Positive. Positive things about the market that are at odds with what you heard and saw on your screen. Dow plunging 163 points, s p sinking, nasdaq losing. 80 . Im going against the grain at a session that once saw the market skyrocket only to plummet guns again. Let me give you the biggest caveat at all nothing im about to say will mean anything unless you have a month long time horizon which is short in the real world but sadly not in the stock world. To explain this i have to go back in time to the days when i ran a cup hundred billion dollars as a hedge fund manager. Let me walk you through what would happen each morning when we reviewed our passions with karen crimer w er wcramer who rg desk with an iron fist. These meetings were ugly, hideous, they were pointed. And they were dead right. We would start the meeting with a query. She would ask whats your world view . Whats your intermediate term view . Translation wharks do you think will happen in the world and how will it impact stocks in the intermediate term which to her meant over the next month or two. I would expend on my world view and its time frame. Wed methodically review the investment ins our portfolio taking them right down. She would say the name, i would talk about where it fit in. Say investments because karen always had trades on the sheets, positive analysts they had, a product sieg l launch that might be well received, think apple and all of its fabulousness. These tradings position were not responsive to my intermediate world view so sometimes they would be add ots with our investments. We tried not to go too far against the grain when we made those kinds of trades. Were not talking and traiting, ive said repeatedly if you need to trade be hands on. Treat it like a fulltime job. We dont want to be your trading guide, we want to be an investment companion. From the perspective of an investor, what would my world views say if i were in that Office Getting grilled . First, we here in a vicious acrosstheboard commodity meltdown. Not a selloff. Copper, aluminum, iron ore, thats a positive. Its not a negative. Remember were back at my Old Hedge Fund doing intermediate term world view. If our nation were a producer of these commodities and companies largely based on that like, say, brazil, wed be in as huge trouble as brazil is. Were not brazil. Maybe 70 of our economy is service oriented, almost entirely helped by cheaper commodities. Most of our manufacturers buy commodities not sell them. About 10 of our economy does produce these products and about 15 of the stocks in the market are perceived as winners from Higher Commodity Prices including all of the cascading oil stocks. They would be winners if it were going to other way. Not now. Ive been up front saying i no longer believe oil can sustain these levels because saudi arabia is flooding the world, uneconomically and irrationally, at least to many of us, with oil to break our countrys attempts at Energy Independence and frustrate the iranian oil industry. Remember, the saudis regard our flirtation with iran as sleeping with the enemy so its not Just Economics driving the decision to put the Oil Companies out of the business. Judging by the action where oil plummeted down to 40 to a level unsupported given that crazed saudi pumping. We have to regard this entire move as a positive for the vast majority of our companies. Ill repeat that. Its positive. Totally out of sync with what youre hearing. In our meetings, karen would say youll lose money with any and all Oil Companies with that view. I would argue we should maintain a couple of the cheaper ones against her wish. But when wed review the portfolio again at launch and we reviewed it three times a day those oil stocks would be gone from the sheets because they differed with the world view. They tended to get sold by her when i went outside and bought her a soft pretzel or i ran an errand for her because she was too busy trading. Often french fries. I would learn of these sales when we did our next review. There would be no argument because she would say, hey, all right, go ahead, why dont you buy them back if you want them so much. You never did because you never wanted them in the first place. Second i would say my world do includes the notion to go in our september meeting. Housing and employment are strong. At this point, total disdain, people. Total disdain. She would say no kidding al show she would most likely insert a word there between no and kidding. And youre a genius. Thats whats happening on your screen. Cant you snell thats the selloff were having. People smarter than you who run more money than you are being hurt by the fed when the fed tightens so when it happens they will be prepared. Dont you have eyes . Dont you see that . Dont you use them . Off brain, put it to use. I would be somewhat defensive. I would respond we getter get out, well be hurt by a rate