can you believe that i have a 20-year-old son? happy birthday, tim adami. devon energy, pete saw some options energy. >> see you back here tomorrow at 5:00 14th anniversary show 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 help make some money my job is not just to entertain, but to educate and teach you so call me at no. or tweet me @jimcramer. making money in the stock market is simply not that easy. this is something i actually worry about all the time

given that today, a session where the dow ended up, the nasdaq climbed 1.6%, also happens to be the 14th of "mad money" ♪ hallelujah i think this is a good moment to talk about the perils, that's right, the perils of investing in individual stocks, not the promise, but the perils. i know aren't i supposed to be the biggest proselytizer on the planet don't i want a stock in every pot and a high flyer in every garage absolutely not if you want stock market exposure, the best way to get it is with an index fund. an index fund, index fund and maybe another index fund when it comes to your retirement fund, put it in a nice low cost index fund i prefer one that mirrors the s&p 500. but individuals and individual stocks are still made for each other. and individual stocks do have certain advantages plus, i know you wouldn't be

watching if you didn't believe in owning some stocks with your mad money. hence the name "mad money. so i want you to invest that money wisely, because i think you're smart enough to manage your own portfolio alongside an index fund, okay i want that index fund to be primary. but i need you to recognize that the mantra here is not buy and hold it's buy and homework. if you agree with that mantra and if you do the work, i think you're okay to have some "mad money" sequestered over here on the individual stocks, as long as you have the index fund as the bulwark. however, i like to be as tough on myself as possible. what can i say i'm a masochist. that's why on this 14th anniversary i'm going to give you five reasons why it's so hard to make money in the market keep you on your toes and prepare you for the inevitable pain that comes with owning individual stocks. consider the five risks that stared us just in the face today. these have all snuck up on

people, making them queasy if the thought of them scares you, you might want to rethink how you invest your money. the first unseen risk, how about the grounding of the boeing 737 max? until the tragic crash a few weeks ago, the two things we knew about boeing, the stock was broiling with momentum because of tremendous growth and the heart of the growth was none other than the 737 max suddenly was great is now horrible what was strong is weak. the stock plummeted 49 points in a matter of days now you have to ask will boeing end up owing a lot of money to its customers, those airlines who were clamoring to buy more 737 max planes just last week. huge liability here, i don't know, are you able to handle that level of pain copping out of nowhere if not, you may want to stick with index funds i think boeing will ultimately get through this but in the near term, i honestly don't have a clue. it's become a battleground, and i dislike battlegrounds. more on that later the second unseen risk, the dollar stores.

dollar general, until today we found out that dollar general will have to spend more money to make less thanks to some important strategic initiatives that nobody i know saw coming. hence the stock's 7.5 decline in a single session after they reported their earnings. i think dollar general is worth buying down here, but i accept the fact that tomorrow we might get blindsided by one were to analyst who pull the plug, down the stock. if you own individual stocks, you need to be prepared for this kind of move, because sooner or later it will happen to you. it is inevitable j&j has terrific management. it has a fantastic pipeline of new drugs. perhaps the best balance sheet in the woshlgsd arld. but yesterday the company lost a lawsuit to a woman who is dying of cancer because she says she used j&j's talc. the company now owes her $29

million. j and j is appealing there are thousands of these lawsuit against j&j with the plaintiffs charging the company knew it was putting asbestos in its baby powder and still kept selling it, something that an investigation by "the new york times" and reuters seem to confirm. so you own j&j coming in for its tremendous health care franchise and it's the oldest sleep at night stock. but now you discover it's a stock where you can wake up to a verdict that calls the entire safety thesis of owning this stock into question. can you handle that? we now know there will be the possibility, rightly or wrongly for many more trial losses going forward. can you take that pain we own j&j for my charitable trust. and just today we debated whether we can handle any more agony. we're okay if it's just too much for you, stick with an index fund where your losses in the j&j may be offset fourth risk, last night i pondered whether the stock of facebook could be rede risk.

