wins >> that's right. >> final trade for the winner. >> this weekend, a party tonight and constellation brands, giddy up >> party too much and you will need staples. >> dan >> iwn double top seller. >>cf1 o thanks for watching. "mad money" 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 madonna welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job is not just to entertain, but to teach and educate so call me at 1-800-743-cnbc or tweet me @jimcramer. with earnings season kicking off today, the dow gained 142, nasdaq inched up .04%.

i think it's time for a primer, a primer on what makes stocks go higher to put it simply, if you want your stock to go up, you need to beat the expectations. in practice, it's a little more complicated than that, so let me give you an iconic example let me give you pepsico. a household name that also happened to be the biggest winner in the standard & poor 500 today, up nearly 5%. pepsico's ingenuity has taken a company that seemed ill suited to the new era of health and wellness and transformed it into a great tasting, good for you and better for you option, representing half of their merchandise. that combination has consistently put pepsico at the top of the consumer packaged goods heap you may remember, you actually probably forgot, but initially i was a skeptic.

i once said on air i held a sleepover for my daughter's swim team, and they didn't bother to eat the doritos that i bought for them i wasn't long before i heard from the company telling me about all the new snack brands they invented that the kids would have loved because they're natural and healthy, or at least healthier than doritos i just hadn't done enough homework in short, they reeducated me a decade ago since then i've been astonished at the frito-lay, oj and water, and how much they meant to its bottom line. for years now i've been a card carrying member of the pepsico party. however, lately whole consumer package goods group has been under tremendous pressure. you've got rising competition from ultra competitive smaller players. you've got escalating raw costs. you have the changing tastes of millennials and aversion to the center of the supermarket. for ages, pepsico managed to remain above the fray, earnings beat after earnings beat which propelled the stock ever higher. recently, even pepsico has

fallen victim to the malaise they whiffed on a couple quarters and saw the stock plummet to 96 bucks. that's when the so-called analyst community actually started turning on the company i say so-called because this noise circumstances discordant group is more like a pack of jackals than anything resembling community when they perceive a long-term downtrend unfolding. still, going the latest quarter the stock had rallied back all the way to 109, and that's where some of the analyst, without naming names, decided to jump ship and started squawking about potential disappointments and shortfalls we began to hear that gatorade, wow, the growth engine had suddenly started slipping badly. then we got grumbling costs -- calls that the costs had escalated. aluminum tariffs were going to hit pepsico. think about all those cans escalating gasoline prices would slam them, as would the rising wages of truck drivers needed to take the company's product to stores on top of that, we started hearing a rejuvenated coca-cola,

a company that had gotten more creative and aggressive in taking shelf space and market share of late. we know coca-cola and pepsico have fought each other endlessly in the soda aisle. in recent years, though, a relative truce has broken out, allowing both companies to make more money than expected that ended when james quincy took the helm of coca-cola and went after pepsi with all they had. that gave coca-cola's stock, ko, or knockout as we call it, a technical knockout of sorts and it looked like pepsico was down for count. it didn't matter that pep said it would turn on the advertising jets, start to grow the business, take back market shares the analyst had lost faith they considered the company a goner. the negativity reached a crescendo in the past days when we heard the dreaded prediction of a short faull and started to punch back to the 9 level where it had previously bottomed some of the best analysts went out of their way to distance themselves like the one who put out we're not feeling so bubbly

about pep's qt, too cute fundamentals with the same spelling as the drink bubbly that kind of passes for what is analyst humor. hmm. hooha. this morning pepsico reported an absolute stunner of a blowout. it crushed the numbers organic growth, 2.6% instead of the 2.2% people expected the company earned a buck 61 the street was looking for a buck 53. sometimes there is one-time earnings, gains, other times the company may have benefitted from an unforeseen tax break or currency fluctuations. it was simply better than expected how did pepsico do it? well, first frito-lay really shot the lights out with a 5% core growth, the equivalent of a 500 foot drive that broke the actual lights as it soared out of the stadium gatorade, it didn't need any aid. the introduction of gatorade zero proved astonishing results.

