Somehow we didnt get with some tit title wave of selling including me i thought it would be bad the sure of congress or trumps tweets, that often seem out of step with folks like washington, jefferson, lincoln today three of our more president ial president s. Here we are after one more whole hum day after we hit multi entry level highs. Nasdaq tacking on, its worth noting we did make it out of here unscaved. Why . Why was i so concerned because historically septembers the worst year for the market. Since 1928 the s p had climbed to 1. 14 since september this year up 1. 1 . Septembers different, its a month i feared every since i got in the business, thats because of the not because of the big picture in history but from my personal history when you run a Hedge Fund Like i do, discipline says you should sell everything, lock in your performance, lock in the term and only day trade for the rest of the year. I did it many times in my hedge fund that always breeds automatic selling. If your hedge fund is underperforming, this is the time of the year when investors tell you theyre pulling out when Money Managers know their investors are closing on them they shut up stock think about it, in september, did you hear any, not bad. Finally septembers frightening because we had two really terrible crashes in the month of october. The crash of 29 and 87 theyve been seared into our brains, tattooed of course october tends to be a plea sit month placid month. The month gets a real bad rap. We see september selling as people try to get out in front of october crash fears, that didnt happen this year. Still, i can recall many september where i camped out at the hedge fund office, trading in europe to try to get an edge. If you want to know why im so scared, i lived on a whole chapter in september of 98. I sold my sales for the last quarter of that book, its really strong. As we escape from september and turn the page to the last quarter of the year what do we see . Isnt that a great segway to go to the game plan turning my back to you for a second not bad. All right, will people who subscribe to also tease cable big in new york have their espn on sunday . Will they get their yankee game . Not that i care, i live in new york its a big deal a lot of met fans dont care but a lot of yankee fans do care on sunday, disney the owner of espn is set to block out this also tees network, which is one of my cable providers if the Cable Network cant come to an agreement with them. Normally i didnt care about those kind of things sports program, i believe is really important i think disney has a better hand lets see what kind of agreement they reach i bet people buzz about this all day monday i like the stopped of disney longterm. I think they will overcome the problem of cut cutting and grow. I dont need to pound the table here right now, however i think this is a terrific moment to gauge the value of disneys program, well see whether people can live without. I could not live without chefter for my fantasy league. Im just going on record, okay tuesday morning, lenore reports and the Home Buildings have been singing a great Unsung Heroes of 2017 florida base enterprise so its been hampered by the storms. I think it will tell a compelling story speaking of compelling stories, analysts are now tripping over themselves to praise kv homes of a surprise of soaring numbers. Why do i mention this, because i would have really rub some of these analyst that follow it the same way i got a ton of push back in ink by analyst saying i didnt know what i was talking about when it came to the home builders. Now this 14 stock has gotten to 24 and i have to ask, do the analyst know anything about Home Building sure, i still like the stock but others i like too, including lenore we also hear from paychecks and last time the payroll process reported stock got shefled a slew of analyst dont go over. I came out and said there were a bunch of bozos and the stock has buy. Beware the negativist are still lurking. If youre done on paycheck let paycheck report. Let the analysts come out and dunk on it then you buy. Pepsico reports on monday. I think pepsico is the best of the best and the ceo is doing a remarkable job just be ware doing is a lot more worse about best home in a fabulous neighborhood. Very few stocks in the industry can withstand a gravitational pull of the negative supermarket. One company i just adore, costco and you mean china after the close. Constellation brands own the best ones too. Rob sands is one of the best ceos in this country, a guy whose delivered, delivered and also delivered some people dont seem to realize the analyst, i say buy some before and after just in case they do their usual number on the company everyones trying to upgrade and down grade the stock the companys got an understandable position. Hey listen, just asked me. I sell more pacific koe than anything else, you know maybe if my address were blocked. We keep hearing costco hurt badly by the amazon food coalition, hasnt happened yet still its kind of cloud over because of amazon so id be sceptical in going over the corner last two reports have been great and still got hit. Chinas been a huge winner up more than 50 and stays a huge winner now that its been spun off by yum brands yum china has been finally we got the payroll report and ill tell you no ones going to be able to figure this one out it will be impossible because of the hurricanes i believe youll get a positive spin on the report and that reinforces the idea of the report the week after next this report is going to be strong because of everyones going to be buzzing about a december rate hikes. Im sure well hear plenty of talk next week about october crashes. All i can tell you is that we had plenty of talk at the end of august about how difficult september would be