there is a thoon can go wrong, this morning "the new york times" reported that prosecutors are examinie ining facebook's d sharing deals. a grand jury has been convened wonderful. grand jury hearings are secret we can't get a comment so what happens? who the heck knows we don't know what's going to happen what's the crime what's the punishment? who knows. and if there wasn't enough, it doesn't help that there have been multiple days of outages on facebook's network of lately you ever hear of cbs having outages? after the bell, we learn that kris cox, the company's chief products officer and a real big important person is leaving. big deal, for real the stock sink further in after-hours trading. it looks like there is a lot more risk here than i thought. maybe it all stems from privacy concerns something i know that is a core value so to speak of apple they even put out their first commercial championing your privacy.

all i know is i wish facebook had shared that view if you're a shareholder, you do too. if you own stocks, you have to deal with lunacy from left field. brexit today someone asked me if you had to worry about brexit. i wish i had just said no. but the smartest guy in europe is breaking that the uk could experience a famine within five days after a hard brexit yet that won't be leningrad or the irish potato famine. but it's possible even after the big vote in parliament yesterday that made a hard brexit a lot less likely that we get something outlandish like that on the one hand, who wants to own stocks when we need to worry about food riots in london on the other hand, if the market gets hammered because of brexit, that turns out to be unfounded well maybe they take the deal. maybe they postpone it forever you may end up voicing some of that weakness to do some buying. look, i know you come here for reassurance. and instead what do i do i just gave you the equivalent

of the pharmaceutical adds that say that your gladler be stronger but here is 42 things that can go wrong if you use it. but that's okay. the bottom line is if you want to invest in stocks, you need to know the potential risks as well as the rewards you have to know what can go wrong, and if you're okay with that then stock pick, it might just be for you what a way to celebrate our 14th anniversary. here's to many more. let's go to george in vermont. george >> hey, jim. good afternoon i am calling about ali's stores. you hit it out of the park there in december. it's been a great call, a great one. >> thank you >> caller: my current quagmire is tloo grand observer on ol'ies highlight a few issues, store inventory track, what's on hand, operational shortcoming, rising competition. but then they get into their accounting and that's kind of where i'm wondering if it's time to ring the register they talk about percentage of the assets and inventories gone

to '22 they talk about inventory turns, 160 versus sears, 101, walmart, 36 and they talk about operating margins. i'm wondering, you know, kind of what your thoughts are >> here a any thinking about it. one of my favorite analyst has liked it for a long time we've liked it mark butler is a straight shooter. he is the ceo. we'll have him on and we'll go point by point and see what he has to say and then we can each make up our own minds. happy anniversary, cramerica thanks for sticking with us through the good, the bad and of course the ugly. on "mad money" tonight, has g.e. reset expectation for the stock? on our 14th anniversary, the ceo of the 127-year-old company joins me here tonight. then i'm introducing you to an upstart looking to improve our nation's trucking and border logistics industry don't mist my sit-down with private player transfix. first, car vanna i know you like this one it's bringing car buying back to

the critical mass. but how long can it walk the growth tightrope i'll give you my take. so stay with cramer. >> don't miss a second of "mad money. follow @jimcramer on twitter have a question? tweet jim cramer at #madtweets or give us a call at 1-800-743-bc ssomhingcn head to madmoney.cnbc.com. i consulted with your grandmother's doctor. we can do the screening at her house. hi. this is the man that's going to check your eyes grandma. cognizant ai solutions are helping healthcare companies

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show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. ♪ the hardest thing about picking winners in the stock market, or at least the thing that throws the most people off the scent is that you need to combine two totally different disciplines into one decision-making process on the one hand, there is the homework where we research individual companies to figure out whether the business is poised to do well going forward, right? fundamentals but on the other hand, you have to understand what's happening on the wall street fashion show, where whole sectors come in and out of style for reasons that have little to do with the actual companies themselves.

combining the business analysis with fashion show analysis is where it all gets tricky exhibit a, just look at the stock of carvana yeah, carva-a-r-v-a-n-c-a-r-v-a. the one based dealership is one of the hottest on the planet this thing is up a smoking 70% to date. up more than 6% over the past 12 months yet the stock is still down 17% from high last summer. that's how hot it got hit during the hideous fourth quarter market i bring this up because i made the mistake of recommending carvana on october 3rd, yeah, the peak of thing, but with a bunch of caveats like you should buy it gradually on the way down it was at 54, and i thought it was too good to ignore into any additional weakness. of course the darn thing plummeted down to 28 bucks right before christmas even as the story kept getting better and better. since the bottom, carvana has made a remarkable recovery it's now back up to 55 you know the craziest part two weeks ago the company