how good as a the incredibly now promotional exclaimed and i quote, i hate to use the word flying off the shelves, but it's doing exceedingly well international gave you the growth you would expect only from a turbocharged small cap company. frito-lay chips were almost as hot as the chips from semiconductor nvidia, yeah, the one i named my dog after the raw costs easily the rival of coca-cola, just like i told you. pepsico upped its spending and reclaiming market share and growth she maniacally focused on returns from the ad spending best of all, they had attracted a raftd of short sellers, people betting they could cash in on an instant decline. instead they heard the two words short sellers fear most, sequential improvement, as each month was better than the previous one during the quarter, and the improvements continued into this new quarter which is benefitting from a heatwave. in other words, the analysts need to raise their estimates given that the company's trajectory is getting better and

better and better. or as i would like to see some of these jocular analysts right write tomorrow, i bet you can't eat just one oops, no i bet you can't beat just one as i think pepsico now beats quarter after quarter after quarter for the rest of the year andrew newey has built a company that is meant to last with commitment to sustainable progress i want to quote it i think it's why they're getting such strong, great people. and i quote, looking ahead, we will continue viewing our work through both a microscope and a telescope, focusing on the most granular details, grams of saturated fat, parts per billion of greenhouse gas, the number of women in management roles as well as the larger ambition of building a business that acts in accordance with our values each of us striving to do what is right for the company and what is right for communities, because at the end of the day, there is no separating the two she's true to her word, although there is one community that has

been left behind, the analyst community. part of which is now in tatters after they called for a shortfall, instead got these blockbuster better than expected numbers. here's the bottom line when you go into a quarter with great expectations, they can prove a dickensian tale of woe but with lousy expectations, a well run company like pepsico can deliver a good quarter that produces gigantic gains. the biggest in seven years with a worthy coda. congratulations, indra, on a fabulous quarter let's go to chad in missouri chad >> caller: jim, how it goes? >> real good how about you? >> caller: not too bad i have a question. automotive stock is at an all-time high. they have 151 locations. they're growing. they had a revenue of 9 billion for 2017 they also just expanded into the northeast when they acquired bond automotive. amazon does not seem to be slowing the rally down because

amazon can't deliver same-day parts, nor do they offer labor reimbursement for failed parts to professional customers. is now a good time to buy the stock? >> i think it's had a major move i'd prefer you to be in autozone where the last quarter was strong and it's pretty much undervalued. o'reilly had a magnificent run real good call joel in massachusetts, joel? >> caller: jim, thank you for your insight and fashion -- tyson. their stock has been horrible for the last six months. i grew up in the meat packing industry, and there is no better run poultry company than tyson or their pork division they're the best in class. what's going on? >> all right, well, look if people view it as a commodity. the last quarter was not that great. look, i totally agree with you, joel we are in a market that is gripped by short-term concerns, but that last quarter, even by their own admission, tyson just failed to deliver. and there are so many others that are in good shape that i cannot recommend that stock.

let's go to puja in illinois >> caller: hi, jim thank you for a taking my call. >> quite welcome. >> caller: i've been reading your book, "getting rich carefully" and trying to put those rules into practice. my question is around accenture, acn. it has a great balance sheet and great earnings at a 52-week why i want to know is it the right time to invest in this given boast microand macro factors >> pooja, i think the long-term situation is terrific. i would buy half now the last four quarters the stock sold off almost immediately after reporting, gave you the best opportunity i'd put some on now and then i'd wait, although you'll have to wait a few months because it just reported. wall street is all about expectations, and pepsico, the company crushed it on "mad money" tonight, could it be ready to turn investors frowns upside down i'm going off the charts to find

out if it's ready to break out i always say i have the smartest audience in television thanks to a fellow cramerican. a company up 30% over the past year you don't want to miss it. and oil prices are surging, but just how high can they go? i'm sitting with the ceo of core labs who is making a bold call so stick with cramer don't miss a second of "mad money. follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an e-mail to madmoney.cnbc.com, or give us a call at 1-800-743-cnbc miss something head to "mad money".cnbc.com

