mercantile exchange and dan nathan made fun of me for bringing that up >> here's the stock at an all-time high and cme will get you done. >> that does it for us thanks for watching. see you back here tomorrow for more fast. in the meantime, don't go anywhere "mad money" with jim cramer begins 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 people want to make friends. i'm just trying to make you some money. my job not just to entertain but to educate and teach, put it in context. so call me at no. or oh, yes, tweet me @jimcramer. every day i come out here, the checklist gets a little longer the checklist you got to go through before you can feel comfortable buying stocks.

this need for caution weighs on the tape as we call it, including today, where we open strongly and gave up some of our gains. the dow ultimately at least advanced 43 points the nasdaq inched up 7.2%. let me tell you about this checklist. it's the kind of thing no money manager wants to talk about on tv, even though it's what they're thinking all the time when they decide to buy or sell. it's a cruel calculus, people. there is very little spare cash coming over the transmissions, not like the old days, which means when a fund buys something, they typically need to sell something, make some room, raise some cash. we've had this endless parade of ipos, most of which have been pretty disappointing i wish the pipeline of new deals would just a stop. does the market really need shares in slack? i'd rather have a pair of slacks do we want wework, the office space startup with a heinous balance sheet? especially since the slowdown? are they still going to bring

airbnb which may turn out to be like uber, a company that should have come public years ago before its growth peek you know expedia is gunning for them bankers shut down the ipo pipeline it's see much supply you're hurting our business. but i bring these ipos up because a loft hedge fund managers have lost money in these deals, and the end result is they need to be more careful with their cash. if you think there could be a limit to the supply, though, i don't want you to hold your breast just this very evening, uber reported -- give me a break, some decent numbers. i did like to talk about uber freight. that was good. it's going to be the rallying cry for all of these underwriters and the research who say now is the time. you're going see more deals than ever that's where this checklist comes in before portfolio magic considers buying things, they have to run through this gauntlet. first question before you pull the trigger, easy. how much china remember, this trade war is a

double-edged sword if your business source is in china, it's going to get hit right now. there is no way to make the chinese eat the full impact of president trump's 25% tariffs. sure, they'll take some of it. but some has to be passed on to you or to the store that you go to those tariffs hurt that's the whole point the cost is being absorbed by everyone in the food chain from chinese suppliers to u.s. companies who buy from them to you the consumer the only way to escape it? some companies were smart enough to get out ahead of the tariffs increek, like cisco. chuck robben believed president trump when he threatened to shut down trade with china healthcheck was a visionary. also a visionary dollar general. we'll talk about that later. most companies sourced from china and didn't have that kind of foresight, which is why many of the earnings estimates need to come down there is the other edge of the sword. if you're selling to china or need chinese approval for when you're doing, you could be in real trouble the communist party decides to weaponize, that's the

new word, your business. sort of like what we're currently doing with huawei. that's a $100 billion company. if china retaliates in kind, any company with huge china sales could be in danger that means the worst of the worst are companies that both source in china and sell in china. you know what that describes, don't you? yep. even though apple's stock is very cheap, the earnings estimates may be too high in light of the tariffs and the possibility of a chinese boyc t boycott. apple does not get past this checklist. apple also does a lot of manufacturing in china and export here that means if president trump decides to slap a 25% tariff on the other $300 billion of imports from china that he already hasn't taxed, well, that's going to hurt apple. woul an exemption, which i don't think they're going to give, well, apple would need to race prices substantially in this country. i believe you should own apple, not trade it but from a trade poyfr's perspective, apple exemplifies everything that is wrong with this market. i know the president wants to move manufacturing from china here that's a big issue with him.

but if he puts big tariffs on imported apple goods, well, what do people do they'll buy samsung phones a lot of good that will do for the largest taxpayer in america. the second item on the checklist, you need to ask if the companies leave two-levered, a new addition to the checklist, too levered to the american. if you want to get rid of the consumer, i've thought pvh pvh cuts into a huge percentage of the retail picture in this country. and last night we learned from the company's always reliable that consumer spending has slowed, that's why manny had to cut his prices that's why his stock got cut 14 bucks. we now know when president trump raises tariffs this month, it actually did have a bigger impact than a lot of people thought it would it's a punch in the kisser i've been telling you the trade war is worth it, that china is a bad actor. if we don't do something, the prc will keep taking advantage of us and pass us in terms of

