wish my wife a happy valentine's day and my daughter lily and her roommate, kate, big watchers show the stock is too cheap, cbs, it's too damn cheap. >> that does it for us see you back tomorrow at happy valentine's day, everybody. "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 make you some money. my job is not just to entertain you, but to educate and teach you. so call me at 1-800-743-cnbc or tweet me at @jimcramer what's the difference between a luxury and a necessity which products are essential you need them no matter how bad the economy gets

what's your discretionary? purchases that can be postponed when times get tough that's not a rhetorical question today we got a couple of answers that were so surprising, they impacted the entire session's trading. the dow only losing 14 the nasdaq declining 7%. coca-cola lab, arguably the most powerful consumer company of all time, a classic staple it's a small world purveyor of something people were supposed to drink through thick and thin turned out to be not so essential after all. coca-cola stock got rock down more than 8%, a very down forecast, which is much worse than expected. it kind of really shocked me quite frankly. ceo, what happened he pinned the blame on macroeconomic forces isn't coke supposed to be immune

to macroeconomic forces? you know what? strange day today, because it was a poignant quota to the awful december retail sales figures that came out this very morning. they were the worst in nine years. i told you it with australia bad christmas season ever since black friday was just going down so apparently coca-cola is a lot more discretionary than we thought. at the same time, cisco, the network equipment pioneer, has now evolved into an indispensable hardware and software powerhouse. when i say indispensable, i mean it cisco raised its forecast, boosted its dividend and a buyback at $40 billion in cash by the way i think they've become so essential, no matter how tortured, these companies can't fall behind. companies can fail if they don't stay current with the best network possible cisco, cisco has become a necessity to corporations worldwide. on the other hand, coca-cola, sugar water, discretionary there is no reason you can't do

without it anymore, right? when times get tough, do you really need it i know that sounds bizarre coca-cola has always been considered the ultimate safety vehicle, a company that works through thick and thin with a fabulous yield and balance sheet. it's supposed to be the kind of stuff that companies postpone buying when business sales. >> sell, sell, sell, sell, sell, sell >> when the economy is in dire straits from the trade war or too aggressive federal reserve, the playbook and -- i know, wrong language, but this is the playbook i wrote it for you the reg fund playbook says you buy the stock of coca-cola -- >> buy, buy, buy >> and you shun cisco. >> sell, sell, sell, sell, sell, sell >> historically, investors are willing to pay up for safety stocks, but at least coca-cola, i think the safety is illusory cisco trades a big discount to coca-cola as a stock price-to-earnings multiple even though it has faster growth well always assumed cisco's

earnings were more precarious, more vulnerable to a slowdown. it turns out that's no longer true don't believe me hey, i wouldn't believe it either if i hadn't heard it on their conference calls so why did james quincy, the new ceo of coca-cola, a great operator, why did he cut the firm's forecast? i'm going to read it to you, because it's really important. listen to this i think we are being cautious about the macroeconomics and how that's going to be a little softer than 2018, he said. then he went on the say he's worried about currency he's worried about interest rates, and he's worried about taxes. since when has any of that stuff been a problem for soft drinks buying soft drinks i mean, north america was a lift softer, more sensitive to the price increases on rising costs. quincy talks about, and this was like jimmy carter. ready? quote, a little bit of consumer

outlook may lags who knew dropping a fiver on a 12 pack of coke zero might be too prohibitive in a gloomy environment. i always figured it's about a coke and a smile apparently not how about cisco's multimillion-dollar networking equipment? now these are some of the biggest ticket items out there, just short of aircraft you would think they would be vulnerable to a weaker economy but ceo chuck robbins explained that, and i quote, it is one of the more complex macro geopolitical environments that we've seen in quite a while with all the different moving parts but to honest, from the first day of the quarter to the last day of the quarter, we saw zero difference holy cow robbins went on to say, and i quote again, we saw very steady demand throughout the quarter and just saw great execution by our team so is cisco the real safety stock here i think so how is that possible let me tell you how we ended up in this completely bizarro situation, me like 'em ugly.