hike. Then i would hear her breathe fire saying well, given the destruction weve already seen in the market and how low our Interest Rates are already, maybe, maybe you should be thinking about whats being s d solded on and what we can buy, what can rally if the fed doesnt tighten. In other words, a win win. So many stocks are down and its a win if they dont tighten because most people arent prepared for that to happen. They would have to come back and start buying stocks. Heres the problem its probably not going to be a win tomorrow or the next day or a week, maybe two weeks. That was okay with her. She was thinking bigger than that. She was a displain taker so he could be a large money maker. Those people dont exist. Extinct. Next piece of the world view. China is falling apart because their government is trying to prop up stocks that deserve to be much lower. That cant go on, that causes a Big Worldwide slowdown in everything the chinese boy. Then she would say thats the commodity decline thing you just talked and if the chinese economy crashes ill take the one further drown. Lets find some of those stocks, maybe theres some buys. Thats when i realized what she was trying to do. She was trying to get me to think counterintuitively about what i saw on my screen. Just reading your screen doesnt tell you anything. Instead of being snuck a house of pain i needed to imagine what can go higher because of the world view i just traced out. So i would have to conclude that we should be buyers of stocks that are being thrown away, the stocks that do well. Not all, stocks do well in deflationary environments, foods, drug, biotechs, all right, general millions, bristol meyer, google, netflix, and the Fastest Growing large capitalization stock there is, facebook. Id say we need to buy stocks with high yields because there will be terrific bond market equivalents which ever way the fed goes, thats kimberly clark, clorox, more on the bond market equivalent thesis later. Id also say we need to buy the stocks in companies that benefit from declining Commodity Prices right in front of our nose either because theyre guion tick users or because customers will have more disposable income along with companies that benefit with the lower Interest Rate environment that goes along with my deflationary world view. Im talking about the Home Builders and homerelated retailers. The restaurants, the airline and the consumer package Good Companies that use a lot of these commodities that are in mi meltdown mode. The cost of whats going into a house, home depot, southwest air, i mean, less exposure to the strong dollar but it uses a lot of foal. How about lowes . Target that gave you a fabulous number but conservative guidance and knocked its own stock down. They knocked it down, not business. Its a buy. Why dont we throw in pepsico. Big commodity win there. Then the meet iing would be ove. Then we had no deviations unless something major changed. Heres the bottom line. The meetings at my Old Hedge Fund were about not what was happening now, worthless, everybody has that. How can you make money with that . It would be what would happen in the near future. The near future. Not moment to moment. Theyd produce different results from what you see on your screen. How do we know it worked . I dont know the method. We compounded 24 after all fees and with patience and pain taking, i think it would work now, too. Peter in new york, peter . Caller big fan, mr. Cramer. In any case, i was calling about kmi, a lot of people are saying 40 return rating, 1. 46 on a buy. 2 per share dividend. Whats your take now that the Obama Administration said that they want to cut and go into what is basically with loe missions and thats a new repositioning platform. What do yothink . I know a lot of people feel like these have become cold. Thats the word, fossil fuels are cold. We are snuck a fossil fuel country. We had that fabulous Company First solar on last night, they wont take over energy. Well need pipe, we need equipment, we need to get nat gas here, oil here, methane there, i mean, theres a system. Theyre part of it but its part of the oil complex. The oil complex isnt thoughtful, it doesnt say lets spare that one. So when Kinder Morgan comes down, buy it not sell it. But you wont make money now. We dont know when it will turn. Youll probably lose money tomorrow. But maybe next month or next year it will be up. Ron in indiana, ron . Caller yes, jim, this is ron in indiana. I was going to ask you. The chinese economy hurting and the devaluation of their currency. Is that a buying point for stock . Would it be near the 52 week low or should we wait and see what happens longer . I want to contrast Sandisk Scott works systems. Sandisk doesnt deserve to be owned, but scott works, doing fabulously and nobody wants to own it. Sometimes the trick is to go against the grain. Dont think about whats happening on