world hegemony we don't want that but the tariffs are really starting to hurt us there. is just too much evidence. the president, it's not worth it these consumer reliant stocks will be hammered if they haven't been hit already third item on the checklist; you need to know if the earnings are hostage to the yield curve remember how treasuries are a price. if your business makes money off the difference between long-term interest rates and short-term interest rates like the banks, estimates are too high dire consequence of plumbing long-term treasury yields. and all the financials are toxic except for fintech and even fintech has gotten too expensive here it's a bank. money managers, no fourth, political risk, like the possibility of the democrats winning in the 2020 election, and perhaps a landslide, implementing a single payer health care system i think it's unlikely, even with president sanders or president warren interesting ring it would still need to pass congress where the democratic leadership is opposed to single

payer. but most of the democrats are running for president want some form of medicare for all it's a real risk in the hospital chains as long as joe biden is in the lead, fine if it falter, boom fifth item on the checklist, money managers don't want to own anything that is hostage to the terrible weather oh, that's just great. it's raining today now we've had bad weather in may. bad weather for the last couple of months. that includes who gets hurt, retail and housing, it's the spring selling season you don't want to go out in the rain i think it's idiotic to sell in bad weather. apparently a lot of companies were caught with their pants down by all this rain. sixth item got to be really careful do millennials hate it plastic, food that's candor processed. see that kraft heinz thing fossil fuels more and more i hear younger millennial money managers speak disparagingly about these groups you to be very careful but don't by beyond meat like

everybody else that's way too high for heaven's sake we had a tough list. i could have gone long, but these are the ones that people are talking about. some of the companies can effectively run the gauntlet, and their stocks go higher this morning the commerce department slapped a 1700% tariff on chinese mattresses hey, guilty, 500 million coming in that's fabulous news 500 million in sales from mattresses there but it's fabulous news for leggett and platt. the company can raise prices immediately. yield is 4.4%. buy it or if a company dramatically reduces exposure to china, that could be a winner too. please look at dollar general. more on that later the gauntlet keeps getting more and more difficult money managers are desperate to avoid owning companies that could be facing estimate cuts. this checklist is what protects them be ready for any company that fails the checklist to join the house of pain here, and remember that it will probably get worse before it gets better. so please prepare accordingly.

andrew in florida, andrew? >> caller: hey, jim. huge fan of the show how you doing? >> i'm doing well. how about you? >> caller: doing well, doing well my question is in regards to 10 cent music is it a buy, sell or hold? >> we're only recommending alibaba because of the trade war, and i don't even like alibaba. i feel people constantly ask me about a chinese stock, and it's the best one we're not going to take our lives in our hands jack in ohio, jack >> caller: thanks for taking my call, jimmy. >> of course, jack. >> caller: the stock is down again with the yield right under 5%, which is pretty good for this stock i'm 56 years old and i'm looking to get out of here safely with a good energy stock and let the next people worry about it remember, jimmy, it has an excellent balance sheet, excellent, xoe >> no one got hurt by exxon. with that yield right now, i totally agree with you i endorse it

i think you should buy it. i don't like fossil fuel by i like 5% yield. peter in connecticut, peter? >> caller: boo-yah, jim. >> boo-yah >> caller: my question for you is about nvidia. it's been struggling since the trade war. >> right. >> caller: i want to know when should i get in? >> we do not know when nvidia is going to bottom. i love that i'm hating to like nvidia, telling people to sell at 280, we've been buying it for the charitable trust actionalerts.com club. we don't know when it's going bottom i say you buy in a stage on the way down and you bet on jenson long and there are very few stocks that i think have a ten-year perspective on nvidia is one. i think you'll look back and say you know what? it got hit, but it was right to buy. it's difficult to find stocks to buy right now. and it may even get worse before it gets better that could be a case of nvidia i want you to prepare accordingly. i'm drill do you think in the state of the oil industry with the pioneer ceo, pioneer financial resources.

you don't want to miss it. wow, sheffield is back then we've heard from plenty of retailers. i'll tell you what to shop and what to drop and acreage holdings says shareholders support with canopy growth we'll sit down with both ceos and find out stay with cramer >> don't miss a second of "mad money. follow @jimcramer on twitter have a question? send jim an email to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc miss setomhing head to madmoney.cnbc.com.

