Your watch. And were witnessing an unprecedented merger frenzy roaring the entire market. But as powerful as the deals might be on any given day, that cant save the market from other forces that overwhelm individual stocks. Hence, why the dow backed 37 points, and the nasdaq dipped. 17 . Yet, there are now two markets, frankly. Two. Theres the marktd for Companies Involved in deals, and that is as hot as a misspistol. And the market being held hostage overseas. China, both of which walged on the averages. The greek tragedy is getting ridiculous. Its paralyzing europe and it cant rally convincinglyies unless its resolved. And if the euro doesnt rally, we cant make advances, we wont go higher we cant. Hurts internationally Oriented Company that are domestic. Makes sense. China, stock market tumble there, 6. 5 last night. Government titan, the newfound for stocks. I would be worried if i were the Chinese Government too. These negatives have been with us for ages. Even longer than the other time honored bug boo, when will the feds raise rates . And when they flare, they incite the broader s p futures to sell down and that brings down the whole market and that was pretty much the story of the day. But there are counter veiling forces, we can get research upgrades, like the one in chipotle today, sent up 17. To purchase the stock of ralph lauren because its too cheap. That rallied 3 bucks. Vf corp. , up 2. We can get exciting new products, like the introduction of a drone from go pro. Why didnt i think of that . Sent that stock up 3 bucks. We could have surprising from Enterprises Like ulta and gamestop. They can ramp stocks immediately. But, the most important bullish force for the market right now, we all know it. The its takeovers, gigantic deals like the 30 billion acquisition of broadcom. Or charters purchase of time warner cable. I cannot stress, stress enough just how positive this fevered merger and acquisition activity can be for the entire stock market. Hallelujah. Takeovers plow money, often borrowed money into the market which creates more demand for stocks, when you ring the register on the targets, which by the way im urging you to do. Were not arbitragers here. Takeovers create excitement about the stock market. If you own 200 shares yesterday morning at 47, you made 2,000 in a single day. Try doing that with a cd. If you got into time warner cable, you cleaned up 135 goes to 180. Now, i know there are some people who see all this wheeling and dealing as a sure sign of a top. They think the froth is so evident that how can you not get out . Sell, sell sell. I think its true these deals wouldnt be happening if not for the federal reserves low rates. But when you examine these transactions, you find theyre necessary and, frankly, brilliant. Necessary because these Companies Need to grow and consolidate or else. And brilliant because these deals drive up the stock of the acquirers. Right now, if you were to rip open an iphone or apple watch, youd find pieces of technology from a host of companies. In the iphone itself the bestselling device of all time there are parts made by skyworks qualcomm micron sirus logic, many are also in the apple watch. You know, you can also throw in integrated device technologies, which we had on the show last night. And its got excellent charging station components. Youd see a Similar Group of parts stumble out of a Samsung Galaxy if you were to break that open. These socalled teardowns are all about component makers getting into the apple or samsung eco systems. You get in you thrive. You get kicked out, you wilt. The chip makers are constantly at war with each other. Thats what they do. For this real estate inside the phone. Apple and samsung need these suppliers because without them you wouldnt bother to take pictures of upload video because it would be too slow or too fuzzy or might not work at all. Without components it wouldnt be worth it to check your phone for facebook social media updates or any of the other things that make us check, pick up our iphones 100 billion times a day. Well, sometimes i pick this up 100 times a day because i want to see me. But as much as they may need these suppliers, they would love to do without them because the Gross Margins of apple and a. M. Samsung are often pitted against each other or by developing their own products internally. So how are the suppliers supposed to fight back . Squeeze out more profit for themselves . Well, they can spend a fortune in r d or create more powerful chips, or they can merge with each other and either eliminate the competition or offer their customers a kind of onestop shop alternative. Which brings me to evago. Heres a chip maker at war with skyworks for many parts of these devices, not just the cell phone. Connect the car, connect the home. Skyworks is constantly one upping the competitors by offering multitalented chips to all kinds of customers. But the acquisition of broadcom will make it more competitive. Itll be able to offer its own multitalented chip sets while taking out 750 million in costs. Thats what theyre talking about. It could end up with higher Gross Margins, just like corvo. Dont know corvo . It was created when they merged with rf micro. Two Chip Companies constantly fighting for space in this in the