>> obviously not >> it's ridiculous unbelievable >> part of her job. >> many talents, i don't advocate eating there often but mcdonald's has done everything you want it to do. >> see you back here tomorrow. "mad money" with jim 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 other people want to make friends. i'm just trying to make you some money. my job isn't just to entertain but to educate and teach you so call me at 1-800-743-cnbc. or tweet me @jimcramer. you know what's driving me nuts about this market, too many disparate metrics to keep track of too many weird goalposts to watch. the dow gained 15 points and s&p

dropped 0.01%, all these strange nonearnings are making it a lot hard story understand. what do i mean by weird metrics? the stock of netflix all right. i know you're thinking about that one here's a stock that has never traded on earnings per share ever there's just not the number anyone cares about you'll never hear anyone say that netflix is really cheap at 80 times earnings. no, netflix trades on subscriber growth as these things go subscriber growth isn't too weird a nice objective number. once you start evaluating a number other than sales or earnings you open the floodgates to other metrics so not just subscribers but on fomo per share. fear of missing out as in the subscriber account adriven by the fear you'll miss out on great content and in a world it trades on fomo but the emmys

matter there wasn't anything that made them say i'm missing out see all those awards i'm missing out on too much content. i got to sign up and that's why the stock got hit or how about a couple of tech titans like facebook and alphabet? if they were judged by earnings per share they would be higher because both are doing incredibly well. they're two of the cheapest large cap stocks in the entire stock market but the thing is they don't just trade on earnings. no, what really matters to both of these stocks, they're both facebook and alphabet the answer is investigations per share. because we know that the government is coming after them. the parent of snapchat revealed project control voldemort. equating facebook to the harry potter villain where they've been keeping track of allthe nefarious things that the competitor has done. now, we know the ftc, federal trade commission, is looking into everything about facebook so word about snap's slam book

caused them to get slammed by 3 bucks today. i would tell you it's a buy and do like it but then what happens, we get another investigation per share announcement tomorrow and it goes down. alphabet is under investigation by a group of states attorney generals but the stock acted better today because there was at least no news, this was no investigation per share day for alphabet tough luck for facebook. then there's johnson & johnson this is one of the great eflt companies on earth one of only two with a aaa balance sheet. got a fabulous pipeline of drugs, high organic growth and terrific management. none of that matters the stock has been a total dog because j&j now trades on wall street's per share and gripped by the opioid stories and everybody is worried about the settlements they may have to pay out and big judgments and when i hear about j&j, oh, there is a trial that's about to start in blah, blah, blah, ohio, oh,

geez, who could own the stock through the lawsuits per share we're seeing the same thing with cvs and generic drug makers. these stopped trading on earnings a long time ago they go down every time there's a loss in court. not a loss in earnings who can analyze that i mean, it's very tough to quantify it's a nasty situation now, the tariffs are another story that's hard to put into numbers. this morning apple announced they're planning to make the new mac pro in austin and they get a waiver for marts imported by china. a huge win but it's the kind of thing where it's impossible to game we dent know what the tariffs were for these components, we don't know how much the waivers are worth to apple we just know it's positive is that why semiconductor plays like xp, micron, is that what it was? breathed new life into equipmentmakers? how do you put a price to earnings multiple on this new way to avoid the president's tariffs? that could result in a whole

re-evaluation for the whole sector so investors will pay to the chipmakers at least until surveillance new derails the trade negotiations with china and maybe it's the idea of what did happen in montana. maybe we need to investigate what happened in montana with the farmers? i mean, come on. how about the railroads? >> all aboard. >> these stocks used to be measured by the freight loads, how they were doing. which translated direct lie into earnings not anymore. they trade on execution. i'm talking about precision railroading keeping better track of where all their cars are so they can charge higher prices and don't have to give too many discounts. you need to know these numbers or else, all right, then there'sarthere' aerospace. getting that max back in the sky, periodically boeing will get hit by negative publicity. can you recall a single positive story? i think it's worth it hanging in

