>> that's the wrong music. i need spanking music or i can't do this. 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. i promise to help you find it. "mad money" starts now. >> hey, i'm cramer. welcome to "mad money." welcome to cramerica people want to make friends, i'm just trying to make you money. my job is not to just entertain but put it in context. so call me or tweet me. get this straight. oil rolls over at the opening of the session. but then rebounds ever so slightly. and suddenly the stock market can rally?

after being down 112. that's when oil was really rolling over. nice recovery there. i have to ask you, how it is that this market, it is still so hot since the price of oil, remember oil rallies a tiny bit off the lows, averages are able we may as well just be one giant stock market devoted to devining oil's direction. the pump everyday i go to work. i've been adamant about the good things that will ultimately industry when energy prices stay low. however, lately as oil keeps plunging, there's a dark underbelly that we haven't addressed enough on the show. namely that the longer crude keeps collapsing, the more stress there is in the system. the worst of fundamentals get for the financials that lent the oil companies money, that's what we're discovering now. that's why we're glued to every

it's the financials now. when oils sold off, we saw small that's no longer the case. companies that used to be much bigger than they are now, companies like chesapeake, chk, which is right in the blast zone of the recent selloff. for those of you not familiar with chesapeake, they were among the largest natural gas producers in the world. it borrowed big and bought key assets making acquisitions with loads of debt that among other reasons contributed to the ultimate removal from the ceo job. now he had the foresight to recognize that natural gas wasn't going to grow much. sow moved aggressively into oil while it was rising. and looked like chesapeake was going to become an oil star. when he left in 2013, chesapeake had a market capitalization of $18 billion.

ledger, though, that the matters here. namely, the $16 billion in debt that the company racked up putting all the assets together. that debt load is a real problem, not just for chesapeake, for a lot of people. chesapeake's cash flow was stretched at the much higher levels. imagine how bad it is right now. natural gas is hovering at a multiyear low. oil is below $30. cash flow situation is critical. no. make that dire. especially as a key fact, $500 million in debt comes due next month. that is what people are thinking about behind the scenes. recently we learned the to do with the debt maturity. how. the thing you need to know is this $1.95 stock is incredibly

as the common stock may ultimately prove worthless. first we know chesapeake owes a lot of people and a lot of companies and perhaps a lot of banks. some real cash. second, chesapeake is having problems here that many companies that shared the intense lack of financial discipline will also be in trouble. unless they have huge reserved the low priced oil. that was actually kind of a skill operator. third, the market is not really ready for these defaults. they're beginning to be priced in. much of the debt is in high yield bond funds and if you haven't heard me before, i am telling that you these must be sold. you must -- there is no place to be reaching for yield. many of the companies in the index i follow which is the hyg i-shares corporate bond etf are all getting hammered. how far ranging can the pain be here? as far as major shareholders,

icahn. he bought a ton of chesapeake stock back in the days. he has a big enough balance sheet that i doubt he'll suffer much from the 10.98% stake. interesting by the way is that he is also the largest shareholder in freeport with an 8.8% stake. another oil company, way too much debt that desperately needs to make sales in order to stay one step ahead of the debt posse. and he owns 13.83% in cheniere energy. they may run into trouble here. the natural gas coming from them will be well above world prices. clearly, eye can has a thees bis energy. i would have to take the other side of the trade on every single one of those positions. i think the positions are horrendous, all three. then there is exposure to the danks. they revealed that oil companies and oil service entities accounted for several percent of

obliterated. banks worldwide lend worldwide and oil companies. chesapeake is a reminder of how flung this bad debt fen no, ma'am could be. you may think that oil is the worst place to be in this market but you'd be wrong. the perception that oil is the next big short, so to speak, the next place for the loan losses will soar causing havoc. bank of america is trading at the cheapest discount that i've ever seen. some is because the bank is the one that did best when the fed raises rates and we'll hear from janet yellen tomorrow. of course the flip side is true, if they do put rate hikes on hold or because of the turmoil, bank of america does the most to lose.

