after a subpoena? after a subpoena, you say go buy it. >> yeah, because if it holds 70 bucks and doesn't fall on the wayside after the subpoena thing, it's going higher. giddyup. >> i'm melissa lee. thanks for watching. see you back here tomorrow at my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always work 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 it make friends, i'm just trying to help you make money. my job is not just to entertain but to teach, help and put it in context. so give us call. or tweet me. @jimcramer. these days people pretty much surrender the whole notion of money management to if you can't beat them join them concept of the index fund.

which is indeed cheap and easy way to mirror the performance to the broader stock market. i understand the index funds. after all most money managers can't beat the averages that means they aren't worn the fees they charge you and on a day like today where the dow did 54 point and nasdaq lost, you file the index fund as opposed to individual stocks so i advise that you use them. i have to tell you, that under the hood when next funds have been starting to see grave disparities for the first time in ages, both disparities within groups and sectors, there is something going out of style. those divergences create tremendous opportunities for stock pick percent. if a stock picker gets it right. if you're managing a small portion of your money, the rest being with an index fund, i think that's exactly what can you do. some is obvious. we know that apple executed better than samsung. galaxy note 7 is given as a christmas gift as a way to roast

chestnuts on an open fire. now apple did report tonight while the knit pickers are out in full force about what is regarded as a revenuesingness, i don't know how they compute that, but they do. the stock jumped so far in advance, partly because of the snafu that had to be more than logical to expect. to me once again the profitable revenue stream is the one to watch and still relatively ignored if not despaired by 24% growth, $6.3 billion and yes despite the nay sayers comments that this line of business is unnaturally boosted by pokemon go sales, not even a material event when it comes to that growth. after researching the quarter i come away once again saying own apple, don't trade it and if sellers want to create bargains, this could be your chance. a way for apple versus samsung we see companies totally acceling, because people at the

top are doing a miraculous job with the hand they are dealt and that can involve a portfolio and shuffle in their own companies to upgrade the cards to a skillful handling of bets in overall landscape. take for example the cincinnati proctor and gamble. here is a company that has become a tepid house of fat brands. which all seem to stall. in fact, things have gotten so stale this we began it view it as nothing but a bond market equivalent stock. picking up your 3% yield with the idea that a dividend boost is right around the annual corner. kind of boring, make a little money, but that's it. nobody is thinking about that after today. not after proctor and gamble blew away the numbers and blew way 3% organic growth. the nonpromotional but no nonsensual leader and putting ad dollars behind winners to deliver that kind of growth.

no whining about the global economy on the p & g call. unfortunately, consumer products fellow traveler kimberly clark did not perform as well if over basically flat numbers and stumble about $5 on the news and bringing it down in a straight line from 138 in july to around 114 today. you know what you need? you need kleenex for all this crying. how about fast-food? sonic reporting a horrendous number last night and this former market darling saw its stock for more than 16%. announcing disappointing number not that long ago. and the shocker and the company that forecasted even worse numbers when reported today. and same-store sales to be down 2%. why? consumer trends. and that begs the question, where the heck were these slowing consumer trends when mcdonald's reported, the burger giants same store sales rising 3.5%. i think steve is initiating

major changes worldwide and they are paying off. the idea that his turn around is just about all day breakfast one trick pony nothing. wrong. ridiculous. mickey ds is thriving while the sign collapses. just kind of fits in with my thoughts about management may not fit in with the thesis about index funds. and panera reporting fantastic numbers and sent the stock soaring in after hours. telling you ahead of time that this one is not going to blame the economy and instead paenera with amazing management. in contrast, general electric, which, sigh, we also own had to shade the forecast down. i think there is a case to made that it is outexecuting ge in more than just aerospace. numbers were hurt by oil and gas but when you look at solid results and projectiones from