there waiting to get approval because there's so much demand for aircraft they will take off like a rocket when it happens. those are just the tip i have another dozen examples in my head. a dozen examples of stocks that simply don't trade on earnings or sales anymore when they're only a few of these names it was fine. but these days there are so many of them that it's become much harder to parse what's going on in the broader market. we like earnings per share we like revenues but this like -- all these new -- investigations per share, hard to get your arms around now, what do you do if you're hostage to one of these odd metrics? first i think it's always safe to own one or two. if you have too many it's going to drive you crazy second if you want stocks more straightforward you can always buy some dividend names with big yield, the at&ts of the world will let you sleep at night. the important thing you know how many angina you're willing to put up with. much better to own something

like that than one that is investigated on trades per share. i'm not saying you shouldn't own them but requires more patience than owning something normal and you're in the paper every day. finally, you have to be skeptical of markets, entire markets where more and more stocks are valued on something other than earnings. this is what happened during the dotcom crash tons were trading on eyeballs and it did not end the more they trade on weird metrics the more likely the market is overvalued bulls are winning september but you can only go up for so long based on something other than earnings before we have to accept valuations are out of whack this is not ray normal market so we do need to be careful. at least we don't have to worry about wework yeah, because apparently that one is about to -- judging by how much tequila flowed in the office when ceo slash king adam

neumann was on top of his name but with them doing the books and being on the hookses you better believe they'll find a way to get that in front of us bottom line, when we had only a few stocks traded on something beyond the four walls of the spreadsheet that was fine but when you have dozens of stocks including entire sectors that have become partially unhinged from their sales to earnings, well, i have to tell you, you got to proceed with caution. let's go to rodney in tennessee. please, rodney >> caller: hi, jim rita and i thank you for taking our call. >> of course, thank you. >> caller: good. i bought oracle and i thought it was oversold on bad news i made money on this trade the question is, should i keep it >> well, you know, there was some discord on the call we don't know exactly what is wrong with mark herd, co-ceo but he wasn't on the call and he's the man driving a lot of sales there. i have to say you have to hold

off until we know more we lack information about what's going on at oracle to gary in mississippi gary >> caller: hi, jim good afternoon how about some pfizer stock. there was talk of getting, wanted to know if pfizer was big enough or diverse enough to handle it or will it start to have an effect on them in the long run >> look, they are -- yield is 4% but it's down 17% for the year why? it has no growth i prefer abbvie. abbvie has yield and abbvie has got a merges their will be very good that's the one you should be in. all right. some stocks have become unquantifiable they don't trade with earnings or sales that's why they're often difficult to assess. there's too many metrics on "mad money" it's been a wild summer for cannabis growth the company's remaining ceo

talks to me for the first time tonight about the cannabis company shake-up and what's head for the stock. how the latest iphone psych surveillance taking cues from bob dylan. it ain't me, babe and with all the action in the oil patch, what is ahead for the xhotdty? talking to one of the smartest guys in the business, if not the smartest so stay with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question, tweet cramer, #madtweets send jim an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something, head to madmoney.cnbc.com.

through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from managing inventory... to detecting and preventing threats... to scaling up your production. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. by the way, she's the it wasnext mozart.g day. 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.

for months the cannabis area has been hammered. so when will it be safe to picking these pot stocks again the big canadian marijuana company has been a place to

play the liquor and bureau company a year ago, thanks to the rotation, major leadership change the stock has been crushed. in april canopy was trading in the 50s. now it's at 256789 there is a silver lining. it is now back to where it was that's right when constellation made its big investment same level where it bottomed during the tassty sell-off in the fourth quarter being a chance to get back in at a more reasonable valuation. should you take it a closer look with the new ceo of canopy growth welcome to "mad money. good to see you. >> good to see. >> you all right, so let's get right to it. you know i'm concerned you watch the show i'm concerned because on the last call, i thought, well, we've got a real big -- good hand coming in we got mark and then on the conference call you said you're resigning and i was like, wow, wait a second. first linton then you. i need stability.

