Competition is cutthroat. And today we let the economy play out once again as we have pretty much every day since this Earnings Period began. Dow gained 22 points, s p backsliding. 19 . Nasdaq declining. Theres a debate going on oddly which im in the center stage of of how anemic business in this country this quarter. The press, notably the wall street journal, is trying to make a case that business after all this quantitative easing, all this help from the federal reserve, is still depressed. I dont know. I see it another way. Many companies are doing extraordinarily well, particularly the Big Multinational Companies and the banks, the ones that dont have much competition. In fact, theres the fulcrum issue. If there isnt a lot of competition, the stock has been soaring if there is, then the storys been pretty soso. If its that simple, why doesnt everybody see it my way . First, they arent looking at the same thing i am. Im gauging the results of stock prices. Im measuring what the market has to say about the earnings. In the end im innately a capitalist. My mission is to help you make money. Thats my prism. Whats not my prism . Hiring. Im not focused on hiring because guess what im not a politician. I dont work at the fed. Frankly, its worse now. I dont want to sound like a cutthroat capitalist here, but the companies that are doing the best are the ones who are making money with fewer people than they used to. When revenues arent totally robust you need bottom line growth. Its pretty easy to figure out how to get there. You lay off people and you get machines to replace them. Or you just make the other people work harder. Thats how its done. Do i want that to happen . Am i some kind of sadist who gets kicks out of layoffs . No, of course not. But then again, from the perspective of an investor, well, thats the perspective of the show, it doesnt matter. My job is to figure out how companies are doing and because competition is slack in Many Industries the fact remains youre getting some really good numbers from a lot of different places. Let me show you what i mean using just today. So United Technologies led the dow and it put up spectacular numbers. Why . Because it makes aircraft components and aerospace is in total bull market mode. There simply arent enough parts out there to meet the demand from the Big Aerospace companies, so United Technologies is able to raise prices on its products and have bigger margins because the raw costs for its materials are going in the right direction. Talk about a virtuous circle. But what wasnt working today in the dow . What was the worst . Travelers. The fabulous insurance company. This ones a textbook case of the perils of competition. The stock was soaring all morning after that great number was reported until our own Mary Thompson broke in on squawk on the street and said hold it, travelers needs to compete on price to get business, particularly car insurance. The house of pain. Talk about what i dont want to hear. Competition is the bane of profits. I like bountiful oligopolies like the airlines, the rental car companies, and of course the rails all aboard. I like beautiful duopolies like airbus and boeing. But cutthroat competition to get business. Are you kidding . No, thank you. You can use this prism to analyze all the big capitalization stocks that have reported so far. Honeywell and General Electric have backed away from really competitive markets and again, theyre doing a ton of business in aerospace. The oil and gas business seeing little competition on price. Oil service King Schlumberger had an amazing quarter. They have higher revenues and higher margins because they have so little competition. Gross margins are going up. In fact, some of these big dogs have really killed off the little guy competition. Both companies have sizable defense businesses while defense orders in the future may be slowing, theres very little competition for these contracts. Hey, we know that from lockheed martin, which reported a marvelous number, and it has a stock that simply wont quit. Or Northrup Grumman like we promoted last night on off the charts. Going higher. The defense names are the strongest stocks in this market this year. Sequester . No competition. How about the railroads like csx and Union Pacific . Monster good numbers. The rails, they dont compete. They raise prices routinely when contracts roll over. That is a fantastic business. Lets talk health care. United Health Groups dazzled the dow. Why . Because these Health Maintenance companies have to well, to look i think they stopped competing on price. Its like they carved up the whole country. Johnson johnson posted terrific numbers. Patent protection made that possible. No competition. But do you know who has the least competitive marketplace versus the old days . Wow, is this a change. And it happened because some companies took advantage of the great recession. Im talking about the banks. Outfits like jpmorgan and wells fargo are tallying incredible earnings because the competition in banking has diminished so radically. No bank has more than 10 market share but because of the financial crisis that was thrown out of the window. The wells fargo and jpmorgans, they bought a lot of banks and wells fargo has 30 of the mortgage market. I mean, thats phenomenal. No more cutthroat competition. Banking is no longer a dog eat dog world. And you want to know whos simply not competing on price at all . The mortgage insurers. Today mgic, one of the biggest, down in profit. To me that means you need to keep buying radian and genworth, my favorite specs for 2013, the two companies doing the best in business because mortgage insurance has become a slaphappy oligopoly. Now lets take a look at the supermarkets for some of the big disappointments. There are some really incredible things here. Alcoa kicked off earnings season with a