me put wings on a winged victory of -- remember that? whatever venus de milo. in some cases the consumer packaged goods companies may have raised their prices too high and savvy consumers, the generation x, the y, the z, they've learned to live without it they just don't consume products the way my generation did. maybe they'd rather carry nalgene bottles and drink tap water. items that have lost their staying power. consider conagra, chef boyardee, hungry man, among many of the other brands on about niagra plummeted. why? because you can live without that stuff that safety? is that the definition of safety that doesn't sound like safety to me. kellogg flubbed the quarter too. 4 bucks for a box of cornflakes

doesn't cut wit the savvy consumers. campbells, a disaster. canned soup doesn't resonate with the millennials put some salt in that. kraft heinz. sports a 5% yield, but only because the stock has fallen to 47 now where is the safety in that? we thought these pantry plays were essential, but it turns out their products are replaceable now let's consider what cisco really does. cisco enables the country's network to connect with companies worldwide while on boarding to all sorts of clouds. these days a business that is not digitized is dead in the water. cisco knows that that's why it with raise its forecast that's why cisco has the pricing power to charge for more its machines, because that's how the gross margins are going higher companies can't live without this stuff if you're in the business of selling stuff you can't do it as effectively without salesforce's software everybody knows that you want to run a bank what happens if someone hacks into your most sensitivity inner

sanctum and gets the keys to all of your data you need to pay out for protection, like the protection provided by cyber mark the stock is up 17 all-time high. stellar earnings you want the streamline your human resources or financial teams? service down, john donahoe, information technology management and oh, try designing a truly interav ecommerce without adobe. it's very hard to do and we're going to speak to twil twilio put it together, it's clear we're pay together much for the consumer products stocks if they've truly become economically sensitive if their backup forces play a role in coca-cola, you may have to avoid the vast majority of these, which haven't really kept up with the times. companies with complex hardware and software solutions, maybe we need to pay a premium for their stocks maybe cisco will be rewrited

they're scarce they're vital. look, there will always be outliers i think clorox and procter & gamble, they had terrific numbers. they've been able to put through price increases without much resistance inside pepsico tomorrow morning will show less pricing sensitivity. but that's not because of drinks it's because of snacks oh, boy. bottom line, the message of today is simple. old-time safety can be illusory. they're a lot more sensitive than these technology oriented plays. that's the new normal. get -- no, i can't do it to an executive producer wearing a valentine's day scarf. but you got to get used to it. let's go to alex in california alex >> hey, what's going on, big jim? >> i don't know, man i was about to shake up a coke can and open it up and ruin somebody's outfit, but i thought better of it in the end. how can i help >> caller: classic i had a couple of questions on raytheon they just got a pentagon

contract and what do you think the long-term outlook -- >> my charitable trust, which you can follow along by subscribing to actionalerts.com, we bought raytheon and i gave up and i gave up because i said you know what? when the democrats got in, they would not boost spending that was a mistake. raytheon is a winner wow. i mean, i don't know how much lower it can go, but we did punt not my finest moment but if i just talk about all the good ones, then i'm obviously not going there, right that's not the truth any way, times are changing, and you better keep up with them the new reality, it's digital tojt that's essential, not traditional consumer standbys like coca-cola, although i got to tell you, i like that coke zero and indra knnooi will be missed could it be a buying opportunity? i'm sitting down with the ceo after earnings to talk about how -- what this recent

acquisition will do. then stocks -- make -- are stocks in fashion? i'm talking to the major apparel makers see if any could be worth owning and is one man's trash another treasure we sit down with the management of waste management who punched through 100 today to see if the stock could have you cleaning up so stick with cramer don't miss a second of "mad money. follow @jimcramer on twitter have a question in 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 madmoney.cnbc.com. building a better bank starts with looking at something old,

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♪ what in the world happened to the stock of twilio yesterday? the club missed communications play has been one of the best stocks around, twilio helps app developers use push technology to better connect to their customers. think of the text message you get from lyft or airbnb. a year ago this was a $30 stock.