>> it's important we take a step back canopy is a big company. it's not about one person, not about bruce, not about mark. as excited as we are about the next ceo coming in this is a company we built over five years. and investing in infrastructure, intellectual property and teams and know-how and those people committed to a culture, a season of excellence, long-term shareholder value and excited about the next ceo but it's one piece of the puzzle which is an incredible company focused on long-term shareholder value. >> are you looking for a packaged goods kind of ceo to help disrupt $200 billion worth of cpg with your company >> yeah, the joy of this opportunity is the ultimate ceo could come from a number of places there's obvious beverage alcohol, cpg as you mentioned, pharmaceutical, you know even some of the skill sets in the tech sector are relevant, right,

so we have this huge variety of people we can pick from and we're seeing great cannabis come forward. ultimately it will be about fit. we have a particular company very particular culture. a great vision which we all believe in and getting the right person to keep that going is what we're focused on. >> let's talk about vaping in the last 72 hours, i'm friendly with enough people who use -- who vape and they're petrified. they're pelt tri tied. maybe their stuff is bad maybe the quality is bad they didn't get it from the right source what do you say to these people? >> yeah, so i would say this, we're obviously seeing stories come out of the united states and that's, you know, a tragic set of stories and, you know, compounding that are the unknowns, right? because of the regulatory environment we don't yet actually know. all right, there's a lot of talk was it vitamin e or were the products tampered with between their process, so, you know, if we think to the canopy context, the canadian context we're ready

to launch vape products into canada >> right. >> the difference is this is really a regulated environment so there are rules that will govern the products we put to market they will go into a regulated store. and they're being put out by a company working for years to build the best possible vape product in terms of the characteristics but also safety, right? so we can do things like ul certification is a priority for our company and all our products will have so put simply the battery doesn't blow up in your face or serialization so god forbid something happens, you can trace back and know when it was filled and what went in it and, you know, things like tamper resistant so our product is our product, not something that somebody took and adult rated so there are a lot of things the key part for us is to focus on the canadian model, again is a good model we should look to where there is regulations and systems in place. >> now bruce was on a number of shows, on my show more than anyone and, you know, we enjoyed

bruce. fun and -- we meets weed and bigger than life guy and then he got fired and ever since he got fired the stock has gone down and why did he get fired >> so the first thing i'll say is i would be wearing my tweed shirt as well. here in new york at a concordia policy event otherwise i'd be wearing mine as well but i think it's, again, not really about, you know, bruce and what happened there, you know, the sector is under pressure you know, you're seeing, you know, a focus on, you know, more of the short-term metrics and important we step back and remember the big picture opportunity here all of the reasons we were -- we were and are excited about the cannabis opportunity still exist today. still an opportunity which is hundreds of billions of dollar as cross cbd, clinical, medical. recreational that's still there so the question is which company

has made the plays over the last five years in infrastructure, intellectual property, brands, the know-how, the team to seize that over the long term and that is canopy growth. >> how about the relationship with constellation what have you gotten out of it look, in the time you guys were together i've seen spiked seltzer take over. a lot of people would like to see something with cannabis in it that's tasty that's like a beer and in can did and see what happens. like where is it >> yeah, so talking about the beverages is actually a perfect example of the collaboration we have with constellation so you're right sellse seltzers are the biggest around the world and stop and think about the cannabis beverage opportunity. right? we have an opportunity to create a precisely dosed product that gives people a reliable experience that we can relate to the experience they know with the seltzer or a beer or alcoholic beverage, we can put it in that form factor they're

familiar with and to your point make it taste good and take away some of the bad points of alcohol, hangovers and calories and all that kind of stuff this is an incredibly compelling opportunity and we're excited to make that taste good, put a tweed brand on it and bring it to market. >> well, the last thing is the acreage deal, would constellation have done that deal it was definitely bruce's deal and it's a lot of money. the -- to me sometimes it's hard to justify that you got -- gave them so much money why did you? >> so, let's i guess put itin context of the triggering event, right? waiting for -- >> the sglus you got it. >> that's good dough it's good dough. republicans in charge from here to eternity. >> of course, it's real money. i would say six years. >> okay. >> time frame for that triggering event to put in context canopy growth has? been around for six years and think of everything that's

happened in that time frame so, you know, we obviously believe triggering event will occur and i think the other important part is part of this deal is that all of those things i was talking about, that beverage or the vape, all that work we're doing is intellectual property we can make available to acreage in the short term so not only do we have a play with the one of the best players in the united states, we can empower them to do beter >> that's fair enough but you're right, the whole group is compressed not canopy and great you came on and explained to people all the great things that you're doing that's mark sekulin, the ceo of canopy growth he will not be the ceo after they name a new ceo sometime in the near future. "mad money" is back after the break.

