Expectations. When the expectations are not so great, stocks can really rally, as they did today in a glorious overall win for the bulls, with the dow roaring 188 points. And the nasdaq skyrocketing 1. 75 . Of course, dickens has it right in both directions. Those stocks, where there were, in fact, great expectations, a la the stephen king of the victorian era, and the company failed to deliver, or if the stock has run up but didnt beat the numbers handily, well, those got taken into the wood shed. Yes, during earnings season when stocks are flying all over the place and youre trying to figure out whats going on, you need to know what people are expecting, because the expectations themselves, not the numbers, often decide the direction of a companys stock. We need to drill down on this, in part because the stock market is not inherently rational on a momenttomoment basis. Yes, the market can be stupid on a given day. But it does tend to come to its senses. Let me give you examples starting with a classic household name, whirlpool. Heres a company that reported, and immediately the headlines announced it horrible. It was a total dud. Misses own revenues. Thats what i read within seconds of when whirlpool reported. The stock immediately sank three points, but upon further review, is it all that horrible . Hardly. Because everyone i know expected them to blow it. I mean, blow it bigtime, as whirlpool has a huge latin american business, which was thought to be a black hole because of all the problems down there. Nope. Whirlpool had a huge quarter in latin America Thanks to very strong operating margins and the company also increased its cash flow output. In short, a company that was supposed to screw it up, didnt, and voila, the stock rallied six points. 6. 77 . Or how about Buffalo Wild Wings . Yeah, b. W. This is a total battleground stock. Bulls like to think of it as a National Expansion with a likable simple formula that works all over the country, and leave it to sports and beer, two Great American pastimes. The bears like to think of it as a play on wings. Wing prices have skyrocketed this quarter, which caused many to expect the company to report a dramatic shortfall. Whoops. Buffalo wild wings announced a terrific guideout, not guidedown, coupled with a 3 menu increase. Wow, demand must be pretty good. There goes the bear case. A bumper chicken crop in 2015, which should indicate crater increase t. No wonder a 13 gain. Might have more on squawk on the street. You never heard a good word about china these days, do you . Theres a perception that the peoples republic is slowing down than a faster pace than anybody expected, which is why cummings has dropped from 160 in june to the 120s not long ago, and then today the Company Reported and guided the numbers higher, not lower. How could cummins possibly do well . It turns out those who only look at china forgot about the united states. Where recovery is occurring far bigger rate than people thought. Hey, you know what . Thats how you get a ninepoint gain in a single session. 6. 8 gain. When parker announced a big boost last week and the stock jumped 7 , i said i was disappointed that the cleveland industrial didnt wait until it reported to tell us all this good news. Yet results were even better than anyone imagined. The stock advanced another five bucks, a testament to how beaten down the industrials were ahead of earnings season. Or how about Spirit Airlines . Do you know that two weeks ago this company cut its forecast for the quarter to be announced today because of an underpayment of fuel excise taxes. When i read that, i said oh, my. Spirits going to get crushed. How could its earnings not be so strong as to make up for this lapse . How could that not happen . Others must have felt the same way because the stock got crushed. Also because of ebola. And subsequently sold off ten bucks. But it looks like the tax lapse really was meaningless. Spirit shot the lights out when reported today. And it rocketed 4. 4. 50. Stocks soared. Even huge stocks like apple can rally dramatically when they roll out an unexpected needle mover. There were a ton of people who didnt expect much out of apple pay. They didnt think it would be a big deal. Talk about low expectations. Now we find out that one Million People have already signed up for the payment season. I think customers will demand that merchants accept apple pay. I wouldnt be surprised to see walgreens take from rivals. I bet the stock is going up because apple could be the next big thing for a company that was supposed to be out of next big things. Now, of course, the flip side. Sell, sell, sell. Yeah. Not that long ago, kohls announced it was going to have a big Analyst Meeting as part of what looked like the revival of a humdrum retailer. Last month, citigroup put out a piece entitled calling a juicy inflection connection, upgrade to buy. This morning we got an inflection point, but it was a negative one. Kohls announced on the sudden downturn. It was devastating and the stock tumbled nearly 4. Thats what