Nasdaq advancing 6 . But we didnt get what we need, which is another reason to buy stocks here. This morning and last night i went over about 300 different stocks, 300, with an eye to finding new names to introduce to the actionalerts. Com club every month i give a talk where try to offer club members at least one new compelling idea. And you know what . How many did i find out of the 300 . Four yeah, thats right only four stocks only four out of 300 passed my test why am i being so selective . Let me walk you through whats worth buying in this treacherous moment first, i dont need stocks that need a trade deal to go higher as the trade talks with china drag on, the list of casualties grows longer and longer. Earlier this week we spoke to the longtime ceo of Emerson Electric he knows more than all of us i think he might be willing to break up the business, literally split it in half i love breakups. They tend to be fabulous for shareholders but does that mean you can buy the stock of emerson huhuh, not so fast. Farr has been a visionary. How do you tell that he built a gigantic presence in china before everybody else, because the Chinese Market was the huge source of growth in the world. Unfortunately, he didnt predict, as did no ones else, the full extent of president trumps trade war. So now emerson has a about pro there is not much they can do other than hope it will blow over or the chinese economy wont appropriate rate the factories. Who wants that kind of risk . Not me sadly, this Great American companys stock has become too binary its a deal or no deal situation. And that makes the stock too difficult to own, even though as id love to tell you 3 yield, good Balance Sheet then there is cisco, the scso kind in august they reported a short fault. Even though china is only about 3 of their business, a little less, it played a very negative role in shortfall. Cisco got hammered again today Goldman Sachs bought it at a down even though its incredibly cheap, how do we know the numbers arent coming down you cant know nobody knows where this trade war might go next. Look, here is a good one two days ago nvidia, not my dog, but he ate a whole bag of gummies last night had to take him to the vet up all night whatever the stock plummeted seven points two days ago because our government decided to crack down on technologies that china might use for facial recognition to help perpetuate human rights abuses who knows if nvidias technology is even used there for that. It didnt matter nobody saw that coming no more than my wife did with the cbd gummies. So he could jump up on the bed he couldnt get up before. Think about what happened with apple. What would have occurred what would have occurred to this to this if they hadnt pulled this app that the hong kong protesters were using to track the locations of the police . Apples policy is first do no harm it was enabling protesters to target police. So it had to go. But you have to wonder, right . You have to wonder if china will punish apple for having the site up to begin with what if youre a retailer that lacks the clout of watch, my acronym for walmart, target, amazon, costco when i was flipping through the s p, a huge number of stocks were exposed to at least one or more of these flash points my next test, ask yourself if youre looking at a company thats going to be disrupted by competitors who are playing with free money [ buzzer ] or a superior technology [ buzzer ] the other day we spoke with rich allison. I dont know if you saw it he is a terrific ceo of dominoes and he talked how the Third Party Delivery services are willing to lose big money to partner with competitors dominoes makes the best food on the planet but they cant compete free they cant compete with the platforms willing to lose money on every order these same Venture Capital funded competitors are why grubhub is only a couple of points from its 52week low. Were seeing the same kind of disruption all over the place. You see the stock of fed ex . Oh my god. Digital and all price retailers have disrupted Department Stores mercks disrupted the oncology with keytruda. Natural gas, g. E. s price . Thats turbines. Roku has disrupted cable tv. Facebook and alphabet disrupted traditional publishers rent the runway the apparel business harrys and Dollar Shave Club disrupted razors by the way, dollar shave, it is so sharp it cut me last night. I had to put the tissue paper on you see it its like this i went. I think i slit my throat with this i think this. Its too sharp the cloud plays have obliterated on premise software. Right now it feels like there are fewer and fewer stocks that are immune to disruption third, some markets are too ugly to participate in at the moment. The Auto Industry is in awful shape and now gm is on strike. No paint, no glass, no seats, no aluminum, no nothing anything with auto exposure is likely to miss numbers thats deadly in this environment. Then there is boeing which is weighing down the whole Aerospace Industry there are so Many Companies that make parts for airplanes, i expect them to cut when they report fossil fuels, toxic. This also equities tends to plastics, which younger Hedge Fund Managers believe is the new coal the warren factor. Wall street is terrified by Elizabeth Warren im Elizabeth