don't go anywhere. "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 my job isn't just to entertain but to teach you call me at 1-800-743-cnbc. or tweet me @jimcramer today the analysts threw everything they had at the stock market they made a concerted effort to get you out while the getting's

still good and what happened? despite the downgrades we had a mixed session where the dow dipped 84 points but the s&p advanced 0.1%. nasdaq gained 0.19% after opening much lower do not get me wrong. stocks have had an incredible ride here so most of these downgrades seem well reasoned and action oriented to me. but are they right now you know my mantra bulls make money, bears make money, but hogs, well, hogs, they get slaughtered i don't want to be too greedy and that rule has never gotten me in trouble so we need to take these calls seriously. we always should focus on downgrades they can be very meaningful. so let's start with the big one of the day let's start with general electric this morning, steve of jpmorgan, one of my favorite analysts, the man who got you out of ge 18 points ago took the stock from a hold to a sell and truth, he's been consistent in disliking

this one for ages but having a hold on it implied that maybe he thought its next move could be higher after today, when he cut his price target from 6 to 5, well, you know, he isn't about to go positive on this baby. his argument, he's saying people are too bullish and there's a lot of things that could go wrong, especially if we go into a recession. he's concerned that investors are taken with what ceo larry cull p is trying to do but enthusiasm has morphed into too much optimism, it's misplaced. ge still has structural problems and its horrific long-term insurance policies this was an opus, an opus dedicated to telling you to sell ge i like what culp is doing. when culp came on the show, i don't know about you but i think you felt like a breath of fresh air. i believe in his plan. i think 2019 is a reset year and 2020 will be when we get real earnings progress. that's the polar opposite of his

thesis he says the problem are too great. he's got nothing against culp. nothing. it's all about cash flows, most of it's well reasoned although i take issue with his assertion that ge is not accounting for its aviation cash flow in a realistic way, making the picture too rosy i thought that was out of school he could be right so he's making himself right but if culp engineered another brilliant sale like he did by off loading this life sciences you might want to be a buyer look, how many times can i praise that guy, but you know what long-term, i'm getting on culp next, there's boeing boeing this morning got hit be a brutal downgrade from bank of america which took the stock from a buy to a hold the dow jones average stayed while the s&p and nasdaq rebound. i found this to be a compelling piece of research. why? okay, to me, a good piece of

research is ahead of the curve i like it when analysts slash numbers before the come padres they argue there's no quick fix to the safety issue to bedifl wh devil what used to be boeing's most popular plane boeing is making production cuts which is going to hurt earnings and cash flow. they said they hoped we would get a 3 to 6 month delay, now it's saying 6 to 9 months and more importantly the company will only produce 42 of these planes per month the essence of the downgrade was simple boeing's going to have a big down year because of this with the company preps earning $11.80 per share, down 26% versus last year now that does hurt money managers really don't like to own the stocks of companies with shrinking year over year earnings regular viewers know i'm a big boeing supporter but this

downgrade has gravitas and with the stocks still up 16.8% i think ringing the register here does make sense as phil lebeau told us, production cuts are the biggest indicator about where the stock is going there's fallout from this boeing thing all over the place the one i care most about is southwest air, simple luv, which raymond james called out claiming there's near term earnings risk because of their 737 fleet. the estimate cuts are meager they cut from 445 to 440 for this year. that's barely even a trim. to me this is the kind of downgrade that makes you want to buy another airline, maybe one with less exposure to the 737 max, maybe american, maybe united continental how about micron here's a stock that has been constantly downgraded of late. micron supported a weak quarter last time around the company cut production and talked about reducing inventory. yet since then, the stock's been on fire and it's now up 35% for the year with a belief that perhaps what's going to happen is if you cut back on

production, inventory goes down and maybe prices can go up again so today, callan slammed it with another downgrade. the gist, even though micron cut production it won't bhart because there could be another decline in pricing next year, a lot of bulls are predicting a bottom in this business but callan thinks they're getting ahead of themselves. now this isn't exactly a fresh take the analysts have been fighting the recent run both tooth and nail they keep arguing that we've got more number cuts ahead cal um's saying mike's goicron to earn 487 next year. that's a big decline if they're right, you need to sell this stock. the thing is, i don't think it's right. i believe the economy is going to get stronger which will bolster micron's bullishness and their business as well as the buildout of 5g wireless networks all over the world and i tell you, stick with micron because of 5g but i like nvidia even more, why? well, i like nvidia because its chips are actually proprietary

