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Declining. 23 . And the nasdaq dipping. 17 this session . Frankly, theres no one answer that explains why stocks are so resilient here. This is a complex and complicated market. Instead, there were a number of important factors at work. Lets get to it. Lets go over the reasons why the market hasnt been absolutely destroyed despite the crash of the Malaysian Airlines plane over ukraine and the ratcheting up of the antirussia rhetoric by president obama and his people this weekend. Pretty much, the markets decided for now that whatever sanctions we put on russia are not going to hurt the earnings of u. S. Based companies. Now, im not so sure if the conventional wisdom here is correct yet. Its certainly right if the west, including the United States does nothing more than what weve already seen against russia. The current sanctions arent going to hurt any companys earnings because i dont believe that putin is going to shut down, nationalize, or kick out the companies of any western countries that are looking to punish russia just yet. I think part of the reason why theres no corporate bite to these sanctions is simply because europe, it isnt suicidal. If you think like the europeans do, its all well and good for president obama to talk about cutting russia out of the commerce equation, but its europe that would bear the economic brunt of ostracizing the russians. And they dont want to do that. If russia cuts off the energy that fuels most of europe, we wont get cold here, but they will. You cant just tell them, hey, put on a sweater. Oh, jimmy carter tried that. We dont get our natural gas from russia, they do. They could freeze if russia decides to retilluate against our sanctions that they joined. So were held back by the shiver fear in europeans. If russia decides to stop trading with the u. S. , u. S. Based companies will face cuts. I could see the russians kicking out mastercard and visa which have tens of billions of credit cards there. Russia could put its own credit card system in place, something they boast about. So why arent these stocks down big in anticipation of what happened . Well, mastercard and visa have been adamant about nothing to worry about. We could also see some of the Machinery Companies get hurt and russia could kick out pepsico. As well as the other packaged goods and numbers. Numbers will come down for the companies. But all of these estimate cuts will be telegraphed, and russia, again, isnt that big a driver to the earnings of u. S. Companies. Not that big of a country. Most of the s p 500 would not be directly impacted by tougher sanctions and the vast majority wont notice somethings happened. People are reluctant to slam down the s p futures knowing that a lot of companies in the s p, by the way, a lot of the russell 2000 companies, they dont know where russia is. But europe would have boat load of companies that will miss the numbers if sanctions get too tough. I believe many European Companies could be kicked out of russia starting with the oils, namely bp. Plus, its possible that europes recovery could reverse entirely. Throwing the continent back into recession. The house of pain. Anyone that believes that europes getting thrown back into recession irrelevant to our Companies Truly hasnt been paying attention for the last couple of years so many of the multinationals i follow did roughly on average 20 of their earnings from europe. The push back from russia on any really tough sanctions could cause these numbers to come down. Thats another reason why i think the markets being too glib. Sanctions will hurt our companies if europes economy gets clobbered. I will say the market hasnt correctly assessed the downside yet and theres potentially more downside if the europeans decide to commit economic suicide by going along with president obama and hammering russia. But theres another reason why the stock market hasnt been demolished here. Bonds, the flight to quality trade has sent Interest Rates low for bonds once again. And, you know, bonds look like they were going to go down and rates were going to go up until this. And thats been the endless trade. The one that really confounds. The bond market equivalent stocks do well. Third reason for resilience, selfhelp. Look at allergen today. They announced huge layoffs, put out an earnings per share forecast for 2016 which makes the stock seem very cheap, you have to wonder if you can do better by voting for the ceo than the hostile takeover. Allergens not going down, dave pyatts right. Same thing could happen tomorrow time warner, that company could issue very big projections that could make you think twice about how much youre going to get from fox versus staying with time warner. Fourth reason, aside from the hostile merger attempts, weve got a number of deals occurring as a matter of course. There are so many acquisitions happening right now, we dont bother to talk about most of them. For example, did you hear anyone talk about how International Game technologys being bought out . 4 billion. Who cares . How about purchasing rockwood holdings. 