happens when the expectations get too great. Twitter was felled by great expectations, too. The companys growth was accelerating going into the quarter because of a series of changes. Nope, not at all. Hence, the stocks hideous clubbing today. More on that later in the show. Then theres the sad case of masco, polar opposite of whirlpool. Three weeks ago they announced a gigantic 50 million Share Repurchase plan. Only 350 million shares out there. Yet this morning it reported a shortfall. Masco had high expectations. Explains everything. Finally, there is the unfortunate case of facebook, which had run right into its alltime high this session before it reported a quarter that people seem to have hated. That meant anything caution nark including some obvious concerns, lighter revenues, not so hot hikes. As well as some locked up stock sent the stock cascading in afterhours trading. I didnt think it was a fiasco like twitter, but its a real bad bruising, because both the stock and the expectations were both so darn high, there was no way facebook could be equal to the task. I predict downgrades in negativity tomorrow. Charitable trust owns it. Been saying take profits, but you never take in another profits when the stock gets hammered like this one. Every single day this market is made up of small unit skirmishes like this. People have been betting that the cloud is overdone. Morgan stanley makes the best idea and jumps a couple bucks. Gopro had been in prefall. Google had been tumbling after its disappointing quarter, but ever since yahoo talked about how hard search and advertising has been, people. Bidding up google. Now, facebook, hideous decline, but it wouldnt shock me to be like google a few weeks from now. Nevertheless, this market marches to the tune of expectations, and if companies can keep them low enough, or if the market pummels their stocks too much ahead of the quarter, you get a visceral, vicious reaction either way. Heres the bottom line. Today we got blowouts where we expected little. Tomorrow, it looks like were going to get hammered because of some stocks that didnt blow out the numbers today. But lets give this market its due. Monster bullish moves define the incredibly bullish session. I think tomorrow will be a different story. How about chuck in florida, please. Chuck . Caller how you doing, jim . Booyah. Booyah, booyah, chuck. Whats up . Caller i just had a question about the jcpenney. What are your thoughts on that, the stock, and also the announcement of marvin ellis . I feel that jcpenney is under its just not going to be great stock for now. It looks like when kohls reported something that kind of verified how jcpenney is having a tough time, it made me think that these classic Department Store retailers are not the place to be. Im not crazy about jcpenney. Its not great, not bad. How about john in illinois, please. John . John . Caller hey, jim. John. Whats up . Caller hey, i need your help, buddy. Sure. Caller last week, klac announced a special dividend of 16. 50 per share to be paid by the end of this calendar year. If i buy shares tomorrow, are the shares eligible for this special dividend . I believe they are, but i dont want you to do that. The stock has moved dramatically. Weve got to find another stock to buy. That ones already played out. I dont want you going there. Lets go to jennifer in ohio, please. Jennifer . Caller hi, jim. Hi, jen. Caller i know youre not a fan of gopro, but i bought the stock the second day of trade, and im up 108 on it. Do you suggest i hold it . I think its going to be a good Christmas Season for them. Im a little worried about retail. I know theyre sold out of a new of the new gopro hero. I loved it when it became public. Then it got to the 90s, and i said enough is enough. Then i tend not to look back, frankly. Look, its a market of not so great expectations. And theyre beat. You get the kind of glorious rally we saw today. But tonight, facebook not so good. It will be a new page tomorrow. All right, is the street spooked on twitter . Should you just stay away . Well, also, theres a smooth ride hire for Spirit Airlines that reported just this session. Can it continue to gain attitude . Ive got the ceo. But first, call it a comeback boy. What a difference two weeks makes. Find out what something called a dragon fly dogi has to do with the markets rebound and where we could be headed by year end. Thats next. 