your screen now but what would happen if it continues, if you do that youll get different results than what we saw in the screen at the end of the day. Theres no gun to your head, theres know total at the end of the day for you. Mad money tonight, my exclusive with the company that changes the way we vacay, home away has listings on every competitor of the globe. Our competitors like airbnb taking away stock price. I have three babies being thrown out with the bath water. Ill reveal them just ahead. Plus everyone is worried but ill find out when we go off the charts so stick with cramer. Its a golden opportunity to discover the exhilaration of efficiency. With six models to choose from, theres a lexus hybrid for every driver. Come in to the lexus golden opportunity sales event, where youll find some of the best offers of the year on our entire hybrid lineup. Now through september 8th. This is the pursuit of perfection. At a time when the world seems flooded with companies trying to help you find the Perfect Place to stay, what do we do with a veteran vacation place like home away . The webbased company is still the Worlds Largest marketplace for Vacation Rentals. Ive been a big fan of their web site for years but the stock has been snuck a rut for more than a year and cant seem to rally without getting back its gains. Maybe thats about to change because earlier this month the Company Reported a strong quarter, sending its stocks soaring 9 higher the next day. Home aways earnings were just in line, the companys revenues came in higher than expected, thats what i like to see about growth companies. 13. 9 increase in paid listings, 53 increase in pay per booking listings where the advertiser plays nothing but gives the rental company a cut. Home aways Vacation Rental properties will now be listed on kayak. So can they see their stock put up a sustained rally. Lets talk with the cofounder, chairman and ceo and hear more about what his company is headed. Mr. Sharples, welcome to mad money. Nice to be here, thank you. Tell me where we are in the consciousness of americans when theyre trying to think about vacation and where to stay versus where we were five years ago. Well, i mean, i think Vacation Rentals have risen substantially in the consciousness of americans and home away has led a lot of that. I mean, families are looking for great values, there are millions of housing all over the United States available for rent but still, you know, what the data says is that when a family goes to go on vacation maybe about 40 of them today consider a Vacation Rental. Thats up probably from 20 , 25 five to six years ago. So its moving but theres still a tremendous opportunity for growth in the business. I like a lot of what youre doing and im going to most recently and im going to label it concierge. You get the you get a tie in with uber, you get a tie in with a potential care. Com baby sitter which my daughter is part of that network. And what im hearing is that youre making it so that it is just like checking into a hotel if you use all our services on our mobile app. Well, were working hard to do that. When you check into a hotel, you do typically have a concierge so you can run down stairs and get that information but we live in a mobile world now and one of the things weve been working very hard on at home away is a mobile app that you download before you go stay in the property and houses are complicated, they have tvs and stereos that people have to learn to use, there are door lock codes, there are Swimming Pool things to turn on and off and so we have a new app that does all that and also provides all these Great Services like Grocery Shopping through intercard or you want to grab a car you can do that through uber or getting a babysitter or chef are all things people want to do and so in this digital age we can tie all those together and weve been doing it and customers are responding to that in very positive ways. I love the fact that the free cash flow, which i know you tell me is the metric that i should be looking at, is really exploding but am i to be concerned that the direct Marketing Budget is up so much and can you prove the return on investment here . Yeah. I think that was a conscious decision. You may remember last year we announced that we were going to increase marketing 50 , 60 and we were going to do it this year without sinking our margins and we did that by leveraging other parts of our business. As we grow as a company, we dont have to grow gna and product and other areas of our company so we move that into marketing because there is a big opportunity to create a wareness among consumers. So i think coming out of this quarter we proved that we could spend more on marketing, we spent almost 60 more than last year but still delivered a great quarter in terms of that. We talked about unicorns on cnbc and you got asked a direct question