power amplifier business. Their merger gave the combined company a lot of power. Yeah, pricing power. Hoping for a similar synergies, i think its going to get them. Hence why the stock rallyied yesterday on the acquisition and inched up again today despite the stock on the deal. Its the same with the cable companies. Theres a scramble to bring broad band to your home. A game of yards to get millions of homes in your monopoly jurisdiction, but once the acquisition is made, its a game of inches to pick up additional fees. A charter needs to play the game of yards and grab the broadband real estate, which its doing, and thats why its buying time warner cable. Why the stock is going higher and higher through the consolidation. In this amazing year the stock always seems to win. Think about the amazing gains in activist in valiant. They were all about acquisitions, trim the fat and bring up my Charitable Trust owns this. Yesterday, hormel stock. What did it do . It paid up for Natural Organic company, and the stock went up more than 3 . They are all driven by a simple fact. There are too Many Companies fighting for chers not enough customers. And those customers are finicky tough and demanding. The more mergers, the more power to the suppliers. As well see later in the show, when we speak about this with the ceo of southwest air, its been a huge beneficiary. Stocks going down because maybe not enough consolidation. Heres the bottom line when you get a monster deal like avago buying broadcom youre seeing companies attempt to take control of their own destiny by grabbing more customers or limiting the competition. These deals may seem frothy to you, but they are do or die to the participants. And if youre a shareholder you should prefer the doing to the dying. Curtis in north carolina. Curtis . Reporter professor cramer thanks for taking the call. No problem. I love getting tenure. Whats happening . Caller jim, with reference to twitter being the Tremendous Communications platform, do you think it would benefit to have more of a leadership role there . Well i dont know i mean anthonys the cfo and in a position to do a lot. I think that in the end, heres obviously, you know musing over this as i do every second on twitter jimcramer. I think twitter thinks its doing well. Maybe thats the problem. Stewart in new jersey, stewart . Caller booyah, jim. Hey, whats happening . Caller not much happening here at the shore other than a thunderstorm. Im going down the shore this weekend. Ill see you there. Caller very good very good. My stock is sirius xm. I bought it back ten years ago for 12 a share. Ive been in the house of pain since its taken over sirius with with the news that the Class Action Lawsuit this morning in the news was that going to open the door for others . Heres the problem with shares outstanding. It needs to buy back a ton of stock. It is a play basically, on autos. And its doing okay. And i would hold on to it. I wish i could be more encouraging, i would hold on to it. Van the man in new york. Van . Caller how you doing . Real good. How about you . Caller ive got a couple of questions for you. About suni edison. About 2 years ago, i got interested in solar energy because of the volatile Oil Situation that existed at the time. And ive been buying increments of 400, 500 shares at a time. Wow. And i own a fair amount. Im not a big investor but i own it at about 15 and now its about 31. What im saying my brokers saying, hey, you made enough money, get rid of it. I keep reading positive things about it. I know you like it. Van has the classic highquality problem. Hes got to ring the register on some to be able to play with the houses money, but the fact is this is doing incredibly well. Its a chip stock in solar and its doing great and really doesnt have anything to do with oil. So i congratulate you, i also want you to take a little off the table because no one ever got gutted taking a profit. And let the rest run. In this do or die market the companies that win are the companies that take control of their own destiny. And thats what these mergers are all about. Mad money tonight, biting into popeyes, fresh off last nights earnings report. Is it stalled . Well talk to the ceo. Plus, remember Cast Light Health . Its all downhill since then. My take on the massive decline and how it can save you from the next house of pain. Plus its Turbulent Times for the transports. Can love southwest air start soaring again . Im going to find out with my exclusive with gary kelly the ceo, stick 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. You probably know xerox as the company thats all about printing. But did you know we also support hospitals using Electronic Health records for more than 30 million patients . Or that our Software Helps over 20 million smartphone users remotely configure email every month . Or how about processing nearly 5 billion in electronic toll payments a year . In fact, todays xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. With xerox, youre ready for real business. Okay. What the heck has happened with one of my faves . An extremely well run chain that has given us incredible longterm gains. Lately, those have stalled. Popeyes peaked in january and come down a little more than eight points from the high. Despite