>> 7:00 p.m., an hour from now. >> yes. >> i will tell you, although nothing is imper srious to the market sell-off, i believe amgen. >> we will see you back fo my mission is simple, to make you money i'm here to level the playing field for all invest tors. there is 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 trying to save you money. my job is to entertain and teach you like days like today call me or tweet me @jimcramer how do you get your head around a day like today dow plunged 800 points, s&p down

2.39% and nasdaq worse it's all about the bizarre action of the bond market. you got to remember the bond market is a lot larger than the stock market even though unemployment is at the lowest level in 50 years. something disconcerting happened with bonds earlier today the benchmark ten-year treasury had a lower yield than the two-year. that's a highly unusual setup. haven't seen it since the great recession of 2007. we have memories the yield in the 30-year treasury has fallen to record lows again that is piercing as bond yields fall off a cliff, they are taking the stock market with them. why? because of president the bears will say any team we see treasures like this, a recession follows. so even if things seem fine in

the economy now, there is a wide spread fear they won't stay that way and things could get worse in the future. now, i think that could be a misread of the current situation, but i can no longer dismiss these concerns given the pronounced moves in bonds we saw monday and today as i've told you repeatedly, i do not believe we're headed into a recession any time soon. a lot of people clearly disagree with me, smart people and history is on their side, not mine so tonight i'm going to put doom and gloom investigation to see what is driving this action. what can i say it's too extreme to dismiss. i'm not going to whistle past it keep in mind, i'm going to give you pure conjecture. i don't know any one more but all day people were talking my ear off about an elephant in the room we have an over abundance of

packagers or some are blowing things out of proportion or both let's go through the negatives there is a sense our trade war with china is starting to tank global commerce. all the ma'am toarmature histors are thinking we'll visit the holy tariff as the great depression got rolling, memories they think the trade war will be devastating and it's grown dramatically if that happens put your money in the save haven like treasuries they are buying treasuries hand over fist. if this theory is true and we reach a deal with china, everything getting hammered will come roaring back but that doesn't seem to be in the cards. second, the short-term interest rates are way too high last year fed chief jay powell raised rates without putting much thought into the impact they might have. we know that from the comments

in october they were very bad this is why president trump just tweeted that the fed is cool he was trying to help the stock market but it backfired. arresting the fed chief isn't constructive if trump was right and is right, look, love him or hate him, i think he is actually right about monitory policy. see, the fed could instantly cut rates solving the yield curve problem and giving the economy a nice boost and while long-term rates will slow, it's a perfect time for the government to borrow a huge slug of money to fund infrastructure but would require the white house and congress to work together. maybe you can slip it in with an infrastructure bond. suffice to say think trump is right and the fed has not done a great job. they took rates much too high. third driver, a huge percentage of government bonds in the rest of the world have negative interest rates when that p happens, it's becau they have little economic growth this situation causes massive

amounts of farm money to flow into u.s. treasuries where you get a much better return than from, say, german bonds. .4, the bond market is signaling a recession is around the corner and do reinforce that. you can argue aerospace is climbing to a halt because of the problems with boeing's 737 max. boeing actually is big enough they can move the needing in terms of the gdp this evening cisco talked about seeing cracks in the global economy. that is surprising it will hurt all of tech tomorrow because chuck rob, the ceo is a calm and cool-headed man but gave low guidance. macy's reported a terrific quarter, a warning sign some parts of the land scrape could be trouble it might not represent the way people shop anymore. the quarter was definitely worrisome. i have to talk about more about

it later still, boeing, cisco and macy's headed in the wrong direction. for me, since this is all new, i find this worrisome. fifth, the brexit deadline is approaching and a hard brexit, let's call what it is. it could be a disaster go to europe this is what people talk about when i'm over there. maybe it causes a freeze in european commerce just as there is a dramatic decline in chinese consumption where they sell product. a spector is haunting europe in a brix exit and wouldn't shock e that european banks are trading as if they are in big trouble. sixth, the trading worldwide with talk today this decline reflects the belief that bernie sanders or elizabeth warren might win the election both senators make no secret they want to crack down on capital. we better get used to the fear they install on wealthy people that own lots of stocks.

