to national retail story that tell you i'm always looking for? let's take a closer look with mark brothers of ollie's bargain outlet holdings and learn more about where it's headed. welcome to "mad money." how are you, sir? >> hey, jim. good to see you. > great joy to see you. you have a concept that we often hear about off price but what we

never hear is about the transparency of off price. if ge has a lot of lightbulbs you say we got them from there and got them at our store. >> we tell the truth. look it's not cfls, not incandescent, whatever it is, it's a bargain. what we attempt to do is buy major name brand, bring them back to our stores and sell it direct to the consumer. >> i want people to understand that you'll say in your incredible website which looks like those old circulars but you're internet oriented particularly with ollie's army that you could say, look there's basically -- there are a couple of republicans that landed in -- somebody had too much inventory and we got axe and sell it to lower. >> look, there's a charm in telling the truth and there's a reason for us getting the product. we get package change color changes, last year's product, bankruptcies, any time there's a reason or a disruption in the market we have the ability to be able to prosper and have been

doing it. it's new to out public market. i've been doing it for 34 year. >> so beds and books and stationary. food candy, i mean all of this is available. >> yeah, jim, you never know what you will find and showed you clips of major name brands, many i can tell you about but by and large a lot i can't tell you about. i'm not allowed to advertise them so you see for yourself. you never know what you'll find unless you stop by and see for yourself. >> okay. are you conceivably though at the mercy of the closeouts? how do you have all the merchandise? i mean what happens if nobody goes under or is in trouble for a month or two or is there always someone in trouble. >> i'm not sure it's necessarily somebody in trouble but the manufacturers always are making changes. there's always a newness and need to make new product better product and that provides closeout opportunities. again, package changes last year's models. discontinued items, any kind -- >> i saw -- i looked at the quad copter drone.

how could you have quad copter drones. >> i think an importer in that particular thing imported more than he was able to sell at the price he brought it in at. we brought in several thousand. >> don francisco coffee. >> any time we get an offering that might be relatively close dated goods. we don't sell anything outdated. we might be 30%, 40%, 50% off the real stores. >> now, there is an element though to your company which is about the state of our times. >> yep. >> look dollar general, dollar thrifty, ollie's, these are who's doing well big lots what does it say? does it say the consumer is matthew and jpmorgan wrote a piece that said the consumer doesn't have a lot of savings. >> we have something that's incredible. we have something that america wants and that's a bargain. jim, a bargain will never ever ever go out of style. if we can give name brands and

sell it at drastically reduced prices, america is going to respond. >> now, there was a granularity on the call that was sprain and people worried about the week before memorial day, memorial day anticipate the weather because you mentioned the weather. are we okay? i mean i know you can't give me where we are in the quarter because -- but you just did that equity offering and did drop the stock. is everything on plan. >> i feel good about where our business s i'm not a seasonal business although q2 we do have a little more strength. the weather was lousy early may but i was really pleased memorial day weekend. >> i'm going to say that's okay. the last thing i need to talk about ollie's army. you have been a direct mail and flier company but you are going to be far more of an affinity group company. what will that do for margins and growth. >> i think for growth in particular first of all ollie's army is over 7 million members strong and they're incredibly responsive and encompasses 60%

of sales. >> and they do get a nice bargain. >> they do earn discounts and special invites to special events. but in particular what we're going to do what we hope to do if you join ollie's army and bought pool chemicals last year if i have the deal next year i think that i'm going to tell you about the pool chemicals, the likelihood of you needing it is pretty doggone high. all i have to do is tell you about it you'll be familiar with us and you know you'll save money and come back next year. >> you're not some manager hired by others. you have a big ownership stake. >> i do. i do. we're well over 20%. >> all right. that's whey want. that's marc butler co-founder, president and ceo of ollie a bargain outlet holdings. this is my next destination. stay with cramer.

>> announcer: lightning round sponsored by t.d. ameritrade. it is time. it is time for the lightning round. one of these -- >> buy, buy, buy. >> sell, sell, sell. >> and lightning is over are you ready, skee-daddy. cory in new jersey. cory. >> caller: boo-yah, boo-yah.

>> boo-yah, boo-yah. >> caller: i own freeport. what do we think. >> it can't be killer. kill piece on realmoney.com and say they cannot stop it. you know, okay i think it goes to 13 all right, now, goes to 11. i'll put myself out there. roger in michigan. roger. rog? ray, roger. jolly roger. >> caller: hey, hi jim, boo-yah. >> ah. >> caller: listen i'm a long-term watcher. i go way back to the larry kudlow days. >> holy cow, when i had hair. what's up -- no i didn't. >> caller: and you had spoken possley about altria and i bought 200 shares back then. this is like in i think '08. >> we know we've done fabulous without you.

the problem without you i don't like to recommend the tobacco companies but if i had to buy one i would do that or philip morris, pm. mike in illinois. mike. >> caller: boo-yah from chicago. home of the cubs with five all-stars. >> i'm home of the phillies. we lose every game and no all-stars. >> caller: many accidentally acquired shares of shshrire. it has brokes trying to figure it out. hole or sell. >> time to sell. >> sell, sell, sell. >> it was a real winner. thank you, paxton for doing so well for everybody. chris in new york. chris. >> caller: jim, instead of investment. n testimony os what do you think of senior properties housing -- >> i think it is good yields 8% and doing okay and i know ventos has moved up.