Warren and i approve of this message. Most Money Managers see her as a onewoman wrecking crew. Paw crew and the wrecking crew single pair . Thats the end of the managed care and big problems with the Drug Companies bank, she wants to break them up and ratchet up some say she want s fracking, thats a curse word. Big tech, talking about massive antitrust investigations and thats not even addressing wall streets biggest fear, higher Capital Gains tax if you listen to some portfolio manager, theyre acting like theyll lose their livelihoods if warren wins the election. I think theyre being petty and pretty alarmist. Warren is not trying to destroy capitalism its a new old style liberal she is going to have a hard time getting most of the stuff through congress my view Means Nothing here not when wall street regards her the Second Coming of lenin what do you think . Often recognized and considered as great, great nephew, or best maybe huey long or mary ray . Put it all together . Thats a lot of stocks off limits, isnt it there are still a few that can pass all four tests, but not enough because so Many Companies could potentially be in trouble, nothing will be protected from the waves of s p future sales like the one that happened last night before trump put out a positive tweet sure, you can buy a handful of stocks, but once the next wave of selling starts again, youre going to be hammered again what could change . We could get some kind of trade deal i think its possible the president might postpone the next round of tariffs including big purchase of american hogs. Chinas hogs has been devastated by the african swine flu theyre in desperate need of our pork but then there will be another deadline, another rinse and repeat through the water torture, bankers will keep more and more supply on the market with their hapless ipos thanks for nothing, ipo merchants, merchants of loss the bottom line, this is an unhealthy moment for our market. Our only saving grace, i dont know a soul who likes this market occasionally senate can be correct. If we dont get some sort of trade deal and all this bearish sentiment, who knows it might turn out to be right. Patrick from florida patrick . Caller oh, hi, this is patricks mom, and patrick has a question for you booyah. Sure booyah. Caller i am 9 years old. Ive been watching your show and i really like it i especially like your sound effects like sell, sell, sell buy, buy, buy. Sell, sell, sell buy, buy, buy i have been thinking of the Company Hasbro gaming. Do you think its a bear or a bull oh, im very bullish on hasbro 89 when we last had brian on it went to 118 he is trying to move all the china manufacturing away, but more important, patrick, i have to tell you, you make me feel great, and so does your mom because i know im relevant. Hey, by the way, we are six years older than patrick, and were closing in on what show . Our 3,000th show sentiment is so negative right now, we dont get some sort of trade deal, the sentiment might turn out to be correct on mad money tonight, im getting to the meat of hormels investor today with the ceo, finding out if its time to add an investment in the company then this popular retailer stock has taken a bath in this market over the announcement of a new ceo, the stock soaring today im browsing the aisles of well, a tease. Im not telling you yet. And my exclusive with a man who dressed america, including me, the legendary mickey drexler. So patrick, and everyone else, youre not going to want to miss and stay with cramer dont miss a second of mad money. Follow jimcramer on twitter have a question . Tweet cramer, madtweets send jim an email to madmoney cnbc. Com. Or give us a call 1800743cnbc miss something head to madmoney. Cnbc. Com. Man can i find an Investment Firm that has a truly longterm view . It begins by being privately owned. With more than 85 years of experience over multiple market cycles. With Portfolio Managers who are encouraged to do whats right over whats popular. Focused on helping me achieve my investors unique goals. Can i find an Investment Firm that gets long term the way i do . With capital group, i can. Talk to your advisor or consultant for investment risks and information. Talk to your advisor or consultant we believe in education built for all people. , [woman] snhu was the best experience of my life. [man] without snhu, i wouldnt be the leader i am today. [woman] i graduated high school 19 years ago. I still finished. [man] in the military, you feel that sense of accomplishment. Thats what snhu is. You will march from this arena and say to the world. I did it. [woman] you did it. I love you. [graduate] i love you too. This sold out in seven hours, the whole thing you cant get it 25 bucks, 25 bounce ebay, and ive got one and you know what . Its darn good and thats because it, what . Mmm, mmm thats some delicious Pumpkin Spice spam this makes sense to fall back on safe, consistent companies, is there anything more consistent than hormel foods, the maker of spam not to mention jennyo turkey, today hormel held a major investor meeting in new york city but even though they told a good story, the stock got hit anyway. I think thats wrong dont take that from me, though, or from my teriyaki spam that ive got earlier today, we checked in with