back here tomorrow at 5:00 meantime mad money with jim kramer "mad money" starts now hey, i'm kramer. welcome to "mad money", just trying to make you some money. my job, not just entertain, educate, teach tweet me at jim cramer nasdaq losing .04% and market is experiencing a coup d'etat. the former leaders are being

guillotined as the action in the bomb market indicating the economy is improving we don't need those kinds of stocks anymore the market is constantly trying to predict the future, takes inputs, aggregates them, the consistent growers are out and the cyclicals are in that's right, the companies that can build big numbers when the economy is in shape, they're back there's just one problem, the random set of inputs and outputs is missing a key ingredient, emotion. if you want to be a successful investor, you need to check your emotions at the door and right now that's not happening. let me show youwhat i mean why don't you take a stock we all know, merck, then amazeingl

it spent two decades lots in the wilderness until they discovered keytruda mostly lung cancer, in trials for many types of tumors, the strength of keytruda breathed new life into merck stock. now merck has dropped five bucks in two days with the darn thing coming back down to 81 at its hideous lows, it was down nearly $10 from last friday. $10. how the heck did that happen first, did anything negative occur at merck when it comes to its pipeline, its portfolio, nothing, nada, if anything a couple rivals in the cancer space produced suboptimal results in papers, at least this very weekend when we look at drug stocks we have to think about pricing. did any politician running for

president have anything new to say about pricing? >> no, what caused the downturn, the rotation i think it's the rotation out of stocks that thrive in a slowing economy and into stocks that thrive in an accelerating economy. think about it, what kicked off this merck stock, it was last wednesday, a weaker payroll number, a number that made it clear that the federal reserve has plenty of room to cut interest rates without bowing to presidential pressure. what happens when the fed cuts rates, the academy economy is g get stronger stocks like merck become less attractive they swap them in the cyclicals, in other words, merck is going out of style in the wall street fashion show it is fashion week, right, so we're talking fashion show yep, merck is not going to benefit from the expected rate cut so the stock has lost its appeal i get that play book, i used to

live and die by it if you're factoring in the emotional component, you're not doing it right this morning, merck stock was in free fall. at one point it was down 5.5%, people, that's ridiculous. what happened. i think the honestly the investors panicked, because they figured something had to be wrong with the underlying company. i always said no one ever made a dime panicking, and merck proved that right you want to know why, in the span of two days, they went from a somewhat expensive growth stock to a cheap stock paying 2.21%, buying merck at 78 is an easy call because i expect key keytruda to grow for years and years. i expect that the 78 bottom will hold, even if it doesn't, merck

keeps getting cheaper and cheaper as it goes lower the only thing that might hurt them is if elizabeth warren wins the democratic primary, she wants single payer for the moment, biden is in the lead, and he's not going to do anything to seriously damage the pharmaceutical industry. it's not slow and steady like merck who are seeing the highest flying growth stocks one of my favorite companies, the great ceo, it's the best the consumer package good stocks, got slammed for no reason whatsoever, got too expensive versus its own trading range, its own history, same story with mastercard, ma and visa. these are two of the best in the financial technology space, and classic growth secular industry. they're momentum stocks, yes, momentum and that was beloved by portfolio managers who need to show exposure to the financial

sector visa and mastercard got polarized today. they think something like citigroup is a cyclical with the 3% yield how powerful is this rotation, just city stock is having a nice run, the company was telling a story yesterday about declining fixed income, declining commodities, declining courtesy, and declining equity trade, i think the stock would have been obliterated if not for the rotation, flip it, it would have been the exact opposite. finally there's a tale to retailers, macy's and costco, macy's seems to be doing quite badly. if something doesn't change, a radical improvement in the economy that gets shoppers back to the mall and i know that's hard to imagine, they have to make people feel, might have to cut its dividend which yields 9% if you think business is about to improve thanks to the fed, macy's looks enticing. costco gets a huge chunk of

sales from membership fees, it's a steady stream of economic downturns and got amazingly and consistently high sales. when the going gets tough, the tough shop at coastco if you believe the economy is actually slowing otherwise the price is too pricey, now what do you do with this kind of action at home? do you try to anticipate all of these different rotations? >> no. i think you need to view it as an opportunity to get in, not get out. if a high quality stock is down enough, like merck was this morning, then that's your chance to pounce. if a stock rallies to the point of absurdity, like merck did before the big decline, you have my permission to trim a little only if you can't handle a hammer good investors can the bottom line, you know what matters at the end of the day, the quality of the company