halliburton and use to major service plans you have to wonder if ge would say, and owning bubble oil and at the very least it seems like their business is too exposed to off share and where the bottom has been called and gains are coming. what else? for the longest time, vf corp consistently generating and regular earnings stream that can you count on and in the pile business and largely because of its north face business but also thanks to lee and wrangler jeans among a host of other brands. and something is happening and something is happening that is not good. sell, sell, sell. as all these name brands have lost their luster. no matter where i go, and with columbia sports wear and time for calvin klein and both are vf corp and the weakness is causing the whole group to sell off and that's the opportunity i'm talking about here. and again these companies are in the same sector but giving you wildly different performances and for the nonindex money and

you seize on that profit. and i think deal smacks of desperation because the core business of at&t, starting to report really bad, just plain bad numbers. in the meantime competitors t-mobile and sprint are cleaning up where it count most and post paid subscribers. the fiery boss of t-mobile and announcing yesterday that his company adding 851,000 post bay users and i don't know how at&t, how about they lost 268,000 subscribers. brutal. sprint rung up 347,000 post paid additions nowhere near the gains of t-mobile and a far cry from the 62,000 additions they delivered a year ago. i saw some wannabe trolls posting why sprint's stock wasn't higher. they told you with the preannouncement not that long ago. let's not forget what really matters. rallying 27. % for the year. sprint stock down to 80%.

and at&t not shabby but it is up 7%. now some ministries, what can i say, they have no winners. sell, sell, sell. we saw dramatic shortfalls in the red-hot housing and sherwin-williams paint company shedding 30 point again nearly 11%. the kitchen and bath company so its stock falls 9% and the for the cycle and very worrisome indead. and suffering from weak paint market. appliances, kitchen and bath, painting. and that's home depot's dealing with which explains that stock's four-point decline today. utter carnage in sports apparel. under armour dropped another 5 bucks today down 21% from the year. its crime, it has to spend more money to grow. one problem, i think under armour provoked nike and that

wounded tiger has the staying power to take on newcomers. adidas made a stunning come back. this is a time of tremendous turmoil. it is important to recognize while they may average out in the end so to speak the picking of winners in industry answers whole sectors can be a very effective way to take care of your "mad money." that's an critique of index funds. especially for your time and funds. we should all use index funds but if you augment them with stock picking of your own then be sure to consider the impact of management and always avoid battle grounds like we are seeing now with sports apparel and home spending at least until this smoke clears and the stocks have fallen so far that i will tell you when the time is right to pounce. mark in florida, mark? >> caller: hi, jim. thanks for taking my call. >> of course. >> caller: you have any issues with samsung note 7 in buying applied materials? >> i think should worry.

i think samsung will have losses more than $5 million. spending less money on capital equipment. including yes indeed business they would have given to applied materials. i have to tell you they are the largest buyer of semi conductor equipment and applied material is one of the largest makers. inside averages you will find ceos taking matters into their own hands. outperforming their peers. these guys have stocks that are made for your "mad money." that's why i need to you look for them. on "mad money" tonight, might take on the new dock that is ruling the mergers and costco is lackluster as of late but could the decline be the sign to put the stock in your cart or are the day he of the bargain long gone? plus, there's a shark in the building. >> he is one of the prime predators on shark tank. >> millennials right now, 60% said they would not support a company unless it is doing something for others. they want to know their money is going somewhere. >> find out what damon john

thinks about some of the hottest money in entrepreneurship, next. >> don't miss a second of "mad money." follow @jimcramer on twitter. #madtweets. send an e-mail to cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to "mad money" pnt madmone.