jim snee, the chairman and ceo of this Great American company that is hormel foods take a look. Jim, your company is at a crossroads its the fast forward company, but its also the historical company. Its brands that i love like happy little plants, but its also this brand, and this brand is back, isnt it . Well, the brand never left, right . From where we sit, spam is just an iconic brand. It really is foundation of the company. But the growth is extraordinary. Five consecutive years of record growth. And how long did it take pumpkin spam spice to sell out seven hours when we announced we were going to sell it in august, since that time, weve had a billion, not a million, a billion media impressions, sold out in seven hours, and now the product is being resold on the internet, 25 bucks a can. Its incredible the response weve got. This wow ive got gold here. Absolutely. This is not the hormel that people thought this is the hormel obviously, youve always had one of the best dividend records, one of the great growth records but we dont think about your company as forward enough to be able to have a Pumpkin Spice or to have what i think may be the best of these burgers. Yeah. Well, for us, its really about this we call it a food journey so when you go back in our history, it was about iconic brands like spam, mary kitchen hash and then we involved into nonmeat proteins with skippy but then really getting into some purposedriven brands like applegate and justins and so this Big Initiative for success food forward we are a food company. Were incredibly proud to be a food company, and we know that theres going to be this constant evolution, and we need to be ahead of it, because the consumer is changing faster than they ever have now the applegate move, initially people thought you paid a lot i happen to know applegate from when it started. But applegate is still the purist in the market. Absolutely. Its the leading brand in the organic and natural space. What weve done with it, though, because of our distinct capabilities, weve taken it out of just retail weve moved into it the food service space. And so its now connecting with colleges and universities and connecting with an even younger consumer who is going to set it up for a successful future talk about colleges and universities and millennials the brand just is a brand that resonates. Even on your website, this is a company that i think is kind of my generation is new age, but its doing well. It is its doing well. It really was an extension of what we call the nut butter platform so we add skippy justins was a natural extension. And it gave us another great platform for innovation. Innovation is a lifeblood to our company. We did wit skippy, and weve done it with justins. I was surprised the ideation to market the fastest of the consumer packaged goods companies. Were really fast and great example, you mentioned it a while ago, happy little plants Everybody Knows what is happening with plantbased proteins that was a trend we saw coming right. We had actually partnered with another company, and then when the ipo market hit, that partner said you know what we want to try and go it alone so instead of buying, we had to build. And we put our team in motion, and we got it from ideation to market in eight to ten weeks absolutely incredible. Your company has done so much for shareholders, and yet here is beyond beyond meat is beyond belief when i think about it the valuation of happy little plants and really, the best of the organic protein base versus a company that really has you would say a loaded with chemicals burger how can the wall street, how can the people at home justify what hormels price is versus beyond . Yeah, its hard its all about the consumer. Right. And so there is no arguing that the consumer is more curious about plants than they ever have been right. And so when it comes to valuation of the company, all we can worry about is ourselves, and its about how do we grow our business organically, how do we innovate, and how do we continue to make disciplined acquisitions. Now there are two elements you cant control. One is price of avocado. Look, guacamole is a huge business for you and african swine flu. Talk about the cost inputs of those two. In our Third Quarter we had a runup in avocados that compressed margins, but thats a shortterm blip its about the consumer demand and the strength of the brand. So wholly guacamole is well positioned for the future. From african swine fever, thats going to be a pork supply disruption and again, its going to have an impact at some point in time markets havent run up but thats a short time thing. That shortterm margin compression, the longer term story is about the health of the brand, the health of the business well get through all the noise because weve got amazing brands can the chinese bid up the price of pigs to the point where its going to hurt you it will have an impact in terms of the shortterm. Theyre obviously large consumers of pork. And as that demand from china ramps up, it will have an impact on the supply. But the way we think about it is its shortterm, and weve been through this before. Right. We know how to navigate pricing. We know how to manage our supply, and so as we think about it over the longterm, were going