6 billion acquisition, former chemicals power house. I dont know if it rated its own article. Its kind of like the tiny agate type about some relative callup from the minors. Fifth reason, the activists. Very good activist hedge fund has taken up a position in emc, asked the company to fully spin off its fastgrowing vmware subsidiary. The emc stock has been flat lining for a long time. This news sent it soaring. When companies were vulnerable, pressure from activists, you get very nervous if you arent fully invested. Sixth reason, my weve had some awfully good earnings. And those earnings have translated into higher prices. Overshadowing the gaps by a large margin. Its hard to sit out of a market when so Many Companies beat out estimates and raise numbers. Weve got this terrific theme going, the return of old tech. I think its got staying power right through earnings season. And then how about this . Stellar earnings from Chipotle Mexican Grill after the bell and an astounding Comparable Store sales, that doesnt hurt either. Stock up 10 . Hey, guys, you know i love you, why dont you split the stock so people can do more than buy the burrito. Seventh reason why the market hasnt been crushed, no ipos lately. Remember when the new offerings were coming fast and furious . Thats no longer the case. Buy, buy, buy, buy were not seeing a lot of new stock for sale which helps keep the supply and demand in balance. But in many ways, its the most important ingredient of a strong market. In the end, stocks are pieces of merchandise. When theres too much merchandise for sale, you get price cuts, plus the big buybacks. Johnson johnson this evening announced this 5 billion repurchase. Its about time the stock is down four straight points. They reported that good quarter. Finally, the new fed chiefs the same as the old one. No hurry to raise rates. No matter how many people say shes behind the curve because of rising inflation. Shes waiting, shes patient, she will not be bullied by hedge funds that have a lot to gain if rates are driven up by the fed. There, i said it. Im not saying this is a perilous situation right now. My view, i simply want to wait for lower prices before i do any more buying. If they sounds bearish to you, so be it. I think the consensus the positives a little acute. If you took russia out of the equation, id be more sanguine, how can you do that . We got clobbered in cypress a couple of years ago. That was first ignored and whats happening now is a much bigger deal than that. Theres no reason to panic and sell, but can we just be patient and wait for a better chance to buy . Let me ask you, is that such a terrible, irrational risk . Why dont we go to guy in new york . Guy . Caller booyah, jimbo. Booyah, guy. Caller this is your favorite nicknamed addict from new york city. How are you . Im doing fine. How are you . Caller well, im getting killed, man. The good news keeps coming out and michael kors keeps going down thats a controversial stock. My friend, buddy pal Herb Greenberg was on today, hes got a reality check report about it. I dont know, its been going back to lawyers, whatever. Its been hard. I refer you to the 2 00 show. Im not a buyer of kors. Im not a fashion guy. I mean, well, ive got my daughter gave me a nice one of these ties, this for fathers day. Im not generally a fashion guy and i think that kors is a little too expensive. I dont need the controversy. We think this markets always right, that may not be the case. I say be patient. Let it come in. Youre not going to get hurt. On mad money tonight, gopro, its all the buzz from wall street to main street. Its changing the way we see the world. Should you go pro or go home . Hold on to your seats from my point of view on gopro. No one has this one, believe me. Honeywell makes the technology, keeps it under control. Hey, how about this . A company with devices keeping hearts healthy. Up huge in the past year. 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 at 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. 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Despite all the hand wringing, were still in a market where companies that report terrific results, they see their stocks rally. Consider cramer fave honeywell, an Industrial Company that makes everything from Climate Control systems, security equipment, specialty materials, turbo chargers that can significantly boost your cars gas mileage, and refining catalysts that allow Oil Refineries to get more gasoline or diesel out of a given barrel of crude. Honeywells an incredibly run company. So its no wonder that when honeywell reported last friday, delivered an excellent quarter. 2 cent earnings beat off 1. 