they need it. and if they get it, maybe they could k. do a buyback. that's up to the feds by the way, not bank of america. the bis discount to book value didn't occur until we heard about how the company had made $17 billion in energy loans. they got tens of billions of dollars of loans. there is what everybody cared about. that $17 billion is just too many. okay? as it's hard to imagine who is big enough that needs a loan from bank of america that isn't short on cash. hord to believe this stock repeeled multiple years of gains is now back to where it was in 2013. believe me, there is a sense, holy cow. here we go again bad loan spike and if you fool me once on housing, shame on you. but you fool me twice on housing and oil, then shame on me. in other words, the book value once scrubbed clean is riddled with bad loans of a different sort. after the fiasco last time around, very few people trust this bank. hence, the monster selloff after

up conviction. i have to till, the pain horrendous. how about the foreign banks? we see the declines in the stocks from credit suisse and deutsche bank and other bank that's trade in europe. we have to presume that not only do they not have enough regular business, remember, our banks need it. but maybe they, too, are swimming in bad oil loans or at least bad commodity loans without any transparency over there, we can't be sure. and we always assume the worst in this environment. the european bank stocks is perhaps the most frightening aspect of this particular market. we don't have a handle on their capital situation. they were never subject to the stringent stress test that u.s. government put our banks through. so unlike the banks in this country, we're all almost all raising capital. we don't know if the european firms have the capital to deal with the billions in sour oil

lurking out. there they're just not telling us. finally, there is the master limited partnership, some of which have huge exposure to chesapeake could really get hurt if the company goes bust. you may have seen williams and equity get slaughtered yesterday, even as they rebounded tiny bit today. they have huge composure to chesapeake's pipeline company. wealthy individuals are loaded to the gills with the partnerships and the stocks tend to trade together. the losses staggering. now i don't by any means mean to pick on chesapeake. it's a little atypical most energy companies warrant as reckless whether they put together the portfolios m are still shelling out huge amount of capital expenditures, much of which they don't have the current cash on hand to pay for. here's the thing. many of you have asked me how

the answer is we'll have more and more chesapeakes over time. the silver lining, if these companies can just stop drilling for whatever reason, including bankruptcy, then the price of oil will finally be able to go higher. but that is like wandering through the desert to cross the river jordan. not a lot of firms will make it to the land of milk and honey. so here's the bottom line. if we get enough chesapeakes to stop drilling, oil will indeed find a bottom. in the interim though, expect the pain to continue rippling throughout system every time oil falls, a dollar from here, one dollar, and, of course, every time oil rebounds a buck or two, we get a nice reprieve. just like we saw at the end of today's session. daniel in georgia, daniel? >> caller: hey, jim. i'm looking at chevron. and with all the recent crude oil flufluctuations, where do you see them heading? >> i'm not recommending any fossil fuels. we have written them off in this country.

in. maybe p $76. i'm not a recommender of fossil fuels, though, i'm a serl of fossil fuels necessity cause too much pain. until oil finds a bottom, this market can continue to hurt you. it's a lot of stress on the system. that's what the chesapeake story tells you. on "mad money" tonight, has fanning lost its fight. i'm talk willing the technicals to see if weakness can continue. the stocks are forecasting a recession. don't miss the list just ahead. and he started under armour in his grandma's basement 20 years ago. today his company is the biggest threat to nike in the sportswear. i sat down with kevin plank to hear about his rise to the top. he says take no prisoners. so do i. so why don't you stick with cramer? >> don't miss a second of "mad money." follow@cramer. send him an e-mail or give us a call.