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. Will the feds still end qe . Steve leaseman live with the fed decision, 2 00 p. M. Eastern on decision, 2 00 p. M. Eastern on cnbc. Rthat i take metamucil because it helps me feel fuller between meals. Its just one small change that can help lead to good things. Now shes breaking up with the vending machine. Nope. I call that the meta effect. [ female announcer ] 4in1 multihealth metamucil now clinically proven to help you feel less hungry between meals. And promotes heart health. Experience the meta effect with our new multihealth wellness line and see how one small change can lead to good things. How can we figure out where the broader averages are headed . You know that one of the key boxes on my checklist for an investable bottom was the technicals. We needed to see the charts turn positive before stocks could start rallying again, which is exactly what happened. But now weve rebounded nicely. Its time to go off the charts with Dan Fitzpatrick, a brilliant technician, my colleague at realmoney. Com, to get a sense of what could be ahead for the major averages. Fitzpatricks view, he thinks weve got a classic selling climax, a technical term, back on october 15th when the market sold off viciously, and then we got a dramatic entry day reversal on high buying. Since then, though, the averages have rallied dramatically. And now fitzpatrick thinks that theyve become overbought in the short term. Which is something he says strong markets do. But nonetheless, it means we could be due for a pullback. But again, fitz expects that any pullback is likely to be shortlived and he says you should buy the dip, even as he believes this market will be rangebound for some time as it builds a base, before ultimately resuming. You can see something pretty similar in all the major averages, so lets take a daily look at the s p 500. First fitzpatrick points out that the s ps multiyear up trend decisively broke down earlier this month. Multiyear. As the decline picked up speed, it did so on higher and higher volume. This kind of high volume selloff is always significant panic. But when investors panic and dump everything, it ultimately leads to a fabulous buying opportunity. Weve got this selling climax nearly two weeks ago on october 15th, and notice this was always the same day that the volume peaked. Same day. Fitzpatrick points out that this day of all of the major indices reversed at 1 30 p. M. It was as if a massive buy program suddenly hit the table. Or you could argue the sellers probably disappeared. When you take a close look at the action on october 15th, it shows a very long tale. Check this out. Where the s p fell to an extreme low and then reversed to close near the high of the day. This is one section, okay . Fitzpatrick says that this is whats known as the dragon fly doji. Its a reliable bullish reversible pattern. Precisely what happened, right there. That was it. That was the crescendo bottom, is what i used to call it. From that bottom, the s p 500 has now rallied 9 . At these levels, fitzpatrick believes it is overbought. At least in the short term. And you can see how Trading Volume has been declining, indicating that the big boys are not accumulating stock with any particular fervor here. Meanwhile, the s p has a ceiling resistance at 2020. Okay . 2020. Thats roughly 30 points above where we are right now. Fitz doesnt believe well be able to breakthrough that ceiling without first seeing some kind of pullback, so this argues that were going to retrace a little bit here. At the same time, he also thinks any decent sized pullback will be worth buying. When the s p broke down earlier this month, it fell, but the s p only stayed below its 200day moving average for seven days before breaking back out. Theres the seven fabled days above this key level. Thats why fitzpatrick believes the s p 500 should be bought any pullback for the twoday average, which is slightly above 1,900 right now. How about a weekly chart of the Dow Jones Industrial average, that i know a lot of you still follow. Just like the s p, the dow sold off hideously early this month, falling below the 200day moving average. Okay . 200day moving average is in red. Fell below that. It bottomed in the exact same day as the s p. But the dow hasnt rebounded back nearly as rapidly. It only rebounded above the 200day moving average last friday, and were still a decent ways off from the dow ceiling of 17,350. So will the dow keep climbing making higher highs until it tests that resistance line . Fitzpatrick doesnt think so. In his view, its far more likely that the dow will fail to tag this up trend resistance line. Wow. Wont hit it. However, if that happens, fitz says it merely reveals that the dow is entering a period of consolidation. Charters will sometimes say that the dow needs to do some work. That is code for its healthy for the market to churn for a while, flop and chop, i call it. And allow the volatility to subside. And the investors can redeem some confidence that might have been lost for the plunge. Since the dow had a floor of 16,000 support, which is where it bottomed in april and roughly where it bottomed this month, fitzpatrick expects it to trade sideways for a while, bouncing between 16,000 and 17,350 as it consolidates. Thats the pattern hes expecting. What does fitzpatrick think about the nasdaq composite . Wow. Taking a gander at the nasdaqs daily chart. He notes before the big breakdown from mid august to mid september, so youre looking through here, the nasdaq traded in a tight range before peaking at 4,600 where it put in a shortterm double top. Why does that matter . Because that level, where we peaked, can