now it's $107. but yesterday it was slammed into a retaining wall after twilio reported what i thought was good quarter the problem, when sometimes good isn't good enough. and there was some hair on this one as guidance for the next quarter came in weaker than analysts expected. so the stock plunged from 115 to $105 in a single session silly, silly could this be a buying opportunity since the business is growing twilio has a lot going for it including its acquisition of send grid, a cloud-based platform for transactional and market-based e-mail. i think this part of the story isn't getting enough attention let's take a closer look with jeff lawson, the co-founder of twilio and the ceo of twilio send grid to find out what the deal means for the combined companies, especially because i didn't think the conference call did it justice first, jeff. good to see you. congratulations on 77% growth which people weren't talking about at all i don't know why it seems like a good number.

>> thank you, jim. great to be back we're very proud of capping off an amazing year with q4 with year 7% year-over-year growth. we're very proud of what we accomplished in 2018 and looking forward to an amazing 2019 >> so samir, let's talk about send grid. it reminds me of marc benioff bought target. you need push to phone but e-mail, particularly for marketing on this platform so tell me let's say pick a client that you both work with and now you're together being one plus one equals three >> yeah, well, you mentioned, jim, airbnb as one great customer they're a customer of ours as well so any of your listeners throughout, when they make a reservation for a given stay, they'll get a confirmation of that reservation in their e-mail inbox. that's being delivered by sendgrid that's one example from our 82,000 paying customers, and a joint customer, and one plus one equals five because we believe

companies like airbnb and the 140,000 other joint total companies that we serve in our twilio family now, they're going to need ability to orchestrate communications, different ways to engage with their users over a myriad of channels e-mail certainly a important one. sms, push, messaging, we're excited about the combination. >> one of the things i'm possessed with is i don't know people realize how early we are and how big it can be. you're now powering more than $600 billion annual interactions each day i don't know how people have the computing four do it this is all on your platform >> well, we power such a wide range of communications for such a wide range of companies. if you think about it, every company is undergoing a digital transformation, and that includes how they engage with their customers digitally across a wide variety of mediums like voice and messaging and chat and e-mail and push and even new channels like facebook messenger

a whatsapp when you're selling to them, when you're marketing to them, when you're giving them customer service, delivering product, out in the field working with customer, these are all touch points where you use digital technologies, use software to make a great customer experience and twilio can make every one of those touch points better by incorporating great communications into the process. and what we're seeing is every kind of company needs this capability it's not just technology companies, but look, on our call yesterday, we had stanley, black & decker, we had ecolab, we had e*trade. it really does run the gamut of every company in order to win. >> do you think the analogy here, and i don't want the steal from j & p, i want to give them credit you're kind of like amazon web services for dominant cloud player, meaning that everyone writes for them.

everyone knows they have to do them but i don't know if there is an azure against you and i don't me if there is a google cloud against you. i think you have it yourself >> what is amazing about the platform play here, twilio can be used by developers at any company to use our platform to build any business problem they need to solve. and so that's the power of the platform business model that developers are now working at companies of every shape and size, seeing business problems that the company needs to solve and using software to solve it and when they do, they pick up twilio, and they use us as a tool in their tool belt to build better customer engage ment that's one of the things about this platform model. well can be used in so many different ways at so many different companies. >> samir, i want to bring you back one of the things i've been spending more time, it's one of the things i want to do much more in 2019 is talk about corporate culture, talk about sustainability, talk what companies do for the world both of your companies use 111

what did that mean when you integrate each other and please explain that to people this is a mission. i think i'm finally at the age i can talk about this stuff, because it's good for the world. >> it is so important. and frankly we took the pledge 1%, the 111 you're describing in large part because of a lunch that i had with jeff and he talked about how twilio did it, explained the process to me, what he did. and we just ran the same playbook, and we took the pledge before we went splb in november '17. so now we can double the impact we have in our communities we live as businesses, it's our responsibility to make sure we're doing good not just for our customers and our businesses be the communities around us we're pretty excited about combining. >> you guys are out there and 111 is common parlance in the east we think of 111 and that makes three detail what you guys are doing. >> the pledge 1% is all about contributing 1% of the equity value of the business of your

