>> so qualcomm today. anti-trust issues. they just responded to it and said the complaint is based on that. >> thanks for watching. see you back here tomorrow at 5:00. don't go anywhere. "mad money" starts now. anywher with jim crime e starts now. my mission is simple, to make you money. i'm here to level the playing field for all investors. there is 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." well coal to cramerica. other people want to make friends, i'm trying to make you money. my job is not just to entertain but educate so-call me at 800-743-cnbc or tweet m me @jimcramer, if you keep riding the trump rally, find a

super strong level of conviction after a day like today where the dow dropped 59 points and s&p shed and nasdaq lost .63%. we have crosscurrents not caused by the president elect himself that you need a cast iron stomach to run the gunt let from here to friday. today was a perfect demonstration why you need to believe what you own while accepting any minute a tweeted lightning bolt could be headed right for you. let me take down the impact of trump's off the cuff comments, positive and negative. one of the stocks has terrific companies. let's start with consolation brands, the distributor of medela askand carona. this is on a slide since trump's big upset and not just the company has something to do with mexico which votes higher every

time the wall is mentioned. consillation is hammered because something the tax code requiters have been trying to get done and it's called a cross border tax where if you impact goods made overseas, you have pretty miserable tax implications but if you make goods here and sell them overseas, the tax doesn't touch it. theoretically, this could be a good way to bring manufacturing jobs back to the u.s., but it has real downsides, too, which brings me back to consolation brands. because the beers are mexican, it's not possible to make them in milwaukee or the rockies. mexican beer by its very nature comes from mexico so consillation could get hammered by this potential cross border tax, something too nutty to understand. ceo rob sans told us last time he was on the show. turns out to be too nutty for president elect trump, too, who called the plan too complicated

in an interview with the wall street journal. that got constillation going because if president says it's too complicated, it's not going to happen. the real battleground on the tax, though, is in retail. retailers buy so few goods here and so many overseas, this tax would cost them a fortune until today. when we saw an incredible reversal thanks to the same interview. take the best of the best, pvh which makes tommy hilfiger and calvin kline, this company reported a terrific quarter, as we know because we had ceo manny tirico on the show after. the stock hasn't stopped getting hammered until today. it soared over $5 thanks to the president elect's off-handed comments about the border tax being too complicated. it's the best example of what is

happening in the group. if you dumped all the retailers into the negativity, you ran into a more positive trump with not enough conviction. it's not just retail that wins. think about apple that manufactures things but the vast amount of iphones are made overseas. something trump mentioned repeatedly when he was campaigning. today, though, even as morgan stanley, one of the biggest bulls trimmed the investments for apple, the stock managed to rally on a down day. all last week on the tenth anniversary of the iphone, i kept hearing the best days of apple are behind them. that's fine. you know what i say. i say own the stock, don't trade it. if you trade it out of apple and that down beat talk is pulling away from where you exit it. but there is another issue here that's rippling through the market. if the president elect disagrees with his party on this issue, will that derail the probusiness tripod of lower corporate taxes and deregulation that has helped

the market power higher since the election, maybe so. if that's the case, listen to this lit kn this. if that's the case the economy won't be as strong and if that's the case, then you aren't going to see interest rates go much higher. there won't be that much demand for money. the conclusion, the bank rally bolstered by fantastic numbers last friday from bank of america, wells fargo and jp morgan may be on its last legs. that was the theory all day today. even though morgan stanley reported a gigantic beat and the conference calls of the banks know things have gotten better than the last quarter, especially in the last month, their stocks were just bashed. they simply can't go up people think if rates go down. the impact of a riff within the republican party suggests we aren't going to get the growth to drive rates higher including

short term and suddenly the fuel for this rally, people think it's gone. now i don't believe that's really what is going to happen. i think the president elect can't help saying these things. he likes to deal. he puts out points. he then negotiates. it's very hard to believe he won't get his way because the houses of congress and white house is republican and therefore i think interest rates will eventually start climbing again. my conclusion, the sell off makes the stocks more attractive, not less. remember goldman sachs reports tomorrow and has a history of trading down no matter how great the numbers. some of that is because the window for partners to sell flies open after the quarter. given the monster run that goldman sachs' stock had plus 40%, partners would have to be crazy not to sell some here, thank you don't and they are anything but crazy. i say keep your palate dry and to be sure morgan stanley's