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♪ how can you tell when a long suffering dog -- [ barking -- of a stock might at long last be ready to bottom that's the question we need to ask about allergan, agn, the once fav cramer company that

spent the last three years getting pulverized allergan is a medical business, think botox and a host of other products that can make you seem younger and better looking along with a host of medicines for eye care, skin care and the central nervous system but the stock has been a terrible performer a little candor here, not that the rest of the show isn't candid, but really, listen to this we wrote allergan down for my charitable trust before finally giving up on it. just too hard. too many problems. not enough catalysts to offset all the negatives. we took a big loss what can i say you have to own your losses, right? you got to own up to them on the show if you're going to talk about your gains but even if i'm wary about the fundamentals, it turns out the technicals may be telling a different story. that's why tonight we're going off the charts with the help of tim collins, a brilliant technician and my colleague at real money.com to get an idea where the stock may be headed, even if it's painful for me to

even think about this stock on the show >> the house of pain >> first of all, let's be clear. in the last two months, this stock is starting to rebound and rebounding like crazy. up a quick 33 points from the low. according to colleagues, allergan needed just a little time to iron the wrinkles out, a botox injection. or another way, this situation where beauty is in the eye of the beholder, and as far as collins is concerned, the charts are starting to look downright pretty at the very least, he thinks they're showing some bullish signs that might eventually result in a nonhideous picture, quite a change so let's start with allergan's weekly chart, okay as brutal as this decline looks, with allergan's stock plunging from the 250s last summer down to 142 earlier in the spring, you're only looking at the latest leg of the downturn in truth, allergan has been a total house of pain, an apartment pain since 2015 when it was trading in the 330s near its peak i'm not tall enough anymore to

reach where it would have been but collins notes 2018 has delivered a different kind of pattern here so far this year what we've seen is allergan stock is having a wedge formation within a wedge formation, a new term for us kind of unusual. but here what's this double wedge means. that's the wedge and the bigger wedge. while allergan's had consistent support in the 140s to the 150s, the resistance has changed the stock broke out above the upper end of the smaller wedge right here, okay that was last month. and now it's broken out above the larger wedge too that's right here. that's key for him in short, allergan has burst through not one, but two ceilings of resistance, and collins thinks that changes the gain from these levels he believes allergan is a clear path peyer hire for at least the next ten points so we could get to 186 without much difficulty. there is one at 174, okay. just a couple bucks below where the stock, and one at 162, and then the third one is at 155 at the same time, collins only

sees one ceiling of resistance possibly holding us back, the 2018 high in the mid 180s, okay. and once that ceiling is breached, we could have smooth sailing right into the 200s. what else? allergan just made what technicians call a bullish crossover, okay. and that's where the ten-week moving average, see, 10, ten-week moving average moves above -- well, anyway, here it is the blue line gets crossed by the red line is the easiest way. this kind of crossover is often a sign that a stock is ready to run. or check out the full sto indicator at the bottom. it's a momentum indicator that helps us gauge when a stock is overbought or oversold in recent months the indicator started hitting new high after new high, even before the stock began to rally it was nice premonition there. you even got an inverse head and shoulders. that's within the which was swiftly followed by a big move higher collins says this could

potentially propel the stock much higher from here, although it's important to note that the stock is very close to reaching overbought overbought would be right here put it all together, and he believes that there is a real chance that allergan could make a return to the 200s in the next six to eight months. worst case scenario, collins says it's headed back to the 160s put this in perspective. we need to take a closer look at allergan's daily charts. again, a bullish moving average crossover. you can see that that's the blue crossing over the red. on top of that, the stock has also made a cup and handle pattern. that's this right here, which looks a little like a little cup shaped bottom next to a handle where the stock trades sideways for a period bizarrely, this time the handle came before the cup. it's usually the other way around as collins sees it, the short-term, we can't expect much more than allergan than a move to 185 because the recent run has been pretty much straight up still, he thinks we have a floor of support here at 168 from the backwards cup and handle this is a very reliable pattern for up stock

now take a look at the bottom of the chart. we've got a new tool that we've never talked about on the show it's called the shawn day trend meter. this is a momentum gauge that combines multiple different indicators, the bands, the relative strength index, osri, price changes and standard deviations across six time frames it puts all the stuff in a single score for the sake of simplicity according to the meter, allergan is exhibiting a kind of strength we haven't seen since the stock was trading in the $200 level. that's a major change of character compared to the bearish action of the last year that befuddled me. this is something collins wants to see when he is looking for proof of a trend reversal. so the charts are telling us that allergan may have finally bottomed here that the risk to reward, just to be clear, from all of this, is 10 down and 25 up and that is just a dream here's the thing i think we need to be skeptical, because this is a situation where i think the charts may