profits and of product towards nonprofits, people that are out there doing good in the world, helping their communities, and we use all of those things, dollars and products and time of our employees serving the communities that we live in and that we work in. and we just think that's really important, and that pledge 1% is all about giving back, because we've enjoyed so much success, we want to empower those around us >> well, congratulations to that one last question. e*trade is integral to many of our customers' lives, many of our viewers' lives what do you do for e*trade? it's not clear it's powered by twilio, but it's not twilio an e*trade person might be interested in owning shares in twilio what do you do >> yeah, i'll give you an example. if you make a trade and you're going to get a trade confirmation sent to you, maybe you get it over e-mail maybe you choose to get it over text that would be a great example of the kind of alerts and notifications that a customer like e*trade is using

twilio for the more you keep customers in the loop, the more you keep them aware of what's going on and make them a part of engaging with the company at every step of the way, every time something is happening on their behalf, if you keep them in the loop, they're more engaged they're happier. they call customer support less and you feel like they're working on your behalf e*trade is a great example of a company engaging with their customers every step of the way using these important forms of communication. >> i want to congratulate you gentlemen. i think this could be a great combo. i still don't understand why you're only valued at $13 millio billion. thank you to jeff lawson, the founder and ceo of twilio, sameer dholkaia and for those who do the 111 "mad money" is back in a moment. cnbc presents healthy returns may 21st join the top minds for medical innovation, smart investment opportunities, groundbreaking ideas that will transform the sector to attend go to cnbc

events.com/healthyreturns. register now for a special early bird rates one-millionth order. millionth order. ♪ there goes our first big order. ♪ 44, 45, 46... how many of these did they order? ooh, that's hot. ♪ you know, we could sell these. nah. ♪ we don't bake. ♪ opportunity. what we deliver by delivering.

♪ yesterday fashion week

finally came to an end only new york city could fashion week last for two weeks. but while the glitterati were going to runway shows and glamorous parties, wall street was having its own version of fashion week instead of sitting in clubs with supermodels, who would enjoy that we were sitting in earnings. try to stay up with this stuff wall street has a potential to be a lot more lucrative to your portfolio. so what did we learn during fashion week, aside from the fact that frills are apparently back in vogue this year, we have a much better idea of which apparel stocks are rock in 2019. which is why i want to walk you through them one by one, offer some color commentary. maybe think of me as say the joan rivers of the stock market except that i'm still alive and she still has better outfits okay here we go let's take them in chronological order, starting with the

fabulous ralph lauren. for years ralph lauren felt increasingly irrelevant, the preppy brand that time seemed to forget but in 2017 they brought in an executive ceo from of all places procter & gamble, their beauty business that's an unbelievable business. and they gave him the keys to the kingdom. patrice la vey is the man's name since then he has masterminded an incredible turnaround this guy is money. if you had any doubt about ralph lauren's comeback, la vie put them to rest up 4% with the company also raising its full-year forecast how many companies has been raising the forecast lavie has a five-year plan, and unlike some other five-year plans, stalin's, mao's, this one seems to be resonating with the consumer the goal he wants to bring in gnaw generation of customers by

reaching out to the interdigital yes, he is using digital marketing. i have his app it's fantastic and selling great products, especially ralph lauren's own direct to consumer platform. during the quarter they boosted by 18% a large portion going to the web where it can do the most good. and it's working when you look at the products ralph lauren highlighted in its holiday gift campaign, a third of the people who bought this stuff were new customers that's right never been to ralph lauren before and a sizable chunk of them were under the age of 35, the holy grail. it's huge. the company has an amazing roster of celebrities, social media, influencer, some of the people we say on the staff are thought leaders, not just influence leaders. nicole kidman, hugh jackman. he's a leader. alex rodriguez, lady gaga, along with a bunch of other famous people whose names i don't even recognize because i'm part of that demographic nobody wants anymore. not only is ralph lauren putting up awesome numbers, they're doing it in places you might

