>> dan. >> utilities. >> did you say ut? >> the uts. >> i'm melissa lee. thanks so much for watching. see you back here tomorrow at 5:00 for more "fast money." meantime, big "fast money" with jim cramer starts right now. my submission simple, to make you money. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now. may, ihey, i'm cramer. welcome to "mad money." welcome to kramer ca. my job, not just to entertain but to teach and put it perspective. so call me at 1-800-74 p-ensemble. or tweet me at jim cramer. there are two ways, two ways to approach the federal reserve's decision today, to do nothing, keep rates low because there's still not much growth or

inflation. you can jump up and down, screaming that the fed has to raise rates and start talking about the november or the december meetings. or you can just get on with your life darn it and start buying the stocks in companies that do have growth. either way we're now past the big bad event and that almost always brings in buyers which is what happened today. the dow rallied 164 points. s&p gained 1.09% be ands nasdaq kpliemed 1.03%. i say you got to say to yourself, how come i'm not upset about the fed's decision to do nothing? because like janet yellen, i see little infrags and low growth on the horizon, which means raising rates would be kind of a stupid idea. why does the fed need to tighten with inflation tamed and retail sales weak, manufacturing turning more negative? what's the point? to appease the critics? to make it so the commentators that come on tv and predict stay rate hike look smarter? to say, who cares, let's tighten? party down, tighten?

the fed is not on autopilot. unlike the constant gripers, i salute them. so from a stock perspective, what do you do when the fed traces out a long term vision with such meager growth, pretty simple. don't outthink it. look for companies that have above average growth in that environment with stocks that don't adequately reflect the strength of their numbers in a low growth world. we know that finding companies with growth built in organic growth, but we want built in organic, not add on growth, they're kind of like finding a needle in a haystack. you know what, though? you follow enough companies like i do, you feel around that haystack, next thing you know, your hand is covered with needings, like two recent ipo faves. twilio. remember that? powers all the stuff behinds the saebs or acacia communications or the red hat i said last week would have a blow out quarter and that's exactly what happened or like the three needles we got

last night from kb home, adobe and fedex. now, any one of them could have bemeaned the slow growth environment or succumbed to it and we would have all said slow go, what can you do? instead, it then prospered. i wajt to talk about them because all three were indeed gettable as stocks. in fact, i recommended all three in last week's game plan. they were stocks to buy both before and after the fed meeting regardless of what happens because, well, like i said, after the big bad event like we had with the fed meeting, the market tends to rally. let's start with fedex, raised guidance miethsdly because the business of e-commerce is growing by leaps and grounds. fedex ground service posted an amazing 12% growth year-over-year. double-digit growth for this old line industrial transport. ceo alan graph said fedex simply knocked the ball out of the park with this quarter. after listening to the

conference call, it's clear the amount of e-commerce does know no bounds. this time the company indicated there's a whole new class of goods increasingly being shipped by fedex including televisions, mattresses, and trampolines. they're all being called out. trampolines. go figure. as graph pointed out, originally we did get a little surprised by the huge quantities of these oversized things, end quote, but now when you hear fedex is shipping all this mid-you got to recognize how good that is for amazon and how bad it is for traditional bricks and mortars retailers. still i know many people are concerned that eventually amazon is going to come in against fedex and put the hurt on them. however, given fedex is now taking market share for 17 consecutive years, i feel confident that the future is going to be brighter than the past, especially as the company integrates t and t express to extend its reach even more globally. i am not concerned about amazon building out a competing network

because there's more than enough business to go around for many years in the future. management which pointed out that it's buying back stock hand over fist, because it's undervalued also mentioned that the package pie is expanding not just because of the growth of e-commerce but because of secular growth in the country's population and business formation. i love this stat that they gave us. there are 156 million unique addresses in the u.s., and it's increasing by 900,000 a year. and as the company noted, if really only delivers to a small percentage of them. you think they have 900 new addresses in japan? so there's much more room to grow in the u.s. no wonder the stock shut up more than 11 bucks. kb home reported an exceptional quarter. california is once more -- which hems spur a 14% increase in revenues on top of a 23% increase last year. why? as they said on the call and i love this line. this is what you're looking for in a low growth environment. quote, a continued upswing in

