anything worth buying or selling off of this new cycle. so maybe we should open that we're at a peculiar point in the calendar a couple ofweeks where historically nothing has happened, yet we get great volatility then the stocks rally as they did this afternoon i've got to tell you, i know why. no apparent reason why am i certain we're trading on nothing i thought a lot about these periods and learned there is random movement periodically, and it always gets ascribed to something. the market is not always logical

and the action doesn't always have to have a concrete cause. that's why we might as well be adescribed the action to the eclipse. it's about as dark as these glasses. this morning, starting with f.a.n.g., which is facebook, apple, netflix and google, they were up and down and people scrambled to find any reasons whatsoever there was a lot of instant analysis about what was wrong. everything then within minutes, we start to see the usual obituaries being written about f.a.n.g. right there, 9:38, 10:05 when they go down for a couple of days, people like to pronounce them finished on day three. that was the daily discourse but this is what i mean about august wouldn't you feel better if you knew where the f.a.n.g. stocks were coming down rather than saying they're coming down because they're coming down. or if there was an actual reason

they're coming down. or that something good was happening at the company so you could buy on the weakness. but there's nothing going on at those companies. they remain as dominant as they were when they reported their earnings maybe that's why they pretty much rose from the dead and rallied again. as they have so many times before in the years since they started to matter. facebook stock at one point was down two bucks and we heard it was all over for facebook. you know what, at one point in my life this kind of action drove me crazy a few large accounts, big money managers can really move stocks when they get in or out, because there aren't enough players around to make for a coherent, relatively friction free trading. for example, i can recall a moment when i was renting a house back in august of 1988

i simply refused to go outside to the beach until i could find out what was wrong with the stocks at data general and digital equipment. one got bought, the other one doesn't exist. i was going bonkers. sellers keep appearing and knocking the stocks down then it extended to apple, and i was beside myself because there was nothing wrong with apple it got to the point where i never went outside to the beach until the market closed. two, i ended up fall forging fo lot of false rumors about the companies. it just turned out to be a great time to buy. in reality, nothing really was going on the negative action was random and meaningless. but what did i know? the market was trading on nothing. remember, not only is there once again nothing going on at the various companies that were trading shares in, for the most

part, but the usual market moving suspects are on hold, too. there's nothing happening with rating today dollar is going the right way for the bulls. oil is drifting lower, driving the oil stocks down. the constant presidential turmoil took a break today, unless it's something to note that the prt president looked at the sun without his glasses and congress is on vacation. things aren't that desperate yet. there was no important research outside of the footwear industry retail away from foot locker and footwear is okay, which is important, because there's nothing wrong with retail that's not in the mall. if it's in the mall, it's suspect. more on that later in the show it would be glibif i were just picking august out of a hat. but there have been so many augusts like this one, i have to share it with you. two years ago, we were so

worried about china. two years ago this week, the dow jones went from 17,600 to 15,600 in a couple of days, culminated on a monday flash crash. general lelectric, similar percentage move. what happened? a fed official who was in the minority gave an interview on some satellite radar station about the need to increase rates at the exact moment when the chinese stock market had been hit. the fact is, nothing was about to change the fed policy, nothing did change except stock prices took a meaningless tumble i was on the floor of the new york stock exchange when that monday flash crash was happening. you couldn't just say, here goes august again that would be too glib in fact, i remember when david favor, one of my partners, said i've got to leave the desk to make some calls, find out what was going on once again, though, nothing was

going on except a great chance to buy, as we had a confluence of machines that broke down. so few players around that the volatility went nuts could that happen again? absolutely the exact same scenario. nothing could necessarily stop that from happening. could it be a precursor to something huge if you go back to 1987, it got really ugly again, this week bounced back after labor day, never thought about it again until that october, when we had the great crash of '87 we were at a period that was very much like this, where it got very cloudy. the market seemed ready to fall off a cliff, okay? when was that? 35 years ago last week 35 years ago last week, we got something that was very

interesting. you know what it was the beginning of the bull market dow up 776 nobody expected anything but declines in that case, it turned out to be something real big. i mean, really big so before you sell into each august decline or buy into each august rally, which way too many people do, the bottom line is sometimes nothing happens except an eclipse don't mistake the action for actual action at companies or treasuries or commodities. it's just confused people selling and buying so i'm putting money to work, a giant bank where there's nothing much going on except figments of imagination. mike in new york, mike >> caller: jim, thanks for taking my call >> absolutely. the staff is unbelievable. you should have seen them out

