practically on the dot. you know why? i think that can happen. let's just say that can be difficult. so why don't we do this? in the interests of trying to figure out how low we could go, why don't we just presume that it's the wrong number and the market goes down? let's presume it. what does it look like? where could it stop? what's the worst case scenario, not saying the worst will happen. i think it's important to noodle on this issue. one thing we know about sell-offs is they take into account all stocks. they can hit everything. so even though a too strong or too weak report would create interest to sell stock, the impact would be initially the same. second, when i'm trying to assess worst case scenario, i've seen big moves, starting my career the dow jones was 1,100, i like to go back and look at when things were when the most recent run-up started.

not the big runup from the end of the year, the most recent step up. en i ponder what triggered the rally and see the components where they were. i puzzle over whether the gains can be held or rolled back by negative news tomorrow. this last leg of the push to dow to 15,400. i like to use the dow, the people know the s&p. they're more familiar with the dow. the last push to dow 15,400, the recent peaks started in they're more familiar with the dow. the last push to dow 15,400, the recent peaks started in february. what triggered this last run-up? you know, i go back. i read all the stories from february 14th to 18th, which is really the genesis period, and it was a wave of takeovers. a wave of takeovers that looked to be signaling the beginning of a massive consolidation of many industries by brilliant buyers you trusted, warren buffet's berkshire hathaway buying heinz, liberty global acquiring kinder media.

kinder morgan purchasing pocono, comcast and officemax and office depot talking about merging in an industry horrendously overpopulated. michael dell, he's trying to take dell private at the same time. smart buyers everywhere. they must know something, right? these deals caused a colossal reevaluation of all stocks. the beginning of a strong season for homes, remember i told you last night, homes are what matter, led you believe stocks were too low. even after what had already been a trick run from the whole fiscal cliff problem. however, that wave of deals turned out to be a one off tsunami. there was no follow-up. in fact, we are now on pace for the fewest big deals in years. so much for that evaluation. that was wrong. yes, the spring selling season was strong for housing, perhaps too strong, because it caused mortgage rates to fly up to levels that could slow down housing entirely, 4% mortgage.

i know it sounds low versus historic of our lives. it's very high versus where it was. that's the only part of the economy that's robust at all. two pillars that took us to this level have become let's just say shaky at best. all right? next i like to look at what stocks are vulnerable in t dow jones average, ones have moved up gigantically since this leg of the rally, this is the leg i think is vulnerable. i see which ones moved up here. it's like they're the likely ones to go down. they're the likely ones to cause the weakness going forward, people have the biggest profits in them. i think this is in the end a profit-taking sell-off. i like profit-taking sell offs because bulls make money, hogs get slaughtered. there are 11 dow stocks that are up appreciably from this period to here that are really responsible for almost all the gain. american express, boeing, cisco, disney, hewlett packard, johnson & johnson, 3m and united health. fortunately, all those stocks reported something substantive that was positive during this

period. although some have run too far since posting these earnings. what do we do? here's the worst case scenario which is that this move is the most, let's say, in jeopardy. american express put up a good number. it has gone from 61 in this period to 76. this stock can easily fall back 10% without a problem. boeing has been one of the strongest stocks in the dow of late running from 75 right there, okay, to 99 now. that move is deserving, boeing had a terrific quarter since they fixed that dreamliner problem. i don't think it has more than a 10% decline before buyers come in. cisco up from 20 right here to 24.55. it reported its first good quarter in the year. telco equipment sales i think it's headed higher not lower, that's a go-to stock. disney, which rallied from 64 to 53 shaded down numbers, it has vulnerability.

dupont moved a fabulous quarter. i'm saying this can pull back to 50 and still be $3 above where it was when this rally began. now, here are the real worry positions. first there's hewlett packard. now it's going from $16 to $24. it did report an excellent quarter in that period in terms of the balance sheet and the earnings, not the sales. it's still not doing well. i think hewlett packard could easily fall $3 bucks tomorrow. the wrong number. home depot, it rallied all the way up to 81. it came back to 87 today. housing slow. listen, that stock can go to 70. next up j & j, guess what, with rates going up, that spur is diminished. j & j pulled back to 24. it can retreat, not much more. i'm very worried about 3m. this company reported a highly disappointing quarter, in a real