and it didnt amount to a hill of beat you Pay Attention to fundamentals not the calendar and october could turn out to be another month like september, where you can buy stocks when they come down because of unjustified worries given the strength of our companies, the United States and the global economy. I want to start the questions by going to michael in florida. Michael. Caller cramer what was going on not much. Tom price is out at hhs because of that jet thing. Whats going on with you caller i need your feedback on sin cronnized texted. I really want to get your suggestions for the longterm. I didnt like what happened that last quarter. Its impossible to understand whats really going on and i am going to have to saying sna big time on that one its way too hot, do not go. Do not touch do not listen, there one way be worse than shell. Go to daniel in new york daniel caller hey jim how are you i am good how about you caller i couldnt be better. I have a question a company haynes celestial now that the company has gotten together with their accounting what do you think east gois goo on i have to tell you while they were under that cloud the earnings tax depreciation did go down i believe and i know that erwin simon the ceo has made a good case, there are questions just whats going to happen with amazon foods if you own it you own it because you think longterm is beginning to be good but shortterm i think its going to be choppy. Too many people expected to take out and there may not be one as october begins im sure therell be plenty of talk about crashes but dont Pay Attention to the calendar, Pay Attention to the funding, the fundamentals on mad money tonight, it may feel like were living in the matrix with Artificial Intelligence then in a crowd contents streaming sector, could one company be in a position to bank on a cord cutting trend. And hoping to help brick and mirror for withstand the wreeps of amazon. Stick with cramer. For years, at t has been promising fast internet to small businesses. But for many businesses, its out of reach. Why promise something you cant deliver . Comcast business is different. We deliver superfast internet with speeds of 150 megabits per second across our entire network, to more companies, in more locations, than at t. We do business where you do business. Data many people talk about is similar to oil, oil is no value unless you process it and put it into Something Like an automobile same thing is true with data, you have to have highperformance computing to turn that data into value. Many people talk about this influx about the biggest in our life times the future belongs to Artificial Intelligence. Im not talking about sky net taking over the world, it could be a possibility, Artificial Intelligence will likely end up being far more important to business than people realize which is understandable. Ai confusing people. Thats really just the tip of the iceberg. If youre sitting down with the unbelievably animated fantastic andy dickerson, ceo of artificial materials, i get is sense when it comes to the power of Artificial Intelligence were thinking way too small and that oil analogy, i had to play again because its brilliant. We dont understand ai may hold the key to all the sales, we know theres a monster amount of data out there, collect grouping all the wants and needs of desires of human kind. With the right Software Companies can use data to figure out how to do things much more better for you than if they relied on human intuition. We all marvel at ted williams because he was the last ballplayer to boost his batting average above. 400 for the four seasons. Batting. 400 youre only up most of the time, 60 youre out. What would happen if we had artificial intelligent Baseball Players . Id argue theyd bat. 1,000. To translate that back into business terms, Artificial Intelligence is allowing businesses to bat. 1,000 right now only a few company haves really hard necessary ai in a way that can make them perfect hitters. Id argue that netflix, amazon and the privately held spotify may be the only ones using this technology to predict where the next pitch is coming and prepare for it in other words they already know what need to be done well before the pitch hits the plate you can make the case its game set match for these companies, i pick on netflix, amazon and spotify simply because its bills id pay without thinking about it in fact, it cant be game set match, the total markets of these companies are too big for the other players to roll over and play dead. The existing competitors have an incentive to fight back and the only way that can do that is buy and praising Artificial Intelligence themselves. To use another baseball analogy its liketer roids Artificial Intelligence is like steroids for your business to compete these companies needs more chips they need more equipment like the kind thats made by implied materials. Walmart needs toto bat a thousand against amazon. P g needs to bat a thousand against inlever, get the picture. On and on. That means it is different this time Artificial Intelligence isnt cyclical its a secular longterm transformation which makes owning anything in the big data space related to what ever in any way shape or form the place to be. Not for now or next quarter but for years to come. Much more mad money ahead. Can roku rock your portfolio online then is the mall thesis overblown . And with u. S. Stocks hitting highs this past weekend the calendar is about to flip to october. Is your portfolio prepared for whats next . Ill decide that so stick with cramer most American Homeowners would be shocked if they knew just how rich they were. The average American Home value has increased 40,000 over the last 5 years. But many dont know you can access that money without refinancing or selling your home. With a home equity loan, you can pull cash out of your house for anything you need home improvement, college tuition, even finally getting out of credit card debt. Come to lendingtree. Com to shop and compare home equity loans right now. Because at lendingtree, when banks compete, you win. Yesterday another unicorn was released into the wild, im talking about roku the company that pioneered the idea of streaming video right to your television which just came public at 14 a share. Stock opened at 15. 