>> i'm melissa lee. for more "options action" checks out the website and our daily segment inside "fast money." meantime, have a great weekend. don't go anywhere, "mad money" with jim kranl er 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! hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you some money. my job is not just to entertain you, but to educate and teach you. so call me at 1-800-743-cnbc or tweet me @jimcramer. another day where we have the total absurdity of oil being in control of the stock market. it is so breathtakingly stupid that i often hesitate to even tell you about it.

nothing can trump oil when it goes down. no amount of good news. so once again the markets sold off, the dow sinking 89 points, the s&p losing 0.38%. we're not going to get out of this oil conundrum easily. as i've told you many a time, you can deride it all you want, the linkage, absolutely. but you see, you can't dismiss the fact that oil is in control. and we've got a very firm pattern going here. oil is a hard-time rally on the fundamentals because we have a dramatic glut thanks to aggressive pumping really by the saudis. the correlation with the stock market revolves around demand. the supposition is when oil is weak, it's because of u.s. demand weakening. therefore our economy must be slowing. this linkage will not break until it breaks. see, we don't know when the market will come to its senses. the oversupply drives oil down to the $40 level. right now it's at $43.

when we got to $40, you know what happens? like clock work, the renewalors begin that the saudis are going to cut back or maybe freeze production. and then what happens? crude rallies. it rebounds to the 45 to $47 range. taking the stock market with it. because the buyers of stocks don't seem to care how oil surges. they just assume it's because of an accelerated economy and that's good for stocks. remember there is no jail we can put stupid people in. we can't take away the capital of those who trade like this. that won't happen until their investors realize the absurdity of their own strategies. why did the rumors start about oil rallying? well, i'll tell you the reason why. because the saudis actually need oil higher to pay their bills. it's a heck of a lot better to rumor monger prices higher for oil than to actually cut back production. you get the same result. that's why we are where we are. okay. enough explaining, but i always have to make that point because

that's why the market was down. let's go to the game plan, try to figure out what's going to happen next week, x oil. first on monday we have an analyst meeting for a falling star, gopro. remember gopro? this one became the object of what i call too much love. it was a total cult stock. and back in october 2014, the cult took it all the way up to $95. it's been pretty much straight down ever since until the beginning of the year, when gopro bottomed out in the teens. i think the company got a shot -- it's got a shot at this analyst meeting to tell a pretty good story. this is a little change of pace for me. the story is about the new iteration. it's the hero 5. i think it will do very well, and i think inventories for other iterations are quite lean. i believe gopro stock has a one down, two up opportunity. meaning that you could lose a point here, but most likely i think it will go up two in the wake of the meeting. not instantly.

we hear from ascena formerly known as dress barn. it's now an amalgam of brands that have performed quite poorly of late. at just under $8, boy would i like to be bullish. but we are in a show me mode for retail. it was once a great story. i don't know if it can be a great one again. the rest of the week has got some real fireworks to it so strap yourself in. we hear from two home builders, lennar. that's the largest by the way, and kb home on tuesday. i don't know what to say about the home builders other than they're very cheap, but nobody seems to care. lennar is big. we got horton, we have lennar. we had toll brothers earlier this week. they're all very sizeable, but i focus on lennar because they've got the best feel for the country. it's a very fine company. stewart and miller has got stock. it's down 9% for the year, though. quite extraordinary given how well the company is doing. i mean this is historically been the best run company in the industry. now, not so best run, kb home. but we've liked this one a great

deal because the stock is so inexpensive and its shares have rallied about 20%. judging by kb homes's california exposure, the risk/reward could be really good here. so lennar, a little dangerous. kb, i like. two others report after the close. really interesting. fedex gives you a great reading of the economy, and adobe. both stocks have pretty much performed in line with the afternoons. i expect each of them to announce good quarters. i am particularly enamored of adobe because of the fantastic cloud business it's developed. if you listen to oracle's call last night like i did, you can hear how much the analysts are still gaga for the cloud, even though they're cool toward oracle's legacy business. adoeb by doesn't really have a legacy business. it's mostly a software as a service company and it tends to trade erratically after reports and ends up rallying. if it reports a number and it gets hit, don't sell.

