carter >>. >> nay ddine, japa 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 my job isnot just to entertain but to educate and do teaching tonight. call me. if you come at the king, you bust not miss. that's right, this market is taking its cue from the wire you have all these hedge fund

billionaires eager to shoot at the great growth stocks. they come on air and blast these stocks and look like morons when they come roaring back, but they get away with it we saw the final step of this process play out again 179 points, dow. nasdaq jumping 1%. it's the three-step process that we go through, and we have done this since about 2009. we have all three steps in one week first, we'll get some red hot inflation number, and that sends bond yields soaring. that's the bond screaming at the fed. and then we get contrary information after that comes out such as commodity prices that actually go down after a commodity price intdex that say things are hot these price declines suggest that october was the peak. that's contrary to those who are betting against things i bring this up because there are so many hedge fund managers endlessly shorting stocks, up to

50% short, which means they always have to find creative ways to bet against something, even if they're not confident. let's think about what happened this week. remember, these funds got hit with an ugly cpi number. all those commentators came out, fantasizing about how jay powell will watch cnbc and come out and say we need to call an emergency fed meeting, slam the brakes on the economy. that leads tons of hedge funds to short the growth stocks i'm talking about airbnb and jordache, as well as the semi-conductors and fang in football, what comes next is a trap game. an upcoming game you're not even worried about winning, then the other team puts on a spirited contest and somehow wins or beats the points spread, and everyone who bet against them is crushed. and that's what happened that drove stocks up at the end of the week it was the short sellers covering they got beaten in the trap

game everything was supposed to go the way it simply didn't occur they wanted more bad news on the inflation report, they didn't get it and that endangered the whole thesis you end up with days like today where the super high growth stocks can blossom because the shorts are on the run and trying to close out the positions before the weekend as i told you earlier this week, it's the nature of the game. remember, you get bad news, bonds move guys come on tv, tell you to get out. you short and then there's no follow through and then you're stuck. trap game. with that in mind, with the trap game in mind, let's go to our game plan for the next week. we want to come in monday and want to see the west texas intermediate crude down from $78 to $80 that would mean the story is transitory it's a real possibility. i was talking about oil with rusty brazil, my favorite energy expert, and he's of the opinion

the $100 oil thesis from not long ago has really evaporated sure, the speculators will be back when they spike back up, but we're seeing more production from the permian basin wouldn't it be something if the thing that drove the cpi up the most peaked? if you're searching for inflation, you're going to find it with tyson foods, which reports monday morning food inflation is hitting everyone hard. tyson will hurt the bull case for certain. they always do after the close, we get the results from lucid group, the luxury electric vehicle maker which might be due for a revaluation after rivian's monster move this week we'll be in san francisco next week where we hope a catch a glimpse of lucid's car it's a handful of companies ushering the twilight of the internal combustion engine i like tesla and rivian, but given the state of the market, i bet anyone can work here, including lucid. tuesday, oh, boy, we hear from walmart and home depot i'm getting signals from my friends that walmart stock has

an ugly double top brewing as someone who owns it for my travel trust, i take in every clue, both technical and fundamental, even as i think they're doing fine and costco, which has membership fees to fall back on, and not like target. by the way, target reports on wednesday. i think it's good. 200 million people visit walmart every week i feel like even the flame will catch to there as for home depot, this one has a pattern. you have to understand this. they reported say usually 6:00 and 30 seconds or 6:01, and it tends to open up on earnings new and plunge later in the day when you listen to the conference call i recommend waiting for the post quarter sell-off be aware of it if home depot does get hit again, i have an alternative plan it can probably tragdown lowe's. that's your chance to pounce on lowe's it's now the better operator and that's thanks to their ceo's