demand driven by rising household formation, favorable demographics, jobs and income growth, and the easing of mortgage restrictions. and that's allowing an increase in activity for more affordable sub markets. listen, this is great news. the fed axes today or lack of action makes the kb home story even better which i feel the stock's 2% gain is not enough. how about adobe? oh, man. this was a call to end all calls. what can i say? this company does a better job surfing the endless wave of digitization than pretty much any other business i follow including, yes, sales force. did you know that adobe managed -- get this. i thought it was a typo. then i listened. a 23 trillion data transactions this quarter. that's right. not this year. this quarter. or that an over all revenue growth -- it's amazing. adobe doesn't need the fed to

spur their growth. it's got fabulous management on ceo shan tan knew na ryian. adobe makes its own growth. hence why the stock leaped more than 7% on the news today. you can start to hang wring about the next fed won't be -- can you spare me? you can be like all the dogmatic talking heads and curse them for taking action. you can even call them a bunch of ninnies. i don't care. i'm just glad janet yellen knows what she's doing. here's the bottom line. regardless of what the fed says or done, some companies have powerful long-term dej graphic or digital trends that will keep on bolstering their numbers. if you find them, you'll make money no matter what the fed does. if the fed does nothing as it does today, you'll make a ton of money, more than the famous grouses who come on air and do nothing but complain about yellen and her merry band of data dependent aassociates. wayne in south carolina, wayne. >> caller: booyah, jim.

how are you doing today? >> hey, kareem abdul-jabbar gave me a booyah this morning. i wanted to frame it but it was kind of audible, you know? what's up? >> caller: thank you for taking my call. i'm interested in what you think about investment in the big name financial stocks such as jpmorgan. with current federal policy environment on interest rates and the likelihood they will raise these rates slowly over time, is this stock or others like it good investment choices? >> i thinchs the better one is citi because it's a big discount. the book value, my charitable trust is also suffering through wells fargo, and i don't think it takes a genius to know why i say suffering. let's go to john in pennsylvania. john. >> caller: hi, jim. my question is about trtn, triton, and it's recent mega mer cher with cal. the bankruptcy and much needed reduction on global shipping

capacity, do you feel this is one of those rare situations to buy low and sell high because the seemingly negative event is actually laying the ground work for -- >> you know, that's a really good call. when we try to come up with topics, that's the kind of thing we do. we look at a competitor that's hurting. we look at dividend, whether they can cover with cash. i'm going to do a story on this triton. i'm not going to give you some glib answer. i'm going to do a segment on it because i like this. this is an interesting call. i should have thought of it myself but we got the smartest viewers in the world including john in my home state of pennsylvania, who is no doubt a found of the eagles, not the steelers for the 425 national game where a lot of people are saying, hey, listen, eagles going to get beat. i'm saying let's see about that. hey, we got another fed meeting coming up in november, maybe december. i'm really scared. should we focus on that and do nothing else? why not? right. be my guest. but on "mad money" we're out to find the tiend of stocks that don't need central bank action. we're even bored by the central bank. take that. on "mad money" the company that

has its hands in nearly every industry and touches the tech from your phone to your home, i'm talking flex and whether it could drive the stock higher. then did you catch mylan's ceo getting grilled by congress today? i'm talking with allergan's ceo. and what do t-mobile and sprint, what can they teach us about disney? don't you have to 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 mad money at cnbc.com. or give us a call at 1-800--743-cnbc. miss something? head to mad money.cnbc.com.