have expected business to be soft, like china this quintessentially american brand saw its sales grow by mainly 40% in mainland china, in part because they launched a new ecommerce platform for the people's republic in september, and it's blowing up. even a pure ralph lauren stock sells less than 17 times next year's earnings estimates. that's a little crazy. this should be probably around 19 to 20 i think patrice louvet is doing a great job. the two are working together in the stock and is a buy next up on the red carpet is capri holdings that's a company foymplly known as michael kors which includes jimmy choo and versace the stock got pummelled after the versace deal was announced in september a lot of thought they overpaid and then it go hit again after disappointing guidance in september.

but last thursday, the ceo john idle changed the narrative with numbers that were much stronger than november guidance had led people to expect so the stock ripped 11% on the news, jumping from 43 to 48. since then oddly, this one has pulled back to 44 and change as of today at these levels, capri trades at just nine teaimes this year's training i expect idle will tell a fabulous story about the future. i recommend picking some up before then. i really what's riley going on with versace, by the way they're really reinventing the brand. remember, he is buying older brands run by families he is really energizing them and this man is going to put up big numbers. who the had the biggest fashion faux pas this season this is a tough one because i like this company and the guy who runs it. it's tapestry, the artist formally known as coach. i guess when you're in this

industry you have to change your name they also own kate spade, wow, that did really badly. tapestry has gone from a single brand to a house of brands in recent years, hence the name change a little diversification but every time it seems like the ceo victor luis has gotten the story back on track, the story gets derailed. when they reported a week ago they missed on the top and bottom line and management cut their earnings forecast. he flat-out admitted in a really i'd say thoughtful and humble, i was going to say humiliating, but humble conference call he admitted he had disappointed people, especially the numbers from kate spade, although we said increasingly volatile macro and geopolitical backdrop as the culprit there are real issue here is and it's hashed not to see this quarter as an indictment of management's decision to shell out $4.2 billion for the kate spade business i hope he can turn things

around the stock needs to be spending some time in the penalty box now there are a couple other power plays that we have to talk about. even if they aren't what anyone would call high fashion, take columbia sportswear, mostly focused on outer wear. you know them as mountain hardware, piranah. we just had tim boyle on none of this stuff is particularly fancy columbia sportswear reported the single best quarter of any of these companies, yet columbia knocked it out of the park a 35-cent earnings beat after a $1.28 basis. no wonder the stock exploded on the news i am a big fan of what the ceo is doing here. they've got the right endorsements and influencers, remember i told you, that thought leaders, influencers and they make great products that customers love well, the stock isn't exactly cheap here we downgraded it because it moved to too much finally

something top of mind. canada goose, another outer wear play with a much more luxurious line of products every time it's cold, you see the thing. this stock has been a huge winner ever since it became public two years ago, but today canada goose flew south for the winter whenthey reported results that seemed fantastic. they had 50% revere knew growth. wall street was only expecting 36 wow. yet, the stock sold off dramatically, only closing down near 12% why? because management's full-year guidance was very cautious, implying a major deceleration in sales earnings i disagree with this whole presumption that that's really going to happen. i think they're being conservative i think there are other problems but the sellers sure disagree with me. i think the sellers are wrong. bottom line, after wall street's version of fashion week, you've got look at what's happening here we've got ralph lauren doing really well. this is total influencer we have capri holdings, thought

leader columbia sportswear, technical king, but you got to avoid tapestry for now because those numbers were downright ugly. and you know what? canada goose i think canada goose is interesting. some of these people know more than others, candidly. some of these people are -- whew, wow. if it's your wife, you can get away with that let's go to john in minnesota john >> caller: hi, jim thanks for taking my call. and a big minnesota boo-yah to you. >> i hope it's not too cold boo-yah. i was pulled up with byron cornell the other day. he said it was minus 20 degrees for a couple of days you know, your apple iphone does not work at 20 i want to point that out. >> that's about right. they say mars is even colder it seems. the stock is boot, boot barn. >> yes. >> caller: bought it at 30 she went down to 15. i saw that they're going to be expanding the stores now it's back up to 26 wondering if i should -- if i should keep that, hold it or buy more >> i am a disciple of matthew