plants capture co2. what if other kinds of plants captured it too? if these industrial plants had technology that captured carbon like trees we could help lower emissions. carbon capture is important technology - and experts agree. that's why we're working on ways to improve it. so plants... can be a little more... like plants. ♪ ♪ oh, from my window leave at your own chosen speed ♪

>> in the words of bob dylan go away from my ipo window. maybe he didn't mention the word ipo and maybe the next line of it ain't me, babe, needs to be reversed you're not the one i want, babe, you're not the one i need. i keep thinking of them because we're getting to the point in the ipo cycle where we don't want more companies to go public even bankers are fooling us or themselves they're trying to sell more garbage to rack up more fees i was warning this would come. a wave of iphones that could be the biggest risk because of all the new stock and supply can destroy any stock market especially if it's a supply of bad news stocks that nobody wants and nobody needs the valuations for some of these deals are fanty zulresso even if they suckered the last round something like wework ever worth 47 billion, softbank put in a billion at that level. even though it's run by a

suboptimal ceo, adam neumann, they invested in higher prices, like marking up a stock and blowing it out at an artificial level. bgl. neumann was so busy self-destructing it didn't work and hence incredible stories we're seeing that wework ipo has been -- they want to get it back on track it's a sideshow. during the period we learned of massive self-dealing by neumann in a stock that's tailor made for short sellsers as a approximaproxy proper falling prices. it's a real estate firm and seen this movie before. who nows how something like uber really got to a $68 billion valuation that last private round. it seems like it was fooled by the greater fool theory with investors who put in money because they were salivating by a $120 billion valuation when it became public. google that's what they were looking

at it's worth 55 billion and shrinking rapidly as people realize that uber is a glorified cab company that's losingmoney i think it's only going to get word now the investor bankers are lined found are the first trillion dollar ipo. saw di aramco is profitable. it's not like wework but more popular than anyone realize the. if trurp -- you were trying to design one i don't think you could do better than aramco. fossil fuel, behemoth in a market that its even the best fossil fuel names and annihilates the worst on a daily basis. i wish it would go away fwrt window or the window would shut but when nine banks line up to do a deal you better believe they'll get it done by hook or by crook it's not just the big one, the small ones are starting to smell too. look at peloton, it's merely an ex-er cycle wi

ex- ex- ex-er-cycle. that's all we need mother money losing delivery company. the ipo market is a travesty of a mockery of a sham and so predictable. i've been railing against it for months nobody listened. now it's here and i think it could do real damage at least until the deals become so damaging that the investment bankers and their venture capital clients finally throw in the darned towel won't that be terrific mike, from california. >> caller: a thousand boo-yahs from the golden state. >> i like that number, thank you. >> caller: hey, i want to talk silk road medical since we last talked it's been five months since their ipo and new approach for treating carotid artery disease and had a blow-out earnings report but stock drifting downward of late what say you. >> i like silk road. but this is the kind of stock that this market no longer

likes. it wants earnings and dividends and buybacks and this stock is the opposite it just has to do with the wall street fashion show i always talk about how about palm in california paul >> caller: boo-yah, skee-daddy thanks for taking my call. >> what's up >> caller: i never miss your show and love your advice and your stuff. >> thank you >> caller: the stock i'm calling about is sonos and produce smart high-end speakers. do you think they can become the roku of audio -- >> i do not. roku is about court cut. this is an interesting home entertainment system i have it. the sonos people say, are you kidding we're so much more are you kidding me, you say you're so much more than that. i mean, boy, am i ever tired of people saying i don't know what i'm talking about and you're so much more than that. never mind you get the drift. we're in an ipo market travesty.