skew the fundamentals. a lot of people have been burned, including yours truly. i'm concerned that it's got real risks as we get close to major patent expirations recent guests advanced therapeutics is working on a challenger to botox. and allergan lost a case for restasis i know they got a ton of potential products in the pipeline, especially a very exciting migraine pill but these patent expirations are a huge problem for drug companies. just look at celgene it's been put through the meat grinder because of upcoming patent issues with its number one drug remember, years ago allergan was supposed to be sold to pfizer at much higher levels that fell apart. this stock has been one disappointment after another for years. i don't want you to get your hopes up i like him a ton, pulling him. but the show is about making money, not about making friends. bottom line, the charlotte interpreted by tim collins

suggests that allergan may be ready to roar here i think the fundamentals tell you to be a little bit skeptical. to me they're sayingyou need t be careful with this kind of challenge pharmaceutical company. but i accept that allergan stock was overe overly punished and continued to rally in the absence of any new negatives stick with cramer.

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welcome. jimmy crabtree, plus one. welcome. ♪ play just got serious in the all-new toyota avalon. ♪ fact it's a gas, but it's all right ♪ please allow me to introduce you to the hottest financial technology company you've never heard of, my old money pal friend jack daniels. i'm sorry. jack henry jack henry and associates, or jkhy last thursday we got a call about this one from carrie in the land of enchantment in new mexico while i needed to do homework, what can i say it turns out carrie has some genuine horse sense. now that i have had some time to jack up on what jack henry's

been up to lately, let me tell you something, i can safely say this stockis definitely worth owning, buy, buy, buy! >> although given its response to recent run-up, you might want to wait for a pullback before you pull the trigger so what in the world does jack henry even do? and how the heck has its stock been such a juggernaut without getting much attention okay this is a company that uses technology to help banks, to help credit unions, and other financial institutions process transactions, automate their businesses generally stay ahead of the competition by managing mission critical information originally jack henry was about making off the shelf banking software that was way back in the '70s. now they're primary technology partner for roughly 1900 banks from smaller community institutions to mid tier regional players a the same time, the company has a data processing business scimitar, which is the sim of choice for credit unions i cannot stress enough just how important this financial technology business has become the banks, big and small, they're all about fighting for

bigger piece of the pie. they're all trying to operate more efficiently, and to do that they need better software. and that's where jack henry comes in clearly, this company has been doing something right, because the stock has been near unstoppable. and generational woes in early 2009, jack henry traded below 15 bucks. now it's at $134 it's up 173% over the past five years, trouncing the 69% gain in the s&p 500 over the same period >> hallelujah! >> it's gained nearly 30% over the past 12 months, and that includes a 15% rally since the beginning of 2018. the crazy thing is the consistency of this move jack henry just keeps chugging higher and higher, with only the occasional minor dip before getting right back on track. >> buy, buy, buy >> why a lot of the strength here comes from, well, just fabulous fundamentals and i'll get to the numbers in a second but there is a second factor at play here that needs to be addressed. aside from yesterday's epic run

in the banks, money manage verse been incredibly hesitant to own actual financials of late. they're scare to have had banks. they're scared however, because so many of these funds may try to mimic the sector waiting of the s&p 500, that way you can never underperform the benchmark too badly, you have a lot of firms that need to own something financial, even if they refuse to own the banks hence, the virtual mechanical appeal of the fintechs they're grouped withthe financials because they sell to the financials they give you that much needed financial exposure without any credit risk or fed-related worries. that's definitely part of jack henry's recent strength. however, there is also the fact that it's a very well run company that happens to be firing on every single cylinder. yet jack henry's got years of consistent growth behind it. the secret to the service? jack henry spends a lot of money on research and development. from 2012 through last year, the company shelled out anywhere

from 10 to 14% of its nonhardware revenue. that's a staggering figure, and that investment has picked up substantially over the past couple years it's crucial when you're a tech company, even fintech, you need to keep coming up with better and better products you can't rest on your laurels it's much easier to convince potential customers to dump the potential competition and switch to your software when you have best in class technology now, it's clear that all this spending is definitely paying off. look at the latest quarter when jack henry reported in early may, it delivered a magnificent 7 cent earnings beat off of an 86 cent basis with higher than expected revenue the company posted 8.7% sales growth, accelerated revenue growth because the last had been.5% and 4.3% in the unbefore that wow! along with 28% earnings growth what's driving these numbers jack henry's payment division was on fire. sales up 12% thanks to last year's acquisition of incenta.