merck, costco, mastercard and visa are the best of the best. citi, they're cheap. let their trash be your treasure gregory in new york, gregory >> hi, is jim there, please, jim? >> you got jim what's up. >> hi, i was wondering about lumber lumberly kwi d lumber liquidator, it topped out at 13 today, with speculation they're going to go private. what can you tell me >> a lot of retailers are reluctant to go private because the ones that have are about to go disastrous. >> i like to buy best of proceed, i think you could buy home depot, i wish marvin would go on. >> austin in kansas, austin. >> jimmy boy, i was looking for some chinese stock that should have limited impact from the trade war and came across

alibaba. >> the only one wort buying, it has real u.s. financials and it's doing quite well, it's a gigantic company and i will b z bless it it's too cheap after the numbers i have seen. lynn in michigan, lynn >> hi, jim i admire your work ethic and the long hours that you put in, sir. >> thank you, buddy, i sure do try. >> my question is about bud. what do we do with this stock, can it get back on track to what it once was? this micro brew trend is it really holding it down >> no, what's holding it down is that it doesn't have great growth i just, i think that what's happened is it's been consistent, though, and the consistency has allowed the stock to go up i don't mind bud, i just think that it's not, at this price, co coca-cola is actually cheaper, and pepsico, talking about that in my thursday conference call

i hope it comes down investors are itching for something that fits the image of a stock that could gain when the economy grows and the quality of the company is what's important. wondering what's next for golden treasuries, boy are they eye opening, what do you do, i'm giving you my game plan when it comes to at&t. and announcing a couple acquisitions, and people didn't like them, investors overreact why don't we speak with the company's coo and find out stay with kramer. -- send jim an e-mail to madmoney @cnbc.com or give us a call at

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ceased back and forth, we have seen a massive flight to safety and other asset classes. investors flock to anything with a reputation for safety, and it thrives in times of economic weakness or turmoil, and that's why money has poured into government bonds, not just here but all around globe pushing prices up, and treasury down they are risk free it's why the price of gold has soared too, the precious metals retains money when congress is going to a hell in a hand basket i recommend gold, ecoby the way, too, and i do that for the same chaos reasons. however, after these mammoth runs, i have to wonder, are there's flight to safety assets still safe tonight we're going off the charts trying to answer that question with the help of carley garner, she's a, oh, right back at you she's a brain technician who's the cofounder of the carley training and the author of

higher probability trade her view, there are no safe places as a matter of fact, there's no safety in the safe haven garner has a terrific track record when she takes a contrarian position like this, i have to take notice. one of the biggest mistakes investors take is we tend to react retro actively rather than proactively. they're contrary to the way you may have been having in response to the past, rather than anticipating the future, that's a big mistake garner finds that people find themselves buying assets like gold and treasury bonds when they panic, when they feel compelled to, instead of buying opportunistically and waiting for prices when there's enough fear, and gold and treasury prices have been pushed up too high, the safe havens become risky that's where we are. golden treasuries could be vulnerable to significant declines she believes and people who got in at lower levels do,

let's start ten-year u.s. treasury notes, between over seas buyers chasing yield, and domestic buyers seeking safety from a theoretical recession money flowing out of the stock markets in bonds is amazing. garner believes the ten-year has reached unsustainable levels take a look at the chart showing historical trends, this is five years. according to moore research center incorporated or mrci, the tenure has struggled over the ten-year future turnovers. generally in the last week of august, the ten-year tends to experience a major decline in price. sure enough, that's exactly what we have been starting to see over the past week it has a lot to do with rotation at the top of the show how about longer term treasuries, the monthly charter, i shares, 20-plus year treasury, etf, this is the one that everybody talks about, the one that's on a lot of people's screens.

