know >> it's true despite all of this. >> bro hug >> bro hug >> i don't want people to be sad. >> you know what made me happy today? >> that presentation they answered all our questions and i thought hunt's valuations -- ea yh. i'm melissa lee. seeanywhere. "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 the make friends. i'm just trying to make you some money. my job not just to entertain, but also to educate and teach you. so call me at 1-800-743-cnbc, or tweet me @jimcramer. nuts and bolts matter. what companies say, it matters

and on a day like today where the dow advanced but the nasdaq dropped .01%, it can make all the difference in the world before we get into individual companies, though, let me give you the big picture, macroeconomic context, because that was important too this morning i had the great privilege of interviewing my old co-host, larry kudlow, who is now the president's chief economic adviser we did it at cnbc's alpha conference it was chilling. no matter what you think of the stock market, world trade is top of mind, and china sat the tippy-top. if you listen to larry, you wouldn't want to own a single share of any company that does business in china because china hasn't given an inch on trade and could ratchet up tension with our companies that do joint ventures there just listen to what he said. >> so far as we know, president xi, at the moment, does not wish to make a deal

now, i'd love to be wrong on that we are waiting for him the ball is in his court, and the tit for tat business, which is nobody's favorite path, but nonetheless, they can end that this afternoon, this afternoon by providing a more satisfactory approach >> after that, though, larry made it clear that even if others around xi may want a deal, there won't be one without the approval of the chinese president. my jaw dropped when i heard larry talk about china i've been under the impression that the chinese might be taking a more conciliatory tone to avoid wrecking their economy which i believe is already being hurt bay slowdown in cross-border trade with us we buy their goods every year and we're putting tariffs on half that i thought that would bring the chinese leadership to their sense, not their niece, but their sense. but i guess they would rather

have weakness than seen surrendering to pressure from the west obviously it's not the case that there is conciliation coming larry, a free trader from way back, is now a true believer that we are already in a trade war with china with previous presidents who seemed oblivious, and now we need at last to fight back so much for the distance between him and peter navarro, the ardent protectionist whom see as the president's chief adviser on china. larry told us to stay tuned about other trading news could a potential break in trading negotiations with the eu that will begin in earnest next week any escalation, for example, some tit for tat tariffs on autos could really disrupt world trade. but elimination of barriers and we go much higher. larry said talks with mexico are going quite well i thought that was news. still, anyone who watched my old pal larry go off on china knows if you own shares in the companies that are thought to be dependent on china, i'm talking about a boeing, caterpillar, emerson, so many others, you've

got to be quaking in your wingtips china is not ready to capitulate, and that trade war could get worse before it gets better that was the takeaway. when uused to work with larry on "kudlow and cramer" he would weigh in with the macro. right now the companies are very much at odds with the china but very much in sync with larry's other comments about the economy. i postulated the economy this past quarter may have grown as much as 4% that was not my idea it was something bank of america ceo brian wen said it was possible when he came on earlier this week. larry agreed he said because of the tax cuts in the deregulation we could be in the 4-ish camp, even higher than 3% that he initially propounded when we got the tax cuts, one that so many people laughed at when he made it it's that part of his talk, not the china trade war that controlled today's session, but the upbeat part. in general, i think the chinese fears will be minimalized by the results we're going to get this

season what makes so california it was a couple of things that happened including two earnings reports early this morning first we want to look at united continental, the big airline and then csx the railroad giant and then alphabet. the biggest damper in this market has been the transports that's a key sector. i have always been a devote ofe of the transports. we have some real downer numbers last week from delta, from american, holy cow they're beginning to make me question how much we should be paying for stocks in general if they're doing so poorly, and then united continental lights it up. ♪ hallelujah with a big boost to its full year earnings forecast and a terrific upside for the quarter, despite the huge increase of the price of oil plus, the company shaded down a capacity growth, meaning they're not going to add quite so many new planes which is key to their ability to make the numbers down the road my conclusion, don't despair about the transports question how american and delta are doing versus the share