to be just fine. Youve gotten out of just the center of the story, not that your center story has done poorly, again, amazing youre talking about deli counter as being a major growth area how did that stagnant area become a growth area again, its the consumer. So two years ago we made the acquisition of columbus craft meats. Its a west coast brand. Its one of the leading deli companies. And for us it became a catalyst. So we had all these fragments businesses focused on the deli this aloud us to bring them all together in one unified front because the consumer is shopping the perimeter of the store of the deli different than they ever have before so theyre going there for entertainment. Theyre going there for grab and go snacks. Theyre not going there for dinner the prepared foods section, its no longest just roasted chicken and mac cheese these are culinarythemed offerings in prepared foods. The bought of it for us is we have an incredible Food Service Business that can help retailers capitalize on that trend you and all the discussion about it, are a food company. Absolutely. Have you ever lost the desire to be a food company all through the years, everyone on the consumer packaged goods side seems to run from it. Why are you running to it . Because food has a way of connecting people like nothing else in our society. And its all about good quality food so we actually have termed ourselves a global branded food company. Not an ag company, global branded food company its all about the food, and its all about the brands, and we do want to become more global now it would it seems to me that youve got more runway to be global than almost all of the multibillion Food Companies i follow is this your chance to do it and we have been doing it it just hasnt accelerated as quickly as we like weve got a Good Business in china thats focused on the china market two years ago we made a small investment in brazil to learn about that market. The business is doing well, and were getting the learnings to have a platform approach to the business but there is going to be other opportunities to become even more global over time. Okay. Now in the few minutes that we have, your company is a company that identifies with something weve been identifying with on mad money, and its a bit of a new pivot for us its called impact per share your corporate and social response, social has always been at the forefront tell us some of the things that youre doing to make things better in the world. I mentioned it earlier. We call it our food journey. And there are really three pillars. Its making sure we take care of our people, because none of this happens without our people, and our partners incredibly important to our business making sure that we take care of the communities by having grea sustainability goals, but giving back to the communities where we live and work. And through this whole food plorjs crea platform, creating products that improve the lives of consumers it could be for a health benefit. It could be for a craving, a lot of Different Reasons but as you think about our portfolio, its broad, its deep, and its improving the lives of consumers so those three pillars on our food journey, thats where were making a difference. And finally, a dividend are people liking the continual dividend stream . People may not know how committed you and the 48 of the company thats owned by the Hormel Foundation which allows you to do a lot of experimentation is deeply committed to the dividend, even though youre trying to do new different things. Absolutely. You mentioned were a dividend aristocrat doubledigit increases for doubledigit years, and we are incredibly fortunate to have the Hormel Foundation. 48 , and their focus is three things to preserve the independence of the company, which gives us that longer term view to provide for the hormel heirs, and then to give back to the community where were based. So we are uncommon in that were based in a town of 23,000 people, a 9. 5 billion company in austin, minnesota and so having that foundation, we say its the greatest gift we ever got from the hormel family. And its something that obviously you mentioned plantbased. A company walked away from partnering with you and it didnt seem to matter . Who was that it doesnt matter who it was, but when they saw the ipo, the valuation that they thought they could get on their own, right. And so we wished them well, and then we put our resources to action and said okay, were no longer going to partner or buy, were going build this thing so weve got the first entry weve got customer acceptance, and now were expanding the line the other thing that were doing is we know that consumers experience these new trends in food service for the first time. And so our well developed Food Service Business, having happy little plants engaged there is going to be an Incredible Opportunity for us and food service plus to me the invention, the ingenuity is making it so the global trade turmoil doesnt impact you guy, not to the degree it does some others. Yes, absolutely i want to thank you so much for coming on and being faithful to mad money. Absolutely. I know the company has been, and we love dividends. We love growth well love honesty. We love sustainability that is all what you give us with hormel. I want to think jim snee who is president and ceo of hormel foods. Thank you so much. Always a pleasure thank you. Sometimes, the pressures of todays world can make it tough to take care of yourself. But natures bounty has innovative ways to help you maintain balance and help keep you active and wellrested. Because hey, tomorrows coming up fast. Natures bounty. Because youre better off healthy. Natures bounty. Announcer fidelity is redefining value with zero account fees for brokerage accounts. And zero minimums to open an account. At fidelity those zeros really add up. Maybe ill win saved by zero but in my mind im still 25. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. There is a price for everything, at least in the stock market sooner or later, beaten down stocks become investable again, as long as the Underlying Company isnt going out of business and the Balance Sheet is good. Just look at the incredible action today in bed, bath beyond for years this home goods chain was an absolute dog [ barking thanks to ferocious competition from amazon and better run brick and mortar rivals, especially target its hemorrhaged market share. The company seemed aimless, wasting billions of dollars on useless buybacks as management repeatedly failed to commit to a real turnaround strategy. They know nothing bed bath is the poster child for how feckless executives can drive a previously Good Business right into the ground. The stock peaked around 80 a few years ago. Yesterday it closed at 9 and change but here is a shocker, the company is still profitable. Its got more than 1500 stores and an okay Balance Sheet. Bed bath just needed direction, and thats what it got last night when the board poached none other than targets chief merchandising mark triton and named him the new ceo. What a get the stock surged more than 21 today. I think the move made perfect sense. Bed bath had been beaten down to the point where it was too cheap to ignore. It was like a coiled spring, especially giving the short position going into the session. So has this thing finally bottomed we need to be careful here people have lost fortunes, speculating on a bed, bath beyond turnaround. Now ive been warning you away from this stock for ages, but you know what . You know what . I think its time to go positive on this up with. Okay so you missed a couple of smackers today listen to me bed bath has been punished enough now that theyve got a competent ceo, better than that, a great ceo coming in, im thinking the stock has not just a little more but a lot more upside. What makes you say that . Back in april, a trio of activist hedge funds got involved here, legion partners, and encore advisers. Ive known onfor 30 years. He spoke in my government conference in the spring about the need to change things, and these guys had bold plans to turn things around and a strong track record but at the same time i told you bed bath was still too toxic to touch no matter what ousting the old cochildren chairman and now former ceo steve temares. I said no, no, no, the stock is a sell sure enough the stock spiked up to 19 and change and proceeded to lose more than half its value, even though there was some reason to expect a term bed bath reported a hiddious quarter in june and investigators worried they might get slammed again. By midaugust the stock had plunged to 7 and change but at the lowest levels it was selling for just five times earnings that is ridiculously cheap remember, this company is profitable its cheap unless youre convinced its going to be worse going forward. Even in the low doubledigits where it is today, its a very different story. Right now bed bath sells for 6. 4 times this years earnings thats an incredible bargain if you think the company will come even close to making the numbers. At these levels, you to start fretting about what can go wrong. Youve got to start imagining about what can go right. And its frankly not that hard to imagine, not anymore. In the last couple of weeks, bed bath has had two positive developments that have been completely overlooked. It makes me feel more confident about recommending in this special situation. You already knew, i told you about the new ceo they picked. Im going give you more on him in a minute. Before then, bed bath had already started to turn, okay. The stock didnt lie here. See, last wednesday the Company Reported a seemingly hideous quarter. It looked very ugly on the surface. However, when you drill down, i felt there were a number of positives. While bed baths revenue came in weaker than expected and the samestore sales were disastrous, shrinking by 6. 7 , which is just awful sell, sell, sell when the analysts only expected a 4. 