incredible turnaround efforts. i bet they deliver a fine quarter with a strong holiday forecast if home depot goes down, you can buy lowe's travel trust has positions in two major companies that report wednesday night, cisco and nvidia consisto is now the model for cheap invest stock we'll follow how it's moves to more of a subscription base. i expect good things nvidia has a tough one to follow unfortunately, it has a nasty habit of jumping up and pirouetting down when someone finds a line in the quarter that's a little off. someone downgraded the stock today, fearing elevated expectations now, this one is so deep into next week that you have to check your investing club bulletins to see what we're thinking. we do a deep dive into all of the travel trust stocks when they report. why do i mention this? because it will make you better. thursday, we hear from two companies i like

one is kohl's, and then macy's, which i liked all the way down and then up. it's not distinguished me other than i think the ceo is doing a good job i love retail right now because the consumer is so strong that it can trump any worries about a lack of inventory that the media seems to endlessly focus on. what matters is there are very few promotions going on. that's more important than the port congegz story they can sell almost everything they have at full price. you know how many stores we have twice as many as we need if you can't find something at one, you go to the other there are a ton of reports from a lot of companies applies materials tends to trade with micron, and they have been red hot all week if you look at this, so many people downgraded at $skate, $69, it's pathetic we also hear from intuitive. that's the small business owners best friend. this has been consistently fabulous it will be fabulous again. that's what they do. and then workday, the cloud

based human capital and actual capital software play. i think workday's last acquisition is crushing it the last quarter was amazing for them, and last but not least, palo alto net wrs reports. with so many people working from home, this is for cybersecurity companies that are not all native cloud now, the last few quarters of palo alto have been extraordinary. you know what, you're going to get another one. finally comes friday, which is foot locker day. when you go back to nike's most recent quarter, there were a couple things we didn't like but the u.s., nike is on fire. by the way, nike stock never looked back after people stopped thinking about china now, this is a fantastic setup for a mall-based shoe store, and there you are with foot locker if they can't ball out in this environment, i don't know when they can and i will no longer speak of them, even though they're the only company that reports on friday. i'll make up a company rather than talk to them if they blow this quarter that's not true, but you know what i'm saying. bottom line, look for a week where the shorts will still be

trapped. the consumers robust and tech falters, if only because it's run so much, but therein lies the opportunity to wait for the faltering. a lot of these stocks have run too much, and if i tell you to buy them monday, then i can se in my mentions column, people say there goes cramer again, but i have a guy who reads that now because i'm tired and my feelings got hurt no as we continue to honor veterans and active service members this week, let's take more special video questions from cadets at the military academy at west point. and we salute them mark in massachusetts, mark. >> caller: hey, jim. this is cadet mark fitzpatrick from massachusetts my question is, with airline passengers returning to prepandemic levels, what's your outlook on the airline industry? >> what great question a lot of people are looking at it for some flying out to san francisco, the airports are mobbed, the stocks will come down a bit i'm a believer in united why? because we're going to have

worldwide travel soon and united is going to do well. although i cannot recommend the airlines until oil starts going down and let's go to john in illinois john >> caller: hi, jim i'm john from illinois my question is do you think gm and ford have a chance of catching up with tesla's electric vehicles within the next five to seven years >> john, i think that ford motor is run by jim farley, and you'll understand this. he has a get elon squat at ford. they want to bury musk i think they're sick of his ridiculous arrogance and the way he carries himself made a joke of us who voted, and ford will catch up because spite is a powerful motivator, as is revenge and other things in my head that i don't use anymore. david in alaska. david. >> hey, jim. this is david from fair banks, alaska how will interest rates affect

stocks in the long term? >> this is just a classic situation. we have low rates. why are they low because there's not enough money demand not because the fed is keeping it down. we're issuing trillions of dollars of bonds there's not a lot of demand. why? because everybody has cash the balance sheets are great which means there's going to be construction, which means every time this market gets hit, we have to look at it as an opportunity for the industrials and for the techs, and i like these questions because, did you notice they're not dripping with cynicism my life dripped with cynicism, so it's nice to have an optimistic view. if you're looking for opportunity in the market, why don't you wait for a week? a week where the shorts are still trapped. let them come in and cover and then the stocks come back down because we missed the initial part of the rally. tonight, duo lingo, new name, helping millions across the world learn new languages. could the stock sweet talk its way into your portfolio.