that could explain why dividend stocks get hit, right? the bond market competition is upside down, think about it. makes sense. invest torors expect a tax hike, that could be dumping them it's not going to happen unless they nominate a left-wing candidate and sweep the senate next year but maybe they are trying to price in the possibility. if so, we have plenty more to fall the seventh and final explanation, several large institutions might be shorting bonds betting against them and prices keep rising, they are getting squeezed and could be about to go bust it may sound farfetched but we saw something similar in 1998 with capital meanagement. a hedge fund run by smart people that took stupid risk that did damage to the market confessions of a street addict if you want to know. which is it? for the moment, it doesn't matter, does it? whatever the cause, we can't not ignore the bond market's behavior it's too extreme of course, many of these

negatives are a reversal, almost all are man made and b can can e reversed the stock market is handcuffed to the bond arket. if that's the case, the momentum is with the bears, not the bulls. if the bears ultimately turn out to be wrong, ultimately is a long time from now, in stocks and bonds it matters and can be irrational, wrong to ignore it this market is largely ruled by fear i don't like being scared into anything and remember panic isn't a strategy they will be proven wrong, i think the economy has strength to it. at least, strength enough to avoid a recession. but in the interim, i accept it being calm and patient has gone out of style i want to be opportunistic and say the bond market is wrong the truth is we've been selling from the travel trust. the bottom line, i don't blame anyone for raising cash here my trust did but it would be a big mistake to sell everything

don't panic when the economy is hanging on wait for more of a decline the s&p is up and the nasdaq up. let's go to larry in new jersey. >> caller: thanks for taking my call. >> what's up >> caller: i'm holding prudential now. >> that got hammered today >> caller: yeah, they did. historically, they have been a pretty strong stock with a good yield and they have a compelling value proposition to make financial wellness widely available. they have a huge business to execute on that, as well, but still, they have been trading at or below both value for awhile management is opaque about the investments they are making to become more efficient and the stock dipped almost 20%. they had a bad earnings recently partly due to updated assumptions and individual life business which struggle to improve the return on in the recent years i'm wondering if this falloff

represents the buying or recommend holding or seeing where things went. >> i don't like the way this stock acts i just don't like it i'd like to have them on i mean, there is something very wrong with where the book value is versus where the stock is versus the high yield and i have to tell you, i think pr us a fabulous company but i have to throw the red flag i don't know enough. we have to learn more because the yield is too high and the back value is too high let's go to bud in ohio. please, bud? >> caller: boo-yah, ski daddy. >> what's up >> caller: thank you again for talking sense when the markets turn goofy and everyone is peddling fear. one of the things i've been trying to do is incorporate your lessons about discipline and one mistake i made in the past, i l i'lledi'l i'lledi'll admit is buying at once. i raised cash and looking at buying with wide scales on the way down like you teach. >> good. >> caller: but your recent show

on flash crash has me thinking, let's say i want to buy more x, y, z stock down 8% from my initial basis. as i watch it trade and do my homewo homework, why not have a standing cancelled limit buy order down 25 or 30% just in case there is another half hour flash crash and i missed it and i'm at the supermarket >> down that much might be interesting because you're not going to get it down 50 after you're down 25 i think that's okay. i traditionally like people to always focus on their orders themselves and don't do anything, don't do anything like that but if you're going to put a standing order down, that's intriguing to me as long as it's 12 to 14, down 25 but remember, here is the issue, there have been the flash crashes with some stocks down 30 or 40. i would use a wider place to do it i may not get hit but that way i won't be worried let's go to jacob in new york,

jacob? >> caller: hey, jim. i got into draw box at 1940, thought that was a deal. apparently it was not. should i hold or get out are your thoughts? >> mr. house has done a great job. holy cow there is a lot of competition coming in and now that's the stock that's not working and won't work and cisco really put the knife to a lot of the expectations in technologies so there is going to have to be a readjustment and i will find it i think many people will find it surprising momentum right now people is with the bears not because of the -- not with the bulls and it's because of this bizarre bond market i think with a good economy, the bears could end up being wrong, but i can't be certain right now after what happened with the bonds. on "mad money" tonight it was a disaster on 34th street today. i'm focussing on the boarders of may s macy's active earning and after

the knock down drag out session, i know you have questions. i'm opening the phone lines to hear from you. we can be constructive but painful day for averages, there are silver linings, got to point out a buying opportunity but let's not get over confident and stay with cramer >> announce >> 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 miss something head to madmoney.cnbc.com.