quarter was outrageously great as were the quarters from bank of america and jp morgan choice. how many times have twitter followers say what do i do with bank of america? i said i'd come in. stocks do go down. then the president elect came out and said the dollar had gotten too high. wow. no president ever comments on the dollar. but trump is a businessman, not a traditional politician. that said, there is not much the president can do to directly affect exchange rates but if trump can talk the dollar lower, more power to him. perhaps more important when the dollar is weaker, oil goes higher. you got a second set of variables. yesterday noble energy agreed to buy clayton williams with

fabulous ache rarea grkacreage possibly played 6.6 billion to double the size in the oil rich area with ultra low drilling costs. they attracted buyers galore. what a down day. it's tough to recognize stocks in the low 50s but i'm urging you to stay on oil and gas because come friday, we'll have the most profossil fuel president in history. don't be whip sawed. i know it's easier said than done but find something you like that's oil and gas and stick with it. how about health care? which was pretty weak today. i like united health's number and it always most always sells down on a terrific quarter. i think it's a buy. the stocks feel very tweetish here. >> not a trump stock. >> meaning it might be on the verge of another trump tweet. how about the 2014 prizing? would that shock you? something shatters the common in the group. i want you to be ready and the red hot transports with numbers

falling short. that giant railroad and united airlines matching expectations like the banks, the rails and the airlines stocks have run. again, a pull back can and should be expected, but for many people it's been so long since they have seen a pull back, they don't have the ability to stomach it and that's why i say you need a strong constitution to run this gauntlet right here right now. here is the bottom line, let's understand if trump makes comments at odds with ocongress it's not the end of the world. he hasn't even been sworn in yet for haven sake. i think you need to use weakness to buy stocks you believe in especially in the oil and gas base given the president elect's love affair with fossil fuels and bashing of the strong dollar. run in ron in indiana, ron.

>> caller: how are you? >> great. >> caller: happy new year but mostly healthy because i think you have the porosperous part covered. >> right back at you, sir. >> caller: i've been viewing since 2005. >> wow. >> caller: and i've done very well with the oil drilling stocks lately, very well, but i'd like to look into the health care opportunities and one that i'm interested in is knd on the new york exchange, kindred health care. nice dividend and big institutional buy. just wondering how you view the stock and do you think the repeal of obamacare will have any reverse on that? >> thanks for being loyal to us but both hospitals and nursing care could be under pressure. that's an area i don't want you to be in. i don't want you to be in that stock. all right. can we take a breath from the

whole trump rally? the whole trump slump? i'm waiting to hear that. the man has not been inaugurated yet and i see the moments of weakness and let them run, don't dive in immediately will be opportunities to buy siuy not s. could the tobacco industry make sense or just blowing smoke? forget trump and yellen. on days like today why it's better to let the companies do the talking and order up, restaurant stocks look to be a weak market tomorrow from cheesecake factory to panera, who has the goods to keep up gains. stick with cramer. >> don't miss a second of "mad money." follow @jimcramer on twitter. send jim an e-mail to mad money at cnbc.com or call us at

1800-743-cnbc. miss something? head to mad money.cnbc.com. [phone buzzing] some things are simply impossible to ignore. the strikingly designed lexus nx turbo and hybrid. the suv that dares to go beyond utility.

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. i had an epiphany this morning when we found out pretty fish american tobacco that brought us joe camel for $59.4 h a share. british american is acquiring the 58% of reynolds it doesn't already own and paying a nice 7% premium to where the stock went out on friday, not to mention 26% bonus versus where reynold was trading when bti made the first bid back in october. this is the latest move in a long wave of consolidation to the tobacco industry following close in the heels of reynolds american of laurel for $24 billion a year and a half ago. thanks to the success of the anti smoking movement, cigarette makers need to compensate. the best way to do that, merge. so what was my eureka moment? as soon as the news broke, i

realized with british american and reynolds combining forces, they will have the scale to really challenge phillip morris international, pm for you home gamers who global tobacco titan which is why i think phillip morris international needs to try to get back together with altria to make itself. remember back in 2008 the old altria broke up into two separate companies. they kept the domestic but spun off the overseas business. now this breakup has been fantastic. it's unlocked a tremendous amount of value. all told, if you hold on to both stocks, you got 118% gain. that's nearly double the 64% return from the s&p 500 over that sail period and without factoring in the gigantic dividends. however, the time has come to get remarried. to each other.

