apple still up 2% after hours. and facebook up 5% this does it for us. see you back here tomorrow at 5:00 "mad money" with jim cramer starts right now >> my mission is simple, to make you money. i'm here to level the play field for all investors. there is always a bull market somewhere. and i promise to help you find it "mad money" starts now hey, i'm cramer! welcome to "mad money. welcome to cramerica other people want to make friends, i'm just trying to make you some money my job's not just to entertain, it's toejt, it's to teach to inform call me at 1-800-743-cnbc or tweet me @jimcramer. everybody's focused on the fed right now and with good reason they just gave us that quarter-point rate cut we wanted so badly, right? ♪ hallelujah

dp let's say it gave a nice boost to the averages. dow up, s&p 500 up .33%. nasdaq up .33% interesting synergy there, huh but as important as the federal reserve might be, can we just say that it's not the only thing that matters there are a lost constraints on companies these days that have nothing to do with the fed and after hearing from apple and facebook after the bell, can you imagine these two huge companies tonight, you know what it's head scratching i mean, they're up we've got to devote more attention to a couple of things in particular i never really talked about on this show. we need to spend more time talking about the lack of time to consume all there is out there and we need to spend more time talking about the government, meaning the newfound menace of government when it comes to classic digitized now big business while facebook and apple both reported strong numbers i think the stocks should have been up

much more than they are in after hours. they're good but i expected great. i'm sensing some skepticism here i suspect some of it has to do with the constraints of time and government we're going to define these. what do i mean by them let's start with time. this one's simple. there are only so many hours in a day. lately it feels like i constantly hear about new television or entertainment or sports packages that you can stream over the internet for $5 to $15 a month each of these services offers thousands of hours of programming. netflix, hbo, hulu, amazon, prime, apple tv plus, disney plus, peacock, cbs, all access, showtime, starz, sin macinemax o name it. then you've got the electronic arts and activision and take two and you can play them on systems by sony or microsoft or ninltd, sign up for nfl sunday ticket, watch all the football you need. you can sit on your couch and scroll through your instagram feed while ordering delivery from niche restaurants including wing stop, which we have on

tonight. you can get the same day delivery or next day delivery from amazon unless you prefer to buy online and pick up in the store at costco or walmart but you know what we don't have? we don't have enough hours in a day to enjoy all this stuff we just talked about. not enough time. even if you quit your job and learn how to go without sleep. the latter of which i've got down cold. we also don't have a one-stop shop where everything's at your fingertips, which brings us to the second more powerful limitation, the government the regulators don't want any of these companies to create a one-stop shop because they'd be too powerful when in comes to faang, my acronym for facebook, amazon, apple, netflix and google. china does matter. apple had some great china numbers, by the way. and the fed does matter in terms of trying to figure out how much we should pay for stocks

but listen, when you're dealing with apple and facebook both report really terrific numbers i'm wonder field goal these two companies are so powerful that the good news can actually become a source of bad news. has success been so politicized in this country to the point where they're afraid of crowing, where they're muted? apple's service revenue stream gets better and better if they wanted to they could buy the rights to the nfl. they could buy the nfl after all, apple could afford it they can afford anything and it would bring in tens of millions of viewers if they bought the nfl sunday ticket it would be perfect for the streaming service. but i suspect it won't go that way because in some ways they've gotten too big they don't want to give the government more of an excuse to crack down plus apple ceo tim cook pretty much assured me tonight when i spoke to him that they won't grow content themselves. they don't want to be a catalog. i long for the old days when i preferred world domination via acquisition.

