>> let's not put up guy's final bid. >> wise guy? remember about march 20 something and in the hat club downgraded the stock guess what they just did upgraded t sckheto play the game. >> i'm upgraded the stock >> i'm melissa lee thanks for watching "mad money" with jim cramer starts right now my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to save you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. my mom always said, if you keep playing this hard, someone's going to get hurt. on a day like today, where the dow dipped 55 points, the s&p

inched down .09% and the nasdaq climbed .21% it feels like my mom is in charge this market i say that because there are parts this economy that are so red hot, i mean steaming -- that somebody is going to get hurt if they don't cool down and i don't want it to be you. how is it that a strong economy can actually hurt us okay, listen up. for the first eight years after the great recession the federal reserve had one goal, get the economy humming again. then a couple of years ago the fed decided the economy was healthy enough to come off life support so they started raising interest rates think about it as we left rehab around the 2016 election and last year we started walking again. now the economy is sprinting and it's dawning on investors that the fed will need to keep raising rates. that's because when the economy catches fire you also get inflation unless you do something to tamp it down.

inflation is something worth worrying about it erodes the purchasing power of your money meaning your 402k and ira are going to be worth less than you think. we need higher rates to stave off inflation but that makes it harerd to borrow money and staves off the economy when the economy gets too hot we have mechanisms in place that will cause to it cool back down. that's where you could get hurt. the best way to take a measure of the economy is the non-farm payroll report the numbers were soft in april both in terms of job creation and wage gauge they remained meager here's the thing while stagnant wages stink for the vast majority of americans who work for a living they are good for the economy the latest tepid employment report is the umbrella that allowed the rally to go on it gave us reason to believe that the fed won't need to

tighten too aggressively we want them to slow the sprinting economy back to a jog but if they do it too hard we know the economy will be thrown right through the windshield but at the last employment number was weak then what am i worried about? okay, this morning we got jobless claims data. the four week moving average of these numbers fell by 2,750 to a little over 21,000 that's the lowest jobless claim figure since december 1969 when we had 120 million fewer people in this country back then, inflation ran incredibly hot, much hotter than now. our government had more of a guns and butter approach in 199 meaning we spent fortunes to finance the wars in vietnam and the war on poverty

in the last few days we heard from retailers, walmart, home depot and jcpenney and they said april was an out liar and the bad retail weather ended with may, where it accelerated. the ceo of children's place explained our ability to sell seasonal product in the first quarter was hampered by a record number of winter storms and unseasonably cold temperatures that persisted across our major markets. she continued when the weather improved across the country in the 13th week of the quarter our sales turned aggressively positive the strong sales moment up continued and year to date we are running a positive 24% 24% comp that's insane. but totally dove tails with what we are hearing from other retailers. april is an out liar, may is real strong. too strong then there is an indicator i like more than any other coded recycle board. meaning corrugated the stuff

that your am prime packages are made out of. remember it comes in that box? this is what i'm talk talking about. they are trying to put through a $50 a ton price increase for the kmoodty. the second so far this year. what makes this telling my late father sold liner board for a living and knew when the prices were coming. when we got one after another after another like we did in 1987 it was a fabulous indicator the economy was out of control it was too hot this gauge is never wrong. we get a bunch of hikes for coded recycled board and they stick. in other words the customers accept it the fed will likely need to get more aggressive. i would advise them to get more aggressive lumber tripled since 250 2015. pushed higher by the nafta talks or lack thereof. lumber is raising prizes a dearth of new homes is being built largely because of zoning.