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now we've gotten through that big bad fed meeting without the world ending, we can go back to focusing on what's working. that's why tonight i want to talk about a frequently underestimated company and a stock that's finally getting its due. i'm talking flex, f-l-e-x, formerly known as flex tron ix. i've long been a fan of this company. but in recent years, flex has. >> translator: formed itself into something like an innovation factory, helping its clients invent new products and continuing to provide the expertise through every stage of the design, and distribution process. stock is up 20% year-to-date. these guys have a long history of buying back huge -- last night flex launched a new innovation hub in new york city. that's just scratching the surface of what this company's working on. let's check in with mike mcnamara, the ceo of flex to get

a better sense of how this company is doing and where it's headed. from mcnamara, welcome back to "mad money." you had a big gain which is deserving because this company is changing on the fly. if i go into your innovation hub, what am i seeing right now? >> the neatest thing you're going to see is a whole connected home demo. the kind of things you're going to see are things like connected cars connecting into an in-home hub. but cars, coffee pots, hvac systems, lights, anything that you use in the home that are connected can connect in. >> now, what's important for our viewers to know, though, this is not flex branded product, but this is flex working with customers. so where do you come in in the intellectual property? they tell you what they want or they ask you to design it? we talked about nike before but some of these products are brand-new keft mers. >> almost all customers are having us to have some

technology in it whether to put in a battery that lasts longer or maybe it's a wireless module. so as they move into this connected world, a lot of times the underlying core technologies that enable the connectedness, we have many of those technologies that we own and that we have. so we can help g.e. light bulb actually connect. we can help a car actually connect. we can help a garage door opener actually connect. we actually have this system called wink, which is an in-home hub which actually enables the interoperability between all these different companies to be able to talk to one device. >> i think it's important just in terms of the things that are really exciting, virtual reality and augmented reality are something that we've been taught -- that's the next frontier. you're there too for that. >> yeah, we are. we think about it as you talk about the next frontier. we think about the next platform. what's really important is it moves from the computing

platform, moved into mobility ten years ago to be the mobile platform. and potentially the next platt is vrar, what that is virtual reality or augmented reality. it will have industrial applications. it will actually enable work to get done better. it will enable different experiences. it will be -- it will create a lot of immersive kind of experiences whether it's you're watching an nfl game or you're watching a disney movie. >> okay. now, the biggest market, health care. you guys are doing things in health care that i think the old flex tronices would never have dree dreamed of doing. we hear a lot of things about devices, watches, programmables that make it so that any somewhat monitor, but we need something is approved by the fda, that is going to be used and paid for by insurance companies. you've come up with something for a customer like that. >> what we do is about two

different devices when it comes tole whole iot of health care. >> internet of things of health care, okay. >> when we think about that, we think about, one is informational devices. you think about it just gives you some information on your tracking, your steps, your hard rate and it's not necessarily fda approved. you have a second set of devices which are approved by the fdament once they become approved by the fda. doctors can then diagnose off of it and can actually authorize procedures off it or authorize any kind of whatever the next step is for the treatment of that illness. >> okay. what does it do for the -- i care about the patient. i don't care about the system. i know the system cares about itself and money. what does it do for the quality of life of the patient? >> yeah. so think about the application of a digital health device. if you could actually have a patch that would actually be on your body -- i actually brought one. maybe i can show you that a little bit. anyway, just a patch that can actually sit on your body. you can see some of that in the

background. that actually captures a bunch of data, and what kind of data would it capture? heart rate, skin temperature, posture. >> you're talking about blood pressure. you're talking about data th that -- >> some of it might be captured by a wearable. >> i'm talking about blood pressure. >> yeah. >> too many false positives. >> there's two tricky things. in this particular device, this is vital connect that we work with. on this particular device, there's a couple of things that are in the works that aren't fda approved that includes like blood pressure and body temperature, but there's about eight different parameters that are already captured and already fda approved. so off those eight parameters you can actually now diagnose. what's interesting about that, what it does for the consumer, to get back to your question, is if you're in a hospital and you have something wrong with you, they will wake you up every hour or two hours. >> absolutely. >> to get all your vital signs. >> sometimes a million doctors and kids that come in. it's like a teaching hospital.