there looking for the eclipse. i was putting my hand over their eyes they thought wow, there's nothing happening. >> caller: i just want to say, what a great, great interview you did with mikey from citi finally some good news what a great interview >> thank you for that. we worked really hard on that. that was one you take about 15, 16 hours for 12 minutes, but i'm glad you liked it. how can i help >> caller: my question is, i'm a long-timeshare holder of johnson control. i've been there for many years i feel like what's going on with the tyco and all this merger, i see what the stock has been doing. the past year, year and a half, should we hold the stock and today i seen in the news with oliver coming in six months

later -- >> we had him on the show a couple of times. i thought he acquitted himself well, but people wanted time for a change, other stocks in that same industry are doing better that's why i think johnson controls went up so i think that sometimes it changes at the top, whether we think is appropriate or not, is greeted positively in this case, it was you're not supposed to come out and say nothing happened today. but what i can tell you is i've seen many augusts where nothing happened yet we thought something was. don't mistake the action sometimes it's okay. sometimes it just doesn't exist. on "mad money" tonight, there is a battle brewing at adp between the company's executives and bill akman, the hedge fund billionaire. what should your next move be with the stock and at one point is it time to take macy's off the sale rack?

i'll eye the potential of the company. and big data machine learning. i'll speak with the ceo of data center real estate to understand a different way to play this big trend. stay with cramer >> don't miss a second of "mad money. follow @jimcramer at twitter have a question? tweet cramer at #madtweets send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. with at&t you can get your entertainment right here. right now, when you get the incredible iphone 7 from at&t you can get unlimited data

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the company. i think he did come to some wrong conclusions. one of the things i would have appreciated is the opportunity to have a discussion about some of the conclusions he reached. >> so this was sprung on you then, he did not have a back and forth about the 176 pages worth of things he feels you're not doing right? >> that was the first time we saw the presentation is when you saw the presentation >> hmm, okay so therefore, when he talks

about the underperformance that you conceal and you overstated your growth and commentary on client losses misleading, had you sat down with him, do you think he would have reached a different conclusion >> i think so. one of the central thesis to his presentation was our sales data was overstated we kind of take offense to the implication that we are, i guess, playing with numbers or not disclosing information we should be. as an example, on our new business bookings number, they've come to the conclusion that we are including our peo business, which is not accurate. it's one of our lines of business other examples are, they were using a client count number from 2009 from a presentation in our up-market business, which included our stand alone clients.

we also have these stand alone clients, like we do taxes for some companies and payroll any way, long story short, in 2009, whoever made that presentation included those clients also in the total number, and the number that he's comparing to today is not the same so our clients are slightly up i appreciate the opportunity to clear the record here. there was a comment about sales force productivity if we had the opportunity to explain what the source to have data was, where they got the information was, we could have clarified it was wrong >> in other words, the numbers imply that the head count didn't produce any -- that is not the case this >> that is not the case. the sales through fiscal year 2016, grew at 10% compounded annually we had an issue, but throughout

that time ourgrowth has been half on a compounded basis, half of the growth of sales hence, we have achieved productivity >> i do feel in full disclosure, your stock has been terrific under you. so i feel like in some ways i'm asking you to defend your life where there are 400 people that could be sitting in that seat who have much more reason to sit there to answer these things but i think it's an interesting and important discussion he does own 80% of the company should that put him in the room >> i believe in the system and our economic system, in our country's system it is a little troubling, because sometimes people's stock has been underperforming five to seven years and they deserve to be in the hotseat. i feel like now if you do perform you're in the hotseat and if you don't, you're in the hotseat. >> and your numbers versus the s&p?

>> up 200% s&p is up 80%. pershing square is up 7% after fees i'm not sure how it's possible to have that much in fees to have your return go down by that much, but that's what the published letter is. >> we'll have to get his comment on that. >> it was his letter >> i don't have that >> i have it for you >> i trust you so we've had paychecks on a number of times and workday on a number of times. workday is growing at 38%. it's a smaller company, but is that a comparison where i could say that workday is growing so much more rapidly than you, why aren't you a cloud based company growing as rapidly as they are >> it's a fair question. it's a successful company, we happen to partner with workday, in addition to competing with workday. so in many cases, their human

capital software is cloud based, something that we work with in terms of -- we actually have a very good relationship with workday. they're a good company as you said, the performance is undoubtedly very good. >> paychecks, his margins are north of 40% yours are much less than that. should you not have the same margins he has >>we're slightly different companies. we have an international business that paychecks doesn't have we also have an upmarket business with structurally lower margins and bpo businesses that have structurally lower margins. but they're low capital intensity and very good returns. i have to say that again, yo picked another good company, because paychecks is a great