dud. Is anything more competitive than aluminum . Not that i know of. Theyre constantly cutting prices in that business other than when Goldman Sachs is tacking a little or at least what the press says. Cocacola reported disappointing numbers. I think thats because few markets are more competitive than the drink market. There are constant price wars. If youve gone to the supermarket, a lot of these hotshot analysts probably never go to the supermarket. I go to the supermarket. I mean, like soda, geez, they give that stuff away. As competitive as drinks are, how about fast food . Oh, my. Did you see that wendys pretzel burger today . The darn things beloved. That could give any burger joint a run for its money including mcdonalds. Fast foods competing on price at the same time commodities are going higher and thats a nightmare. No wonder mcdonalds missed. Sure if im a customer i want a value meal but if im a shareholder i want chipotles margins. Panera and dominos which well hear from tonight, they did seem to succumb to intense competition this quarter. Tech is filled with price wars. Microsofts surface is getting its butt kicked by the competition. Intel, the personal Computer Market newly reinvigorated amd will come underneath them. Worries about the internet drove googles earnings below what the street was looking for. Then theres apple where everyone has gotten so used to the way competition has squeezed its business and its margins that the Company Reported better than expected revenue tonight with the earnings and revenue coming in above the analysts were looking for causing the stock to roar in after hours traders. But make no mistake about it, this quarter is a testament to the power of lowered expectations. Yes. You see, including estimates that were slashed this very week that were in retrospect wrong to do as apple is simply making a lot less money than it was a year ago. Yahoo. It finally went up. How important is it that Companies Avoid competition wherever it can be found . Look no further than what fell off my desk. Look no further than oh. Alas, poor yorick. Look no further than dupont, which today announced a gigantic restructuring. Huge. Whats happened here . Ceo alan coleman wants to get out of the biggest commodity business, the one that produces the quintessential commodity tio2, or titanium dioxide, which is a whitener, something made all over the world. To emphasize du ponts businesses theyre about proprietary science, and yes, enzymes. Seeds, foods, and safety. Its a brilliant strategy, and it has moved the stock up far beyond where it would be if there were still a world where it competed on price. So heres the bottom line. You want to know whos doing well this Earnings Period . Just look at where theres little or no competition. And when there is competition, the markets saying ill take a pass. That, not anything the fed is doing or how much higher its whatever the journal is talking about as defining earnings season. When youre about to buy something, think first. Is the company in question going at it hammer and tongs and tooth and nail with the other players . If yes i say take a rain check. There could be much better parties elsewhere. Why dont we start with andrew in pennsylvania . Andrew caller booyah, jim. This is andrew from pennsylvania. Yo, andrew, how are you doing . Youre from the west coast . West part of pennsylvania . Doing well . Or east part and just getting crushed like me . Caller east part. Just getting crushed. Sorry to hear that. Caller well, but jim, i do agree that genos is better than pats. But is mastercard better than visa after its price target was increased and it was affirmed as a buy . I have to tell you, mastercard had been more controversial. I like both these stocks. I know one of the things that happens is a lot of times they get hit right after they report. But that has been a buying opportunity literally from the day they came public. And i bet you its going to be that again. So even though were hardsuffering phillies fans and genos eaters, lets wait for the quarters and then do some buying. Chris in minnesota. Chris caller hello from the land of ten thousand booyahs. Well, hey. Ill give you a land from supplements, too. Whats up there . Caller peabody energy. They beat the earnings estimates, reduced costs and theyre rallying as of late. Do i keep this lump of coal in my stocking . I think that every dog has its day and i think that peabody can go a little bit higher. Now, the old super cycle of commodities didnt pan out. But i do think coal has been oversold. I want to listen to Norfolk Southern tonight, though, because coal is Norfolk Southern and vice versa and they will tell me more. Dog eat dog . Well, this markets a kitten. It just doesnt want anything to do with competition this earnings season. Look where theres no competition, and then pull the trigger. Mad money will be right back. Coming up, wireless war. After a recent run, shares of sprint have stumbled, falling 15 in the last month alone. But after clearing a few hurdles, is it ready to get back up again . Cramers mobile matchup is next. And later, meal ticket . Dominos pizza has been increasing its slice of the pie. But after reporting earnings, the stock appears to be cooling off. Can you count on the company to deliver more, or is hanging on here just pigging out . Stick around for cramers exclusive. Plus, service with a smile. Timeless toolmaker snapon made reporting an earnings beat look like, well, a snap. But can its continued push into new markets cause its shares to find another gear, or will the stock break down . Cramer has the exclusive just ahead. All coming up on mad money. 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 at 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. Diarrhea, gas, bloating . Constipation, yes one Phillips Colon Health probiotic cap each day helps defend against these digestive issues. With three strains of good bacteria. 