soon >> 'stros or tampa bay tonight pick one. >> 'stros. >> amazing into space, as eddie murphy said >> see you back here tomorrow at 5:00 "mad money" starts right now my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people make friends. i'm just trying to make you some money. my job is not just to entertain, but to educate, teach, put it in context. call me, 1-800-743-cnbc. tweet me @jimcramer. we had a nice compliant session today. dow gaining 151 points s&p rising 6.4%.

nasdaq advancing 6%. but we didn't get what we need, which is another reason to buy stocks here. this morning and last night i went over about 300 different stocks, 300, with an eye to finding new names to introduce to the actionalerts.com club every month i give a talk where try to offer club members at least one new compelling idea. and you know what? how many did i find out of the 300? four yeah, that's right only four stocks only four out of 300 passed my test why am i being so selective? let me walk you through what's worth buying in this treacherous moment first, i don't need stocks that need a trade deal to go higher as the trade talks with china drag on, the list of casualties grows longer and longer. earlier this week we spoke to the long-time ceo of emerson electric he knows more than all of us

i think he might be willing to break up the business, literally split it in half i love breakups. they tend to be fabulous for shareholders but does that mean you can buy the stock of emerson huh-uh, not so fast. farr has been a visionary. how do you tell that he built a gigantic presence in china before everybody else, because the chinese market was the huge source of growth in the world. unfortunately, he didn't predict, as did no ones else, the full extent of president trump's trade war. so now emerson has a about pro there is not much they can do other than hope it will blow over or the chinese economy won't appropriate rate the factories. who wants that kind of risk? not me sadly, this great american company's stock has become too binary it's a deal or no deal situation. and that makes the stock too difficult to own, even though as i'd love to tell you 3% yield, good balance sheet then there is cisco, the scso

kind in august they reported a short fault. even though china is only about 3% of their business, a little less, it played a very negative role in shortfall. cisco got hammered again today goldman sachs bought it at a down even though it's incredibly cheap, how do we know the numbers aren't coming down you can't know nobody knows where this trade war might go next. look, here is a good one two days ago nvidia, not my dog, but he ate a whole bag of gummies last night had to take him to the vet up all night whatever the stock plummeted seven points two days ago because our government decided to crack down on technologies that china might use for facial recognition to help perpetuate human rights abuses who knows if nvidia's technology is even used there for that. it didn't matter nobody saw that coming no more than my wife did with the cbd

gummies. so he could jump up on the bed he couldn't get up before. think about what happened with apple. what would have occurred -- what would have occurred to this -- to this if they hadn't pulled this app that the hong kong protesters were using to track the locations of the police? apple's policy is first do no harm it was enabling protesters to target police. so it had to go. but you have to wonder, right? you have to wonder if china will punish apple for having the site up to begin with what if you're a retailer that lacks the clout of watch, my acronym for walmart, target, amazon, costco when i was flipping through the s&p, a huge number of stocks were exposed to at least one or more of these flash points my next test, ask yourself if you're looking at a company that's going to be disrupted by

competitors who are playing with free money [ buzzer ] or a superior technology [ buzzer ] the other day we spoke with rich allison. i don't know if you saw it he is a terrific ceo of dominoes and he talked how the third party delivery services are willing to lose big money to partner with competitors dominoes makes the best food on the planet but they can't compete free they can't compete with the platforms willing to lose money on every order these same venture capital funded competitors are why grubhub is only a couple of points from its 52-week low. we're seeing the same kind of disruption all over the place. you see the stock of fed ex? oh my god. digital and all price retailers have disrupted department stores merck's disrupted the oncology with keytruda. natural gas, g.e.'s price? that's turbines. roku has disrupted cable tv.