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you listen to the macy's conference call this morning, you think we're definitely headed into a recession. it was that grim the culprit they had too much inventory and saw a lack of foreign buyers makes sense. the strong dollar is very expensive for foreign tourists

to come to the united states that's what tourists come to see and definitely not going to come on a shopping trip now with the dollar higher. the blue mercury business excellent. it wasn't enough to save macy's from a severe disappoint with the company earning 28 cents a share. looking for 45 cents that's so bad i thought it was a missprint. to make matters worse, macy's is in the cross hairs of the latest tariffs on chinese merchandise if you're on the call, management is concerned about what higher tariffs might mean for the consumer i think it's a legitimate worry at this point. for everyone fix sated on the bd market thinking we're headed for a nasty slowdown, at least one part of the economy is in rough shape. look at the stock right now. it's supporting a nearly 9% yield because investors, they don't believe that the company can afford to keep that dividend at these levels. the company's balance sheet is the best it's been in years and management didn't shade down the forecast by very much.

the truth is older investors are thinking back to 1992 when macy's filed for bankruptcy, i think that's highly unlike lly t we all know retail is a tough business and there are lots of companies that can't make it macy's has structural problems like every department store chain, especially the ones that miss the mark with fax or no tourists spending. the bond market is correctly forecasting the end of the expansion. especially if the late tariffs get slapped on the chinese exports come december. but at the risk of sounding a little pollyish, i don't think it's representative of all retail you should never take the key from a troubled company and all the stores are in trouble. they are simply shopping different places as big as macy's may be, it's little compared to watch, my acronym for walmart, amazon,

target, costco and home depot. those five companies have scale to absorb the cost of the tariffs or slightly raise prices to pass them onto the consumer given the prices are so low, i don't know whether people would notice if consumer is you are the hihul shop at dollar general they benefit from a slowing economy. the consumer waits for them to off load to tjx or burlington and picks up the same stuff at a fraction of the price. the macy's conference call was brutal but less about the state of the consumer and more about the state of the mall-based department store in this day in age, you have to have a major online presence or you need to offer incredible bargains like the dollar stores or the off price change. everyone else, let's just say their stocks are very hard to own. let's go to nick in arizona, please, nick >> caller: ey, jim, thanks for

taking my call. >> you're quite welcome. >> caller: yes, with the retail sector being beaten down as much as it has been, i was wondering what your opinion for nordstrom was as a value stock or dividend stock. >> you know what they are not working value stock and dividend stock are not working. my travel trust owns a position in kohl's. we saw some the other day. we said no, no, kohl's, nordstrom and macy's are regarded as one big bad stock and i'm not going to put you in that house of pain it's too hard. how about tim in florida, tim? >> caller: hi, jim, how are you? >> i'm good, how are you >> caller: i'm good. thanks i bought stitch fix mid july at 2960, now a month later it's lost one-third of its price. it appeared to be on the upswing. the financials while not great seem to be okay at the time. it's an interesting business model and now at 221

what are your thoughts >> this is like real this whole cohort is getting hurt the reason why is people feel all the ipos were too hot and they come back down. i think stitch fix is a very good company is it a $2 billion market cap come opinion knee that should stay there that has to grow in the market cap. when i met management, i think they are smart i want you to hold on and maybe buy some lower this is a brutal market now and i don't want you to panic. retail is very hard, not everyone can make it macy's tell as brutal story. in this age, we have to be online or off price. macy's is caught in between. much more "mad money" ahead. i'm pointing to retail players that could be worth considering following the massive declines and my sell off strategy session, i'm opening up the phone lines to hear from you crameri cramerica. it doesn't necessarily install confidence in the cannabis space

but one company in the group is beating expectations and rallying off lows and not the big dog. i'll reveal the name when i sit down with the ceo so stay with cramer -driverless cars... -all ground personnel...