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What the heck are we supposed to do with this spring . Sell, sell buy, buy last year the single best performing on the s p 500, rallying 180 . Thanks to a terrific turnaround followed by a fabulous takeover bid from softbank, the japanese tech titan. But the sprint nextel, the specter of the stock to be good, it made us a fortune, no longer exists. Now we have a new sprint. Two weeks ago sprint closed on its acquisition of clearwire, giving the company complete control of a massive amount of wireless spectrum, which is the coveted commodity in this business. And then on july 10th the soft bank deal closed. Soft bank paid 21. 6 billion for a 78 stake in sprint soft bank. And soft bank gets control of the company. Sprint gets a ton of cash to help pay for its big 4g infrastructure rollout. Remember, thats what happens right now. You have to have 4g across the country. And sprint shareholders got 5. 50 per share, plus 26 shares of the new sprint that we see traded for every 100 shares of the old sprint that they owned. However, Something Else happened when the soft bank deal closed. The new sprint became controversial. As a matter of fact, this stock is now a total battleground on july 11th, the day after soft bank bought most of the company, citigroup came out and downgraded the stock sell sell sell from buy to neutral. At the same time Deutsche Bank reinstated its coverage of sprint with a buy. Then a week ago on the 15th bank of america reinstated coverage with an underperform. A day later ubs raises the price target on sprint from 6 to 7. Buy buy buy holy cow. This isnt just your typical analyst duel. Its a wall street shootout. This stock is the equivalent of the gun fight at the ok corral so whos right . Whos wrong . First lets give the bears their due. Sprint reports a week from today, july 30th, and pretty much everyone thinks the earnings will be a disaster. The reason . Sprint is still in the process of building out its next generation ultra highspeed 4g lte Wireless Network. Theres a mouthful. It will be 3 to 12 months before they can roll out a competitive product nationwide that can fend off att and verizon. Beyond that sprint always had a lot of moving parts and now youve got even more. So its possible the real quarter, it could be a mess. The house of pain. But like i said, nobody expects this quarter to be good. And i think if sprint gets banged down on lousylooking earnings, that could be a fabulous opportunity to buy buy buy and yes, i do think that sprint is a buy. It might just be the best longterm Investment Opportunity in the whole Wireless Industry right now. You just have to be patient enough to let the story play out. Why dont we be bullish analysts and be right about sprint . Lets think this through. Before soft bank came along and injected the company with boatloads of cash sprint was already doing pretty darn good. Bangup job of turning itself around under the topnotch leadership of ceo dan hesse. The old sprint was aggressively winding down the legacy of nextel business while convincing nextel customers to migrate to sprints core network, also cleaning up its by the way, that migration push, hesse did a great job with that. With the new sprint hesses still at the helm although he reports to some incredibly smart people at soft bank now. More important right now, theres nothing more important to the Wireless Industry right now than electromagnetic spectrum. Thats why at t offered to buy leap wireless for an almost absurdly huge 88 premium. Everybody in this space needs spectrum if they want to offer highspeed service with lots of bandwidth to more customers, think netflix, because theyre squeezing all the bandwidth they can out of their existing spectrum. Guess what with its clearwire acquisition sprint has 200 megahertz of spectrum, double of at t. More available for its 4g lte network than all of their National Competitors combined and sprints spectrum is also better quality than the competitions. So once sprint finishes its 4g buildout the companys going to have a decisive edge over the competition given that at t or verizon has half as much spectrum to service twice as many customers. And by the way, those are both good companies, but ive got to tell you, spectrum is what counts. The bullish analysts at Deutsche Bank believes sprint can grow earnings before interest, taxes appreciation and amortization, thats ebitda at a 25 annual clip and thats a conservative estimate that only includes the cost savings from the wind down of the old nextel network and a modest increase in Wireless Service revenue. Right now sprint has the lowest margins in the industry thanks to the costs associated with running that parallel network for the nextel legacy customers. But as the Company Finally finishes shutting down nextel hallelujah their earnings before interest taxes depreciation amortization, ebitda margin could easily rise from 17. 