stocks we don't need are hurting this market. i think we should have a strike against them i'm not kidding. only going to get worse. let's go on strike together. don't let us -- don't let them give us any more of this merchandise. much more "mad money" ahead i'll talk to a man who knows nutanix down red flag all your call, rapid-fire in tonight's edition of "lightning round" and nancy reagan just say no to the next ipo

man: can i find an investment firm that has a truly long-term view? it begins by being privately owned. with more than 85 years of experience over multiple market cycles. with portfolio managers who are encouraged to do what's right over what's popular. focused on helping me achieve my investors' unique goals. can i find an investment firm that gets long term the way i do? with capital group, i can. talk to your advisor or consultant for investment risks and information.

♪

last monday in wake of the drone attack on saudi arabia's oil it spiked from 60 to 69. not a huge movement. then over the next couple of days the price came right back down now back at $64 like nothing happened in the past this kind of oil stock would have been devastating. not just the drone attacks, tanker sabotage in the straits of hormuz and pipelines and worrying about the possibility of war with iran yet oil hasn't been able to make a sustained rally because the united states has leapfrogged saudi arabia to become the world's largest producer i don't think i can do this story justice on my own. i want to dig in with rusty brazil for rbn energy and rbnenergy.com because i think he's maybe the best -- he is the best analyst of the oil and gas industry on earth. welcome back to "mad money." have a seat. rusty, rusty knows i go to him about 5:30 in the morning every

day to say what the heck and i came to you with a big what the heck after oil did not go up appreciably after the attacks. can you explain to people what you told me. >> yeah, basically three things going on first of all we've got six million barrels a day of production we didn't have the last time this occurred so 2011, the whole libya thing happened we had a withdrawal from the strategic petroleum reserve and this is the first time it's a big deal happened since then, 6 million barrels a day more production and that means that we're just insulated from this sort of thing. but the saudis have helped too the saudis have basically integrated downstream a lot more refineries, a lot more petrochemical plants and more storage and means they're more resilient. when this happened they could react and basically keep the damage under control and then there's a the global market global market is simply tamped down growth is not what it used to

be we got our trade war going on and there's a lot of surplus storage in the market right now. after all i mean opec actually had production cut back to support prices before this happened, right? put that all together. and it was just not going to hang up there the way a lot of people thought. >> years ago i went through and went to see where john dean made the movie and there's lot of idle oil rigs and a lot were talking about the depression, never going to intelligence come back if i go there now it's insane. what happened? >> well, shale happened. so we came up with -- the united states came up with a new way of producing oil out of formations that simply was not available before that's a technology thing. that's happened over the last ten years and because of that we can produce oil, gas and ngls at rate or unit costs far below what we could do before and you put that together. that's where all the production is coming? >> talking about 18 million

barrels. where the hemingway will we put the oil? >> sorry, ceo of -- >> we'll put the oil overseas. but the 18 million, you know, i think scott's backed off a little bit the past couple of case, not by much. we do several scenarios and our scenario that we've got right now says if crude oil prices hang there for the next five years at 55 bucks we'll get up to around 15.5 but if crude oil prices for whatever reason get to $65 the economics are so much better for producers that they will be able to make more money and therefore drill more wells and production is probably actually going to exceed scott's 18. >> i mean look, no one knows where to put the stuff you often talk about natural gas. we are the lowest cost natural gas in the world we are but we're not flooding the world with it because it takes too long to build all these but how about all these -- if i went down to let's say the louisiana area, we've got sharif

zuckie back in action, freeport. how much will we be able to export. >> we'll be able to export, 12, 13 bcf a day sometime over the next few year, two, three years so it will be a lot of volume moving overseas. the big question i think is what's going to happen though those overseas market when all that production get there is. >> i know india needs some sharif told me, china needs it there will be room. >> there will be room. the question is room for how much at what price >> okay. that matter. >> and that matters. >> iran is such a big producer i can't even fathom the idea that people are talking about the potential war with iran and oil doesn't go up. >> well, you've got to remember a lot of people thought oil was going to go up when venezuela was going to hit the wall. gee, that didn't exactly happen that way, did it and so, you know, when you look at how much resilience that there is built into the marketplace i think most of the market assumes that