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but before we get into the recent weakness and what to do with it, let's remember where this fang acronym came from. it was actually created here on "mad money" with the help of our favorite chartists. it's just a representative thing about what was working. it's now been almost three years exactly since we first bundled the four names together, february 5th of 2013. since then, facebook soar second down 50%, amazon fell 81%, net richl is 246% higher and google is 83%. on average, banks giving you monster 165% return during the period where the nasdaq rallied 43%. the s&p 500 just 23%. in other words, over the long term, the bank stocks are tremendous outperformers. just like we predicted on the very beginning. lately though the vicious rotating bear market gotten the claws into fang. the whole group has been obliterated which begs the question, will fang continue to get crushed or can facebook, amazon, net licks and google start to make a comeback in the not too distant future?

this one, we need to turn the clarts to get a sense of where the stocks are headed. how about consulting the very chartist who helped recite the fang acronym, bob lange? he is the senior strategist and technical star in the three man team behind the street that comes trifecta stocks newsletter. he thinks it's important to point out when we're in the throes a a bearish market, no markets go untouched. amazon and netflix had a terrific source of funds for troubled hedge funds that need to selt winners to cover resemiconductortions or simply to stay afloechlt remember, guys get to pull the money out, you have to sell something. you sell the most liquid ones. however, while the hedge funneled liquitionish sue temporary, long term, lange believes the fang stocks are facing a pullback. like we see many times before.

take a look at the monthly chart. the recent decline, can you tell. this say big long month, right? we see this. a monthly chart is much longer than what people look at. all the way up here. not only does the stock remain above the 20, okay, and the 30-day -- the 20 and 30-month -- these are month moving averages. but the money flows down at the bottom here remains, it's an indicator that uses to me shurt level of buying or selling pressure in a given stock. it is still positive. just not much to worry about when you take the long view. as a matter of fact, that's -- geez, that's close to perfect. wow. okay. how about amazon's monthly chart? here the pain is more evident. he says that amazon could pull back to the low 400s from here. it has room to fall before it should be written off. not only is the check an money flow really, good it's been very positive for the past nine years. talk about a long term trend.

pullback is a lot like the corrections amazon experienced in 2014 and 2010 where the stock went out of style for a few months. those are times whether the company wasn't that forthcoming with the numbers. remember, they missed numbers badly this conference call. alphabet known as google is in a similar chart. the recent pullbacks, the pullbacks remind lange of selloffs in 2010, 2011 and 20146789 that's whether they tested the 20 month moving average which is currently at $618. lange thinks they test the level and rebounds. they believe it's more likely that google will bottom well before. that he is looking at the moving average indicator. we call that mack d. an indicator they use to detect changes in the stock's trajectory before them. it's been flashing by single since last fall when the black line crossed the red one.

positive. what about netflix though snt best performing stock in the s&p 500 last year. it has been hammered since 2016 began. all right. check out this monthly chart n three months, netflix pulled back to the 20 month moving average which lange believes gives the stock a strong support at $82. that's roughly $4 below where it is trading now. that reminin him of the pullback we saw in 2014 right before netflix rocketed into the stratosphere. he think this is is temperature for airy. he is taking in the long run the fang stocks will do just fine. so what about the short term? again, we'll start with facebook's daily chart which is, lange believes is the bestst bunch. facebook reported spectacular earnings a couple weeks ago.

where it broke below the 50 day moving average even after last week's selling, lange likes to take the money flow index which is positive, shows demand for the stock. he thinks facebook has a nice level of support down $5 from here. he's talking about right here at this level. that is the 200 day moving average. if the stock can break out above the shorter term 50-day moving average, go back over to the blue line, well then lange believes they can return to old highs. that would be something. the broader stock market can find the footing, he says grab facebook. lange thinks google paints a similar picture n google's case, we saw severe decline on very that was forced selling by hedge fufus. i heard of two on the ropes. it could be those.