so you got a lot more protection from potential kpoet fors. micron does have to deal with a resurgent samsung. then there's clorox. today jpmorgan took a big swing at clorox, downgrading it from a hold to sell, sell, sell before we dig into this one, let me say that clorox is an extraordinarily well run company with ben at the helm however, jpmorgan believes the consensus earnings estimates are too high so they're cutting numbers because clorox will get less benefit from its price increases going forward. analysts cut their earnings to 626. that's not necessarily a big deal except the consensus is it's 632 and these are safety stocks so are they right clorox has already pulled back from 157, 153, stock goes any lower it can report an earnings disappointment like jpmorgan's looking for and the stock might just barely blink. finally let's talk about one that didn't have any impact at all. ubs took starbucks from a buy to a hold this is a victory downgrade. the analysts rode the stock up

huge and now they argue the good news is baked in. this is a pigs get slaughtered piece of research. in other words, you don't want to stick around after such a big win. i can't criticize that attitude. thank you. starbucks comes back in, buy it in a week. here's the bottom line today we got some powerful downgrades from analysts who can't be as positive as they were logical even if you disagree with them, it's still worth considering what the bears have to say if only so that you're prepared in case things go wrong. and you know from "mad money" that you should always be prepared for things to go wrong. john in florida, john. >> caller: hello, mr. cramer, thank you for taking my call and i just love your show and go, virginia cavaliers tonight >> there you go. i like that. >> caller: in the big game hey, i have my question, though, is regarding viacom and cbs. i'm a long-time viacom shareholder and have a little

bit of shares of cbs and can't believe how cheap the stock is for viacom with the price earning of 7.9% and maybe paying a dividend of 2.7 it seems to me that a cbs-viacom merger should be a no brainer, especially with talks that there could be up to $1 billion of cost synergies what is your view? >> john, i could not agree more which is why viacom is a huge position for our charitable trust, which you can follow along by joining the club. we got a call on friday at 11:30 and i'm going to say exactly what you said. i may even borrow it from john in florida because that's exactly how i feel i think viacom's the cheap one just in case because i think they're having a good quarter anyway peter in california. >> caller: hi, jim >> peter, what's up. >> caller: thanks for taking my call hey, i bought ayx stock in january this year for about $71. >> nice. >> caller: now it's around $80 in the last two weeks, it's dropped every day a little bit, little bit and i know it's been on quite a

run since january. and i heard there was an acquisition last week. what can you tell me about the acquisition and would this be a sell or a hold position? >> no, no, we really like it and it's just a small thing. they bought a little artificial intelligence but we think it's terrific now all the high multiple stocks have come in, that's a classic high multiple stock, i think you hold on to it and if it really gets hammered, maybe you buy a little more. and thank you for the call today we saw some powerful downgrades some, i agree with, some i don't but i do urge you to consider the bear cases if only just to challenge your mind. on "mad money" tonight, don't believe the "wall street journal's" doom and bloom headlines. i'm pointing out three stocks that could be the primetime to buy. apple, nvidia and mccormic are all stock staples but how have they bounced back? we're going to do a case study as more universities turn to offering online degrees i'm

liking one company pioneering the trend that's cashing in on it so today with cramer >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc ss something head to madmoney.cnbc.com. -i call it my comfortable future plan. -it's our confident forever plan. -welcome to our complete freedom plan.