i'm checking in with the ceo of the company. and then the market's recent pullback from highs is a good reminder to always have a diversified portfolio. and by the way, american electric power has its sights set on transitioning to renewable energy sources and i'm hearing more about the company's plans from a very high yielding company, by the way, from the ceo so stay with cramer.

richness. hard you work to build it. now harder stadtfestungsbank works to make it grow more bigger. trust the egg in your nest to our clever money people. stadtfestungsbank. you rich. we make richer. translation is complex. transperfect makes it simple. our experts help your business succeed. in any market, any language, any industry. simplify global business with transperfect.

it's another day. in any market, any language, and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities.

all these new public companies in a year where we had hundreds of ipos. 100 more spac mergers. h what the heck. some do stand out. i like duolingo, the language learning app, came public in july they offer courses in 40 different languages. an app that's been downloaded more than half a million times 42 million monthly active users in their most recent quarter roughly 10 million people using the service on a daily basis most popular app on the app store, all this stuff. but duolingo's stock has been a roller coaster, becoming pulic at $102 in july. shot up to $205 in the wake of a terrific quarter, and then a meltdown that took it back to the $140s and bounced around that level ever since. earlier this week, they reported their second quarter as a

publicly traded company and knocked it out of the park nearly 60% bookings growth however, the stock only rebounded 2% yesterday i wonder if this isn't just a classic buying opportunity we have to take a closure look with a new guest, dr. luis von ahn, the cofounder and ceo of duolingo with more of the company's story. welcome to "mad money. >> thank you for having me, jim. >> okay, so i been studying your company, and i have decided it's a tech company that happens to help uteach languages. it's not a language company because there have been others of those they never really got valuations frankly, they got no love. do you think i'm right and is it because of your excellent background that perhaps this stands out as a new way tolearn languages? >> yeah, i think we really see ourselves as an engineering driven product and product driven company i used to be a professor of engineering science. we're a tech company, but we have been fortunate. by now, we're the most popular

way to learn languages in the world, and i think it has almost, you know, it has a lot to do with how much of a tech company we are >> i think it's also important, one of the reasons i wanted to phrase it as a tech company, there are people who are dead wrong, that viewed you as a covid situation. i think it's the opposite. i think there's going to be world travel, and we know when we get to where we want to go, it's better to try to speak the language, even if it just shows you made the attempt i'm in italy, i transfer with google italian it's not great italian. it seems you are a world opening play if anything to me >> oh, yeah. completely you know, people learn languages for many reasons not just for travel. we have been growing, we launched about ten years ago, and we have been growing steadily since we launched, and the other thing to mention is we really haven't relied on marketing. there's many education companies that mainly rely on marketing.

in our case, our growth is entirely through word of mouth we have been growing every year. we're bigger than the previous year when covid came, we did see an increase, just because people were kind of stuck at home, but by now, we are kind of back to our usual pre-covid growth rates. and we just keep growing and growing. i think it just speaks to the many reasons why people want to learn a language travel is one of them. there's others you know, by the way, the largest language learner in the world is english, and english is just a very special language most countries in the world, knowledge of english can significantly increase your income potential people are learning to get a better job, and people are learning because they have a significant other that speaks that language or, you know, their grandmother or something like that. it's many reasons to learn a langwing, and for covid, we just saw it as, you know, a tailwind for a while, but now we're back to our pre-covid growth rates. >> i think it's great. i mentioned to a friend of mine who happened to be a substantial

donor to carnegie mellon i said, what do you think? he said, it's free, i don't know how they make money. there's an interesting way to look at it, but you're actually free, you can be, take all your courses free, but people seem to want to pay in the sense you get them in, but they see what they like >> yeah, that's something, you know, by the way, the fact we're free is very important to our mission. duolingo is a very mission driven company we started because we wanted to -- i in particular wanted to make the best education in the world, and make it universally available. i'm from a pretty poor country, from guatemala, and i saw what happens, the difference between those who get an education and those who don't get an education. you know, and poor countries especially, like guatemala, if you get an education, you continue having a lot ofmoney and usually those who have money are the ones who get an education. those who don't have money barely learn to read and write when we launched duolingo, it was always going to be a free way to learn a language. you can learn on duolingo as