often become a ceiling of resistance. And fitzpatrick thinks thats exactly what will happen with the nasdaq. Todays rally took this index right into the battle zone. Less than 50 points away from the ceiling at 4,600. Ever since the nasdaq composite started breaking down a month ago, all the traders who bought from august to september now feel trapped. Theyre really waiting for the nasdaq to return to levels where they bought it so they can get their money back without taking a loss. Thats the way big traders think. Hey, get me back to even. Thats what you always hear in the trading pits. Given that the nasdaq rebounded above 4,500 today, fitzpatrick believes this is about as high as it will go right here, right now, because we have all this hidden supply from traders who bought at this level in august and september and are likely to sell, not buy. And thats not the only reason fitzpatrick thinks the nasdaq might have trouble heading much higher. The index has advanced early, 11 in less than two weeks. Thats a terrific rebound. But now the volume is declining. And remember, volume is like a polygraph when it comes to the charts. When a volume is low, it tells you a move might be deceptively low to maintain. Fitzpatrick thinks its going to be tough for the bulls to push this index through the ceiling at 4,600 without first taking a bit of a rest. So, with the dow and the s p 500, fitzpatrick expects the nasdaq to consolidate for quite some time. That said, he thinks its worth buying on any pullback to the 200day moving average currently at 4,300 because he doubts well be revisiting the october 15th lows, and even if we do, well likely rebound from those levels all over again. Heres the bottom line. When it comes to the s p 500, the dow and the nasdaq composite, the charts as interpreted by Dan Fitzpatrick, indicate that after a period of intense volatility, things are about to get nice and boring again with the averages trading sideways as they consolidate their gains for the past two weeks. And any pullback will once again be a buying opportunity. You know what . I find fitzs benign view pretty reassuring. Theres much more mad money ahead, including the discount air carrier that flew higher today. Should you be booking this ticker along with this ticket . Then adco is buying back their own stock hand over fist. But first, you saw how twitter reacted in todays trading. Ill give you the real story. Stick with cramer. I have listened endlessly to the cat calls about how marisa meyer, the ceo of yahoo, isnt focused, that shes not created anything, not reversed the tide, not this, not that. I think the heats being directed at the wrong person. Todays market, lets say today marks a real important turn. As of right now, meyer has tripled the price of yahoos stock. Shes done so through capital management, mainly making peace with alibaba so she could hold back a huge number of shares that yahoo earns, 122 million, to be exact, from having to be sold on the chinese giants epo. You have to appreciate meyers foresight in avoiding the sale of these 122 million shares at 68 that the Company Offered them. Remember, she could have ended up selling many more shares than she did. That was the original agreement with alibaba before she came in, but her decision to fight to hold back that stock is looking pretty darn shrewd. At the same time, lets not forget she bought back 193 million shares at an average price of 26. 37, including 40 million shares from the noted activist, at 29. 11. Lobe did well out of the deal. But with yahoo now trading at 45. 85, mayers purchase was downright brilliant. But, of course, no credit for doing that. As she stated on her Conference Call, she helped to boost yahoos earnings per share by 50 year over year, making smaller acquisitions to boost viewers. Its all been pretty positive for mayer. Yep, yep, yep. Theyve been eviscerated by googles efforts to. Which brings me to twitter. Last night, twitter reported a number that looked good on the surface, but showed slower user growth and engagement than expected. With Sales Guidance that i found downright puzzling, to say the least. Overseas sales have slowed. Timeline views, which management said were ultra important the last time the Company Reported, they fell by 7 . Meanwhile, twitter is spending fortunes to earn just a penny per share. Company indicated the revenues are already slow, something thats not supposed to happen this soon in a Growth Stocks life cycle. As a very smart downgrade, our longterm estimates decline materially as slower user growth, a couple of potentially unsustainable growth in ad prices eventually lead to significant lower revenue and earnings estimates. Given the stocks already skyhigh valuation, there was really no room for that kind of disappointment, which is why twitter was slaughtered today, down almost 10 . A huge hit to my charitable trust. Unlike Marissa Mayer, who has a very good defense of what shes done in yahoos latest Conference Call, i found twitters ceo dick coslo to be downright incoherent. I have