it could be a better story than you think. wednesday is fed day, and the recent weakness in the data, and then the punk retail sales seems to have quelled the move toward higher rates that we thought were on the horizon. just last month. sure, a surprise rate hike would hurt this market very much, but a stay the court, perhaps one rate hike this year, like last year verbiage, in other words they don't say anything really zro dangerous, that shouldn't disturb things at all. the markets tends to run up into them so beware of a quick post-fed meeting sell off in the afternoon, and then if you want to start buying a stock that you've been waiting for to go down, that's when you pull the trigger. question have three companies i feel could report problematic results on wednesday. here i'm talking about carmax, general mills, and bed bath & beyond. that's the only one that reports after the close. the others are in the morning.

carmax is the auto retailer. it's been hit or miss even though it's largely been hit these days. i just want to hear what they say. you know i don't like the automotive stocks. general mills has preannounced that expectations got too high, including the expectations we heard about on this show. this could be a good time to buy the stock of one of the best companies that follow after all the washout. you need to accept the fact that food stocks have been challenged by food deflation and embattled supermarkets, for now. bed and bath has becoming a whipping boy for amazon. while we keep expecting something positive to come out of this retailer, it never seems to happen. we also hear from red hat, which reported, i think a misinterpreted quarter last go-around. i found it better than expected. should clarify things with good numbers. and i think therefore it could go higher. one stock that i've been very fond of over the years is auto zone. that's an auto parts retailer. the company reports thursday morning before the opening, and the pattern on this one is a dip

and then a rally. as we hear about how it's going to reload on its magnificent buy-back. by the way, this is a buy-back that i've regarded as the single best on the new york stock exchange. any dip, fall into the zone. here's a troublesome one, rite aid. let me tell you this is very difficult to explain, but i'm going to give it a shot. this company has been merging with wall dpreens for ages. i use the term "merging" as opposed to "merged" because the government simply hasn't been willing to check off on the darn deal. you know it's been 11 months now since it was announced. i think the quarter will be weaker as companies that are for sale that long like this, they tend to lose focus and lose good managers. i hope that rite aid announces they're going to sell a huge chunk of stores to kroger so the deal can be consummated and get the ftc off their back. but rite aid's fate is very much in the hands of this very fickle organization that is the ftc. my charitable trust owns the

stock of walgreens, the acquiror, and i remain a steadfast supporter of that stock. finally on friday, we hear from finish line. this is the footwear chain. this company has repeatedly under performed competitor foot locker until the last quarter, which was quite a good one. i expect another fine quarter when reports this time around. my suggestion is not to buy finish line. i'd buy foot locker going into the quarter and then buy more of it gets hit on any sort of finish line disappointment, not that i'm expecting one. earlier this week i told you that foot locker is a winner. i think foot locker stays that way. so here's the bottom line. this market is in the grip of oil. if oil goes down just a little bit more, the rumors of a production freeze will start, and that could lead to a snap-back in crude, which makes me feel a little bit better about the market after a pretty torturous period.

i think we're going to get ourselves a rally. however, all three have to happen to make it work. if you don't get all three, we'll probably experience the same old torture we've had to embrace since this tough month. the worst of all 12, began. just 16 days ago. gabe in california, gabe. >> caller: jim, i am a huge fan of your show. >> thank you. >> caller: i wanted to ask you about exxon mobil. i wanted to know what is the different de dividend? >> it's the safest of all the oil companies because exxon has the best balance sheet, and it is a very conservative company. that said, i don't see a lot of growth. understand that a verizon or at&t could be better if you want good dividends and better yields. all right. with lego three for three, a fed on hold, solid oil inventories and some intentional rumors -- oh, i mean reports of a saudi output freeze? that could produce a rally.

don't get too comfortable. that's a lot to go right. on mad tonight, it's the name behind some of the biggest brands in booze, from johnny walker to kettle one. but should you take a swig of dee aujio. i'm looking for value meals in this market. though the sentiment has turned negative for the restaurant group, i'm eyeing a few plays that could pay. and it's been a tough week for the banks. i'll tell you what your next move should be if you have an investment in the group. so stick with cramer! >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.