grabbing continental how about csx? >> all aboard! >> this railroad always lists how each cargo line is doing, how well it's performing versus last year, and the results, they were just staggering overall revenues were up 6% for cargo. now listen to the actual growth. chemicals up 7%. autos plus 7%. ag and food up 2%. minerals up 7% forest products up 11% metals and equipment up 11%. coal up 7% intermodal, 9. every one of the numbers is pretty fabulous for the broader economy. they sound exactly like whoo you would get if you do the 4% gdp growth these numbers suggest a boom, an actual boom in housing, in autos, in mining, in manufacturing. at least in the american southeast. as i told you many times, we're seeing a manufacturing renaissance in this country, a sustained comeback at much higher levels than most people believe could occur, thanks in part to our bountiful natural resources, but also because of deregulation these csx numbers tell you it's happened finally, there is a quizzical

one i want to talk about it's alphabet. last night the eu slapped a $5 billion fine on its google business for alleged monopolistic behavior. fair enough. i was up when the news came out. alphabet's stock got dinged immediately for more than 15 points but as the morning progressed, the stock started roaring. i think because when you have more than $100 billion in cash, it doesn't matter. they can pay that fine and barely notice. ultimately the stock ended up shedding the gains, but like netflix yesterday, when it reported that less than stellar quarter, alphabet should have been down big. it has its fingers in so many tech miss, people will not part with the stock even after a $5 billion fine why does this matter to the overall micro mosaic it does dovetail with larry's sanguine view. if we get that 4% gdp growth, we're going to find out the stock market is ultimately undervalued. i think we could see a

continuation of the good tech news impacting tomorrow's trading. as ibm delivered better than expected revenues after the bell we're going to talk to martin schroeder later in the show. maehl maybe we'll flesh out why that surprise occurred bottom line, china aside, when you look at what's happening with individual companies, business is darn good in this country, and that's good for the stock market and how much fun it was to band with my old partner about the economy's surprising strength which didn't come as a surprise to mr. kudlow. let's go to paula in california. paula? >> caller: jim, first of all, a very special thank you for keeping us on course during these crazy times boo-yah-yah. >> thank you so much. >> caller: my question is on one you touted a few months back general mills, dis given the blue buffalo buyout and the huge debt package they've incurred, i know they've done some trimming, but we've got the international trade

tariffs looming. >> right. >> i'm wondering what you see on the horizon for this one >> paula, they surprised me. they did that gigantic equity offering, and that really did crush the stock. i think it's a long-term hold. it is a great american company, but -- and i do believe that blue buff is going to be a good buy, but morale, they 30 balance sheet that was tough let's go to joseph in new jersey joseph >> caller: boo-yah, jim. joe in the garden state. and i want to get your thoughts on align technology. i love the company's growth and management, but i'm worried investors have gotten ahead of the company. am i paying for too much for what i view as a high quality stock? >> this is one of the stocks we anointed last year it's up 100% since then. all-time high today. i can't up this high just say go buy. i just can't it's had too much of a run let's go to thomas in florida. thomas >> caller: hey, jim, this is thomas i want to give you a gigantic tropical boo-yah from rainy

orlando florida, because it's raining today. >> i like that i like clearwater. it's always sunny there. what's going on? >> caller: wonderful i also wanted to let you know i've been watching your show since 2005 with my dad i was 12 years old then, and now i'm 25 i want to thank you so much for being such an awesome guy, and we hope to continue watching you for many years to come. >> thank you so much when we started out, i thought the kids would watch, and now those kids are adults and they're buying and selling stocks, and i love it. how can i help >> caller: thank you we wanted to know your position on the stock ingr, it took a recent dive and we're curious what you make of it. >> if you want to be in that industry, may i suggest you be in iff, which has come down a huge amount, or you wait until dow dupont does a breakup and you'll get a division that looks very much like that. my charitable trust which you can follow along has maintained a long-term position in dow dupont that's a better -- much better

situation. fine, how companies do really does matter, and it makes all the difference in the world where china is when china's top of mind. i think we'll eventually see this market as undervalued if we get 4% gdp growth. on "mad money" tonight, ibm just reported earnings and the stock is heading higher after the close. i'm going to sit down with one of the company's top executives and parse through the results. and then, was the obituary for traditional brick and mortar retailers written prematurely? i'm taking a closer look at the return of the retail reits and first horizon is down nearly 15% year to date, but should you keep your eyes on the horizon? i'll find out if its long-term story is still bankable when i sit down with the ceo. 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.