much as you want without having to pay us. but of course, just like with spotify, if you use the free version of duolingo, you may see some ads at the end of every lesson, and then the other way we make money is if you don't want to see ads, you can pay us to subscribe, and the sub subscription, it turns off the ads and gives you a few other perks. we make the majority of our money through subscription that has worked out pretty welg. by now, we're the top grossing app in the education category. out of all the education apps, we make moremoney. >> that's fabulous >> what makes me proudest is in our case, you can learn entirely for free, and in the majority of other education apps, you have to pay to learn. >> also, statistics are staggering about how better comparisons, but how much better people do learning languages with duolingo than they do very expensive liberal arts colleges. >> yeah, that's something that also we're very proud of we spend a lot of effort trying

to make duolingo as effective as possible the reason, by the way, it's so effective is because we have literally millions and millions of users, and we use the data from all of these users to personalize how we teach so even though duolingo looks kind of cutesy and gamified, it's actually quite sophisticated. whenever you're using duolingo, we record everything you do so we know every question you get right, every question you get wrong. if you get it wrong, we know why you got it wrong we was use all of that to build a model just for you whenever you start a lesson, we know you in particular may not be very good at the past tense, so we give you more past tense exercises. because of this, we just did a little -- well, a relatively robust study that shows that if you learn on duolingo and get to about halfway down the course, you learn the equivalent of four university semesters of language education but in half of the time so that's something we're very proud of >> it's terrific i'm old enough to remember burr lits

i also know rosetta's stone. those i felt had no great mode they're interesting, and as long as people were felt like they had to go overseas, maybe they did it this is the first time i ever heard it being used as a hobby people i know are using it as a hobby to learn a language. i find that staggering you must be doing something really great to have people say this is what i'm going do. i'm not doing candy crush, not going to watch sports. i'm going to do duolingo that's how it works apparently >> that's something, you know, when we started working on duolingo, early on we realized the hardest thing about learning a language by yourself is taying motivated. we spent a lot of effort making it as fun as possible, and you're right this is, you know, when a lot of our users on duolingo, particularly in countries like the united states where there's just not that much of a need to learn a language, a lot of our users, you ask them, why are you using duolingo, one of the most common answers is i used to play candy crush, but that was a waste of time.

now i'm using dowolingo, it's fun and i'm learning spanish or french, so that's a good fraction of our users here in the united states. >> look, this is an astounding story, i have to tell you. when we heard you were on, i didn't know many people who knew you. turned out to be the opposite. i know many people who do duolingo they just don't talk about it. then when i heard you were on the show, the more i asked about it, the more i realized they're taking it. my wife is taking italian with a tutor and i'm going to go home tonight and say listen, i love your tutor, absolutely, but this seems like a much better way you have a lot of people who have probably done much better with duolingo than with very expensive tutors, i would presume. >> that's what we want to do we really want to get to the point where we just we're the main way to learn a language everywhere, and you know, the thing is, with smartphones, we really think the way we deliver education is through smartphones. it's actually an extremely good method to deliver education. we currently have 42 million

current active users if we want to teach language to 42 million people, we would have to build a lot of schools or having a lot of tutors the beautiful thing about smartphones is we can deliver all of this relatively cheaply now, the thing with smartphones, of course, is that in the smartphone, there's also tiktok, and then there's also instagram, so for us to be so good at what we do, we also have to make it so duolingo is as enjoyable as the other apps like tiktok and stuff like that. >> you're doing just a fabulous job. i'm so glad you came on the show this is a fascinating story, and also feel good, nothing the matter with that times are tough when it comes to not -- our country being friends with other countries this could make a great deal of difference that's luis von ahn. thank you so much for coming on the show >> thank you thank you so much, jim this is different. i like it. "mad money" is back after the break.