now this is an idea people have been floating for months, me included but with british america successfully buying reynolds, the need for phillip morris to me has become a lot more urgent and look, it would be easy to do. you probably know phillip morris but the products virginia slims, chesterfields, not to mention smokeless tobacco brands like skull and snooze and electronic cigarettes like iqos. think about this. iqos. aside from iqos, altria is the same. if phillip morris buys altria they are putting pieces back together. why do i think this deal is necessary? the scale issue. tobacco is a weird market. any smoking laws make it difficult to advertise so it's hard to steal market share. what matters the most is scale because the bigger you are the more pricing power you have with

suppliers and with british america buying reynolds, the combined company has 12.5% market share. not much more than phillip morris. in short, pnd needles to buy altria. altria has 2.8% of the market share worldwide but wh ochoa, ts lucrative because it's the u.s. market. speaking of the american tobacco market, it's gotten more attractive thanks to donald trump's surprise victory. but you better believe every u.s. tobacco company is drooling over the prospect of deregulation and lowering corporate taxes now that they control the commerce and white house. tobacco won't be beloved but political. plus before we can consider the potential impact of the trump tax cut agenda, cigarette solds in america have some of the highest profit margins in the world. that's a big reason why british

american wants reynolds. it will give them a tremendous u.s. business, all the more reason for phillip morris international to gobble up altria and don't have exposure, too great a market to pass up and not just smelly old school cigarettes. they created one of the most popular electronic cigarette platforms in the world. the vap riser. that's a turbo charged growth market because it's so much less unhealthy than smoking and might be a killer app. it's only been in japan for two years and got 4% market share, however, at the moment iqos is strictly international and the fda to sell it here as a modified risk. if they buy altria, it would be easier to roll out domestically and a huge winner in the united states. if this deal is going to happen, it's going to be expensive given

phillip morris international's market cap is not much bigger. and since phillip parish has just under $5 billion in cash on the balance sheet, they need to borrow a lot of money unless they share on an all-stock transaction and i think the merger will be worth it. that's why the way to play the story is picking up altria mo. strong fundamentals in addition to the takeover speculation. consider the british american expects $400 million in annualized senergies after the deal is closed. the combination would have more money. plus the cash flow is more stable and predictable something that would help the combined company institute a larger buy back or raise the dividend. speaking of dividends, when they broke up nearly nine years ago, altria was supposed to be a slower growing higher yielding growing stock.

phillip morris is supposed to be a higher grower but the two businesses turned out to be a lot more than we liked and phillip morris boasts the larger yield of 4.5%. some of that is because we want one of the situations where it gives you such a market equivalent yield. hey, look, they are both paying it away but altria is the one i want to buy. let me give you the bottom line. the tobacco industry is getting smaller and smaller and smaller for years as fewer people smoke. the companies keep emerging to continue growing. this morning's news that british america is acquiring them, is someone other than china national tobacco to challenge phillip morris international's dominan dominance. one reason they should move already and get back with altria and today's news makes this deal a heck of a lot more likely. we know the breakups made shareholders a killing but i bet the reunion between pm and mo

could be more lucrative, which is why i would be a buyer of altria of anticipation of phillip morris doing the right thing. all right. we got much more "mad money" ahead. trump may have sent a shiver through the stock but there are other things to focus on. don't miss my take on what the three biggest banks can tell us and how about food for thought? retail is a mixed bag recently. the restaurants are showing signs of strength. appetizing off the carts and one of the big tech topics of 2017 is automation. i'll sit down with a private company leading the way in the space. stick with cramer.