reported what i have to tell use was a fairly if not fairly disappointing quarter. >> the house of pain >> yet its stock roared up 7% the next day before tackling a monumental 7% again so far this week, despite the total absence of news. this is what i mean about the homework versus the fashion show when carvana was going great during the fourth quarter, nobody cared because that was exactly the kind of high flyer growth stock that money managers were ringing the register on now that carvana is back in style, it's so hot that it can scream higher even on not so hot numbers. so what the heck you supposed to do here with it? i admit i don't are the best track record on carvana, but we try to learn from our mistakes on "mad money. and i think we have a better read on the story now than we did five months ago. first, from the perspective of growth oriented money manager, carvana has a great growth story. it's disrupting the used car market you buy your vehicle online and it's delivered to you or you go

to one of their automated garage like i've seen one. it's a huge vending machine for used cars. that's where you pick it up. nobody likes buying a used car in person, do they compared to a used car salesman. [ booing ] >> it genuinely hurts my feelings and i have a thick skin they let you do your shopping online, giving you a tremendous amount of information on your website, and every car they sell comes with a seven-day return policy, like a week-long test drive that is a brilliant concept. and the growth has been incredible as carvana continues to expand across the country, making its used cars available in more and more markets last week carvana teamed up with bank of america to offer a digital streamlined car buying process. you can buy carvana vehicles from a bank of america platform and apply for immediate financing. there is still a lot to like, although lately we've gotten some real question marks here. more on that in a minute the problem here is that the stock is insanely wild trader. it seems to have come unglued

from the underlying fundamentals when carvana reported a truly fabulous quarter, the stocks spiked 11% on the news it quickly gave up all of the gains the next day before slipping lower later in november, the company held an analyst meeting that was very well received, yet the stock barely budged. the beginning of december, carmax, which is a more traditional used car dealership, announced some new omni channel offerings, including delivery and carvana stock. it got crushed it went down 10% in a single day. put it all together, though, and this is yet another high-flying growth stock that got crushed for no particular reason during the fourth quarter, just like the cloud kings. also like the cloud kings, carvana has come roaring back since the beginning of the new year as the stocks respond, the bears have gone on the attack. carvana has been hit with skeptical analyst coverage a month ago the short sellers at spruce point, we've heard from them before, published a scathing report predicting anywhere from 50 to 70% downside in the intermediate turn and

100% downside long-term. 100% they called carvana a used car dealership masquerading as a high-tech growth business and claimed its rapid growth has been, i quote, built on smoke and mirrors. why carvana's most unique quality is it appears to make an attractive profit on suba uto loans. they go on to say without the provision of attractive financing on uneconomic terms, the economics of the business would collapse, end quote, wow fast forward to two weeks ago when carvana reported its latest quarter and the results were flat-out disappointing their guidance was a bit of a bummer, with management forecasting 3.4 to $3.5 billion worth of sales, wall street was looking for 3.55 along with a wider than anticipated loss uh granted, they're still talk about 6% revenue growth. but normally when a stock runs

up in a not so hot quarter, it ends up selling off. even the bullish analysts know these are suboptimal numbers and may need to raise capital this year yet carvana rallied more than 7% on the news. it got another boost last week when tesla announced it would close most of its physical locations and start selling cars online which was taken as an endorsement of carvana's business model put it together and this has been a juggernaut. up 6% in the last month that is too hot for this guy the bottom line, when carvana was reporting great numbers in the fourth quarter, the stock was going down, it was a fabulous buying opportunity. now, though, we keep getting what i consider to be bad news, bad news, bad news a disappointing quarter. the stock keeps going higher at these levels, i say -- >> sell, sell, sell! >> marshall in virginia, marshall >> caller: hey, how you doing, jim? >> i'm doing well. how with you >> caller: i'm doing great uva won. >> i'm thinking about taking uva to go all the way.

i'm glad you mentioned that. >> caller: yeah, i'm picking it. is that a good stock right now >> i'm not going recommend ford. they're such a show me situation. they absolutely, absolutely, absolutely have to put up two good quarters before i'll even think about recommending it to my viewers when it comes to car van narcotics you had a great buying opportunity in the fourth quarter. right now, though, i think it is a -- >> sell, sell, sell! >> g.e. called 2019 a reset, but how does he plan to turn the thing around he joins me here tonight then the trucking industry is considering the backbone of the economy. i'm finding out how one private player is driving innovation in the space. and competing with uber at the same time. or at least uber freight and with all eyes on boeing following the grounding of the 737 max planes, how should you approach the stock i'm giving you my stake. so stay with cramer.