>> coming up, master the unknown. be ready for any market. another edition of am i diversified is coming up next. ♪♪ in boxing or any other business, one day, you're gonna take a hit you didn't see coming. do you stay down? or do you get up? [announcer] and this fight is a long way from over,

leonard is coming back. ♪♪ ♪♪ it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities.

i'll shoot you an estimate as soon as i get back to the office. hey, i can help you do that right now. high thryv! thryv? yep. i'm the all-in-one management software built for small business. high thryv! help me with scheduling? sure thing. up top. high thryv! payments? high thryv! promotions? high thryv! email marketing?

almost there, hold on. wait for it. high thryv! manage my customer list? can do. will do. high thryv! post on social media? hash-tag high thryv my friend! get a free demo at thryv.com. earlier in the show, just like at the end of every week, i give you my game plan for what to look out for on wall street but it's impossible to know everything that's ahead. and what could happen that might move the market. particularly move the market down that's why it's important to stay diversified that's why we play am i diversified and have since we started 16 years ago this is where you call me and tell your top five holding let's go to bob in florida bob. >> caller: boo-yah, jim. it's bob from florida. formerly from new jersey, i know we have spoken a few times it's been quite a while since we last spoke i love what you do for us home

gamers today i would like to ask am i diversified. my top five holdings are shopify, apple, nvidia, upstart, and tesla. >> whoa. all right, this is -- this gentleman has a very interesting portfolio because you could argue that they're all going to trade together because they're high risk, high reward but he knows -- he's a seasoned player so let's go over what bob has here shopify is a very expensive stock, but it's been expensive since we started liking it they do the back end for a lot like etsy, a lot of people who are finally getting to be empowered by business. i love that. upstart, get rid of fiko scores, we have artificial intelligence to tell you what are going to be working and what are not tesla, what more can be said about it nvidia, they report next week. if i had to buy it, i wouldn't

buy it yet, we can wait, and apple. apple, nvidia, they're both tech but one is lower multiple. and one is higher. one is semi. but you can say, jim, give me a break. you have to buy united health. i get that, but i'm not going to go against what john has, and i tell you why he stays on top of things, he watches the show, and even though he has two techs. i'm going to let it go because he knows that apple is iconic and i'm not going to tell him to trade out of it. because you're supposed to own apple, not trade it. can we go to -- that was bob in florida. how about scott. scott in new york, scott >> caller: hi, jim i'm scott from new york. i appreciate you having me on the show my five stocks are nvidia, square, tesla, crowdstrike, and abide materials. am i diversified >> holy cow. now i'm encouraging -- i know, someone is going to say jim is encouraging reckless buying of high cost, high price stocks but square, i hope to see them

next week. square's a great payments play okay, applied materials is going to report next week. i think you will have a great quarter, particularly as you watch micron go higher because you need a lot of their materials to make semi-conductors. crowd strike, that's kurt's. we think the world of him. tesla, how much more is there to be said, and nvidia reports next week i have been telling members of the club, just be careful. the stock is historically traded down after reports so we do have a payments processor, tech, tech, tech. and i better start showing some discipline we have to trade out of applied materials. sorry, i love those guys they're fantastic, but we have to put in -- crowd strike, because i like palo alto more than crowd strike, i'm going to replace that with diversified industrial let's do -- diversified health care let's do the new j&j

that way we have a dividend and very good stuff in the pipe. there. okay, lastly, look, i like playing this game. lastly, let's -- hey, how about a tweet? maybe from a local pro and it says, hi, jim thanks in part to your teaching, i'm retired. how good is that here are my largest holdings blackstone, u.s. bank corp, real income corp, ford, and proctor & gamble thanks, jim. thank you. so realty income, my writing partner, we actually upgraded that last week thinking it's really good yielder. proctor, proctor is so incredibly well run because of the product story. ford has been our large position for the travel trust you should be following along by this point we need members of the club. blackstone is a terrific financial. u.s. bank corp is a not great financial frankly.