sell-off, 3m has real downside, maybe down 11 bucks to 97 where it was right here when the rally began. finally, united health, i would think that unh can travel back to the $56/$57 range, not far above where it was before this last leg. people don't have profits since february, so they're less at risk. believe it or not, after this week-long decline, at least very few other dow stocks that have many points to give up. i'm concerned about ibm. they reported a really bad quarter. it plunged from 208 rally then fell to 187. ten rallied back to 208 and went to 203 today. this one has a disappointing number. walmart is at issue, too. the stock stood at at 76. since then it got better, not worse. stock has gotten better the company has gotten worse, 10% in a heartbeat. mcdonald's can go swiftly to 92 where the move started.

verizon worries me, at&t is pulling back to where it was in february. verizon, it would give that back if things got bad. finally, microsoft got three big downgrades since it started. it barely has been nicked. a move to 32 would bring out a lot of buyers at that level. j.p. morgan moved from 46 where it began to 53. banks get hit hard. stock goes to 49. here's the bottom line. after calculating this move, all these are worst case, okay. do i think they will go? no, my goal is to show you if it goes wrong, these are the levels that i think the market could be contained by. this is where the latest leg of the rally began so we will go back to test some of those levels, no matter what happens, no matter whether the number is too strong or too weak, unless it's perfect. yes, these rollbacks would put us down, the ones i gave you, 600 points. remember, we're on a much bigger basis. dow goes to 14,360 on a worst case, that's right. that's why i'm willing to say

3-4% down from here seems like a reasonable retreat on the wrong employment number. not much more. buyers will come back. even if interest rates go up from these levels or fears of lower profits prevail. let's go to bill in new jersey. bill. >> hey, jim, i got a question on verizon. the pe is over 100, management is talking about spending $130 billion to buy back stock from vodophone, they're handing over info to the government, and is the dividend secure? >> the dividend is secure. you have to business it on cash flow not earning, because it has a gigantic cash flow. that's why the earnings are not listed. the dividends can go higher. it's a great company. i think it deserves to go higher than it is, that's what will happen. steve in california. steve. >> caller: boo-yah, jim, from gorgeous california. are you outstanding. >> true no one is arguing. >> caller: you got it. news corp, their publishing arm

based on the number of your current shares, two questions, one, what happens to my current shares and, two, should i buy more prior to the 19th? >> you are going to get two companies. i really like the non-publishing because i like if fact, look, i think they're going against espn. it is going to be really difficult. analysts will love it. they're going to say, hey, listen, buy the new news corp. that's the piece you want. i think frankly the publishing business it's just okay. all right. how do we get here? i looked down the barrel of many sell-offs in my day. it's time to look back where this rally began. i gave you the worst case scenario with on the wrong number takes this down only 600 points, "mad money" will be right back. coming up, sweet stock? a surge in coffee and donut sales helped krispy kreme shares rise to eight-year highs and the company just sprinkled on a forecast that has investors licking their chops. cramer's looking for any holes in an exclusive with the ceo

coming up. and later, balanced breakfast? from shredded wheat to cereal that's more sweet, this company is a staple of many morning routines, but as the stock's fundamentals improve, does it have all the ingredients for a takeover? don't flake out. cramer pores over the details ahead. all coming up on "mad money."

>> i spent a lot of time talking about the power of execution on this show, what great management can mean for a company's future. it's one of those things that's not easy to quantify, analysts prefer to put a number on. when you want to see what great execution looks like with transformation of leadership, take one look at krispy kreme. it became public and was hot, spent the next two years roaring higher. by 2003, krispy kreme was $50 bucks a share. the next year, the wheels started falling off. they blamed the atkins diet at one point for turning people against donuts. it became clear they expanded

too rapidly, in january, 2008, they appointed the chairman, a guy with extensive experience on wall street including turn-around experience. at the time the stock was trading at $2 bucks. in the years since, it has gradually come roaring back. i recommended $12 in january. after to the company's most recent quarter, i think the stock has a lot more room to run. it has four cent earnings beat off a 16% basis, stronger than expected revenue, monstrous sales growth. 11.4%. it raised guidance for the full year. company now has realistic and extremely bullish plans to expand, both domestically and more important abroad. it is growing its international locations by 2017. that's a short period and that's what we want. this is a truly fabulous turnaround, don't take it from me. we have the chairman, president and ceo of krispy kreme.