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with dupont and dow announcing a merge in february, a three-month push back, i'm believing the higher paid lawyers and investment bankers who advise about the process are either totally clueless or so arrogant pretty much announcing the same thing. for months i've been saying the european union dislikes the merger because the combination will be viewed as toxic by farmers. protected class in pret much every country. they are talking about there is no overlap's their are dead right. these years regulators care more

about concentration and inevitable power these countries might one day hold over their client. regulators are thinking wait if we let two huge companies merge then there will be much less likely that these two companies will start developing product to compete with each other some day. i don't know if it matters whether dow and dupont keep research budgets at the same level. the regulators may outbust it anyway. especially with other companies merging too. why are they so afraid? because this new antitrust doctrine is about the potential innovation. that's what they hear. stifling by powerful business competitors who when merged can stop clobbering each other with better upon better miles and think innovation is crushed. which brings me to time warner and at&t. just like we see with other deals i don't think regulators will play by traditional rules here. traditional rules say that time warner makes content. at&t distributes content. no overlap whatsoever. deal falls through. traditional roles and advisories say if at&t and time warner get together and have you a stronger

competitors. one to go up against the likes of comcast which i work for or maybe even alpha bet or facebook. but there is a very different interpretation. the new rules say wait, this entity could be so powerful that maybe it doesn't need to develop new product to compete against facebook and google like verizon is doing. maybe the company will have so much bargaining power that the creative types employees will make less money. who knows. from the perspective of regulators though big is bad. period. of course the clueless lawyers investment bankers who advise executives in these deals, this is traditional no-brainer. after all time warner used to own time warner cable. what's the difference? now they are own directv. if they have one form of distribution, that's okay. why not have another form. all valid points. but they are missing the big picture which is no regulator ever got hurt saying no. particularly when both parties are now aggressively antitrust. who can you remember republican presidential candidate opining about blocking a bid from day one like trump did?

you have to wonder about what kind of nay sayers would staff the trump justice department antitrust division. i certainly know what kind would be in the democrats. the kind that would say no. everywhere you look you see deals approved in recent years that people absolutely hate. of course ultimate one is the decision to create four major alines by allowing american to merge with u.s. airway answers letting continental merge with uniteed. one of the biggest blunders since the passage of the sherman antitrust act. another party wants a stinker like that on their hands. that's what they think about. in 1994 when i was taking antitrust at harvard he was the wizard at the time and chevron made a bit for gulf one of the most anticompetitive deals of all time. the deal you get from chevron if you are a gulf shareholder and where the stock was selling at was so huge. after class i asked if the reagan department would bless it. he said no problem. the antitrust would look at how much potential competition exists in the oil and marketing

business from so many players and then they would bless the deal out of hand. i follow the advice, make a killing on gulf coal options. that paid for a year of law school. now it is the opposite of the '8 os. they are looking no kill deals, not bless them. i'm sure if the professor were alive and consulting on the at&t time warner deal would never be considered. too obvious it would be blocked. but the fees are too great for lawyers and deal makers to advise against the block busters transactions especially since the break up fees for a failed deal is so small. no one is strong enough to stand up and say no. in this environment don't do it. deals get announced, drag on and they don't get done. my advice look at the research and equipment deal. look at the block halliburton. they tell you everything you need to know. so to every ceo out there who is pondering making a gigantic acquisition stop listening to your advisors and read my lips.

no new big deals. don't be fooled p bottom line, the rules are now clear. the regulators want to stop these mergers before they ever get started. much more "mad money" ahead. the man, the myth, the shark, daymond john. everyone loves a bargain but with costco's lackluster showing, is it worth picking up the stock in bulk or maybe you should avoid it entirely. i'm going off the charts to find out. how about the regionals? how are they fairing? don't miss my exclusive with one red-hot stock. keycorp and its ceo. stay with cramer.