facebook and alphabet disrupted traditional publishers rent the runway the apparel business harry's and dollar shave club disrupted razors by the way, dollar shave, it is so sharp it cut me last night. i had to put the tissue paper on you see it it's like this i went. i think i slit my throat with this i think this. it's too sharp the cloud plays have obliterated on premise software. right now it feels like there are fewer and fewer stocks that are immune to disruption third, some markets are too ugly to participate in at the moment. the auto industry is in awful shape and now gm is on strike. no paint, no glass, no seats, no aluminum, no nothing anything with auto exposure is likely to miss numbers that's deadly in this environment. then there is boeing which is weighing down the whole aerospace industry there are so many companies that make parts for airplanes, i

expect them to cut when they report fossil fuels, toxic. this also equities tends to plastics, which younger hedge fund managers believe is the new coal the warren factor. wall street is terrified by elizabeth warren i'm elizabeth warren and i approve of this message. most money managers see her as a one-woman wrecking crew. paw crew and the wrecking crew single pair? that's the end of the managed care and big problems with the drug companies bank, she wants to break them up and ratchet up some say she want s fracking, that's a curse word. big tech, talking about massive antitrust investigations and that's not even addressing wall street's biggest fear, higher capital gains tax if you listen to some portfolio manager, they're acting like

they'll lose their livelihoods if warren wins the election. i think they're being petty and pretty alarmist. warren is not trying to destroy capitalism it's a new old style liberal she is going to have a hard time getting most of the stuff through congress my view means nothing here not when wall street regards her the second coming of lenin what do you think? often recognized and considered as great, great nephew, or best maybe huey long or mary ray? put it all together? that's a lot of stocks off limits, isn't it there are still a few that can pass all four tests, but not enough because so many companies could potentially be in trouble, nothing will be protected from the waves of s&p future sales like the one that happened last night before trump put out a positive tweet sure, you can buy a handful of stocks, but once the next wave of selling starts again, you're going to be hammered again what could change? we could get some kind of trade deal i think it's possible the president might postpone the

next round of tariffs including big purchase of american hogs. china's hogs has been devastated by the african swine flu they're in desperate need of our pork but then there will be another deadline, another rinse and repeat through the water torture, bankers will keep more and more supply on the market with their hapless ipos thanks for nothing, ipo merchants, merchants of loss the bottom line, this is an unhealthy moment for our market. our only saving grace, i don't know a soul who likes this market occasionally senate can be correct. if we don't get some sort of trade deal and all this bearish sentiment, who knows it might turn out to be right. patrick from florida patrick? >> caller: oh, hi, this is patrick's mom, and patrick has a question for you boo-yah. >> sure! boo-yah. >> caller: i am 9 years old. i've been watching your show and i really like it i especially like your sound

effects like "sell, sell, sell "buy, buy, buy." >> sell, sell, sell! >> buy, buy, buy >> i have been thinking of the company hasbro gaming. do you think it's a bear or a bull >> oh, i'm very bullish on hasbro 89 when we last had brian on it went to 118 he is trying to move all the china manufacturing away, but more important, patrick, i have to tell you, you make me feel great, and so does your mom because i know i'm relevant. hey, by the way, we are six years older than patrick, and we're closing in on what show? our 3,000th show sentiment is so negative right now, we don't get some sort of trade deal, the sentiment might turn out to be correct on "mad money" tonight, i'm getting to the meat of hormel's investor today with the ceo, finding out if it's time to add an investment in the company

then this popular retailer stock has taken a bath in this market over the announcement of a new ceo, the stock soaring today i'm browsing the aisles of -- well, a tease. i'm not telling you yet. and my exclusive with a man who dressed america, including me, the legendary mickey drexler. so patrick, and everyone else, you're not going to want to miss and stay with cramer >> 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 1-800-743-cnbc miss something head to madmoney.cnbc.com.

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. talk to your advisor or consultant we believe in education built for all people., - [woman] snhu was the best experience of my life. - [man] without snhu, i wouldn't be the leader i am today. - [woman] i graduated high school 19 years ago. i still finished. - [man] in the military, you feel that sense of accomplishment. that's what snhu is. - you will march from this arena and say to the world.. i did it. - [woman] you did it. i love you. - [graduate] i love you too.