mr. morgan. welcome to "mad money." i have a long history with krispy kreme. you got a job at my hedge fund, came in at 4 in the morning. you had to bring me a dozen krispy kremes. the magic is back? how did it happen? i remember it was a treasured brand. people dream about it. one or two. then there were like 50 in new york it seemed, they were everywhere. how did you manage to scale it back and how are you managing to bring it back other way now? >> well, part of the answer is sometimes necessity is the mother of invention. we had to do some backtracking, but you know, i probably had the easiest job at the company in the turn around because i inherited an extraordinary brand that's beloved world wide, a product i believe is the best in its class, a great team. we had a few holes we had to fill. we had to bring in a few people in. >> two holes donut joke.

>> good pickup on your part there. we brought some strong teams in, speaking of operations and marketing. then we had to do a lot of work, jim, repairing our relationship with franchisees. >> let's talk about that. these days, when they put out this note, it says lagging domestic franchise development remains our primary concern. in truth, that's up to you now. you grow them at the pace you want, not at the pace others want, right? >> jim, that is so on target. we have been very intentional about not doing it until we were ready. we wanted to be sure three things were in place. one, the franchisor had a strong foundation, and secondly that we had a ready to be economically successful and third did the current franchisees we owe so much were thriving. they had 11% sales gain last quarter. things are in place. we are looking forward to growing domestically over the coming months and years. >> my friend said i don't

understand in the conference call they talked about how they won't be able to duplicate this number. you talked about in the first three weeks of may, things are pretty good. is it possible you are just a conservative guy. >> that's probably a small part of that. i think the truth is we are going against much more difficult comparisons. so i think we are pretty much on record. we'd be pleased. we think we can achieve same store sales growth of 7% and combined with that 11 plus first quarter we'd be thrilled. >> people have to recognize you have to look at it year over year, that's what's important. you guys are talking about different day parts for donuts, not a morning thing. >> create additional case we did a big research project. what came back, they said don't be in a hurry to roll out that menu, right now people are saying give us more reasons to come at different times of the day, so by combining that with a big beverage push, you are exactly right. we are trying to bring people in different times of the day, four different donuts of different types.

>> you are serving lattes. is that working for you? >> actually the specialty coffee has been a big hit. we reintroduced our coffee products a year-and-a-half ago, more recently, it seems to fit well. >> all right. now, overseas, does the brand have some sort of bizarre resonance we might not know for americans. because the numbers you wanted, the number of stores you want to add are similar to what when howard schultz came back starbucks did. >> it is even as a person working there now, i am just amazed at what happens when we open up new and in a foreign country. the most recent one i mentioned was in scotland. we finally got into scotland in edinburgh. they had traffic jam, front page pictures in headlines because we were the only store in scotland. that will change a bit as we open up more stores. the brand has an attraction world wide that quite frankly our brand is so much bigger than our company.

>> now, let's take this store opening, because the trajectory is when you first open, you might have 64,000, then you go down. it does tail off. three weeks later in scotland, was it still something that was doing as well as the first week? in three months later, was it doing as well in the first month? >> that's a great question. some people need to understand about krispy kreme, the opening fervor lasts much longer internationally than domestically. we will have it last in japan it lasted in some stores two or three years before it started to dwindle. the same reason our international same store sales don't look as good. the average per store still look great. >> the last question i want to ask is philosophical. we spent time talking about whole foods, fresh market, hain celestial. looking good, feeling good. i love these, candidly i will treat myself to one after i've done maybe a two-and-a-half hour workout, i might have one of these or a half of them. how is this in sync with where

the country and the world is supposed to be going. >> we think about that. we recognize krispy kreme is a treat. we see it as an affordable indulgence, with the lifestyle and done in moderation. this might surprise you a bit. i think that's physical health and there is also emotional health and we think it's a great product for people's emotional health. >> do you sense that from the social media? you are a huge social media proponent. >> they tell us the emotional attachment to the brand and the product is every bit as great as the physical attachment. >> you have done an amazing job. it's a fantastic transformation. we were rooting for you. we felt you did come in and it did look desperate, jim. >> we all appreciate that. i have had more fun than any one person could have on the earth. if i had known how much fun it was going to be, i would have had them hire me years ago. >> you know i like dunkin' donuts, i like those stories. this one maybe has the most