? you're branding or small business you might want it speak to dame mond john. as well as one of the original investors on our favorite show, abc show, shark tank and author of three best selling books just became available in audible. daymond john is the king of branding. he has a terrific view into all sorts of businesses. like the sock business that just sold its millionth pair. blueprinting company. yupg companies with take things to the next level. there's a lot happening right now right here. i would like to get his perspective. without any further ado, mr. john welcome back to "mad

money." >> i love it here. >> i have made, we have had many time, you have told us about companies and we followed up and you crushed averages even though that was not the point of you coming. >> people come shown the with big brains, i'm just coming at it with a like a common's man perspective. >> intuition and effort are two things you teach us and are fabulous in terms of figuring out right stocks. that's not why you tell us but that's fine. i want to talk about branding. i want to talk about what do you do to res raekt damaged brand in apple reports, you know, apple is fine. i'm not talking about the term apple. apple does not have a brand that's damaged and samsung does. can samsung recover from the galaxy note 7? >> i think they can. i still know individuals that are holding on to their blackberry because really the needle was in the vein for such a long time. the product was superb. but you know, the samsung and apples of the world, the reason

they get where they are because they diversify their portfolio like we say here. to be honest when i was a little brown boy from queens making a a couple hats it was samsung's textile that reached out to me for the brand. they will bring that to their new devices because nobody thought they could even touch apple. look where they got in such a short period of time. >> you're right. i'm looking at the window then they are looking at the house. >> the model is this, they have 50 divisiones from nuclear it cars and everybody has to increase from 11 to 20% every single year. when i went with them initially they were at $100 billion and they are at $200 billion right now. they are okay. >> right now we saw results from under armour. than bad but talking about spending more. under armour, nike, then out of nowhere adidas is back. advice to any of those companies? >> i got to be honest. what i know i know, and what i don't know, i don't know. i failed at those brands.

building these shoes are almost like building cars believe it or not and they have to also diversify and have a strong runner athletic base and then a fashion base and then a hip millennial base. i will bet on under armour because for the last five years they have consistently millennials and they are the brand and adidas and nike are great but they pop up with the easy oor cheesy or whatever it is and under armour is hitting that base and they are getting kids young. high school or college. very young. >> so not giving up on under armour despite the dip. so shark tank, by the way, just thrilled to know, we had mark on recently, 19 to 20-year-old women are interested. we have a clip of something which is one you embraced. let's look at this. >> 200,000 for 20%. >> all right. >> you have a deal.

>> we'll take p. >> thank you. thank you. >> all right, guys. great decision. >> mazel! >> why did they get a mazel? >> they are selling stocks but also a social quota. every time you buy a pair a pair is donated to people in homeless shelters. big care for their feet. normally i would not have touched them because i have a couple of million pair of socks still in the warehouse, right? i didn't know how to sell these. but they are selling direct owely to the customer, upselling the customer and this year they are giving away their millionth pair of socks. they thought it would take ten years and they are doing it in three. you hit it right in the opening. millennials want transparency and they want to know their money is going somewhere. >> i want to stick with this. you can't get really talented

individuals unless you express some social responsibility but also walking. >> when i go and speak at corporations, here is the biggest challenge. how do we get people to think outside the box but we don't want them to be so innovative that they leave the company and start their own. when they feel they are part of something that's why they want to be part of you. you can't have them in the old day and age in secluded offices by themselves and doing checkbook only. they have to participate in what they are doing. >> i'm looking at beautiful vest. blueprint and company. i want to know more about it. >> the shared economy. we know it already. i wish it was back 15 years ago. i had 18 houses and now i can live in the south of france at airbnb for ten days and i don't have to clean up. whether it is uber or airbnb people are sharing office and space. the reason is first of all we are mobile platform. we are everybody is out there running around these days. they don't need to be home with five-year lease.

second of all like-minded people giving them other information and they can go to this person and this person and work together. also corporations i'm seeing people like the big corporations putting ten people over there. they don't want them next to the engineers in middle of wisconsin. they want them next to like-minded people and you are giving education to digital literacy and mothers coming back from the work force thaenand th why i'm investing in companies like that. we have a hundred of them. that's why there is more than enough room. >> let's go back to, you see facebook, we saw at&t, time warner. >> at&t -- >> yes -- >> no -- >> everybody is fighting for attention. i'm not saying they are desperate but think about this. with this great building built, right, comcast when they tried to go after time warner just cable companies, right? think with about that. i think "politico" said they spent about $35 million and still didn't get the deal.