at least when politics reared its ugly head, or her head to be ecumenical facebook they're trying to develop a crypto currency. seemed good to me. kind of a novel idea but they faced enormous resistance from congress as i was watching the house turn mark zukerberg into a pinata not long ago all i could think of was what happens if facebook wants goat into payments and will they be allowed to? are they going to come down hard on that? what if they want to support certain merchants? everything they do now is subject to scrutiny. twitter stopped taking political ads because they couldn't handle the pressure too much hassle. well, isn't that the new normal? these days you need to care about this stuff in the old days before we had trillion-dollar companies, before we had superpowered diefrss you have to pry from our cold dead hands, before antitrust enforcement started making a comeback, we only cared about the numbers. how fast was this company growing, how much money was it earning? what are wr we willing to pay for these earnings here's who i was

that was me. surely you had to factor in the unemployment rate and wages. you had to fret about inflation. you had to worry about the fed still do although right now federal reserve's playing ball fed chief jay powell did exactly what he needed to do today, make calm statements at his press conference, where he explained why we needed a quarter-point hike mostly because of a potential for worldwide slowdown potential, by the way. couple sensitive things aren't too crazy in the u.s that created a benign backdrop which allowed a whole host of stocks to rally, especially the cloud plays because they thrive in a slowing economy they took off today. they finally turned around still in the old days you rarely needed to worry about regulation at least not since reagan was sworn in 38 years ago. you didn't need to consider the consumer didn't have enough hours in the day to consume all the content media companies were producing. these days the constraints have become real and content's very expensive to produce thank you, barry diller. this morning's "squawk box." by the way, new set. we need to start recognizing there's simply not enough time for people to enjoy all the diversions on offer. from a stock picking perspective

that means you need to be more circumspect about these companies that require the consumer's attention in other words, there's just too much darn competition. we've already seen it happen in the food delivery space where grub hub's being eaten alive by postmates, door dash, uber eats. i think the space may get too difficult. the problem is there are only a handful of companies that offer you a genuinely great user experience at an incredible price. and in some ways those companies had become too successful for their own good and those companies are facebook, amazon, apple, alphabet. they've become so big and so powerful that the regulators and many in congress want to put a stop to their expansion. they certainly won't be allowed to keep consolidating. now, it might be more convenient for us if facebook owned twitter and snap and shopify but that's textbook anti-competitive behavior and the regulators won't ever allow it it might make it an easier viewing experience if apple owned the rights to the ncaa,

mlb, nfl, but that ain't going happen maybe it would make sense for them to acquire walmart to teach amazon a lesson. maybe amazon to tax over fedex so we get next day delivery anywhere on earth. but the regulators won't allow that that's probably a good thing i know they wouldn't buy walmart but they would buy target. now, we keep buying the cloud kings and that works stocks like salesforce workday they've got zone big that they're bumping up against each other and the government's not going to let adoebeer salesforce roll them up the bottom line, starting tonight with these two big stellar earnings reports that should have generated gigantic moves in stocks, we need to recognize that for many of the largest companies in this market, companies i love, time and government antitrust enforce rmt going to matter a whole lot more than the fed going forward. you need to monitor the clock and separate the things that give you more minutes from the things that devour your time and you need to understand that

the bigger facebook and amazon and alphabet get the more pushback they'll get from washington fact of life get used to it cullen in new york cullen >> caller: jim, thanks for taking my call >> my pleasure >> caller: i wanted to get your thoughts on virgin galactic, symbol spce. the stock's taken a big hit since going public earlier this -- >> sell sell sell! >> i'm sorry-i hit the -- >> sell sell sell! >> when i come to terms with the situation i say, you know what i'm not really into it it's a novelty it's kind of like hey, it's something new and different, it belongs like maybe in your closet bill in new hampshire. bill >> jim, thank you for taking my call >> okay. >> caller: i love your show. >> thank you >> caller: my question deals with waste management. i've had it for over 18 years. it's done extremely well

as you can imagine last week was a disaster some days it was down $3 i'm at a loss as to the reason for it i was wondering if anyone would know fudge help me out. >> i'm going to help you out tell you to buy it i have a friend bill detwiler from new hampshire this is probably not the same bill not the same accent. waste management had a really good quarter fish is good that's not the protein that you get like when you go to mueller's. that's the name of the ceo and i think that waste management is plain and simple something that i thought i should be buying for the charitable trust and i'm going to put it on the list tomorrow and do the work, even more work than i have. bill, you've got a winner. i'm not kidding. waste management's come down too much all right. now, look. i think facebook's up big. but it should be bigger. i think apple's up big but not enough and now i'm starting to worry about these unseen existential crises things like time and government because otherwise i