growth from the potential right now more than all those other stocks. "mad money" is back after the break. coming up, balanced breakfast? from shredded wheat to cereal that's more sweet. this company is a staple of many morning are you teens. but as the stock's fundamentals improve, does it have all the ingredients for a takeover? don't flake out. cramer pours over the details ahead. and later, greased lightning. renewable energy group takes table scraps and turns them into gas at the tank. could its newly vintage stock give you long returns for the long haul? don't miss cramer's exclusive, all coming up on "mad money." ♪

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>> the market seems to get hammered by the day even as the averages rebounded this afternoon. where do you go in order to pick them among the rubble? what kind of stocks does it seem to bet on in an environment that seems to be getting worse, frankly? simple, you want takeover plays with decent fundamentals down in price from their highs because of the nasty sell-off we are going through. one of the biggest complaints the companies missed their window to make their acquisitions. we had a roaring bull market.

for a while it seemed to make sense to buy companies. then they became too expensive to acquire. now the market has been hit and hit hard, a whole number of companies have become affordable. if any of the stocks catch a bid, you know they will soar. let me tell you about a company that i think is just begging to be taken over. i'm referring to post holdings. yes, the breakfast cereal company that makes everything from honey bunches to, well, take a look, shredded wheat, pebbles, waffle crisp, grape nuts, raisin bran. mmm. anyway, compared to most packaged foods, post is tiny. they get caught in your throat a little with a market capitalization of roughly $1.4 billion. you want to wrap your head around it? you need the history.

post was never intended to stand on its own. it was a division of old kraft. back in 2008, kraft sold to ralcorp, including lots of knockoff cereals, however the post-acquisition didn't make a ton of sense. it did a poor job of averaging the national brand cereal business. they make a smart move, break itself up by spinning off post holdings as a separate company. don't get me wrong, post has done very well with a focus on improving margins, generating lots of cash flow. one of my long-term execs in the world. by the way the deal king of the consumer packaged goods sector. i think he has one more deal in him. lately, raw costs have been rising. they still have to do deals with the supermarkets. i recommended roughly 16 months ago, since then they have given us a gain. spinoff allowed them to get from conagra.

they will prefer a simple pure play over a complicated mish mash of different businesses. that's why i think post is a fabulous takeover target. i think the company is too small to remain independent in the cutthroat world of the cereal business. these guys really go at it. we know that post has done a great deal to get its house in order. even so, some of the company's key brands have been in trouble. for example, post reported on may 13th. the company did miss numbers. partly because of a 4% decline in averages. meanwhile, honey bunches of oats, one of the key brands was down 9% in the channel. post was trading $47 before the quarter was reported. they've come down to $42, the keystone brand, i know you want me to pull this out. watch.

ha, yes. this decline was kind of pretty rapidly. i think this move lower is going to be what it takes for a suitor to come in swooping, acquire the company for other than less than itould. the window is here. hearthside foods makes organic cereals and granolas. that's what consumers are craving these days. it's not that i believe post makes sense, i think we are starting to see more consolidation in the food space. for a long period we didn't see it. that will make acquisitions a lot more likely. last big wave of mergers and acquisitions happened more than a decade ago when we saw numerous large scale transactions. unilever was snatching up kraft foods, general mills devouring pillsbury. among others, since then, most of the players in this industry have basically been untouched. it's kind of done, until now. things have begun to change. we see a number of breakups and

spin-offs that have created smaller companies, alternatively more likely to make focus acquisitions itself. sara lee, we liked that one. kraft broke up into mondeliz for snacks and a new kraft food group for everything else. meanwhile, more and more deals happening in the packaged food space. conagra's ralcorps, berkshire hathaway said it was taking over heinz, hormel bought skippy peanut butter. sara lee's spin-off, that's what will happen here with post. look, a week and a half ago, we learned that smithfield foods were acquired by the chinese, 31% premium. i think these deals are just beginning. post is next. who would buy this company? as stupid as it sounds, i think one buyer could be the former owner, kraft. listen, i know it's a ridiculous question, the old kraft sold it

five years ago the new is different. it's a different company from the one that sold off post. it's a company that's much more focused on the u.s. grocery business. we know they are looking for acquisitions with cash flow to take over more aisles in the supermarket. post fits the bill. then there is this new heinz at berkshire hathaway. the heinz ceo said the goal of the deal is to make his business into a quote, bigger, more global food company. this is one i think is the most likely, pinnacle foods, one of my new favorites, a stock my charitable trust owns. it's a recent ipo. it specializes in revitalizing older brands like raisin bran? bird's eye. duncan hines.