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what needs to happen for the stock of ibm can finally get some momentum going? everyone thought the company needed to get sales growing again, but that happened the first quarter and the stock's remained listless. we heard that ibm's new fast growing division which includes their cloud business needed to start offsetting the slower legacy business. they've done that too. they keep dlifrg on their promise, and yet the stock still trades at a laughable 10 times earnings so what it's going to take tonight 4 cent earnings beat off a 3.0 basis, higher than expected revenue on top of that, management maintained their full year guidance which may not sound like much, but when your stock trades 10 times earns, beating them is a big deal to help digest the results which i think seem darn good, let's check in with martin schroeter he is the senior vice president of ibm mr. schroeter, welcome back to "mad money." good to see you, martin. have a seat. >> good to see you thanks for the time.

>> martin, i see this better than expected revenue number, $20 billion. i want to know what it's made up of, and whether you're happy with the gross margins that it generates. >> sure, two things there is a lot there. in terms of trajectory, you may remember already a year ago we said the trajectory in each of these businesses was going the start to improve part of that was delivered again in the last 90 days when we grew revenue, good single digit growth pretty consistent what what's we talked about very good systems performance again. we said already that the mainframe, when we announced it was going to have a short arc and a long arc to it we also got good growth in some of our cloud businesses. we got good growth in elements of our analytics portfolio which sits in cognitive solutions. so the revenue trajectory we're quite pleased with, and we think we can keep momentum going on the margin side we have mixed issues on margin, as we always do. >> right. >> but the trajectory continues to improve from where we were.

we've seen the profit dollar growth out of that revenue, and we'll see margin stabilization. >> okay. i want to see that i also was gratified to see $4.7 billion in cloud you're talking about a run rate for cloud that makes you one of the largest cloud companies, but we don't hear enough about it. i love the fact that you issued some of the wins talk about the wins, how big they are, and whether they're competitive. >> sure. look, this is a competitive industry, right? we'vegot some fierce competitors. they invest heavily. we invest heavily. let's look at the win we had in australia. it's a win across all of the government, okay so the government, you know, very adept, very good about how they procure, how they think about. they're on a journey, just like enterprises are. and that journey includes cloud. that journey includes analytics. that journey includes new technologies like blockchain and quantum and things we were able to go in and compete for what is a billion dollar contract in australian

dollars so, about $750 million u.s. big, big platform play to help the government now take their vision of how a goovernment should run by 2025, these are long commitments, by 2025. we'll bring in all our technologies we have the process expertise to help them put it in place. and importantly, i think it's a good measure of what we've talked to all our customers about which is you can trust us. you can trust us with your data. >> we talked about that. there are some companies that people regard as being compromised. are you seeing a pickup and wins from people saying look, i've got to go with ibm because your history is to not give up information? >> yeah, i think there are a couple of things really important for our clients. one, we don't compete with our clients. so that's really important to them they know what our financial model looks like, and they know we don't have an alternative monetization need really for their data. >> you're not giving out their names and you're not taking their retail information and using it against them. >> right we don't need that in our financial model. so they're assured of our

financial model. they're assured architecturally we can protect their data. and most importantly, their insights remain their insights >> i want to be sure that everybody recognizes you're on target to meet the key executives, at least 13.8, because some people felt you would not make that. i read all the research. 40 billion, they are in 12 billion free cash flow what will you do with the free cash flow? >> we always have been pretty prudent about returning some to our shareholders we've been table grow our dividend year after year now for a pretty good track record we return some through share repurchase but we've been acquisitive we have in the past and continue to be acquisitive so that we can keep building the capabilities that we need to keep winning, again, in a very, very competitive space. >> now ca got bought last week by broad com, and i think a lot of people were dazzled by ca which works with you as a partner talks about how mainframes are very relevant in the banking industry it's a gigantic percentage they didn't get off the mainframe. they must like the mainframe by