think these stocks would be much higher yes. they all look good how about "mad money" tonight? wing stop, which is not by the way worried about antitrust. it's down -- the stock's down nearly 16% in the past few months does the company need more than a wing and a prayer? or is now the perfect time to take a bite? i'm going to talk to the ceo then is it time to pump up the volume on spotify, which would be an example of something that should be bought by one of these great companies but would be shut down by antitrust and it's an under the radar housing play that offers a read on the overall sector and also makes it so i don't have to do my -- i'm talking about tracks don't miss my exclusive with the ceo. and i'm going to suggest you stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer #madtweets send jim an e-mail to madmoney@cnbc.com. or give us a call at

1-800-743-cnbc miss something head to madmoney.cnbc.com.

the worst thing about earnings season is it doesn't always make sense. sometimes the market's just plain wrong about a quarter. watching that play out can be incredibly frustrating just look at the stock of wing stop this year the beer and chicken wings reported what was a serious contender for the best quarter in the entire restaurant space. that space is challenged they post aid 3-cent earnings beat off 17-cent basis with higher than expected revenue and most importantly their same-store sales were mind-blowing, up 11.9% even though management raised their full-year forecast the stock actually got hit this morning before reeblding a tiny bit. closed up 1.5% wing stop, let me just say, it shot the lights out. this action's incredibly dispiriting. wing stop's been pummeled for the first couple months.

into value names normally when the stock's going into earnings and the numbersrich better than expected that's a recipe for a huge rally. for some reason wing stop's in the rodney dangerfield mode. it can't get no respect. i think the market's making a mistake here don't ache it from me. let's dig deeper with charlie morrison, thechairman and ceo of wing stop, find out more about the quarter and his company's prospects. mr. morrison welcome back to "mad money." >> great to be here, jim how are you? >> charlie, i've got to tell you. i'm confused you had by far the best number there wasn't anyone even close maybe chipotle, maybe not. all the owners of wing stops are making incredible money with a small format which is incredible in itself. tell me what's going on in the industry, that people believe the best times are behind them including for wing stop. >> well, i don't believe the best times are behind us at all. we have a great track record of

consistent positive same-store sales growth this year will culminate in our 16th consecutive year of positive same-store sales growth great unit development on pace for another 10% plus delivery in terms of new unit growth for the brand. we have all the right sales drivers in place including increasing our national advertising, the advent of digital, now at 36% of our total business mix and a growing delivery business that now comprises 80% of our restaurants. we have a bright future ahead of us, a lot of runway for growth not only here in the u.s. but across the world >> i want to ask you about across the world because i think your formula is uniquely -- let's say transcends borders i've seen it with kfc. i think wingstop offers a better value frankly. how aggressive can you be overseas knowing that at the same time it is far away and you want it to go right in terms of quality? >> well, i think we have a lot of potential in fact probably as big as the opportunity we have here in the u.s. alone

chicken is the most consumed protein in the world bone-in chicken just like chicken wings is a favorite and a fan favorite everywhere in the world. our unique flavors, the ability to have variety for everyone, makes our brand very portable. and i think you see that in our performance so far roughly 140 restaurants just so far. but we're already emerging as one of the top casual dining plays in mexico. that fran chooilzee just signed a new development agreement to more than double their penetration to up to 200 restaurants in mexico alone. we just opened up in london, our second location. great results in both of those so far very early in the process. we have a long way to go >> charlie, ways on the grubhub conference call yesterday. it's kind of dispiriting frankly because the company seems to have hit a wall so to speak and it's a venture capital wall. it's not a wall by their own making it seems to me that their pain is wingstop's gain am i reading it wrong? >> i think we've done a lot of research in the space over the past few years as we got ready

to implement delivery this year into our business. we took a very methodical approach one thing we like about our partnership with doordash is they're focused on the merchant. us our franchisees. making sure they deliver a great logistics solution that's profitable not only for our franchisees but for them as well we recently just renegotiated our contract with them we're getting ready to start advertising delivery next year we're very bullish on the opportunity and the up side that our committed partnership with doordash has to play for the future >> i'm trying to figure out how they make money. frankly, if it's free to the customer that's an unbelievable deal why would -- i should ask them but they're private. why would anyone agree to that kind of deal particularly because they're sharing all the information about the customer with you. so you've got all the digital stuff you need >> they make money certainly. and they make money three different ways they do charge a fee for delivery, which all the pizza players have done for years as we know. they also have a small