no idea what hes trying to accomplish or even what he was saying. But where are all the calls for his head after the shocking deceleration . Twitter should be adding millions and millions of viewers and becoming the worlds de facto personal muse service, but the decline in User Engagement is showing the opposite. Let me give you my bottom line. I think whats directed at mayer is misplaced. What more does she have to do to shut the critics up . Instead, some of this vitriol should be at costolo. I think the free pass should end right now, right here for dick costolo, while Marissa Mayer deserves the benefit of the doubt more than ever. Time for someone real to come in at twitter, make hay, before the sun starts setting on this gem of a company. Matt in california. Caller how you doing . Im doing good. How are you, matt . Caller pretty good. Yelp recently announced q3 revenue up significantly from last year. How come the stock isnt up higher . A lot of the metrics werent any good. Jeremy stoppleman should come on the show. I couldnt figure out whats going wrong with the numbers, but they were not what i was looking for. And jeremy should come on mad money, hes been here once before, and tell us whats going on with yelp. Because if its such a great story, why not come on mad money and tell it paul in new york. Paul . Caller hey, jim, thanks for taking my call. Sure, chief. Caller my question is i have a dividend portfolio that i use just for income to buy Growth Stocks. I was thinking your thoughts on century link. How safe are the dividends . They already cut them once. Looks like things are doing better. But i dont like dividend cutters. I like dividend boosters. I suggest you swap out of that one and go into verizon, or at t for that matter. Century links business got a little better lately, but you know what . Ive got to have a little more lets say sleep at night confidence, which is what verizon gives me. Memo to the haters. Yahoos Marissa Mayer knows what shes doing. But twitters costolo, puzzling. Theres much more mad money ahead, including my exclusive checkin with the ceo of Spirit Airlines. Theres a guy who knows h s how run an airline. Adco has been struggling to harvest any gains this year. Im Digging Deeper to see if theres any hope for growth. A few stocks are down. Plus im taking your calls. Lightning round is coming up next. Stick with cramer. receptionist gunderman group. Gunderman group is growing. Getting in a groove. Growth is gratifying. Goal is to grow. Gotta get greater growth. I just talked to ups. They got expert advise, special discounts, new technologies. Like smart pick ups. Theyll only show up when you print a label and its automatic. We save time and money. Time . Money . Time and money. Awesome. Awesome awesome awesome awesome all awesome i love logistics. Where the reward was that what if tnew car smelledit card and the freedom of the open road . A card that gave you that im 16 and just got my first car feeling. Presenting the buypower card from capital one. Redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac with no limits. So every time you use it, youre not just shopping for goods. Youre shopping for something great. Learn more at buypowercard. Com you want more proof that nobody ever made a dime by panicking, just take a look at the airline stocks. Got crushed earlier this month because of overblown worries about an ebola outbreak, slowing down the economy. Since come back with a vengeance, rebounding like crazy over the last two weeks. Turns out the disease is much harder to catch than many people feared. Meanwhile, even as the market was panicking about ebola, the price of oil was plummeting. Now that earnings season is upon us, weve seen very strong earnings to the major carriers. But tonight i want to circle back to a Smaller Player thats one of my favorites in the space. Spirit airlines, the aptlynamed ticker s. A. V. E. , spirit is in a different business model. Its the largest of the ultra low carriers. This company is the lowest cost in the industry, as is cost per available seat mile, excludeing fuel, 10 below even other low cost carriers. The idea is simple. Spirit charges the lowest prices for nofrills flights, packing as many customers as possible into a given plane and making people pay extra for everything beyond the actual suit. Thats how spirit managed to turn a profit for years, even before the recent consolidation in the industry. Cheap oil is just icing on the cake for these guys. The company just reported a monster quarter this morning. Threecent beat. Inline revenues that rose 13. 