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the business, and the community. pg&e really is an expert in saving energy, and that partnership is extremely exciting. together, we're building a better california. as this choppy market goes back down, i'm going to help you find high quality stocks that are worth owning even if the u.s. economy is slowing or heaven forbid, the federal

reserve makes a surprise decision to raise interest rates when it meets next week, which brings me to diageo, the high-quality british liquor company that's the world's largest maker of spirits. diageo is responsible for some of the most popular alcohol brands on earth, including johnny walker, a close friend of mine, always like to disclose these things as well as ketdle one, smirnoff, the captain, along with several wines and beer brands like my wife's favorite, guinness. now, it's been a rough slog for diageo's stock. the darn thing is pretty much even with where it was four years ago. despite its underwhelming long term perform, i've stuck with diageo because i think it's an impressive stable of brands that represent real value. and with the shares up more than 3% year-to-date, i'm feeling increasingly like diageo is an idea whose time has at last one. this company is giving you three potential ways to win and i bet did could have a lot more room

to run. plus the 2.8% dividend yield is a heck of a lot better return that the 30 year treasury. what are the three ways to win? diageo is not just a liquor company. it's a liquor company based in the uk. that's right, the united kingdom. after the brexit vote over the summer, the pound went into freefall versus the dollar and the euro based on fears about europe's economic outlook if they really follow through with leaving the european union. remember, while weak currency makes imports a heck of a lot more expensive, it's also god's gift to exporters because it makes the products much more competitive overseas. remember, anybody has a vodka, right, but this is now the cheapest vodka. it's like the equivalent of a price cut except you don't actually have to lower your prices. in other words, the plunge in the pound sterling has been fabulous for diageo. after all, diageo is a huge

exporter of scotch, again my buddy, pal, friend johnny, which means the company is making a killing from the weaker pound. not only are the products suddenly a lot cheaper for foreign buyers but thanks to the lo lower exchange rate, it translates back into many more pounds. mmm, cheap scotch on myelin ole yum floor. specifically diageo gets 25% of its sales from scotch which, by definition is produced in scotland. therefore, the pound is the currency that matters here. plus, because more than 90% of the company's sales come from outside of the uk, the currency translation benefits here are enormous and underestimated. that's why goldman sachs raised its earning estimates for diageo pretty substantially in the wake of the brekity faloulout. don't forget, though, i said diageo gives you three ways to win. the weaker pound is just the first. what about the second in this could be the most important.

again, no one is talking about this. i am talking about the return of china. last night i told you about how the big crack down on corruption by the chinese government crushed the macau based casinos as all the expensive junkets to macau for high-level politicians suddenly dried up. but the crack down was coupled with an anti-vice campaign, which specifically targeted the kind of expensive liquor that people regularly give has gifts to government officials, aka, bribes. no, they didn't give this one because that doesn't get the job done. so china was a huge market for diageo, but the corruption clamp down really ate into the business. on top of that, the weakness in macau certainly didn't help either because casinos like their customers liquored up when they're gambling. johnny walker volumes declined by 18.6% in the asia-pacific

region. that's why it's so significant. it seems the chinese communist party is softening its stance against vices like alcohol and tobacco. the anti-vice clamp down is easing. and if gambling is coming back, then drinking can't be far behind. so while it could take some time, i think we're going to be looking at a resurgence in the high end chinese liquor market and that is great news for diageo. one more point on the people's republic. i believe that bribery will make a big come back there, hence more demand for the high end one. chinese's economy isn't designed to work without a little corruption greasing the wheels of a vast bureaucracy. in the end, the chinese communists who run thing only care about more than economic growth than keeping their hands clean because growth is what keeps them in power. all the more reason to like diageo. finally the third big reason to