commission that we pay to them for the facilitation of the service which offsets the labor that we would otherwise have to invest in the business the last piece is a tip on the transaction that's paid by the customer to the driver if you combine the three of those together, doordash can make money off a brand especially like wingstop, we have a higher average check, a lot of takeout business already. delivery's a perfect fit and i think if you maximize that equation everybody's going to win. >> were you surprised about the notion of the promiscuous consumer, that they talked about on the grubhub shareholder letter >> yeah, we wouldn't refer to them that way. we call them loyal consumers, people who want to make sure that they're enjoying a quality occasion and that's why we pick doordash as our player. theft best solution for a quality occasion that matches up with exactly what wingstop consumers are expecting out of us it's a win-win in the relationship for us. >> national advertising. something that i know the franchisees absolutely love. are you getting when you see national advertising more door knocks, more companies saying --

more guys saying i own 18 mcdonald's, i want 18 wingstops. lu let me do that? is that what national kigs also does besides bringing in the door >> definitely. markets that are emerging, that are growing for us, we are seeing that kind of sentiment from both our existing franchisees who want to continue to grow and they make up 80% of the development of the brand each and every year, but we also have a lot of attractive new prospects that are coming in the door saying just what you said let me take an opportunity to explore this great brand and we're winning with them. >> let me ask a question, charlie. i note market may not appreciate all the great things you're doing but you have been very good to shareholders you're never afraid to pay a special dividend, return a lot of capital stock down here. don't you feel like rewarding them a little more >> we're going to continue to reward them. since our ipo in 2015 our total shareholder return has approached 400%. that's just the inclusion of the growth and the business plus those special dividends and

return of capital to shareholders we're going to continue that strategy well into the future. >> customers love what you're doing. i think your delivery's so unbelievably good. i want to thank you for everything you've done for shareholders it's always great to see you, sir. >> thank you, jim. appreciate it very much. >> guys, this is one of a kind all right? charlie morrison just keeps delivering and delivering. they have a lot of cash. they have a lot of things they can do for you to reward you this stock is ripe to buy in an environment where i know that yum was not. "mad money's" back after the break.

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♪ please don't stop the music we talked at the top of the show about ideas that consume your time. how do you know when one of those ideas has the right place at the right time to buy the

stock? yeah, that's what i'm thinking about. i'm thinking about the top of the show i'm thinking about soughtify i don't know if you know spotify but it's the world's largest streaming service. when the stock became public a little more than a year and a half ago after initially roaring right after the game, the stock rolled over at the end of last year along with everything else and it never really recovered from that meltdown it was almost as if its time had not yet come but when it opened everyone was so darn excited including me on monday, though, at last spotify reported a fantastic quarter and the stock surged nearly $20, or 16% in a single day. maybe some vindication for me. so is spotify an idea whose time has come maybe. but as someone who started recommending this thing pretty much the moment it came public, let me just tell you, i've been burned every single time that i have said it's the right thing to buy every time i felt we had a sustainable rally and i was

wrong. every time it gained momentum, it swiftly lost that momentum. even when the company reported what i thought were good numbers in the past. wall street would always find something to nitpick about and then the stock would get hit but you know what? this time, this time is different. there was nothing to nitpick with this quarter and it feels like the market's finally giving spotify the credit it deserves but will the newfound love for this stock last? i know when i spoke with them on monday i sensed that maybe it's for real this time but i've been wrong. but let me tell you why i think there will be more up side first you need to understand that spotify is a terrific concept. they give way their huge library of music con tebt if you're willing to listen to adds ads. but you can pay up for an ad free experience and there's a great migration that comes from the advertising people to the ad-free. the company's got 248 million monthly active users, which includes 113 million paying subscribers. that's a unique club, the 100 million-plus club. it's growing like a weed and