they want to pass on the higher raw costs to customers then there is oil. we know the price of crude can fluctuate. but it isn't fluctuating here at all. it's going straight up that's a big deal. oil is playing havoc in the economic food chain because so many products are made with a carbon feed stock. gasoline is less of an issue and we give oil a pass when it comes to inflation but when it crosses $70 in the u.s. and approaches $80 over seas it simply can't be ignored as is the cost of freight. finally we have to consider if u.s. puts big tariffs on china they will act as de facto price increases across the board for lots of household items. the inflation will be palpable today the president had harsh words on china the kind of words you don't utter unless you are very far apart in your conversations. it discouraging and the stock market took a hit when president trump gave the media a heads up

that china has gotten away with way too much calling them and i quote very spoiled on trade. why not run for the hills? right, with that set of facts why don't you exist exit who wants to risk being in the stock market when we might be on the verge of serious inflation first it doesn't have to end badly. the fed can raise rates and the economy can slow down quickly. secondly there are other forces at work, the delegatized economy. if the fed takes the amazon factor to use the shorthand basically, right, the amazon packer into account then these worries will prove to be overblown. the internet is constantly displacing people. there is no shortage of workers in major portions of the country. the digital deflation matters. it's time for me to say it is time for you to raise a ton of cash still the of the bo om line is this economy is starting to play too hard and we don't want my mother's admonition to become a

reality. may has been very strong so far. as it goes down we will begin to forget about what that last weak employment number and start to focus on a stronger one in the future that's not something to be happy about in this environment where good news is most decidedly bad news when it comes to the fed and much of the stock market let's go to ran in illinois. >> caller: by question is regarding kbarcallies with a 5% stake branson has taken and him requesting a shutdown of the investment bank and the whistle whoer issue where he tried to hunt down somebody that sent a letter regarding hiring practices, what is your take on that >> frankly, i do not think you need to own barclays it's okay. we have got jp morgan stock which is just terrific doing absolutely nothing why not buy that one go down the food chain that's what i would do lou in michigan.

>> caller: booyah from beautiful salt-free michigan >> all right. >> caller: thank you for sticking with us home gamers my stock is hundredywell it is down $20 since march in the duldrums, is this a buying opportunity or should we keep it in the penalty box >> yes, yes, as i told members who are club members absolutely steve tuesdaya from jp morgan had an amazing piece out talking about honeywell being an e-commerce play. it is extraordinarily good i think you should pull the trig, right here john in florida. >> caller: hi jim, it is a pleasure talking to you. >> same. >> caller: my brother is a 20 year navy veteran and happens to work as a crane operator for huntington i think goelz hii in virginia we have been investing together in that company for a couple of years. it is a big part of his 401k and doing real well. on may 3rd the stock took a huge

dive 8% in one day it missed analysts expectations. it went down to 207. rebounded to '02220. my brother thinks it's because of growing pains what are your thoughts >> i agree with your brother one of my favorite analysts over at citi, he recommended it after that decline, said you should pick some up buy, buy, buy, i'm with him and with your brother. and tell him thank you for serving. derek in pennsylvania. >> caller: jim, thanks for all you do i watch you every night. >> thank you. >> caller: my question is about herbal life. i bought it before the split on monday acan purchased 1.1 million on wednesday. it went down today should i buy more on if pullback. >> the problem is it's up more than 50% for the year so i am not going to advise that you

come in and start buying it. let it come in at -- honestly, i think it could come in at below 50 i wouldn't touch it until enthis all right, this market is playing too hard parts of it are so hot that you don't want to get burned as this month goes on, i think it will continue getting stronger and that's not necessarily good news for the stock market even though it could be good news for people who want to keep their jobs. on "mad money" today three companies saw their stocks slammed after their roar are they built on strong foundations? >> i'm browsing the ailes. cannabis america has applied to become the first pot producer to list on the new york stock exchange i sit down with the ceo. and declines in home goods and consumer package place are brutal are they justified in this environment? stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on wait toer have a question.