like the stock, i think diageo could be a takeover target. there's been a lot of consolidation in the alcohol business. we know that diageo is the target of takeover rumors before. last year we heard some chatter that a brazilian billionaire was considering a takeover bid, although it never actually materialized. but diageo is a more than $70 billion company, which is pretty big. it's also potentially digestible, and it's got a portfolio of terrific brands, in other words, a portfolio of a portfolio that many a business would like to get their hands on. n however, you got to remember that ab and bev is a serial acquirer. they're addicted to doing deals. and now that they've gobbled up sab miller they're free to focus on their next target. i think the world's largest beer combining combining with the world's large -- is a good idea, especially since the spirits

market is going faster than the beer market. i never recommend a stock on "mad money" solely on a takeover basis, but diageo has got two other positives, the dramatically weakened british pound and the softening of china's anti-vice crack down. one more thing. a few months ago we learned that diageo had appointed a new board member. he's a private equity guy who also served as ceo of by cardy over a decade ago. fairen is going to take over as the chairman of the board. given that diageo has underperformed the market in recent years, there's a lot of speculation that fairen will focus on cost cutting, bolstering the company's growth, which probably means either doing some deals or implements a monster buy back. a new chairman coming in gives this story an extra boost. with diageo trading at roughly 20 times, i think it's relatively inexpensive. let me give you the bottom wlien here. diageo gives you three ways to win. there's a british liquor company that's seen a boost from the

post-brexit collapse of the pound. we're seeing signs the chinese spirits market might be coming back to life. and it's possible anheuser-busch imbev might want to acquire the whole darn thing. put it all together, and diageo is exactly the kind of foreign stock that's worth buying into any sell-off caused by domestic worries. here's a toast to diageo. well, anyway, may you go to 120, diageo, but only after cramer ar kens get a chance to buy. i'm dishing on the restaurant stocks. i'm giving my take on some plays that could super size your profits long-term. then what weak retail sales mean for the bank stocks. don't make a move before hearing my take on the group. plus, i'm turning in my homework, including one social media upstart that's unlike many others in the business. i'll see if it's worth friending. i say stick with cramer!

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after a pretty placid summer, this market has suddenly gotten very volatile very fast. it's not just because of the looming fed meeting next week. we know from tuesday's delivering alpha conference that many big institutional investors are who control the day to day direction of the market have gotten a lot more cautious about stocks as an asset class. they're calling it dangerous. we know the averages have turned into a roller coaster. in short, we no longer have a rising tide that's going to lift all boats. instead we're sailing through a storm wracked ocean and not every ship is equally seaworthy. if you want to ride out this choppy period, you need to get nor selective, particularly in sectors which have very clearly fallen out of favor on the wall street fashion show. i have to totally mix my metaphors. take the restaurants. i mean this group has just been

mercilessly hammered and it's for a variety of reasons. people are going out last because it's cheaper to stay at home and cook for yourself. that's what i'm going to be doing tonight thanks to the massive decline in the price of food. plus when you stay home, you can watch tons of great programming on tv or play video games. those are the two favorite past times of the millennial generation. at the same time labor costs have been rise ago cross the country. that's because the state and local level minimum wage increases and we're seeing a broad based decline in consumer demand. put it all together and you can understand why the restaurant cohorts really stuck in the dog house. you know what? at times like this, managers often end up throwing ou the baby with the bath water, dumping everything in the sector and giving some excellent points. when if comes to the restaurant space, i think your best bet right now is to use the weakness to build a position in either starbucks or panera bread. these are two stocks we own at

my charitable trust. jack moore and i explain all of our moves before we make them. why these two among all others? i think starbucks and panera represent great value here. both companies have individual narratives that should help bolster the performance going forward, separating them from the broader restaurant herd. they have special situations that are underneath the rally, the rally that i think they're going to have. they're not just another restaurant chain. why don't we start with panera bread. not the chili bowl. no, look at that. there's nothing in it. there's something in the -- well, anyway, after roadside restaurant chain cracker barrel disappointed earlier this week with a hideous quarter, terrible guidance and even worse commentary, the negative pin action took panera down along with its investors, worried about weakness in the entire industry. but i think it's a mistake to