5 decline, there was major silver lining. The Company Earned 34 cents a share, substantially better than the 27 cents wall street was looking for. Buy, buy, buy, buy, buy, buy guidance similar management cut their full year earnings forecast bad, but the numbers were still stanley better than what the analysts were modeling, good the bulls were hoping bed bath would new orleans their new ceo, though, and when that didnt happen, well, the stock got hammered peel said you know what . Nobody wants this job. Which brings us to last night. Bed bath desperately needed a permanent ceo that investors could trust. You know what . I cant imagine a better pick than mark tritton who takes over november 4th target is one of the few retailers that has been able to thrive in this environment but thats why i made it part of any acronym called watch, which is walmart, amazon, cost toe, and home depot you will know theyve rallied. Other than amazon, target has been bed baths worst enemy. But now they have one of targets best executives running the show he was a major player in rolling out the omni channel operation thats huge. He turned around the private label business, fabulous, and is responsible for keeping targets major suppliers this line, a major reason they havent been hurt by the tariffs. Once help takes over he needs to do the same thing for bed bath while cleaning up the capital structure. There is a reason why he was short listed from day one. Bed bath wants to make itself relevant again, and he is the guy to do it why am i so confident . We learned tritton wanted to be paid in stock rather than getting a big signing bonus. He is betting on himself i want to bet with him and look, tritton is not crazy he never would have taken this job if he believed that bed bath was a lost cause i think the fundamentals are better than most people seem to appreciate there were some genuine positives in the last quarter. On the conference call, bed bath pointed out that they saved hundreds of millions of dollars by improving the byzantine mostly american sourcing model thats why im not worrying about the tariffs. The company is already fixing the ridiculously inefficient supply chain and they wont have to raise prices to you if the tariffs one up next week theyre planning to sell off some of the Small Businesses that cluttered the joint management wouldnt put a specific number on it, but i bet it could be somewhere in the neighborhood of a billion dollar thats a big deal . Because bed bath is only a billion and a half company and they already have about a billion dollars in the Balance Sheet. Best of all, has improved versus the quarter they just reported the company only needs to stem the bleeding a little to make the numbers. Were talking down 4 , same store sales down other than six. Plus they took a 200 million for inventory and planning to move 350 million of stale inventory for the holidays that means the stores will be clean. That makes a big difference. Im expecting a major pickup in fullpriced sales. Even if the estimates need to be cut, even if they can only say make a buck 50 instead of the 2 people are looking for, the stock would still be absurdly cheap at eight times earnings. Bottom line, bed bath is back. They finally brought in a hyper competent ceo. And even after the stocks monster run, 21 today, i think it has a lot more upside in a major change for me and mad money. I would buy some of the stock here and then if you get a pullback, you know what . Turnarounds do take a little time, i would definitely buy more bbby who have thunk it . Stick with cramer. Make fitness routine with pure protein. High protein. Low sugar. Tastes great high protein. Low sugar. So good high protein. Low sugar. Mmmm, birthday cake pure protein. The best combination for every fitness routine. [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu hes a bit more brave. Oh. Look. What does the future of retail look like were about to find out. At a time when traditional mallbased stores are dropping like flies, weve encountered some spectacular growth stories that are trying to reinvent the industry alex mills, a private Company Founded seven years ago by alex drexler, the son of mickey drexler, the guy who turned gap into powerhouse. They make easy to wear essentials for men and women, stuff thats always in style, and likely to become part of your day to day uniform. Sort of like the old j crew but maybe better and better manufacturing, better price, no mass of physical stores holding them back that often throw away product with too much inventory. Inventory being the bane of existence. Lets check in with the man himself, founder of alex million. Get a better sense of the business and the industry. Mr. Drexler, welcome back to mad money. Great to see you, mickey. Thank you for having me. Okay, mickey, youre back in making clothes. Yep and i want to know why. Why its in my dna i cant help it. It keeps me it keeps my brain exercised. I love the creativity of clothes, you know, the business has always been in my blood for many my whole life, in fact my father sold buttons and piece goods, or bought buttons and piece goods. So im back. When you leave the big jobs, you get a little bored right. And i was a little bored until i started to do this. Well, alex mill to me offers truth in terms of what youre getting and value, which are two things that i think are not in the mall and not in the catalog and not in the ecommerce, things that are just thrown on to a website. Thats how it resonates to me. That what youre trying to get well, its really simple. I say its simple in our minds i looked at it my son had a mens only business became available, i worked with him for many years at our old company. When he became available, i put him together with alex, and i got involved, either im chief kibitzer, they call me chairman, but