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your service online in just about a minute with a few simple steps. really? really. that was easy. yup. plus, with two-hour appointment windows, it's all on your schedule. awesome. now all you have to do is move...that thing. [ sigh ] introducing an easier way to move with xfinity. it's just another way we're working to make your life simple, easy, awesome. go to xfinity.com/moving to get started. the price of oil has been obliterated over the past few weeks. even the stocks of the best exploration companies have been crushed. take pioneer natural resource, a pure play in the permean basin, practically overflowing with crude. we love the permean, and we love that scott sheffield came out of retirement to run this business again. he has been making some very smart moves. be the price of crude keeps falling thanks to a potential worldwide slowdown should we be more careful?

still, this one absolutely does get cheaper as it goes lower i often say that some companies don't. let's check in with scott sheffield, the president and ceo of pioneer natural resources to get a better read on where his company is headed. scott, welcome back. >> thank you, jim. >> good to see you, sir. >> good to see you. >> so i think retirement didn't suit you wanted to come back to work? >> no. the board came up to me after tim retire and asked me, do you want to come back, scott, or we're going to have to go outside and hire somebody. so i came back for the investors and for the employees. >> when you retired, i said you were the best there is once you retired, i can say it, don't have to worry. what's amazing is you very quickly decided pure play permean, got rid of eagle ford i thought you could get rid of more, but you called around here you took this balance sheet and made it seem like a blue chip balance sheet as opposed to going wildcat. >> it's still the best balance sheet among all independents the first thing i did when i came back obviously was focus on the call structure

drilling completion facilities and of course overhead sad to say, we had to go through a reduction in force of about 520 people so we've let our gna which is a measure we all measure overhead in an oil and gas company, it's down to the low $2 range but it's been the tough things that i'm very excited about the future >> that ratio is not the only one that i like. oil to gas and also price you get versus on the market you're making the most per barrel and you've got the most oil of any of the companies. >> yes our slides show that, and our ir presentation we started this, i was on your show several years ago about the export ban and so a lot of the work we did about seine years ago, all of our crude moves to the gulf coast, and we're getting brent pricing. so we're exporting 98% of our crude. >> why do i like a guy like sheffield? he came on the show and said we're going to be exporting oil. i thought that was insane. we weren't making it it is such a deficit but you saw coming

now i want to know what's the next big thing because the permean prices judged by this occidental deal are ridiculously high versus what you paid. >> yes we paid essentially nothing for our acreage, less than $500 per acre about 20 years ago, and oxy, based on a report coming out of irs they're paying somewhere close to 50,000 to 55,000 acre to get in the delaware and expand it so the average price deal is done, about 38,000 per acre over the last two to three years. but oxy stipulated and paid 55,000 per acre. >> on the call you address the question of mma. you said anarch doe cdarko was . >> i think the majors do want to buy the pioneers of the world, the conchos, but they're

running -- they set out these big targets. exxon is going to a million barrels a day. chevron is going to 900,000 barrels a day. and over the next two to three years, they're going to be depleting their inventory. at some point, they will have to come and make strong offers to the independents >> well, i like chevron very much, and i know they have a war chest, and they've got a great balance sheet. even if they had bought anadarko, they were going to be able to buy back stock when i think about it, the permean may be -- let's just say it's so lucrative, and there is so much oil there, that maybe the window is going to be closing if they don't buy with oil down here where it is. >> yeah, i know it and it's been misstated. there are only four companies who can get to over a million barrels a day. pioneer, concho, exxon and chevron. >> and you should explain to people that natural gas is not a great asset to have. those companies all have good -- but natural gas, what is the price right now? and can any company make money

at it? >> it is negative, sad to say. >> people don't believe me when i tell them. >> it's free gas in the permean, we have probably some of the cheapest electricity in the permean because of the windmills we have gas prices are actually negative pioneer is taking our gas to california so we're not seeing any negative prices be. ah lot of the independents are seeing negative. we're waiting on the kinder morgan line. it's coming online in october. the next kinder morgan in october of 2020. the problem is we've got five to six crude oil lines coming in from permean to the gulf coast, but we've only got one gas line. we need to build another four to five gas lines. >> but mexico -- you got one in mexico that would save -- there is a couple coming like apache could really use a natural gas line to mexico. >> yes but they have a new president down there, and he has talked about -- >> yes. >> -- whether or not he should be importing as much natural gas into his country he wants to spend money and build his own refinery down