bunch the health conscious and high-tech panera bread in with a not so healthy chain like cracker barrel, where a long time and 30 pounds ago, i would have the apple pie a la mode with a big of slice of cheddar on top. really good. for one thing, cracker barrel reported a 3.2% same for sales growth and then forecasted a 1 to 2% growth for the next year. this was well below what the analysts were looking for. last time we heard from panera, other than when i dropped the roll on the floor, it's how many seconds it's been down there. like two minutes? it's okay. it wasn't there long. when they reported at the end of july, the company deliver aid 4.2% same-store sales increase. i got to swallow this because my mother said never talk while you're chewing. bear with me. tastes like the floor.

on top of that, panera's bakery cafe concept remains one of the most appealing stories in the group. we know t here's a restaurant chain that's showing itself to be incredibly tech savvy. management has embraced systems that allow people to order food via the web, enabling rapid pickup. remember when the ceo said he didn't want his kid in the mosh pit. they can put a lot more people through the stores very quickly. on the latest conference call, digital orders made up an astounding total. and during the prior week, they had a digital utilization rate of 20%, with many remodeled locations coming closer to 30%. panera's tech overhaul is clearly working. it's boosting traffic in the stores and i bet it continues to help company generate some strong same-store sales, unlike cracker barrel.

we know they're doing well. but get this. the stock was at $224 not that long ago. it's down to $200 as of today. i think that's that sector wide sell-off speaking. i think you have to regard this weakness as a buying opportunity. worst case, it goes still lower. you know what? that's bargain basement prices. i would buy more. this is the asian chicken salad that i like so much. it's like $4.38 or something. how about starbucks? after a long period of explosive growth where its stocks seem toed unstoppable, starbucks as down shifted a bit in recent quarters. in fact, management seems to be making an active effort to rein in expectations. i think it's a smart move for a company that can't keep posting the spectacular same tore sales growth investors have goim accustomed to. nobody can keep growing like that forever. starbucks has the best technology in the industry. some people say it's really a technology company disguised as a coffee company. these guys pretty much pioneered mobile ordering. now they're taking that system global, having just recently

launched in china and japan. now, when starbucks reported last july, there was a bit of a kerfuffle about their rewards program, shifting from a frequency based system to a dollar based system. something that may have been a drag on the company's same-store sales which came in at 4% in the united states after 25 quarters where they never went below 5%. remember, we mentihad to mentiot the below 5% was really kind of a head-turner. you know what, though, there's widespread agreement that the slow down was a temporary anomaly because the new rewards program interfered with the happy hour promotion. still starbucks grew its rewards program by nearly 2 million members. that's up 18%. year-over-year, that's amazing. going forward, the new setup will encourage members to spend more money. beyond everything else, though, i like starbucks because they're taking share and taking names in

china. this is one of the few cups that's never complained about weakness in the people's republic. they already have almost 2,300 stores across more than 100 chinese cities, with 7% same-store sales growth. while the rest of the world frets about china, starbucks is going full speed ahead. i'm confident that one day china will be the largest market. that's how much the chinese love their starbucks. still one more reason why i find the stock attractive. you're down at $53, $10 from its all time high. oh, and i love the cramer. pho at a time when investors are fretting about a recession in restaurants, panera and starbucks are looking good. if they keep going lower, all that means is the stocks are getting still cheaper. i think they represent terrific long term investments here, emphasis on the long term, not trading. i would be remiss if i didn't mention mcdonalds. after spending months roaring higher, mcdonald's has fallen

into a rutd lately with its stock sinking nearly 6% over the past three months. at that's levels, the goeldsen arches sports an attractive -- look, the turn here, spearheaded by all day breakfast and the new value menu is far from over. if you are terrified of the restaurant group but you feel the need to own something in it simply for the sake of diversionification, mcdonald's is the way to go. here's the bottom line. this is a very tough environment for the restaurant sector as a whole. you have to understand that sooner or later this industry is coming back. when it does, you'll be in a great position if you take advantage of the current weaknesses to buy some high quality, long term names. here i'm thinking panera bread, starbucks, or mickey d's. let's go to dominick in florida. dominick. >> caller: booyah, jim. what's going on? >> not much. finishing the week. how about you? >> caller: i'm doing great. i'm just got myself stuck in some chipotle and i'm wondering what you would do. >> you're not stuck. the other day my chipotle in