longer shares ran into a brick wall last week reversi reversing course after assuming positions, back to the great recession. rather remarkable. we always think the charts tell us, polygraph tests, just as that happens, the relative strength tests down here, poked above 70 for the third time since the financial crisis, i mean, come on, this is extreme. on three other occasions, it came close to 70 when you look at the last five times this happened, they led to dramatic selloffs in long-term treasuries time has just been brutal. now maybe this time is different. anything's possible. but garner thinks the balance of probabilities is against it. sure, she's saying that the odds of u.s. treasury prices holding these levels are slim. the odds of treasury going higher, dismal, which brings us to the other big safe haven asset, let's talk gold, please after being stuck in a narrow trading range for years. in june, the precious metal

broke out to the up side, thanks to a relentless barrage of negative headlines about the worldwide craziness. disappointed short sellers covered their positions, which pushed prices to new heights then fomo kicked in, fear of missing out. that's what you get there. four months ago, precious metal selling, now just under 1,500, and garner thinks right here right now running out of mo jo, her reasoning, take a gander at this weekly chart of gold futures which includes the commitment of traders from the commodity trader, which is the cotton report. the cfc releases data that tells you what large speculators, money managers, small speculators are doing with future positions, and garner relies on this data to gauge whether the big money has gotten too bullish or barish. according to the most recent

stats, there are roughly 300,000 net long positions in gold futures. garner points out that gold tends to peak at precisely those levels the problem is when you get too many bulls, you end up with a situation where there's no one left to buy, which creates a vacuum where prices collapse the high net long position was 316,000 contracts, mid-2016. and that preceded a massive melt down, gold falling from 1380 to 1120 as the overcrowded trade on wound itself brutal, stocks got crushed too put these figures in perspective. during the 2011 metals bowl, large spectators were holding 240,000 to 250,000 contracts we're running well beyond that level, and garner thinks that's bad news for gold. she suspects buyers are running out of ammo. how about the monthly chart of

gold futures, what you see is a little confusing, it's a market that has been relatively sluggish for years we soo thee that. it's kind of doing nothing even this big move is minuscule compared to the giant gold run we had during the financial crisis, when investors were buying precious metals hand over fist there's a good reason for that, we don't have a financial crisis we're probably not going to have a normal recession, at least not anytime soon gold is ceiling at 1560. she expects prices to drip down to the low end of the trading range with a floor of 1260 as support. why, that's because of the relative strength index. this has broken out about 70 for the first time since the financial crisis, suggestion that gold has gotten way over bought garner points out that most markets reaching over bought levels is usually the beginning of the end for a rally that's it. let's say she's wrong. the economy is headed for recession sometime sooner or

chaos happens, garner thinks if you go to 1,800, she doubts that that's going to happen the bottom line, for months investors have been moving their money into safe haven assets like treasury bonds and gold, but they have now run up dramatically, and the charts, interpreted by the always astute carley garner suggested it's time for bond prices and gold prices to come down, perhaps come down hard

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a question a lot of people have been asking me, what do you do when a talented activist hedge fund pushes for major changes and an iconic american company with stock, for value creation, you know what i say, i say you buy at&t last night at the top of the show, i mentioned activists took a major position in at&t and are trying to convince management to make a series of moves that would transform this tarnished law guard into something that's more attractive to big institutional investors. it's a stock that many of you own for that juicy dividend, we're going to circle back to the story. it's too big a lot of times what happens is you have a story that goes one day, and people forget about it. not that for you, you deserve

better see if everything goes right here, the upside potential is too good to ignore, and too good for me to just gloss over. if elliot somehow fails anyway, i think the risk is minimal, 5.5% yield, bountiful. ever since randall stevenson took over as croeo in 2007 he h worked tirelessly to transform into more diversified. he made a series of acquisitions, snapping up direct tv, and devouring time warner in a mammoth $109 billion deal. att took on an enormous amount of debt to fund those purchases, and so far they haven't paid off. the company has been transformed but the stock is stuck in the 30s where it's been for ages in 2012, att traded at 34. now it's at 37 yeah, it's up 3 bucks. not even 10% in seven years meanwhile, the s&p is up more