♪ this sold out in seven hours, the whole thing you can't get it 25 bucks, 25 bounce ebay, and i've got one and you know what? it's darn good and that's because it, what? >> mmm, mmm! that's some delicious pumpkin spice spam

this makes sense to fall back on safe, consistent companies, is there anything more consistent than hormel foods, the maker of spam not to mention jenny-o turkey, today hormel held a major investor meeting in new york city but even though they told a good story, the stock got hit anyway. i think that's wrong don't take that from me, though, or from my teriyaki spam that i've got earlier today, we checked in with jim snee, the chairman and ceo of this great american company that is hormel foods take a look. >> jim, your company is at a crossroads it's the fast forward company, but it's also the historical company. its brands that i love like happy little plants, but it's also this brand, and this brand is back, isn't it? >> well, the brand never left, right? from where we sit, spam is just an iconic brand. it really is foundation of the company. >> but the growth is extraordinary. >> five consecutive years of

record growth. >> and how long did it take pumpkin spam spice to sell out >> seven hours when we announced we were going to sell it in august, since that time, we've had a billion, not a million, a billion media impressions, sold out in seven hours, and now the product is being resold on the internet, 25 bucks a can. it's incredible the response we've got. >> this -- wow i've got gold here. >> absolutely. >> this is not the hormel that people thought this is the hormel -- obviously, you've always had one of the best dividend records, one of the great growth records but we don't think about your company as forward enough to be able to have a pumpkin spice or to have what i think may be the best of these burgers. >> yeah. well, for us, it's really about this we call it a food journey so when you go back in our history, it was about iconic brands like spam, mary kitchen hash and then we involved into nonmeat proteins with skippy but then really getting into some purpose-driven brands like

applegate and justin's and so this big initiative for success food forward we are a food company. we're incredibly proud to be a food company, and we know that there's going to be this constant evolution, and we need to be ahead of it, because the consumer is changing faster than they ever have >> now the applegate move, initially people thought you paid a lot i happen to know applegate from when it started. but applegate is still the purist in the market. >> absolutely. it's the leading brand in the organic and natural space. what we've done with it, though, because of our distinct capabilities, we've taken it out of just retail we've moved into it the food service space. and so it's now connecting with colleges and universities and connecting with an even younger consumer who is going to set it up for a successful future >> talk about colleges and universities and millennials the brand just is a brand that resonates. even on your website, this is a company that i think is kind of -- my generation is new age,

but it's doing well. >> it is it's doing well. it really was an extension of what we call the nut butter platform so we add skippy justin's was a natural extension. and it gave us another great platform for innovation. innovation is a lifeblood to our company. we did wit skippy, and we've done it with justin's. >> i was surprised the ideation to market the fastest of the consumer packaged goods companies. >> we're really fast and great example, you mentioned it a while ago, happy little plants everybody knows what is happening with plant-based proteins that was a trend we saw coming >> right. >> we had actually partnered with another company, and then when the ipo market hit, that partner said you know what we want to try and go it alone so instead of buying, we had to build. and we put our team in motion, and we got it from ideation to market in eight to ten weeks absolutely incredible. >> your company has done so much

for shareholders, and yet here is beyond -- beyond meat is beyond belief when i think about it the valuation of happy little plants and really, the best of the organic protein base versus a company that really has you would say a loaded with chemicals burger how can the wall street, how can the people at home justify what hormel's price is versus beyond? >> yeah, it's hard it's all about the consumer. >> right. >> and so there is no arguing that the consumer is more curious about plants than they ever have been >> right. >> and so when it comes to valuation of the company, all we can worry about is ourselves, and it's about how do we grow our business organically, how do we innovate, and how do we continue to make disciplined acquisitions. >> now there are two elements you can't control. one is price of avocado. look, guacamole is a huge business for you

and african swine flu. talk about the cost inputs of those two. >> in our third quarter we had a run-up in avocados that compressed margins, but that's a short-term blip it's about the consumer demand and the strength of the brand. so wholly guacamole is well positioned for the future. from african swine fever, that's going to be a pork supply disruption and again, it's going to have an impact at some point in time markets haven't run up but that's a short time thing. that short-term margin compression, the longer term story is about the health of the brand, the health of the business we'll get through all the noise because we've got amazing brands >> can the chinese bid up the price of pigs to the point where it's going to hurt you >> it will have an impact in terms of the short-term. they're obviously large consumers of pork. and as that demand from china ramps up, it will have an impact on the supply. but the way we think about it is it's short-term, and we've been through this before.