about airbnb and you said they certainly had a busy quarter, launched a new campaign which they like quite a bit but at the same time you have a new campaign and to some degree its saying look out, were not airbnb. Well, thats exactly right. If you look at our campaign its all about families going to vacation destinations, thats what we do. If you look at their campaign, its about a single traveller going to a city, thats what they do. And i think that theres a lot of misinformation out in the marketplace where people think were the same company when, in fact, airbnb maybe has about 10 of our property. So about 90 of everything in our millionplus home network is unique to home away and actually quite different and so the marketing has been a good way to make people aware of that. Well, do you think one day there will be kind of a comeuppance with this Venture Capital world. Zulily became public, went up big and sold for less than it became public and i think probably some people were saying well, wait a second, what is the private market value for these . Do you think the private market value of some of these company wes see is just kind of a im not calling it fictional but lets just say inflated. Oh, i think its massively inflated for some of these companies and i actually do believe we here in a private market bubble, especially for these would be unicorns. I think theres a handful of companies that investors are just scrambling to put money into and the prices you see have a lot more to do with competition to get capital into the big deal of or the hot deal than it does any sensible evaluation against cash flow or earnings potential so, yeah, i think theres a bubble there and i think well see that burst at some point. I dont know when. One thing i would tell you that i feel like the recognition of your company dramatically i get it anecdotally. I talk to people all the time who are now using you, especially if they want to do two and three families instead of one family because the cost of a hotel is prohibitive. Do you find the Group Gathering is a terrific way youre seeing a surge in business from . Were seeing a big change in that. I started the company about 11 years ago. Were seeing the numbers of people who travel together going up and up. We live in the world of a modern family where theres a lot of intergenerational travel, a lot of multiple families getting together. Not just because it saves money but because its fun. My kids love to travel with other kids. Home away lets you be do that, its not getting a bank of hotel rooms somewhere. If you look at our advertising its very much geared words that and trying to encourage that travel. I thought thats why i wanted to bring it up. This was the breakout quarter for, you brian sharp ls, cofounder, chairman and ceo of home away. Congratulations, sir, looking up for you guys. Thank you, jim. The private market valuat n valuations are insane, Public Market valuations are too cheap like home away. After the break ill try to make you more money. Coming up, longterm outperformers getting slammed on the day. Is it the fed . Investors making room for something better. Cramers getting to the bottom of whats fuelling todays selloff to help you come out on top. Next. At ally bank no branches equals great rates. Its a fact. Kind of like shopping hungry equals overshopping. Aa chance to try somethinglook. Different. This summer, challenge your preconceptions and experience a cadillac for yourself. Take advantage of our summer offers. Get this low mileage lease on select ats models, in stock the longest, for around 269 per month. Is as easy as it gets. Wouldnt it be great if hiring plumbers, carpenters and even piano tuners. Were just as simple . Thanks to angies list, now it is. Start shopping online. From a list of top rated providers. Visit angieslist. Com today. When i see the mindless willynilly selling day after day in stocks like dow company or General Electric, solid companies with good stories, im emphasized repeatedly, i wonder to myself, what do people really fear . What makes them keep dumping them no matter what . Declines like weve seen in restocks have become endemic. We do this show every night i try to figure out what s the mindset of the seller. Is dow chemical trying to dodge three or four points of pain that might be caused by declining earnings estimate . If youre selling dow you dont care about getting a high Quality Company with a 3. 8 yeld headed to 4 if the stock drops a couple points in the world where the tenyear treasury drops to 2 . Maybe the sellers noticed Something Else so come peeling they had to flee down to raise the money to buy it. Or is it just so toxic to own a stock that doesnt go out much and gets punched in the face on bad days that they cant take the pain . The house of pain. Thats usually a sign youre closer to a bottom than top. How about the commercial Printing Company rr donnelly . Whats dangerous about owning shares in rr donnelly . It has gigantic cash flow, more than enough to pay for its 6. 