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♪ this weekend, we got another terrifying lead story in the "wall street journal." i'm going to give a quote here expected earnings pull back sets up big test for bull market. this piece is designed to frighten you into believing that stocks are too high. let me read to you the stock market's strongest run in more than two decades will be tested beginning this week as a looming pullback in corporate profit growth sets up major indexes for a fresh bout of volatility, end quote. of course volatility being a code for going lower the author points out that

dozens of companies have splashed their forecast. companies could respond by cutting spending in theory, that's all true dozens of companies have cut numbers and if we get a ton of disappointments, that would be bad for the economy and the stock market but then the piece goes off the rails because when the writer searches for examples the best he can come up with is walgreens, fedex, and 3m if those are your best arguments for why we should be worried, well you really don't have much of a case. as someone who's been all over these three companies hearing just you wait earnings season could play out exactly like walgreens, fedex and 3m, that doesn't really scare me. if that's the worst case scenario i feel pretty good. there's a huge disconnect between the performance of stocks and their fundamentals. how the underlying companies are actually doing whenever we see this situation it tells us that something else must be at work. let's start with 3m. when this diversified manufacturer reported that leas

time out and the numbers were not so hot stocks stood at 193 there were not one but two scathing pieces by steve who totally nailed the decline in general electric, i preferenced that earlier in his sell call he argued that 3m was possessed by weakness thanks to in part a slowing economy and the stock deserved to trade down 35 points versus where it was at the time his analysis for 3m, the company, the company, was pretty spot on but 3m the stock, that has record roared higher climbing up to $215, up more than $20 since management hit us with the so-called guidedown that the "wall street journal" cites as a reason to be afraid i wish every stock behaved like 3m after disappointing guidance. fedex, call was negative, ceo fred smith call on this show and told us how business has gone south because the global economy is slowing and fulfilling the

demand the united states requires a higher level of investment than expected going into the quarter fedex stock, $181. three days and much bash and slashing later, it's $172 but since then, fedex has rallied 19 straight points to $191. oh, the humanity finally, walgreens the drugstore chain reported a truly terrible quarter the front of the store's being eaten alive by amazon and the newly aggressive walmart as for the pharmacy, lots of high margin prescription drugs are being threatened by government reimbursement contracts. it had nothing to do with the larger economy, unless you mean the job market is so good it's causing them labor problems. to me, 3m and fedex are roaring thanks to a benign federal reserve. sure 3m could get hit again when it reports on the 25th they have auto exposure and a lot of chinese business so if the tariffs hurt then it could

go lower but if we get a trade deal with china, then people overlook that weakness and they will buy this stock hand over fist buy, buy, buy, buy, buy. that's what drives me nuts about these kind of stories. for the most part the writers are good but we're having a white rabbit moment when logic and proportion have fallen sloppy dead. there's a huge disconnect between the current fundamentals and the way the stocks are trading. the next time that someone warns you we could have more guidedowns remember these stocks have defied the odds and roared higher if that's all we have to worry about, i'm feeling pretty darn good about what's ahead. stick with cramer. [leaf blower]

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♪ even if you're getting dinged today we've had an incredible bull run since the beginning of the year. the s&p 500 is up 15% for 2019

just 45 points from its all-time high set last september. that's a magnificent move but it only scratches the surface of what's so great about this market the thing that really substantiates stands out to me, this is a forgiving market like a wall street truth and reconciliation that we saw in south africa after apartheid we awe high-profile stocks get eviscerated after the underlying companies reported seemingly horrible news but time after time these companies kept roaring back some of those iconic names that you could not give away in january have rebounded so dramatically just look at apple, nvidia, and mccormic, the spice company, okay well three companies that look like roadkill at the beginning of the year with stocks that have now erased their epic declines and then some. when everyone was a lot more inclined to panic.

why don't we start with an old friend of the show let's start with apple you know i'm a big believer in ceo tim cook which is why my mantra has always been very simp simple own it, don't trade it but sometimes holding apple has cut very difficult look at that that's the -- that is the epitome of pain. during the fourth quarter bear market the stock got obliterated and people started worrying about an ugly slowdown in iphone sales. a lot of shareholders panicked and the stock drifted from $233 in early october to $157 at the end of the year, then adding insult to injury apple hit us with a whammy of a preannouncement, company said they had a huge revenue shortfall primarily because of weakness in china. the stock lost 10% of its value. this is one big cappi stock you know what? since then, the stock has been on fire.