than a hundred percent in the same period. wall street has lost faith in management's vision, too many failures, missteps, management opportunities, these days, individual investors who like the stock because it's a household name with a bountiful division there's very little institutional ownership, the second fewest, many hedge funds and mutual funds don't want to go near this thing that's where elliot comes in, a catalyst elliot. yesterday morning the activist firm led by the legendary slash, notorious paul slinger, announced that it had taken a 3 pn3$.2 billion stake in at&t and released a record. i don't want to bury the lead, right on page 1, elliot says they have a plan to get at&t stock to 60 bucks within the next 2 1/2 years, for 65% gain, versus closed on friday night, how, i'm going to walk you

through it you have to understand the argument, if the plan, if you're going to buy the stock you can't just mindlessly piggy pack off elliot's homework, as much as i like his home work, you deserve better so do they first, point out at&t's long time underperformance, lagging in the s&p 150 percentage points over the last decade, even when you include dividends, it's lagged verizon by 88% over the same period. ouch second, elliot explains they're taking under performance after bell was broken up in 1994, the company that became at&t, grew by acquiring the phone bills, a fabulous tragedy that made shareholders a fortune. at&t tried to buy t-mobile in a blatantly anticompetitive deal the largest break up fee of all time $4 billion which helped turn this one sleepingy wireless company into the fierce competitor we know it as today that failed deal was bad

elliot argues that the successful ones even worse in 2015, at&t spent $67 billion to buy dtv, direct tv. that's a satellite television service making itself the largest paid tv community in america, right at the peak of the paid tv business, and direct tv has been a total dog since then the technology is not even any good it's way behind the times. and then a few years ago, at&t decided to buy time warner in a deal that closed last summer why acquire, at&t has yet to articulate a clear strategic rational while they need to own time warner. elliot contends expanding into the businesses caused distractions that have contributed to the operational performance. that is one reason at&t wireless is losing market share for years. it is too big and complicated to

mash it's an old school conglomerate and wall street loves break ups. what's the plan, let's go over it elliot wants to pay down debt, and bring in better leadership they want the company to consider selling any assets they do not have a clear strategic rational for being part of at&t. that includes direct tv, the wire line business and media properties they want at&t to bring in outside consultants to review its operations in order to figure out how to eliminate and boost margins. they want to stop making major acquisitions and pay back debt, buy back stock, on the dividend side elliot didn't call for the head of randall stevenson or his team to step down but the success of the plan is predicate on having the right team in place to execute and oversee it, end quote, and i'm hearing they want stevenson and his chosen successor. given that stevenson is expected to retire soon that could be an easy way to bow

out, hand the reigns to someone else, hey, no harm, no foul. with all of these plans in place, elliot believes at&t can earn $4.80 per share in 2022, $1 above the current consensus. let's do the math. say the stock trades at 12 times earnings, seems reasonable, if they can win back wall street's trust, you have a $55 share price, throw in the dividends for that feared, and you get 60 bucks. i think the elliot guys are smart. they work hard to get to know their targets, they have enough resources to work with the best people, and they have relentlessly focused on creating value. that's why they have a fabulous track record i hope att chooses to work with them, like ebay did earlier this year from 28 to 40. if you're a board of director member looking to create value, bring elliot in. if that happens, i can see at&t stock going much higher and if elliot doesn't get this activist involvement, things will light a fire at&t is a cheap stock, trading

less than ten times, 5% yield that i believe is safe, and finally, thanks to elliot, a catalyst, that's why i think you should be buying the stock i bet the up side is huge, even with a wee little bit of improvement. let's talk to ann in indiana >> thanks for taking my call. >> my pleasure. >> wanted to check in about marvel technology because there was an article in the wall street this weekend that while america was ahead currently with 4g that allegedly china already has 15 times the number of towers built for 5g, i wanted to get your feedback. >> marvell, they have refigured the entire company and they have the created so that every single asset is really levered toward 5g i would be a buyer right here, right now. jack in arizona, jack. >> booyah, jim, how you doing?