it's totally transformed the music industry however for most of its existence as a publicly traded company spotify struggled to find its groove. they've now reported seven quarters since the public listing in april of 2018 and while management's delivered some impressive numbers, five outright revenue beats and just two very small misses, even positive earnings reports have failed to become positive catalysts for the stock. as you can tell from this incredible depiction until two days ago what was spotify's problem why would people not like it there are a couple issues we can go over. for one thing it's never been crystal clear which metrics investors would care about the most remember at the top of the show we talked about time and government those are metrics we're trying to factor in what were the factors you didn't know here? was it total monthly average users? was it paying subscribers? was it revenue there was no consensus on wall street whenever spotify reported an upside surprise with some hair on it there was always someone willing to argue that the

negatives would outweigh the positives. second, spotify's a european company and it gets a huge chunk of its revenues from the united states, though so you have these ridiculous currency fluctuations. they often make very difficult to interpret the numbers for example, the last they reported three months agoat sales earnings were fantastic but the paid subscriber numbers came in weaker than expected some analysts upgraded the stock and raised the price targets others said the paid subscriber was all that mattered and downgraded the stock at the same time we had upgrades and downgrades always a curious situation it ended up that it got hit on the news but then it rallied to its year to date highs. a couple of days later pure confusion third and most important spotify's management is incredibly non-promotional the team led by the straight shooting chairman and ceo daniel eckhaus developed a reputation for giving conservative guidance on their conference calls. this is one of the things i love about spotify. i prefer executives who practice the art of upod, underpromise

and overdeliver. two executives who overpromise and underdeliver really break our hearts unfortunately there were times when the company would report stellar results but then management's forecast sounded tepid. investors gave up on the stock because of it. i want to use a technical term about what happened on this conference call so you really understand no mojo. meanwhile, no one was confident about the management's long-term strategy at the beginning of the year spotify announced it was making a major move into podcasting i thought this was brilliant too. this is another mistake i made they acquired gaimlet media for content sxankor. i didn't cheer because it happens to be in brooklyn five blocks from me this move was greeted by skepticism by others and the bears only got more ammo when apple told us they were getting in the same business over the summer. all along i know i've been positive on spotify except during a moment of temporary weakness when the stock was hit by a savage rotation out of growth into value. spotify's a huge beneficiary

from the rise of the subscription economy they're happy to pay for monthly subscription service that gives them access to a huge library of content at a bargain basement price. plus spotify's always had impressive numbers it's been very frustrating to watch the stock flounder even as they kept delivering solid results. in august the company extended a free trial period from one month to three months which made people worry the streaming music space must be getting competitive. so when spotify reported that fabulous quarter on monday, thank heavens. well, they didn't just deliver better than expected numbers they also put many of these concerns to bed. they finally delivered exactly what i thought that they were going to deliver and then some the company posted better than expected sales, up 28% year over year remember, these are big numbers. they generate 54 million euro

operating profits. street was looking for 30 million euro loss. spotify's monthly average users grew by 30% to 248 million that's 5 million more than the analyst expected that includes higher than anticipated premium subscribers at 113 million up 31% year over year. and much higher than expected ad supported users up 29% even though management once again gave conservative guidance at least it was in line with wall street's expectations they even raised their monthly average user forecast for the next quarter when you drill down it is clear that spotify, it is firing on all cylinders. there is no bear case that i can find now international growth was tremendous the business in latin america. wow, i couldn't believe how strong southeast asia i asked the cfo about it accelerated dramatically india outperforming management's forecast by 30%. changes are clearly working. how about the podcast business wall street's been so skeptical. spotify pointed out they're seeing exponential growth in

podcasts streamed. up 39 since last quarter not last year, last quarter. management adds that for music listeners who do engage in podcasts we're seeing increased engagement and increased ad conversion to premium. me continue, some of the increases are extraordinary, almost too good to be true end quote. holy cow finally, spotify gave us more color on their two-sided market initiative they want to give up-and-coming musicians tools to help connect with an audience and develop their careers. isn't that great this could be a huge source of revenue down the line. they say they'll have more financial details the next time they report. no wonder the stock caught fire on the news. the numbers were almost universally better than expected the much doubted push into podcasts is paying off in a major way. he people love podcasts. we know there's a positive down the road thanks to the initiative could this be the beginning of a longer-term rally for spotify i thought about the beginning but i've been wrong about? it wouldn't be the first newly public company that took a long time to find its groove.