competitor >> do you have the same -- they're all small and mid size mostly do you have similar margins of 40% to your small and mid size >> very close. we have made a tremendous amount of progress in our down market business that's kind of the first business where we built an entire cloud based versionless software system. we then migrated all of our clients on we have 500,000 clients on what we call run in a down market that's freed up enormous resources which has translated into happier clients, but also higher and better margins we had five years ago >> so would. that presume that your larger business -- >> if i could clairely -- clarify >> there's a lot of things that read apples to apples in the report, but it sounds like that it may be a little less clear than what the report says. >> well, i think -- you really

have to get down to the details. you have to look at what's really behind the numbers. there were comparisons in the presentation to us and other companies that exclude their stock compensation other companies that -- >> therefore, those earnings would look greater than they should if they used that -- >> correct using a comparison with an e-bit number >> david favor interviewed you and he said that your -- that basically your company is in slur and that there hasn't been a new amount of -- a lot of change looking at the proxy statement, it seems like those people have been there a lot and at the same time, you called akman a spoiled brat, which i understand because he shocked you with this stuff. but is the charge that you're insular correct and is he a

spoiled brat and what did he do to merit that name >> as you can say, we don't deserve the name, insular. one of the things that was talked about in the presentation was how insular our technology organization was, and 20% of our technology engineers are less than a year into the company so we've been refreshing our engineering talent 50% of the engineering talent is less than five years with the company. as for the senior leadership team, if you had other people in this seat, you would see a similar picture, which is a team that's relatively new to me in the sense i didn't inherit the same team in place now, but who rose up through the company. i think that's fairly typical in a company. we have lots of talent we bring in from the outside. 25% of what we call the senior executives of the company last year that were hired into positions were hired from the outside. so we are bringing in talent from the outside we're refreshing the company, and i'm incredibly proud of the

organization i don't think we're insular at all. >> one last question had mr. akman called you and said look, we want to work with you, we have a big position, maybe one day we could have a board seat, would that ever come to pass? or that he wouldn't fight -- you wouldn't fight it? >> just to be clear, i'm not fighting anything. >> would the board of directors think otherwise if it had been done in a better manner or a manner people would find more reasonable >> we were professionals and we don't take things personally i think the facts speak for themselves the performance we have versus pershing square, the ideas brought up, which are not new to us or to the management team i think it's a deeper issue than the manner and form it was presented. but it was an odd way to approach a company in fact, i had a conversation

with bill right before we agreed to disagree that he was going to launch a proxy contest i said bill, when you get back from vacation, let's meet then and he did mention he wasn't ready with his presentation. but i said when you're ready, we'll meet, whether it's late august, september. and he said, i'm afraid that's not going to work. i have to have the leverage over the threat of launching a proxy contest in order to get you guys to agree to the things that i want to do with the company. again, i just add that i'm hoping he's an 80% share holder. i'm not sure if it is to conceal what the transactions were, but there were derivatives used, stock options and forward contracts. i'm hoping at this point, now that he doesn't need to conceal his position anymore, that he's

converted his ownership into true stock ownership >> what we'll do is get his responses to this. i hate to play ping-pong, but you very fair to answer the questions he asked and i appreciate you coming on, sir. i always say you are what your record says you are. >> thank you very much for having me. i appreciate it. >> thank you that's carlos rodriguez, the president and ceo of automatic data processing. "mad money" is back after the break.

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forcing stores into a more promotional environment than you would expect otherwise in 2014, the company's net margin was 5.4%. get this, latest quarter, cut in half 2.1% they're way too close to being in the red that tr macy's beat the latest earnings estimates, but the stock still lost 10% of its value. i have to wonder if the quarter was all that bad while many line items look real ugly, they have improved versus the previous quarter

overall revenue shrank by 5.4%, better than the 7.5% decline the previous quarter net margin improved, and while the earnings are still falling, they're falling a lot more slowly than we saw in the first quarter than when they were down 40%. when i saw the results, my reaction was ha, not as bad as i thought. i wasn't alone the stock rallied 1.5%, turned negative quickly, and macy's only opened down 2%. but what caused the stockto ge crushed? two things first, management noted that same-store sales would be down 2.5% in the next quarter then they said the holiday quarter would be very promotional. let's talk valuation macy's is finally getting too cheap to ignore.