extremely oversold. he likes the recent bullish morning star pattern. there you go from last thursday's through yesterday's session. and morning star formation you have a big decline followed by a day where not much happensnsa sort o omoment of indecision followed by a big up day. it doesn't quite get us back to where we started. that's what we saw yesterday. to a technician, the morning star pattern signals that a down turn is about to reverse itself. they can rally back up to the 50 day with ease. hey, that will be up 7.3% where it's currently trading. i'llllake it. my travel trust owns this and facebook. amazon that, one is problematic. the daily chart is clearly broken. amazon plunged throughout 200-day moving average with ease on high volume. so there's not much to like here. lange sees a couple signs that

end. the relative strength index. this is currently under 30. that represents an extreme and unsustained oversold condition. see that? right there. interesting. which tells lange buyers are beginning to pick amazon into weakness. still, it's an ugly chart. maybe it's getting less hideous. finally, how about netflix. he thinks this is really due for a bounce much he sees a nice flow of support at will $80. down just $6. down horrendous $6. netflix made a bullish morning star pattern. that is that pattern that we like to talk b the recent down trend could be coming to an end f they can give us follow-through, then he could see it rebounding back to $104 where the stock paces a powerful ceiling of resistance from the 200 day moving average. still that, is 21% ghan a couple

here's the bottom line. as long as the bear is raging, fang is a tough group to own. however, the long term monthly charts interpreted by bob lange suggest that facebook, amazon, netflix and google have up trends which means ones this market wide selloff ends, fang can get the groove back. but short term, lange thinks facebook a a going will have decent prospect, netflix is s t so harar it may be due for an oversold bounce. but amazon's chart, it's just plain broken. much more "mad money" ahead. under armour says he's the sum of all his training. and i got the ceo of one of the very few stocks in the black for the year. but does that make it worth buying? why don't you stick with cramer? here in the city, parking is hard to find. seems like everyone drives. and those who do should switch to geico

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sometimes you have to define the direction of the market in an apples to apples and oranges to oranges way. that's how can you understand what's really going g . what are the real fears of investors? not just the ones expressed by the generic vix, put-call ratios. take for example the extreme valuations in nashgt and when i say extreme, i am talking about genuinely out of control

since the 1980s. just consider that american airlines, united, couldn't nent attal, general motors and ford sell for five times 2016 earnings. thaertd. five times. general motors and ford, they throw-in 5% and 7% yields. otherwise, they would be 5%, too. they're all near or bumping along their lows. then there is campbell's soup at 21 times earnings. clarks, 25 times earnings. all these stocks are at or near their 52-week highs. what do these disparities say about the market? you've come to t t right place. first whether it comes to airlines, the valuations tell us the earnings peaked and are about to go down. you just don't get multiple that's low if earnings are going you don't even see multiple that's low if they're merely last year. no.

are about to be cut in half. i'veveeen time and again that when the given stock sells at less than one-third of the multiple of the average stock of the s&500 which is the case with all these, then it means the earnings estimates will likely prove to be wildly aggressive and numbers have to come down severely. in other words, the market is saying if the seemingly cheap stocks like the airlines and automakers, they're expensive. you just don't know it yet. i'm simply serving here. now consider the stocks.s. if you look at the organic growth rates of these companies, the really frightening indicators of what make a a judgement out, you'll see small growth. procter & gamble, 1%. clorox 3shgs%, kimberly clark, 4%. how can people pay 20 times earnings for the companies? that's substantially in excess of the average stock of procter & gamble gives 3u.2% yield, closhg off, 4.2%, kim letter by, 2.7%.

let's say with more compelling if the stocks sell off. they're competing with a treasury. a ten year treasury at 4.7%. and the treasury doesn't raise the coupon, the company's raise the dividends. all the companies have gigantic energy costs. plus this group rightly or wrongly trades on currencies. people buy them and think the dollar is peaking which we cou argue it to be the case as the euro, get this the exchange rates almost unchanged versus where it was a year ago. no one else is talking about that except for me. i think that a combination of positive currency and lower commodity cross and the ability to raise dividends make the consumer products stocks attractive as the airlines and autos are unattractive. the companies retain enings power. both group of stocks are forecasting a recession with