i thought that the world again, its just my personal opinion, could use what you described. You cant leave the store, the website kind of not looking good in a sense, and its always been something i felt strongly about style, taste, value and quality. Ive repeated those words for 40 years. Ive been running companies. Is the mall dying because it doesnt offer those . Is there something about the pricing structure when you go buy something at a Department Store thats just wrong . To me and everyone says its direct to consumer today i think the structureis when there are two profits, two markups instead of one, it already inflates the perceived value of goods. Okay. Because customers know. Number two, if you take your device and go online, i dont know if half the goods are available at a better price by just punching a few buttons. Number two, i think really importantly, the lack ofpassio for great product and creativity is also very important reason the malls are not doing as well is not enough excitement to fill them up. And frankly, all my friends are going get mad at this in the mall business, theyre not doing enough to make them creative, compelling places you want to hang out in, with the exception of some. The first time i met you, you said two things to me. You said the secret of success, the eye. You have to have an eye, and you cant have too much inventory. Ive never stopped thinking of those, because thats how i judge all retail in the end. You have an eye. Can algorithms have an eye can people can people get a list of what you like and have an eye from it no. First of all, i dont know what an algorithm is, and maybe thats my problem because i hear the word being mentioned constantly, and data, algorithms and all that show me a great company, and maybe im oldfashioned and show me great product and show me vision and leadership that gets the product, and ill show you a really great business, if they operate it well. Now i always had data. My data was my selling report. And as we used to say at the apple board meetings, you know, you got to see around corners. Right and i dont think im not sure what the definition of algorithms is. I should know. But its about an instinct, a feel, and whats out there i feel instinct and intuition is critical in any product business when you were on steve jobs apple port, did you talk much about retail and what did you learn from him about retail, and what did you teach him . I think with steve, i taught him, and then he became like the greatest student in the world. I think he we did the first store together we spent a lot of time initially, but he went on to build what is arguably the greatest retail empire in the world, and the stores to this day, and this was about 10, 15 years ago, are extraordinarily successful extraordinarily but you have one brick and mortar you want the lower price you can get without the rent in the double markup, right always im allergic to the double markup. Right. I realize when i started my career at bloomingdales youre always paying inflated prices and there werent discounters then like there are today. So curated by i always like to have a salesperson help me what do i do if i go to alex mill first of all, if you go there, its only five of us there. Its very easy right now hopefully it might not be as easy when we have stores we have one temporary store. I hate the word popup and i think the other thing is you dont need huge assortments. Right. To shop anymore you dont need them. Never did you need a huge assortment focus on the best. Okay. And then finally, price tariffs, we have to worry about that. I know you source all over the globe. Well, we source well. Were very tiny. What we have done is we negotiated with the factories that we do business with in asia so well pay some tariff, but not the full amount. And am i too old for alex mill not at all, not at all, because im older than you and i aint too old. Youre the best this man taught me you hear me talk about retailers all the time my dad, he told me, son, in this man taught me the rest, and this is the man who actually is probably the greatest teacher of retail in all time i hope you just learned something, and maybe we all go to alex mill and do some buying. Mickey directser, founder of alex mill and Drexler Ventures welcome back. Thank you it is time its time for the lightning round where buy, buy, buy. Sell, sell, sell [ buzzer ] and then the lightning round is over. Are you ready, skeedaddy . Lets go to eileen in georgia, eileen caller yes, jim. Thanks for taking my call. Of course caller i am looking to buy stock for grandchildren. Okay. Caller and i was thinking of verizon. Oh my, 4 yield, good Balance Sheet. Buy, buy, buy i say buy, buy, buy stop it lets go to allen in california. Allen . Caller hey, how are you doing, jim couldnt be better. Well, a little under the weather. Whats up . Caller i want to talk about cxw. Private prisons, we are against those. Sell, sell, sell weve been against them forever. Jim in georgia, jim . Booyah from madison, georgia, certifiably the best small town in america. I didnt know that. Nly. No, no, no. It never does anything we dont know whats in that portfolio. Were going say no to annaly just a sec i think i might have ail little pepto face there dave in