post is like really old. pinnacle has stated it wants to grow its shelf space, which post would like let them do instantly. i think this deal makes a ton of sense. as a matter of fact, i know they're a close viewer of the show. just go do the deal. how much would post be valued? we get 3.1 billion enterprise, $63 a share. let's go more conservative. based on what conagra paid, $53 a share. here's the bottom line. in a bull market, you can still make money on takeovers, which is why i'm recommending post holdings for takeover speculation right here right now. the stock can work higher thanks to the terrific management. the acquisition is a real possibility for this tiny cereal name. one fell swoop it would send post soaring. let's take some calls.

michael in connecticut. >> caller: hey, jim, love the show. my stock is bnny. it's been on a dip and had a bearish day today. should i hold? >> i got to tell you, annie's a rollup by stern agie of fresh market and whole foods that emphasize how important this cohort is, i'm going to say annie's is god. buy, buy, buy. because they, too, are taking shelf space. they have a great organic level. funny, donuts work, tasty cereals like this work. food works. let's go to marilyn in texas. >> caller: boo-yah from johnny football aggieland texas. >> well, we're aggies. none of this, you know this stuff. don't hook 'em. you know. >> caller: i know you are a hook 'em. how are you, i'm an aggie. jim, a few years ago, you were talking about cheesecake factory and i went ahead and bought some

of that and it's been doing really good. it's going up, going down and actually today, in fact, it went up. what do you think about getting rid of it or buying some more? >> no, that is a very well run company. it's at a high. listen, so my trainer comes to me, he goes, you know what, cheesecake factory has a new diet menu. anyway, yep, but that's the joke. cheesecake is a really well managed company, a dollar off its high, i want you to stay in it. johnny football, what can i say? he's an exciting guy, always welcome on the show. don't cry over spilled milk in the market. instead, look for companies to give cereal profits. i think post goes higher. stay with cramer.

>> it is time, it is time for the lightning round? i tell you whether to buy, buy, buy, or sell, sell, sell, when you hear this sound the lightning round is over. are you ready, skeedaddy? it's time for the lightning round. why don't we start with mark in arizona, mark! >> caller: boo-yah, jim cramer. >> well, how are you doing boo-yah, kids? >> caller: mr. cramer this is mark, natalie and evan in the grand canyon state of arizona.

we appreciate everything you do for our family and it's like macy's threw a sale yesterday. we pulled out the shopping list and bought allstate, all. >> i like that very much. a 10% move. like that. you got a good one. don't forget, everybody, june 13th is the family affair just like we got from mark. have your kids on. it's fabulous. we get all kinds coming on this show. let's go to lorna in new york. >> caller: hi, jim. my stock is alny. >> we like that. that's a special pharma. they do a special speculative biotech pharma. after what regeneron did today, you have to like that stock. we will stick by it. let's go to paul in washington. paul. >> caller: hello, jim, from blain, washington. how are you doing? >> all right. how are you? >> caller: good. my stock is calumet. until it started reversing, it was going down three months, a

peg ratio .5 and a great dividend, what do you think? >> i will say okay. abate yesterday. i think they went up a little. today they can beat past that. i think you will be fine, not my favorite in the group. i think you will be fine. don in new york. >> caller: i am a tremendous fan of yours and we have something very much in common. i was jackie wilson's road manager. when you play "higher and higher," it brings tears to my eyes, no kidding. >> i had friends at the latin casino that night, sir. >> caller: jimmy, i'm making a couple comments about this company and i'm asking your opinion. micron technology. >> they make flash and d-ram, both of those two lines are actually going up in price. usually the average selling price is going down, that's why micron is still a buy, buy, buy.