if prices go up, the u.s. and other countries will respond it may take a little time so prices might spike in the short term but not the long term that's what we talked about before, the forward curve is still on the downhill slide. >> a great friend of the show recently passed away, bloom pickens, legacy of the man. >> he was a wildcatter back in the days when wildcatter meant you would drill a well and it was either going to be a gusher or it was going to be a dry hole an had you to have the risk tolerance to be rabel to handle that he took his success in doing that and then continued to be on the front end of the curve getting into wind energy before it was cool, getting into natural gas vehicles before it was cool sometimes maybe leading edge but nevertheless he'll certainly be missed by the whole industry. >> now, he -- you say wind one of the things that's clearly happened, conservation, i talk to companies and telling energy companies, utilities, we want more plants to off -- we want

more wind to offset our own use of the environment this thing is real. >> it's real. >> you sent me to a fellow kyle, lightbulbs themselves -- >> yep, so alternate energy is real it's making a significant dent it's certainly making a huge dent in the california market right now and it's changing up the market the market is going to be reacting to this as long as you and i are going to be caring about this. >> i just -- it is hard to believe -- a lot seems to be happening without trump, right >> i think that's true you know, there's -- the trump administration has a lot of initiatives going on that maybe or maybe not will have any kind of impact on the market in the short term the main thing, the trump administration has not done anything to hold the market back so we're getting pipelines approved we're building new lngx terminals and producers are drilling and completing wells. as long as that's happening i think most of producers are looking at that as a win in

washington. >> wow i got to tell you, the whole way, always telling me no more big spikes no more hundred dollar moves that's rusty brazil, the principal markets consultant for rbn energy.com he is the most must ride by 6:10 each morning and has great stuff about music too if you care bit. "mad money" is back after the break. [upbeat action music] ♪ (pilot) we're going to be on the tarmac for another 45 minutes or so.

at cthey're on the jobr it stwenty-four sevensy. so they sleep when they can. [ snoring ] cdw services can help. our experts will design, orchestrate and manage the most complex technology. so your it people have more time to innovate. and get some shut eye. that sounds great. uh, i got a malware on my shirt. should we wake him? probably should but let's wait till the updates complete. to free up your it staff you need "managed services" by cdw. people who get it.

(classical music playing throughout)

>> announcer: "the lightning round" is sponsored by td ameritrade ♪ it's time. it's time for "the lightning round. >> buy, buy, buy. >> sell, sell, sell. [ buzzer ] >> and then the lightning round is officer are you ready skee-daddy time for "the lightning round. ava in connecticut ava. >> caller: you are my hero, mr. cramer >> well, thank you, ava. >> caller: you're welcome. i am a widow and my portfolio is personally managed periodically. they mutt some stocks in there that i don't like. one of which is paypal >> i think your advisers are actually quite smart and i think paypal is terrific

great job. there's a lot of upside if they get it right and so far they've got it very right. i'll go with your advisers john in florida. john >> caller: hello, cramer thanks for taking my call. >> of course >> caller: yes, sir, the philadelphia eagles have the drops, the miami dolphins are tanking. hopefully this stock does neither. that's nee, it has the high 52-week high 22 of -- >> you got a winner in nee it will be in the super bowl and play the pats. i get that sense i like nee good stock jim in new york. jim. >> caller: big fan, first-time caller i purchased exact science and since then been beaten down by no apparent reason go there's a lot of high multiple stocks. it's got european approval and doing a lot more than colon cancer i say buy it >> buy, buy, buy. >> to shawn in alabama shaken >> caller: yes, sir, i wanted to