>> right. >> we know how to navigate pricing. we know how to manage our supply, and so as we think about it over the long-term, we're going to be just fine. >> you've gotten out of just the center of the story, not that your center story has done poorly, again, amazing you're talking about deli counter as being a major growth area how did that stagnant area become a growth area >> again, it's the consumer. so two years ago we made the acquisition of columbus craft meats. it's a west coast brand. it's one of the leading deli companies. and for us it became a catalyst. so we had all these fragments businesses focused on the deli this aloud us to bring them all together in one unified front because the consumer is shopping the perimeter of the store of the deli different than they ever have before so they're going there for entertainment. they're going there for grab and go snacks. they're not going there for dinner the prepared foods section, it's no longest just roasted chicken and mac & cheese these are culinary-themed

offerings in prepared foods. the bought of it for us is we have an incredible food service business that can help retailers capitalize on that trend >> you and all the discussion about it, are a food company. >> absolutely. >> have you ever lost the desire to be a food company all through the years, everyone on the consumer packaged goods side seems to run from it. why are you running to it? >> because food has a way of connecting people like nothing else in our society. and it's all about good quality food so we actually have termed ourselves a global branded food company. not an ag company, global branded food company it's all about the food, and it's all about the brands, and we do want to become more global >> now it would it seems to me that you've got more runway to be global than almost all of the multibillion food companies i follow is this your chance to do it >> and we have been doing it it just hasn't accelerated as quickly as we like we've got a good business in

china that's focused on the china market two years ago we made a small investment in brazil to learn about that market. the business is doing well, and we're getting the learnings to have a platform approach to the business but there is going to be other opportunities to become even more global over time. >> okay. now in the few minutes that we have, your company is a company that identifies with something we've been identifying with on "mad money," and it's a bit of a new pivot for us it's called impact per share your corporate and social response, social has always been at the forefront tell us some of the things that you're doing to make things better in the world. >> i mentioned it earlier. we call it our food journey. and there are really three pillars. it's making sure we take care of our people, because none of this happens without our people, and our partners incredibly important to our business making sure that we take care of the communities by having grea sustainability goals, but giving back to the communities where we live and work. and through this whole food

plorjs crea platform, creating products that improve the lives of consumers it could be for a health benefit. it could be for a craving, a lot of different reasons but as you think about our portfolio, it's broad, it's deep, and it's improving the lives of consumers so those three pillars on our food journey, that's where we're making a difference. >> and finally, a dividend are people liking the continual dividend stream? people may not know how committed you and the 48% of the company that's owned by the hormel foundation which allows you to do a lot of experimentation is deeply committed to the dividend, even though you're trying to do new different things. >> absolutely. you mentioned we're a dividend aristocrat double-digit increases for double-digit years, and we are incredibly fortunate to have the hormel foundation. 48%, and their focus is three things to preserve the independence of the company, which gives us that longer term view to provide for the hormel heirs, and then to give back to the community where we're based. so we are uncommon in that we're

based in a town of 23,000 people, a $9.5 billion company in austin, minnesota and so having that foundation, we say it's the greatest gift we ever got from the hormel family. >> and it's something that obviously you mentioned plant-based. a company walked away from partnering with you and it didn't seem to matter? who was that >> it doesn't matter who it was, but when they saw the ipo, the valuation that they thought they could get on their own, right. and so we wished them well, and then we put our resources to action and said okay, we're no longer going to partner or buy, we're going build this thing so we've got the first entry we've got customer acceptance, and now we're expanding the line the other thing that we're doing is we know that consumers experience these new trends in food service for the first time. and so our well developed food service business, having happy little plants engaged there is going to be an incredible opportunity for us >> and food service plus to me

the invention, the ingenuity is making it so the global trade turmoil doesn't impact you guy, not to the degree it does some others. >> yes, absolutely i want to thank you so much for coming on and being faithful to "mad money." >> absolutely. >> i know the company has been, and we love dividends. we love growth well love honesty. we love sustainability that is all what you give us with hormel. i want to think jim snee who is president and ceo of hormel foods. thank you so much. >> always a pleasure thank you. sometimes, the pressures of today's world can make it tough