2 this year to nearly 30 by 2016. The house of pleasure. And were just talking about cleaning up the old sprint here. If you factor in the synergies from the soft bank merger that both companies elaborated upon then sprints ebitda could grow at a 40 compound annual clip to next years, by far the fastest growth in the industry, and this is an industry where you buy the fastestgrowing players. Now, the bears will tell you that sprint is facing a ton of nearterm turbulence. The company indeed needs to integrate clearwire, which could be messy, messy indeed. But long term i think its definitively a positive given the value of its spectrum. What else . Sprints probably going to lose Something Like 850,000 subscribers when they report the Second Quarter results next week. Oh, thats going to be so ugly. People are going to really drill down on that. Im not thrilled about shrinking subscribers, but the reason these particular subscribers are disappearing is because sprint is shutting down its iden network, which is part of the old nextel. Nextel was just horrendous. Remember, we want sprint to unwind all this parallel nextel nonsense and if losing these subscribers is the price they have to pay to get their cost structure under control, then so be it. Youll also hear worries about a resurgent t mobile which now carries apples iphone. I say ah, the iphone isnt that much of a game changer anymore. And once sprint gets their lte network up and running nationally, all the chatter will be about a resurgent sprint plus for years now sprint has focused on converting nextel customers to sprint customers and the companys regular cdma Wireless Network because it was cheaper and easier than going after new subscribers. But starting in the second half of this year, that phase, its over. And sprint is now focused on bringing in new subscribers from wherever they can get them. In other words, sprint only just now, only just now is really aggressively starting to try to compete with the rest of the industry for customers. Unleash dan hesse last but not least, theres the chatter about the funding gap. Sprints expected to shell out Something Like 8 billion in Capital Expenditures in 20132014 followed by another 6 billion in 20152016. The critics say that means sprint is going to have a massive funding gap. I say come on. This is the entire reason they agreed to be bought by soft bank to begin with. Somebody cleaned up their Balance Sheet, gave them access to softbanks healthier Balance Sheet so they can borrow. Sprint needs money to fund its Capital Expenditures, believe me the banks will throw the money at them as will the highyielding debt players. Thats fine as long as they can manage the Interest Payments and i think we know they can. So here is the bottom line. I think the new sprint is worth owning longterm here, and especially if you can buy into the weakness like the weakness we saw today where the stock fell 1 and the weakness i expect when you actually see the print the next quarter. Sprint reports in a week. So i would buy a little before the quarter and then really load up if the stock gets dinged off of earnings. Yeah. Sprint too. Its back. It could be bigger than ever. Lets go to trevor in texas, please. Trevor reporter mr. Cramer, big texas booyah to you. Well, im liking that texas booyah. Whats going on . Caller just want to say thank you for everything that you do. Im a 19yearold investor, going off to college. Ahead of the curve because of your knowledge. There you go. I thought 19yearolds cut cords, dont watch tv, dont care about it. Here you are, ive got a living, breathing 19yearold talking about the stock market. It does happen. How can i help . Caller i want to ask you about cisco. The stock has risen 5 in the last three months but im more interested in their announcement to buy source fire. Is this going to make them a major player in Cyber Security . They already are. It now gives them a huge market share. Everybody knows, as my friend and colleague buddy pal david faber said, youve got to be one step ahead of the bad guys when it comes to Cyber Security. Ciscos going to have the best suite of Cyber Security. Its a great use of their cash. I think better than just standing there buying back their stock. It makes me want to like cisco even more for my charitable trust. And there you go. How about chad . We hardly ever go here. In hawaii. Chad caller booyah, jim mahalo booyah. Caller thank you for everything you do for us. I love your books, by the way, real money. Youre terrific. Thank you very much. Caller thank you. My question today is regarding tmobile. With them doing new things and changing their approach as a wireless carrier, im wondering, jim, whats your take on the stock . I like the stock. I like the management. I like the stock. I dont like it as much as sprint. I like verizon, by the way. But ive got to say i like it. I like this group all of a sudden. I did a lot of work on tmus. And i think its entirely possible that charlie ergan, thats right, dish, buys tmus. I would never recommend it if i didnt feel the fundamentals were also fine. Its not a sprint, people. Its a marathon. I agree, which is why i think sprint, run by the terrific dan hesse, always invited on the show, by the way, is ready for the longterm marathon. I want to buy it if this stock gets hit when they report next week. After the break im going to try to make you even more money. Coming up, meal ticket . Dominos pizza has been increasing its slice of the pie. But after reporting earnings, the stock appears of to be cooling off. Can you count on the company to deliver more, or is hanging on here just pigging out . Stick around for cramers exclusive. [ male announcer ] ive seen incredible things. Otherworldly things. But there are some things ive never seen before. This ge jet engine can understand 5,000 data samples per second. Which is good for business. Because planes use less fuel, spend less time on the ground and more time in the air. Suddenly, faraway places dont seem so. Far away. When you have a turbo charged stock that has doubled over the last 12 months, you cannot afford to stumble even slightly. Thats what happened to cramer fave Dominos Pizza today when it reported a quarter that was seen as basically in line. Nothing to write home about. And the stock got poleaxed falling 4. 16 or 6. 57 . I think this week this could be a buying opportunity. Remember dominos one of the premier International Growth stories out there with a brilliant understanding of global technology. More than 70 countries and the companys adding 500 new International Restaurants a year. Plus dominos is still eons away from saturating even the Largest Overseas markets. And honestly while the quarter wasnt a blowout like many had hoped for, dominos did beat the streets earnings estimates by a penny off a 56cent basis. Its revenues did come in higher than anticipated. The company did produce some excellent samestore Sales Numbers, a 6. 