>> poking you and pushing you and waking you up. it's kind of funny, the more they wake you up, depending ou sick you are, the more sick you are, the more they wake you up. it's kind of crazy. think about another really important application. now you can send the patient home, and if you had all this data where it was going into the cloud, it was going to your doctor, you can now allow the patient to come home and be at more peace. >> that's great but it will also be less at risk because most people are literally getting sick in hospitals or sicker in hospitals. we talked about nike last time and i love consumer goods. this time when i read your notes, you're talking about bose. >> yeah, so bose we've very -- we developed a very strategic relationship with them. we'll work on manufacturing. we'll work on devine sign of products, co-developing products with them. super excited about the possibilities but a major, major strategic partner that we think will have many years of life. >> one last question when you have like a bose or nike, they can't just switch to another

electronic manufacturer. they can't just -- you're deep. >> well, it's deep and hopefully they like what we're doing. >> well, nike starts its annual with you guys so they clearly must like you or they would talk about their own stuff and not just your partnership. >> we look on creating differentiating capabilities? >> how about a light up jacket? >> i talked to michael phelps about this. >> that's mike mcnamara, ceo of flex. you can see what's really driving it, which is great technology and great partnerships. "mad money" is back after the break. >> announcer: coming up, allergan is on a multibillion dollar acquisition tear, and cramer's got the ceo to talk about the state of big pharma. >> a government takeover of health care is not what we need. >> announcer: when "mad money" returns.

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when is the idea of long term vesting simply a copout for owning a loser? and when does it make sense to cut your losses? how do you tell the difference between a situation where you just need to give up and say, hey, sayonara, and a situation where you'll be rewarded for hanging on through the near term pain? generally speaking, unless the facts change, i think it's a good idea to stick with your convictions when you believe in a company. and lately the market's given us some terrific examples that show you why you shouldn't be so quick to abandon ship. consider you could have easily given up on t-mobile and sprint not that long ago. sprint had a terrible balance sheet and needed to spend fortunes to stay competitive after the government blocked its put by at&t. t-mobile seemed like a ridiculous also ran, an afterthought of deutsch telecom, but then soft bank saw something it liked in sprint, bought 83% of the company. then they installed the incredibly aggressive marcelo

claure and improved the balance sheet. know higher prices and best churn in ages. how about t-mobile? when john ledger took over as ceo in september of 2012, t-mobile was the fourth largest of the carriers. since then, it's doubled its customer base from 33 million to 66 million. and t-mobile stock has more than kept pace. shares now under 46 bucks. one reason t-mobile succeeded -- younger people like rebels. it's working. i've liked both stocks longer term so many times i felt stupid about saying that, but i believe there was enough room for four carriers and that cell phones are a growth market. t-mobile had already got that deep pocketed partner. they've been terrific investments if you've held that long term. now the question is will t emotional be bought out by someone that wants that growth?

you know what, if they do -- i'm calling those two high quality problems. which brings me to the next name that i hear being written off over and over and over again, perhaps more than any big cap stock i know. disney. yeah, disney. the stock that's fallen from 122.92, down 12% for the year. all i hear these days is disney is pretty much done, stick a fork in it because espn is no longer growing. yesterday i got a call from someone who owns disney and was clearly holding it through what's become a genuine house of pain. i told him to think long term, not short term. was it a copout? let me tell you how my brain was working at that moment. i had sat next to sprint's marcelo claure yesterday morning on "squawk on the street" and congratulated him for the turn ajound. it might not have happened if sprint weren't able to fix that balance sheet. however once it was fixed you had to own it because it's a growth market and it's got good leadership. you could written offer sprint

or t-mobile so easily like right now how easy it is to write off disney. look at what the company said today at a conference. first there's no consurmer slowdown. disney has got a terrific slate of films in the pipe. the average global box office for each film is just under $800 million. that's huge. disney is creating a whole "star wars" universe and it has a new "star wars" films coming out in december. people still love live sports. disney has a treasure trove of digital rights for sports that isn't yet being monetizes. management is being -- bam tech as an extender of its digital presence. don't forget shanghai disney. yes, it's true. fewer people are take -- you know what's being left out? balance sheet. here's my bottom line. disney has the balance sheet that chainges fortunes. it's got great leadership. how can this company be written off longer term even as i respect the short term concerns? disney can make any acquisition