the fact that the company has reported not one, but two objectively good quarters. First in february and then again, last night. See, we just learned that popeyes global samestore sales increased by 7 , operating margin expanded by 240 basis points, management raised for 2014, yet the stock did next to nothing. Its like its been immunized against good news. Whats the problem here . Lets check in with the ceo of popeyes louisiana kitchen, find out more about the quarter and the prospects. Welcome back to mad money. Thank you, jim. Great to be with you again. All right cheryl, ive got to tell you, the biggest disconnect in all the years weve been talking. This was exactly what i wanted. Much better than expected comp store sales, good Gross Margins, and yet, the stock is right now stalled. I know your job is just to do the best the best ceo you can be. But you have to admit, there is some sort of disparity here, dont you think . Well, you know, this was 20 quarters of samestore sales growth for domestic and 21 quarters for international. We beat our competitors for 28 quarters. You know, were about longterm steady, consistent, reliable performance, and i believe the market will reward us over time. As you know in 2007 the stock was 13. Today, its 58. Were moving in the right direction. Do you think its possible that people just dont Pay Attention to the Conference Call where the last thing you mentioned was like the avian flu . It has nothing to do with us. Maybe if you tell our viewers it doesnt have anything to do, theyll trust you. Ill be happy to do that. Theres no avian flu in the broiler flock, which is the flock of chickens that we use for protein in our restaurants. That has not happened in the broiler flock at all. And that is therefore, theres no impact on supply or any concern whatsoever. Do you think that people are concerned that you give such what i regard as being conservative guidance. Here you do a 7 number and you say, listen we could do 3. 5 4. 5 and to the unsuspecting, your first reaction is maybe theyre decelerating rapidly. But youre a conservative company. You p dont want to give shoot the lights out guidance. Well you know ill always be okay with underpromising and overdelivering. And thats what weve done now for years. My investors are happy with their returns over time. And any given day is not something i spend a whole lot of time worrying about. I think the thing to watch is how we continue to perform through this year. We have an exciting pipeline of new products. Up ahead of us. One of them in the restaurant right now, which is smokey garlic chile chicken, and it has a great sauce with it which im sure youll get to enjoy today on the program. I do. I always take it home when youre on. Free cash flow 17. 7 million versus 14. 2 million in 2014. Great opportunity to put money to work if the stock stays here in buying back shares . We are always looking at buying back shares. We bought back 11 million worth of shares in the First Quarter. Weve guided to 40 million to 50 million for the full year, and we are looking at returning cash to the shareholders. I saw the numbers that were double digit in turkey. And youve taught me that there are palates around the world that have a great synergy with popeyes. Is it possible to flood the zone . Saying im putting 100 up in turkey, 100 in peru. Because thats what dominos did with india and worked out well. Yes, theres a lot of opportunity to accelerate growth internationally. And were investing and building awareness and trial of our brand like we did in turkey with double digit same store sales. Weve gone to peru, weve gone to singapore. And were moving around the world with this exciting story of our amazing flavorful and festive food. And, jim, i think theres a long positive runway for International Growth for popeyes. When you know that there are there have been some commodity costs that were up. Youre a franchise model, are any of the franchisees getting nervous here because chicken prices have gone up . Our chicken prices moved up at the first of the year. What im excited about is our team worked closely with the franchisees and they made careful, judicious pricing moves on their menu. Really minimizing the pricing impact to the customer and i think that 7 comp tells you we withstood that very, very well with continued momentum on the brands. So i think we withstood that well, and we expect commodities to moderate looking ahead to the second half. Surprised how strong the market reacted to bojangles which doesnt necessarily have your comp store sales. Thats correct. Primarily a breakfast chain in the southeast. But it did do well. The market has some appetite for ipos but ive got to tell you, weve spoken to sonic, fiesta restaurant group, a lot of the guys who have just done incredibly well during this period including chipotle. The group has fallen out of favor. I wonder whether that isnt because people said you know what, gasoline prices done going down, im going to sell the restaurants. Well you know i do think theres some positive tail winds that are driving the strong brands in our sector to perform well. And that was really the differentiator in the First Quarter. If you had a strong vital distinctive brand, you got great traction. And if you didnt