♪ wow. on our 14th anniversary show, do you really think we'll just do any old regular show no here's what we're doing tonight. we've got larry culp larry culp is the new ceo of general electric we've got to ask ourselves is this it? is this the turning point? earlier today g.e. issued its long-awaited guidance for 2019 and beyond the near term numbers were far from good. the recent analysts meeting and the stock got hit. but then culp started talking on the conference call and wall street liked what he had to say, as did i g.e. ultimately closing up 2.8%. i don't know could it be a bottom i'm not sure about the longer term forecast, but this is a huge story and it deserves a much closer look let's check in with larry culp

>> happy anniversary. >> i could not resist. we wanted someone big for this one, and we got the biggest. i am rarely asked more about a company than g.e and it's never what you want to be asked it's can they make it. what was your message today? >> i think our message is pretty simple i think our strategy is clear. we want to strengthen the balance sheet and set our businesses up to play and win. '19 will be a reset year but if you look past '19 to '20 and '21, we're going to be in a better place >> okay there is a group of people who watch the show, they own g.e. and there is probably own more g.e. than anybody else's show. and they hear the term "reset" and they don't know what that means. for all they know, it's like a video game term. what does reset mean for tavern person out there >> i think for the average person, particularly anybody who holds our stock, they know we have a host of issues. no shortage of opportunities, but we have a number of problems we need to work through this

year what reset means, jim, this is the year that we share with the world what those issues are. and the plan that we talked through today as to how we're going address them it's going take some time, and we won't be finished come new year's eve but if you give us a little bit of time, we'll i think make a lot of progress. >> now when the average person hears that, i think the first thing they say is hold it, you say it's not going to turn any time soon. why the heck should i hold on to it or even buy it? >> well, that's a personal investment decision. >> true. >> and i have never hawked the stock. what we're going to try to do frankly is share with people in as transparent a way as we can what those issues are, at the same time what the opportunities we see in the businesses are and the plan that we have. but it will take time. and we don't want to sugarcoat this this is not a quick 90-day half year fix this is going to take a while. we are where we are. but we'll get through it >> i want people to know at home that larry is an outsider.

that's a very significant thing because g.e. historically hired from inside. as an outsider, what have you seen and can you tell us how things could have gone so awry in a tremendous economic expansion? >> jim, i'm an outsider. i spent 25 years at my former company. but it's a company i've studied. it's a company i've learned a lot from, albeit from the outside over a long period of time so i come with a little bit of perspective on the company what have i found? i found a very strong team this team has been through a lot. but i think it's a resilient, certainly a capable team that knows where it is and wants to do better. have i found customer relationships the world over like i've never seen before. a lot of that comes from the fact that we not only sell big ticket equipment, but we live with our customers and that equipment over 10, 20, 30 years in supporting the equipment and frankly, the technology that undergirds those relationships is really quite special. >> okay. the technology for aerospace is

second to none there isn't anybody who would disagree with me at the same time, boeing just had some serious issues involving safety we don't really know the source of it. how long can boeing have 737s grounded before we have to start worrying about the best division you have, aerospace? >> right jim, i think our focus, like being's, has been on safety here in the wake of the tragedy in ethiopia it struck close to home for us at g.e. not only because bowing is a ski partner in our relationship or our joint venture with saffron we lost two of our own people in that tragedy i think we're doing all we can to work with boeing, saffron, the ntsb, the authorities on the ground in ethiopia, in addition to the airline to get to root cause. but other than, that it's really premature for us to talk about what impact may fall from this on our own businesses. >> now when you came in, obviously you had been on the board. there was a perception that

maybe earnings risk. at one time we heard a number $2 obviously that didn't come true. it turns out the balance risk is equally as important you made some moves already. i thought they took care of a lot of the risks there are some critics, some analysts we all know who have been saying you know what? not so fast, jim you may think that it's great that he sold this division for a fortune, but what really matters is you're not thinking about long-term care issue, and you're not thinking about power issues, and that both of those present a real risk to the bonds which therefore can translate to the stock. true false? where do you come out? >> i think you, like me and i'm sure many others who follow the story are thinking about all of those issues there is a reason we talk about our number one strategic priority been restoring the balance sheet to a better position we've been very clear about our intent to reduce the leverage on our industrial balance sheet and at g.e. capital. i think we're making good progress in that regard.