7 increase domestically, but believe me panera after the bell would love to have that, and a 5. 8 increase internationally that exceeded all expectations. The one piece here was the companys operating margins came in at 17. 9 when people were looking for 18 . Nitpicking to me. Lets remember, even after todays trashing dominos has rallied 12 since we last spoke to the ceo april 30th and its given you a 530 return since i first got behind it january of 2010 when the stuff still tasted like cardboard. Thats a joke. For years this stock has been a terrific buy on weakness. Lets check in with patrick doyle, the president and ceo of Dominos Pizza, to hear more about the quarter and where the company is headed. Mr. Doyle, welcome back to mad money. Hey, jim, how are you . Patrick, ive got to till, im going to be really honest. I am an observer of everything you say. And i thought on this Conference Call im going to say it, you came off as subdued about the industry. Maybe not dominos, but about the industry. And i kind of without saying that, you know, you do something you that didnt do in the Conference Call, i dont think you meant to sound that way. Well, i mean, look, our business is doing great. I mean, you just said the numbers. I mean, up 6, 7 domestically. Up almost 6 in the international business. Store Growth Continues strongly internationally. Earnings per share are up 21 . You know, and the answer is the category i think is flattish to up a little bit. Thats the reality. I think our growth has been coming as it has been coming for the past year, mostly through taking market share. And you know, were excited about where we are. Were excited about how the brand is performing. The comps were driven this quarter really by the brand, not by specific new product news, which is great news. That means that customers are happy, theyre coming back, were driving frequency. So overall, we are very happy with the quarter. And i think to your point on kind of subdued around the category, i think thats probably correct. I think there are still more headwinds than tailwinds in the category. But shouldnt we just be look, im being apologist for you and its your company. But im looking at this is an International Story and i think that your that this whole subdued part is about the United States. By if i just looked at the United States i would have missed the last 20 points of dominos. Thats absolutely right. Thats absolutely right. And there is clearly more category growth outside of the u. S. Than there is inside the u. S. I think probably 3, 4, 5 points more, which is why were generating more store growth outside of the u. S. But overall we were very happy with the quarter. Okay. Now, you also i felt were a little less effusive about the margins. The margins werent like what were used to with dominos. So why dont you walk us through . Maybe that was a little too downbeat, too. Yeah, i think there are a couple of things going on with margin. There was a lot of Little Things with the margin. It was about expectations. Margin was actually still up overall. I think were about a tenth short. We beat the overall on earnings, but i think were like a tenth short of what they were hoping for on the percentage margin. It was a few things. Commodities. Food costs were a little bit higher in the Second Quarter. Overall, though, you know what . We can generate 20 eps growth, 21 , were very, very happy with that. Youve now rolled out the 95 apps. Youve got the Windows Phone 8 app. Are people getting apps . Are they also buying more . Are they ordering more than the people who are just doing it on the phone . Absolutely. There is more loyalty once people shift to digital. So the newest launch, as you said, was the windows 8 phone. Its actually got voice capabilities now. So you can actually say large Pepperoni Pizza into the handset. That was a first for us. And were now on 95 of the phones weve got a native app for them. And that continues to drive better frequency, better retention for those customers. Even at the end of the call, suddenly youre talking about how again the smaller players are still not where they need to be in terms of being able to get credit to open stores. If we got a loosening of credit in this country, would your samestore Sales Numbers go up or would it just be more revenue in this country, but not samestore sales . Actually, if there was a little loosening of credit, maybe thats going to help the consumer, but the real key is loosening of credit would allow us to open more stores. The onestore, twostore franchisees would be able to access credit, so i think it would be more effect on store growth than it would on samestore sales growth. Im used to crazy things from dominos. Got the new transparency, the cameras in the kitchen. Hows that working . It worked well. People were remarkably interested. We had a couple hundred thousand people spend five minutes or more watching to see how the product is made and to understand that, you know, its starting from a dough ball. People want to see where their food is coming from. They want to see how its made. And it was pretty darn good interest in doing that. All right. Now, you have this was a quarter where you didnt have any big rollouts, and i think you mentioned listen, were not going to have any new rollouts. I thought that implied that perhaps there will be some things that could stir some excitement, and dont give up the ship down four today because there may be a second half story or Fourth Quarter story that we dont know about yet. Yeah, were going to continue to drive innovation. I think the change for us is that weve kind of quit