you got mediocre. Our brand outperformed the whole qsr sector by 5 Percentage Points in this quarter. So that momentum, i think, is a good bode for the future. I know that theres certain cities that are still very underserved. But you dont play with an open hand about where you might be moving. But could we see some areas that are about to have a lot more popeyes . You know i was in an exciting new opening in salt lake city, it would be one of those cities with a lot of opportunity. We had the mayor, the city council, we had beads and bands and lots of excitement. And utah is very excited to see popeyes arrive. One last question social media as a percentage of your advertising, wheres your head right now . You know, its a modest percent of our advertising, but we are often one of the top trending brands in social media because our brand is so interesting to talk about and our guest loves to talk about it. And you will see us to continue to be an active participant. Congratulations on another great quarter. Eventually the market recognizes who is putting up great quarters as you have for many many years and the market loved it until the last few months. I think itll be back on track very soon. Thank you, cheryl, ceo of popeyes louisiana kitchen. Great to see you. What can i say . Stocks that do really well, that report really good numbers tend to go higher over time. Thats whats going to happen here. Mad moneys back. Coming up wheres the love . Southwest airlines was one of the hottest stocks of 2014. Soaring a monster 120 . But turbulence in the transports has helped this name lose some altitude. Can it start climbing again . Or is there a better ticket to profits . Cramers got the exclusive with the ceo. You always got to be careful when youre investing in a newly public company. Sure, lots of ipos can make enormous amounts of money. We talk about them all the time. The ones right out of the gate. But that doesnt mean those gains will last. Especially when you havent done the homework to figure out whether or not youre dealing with secondrate merchandise. Thats why tonight i want to offer you a case study in what can go wrong when you make an illadvised bet on a newly minted public company, even when its kind of decent. Im talking about oldie but badie, Cast Light Health. The cloudbased provider of Health Care Related software which became public more than a year ago. Cloud and health care. Holy cow two of the hottest trends out there. Whats not to like . Turns out, a lot. To be fair a lot of junk ipos were flooding the market last spring. Remember, i told you weve got to be real cautious . But i want to cast a light on Castlight Health because its a very clear example of what not to buy if only because of the price tag. It became public at a price that turned out to be totally astronomical, ridiculously expensive right out of the gate. And only got more expensive as the stock rocketed into the stratosphere. And it was supposed to price between 13 and 15. But the actual deal came at 16. Of course, if you got in on the deal, you immediately made a fortune. As the stock surged 148 yeah that day to close at 39. 80. Wow. At that moment it seemed like one of the hottest ipos of the year and it was much lotted everywhere. But it was all downhill from there. A week later, stock was at 29 bucks, two weeks later, back to 21. Six weeks later, fallen below the 16 level. Trading at just 14 and change. Now, for a while, it was able to hold its own in the low to midteens, but it started to collapse. Shares ultimately bottoming at just 6 bucks. 6 bucks and change. If the hideous quarter the Company Reported mid february. Since then, theyve been able to rebound somewhat trading back to 8. 85 as of today. But to put that in perspective, if you got in on the ipo, youre now down more than 44 . And if you bought castlight into the initial frenzy as so many did when it spiked up to close at 40, youre down 78 . You cant come back from those kinds of losses. What exactly went wrong here . The concept was initially sounded very exciting. At a time when everything related to Cloud Computing was roaring, it was right in there. Its a cloudbased Technology Platform enables companies to deliver Health Care Benefits to the workers and provides employees with the information they need to make Better Health care decisions. Hey, we all want that. The idea is that castlight improves communication between employers and employees while also amassing a treasuretrove of data that can cut Health Care Costs for the clients somewhere down the line. In other words, this was supposed to be the cloudbased Health Care Cost containment play combining two red hot themes into one company. Cloud, hmos holy cow, cost containment. Ultimately, though Castlight Health is the story of an ipo that had a lot more sizzle than steak. And people noticed quickly with one journalist calling it the most overpriced ipo of the century. You know what, could be, the centurys young, though. Thats why i think the whole story went from wrong, went wrong from the start. Consider that when castlight became public at the 16 price and had a 1. 4 billion valuation. And after the closing after the huge spike, roughly 3. 