and tighter credit. in other words, they're simply saying the same thing. saying the same thing but in different ways. proctor and gam sbl my favorite of all the stocks, just in case you want to o echlt let's go to morris in neneyork. more snis. >> caller: hi, jim. how are you doing? >> good. >> caller: i know you own white wave for the trust. since it's a growth stock, it's been getting killed recently. i want to know, a, if there's -- if you think there is more down side ahead and, b, do you think it is a possibility to get picked up now since by larger players since it's much cheaper than six months snag. >> i think this stock is horribly. i'm going back and forth with the portfolio manager. he is my research director for my travel trust. the stock acts horribly. we have to wait to see what they say. it acts so horribly, i feel like it's almost saying it's got to go lower. it is lower already. thth hasn't meant anythihi in the e tural food situationon

hain acted really inappropriately and broke down. let's just hope it doesn't break down any more. i own it for the travel trust. i don't like the way it acts. there are two groups of stocks saying the same thing in different ways. much more "mad money" ahead. could agco's recent strengths signal greener grass in the future?

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what makes kevin plank tick in what makes the founder of underarmour tick? we talked about the company and also what inspires him and what explains his unique take no prisoners attitude toward business and life in general. you see, sometimes the greatness, it's not just about the financials. take a look. kevin, every time i tell people i'm going toinlt view you, they get fired up. they use a term. i need you to define it for me. they say this man is generational and' pales to a new generation. he is next. they use the word next. how do you get to be next? >> that's a great compliment. and one that i think our company looks to lead toward every day. truly, it happens with the

brand. i tell our team, when you show up every day, you're making a depositor withdrawal. let me be clear, everybody has a choice. some days you' going to show up to wo and my wife or my husbd or my kid or the dog or something or my boss is. this and you'll have to just take, you'll have to come and take from the energy of our brand. but so much is we expect you to walk in, you walk in and feel our company. you feel our brand. you go, i challenge anybody, do you need an energy charge? go to the humble and hungry cafe. watch them come together. foot ware, salesesapparel. everyone comes in one room. that idea of, number one. i end every meeting the same way. this is what i heard. this is what i think. and here's what we're going to do. i expect everybody to do it. number one, listen. i mean really listen. not just go in there and run your yap. nobody wants to just hear me. fruly listen. also, i have pinlt of view.

from. based on what i heard and what i think, we're going to call the play. >> what happens if someone disagrees with you. i almost it and charge it. it's my job to make sure that i create an environment that allows people to do that. i said three things that were my favorite things in 2015 is we have a new three year planning process, we had a shoe that won every award called the fat tire shoe and a new brand warehouse we built in chicago. the reason they're my three favorite things, i had nothing to do with a a one of them. the 30% top line growth, the 30% bottom line growth over the last 10 years comes from the team. >> how do you stay, the three words you use right at the top of your conversation, >> i love those words. number one, that is a jordan speith when he was asked on television, he said why did you choose under armour. he said my game is aggressive, young and fearless. and that's the same way that i

that is not something we named ourselves. to hear that come from the athletes, to listen to what the athletes are saying. it fit. it absolutely fit. it's what our brand is. >> how many is family and how much is baltimore? >> how much is baltimore? i mean baltimore is home. baltimore is where -- >> but -- i'm from philly. you have the b bger chip on your shoulder. you have more of a complex than baltimore. >> i started my company in georgetown, washington, d.c. i'm from. there my mother and long line of history from d.c. and we moved to baltimore, people asked why. i said i can't tell you. something drew me. there you know why? something fit the brand, the culture, the ethos, the work boots, lunch pail, that attitude of that city is something that is under armour. it is baltimore. >> and you need baltimore because of beaverton. that's what i always felt. >> i don't want people to think there is not that underdog story

but if you invest in america, you look and say in the world of all that invests in america. in america, the northeast. the northeast corridor, new york is new york, d.c., cat soust the bag. babaimore is an amazing city thatat think is just on thth come. there are 650,000 people there. if we have o o growth, you know, our investororay we said we're going to go to $7.5 billion by 2018. we recognize we're going to bring a lot of well paying jobs and a the love smart people and companies that want support. and we think we can do a great job for our consumer, customer, teammates, shareholders, of course, and we're going to do a great job for our community. >> how do you stay optptistic? you have a scorecaca. how do yououake it so that scororard is part of a bigigr puz puzzle? there are days you create and the markets don't respond. >> everybody will say the same thing. you know, again, with -- in our