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because safety is never being satisfied. and always working to be better. sometimes it's best to let individual companies talk about the economy, not the fed, not the government, certainly not

the pun on friday we got a boat load of statements from the three largest banks, bank of america, jp morgan chase and wells fargo. put simply, their comes were remarkably positive, especially for those of us that listened to calls for years and years and didn't get nearly the attention they deserve as the stocks got hammered today, people forgot about it. first, let's establish the importance. these three banks took advantage of the great recession to increase national market share to unheard of levels, ones that the founding fathers would never endorse. jp morgan, bank of america and wells fargo control 13%, 9.9% and 9.7% of the nation's entire deposits. wells is the country's largest lender. it owns 12% of the market and jp morgan 6.3% and bank of america 4.2%. they have an amazing read of what is happening in the country and what is happening, all right, let's go to the tape. listen to these comments in the conference calls. j.p. morgan says quote, capital

expenditures, business confidence, consumer confidence, household buildings, household formation, waged income, unemployment going down and auto sales going up and retail sail going up, stronger not weaker. how come? the backdrop. what do they say about the backdrop? a healthier global economic outlook increased optimism and global political developments. not just the u.s., another tidbit, quote, if you look at a broad range of things that looks like growth may have gotten a little bit better in the fourth quarter plus if you take a walk around the world, japan is doing a little better, europe is doing better, end quote. jp morgan again quote end of the year with record balances of $189 billion, up 14% year and year with growth in both commercial and industrial and commercial real else state end quote. guys, that's incredibly impressive.

i can't tell you those numbers are astonishing. bank of america had nothing but positives to say about it's growth in the fourth quarter and i quote consumer banking led with 8% growth. we continue to seek growth in residential real estate as the pipeline from the third quarter 2016 flowed through vehicle lending was solid, end quote. at the same time the consumers, home equity pay todowns and run offs, there is lots of dry tender at bank of america and client balances $2.5 trillion. which they tell us was quote driven by market values, solid long-term assets under management flows and continued loan and deposit growth. of all, wells was perhaps the most upbeat on consumer lending. our credit card business benefitted from strong holiday spending. and december had record monthly purchase volume growing 8% from december of 2015.

so much for weak retail holidays. what is more astonishing is credit quality is strong. jp morgan told us quote credit performance remains strong with a net charge off rate of 11 basis points driven by oil and gas names largely reserved and finally get this. in commercial real else state, we had no net charge offs and reiterate three quarters of the portfolio is multi family lending, end quote. more lows, more spending and fewer customers going broke. i have never seen reports like this in the 35 years i've been following the banks. we often hear all sorts of worries about the consumer. none of the big three saw anything like that. the picture they panelled is one of incredible strength that yes, got stronger in this country after the election, by the way, the exact same positive set of points was driven home on the morgan stanley call this morning after they reported a stunningly terrific quarter.

i cannot stress to you how important all this is. there are so many people who bereave this rally is based on nothing but a pose election sugar high. every one of these banks, however, is waiting for this mo moment. prep for more rate hikes, plenty of demand and i haven't touched the benefits of deregulation. in short, it's the ideal backdrop for the banks to go higher. yes, their stocks got hammered today which is why i want to talk about it. it was ugly. how can fwlou you not expect that? they are up so much. nevertheless, i'm committed to this group and after some profit taking, i think the banks, particularly jp morgan runs a new. robin in california, robin? >> caller: yes, jim, how are you doing today? >> so well, robin, because it was a great weekend. how about you. >> caller: i had a fantastic

weekend and i have your bobble head and i love you to death. >> wow. that's fantastic, thank you very much. >> caller: you're welcome. my question is, if i've got the stock named square sq, wondering what down think of that and my other question is i've made about 21 % on that the last year and i'm wondering do you think i should take some money off that and diversefy it somewhere else? >> no, we like that. tore see ru dorsey runs that and twitter. there was a lot of risk being taken by square on cash lending and i know this because of my -- the bar i own. the answer is no. they have already little risk. they are a cautious company. it is really interesting smart company doing many things. it has a chance to run out more than 21%. thank you for your kind comments, robin, and i think you should continue to own square sq. luke in florida, luke?

>> caller: boo-yah, jim. >> boo-yah. >> the trump rally made my portfolio look really good. unfortunately, i'm having trouble finding any deals but with tsa public storage, what is your opinion on psa. >> it's a great demographic play on baby boomers downsiding, however, remember, you need lower rates in order to be able to have these stocks run and that's what we've had for the last ten days. today the rates are as low as they have been in a while. i would cut it in half. why? because ultimately rates i think will go higher, not lower as they have been and this stock may not be are you want to be. all right. sometimes all the info you need about the economy as a whole is in front of your eyes but you got to do the homework. the banks gave us all the insight we needed on these dry conference calls.

things are quite strong, and jp morgan is, too, despite that big decline. now, much more "mad money" ahead. i'm taking a bite out of restaurant and if they can keep serving gains than look out mall cops, there say 300-pound security robot for your job. i'm not talking about reboot. i think it's interesting. all your calls rapid fire in tonight's edition of the lightning round, stick with cramer. >> tomorrow, kick off the trading day with "squawk on the street." live from post nine at the nyse. >> come on, that was a great statement. >> i let it -- >> commercial -- >> i let it sit there and hang. >> it sat there like a pick. >> so filled with drama. >> like a pick. >> it starts at 9:00 a.m. eastern. n.