6 yield and waiting for you paying to provide the breakup. Its a value recreating transaction. While you may think the printing side of the business is a loser, they only need to buy applied graphics to get a hammer lock on commercial printing jobs that still exist out there. How can someone want out arer donnelly that badly . I dont know, i cant get my head around it. How can the stock be considered so dangerous to people that they have to get rid of it at this very moment instead of waiting for the positives to unfold . And then theres General Electric. Heres a company with a 3. 6 yield with a totally solid dividend thats got some of the fastest organic growth of any industrial in the world thats important because the company is becoming more and more industrially oriented. Only 10 of the business will come from finance. Sure 6 of ges revenues are from a slowing china. Yes 13 of the company is devoted to the oil and gas biz. But that leaves 80 of the Company Growing micely. That could be dividend boosts. Ge is involved in a couple stalled acquisitions for sure but nothing that should impact the stock. It obviously cant get out of its own way. I called it this morning a box 259. I use thee three stocks as examples. All Good Companies, all good yields all doing fairly well that people cannot tolerate owning for a nano second. Its as if the whole cohort of decent stocks with good yields and economic risk has to be banished from portfolios wherever they might be found. Its almost as if if you see them you have to shoot them and thats what makes the market so unforgiving. It makes us feel like somebody else must be lurking around the corner. Given the characteristics i just outlined most stocks arent worth selling, otherwise why bother . Sure we can say look, its just the fed, theyll raise rates, the market goes down, well get right back in. Or we can argue all the earnings rejections and dont trust the low price of the movement because the estimates are too high. But the thats the case, why the heck should at no time fed raise rates . My bottom line is i bet people believe both. Think they things arent Getting Better, theyre getting worse and the fed foolishly wants to raise rates repeatedly and thats the reason why the stocks are for sale. And the fed hasnt stopped you from thinking that. Its the best explanation i can offer. Neither positive nor negative but at least its an explanation that can make sense of things, something no one else seems to be offering. Lets go to paul in texas, please. Paul . Caller booyah, jim booyah caller ive got a question in reference to the talk about the fed raising rates and i know youve done segments on how it helps our banks. Yes. Caller my question does it affect foreign banks around the world . Specifically ive been looking attica aid innian bank, the royal bank of canada and Canadian Imperial Bank of commerce and theyre paying 4 and 5 yield. Would they get hurt when our fed raises rates or would this help them . Yes, yes, they will. Our dollar will shoot through the roof versus the Canadian Dollar and your stocks will go down. Now, remember the fed isnt about the stocks going higher or going lower, its not. Theyre not focused on that. But i have to focus on it and you dont watch to touch it. Its too bad. Theyre a good company. Dow chemical, rr donnelly and General Electric are three examples of whats endemic in the market mindless selling. Is there explanation . All i got that the fed wants to raise rates repeatedly and the things maybe theyre Getting Better but maybe thats why theyre for sale . I dont know. Much more ahead, including a deeper dive into the rate hike question. The fed says were approaching conditions for an increase but could rates be going lower in the meantime . You dont want miss that. And whats going on with therapeutics. A triple ipo but a roller coaster ever since. Is it time to buy . Every the ceo. Plus rapid fire calls, lightning round just ahead. Stick with cramer. On a truly hideous day for the market, its worth remembering that while the rest of the world seems to be in disarray, theres positives in the u. S. , if youre willing to do the work. We like it when Interest Rates go lower, it makes it cheaper for you to get a mortgage and gives you a boost to fixed income dividend stocks. The idea that rates could be lower on a day like today, perhaps a lot lower, something to hang your hat on. Especially at a time when people believe the Federal Reserve needs to tighten in the future despite the fact that the Global Economy is in turmoil and a rate hike would do damage to our stock market. Thats why tonight were going off the charts with bruce cannon as well as my new colleague at street. Com. Right now they say the charts are telling a story and it suggests