this time or they would have gotten off. >> it's a great point. the mainframe still runs 75, 80% of the world's business because it's still the world's most scaleable, most secure transacting process for business banks, airlines, the trains, the supply chains of the world need that scalability so the mainframe, good performance again. now we're a year now since we announced the new mainframe. and one of the things we talked about last time is i believed at the time that the things that the mainframe does -- yes, it's good for all those applications it's already doing, but the thing it does now better than anything is this idea of encryption all data encrypted all the time. so we said that -- i said -- >> you mean cybersecurity? >> yes i said that there is a long arc here that we may not see the same trends we've seen in the mainframe in the past. and in fact, we're well ahead now of where we were at the same time in prior cycles, and i think we're well ahead because of the way that resonates with our clients. >> all right do you have a million line items like a lot of really complex

companies. the one i was confused about is you know i'm a believer in cognitive solutions. it was not up to snuff to what a lot of the analysts were thinking there something i'm missing that could explain little bit of decline and the gross margin contraction? >> so gross margin is something we've talked about we've talked about both these elements in the past externally. on the growth margin side, we would expect that margins continue to shrink a little bit as we move to as an service business that mix itself still a creed for ibm in total, but that is going to continue to put a little bit of margin pressure in that unit. on the revenue line, that is a model that we'll grow. >> right. >> but that has within it some areas that we continue to retool so our collaboration portfolio is going to get refreshed. we have a little bit of work to do the things that are going well like analytics continue the power ahead. >> okay, good gross margins there. tariffs, you have such an international business too do i need to be concerned trade war? >> well, look, we've been advocates for free trade. >> right. >> we've been advocates with

every government with whom we talk that the right way to go about this is to open up markets. it's the way we've always behaved. it's what we'll continue to advocate for we'll keep putting forward our position that we think free trade is the right path to go down >> nobody likes that, but i don't care blockchain, crypto, the winds in blockchain why would deutsche bank, it's a big bank, one of the world's largest, why did they pick you for blockchain it is what you're able to do with cryptocurrency? security why you? >> i think it's three things security is a big part of it >> right. >> people love our blockchain. we have more blockchains running today in the world than anybody else the reason we have that is because of the security that comes with it, encryption. our blockchain runs on an ibm mainframe that doesn't matter to them as long as it gets encrypted all the time the one is that it's secure and encrypted. second, we have the scale. there is an open platform that runs this on the bottom. that's open source

we've made it available to everybody. but we have the scale that big businesses need, big global banks need we're not talking 10s and 20s of things we're talking 10s of thousands of things per second to run scale. and then we have the tools and we've built the ecosystem around all that to make it useful in your enterprise. so you have a technology platform that's open and the skills to make it work. >> and some very big wins. thank you for disclosing the win. that is so important because it really matters to know that you are competitive in every area that is martin schroeter he is vice president of ibm with a quarter that i think should start making people think you know what? there is growth here, and there is also a lot of money being made "mad money" is back after the break.

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from the retail oriented real estate investment trusts, but this was pretty simple. >> don't buy, don't buy, don't buy! >> because in an environment with rising interest rates, you need to be cautious about the high yielding bond market alternative stocks like the reits. and given the structural weaknesses, i thought the group was, say, too risky. you know what? for the next two months, i looked dead right. the retail reits continued to stink up the joint but then a few unexpected things first, we started getting better than feared earnings reports thanks to a strong economy second, long-term treasury yields started pulling back making the reit morse attractive in comparison. and third, president trump's mania for tariffs, against everybody began to scare investors away from cyclical companies that do lots of business overseas. suddenly people wanted domestically oriented dividend stocks again and rather than being scary, the real estate reinvestment trusts were suddenly in the sweet spot.

the retail reits have made a remarkable comeback here but we have to ask can the rally continue is this something worth banking on, or should we approach the strength here with caution be a little more critical. but when the facts change, i change my mind and the fax on the ground have clearly changed since early march. earlier this year, the yield in the ten-year treasury looked like it was charging relentlessly higher. when we warned you about the shopping mall reits, the yield has risen by 75 basis points long-term treasury yields peaked in the middle of may down 20 basis points from those highs. didn't think that would happen look, the precise levels don't matter what we care about here is the trend. when the ten-year was three and seemed to be trod run to four, these high-yielding reits were toxic. nobody wants an alternative stock when the bond market is finally giving you some decent returns. but with long-term interest rates stalled here, the reits have become a lot more attractive throw in the trade war and all