i think it's okay. let's go to tom in new jersey. tom. >> caller: hi jim. a big boo-yah from the garden state. >> be there a few minds, actually there, my house. what's up? >> caller: yeah longtime watcher and listen on satellite radio while driving home. >> wow. >> caller: could you please share -- cow share your thoughts on starwood real estate investment trust? >> you know i'm surprised it yields 9. again this is one that i actually like and i think is in good shape so i'll say yes to starwood. mike in illinois mike. >> caller: bippety-boppit but yahoo. >> thank you, mike mike mike. what's up? >> caller: you know northern tier energy is merging with western refining. the registration statement has been declared effective on may 23rd. all that is waiting is the nti share hold attorneys vote for

approval on june 23rd. that's expected to pass. why not load up and make a quick -- >> mike i'm not crazy bit. you heard me today on the action alert conference call. i'm just not crazy about fossil fuels. we'll steer clear. it's more of a utility. it's not the utility i want. can we take another? push pinder in pennsylvania. >> caller: jim. i love you, what's up. >> not much how about you? >> caller: good. excellent and question omed. display -- >> i like this company and a lot of traders have said they don't know what i'm talking about. that stock is a winner. i'm tired of people giving me trouble about a company doing quite well. how about we go to martin in georgia. martin. >> caller: yes, sir. i need to know about delta air lines. >> these airlines stocks they can't get out of their own way. i'm gun shy. i like southwest and that stock hurt everybody. southwest i'll stick by but

everything else i don't know and that ladies and gentlemen, conclusion of "the lightning round". >> announcer: "the lightning round" sponsored by t.d. amir ameritrade ameritrade. working 24/7 on mobile trader rated #1 trading app on the app store. it lets you trade stocks options, futures... even advanced orders. and it offers more charts than a lot of other competitors do on desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivatives pricing model, honey? td ameritrade.

well that's because you have a very low buy yourself.

again, lululemon invented this business. they should be five, six years ahead. they shouldn't have the declining margins. >> i jousted with chip wilson the founder of lululemon let ka over the notion that the company started and lost its way. it was a spirited and somewhat gentlemanly discussion that ended up being about how i think lululemon is doing a pretty darn good job and he thinks i'm letting the company off the hook by setting it too low. it seems clear cut. i held up research like these pieces and i sit down and read through the headlines like executing on margin turnaround, a bullish anall si analysis and reiterate guidance from key bank or sustaining momentum separates from competitors as processes improve and that's from stern agcrt. to me it was an empirically good quarter with sales rising 8% on a constant currency basis.

save the salonment mary dillon the best and excellent gross margins but thought to mr. wilson. >> well i think you're missing the point. >> well, i think you're missing the point. the point is if the company is being run so poorly and not just three years, probably four or five years, then you have to go after, not the ceo but you have to go after what is the board. >> i love when they tell me i missed the point. went to college to get stupid. he totally dismissed the current ceo, laurent potdevin but the guy has only been at the helm for three years. he couldn't be held for long-term underperformance and disregarded the fact that nike and underarmarm our see their stocks soon. is that better than down? just asking. he said i was looking at the company as part of a narrow context of competition.

i pointed out i couldn't find a single retailer with this kind of performance. sales were said it would him. why didn't he buy the company or at least offer what it would take to fix it. he just insisted well, guess what, then that i set the bar too low and talked about how lulu should owe the yoga category. when i saw the futility of arguing it was over but i found it constructive. first it shows you how darned hard it is to make money as an investor. wilson had been on power lunch a few weeks ago bad-mouthing the company but then it reported a fantastic quarter which is the only bar i care about, wall street and it's been off to the races ever since. you think the founder who people on the board would have a better sense than come on air and trash the company, have an excellent quarter. he really threw you off the scent. second you have to understand all business is relative. yes, lululemon should be bigger than by now given that fast growing yoga category but the turnaround took longer than expected because the franchise was damaged than the new ceo

realized. still same-store sales numbers don't lie. the company exceeding just about everyone in the cohort's numbers and that is what matters. finally this notion that lulu's weakness is the board's fault. absurd. what weakness? with those incrediblet the board was doing wong or what it should do to help the ceo or who was the cause of his displeasure given it's pretty stellar if you ask me. really on paper his people are save one the weakest appointees suffice it to say i think there wilson's position toward my view is ill-advised. i tried to set the highest bar there is. you no he that. a virtual pole vault. a high jump and by that measure i can tell you that only ulta surpasses their game. that is a buy not a sell to me and mr. wilson should go pick on someone else like the dozens of other retailers that failed to live up to the new standards set by none other than a rapidly improving lululemon. stick with cramer.

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i like to say there's always a bull market somewhere. i promise to try to find it just for you right here on "mad money." i'm jim cramer and i will see you tomorrow. >> wait, go up! [screams] hi, i'm jay leno. >> all: hi, jay! >> hi, everybody. how you doing? and this is a show about cars... it's fun to drive cars that are really different. i never knew the beach could be so much fun! and motorcycles... [revs engine] >> all: whoo! >> and well, anything that rolls.... like driving a two-story building. [brakes screech] oh, my god! strong as an ox! explodes... i love the smell of napalm in the morning.

>> yeah! >> or makes noise. >> you ever run a drag strip? >> no, i haven't. [engines roar] this is "jay leno's garage." >> start your engine. [engine purrs] [tires squeal] [police siren wails] >> get out of the car, sir!