it wants in order to change its stripes. it can go buy twitter. how the heck can i dismiss this company for the ages merely because of espn's short term customer declines, as lucrative as espn is becoming. long term is not a copout when it comes to disney, more like an admission that if the sprint and t-mobile turn around, why can't the stock of the walt disney company? larry in new york. lar r l larry. >> caller: hey, jim, booyah. thanks for your help over the years. >> i've been a little down. it's related to fantasy football. go ahead. >> caller: my question is about vonnage and their recent acquisition. they may have a superior solution to twilio. i know -- frantransform the com. twilio's got a $5.2 billion

market cap. >> look, i don't like the rest of vonnage. there have been three upgrades in the last four weeks, it is working but i don't want to go overboard because like i said, the rest of the company is in decline own though the next mode looks a lot like another -- i'm not even going to say what company it looks like because that would on too promotional. dottie in. >> caller: hi, jim, i've been watching intersill corporation and wonder if it's peaked or it's a good buy? >> no. it's done. it's a great gain. you take that money and you go put it in nxpi, my charitable trust owns that. or nvidia, and i think -- or broadcom. they're all better. sometimes being stubborn isn't all that bad. it worked with sprint and t-mobile and with timeless content, rock solid leadership, and a big-time balance sheet, i think it works for disney too. and that's now a contrary

position. much more on mad tonight. allergan. i'm talking with the company ceo's to give his take on the prospects. stock's been down and out. then while you weren't looking, a company with technology and 2 billion devices got acquired. and all of your calls rapid fire in tonight's edition of the skee-daddy lightning round. stick with cramer.

what's going on with allergan, the pharmaceutical takeover artist? after the government blocked pfizer's purchase of allergan, the company went right back to its old inquisitive ways but with very different kinds of companies. in the last two weeks allergan has announced not one but two languager scale acquisitions. last week th-- dermatological

pipeline with a phase two pill that could help treat sor a sis and autoimmune conditions. thin yesterday we found out that allergan is paying what could be as much as $1.7 billion to buy a therapeutics company. this is a company with ta liver disease stock. what's really important to point out that the actual up front payment is only $595 million, not the huge number that everybody is wanbantying around. i'm a big believer in allergan, which is why i own tstock or ou charitable trust. the stock sold off a bit yesterday on thety beer ra news. i can't blame anyone for wondering if the company might be getting into the habit of overpaying for these early stage. i believe they get the benefit

of the doubt. still we need to ask tough questions about these guys because allergan's pledge on drug pricing restraint, all being called in question by shareholders. let's take a closer look with bret saunders. he's the president and ceo of allergan. brent, welcome back to "mad money." >> thank you. >> we got to get right to it. on the conference call this morning, people are saying what's with you? why are you overpaying for these things? and i need you to tell our vuzers because you're stock's been getting hit when you make these acquisitions. >> i think criticism is always helpful. we love the feedback. i love to get the feedback from shareholders, but i don't think we overpaid. i think we paid a competitive price for tow beer ra. i think we got a home run or v tay. >> were there really other companies bidding for this thing and you had to -- there were?