the product of the month club. Were coming up with things that are bigger, that are going to drive overall preference, and theyre not just product. Innovation for us is also coming on technology and the ways that people can access the brand, can order the brand. And thats going to be every bit as important a part of the story Going Forward as new product launches. But theres going to be some of both. Okay. Thank you so much, patrick doyle, president and ceo of Dominos Pizza. Good to talk to you, sir. Thanks, jim. Appreciate it. Conference call i felt was way too heavily weighted toward domestic. Thats the analysts fault, not patricks. The foreign story is all in the materials. Go to the slide show. This stock will probably catch a downgrade tomorrow because people dont think theyre not as excited. I think thats a mistake. But if they get downgrades, guess what buy buy buy stay with cramer. When we made our commitment to the gulf, bp had two big goals help the gulf recover and learn from what happened so we could be a better, safer energy company. I can tell you safety is at the heart of everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, where experts watch over all drilling activity twentyfourseven. And were sharing what weve learned, so we can all produce energy more safely. Our commitment has never been stronger. Thats me. I made you something. I made you something, too. See you next summer. [ male announcer ] get exceptional values on the highest quality cars at the summer of audi sales event. It is time. Its time for the lightning round rapidfire calls one after the other buy buy buy or sell sell sell. My staff play till the sound of [ buzzer ] are you ready, skeedaddy . Its time for the lightning round on cramers mad money. Start with brett in minnesota. Brett. Caller booyah, jimmy booyah, brett. Caller my question for you is last week Raymond James analysts called for a 10 correction in the marketplace. I want to get your feedback on that. Well, i dont think i think Raymond James is a great outfit. Just a terrific outfit. A lot of people have used them. Im not buying the 10 correction but i do like the stock. Lets go to robert in florida. Robert. Caller babababooyah, dr. Cramer. Thank you. Thank you for that promotion. Caller mr. Cramer. Alr. Alear. Seems to be a lot of infighting due to the upcoming nominee for the board. What are your thoughts . Hold them, fold them or go ahead and stack them . Got a nice, nice run there. You know, i like diagnostics. I dont want you to sell the stock. I think the stock can go higher. It does very well. Very well in affordable care. Lets go to tim in california. Caller hey, jim. Wondering about susq, Susquehanna Bank shares. Buy, hold, or sell . You know, i know that area. I see this stock at a 52week high, but i dont know what its book value is. So therefore, i have to make some calls. Ive got to do the homework because thats how im valuing regional banks. Im not ready to give you an answer. Lets go to michael in new jersey. Michael. Caller booyah, professor. Booyah, michael. Caller just one short question. Gmcr. Whats going on with this stock . Oh, man, what a battleground. I think what happened, this was the case with herbalife. So many people got shorted and then the stock didnt fall, so suddenly it rallies. That is what i call a place where i dont buy. Dont buy. Too complicated for this guy. I need to go to daniel in texas. Daniel caller booyah from texas. Whats going on . Caller oh, not too much. I was wondering what do you think about baker hughes . I like baker hughes. I like halliburton. I like that segment. Oils going higher. Oil service is good. Steve in vermont. Steve. Hey, jim. Booyah. Whats going on . Caller rambus. Samsungs using all rambus chips. I like rambus. I also like micron. I like paleozoic tech. I dont like that new modern tech like broadcom which i said you get out of. I think rambus is okay with me. Buy buy buy and so is samsung. And tonight so is apple. And that, ladies and gentlemen, is the conclusion of the lightning round coming up, service with a smile. Timeless toolmaker snapon made reporting an earnings beat look like, well, a snap. But can its continued push into new markets cause its shares to find another gear, or will the stock break down . Cramer has the exclusive just ahead. [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All on thinkorswim from td ameritrade. Has oats that can help lower cholesterol . And it tastes good . Sure does wow. Its the honey, it makes it taste so. Well, would you look at the time. Whats the rush . Be happy. Be healthy. Geicos defensive driver,ke 13. Good student and multipolicy discounts could save you hundreds of dollus. Engineer uh geicos discounts could save you hundreds of dollars. It sounds like youre saying dollus. Dollus. Engineeif you could accentuate the r sound of dollars. Are. Are. Are. Engineer are. Arrrrrr. Arrrrr. Someone bring me an eye patch, i feel like a bloomin pirate. Geico. Fifteen minutes could save you fifteen percent or more on car insurance. Honestly, i feel like i nailed that. If you want to get a read on the real economy, both here and even in europe, then look no further than snapon, sna for all you home gamers. The top maker of premium hand and power tools, particularly for auto repair shops. Though the company also has its paws in aerospace, agriculture, construction, mining and Power Generation too. Its an endless innovator of new tools that its clients love. Now, last thursday snapon delivered an excellent quarter with earnings coming in at 1. 50 per share, fivecent beat while the companys revenues were in line rising 3. 