look to say what have i learned? i watched our stock go up. i watched it come down. what i saw the times that our stock did go down, how can this happen? we weren't running a great company. we had five quarters of triple digit ventory growth. we learned a lot of lessonin '07 and '08 and '09. we have a strong management team. we have a team of 14,000 that want to do and build the best company in the world. nobody is going to tell us any different. >> you're a guy, very successful. i found out under armour, my daughter is captain of the field hockey team. she 1 wearing the pink shirt. it has ua. how did you get into the consciousness of that generation? >> yeah. you know, little kids like -- is it athlete? it is brand? is it these things? the sfakt that what is infusinged in every product that we sell, noub one, we never

from the equities ofofur brand. that little kid, your daughter, little boys and little girls all over the world, when they put on an under armour top or bottom, they feel there is a superpower involved in that shirt. they thought they could do this. but with under armour i can do more. >> but it's apparel. >> but it's not. our product begins with the fit, the fabric, the form, the function. it begins with the point of view. why do we make that product? not because e thought we can slap aogo on. it's meant to wick moisture and keep you warm, cool, never let you get too hot or too cool. question never compromise. that that's one thing that goes into every product we build. you're not going to see us as a license house. we're aggregators. we'll find the best things in the world and we'll bring them and put them underur portfolio. that is not unlike our connected fitness program, health box. >> which i have. and my son hijacked. you know, 17, rip guy. young you are guys want to be ripped. >> yes. he wants to put weight on. the rest of us are saying how i do control it?

year? >> shoot -- >> think about it. you'll say i don't get sick. >> i get sick but i play through sick. >> you go through. >> walter peyton, biggest game, 104 temperature, that's what we have to do. we play through it. >> but why? why not this year? >> because we want to win. >> if you ask me when j get sick, i catch a cold every time it goes from summer to fall, winter back into spring. i say but why don't i know that? why don't i have something to tell me that is telling me like whether i did get sick? if so, why don't i start loading up on zinc and vitamin c? where y. do we sit back with the least amount of information and the most important thing in our world and that's our help snj. >> one t tng we like, i'm surere you like sharkrkank, the power of being broke. those are things, the power of what is inside you. the power of family, the power of win. the power of listen. the power of triumph.

entrepreneur is that it is a sense of timing, of i'm late. i don't know if i call it fear. what if we go broke? what happens? i have been. there i sat at the doll booth with a nice lady asking where my two dollars was and returning from atlantic city and i spent i was trying to make payroll on i don't have $2. whether you know that feeling able to build from it, you'll never forget it. you ver want to go back. you want to make sure you do everything in your power to put yourself in n sition to never do that again.. >> you takno prisoners. >> yes. >> yes, we do. opportunities. tend, it's up to us to decide to >> let's leave it at. that kevin plank, founder and ceo of under armour.

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it is time. it's time for the "lightning round." and then the "lightning round" is over. are you ready? dave in florida? dave? >> caller: hey, jim, big boo-yah to you there. >> right back at you. >> caller: okay. my stock is blackstone. >> private equity company. they don't have the liquidity to bring companies public. i think it can't make that yield. the stock is so low, i will bet with the sportsman, not against him.

>> caller: hey, jim. my stock reported earnings two weeks ago and gone down 30%. what do you think of linette. >> no. horizon and linette are good but don't buy. there is a washington story. whether it's a washington story -- robert in california? >> caller: jim, pap. >> no, we're not recommending the bank stocks are tough. we don't want -- the bank stocks also in the cross hairs of washington. you have to understand that some companies in the bank and drug group, washington hates them. both parties. cliff in new york. >> caller: thank you for saying my call. can you tell me many charles schwab is an attractive purchase at the president inexpensive stock with no catalyst. therefore, i can't recommend that stock either. >> that, ladies and gentlemen, is the conclusion of the "lightning round."