the people worried about a slowdown, and it's no wonder that the reits, like the utilities and consumer packaged good stocks until today have come back into vogue on the wall street fashion show. but it's not just the big picture stuff. many of the retail oriented reits have started taking action because of great management to improve themselves in order to fend off online competition. either by revamping existing properties and selling off underperforming pieces of real estate i'll tell you about that in a second or they're just kind of realizing, you know what we've got to have different kinds of companies, different kinds of retailers maybe we need gyms, pet stores, supermarkets, stuff that can't be replicated by amazon. the company is doing better than expected thanks to the incredible strength in all of retail consider what's going on with simon property group, federal realty, and one that's very small that we've had on the show, pennsylvania real estate investment trust let's start with simon that's huge shopping mall own were a stock rebounding an astounding 16% from the late april lows in may, simon announced that they're investing $4 billion in a bunch of major properties.

for example, they are adding a hotel to phipps. and they're coming up with a bunch of plugs to help previously pure play online retailers build out brick and mortar showrooms they're not just sitting there waiting for the amazon apocalypse in some quarter the numbers are solid. in fact, they even raised their full-year funds from operations. that's the key metric. it's the equivalent, frankly, for reits of earnings. yet the company is doing pretty well, and also rewarding with a 4.5% yield i think it's a buy how about federal realty this shopping center reit which has rallied a quick 11% from the april lows still supports a 32% yield. mix ceo don wood, a visionary in the group gave a presentation last month where he explained his philosophy according to wood, you can't just stick a starbucks in the

lobby of an office building. the whole point of mixed use property he says is to create a retail environment where people actually gather. the idea is to create an area where tenants will happily pay a premium for your stores. that's how they try to create shopping centers that people keep coming back to remember, don also said on the show that people want convenience, they want it now. hey, how about living in a mall? yeah, mixed use. now when federal realty reported its most recent results, we get a nice top and bottom line rather than being in trouble, the company saw its comparable property income increase by 3.8% in short, they're doing just fine let me give you a little more dice circumstances i'm talking about the pennsylvania real estate investment trust, pei not prince edward island pei. whatever it's another shopping mall play that's focused on the midatlantic region, one that is controversial because it had some weak properties it needed to prune this stock pays an abnormal 7.8% yield, which is very high, and i would tell you normally that it's sky-high, and it's something you need to be wary of

because it suggests that the dividend might need to be cut. but man, pei has rallied nearly 20% from the april lows. why? simple pennsylvania real estate investment trust took drastic action they sold off an astounding 4.0. 17 malls listen to what ceo joseph ca cardino told us when he came on the show in april. >> we sold off 40% of our portfolio. >> to fund the bad. >> 17 malls, 25 anchors have closed in those 17 malls we sold, right? and the result has been that in the assets we kept, we reinvested we took back 12 anchors. 10 of them are leased. two are about to be leased and so we're -- we're well ahead of the curve as it relates to the problems, the headwinds that we see in the retail space >> drastic action he took. yeah, they really bit the bullet and while the company's latest quarter was definitely mixed,

with same store net operating income actually falling 1.6%, excluding one-time items, management did reaffirm their full year guidance wanted to see that the stock got dinged on the news but already started running after the strong numbers from simon which came the week before they rallied to nearly 12 bucks last month and while the stock has pulled back, this story certainly looks a heck of a lot better than it did, i don't know, last year at this time. wow. as it turns out, i'm not the only one who has been busy reassessing the group. just yesterday, goldman sachs upgraded the whole retail reit sector from cautious to neutral. i like that mostly because the stocks are darn cheap and the group seems to be stabilizing. so where do i come down? look, it's very hard to hate these retail property owners when the business of retail is so strong. it's just tough to stay negative there is no brick and mortar apocalypse, at least not at the moment and not with the stores that are left. i was a little hasty when i told you the group was dangerous at the beginning of march, but

remember, wasn't the yield curve that changed are these stocks worth buying here i can't say i'm jumping up and down enthusiastic. but let's just say hey, i'm less negative than i was before the businesses are just too good not to be more positive, and the manager's too great not to respect him. here is the bottom line. i got to give simon, federal realty and pennsylvania real estate investment trust credit for self-help. they were dealt a lousy hand and they've done what they can to improve it i'll definitely be watching them when they report in the next few weeks. but for the moment, i will only invest if you're very confident that long-term treasury bills will stay down if you think that, then you ought to do -- >> buy, buy, buy >> some buying frank in my home state of new jersey, frank! >> caller: hi, jim neptune new jersey. >> i'm an ocean grove guy. boo-yah right back at you. what's up? >> caller: i know. i met you and your wife at the dolce vita.