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but in my mind i'm still 25. that's why i take osteo bi-flex, to keep me moving the way i was made to. it nourishes and strengthens my joints for the long term. osteo bi-flex - now in triple strength plus magnesium. ♪ there is a price for everything, at least in the stock market sooner or later, beaten down stocks become investable again, as long as the underlying company isn't going out of business and the balance sheet is good. just look at the incredible action today in bed, bath & beyond for years this home goods chain

was an absolute dog -- [ barking thanks to ferocious competition from amazon and better run brick and mortar rivals, especially target it's hemorrhaged market share. the company seemed aimless, wasting billions of dollars on useless buybacks as management repeatedly failed to commit to a real turnaround strategy. >> they know nothing >> bed bath is the poster child for how feckless executives can drive a previously good business right into the ground. the stock peaked around $80 a few years ago. yesterday it closed at $9 and change but here is a shocker, the company is still profitable. it's got more than 1500 stores and an okay balance sheet. bed bath just needed direction, and that's what it got last night when the board poached none other than target's chief merchandising mark triton and named him the new ceo. what a get the stock surged more than 21% today. i think the move made perfect sense. bed bath had been beaten down to

the point where it was too cheap to ignore. it was like a coiled spring, especially giving the short position going into the session. so has this thing finally bottomed we need to be careful here people have lost fortunes, speculating on a bed, bath & beyond turnaround. now i've been warning you away from this stock for ages, but you know what? you know what? i think it's time to go positive on this up with. okay so you missed a couple of smackers today listen to me bed bath has been punished enough now that they've got a competent ceo, better than that, a great ceo coming in, i'm thinking the stock has not just a little more but a lot more upside. what makes you say that? back in april, a trio of activist hedge funds got involved here, legion partners, and encore advisers. i've known onfor 30 years. he spoke in my government conference in the spring about the need to change things, and

these guys had bold plans to turn things around and a strong track record but at the same time i told you bed bath was still too toxic to touch no matter what ousting the old cochildren chairman and now former ceo steve temares. i said no, no, no, the stock is a sell sure enough the stock spiked up to $19 and change and proceeded to lose more than half its value, even though there was some reason to expect a term bed bath reported a hiddious quarter in june and investigators worried they might get slammed again. by mid-august the stock had plunged to $7 and change but at the lowest levels it was selling for just five times earnings that is ridiculously cheap remember, this company is profitable it's cheap unless you're convinced it's going to be worse going forward. even in the low double-digits where it is today, it's a very different story. right now bed bath sells for 6.4 times this year's earnings

that's an incredible bargain if you think the company will come even close to making the numbers. at these levels, you to start fretting about what can go wrong. you've got to start imagining about what can go right. and it's frankly not that hard to imagine, not anymore. in the last couple of weeks, bed bath has had two positive developments that have been completely overlooked. it makes me feel more confident about recommending in this special situation. you already knew, i told you about the new ceo they picked. i'm going give you more on him in a minute. before then, bed bath had already started to turn, okay. the stock didn't lie here. see, last wednesday the company reported a seemingly hideous quarter. it looked very ugly on the surface. however, when you drill down, i felt there were a number of positives. while bed bath's revenue came in weaker than expected and the same-store sales were disastrous, shrinking by 6. 7%, which is just awful -- >> sell, sell, sell! >> when the analysts only expected a 4.5% decline, there was major silver lining. the company earned 34 cents a share, substantially better than

the 27 cents wall street was looking for. >> buy, buy, buy, buy, buy, buy! >> guidance similar management cut their full year earnings forecast bad, but the numbers were still stanley better than what the analysts were modeling, good the bulls were hoping bed bath would new orleans their new ceo, though, and when that didn't happen, well, the stock got hammered peel said you know what? nobody wants this job. which brings us to last night. bed bath desperately needed a permanent ceo that investors could trust. you know what? i can't imagine a better pick than mark tritton who takes over november 4th target is one of the few retailers that has been able to thrive in this environment but that's why i made it part of any acronym called watch, which is walmart, amazon, cost toe, and home depot you will know they've rallied. other than amazon, target has been bed bath's worst enemy. but now they have one of