we have a reit, a very good financial that is an asset manager. a terrific diversified industrial or auto company, if you want to call it that, and a consumer products company. what is this portfolio lacking ini think you could say it's lacking a tech company so we're going to put apple in there. and then i feel much better. okay, much more "mad money" ahead, including my exclusive with american electric power, which i mentioned earlier as a way to get yield after recent dividend hike, does it have what it takes to be in your portfolio and then the breakups on wall street continue from ge to j&j i'm looking at this week's major breakups and sharing if they might be worth celebrating, and rapid fire, all your calls on the lightning round. stay with cramer

what do you do with high yield and divtened stocks at a time when interest rates are creeping up? creating more competition for the bond market. i think you need to search for utilities that have an extra catalyst like american electric power. it owns the largest power transmission network as long as power generation assets. more importantly, they have bun begun to make a move to clean energy they're building a huge set of wind farms in oklahoma the final phase set to be finished next year now you have a 3.8% yield. so could ap be worth buying now? it's got a pullback. let's check in with the chairman and ceo of american electric power. mr. akins, welcome back. >> great to be with you again. >> so let's get right to what seems to be the heart of the

point of wall street now we have rivian, fiskers, lucid, tesla. can our grid handle all of the cars and vehicles that these companies are eventually going to make? >> well, certainly, we could handle it right now, but obviously, the planning efforts associated with getting the grid ready is in full motion. we actually are part of an electric grid coalition. we were one of the founding members take the range anxiety out to put charging stations in place to accommodate all of these vehicles so we'll be ready. >> now, everyone keeps saying the grid is not in good shape, and i have told people as varied as elon musk that you can't talk about the grid there are some utilities that are very good at keeping up. and there are others that aren't is that a fair characterization? not all grid is created equal? >> that's true i think certainly infrastructure in large in this country is challenged in some fashion, but certainly, the electric grid, we

focus on the resiliency and relie reliability of the grid, and many of are involved to nsure customers get the capacity they need when they need it it is challenged in some fashions because if we make transitions too quickly, or certainly, like texas showed, certainly the issues with storm yuri, there were tremendous impacts on the grid. we have to be really careful about how we transition toward the future >> storm yuri came up in your conference call. obviously, the damage was far more extensive than we realized in the northeast >> there was certainly issues associated with the grid itself and a portion of texas the other portion, though, that we're involved with as well was actually the cost for consumers relative to fuel cost. we actually had periods of time within a week, was essentially the same as the entire fuel budget for the entire year so obviously, we're trying to

accommodate customers in terms of being able to recover those costs with a longer term view. you have to be really careful when the fuel costs spike like that in these kinds of situations >> yeah, especially if you're in places like the uk where there's really no hope at least we know we have it in the ground, but because of different regimes we can't pull it out, we can't pipe it now, you had a really good page, and this is where you just gave some facts and figures about the consumer, residential, industrial it seems like everything is coming back. some things are now back to above where they were pre-pandemic give me the state of play, how you see things you have aggregate figures here, but maybe there's some areas that are really booming. >> yeah, we benefit in our service territory with certainly oil and gas prices up. on the one hand, it increases cost for consumers on the other hand, producers and others in the oil and gas industry continue to pick up as well but also, industrial activity continues to grow. there's no question about it

and i think maybe some of it is catch-up in terms of the downturn that occurred during much of the covid activities, but certainly, we see that continuing to grow and on the residential side, there's still a work from home environment. so we're benefitting from the continued residential output, but the same industrial is going up and commercial is starting to pick back up so it really is sort of all three planets are starting to align in so many ways at this point. >> now, you are still probably one of the most active in terms of renewables. you're talking about now over 16 gigawatts of new renewables. where is the country and american electric power versus the country when it comes to renewables >> it varies on what part of the country. certainly, if you had higher costs begin with, a lot easier to bring in renewables although now, today, with where technology is going, the benefits of renewables are certainly there if done in the