you know what's up more than 40% from its january lows. oh and you know what i think that game was eminently gettable and i'm not just bragging, i'm very proud of this less than a week later of the preannouncement we went out to speak to tim cook at his headquarters he told a compelling story about apple's rapidly growing service revenue stream the stock was at $150, now it's at $200. i straight-up told you this moment felt exactly like 2015 when apple plummeted to $93 and cook came on our show, right here, right here, and basically called the bottom. remember that? everyone was like apple's best days are behind it were they? apple never should have been done so much to begin with this is a common theme of stocks that sold off during this period, during the winter of our discontent, i would say. the stock bounced. that's what happened more importantly, apple is slowly but surely convinced

investors to recognize the incredible opportunity that it has with its service business. two weeks ago the company held its annual new product event where they announced a bunch of new offerings including a credit card and subscription services for news, television and gaming. i was prepared for wall street to be underwhelmed by this stuff. but people are fiejly starting to get it. apple is an install basis of more than 1 billion users and they can make a fortune by giving those people terrific deals on content and for things like a credit card where they know what people want. still it's amazing how apple was able to go from zero to hero in a matter of months katie penned a 50-page note titled don't underestimate apple's move into healthcare which is something i've been saying for ages. apple's more than a gadget maker and this idea is finally gaining traction plus even after this move the stocks aren't cheap remember, tim cook said he told us that his legacy would be healthcare i could not agree more how about the turn in nvidia seven months ago the semiconductor was the hottest

stock in the universe. then nvidia just collapsed really pretty nasty. plummeting from $292 at its highs down to $124 it was -- that was the lowest, by the way, the day after christmas. the culprit, nvidia makes chips for gaming the data center, cryptocurrency mining, when crypto collapsed last year it turned out nvidia was getting a lot of sales from this business and something in the industry was struck with too much inventory because crypto demand evaporated the stocks started bouncing in january right up until nvidia smacked us in the face with a horrific preannouncement just a gigantic revenue shortfall and anyone who bought the stock at the beginning of the year, let's just say they felt like a fool as it fell from $160 to $131 but nvidia has made a remarkable comeback. the stock is above $190 today as we've gotten more data points saying the semiconductor business has bottomed for them including stunning numbers we got from their competitor, amd

plus the they acquired an israeli data center oriented chip maker and ceo jensen wong has told an amazing story about the future of graphic cards. i like nvidia so much that a few week ago we started buying it back for the charitable trust. you can follow that by joining the action alerts plus club. in the mid 100s earlier this year it was too cheap to ignore. the company had temporary problems that they're working there. there is mccormick this is an amazing comeback story. the top player in the spices and seasonings industry really fell on hard times after having a big run now this is another formerly red hot stock that rapidly lots its mojo in the fourth quarter way back in 2017, mccormic acquired sauces including french's mustard and frank's hot

sauce. this was a fabulous deal which is why the stock ran from 90 to 156 but then mccormic started selling. then at the end in january, the company reported a devastating quarter, a top and bottom line miss, coupled with truly tepid guidance for 2019. i was actually pretty surprised. started talking about 1% to 3% growth this year down from 12% and also give us disappointing earnings forecast. in response the stock plummeted 10.5%, single session, down to $124 that is just awful few days later mccormick drifted to $120 and that's where it bottomed here's the crazy thing and it really is just completely nuts since then, this stock has been on a roll, slowly but steadily clawing back its losses now trading at $153 up 27% from its early february lows. at this point mccormic is trading like that disappointing quarter never happened it's less than $3 away from its all-time high here and most of this rally happened on no real

news mccormic was boosted by broader rotation back into packaged food stocks even though it doesn't have much of a dividend compared to general mills or mondelez got to cut back on these tate's cookies. when mccormic reported two weeks ago, the company delivered a big earnings beat and even though management left their guidance unchanged, the quarter restored confidence in the business which i say why i think it's going to have no problem taking out its high we have seen the same pattern from home depot, we're seeing it from nike right now, which i think is a serious buy, dow chemical last week, stocks that were left for dead and then came roaring back when people realized they weren't dead when a company with a terrific long-term track record suffers a setback, the pain can make you want to dump the stock and forget about it but as we've seen from apple, nvidia, and mccormic, these moments of extreme weakness and desperation, they tend to be terrific buying opportunities. let's go to dean in washington dean >> caller: hey, booyah,