4 billion. But if you did the homework, it became pretty clear quickly that the valuation was insane thats why a month after castlights ipo, i said this company wouldve never even come public if its business was that good. Because if i had a good business, someone wouldve acquired it already. What would you have seen if you did the homework . It was losing money when it came public. Its still losing money today. The company had a very fast growth rate, but growing off an incredibly low base. In 2013 the year before the ipo generated just 13 million in revenues. But had 130 million worth of debt. Now, on the leadup to the ipo, the management said it could be worth 5 billion based on the number of people who rely on health care funded by selfinsured employers. But that was an absurdly optimistic forecast. At the time of the ipo, only 106 customers, walmart accounted for 16 of the sales. At the 16 price, the stock was trading at 107 times the previous years sales, not earnings, sales. And when it spiked up to 39, trading at roughly 260 times those 2013 sales. When castlight became public, there were other Companies Looking to compete with them. Including Major Health Insurers who were experimenting for Similar Services and, hey, get the pricing here giving them away for free for the major clients. You cant compete with free. There were some serious red flags from the get go which is why the stock so quickly gave up the initial dpangains. Racked up 45. 6 million in revenue, which means the stock was valued at 31 times those 2014 numbers. Again, preposterously expensive. Considering that many think salesforce is overpriced and workday . Wow. Thats at 19 times sales. And those Companies Look cheap compared to this. After the dust settled and the stock was trading in the low teens, the wall street analysts wrote out a bunch of positive research coverage. Initiating coverage on castlight with a buy, buy, buy and price targets in the high teens. Turned out those forecasts were too darn bullish. What else went wrong . The numbers deteriorated while castlight beat wall streets expectations in the first two quarters out of the gate. The next quarter, the next quarter was the one that really did you in. The next quarter was merely in line. And when the Company Reported its Fourth Quarter as a publicly traded entity the past february it seriously disappointed wall street. Problem . Even though castlight beat the top and bottom line gave disappointing ref knew inging revenue in 2014. Even though castlight had agreements in the pipe management found it was taking longer than expected for the companies to actually become clients. In the third quarter, castlight added 29 customers. In the Fourth Quarter, they added just 9. In response downgraded from buy to hold and a negative piece of research and the stock ended up plummeting 31 the next day, down to 6 and change. Now, since the stock has rebounded in part because they reported better than expected quarter three weeks ago, on top of that the stock has reasonable valuation now 11 times sales. Thats darn expensive compared to the other cloud names. At the end of the day, i still think Castlight Health is too risky to own. Yeah, the ipo of the century. There are much Better Software and Service Companies out there that have far superior track records like salesforce, which is coming back down to more reasonable levels as the takeover chatter abates. So let me give you the bottom line on this totally cautionary tale im giving you so you dont go crazy when it heats up. Sometimes when youre dealing with an ipo thats caught the markets fancy, youve got to take a page from public enemy. Dont believe the hype. Castlight health was able to get lots of excitement perhaps the most of any ipo last year by building itself as a play on cloud and health care. But from the moment it came public, the stock was out of touch with reality. Even if castlight executed well that 16 ipo price was in retrospect way too expensive and the 39 price, absurd. So, please take this as a cautionary tale and always do your homework so you know that your ipo may be expensive. And heres another one. Remember bulls make money, bears make money, and pigs, spam. Matt in florida. Matt . Caller hey jim, how you doing . South philly born and raised go eagles. Well its the only thing weve got to root for. Im looking at the otas and the phills and it was a strike. Anyway, whats going on man . Caller what are your thoughts, jim . You know, i was mentioning this morning when i was talking to Carl Quintanilla that every time, every time go pro does something right, people buy ambarella because thats the insides. I say ambarella, i think its time. No one ever got hurt taking a little bit of profit. There is an art to picking up the ipo. From the get go castlight was out of touch. Take this as a lesson learned, always do your homework and know your ipo. Hey, much more mad ahead. An exclusive with Southwest Airlines. The entire sector has been losing out since i spoke to the big guys last week. Can this can stock maybe start climbing again . Then Cyber Security one of the hottest themes in the market. Which player is best suited to protect your portfolio . Im going to break it down. Plus, i hope you have your questions ready. Im taking your calls in the lightning round. Stick around with cramer. Can it make a dentist appointment when my teeth are ready . Can it track my crews performance, and protect their heads . Can it tell the Flight Attendant to please not wake me this time . At cognizant, we see opportunities for every company. To meet the new digital demands of their customers. Can it process my Insurance Claim . Like, right now . Can it download a track while im sampling it . Can my keys find me . With the power of digital, analytics and automation now every little thing can provide even greater value. Ok, so can it tell the doctor how long you have to wear this thing . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . Whoops the airlines slipped. When we had American Airline on the show last tuesday, i had no idea that would sent the entire cohort plummeting. American Ceo Doug Parker told us there was a good deal of new capacity coming on the industry, perhaps too much. Why is this worrisome . All right, for decades, business was terrible because the airlines were always engaged in ruinous competition with each other, endless price wars and bankruptcies. But starting a few years ago, there was a wave of mergers and acquisitions to the point where the companys able to make consistent money and get the return on capital. Actually make a lot of money. However, if the airlines are now adding too much capacity that means maybe the bad all days of excessive competition could be back which is why the stocks have been crushed over the past week. And its not just american talking about new capacity. When the same day as our interview with doug parker, southwest airline cfo said the Airline Capacity could increase by 7 to 8 this year. That caused southwest to tumble 9 in a single session. Only going lower since then. Clearly luv is for sale. Its the symbol of southwest. How concerned should we be . Do we need to be worried . Or is the market overreacting . Creating a nice buying opportunity in a well run airline, one long been known as the best operator in the country, longest record of profitability. Not to mention a stock best performing up 124 . The chairman and ceo of Southwest Airlines a total straight shooter, yet a better sense of where his companys headed. Welcome to mad money. Hey, great to be with you, jim. Im not going to try to paraphrase. Im going to play you a quote that sent these stocks down by doug parker and maybe you can illuminate us about whether it was the right reaction by the stock market. Go ahead. Some capacitys being added. Not by us by some of our competitors. And we will obviously respond to that. But were not going to be the ones that are yeah sounds like a price war. Plain and simple. And weve gotten used to not having price wars in the business. Our competitors are always complaining about southwest and were going to continue to focus on running a Great AirlineOffering Great Customer Service and being profitable and hitting our returns on capital. So we our plans have not changed. We have plans to increase our seats here in 2015. Roughly 3 . And what is interesting is virtually everyone in the industry is adding more seats than Southwest Airlines. Were flying longer but in terms of matching customers in seats, which is the most accurate way to think about growth were roughly 3 and, again, everybody but United Airlines has at least that much or more in the united states. It does seem Credit Suisse called you the perceived villain, not the actual one. Theyre saying you added a string of capacity increases that are bothersome and a lack of discipline. You seem to indicate thats not the case at all. Well you know first of all, we we are very sensitive what our investors think about Capacity Growth at Southwest Airlines. And i acknowledge thats something that theyre concerned about. Its obvious here over the last week. Our plans have not changed. We have a unique opportunity to grow at dallaslove field. And i know youre familiar with that. The vast majority, 2 3 of our growth is oriented towards dallas. And, over the longterm i think this industry domestically has gotten pretty mature. I think that we can grow as one of the lowcost providers. But i dont think we can grow any faster than gdp. And we dont have any plans to. We have very sensible aircraft plans, certainly throughout the rest of this decade. So, you know before last week everybody thought our growth plans seem to be fine. As you mentioned, tammy romo our cfo provided a range of guidance. We are going to manage to the low end of that range. Our available seat growth will be a little bit more than our seat growth. But it will be around 7 for this year. And like wise we will manage aggressively to the lowend of that range for next year. Most of the growth in 2016 is simply carryover from 2015. Well gary the other thing. Im sorry, go ahead, sir. Jim, i was going to add. One other quick thing i think you will know. If you look at our fleet growth over the past four years, it has been literally flat. Right. We might be up by three airplanes when you combine airtran into southwest. Our available seat mile growth is virtually flat. Weve been very disciplined. I think history would show that were going to do our best to match the supply of seats to demand. And then finally, if you if you look at the opportunity that we have in dallas, which has been a near monopoly on many long haul markets, weve been able to add flights, lower fares. The new flights weve added are almost all full. Its so full that in fact the city of dallas is going to have to build a parking garage to accommodate all the demand. And our dallas profits are system average. So were having a very strong year. Our First Quarter profits were triple a year ago. Im very excited. Well gary this is a chance. You said things flatten in terms of growth. Now, you have 774 million shares in 2011 674 million shares most recent. And that billion dollars of stock bought back within a year. And you Just Announced a huge 1. 