you know how much we love the cloud. they're a complimentary business that includes a host of technologies that helps small banks go digital that was up 11%. scimitar, the data processing division, had a ton of new signups. you put it all together, and this thing you've never heard of, jack henry is taking market share all over the place, especially with small banks and credit unions that are eagerly upgrading their technology in order to remain relevant you know what? i've been thinking about this. i think also that trump has helped look, trump's administration's got very laissez faire approach to financial regulation. that makes it much easier for smaller banks to justify spending money on better software at the same time, many of these banks are increasingly outsourcing parts of the business that jack henry is happy to help them with, save a lot of money management told us their next quarter, i quote, has started out very well with the sales teams looking on track to. >> seed targets. when they held their analyst meeting on may 7th, the company introduced very rough guidance for 2019 that included better than expected revenue growth

forecast there are two things going on here. you got a clear pickup in jack henry's core business, hence the accelerated revenue growth or arg as we call it. at the same time the company has quietly become more profitable as they upsell existing customer into all sorts of new products last year jack henry partnered with first data. that company is doing very well, big payments company, to create a new credit and debit card processing service as of this morning, they brought 66 existing clients on to their system this is basically a business they created out of whole cloth. i think it bodes well for their future it's not just the business is good it's also that jack henry, the stock, is safe you don't need to worry about trade disputes, right? china, europe means nothing. it's a nice u.s.-focused financial technology stock a nonbank financial that gives money matters the sector they need without any interest rate risks. you know, i've been thinking about this ever since she

called it's almost as if the stock of jack henry was created for this very moment. so it's a stock worth buying among my concerns here, expensive. it trades at 33 times next year's earnings. that's almost double the average stock. although the evaluation is a bit less daunting a few years. still, i think it deserves that premium multiple i like the company i like the stock although of course i'd like to buy it on weakness bottom line, jack henry is a high quality financial technology company, and i think it's absolutely worth owning so when you don't believe the bank stocks are going to come back any time soon, that's the one thing that i know could absolutely derail the story. if the banks get their groove back and money managers start selling the fintechs in order to swap into the real financials, ooh that could be trouble. i believe in jack henry's long-term prospects, you might want to hold off buying this one until friday when we start getting the big bank earnings reports.

if they disappointment -- [ crying ] -- then jack henry's your man. tony in massachusetts, tony? tony hold it. i'm thinking about sheri in maryland, sheri! sheri? >> caller: hi, jim i'm from annapolis, maryland how you doing? >> i'm doing well. thank you for asking what's going on? >> caller: well, i want to say boo-yah from indianapolis maryland, home of the united states naval academy my question is about lending tree, ticker tree. >> of course we know it well because doug has been on the show many times, the ceo how can ihelp? >> caller: yeah, well, i saw back in 2016 and i took a position in the stock around the 70 to $80 price range. and then earlier this year, the stock hit a high of 404. >> right, nice. >> caller: over the past few months the price has been cut in half, around the 220 range

my question is with interest rates on the rise, should i buy more, sell or hold >> you've got a great gain at least take out your cost basis. but this is a stock that deeply trades on mortgages, even though it shouldn't i'm on every bank call, every housing call things are still good, but it doesn't matter this stock is in the grips of higher mortgage rates. so i think you ought to take your gain. let's go to frank in indiana frank? >> caller: jim, boo-yah, first of all how you, my friend >> i am doing well how about you, sir >> caller: not too bad quick question for you i've had blackrock stock for the past 10, 11 years. i've noticed here in the past little bit that the stock's fluctuating quite a bit. should i stay in or get out? >> oh, boy, i tell you, i would buy more >> buy, buy, buy >> i think they're doing a remarkable job in the passive investment thing larry is pretty much a certifiable genius and i got to tell you, the stock isn't really that expensive. it sells at an average market multiple i think that's insane. even if you're not banking on the banks, you can believe in

the fintechs, okay not the fins, but the fin text more specifically, jack henry. that's if you want to jack up your portfolio and thank you so much to our viewers. wow are they smart now more "mad money" ahead drill, baby, drill i'm cutting to the core of the energy market. my exclusive with core labs. you don't want to miss what he said about black gold. it was the talk of the floor of the stock exchange today and then trump made his scotus pick how it could impact your money i'll review. and all your calls in rapid-fire, tonight's edition of the "lightning round." so stick with cramer ♪ introducing e*trade personalized investments professionally managed portfolios customized to help meet your financial goals.