target's best executives running the show he was a major player in rolling out the omni channel operation that's huge. he turned around the private label business, fabulous, and is responsible for keeping target's major suppliers this line, a major reason they haven't been hurt by the tariffs. once help takes over he needs to do the same thing for bed bath while cleaning up the capital structure. there is a reason why he was short listed from day one. bed bath wants to make itself relevant again, and he is the guy to do it why am i so confident? we learned tritton wanted to be paid in stock rather than getting a big signing bonus. he is betting on himself i want to bet with him and look, tritton is not crazy he never would have taken this job if he believed that bed bath was a lost cause i think the fundamentals are better than most people seem to appreciate there were some genuine positives in the last quarter. on the conference call, bed bath pointed out that they saved hundreds of millions of dollars by improving the byzantine mostly american sourcing model that's why i'm not worrying about the tariffs. the company is already fixing

the ridiculously inefficient supply chain and they won't have to raise prices to you if the tariffs one up next week they're planning to sell off some of the small businesses that cluttered the joint management wouldn't put a specific number on it, but i bet it could be somewhere in the neighborhood of a billion dollar that's a big deal? because bed bath is only a billion and a half company and they already have about a billion dollars in the balance sheet. best of all, has improved versus the quarter they just reported the company only needs to stem the bleeding a little to make the numbers. we're talking down 4%, same store sales down other than six. plus they took a $200 million for inventory and planning to move $350 million of stale inventory for the holidays that means the stores will be clean. that makes a big difference. i'm expecting a major pickup in full-priced sales. even if the estimates need to be cut, even if they can only say make a buck 50 instead of the $2

people are looking for, the stock would still be absurdly cheap at eight times earnings. bottom line, bed bath is back. they finally brought in a hyper competent ceo. and even after the stock's monster run, 21% today, i think it has a lot more upside in a major change for me and "mad money. i would buy some of the stock here and then if you get a pullback, you know what? turnarounds do take a little time, i would definitely buy more bbby who have thunk it? stick with cramer. make fitness routine with pure protein. high protein. low sugar. tastes great! high protein. low sugar. so good! high protein. low sugar. mmmm, birthday cake! pure protein. the best combination for every fitness routine.

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♪ what does the future of retail look like we're about to find out. at a time when traditional mall-based stores are dropping like flies, we've encountered some spectacular growth stories that are trying to reinvent the industry alex mills, a private company founded seven years ago by alex drexler, the son of mickey drexler, the guy who turned gap into powerhouse. they make easy to wear essentials for men and women, stuff that's always in style, and likely to become part of

your day to day uniform. sort of like the old j crew but maybe better and better manufacturing, better price, no mass of physical stores holding them back that often throw away product with too much inventory. inventory being the bane of existence. let's check in with the man himself, founder of alex million. get a better sense of the business and the industry. mr. drexler, welcome back to "mad money." great to see you, mickey. >> thank you for having me. >> okay, mickey, you're back in making clothes. >> yep >> and i want to know why. >> why it's in my dna i can't help it. it keeps me -- it keeps my brain exercised. i love the creativity of clothes, you know, the business has always been in my blood for many -- my whole life, in fact

my father sold buttons and piece goods, or bought buttons and piece goods. so i'm back. when you leave the big jobs, you get a little bored >> right. >> and i was a little bored until i started to do this. >> well, alex mill to me offers truth in terms of what you're getting and value, which are two things that i think are not in the mall and not in the catalog and not in the ecommerce, things that are just thrown on to a website. that's how it resonates to me. that what you're trying to get >> well, it's really simple. i say it's simple in our minds i looked at it my son had a men's only business became available, i worked with him for many years at our old company. when he became available, i put him together with alex, and i got involved, either i'm chief