>> dolce vita. uncle nick and joe trust me go ahead >> caller: any way, my question is nly, annaly capital i was thinking of taking the proceeds and putting them into that reit for the dividend income and for a long-term, do you think it's a good move >> i got to tell you it's down 12%. next time i see you at doll say vita, i don't want you to get mad at me. i think it's a company that's very opaque. i can't tell what they really do i don't like that. it's 11% yield but down 12%, i tell you something i'd rather put my money in a cd. i think it's a better bet. i'm sorry. that's how i feel. and i hope to see you this summer at la dolce veto. at the david nevada? >> caller: boo-yah, mr. cramer >> boo-yah. >> caller: thank you for taking the call i have a question with omega

health care. it looks like it's rolling over on me. i'm trying to hang on for dividend by the on the other hand this month. i don't like to say with reits when but i have a chance to maybe make money if i hang on. >> i don't like the long-term care industry. i'm concerned about that and remember, there have been some mishaps in that group, and i am not going to tell you that i feel comfortable remember, ventas is not a big fan, and i feel like -- she likes some of them but what worries me is that you can have some let's say exposure to the government. i don't want that. okay a return of the reits. i'll be watching simon property group, federal realty and pennsylvania realty investment trust. there is a lot of reits that i am concerned about, including ones that are dealing with health care. much more "mad money" ahead, including my exclusive with first horizon. the stock has been dropping as of late. i thought it had a good quarter. then i had a chance to talk with

an under the radar super investor who delivered some of his best investment ideas today. i usually don't do this. don't miss "common stocks that could be commonsensical." and then dishing up the "lightning round." so stick with cramer is this at&t innovations?

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boy, is this market had a hard time trying to figure out what to pay for bank stocks. it's been a constant theme in 2018, but it's really been in your face this earnings season first we got some excellent numbers from jpmorgan that go unrewarded the group tumbles. then the whole group roars when bank of america puts a good quarter earlier this week. sometimes it feels like you never know how the market is going to react but there is one thing we do

know if a bing disappoints on by any big line, a bank is going to be finished fhn for you home gamer, the tennessee-based regional bank with more than 300 locations across the southeast yesterday morning first horizon reported inline earnings with weaker than expected revenues. while the absolute numbers were pretty strong thanks to the recent acquisition of capital bank, wall street was not impressed and the stock dropped 4% it's now down 14% for the year so what's happened here? let's dig deep were bryan jordan he is the president, chairman and ceo of first horizon national, find out more about the quarter and his company's products mr. jordan, welcome back to "mad money." >> thank you, jim. it's great to be back. >> all right, bryan, i've got to tell you i go through the quarter and i see interest margin doing well, the acquisition doing well some of the analysts tell me look, the revenues weren't up to snuff and that's why it went down i want to give the ball to you, because i think there must be more going on here you run a great bank and the

stock has been under much more pressure than it ought to be. >> thank you for the opportunity. i'm excited about how we're positioned and i'm excited about the momentum that i see in our business if you look at our first couple quarters of this year, we spent a tremendous amount of time focusing on the integration and doing work to make sure that we minimized any adverse impact on customers or customer relationships. and that involves everything from training to conversion and communication. we came out of the conversion memorial day weekend with pretty strong loan growth for the quarter, about 8% annualized 4 to 5% loan growth. our net interest margin improved for the quarter. our deposit trends were strong, and we came out with what we thought was very good momentum in our banking business. our fixed income business was off a little bit in the quarter, and that impacted our top line revenue growth that has to do more with something we talked about a while back with the volatility and interest rates and a 3%