78 and rocket up to 23. 50. A 68 gain and today it kept climbing today its up 13 with 26 and change what a rocket. Judging by the strength of the po its something to like here roku has been growing and a number one stream of platform. Roku makes a little box that plug into your t. V. , lets you watch 4500 different streaming channels including netflix, amazon, and many many others if you do a little digging, serious reservations about the stock. Allow me to explain. Roku is two different segments theres the business where they sell streaming video players then theres the flat form where roku licenses its operating system to makers of smart t. V. S. 20 of smart t. V. S sold in the u. S. And canada had rokus technology in them even some cable and satellite Companies Use it roku sells a lot of advertising, 50 or 13 seconds spots or during the break and they also have sponsorships in the first half of year roku sales grew it was down 20 points in 2016. Meanwhile roku is exploring higher in the first part of the market it increases versus the year before rokus operating margin, the percentage of sales left over as profit before taxes is still in negative territory the first half of 2017 improved. However, all of rokus margins det deteriorated in the most recent quarter versus the previous one. Maybe its just a one off, given the underlying dynamics here and how hot the stocks been, i wouldnt be so sure. If you look at rokus user base the numbers are very encouraging t. In the most recent quarter the company saw an accelerating User Accounts climbing to more than 15 million those users keep watching a tremendous am of content the total number of hours stream rocketed up to 60 most important rokus average revenue per user was up 35 , down from the 39 growth in the previous quarter in short, rokus got a vast and varying gauge user base. One that encourages to nelson data accounts for half of t. V. Digital connecting streaming explains why the stock wen up yesterday and again today. Where do i come down on this one though the positive and negatives on the plus side everyones looking for one of those its a secular trend and we talk about it here all the time this is really the first pure play other than next flicks. Skpurs dont want to pay for cable bundle networks, many of which they dont want. When hthey come and pick and chose from services, especially now you can watch more and more sports over the weapon, this thing makes it happen. While roku have competitors, all these companies are focused on other aspect of the business im a big believer in apple but if youre buying it as a kor cutting play youre out of your mind second like i mentioned earlier, rokus me tricks theyre phenomenal whats there not to like here. Even though roku competitors arent focus like a laser and streaming they dont need to be. Amazon, apple are all great at multi tasking, you never want to be in their cross hairs. As streaming becomes more popular theres not much stopping other players from getting in the game. Its not just the box, rokuhav their platforms installed into smart t. V. S. Lots of t. V. Makers are doing the same thing of their own. If you got a playstation, ex box or Nintendo Switch you can stream video content through them isnt it a lot of competition . Especially since amazon and netflix unveiled streaming devices this month aside from the competition, the thing that worries me, pat the profitability or the lack. Despite posting some Revenue Growth for the past few years, roku still moves in money, it lost 22. 4 million in the first half but it hasnt improved the streaming applier business where they sell boxes and a Platform Business where they sell their operating systems into television. Think of this as Hardware Versus Software the platform side has been growing like wheat pretty soon it will make up a majority of business borough cues player business is declining. Player sales decreased by more than 15 from the First Quarter to second quarter. Basically half their business has already started to shrink, i dont like that. Whats worse, while rokus platform revenue growing like crazy its down from 120 to 130 groet clip at the same time last year the Platform Business keeps getting more and more profitable, on the player side the margins are evaporating. Rokus going to need to sell its players at a lost its going to make it difficult for a company to turn a profit any time soon so there are a lot of question marks about the company, but as for roku the stock, i dont want you to buy it up here. Why . Its a classic slimmer deal. Company only sold 15 of its sales. Six months down the line when theres a lock up or Insider Selling expiring or even before at some cases tend to get a massive sell off why dont you ask the people who owned communications, and got crushed by inspiring lock ups. Heres the bottom line, if you got the amazing roku ipo, good for you you made a fortune whether you dig deeper theres a lot of things that can happen with the investors if you got some of the deal congratulate yourself but first ring the register in half monday among and let the rest run lets go to say tree in virginia caller hi jim. Im calling about best aim, what do you see for this stock and for the next five years . A five year view on bs ti, five year view we love supply Chains Solutions but why not