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today's action was difficult to understand to say the least the bond market and stocks on one hand we have the bond market in recession and on the other hand we have a robust job great number maybe there is other signs of weakness i don't believe we're headed into a recession any time soon, we can't ignore the declines nor ignore things like cisco's forecast just this evening. it's hard to stay calm when you see stocks flashing red. i don't blame you. you have to remember panic is not a strategy the market is ruled by fear right now and some could be justified but let's get it conquered. i'm opening the phone lines to help you strike thategize on th ride tomas? >> caller: thank you for taking my call. how are you? >> good, how are you >> caller: trying to stay out of the blazing arizona heat. >> all right call i.

>> caller: i'm 21 years old and just graduated with my masters my stock was trading higher than my student budget but has take an dive the last couple weeks as is the rest of the semis but i've been watching it closely. the stock is dialing and i want to know if it is ready to buy or wait for may lows? >> i think you may have to wait. i say that because of cisco's forecast tonight but also because look, they have a lot of business in china and the president yesterday extended what some think is an olive branch and the chinese didn't do anything today i think caution is warranted particularly because they did not have a great last quarter. thank you, though. let's go to mark in nevada mark >> caller: hi, jim, how are you doing today? >> good, how are you >> caller: hanging in there. i had some bad experiences buyi buying dividend stocks so are there any in light of the

ridiculously low interest rates right now. >> right. >> caller: are there any stocks right now that offer three qualities, stable dividend with a low payout ratio, strong balance sheet but the big thing is a stock that offers some stable price and that's been the big problem is the volatility in stock prices are there any stocks out there that offer all three >> well, one that just reported and doing a lot of things right is cvs, which is the drugstore chain a lot of people feel they were concerned but the cash flow is good and numbers were very good, best in seven years and yields more than 3%. the second one i would tell you is coca-cola it's come back down and at one point it was up today up 50 cents and got another 3% yield growing and i think both of those would fit the bill so let's look at those great long-term situations let's go to phil in new jersey, please, phil >> caller: hey, jim, how are you, my friend

>> i'm good, phil, how are you >> caller: good. at least we got the eagles to look forward to because the stock market isn't doing it for me. >> i know the feeling. i'm doing fantasy and watching the eagles but i can't take my eye off of what happened a lot of people are getting hurt and can't focus on anything else what's going on? >> caller: so i'm 42 years old i have a diversified portfolio and s&p index fund and stocks and then i was looking to add like a black rock to my portfolio since, you know, the risk of recession coming to look for something with a good yield, good track record and good management i'm wondering everyone though it's considered financial and maybe borderline with being like an investment company, is this a good stock to buy or is it too volatile >> no, no, no, sometimes you have to think of the stocks divided by ten and act like it's a $41 stock. probably one of the most able

ceos in the country. i think the business is good you're right it yields 3%. i have no problem with putting ochoen a qua on a quarter position and let the volatility make you a run. business is good is it perfect? no larry fink will try to make it as good as possible. i like your selection. let's go to jim in new york now, jim? >> caller: hello, jim, jim from new york. >> okay. >> caller: how are you >> good, how are you >> caller: i'm pretty good today. i learned my lesson about not panicking and i learned a lot from you over the years. i learned a big lesson in decemb december i sold out and bought back in and since then i've been slowly building my position i need guidance.

i'm pretty much fully invested and diversified but probably 60% of my portfolio, there is a lot of red not like i can sell and take profits. there is a couple greens going on but i don't know where to go from here, whether or not i should stay put. >> i think the sell off got a little over done today because of cisco's guidance, which is a big cap stock. we'll get a little more choppiness tomorrow, i believe but i think you can't sell into this i think you have to wait for a little bit of bounce i think you do need to lightening up a little you know for the actionalertsplus.com club, i told people you got to take your cash up and now that the cash is up, we have the freedom of being able to choose you need to have that freedom in your head. right now you're stuck and i can hear it in your voice. you do some selling and a little strength and you'll make it so you can view this as an opportunity, not a nightmare thank you so much for the calls.

right now, this market is entirely by fear of things that are wrong but not everything i agree with some of it. i don't agree with others. cnbc is every angle of the sell off covered. there is a special tonight after the show at 7:00 p.m. so do not miss it. much more "mad money" ahead. i'm eyeing two stocks that are worth considering and after the sell off, feel like you need to mellow out i have a stock to help you and don't let today eavesdr's drop you. i'm taking calls in tonight's edition of the lightning round so stay with cramer. tell him we're flexible. don't worry. my dutch is ok. just ok? (in dutch)

tell him we need this merger. (in dutch) it's happening..! just ok is not ok. especially when it comes to your network. at&t is america's best wireless network and now, get the option of spotify premium on us, with your unlimited plan. more for your thing. that's our thing.