5 billion buyback. Are you standing there and buying a stock . Isnt that what youre managing the planes right. Should you be managing that buyback to be taking advantage of this . Well, jim, yeah. I think were trying to create shareholder value, were trying to return value to shareholders at the same time. And as you pointed out, the 1. 5 billion is a record Share Repurchase for us. Were able to grow the airline this year without adding any aircraft because weve been focused on merging airtran over the last several years and our fleet was underutilized. Not only is the expansion profitable from a revenue perspective, but weve got idle capacity, and by increasing our flying, were using our unit costs. Going to go back to the full. On monday june 1, you will be flying 11 flights from dallas to midland odessa. Are those flights full now that oils gone down so much . Well managing our schedule is very dynamic. And of course the impact on the oil industry has been huge with plummeting oil prices. So those are examples of things that well have to continue to monitor. The traffic is not as strong on some of our heavy oil and gas routes as it was before. And if we need to tune those schedules, we will. We have we have made significant reductions in flying in certain city pairs, especially over the last four to five years. And if we need to do that well do that. Weve closed cities and if we need to do that again, in the future, well continue to manage very dynamically and aggressively. All right, last question. May traffic. I know youre going to have some figures out soon. Are we going to like it . Well you know i think theres been some weakness in the economy as you know and everybody else does here in the first half. Traffic has not been as strong as we had expected in the Second Quarter. I dont think that youre going to see results that are any different than what tammy romo mentioned last week. Were satisfied with our Second Quarter progress we were hopeful, as many people are, that business is going to pick up in the second half of this year. And that will absolutely be a factor as to how we manage our growth going forward. So we intend to be very disciplined with our capacity and 2015 will be a Highwater Mark for us and well see our growth rates decline in 2016, and then again, even more significantly in 2017. At the same time, were lowcost producer and we will have opportunities to grow and were very excited about that. And youve been the most profitable and consistent airline and maybe business that ive dealt with. Thats why youre the top of the s p last year. Thank you for your candor and thank you for joining us on mad money. Great, sir. Thank you, jim. Tough group right now, a lot of value, dividend boost. You make the decision. Mad moneys back after the break. It is time its time for the lightning round on cramers mad money. Rapidfire calls. Play until this sound, and then the lightning round is over. Are you ready, skedaddy. Lets start with rick in illinois. Rick . Caller hey, booyah. Rick from chicago. Thank you. Caller hey what do you think about underarmor . I think everyones worried because its stalled. Its shaky in weak hands and its on the move. Thats the way it trades. It may not rally instantly. Waits for the next quarter. Marcia in new jersey. Marcia . Caller booyah, jim. Booyah. Caller what do you think of opko health . Up 250 . Should i hold sell or place a sell order . Well you know im a big believer in phil frost, also a believer that no one got hurt taking a profit. When youre up that much take out your cost of cap. Take out the houses money and let the rest run. Phil frost is a genius. Weve had him on the show. David in new york. David . Jim, what are your thoughts on the energy spinoff of pp l . No. Were just not not interesting enough for me to want to be tempted to do it. John in new york. John . Caller hello. Yo, john youre up. Caller hey this is john. First of all, booyah, jim. Thank you. Caller first of all, i want to thank you for recommending ambarella. Bought it up and its up 141 on your recommendation. Parts of the gopro are worth more than the whole. Caller my question today is clls. Thats going crazy because theres rumors pfizers about to buy them. I do know it has a good chart. Just read a piece in the street about that. And by the way, that Biotech Group remains the hottest in the world. How about harley in california. Harley . Caller hi, jim. This is harley. I started watching your program about six months ago and i put together a nice little portfolio of stocks you recommended. But i have i wanted to talk to you about, a few weeks ago boeing came out with real strong earnings, and i think they had back ordered over 100 planes. I decided to buy 100 shares at 151 a share. And now its dropped about 10 points. Boeings trading with the airlines, sir. And that means the stock is going a little bit lower right now. Lets take a longterm view i would not sell that stock. And that ladies and gentlemen, is the conclusion of the lightning round. The lightning round is sponsored by td ameritrade. Td ameritrade, they love innovating. And apparently, they also love stickers. Whats up with these things, victor . We decided to give ourselves stickers for each feature we release. We read about 10,000 suggestions a week to create features that as traders wed want to use, like social signals, a tool that uses social media to help with research. 