indiana, dave . Yeah, jim thanks for taking the call from the hoosier state. Yes. My question is anthem ive been with them anthem, i like anthem everybody hates it its just the warren factor. Not me buy, buy, buy and that, ladies and gentlemen, is the conclusion of the [ buzzer ] the lightning round is sponsored by Td Ameritrade tform. Mhm, yeah, that too. I dont want any trade minimums. Yeah, i totally agree, they dont have any of those. I want to know what im paying upfront. Yes, absolutely. Do you just say yes to everything . Hm. Well i say no to kale. Mm. Yeah, they say if you blanch it its better, but that seems like a lot of work. Now offering zero commissions on online trades. We charge you less so you have more to invest. Hes a bit more brave. Oh. Look. I said over and over that the fed needs to cut Interest Rates, right here, right now we constantly hear from people who claim that would be a mistake. I just dont think these hard money proponents should be taken seriously. Is there a coherent good faith argument against cutting Interest Rates right now call me skeptical. There are two camps here youve got the idealogues. Theyre terrified of inflation, even when its nonexistent a lot of them want to go back on the gold standard, for heavens sake, thats a very bad idea and then you have people who have r so partisan that theyre rooting for a recession so that trump wont get reelected. I get rooting for your team, but thats not exactly an honest argument we dont have a political agenda here on mad money, aside from higher stock prices. I can tell you in no Uncertain Terms that rate cuts would be good for the economy and the stock market i dont care about it. Cart before the horse. I cant believe i even need to make this argument should it be antithematic that a lower rate is good for business like a higher rate slammed the brakes on the economy when they heightened too fast, last year. Those are already uber low i admit that but auto loans are often priced off the short rates that are set by the fed. Right now the Auto Industry desperately needs a boost. Home equity loans priced off the short rate the ideologues go into twitter and call me a charlatan, a cheerleader for prices they say the fed shouldnt cut just because the stock market wants it thats wrong its not the stock market. Its the much larger bond market is demanding some rate cuts. When the benchmark treasury yields 1. 67 , thats the bond market screaming to the fed chief, were heading for a slowdown help us. And were headed for a slowdown, the fed is supposed to cushion the blow by giving us some rate cuts most importantly, going into earnings season, lower rates will give us hope that come next year, we wont have to hear about how our companies have been losing market share overseas to the foreign competitors or are losing money on the translation after they have to sell this lousy currencies and by dollars. Right now american businesses are getting hammered by that strong dollar, which makes our products less competitive. It doesnt help that china and europe have moved aggressively to devalue the fed can stop that imbalance with the stroke of a pen our trading partners have stuck it to us endlessly with their weak currencies. We should at least help our own. Some worry well end up with negative Interest Rates. So what . Our rates didnt go negative during the Great Recession i doubt theyll go negative this time even if that does happen, i guarantee you we have bigger fish to fry because rates dont go negative unless there is something very wrong if the white house keeps prosecuting the trade war and Enterprise Technology spending keeps falling, thats going to hurt the economy it will hurt the job market. And yes, it will hurt the stock market fortunately, there is an easy way to solve the problem the fed needs to cut and cut strongly now so understand, when someone argues against rate cuts here at a time when we hardly have any inflation, theyre saying they want a recession call me crazy. I do not want a recession for you, for me, for any american. It would be bad. I cant make it any simpler than that stick with cramer. Make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. Trade talks on, trade talks off, trade talks on. Too hard, guys lets be very careful. I like to say there is always a bull market somewhere. I promise to try to find it for you right here on mad money. Im jim cramer i will see you tomorrow narrator its been 10 years since shark tank ignited americas entrepreneurial spirit. And we are still blazing a trail. For those who take their fate into their own hands by working hard. We are growing incredibly fast. We need a shark to help us take a billiondollar bite. Narrator . By working smart. Are you ready to try the best tasting drink youve ever had . Narrator . By thinking big. You simply squeeze the zit, and thats it. Narrator . And chasing their dreams. Were stepping up the dancefitness industry to a whole new level. Narrator and tonight, skinnygirl mogul Bethenny Frankel and branding guru rohan oza join the tank. I think your valuation is too steep. But wait. Theres more. Take it or leave it. Dont go fishing. No one else is gonna make you an offer. Im the only one with creativity. Id like to Say Something no, no, no, no, no. Captions by vitac