mr. cramer >> booyah, dean, what's up >> just looking to find out what your thoughts are on kender morgan i've been looking at it since 2015, they dropped off more than 50% and down into 216 and they've been struggling to get out of their teens since then and i was just wanting to find out is it the restructuring cut on dividends and -- or what's holding it down in the basement there? is it a hold or a move on? >> i want you to hold on to it because rich is buying stock here's the problem there's been a decided move against all the pipeline companies. a lot of people feel they're at the end of lives, there's no use for pipelines. i think they're wrong. i think kinder is going to do well there are a lot of pipeline companies that are doing quite badly. i want to go to scott in pennsylvania scott. >> caller: hey, booyah, jim. >> booyah. >> caller: i'm calling today to

ask you about humana i own the stock currently and it just seems to steadily be going down and i don't understand if it's just ation thing or whether there's something wrong with the stock >> no, no, because we could be talking about any one of these, we could be talking about unh, this is a rotation out of these stocks coupled with the belief that somehow the democrats and republicans are going to come together, come together, and make it so we have either a single payer situation or we have a situation where the government's not going to reimburse and i don't think that's going to happen i think these are good to buy right here a big drop makes you want to jump ship, doesn't it? i get it but please don't throw in the towel just because there's a bit of pain. sometimes weakness equals buying opportunities as the case for apple. nvidia and mccormic. much more "mad money." i'm hitting the books and finding out how a digital education company hopes to eliminate the back row in classrooms across the u.s. then it's a beverage company that sold more than 2 million

bottled in 3 years with 90% of orders being processed via text message? are you kidding me i'm talking to the ceo to find out how capitalizing on tech trends is making his company do very well. and oil edition of the lightning round. stay with cramer [knocking] trends is making his company memories. what we deliver by delivering. at&t provides edge-to-edge intelligence, covering virtually every part of your healthcare business.

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if you're huge wave of activity at the beginning of the year we've had a dearth of deals in recent weeks. caught my attention. this morning we learned that 2u, the number, the cloud purr vary of educational software would be acquiring trilogy education for $750 million in cash and most importantly stock which is why this company's stock was down. this is the deal that gives them more exposure to technical skills training like coding boot camps. 2u's stock got dinged today because some of this is a stock deal i think this takeover is intriguing here's a company that got a fantastic long-term track record as they have benefitted from the digitization of everything, including education but last year the company's growth started sloeg and the stock pulled back and while it's reached up dramatically in 2019 it's still well off its highs. could the trilogy deal help

these guys get back on track let's take a closer look with the cofounder and ceo of 2u to learn more about his company and what this means for future welcome to "mad money. >> oh, thank you, jim. thrilled to be here. i wish i was there with you physically but i'm psyched to be here with you regardless >> same. i need you to tell people, since i was naive. the value proposition both for the schools and for the students that you offer and then, say, about the cross selling that you could do with trilogy. >> sure. so, i started the company 11 years ago, believe it or not we've been public for five years. last week we celebrated our five-year anniversary. we partner with top universities to build what we believe is the world's best digital and hybrid education and the business model is we share tuition revenue over the life of a really long contract so i've been running the company for 11 years, we've never lost a single client the acquisition today allows us to help bridge the digital skills gap in subjects like coding, ux/ui, data,

cybersecurity, still putting the university at the central sort of place in the life of the student long-term. so we think it's a huge opportunity for the company. ed tech's not a sector that has this much action so we're pretty proud of our track record and we think trilogy becomes a huge part of our ongoing story, long-term. >> i think one of the things i need you to do, i don't mean to be -- >> please. >> to say that some schools are better than others, none of that but you have some top flight schools, syracuse business school, which i've donated to. harvard business school. i mean, the institutions we're talking about are some of the finest educational places on earth, correct >> yeah, i mean, our brands, they're incredible schools, everywhere from berkeley to northwestern to georgetown, syracuse, harvard, yale, as you mentioned and what we do is we allow them to bridge to the online environment if you go back to the founding of the company we thought it was odd that the great schools weren't doing anything online.