boss at jpmorgan and he has convinced me, and they have come on the show twice that you are to stay on this one through thick and thin it's not a trading vehicle it's a long-term situation, and i like it very, very much. okay, guys look, it was fashion week and i had to give you the rundown. i really this one tomorrow, canada goose, some will downgrade it to outfit your portfolio with the latest fashions, i would stick to ralph lauren. capri holdings, columbia sportswear, we believe in boyle. got to beware of tapestry. sorry, victor. i know you're going get it right, but not yet it's just too soon much more "mad money" ahead. i got you the perfect valentine, trash! what's the dumbest thing a person might do? centurylink might off a clue and tonight's edition of the "lightning round." so stay with cramer.

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let's talk about consistency. this morning waste management, the largest waste disposable company in north america reported a strong quarter. there is a lot to like here. they gave you a 7% earnings beat with higher than expected sales,

up more than 5% year-over-year waste management is a high quality company that does better in an expanding economy. more commerce equals more trash. even though some suspect the guidance is a little light, but it cracked 100 let's check in with jim fish, the president and ceo of waste management to learn more about the quarter and his company's prospects. mr. fish, welcome back to "mad money. have a seat. >> good to see you. >> there is something i followed your company in various iterations since the '80s. i don't think i've ever seen it this consistent. you do talk about how it's a proxy for the u.s. economy, but it's a proxy times two you always seem to do better than the u.s. economy. >> i tell you, we did do better kind of t2 x the economy. that is the one that tells us whether the business is doing well it was 2 x this year next year -- well, next year being 2019, depending on what the economy does, it could be 2.5 times the economy.

>>y are the areas? i know you bought this the permean. somebody said on the call i guess the permean oil is down. can't be that good but you're in some areas that are red hot. >> the permean, when you think about it, it's landfall assets it's not way outside of our core it's not an area geographically we've been. >> right. >> but it is the core of our business, and we bought it well below our trading multiple so we're excited about that. we're performing well in efficient circumstances controlling costs. we've got to control sg & a and price and volume. >> the thing -- there are very few companies that pay out as much as you do 90% of free cash flow. that because maybe the fleet is powered by 60% of your own natural gas? it's because you have your costs under control. that's a phenomenal amount to return to shareholders >> it's obviously a combination of the dividend plus share we can always adjust that if we need to on share purchases but we don't feel we need to the business continues to churn

out good profits, and feel like let's return to it shareholders. >> you're doing some exciting things talk about this caterpillar remote operated equipment. >> that's a cool pilot we're doing right now. it's outside of denver in one of our landfills outside of domestic violence denver we're looking at what happens when millennials become the biggest part of the workforce. everybody is talk about it. >> right >> and they all play fortnite. >> and they all go to fire fest. >> exactly so as you think about remote operations of heavy equipment, which is what we're doing with caterpillar, you have got somebody sitting in a room that is remotely operating it, sitting in front of a bank of tv screens. it is similar to playing a game. >> it's joystick. >> exactly i did it i didn't do very well at it. >> that's pretty cool. i know you talk about the cost of drivers you said your third party, other companies had a hard time controlling costs. but maybe because of automation you seem to do better. >> they're passing some of it through to us. no mistake here.