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and accessoriesphones for your mobile phone. like this device to increase volume on your cell phone. - ( phone ringing ) - get details on this state program call or visit when the market is getting steam rolled like today i try to ex sen wait the positive what is the positive about a horrific day like today. this is a real ugly tape you know what this is? frankly we have an address for it however, there are things you need to remember like some stocks get cheaper as they go

down why does that matter there is genuine buying opportunities as long as you're willing to be patient and pick up stocks. buy, not statement buys but let them drift down. for example, this year we've had a deluge of ipos, some good, some bad, some terrible. every time they come public i tell you it was worth buying only on price. don't do it yet. wait, wait, wait time and again these newly minted stocks would shoot up to ridiculously expensive levels where i felt uncomfortable recommending them. somehow people are claiming i'm the biggest leader of ipos tell that to the bankers that are pushing we work when i said it would be a disaster in the making depending where they did price it i did a piece, by the way, last week on the show talking about how i may have been too cautious in not recommending ipos but i didn't want to hurt anybody. i'm standing by that wow. guess what you're getting the price break we've been waiting for here is one i like that's been

hammered call revolve group. okay i mean, this is nasty. it's a web-based fashion retailer taking major market share from the big department stores, not after revolve became public in early june, i told you a terrific story but i said no, can't buy it stock had run up so dramatically from 18 to 34 in the first day you never had a descent buying opportunity. we don't chase on the show i told you keep your eyes peeled for a pull back. thanks to the panic driven experienced massive declines in the wake of what was viewed as a disappointing quarter and plummeted another 14%. a month ago the stock was at $38. now it's at $22. $22 and change this is the lowest level since this ipo look at this see, we said uh-uh, uh-uh, uh-uh, uh-uh here i am saying okay. stock stop at zero because that's about 20.

so look, this is about more than one company. i got to talk about a lot of different companies with the same pattern we see the same thing in real real this could be the opportunity. i'm not going to run from it i'm going to embrace it. let me explain i know it's hard to even consider buying something that's crashed into earth like these things especially in retail. macy's just reported a willful quarter and cut the forecast sending the stock tumbling 13% today. it has 9% yield. nobody cares how do we go about something like this? i go bullish on revolve or the real real if may sees cy's is g obliterated. these are why. they are disrupting and we like disrupters they are disrupting what is left of the department stores and it's working why don't we start with revolve group? it's straightforward runs three high-end stores the high-end revolve and the cheaper super down

the company's premise on the idea brick and mortar were too broad like department stores or like macy's or too narrow like specialty stores, both are being hurt if they are in the mall revolve figured they could use the internet to create something in between and built technology platform to automate inventory and trend forecasting so they can predict what you'll want before you know what you want. the company is trying to turn the fashion business to a science. the launch 1,000 styles each week as an experiment and double down on whatever selling you want these -- the old lumbering dinosaur department stores can't do this this business model allows revolve to operate with extremely lean inventory, when traditional retailers have too much merchandise, they have to mark it down giving you deep discounts and hurting the profitability. but for revolve, 79% of the sales are made at full price can you imagine? they have a most of popular private brands, too, and carries much higher margins than selling

product made by other companies and they are great at dig diital marketing. they are feeling ten-year, two-year, 30-year, like their hair is on fire. put it together and you have the makings of a fantastic growth story which is why the stock falls into the stratosphere. in vent weeks, investors are worried about the new tariffs as resolve sources are as much as 40% from china i think they can pass the tariffs onto the customers and more importantly, any chinese trouble i believe at this level is at leaast baked in i think some of these have then last thursday the company reported a quarter widely panned and annihilated. that's a mistake look at the actual numbers here. revolve posted a tiny earnings their sales came in higher than expected we care about revenue up 23% year over year and a slight uptick from the previous quarter and the company had 1.3 million