you are talking about at&t, time warner, news, sports, entertainment, cell phones, mobile, home, people are lining up out of the wood works. there is politicians and content managers like buzzards on a gut wagon. i'm not sure where this will go but at the end of the day everybody is trying to buy the kids attention. content. that's it. >> right. and can twitter come back? >> you know, i think it is a strong base and it is kind of like that, you know, when we used to watch, what was the third, fourth channel on network? pbs. always there. >> yes. >> i think they will be there. i think there's going to be, they have enough data which is good because they are going to be able to move that data -- >> maybe by sales force. maybe they can't do it. >> exactly. if someone takes the commodity and converts it, that's the most important thing. why does google give you g mail for free? >> that's what it is about. not about the journalist post, it is about machine learning. take tag data and being able to interpret it.

so have you this. >> most important thing -- >> most people can't -- >> the only reason i do what i do is i have younger kids around me that give me common sense and say you know what they used to do, this is the conversion of it now and we are hitting a billion people with this information instead of 200,000. >> last question. i see blueprint and co i think american dream is still alive. >> yes. american dream is still alive. it is fundamentales. we have to close the digital gap. the factory work earns people like that, if they don't get digital literacy and understand how to code, joan operate and use fundamentals of what made this company so great into the new day and age a and we have a problem. but i don't think we have a problem because the millennials want to give back now. they want to help save the planet we helped destroy. they want it go with twitter. i think we're under a good place. >> you make me feel good. you make america feel good. branding power. shark tank panelist and realist, skeptic who still comes out.

>> and presidential ambassador for global entrepreneurship. i have to shout out to the president. >> stay with us. thank you. experience the thrill of the lexus is f sport. because the ultimate expression of power is control.

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how do you navigate your way through market that could be confusing mp made more so at very peak of earning season. how do you get a a sense of what can work at a moment when everyone is keying off the price of oil or direction of interest rates for the latest comments from the someone from the federal reserve. it is at times like this when the fundamentals can be overwhelming. thanks to the flood of earnings reports. that's always a good time to fall back on technical analysis.

and in order to identify worthwhile ideas. tonight we're going off the charts with the help of special, larry williams. that's right. larry williams. genius technician trading futures, commodities and stocks for more than 50 years. over the years williams has written 11 books. created indicators used throughout the industry including the show and has a website where he teaches people to be better traders. in short, this man's a legend. when he says he likes something i'm inclined to do work on it and figure out the fundamental reasons, maybe jive with the fabulous chart. and one of the stocks right now, stock of costco. it is near and dear to both the show and my trust. we can follow along. what draws him to costco? the genesis of this idea here starts with a very odd correlation. i had to do a double take on it. take a look at daily chart of costco versus the dollar index which measures the value of the u.s. dollar versus the basket of

the next six largest currencies. what you see here is the action in costco and red line represents the linkage between costco and dollar which they project out an additional three months. what williams has noticed is that price of costco stocks have a tight relationship with the dollar index. this might seem odd given that two thirds of costco's 715 stores are located within the u.s. sometimes the stock market does weird things. for example i often point out that they rally when the oil companies rally. this hasn't stopped it from controlling day-to-day action. certainly in the airline names. and pointing out that dollar strong costco tends to be strong too and lately the green back started running again. this is what is known as intermarket relationship. and if you project this relationship forward given recent strength in the dollar williams thinks that costco could be on the verge of a significant rally. why don't we look at costco's

chart itself. dately. first of all, costco is trading side ways for a while now. for the past month and a half. perfect side ways action and in fact the darn thing barely reacted with a solid quarter at the end of september. more and more impressive as earnings season goes on. and so many other retailers we follow here. but williams sees a number of signs that suggest costco might be ready to run. especially after the stock rallied more than 3 bucks yesterday. williams very much likes what he saw in yesterday's action. i know was tepid today but that's okay. costco hammered on friday. falling from 150 down to 149 but monday immediately reversed losses and added a couple points for good measure. this often marks the start after significant trend change. in other words if the city neutral for months, there is a sign costco could be slamming on the accelerator even as i mentioned it that the stock did pull back a tad. and not just the action from a couple of days that makes williams feel confident. there are a bunch of other