we believed that if you had institutional will behind you from these incredible places that the technology was there to do something great you just needed the full weight of the school behind you so, today, we often say why should you pick up your life, quit your job and move to attend grad school if you can get everything you were going to get from that experience but do it over the internet and it's worked quite well. so, 11 years in, you know, we're at a point now where we're powering 68 university partners combined with trilogy so that's part of where the story gets super interesting is you're bringing the market leader, working with universities with boot camps into our company as the market leader in online education for great schools, so we think it's got wonderful applicability for the long-term. >> give us the value proposition for a northwestern and a value proposition for a student. how much it costs, what does it mean for the university, is there any way that could help keep the cost of tuition down for the rest of the schools. >> sure. i mean, the largest expense to

graduate education is the opportunity cost of the job so being able to stay employed in your local area while the tuition is the same, you don't room and board and you don't have the opportunity of also quitting your job, so the vast majority of 2u students are working in a current job and looking to sort of take the next step now we have a variety of programs where we actually do local clinical placements, so jim, an example of one is our master of science in midwifery at georgetown. well you wouldn't want to go to the midwife that delivered the virtual baby so as an example, we power a local clinical experience all over the country to allow people to go in and deliver babies in that program and that goes for programs like physical therapy or physician assistant where you wouldn't think it could be done online. we're sort of breaking all those boundaries down. the value proposition to the university, we power the experience, so we provide all the technology, all student support, we do all the student recruitment and ultimately we take a long-term revenue share we invest in each program so one of the reasons we were controversial as a new ipo way

back in 2014 is that we invest heavily into each program so 5 to $10 million of net negative cash over that program's earlier years and then over a really long-term contract, 2u does really well. that's been proven out, you know, in our five years as a public company but it made us, you know, a tricky ipo way back in the day >> right >> the question was, what are you? you know, you're -- are you -- you're, of course, we're for profit but the reality is we work with the best nonprofits and help them power the experience, so we call it 2u os. it's a comprehensive solution for the schools. >> my wife's on the board at bucknell and i said to her i don't understand why every school doesn't do this this company could be a great partner. is there a chance that pretty much all the great undergraduate schools that are costing $76,000, you know, team up with you somehow to offer something that is off campus >> well, we are in the process of working on our first undergrad. we focused on graduate education for most of our history.

but we think -- we do think it's a really big opportunity and there's no question that over time, like the internet's obviously not new. we're sort of in the third wave of for profit education. the first wave was schools like university of phoenix and you know, we really believe today the second wave was the massive open online courses. >> right >> and we really believe that the third wave is schools like our schools doing it the real way, offering great degrees in a very accessible format, allowing people to sort of experience it in their homes or, you know, at the workplace in a way that just gives you the kind of flexibility that we do think over time certainly will drive down cost but most importantly drives quality so, our programs have the kind of outcomes you'd see in a campus program >> well, you're -- >> that's a big part of the value proposition. >> you're a fascinateding company, fascinating stock, congratulations on the trilogy that's chip, the cofounder and ceo of 2u. i hope you're as interested in it as i was. i didn't know the company. i found out this is a company that's vital for the new economy. "mad money" is back after the

break.

>> announcer: lightning round is sponsored by td ameritrade >> it is time.

it is time for the lightning round. and then the lightning round is over are you ready? let's start with vincent in florida. vincent. >> caller: jim, booyah, buddy. thanks for taking the call >> my pleasure. >> caller: looking at cbt. >> you know, that is one of the few industrials that is not starting to roar i think that begs the question -- i think we ought to look into why it hasn't because i think you may have a winner there. i like the company mike in massachusetts. mike. >> caller: hello, jim. please share your insights on helmerich and payne, hp. >> i've been in a house of pain with anything related to oil we've had a couple good days but this group is too hard to own. steve in california. steve. >> caller: c-man >> yo, yo. >> caller: few weeks ago an article on the street said this company was a unanimous buy but