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now that we've gotten through earnings season we can take our time to spot patterns think things through here's something that stood out to me. three housing related companies so saw their stocks get slammed after they reported. massco, owens corning the maker of insulation, pink panther and composites and stanley black and decker, the tool maker all performed poorly this quarter. these are three companies whose wears you can find on the shelves of home depot but they had a rough quarter because of the unseasonably wacold weather all these stocks were in great shape last year. from election day to the end of 2016 they climbed 44% and ownens corning was up 90%

all three ran out of steam earlier this year. and since then they have been slammed. n massco, and stanley black and decker is off 90% over the same period that's bear market territory ouch so why exactly have these stocks been so punished why were their quarters poorly received by wall street? what is causing the weakness here first i want to go back to early january where jp morgan made aest prescient call downgrading massco they said the company had a lot going for it with tax reform and an internal turnaround story they believed most of the positives were already baked into the stock price i think jp morgan nailed this call in truth, the same argument could have been made about stanley and owens corning too.

they had all three run dramatically and the good news seemed to be baked into their stocks in other words they were suffering from what we call great expectations that a dickensian ailment. when there is a lot of good news baked into your share price it is not enough to meet wall street estimates you need to blow away the numbers or your stock will get punished high hopes are easily dashed massco needed to give investors something new to be excited about. same for owens corning and stanley black and decker when they started reporting we got a series of quarters that were good but not great. stanley black and decker delivered a straightforward top and bottom beat with healthy guidance but the stock lost 2% on the news. this was a couple days before the the whole market peaked. massco delivered an okay quarter but the only reason it didn't get hit is it reported right at the bottom and the city council stock had already fallen 5% going into the results

owens corning came in at the end of the day, their numbers were solid let they lost a 1% loss in only a day in other words, this is when they became battle grounds you know we don't like battlegrounds on "mad money. it's not like the weakness came out of the nowhere every time you see the ten year moving up that translates into higher mortgage rates which makes buying a house less affordable this leads to fewer home sales and that hurts the businesses that supply the homebuilders statement investors started worrying about rising commodity costs. that hurts those companies because they all manufacture stuff, and therefore they have raw materials that need to source on too much that they do a lot of business with home builders and contractors. if these guys are getting squeezed by the same rising commodity costs they are going

to have less money to spend on tools, insulation, and cabinets. excuse me. hey it is a real show. i cough, i drink water this is what happens so these three stocks mark time for most of march and april. when earnings season came around the ownist was on them to prove they could overcome the narrative we build up. what about higher commodity cost and rising mortgage rates? what happened. stanley black and decker guidance, unchanged but still solid. massco, 6% organic growth in tools and storage. if you listened to management you would have thought it was a strong quarter but the analysts focused on the shrinking margins which were being come presidented by the rising raw costs stanley black and decker merely maintained guide anz rather than raising numbers. that's not good enough in this environment. the stock lost there

8% of its value over the next two days i was blown away i like this company. since then it failed the sustain a meaningful bounce. it lies there. a few days later massco reported a straight up disappointment a top line beat. they do a lot of this in the kitchen and bath with a big fat earnings miss. five cents off a 50 cent base. analysts were unimpressed. no wonder they missed the estimates because its gross margin dropped by 200 basis points year over year. the culprit raw cost inflation i keep talking about that. no wonder the stock punched 8% in a single session. owens corning posted a moderate beat on top of a earnings miss

earnings shrank by 6% year over year inflation negatively impacted margins in all three bases owings corning also mentioned higher transportation costs. the stock quickly lost $8 or 11% of its value i have got to tell you, these have been impossible stocks. in short these quarters played out according to to the pattern i laid out at the top of the show they got too hot and then they burned up of since then wall street taking a more confusing line on these three companies. some continue the slam them but others are trying to call the bottom arguing the pullbacks are overdown where do i come down look, these stocks are definitely gotten a lot cheaper. owns corning sells for ten times

next years earnings estimates. massco sells for 13 times. stanley black and decker sells for 15 times these are all good companies with yesterday's in the so hot april housing starts number it's hard to recommend the stocks the only i would recommend here is stanley black and becker. out a fabulous company that's done well regardless of the housing cycle over the multiple years. when a stock is run dramatically like massco or owings corning or stanley black and decker it doesn't take much to derail the darn thing these are the kinds of battleground stocks i think it's best to avoid until the smoke clears and the estimates come down to levels we know can be easily beaten. let's go to scott in florida >> caller: booyah, jim >> booyah. >> caller: i want to say thank you for all your dedication and hard work. it's helping to define how i