tom in illinois. >> caller: jim, first time caller, long-time listener. >> great. what's up? >> caller: i am wondering about visa. you said wait for a pullback. is it ready to buy? >> you know, i would use a deep in the money call strategy, i would actually buy some visa, if we have a bad number tomorrow and the stock drops, i want you to buy some. it is a great company. i like it more than mastercard so we know in terms of the pecking order. ray in illinois. >> caller: jim, we never miss your show. >> thank you. >> caller: a few weeks ago we heard from titan. >> holy cow, i will go with him, not against him. he's got the tire business. i have to tell you, that is a cyclical business. you are buying that stock at a

rock bottom valuation, which is why i would endorse it. it is inexpensive. ladies and gentlemen, is the conclusion of the lightning round. [ music playing ] have hail damage to both their cars. ted ted is trying to get a hold of his insurance agent. maxwell is not. he's on geico.com setting up an appointment with an adjuster. ted is now on hold with his insurance company. maxwell is not and just confirmed a 5:30 time for tuesday. ted, is still waiting. yes! maxwell is out and about... with ted's now ex-girlfriend. wheeeee! whoo! later ted! online claims appointments. just a click away on geico.com. one way i can take care of my engine... is with one a day men's. a complete multivitamin with nutrients to help support heart health. compared to centrum men's, it has more vitamin d. to help support healthy blood pressure. [ engine revs ] [ male announcer ] one a day men's.

it's time to talk about how to speculate wisely. what do you do with a little stock you probably never heard of that has more than doubled since the beginning of the year. symbol regi, a quarter million dollar company the largest maker of biodiesel, many have not heard about it until recently. it's made from vegetable oil from animal fat.

reason they have been roaring is in a way biodiesel a lot like ethanol, but i guess it falls into the renewable fuels program. every year they require them to blend a greater and greater volume where the traditional diesel fuel. refining industry has no choice. that's a reason why they are rallying. the other factor is the traditional diesel tends to sell at $4.50 a gallon. it's made from soy, which is expensive. it relies 84% on agricultural waste. there is grease products like the gross stuff used from the fryers in mcdonald's. it's a heck of a lot cheaper and doesn't drive up the cost of your food. regi had a major share holder file 3 million shares. be careful, there is a bit of an overhang, once it trades, it will be a speculative play. we want to talk to the ceo to learn more about its company. it's a complicated company and

its prospects. mr. o, welcome to "mad money," thank you for coming. >> jim, thanks for having us here. >> we often talk about natural gas being a great surface fuel, it's independent, make it so we would be able to have cleaner skies, all good. yours could do the same for truck, too. >> it already does, actually has for many, many years. it's a part of the diesel complex and is growing right now. we are about 2% of the overall distillate pool. >> your feed stock is different from traditional biodiesel and different from ethanol in that it's also much less costly than what they are doing, it doesn't make it so that our chicken and meat are more expensive. >> what we've done is we've built a business that's fully integrated. we are sold in 39 out of 50 states last year plus canada and our facilities especially our refineries and our procurement and logistics system work hand-in-hand so we can take

really crude raw material, clean it up, run it through our refineries, make a very high quality diesel fuel. >> this stuff would be thrown out otherwise, a lot of it? it's all waste, waste to energy? >> the raw materials we use are co-products. they come out of the oil and fat complex. when we take that raw material and pay a higher price, we make it far more likely that food and carbohydrates and protein are going to be produced. >> now, when i talked to people about the company, the stock has been a rocket ship, they point out that biodiesel government incentives were still a big part of your profits that ended 2013, not subsidy incentive itself, so to speak. what happens, senator corker, a smart guy, seems to be trying to change the economics of this industry? what happens if washington goes with corker and makes it so these refineries don't have to use your product? >> we operate under a policy called renewable fuel standard 2. rfs 2 is the shorthand.