talk about drugs, let's talk about vecetpa. does amara need to come down a little bit >> people are -- there's a lot of takeover chat nter in that o so if you don't get a takeover it's going to come back down so for me it's a little bit too dicey. can i go to dan in california. dan. >> caller: hey, jim, thank you for everything you do for everybody. and specifically, for me >> you're very kind. thank you. >> caller: you've made my retirement very comfortable. >> thank you. >> caller: my question is ollie. you recommended that sometime ago. >> yep, couple years. >> caller: and i bought it and now i don't know what to do. should i keep it or what? >> why what did they do wrong i think ollies has one of the greatest story ever because there's no online presence, it has the cheapest, it's a treasure hunt, i want one in my backyard let's stick with it. richard in florida richard. >> caller: booyah, jim, from

florida. >> all right >> caller: thanks for all you do for us average joes. >> we're all average joes, that's what's good about i. go ahead. >> caller: all right, jim, i want to ask you about the recent commission for a priority review for oral semiglide for the treatment of type 2 diabetes if approved, is this a game changer -- >> it's very positive and the stock is not expensive remember i also like lily, though, and lily's very tough as a competitor you never want to go up against them i need to speak to jim in illinois, please jim. >> caller: jim, this is jim from chicago. >> okay. >> caller: i'd like to give you and your staff a big hallelujah. my question is i'm adding it, could you give me -- >> it's a avnet is a decent story. sometimes it's -- look, if we get a stronger economy, you're going to wish you bought that stock for sure ivan in new york

ivan >> caller: professor cramer. >> yes. >> caller: all hail the big jc >> having a good day, how about you. >> caller: ivan from buffalo, new york, here to give you a big buffalo booyah >> there you go. new coach coming in with ice hockey again. >> caller: first of all, thank you for all you do second of all, if you talk to antonio brown, tell him he's also welcome >> a.b.? a.b. just direct messaged me all right. what's up? >> caller: he loves us too.. the stock is golar, lng limited. >> that is a total spec and too many of those carriers i'm going to have to rule against that i actually prefer the sean mcdermott to that one. randy in california, please. randy. >> caller: hey, jim, booyah from long beach, thank you for your education. >> you're welcome. >> caller: what i want to ask about is nio

>> goes on 60 minutes, people take it up to ten, then gets cut in half. i have no adds other than to say this one is pure dice roll that is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade 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. ♪

♪ you want to identify the next big thing, sometimes you need to step out of the shadows

cast by the largest companies in a given industry and instead focus on the privately held upstarts that are shaking things up companies like iris nova, the parent of dirty lemon that makes all sorts of lemon water based beverages that purportedly help you sleep better, live better, feel better and maybe just taste better but they do it via text message. in other words, iris nova is trying to reinvent the beverage business by connecting directly with customers and the strategy seems to be working. they've also introduced a few brick and mortar locations called the drugstore it's an experimental retailer. no cashiers that basically functions on the honor system. new york city of all places there's a lot intriguing here. let's take a closer look with zach norman don, the founder and ceo of iris nova to learn more about these concepts and his vision for the future of the beverage business. welcome to "mad money. good to see you, sir periodically, what happens is we

sometimes -- a guest, okay, and i am older and i'll say, okay, what's this dirty lemon? and each of our young, incredible, terrific staff people will say, how could you not know and so then i talk to my daughter and my daughter says, dad, that's embarrassing so could you please explain to people of this older generation why this is such a craze for the newer people >> so, the nonalcoholic beverage industry globally is expected to reach almost $2 trillion by 2025 >> okay. >> and what we saw was that it was -- of that industry it was largely held by big players like coca-cola and pepsi. and coca-cola and pep si are making sugary, high calorie options for the majority of their products so what we were looking to do with dirty lemon, which is the first brand underneath iris nova is actually create no calorie, no sugar offerings with fungal benefits that are appealing to the modern consumer. >> and it's very clear from how you've done that -- particularly this text message way, that you are a disruptive force but you

have a relationship with coca-cola. >> absolutely. yeah, coke led our last investment round in december >> and do you know james quincy? did he come in and take a look the ceo. >> james did take a look i don't know him personally but yeah, we're getting to know the coke team and it's been an incredible valuation -- validation >> so, culturally, you guys can fit? >> absolutely. yeah i think that there's a lot of synergy between the two organizations. >> talk to me about the drugstore and how the honor system works in a place where people wouldn't necessarily think that would work. >> absolutely. so, the drugstore is our retail concept so it's the second brand underneath iris nova and we launched it last year in tribeca and launched a second location in hudson yards and we have two additional locations coming this year and at the drugstore we have two components so there's a retail component which is a grab and go cooler which allows customers to grab a bottle of dirty lemon and basically they text us and they tell us what they took and it's all on the