we'll have the better part of $40 billion of proceeds once we get to the other side of our sale of our biopharma to danaher, the modernization of our stake in baker hughes, and the web tech merger that just closed. >> right there. >> is a lot of capital there that we're going to be able to put to use to bring down to leverage on the industrial balance sheet. work on the capital side in a similar fashion. we have $10 billion of dispositions to continue to bring the leverage down. but this is something that is going to be a long time in coming because those transactions will play out during the course of the year. the issues you referenced in power are ones we're going to need to work through, and long-term care, as i think many people who tuned in to our teach-in last week understand that that's a real obligation on our part, but one that we'll see through over a long period of time >> you made things far more transparent than what i'm used to from g.e., whether it be the way you describe different

divisions, 16 words per each, which i love the way you do accounting looks like a lot of other companies, but it does come out, particularly the presentation you made today was kind of stunning about how power has so many problems. and we all knew they were problems the first thing we have to do is you talk about let's give them a name, a fantastic letter but now we have name, and we come back. i find it daunting gee, i hope the decline in orders doesn't continue you. seem to think there is light at the end of the tunnel. how do you know it's not an oncoming train >> right i think what we've tried to do is embrace reality of power as best we can. we've broken down the root causes we think it's actually pretty simple not easy to solve; but i think easy to describe we were clearly late to recognize the downturn in the gas turbin demand. >> can i erupt you to say it's not fair to say we i know you care about your team and you're filled with team. but that was not your call i want people to know that

>> well, i appreciate that but i'm on that team now >> fair enough >> so i weight it as we. so going forward, we know we have to adjust our cost structure to deal with that. we know that there are a number of inheritance taxes if you will in the wake of the alston transaction that we need to tend to and frankly, for the last several years, i think even the team would admit we've undermanaged this business we can adjust our cost structure to deal with current market demand we can derisk our outlook by relying more on backlog and less on future orders the alston obligations are what they are they will tail off over time and we're working very hard on a daily basis to run this business, which i think is still a good business better >> you mentioned alston several times there. there is an article in "the wall street journal" today saying that g.e.'s leadership knew much earlier that the power segment had problems now, again, that is not you. but i read this article about

good will, and it seems like well, something is wrong here and someone should be held accountable for that >> well, i've read the article as well, right and i think we do have issues in power. i think we're in the boardroom prior to last spring well took on the role 5 1/2 months ago i can't really talk about what i knew at the time if i look at 2018, i knew this was a bit of a fluid situation even inside the company, as we were i think getting our arms around that reality. with respect to the accounting, the accounting around the alston merger is complicated. >> okay. >> not only because the headline price was what it was, but remember, we also committed to a number of joint ventures, and we took on some other liabilities so i don't want to get into the bo bowels of the accounting, but thing is a rationale there which we've tried to explain in our disclosures. but it is clearlying in under

review and we'll work with the regulators to see that through >> sunlight is the best disinfectant, as justice brandeis said. i do feel we have to make this comparison between the s&p 500 and what g.e.'s done now you came in and you've bought -- you've bought more than $2 million on the stock you're up on the stock congratulations. that's good. you have a pay package which incents you to get the stock back to 31 before the decline really began what do we tell people listen, we know you've lost money. we know this is a difficult situation, but this gap can turn and not because the s&p goes lower. >> jim, again, i don't want to make stock recommendations. >> i know. i'm not asking you to hold people's hands do you regret where you took a pay package where you make up to 7 million shares at 31 >> jim, i have no regrets. i've had a blast the last 5 1/2 months being with this team, with these customer relationships and all that we do