>> i'm doing well. how about you? >> i'm doing great my question has to do with t-mobile sprint merger. >> yes >> yeah, so i'm a big t-mobile fan, i think john is a great ceo. >> he is, and i have been buying sprint stock like crazy because it looks like the merge is what, 9.75 to 1. >> yeah. >> but sprint's at $6.87, t-mobile at 78 bucks, it looks like there's free money in there. what risk am i not calculating. >> i never think there's free money when there's that kind of spread i have to know what i know and what i don't know. the orbs figure that out i like t-mobile for the same reason you do, john ledger, i think he's the real deal do not hang up the phone on at&t, i think the stock is a screaming buy because elliot's in there making something happen more mad money, autos retailer and health care to greater heights, could the cloud drive your portfolio higher with

containers, i believe the children are the future, time to focus on the millennials, they're not so crazy, we'll figure them out together rapid fire, tonight's edition of the lightning round, so stay with cramer.

turmoil on the high flying clouds for the past few days some of these names have come down hard, what about the not so high flying cloud, look at the visualization software, and cramer cloud king that allows data center to run virtual machines vm ware has been doing just fine for the past week, maybe because the stock had been crushed last month. this company, subsidiary of dell had a fantastic quarter in late august there was one major fly in the ointment we learned vm wear would be making two acquisitions, cloud, the deals weren't that big, 3.6 billion for pivotal. didn't matter, investors and analysts found the deal questionable in value, and the stock got clobbered. down from 180 near the end of the july however, the past couple of

weeks, vm ware has become to bounce, 153 after 6 buck gain today. i told you at any time the negative reaction was overblown. is wall street coming to the same conclusion. let's take a closer look chief operating officer for custom operations to get a better sense of so called controversial deals. welcome back to "mad money". >> thank you >> good to see you san jay >> the way i see it. why don't we start with cloud black. >> and my pivotal socks. >> we know the quarter was fine. we can address that later. i thought it was an excellent quarter. people were baffled you could do two acquisitions at once, why one company could even handle that and why you picked these companies. i think the stock is saying that maybe there's more to it than that you can walk us through. >> yeah, let's walk through them one at a time. when you look at these types of transformational moments in digital transformation, these happen once every ten years.

vm ware invented the virtual machine, and we have created a million jobs in that part of infrastructure there is a movement going on in digital transformation called containers, and we believe it's our birthright to own that movement because they will be potentially tens of millions of jobs of developers created on top of this virtual machine. think of the virtual machine like the ship and container on top. >> is that the good analysis. >> the 1950s, containers transform ships. vm created the ship and now these containers are going to allow apps to be fundamentally transformed. we thought as we thought about this, this is the right time to do it and it was our birthright to do it better than anybody else take the 3,000 people from pivotal, 750 million in revenue and turbo charge not just virtual machines in the popular cloud, which is the first c but the other c is containers and we think that's a big part. >> pivotal had not done well in the stock market has something changed to make it

more valuable, o is it the merger that creates it. >> they have refactored their product, and sit on this word cub kubernetes, the big open source container movement, and that's what vm ware does well, we're a go to market machine, we'll bring this in and accelerate to our 500,000 customers. when we get a good product in the go-to-market machine, i think we can accelerate. >> actually you're going to be doing this, you're captaining this. >> no one person does this it takes a village, our partners like dell, and the ecosystem, vmware has 75,000 partners, jim, who love us. we're going to take this to those ecosystem partners they're excited about this they have branded the spire thing. that's the other thing we have done well, the japanese word for containers, we are doing big ads in new york, san francisco, london, a play on the word vmware, which says container ware

we're not changing the name of the company. that's the key message i want your viewers to take away. >> a crowded area right now is security, okay cloud security you're wearing a t-shirt of the company that a lot f people on the analysts say why carbon black, did say that business has gotten soft versus projections, why does your great company need a part, why not just partner with the security company, why do you have to own it? >> fundamentally, we have a bigger plan in security. let me walk you through quick. there's a lot of parallelism in security and health care imagine you went to a doctor and you asked how do you get well, you have to eat 5,000 tablets, eating one every 30 seconds would take you a couple of years to do that 5,000 vendors, broken, lots of different agents, that bloated on people's laptops, lots of alerts showing up, manual labor, so we look at this and say there's a fundamental new way to do it, to make security intrinsic into your diet, eat

your vegetables, drink your water, brush your teeth, and that's what we're doing is making it part of our platform we have been doing very well in network security around the nsx product. workload security, we didn't have much, work space one, our air watch related project and we found as many end point security players were living in turmoil, mcavee got bought. we had a disruptive play, on big data there's only two companies doing it, cloud strike and common black. we felt this company was better integrated to us, had as good a product or better. and we acquired, we intend to acquire them, the acquisitions close, we have a plan to integrate this and make it intrinsic in a way that nobody else will do we laid this out in vm world we will transform the industry that's been broken today. >> i needed to hear it from you. in the meantime, you come to thelessson