i like it. i'm as tough a capitalist you will find out there. i am dedicated. our company is dedicated to make a tough, lean, competitive business. in the long run, we have to assume as our industry grows and the complex around us grows that those incentives will go away. >> it's not the solar industry i'm speaking to, where they know there is no business. >> our business existed long before any of the incentives that are here. we started in 1996. now, they're very important. they help build a very important complex and in terms of energy security, food security, jobs revitalization, agricultural reenforcement. this is a very well regarded industry and it's supported by many, many sides. >> okay. you missed some competitors who are substantially larger than you, including archer daniels, but they're not, they're larger as a company, they're larger but

they have mot moved into this. what if they decide, you know what, we ought to be in this industry? it is a lucrative industry. >> well they are in the industry today and world wide they are substantial in vegetable conversion. they look at it a different way than we do, for the most part. they're in the business of crushing seeds. they're creating oatmeal. they will send it to oleo chemical or edible or fuel. we're in a different place where we're taking those co-products, that's our main raw material. so we got to have a widespread opportunity. >> last thing, your motto, food security, food then fuel. explain that to people. it's something i believe in very strongly. >> it is fundamental to one of the reasons why you will see the industry around for a very long time, because as much as energy security is focused on, food security is driven by us, too. so when we take those co-products that are small value, livestock, grain or a bushel of something and we pay a much higher price than in the past, which was low value. now we are putting an energy

value on it. we make it far more likely that food will be produced at all, we're at a god price. >> that's very meaningful for all of us. we didn't know you guys were around. now we do. that's the president and ceo of renewable energy group. remember speculative stock. do the research. it's a very valuable interesting company and it is for real. "mad money" is back after the break. what do you think about caffeine? we consume over two billion cups of coffee every week without a second thought. 5-hour energy has less caffeine than some starbucks coffees, plus it has vitamins and nutrients. it's simple... caffeine with vitamins and nutrients. it's the combination that makes it so great. before you make a decision, get the facts. try a sip and find out why so many people love 5-hour energy.

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>> oh, what makes someone like me skittish about the stockmarket? first i am a sector guy, the employment number we get tomorrow is important. i don't care that much about the charts, but i respect what the chartists are saying, we go off the charts. at the end of the day i respect what companies are telling us. i try to form a world view, based on business people, not politicians or world chartists tell me, that way i have more conviction in my feelings. i say that being confident in yourhoice is more important than how you make those choices, see, chartists look at pictographs. i prefer the conference calls, the earnings reports and the research. i haven't liked what i have been hearing of late. last night, earnings reports from four retailers were plain out disappointing. now, i haven't been a fan of vera bradley.

i didn't like the fashion aspect, the hit or miss element of the business. the handbag line, a big one. vera bradley talked about merchandise challenges, which in my view don't happen if you have the right assortment. they talked about a weak spring for their apparel and accessories, ascena, i didn't think it would be this bad. dress barn is down. you put these three together, you got a gloomy picture of what is out there with many shapes and sizes people spending less. you couple that with dollar general, you get a sense may was a very weak month. the huge increase in interest rates on a percentage basis is happening at just the wrong time. plus all the jabbering fed head guys. you combine higher rates with less business.

it wasn't all bad. we had a hard goods retailer cons report god numbers. they sell home furnishings, appliances, they were up today. normally, it would be important to the offset vera bradley and ascena, conn's trend is in a grain of salt. when i put it together, i come back with at best a mixed retail picture at a time i expected an improving one, frankly. now mortgage rates have gone over 4%. is it the end of the world? no, no, no. do these numbers embolden me to think the correction is over? not really. that's what gives me less confidence to say things will improve for our stocks, even though they have come down enough to embolden me for my charitable trust to start picking among some of the rubble. stay with cramer.

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>> i hope to see you guys at the monster conference on saturday. i like to stay there is always a

bull market somewhere. i promise to find it just for you right here on "mad money." i'm jim cramer and i will see you tomorrow [ music playing ] >> announcer: the following is paid for and furnished by hair club for men and women. this station is not responsible for claims made in the following program. when it comes to hair loss in women,he reasons why can be as varied as the women themselves, but there is one proven hair solution that has taken these women from this to this in as litt as six weeks. it's not a wig, and it's not a weave. it's their own hair, only better, thanks to the only nationwide company that specializes in female hair loss, hair club for women. >> it's a life changer... forever. >> eternally grateful to hair club. >> be bald for the rest of my life or, you know, go to hair club and get hair. it's like, "o.k., probably i should go to hair club." >> and it has been the most freeing experience that i've ever had, really. >> for women, hair loss is an emotional experience and can be

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