8 year over year. This is airline stock. A and in just the last two weeks, its rebounded dramatically from 53 up to 71. The stocks giving you a 22 gain since we last spoke to the ceo six months ago. I think well have a lot more going forward. Lets check with the president and ceo of Spirit Airlines. Different kind of guy, different kind of airline. Mr. Baldanza, welcome back to mad money. Great to be back with you, jimmy. Booyah. Booyah back. I bet ive never heard you this upbeat. Youre an upbeat guy. But it looks like everything is coming together. The other airlines are all raising price. You have a pricing umbrella that it looks like people are just loving right now. Well, we always work on trying to lower our price. Every night before i go to bed, i think how can we make the price lower . Thats what were in business for at spirit. When i first met you, you were in a place that other guys didnt want to go. You are opening up dallas, chicago. Your model works even headtohead. You know, we look for places where theres a lot of people. And obviously a lot of people live in big cities like the ones you mentioned. And what we find is when you connect two big cities, theres lots of traffic that is willing to fly if the price is right. So we look for where theres a lot of people traveling but paying high fares. When we come in with a lower price, we can find more people that are willing to travel and those are the people we carry on spirit. One thing is certain, ben, this ebola thing. I was thinking maybe its the news media. Your planes were packed this whole period, werent they . Yeah, they were pretty much packed the whole period. Weve really seen no impact due to ebola on our bookings. All right, now, ben, im a little worried. Im worried because im seeing this friendlier spirit 101 policy. Now, were used to just the bare bones. Are you starting to pamper travelers . Well, mostly what we want to do is make sure travelers understand who we are. So spirit 101 is all about better aligning the customer expectation to the reality of spirit. We have customers, for example, who really buy us because they really like our low fares, but theyre surprised at some of the things we do. We want to make sure they understand exactly what were going to do, or the fact that we charge extra for bags, or to print a boarding pass at the airport, and such. So what were really trying to do is help People Better understand the business. Were not changing the business model. Were making it more understandable for customers. Ben, i would have thought this long after the Great Recession, people would start thinking, you know what . Im willing to spend a little more. It seems like as we get further from the Great Recession, the frugality mindset takes hold even in younger people. I mean, isnt this kind of reverse what you would have thought coming out of the Great Recession . Well, you know, in every market, jim, weve found that theres a set of customers who are looking for the value play. Now, in a real strong economic environment, maybe thats a smaller percentage of the market. Of a larger market. In a weaker economy, or a weaker economic environment, it might be a larger percentage. But theres always a group of people who want to eat at mcdonalds, who want to buy the cheapest car, who want to get to where theyre going for the lowest price, and thats where spirit sort of lives, in that side of the business. And so the difference really is if you care about price as the main reason youre choosing your airline, spirits a really good play. If youre looking for more creature comforts, you can probably find it a little bit more in some other airline. One last question. I know that a lot of the airlines were crowing about the lower price of gasoline. You mentioned in passing, its not what youre about, but it sure does bring a lot more money to the bottom line, doesnt it . Well, certainly lower fuel prices help in the short term. In the longer term, the industry has benefited a bit from higher fuel. Thats going to sound strange for an airline ceo to say, jim. But its benefited in that what its done is created capacity discipline thats been good for the industry. It created some of the consolidations weve seen. And its created an economic stability for the whole industry. Lower fuel prices in the short term are absolutely good for us and good for the industry because it allows us a little bit of breathing room on what is generally a fairly thin margin business, even though at spirit, we found a way to expand those margins a little bit. So were a really fuel efficient carrier and we plan to make money whether fuel prices stay high or low. In the meantime, were going to enjoy these low fuel prices. Youve changed the whole template. I you were a margin play and a frugality play and youve done a fantastic job the whole time that weve been together. I want to thank you, ben baldanza, the president and ceo of Spirit Airlines, for once again delivering a fantastic quarter. Great to be with you, jim. This guy knows how to run an airplane. Ben baldanza. This spirit air symbol s. A. V. E. , it is going higher. Maybe much higher. Mad money is back after the break. Tomorrow, kick off the trading day with squawk on the street. Live from post nine at the nyse. Ill give you another one. Iverson. Practice . Not a game. Practice . This is like no, see, it is a game, costolo. It all starts at 9 00 a. M. Eastern. Theres confidence. Then theres trusting your vehicle maintenance to ford service confidence. Our