ten-year but all in all, we feel good about the momentum we're seeing. credit quality continues to be good our economic backdrop is still very, very strong, and we're looking forward to a very strong back half of the year. so i'm excited about how we're positioned and very optimistic >> well, talk about the capital acquisition group. since memorial day, you had not that much time to look at it, but a good solid month, and you're in the carolinas, which are a fantastic economy. we know that where you are is a great economy. the pipeline must be pretty full >> yeah, the pipelines are very strong we -- i mentioned yesterday on our earnings call, our 50% probability pipeline at the end of june was $2.4 billion that's relative to the last six months and end of last year average of about 1.9 to $2 billion. so somewhere between 20 and 25%

stronger which is very good. we have something like 306 deals where we've either completed or about to complete what we would consider revenue synergies where we've got a sale or cross-sale or a product feature or service that is being driven by the integration. that totals about $17 million in annualized incremental revenue when that is done, and we think we build from there. as we look at the integration the capital bank markets, we see a tremendous amount of opportunity. the markets in north carolina, south carolina, and south florida that we now have an opportunity to grow in are extraordinarily strong they're markets that look and feel a lot like the major msas in tennessee we believe very strongly in the team of bankers that came on board with capital bank. we believe strongly in the markets. and so we think there is a lot of growth opportunity, organic

growth opportunity in particular for us >> okay. how about capital. i know they're saying capital is somewhat thin, but they would expect that maybe you can do some buying back of stock given how low the stock has fallen could that be this the cards for first horizon? >> yes we retired about $40 million, $45 million worth of stock in the second quarter of this year, and we have we think plenty of excess capital we stated for if you good back eight to ten years, we sort of changed the underlying metric just a bit but essentially, equates to about a 8 or 9% common stock ratio. we're at 9% at the end of the quarter. so we believe we've got plenty of room in that range, and we can take opportunity to pick up some there the other thing that we have sort of a hidden capital buffer as an issuer of visa and a receiver of visa stock we have

something in the $250 million plus range of visa stock that has about $250 million in economic value and a zero basis on the books so that in and of itself creates a capital buffer so we believe we have the flexibility to take advantage of lower stock prices here with the stock being on sale and pick up little bit >> well, i couldn't agree more the stock is definitely on sale. it doesn't make a lot of sense to me. i want to thank you. that's brine president and ceo of first horizon "mad money" is back after the break. my ambition is to get my 8 hours. because a head full of work... a husband who snores with gusto... and marvin... are going to need a bigger bed. ♪ ♪ ambitions live everywhere.

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you shouldn't be rushed into booking a hotel. with expedia's add-on advantage, booking a flight unlocks discounts on select hotels until the day you leave for your trip. add-on advantage. only when you book with expedia. "lightning round" is sponsored by td ameritrade >> it is time! it's time for the "lightning round. >> buy, buy, buy, buy, buy, buy, buy, buy, buy! buy, buy, buy! [ buzzer ] >> and then the "lightning round" is over are you ready, skee-daddy? it's time for the "lightning round. let's start with howie in new york howie? >> caller: hello, boo-yah from buffalo, new york. >> perfect what's up? >> caller: thank you for taking my call, jim i listen to you every single day and i wouldn't miss the show for nothing. >> wow

nice thank you. >> caller: your staff does a terrific job there, and they are very good. >> they're firing on all cylinders delivering alpha today, i got to tell you how can i help >> caller: i'm interested in the stock amd. >> i like it i agree with you lisa sue has done a remarkable job. it's a real turn the stock does belong up here. in fact, it belongs higher what a job she has done. let's go to patrick in pennsylvania patrick? >> caller: boo-yah, jim, from a former new jerseyian. >> very close. what's up? >> caller: my stock is iridium communications. >> it's moved up 50% i recommended it at much lower i have cooled on the stock a bit because where are the profits? that's what i want to know where are the profits? let's go to shanndon, in indiana. >> caller: hello, just a minuho doing? >> i'm great. >> caller: the drug companies are in a race to develop nash drugs. viking tharps, vktx is rumored