right way. our 16 gigawatts of new renewables in place in the plan before 2030, much of that is before 2025. that really is layering renewables to lower the emissions output and still have the fossil generation in place at the time you need it, like the dead of winter, for example, where you need that capacity to serve customers' demand. we can achieve both objectives, but do it in a way to make that transition, and from the renewable standpoint, there's no question we're at the front edge of a massive change out in transformation not only at ap, but the industrial as well >> can you tell me whether our country, let me back up, in germany, they try to do a lot stuff involving renewables but a lot of the country is dark they have like 23% of the sunlight we have are we sometimes fooling ourselves with renewables that they just don't work becausef the weather? >> certainly, there has to be --

you have to be mindful of the resources and the limitations associated with it so it is intermittent supply when the sun is not hshining or the wind is not blowing, you have issues, so you have to be careful. that's why all of these resources are needed and we have to be mindful of how we use those resources. typically in the dead of winter in the northeastern united states, the midwest, you're looking at mainly 30% coal, 30% nuclear, 30% natural gas and les than 5% on renewables. that doesn't mean you can't start layering in the renewables from an energy standpoint and still serve that capacity. we have to be very mindful of that transition and use these resources in the right way >> one last question for hose who own it and thinking about the dividend when they see kentucky disposal impact on dividend, impact on what you're up to? >> kentucky was one of the underperforming jurisdictions

for us and certainly, from a portfolio management perspective, we want to make sure that if we're putting in 16 gigawatts of new renewables and having the largest transmission system in the country, which is going to be benefitting from that movement to a clean energy economy, we have to make sure we focus our financial resources toward those kinds of investments, so we'll have to go through portfolio management to insure that we're making the right decisions relative to that deployment of capital. >> look, i just think you're doing a terrific job i want everyone to understand that you can't just flip a switch and just be all renewable. it doesn't work, but you have companies and you have people like nick akins doing the best to get us there. great to see you again on "mad money. >> thank you >> okay, that's nick akins, chair and president and ceo of ap long our favorite utility. first consistent dividend and strong management team "mad money" is back after the break.

coming up, cramer answers the call a very special salute to service lightning round is next. when you hear the word healthy it always feels a little out of reach. but it's all about the baby steps. maybe it's a jump or eating something green. or taking mom to get that vaccine. ♪ healthier means bringing stuff to the folks ♪ ♪ that really need it. ♪ ♪ like help at 2 am or care that's right at home. ♪ ♪ believe it. ♪ ♪ and caring for them all means ♪ ♪ we're doing healthier right. ♪ ♪ so, let's do it all together people, ♪ ♪ 'cause this is what healthier looks like. ♪ at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future

for those you love. vanguard. become an owner.

it is time, time for the lightning round. and then the lightning round is over are you ready? zach in california, zach >> caller: good afternoon, jim how are you? >> i'm good. how are you? >> caller: thank you very much sincerely for all you do for us. >> thank you

>> caller: the stock i'm calling about is blackstone. ticker bx. >> we know blackstone had a giant run. you can say it's been 100 points of recommending the stock, but you know what, they're a very good company i think it can go higher still michael in maine, michael. >> caller: boo-yah, jim. >> boo-yah, michael. >> caller: abcl has been kicking me in the pants from 67 all the way down i can't show my face at the yacht club >> it's got all the buzz words of a great biotech i ain't playing. sorry. andrew in rhode island andrew >> caller: hey, jim. how are you doing? >> i'm good. how about you? >> caller: doing great living the dream >> there you go. >> caller: yeah. yeah >> all right while we're at it, let's take a stock while we're dreaming here. >> caller: sounds good i would love to hear your take on nio >> we don't need nio we have tesla. we have rivian, we have fisker and we have lucid. you name your poison

let's go to tim in texas tim. >> caller: hey, boo-yah, jim this is tim. 32-year retired veteran. great to hear from you >> thank you for your service. wow, that's a long time. thank you. >> caller: hey, artillery all the way. jim, i'm looking for long term investment of the stock evgo >> this is a tough one tim, this is a tough one i tell you why lets be clear about it, all these stocks had another major run up. just a huge run up and when we have gotten involved in these after the runs, it has always crushed us. i don't think this time will be any different. let's go to brian in florida brian. >> caller: boo-yah, jim. >> boo-yah >> caller: i'm looking for a recovery play in hp caught my eye. what do you think? >> i didn't like the way they did their big refinance. that one haa major run from the bottom, it's just not a great