Interest Rates are going lower over the next two to three months and its a beautiful arc he traces with charts. Will its look at this long term chart of the yield of tenyear u. S. Treasuries. The key benchmark for longer term Interest Rates over the last 50 years. Kamric says the rates are going down. Volckers plan worked and ever since then the yield has been trending lower. And kamic said this is still in effect despite the improving job market. Its still there. Next piece of the puzzle, take a gander at this chart which shows the yield from moodys aaa bond index. Thats another important benchmark of Interest Rates that acts as an index for the highest quality bonds out there. Kamic likes this chart because unlike with treasurys the moodys aaa bond index lets us look back to before the great depression. With a chart that shows you the action in high quality bonds over the last 09 years. In particular he thinks its important to look at what happened in the 1940s and 50s. He notes while the aaa bonds yield bottomed in the mid40s near the end of world war ii, it took many years for longer term Interest Rates to head higher. The yield on moodys aaa bond index didnt go permanently above 3 until the mid1950s. Thats a full decade after. The point kamic wants to make is that an actual bottom could take a year to play out and think this is cycle isnt much different. Yes he believes longterm Interest Rates will rise eventually but that could take a long time. Big chunk of time. If were going to talk about Interest Rates, we need to talk about inflation because rates go higher when inflation is rage bug they do nothing or go lower when we have no inflation or deflation. Thats why its important to check out this point of crude oil futures going back to the late 1980s. Today the price of oil dropped to 6. 5 year low and broke down to the 40year level and he believes the price can go lower. He doesnt see a bottom in this picture and thinks oil futures could sink down to the 30 to 32 range where oil bottomed during the great recession. Why does this matter . Because oil prices are pretty good short hand for inflation is and thats a powerful sign of deflation. When we get deflation it means bond prices are head it higher and when the price of bonds goes higher that means yields go down. Thats how it works, meaning lower Interest Rates ahead. Speaking of inflation, take a ganlder at this important one. This is the chart of the core commodities crb index which is a pretty good proxy for inflation. It measures a wide basket of commodities. He points out that the index has been declining for five years and like oil no bottom in sight. In fact, no matter what Commodity Index you prefer, theyre signaling prices are going lower. Thats another sign of deflation. Another reason kamic sees Interest Rates going lower. Now check out this chart of the tlt, the longterm treasury etf. When the tlt goes higher, that means treasury prices are climbing and yields are going lower. As you can see, not only has the tlt been roaring over the past month, but the rally has been accelerating with the 50 day moving average, the pink, and the 20day moving average now on the rise. He thinks tlt will keep climbing which translates into lower long term Interest Rates. For anyone thinking of taking about a mortgage, this is a nirvana chart. How strong could this bond rally be . Look at this next chart of the tlt. He points out the longterm treasury etf has broken its down trend and established a new up trend. He thinks it could rally back up to 130, 132 area and the stocks keep getting slammed here and abroad he wouldnt be surprised to see the tlt go higher. Thats known as whats a part of a flight to safety raid. I think longterm treasury yields will go much low sore lets put it together and we have a serious case of deflation coupled with charts to suggest bond prices from going higher and bond yields going substantially lower in the near future which is why kamic believes despite all of the talk of a fed tightening, Interest Rates are headed down over the next three months because we could be in a deflationary spiral. Thats bad news for the banks, they need higher rates but good news for minute who wants to borrow money to buy a house, not to mention the high yielding bond market and alternative stocks that will become sexy in this scenario. Heres the bottom line the charts as interpreted by bruce kamic indicates its going lower for next few months. Thats important because it gives the market at least one bullish prop on a hideous down day like today. Mad money is back after the break. More data means more freedom to do. Whatever. Thats why at t is giving you 50 more data. Thats 15 gigs of data for the price of 10. Because the more data you have, the better. And right now at at t get 300 credit for every line you switch when you trade in a smartphone and buy any smartphone on at t next. It is time