to be a takeover. >> well, i don't know about that we got to do more work on that that's a very complicated and very competitive so let's do more work. sarah in wisconsin, sarah? >> hey, jim, big boo-yah from the wonderful state of wisconsin. >> oh, fantastic we love wisconsin except for when green bay is playing. how can i help >> caller: yeah, it's not too nice in the winter, but it's good now my question is one of my best performing stocks. >> a remarkable job. he had to navigate the uber problem. he's got airbnb. he's got everybody on a platform for messaging. uber amazing in the end. here is what i have to say i think lawson has done a fantastic job. and in the end -- >> buy, buy, buy >> it's still a buy. let's go to robert in texas. robert >> caller: hey, jim, i'm from san miguel mexico, just visiting my mom in texas. >> perfect let's go to work >> caller: okay. tell me what's going to happen with the price of oil, and particularly with apache

>> well, apache's problem is too much of it is natural gas. it did have a nice move up, but i tell you, i'd rather be in so many others. but if they get that natural gas pipeline through to mexico, they are going to do incredibly well. >> will give them that but i cannot tell you to buy it up here. let's go to disco in colorado. disco? >> caller: boo-yah, cramer >> boo-yah >> caller: disco from beautiful breckenridge, colorado at 9,600 feet of rocky mountain high. >> holy cow, it's tough to breathe up there what's going on? >> caller: it is tough to breathe up here. you need some oxygen i'm calling about ctl, carnival. >> you know what carnival is oversold norwegian cruise had some good things to say. they think whole group is way too low. >> buy, buy, buy >> and oil is coming back down a little bit too and that, ladies and gentlemen, is the conclusion of the "lightning round"! [ buzzer ] >> the "lightning round" is sponsored by td ameritrade so all... evening long.

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tired of fang, our acronym for facebook, amazon, netflix and google five years ago, i can have a having a little fang fatigue that's why i was oso thrilled today to interview the anti--fang, ed walkenheim, because ed is all about finding value in this market, and he is finding a ton of it that no one else seems to be considering he has a list of the least sexy

stocks in the market, a list that puts a lie to the idea that that will is no cheap equities out there. he has such an amazing long-term track record, and i like his book, common stocks and common sense so much. first, citigroup and goldman sachs, especially with the latest quarters. ed is not a flipper. he believes in a two to three-year time horizon, and in that period he is talking about a possible dramatic reevaluation he believes investors will come to their senses and start paying dramatically more for their fantastic banking abilities that means giving goldman's earnings power he thinks this 230 stock could almost double or even more and still not be expensive the key, wall street needs to start recognizing the investment bank as a consistent grower. he was even more bullish on citigroup. if it keeps buying back share, he thinks the 70 stock could go much higher in just a few year's time you combine the higher estimates that he's got with the buyback, and he says the $70 stock could

go to 130 ♪ hallelujah >> ed thinks sees an asset light mold developing where the home builder's husband and then returns the shareholders rather than keep rolling the dice on new real estate. he suggests that lennar and dr horton could both go much higher, and he points out that mortgage rates are nowhere near historic highs meaning there is plenty of room for growth. but he saves the best for autos. he says gm could earn as much as $8 a sharegiven that the automakers have historically traded about 16 times earnings, he is talking about a stock triple iing best for last, ford. ed believes that the ford family after years of trying to be all things to all people on every continent wants to be profitable everywhere or else even if it means shuttering some countries and dropping the costly but not particularly lucrative sedans. yeah, become more of an f-150 maker if ford did that and he thinks they will then company can earn $2.50 a

share which will put this $10 stock on track to trade up to 30 bucks. plus, they sport a 5.5 dividend yield. they pay to you while you wait for the turn all these stocks are so cheap they really do make the notion there is no real value in this market just a lie. this panoply covers three very big industries so whenever you wring your hands in disdain that fang is all that matters, i need you to recall that commonsensical money manager who has beaten so many of those featured today, and he's done it with unloved undervalued stocks like the autos and the home builders and banks, three of the most out of favor groups in the entire stock market stick with cramer.

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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." ♪ is a fashionable way to bring out your inner animal. what's up, sharks? my name is alexander mendeluk. i'm marley marotta. and we are the co-creators of spirithoods. we're seeking $450,000 for a 15% stake in our company.