>> there were other companies and when you see the regulatory filings come out from tobira, i think the picture will be clearer and you'll be able to understand it better. but put that aside. $595 million for a potentially phase three ready asset in one of the largest unmet medical need categories, fatty liver disease. no treatments available today. a category that could be $8 billion to $10 billion, and this could be the class first in class drug that has an effect on fibrosis and -- >> i'm coming right back at you. the july results were bad. the stock got crushed. what happened that it's now good? >> you see, i think the july results were misunderstood. >> okay. >> yes, it was a mixed trial in terms of the design. the secondary end point, which was impact on cirrhosis -- i mean on fibrosis was meaningful, and today that is the surrogate

end point that the fda is looking for at registration. so what happened was the fda requirement flipped during the time that study started and the secondary end point, which was successful, was actually the most important end point. it was the most impactful in terms of the disease progs, and we believe that end monetary will be the basis for the phase three studies and ultimate approval and frank little tly tt for patient. they saw it at 52 weeks, which is unheard of. this is a long, progressive disease. potentially it's reversing the disease at 52 weeks. >> do you think the market didn't -- the market was a little confused justifiably. >> absolutely. >> but there is a rationale, and it will be additive. >> i think it will be additive, and i think this drug from tow beer ra will be the cornerstone of therapy. like take immunooncology that's

going to become a polypharmacy approach, that's how nash will be treated. this drug, cvc from tobira will be the cornerstone of all future monotherapy and combination therapy. this could be one of the biggest drugs. again we have to prove it in trials, but this could be one of the biggest drugs allergan has ever produced and we have some big ones coming. $595 million up front. expensive. i get that. but all the rest of the payments, performance-related. >> okay. that's important. now, the companies you're buying are almost basic research. the old days you put things through a pipeline, fire people, whatever. you were never mylan. you were never teva. but, brent, you put out our social contract with patients. all afternoon we had this heather bresch on talking about the epipen. i am worried that the brent saunders that i know, who is making money for shareholders, is deciding that what he really has to do is have a social

contract that limited how much money he makes for shareholders because we're in a political war and you're the only guy who's taking it seriously. >> well, i wish others would take it more seriously. >> yeah, because they're not. >> watching this trial is very painful for the industry. >> right. >> that being said, we are a biopharmaceutical company. we compete on a couple really important dimensions, sales execution, new product launches, and most importantly bringing innovation from that medical need, cures and treatments for diseases. price should be a small part of the equation. we at allergan don't need it. in fact, we committed it to single digit price increases in the third quarter of last year. and so this has no impact on our guidance. this has no impact on our ability to grow. yes, perhaps in the future it puts more pressure on us as management. >> i think it does. >> to innovate, but that's what you should want from us. if you're investing in my stock and i took 15% price increases on old drugs and i got called in front of congress, the stock would be down 50% in a week. why would you want to invest in

that kind of risk? >> that's the trial for the industry is that there are a lot of other companies that are not doing that. >> i think unfortunately it's not -- they're going to pay the price unfortunately. this issue is not going away. the american people deserve to be angry, and only we through self-police and self-regulation can fix it. a government takeover of health care is not what we need. we need discipline. we need responsibility, and we need companies to do the right thing. >> one last question. this is a little philosophic, but it is "mad money." brent, your stock is not doing as well since you've embraced this posture. is that just short-term thinking by me and longer term this is the way out of the conundrum for the drug companies? >> i do think long term it is, but it's more painful for me than it is for you. i pride myself, i take great pride in being a ceo who is shareholder friendly, that really does care about driving shareholder return short, medium, and long term. unfortunately given some of the change in our shareholder base as a result of pfizer and teva this year, the bad publicity

from these price takers, and the political season, it's been tough to get our message out. we are going to continue to work hard on it, but i do believe we're undervalued. we're in the market buying back our stock, so there's a silver lining a bit, but we're going to get that stock price up. we're committed to it. it's the right thing. we are undervalued and it should solve itself if we keep executing and innovating. >> let's leave it at that. brent saunders, ceo of allergan. our social contract with patients is available on the blog and it's something i think you must read because versus the testimony you heard this afternoon, it's very different and much more positive. "mad money" is back after the break. it's not just a car... it's your daily retreat.

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head to madmoney.cnbc.com. >> 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." john in florida, john. >> caller: hey, jim, how are you doing? this is john from indian pass, florida. >> i don't know that area but it sounds beautiful. what's happening?