time for the lightning round. Are you ready . Time for the lightning round . Lets start with lenny in new york. Lenny . Caller lenny oceanside, weight watchers, wtw. I think theyve been outmoded by connected fitness which is why i reman a fan of underarmor. We here in a tough market. Lets go to mary in california. Caller whats your take on max media mxl. Max linea its up a lot. Go right into sky rockets. Ted in california. Ted . Caller silicon valley, buy, sell or hold, infm. Very good digital equipment provider but cisco is down a lot before it reported that upside quarter, how about a yield and a stable base . Jusuf in wisconsin. Caller huge fan, one question. El pollo loco. Whats the matter we chip po poet lay. Just because it has a 700 handle . Step up to the big time. Tom in florida . Caller a big sunny booyah from the sunshine state. What. Whats going on. Caller i need to head up northeast get cool fall weather maybe go to bar san miguel. Thanks to you and your team im up 20 , buy more, sell hold . My Tractor Supply is constantly jammed, thats a niche retailer i like very much. Stick with tsco. Eric in texas, eric . Caller jim boorks yah in houston, texas. What are your thoughts on rnb . Interesting company. Dont see a catalyst for a sleep deprived problem. Let me say this has always been a Company People think will get a takeover bid and i am not a buyer of a companilike that. Nancy in massachusetts. Nancy . Caller hi, jim, thanks for taking my call. My dad and i, my father was a big fan of you and your show and ill calling about illumina. I see you that and raise you with tmo which weve had on the show. Illumina is a good company, too. But thermo fisher, i think they deliver. Thats what i want to be in. Jerry in tennessee. Jerry . Caller hey, jim. Watch your show, appreciate what you do. Thank you. Caller my stock im interested in, have some shares in is cyprus semiconduct zblor its just a total house of pain. We had t. J. Rogers on, they had a good quarter, its got a yield of 4. 5 . I dont know what to say other than this stock market a little bit irrational when it comes to semiconductor, witnessvti which had a blowout but then last night onanalog guys goes crazy. Tony in new jersey. Tony . Caller hey, jim, booyah from somerset county. I want to know about amethyst pharmaceuticals. Very unmet needs. We think it as a good stock. But remember its a spec but a good spec. That, ladies and gentlemen is the conclusion of the lightning round. The lightning round is sponsored by like a custom screener on your desktop, that updates to all your devices. And you can share it with one click. Wow. How do you find the time to do all this . Easy. We combined every birthday and holiday into one celebration. different holidays being shouted back to work, guys i love this times of year. For all the confidence you need. Td ameritrade. You got this. Everyone loves the picture i posted of you. At t reminds you it can wait. Back on june 26, a little developmental Stage Biotech Company called series therapeutics became public. The stock nearly tripled on its first day, traded up to 51. 40. A few days later i told you series, symbol mcrb, seemed like it would be volatile and sure enough the stock has been a roller coaster but its come down, trading to 40 as of today. So has series pulled back to a point where its safe to speculate on it . I have to say speculate because these are difficult stocks, its not bristolmyers. Heres a company focused on developing drugs to treat disease caused by dysbiosis which are when the bacteria in your body become imbalanced. This ecosystem is essential to your health but when it gets out of balanced you can become sick. Series is about developing combinations of microbes that make your bacterial cosystem healthy again. The companys lead drug is a singledose pill that prevents recurrent cvi, an infullammatio of the large intestine that kills 29,000 a year. The Current Treatment is antibiotics but that disrupts the healthy bacteria in your gut and likely youll get infected all over again. Thats where series comes in. This therapy could be a big deal but its only in phase two trial, we wont get the results until the middle of next year. They have other products in the pipelines on similar lines, very big but also early stage development. This is an intriguing story but a high risk one because there arent many catalysts in the company for years. The question is has the stock come down to a level where the risk rewards asflakt lets talk to roger pomerantz, the ceo. Welcome to mad money, dr. Pomeran pomerantz. Good seeing you, thanks for inviting me. We have a lot of home gamers watching, this is not something that will necessarily be approved tomorrow but the fda has blessed what youre doing in a positive way already. Thats exactly right, jim. Thanks for having me on. Most importantly, though, we here in series are developing a whole new