invest. >> that's what we want we want people to be better investors. thank you so much. how can i help >> caller: the stock i'm calling about is 3m. considering it's down roughly 30% year to date and i have heard you mention a couple of times that it would be good to consider them as aco holding in your portfolio, and due to the lack of earnings they have had recently i was wondering if you still consider them as a good company to be a core oigs in your portfolio. and furthermore, do you consider them still a buy at this point. >> okay. this is really a great question. and i have got tell you, it has been a very trying time for me with 3m because we saw the ceo at the super bowl. and the stock has been horrendous since then. what we need to do is see the new ceo. i happen to think 3m is a great long term position i have always felt that way. there are people who really hate the stock of right now the bears are winning.

it is a very stuff stock 195 is the last price i bought it for the club. matt in new york. >> caller: hey buddy help me out here how come i can't find one analyst on the globe that likes ge. to he moo it is a brand-new company, totally different, delegatal manufacturing wave of the future it coins the enter northwest things, the innovation of 3d printing, health care, solar storage cells, the brilliant factories they build they are trail blazing the revolution and it's right under everyone's nose snooze the previous ceo a lot of people feel he destroyed the company. there have been mistakes mistakes mistakes mistake. i agree with you now, i think it's more of an oil play and i am on board with you i have said i think the bears have to capitulate and start recommending the stock but you have to understand, there was so much money lost here that people are just plain afraid that there are still more shoes to drop. thank you for both questions,

both very good just because the stock was once a performer doesn't mean it will always be the case massco owings cornings and black and decker are such stacks. in july, canada will be the only nation in the world where cannabis will be legal for the entire country. could consumer good packaged good companies a buy from cars to refrigerators to packaged goods, is it time to consider the company for your portfolio? i'll talk with the ceo stick with cramer.

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first u.s. listing of a pure play on the cannabis market. that's krone us group. remember i warned as had the as the marijuana market may seem right now your profits are likely to go up in smoke that's because legalization is terrible for the pot prices. it is a only expensive because it's against the law in states that legalized it the prices keep falling. now we have another different kind of company. we are talking about a canadian cannabis company that could soon be listed on a major u.s. exchange it's applied to tried on the nyse on the symbol cgc canopy is one of the leaders in the cannabis business. for now they don't do business this the u.s. because their business is illegal here at the federal level. but they are up and running in canada and they sell all over the world. and you can invest in the stock without breaking the law question is, should you. >> on the one hand i'm suspectcal but on the other hand

i'm a believer in constellation of brands. they seem to believe this this country. let's talk with the cofounder and chairman of canopy growth. welcome to "mad money. good to see you. >> thank you >> how are you >> awesome. >> first of all, thank you for coming on the show you ran a straightforward consumer package goods company that's how i look at it just like any other is that what attracted ron sams to it. >> i think we shared a vision. consumer chase are who drive both of us if their preference is for san business then how do we drive to it additionally i have a big medical division so it is a bit more diversified. >> it is true from work that i have done that alcohol use does drop dramatically where cannabis is legal. >> you know it is early in canada to say that because we are just going from medical to recreational in september. i think the big driver will be imagine working with constellation and creating a set of beverages, rather than being

driven by calories and alcohol you could deliver euphoria, pleasantan and no extra calories. >> i'm glad you mentioned this i think in many ways that's going to be a fabulous market. in many ways, you look, it doesn't cause the calories of beer or regular soda. >> you think about it, if you can knock the calories out, reduce the drug on drug interaction so you can get to the demographic who got heavier, they are probably taking a pill for pressure or whatever and now we are fitting into their weekend regime. >> let's talk about the societal issues here. our country -- i'm going to be my daughter who is from oregon and works in the mental health field with troubled youth. they would love if there is a -- there is a belief in that field that i think i have come around to, that the country has actually encouraged opioids until recently if it had been like the same in