honor system >> wait a second i mean, how about i go in and just take it >> so, you could take it, just like -- >> i mean, be a bad guy. >> you could walk into a grocery store and take a product and leave as well, but we've built such an incredibly passionate group of consumers in new york city, specifically, that we found this is a great opportunity for us to offer them an additional layer of convenience to their ability to receive dairty lemon this is $10 a bottom it's a premium product for sure. >> wow i guess that's more like a cocktail >> similar but we're using very high end ingredients and we found that, you know, the -- just the formulations and the functional benefits that we're providing to consumers, this is what the modern consumer wants >> will we see not the drugstores all over the country? is that your hope? >> we're going to have four this year >> really? adding two more? >> we're going to expand the product -- the brand, rather but what's really exciting about

the drugstore is that we're using all of the tech infrastructure that we built for dirty lemon in the drugstore and also collecting data at retail that's informing better decision making around new products that we launch in bottled format so dirty lemon and iris nova are -- or iris nova, rather, houses dirty lemon as a brand but then we're investing in beverage brands and we're also launching new brands underneath the platform >> okay, so, if i do use the phone number, the back end powered by tulio, a friend of the show >> correct yes. we have tulio powering and sending messages out to consumers but all of the tech infrastructure is in-house >> is this one of those things where you're -- what is your demographic? what would you say the average person is? >> for the dirty lemon brand it's millennial females. 25 to 45-year-old females is the predominant audience for dirty lemon but we're expanding into a broad range of beverages so we have two other brands that are launching this year. that will be at varying price points and available for a

variety of different demographics >> would you ever do cannabis? >> we actually launched the first cbd beverage in the united states >> you did >> last year and it was extremely success one of our best sellers but we decided to take it off the market at the end of last year because there's a lot of challenges legally around cbd as an ingredient in food and beverage products specifically >> right >> so despite the fact that the farm bill passed it's still illegal to be used in food and beverage products and so until the fda gives the okay there, we pulled it out. because we just want to reduce the liability. >> well last question. instagram, advertising, finish, good, where are you guys >> so, we launched the brand on instagram, dirty lemon specifically at one point we were spending $20,000 or $30,000 a day on instagram advertising. >> a lot of money. >> but what we found was that the cost of acquisition on facebook and instagram specifically has gone up considerably over the last two years so we're investing our dollars now outside of digital

and acquiring customers through experiences like the drugstore and other activations that appeal to a wider audience >> excellent well, you know, it's a delight to talk to you and you've got a new model and you're obviously a pioneer who's willing to take exactly how tough it can be to be a pioneer that's zach, the founder and ceo of iris nova it's important to know this. iris nova is the parent of this company, dirty lemon so don't get that confused but it is a private company for now. "mad money" -- $10 be careful "mad money" is back after the break. experience the style, craftsmanship and technology that have made the rx the leading luxury suv of all time. lease the 2019 rx 350 for $409 a month for 36 months. experience amazing at your lexus dealer.

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lost in all the action today was a remarkable move in amazon. remember what i said about all these ipos, so many of them are powered by amazon web services that's the real secret sauce to why you should own that stock. there's always a bull market somewhere and i promise i'll find it for you right here on "mad money."

i'm jim cramer and i will see you tomorrow >> narrator: in this episode of "american greed"... locked up in a federal prison for committing fraud, perry griggs shouldn't be a threat anymore. >> eight years in prison is a long time. i didn't think that we'd hear from him again. >> narrator: but this is no ordinary con man. this prisoner is prospering with a new scheme. >> from inside the prison walls, he was able to convince people he was a millionaire commodities trader and have them invest their money with a man in jail. >> narrator: and before anyone is onto his scam, griggs gets released... >> perry had left in a hurry. so this became an active fugitive investigation. >> narrator: ...leaving his victims with nothing. >> our property is taken

illegally.