10,000 suggestions. Who reads all those . He does. For all the confidence you need. Td ameritrade. You got this. Just because im away from my desk doesnt mean im not working. Comcast business understands that. Their wifi isnt just fast near the router. Its fast in the break room. Fast in the conference room. Fast in toms office. Fast in other toms office. Fast in the foyer [pronounced foyyer] or is it foyer [pronounced foyyay] . Fast in the hallway. I feel like ive been here before. Switch now and get the fastest wifi everywhere. Comcast business. Built for business. Sometimes when you have a powerful theme, money will just keep flooding in. Flooding into whatever investments it can find in the space. And thats what i see happening in the Cyber Security group. Last nights quarter from Palo Alto Networks is an excellent case in point. This may be the single hottest stock ive followed in the 3. 5 rally today after the report only enhanced that view. Well,s its always seemed expensive. In many ways, it deserves to be the premier Cyber Security company, its got 55 Revenue Growth beating the estimates by 5 , lifted sales by 8 versus the previous quarter. Amazing order wins and it bought a Company Called cyro secure, which works on security with recurring revenue stream. Its huge overseas, but you wont hear any complaints from the ceo. Business is accelerating everywhere. Remember a month ago, he told us that ever since Cyber Security became a board of directors level issue, meaning the Board Members need to spend time thinking about how to address the problem. Business has been accelerating. Aiellol palo alto is known for the strength in preventing attacks. No letup in growth. New clients its the quintessential company that executives want to bring in to please the board to sway the shareholders that management is doing whatever it can to stop the cyber crimes. Who else . Fire eyes the ultimate in Cyber Security forensics. Its the goto company in order to avoid liability for data breaches. Earning a federal government seal of approval saying the company is doing everything it can to prevent intrusions. Its a Terrific Company with best of breeds technology. And when you see any big data breaches sony home depot, target, you have to presume theyre getting a call. The keys to the kingdom, assuring nobody hijacks the security system. Its run by a bunch of brilliant Defense Force guys who seem to thrive on protecting the inside of the Cyber Defense ring. Terrific technology for threat protection. Its earnings may be a little more uneven than some of the others, but its a pure play. And i like check point despite the fact it was downgraded the other day. Finally, if you want to think big for Cyber Security remains the integrated and embedded into the internet structure play that is cisco. Underestimate cisco at your own peril. Its the ultimate in security for the feature. Thats another reason why its too cheap to ignore. When youve got a shortage of stocks to play a particular theme, the pure plays can lev levitate for a long time. High growth and Cyber Security equals scarcity value. And demand will always overwhelm supply. And the price of the merchandise in this case, the stocks goes higher in value. Stick with cramer. Never settle for verizons overpriced gimmicks. Try the uncarrier riskfree for 14 days youll love it, or well pay for you to go back. Tonight, it costs our country billions. A new cnbc documentary explores the epidemic of lying and cheating that is spreading throughout our culture. Dishonesty, the truth about lies premieres here tonight at 10 00 p. M. Eastern and pacific. Theres always a bull market somewhere. I promise to try to find it just for you right here on mad money. Im jim cramer. And ill see you tomorrow. Lemonis tonight on the profit. Its a small space. Tonnie its been challenging. Lemonis . A tiny cupcake shop with a big idea. Tonnie you walk in, you pick your cupcake out, you pick your toppings. Lemonis tonnies minis should be raking in the dough, but its not. Theres 134,000 worth of debt. His biggest investor is his wife. Erenisse its to the point that im not giving any more money. Lemonis tonnies bakery is cramped and chaotic. Sales are down. Right now, were losing money every day and so im trying to stop the bleeding. And the debt keeps rising. Erenisse im just upset cause i didnt know about all those people that we owe money to. Lemonis if i cant find a winning recipe for tonnie. Were closing the store. Lauren oh, my god. This is ama [ glass shatters ] lemonis . His relationship