indicators that make him more optimistic too. look at the green line in the middle of the chart. this line is, this is a professional accumulation. this happens to be a proprietary measure that williams accumulate end whether the big institutional investors move the market are buying or selling costco's stock. normally we might use something like the unbalanced volume indicator to get a sense of what the big boys are doing but williams is doing this for decades and developed his own internal gauge of how professionals are buying or sell pg. the institutional managers are unloading stock in august. which is part of the reason why it traded down from 60s to low 150s through early september. for last five weeks or so williams points out professionals have been buying costco stock pretty steadily too. which he knows because this line has been moving up even as stocks have been basically trading side wayes. look that. this is doing nothing but this professional accumulation index is doing higher. telling you the big boys have

been buying this stock and finally let's not forget about the name sake. williams percent are oscillator. the momentum indicator that measures whether a stock has gotten oversold and this is developed by williams himself. costco went into overbought territory when it spiked up yesterday but this has been fairly choppy as of late. williams thinks little more weakness in a stock is hitting into the oversold zone which at a point would he like to be a buyer. put it together and chart is painting a pretty rosy picture and costco has been sleeping the last few weeks and by legendary larry williams subjects that costco could be ready to roar here. how about fundamentals and what is happening in the company underneath. like i mentioned earlier we own costco from the travel trust. on the one hand retail is having a rough time lately. particularly any retailer that sells food because of severe food dwe deflation issues. this is an extremely well-run company and the more we hear from others the better costco's

quarter looks. thanks in part to some gross margin improvement what the company makes after the cost of goods sold. on top of that costco posted 3% same store sales growth which seemed anemic but not after what we sold from the other guys. there so credit card switch. remember dumping american express and switching to visa. i like the quarter. the switch happened over the summer and while it caused a bit after sales hiccup, management says the transition to visa is going better than expected. i like what that says about the company's future prospects. something to really can't be duplicated by amazon at the same time costco has been building out its own on-line business and is making their e-commerce platform less time consuming and more intuitive.

beyond that most like other retailers costco makes a lot of money from membership fee answers by wait i think a costco membership is one of the greatest bargains known to man like amazon prime. now look we sold costco for the trust when the stock was trading in mid 60s, 16 0 over the summer but now 151. more attractive. pull back to the 40s, pull the triger. here is the bottom line. charts interpreted by the legend larry williams sulgting costco stock could be ready to roar after spending last six weeks doing nothing. i'm definitely fan of the fupdmentals. that's often a sign you have a good deal fop your hand. if you don't have any costco i recommend buying some when it you will pulls down to lower levels. that would be terrific. stick with cramer.

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show many times. even celebrated his birthday on my program. i considered your father a friend and great president. >> when i was growing up with my father i learned a lot about gold. i learned how much he thought private and personal gold ownership really was the right thing to do. in fact so much so that he believed it was your right to be able to buy and store gold any way you wanted to. he signed the historic gold bullion coin act of 1985. when you look and see the impact of that act, had it not been signed, we today probably would not be even discussing gold ownership because my father, person i learned from, gold ownership was right. >> listen now to our panelist, brad castillo, tells you how to take the advice you've heard so far tonight and start adding pure government gold to your portfolio. brad? >> thank you, larry.