36 basis, and management also raised the low end of the fullyear earnings forecast. The companys transportation and universal oil Products Division really soared, just incredible. Even though honeywell made an new alltime high, its given you an 8 gain at the end of january, its got more room to run. Dont take it from me. Lets check in with dave cote to hear more about the quarter and his companys prospects. Mr. Cote, welcome back to mad money. Always nice to see you, jim. This is it, dave, the most optimistic, you didnt talk about things that were happening, green shoots down the road. You talked about great position in good industries, thats kind of a new rap i heard from you on that. Our Business Model from the beginning. Ive always said, we have like a threelegged stool, if you will to our Business Model. The first is to have a great portfolio to roll with. And that starts with great positions in good industries. Then we focus on our internal processes, or as i put it, youve got to make sure the machinery works every day. If they cant get implemented quickly and effectively, doesnt matter. And then our culture. If culture is what gives sustainability. Processing right. If this was not theres no caveats beginning at this call, dave. Come on, you always say, if i were more bullish, this and that. You didnt say that. Im not trying to jinx you. Im thinking maybe i should go back and start add juing juso make sure. The last quarter, i wasnt happy you felt you were too pessimistic versus the facts. And this one i felt was a very straightforward call. But what i loved about it was that you that all of the divisions are hitting on all cylinders. Yeah, actually, this was a nice quarter in that way. Its like, we had some you know, on the organic growth side. We had couple of glitches, id say, in the First Quarter for how it went and defense, we got whacked in the First Quarter. We took a look at the Second Quarter and everybody was doing well. And very much on the path. And you said defense has now run its course, the negatives. Third quarter should return to growth. And same thing next year. I thought you had a great quote in here. You said that for energy, energy, you design, youre designing to get more valuable products from every barrel of oil and for coal and natural gas. You are the company that is allowing dirty, socalled dirty oil become clean gasoline, right . Well, we do a lot of things. For example, if you take a look at a barrel of oil, what you would see is everything that you want to get is out of there. The vocs, the gasoline, diesel, bunker fuel, asphalt, everything is in a barrel of oil. The real trick is to get as much of the valuable stuff out of that as you can so you dont need as much oil in total. Right. Right. Also means, how do you allow a barrel of oil to whatever you do refine to be, say, really low sulfur when it comes to ceasebe diesel or gasoline. China business is strong again. Yeah, we are doing very well in china. In fact, last year, china became our number one country for sales outside the u. S. And its all because weve been focused on becoming local or what i call becoming the chinese competitor. Our sales yeartodate and for the total year will be up about 10 today for china. You also, look, you deliver the numbers, Free Cash Flow plus 28 , how is that possible . No, honestly, come on. Im looking, people say, jim, why didnt you like the ge call this morning . I dont know, it was kind of okay. I need to see Free Cash Flow, you cant get that. Im a big cash guy myself. I know you are. I was surprised. We focused on cash for 12 years. Starts first with highquality earnings. Because if you dont have highquality earnings, youre not going to have cash. And as you know, were investing capex in the business, and with that, our cash flow has been very good and is going to continue to be good. Well, dont you think its interesting that a lot of companies i like dividends, you know that. The Capital Allocation wasnt the theme in this quarter in terms of how much dividend. Because every business, the dollar end of the business is giving you great return. Oh, were getting great return. Some of the Chemical Plant investments, when you look at the amount of money and these are 30 , 40 type irr projects, you say wed be in insane not to put money into this. This is going to generate an unbelievable return for our shareholders. What is it like right now in the gulf area, the refining . Booming. Its booming. When you look at Everything Else in the u. S. And you talk about unemployment or wage growth or anything else, its not the problem in the gulf. And id say the gulf has got two things. One of the things theyve done is, of course, they happen to be the locusts of activity for this. The other thing is, those states work very aggressively to be business friendly. Yeah. Thats what matters. The whole idea of, gee, business is a good thing for society or as you put it, we should be celebrating business. And im not saying everything we do is good. I understand that. But at the end of the day, if you take a look at our 200 plusyear history, the reason americans live so long is government enabled business to be successful. I dont want the environmentalists to think i know youre an environmentalist and im an environmentalist, i dont want anyone to think youre not involved in this. You mentioned algae is for real. How many years out . Oh, no, we can do that today. This is an amazing story. Yeah, this is really the ability to make oil, lets say a dropin diesel fuel that you can actually put in your car, you can put in a plane. Its not hazardous. It doesnt need to be blended, its not corrosive like normal biodiesel, this is the real deal, dropin replacement. We can make that from algae, seaweed, almost anything you guys, honeywell can. We can do this. Now, interestingly, the cost of processing a barrel of algae oil is about the same as it is for a barrel of petroleum oil. It really is. Its not the cost of