philadelphia where it could have been cannabis then there wouldn't be so many kids they would have to treat. >> the notion of swapping is one thing of educating is another. if you get used to buying cannabis from one guy, true black market are you getting accustomed to buying other thing from him san business is a disrupter to the opioid guys and also to sleep aids there is a bunch of places it will disrupt it can because it has been kept way back in science. in canada we have patients in a medical program so we can file and make different products. >> you are in germany, too >> right. >> how is the reaccepting. >> it is socialized medicine if you go to the doctor, what the doctor can say is i will prescribe cannabis and you gtd to the pharmacy and pick it up 75% of the time the federal government pays for it you can imagine there is a

chance that it could catch on. >> when my mom was dying of cancer in her 50s the doctor said you have got to get her pot. i said i don't know anything about that market. that was in the '80s that he did that. >> part of that -- i'm sorry for your mom when we think about what we can do better. when you are going through an oncology treatment -- it is a one thing to manage the oncology treatment. if you can leave the hospital feeling hungry and through these periods of when you would otherwise have been nauseous have an appetite -- those are the scientific possibilities we are looking at we start with dogs and move our way up. >> dogs have a lot of pain and we don't know what to do about it >> connect vets hand out bucket of opioids. there is a way to deal with the big dog in the last year of its life that we think is a smart way, a san business tlugs. it will have thc but it may make the dog more mobile, less

anxious and more hungry. that's a good dog. >> i was going to ask about thc versus cbd you can get either there are a lot of people that believe hemp oil is kind of legal but they are afraid. what is your line on pure cbd versus thc. >> we have both. if you come into kanka you can get pure cbd they use it for trmors and managing that. >> sure. >> now we are taking that as the way we set up our clinical trials i come back in year, wouldn't it be better i can tell you the indication i got a response to, the dosage and the delivery mechanism? we are focused on following it through. calling it melissa lee marge without doing the medical trials isn't really fair. but to exclude it as an option is foolish that's where we jump in. >> one last question i think people need to know this, there is a belief among very good doctors that the kind of pot that is currently on the medicinal in a lot of states is

not regulated enough yours is to specification? >> mine meets not just the canadian standards, we are also expected by the emjan pharmaceutical standards a gel cap, an oil, to the same standard if you start with a rigorous regulation, you are coming from the ungro up with quality. >> if you want to invest in this group it is going to be most likely that you should use canopy growth corporation. it is a real company with real researches and a great investor. that's the founder, chairman and ceo of canopy. look for it. back after the he can bra. ♪ blah

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they are all off 20% the strongest p.m.ers among the majors in each sector are pathetic coca-cola down 8% pute down 8% estai laweder bucked the trend how? simple it's not considered a consumer package goods company anymore. it is viewed as a prestige brand. those are typically the problems of overseas fashion companies that tend to be highly valued like lvmh, a category unto itself there is anything that can change the negative

trajectories with the home buildings it is unclear. they continue to put up the numbers. it is not like they are missing forecasts n. fact margins are unusually strong for this point in the business cycle. oh, there is the magical cursed word cycle. no institution wants to buck the business cycle if you buy a home building stock and we actually get a big shortfall, you have to expect that stock will lose another 10% in a single session if not more. there is no yield protection to speak of here. there is no consolidation win coming not that i can tell there is no savior until interest rates overshoot and come back down that's going to be a long time in coming. long story short, investors are afraid of the home builders. that's all she wrote yeah it doesn't married how good they are or how good even one of them is consumers goods face different challenges raw costs.