kibitzer, they call me chairman, but i thought that the world -- again, it's just my personal opinion, could use what you described. you can't leave the store, the website kind of not looking good in a sense, and it's always been something i felt strongly about style, taste, value and quality. i've repeated those words for 40 years. i've been running companies. >> is the mall dying because it doesn't offer those? is there something about the pricing structure when you go buy something at a department store that's just wrong? >> to me and everyone says it's direct to consumer today i think the structureis when there are two profits, two markups instead of one, it already inflates the perceived value of goods. >> okay. >> because customers know. number two, if you take your device and go online, i don't know if half the goods are available at a better price by just punching a few buttons. number two, i think really

importantly, the lack ofpassio for great product and creativity is also very important reason the malls are not doing as well is not enough excitement to fill them up. and frankly, all my friends are going get mad at this in the mall business, they're not doing enough to make them creative, compelling places you want to hang out in, with the exception of some. >> the first time i met you, you said two things to me. you said the secret of success, the eye. you have to have an eye, and you can't have too much inventory. i've never stopped thinking of those, because that's how i judge all retail in the end. you have an eye. can algorithms have an eye can people -- can people get a list of what you like and have an eye from it >> no. first of all, i don't know what an algorithm is, and maybe that's my problem because i hear the word being mentioned

constantly, and data, algorithms and all that show me a great company, and maybe i'm old-fashioned and show me great product and show me vision and leadership that gets the product, and i'll show you a really great business, if they operate it well. now i always had data. my data was my selling report. and as we used to say at the apple board meetings, you know, you got to see around corners. >> right >> and i don't think -- i'm not sure what the definition of algorithms is. i should know. but it's about an instinct, a feel, and what's out there i feel instinct and intuition is critical in any product business >> when you were on steve jobs' apple port, did you talk much about retail and what did you learn from him about retail, and what did you

teach him? >> i think with steve, i taught him, and then he became like the greatest student in the world. i think he -- we did the first store together we spent a lot of time initially, but he went on to build what is arguably the greatest retail empire in the world, and the stores to this day, and this was about 10, 15 years ago, are extraordinarily successful >> extraordinarily >> but you have one brick and mortar you want the lower price you can get without the rent in the double markup, right >> always i'm allergic to the double markup. >> right. >> i realize when i started my career at bloomingdale's you're always paying inflated prices and there weren't discounters then like there are today. >> so curated by -- i always like to have a salesperson help me what do i do if i go to alex mill >> first of all, if you go there, it's only five of us

there. it's very easy right now hopefully it might not be as easy when we have stores we have one temporary store. i hate the word pop-up and i think the other thing is you don't need huge assortments. >> right. >> to shop anymore you don't need them. never did you need a huge assortment focus on the best. >> okay. and then finally, price tariffs, we have to worry about that. i know you source all over the globe. >> well, we source well. we're very tiny. what we have done is we negotiated with the factories that we do business with in asia so we'll pay some tariff, but not the full amount. >> and am i too old for alex mill >> not at all, not at all, because i'm older than you and i ain't too old. >> you're the best this man taught me -- you hear me talk about retailers all the time my dad, he told me, son, in this man taught me the rest, and this is the man who actually is probably the greatest teacher of retail in all time i hope you just learned

something, and maybe we all go to alex mill and do some buying. mickey directser, founder of alex mill and drexler ventures welcome back. >> thank you

it is time it's time for the "lightning round" where -- buy, buy, buy. >> sell, sell, sell! [ buzzer ] and then the "lightning round" is over. are you ready, skee-daddy? let's go to eileen in georgia, eileen >> caller: yes, jim. thanks for taking my call. >> of course >> caller: i am looking to buy stock for grandchildren. >> okay. >> caller: and i was thinking of verizon. >> oh my, 4% yield, good balance sheet. >> buy, buy, buy >> i say buy, buy, buy stop it! let's go to allen in california. allen? >> caller: hey, how are you doing, jim >> couldn't be better. well, a little under the weather. what's up? >> caller: i want to talk about cxw. >> private prisons, we are against those. >> sell, sell, sell! >> we've been against them forever. jim in georgia, jim? >> boo-yah from madison, georgia, certifiably the best

small town in america. >> i didn't know that. nly. >> no, no, no. it never does anything we don't know what's in that portfolio. we're going say no to annaly just a sec i think i might have ail little pepto face there dave in indiana, dave? >> yeah, jim thanks for taking the call from the hoosier state. >> yes. >> my question is anthem i've been with them -- >> anthem, i like anthem everybody hates it it's just the warren factor. not me >> buy, buy, buy >> and that, ladies and gentlemen, is the conclusion of the -- [ buzzer ] >> the "lightning round" is sponsored by td ameritrade tform. mhm, 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. now offering zero commissions on online trades. we charge you less so you have more to invest. ♪