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♪ as the price of oil keeps climbing, will big producers finally start spending boatloads of money to produce their production let's consider the case of core laboratories the technologist of the service. it helps analyze rocks and fluids in the reservoirs, showing them the best places to drill. you would think business would be giveood, given this run in ol at the end of june they announced a shortfall siting delays in the recovery of international field development activity the stock plunged 10% the next trading day. so should we be concerned?

luckily, we got to check in with david demshur. he is the chairman and ceo of core laboratories as his company celebrated its 20-year anniversary at the nyse this morning. take a look. david, first, congratulations. 20 years right here in the exchange where was the stock 20 years ago versus now >> 20 years ago today, jim, we opened at around $13 a share, and today we're at $120 a share. >> now i know your company cares more about the stock price and returning capital than anybody in the industry. how does that record stack up against the competition? >> well, if you look at other oil field service companies, in the past they didn't pay attention to things like return on invested capital, free cash flow, buying back stock. they have become better stewards of their capital, and we like to think they're following us, following in our footprints on that we're very proud of that. >> it's one of the reasons why i loved you all on "mad money" because it's easy for our

viewers to recognize it's apples to apples very other companies and other industries except for the sx >> yes well, if you look, we always measure ourselves against the osx. >> but the other guys don't care. >> yeah, but the last 13 out of 17 years, we've outperformed the osx. so that's a badge of courage that we wear proudly. >> let's talk about current conditions you came out at the end of june and talked about how there are really kind of what i regard as exceptionally -- this is my own view, not yours, shortsighted national oil companies people aren't doing what they're supposed to do with the oil in the '70s, right? >> well, that is correct and if you look at domestic activity here in the u.s., fabulous >> right. >> all of our operations here in the u.s. are doing great internationally, year-over-year, activity levels only up 1% this gives me great concern about what crude oil prices are going to do over the next couple of three years in the past, we've chatted about where crude oil prices should

be supply and demand for sure we've had a 1.5% growth in oil demand over the last three years where in the past 23 years, it's only been about 1% so right now we are seeing a big uptick in the amount of crude oil being used my fear, jim, is that when we go to later this year into next year and 2020, we see $100 plus crude oil again. >> all right i want people to understand you do production enhancement. a lot of that has been great in america. but the recovery international field development, the recovery has not occurred so you are actually in a position to talk about what happens to a well and the whole countries in terms of depletion, and if they don't start drilling, what do they have? >> if you look at some of the declining curves around the world, they are increasing if you look at mexico, peak oil production at over 3 million barrels a day. today 1.8. if you look at venezuela, again, about 3 million barrels a day. now down to about 1.4 million

barrels a day. charlotte declines in west africa. >> angola leading the pack there with nigeria as we look around the globe, you've got to ask yourselves over the couple of next three years, where is that supply going to come from we're going to have some supply come from the u.s. but if we look around the globe, it's going to be very limited. i see higher crude prices in the future for sure. >> and that's again, because there really can be no big -- the big nations, the national oil companies are who can really make a difference, particularly with deep-water drilling >> yeah. what we think we're going to see over the next couple years reinvestment back into deep water. you've got some big deposits there if you look offshore in south america, guyana, you've got exxon there that has had their eighth discovery in their bloc there you're looking at multibillions of barrels of discovery there. we'll work there for the next 20 to 30 years for exxon. >> let's talk a little bit more about what core labs does. let's say you're in the permean.