processing. What are we doing . The issue is accumulation. So you look at the oil industry, theyve had 100 years. Right. Trillions of dollars, and theyve invested huge pipelines, super tankers, Everything Else. You take a look at the say algae industry or the agricultural side, where a 4inch pipeline was a big deal in the oil industry. It hasnt developed yet. Okay. And what it does, its real. But the government backs solar. Why isnt the government doing something on algae . Yeah, i would say the whole solar wind thing, as you know, ive always looked at it and said, it needs to get to a point where its not tax credits that make it effective. And thats why weve always been nervous about investing in those areas. Anything you have to depend on for the government to make it viable is not a place we want to be. But this is real. This is going to happen. But you have to be impressed that the deficit has come down. I know that youre oh, yeah. This is a nice direction for this to be in. We shouldnt confuse that, though, with the problem is solved. My generation is still retiring. Youre not retiring for ages, please dont mention the word retire. I love my job. But if you take a look at the baby boomers, we are retiring, and just that alone is going to swamp the system. And thats coming. Even if you look at cbo forecasts, you see it go down a little bit and goes back up again. Wow. Well, i know it does. But its still, its everythings on a nice trajectory right now. Certainly is. Honeywell absolutely is. You should read the pack. You should read the deck. Its what happens when American Business does it right. After the break, ill try to make you more money. Coming up, a different angle. From professional athletes to amateurs, everyone seems to love go pros wearable cameras. And that apparently includes investors as the stock has soared after becoming public. But is it too hot to handle . Cramers giving it a closeup. After a day where the market got dinged, what can you buy into weakness . How about a company thats gone out of its way to take control of its own destiny . Im talking about Martin Marietta materials. Mlm. Boring company, hey, how about a moneymaker . Maker of aggregates for the infrastructure and construction industries. Basically, Martin Marietta is all about rocks. Makes asphalt, concrete and cement. In the past, ive told you the aggregate business is picking up thanks to the rebound in nonresidential construction. I said its competitive of volcker materials. But earlier today Martin Marietta did something that put mlm right at the top. What happened . At the end of january, Martin Marietta announced it was buying Texas Industries. A texas and california based aggregates play that mainly makes cement, all stock deal worth 2 billion. This deal closed less than three weeks ago july 2nd. I think this is a transformational deal. Makes Martin Marietta a heck of a lot more attractive. Weve seen that acquisitions have proven to be a terrific way for companies to create value in this market. I think this texas industrys transaction of Martin Mariettas. I think it would be no different. Thats part of the reason the stock has rallied 25 , but the stock has pulled back seven points from the high in recent weeks. Thats why i want you to jump on it. More room to run. Not only does this acquisition give Martin Marietta greater scale, many opportunities for cost cutting, but more importantly, it gives the company a lot more exposure to the rapidly growing texas market. Now that the deal is closed, the new Martin Marietta gets 34 of the sales from texas, huge positive. Remember, texas is right at the heart of the current domestic oil and gas renaissance thanks to the huge finds in the eagleford and permian basin. Right now, all the oil and gas means were seeing a massive buildout in chemicals, natural gas facilities, drilling support structure. And all of this new infrastructure requires aggregat aggregates. And thanks to the acquisition, Martin Mariettas primed to get a ton of this business. Same time when Martin Marietta bought Texas Industries, they acquired a company with a lot of room for operational improvements. Historically, realized much lower prices than the competitors. Were talking about a 20 discount an average, 4 discount in cement. In part, thats because the strategy at Texas Industries have been to build out new lowcost capacity in order to boost sales. Martin marietta is changing that strategy. Their plan is to improve distribution and price discipline at Texas Industries, which should allow them to boost margins dramatically at the company theyve acquired. Weve seen this so many times, thats called consolidation. Oh, and the deal should generate 70 million in pretax synergies by 2017. So i really like what Martin Mariettas done with this acquisition. I wouldnt be recommending the stock if that was really the only positive. See the aggregate business is notoriously cyclical, meaning when the economys in bad shape, this industry suffers. When the economys improving, the earnings for companies explode higher. And this is right at the point in the cycle where you want to have an Aggregates Company in your portfolio. Now, we know that the Construction Business in this country started picking up dramatically. Look at the terrific performance of caterpillar in america. Or even better, last week united rentals, beautiful number. This is particularly true in texas, which is martin mariet mariettas backyard. Any kind of construction requires their wears. As you cant lay down a foundation without concrete, some other type of aggregate. Meanwhile, all the rock Companies Like this one are some extent dependent on the feds. Thats because a major part of the business is related to road building and dependent on whether or not congress can pass a highway bill. In 2009, the last big highway bill expired. And for years afterwards, washington couldnt get its act together and this stock languished. 