this time you have a music lesson about business that i think a lot of people want to hear. >> listen, i think in general, much has been talked about s.t.e.m., science, technology, engineering and math, i think you can add an a into that and call it steam because arts is really important one of the gifts i have as a jazz pianist, i'll bring music to a keynote i have done this a couple of different times and it's just a way, most keynotes are boring and death by power point, why not add music to it. and sometimes when i start the keynote, that's what people are stunned by, and that's how we want to make this lively, entertaining and there's often a little bit of an artistic message that you can play in that at the core of every song is a beautiful melody that goes around and around and that's what business is about. >> i'm grateful for you coming in and speaking english about why these acquisitions are good, and i think your ray charles music, let me just say, your piano. >> one of my favorites, georgia on my mind >> vm ware's chief operating

officer, i hope you understand, i think it speaks tremendously about why carbon black, pivotal, and vm ware, because it's really down "mad money" is back after the break. it was sophie's big day. by the way, she's the next mozart. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what. it's unbelievable what you can do in the prius. toyota let's go places.

getting pumped for "mad money. >> that kid's got horse sense. thank you to michael and megan in virginia for sharing that very cute video of "mad money's" biggest but smallest fan keep these videos and tweets coming i love it. it is time for the lightning round. and then the lightning round is over are you ready, for the light round, we're going to start with michael in virginia. michael. >> booyah, jim, calling about planet fitness, started buying at 67, it's been going down pretty fast. just trying to figure out what strategy is going forward. >> it is going down pretty fast and i've got to tell you that i

think it's still a great secular trend but i understand it's in a downturn so let's be careful, buy it slowly but i think that we're nearing a bottom in that stock. let's go to beau in florida, beau >> booyah, jimmy, my question is about a 50% year over year sales growth, and. >> payment processing remains a hot industry, a lot of stocks have given up the gains, mastercard, but this is a nice small speck that's come down a lot. jack in ohio jack. >> thanks for helping me out with my stuff again, jimmy. >> absolutely. >> it's had a little run up in the past month or so, do you think it's two late to add more shares of my holding, one oak. >> no, the cfo there, walter holz is a friend of mine, absolutely fantastic neighbor, and they do a great job. and wallet how you been. tim in florida, tim.

>> hey, good evening, jim, just wanted to get your thoughts on the recent pull back in motorola solutions down over 4%. >> communication infrastructure, i absolutely like, but remember, it's right now caught up in the same kind of rotation i have been talking about at the top of the show thomas in new york, thomas >> yeah, how are you doing >> all right how about you? >> not bad i was calling in regard to anthem and the health care >> i was talking to bill, he does fantasy market with me, and bull market fantasy is kind of fun. when i do it with bill he ax me about stocks, i ask to him about players. this stock, watch anthem anthem is bottoming and united health, bull market fantasy a lot of fun ed in new york, ed >> good evening, professor cramer, booyah, my stock is applied digital, apps, please.

>> stumped again, this is the second day in a row i have been stumped. i don't know these guys. how is that apple doing? my executive producer is knocking down bell, it's crazy donna in texas donna. >> hello >> booyah, jim >> booyah. here's my question, i a great dividend with half his return of capital, taxed on approximately half of the dividend, it continues to do interesting things but they are two unique business models and it closed up today. should i hold, buy or sell. >> they have great commercial properties i have known them for a long time i remember when it started, i think you got a winner there, i'm okay with it let's go to jerry in florida jerry. >> yes >> jer, what's up. >> good evening. question regarding height hei,

been a steady good grower. >> out of the high end airline stocks, what can i say, it's a rotation but you're right it's a good company i need to go to ashwin in california >> hey, jim, thank you for taking my call, and i appreciate all your insights and your expertise. my quick question was on slum r slumber -- schlum berger. >> it's a bad stock. i have gotten hurt in it i don't want you in it i don't trust it anymore they have new management, dividend isgood, but i don't want to hurt people, and i have hurt my travel trust with that one, and that ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade complicated, you know? s too well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step