one. look, the recovery, letter o, i think letter o might be better for you as a recovery play and it's got a 4% yield. and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade >> coming up, hot, hot, hike make sense of the day's most critical market machinations in no time flat stick with cramer for a special no huddle, next. i'm searching for info on options trading, and look, it feels like i'm just wasting time. that's why td ameritrade designed

a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit tdameritrade.com/learn ♪

when you break up an iconic company, you do so for a reason. you think the parts are worth more than the whole. when i see the managers of general electric and johnson & johnson, two of the most iconic companies, committing to breakups, it makes a son of sense. wall street is not giving them their due, and the ceos want to do something about it. in the case of ge, i can't stand how its fabulous aerospace

business is overshadowed by the health care business and the inconsistent growth of the power business i want aerospace, but i don't want the others. it's clear separate parts can have higher valuations rather than parts of an unyielding conglomerate, but the j&j separation, this truly excites me the decision to separate johnson & johnson's fast growing pharma business, one of the fastest there is, look at that, people realize, people overpaid here, but these people are getting a bargain. they separated from the slower growth consumer packaged goods business it had me reminiscing of another situation like this, another breakup, of abbott labs. that broke in two. they kept their legacy medical device business, and spun out abbvie with terrific franchises. at the time, the stock was worth $81 billion. now, abbott alone is worth $227

billion. and abbvie is worth $207 billion. for a total of $434 billion. now, that is the kind of value creation that you and i must be on the hunt for all the time now, much of what happened there came down to execution myles white performed brilliantly, even when he retired, he chose excellent people to run abbott and abbvie. abbvie has an outsized dividend, they're both attractive. both for the trust we write about them all the time, if you're a member of the club the j&j breakup is similar you have a pure play pharma business that grows fast and then a group of popular over the counter brands, whether it be tylenol or benadryl or neutrogena alone today, i think i have taken everything on this wall, every single one of them yeah, i mean, between this and that, well, probably too much graphic -- just check. anyway, when you ask people about j&j's pharma business, most don't even know that they have a superior organic growth that breaches 10%.

that's remarkable. it's an old company. they have got solid eye care, heart disease, cancer franchises excellent medical devise business that acts for 35% of their sales. and when i saw these breakdowns, the first thing i said to myself was, why do they have to do this what's the point hey, j&j is a terrific company on its own, but i also know that the pharma and consumer products divisions have very little to do with each other at this point. sure, they have more in common than ge's cats and dog collection, but there's no real reason to keep these under the same roof, plus like ge's aerospace business, their pharma business isn't getting its due because it's buried in a larger company. my colleague david faber told me i'm always pointing out the higher multiple stocks and isn't that good. i say, hey, look, the portfolio managers who want the more dynamic drug business, they don't have any interest in owning consumer packaged goods they're not interesting. there's a constituency for

consumer packaged good stock, and there's a constituency for a drug company with a medical device ticker. but there's much less demand for a david kronen brg style combination. split off the over the counter business and it can get love from people who love procter & gamble or colgate, and maybe it can merge with somebody else or continue totyke share. as for the j&j drug business, i think it's a stand-alone business and will be worth much more their ceos work tirelessly to create value for you they are two of a kind they're not satisfied with how much they have rewarded their shareholders so now they're going above and beyond and taking the matter into their own hands. i think both stocks are buys the only reason we don't buy g serx we already have bying as for j&j, consider it in the bull pen, which means we'll be debating owning the stock when a position opens up for the trust, and thanks to this breakup,

you're getting not one but two fabulous companies over the course of the next 18 months it's worth the wait. i like what these people are doing. i also like to 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, see you monday from san francisco the news with shepard smith starts now good news for britney, bad news for bannon. this is "the news" on cnbc britney spears, finally free her conservatorship, over. a rush of legal action after the concert stampede that killed nine lawsuits piled up.