it's an old field. we thought it was tapped out, but you, your company has found a lot more oil for these companies. incrementally it does matter for their operating margins. >> absolutely right, jim if you look at the permean basin, over a million wells drilled in the permean basin the last 50 years. but now they're finding more oil. these are from the unconventional reservoirs, the shale reservoirs and we specialize in telling them the quality of the shale that they're drilling into and what's the best way to recover the maximum amount of oil from those shales a conventional field produces about 40% of its reserves naturally. a shale field right now only produces about 9% of its oil naturally. we have come up with technology that's going to increase that to maybe as much as 15% recovery. so look out over the next couple of years you're going to be hearing a lot more about enhanced oil recovery from unconventional fields in the permean basin. >> we've got a new supreme court

justice just appointed, very pro-business we have a president that is very pro-business, very pro fossil fuel has it mattered for your customers? >> i think it has. if you look at their willingness to invest in this country for developing oil and gas, i think that's been a very positive stance one of the things that you had earlier mentioned internationally, we're going to start to see money be deployed there as well. >> now i want to make this point because it's not fair to your company. despite the fact that at the end of june you talked about the national companies not producing, you're still making your numbers you never stopped putting up the numbers. you never gave us the variability of boom/bust that we got so often from oil entities. >> we're a little disappointed we would like to have higher international levels and certainly our numbers would be better, but you're right we always concentrated on making the guidance that we give to wall street and those numbers. particularly paying attention to as we started out with this

inner, return on investment capital, free cash flow and returning all of our free cash back to investors in the form of a dividend or share purchase. >> that's why we've always liked core labs. it's a real company. it's not a company that's rolling dice, trying to figure out whether to get the oil or not. >> when we listed here we had 86 million shares outstanding today we have about 44 million shares outstanding. >> wow. >> we've repurchased 42 million shares with our free cash flow and have paid a dividend, which is right now somewhere around 2% so we have been great stewards of capital. >> yes, you have. >> and returned that to our shareholders, and we've been rewarded with a very nice share price today of $120. >> excellent i want to thank david demshur, chairman and ceo of core abs congratulations again. >> thanks, jim thanks for having us on "mad money.

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it is time it's time for "lightning roun"." sell, sell, sell sell, sell, sell.

>> and are you rad skee-daddy? dennis >> caller: jim, a big boo-yah to you. >> right back at you what's going on? >> caller: thanks for taking my call and for all your advice much appreciated wondering about uscr thoughts >> look, i think he is a good man, but this the end, this stock was predicated on an infrastructure building pass and it's not to pass, and it's one long-term downtrend. i think it's too cheap, but it needs infrastructure bill. bob in arizona, bob? >> caller: hey, jim. welcome. thanks for taking my call. >> of course >> caller: from the valley of the sun. i'm looking at cracker barrel for the last two and a half years, it's kind of gone up and down in about 11 or 12 point range from its mid point where do you see it's going? >> i think it's fine i like sonic more. i like darden more i actually like mcdonald's more. i think all three are better than that. let me throw in that i also would tell you that it's been up

and down because the fundamentals went up and down. so therefore i prefer the others tony in massachusetts, tony? >> caller: hey, jim, i got paypal for you what do you think? >> come on, a remarkable job i think he is terrific >> hallelujah! >> you can buy up to 98. let's go to william in florida william? >> caller: why is gt performing so bad >> because it's got competition from overseas. it's got some raw cost problems. i got to tell you, it has been a terrible stock for decades jim in north carolina, jim >> caller: hey, how you doing, jim? >> i'm doing well. how about you? >> caller: good, thanks. i'm calling about a lithium company that's located here in charlotte. the stock is down about 25% share and it's really stuck in a narrow trading range the company is alka mar, alc. >> buy, buy, buy. >> i think it's going to be a good one let's go to dave in west virginia dave >> hey, jim, how are you >> i am doing real well.