buy ally bob you foe thats my favorite chinese stock. It continues to be my chinese stock. Were going with ally bob here chris in california. Chris. Instead of chris lets go to john in virginia caller hey jim my brother and i love your show and im now the proud owner of get rich carefully yes, caller my question is on atnx its done well since its initial offering and is this a Company Worth owning we have not been able to study that one, its only a billion dollars company. Were going to come back, as is often the case with these Bio Tech Companies if it is an Early Stage Company i cannot say fine. I got work today if you got in on roku i say kudos. If you havent, i say a period take a pass. Upon further review in the mad money ipo zones this one can trip up investors. I got the exclusive on one of the malls landlords and theres a big yield here do you stock has what it takes to survive the unknown in the markets . Ill be the judge of that. And all your cause and rapid fire and the lightning round stick with cramer. baby crying slow jazz music fly me to the moon and let me play bell ring we keep hearing that brick and mortar malls is hurting here just a couple days okay the wall street journal posted a piece about a mall most are struggling in the face of ecommerce i want to talk about Pennsylvania Real EstateInvestment Trust pei. It owns 25 million square feet of real estate space in the midatlantic pei stock has been hammered here, down around 45 year to date it supports a 8 yield pei has been vocal about the idea theres a lot of market hysteria by the way, i can also say they pay higher rents lets check in with joseph kor dee know, heres the chairman and ceo of Pennsylvania Real Estate welcome to mad money. Good to see you. Honor to be here. Thank you i know yourproperties well, i know the vast majority of them and what i can say and what i want to ask you about, theres been a big change. You sold a lot of properties that i didnt know, maybe werent so good. The ones left or properties on which youre getting an upgrade when a tenant leaves yeah, we think the retail armageddon is way over done and certainly for pei. You were right on point. We were very early to the disposition game we sold off over 42 of our malls, all lower quality malls today we own malls and in great markets. To name two, philly and d. C. , where a retailer, if they wanted to ploy a strategy in the u. S. They got to be in philly and d. C. There are great examples of where the retail head winds, theyve been a bonus for us. Talk about that because what i see is some lower rent retailers who are also not so nice leaving, guys coming in at higher rents that are very exciting to people if you think about the Traditional Department store, if you will many of the Traditional Department stores are struggling were able to take that Department Store out and to date increase rents 8 times, bring in new exciting eight times over what you were getting over what we were getting bring in new exciting retailers thats going to bring more traffic, consumers and sales to the property and enhance the success of the property. I was in a mall in pennsylvania about two weeks ago where we took back a Department Store and we added a dicks sporting goods, home and goods, weve seen twice, doubling amount of traffic coming in through that entrance the retailers in the mall are performing better. Dicks as happy as his home goods so its all around the win win. Weve been talking to dave and busters, weve been encouraging to go in malls and take advantage of these spaces youve had dealings with them . Yes, we love dave busters, we put them in a number of our properties as early as 2009. We add one in Springfield Town Center in our property in Fairfax County and were adding one that weve recently announced in harris berg we see the dining and entertainment component of retail being a definite direction where were heading. If we were having this conversation five years ago, you asked me what percentage we had in dining and entertainment it may have been two or 3 . Today its over 20 . I knew theres a grater Plymouth Meeting it was the first mall that i kia came in into a lot of those are doing well. Well, in Plymouth Meeting mall we have 45 of the space. In addition in addition to dave busters and over half a dozen restaurants weve added a whole foods there. So we got new relationship with amazon at this point so, thats been a real win for us but in terms of european retailers, we certainly think that they in terms of fashion are a direction ahead. We have 18 h ms in our portfolio. We just yesterday opened up zara, a fashion retailer that the millennials are very focused on we opened it up in cherry hill mall, 26,000 square feet big store. So, we think clearly fast fashion, off price, discount, dining, entertainment directions that we need to head we had the ceo of lulu lemon on this week, that was saying the lines between online and off line are blurring but he also wants a community feel at his stores do you have Stores Coming in that are less alien then say the hospital lightings that we dont like that are trying to get that Community Feeling and often do business on and off line lulu lemon do a great job with retailing, with yoga classes in their stores, there are a number of retailers doing that one of the things were focused on is bringing new comes retailer markets to our companies. We have our first lulu lemon, we have atuesday me, we have a number of retailers telling out of the normal role and thinking about ex per yeshl retail. We have a tech room with technology and who would ever thought that would be in a mall so the whole model is changing, its evolving and youre evolving with it yeah. I use the word detoxing. Its a way to you know when youre done it helps you to lose weight, get fit. When youre done you feel better and you get stronger thats the way we think about the work were doing at our properties we sold off the bad side and mad moneys back after the break. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. It is time its time for the lightening round. And then the lightening round is over. Are you ready . So for the lightening round im going to start with patrick in hawaii. Caller booyah mr. Cramer, love your show whats up caller with all the increasing tension in this world whats your take on the defensive stock general dynamic . I say one of any favorite ratons my favorite though lets go to mary in arizona. Caller hi jim huh row . Good how are you. Caller good thank you. Last month you said to keep an eye on nas tech and im wondering what it its a rebuild from the hurricane. I think you can go further to them steve in new york. Caller hey jim wondering about ae eros. We have to do homework on that before i compliment math matt in new jersey caller hey jim, goo ya what do you think about rpm im concerned hes the best there is, you have to be better about the quarter thats coming next week so im going to subscribe to the ceos view david in texas caller cramer i dont want to be friends just help me make some money whats going on caller i know you like vehicle work what about about a small competitor and a lead in all things things. As i told members of the response. Com club. Now were going to jerry in texas. Caller booyah jim from houston. All right caller my question today is about also that, is it time to sell no no that yields 4 . This is the exact point id come in to buy the stock. Ian in utah. Caller big booyah to you jim. Whats going on caller my stock today is uttt its a red hot stock its good as good as that is id go with supply materials and that ladies and gentlemen the conclusion of the lightening round. Caller a booyah jim how i think its terrific. Your kids go to college and you start trading. Yeah, 5 years already. 5 years, hmm. You ever call your broker for help . Once, when volatility spiked. And . By the time they got me an answer, it was too late. Td ameritrades elite service team can handle your toughest questions right away with volatility, its all about your risk distribution. Good to know. Thanks, mike. We got your back kate. Does he do that all the time . Oh yeah, sometimes he pops out of the couch. Help from real traders. Only with td ameritrade. A made a comparison but lets have it all again. Artificial intelligence is changing the game. Compete in a ton of new ways unfortunately sports and investing not all of your stocks going to be home run hitters some may not be in the major leagues. Thats okay. When you form a team, one that is successful you select players with different skills and strengths, your lineup needs to be diverse, and the same for your investments the best way to make a winning portfolio no matter what competition you may be facing will be in verse five. Thats what we play in diversified. So, lets play ball. Starting with a tweet from michael, he writes jim cramer, hash tag alert Johnson Johnson. Three m, take two. Bris toll myers. 3m diversify doing great somebody put a sell on the list, forget about it. Lockheed market we want that stock i prefer raytheon. Bristol meyers and Johnson Johnson that stock diversified but its two drug companies. Were going to keep j j. And were going to get rid of bristol and what were going to put in there because i happen to be when looking at whose invest the quarter, boeing goes in bridget in my home state of new jersey bridget. Caller love your show. Bought your book thank you caller okay so do you want me to stock . Sure thatll be great caller apple, amazon, celgene, chevron and west. Thats funny i was just thinking, i picked a boeing on that last bone, im doing aerospace thats why its moving up okay, so we got were going to get rid of west. We have to because were going to keep sell general. Amazon we think Social Security going over a thousand. Apple we own it dont trade. New guy at chevron, i want him on the show. Get rid of west, what were going to put in, i want to get something good here. We got this, that. Lets adieu point, let lets go to jim in california. Caller yes go ahead. Caller id like to know if im diversified. Apple, td mer trade, bank of america, mike cron technology, microsoft. Horrere we go. Mike ron broke out but we cant can microsoft, i like Microsoft Bank of america and tb ameritrade, two financials, get rid of that. Add united health. Were going to put unitedhealth in because i dont see any healthcare here and were going to for micron, against dow dupont, the stock is down, it shouldnt be down it should be in a high. We repealed replaced and we were successful at it stick with cramer. Whuuuuuat . Rtgage offer from the bank today. You never just get one offer. Go to lendingtree. Com and shop multiple loan offers for free free . Yeah. Could save thousands. You should probably buy me dinner. No. Go to lendingtree. Com for a new home loan or refinance. Receive up to five free offers and choose the loan thats right for you. Our average customer could lower their monthly bills by over three hundred dollars. Go to lendingtree. Com right now. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. All last night and this morning i was bothering everyone about what dickerson said about artificial sblintelligence its a how long thing and not going away id like to say theres always a mark somewhere ill find it for you. Im jim cramer and ill see you monday welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. If they hear a great idea, theyll invest their own money or fight each other for a deal. This is shark tank. With a product she believes will help expecting moms feel beautiful. Hey. My name is deidrea haysel. My company is hot mama gowns, and im seeking 30,000