for our customers,all we have under development from a technical perspective there is a lot to do here at g.e. i hear from shareholders i hear from employees, from retirees, all sorts of folks who have really born a deep and personal financial pain given what's happened to the company the last several years frankly, that's been part of my own motion to take this on, to try to make this right for the people on the payroll and the people who are very much a part of the g.e. family, and all we can do is, again, embrace the reality that we have we have opportunities. we certainly have some problems. it will take us a while. but if people give us the benefit of the doubt, i think they're going see improvement over time. it is sustainable and should translate into the value for shareholders >> because of your fabulous work at danaher, which is one of the most remarkable tenures a ceo ever have, you deserve the benefit of the doubt i will tell you i believe -- i can't speak for the american people i know better than to do that. but there are tens of millions

of people who are pulling for you to bring this thing back to where it was and then some i want to thank larry culp, chairman and ceo of g.e. and thank you for the nice comments about our 14th anniversary. stay with cramer halftime report, weekdays noon eastern on cnbc ♪ (butcher) we both know you're not just looking for pork chops. you're searching for something more... ...red-blooded. right this way. you thirst for adrenaline, you hunger for raw power. well, you've come to the right place. the road is yours, dig in.

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the past year we've been hearing the same thing from company after company. america has a shortage of truckers between the explosive growth of online shopping and the new safety regulations that make it so existing truckers can't spend as much time on the road, we don't have enough drivers to keep the system running smoothly but maybe the trucker shortage is just the symptom of a broader problem, the fact that we have such a confusing poorly managed, and yes, inefficient logistics network in this country. lately a bunch of companies have been popping up with potential solutions here which is so important for our economy. tonight we're going off the tape to hear from one of them, the privately held transfix, the business of matching carriers with freight still mostly handled by phone, by e-mail. transfix uses machine learning to help its customers cut down on waste by routing trucks more efficiently. they streamline the data of all shipments on to a single platform, allowing their clients

to make more profitable decisions. let's take a closer look with co-founders drew mcilroy the ceo and chief technology officer to learn more about their company. gentlemen, welcome to "mad money." >> thanks for having us. >> drew, let's just paint the picture here. >> sure. >> every company seems to be moaning freight, freight, freight, freight, freight. why hasn't anyone been able to fix it and why don't they call you and get it better? >> that's a good question. we like to think we're doing a really good job of fixing it now and have been for the last five years. there is something in the neighborhood of 65 billion miles driven empty by trucks just in the united states every year >> well, but you're a technology officer. to me, it would seem that even before the web, these consumer package goods companies say listen, i don't want you coming back unless you have something in that truck. >> it's a complex problem.

there is a giant microlevel problems where shippers don't talk to each other, carriers don't talk to each other, and nobody in the middle right now has been able to figure it out, until us >> how much of this problem is because people will tell you autonomous drivers and they'll be out of a job. how much is because people don't want the job, or you're not being paid enough? and how much of it is there is so much business, we can't possibly have enough people? >> for us, it's not just are they paid enough, not paid enough are there asset utilized enough? that's where most of our algorithm is built for at the end of the day, we're accountable to our shippers to match their freight where the best possible truck out there for them and that's what we do. >> so we know from when we had drew on, we spend a lot of nice quality time with uber freight. >> sure. >> and they use obviously the same technology as uber to be able to find drivers

and one of the things we learn is that there are many people who are disenfranchised from the business who want to be truckers is this another way for people to get into that or is it matching the cargos, matching the truck? >> ultimately, we want to empower whomever wants to be a truck driver historically, truck driving can be a fantastic profession. you can earn a premium over local jobs and there is lots of great things historically, or in the last 20 years it has been a very difficult lifestyle. the ability to both drive quantitative ori as well as qualitative life improvements we think makes the profession that much more attractive and as our market plays begin to scale and gain the traction that we've got, we see people saying i would love to get in this business how can i sign up. >> that doesn't make sense to me you're saying that not everyone has heard there is a truck shortage it's just us guys on wall street >> you'd be surprised. i think to say there is a truck driver shortage is simplistic.