there. so i don't know. the problem, what's going to solve our natural gas industry is get more l & g projects just like propane, butane, ethane. >> a lot of butane export. one last question. you were visionary you told me all this could happen i was skeptical, but you made me a believer how big can we be now? how big can united states be how big can the permean be >> okay, u.s., a little over 12 million barrels a day. >> verse six or seven? >> i say five to six. >> when you came on, we were five to six. you told me we could double. >> it's going to 17 million barrels a day. most of it will come from the permean. the permean is going from 4.2 to $8 million to $9 million a day >> 17? >> 17, yes but it will be over slower pace. >> so if we get tensions in the middle east, i should be ail will less concerned. it's net going to be the be all and end all in this world. >> exactly we don't have to rely on the middle east again, even though

we're still sending aircraft carriers and troops over there. >> 17 million. look, anybody doubt you'd before is dead wrong. i don't doubt you now. i tell you that. and welcome back you are a terrific executive >> thank you, jim. i appreciate it. >> absolutely. all right. that's scott sheffield he is the pioneer, and he is the head of pioneer natural resources. listen to what he said 17 million he was right last time everyone was laughing. they're not laughing now "mad money" is back after the break. i'm off to college. i'm worried about my parents' retirement. don't worry.

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downbeat retail take away from manny tirico, the gigantic apparel maker that is calvin klein and tommy hilfiger his stock fell more than $14 in the wake of that particular quarter. but you know something not all retailers are succumbing to the gloom even as many have seen their stocks like pvh totaled. so tonight i want to get you up to speed on this newly hated sector that just has a handful of winners when it comes to retail, you've it's like a clint movie. it's the good, the bad and the ugly it's easy to tell who is who how underrated was lee van cleef? true star of that movie. let's start with the good. the few retailers that actually helped their case when they reported last week and their emphasis on few, even though trade war worries are weighing on the whole industry, some companies managed to transcend china. first and foremost, there is target okay that exploded higher after posting a terrific top and bottom line beat with a 4.8 same

store sales growth fueled by a major pickup in traffic. we talked about brian cornell and what a terrific job he is doing as ceo but it didn't have much positive pin action as a matter of fact, it had no pin action whatsoever. why? well, as cornell explained on the conference call, they generated these results by being different from everyone else target spent years investing in sexier stores, building out same-day delivery, growing the digital business, it's on fire those moves are finally paying off. best part, stocks went up nearly 12% a quarter. but it's only less than 14 times earnings given that target is probably going to have some of the best growth in the sector, i think it is a steal here. remember, this is "mad money." we're not trying to tell you what happened. we're trying to tell you what could work second winner, tgx, the parent of tjx, marshals, home goods it's an offprice chain they buy their merchandise from other retailers when they're desperate to off-load excess inventory.

it's how they can beat amazon on pricing and why they don't care about china. they don't even care about online an excellent quarter when the analysts were only looking for 3.6. tjx seems to be benefitting from the trade war. many major chains rushed their shipments to avoid the higher tariffs. and now they're sitting on huge piles. tjx will be happy with cash. selling more than 19 times earnings, but it's pulled back along with the rest of the market, giving you an unbelievable buying opportunity. all we keep seeing is 7,000 stores close this year and more and more and more and each one of these guys report if you're look for retailers that just reported genuinely great quarters, but haven't been able to dig down, i'm going to give you a target and tgx, but talk about some that are treading water on the one that you've got a story that i find quizzical at this moment, but like the company so much long-term, i got to talk about positively is home depot. a not so hot quarter thanks to really putrid weather, meaning

raining all over the country during the most important season, gardening season weaker than expected same store sales. but they hadn't included the impact of the tariffs. you're going to hear me keep coming back to this tariff issue because it's so important to retail however, this is an incredibly well run company they've got great scale and they seem confident business may be returning. they may have turned over the weekend because boy, weather got better this market has another down drift, i would use it to buy some home depot, which is what we've been telling people who belong to action alert.com club. i feel great conviction. if we get another good weekend or two of weather, home depot is going to have pretty good things to say on the other hand, best buy, bby, terrific results, yet they refuse to raise their full year forecast and their answers about the tariffs not inspiring. ross stores delivered a beat and raise, but while their full-year forecast was good, the guidance for next quarter is worry some