ask about sorpt. >> it's too hard to make a determination. sometimes you just got to punt fourth and ten i'm punting. i can't figure it. the stock has gone down, down, down on some new iteration of something that's wrong i can't touch it let's go to david in california. david. >> caller: boo-yah from carmel, california, mr. cramer. >> beautiful out there what's going on? >> caller: after reading zack's digest, i'm now eyeballing a bio medical company that has a cancer fighting drug i think you would like i think it's been slow-walked for 16 years and this drug should be put to good use saving lives. my question is this, if this bio company goes broke before the drug get as prove what had happens to the drug in the study and should i buy stock in this company or wait for someone to take it over

it's cvm >> they don't have a lot of money. in their coffers, however i share with you idea that it is an interesting situation it's just a good spec. that's the only way to describe it elizabeth in florida elizabeth. >> caller: hey, jim. elizabeth here sending you a big miami boo-yah. >> i, excellent. >> caller: longtime listener first-time caller. my stock is msa financials up 10% career to date and paying a year of 10.5%. >> but it's leveraged so we don't know what they own and in a downturn we could get hurt without knowing what they have so i'm going to have to take a pass on that i think you're reaching for yield and i do not like to reach for yield. let's go to michelle in kansas michelle >> caller: hi, jim >> hi, michelle.

>> my stock is fidelity national information services. >> that's a fantastic stock with an $80 billion market cap that nobody talks about and it is excellent. it is a really good situation. and that, ladies and gentlemen, is the conclusion of "the lightning round. [ buzzer ] >> announcer: "the lightning round" is sponsored by td ameritrade yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪ 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 according to america's biggest test. now with 5g evolution. the first step to 5g. more for your thing. that's our thing. ...owning and running the biggesta small business is finding the right people. in hiring our first recruiter, we decided to post a job on linkedin.

they had to have worked... ...at a recruiter firm and be bilingual. when we saw ana maria's profile... ...she had a ton of experience in hr. the interview went really well. and she seemed like someone who could really sell mckenzie to perspective employees. we found the best person to find the best person for us. post a job today at linkedin.com/grow

how do you know when it's safe to circle back to a formerly high flying stock beaten down for maybe all the wrong reasons? look at nutanix that deals in what is known as hyper converged sidss. earlier they announced it would adopt a software service model something that's worked wonders from daubert adobe to auto desk you trade big software license sales for lots of smaller recurring payments they saw its stock plummet and the last few weeks it's shown signs of life since they reported an upside surprise late last month with guidance good enough from investors to start giving them the benefit of the doubt at least now it's back to 26. but do not take it from me a closer look with the co-founder, chairman and ceo of knnutanix to see where it's headed welcome back good to see you, sir.

>> thank you so much. >> now, you, yourself, have said that it is hard to spot the underlying growth because the subscription transformation. explain how even you have to admit that it's hard story spot. >> first of all, thank you so much for inviting me on. tenth year anniversary and it's been a journey of a lifetime we had to put two model changes in the last ten years. and it's not easy as you were saying in that some level the idea that you're going from one business model to another also has all these xrar xrar comparables of apples and oranges. why subscription and i go back to this new era of subscription economy i.t. versus -- >> we like that on our show. >> versus spotify. people thought apple was digitized music and spotify digitized it even further with subscription i think our customers are looking for piecemeal bite-size

infrastructure continuous consumption, continuous delivery and doing a lot of the stuff going from total contract value to annual contract value >> big change. okay, now, we have the coo of vmware on and he's making some really big deals and sometimes i wonder is this hyper converged market big enough for both of you. tell me how big it is and whether you have to fight tooth and nail against these guys. >> you know the most important thing about a market is that it's ever expanding. we were hyperconverging boxes and machines on prem and now have to do that with clouds. people are saying can you take your software to the public cloud? and, you know, fortune ten company that spent tens of millions in the last ten months with us doing subscription are saying let's take to you public cloud as well because then the real question to hybridizing your overall experience as it

becomes relevant so we don't look at ourselves as a private cloud only solution, many of our customers are saying let's go and solve this problem between on prem and off prem. >> deutsche bank put out a headline that makes me more concerned. it's called better than feared but still messy, implying about worrying about share losses to dell vmware. how can you give assurances that's not lapping >> well, eventually goes back to what are we really -- what do we stand for? reliability, reliability, reliability. reliability of products and customer success and customer support so fortune 100 companies are actually looking at us as the more reliable product than anything else out there. one of them, for example, a fortune five retailer is spending tens of millions of dollars with us because of reliability and i think we want our competitors to go and market this whole idea of hyperconvergence because without them and their marketing dollars we can't be the only one going