active customers up 36%. sounds like pinterest. that's earnings before earnings and interest and the mid point was about $2 million shy of the 605 million number wall street was looking for. they are talking 20 to 22% growth i'll take that down here, yeah. in response the stock plummeted 15% friday another quarter wasn't perfect but that's a pretty extreme reaction. revolve missed the earnings by a penny. the sales guidance was a bit conservative and the stock is pe pu poll ver rised and when you mess that up a little, you're going to be punished i get that mainly revolve sold off because the investor base was expecting too mufch that's why i told you not to buy it in the 30s. bad holders. your enemy fellow shareholder so

when revolve didn't shoot the lights out and gave you spectacularly opposite forecast, these weak-handed shareholders dumped the stock they had to give a big guide up and had to have a big beat and didn't get it. in my view management is reasonable they are using cash to build out lower-end sight. these guys don't what to over promise. that's a good thing. and there was plenty to like about this quarter if you cared enough to do the homework. revolve's revenues accelerated and margins increased. can you imagine any other retailers? the orders grew by 30% and platform in great shape. some of them raised the price targets but in this brutal market, none of that seems to matter so you're given the chance to buy revolve at a huge discount we wanted a pull back and got one. at these levels revolve is selling for 29 times next year's earnings estimates for 2021. 20 times earnings with a company with 20% growth, okay, that's

not bad. we've seen a similar weakness in the stock called real real i don't like that name it sounds stupid but you know what we work sounds good and i think that's a bad investment. real real is the online consignment shop where they help you sell your used luxury accessories and apparel. it plummeted 23% on friday no apparent reason i could find. last night the company reported fabulous numbers after opening up 10%, i thought that was interesting and perhaps correct, real real got dragged down by the market ultimately closing down 16% i'm sorry, that kind of reaction borders on the panic i don't think that represents rational thinking. i think you can start building a position here and buy more if it keeps failing. leave room we have to understand these stocks could be falling knives where is my falling knife? i like that one. where is -- what happened to my

bowie knife? this is a depiction of every stock people are thinking including these and i have to tell you, you can't catch this watch. you can't catch it that would hurt. what you do is catch a little of it well, i mean, it makes it so it's not a knife if you catch a little here is the bottom line. this say horrifying tape but stocks get cheaper as they go lower. they can't throw them out. the victims. we told you to wait. we waited and now we're green lighting revolve group in the real real because their stocks have come down dramatically even though the actual companies are in good shape. the long-awaited buying opportunities arrived. don't be afraid to take advantage. remember the market is so horrendous you need to start small and stage buys on the way down because there is no way to tell if the two beaten down stocks will bottom any time soon stay with cramer

it is time, it is time for the lightening round

buy, buy, sell, sell, the lightenining round is over are you ready? let's go, let's go, let's go let's go to tommy in louisiana, tommy. >> caller: hello, jim. my stock is illinois they had a rough second quarter and i want to though your thoughts with the glass come tanta -- container company. >> they spent a lot of time in the wilderness we'll say take a pass on o.i jim in virginia in the virgin islands, jim >> caller: hey, how are we doing? >> good. how are you? >> caller: with the marketing being up yesterday and down today, i've been investing sever several semi conductor companies. my largest holding is michael electronics, i'm certainly not

at the mind set of a day trader but more focused on my retirement. >> it's a good company there are i expect it to go down tomorrow off what cisco had to say. it's a good company at 15, 16, better than 17 we expect these stocks to have a little more weakness let's go to margry in georgia, margry >> caller: hey, jim. >> hey, margry. >> caller: i watch your show and bulldog wants to know what you think about ccp mid stream. >> i don't like the mid stream i think the whole partnership group, i have been very much against and they just aren't working. they don't have growth trust them john in michigan, john >> caller: love the show, jim, just want to know what your thoughts were on solar edge. >> that stock has already left that one has left the barn i mean, it's way too high versus

the rest of the market so we're going to take a pass on that joe in florida, joe? >> caller: cramer, rough day on the street today. >> very rough day. >> caller: all right let's talk about amarin. they were at 22 and went secondary at 400 million at 18 and fda threw a kaucurveball an today upgraded to out perform and one of the few stocks that actually went up. >> i think it's okay it's not my favorite we got to go a little more conservative and that, ladies and gentlemen, is the conclusion of the lightning round >> announcer: the lightning round is sponsored by td amari trade. ♪♪ ♪♪