ross is like tgx, but it's got a more expensive stock some that we are just doing work on, i tell you, i don't like to talk about stocks who not been able to go through the conference calls, but i've got to mention them because they're soaring tonight. the one i'm thinking about is williams sonoma. it gave a terrific quarter and they moved a lot of their stuff out of china that's important talk about that consummate moving out later when it comes to dollar general, which had a fantastic quarter. we saw something similar to the negatives that i saw on best buy with urban outfitters, which posted genuinely robust results. but unfortunately in the conference call, francis con forty told us discouraging stuff to declining gross margins. urban is launching a subscription space for $88 a month. i think it's intriguing long-term, but short-term the business is definitely challenged i'm betting you'll get a better buying opportunity if you're patient. of course, i would always love

to be proven wrong and if ceo richard hane wanted to come on the show, i would absolutely love it how about the ugly well, there is a lot of them maybe too many to mention. but let's start with one that -- one that i got wrong, okay i think you always have to own that i didn't expect this i said it would be bad i didn't think it would be this bad. kohl's disappointed and cut its forecast everybody knew the numbers would be bad going into the last weekend. i told all the members of the club that was going to be the case but hardly anyone thought it would be this bad. kohl's is forecasting a down year for earnings. the stock has already lost 30% of its value and it has a really big yield. so at this point, hey, you know what it's okay. it's at ten times earnings 5.3% yield, and that's why we've been buying it back for the trust if you're selling it higher they have a good balance sheet make no mistake about it, though, kohl's had a tough quarter. lowe's disappointed. the new ceo signaling that it could take some time to turn

this around. the stock got slammed last week because ellison has so many true believers that bailed on lowe's after the last quarter i think he is a terrific executive and can turn the thing around i'm taking him at his word when he says the process might take longer than we thought, which is why there was so much selling. then there is the footlocker debacle, holy cow. the top and bottom line numbers came up short. management cut their full-year earnings forecast. hideous quarter. footlocker missed numbers across the board and then lowered the boom on us any way it doesn't help that it's at the epicenter of the trade war with china. everyone assumes the companies are going to get hit and hit hard as long as people are worried about the tariffs you should expect footlocker stock to stay toxic. and we might be worried about tariffs for a long time. from the looks of things, excuse me, again, as i mentioned, i do not want to be in a situation where i comment on a company that i've not been able to do a lot of research on, but it's just blow away the gap major miss tonight both of the top and bottom line, it's really nasty.

always have to point that out. finally nordstrom laid an egg last week from 37 and change to less than 33 today wow. this thing was in the 60s last year this high end department chain is really struggling don't take it from me. listen to what nordstrom had to say. they told you their top line results impacted by loyalty, digitalizing and merchandise all going wrong. that's terrifying. nordstrom way down by the loyalty program and the selection of merchandise, what the heck is left the company is trying to turn things around. trying to be transformational. all that kind of talkthat i hate it's in the crosshairs, and i think you're taking your life in your hands if you try to speculate it unless they break off rack here is the bottom line. between the trade war with china and a potentially slower economy here at home, this is a tough moment for retail, but if you do your homework, you'll find retailers that can work even in a difficult environment, which is why target and tjx have been flying oh, and if you want to go bargain hunting, you could do a

lot worse than home depot and kohl's let's go to rich in new york rich >> caller: boo-yah long time, first time. >> all right good to have you on the show >> stitch fix. i'm concerned about international expansion not really happening competitors, possibly amazon, and music growth what do you think? >> you know, i think katrina is doing a pretty good job there. i don't know i mean, i think it's a young company. they got a lot of good things. but when i talk to katrina lake, i think she is kind of a visionary. it's a $2 billion company. i think it's okay. i'm not going to jump up and down about it. but i think it's okay. we know this has become a tough market for retail management but you can still find retailers that work. much more "mad money" today. illinois just moved one step closer to becoming the next state to legalize marijuana. i'm talking with two of the hottest plays in the space, find out what it means for your green, and they're getting together and then a tock that will be universally loved by investor

and your portfolio i'll reveal the name and all your call rapid-fire in tonight's edition of the "lightning round," so stay with cramer through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from finding out what's selling best... to managing your fleet... to collaborating remotely with your teams. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence.