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we joke around about bull annuals, that generation born between 1981 and 1996 and we do it pretty constantly on the show for all the kidding around about how fickle they are, they are the future if you're a consumer brand manager, your job is to win the millennials over because sooner or later they are going to inherit the earth. no point in trying to appeal to baby boomers we know what we're going to buy. for an advertiser, millennials are right in the sweet spot, old enough to have jobs but young enough to be impressionable.

what do millennials want, other than the apple iphone and the apple wearables, it can be tough to figure out. the average millennial makes around 35 gs a year, 40 gs in student debt having kids is a luxury these days and say they are stretched to the limit on behalf of baby boomers, i want to apologize to everyone under the age of 40. i don't know what went wrong but it seems like my generation dropped the ball here. actually, you know what, let's pin the blame on generation x, they can use some attention. anyway, i bring all of this up, but the combination of low salaries and high student loan payments means for millennials, it means they want bargains and they get those bargains are the dollar stores all over america we paid a visit to revitalized family dollar store, he drove this point home while we went aisle to aisle after our interview, this location is in a popular area for millennials, something i know because the beach house my daughter expropriated nearby.

dollar general, they have 15,000 locations. both are opening stores aggressively because millennials love dollar stores fewer and fewer own cars, they prefer to shop somewhere close nearly all shop with smartphones in cash. they have no brand loyalty, they're ingredient lookers my eyes are so bad, i can't see the fine print because they look at what's in the bag or box, they know the big national brands are overpriced so they happily buy the knock off look alikes at a nearby dollar store. convenience, bargains, saving time that's what this generation wants. now, while lots of companies have tried to lay claim to the millennials, most turn out to be blowing smoke. the cruise ship industry touted their millennial customers because of the instagramable nature of a cruise a great backdrop for photos, i'll admit that but the cruise lines have been raising price

for wall street. remember glamping, took up as a cater to the outdoor crowd, a ton of inventory apparently the demand didn't materialize, those stops have become dogs. nobody wants to admit to losing the millennial consumer. it clearly has happened. we have seen a dramatic expansion in at-home dining, courtesy of grub hub, uber eats, but there's a lot of competition. not recommending them. video games resonate, it's all about convenience and bargains you can spend 60 bucks downloading a game and get a hundred hours of entertainment out of them. frankly, wish i never had to figure out these companies when you look at the anemic growth of old brands or newer one, you need a ruber for what the millennials want, and you know what i just gave it to you. stick with cramer. take control of your financial future with the new

madmoney.cnbc.com, cramer's exclusive interviews, full episodes, analysis, even your own sound board, plus special access to mad money 101 with rules and techniques to break down the market for all investors. >> the red flag that makes a stock drop immediately. >> everything you need right when you need it, the madmoney.cnbc.com. (soft music) - when i see obstacles, i create opportunities. - when i see adversity, i find a way. - when i hear never, i say now. - [announcer] southern new hampshire university

is education made to fit your goals with over 200 degree programs, flexible class schedules, and some of the lowest online tuition rates in the nation. (cheering) - so when i face barriers, i can break through. - [announcer] breakthrough at snhu.edu. i can. the two words whispered at the start of every race. every new job. and attempt to parallel park. (electrical current buzzing) each new draft of every novel. (typing clicks) the finishing touch on every masterpiece. (newborn cries) it is humanity's official two-word war cry. words that move us all forward.

the same two words that capital group believes have the power to improve lives. and that, for over 85 years, have inspired us to help people achieve their financial goals. talk to your advisor or consultant for investment risks and information. once again, apple said a lot of good things, apple tv, the right price point, the apple watch, i'll get the new one, the apple 11, i don't know, i mean, i've got an 8 and my daughter took the 10, but all i can tell you is that the expectations were low and the stock went higher i expect some crowd followers to bump their price targets tomorrow, i also expect the usual nei usual, tim took, i'm not going to complete the sentence right here on "mad money", i'm jim cramer, and i will see you tomorrow

>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ my name is tony devine, and i'm from bristol, pennsylvania. my product is going to revolutionize the way we train for basketball. finish! finish! oh, let's go. use that left hand! i've been a basketball coach my entire life... let's go! and i always felt like there was something missing, and that was the realism when you practiced.