brooklyn was packed. remember what we're doing. it's the level i think buyers keep coming in. you have to have a lot of time pass before people begin to forget the incidents. it started a year ago, and they lasted until december. so we don't annualize the year until december. take your time, but i would hold on. you're not stuck in it. how about merle in new york. merle. >> caller: hi, jim. how are you? thanks for taking my call. first let me thank you. i made a couple of thousand dollars on celgene. >> how can i help? >> my question today is cvs. the omnik acquisition and the target acquisitions have been very beneficial. do you recommend holding the

stock? >> you're right, the target deal is good. the problem obviously you saw it because you're very sophisticated investor was that mckesson was downgraded today. cardinal was downgraded today. there are a lot of people very worried about that pharmacy benefit manager business because there's no more really aggressive price increases in the drug business. so i do prefer walgreens over cvs, but i would not sell cvs at $90. that would be a mistake, i think. the market can be unpredictable, but you can count on one thing. americans will return to their beloved restaurants eventually. that's why i want you to consider buying high-quality names like panera, starbucks and mcdonald's on weakness. maybe we'll do some takeout. there's much more "mad money" ahead including my response to the kra americans out there who forced me to do some extra homework. i'll reveal my findings including under the radar social

media stock. and bank stocks have been showing signs of life but the group has taken a turn this week. ugly. with the fed meeting looming, i'm giving you a plan of attack. then i'm working for the weekend by taking all your calls rapid fire in tonight's edition of the lightning round. so stick with cramer! this car is traveling over 200 miles per hour. to win, every millisecond matters. both on the track and thousands of miles away. with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere. brakes are getting warm. confirmed, daniel you need to cool your brakes. understood, brake bias back 2 clicks. giving them the agility to have speed & precision. because no one knows & like at&t.

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every now and then i get a call about a stock that i'm not familiar with. because i'm a big believer in rigor whenever i'm stumped, i like to take my time, do some homework and then get back to you this. is the most interactive show on television. so with that in mind, let's do some housekeeping. back on september 1st, vicki in new jersey called me about meet me inc., a teeny, tiny, super speak lative company with a $5 stock. it's a social network for meeting new people with more than a million daily active users and 80% of that traffic comes from their mobile app. according to the company, about half of the users are trying to make friends and the other half are looking for dates.

now, meet me bills itself as a kind of combination of chat apps and dating apps because their platforms let you do both things for free. so how do these guys make any money? it's a combination of advertising and sush description products like enhanced search capabilities and better messaging. even though this is a very crowded market, the company has been growing its user base steadily, up 32% year-over-year. that's very good groekt. back in june, meet me acquired a similar social media messaging network, which has a much larger international audience. what's most impressive is meet me is actually profitable. they earn 12 cents a share last year and their revenue growth seems to be accelerating dramatically. they got a pristine balance sheet, hence why the stock has rallied more than 50% year-to-date. however, after rocking up to $8 in early august, we did learn the ceo sold 70,000 shares to these levels and the stock sold off more than 30% in the span of

two days. since then it really hasn't recovered. my view, insiders sell for lots of reasons. i think meet me is a high risk speculative company but the fact is it seems darn cheap, trading at just 13 times next year's earnings estimates. at the end of the day, i'd rather stick with facebook as a core holding, which is we own it for my charitable trust. but if you want to do some speculation with your money and, you know, let it be money you're not afraid to lose, then i am indeed blessing the stock of meet me. because it's fast-growing with real profits. thank you to one of our readers for bringing that. i got to tell you, when i read t i said i got to talk about this. this is exciting. next up on august 31st, glen in new york asked me about a company called energy recovery. the symbol there is eri. it's a maker of energy recovery devices that are used in water desalnization. basically the company helps recycle and convert wasted