in the great white north,

the cannabis crazy made it a stock to watch but this canadian company is planting a flag south of the border is the united states too slow to cash in on marijuana's hot moment or will the new deal with acreage holdings mean blue skies ahead for this green growing trend? >> whenever the stock market gets hammered, as it has been, i like to circle the wagons around powerful secular growth stories that do not need a strong economy to prosper stories like the blooming cannabis industry. these pot stocks have a wild west feel about them but regular viewers know i have been a huge fan of canopy growth because they're a leader in both medicine and recreational. i think the money will let them dominate in the budding marijuana business and last month they announce the next step in their plan. canopy told us they agreed to buy acreage holdings, $2.1 billion cannabis rollup, but only condition terms because that's the way it has to be done they have a right to acquire as

much as 100% and they're required when weed becomes legalized. you hardly ever see anything like this. let's take a close look at bruce linton, the chairman and ceo of canny and kevin murphy of acreage holdings to learn more about the deal mr. linton, mr. murphy, welcome back to the show >> good to be back >> bruce, a while ago you told me that your goal was to dominate does acreage make it so that you can dominate more easily >> absolutely. when you look at their footprint, 20 states you look at the governments, the board is solid we know they're going to behave ethically. we know they're going to run as hard as they can we can run down all the brands we have. that means they're getting basically, without any cost all of the advantages we've developed, which means there is no doubt they can dominate all the markets they're in which is all through the u.s. >> i like what bruce said about corporate governance because a lot of people are saying i don't know about some of these stocks. talk about your board.

because your board looks like an all-star group of people >> the business has been borne out of an illicit business we felt compelled to not only bring in top executives to surround it with a board of directors, speaker john boehner, governor bill weld, john moroney. these folks have joined our organization because they believe in the movement. they believe in the value of the plan, but they also believe in good governance or they wouldn't have joined our company in the first place. >> i asked speaker boehner why, and he said that it was palpable, opiates, got to stop this this is a nice alternative it's a reasonable alternative. it is a national imperative, isn't it >> it is but it's also the sheer fact that 94% of americans are looking for cannabis to be legalized in some form and as the speaker of the house and the representative of the people of the united states,

that has drawn him to be a part of our organization as well. >> you guys know, have your pulse more than anyone when is it going to happen i know dispensaries, you're a king of dispensaries in this country. but i think people want to know, i don't want to feel like if i look at the label and it says thc, i'm going to go to jail when does that end >> the fda, there are a couple of things going on tomorrow the fda's hearing about cbd. what should we to be it. >> not just hemp seed. >> they want to have cbd what we need to have is the consumer wants to be protected they want know what's in there it's the same as every other product. then when they go to states' rights, that makes so it you start to be able to govern at state level what they do with thc. kev lives in this world, but we're thinking 18, 24 months that's enough time to use all of our ip and brands to really get ahead. the next wave comes on, and we're way at the front. >> the more i look at this, the more i realize i'm being ethnocontinental, because when i look at the move in the last 18

months with countries, i realize that this is an international story, and you guys really are the only guys that have the capital to be able to take it over. >> yeah, we're in 16 countries we have plants growing in denmark, spain we have plants in australia, colombia we have extraction processes we've notched deals where we buy something like 3c which is a german pharmaceutical extractor. this works as a uk-based wellness kind of health feel-good product. this is a global thing and there is more than 30 companies governing. when they govern it, they expect you to create jobs, bring products and you are to follow the rules. >> in terms of following the rules, what you've done, kevin is incredible. every time a state, you're there when a state gets legal. some guys we had on the show candidly, they overexpanded already. they have no backing you've got the balance sheet is your image that this is always going to be separate like in a dispensary, or there are going to be thc bars are there going to be thc

stores are we going to have candy bars? the other day we had mondalis on >> you're going to see it become more mainstream. with that, we believe it's going to be in deliverables, vapes, candies, food products. >> major brands? >> major brands. and major brands are already looking to the space how do we get in back to our board. major brands are a little pence alternative get involved today. >> sure. >> but they're going to look to the players that are dominant, not only here in the u.s., but globally who has a speaker boehner? who has a governor bill weld who has a prime minister maroney? that's really -- >> it is going to matter it is going to matter because i speak to all these guys offline and they're i don't know, i don't know you don't know with boehner? you don't know with mulroney