2012, june, finally got a new highway built, authorized 24 billion annually. That money didnt really start flowing until a bit less than a year ago. The other thing is that in the 2012 highway bill, the government massively boosted funding for tifia. And it was a federal loan Program Designed to spur infrastructure investments. Before, the program was to the tune of 221 million per year. The governments providing 1 billion, 7. 5 infrastructure loans. Some people were worried that congress wouldnt be able to pass some kind of fix. But just last week, the house of representatives approved a 10. 8 billion highway repair bill which will provide enough funding for the next ten months. Itll easily pass the senate before they recess in august. Another reason i wanted to do this piece tonight. Last december, i told you volken and steam x were my favorites, but a month later, Martin Marietta announced the conviction. Since then, its outperformed both of the stocks. I believe that outperformance will continue as the market still isnt baking in all the benefits from the deal. Even up here, Martin Marietta trades at a 30 discount on 2016 earnings. That premium deserves to shrink and shrink dramatically. All that said, major caveat, Company Reports monday. Last time the Company Reported at the end of april, stock roared higher, not recommending this as a trade on the quarter. I like it as a longterm investment. I suggest you put half of your position on this week and if Martin Marietta gets slammed for some reason after it reports next monday, use the weakness to buy more, 2015s going to be real good. Heres the bottom line. Nonresidential construction is starting to rebound dramatically in this country. Likely to have a fully funded highway trust for the next ten months. Good news for the rock companies. Martin marietta thanks to the Texas Industries acquisition. Just remember that the Company Reports a week from now. Put part of your position on before the quarter. This is a longer term play, people. How about ken in illinois . Ken . Booyah, jim. Booyah, ken. Caller im interested in freeport mcmoran. I bought it when it crashed and sold it a couple years later. I think you should. My Charitable Trust is in it. The original spur for the idea came from the tremendous teacher of technical skills, and ive got to tell you, i think that this one has multiple years now that i think its finally gotten behind both the oil and copper company. And i really think it is the real deal. Living in a material world. I think Martin Marietta materials would give you rock hard profits. You may want to put on part of your position before the Company Reports on monday. Still more mad money ahead. Gopro had the it gadget right now. Is it a onetrick pony or more in store . And pacemaker player hit a new lifetime high. But then its pulled back, can it keep the momentum alive . Plus, whoever said lightning doesnt strike twice in the same studio never watched this show. This morning, this morning i ordered a kergo true fit smart dog harness with quickrelease buckles, large, black, im doing it so i can attach a gopro camera to the harness so i can see through the eyes of our two dogs, a pug and a mutt. I intend to get another to hook to a post so i can watch my string beans grow as they seem to twirl several inches a night on the stakes i put up this weekend. Then i plan to put them on youtube for you to see. I want people to know what bug and everest see. I want you to watch my string beans grow. Welcome to the eco system of gopro. The device maker thats going to sell millions and millions of cameras. Not just surfers, bmx bikers and skaters, but to sedentary folk like me. Why not . The stuff is as cool as all get out and i think itll interest people. Moreover, from jimcramer on twitter, people love my garden. Can you imagine if my gardens moving . I know i want to try out anything gopro has because i like the brand. I think its topnotch, pristine. In fact, i think that go pro works in a gazillion settings. Anyway, it worked for me as i dangled between a drill support ship and an oil platform in the gulf. And believe me, if kergo had a harness for a giant african tortoise, then cactus would be sporting one, too. That would make another terrific gopro short as she sprinted toward the watermelon. I like the products so much, but unlike everyone else in there buying, i cant purchase in the company because im not allowed to own stock and gopros not fitting for my Charitable Trust, a little speculative. Who knows what gopro is worth. I dont think its a fad, but i also dont