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if you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis. 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 and they're absolutely right. they say that it's hot... when really, it's scorching. and while some may say the desert is desolate... we prefer secluded.

what is the desert? it's absolutely what you need right now. absolutely scottsdale. now we're a couple weeks into the new year, let's take a closer look into what is working. retail is real mixed bag, we've seen some tremendous strength in

the restaurants. particularly the casual dining and fast food. the companies are doing well. it's also that even when these companies miss the numbers, their stocks still went higher if they managed to deliver some sort of positive outlook. the market has been willing to look past short-term weakness if it sees signs of longer-term strength the some of the big name leaders had ups and downs and i'm thinking about mcdonalds and buffalo wild wings, to say nothing of the mess at chipotle. but there are plenty of consistent winners here, too, and it sure doesn't hurt that this market is anticipating a strong er economy courtesy of te progrowth policies that will lead to maybe higher wages and more hiring. something that will translate into more people dining out. that's why this sector could be a sexiest groups of 2017. but since the vast haven't spoke, we're going off the

charts with the help of bob lang, the help of explosive options don't net and the brilliant technician in the three-man all star team between thestreet.com's newsletter. get a better sense of what is really working in this restaurant space. lang spotted a number of restaurants with strong money flow, good volume and robust price trends. that's exactly what you want out of a chart. which restaurants does lang like right now? why don't we start with the daily chart of popeyes' louisiana chicken. we know we love popeyes. we had them on so many times and let me tell you, it's lead by the fabulous ceo that we've had. according to lang, popeyes is perhaps the strongest chart in the entire fast food segment. which makes this picture so attractive? notice how the stockelection, w. since then popeyes is trading sideways or in charts, it's been consolidating at a higher base.

this is very positive action. think of it like this, basically the stock is digesting the earlier gains and the base building is sort of like a launch pad for the next leg of the rally. sooner or later, popeyes is going to break out above the resistance at 63. you can see that's really contained. it's also all-time high and after that lang expects it to be smooth sailing. what makes them so confident? okay. take a look at the shake and money flow, the cmf, oscillator and bottom of the chart. it measures buying and selling pressure in a stock or in other words gives you a sense of what the big institutional investors are doing. in the case of popeyes, this money oscillator is positive since the election. even as the stock has been trading sideways, money managers are accumulating shares and the moving average converging diverging, we call that the mack d, momentum tool that helps

technicians spot changes in a trajectory before they happen. popeyes may they mathey made a cross over and this is one of the most reliably positive charts. put it together and they think popeyes is the best name with the stock that can potentially travel to 75. once it can break out above the pesky 63 resistance. that's about a buck and a half above where it's currently trading. i agree with bob. next up, take a gander and more controversial one. the daily chart of the cheesecake factory, that's cake for your home gamers. after a monster move in the month after the election, once again, aren't these extraordinary? the stock is pulling back. however, the pull back ended with the stock finding a floor of support at its 50 day moving average. since then it started climbing again and lang likes what he sees while the money flow, cmf,

oscillator is negative for cake. that doesn't bworry lang. he's got the bullish cross over that i just described in the last chart throw in the fact that cake rallied nicely on high volume last week and here is the volume and lang expects to test the new highs up more than $4 from here. i'll take that, huh? comes the stellar one. this is the daily start of jack in the box. that's the burger chain that owns cadova benefitting from chipot chipotle's misray. jack was the best performing restaurant name of 2016, up more than 50% hast year. however, the stock got over bought going into the end of the year. you can see it's boom, boom, boom, right and resulting in a modest pull back. lang thinks jack in the box got bearings. the stock has a pattern of higher highs we can see