if you're toward own physical gold or you already own some gold but would like it add more i urge you to call out money reserve right now. it is time for lightning round. then the lightning round is

over. are you ready? time for the lightning round. start with roger in california. roger? >> caller: hey, cramer, boo-yah from mountain view, california. >> nice. >> caller: buy, sell or hold. >> small position for the travel trust. you believe the stock will go lower. it yields about 3 1/2 yields, maybe we pull the trigger by a little more. but not yet. stocks headed lower. john in new jersey? john? >> caller: john from beautiful belmont, new jersey. how are ya? >> you're a lucky dog there. i'm stuck here. what's happening? >> caller: hey, two generations filing now and thanks to your advice, john jr is loving it. he is saving and investing. can't wait to get his next check. >> sometimes i forget why i do this show. thank you very much. >> caller: one thing in this and i wanted to know, you think the dividend is secure and kkr. >> no. dividend is not secure.

now meant it fluctuate. i would not make a big bet here on kkr because we don't know what they're up to. how about robber in the west virginia. robert? >> caller: yes.eber in the west virginia. robert? >> caller: yes.rber in the west virginia. robert? >> caller: yes.tber in the west virginia. robert? >> caller: yes.er in the west virginia. robert? >> caller: yes.r in the west virginia. robert? >> caller: yes. in the west virginia. robert? >> caller: yes. hold or sell after the spread of young -- >> no, buying young brands because the split will be good. return a lot of capital and we have to think this is a great idea. rest of the world not as good but maybe giving you a bigger dividend. and dead right. and burke in connecticut. burke? >> caller: hello. >> burke, you're up. >> caller: okay. >> what's the stock there, burke? maybe just a name. >> caller: rigs -- >> oh, trans ocean. i don't like deep water. hall better. knows are better.

dave in new york in dave? >> caller: jim, what up? boo-yah. >> what's shaking with you, partner? >> caller: hold or sell? >> no, so low, you know, look, this is a roll of the dice 61% down, cancer therapeutic, many of the stocks don work out. if you want to speculate, i'll bless it. although i'm not crazy about it. dana? >> caller: jim, boo-yah. monster. >> i've been a long-term of monster. very well-run company. but i'm not pressing it right now. the one i like, pound the table, is stz. eleanor in new york. >> caller: hey jim. thank you for taking my call. my stock is srpt. >> i think that has come and gone. ring the register. ian in new jersey. ian? >> caller: thanks for having me on the show.

>> you're welcome. >> caller: i'm curious with the election coming up, voting on the recreation use of medical marijuana. where do you see smg going? >> they are up in oregon to grow pot. i say be careful. late in the cycle for this one. that, ladies and gentlemen, the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade. 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.

look at keycorp roar. so far this season we've heard good things from banks and money centers. for example with keycorp the parent of key bank with roughly a thousand locations across the western eastern united states just reporting excellent quarter this morning. very bullish update on the company's recent acquisition which gave them hundreds of additional locations in upstate new york, connecticut and pennsylvania. posting earnings beat off the 20 cent basis with higher than expected revenue and first deal exceeding expectations on all fronts. no wonder the stock falls more than 6%. keycorp given us almost 20% gain since we spoke a few months ago and federal reserve raising rates in december as some are now anticipating.

this regional bank coining money with higher rates and better return when they invest your deposits. can the stock continue to rally? let's take a closer look with beth moony, chairman and ceo of keycorp. welcome back to md "mad money." >> thanks, jim. glad to be back. especially on an exciting day for keycorp. >> real leverage to the bottom line. fantastic actually explosive long growth. how is it all coming together and how much better did first ag turn out than you thought a long time agoing to do the deal if. >> the strength of our quarter was driven by two things. first and foremost, the core performance of keycorp on a stand alone basis. and as you said, we had outstanding loan growth. strong deposit growth. corporate and community bank both posting very, very strong

revenue growth and including record quarter for investment banking and replacement fees so across the board stand alone key add great quarter and then within the quarter we did have our successful acquisition and integration of first highing a ra as we stit here literally one year after we announced the deal and we have now 35 billion more in assets and another 1 million client and a hundred additional branches. as we look at the core first niagara franchise we see solid loan and deposit growth and client acquisition there as well. if you look at some parts coming together, it was a strong quarter and i think it bodes well. >> how much of this is just in your geographies, the country, employment doing better. companies doing better. and how much is a share take. you are a local bank and there's great share tank right now because some of the national banks have actually let's say done their own client bit of a disservice. >> as i look at it, we have talked over the last year we