you don't know weld? >> they all have a committee they want to go to the right company, but they can't look stumd. these guys help keep stupid away. >> we think thc, you've got medical, you've got recreational i thought this was going to be a $200 billion disruption. i'm talking about the disruption i have now decided that i think that's way too low because of all these companies adopting what numbers, remember, disruption not saying you're going x in sales. disruption >> i think i was kind of pushing you to where it's 400. >> yes you were. >> and you start saying where does it end? even with hemp maybe you're getting protein so that's a subsidy. you're getting cbd maybe you're getting fuel or fiber. that's just that then dog care, geriatric care. >> important >> but it's huge and now you think about long-term care facilities. how many dollars you disrupt when you don't have sleeping aids, anxiety medication, painkillers and it starts to be cannabis you work your way down our bottling plant that we made with constellation, it's looking

to ready to make great benches in canada in q4. >> q4? >> yes >> so you're ahead >> we have this building, and we want to have the regulations and the site come together but we're look at q4 where does that go it's a huge market >> one last thing i got to ask you about. it looks like the new jersey setback. but good news in illinois yesterday. >> very good news in illinois. the governor, the general assembly have come together and voted it through we're looking now to the house we believe that's going to take place asap >> big state >> it's the fifth largest state in the united states new jersey is going to be close behind we believe that new york is moving closer. >> i think new york, because once massachusetts dispensaries really start kicking in, new york can't lose that revenue >> and let me tell you, connecticut, new hampshire, rhode island, they're all looking to it as well. >> all right let's leave it at that bruce linton he is chairman and co-ceo of canopy growth. and kevin murphy is the chairman and ceo of acreage these guys are coming together

you know that canopy has been by far the one i backed the whole way and it's been a huge winner. now it's canopy acreage. "mad money" is back after the break. oh, wow. you two are going to have such a great trip. thanks to you, we will. this is why voya helps reach today's goals... ...all while helping you to and through retirement. can you help with these? we're more of the plan, invest and protect kind of help... voya. helping you to and through retirement.

"lightning round" is sponsored by td ameritrade ♪ >> it is time! it's time for the "lightning round. cramer says -- buy, buy, buy, buy, buy, buy! >> buy, buy, buy. [ buzzer ] >> and then the "lightning round" is over are you ready, skee-daddy? start with joe in new jersey joe? >> caller: hello, cramer >> joe >> caller: great advice and all that you do for us. >> thank you >> caller: okay. my stock is realogy. >> there are a lot of them now it's not moving enough and you're not going to want to own that stock go to isa in new york. isa? >> caller: jim, isa calling from new york >> okay, man what's happening >> caller: i appreciate everything you do, man >> thank you >> caller: keep it up. we need you out here. >> thank you

>> caller: i'm calling about six flags. i want to know about china and the trade war. >> the last quarter wasn't that great and they overpromised on china. it yields 6% i think it's fine. i prefer entertainment properties, epr. i think that's better in that segment. let's go to charles in oregon, where my daughter lives. charles? >> caller: jim, how you? >> i'm doing well. how about you? >> caller: i'm doing great i'm looking at vestion corp. >> no, no. if we're going to be related to auto, the only one that's worked out of auto is cypress semi. they came on and said good things we're going stay away anything auto matt in my home state new jersey, matt >> caller: jim, it's matt in new jersey i'm an action alerts subskriesh. >> yes >> and a long time listener. how are you doing today, buddy >> kind of a mixed bag how about you? >> caller: i'm doing fantastic listen, i've been flipping these calls in diamondback energy.

every time it goes below the mid-90s or in the mid-90s and flipping out of them at 104, 105. should i stay with this strategy >> they're really smart guys they are really smart guys mr. stice is smart all i can tell you is i think that diamondback is real good. i do like pioneer better let's go to jeff in illinois jeff >> caller: jim, how's it going >> i'm doing well. how about you? >> caller: excellent so i want to get your meant on molson company it seems like it has good fundamentals, but it just keeps going down. >> i know. a financial company that a lot of people are not into a lot of m&a right now it's a good boutique firm. yield 6% i think the dividend is safe but i can't pound the table. it's just not the right time for this environment tom? >> caller: boo-yah from sunny cal. i've done well with shares of this company, clean balance sheet, no debt, solid growth

i'm thinking of adding on. what should take on? >> property management cloud i believe. if you have any nietzsche cloud, you could be like viva systems up $19.le 1. let me do more work on your stock. viva, congratulations to peter gassner. has he done a good job the guys at okta did well the other day too. i was in their building the other day. james? >> caller: thanks for taking my call >> of course >> caller: i want to say elena, i love her madly and your thoughts on sun works >> that's nice sunworks i'm not a solar guy. i'm pro solar, but i'm not going to recommend a solar stock that, ladies and gentlemen, is the conclusion of the "lightning round" [ buzzer ] >> "lightning round" is sponsored by td ameritrade ♪♪