by the way, we saw the same thing happened with two of my absolute favorites in 2016 and '17. oct and cupa it took a little while but once they caught fire wow. the same thing goes for facebook big swoon, then monster rally. but once they found their footing it gave you spectacular long-term gains. netflix hits troubles too before it took the bull by the horns. you know who was one of the architects of the company's strategy matching your tastes with your films in a predictive artificial intelligence fashion? retiring spotify cfo barry mccarthy who i interviewed on monday he will almost certainly be missed i always they've of him when we use spotify at restaurants and it mind reads what our collective customers want. the bottom line. i think spotify will be just fine i think it's terrific. the company just reported a game changer of a quarter and the stock's basically back to where it was in a direct listing last year. i know this looks steep.

you ain't seen nothing yet bill in georgia. bill >> caller: bill in georgia jim, i watch you for many years. i bought roku and had a 20% gain approximately. i held the stock now i have a 6% or 7% loss should i hold or sell? >> this is a wild one, roku. every time you see a new system come out, a new -- david faber has an inbelievable interview about time warner and their hbo on the go. what happens when people buy roku i have to tell you, sir, i don't think that one's done. it can still go higher this can be the beginning of a long-term rally in spotify i got it wrong again i said that five times i like to say when i got it wrong because i like to say when i also got if right. like with apple. like with facebook trax has been on fire.

they gave you a red flag in their own conference call. i talked with the cfo to find out what's on deck for the company going forward. rapid fire lightning round. stay with cramer you should be mad that this is your daily commute. you should be mad at people who forget they're in public. 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.

what the heck just happened to the stock the world's biggest manufacturer of wooden decking and railing products they make products that look like real wood but require less maintenance. until yesterday one of the hottest stocks around. but when the company reported on monday they disappointed wall street while they delivered a four-cent earnings beat on a 58-cent basis they had a revenue shortfall and the xwiens for next quarter was rather subdued management talked about 14% growth down from 7% this past quarter. in response the stock got hammered plunged from 91 to 84 i don't know about this. i think trex has been a terrific long-term performer which is why i wanted to dig deeper to find out what went wrong and if it will be fixed or if it isn't already. jim klein is the president and ceo of trex. he has a better sense of where the company's headed and the

quarter. wl welcome to "mad money. >> great to see you. >> from time to time stock hs a hiccup every time it had a hiccup i said bye because the longer-term thees sis intact your product's better than wood cheaper long-term in terms of maintenance, it's made of things millennials want it to be made of it cuts down on pollution none of that's changed, right? >> none of it's changed. the long-term opportunity is still there, we're still 95% recycled content so the story is strong >> okay. so in the conference call you said commercial products net sales from commercial products was below our expectations in part due to market conditions in part to the uneven nature of that business that said to me wait a second maybe i'm too bullish. >> you've got to remember this is a very small portion of our product portfolio, only about 6% or 7%. it does not drive the earnings as the residential does. residential is repair and remodeling, not new

construction 90%. 95% repair and remodeling. >> you had significant capacity investments. how long do you expect that increase the capacity can support trex's long-term growth? >> the capacity we're putting on has started to come online but most of it comes online in 2021, early 2021 so we're building that capacity for the future we introduced new products the demand for those new products is far stronger than what we'd anticipated. and we see a super opportunity for a long-term run with this stock. >> every time you've been on you've been talking about the real competition is wood but there are now some other players with some capital. and are they nipping at your heels or is the business so big that we shouldn't worry about competitors to trex? >> i do focus on wood. that is the largest opportunity. about 84% of the lineal feet sold is wood

focusing on a competitor is not helpful in my mind zbliem thinking margins were a little under pressure maybe that because because of price cutting. also because you're expanding so fast that sometimes that happens. >> it does we had margin expansion for the second quarter we see the fourth quarter as another strong quarter for trex. and we guided 2020 as being a high growth year for us. double digit >> i just had a nice interview with jim fiderling he's the ceo of dell he's a terrific guy. i approached the idea these younger money managers are different from you and me. they think plastic and they say you know what, i don't care if it's good. they're not going to buy it. when you meet younger managers are there people who say you know what, i want to buy this because this is the future >> i think there's two things the younger managers see number one, they like the recycled content that we have. that is a big plus the other thing they see is millennials look for the same thing baby boomers look for.