pressure energy from various industrial processes, turning it into usable electricity and saving the clients more than $1.7 billion from energy costs annually. nearly a year ago, energy recovery signed a 15-year contract with slumber jay, the oil service titan. they paid $125 million for exclusive use of their hydraulic pumping technology used in fracking. the deal validated their technology and also gave them some major inroads into the oil and gas industry. and nearly a year later, it really seems to be paying off. when energy recovery reported last month, the company blew away the numbers, and the stock shot up 14% the follow day. however, at this point i kind of feel we're a little late to the parrot. energy recovery has now doubled year-to-date. that's just too rich for me. i might be willing to bless that one but only after speculation. finally on september 7th, john in connecticut wanted to know about a company called lemay

tri. it's another super small cap stock. le matery is a medical supply company making shunts, patches, vascular grafts and catheters. le matery may be tiny, but this company has been a serial acquirer of other companies. however, even with all these deals, the company is still forecasting a 12% organic growth rate, in other words not the growth rate they purchased but the actual innate growth rate, and that is very impressive. until recently, the stock's performance in 2016 had been pretty lack luster, then shares jumped a week and a half ago when the fda issue aid warning about a competitor product. after reporting multiple adverse events. now, this comes on the heels of baxter issuing their own safety warning back in june. the result of that first warning

is that le matery's competing product, a patch, grew at a 36% clip in the most recent quarter report at the end of july. this product makes up 20% of the company's sales and i bet its numbers get even better going forward because of that problem with the other competitor. look, we know the medical device companies have been a safe haven, but after this recent rally, le matery has gotten expensive. honestly i have to ask you why pay that much for these guys when boston scientific gives you a nearly as much organic growth, but it only sells at 19 times earnings. my take, i would take bsx over lmat any day of the week. homework is turned in. now i want you to stay tuned because the lightning round is next.

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>> announcer: lightning round is sponsored by td ameritrade. >> it is time! it's time for the lightning round! when you hear this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." let's start with ron in new

york. >> caller: hi, jim. with all the problems such as the allegations against berkshire hathaway of a reverse ponzi scheme and with wells fargo, is it safe to stay in berkshire hathaway b. >> i think that's a little harsh to call it a ponzi scheme because there's been no criminality proven, but i would say the investments warren buffett has been making of late has not been performing that well. to go against the master, no thank you. i think berk shirk hathaway is a buy. earnest in new york. >> caller: that's me. >> yo yo, what's up? >> caller: i just got a question on colucid. >> it just did a secondary. i have to come back and do homework on that one. that is not one i am that familiar with. let's go to nick in pennsylvania. nick. >> caller: hey, jim. great to talk to you. >> thank you.

>> caller: >> i'm not a big believer in the refinery stocks. i don't think the margins are going to increase. i think they're going to shrink. i would be a seller of valero. sam in michigan. >> caller: thanks for taking my call. love the show. >> thank you. >> caller: i was wondering what your thoughts were about nxpi for about a four to five month holding period. >> i got to tell you it's a big position for my charitable trust. i think it is very inexpensive versus growth rate, and you should be a buyer. and that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the light round is sponsored by td ameritrade. fed chief janet yellen's card has real value. it's like an honus wagner. same goes for the stanley fisher card. he's the iron horse. nick in my home state of new

jersey. nick. thank you. nick. is that nick? >> caller: yeah. >> you're up. >> caller: hey, jim, how are you? >> oh, i'm sorry. >> i want to trade a mint fisher. i've got a mint fisher here, for a yellen? i mean, this could be a swap of a -- oh, sorry there. anyway, you know what? it's time to sell your collection of fed trading cards and put a little less emphasis on these guys, okay? how do you recover from a loss? >> well, here in dallas, that muffled sound you hear in new york is me screaming in that pillow. i don't get over it. this is my new alert system for whenever anything happens in the market. kid's a natural. but thinkorswim already lets you create custom alerts for all the things that are important to you.