throughout and a lower, you know, higher lows we want again. look at that, look at that, look at that, it's beautiful. faces resistance at 112, up about $4.5 from here, lang believes it can blow through the highs and continue the post election trend. boy, that would be really incredible. most controversial one for last, let's check out the chart of cramer fav pa nenera bread. it's at an inflection point. not necessarily good. it's going to break out or break down. he believes upside move is more likely. the reason, panera exploded higher after the election and pulled become a bit. but in vent weeks, it's begun to rally again and while the shake and money flow, the oscillator here is negative. it's starting to turn up. you can see that, a few more up days in 2017 before it goes positive but on top of that,

here we go again flashed a bullish cross over a couple of weeks ago, a very positive side. the stock of panera that caught members of action alerts.com is a favorite of my charitable trust has a good support in a resistance at 215 dropped that. that's up less than $4. that's a tough ceiling. why? because the stock peaked not once but twice before so it's been just very difficult to get through. still, lang expects panera's momentum to carry us through and expects it again to be smooth sailing with the stock potentially blowing through the old highs and claiming to, bob said this, pretty amazing, he thinks 240. goes to 240. that's a pretty darn bullish picture. the bottom line, the charts interp brei interpreted suggest they have more room to run. 2017 could be the year of panera bread, cheesecake factory, jack

in the box and popeyes. on the fundamentals, i agree with the man. "mad money" is back after the break. insurance company.

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it is time, it's time for the lightning round. our friends want to know buy, buy, buy, sell, sell, sell and then the lightning round is over. are you ready? ti time for the lightning round. time for kirk. >> caller: hey, jim, big fan of the show. i had a question about home depot. i bought it in 1998 and i think around $50 a share, maybe less than that. right now $135.93. i want to know your opinion -- >> i think it's 100 points and not relengthing. i saw it down to 134. if this stock comes down as a sell off, i want you to. >> buy, buy, buy. jim in new jersey. >> caller: hi, listen, number one, you and your family have a happy healthy new year.

>> thank you very much. same. >> caller: all right. number two, serl. >> that's the lowest quality of the drillers. i prefer schlumberger. you can read about it. we like it very much. i think that that's a much better way. they do report later this week. we want to go high quality and thank you for the nice words. michael in new jersey, michael. >> caller: jim, how are you doing? >> good, how about you? >> caller: great, thanks for taking my call. i'm interested in hiiq. >> go high quality. united health reported a great quarter. what happens when that company puts a great quarter and stock goes down? does that mean? you do some buying when the stock -- you don't chase it, it comes to you. let's go to corey in new york, corey? >> caller: how is it going, jim, great to be on the show. >> how are you? >> caller: i've been day trading for about a year.

messed around with one stock last year, i don't want to say what it is and did really well. right now i'm sitting on exel. >> that is one we got behind last year and i got to tell you, it's almost -- it's too hot. it's too hot for this guy. it's too hot. i want to be careful because i fear the tweet. >> not a trump stock, not a trump stock. >> jim in maryland, jim? >> caller: boo-yah. love your show. the best hour on tv. >> thank you, man. >> caller: my question is about marathon petroleum. since you had them on the show, they have adopted a drop down plan with a master limited partnership. does that affect the common stock -- >> it's very positive, and -- >> trump stock, trump stock, trump stock. >> i think that's a terrific place to go if the market comes down. taking one more, steve in washington, steve? >> caller: big fan of the show. ba, ba, boo-yah. >> thank you. >> caller: i had a holding in

huntsman. your opinion? >> interesting and doing a spin off and what i guarantee you is when they do the spin offs, what do we do with "mad money" a take out. let's take a look before we make a snap judgment and that, ladies and gentlemen, the conclusion of the lightning round. >> the lightning round is sponsored by t.d. ameritrade. tok your support team for walking me through my first options trade. we only do it for everyone gary. well, i feel pretty smart. well, we're all about educating people on options strategies. well, don't worry, i won't let this accomplishment go to my head. i'm still the same old gary. wait, you forgot your french dictionary. oh, mucho gracias. get help on options trading with thinkorswim, only at td ameritrade.