expertise, technology, and high quality parts means your peace of mind. Its no wonder last year we sold over three million tires. And during the big tire event, get up to 140 in mailin rebates on four select tires. It is time. It is time for the lightning round are you ready . Time for the lightning round. Lets start with jason in washington. Jason . Caller whats up, badabing, badabooyah to you. Excellent. Caller my stock is gmc. Where do you think its going . I think gmc has to merge with vitamin shoppe. Without that, too much competition. Gio in north carolina. Caller a big charlotte uptown booyah to you, jimmy. How you doing . Caller im doing all right. Best in class financial with you, great price of earnings, great Third QuarterEarnings Call last week. Goldman sachs. Goldman sachs is very interesting. After they reported that quarter, the stock got completely obliterated and people thought about it a little bit more and said thats not so bad. This is a common pattern now in this quarter including what we saw with google. I think we might see it with facebook. I think facebook starts creeping back up. This is a new pattern. Lets go to john in new york. John . Caller hey. Let me give you a boomer sooner scooner booyah to you. Got that when we were in oklahoma and when we were there in 2009. Caller i purchased agios, kind of kicking myself in the tail for not buying more. Anyway, my dilemma is with the Conference Call due next friday. And the stock having run so hard. Do i a la Steve Miller Band take the money and run . I think you take some off. Its been a monster call. I think that when you i mean, just give you an example with facebook. Its really on my mind. We sent out a bulletin saying listen, the stocks too much. Its too high. Take some off the table. I feel the same way about agio. I really like it. This is not palo alto where im saying listen, just declaring victory and moving on. I just think some of this has to be taken off because i cant let a gain turn into a loss. Lets go to cat in oklahoma. Cat. Caller hello, professor. Hey, cat, how are you . Caller you are the rabbi of revenue. I just want to thank you. I bought rice energy at 30. Right now, that is one of the situations that is challenged. If you see oil go to 75, people are going to say rice is not going down. I think that oil is going to stabilize here and i think youre okay with rice product. Dont want to buy more now. How about matt in north carolina. Matt . Caller hey, jim, how you doing, buddy . Im doing all right, how about you, matt . Caller im doing fine, thanks. My question is about fireeye. A new deal from mobile iron. Does fireeye stay in its trading range or move higher . I have now said that i thought that palo alto got too expensive. I am more interested in fireeye down here. Did move two bucks today. I like cyber arc best of all. I like fort net, too. Lets go to brent in tennessee. Brent . Caller yes, jim. Good to hear from you. Im glad to get your program. I enjoy it very much. Thank you. Caller i was wanting to know what you thought about haliburton. I think haliburton has just been just crushed here as people are worried about whats going to happen with drilling. I kind of like haliburton right here. Its got a big buyback. Very well run. Stocks have been crushed. Just annihilated. That means to me buy, buy, buy david, how can i help . Caller i recently bought a stock, its up 10 on no news. You always say bulls make money, bears make money, and pigs get slaughtered. So how high can Isis Pharmaceuticals . I think it got slammed. Dr. Stanley cook has had some real breakthroughs. I am not willing to part yet with Isis Pharmaceuticals. And that, ladies and gentlemen, is the conclusion of the lightning round the lightning round is sponsored by td ameritrade. In a world thats changing faster than ever, 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. What to you do when a Company Reports a mixed quarter thanks to an overall lousy environment, yet its stock goes higher . Thats the question when it comes to adco, the Third Largest districter of Agricultural Equipment in the world. When crop prices are down, farmers spend less money on equipment. However, in the past few weeks, corn and Soybean Prices have both begun to rebound, in part because high meat prices are causing greater demand for corn and soy to feed livestock. When adco posted this morning, the Company Posted a 9 earnings beat. Gco posted this morning, the Company Posted a 9 earnings beat. However, even though these numbers beat expectations, agco still saw softening equipment demand, and it implies the sales and earnings next quarter will be weaker than the analysts have been forecasting. In response, agco stock rallied. That got me thinking. Perhaps agco stock has come down to the point where theres nowhere to go but up. Maybe that fouryear guidance is conservative, given that this company has managed to report two consecutive earnings beats in a very tough environment. Meanwhile, the companies right in there consistently buying its own stock. In the first nine months of the year, they bought back 6. 