6 year over year. Snapon has given you an 18 gain since we last spoke to the ceo back on april 18th. The stock is up 41 since we first interviewed him roughly a year ago. Lets drill down with nick pinchuk, the chairman and ceo of snapon inc. Find out more about the quarter and his companys prospects. Good to see you. Good to be here. Thank you, jim. This was a quarter i think where you stood out by saying, okay, did good in u. S. But actually made money in europe, not off of revenue but because you just did the right thing with margins. Right. Europe stabilized. But we for the last couple of quarters have started to make more money on less sales. And this is what we like about snapon. Snapon is a targetrich environment for improvement. 65,000 skus. Deeply integrated manufacturing. So we have something called snapon Value Creation that says were going to improve even if the sales are flat. And thats what happened in europe. I think it was great you said i just want to get europe out of the way because i wanted to get this line. You said yeah, france, i dont like to hear the word france, it gives me a headache. Right. It was mixed. Well, france was down again, but germany was up a little bit. Spain was down again. Benelux was down, sweden was down, but the uk was up. We had a mix. We think europe is kind of stabilizing. Thats what i want to hear. One of the things i thought really stood out in this quarter, ive been talking about you and technology, is the inventions. The inventions, what they mean. So for instance, lets just pick one. Bk 8000 wireless digital inspection scope. What does it do . What it does is you have this wireless scope that you have a fiberoptic that you put it inside an engine and you can inspect whats going on inside the engine itself, under the instrument panel, inside the transmission, and it shows up on a video screen thats bigger than ever before. It is a touch screen now. Its an advancement that our technicians are loving. What happens . You introduce that product, then they have another reason to make a sales call or they sell more products . What happens is technicians get on our vans. We have vans that go around the country. And when they get on the van they get excited about the new products. We call them hit products. Products that will sell more than one million. We have launched more than six times that number of 1 million sellers than just like 2005 or 2006 because our innovation processes are better. And what happens is the guys get on the van, they get excited about this new product and then they buy some of the old. I see. Which is more important, the number of vehicles on the road, the new ones, or the age of the vehicles when it comes to oh, the age of the vehicles of course. The vehicles have gotten older every year since 1980. Theyre now at 11 1 2 years old. The age of the vehicles are important and also the change in the vehicles. Vehicles keep changing. You know, the number of engine codes are maybe 100 times what they were just a few years ago, and we keep innovating to do that. You guarantee your tools for life. Now, thats fine if its one of these. But you cant guarantee Something Like that. No, we dont guarantee this for life. You know, we dont guarantee that for life. But we guarantee it for a good period of time, and it operates because people, when they buy snapon, they expect it to operate with quality and repeatability every time. Now, one of the things that i thought was a standout, you had talked about initially indianapolis. Now for aerospace, really coming on, starting to be really profitable for you guys. Right. The aerospace business, what we call the Critical Industries business. You see, the thing is about snapon, what its always meant for nine decades is an idea of pride and reliability for technicians, for working men and women. And that applies, whether theyre automotive techs or techs in aerospace or oil or mining or anything. Aerospace is one of those places where rolling the snapon brand out of the garage to sell to those people and they are really receptive. That area, what is that levered to . Is it the age of planes . No, actually, its the change in the planes. And for us, because it is part of our proposition, which is only a portion of which has been explored, theres market share gained for us. Thats what you see for us. Last week we had t. J. Rogers on, hes from cypress semi. He does the touch screen for autos including, for instance, the tesla. Will you be developing products for electric cars, Building Products for touchscreens to be able to analyze those . No, of course. Of course. Anytime a car changes its good for us. Whether its electronic or hybrid or so on. We love change in cars because it generates the tools. As you said, we guarantee this by the way, when you feel this, its a good wrench. Mr. , you know, maybe goodwrench. Actually, we guarantee these for life, but every time a car changes it needs a new style. I had a guy get on a van the other day, i ride around on these vans all the time, he had 15 or 16 ratchets and he said this is a standard tool. He said i need two more because the cars have changed, i cant get in the space. We love this. This is what drives our volume. Last thing, i know that you talked about asia, you said china right now all the cars theres a lot of cars on the road but theyre all new. Is china going to be a good market ten years from now . Chinas going to be a good market ten years from now. In fact, all of asia. But chinas a place where the repair wave is rising. The cars are new, but theyre all new, and they havent really gotten the idea of the need for repair. So thats what were doing. Were building our physicals. Just ten years ago we had nothing in china. Two offices, ten people. Now we have 1,500 people. Five factories, a Design Center and scores of offices all over the country. Yours is a Great American success and growth story. Thank you so much. Nick pinchuk, chairman and ceo of snapon. See why this stock hit a 52week high . This has what you want in a stock, right now and for many years to come. Stay with cramer. Good to see you, sir. Thank