they don't want to maintain that deck we offer that opportunity. >> now, when we talk about the recycled, i wasn't clear whether there was -- was there cost pressure on recycled at one point in the call it seemed like your costs were elevated to get the stuff that you use to recycle >> the recycled material's actually been a slow drift downwards either because of the chinese getting out of the acquisition of plastics letting them come into their country, but probably equally as important we've been more selective in the type of plastics we buy. >> okay. now, every time you've come on you've had new uses, new things, stadiums you've done you've done planking all over the place. what's the new stuff for trex? what are you thinking about now that people didn't think trex could be in? >> the opening price point product, it sells at $1.75 at major retailers. it is taking the category by storm. our competition have introduced products similar to ours, but they're priced a little bit

heighter a e higher andwe think that's wher the growth will come in the near term. >> how about the lower interest rates? there were mortgage purchase numbers just this morning that showed me thatpeople should stop doubting what happens when rates come down. it's good for housing. >> it's absolutely good for housing. people have a little bit more money in their pockets or repair and remodeling comes top of mind to them. >> and when they repair or remodel, for instance, i've got a deck that i just switched to trex how many of these people are coming in and saying it's worth the investment because the cfo of home depot she used to tell me there's expense and there's invest as soon as you think your house is going to go up in value, you're not expensing you're investing. are people investing in their home with trex >> we're seeing more and more of that in particular at the opening price point level and the mid price point level. they'd like to get into that ultra low maintenance and not have to worry about replacing that wooden deck in ten years.

>> also i'm trying to figure out whether -- when i see a stadium, should i presume now that what looks like wood is trex? >> not the stadiums yet. there are a couple of stadiums that are putting up like beer gardens and they are using trex material for that. >> this is to me the most natural one. a stadium -- i just don't understand trex is longer lasting it's better than plastic it looks fabulous. people care about the stuff. >> they do and it's easy to clean up so it's a great play for industrial applications or for example the stadiums >> well, i've got to tell you, i think that a lot of times what's happening is this market is people are nitpicking. and to me it sounds like the story's the greatest ever. i've been behind it because my two kids love the recycled aspect i like the fact that i use the decking and it works and i want to thank you so much for coming on. that's jim klein he's president and ceo of trex i don't know if you have a house and you haven't used it, i don't know what you're doing "mad money's" back after the break.

it is time it's time for the lightning round! and then the lightning round is over are you ready skee-daddy jeff in ohio jeff >> caller: big boo-yah to you, jim. >> of course what's up? >> caller: cedar fair. >> cedar fair is up. six flags is down! you've got right one sandusky, ohio how about crystal in california? crystal. >> caller: hello, mr. cramer my stock is square, sq >> i think ever since he left it's done nothing. i think it's time to think maybe you should do something. let's go to dave in virginia dave >> caller: u.s. treasury boo-yah! mgm, jim bo. >> gary and the u.s. bonds boo-yah. i think mgm just reported.

pretty good quarter from what i can tell i think that jim muehren should do more in the sports betting world. okay let's go to judy, judy, judy in maryland >> caller: we love your show >> you're very kind. >> caller: what do you think of idec labs incorporated >> i like the immunization of pets i think it's the best way to play it. and i also want to extend good wishes to john ayers who i know is dealing with some medical issues he stepped down. he's a great man and john, you know we think you've done a remarkable job and you love pets just like us let's go to janet in texas janet. >> caller: jim, this is janet in horseshoe bay, texas the number one 5g stock called marvell technology >> someone stopped me on the street ought other day and said jim, give me two stocks. i said i'm going to give you cvs and i'm going to give you marvell because it's a play on

5g and that is the end of the lightning round! >> announcer: the lightning round is sponsored by td ameritrade well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪ 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.