tastes are changing. companies dent generate organic growth that's appealing versus what you can get by owning stocks more levered to a robust economy. the power shifted to the producers not the assumers unlike the homebuilders though at least they have some yield protection these consumer product stocks seem to stop thawing when their yields go to 4%. at that price speculators say these are overdone if i hole on long enough either the economy will slow and rates will stop climbing and rate costs will slow that's how i feel about pepsico right now, though, i worry that the results here don't really matter as the group is simply out of pave with the wall street fashion show they are what i used to call at my old fund down stocks. they are down stocks i would say that they don't how to go up they are down stocks

it's nothing new for the housing stocks but the packaged goods, i have seen them slip, you know, let's say they got clobbered in the spring of '8 when money you had poured out of them and into the cyclecals. but it wasn't this bad this is new bad. normally i am enticed when i see such large declines. the management are good, the brands are excellent but brand loyalty is eroding advertising isn't working as well as it used to and millennials don't do what their parents did. put it all and it spells a degree of difficulty that makes these stocks too hard to own until rates stabilize or raw costs plummet or they get to a 4% yield and most of them don't have what it takes right now to make that kind of stand. for now be select if you want to own one of these sticking with those that have yield protection no matter, what you need to know there are a lot easier ways to make money stick with cramer.

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when it's over, are you ready? starting with craig in new york. >> caller: altaba. >> that's the stub of yahoo. it's been a terrific one i like it. how about the bowzod know in new york. >> caller: how are you doing i'm calling about lloyd banks. lyg. >> it's he can to. it is a $3 stock everybody likes a $3 stock i refer jp morgan. $113:. michael in california. >> caller: jim, how are you doing? i am a beginning listener, getting into all this stuff. i'm currently a nursing student here at pcc. my question is about vistra energy i'm at a 71% profit. when should i get out. >> sell half right here and we are going to let the rest ride

congratulations. that's a good situation. eric in maryland >> caller: jim, how is it going? i'm calling about hear, turtle beach, corp. >> i see this stock traiting underneath our ticker every single day it trades like water i have to do work on this thing. this was worth nothing and now it's up by 800%. i cannot opine without doing more work. let's go the john in florida. >> caller: hi jim, john k. in florida. >> how have you been. >> caller: great always great talking to you. >> thanks. >> caller: rapt to the supreme court ruling regarding gaming what do you think of igt >> when i see this everybody kind of knows already that it's great. so i can't recommend it because it already happened. there is no catalyst for me. everyone has decided it's already good need more people to come in to

take you out i don't see it happy happening let's go to chris in florida >> caller: jim, thank for all your help navigating this market love your confessions of a street addict. it was a great read. >> thank you it still sells lot i got a nice royalty check >> caller: my wife and i have a ten to 15 year time horizon. we own regents financial we sold half last year for a nice profit. it seems to be spinning its wheels now, should we hold on? >> yes, it is a great bank and it has had a big run it's consolidating the run and i think it will go higher as the fed keeps raising rates. you got a good one congratulations. dave in maryland. >> caller: yes >> go ahead david. >> caller: jim, thank you for all your wisdom that you give to us. >> you are quite welcome. >> caller: my stock is cool. >> the stock is hard to be able

to attain. the stock has had a big run. i say kaching, kaching geo6:in pennsylvania. >> caller: you are the shock jock of stock. and i watched since day one. my favorite segment is when you eulogized your father, pop, and including your discussion to confront the no name insurance company to make them do the right thing. thank you. >> thank you, yes, i did thank you. >> caller: jim, my stock you have recommended many times. lately it's wandering, drifting lower. i'm concerned technically. is banko santander still a buy. >> europe is a terrible place to invest right now. i we are fine. not great, not bad thank you for the fine comments about pop. that, ladies and gentlemen, the

conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.