one thing i found heartening is management reaffirmed their guidance this quarter, given how many times it's cut guidance in recent years, making it easier to trust the estimates consensus is macy's can earn $3.38 a share. less than six times earnings means people have no faith i don't know if that's right it's extremely cheap normally you don't see a stock this cheap unless people do slash the estimates soon after macy's own the land on most of its 841 stores while that's mainy mall based property, they have some nice free standing locations, including in new york city that sits on a full block of prime real estate. how much is the real estate worth? just the real estate alone is $21 billion. macy's has already sold off $877

million worth of property in 2015 and 2016, including land in brooklyn and san francisco we don't know what's next, but macy's has teamed up with brookfield to evaluate 50 assets the company sees as valuation creation opportunities you can understand where so many people think this story could be real compelling. we'll say the land is only worth $10 billion. you get $3.7 million after you subtract the debt. and let's not forget, macy's had just under $5 billion in merchandise inventory. say they get 20 cents on the dollar, that's still $1 billion worth of stuff so giving no credit at all to their business, if they just liquidated, it would be worth $5.5 billion that means you're getting the whole business, more than 800 department stores for less than

$500 million let's not forget the dividend. macy's supports a 7.7-year-old the truth is, right now macy's has enough cash to cover it. dividends cost $460 million annually here's the bottom line, macy's may be a high risk store owning a department store stinks in this environment. but we're getting close to the point where the stock is too cheap to ignore, unless you leave the company is going under. but macy's is looking like it could be a bargain, as long as you can stomach the risk stay with cramer

♪ we love big picture themes here on "mad money." powerful, long-term trends that can generate major multiyear runs the data center is where it all

begins as more companies transition to the cloud, you store your software information off site and access it online, the demand for data centers keeps climbing. everything you get you have the web has to be hosted somewhere, which means a data center, which brings me to cyrus one, a real estate investment trump that provides facilities to over 900 customers. stocks have been up on a real tear here. look, we know business is good, baa they reported a strong quarter, with the company delivering a nice top and bottom line and this stock still sports a generous 2.8%-year-old let's big deeper with the present and ceo of cyrusone and find out how the company is doing. welcome back to "mad money." >> thanks for having me back on,

jim. >> so every time i think that everyone has gone to the cloud, i discover that we are -- how is it that everyone hasn't gone to the cloud and how can they find the space? >> i think it won'ts to roll on. we eclipsed our expectations this quarter, and i think we're in the first or second inning of a trend that will go on. >> they still haven't figured out that it's cheaper to be on the cloud? >> everyone is recognizing more and more it's much more effective to outsource their data center needs and all of your f.a.n.g. companies are realizing the opportunity to outsource to a company like us >> here's a page that says oracle hits an all-time high, google tripled, sales force, you wouldn't use all these companies unless they use you. >> we have nine of the top ten

largest cloud companies in the world. we're working hard to get the last one in the portfolio. as the growth in cloud goes, so goes our company, too. >> if you asked me what has been the negating factor, it's very difficult when you're full-up to have 102%. what are you doing to -- the sentinel acquisition, how is that working out >> we are sold out we've been sold out basically since the third quarter of last year but this quarter we're bringing on a lot of extra capacity in spite of that, we've had strong bookings, up 50% versus what we expected so we're doing really well heading into '18 >> one of the things i've gotten worried about, we've got all these different companies that got hurt on real earnings because of security. what kind of data security does cyrusone offer >> we provide physical security.

there's six or seven different layers of security we use. the logical security is something the customers are responsible for. >> are you worried like i am >> security is the number two concern from all of our concerns >> what is number one? >> reliability >> so when i look at the -- where the people are from, health care is only 5% theoretically, health care is -- got to have the biggest amount of data in the world >> it should be about 15% of all the data growth that's going to occur over the next five years >> that's a natural client that will be much bigger. i look at -- you don't even have -- i have to believe these utility companies have to have everything in the cloud. i don't think any of them are in the cloud. >> not so much we do some work in utility space. it's not growing as fast as we expected more of their business is being outsourced directly to cloud

companies, so we're getting it directly so our cloud vertical is 26% of our revenue, which is up from years ago. >> i know texas and chicago is unbelievable why is new york not so strong? >> it's interesting. we have a really big presence here, but it's probably been our slowest growth area. what we've seen is a lot of the extra growth that was previously going in this area is moving out west >> i know where yours are, i wouldn't be too concerned. >> it's basically having an a and b leg, they're choosing further away >> you're in one of the hottest businesses in the world and you just put up a great quarter. that's the president and ceo of cyrusone i regard this as a growth company that happens to be a real estate investment trust that's what i'm looking for. "mad money" is back after the break.