when things don't work properly, people are we need more trucks which seems fair until you dive into the math of it. again, maybe there is not enough truck drivers, but there is not enough utilization of the trucks we have. if we can take that 35% of empty time and empty miles and put it back into the network, in fact, it may be sufficient to the point where these guys can start to generate that much more income by having that many more miles loaded and hours on the clock as opposed to off. >> how much of the problem is amazon >> i don't think -- >> in terms of volume that you didn't have, say, ten years ago. a lot of volume. >> that's a lot of volume. i mean, just mobile technology and the way we've consumed like -- as a society, we've changed -- we've changed obviously we order a lot more online, and that has increased the volume of goods we need. but we would have got those goods either way at a warehouse. eventually at a store.

i don't think it's a major shift in the economy >> okay. one last question, drew. >> sure. >> a year from now, will freight prices be lower? >> that is the goal. there are two ways to think about. there is certainly natural fluctuation in the price of freight depending on supply of trucks and the supply of load. so there is certainly market fluctuations in there. but as we continue to drive out waste and drive more utilization to the drivers, we find that the rate on a per mile basis actually continues to go down. >> all right >> if you can make the drivers more money and lower the costs of goods going to shelves, that's a win for everybody >> that's exactly what we want that's what we want for america. okay that is drew mcelroy and jonathan salada, the chief and technology officer of transfix freight matters. it's why you're paying more money at the store "mad money" is back in a minute. duncan just protected his family

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-it's our confident forever plan. -welcome to our complete freedom plan. -it's all possible with a cfp professional. ♪ -find your certified financial planner™ professional at letsmakeaplan.org. "lightning round" is sponsored by td ameritrade it is time it's time for the "lightning round. say the buy, buy, buy, play the sound, and then the "lightning

round. are you ready, skee-daddy? it's time for the "lightning round. walter in north carolina walter >> caller: boo-yah, jim. >> boo-yah, walter. >> caller: from north carolina >> all right >> caller: thanks for taking my call >> of course >> caller: i watch your show for every night, and have for many years. >> thank you. >> caller: i have a large holding in bank of america shares and a big profit. my question, should i sell and take the profit? >> no, it's too inexpensive. thank you for the kind comments. if it comes down, maybe buy more it's too good of a company to let loose at these prices. how about thomas in california thomas >> boo-yah, sir. >> oh, thank you for serving what's up? >> caller: i just wanted to get your thoughts on yy, sir. >> yy? no i like to call him yy. i don't like the stock yy. it's a chinese company i like to say of indeterminate earnings let's take a pass. gary in texas, gary? >> caller: hey, jim.

a couple of months ago i bought some okta, with my mad money hold it? >> i think they're a great company. if you're up really big, no one got hurt taking a little profit. but okta is a great company and good for the long-term eddie in florida, eddie? >> caller: good afternoon. with you since the "kudlow & cramer" days. >> there you go. >> congratulations on your anniversary. >> thank you very much >> calling about a biopharmaceutical company. they had some great news recently the stock was doing great until goldman sachs caused a small generation on the stock at $134 a share. since then, it's been killed on a daily basis, despite many upgrades er is -- serepta therapeutics. >> i like them that stock is in for heavy selling, but i like the company. i'm not going to back away from it let's go to malik in virginia.

malik? >> hey i'm wondering about the future of wendy's >> wendy's stock has been acting okay the management is there, is good we had todd on several times. >> buy, buy, buy >> i think it's a good situation now. fast food has not been doing well mcdonald's hasn't been going up. but i think wendy's is fine. how about greg in texas. greg >> caller: hey, cramer first time caller, long-time watcher. >> okay. >> caller: it's about adt. i bought it at $7.05 it's been going down tremendously over the last couple of days they've got good revenue growth, great cash flow. what do you think? >> no, i'm not a fan i think that aet is bad ever since. they technologically be completely blown out of the water. don't touch it let's go to steve in florida steve? >> caller: boo-yah, jim. >> boo-yah, steve.