know if many would buy more than one. Plus, lots of people seem to have no interest at all. The good news is, the companys making money. Rolled out numbers, give it a 53 priced to earnings multiple. Current growth could be much faster than that and 53 on the out year. According to a survey which shows theres a great deal of penetration ahead. Tam total addressable market. I hate investing with that sky high multiple because the downsides going to be enormous. I do know this thing is hot. And those who buy the stock will probably get to reap the benefits of a truly explosive coming quarter. Maybe even two of them as capture devices according to piper are quote, still in the early stages of growth. And this company is transforming again, quote, for the camera selfie generation to a content enabler. Think everest, think bug, think cactus. However, even piper admits there could be competition down the road and the growth may not stay as high as it is now. In the interim, i can see it as a great trade into the quarter, honestly, absolutely. The first real speed bump when the insiders can sell. Might be like twitter when the Insider Selling could hurt the darn thing. Thats so out in the future its kind of a bit of a who cares situation right now. What can i say . Gopros got real momentum, im not being facetious. At least for now, maybe thats all you need to know. And wait until you see those dog and string bean movies. Michael in connecticut, michael . Hey, jim, how are you . Im really good, michael, how about you . Not too bad. Listen, ive got a small position, and im thinking about adding to it. I want to know if the yield is safe. And if i should add to that position. What was the stock . Caller rrd. Oh, r. R. Donnelly. I like it. I think its been oversold, i think the company has a long range strategy. I would not give up on rrd. I think the yield is safe. Weve spoken to them, and i think its a pretty good situation. All right, not just a flash in the pan here. When it comes to shares at gopro, we wont know until the insiders can sell. But for now, its real. And that may be all you need to know. Standby, your calls are next on the lightning round. Stay with cramer. The cadillac summer collection is here. During the cadillac summers best event, lease this all new 2014 cts for around 459 a month or purchase with 0 apr and make this the summer of style. We do . I took the trash out. I know. And thank you so much for that. I think we should get a Medicare Supplement insurance plan. Right now . [ male announcer ] whether youre new to medicare or not, you may know it only covers about 80 of your part b medical expenses. Its up to you to pay the difference. So think about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans, they help cover some of what medicare doesnt pay and could really save you in outofpocket medical costs. Call now. With a Medicare Supplement plan, youll be able to stay with your doctor. Oh, you know, i love that guy. Mmhmm. [ male announcer ] these types of plans let you visit any doctor or hospital that accepts medicare patients. And there are no networks. You do your pushups today . Prepare to be amazed. [ male announcer ] dont wait. Call today to request your free decision guide and find the aarp Medicare Supplement plan to go the distance with you. Go long. In a we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. It is time it is time for the lightning round on cramers mad money. Rapidfire calls, you say the name of the stock, i tell you whether to buy or sell, and then the lightning round is over. Are you ready, skedaddy. Time for the lightning round on cramers mad money. Dave in kentucky, dave . Caller hello, this is dave from la grange, kentucky. Ive got a nice little gain in it. Im a longterm investor, not a trader, what are your thoughts on well, you said it all. If youre a longterm investor, you want to own sunoco logistics, its a darn good company. Lets go to ginny in california. Caller jim, im calling from Central California and a quick thank you for your kind and supportive comments about the Central Valley situation last week. Oh, we need rain so bad. Caller very appreciative. I loved when i lived in the Central Valley, its the best part of america. You need rain, though. Caller and you know i always wish you would come back, so i threw out the first pitch at the dodgers game. Can you imagine . I did. Caller it would be great. Well, ill tell you, im a super devoted fan. I have my fan club and im looking for other members. Oh, okay. Be in my fan club for you. I know you want my stock for today. And tumi is funny, i love my tumi bags, nothing but tumi, but i would not own the stock because retail is too hard. I would not say anything about kors, ive been shying away from retail calls its gotten too difficult to fathom. For now. Lets go to kevin in connecticut. Kevin . Caller booyah, jim. Appreciate what you do for all of us individual investors. Thank you. Caller question is, with all the equipment going on over gopro, and i heard you discuss it this morning. Whats your feeling on ambarella. Remember, i like gopro as a momentum trade. Okay . Someone says, oh, jim thinks sells at 50 times earnings. But its a good derivative, what can i say . Its probably going to go higher