suspeometimes if you need tt a peak at the future, tonight we're going off the tape with night scope, the technology company trying to revolutionize the $500 billion security market. night scope makes what they call at atonnous data machines, corporate campuses, event venues giving traditional security guards an extra set of eyes and ears. something out of robo cop without the accidental fatalities. they come out with innovative hardware and software but a unique machine as a service business model like software is a service with robots

dramatically reducing up front costs of using the technology. light scope is not yet publicly traded. they did a mini upo in cooperation with seed investment. so could this be the future of the security industry? let's take a closer look with the chairman and ceo of night scope and learn more about the incredible invasion. mr. lie, welcome to "mad money". >> thanks for having us, jim. >> crime unfortunately we know is a trillion dollar negative impact on the economy. what can your machine do? >> every single year, every year, it's a hidden tax we pay in blood, tears and pressure so imagine if we have hardware, software and give every security guard superhuman capabilities. what if they could read 300 license plates a minute and look at the image and say wow, that's over 400 degrees, that's a high risk of a fire or that person was here yesterday and scoping the place and they came here the day before and the day before

and the day before. maybe i should let somebody know? right? maybe smart eyes and ears for security guards to do jobs more effectively. >> this must cost a fortune. who can actually afford it? i look at your clients, sacramento kings, microsoft, it's -- is there a pay back that can be ascertained? >> a machine as a service. everything is included, hardware, software, data, storage, maintenance, service, fancy decals we put on the machine. >> hmmmm. >> maybedecal. my kind of machine. >> all in at $7 an hour. >> that's all? is an average security policeman cost? >> an off duty law enforcement officer, probably $90 an hour. a mall cop, plus or minus what you want them to do is about $25 an hour. clients that spend 50, $150 million a year in security

guards are looking to not only reduce costs but increase capabilities. >> but we understand a couple of points, safe to operate in large and crowded environments but will not eliminate human security. >> no, no, no, this is intended the give the security guard superhuman capabilities at their fringe e fingertips. >> there is a big debate putting people out of work because of machines. i mean, it sounds like this would actually because it's a trillion dollars negative every year, it would actually save people a lot of money they could use to hire people. >> all right. let's look at the macro economic. let's say, let's foast forward and able to prove we can cut crime in half. talk to me about the impact on housing prices. talk to me about the impact on insurance rates. the viability of someone's local business, the safety of your family like it's a game changing opportunity not only for invest tors but for society at large. >> so for west field malls, how

do they use it? >> running 24/7 at san jose mall in california. >> are they walking around or stationary. >> patrolling. so there isgxp of people working on self-driving cars, we commercialize that as kind of first mover advantage and have operations in nearly a dozen locations. >> this is filled with sensors? >> yes,ç yes. >> the technology. semi conductors. >> 90 ter bitrabytes of data. we can monitor it and influence navigation. >> can it talk? does it say anything? >> if you're polite, might have an attitude, never >> let's hear. hmmmm, silence. >> not too polite. >> if it decides to speak up, it should let us know.know. i want to be sure, if microsoft used it, that would be on campus. >> on their corporate campus. clients are corporate coampuses

malls, oil, gas, solar forms, fs wind ,forms, et cetera. >> last question, i know people will watch this and say i want n to invest in night scope. that's a little complicated, right? >> no. >> realllly simple. in 2017, someone in their armchair now can actually invest in knight scope, hit the invest button and off you go and buy y the preferred stock and you're a shareholder in knight scope. >> thank you so much. >> hey, thanks for having us. >> terrific.te that's the chairman and ceo of knight scope.scope. any final words? >> boo-yah. >> stick with cramer. wh cramer. one of the largest business process companies in the world. whether it's in health care, customer care, technology, transportation or government. we touch millions of lives every day.

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♪ only at&t offers you all your live channels and dvr on your devices, data-free. it's entertainment. your way. i like to say there is always a bull market somewhere and i promise to find it for you right here on "mad money." i'm jim cramer and i'll see you tomorrow. rrow. tilman fertitta: tonight,

on "billion dollar buyer"... we took our entire life savings. our families are relying on us to make a living. tilman: they've risked their futures to follow their dreams. i don't want you guys to go out of business. now these entrepreneurs face their biggest challenge yet. a frozen cocktail company on the verge of melting down. i don't know if you're gonna be in business - in a couple of years. - we don't know for sure we're gonna be in business in a year. a furniture maker with a wobbly foundation. where's the rest of your team? - just me in the back here. - that is an alarm. if they can earn my business, their big bets will pay off. y'all should be proud that y'all created a good product. if they don't, they might just lose it all. at that number, it's still at a disappointing level.