how about you? >> caller: hey, jim, i'll ask you a question. >> sure. >> caller: csx, and i've been buying the stock for over 20 years in my 401(k) it's reallywell the last two years. roll some out and take a profit? >> no, no, dave. i think the rails are terrific csx has done well. i have to hand to it you that you've been a buyer. union pacific is buying stock backhand over fist that one works too. and congratulations. let's go to dale in texas. dale >> caller: hey, boo-yah! >> boo-yah >> caller: mistic of wall street. >> there you go. i'll take it >> caller: hey, we have erc. >> i cannot believe the omebac that that company has engineered i got to tell you i should have profiled once again, our viewers know so much that stock is an stock, and they're coming out i would have normally swapped out to cisco, but i like how they're doing. let's go to dave in kansas dave >> caller: boo-yah, jim, from

the nation's heartland and our capital city. >> you are certainly there what's up? >> caller: what's up i would like some information on geopark limited. >> you know what they got oil and they're drilling they've got oil and they're drilling and i think it's a real good situation that said, it's one more profile. a lot of people do not talk about it and it is a very good company. and that, ladies and gentlemen, the conclusion of the "lightning round" [ buzzer ] >> the "lightning round" is sponsored by td ameritrade >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. now you can, with shipsticks.com!

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what's so important about judge brett kavanaugh, president trump's pick for supreme court you're going to hear a lot about social. >> especially roe v. wade. and that's fair enough kavanaugh will be a pure conservative that's why republicans love him and democrats hate him i don't want to be glib about this stuff kavanaugh's decision will affect a lot of people. but social issues don't really matter to the stock market from a truly perspective, this is all about rolling back regulations and preventing government agencies from becoming too powerful. when i read kavanaugh's decision on net neutrality or the consumer financial protection bureau or the affordable care act, i see a jurist deeply suspicious of nonelected regulators who take sweeping actions that he thinks are well beyond their jurisdiction. in short, he is exacty kind of judge that business people want to see on the supreme court. whatever your own political views, whether you love regulation or you're sort of a

capitalist who thinks it's necessary, corporate wants two things, predictability and the ability to run their companies without undue interference from regulators who they perceive have zero understanding of how business actually works in the real world when i speak to ceo and cfo's, they rarely comment on president trump's daily comments or pending legislation. what they do talk about all the time is the day to day acts of federal agencies which business people see as having almost limitless power and far too much discretion let me put it this way the capital class strongly disliked president obama because he created an environment where new rules were being promulgated almost daily, and then you had to figure out how agencies would enforce the rules. even if you believe in heavy-handed regulation, this is not the way the do it. remember, companies crave certainty. so having the rules in influx is not helpful. kavanaugh is going to give the businesses exactly what they want he'll be viewed as a judge who keeps regulate owners a short leash, strictly interpreting only what the congress has asked him to do and nothing else

his approach will be soothing and comforting to business people who are concerned about government interference in the private sector so what does it mean for the stock market short-term it means very little. it could take a generation for any play out i think it will make investors more willing to pay up for stocks over time as there will be now five members of the court who sing the same tune when it comes to the role of government many in business that gives the predictability they crave for lack of a better term, this is a pro-business appointment. that's not a reason to go out today and buy stock, but over the longer term, this pick does suggest a solid conservative bloc on the supreme court that will favor corporations over regulation and smaller government over bigger government that creates a level of judicial certainty that i believe will make it easier to pick stocks, even if you hate the direction this court is going with every fiber of your being. i see you don't have to like it to profit from it. look, in the end, if there are a lot more important things in life than the stock market or business if you're pro-choice, there is no way to accept brett kavanaugh

with a smile on your face. but my job is to help you become a better investor, and purely in terms of the stock market, i think the pick is a subtle but long lasting win stick with cramer. the digital divide is splitting this country. we have parents who are trying to get their kids off of too much social media and computers, and then we have parents who would only hope

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add-on advantage. discounted hotel rates when you add on to your trip. only when you book with expedia. ♪ that's the sound of the shorts getting crushed why? because frito-lay delivered per pepsico. it's funny sometimes i think they should rename the company frito-lay in the same way i thought facebook should rename instagram because this is really the big driver of their earnings you know, only 25% comes from north american beverage. maybe they ought to be thinking bigger picture and how well this part of the company is doing and how well indra nooyi when some of the bigger money managers gave up on her real bad call. like i always say, there is always a bull market somewhere i ploromise to try to find it

right here on madonna. i'm jim cramer, and i'll see you tomorrow >> 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." ♪ my name is tony devine, and i'm from bristol, pennsylvania. my product is going to revolutionize the way we train for basketball. finish! finish! oh, let's go. use that left hand! i've been a basketball coach my entire life... let's go! and i always felt like there was something missing, and that was the realism when you practiced.