and doing this the market will grow because of more larger companies in this space. >> in the last quarter you had 71% quarter -- fourth quarter subscription billings mixed plus 19 mill year after yore. what shums should we look at to figure out exactly when things cross over and we should just say it is apples to apples >> well, so in the last 12 months i would say last nine months we said let's plow through this transition. >> right. >> 71% of our business is now subscription which is from where it was a year ago to where it is today. >> quite impressive you did that. >> and am contract value which is now the new currency in which we're measuring ourselves is growing 61% year over year, half a billion plus already so the coming three, four quarters is where we are focused on making sure we plow through the whole thing so then the street can do apples to apple. >> right, how about partnerships where are you. >> the hp partnership is looking great for us

they're also talking about subscription and subscription economy. were we're doing with them with green lake and they'll sell our software i think that's going to be a big piece for us what we do with the hyperscalers is another big piece the place where it's becoming extremely consumer grading and it's about apis and using them to really go solve problems of hybrid cloud for our customers. >> i know as someone who used to pick stocks for a living i want to get in before the explosion i feel like that the comeback is in large part because you've explained to people the progression. what will happen if there's a way -- i'm trying to figure out are there big contracts that are about to occur will you be telling people at an analysts' meeting you just won these three big accounts >> i don't want to miss the inflection but i don't want to hurt people. >> i think the investor day in march will be a big one. you talk about the inflection point of the company, would have

gone through at least four, five quarters of plowing through the subscription itself and i think in general, look, i look at if we didn't take the shot of pain we would not have the long-term gain of being a hybrid cloud -- >> had you to do it. at 16 i was thinking i'm doing work on twitter in preparation for tomorrow i have an interview with bob iger and he was talking about how when twitter fell, it was a good time to pounce. the low teens, when your stock was in the low teens, i thought, you know what, he's going to get a phone call and have a hard time saying no how do you stay independent knowing that we all both know what's about to happen >> well, i think, look, we work for what i call at least you think about long-term gains, along the way if there are offers that come and we talk to those companies and realize what it means to think about coming together or not and right now is a low, i wouldn't sell when it's low when you have to think about how do you go through the transition first before you really talk about anything else.

>> all right, well, look, we look forward and stay close. i thought it was great you came on i know a messy quarter sometimes execs won't come in. when the model changed and we believed and no one elieved, i was like us and chantanu i'm glad we're staying close to you. okay, that's the ceo of nutanix and the stock made a very big turn but it's still well below where it was so it could be an opportunity. 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.

doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. liberty mutual customizes your car insurance, so you only pay for what you need. i wish i could shake your hand. granted. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ - [spokesman] if you've tried colleg(group cheering)shed, snhu lets you transfer up to 90 credits toward you bachelor's degree. - [woman] it doesn't matter how old you are, you can do it, you can finish. - [spokesman] finish your degree at snhu.edu

by the way, she's the it wasnext mozart.g day. 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. trade war per share. agriculture plummets per share the reason why it's so hard. it's not a traditionally valued market so let's stay cool and calm i always say that's a bull market somewhere i promise to find it right here for you on "mad money. i'm jim cramer i will see you tomorrow. rrator:e of "american greed"...

run away, buddy boy, run away. leave it to the real men. narrator: scott menaged is a trash-talking star... go [bleep] yourself! narrator: ...of a fix-it-and-flip-it tv show. menaged: i love buying properties in this area. rentals equal cash flow. cash flow makes me very happy. narrator: menaged parlays his reality fame into a house-flipping and furniture-store empire in the valley of the sun, where scott menaged always comes first. he was an arrogant person, very pushy, very demanding. ajamie: he was having a lot of fun, taking a lot of money, jetting around, living a high lifestyle, gambling in vegas, flying over to israel. he was enjoying himself. narrator: but when menaged's $30 million lie