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♪ i said over and over that the fed needs to cut interest rates, right here, right now we constantly hear from people who claim that would be a mistake. i just don't think these hard money proponents should be taken seriously. is there a coherent good faith argument against cutting interest rates right now call me skeptical. there are two camps here you've got the idealogues. they're terrified of inflation, even when it's nonexistent a lot of them want to go back on the gold standard, for heaven's sake, that's a very bad idea and then you have people who

have r so partisan that they're rooting for a recession so that trump won't get reelected. i get rooting for your team, but that's not exactly an honest argument we don't have a political agenda here on "mad money," aside from higher stock prices. i can tell you in no uncertain terms that rate cuts would be good for the economy and the stock market i don't care about it. cart before the horse. i can't believe i even need to make this argument should it be anti-thematic that a lower rate is good for business like a higher rate slammed the brakes on the economy when they heightened too fast, last year. those are already uber low i admit that but auto loans are often priced off the short rates that are set by the fed. right now the auto industry desperately needs a boost. home equity loans priced off the short rate the ideologues go into twitter and call me a charlatan, a cheerleader for prices they say the fed shouldn't cut just because the stock market wants it that's wrong it's not the stock market. it's the much larger bond market

is demanding some rate cuts. when the benchmark treasury yields 1.67%, that's the bond market screaming to the fed chief, we're heading for a slowdown help us. and we're headed for a slowdown, the fed is supposed to cushion the blow by giving us some rate cuts most importantly, going into earnings season, lower rates will give us hope that come next year, we won't have to hear about how our companies have been losing market share overseas to the foreign competitors or are losing money on the translation after they have to sell this lousy currencies and by dollars. right now american businesses are getting hammered by that strong dollar, which makes our products less competitive. it doesn't help that china and europe have moved aggressively to devalue the fed can stop that imbalance with the stroke of a pen our trading partners have stuck it to us endlessly with their weak currencies. we should at least help our own. some worry we'll end up with negative interest rates. so what? our rates didn't go negative during the great recession i doubt they'll go negative this

time even if that does happen, i guarantee you we have bigger fish to fry because rates don't go negative unless there is something very wrong if the white house keeps prosecuting the trade war and enterprise technology spending keeps falling, that's going to hurt the economy it will hurt the job market. and yes, it will hurt the stock market fortunately, there is an easy way to solve the problem the fed needs to cut and cut strongly now so understand, when someone argues against rate cuts here at a time when we hardly have any inflation, they're saying they want a recession call me crazy. i do not want a recession for you, for me, for any american. it would be bad. i can't make it any simpler than that stick with cramer. make nature's bounty hair skin and nails step one. it's the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. nature's bounty, because you're better off healthy.

. trade talks on, trade talks off, trade talks on. too hard, guys let's be very careful. i like to say there is always a bull market somewhere. i promise to try to find it for you right here on "mad money." i'm jim cramer i will see you tomorrow!

narrator: it's been 10 years since "shark tank" ignited america's entrepreneurial spirit. and we are still blazing a trail. for those who take their fate into their own hands by working hard... we are growing incredibly fast. we need a shark to help us take a billion-dollar bite. narrator: ...by working smart... are you ready to try the best tasting drink you've ever had? narrator: ...by thinking big... you simply squeeze the zit, and that's it. narrator: ...and chasing their dreams. we're stepping up the dance-fitness industry to a whole new level. narrator: and tonight, skinnygirl mogul bethenny frankel and branding guru rohan oza join the tank. i think your valuation is too steep. but wait. there's more. take it or leave it. don't go fishing. no one else is gonna make you an offer. i'm the only one with creativity. i'd like to say something! no, no, no, no, no. captions by vitac --