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sit time it's time for the lightning

round. [ indiscernible [ buzzer ] and then the lightning round is over are you ready, skedaddy. khalil in texas, khalil. >> caller: hey, how is it going? >> oh, man, good how about you, partner >> caller: good. i was wondering is now a time to buy? >> yes, absolutely >> buy buy buy >> remember, we felt that the biggest problem is piracy and that's being solved. al in north carolina >> caller: boo-yah, jim. thank you for taking my call, jim. >> of course >> caller: long-time listener with my brother john and myself. our stock today is tal, education group. it split last week 6-1 can you tell me about that in >> it's chinese stock that's been red hot i don't really follow it closely. the only chinese stock i'm recommending and recommending aggressively is alibaba.

larry in massachusetts >> caller: jim the institutional hold is bulking up and roth and tjx reported positively. should i improve my basis or keep my powder dry >> larry, i appreciate your calls, and i have to tell you, ross is going to be good i really want burlington to come on the show. christopher in new jersey, christopher. >> caller: hey, jim, boo-yah from new jersey. >> man, i was there the other day. what's going on? >> caller: your opinion on enterprise >> the yield's too high. the problem is, etp, energy transfer, is destroying that whole group. it's the biggest one that's pushing every one up and down. let's go to chris in georgia chris. >> caller: hello, jim, a big boo-yah from georgia, the home of the sweet onion >>i was there many times, and

will be there again this weekend. how can i help >> caller: awesome my question is about jd.com. >> it's real good, but again, i reiterate, i think alibaba is better paul in california, paul >> caller: yes, mr. jim cramer, a big boo-yah to ya and many thank yous i just can't see my way through this one, so if you can show me the light on chesapeake. >> they needed hotter weather this summer or much colder weather than it got. that's why that stock is at three. it's a weather play. and the weather didn't go their way. let's go to jordan in washington >> caller: cramer, big boo-yah from the nation's capital, and boo-yah from my grandpa in south florida. >> it's acting poorly and it's

in the oil and gas business and i'm not recommending anything in the oil and gas business i don't want to recommend a short. what can i say don't buy it tom in oregon, tom >> caller: hey, this is tom from oregon looking for advice on a company called new relic >> somebody downgraded it last week i'm a buyer of that stock. >> buy buy buy >> and that, ladies and gentlemen, is the conclusion of the lightning round. >> 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.

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oh, man, we were just blind sided, totally faked out that's how i view this disastrous quarter from foot locker results so stunning, that i have to tell you, you can never, ever look at this company the same way again. the headline number, 62 cents down from 94 cements last year, same-store sales down 6% but the commentary, it was down right catastrophic >> the house of pain >> sales down across all genders. sales of some recent top styles fell short of expectation. as well as the recent hot shoe from adidas. the ceo, who is a darn good executive, said that "we are obviously disappointed in the

results for quarter and our team is working quickly to address to a changed retail landscape, which we see our consumers move faster than ever from one innuance to another. the problem is they can't do it fast enough. or as johnson told us at the beginning of the call, the disruption taking place today in our industry and in retail in general is the most significant i've seen in my quarter of a century in the athletic business the fact that we are seeing mobile technology drive shifts in consumer behavior at a faster pace than our industry has been able to keep up with i mean, foot locker has closed more than a thousand stores since 2010 it hasn't been encroached by amazon that much, but this is the line that sent chills through me the company has double digit declines in basketball shoes

shoot, that's where the profits are. what's really going on first, i think the long running love with the nike air jordans may have ended "today's kid really needs sneakers connected to a story. even though michael jordan was the best basketball player of all time, there are teenagers alive today born after he retired. it's just not current. the double dip speaks to the power of the shift second, the consumer moved on from stan smith's. here today, gone tomorrow. how about that $12 million underarmor paid steph curry? probably not even mentioned. johnson says -- nord, in other it's harder to charge a premium price. we keep hearing about this issue throughout the reporting period. this makes it so the consumer

balks as most price increases. foot locker is still a $1.2 billion buyback going on that's significant however, this reminds me of bed, bath, and beyond they spent a lot of money buying back stocks, but the market cap is down to $3.9 billion. business was lousy they might have as well burned all the money. so even with the stock down from 47 to 31 in two days, it's still not a buy. i don't know what can turn it around you know what? i don't think they do either stick with cramer.

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>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ i'm dallas robinson... and i'm mike buonomo... (both) and we're from salt lake city, utah. we first met in college, and we just kinda clicked. some ideas just percolate up. we've created something that creates a chemistry between two people that's absolutely amazing. yeah? yeah, i think that's right. we grew up with a very strong moral background,