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i know big pharma's not exactly beloved by wall street but tonight right here goim toeing to say that at this point in the earnings season these stocks have become absurdly cheap in the competition so cheap you've got to buy them. first how about merck? this amazing company has a

groundbreaking cancer immu immunotherapy drug called keytruda easily one of the big wrest blockbusters in history. maybe the biggest. yet 16 times earnings. that's nuts. i expected pfizer to give you a shortfall now that its wonder drug is off patent somehow this stock trades at 14 times next year's earnings 3.8% yield are you kidding me biogen may have come up with a way of treating alzheimer's. they can't stop it but they might be able to slow it down. the analysts were all skeptical initially. one by one they're being converted. i think one by one they might all be believers because biogen resumed this work at beheftd of the fda. nine times next year's earnings. that's insane. this is a $54 billion company that could be worth double last night amgen reported a better quarter that didn't require management to cut their forecast. amen i'm calling that a win with

these guys amgen started to win back major market share in the migraine business their key franchise amovig had been the market leader until eli lilly started making major inroads with the drug distributors and drug stores amgen hasn't done such a good job. last year i want on the phone with mckesson for hours and even when i got it they wouldn't send it for where i want td to go they were horrendous now that amgen's getting it into drugstores on top of that they're just scratching the surface with the sore yachtic arthritis drug they bought from celgene because celgene had to sell it according to the government to merge with bristol-myers. speaking of bristol-myers it had a superb quarter too i expect the celgene deal will make them a fortune once it closes in december it still has a nearly 3% yield, sells for 12 times next year's earnings i've been saying by bristol-myers. i'm confident the numbers will be good. more important the acquisition of the undermanaged allergan should be amazing.

no, i'm not worried about botox's challengers. i'm excited about its new migraine bill to deal with pounding pain as o'a spokesperson for the american migraine foundation i can tell you the concept of acute care for migraine is a very big deal. there's nothing out there aside from standard painkillers which i regard, frankly, as a joke played on sufferers like me. this drug could be huge. novartis is under pressure because one of their subsidiaries got caught tampering with clinical trial data although the drug almost certainly would have been approved anyway. i think the problem will soon be solved 15 times next year's earnings. glaxosmithkline. ceo wamsley has moved sxhaechb earth to turn glaxo into a more r&d focused pharmaceutical company. it's clobbering the competition. eli lilly coming right back. astrazeneca some are worried their strength in their cancer franchise was climerical i think it's the real deal although the stock has run too much at this point don't want you to chase it which brings us to the real anomaly the one that's driving me crazy yes of

course it's the elephant in the room it's johnson & johnson. now, the bears will tell you that j&j is no longer a drug company it's really more like a law firm that happens to have a sideline in pharmaceutical medical devices these days the stock trades based on litigation last night j&j said they can't find any asbestos in the thing they recalled. stock rallied 2.9% still tip of the eye iceberg. opioid lawsuits original talc lawsuits could end up being very expensive i think the stock le main tough tone until we get resolution here that said this too shall pass i'm betting any charitable trust money that j&j comes out on the side of this in good shape but you can't earn unless you take on a lot of pain end of the day though all of these drug stocks are too cheap. they're trading as if elizabeth warren's going to win in a landslide next year with a large enough majority in congress to establish price controls they're priced for total imperfection what if she loses the general election or someone more

moderate takes the primary or -- then the drug stocks can roar. at this point even if she takes a big lead in the polls these stocks they've become too cheap to ignore i say buy one. stick with cramer. when beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond.

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memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. we're worried about time in government because apple is an amazing quarter it should be up by ten points. and facebook was unbelievable. should be up even more i think people are starting to say wait a second we've got to be a little more careful and circumspect about world domination in an election year i wish i didn't have to think about this stuff but it has become on my mind every time i see some big executive from silicon valley go to washington and i say to myself are these companies too successful this one i sure hope isn't because it's all done with ingenuity. like i say there's always a bull market somewhere and i promise to try to find it just for you here on "mad money." i'm jim cramer and i will see you tomorrow ethenny frankel,

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