class of drugs as you said, no one has done this before. Were using bacteria as therapy. Not molecule, not atoms but bacteria. Because of that, were interdict, were affecting your microbiome that is not only important for health but important for your life. Its like an organ that they forgot to teach me about in medical school. They didnt forget, its that new. You have to think of it that way. Its that important and when an organ gets out of balance it causes disease. C. Diff is the first drug type were going into and we are able to affect this in a meaningful way. The reason the fda gave us what is called Breakthrough Status designation is that this is a breakthrough drug for a huge medical need. C. Diff is the largest hospital acquired infection in the United States, 800,000 people each year in the u. S. Alone and 30,000 die. When we treated these patients with our drug, with our first microbiome drug, what we expect to be the first micro biome drug, we cured 97 of patients when standard of care cures 20 . I understand break through designation but were talking about u. S. Sales by 2022 of 280 million, whatever. Why doesnt the government just say you mknow what . This is so good well let them give it now . I think the important point when you develop a drug and as you know jim ive developed with great teams eight drugs so far with approvaled in infectious disease. You have to be careful that you dont have a safety signal. Im happy to say in the first group of patients we had no safety signals. Well get this drug as rapidly but as safely as possible to patients and the fda is our good partner now with this huge breakthrough designation. Okay. Another even bigger market, this is ser287, Ulcerative Colitis. Were talking about a gigantic market. Too big to talk about . Not at all. One of the things we saw is were able to develop a drug so rapidly compared to small molecules because of the safety and the way these are develop that we have this drug, ser287 for Ulcerative Colitis, inflammatory bowel disease, we expect it to be in patient this is year. This year . We thought of it last year, we saw Clinical Data which gives us ideas that this has a high probability of success. This is why series is so gets me so excited. This is what gets me out of bed in the morning because were not able to not only treat Infectious Diseases but chronic diseases not amenable to other therapies. Ive got this offtheshelf stuff, that is pro biotic thing, is there something i can take that would prevent Something LikeUlcerative Colitis . If there is, its going to come out of a company such as seres. We understand the microbiome as you said, very rightly, as an ecosystem. Like a forest or coral reef. One bacteria not just doesnt work, it cant work. Now let me show you, one of the things thats different is we dont just do cool science, we put a pill on the table, this is what makes series special as a bio pharma, that is the first we expect micro biome drug. That has one times toen to the eighth in spore form and thats how we cured 97 of the people with c. Diff infections. I want to emphasize again, this is not bristolmyers lily, you can put this away and it if works it will work huge. Dr. Roger pomerantz is the chairman president ceo of seres therapeut therapeutics. Huge unmet need on the table. Stick with cramer. That sound good . Not being on this phone call sounds good. Its not muted. Was that you jason . It was geoffrey it was jason. It couldve been brenda. At ally bank no branches equals great rates. Its a fact. Kind of like shopping hungry equals overshopping. We have time to talk about target. Cornell did a magnificent job, that was beautiful quarter, they took a lot of business from walmart in baby, in natural and organic but they threw cold water on the future. I am telling you they are underpromising. It was picture perfect and theyre doing everything right and you have backtoschool season and a good deal of cvs, dont lose heart, that target stock should have been up. They just tried to temper enthusiasm. Its deserving of your capital. Theres always a bull market somewhere. Im jim cramer. See you tomorrow. Male narrator tonight on the west texas investors club. Im here seeking a pickle partnership and 250,000. And you made how much last year . We didnt make profit last year. We need to see miss jenny as a leader. I think im gonna run the ranch for a day. Good luck. Oh, my word. And you think youre a pretty good salesperson . I think im pretty good, yeah. So what makes you think im gonna buy pipe from you . Well, im actually not that good of a salesperson. Jeremy is not looking like a Brand Ambassador as much as he is a desperate housewife. Narrator deep in the heart of texas, two men carved a fortune from a harsh and unforgiving land Butch Gilliam and rooster mcconaughey. Butch and i have actually done it all. Drilling oil wells. The cattle business. Im 5050 partners