>> caller: nrv >> you know, it's one of those, it's a residential we have no idea what they really own. i'm not going recommend a stock like that. that's the kind of stock a yield is very high, but i'm not going to go there for that one i'm philip in north carolina philip >> caller: hey, jim. how's it going >> not bad how about you, philip? >> caller: i just have to tell you, at the end of the day, i'm going to put you in the same sentence as peter lynch. i know you pooh-poohed it at the sometime. >> you're very kind, peter lynch, the great investment from fidelity where i made a fortune with magellan. thank you so much for the kind words. how can i help >> caller: so about six or seven years ago i took your advice on bank stock and i did very well i took my money out and i'm playing with the house the only problem is i have bank of america too what do you think fibk >> well, you know, it certainly

is cheap enough. the bank stocks have been houses of pain. i cannot tell anyone to get into a house of pain. it only yields 3 it's too low and that, ladies and gentlemen, the conclusion of the "lightning round" [ buzzer ] >> the "lightning round" is sponsored by td ameritrade free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪

♪ stock of boeing has become a

battleground, and i hate battlegrounds. what defines a battleground stock? in boeing's case you have bulls saying it's a screaming buy with a stock down more than 70 points from the high. you have bears that the darn thing is still up 15 cents the company may end up owing fortunes to the airlines that are losing money thanks to the grounding of the 737 max after the two tragic crashes who knows? i see many analysts trying to make coaching points about boeing because they cover it, they have no choice but to offer an opinion it's their job but those opinions are all over the place, which tells you no one has much of an idea of what will happen, and certainly no conviction some say it will be a three to six-month problem. i think it's an indeterminate problem. we don't know what's wrong we don't know if anything needs to be fixed. but if it does, we know boeing will take care of the job and do it right if it takes six months, that's the cost of them and cash flow, what is it i don't know now that the most popular aircraft is grounded, what will it cost? what reparations will they need

to make to airlines like southwest? the truth is again, nobody knows. but here's the thing that's okay. you don't need to opine on everything even i don't ♪ need toe pine on everything, and opining is part of my job description. if you put a gun to my head and asked me what to do with boeing stock, i asked you very politely put the gun down, because at the end of the day, i don't know what to do with boeing here. and as a general rule you should steer clear of battlegrounds like this one unless you have some very strong conviction that the battle will go one way or the other, and i don't know how anyone could feel that way bowing is a question mark. why would you buy a question mark the whole universe of stocks, there are plenty i want to recommend very badly for example, michael dell traced out a vision for dell technologies i was blown away how good it was. this is the opposite of a battleground there is no bear case to speak of aside from the fact that company has more than $50 million in debt. wait a minute. when you look at dell's cash flow, it's running around $10 billion and it only gets

stronger going forward plus, the company has $24 billion in deferred revenue, which makes it even more appealing you. take the balance sheet boogie man away, which i'm telling you should, you have a stock trading at less than nine times's earning stimts ridiculously cheap, especially when the company is really crushing it here, especially in the enterprise space, big companies. michael said 99% of the companies in the fortune 500 use dell that's an mazing market penetration. dell has no bear case aside from the balance sheet and i think that's overblown boeing has risk unquantity official at this moment. thanks to the secular growth of the internet of things and the cloud, boeing as a major cyclical component that can be hurt if the economy keeps slowing. suddenly it's very possible if we don't reach some kind of deal with china it seems like an easy call, right? sure but there are no analysts who cover both dell and boeing they're specialized based on sector they can't recommend something outside of the wheel house be we don't have that problem here

remember, there are no called strikes in this business that's some genuine homespun warren buffett wisdom. so keep your bat on your shoulder when it comes to boeing but as for dell, you know what i'm doing on this, our 14th anniversary? i am green lighting you to take a big swing. it's a fat pitch, and have i faith you'll knock it out of the park stick with cramer. cramer, your are awesome. >> thank you for inspiring me to get in the game. >> i want you to know that you have a transformed me. thank you, cramer. excuse me, where is gate 87? you should be mad at non-seasoned travelers. and they took my toothpaste away. and you should be mad at people who take unnecessary risks. how dare you, he's my emotional support snake. but you're not mad,

because you have e*trade, whose tech helps you understand the risk and reward potential on an options trade it's a paste. it's not liquid or a gel. and even explore what-if scenarios. where's gate 87? don't get mad. get e*trade and start trading today.

happy 14th anniversary, you maniac i always like to say there is a market somewhere i promise to try to find it for you right here on "mad money." i'm jim cramer cile 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." ♪ with a product inspired by his daughter. ♪ my name is travis perry. i'm from dothan, alabama, and i have invented a product that allows you to play the guitar instantly. put that finger there, okay. now strum the bottom four. ooh.