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♪ let's say you deliberately set out to create a stock that fits the current cycles, one that passes the entire checklist that i gave you at the top of the show i don't think you can do much better than the stock of -- ♪ hallelujah -- dollar general who reported some really remarkable numbers close observers of the show know i've always been a fan of the dollar store chains. they offer tremendous bargains for regular people of course they got a killer candy aisle. but everyone on wall street has been terrified that dollar general and its dollar tree

would be annihilated in this trade war because so much of their merchandise is sourced in china. if you sell everything for a dollar and you get your stuff from a country that is being hit with 25% tariffs, very simple answer you got to start sources somewhere else or raise prices or lose money on a lot of stuff you sale if you keep ate a buck. dollar general saw this coming let's be real here over a year ago the company gave american companies pretty much fair warning i thought he made it crystal clear he wants to crack down on trade with china if you believed him, you had plenty of time to find new suppliers. that's a lot of what dollar general did. now it gets just 6% of its merchandise directly from the people's republic. that is a shockingly low number. it will lead to better prices for all who shop at dollar general that was not an easy task dollar general has more than 15,000 stores. it is a behemoth but it's nimble when it comes to sourcing. this company like another hero of mine, cisco, saw the trade war coming and decided to take

action before getting bush whacked. the department stores have been shredded because their stock, they needed to compete with amazon, they haven't been able to shift their sourcing away from china fast enough because they're so deer in the headlights about it. the only other retailer to move out of china with alacrity is williams sonoma, something laura albert told us she was doing not that long ago when we were in san francisco. it looks like it paid off. they had great numbers tonight dollar general has one guiding principle. they're all about keeping prices as low as possible for you the consumer listen to what the company's visionary ceo had to say on conference call. quote when you look at our gains, our core consumers continue to tell us i feel pressure but again, this core consumer is always under pressure financially. our income levels are on the lower end, as we all know. the story this time has a positive, positive spin, because he says that the consumer continues to tell us that she is back to work she continues to tell us that she has got a little bit more money in her pocket, more so from productivity, meaning working more hours than actual

wage growth, but more money. sure enough, dollar general is able to deliver a huge upside. 2.8. that's what they thought that's a big increase. they're also benefitting not just from higher prices, but from more store traffic. so important that means they're also taking share from the competition people are trading down from regular retailers to the dollar stock, or perhaps they're trading up from nothing to the dollar stores. now i always tell you that wall street's filled with snobs who refuse to visit downscale places like dollar general. and i'll use that downscale word i go to these places they're not like nieman marcus instead they spend time reading about these stores s they never going to give you the full picture dollar general gave us the road map for dealing with tariffs if president trump targets the rest of our imports from china, still $300 billion of goods tariff-free, other companies will need to follow in their footsteps.

i expect it to be expanded 10 to 25%. that makes the dollar general playbook incredibly relevant they figured it out. the companies that took the president seriously on trade, the ones that moved away from china, because why would you take that darn risk, have given their investors some spectacular gains. i'm looking for these kinds of companies. dollar general is the latest terrific example nobody would have thought a dollar store could get its direct chinese exposure down to a puny 6%, but dollar general sure did and now its investors are as happy as its customers stick with cramer.

some cloud-based stocks still got mojo i mentioned viva but after the close okta looks very good. z scale, i like what i'm hearing from those guys. but retail number was so bad what's cheap only looks cheap. i like to say there is always a bull market somewhere, and i promise to try to find it just for you right here on "mad money. i'm jim cramer, and i'll see you tomorrow

narrator: 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." ♪ to add affordable and sustainable protein to a favorite snack. ♪ hi, sharks. my name is rose wang. i'm from san francisco, california, here seeking $100,000 for 7% of my company, called...