you. This market is making you afraid to sell. As i watched netflix fall today i kept thinking what if netflix is the next google . What if its the next 3m . The next starbucks . What if its the next Federal Express or cocacola . These are all companies that let the marketplace down, disappointing analysts, causing downgrades and lots of hand wringing. Sell sell sell sell sell sell sell yet what happens a few days later . They start coming right back. Then they even pass where they were when they reported what we didnt like. Seriously. Was there a quarter more downbeat than fedex where the company basically told you that theres no urgency to sending freight around the world, something that was echoed by United Parcel recently when it preannounced and then again this morning with the actual quarter. What did fedex do . It was flying high when it told us how badly things were really going, then it had a straight shot down to 91 and change. Then after that a methodical rally all the way back to 108. It was incredible. And while you could say it was based on nothing, it did happen. Or take starbucks and 3m, two companies that report tomorrow. I still cant figure out what people originally didnt like about starbucks last quarter that sent it down to 60 after hours trading from 62 when it closed but it obviously didnt hold any water because the stocks moved methodically back up to 67. Was at 69. Well above where it was before it reported that socalled disappointing quarter. While were on the eve of starbuckss q let me just say this danone yogurt tieup announced today i think its a pretty bullish longterm idea. It didnt drive up the stock today. 3ms much more problematic. When that Company Reports you have to hope it bested heavily slashed estimates a la what apple did. The ones that dropped the stock from 107 to 103. Because the stock is now up nine points from before the slashing. I cant see where the business has turned, but maybe im being too negative because the stocks been a real horse. The turn in google is astonishing. Last week all we cared about was advertisers werent paying up for mobile ads and the mobile acquisition was a terrible one. The hand wringing about the quarter that sent the stock from 912 right after it reported to 880 in after hours was astonishing, perhaps the most high profile disappointment of a beloved Company Since microsoft. So i think its kind of a different kettle of fish. Mr. Softy had crept up too much in light of the surfaces failure. Cocacola management weather and economic excuses rang hollow but you cant see the downward move on the chart after the quarter. And the stocks regained all of its losses. Which brings me to netflix. Yes, it didnt get the hopeful the hope for new ads some are hoping for, including netflix itself, by the way. The number was still pretty darn good. Those that thought there would be a huge bump in subscribers because of arrested development, of course my appearance on the show, were certainly disappointed, as the company said some people signed up for arrest rested development that might not otherwise because it was a seasonally weak quarter. Talking about expenses running high is grim but what happens if netflix turned out to be cocacola or 3m or starbucks or google . What happens if people are excited about International Coming on or how the ads are still good and the Critical Mass is worth a lot more than what the company is selling for as was debated today on judge wapners show . To me theres a case to be made that the sellers we saw in the aforementioned stocks it could grip the shares of netflix too. In other words, i dont think you need to rush to dump it. If it follows the pattern of the others it just might be a buy in a couple of days. Either way its certainly worth waiting to see at this point, if only because forgiveness reigns in this market for all but a handful of stocks that have no adherents and are truly dead in the water at least until the next quarter. Stay with cramer. When we made our commitment to the gulf, bp had two big goals help the gulf recover and learn from what happened so we could be a better, safer energy company. I can tell you safety is at the heart of everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, where experts watch over all drilling activity twentyfourseven. And were sharing what weve learned, so we can all produce energy more safely. Our commitment has never been stronger. Lets say you pay your guy around 2 to manage your money. Thats not much you think. Except its 2 every year. Does that make a difference . Search cost of Financial Advisors ouch. Over time it really adds up. Then go to etrade and find out how much our advice costs. Spoiler alert its low. Really . Yes, really. Etrade offers Investment Advice and guidance from dedicated, professional financial consultants. Its guidance on your terms, not ours. Thats how our system works. Etrade. Less for us. More for you. [ male announcer ] its a golden opportunity to discover a hybrid from the luxury car company that understands that one type of hybrid isnt right for everyone. Come to the lexus golden opportunity sales event and choose from one of five lexus hybrids thats right for you, including the lexus es and ct hybrids. This is the pursuit of perfection. Sun shines on apple for a day. I like to say theres always a bull market somewhere, i promise to try to find it for you right here on mad money. Im jim cramer, and i will see im jim cramer, and i will see you tomorrow materials and components for a variety of weapons from right here in the u. S. A. This man set up a Trading Company in philadelphia. You are charged with trying to buy a centrifuge that could be used to make biological weapons, like anthrax. Yes. Thats what they say. Do you know how much money you have . No. I mean, does 17 billion sound about right . He is the richest man in russia who just bought