>> caller: right. thank you. my stock is gin wirtz financial. >> too risky for me. come on, i'm a guy who likes travelers. i'm a travelers guy and then a chubb guy. i'm not a gem worth guy. let go to nick in ohio. nick. >> caller: what's going on, jim? i'm trying to find out what's going on with broadcom. i bought it at 179 and then 172, and then 169. which way is it going? >> don't sweat the program. that stock has got long term 200 written all over it. i like it. this isn't cleveland. it's more cincinnati or cleveland when if comes to basketball. jim in minnesota, jim. >> caller: thank you, jim, for everything. quick question. what's the long-term and short term opinion of wy? >> you know, i like wayer hauser. the stock is a bit of a mystery. it hasn't done well enough. but i'm not going to turn my back on it. i did like previous management a

little more. the new management ought to come on the show. let's go to fred in ohio, fred. >> caller: hey, jim. i've had columbus oncology recommended to me. upon examination, i pound it lost about $3 in each of its last three quarters. clovis has three drugs under study but we know what happened to novavax. why is clovis being recommended? >> fred, because people think it's going to get a takeover bid. i had bruce cam itch look at the chart. he says the chart shows aggressive buying. speculative traders might be -- how about sharon in pennsylvania, sharon. >> caller: hi, jim. i bought taser about two years ago and recently increased my holdings based on the rising sales of their body cameras on police departments. what's my next move with taser? >> first, your accent tells me you grew up next door to me. second, i would say that taser -- i'm not kidding. same philadelphia accent. i love it.

taser is a buy. i think it's terrific. we had the company on, and go eagles. let's go to alan in pennsylvania. alan. >> caller: booyah, jim from wentzylvania. >> i like that. i'm calling that from now on. good call. how can i help? >> caller: i should have called you yesterday but buy, sell or hold on twilio? >> twilio is a buy. it was up five today because people think that's what you buy when the fed says growth is low. i like twilio. that management was great there. and that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face.

mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade. announcer: are your children in the right car seat for their age and size? it may be too late to check when you're on the road. [blaring car horn and skidding] fortunately, you're on the couch.

every now and then we'll see a takeover that's so transformative it actually causes the stock of the acquirer to rocket higher. not just the target. because the deal is such a clear and present positive. that's what happened with tech data. remember we had them on yesterday. that's that wholesaler that announced it was buying add net's technology solutions business earlier this week. that sent the stock up more than 22% on monday. that's an incredible move and don't forget it wasn't the target. but tech data is not the only a -- we've got another one of these transactions just yesterday. i don't think it's getting the attention or the credit it deserves. i'm talking about test ra technology, tsra, an

intellectual product company. yesterday test ra told us it's buying dts inc., a maker of high quality audio technology for $850 million. that was a 24% premium where dts's stock closed the day before. it could be hugely additive to the company's earnings. test ra's stock jumped 5% yesterday. give the nate of this purchase, i this test ra should have been another tech data, because that's how positive the story is for test ra. however, before i guess into details of the detail, let me walk you through what this company actually does because it's a little difficult. tess ra is basically a laboratory. it's entire purpose is to research and develop technologies that are in turn licensed to various electronics manufacturers. they specialize in semiconductor packing and interconnect processes and the company's intellectual property can now be found in more than 100 billion

chips. in other words, tess ra doesn't really make things. it invents them and then sells them to other technology companies so they can make better products. think of them as an intellectual arms dealer to the semiconductor space. right now the company has more than 4,000 patents which they license to hundreds of different companies including samsung, sony, micron, and, no, they're not a patent troll. they're real inventories. tess ra has a few different areas of expertise. they develop semiconductor packaging used in the chips you'll find inside next generation mobile consumer and data center devices. they've been at the forefront of semiconductor miniaturization. so if you want to make smaller chips that can be used in handheld devices you pretty much need to pay them for the privilege. they create technology needed for next generation imaging and personal security applications. you can find this tech in more than 60% of the high-end smartphones that are being sold today. the great thing about tess ra's business model is they get a