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considering weakness of crop prices, many seem like a -- you know what, it's a crazy question to ask. but i bring it up because something odd is indeed happening in the stock market. look at what is happening with

that is the third largest maker and distributor of agriculture equipment. agco reported a week ago. even though they beat walt's earnings estimates off a penny, the quarter was viewed as a sappointment because of the commentary felt pretty darn grim. even as they did reiterate the previous guidance. they got slammed and falling 9% in a single session last tuesday from $48 to $44. since then, the stock is able to work higher. plus, even if the hideous market wide selloff, the stocks actually up slightly for the year. that is amazing. it is up from the s&p 500 which is down more than 9%. so the stock's resiliency mean the weak handed share holders are washed out. they could be better than we think? take a closer look with the chairman and ceo of agco. find out more about how his company is doing and where it is heading. welcome back to "mad money".

sir, i have toll you, on the coverage call when reading it through, this swuven the only companies i fall where north america is not doing as well as europe. europe is really big for you. you even see it turning france. i know it's off a small base can we psume that europe is bottom with agriculture? >> well, not completely. we think they -- our feeling is you might be down slightly. maybe 5%, something like that. but, of course, much b bter than erica or south america. >> how is that posble? i mean, i want to read you something from the conference call. to be honest, i am not satisfied with the development in north america. we talk about sharegate but i don't think that we're successful and we saw a break through. what is that? who you are losing to? >> we have a big competitor in america n europe, we are the number one -- we are multibrand

so we have four leading brands and they're very well established and very traditional and have a long heritage in europe. while here in the u.s., we compete with a big player who is very dominant and that's a little bit more difficult. so w whave to reorganize our distribution first which we did. annow we have to invest a little bit more into advertising, training, all things in order to get there. the target was to double market share but to be honest, it didn't happen because the first -- what we will to do first, we had to make money here. we did it in step. some years ago we could become ev. now, of course, we don't want to be -- to basically buy market share. we want to do it for technologies. >> all right. that is important. i'm looking.

money you put n you generated more cash with less shares which is really rather amazing. testament to h h well run the company is by you. but would you be maybe you should take $100 million and go in and try to beat deere at their own game. >> that is something we are trying to do right now. and we want to become more aggressive in certain markets. and i think this is also what our customers are expecting. so we have lounged or we're on the process of launching a super advanced high-tech conventional tractor. so those other tractors with small wheels in front and the big wheels in the rear, more compact than those big old fashioned four wheel drive articulated tractors you can see. and this will rock the industry, i'm sure. >> john deere is a great company. you're telling me you're leapfrogging them in technology?

show, i have to say wait a sesend, maybe they built a better mousetrap? >> yeah. actually, we will have the leading tractor here for the u.s. and that will actuay lower the kpaction, lower fuel consumption, better residual val uchlt everything you want to have. we're advanced, drive train in the world. >> l lt question. at one point you pondedein your confererce call that most of these down turns last two years. we're now in year three. that is highly unusual. can you really eect that it can last the whole year be this bad? >> well, that's what we basically announced. and this is my also wall street was disappointed. i hope that we see a -- we can repair ourselves in order to let's say do our home work and we do look into every corner of

earnings for 2016. so we came in certainly with a conservative guidance. but i hope that we can do slightly better. all right. we're going g keep track of that. american machine that you got against that compapa that is widely considered to be the apple of farm equipment. let's see. president and ceo of agco, thank you for coming on the show. >> they use the cash to buy back stock. the stock is doing better than the average stock in the s & p. if you think the ag sector is coming back, maybe the way to go is agco. an interesting story. stay with cramer. check this out, bro. what's that, broheim? i switched to geico and got more. more savings on car insurance? yeah bro-fessor, and more. like renters insurance. more ways to save. nice, bro-tato chip.

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all right. we have to do more work with disney and panera.