4 million shares, 7 of the share count. They made it clear they plan to continue their aggressive repurchases. Where exactly does that leave us . I think if crop prices keep falling, agco will keep being difficult to own. But if their rebound is for real, then this is a bottom. Lets take a closer look with the chairman, president , and ceo of agco, find out more about the quarter and where its headed. Welcome back to mad money. Hi, jim. Thank you for having me again. Okay. Ive got to get right to it. Youre buying back stock. Youre also plowing money back into the business. Youre spending a lot to make the company youve got the cap expenditures going higher. Why bother . Well, i dont think that you shou should. We are hanging in. Still have a great story to tell. Changing diets. Renewable fuels. Everything is still intact because the fundamentals are still there. And then we do the right things. So we not only buy back shares, we also do a very radical and very quick reengineering of our business which is healthy, and which will help us to reduce costs substantially. All right, where are inventories right now throughout the world . Inventories for some of our competitors are very, very high. In our case, they are reasonable because we manage them early enough, so we have big professional dealers in most of our markets, and therefore i think we are doing better than some of the other guys. Have you been able to manage down inventory in the ukraine situation . Yes, but what we did not have to what we did not plan for when we talked last time, we dont have a problem in ukraine, but we have i would call it collateral damages, like for example, i dont know whether you heard about it, but dutch Vegetable Farmers lose about 350 million in sales because they are sanctioned by russia. Spanish orange farmers the same. Polish potato farmers. So that means we have quite some impact from sanctions from putin, which hopefully will be discontinued sooner or later. All right. Now, on the other side, i am seeing some crop prices come back. You are in a cyclical industry. Is it possible that we could be at a trough, and are you even factoring that in for 20, 15 years . We are very conservative, because i think theres nothing wrong to take now, very conservative assumptions in order to make sure you do the right steps and change things properly, and if basically business does better as some of our guys say, it will rain through the roof. So basically we think its nothing bad to be on the safe side. Latin america has had a big election in brazil. Huge business for you. Are you okay with the politics down there . Well, actually, we are happy that the election is over now. Maybe the president can be discussed, but i think overall, they can go now back to work. And brazil i think also has some potential to come back. Ive got to tell you, you hang in there. I just feel like when you get a stock down so low to its intrinsic value, its when people have to start buying it. And that may actually be the case with what weve seen with agco. Great job in a very tough environment. Thank you very much, jim. Okay, thats martin richenhagen, the chairman, president , and ceo of agco. Listen, what goes down maybe must go up . Mad money is back after the break. receptionist gunderman group. Gunderman group is growing. Getting in a groove. Growth is gratifying. Goal is to grow. Gotta get greater growth. I just talked to ups. They got expert advise, special discounts, new technologies. Like smart pick ups. Theyll only show up when you print a label and its automatic. We save time and money. Time . Money . Time and money. Awesome. Awesome awesome awesome awesome all awesome i love logistics. All right, i like what Dan Fitzpatrick had to say in our off the charts segment. Said listen, maybe weve run a little too far, we have a pullback. I think thats what facebook is saying. I think that thats what twitter is saying. I see a bunch of stocks after the close like gilead looking a little heavy here. Let the market come in for a while. Weve had a huge run from the bottom. Dont panic, though. Google was down really badly and now it is higher than when it reported. Theres always a bull market somewhere. I promise to try to find it just lemonis tonight, on the profit. I visit artistic stitch in queens, new york, an embroidery and silkscreening business plagued by an identity crisis. Sal its a multiplex of businesses that really work together. Lemonis thats whats called a mall. Lemonis delusions of grandeur compelled the owner to build out his entire facility with whatever he could think of. Sal this is the restaurant. This is the sports complex. This is our baseball facility. Lemonis is it profitable . Sal no. Lemonis if i cant figure out a way to bring this company back to its original roots, artistic stitch will close its doors forever. The numbers arent adding up here. Sal im this close to going home. Lemonis my name is marcus lemonis, and i fix failing businesses. Lemonis if you dont like money, dont follow my process