if gopro keeps going higher. David in texas, david . Caller hey, jim. You still like Sanchez Energy . Oh, yeah. Look, i just like i love they bought, they stole it, i think. Theyve got great property, sanchez is real good. I still think it could go higher. Al in new york, al . Caller hey, jim. How you doing . Real good. How are you . Got my stitches out today. Caller reynolds and lorillar. With big tobacco, wont regulators prefer cigarette prices to be prohibitively expensive . Look, i think that the acquisitions really good. Thats what you have to worry about. Dont worry about the damages. And i said to david faber today, may be an opportunity to buy reynolds now its come down. I think you should buy reynolds, i dont like smoking, im not endorsing smoking, i hate smoking, but they dont know whether you own the stock or not. Booyah, jim, from las vegas, nevada. Nice. Love vegas. Whats up . Caller Gw Pharmaceuticals. Everyone, its like, listen, guys on jimcramer on twitter, im not going to reiterate i like Gw Pharmaceutical every day. I like the idea that they have that drug i think is going to be used in many different applications. I am not here to buy gw fpharma. I like the stock, not much more to it. Renato in pennsylvania. Caller booyah, jim, thanks for taking my call. My pleasure. Caller i know youve been bullish on the airline. And in particular, american airlines, i wanted to know if you think its still a good time to invest, or did i miss it . They report this week, theres always somebody that comes out there and says it wasnt good enough number. I just say own american air. I think you can earn 6, i think its selling at a very low multiple given the fact it can earn 6. I like the stock. Lets go to wisconsin, the fracking sand state. Leo . Caller yes, leo here okay. Caller im calling you in reference to my american movil. People looking for a way to play it. And i dont blame them at all. Brazil and mexico have real momentum going right now, and i like them both and i think american movils a great way to play. And that, ladies and gentlemen, is the conclusion of the lightning round. The lightning round is sponsored by td ameritrade. Jim cramer, youre one of my heroes. I look forward to your show every weeknight. Thank you so much for helping beginning investors like me. When you talk about the market, i just believe that youre spot on. Oh, i love it. Thank you so much. Every night we watch you. I have learned and earned. Who found a magic seashell. It told him what was happening on the Trading Floor in real time. The shell brought him great fame. But then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their Trading Platform. So the magic shell went back to being a. Shell. Get live squawks right in your Trading Platform with thinkorswim from td ameritrade. Get live squawks right in your Trading Platform at every ford dealership, youll find the works its a complete checkup of the services your vehicle needs. So prepare your car for any road trip by taking it to an expert ford technician. Because no matter your destination good maintenance helps you save at the pump. Get our multipoint inspection with a Synthetic Blend Oil change, tire rotation, Brake Inspection and more for 29. 95 or less. Get a complete vehicle checkup when a Company Reports a Strong Quarter and stock goes lower, should we be concerned . Or maybe its a weakness as a buying opportunity situation. Thats the question facing st. Jude med, the cardiovascular medical Device Company that makes pacemakers, vascular plugs, drug eluding stents. St. Jude had been on fire. Rallied 17 in 2013, up another 8 yeartodate. Thats because this is a terrific business. Company controls a quarter of the management business and it has a fabulous pipeline and new products that should boost sales and earnings for years to come. Lately, though, the stocks been punished, dropped down to 67 today. Last wednesday, st. Jude reported better than expected, 2 cent earnings beat off 1 basis, rose 3 yearoveryear, the Company Raised its fullyear sales and earnings guidance, but some people say its its prediction for the next quarter was to the downside which is why the stock went down on the news and hasnt been able to find the footing since. Theyre seeing serious competition in the management business. Is st. Jude a buy into the recent pullback . Lets take a closer look with daniel starks, the chairman and ceo of st. Jude med, find out more about the quarter. Welcome back to mad money. Booyah, jim. Thank you very much for having me on your show, i feel very privileged. Thank you, dave. Youve made two acquisitions. Both of them, i think youre going to substantially change the st. Jude med we think of right now. Can you give me what the Company Looks like in 2015 versus right now . Well, our goal were not giving guidance yet for 2015, but in 2015, we expect to have the benefit of a number of new products that we look to to help accelerate our sales growth on a sustainable basis. The most important of those new products relates to one of our recent acquisitions. Thats our acquisition to cardio mems. And its a potentially Breakthrough Technology to help physicians reduce the level of hospital readmission rates for a very population of Heart Failure patients. We have