long of bang for the buck. strong recurring revenues and because they don't actually need to manufacture anything themselves, this company is incredibly profitable. it has 60% operating margins. that's the percentage of sales they keep before interest payment and tax. and because they generate so much cash, it tends to be pretty shareholder friendly, a 2.16% yield at these levels. the stock just ran. it was a higher yield obviously. plus they've repurchased more than $150 million of stock over the last five quarters. one more really important point before i get to this dts acquisition. a big reason why i'm so enthusiastic about te serks sera here is because this company has been experiencing a very real multiyear turnaround thanks to the efforts of investors from star board value. early in 2010, tess ra stumbled and its stock spent the next few years languishing in the teens. at the beginning of 2012, starboard value, which saw the

value in tess ra, came in and proposed that the company replace half of its board members with candidates of star board's choosing because they believe the board was dysfunctional and a new team was needed in order to unlock value. at the time, tess ra's management didn't want to play ball which ultimately resulted in an insurgency. things began to turn around in august of 2012. tess ra agreed to increase the size of the board of directors and gave one of the new board seats to rick hill, the charmed semiconductor equipment executive you've probably seen many times when he was the head of know velis. within a few months the fight was star board caused tess ra's old chairman to be ousted. star board mounted a proxy fight demanding more board seating. in april of 2013, young resigned and hill took over as interim

ceo. finally both sides were able to reconcile and the battle ended in may 2013 when tess ra agreed to rekoonconstitute the board. hill resumed his. once the situation cooled down, lacey and hill turned out to be a pretty terrific team. since the management shake-up the stock has roared higher. it went to 20 when lacey took over and now it's at 37. 150% gain from the moment that hill entered the picture. whi that brings me to this dts acquisition. i think this deal is the most important thing that -- dts is a

high quality developer of audio technology. their i.p. is in over 2 billion devices globally. now, tess ra is paying $850 million in cash for dts and they're doing some borrowing to fund the transaction. the company's balance sheet can easily handle that. by acquiring dts, the company increases its scale, bringing in more than 25 new top tier kuft mefrs in consumer electronics, mobile, internet of things, people, while broadening their exposure to virtual reality. there a the combined company will have some of its best minds in the business working for it. it's got over 450 engineers focused on inventing next generation audio, imaging. not only does it make tremendous sense help diversify the revenue

stream. if you're going to borrow money to make an acquisition, now would be the time to do it before the fed raises rates. tess ra and dts are the kind of companies whose products you never see, but their technology powers the devices you use every day. tess ra has been tay strong performer ever since star board -- and turned around the business. by acquiring dts, this story got some additional legs. powered by the internet of things, virtual reality and connectedness. i suggest putting on a small position at that's levels and then waiting for the next bout of market inspired weakness to buy some more tsra. stick with cramer. [chains dragging]

[eerie music playing] [crickets chirping] [owl hoots] announcer: if you don't fix them, sparks from dragging tow chains can cause a wildfire. and that could be scary. bye, smokey! only you can prevent wildfires. what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods?

the value of capital is to create, not just wealth, but things that matter. morgan stanley 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. i like to say there's always a 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 tomorrow. lemonis: tonight on "the profit"...

can i taste your pesto? lisa: it's delicious. lemonis: ...healthy meals, ready to eat and delivered right to your door. erik: we help a lot of people. lemonis: it's a service that's helped clients lose serious weight. -diana: she's lost 150 pounds. -lemonis: check it out! this florida company is on to something big. but their marketing campaign is offensive... erik: everybody come on over, meet the fuel food girls. it always tastes better when it's free. [ horn honks ] lemonis: ...the owner overbearing. erik: put a piece of basil on here. dress this up a little bit. sprinkle a little cinnamon on top. lemonis: if i can get the debt under control... erik: 'cause everybody's popping off with no money here. lemonis: ...as well as the owner... diana: you took us off the system. lemonis: you locked her out of the computer already? erik: i don't trust anything that goes on. lemonis: ...this company's bottom line could be in great shape.