shhh. alerts on anything at all? not only that, you can act on that opportunity with just one tap right from the alert. wow, i guess we don't need the kid anymore. custom alerts on thinkorswim. only at td ameritrade. it's scary when the lights go out. people get anxious and my office gets flooded with calls. so many things can go wrong. it's my worst nightmare. every second that power is out, my city's at risk. siemens digital grid manages and reroutes power, so service can be restored within seconds. priority number one is keeping those lights on. it takes ingenuity to defeat the monsters that live in the dark.

what a terrible week for the banks. first we had the nightmare of wells fargo admitting that it bilked tens of thousands of customers through overly aggressive cross selling. ceo john stumpf came on the show and apologized for the bank's actions and put the misdeeds in a multiyear perspective. but the stock fell every day this week. vastly under performing a very bedraggled group. next week, stumpf goes to

capitol to answer questions about wells fargo's egregious past. i'm sure we'll hear back about the need to claw back bonuses that might have otherwise been -- well, make they were based on hitting those cross-selling targets. i got to tell you i think the whole testimony will be ugly. so the stock, i think you come under pressure again next week. then we learned that retail sales for august fell 0.3%. that's quite a weak number, one that will encourage the doves and discourage the hawks when the federal reserve makes its rate decision next wednesday. it's awfully hard to raise rates until a moment when the country is clearly experiencing a spending slowdown. much of the rally in the bank stocks from just a few weeks ago was based on speculation that we'd get a rate hike maybe as soon as next week. janet yellen pretty much endorsed that strategy. just last month when the fed met at jackson hole.

the message was driven home further by vice chair stanley fisher in a cnbc interview where he basically said that we can't rule out two rate hikes for the rest of the year. the banks roared on that commentary. so the stocks were ripe for a fall as the prospect of near term rate increases had bank investors sal vating. it looks like it was premature salivati salivation. then adding insult to injury, we got the news that the justice department is seeking $14 billion, one four billion onfrom deutsch bank for misdeeds involving the mortgage crisis that precipitated the great recession. the whole market capitalization of doish bank is only $18 billion. so paying $14 billion would be what do you think a hardship. but deutsch bank's rebuff seems very ill advised. t i totally get that deutsch bank, which was actually integral to creating some of the more arcane products that made the mortgage crisis so hard to solve wants to avoid paying the fine and thinks it's out

landish. so did jpmorgan and city group and they ended up paying fines to the justice department in order to resolve their leg situations. i wonder what deutsch bank is thinking because unlike the huge american banks, the repercussions of getting ultra-tough with deutsch aren't as great. i can't help but wonder if wells fargo thought it was getting off lightly with its $185 million in fines and misjudged the public outcry and the possibility of justice going after it for wrongdoing too. something that we heard rumored later in the week. altogether i know doesn't it feel like banking armageddon, not long after we were in banking haefb. i say if you own these, let it all play out. higher rates will come eventually, and they'll boost the bottom line. in the meantime, the pain doesn't seem to be done. so anyone who's not yet in the group, i think a better entry point awaits.

so no need to buy the first dip after a big rate hike-induced hope that now looks like it's not going to come as soon as the next week. like some people, including yours truly, expected just a few short weeks ago. stick with cramer. it's not just a car... it's your daily retreat. go ahead, spoil yourself. the es and es hybrid. this is the pursuit of perfection.

whmade plastics that tmake them lighter?rs the lubricants that improved fuel economy. even technology to make engines more efficient. what company does all this? exxonmobil, that's who. we're working on all these things to make cars better and use less fuel. helping you save money and reduce emissions. and you thought we just made the gas. energy lives here.

experience the thrill of the lexus is f sport. because the ultimate expression of power, is control. this is the pursuit of perfection. intel hit a high this year, and i am a huge backer because i think he's making the company better and better each quarter. this was actually a low inventory chip quarter, but they did see a turn in personal computer demand. i want you to keep your eyes on hpq. i think that one, very cheap. by the way, so is western digital. bull market somewhere. i promise to try and find it just for you right here on "mad money." i'm jim cramer, and i will see you monday!

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