a very significant Clinical Evidence that demonstrates with the benefit of our technology, technology that is available only from st. Jude medical, that we can reduce the level of revolving door Hospital Readmissions for a certain class of Heart Failure patients by as much as 37 . So this is something that is good for patients, its good for payers, its good for Health Care Economics all around the world. And thats in part because right now you have to if youre a hospital company, youre worried about the penalty if you dont get that reduction, right . Youre exactly right. Medicare and we expect private payers to follow has a program specifically designed to penalize or reward Health Care Providers depending on the relative readmission rates that Health Care Providers have for a class of diseases. The most important of which is Heart Failure. So not only is this Technology Good for patients, but this technology is very significant for Health Care Providers in the United States because of the Medicare Hospital Readmission Reduction Program that provides for a very significant penalty of all medicare reimbursements for that Health Care Provider if that Health Care Provider readmits has less success keeping Heart Failure patients out of the hospital. And thats exactly what our technology is designed to do. Its designed to help Health Care Providers keep Heart Failure patients out of the hospital by staying ahead of the disease in a way that helps the patient feel better, as well as helps reduce the number of times that a patient with advanced Heart Failure returns to the hospital. I think its just gigantic for st. Jude. I have to ask you as i discuss this with my friend david faber in the morning. St. Jude got hit by the excise tax, which was unbelievable. Do you feel disadvantaged by the fact that medtronic is changing its tax regime by buying kovidian . Well, were simpympathetic t the trouble they had and its attempting to solve with the maneuvers recently made public and this inversion and becoming a Foreign Corporation rather than a u. S. Based corporation. Were sympathetic to those problems. Any time one taxpayer reduces its tax burden through a maneuver that may reduce taxes, we always are concerned about increasing the burden on the remaining taxpayers that are continuing to pay a full share of taxes. A consideration for us. But i think the bigger issue is the u. S. Corporate tax policy generally. Its because of a such a burdensome. We have the highest Corporate Tax rate in the world. We have its a significant disadvantage for every u. S. Based company. Medtronic works to improve its position with the by becoming a nonu. S. Based company. We wont do that. Well continue to be a u. S. Based company, but well continue to work through the appropriate channels to to help develop u. S. Corporate tax policy that makes more sense and increases the number of jobs we can help create here in the United States that helps us continue to improve the volume of exports where one of the leading exporters, the medical Device Industry in the United States is one of the leading export industries. The last number i saw, the favorable balance of trading to the tune of about 46 billion not an industry that should be penalized with high taxes the excise tax. I totally agree with you. Dan said the same thing the secretary of treasury last week, i want to thank you so much. I think the Company Looks terrific for 2015, which is the way our investors should be thinking about. Thank you so much, dan starks, chairman, president and c ceo of st. Jude medical. Thank you for coming on. Thank you. People dont think about the next month. Think about the next year. Its real good. Mad moneys back after the break. Nope for real theres two dudes on the state farm borrow Better Banking sign. [ reporter ] breaking news from the state farm borrow Better Banking sign. Were seeing two men that have climbed the borrow Better Banking sign gentlemen please get down from the state farm borrow Better Banking sign. Phil get the hose. Okay hes getting the hose. Alright, lets go. [ male announcer ] talk to a state farm agent about car loans that can save you hundreds. Thats borrowing better. After the close, apache, calling for a restructuring, that stock, we like it very much. This is gopro week on jim cramers mad money. Im going to continue to show you things like gopro with my beans, gopro with my dogs. The footage hasnt been made yet and maybe ill show it to you first on youtube. Hmm. I always like to say theres always a bull marsomewhere, always a bull marsomewhere, i promise to its called the social drink the one we cant live without, the one that gets us through the day. Its booze without the booze. Its a passion. An addiction. A shot in the arm for a nation short on sleep. There you go. Have a good one. And a drink that spans generations. Maxwell house. Good to the last drop. The only kind i sell. Off the shelf and at the counter. Small latte and a small iced latte. More coffee is consumed in the u. S. Than in any other country 400 million cups of it every day. You know, you think a baby having a bottle or something, you know, like how that comforts you. Thats how coffee feels to me. [ indist

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