transportation costs for us at our transfer stations are going up higher than inflation. it's our job to pass it through in the form of price increase at the landfills. we talked about that this morning. we've got to make sure we cost through that cost as a price increase to our landfill customers. >> speaking of millennials, why do they hate landfills so much >> i don't know that they hate them sometimes landfills get a bit of a bad rap. the landfills create a loft energy we're capturing that energy. it's part of why we're able to build these renewable plants, which have great returns to them it is interesting when you think about these landfills and the communities that have them, interestingly, those communities tend to actually like them they provide a lot of jobs sometimes we pay a fee to those communities. so they're good for those communities. >> whose buying our recycling, our news print now >> mostly the united states. >> wow >> it used to be -- it used to be 30% china. >> isn't that amazing? >> literally, 18 months ago, 30% of all our recycled stuff was

going to china and now most of it is staying in the united states. some of it is going to india a little bit going to china. some of it going the other southeastern asian countries. >> and how about our glass and our plastic? are we getting any better in this country it seems like until we come up with some regime that makes it punitive if you don't put it in the right place. >> right. >> we're still not good at it. >> glass, there is no shortage of the raw materials to make glass. and that's the problem with glass. glass, we end up losing money on every pound of glass that comes in there is really only one person that will buy the glass from us. plastic is different there is kind of good and bad plastic. there is the plastic bags that go through your grocery store. those are not good for our equipment. but then there is the water bottles, the soda equipment. those are good what we're looking for is what's a solution at the back end of our plants that can turn low value plastics into something productive >> why do you have to do that? why don't we as a country? >> i don't know. i think a lot of people are

trying, but it's a natural for us because at the back end of our plants, 25% of what comes out in the front door goes out the back door as trash basically to a landfill. so our concept is how do we make something better out of it and it's better for the environment, better for our economics. >> good you think about it because i know we're in a new generation here where i can speak to a department store and they say listen, our biggest worry is that our clothes are going to end up in landfills this has become a very -- very hot button topic what we make that ends in a landfill maybe should it be sustainable and you guys have to think about it all the time, i guess. >> well, we do there is a lot of material that comes into these landfills that could go to better use and that's what we're trying to do we talked about our sustainability farm in phoenix around our golf tournament a couple of weeks for it if the best place is the landfill, we do a nice job at the landfill if the best place is the

landfill, fine >> i've been to one of yours and gone the other guys. i know it sounds weird that you have nicer landfills, but i know yours are. if you have to go to waste management, it's a good landfill. >> we do a nice job managing our team does a great job with them but if there is material that would have a better use being recycled, then let's figure it out. >> that's great. i'm glad you're thinking of it meantime you keep making money for shareholders terrific work. i want to thank j-rich fish, president and ceo of waste management $100 today it's just been straight up "mad money" is back after the break.

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money. >> i say buy, buy, buy, play the sound. [ buzzer ] and then the "lightning round" is over. are you ready, skee-daddy? start with matt in california. matt >> caller: boo-yah, cramer thanks for taking my call. how do i play online game provider zynga >> it's a -- it's been a bad stock for a long time until very recently it obviously become an up stock. some of these others have -- they're exploding. so you can go with it, but it's speculative. let's go to dean in georgia, dean >> caller: hey, jim, this is dean from atlanta, georgia big boo-yah to you. >> nice to have you i don't about the show how can i help >> caller: thank you for taking my call. first-time caller, big fan. >> there you go. >> caller: all right i'm actually calling an an atlanta-based company. what do you think about global payments, gpm? >> oh, we like global payments. >> buy, buy, buy >> it's one of the big ones. we have to refresh and do more on payment space let's go to bubba in georgia, bubba?

>> caller: hey, jim, this is bubba from stone mountain, georgia. let me give you a ba-ba-boo-yah. >> well done boo-yah let's go to work >> i have a two fer. my ticker symbol is qtwo >> oh, man q two holdings that's another one of these software companies there are too many, i'm just going to say it for the record, there are see many virtual banking solutions, and i've got to be sure before i recommend them that they really do work. jim, i'm a retired dividend and growth investor. is it time to buy six flags on today's pullback >> i didn't like the pullback. i didn't like the numbers. i don't know i was actually -- i'm sure everything can always be assu e assuaged

you can get a better feel for it maybe the market was wrong but jim came here and i would not have expected the company did as poorly as id did. it's down 8. it yields 6 and i think it should i'm trying -- i think it was weak it was a suboptimal quarter, and maybe there were some ill-advised views expressed about the six. more work to do. how about dan in new york. dan? >> in from buffalo, jim. yes? >> caller: reinforce my conviction on avav. >> it's a stock that is heavily shorted and the bears go after it when it goes up i believe in it, but man, i believe it is hard and that, ladies and gentlemen is the conclusion of the "lightning round"! [ buzzer ] >> the "lightning round" is sponsored by td ameritrade what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that.

jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

when something looks like it's too good toby true, it probably is. that's my rule of thumb for companies with sky-high dividends. if you see a stock sporting a yield that's well in excess of what you can get elsewhere, well, i think you should be skeptical. most likely it's not a bargain it's a sign the dividend is going to be cut. look at centurylink, the old-fashioned wire line telephone company. i hate to tell you i told you so no, actually, i kind of like to say i told you so but a few months ago i warned you about centurylink because

the ridiculously high dividend wasn't safe. sure enough, last night the company did cut its dividend in half, even as management had stood by that payout in response the stock lost 13% of its value too. >> the house of pain >> for several years now i've been getting calls about the safety of this gargantuan dividend, because centurylink had the largest yield in the s&p 500. emphasize had. last night they slashed down to 1. that's a drastic move. they want to create value in other ways that are better and more sustainable to me that means we can't afford it anymore i'm not happy about this i would have loved to have been proven wrong about centurylink, but there is no way this company could grow and compete with the big boys while still diverting such a huge chunk of its earnings directly to shareholders since i told you to sale the stock has tumbled from 18 to 12. at the time it looked like it had an 11.5 yield, but as we now now, that yield was illusory

how did we see this come when a lot of smart people didn't simply here is the thing. in all my years in this business, i never heard a ceo, not once say you know what if things keep getting bad, we're going take a machete to that dividend. so if you own our stock for income, you're going to take a real beating never heard that once. instead it's more like what happened with centurylink where new ceo jeff story came in last may, looked at the trends that played out over the next eight months and then decide head could no longer support the payout i'm being incredibly kind and generous because i really only care we got you out of centurylink before the devastation. i did it by falling back on my rules. here is a company that lovingly talked about how much earnings before taxes, depreciation or ebitda was since they made that merge were level three communications they kept telling us about all the cost cuts that would bolster

their bottom line. the problem with that? there is only so many costs you can cut. i was more concerned about the continual erosion of centurylink's revenue stream same kind of erosion that is devastated the other companies in the industry. we saw the same thing happen to win stream, frontier, disastrous their stocks have been hammered so hard they're now too small to talk on air, but i said their names. i had to over the years, their ceo's repeatedly told me that their dividends were safe. but this particular past of the telco industry, this part of the telco industry, it's a dinosaur. their stocks gradually went lower as the revenue shank, making their yield seem more attractive management insisted that the market had it wrong and the dividends were safe. nope the market has it right. now centurylink does have a better balance sheet than its compadres. i think they're doing the right thing here in fact, if i were running century ling, you know what? i wouldn't pay a dividend at all. it need to find a which to grow,

otherwise it's a wasting asset like the other telco plays can they actually do that? i doubt. what matters is you can't rely on a company's executives or some of the better analysts who cover the stock to tell you when a dividend could be cut. you got to do your own homework. got to do it yourself. with centurylink, it was obvious to anyone with discipline that the sky-high yield was a red flag, even as many analysts failed to see it coming. some things are simply too good to be true, people and a stock with 11.5 yield, well, that's one of them stick with cramer. hi. this is the man that's going to check your eyes grandma. cognizant ai solutions are helping healthcare companies advance diagnostics and prevent blindness in patients with diabetes. everything looks good. you have beautiful eyes. ♪

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all right. nvidia, the stock is screaming higher tonight after reporting slightly better than expected numbers of both top and bottom line you understand i like the semiconductors, but i like to call the bottom. nvidia, i said over and over again, it's going to be a two-quarter situation. i like the always say there is always a bull market somewhere i promise to try to find it right here on "mad money." i'm jim cramer, and i will see you tomorrow

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