have been investing in bankers and product and capabilities and what i think you're seeing is share take. we believe we are growing market share and successfully executing our model in our markets and so i'm very, very proud of our teams that are facing off against our client and our communities and growing the bank. >> you just mentioned a deal that wasn't where i was going but with the analysts they don't seem to care but there is something about where you're from right now that's winning. i'm talking about basketball. and i often feel when you see the excitement of these teams that it actually does impact in an economy of a city. are you seeing cleveland and ohio having a renaissance in part because of, i'm not kidding, what is happening in cleveland and the city itself? >> i will be the first to say, cleveland rocks. but with that, i do think that in our area of the country you are seeing strong economic growth. it is in this slow growth economy these are steadily industries. our economies are doing well.

customers are doing well. and there is a confidence. there is a cautious optimism about the broader economic environment but i think there's a confidence that people know how to make money and they are, if you look at our investment banking in-depth placement fees, you see a lot of activities in m & a where companies are buying product or capabilities. it is a good time. the midwest is performing very well. >> a lot of people think oil is down. but certainly up since february. natural gas is a strong performer. out ka is heavy natural gas and with the rest of the country and mexico wants the natural gas, very close to where you are. impact of the growth of that industry even as people think about the oil business not being that good. >> obviously there is a pull back across both natural gas and oil related companies over the last couple years. but if you look since the first of the year, natural gas has doubled and so again i think you are starting to see not only some stability but signs of growth in the gas industry.

>> okay. i do have to ask this just because i own it in full disclosure and it is disappointing. wells fargo maybe until a month ago maybe the most powerful banking influence. i'm a big believe that wells won't do that badly. banks are very sticky. but can key benefit from the problems of another national bank that is frankly lost people a lot of confidence? >> you know, i think what we all need to do as banks is make sure we look at ourselves and make sure we talk about our relationships and how engaged and what we want from our clients. and at key we talk about how does our, what do we want our client to experience. what are their behaviors. not the product we are necessarily selling them. did they bank with us. borrow with us. save with us. need advice that helps them make good and confident decisions for their family and businesses. i think if we stay true to our relationship strategy and engaging with our clients,

that's been part of the success and growth we have seen in our community bank. and i think is a time where everybody needs it make sure that what they are measuring and outcomes they want are a driven by behaviors that are driving good client relationshipes. >> let's leave it at that. i like that theme very much. thank you, beth, good to see pu. >> thafrg, jim and great to be on the show. >> thank you. solid quarter. inexpensive stock. i like it. beth moony, keycorp. stai stick with us. sorry, ariana you gotta go. seriously? verizon limits me and i gotta get home. you're gonna choose navigation over me? maps get up here. umm... that way. girl! you better get on t-mobile! why pay more for data limits? introducing t-mobile one, unlimited data for everyone. get four lines just $35 a month.

we're drowning in information.

where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. >> as i said at the top of the show, apple will get a good number. did they blow away the world? no. but this is your clans. don't trade apple, own it. like i said, right here on "mad money." i'm jim cramer even i'll see you tomorrow.

>> on this episode of "secret lives of the super rich"... >> thank you for flying gumball mother[bleep] airlines, baby. >> ...the car rally that's truly a week-long rager for the wild and wealthy. >> right about $100,000 just to be in the rally if you get invited. >> fast cars... and tons of cash required. >> now i'm gonna show you the subterranean surprises. >> the lavish secrets buried deep under this mansion will take your breath away. the tennis superstar's brutal backhand that requires a 775-grand watch. do you think that's a crazy amount of money? >> for my point of view, yes. >> and for the billionaire who