what do you do with the commodity chemical company in an environment where people are worried about global trade especially today when the president was i would say trashing china. in the beginning of march i recommended trinsio, a philadelphia based maker of plastic products, synthetic

rubber, late ex, binders and polystyrene and polyette leechblt this is the kind of company that thrives in a strong economy. but i didn't see the president's trade dispute with china coming. i think that hurt the stock. they get 20% of its sales from the people's republic. i have to wonder whether it's been punished too much mainly because they reported a good quarter two weeks ago it turns out business is good and the stock has been bouncing ever since i wouldn't besurprised it had more room to run let's check in with the president and ceo of trinsio and find out more about how his company is doing and where it's headed welcome. have seat. >> good to be here. >> we were talking at the top of the show there are companies diagnose incredibly well but there is worries about a slowdown because of rates going up and worries about chinese trade. trinsio fits that, doesn't it? >> we had a record quarter and

we have gave guidance in our earnings call that we would have earnings of $9.06 would be another record, three years in a row. we see the economy quite good around the world we don't see anything changing >> do you have to check every tweet and worry about what the president's meetings today with -- secretary mnuchin involved these things married for you. >> we have business in china i think this might be the focus. but our business in china is local. we make product there and sell product there. we are not impacted by the trade issues that may or may not come out of whatever comes out of that that's true around the world almost everything we make locally and we sell it there our products doesn't move around the world that much. >> it's important for people to know you make pelts, you make a form you are not making the appliance plastic. you are not making the graphical paper. you are supplying.

>> we supply either a liquid polymer or a pellet polymer that people make a part out of. a refrigerator liner or a tire. that's growing 7% a year. >> who uses high performance tires. >> today 50% of the tires on the road moved over a period of eight years to a high performance tires. they get better gas mileage roll better and raise the efficiency of a car. >> it turns out today based on the call we had a couple of week ago we guided to $675 million of ebitda 480 of that is what we would call not kmod advertised the rest s. it is subject to supply/demand dynamics. >> dow, dupont is levered to the

price of oil goes up when oil goes up what is your relation to feed stock? that dow is a myth >> oil up, oil down, on our kmod advertised side of the business, 25% or so% of the earnings, the driver of profitability there is operating rate the operating rate of the commodity, styrene monomer drives profits not the price of oil on the other side generally we pass through feed stock. if we make a pellet for a synthetic sire we pass the commodity fluctuations through and we have fixed margin we have contracts that take the price of the inputs and add a margin to out. if the price dose up, the margin stays the same and vice versa. >> ppg is being squeezed they are producing paint that goes to a home depot you are not producing anything like that that's going to get

squeezed. >> well, as i said, our customers generally we have contracts that say to them, if the raw material goes up, our margin stays the same but the price moves up according to the raw material and if it questions down for our business, for our customers, that's turned out to be a good holiday. >> how about capacity utilization. what if ib says trinsio is making a killing, i want to make what they make that could be an issue. >> particularly in styrene monomer. their capacity coming in china in that commodity. as we said in our earnings call a couple weeks ago we looked at that and we believe the operating rates for that commodity are going to stay about where they have been over the last two or three years even in the forward two or three years. we tone see that new capacity as having a big impact on that dynamic. >> one last question, there will be a certain point when you are spewing cash if this continues and people continue to think that trinsio is going to get hurt when it won't, what will

you do with that cash? >> we have had a good balance. we returned $430 million to shareholders since we went public in june of 2014 we have been good about returning cash shareholders, dividend have increased. share buy backs and we have been investing in growth in the specialty oriented products. >> that's exactly what we want chris pap as is president and ceo of trinsio we recommend it. we didn't see the trade war coming but there is more to this story than that. "mad money" is back after the break.

technology stocks getting hard here. applied materials, after the bell reports that orders are not as robust as a lot of people thought. that's going to put pressure on the group. also put pressure on lamb research what an interesting spin over what we had just yesterday i always say there's a bull market somewhere i promise to find it right here for you on "mad money. i'm jim cramer i will see you tomorro

>> 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." ♪ who set out to solve a problem she faced as a mom. ♪ hi. i'm ginelle. i am the owner of cool wazoo. i'm here seeking $65,000 in exchange for 25% equity in my company. when my daughter was younger, she was burned on a park swing.