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even devastating today, remember, this is the worst day for the dow this year, there could be positive themes if you're willing to look hard enough take the cannabis cohort wall street started to care about the actual results and not just the grand plans that could go nowhere but a rough month for the averages, many of the marijuana stocks have been bouncing in part because they reported better than expected numbers which brings me to village farms international. that's a small speculative canada cannabis grower this is an interesting company because originally, it was a produce play, yeah, that's right. greenhouse grower of tomatoes,

peppers, cucumbers and legalized weed and started growing that and outdoor hemp production for the cbd space. yesterday morning village farms reported 27% sales growth when you include the results from their joint venture, which you must do. the company had a surprise profit for cannabis they owned 50% of pure sun farms that saw sales grow by 125% versus the previous quarter the stock rallied 2% on the news because it rounded up to the print and today gave upmost so could the better run marijuana stocks be a good place to go in a brutal take? let's dig deeper with the ceo of village farms international learning more about his company and where it's headed. welcome to "mad money". >> hello pleasure to be here, jim. >> thank you, sir. since this is your first time on the show, walk the viewers through what you do and how you pivoted from being a greenhouse for vegetables into something bigger and i think we're lucrati lucrative.

>> we have three decades of large scale decision agriculture. we have almost 10 million square feet of production and greenhouses between the u.s. and canada and tremendous know how, decades of experience growing high-value crops for us the switch to cannabis was just really another agricultural crop and that regard assets, so we've been very happy in the produce business we're shifting that platform south of the u.s. border and this, the cannabis prd dublgts, cannabis as well as cbd in the u.s. just givers us great opportunity to deliver unmatched results. that's where we're headed. >> i looked at your growth, which is extraordinary but also you have a very well aligned management team. you own a great deal i think a lot of people want in

the cannabis space, they are not used to seeing that. a lot of the ceos have almost no stock. you're pretty entrenched, right? >> sure, i have about 20% ownership. i'm the founder 30 years ago and i really believe in the future so i'm aligned with our shareholders and i think it brings a different element because i'm at risk and, you know, delusion of the share price doesn't go up. we want to be 80% correct at decisions we make will pay out and in that regard, i think i am different, but it's really about our team we're very team oriented we're village farms. most of our people have been with us 20, 25 years if not 30 and more importantly, the young team that we've put together that have taken our strategy and now bringing it to a cpg platform in canada i think is very exciting because we launch our brand on top of the fact that we're probably one of the

top performing companies in the space at least from profitability, both sides of the border, highest e band in 30 ye there is nothing more prudent than being a low cost agriculture. every agriculture ka momcommodil go out. >> one question, you do have a sense of relationships from your vegetable business with walmart, whole foods, trader joes and kroger would they be willing to take your cannabis and you sell it to them white label and they make cbd products out of it of their own? >> that's absolutely on the radar screen it's taken a lot over 30 years to have these relationships and it's a great company and you don't just get in the door easily if we can leverage that up even

though they are different departments, at least we're coming in with a reputation of selling most retailers in the u.s. and canada over 30 years and look forward to doing that as well as developing or purchasing our own brands as we move forward so yeah, that's all on the table. >> all right terrific congratulations. good quarter sorry you had to report during a rough time for the market. too bad. thank you. that's michael degi glio speculative but low-cost producer of a commodity which is what this is interesting stock. stick with cramer. and you should be mad at simple things that are unnecessarily complicated. but you're not mad, because you're trading with e*trade, which isn't complicated. their app makes trading quick and simple so you can strike when the time is right. don't get mad, get e*trade and start trading today.

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♪ >> good evening and welcome to a cnbc special report, markets and turmoil. the dow having its worst day of the year, dropping 800 points, the fourth-largest point drop in its history. the s&p 500 falling 86 points hitting a two-month low. the nasdaq getting slammed as well, down more than 3%. it's being blamed on interest rates in the u.s. are signaling trouble ahead. the second key f