Bringing on the bear like today where the dow dropped 115 points and the s p sank 8. 4 and the nasdaq tumbled more than 1 . Oh, we parsed every word from every fed official hoping that any minute now we would get confirmation that the fed would tighten and then we will be crushed [ screaming ] but what if it already happened . What if were already in a bear market at least for so many stocks . So even if the fed tightens theres not as much down side as we think. What if we saw something akin to the lows last tuesday when the market was crushed after they tried to rebound following serious declines and however it was closing down 11 for the year after the worst august in five years where the declines have been relentless, dont you have to start asking yourself, maybe the bear market is already here . Arent we further along on the down side than many think especially from the more bedraggeled Energy Stocks . Maybe theyre coming back and maybe theyve hit rock bottom that the losses have been so unbelievable. This weekend as i peruse the daily action charts thats the same that ive been getting since 1997 and i realize that i would be getting destruction. They conclude the largest stocks of the s p 500 and plus the Largest Companies of the midcap index, and i found myself counting how many had fallen hard this year already, and the next thing you know i couldnt put them all in one page and i always write them down and see how far they are and write them on an index and put them on a piece of paper. No, i needed four pieces of paper altogether. Check out these totals from last week and 11 major household names have fallen more than 50 . 23 have dropped more than 30. 78 are down more than 20 and 104 have dipped more than 10 and thats 340 stocks in bear market territory as of friday and if you look at the tuesday bottom the numbers a heck of a lot larger and thats after a fabulous rally. Even these figures understate the thrashing weven durned. Many of the stocks have seen gigantic declines from the 52week highs that seem the percentages benign and its a peak to trough nightmare, people. Those who brought it to high, i dont know. Theyve been crushed. Now its true that some sectors that didnt feel it as bad as others and the health care feels okay and although today it was a terrible day and a sprinkling of the obvious stocks and netflix and amazon and after last weeks lows on tuesday, you cant find a couple dozen stocks that were up more than 10 for the year. A couple of dozen. The whole chart, thats stunning to me plus the stocks that are down 20 or more. I mean, theyre all recognizable and the big rails and the big truckers, outtiment utilities a stocks and Procter Gamble is down twiefr respectively and theyre Profitable Companies with solidly easily covered dividends and these are Great American companies that are being killed. However, there are too many stocks to list in the down 10 and 20 categories for me to just show you the carnage, but lets consider some of them that are down 30 or more. Abercrombie. Advanced micro, amd, applied materials, barrett gold, blackberry, century link, genworth, spx, u. S. Steel, and ultra petroleum, united rail, and yahoo. And these are all Big Companies and almost all of them are profitable except for the oils. Thats right. They make money yet theyve been thrown away pretty much every day. The down 40 percenters are well known. Alcoa, allegheny tech, avon, chris natural and danbury resources and devry education and joy global, kate spade, marathon oil, coors, murphy oil, oil state, ralph lauren and sandisk and southwestern energy, thai water and winstreak, wynn resorts and again, these are mostly Profitable Companies, the ones that can rebound 60 in oil and 3d systems and chesapeake, console energy, freeport, Green Mountain and Peabody Energy and rovi, they arent doing well, but theyre not going under. Maybe in some cases, but i think the down 50 suggests that they are going to go. Thats not going to happen. Some are. Some are going to disappear. Not all of them. The stocks experiencing these massive declines are not small capitalization stocks and theyre not dotcoms and theyre not made up companies. Theyre real companies. Many of them quite profitable and you can argue that they arent doing well enough to belong at these level, but if you think were in a bull market look at the peak to trough declines in the names i mentioned and youve experienced gigantic losses that are akin to 2008 or 2009 that are at or near the top and im leaving out the names of the stocks down double digits and i am not including as if the chart were closed on tuesday which is the worst. Whats the take away here . I know it will be monumental when the fed does raise rates and i know that earnings will be hurt by a strong dollar. I know we should pay less for all stocks when it happens. What im saying, though, is that many stocks for many, we are already discounting a pretty severe recession which is obviously what the stocks are saying and if you include last tuesdays lows i can argue that most sectors have already entered not just bear markets, but vicious bear markets. If you go back to 2011 my analog for the bear market, we fell 20 from the onetwo punch from the debt ceiling fight and the far near important defaults of portugal, ireland, italy, greece and spain, the socalled pigs. These may not be the hugest, and they have large bond markets and italy being the largest in the world,a thanks to lax regulation that would have folded like cheap cardboard, but to default for any one of those countries would be setting off a catastrophic chain of, vents even in our country and we could have seen losses all over the place. The idea that something was contained is inconceivable. Bad guy china. The issues with china involve a slowdown and not a recession and china is the biggest in the world and arguably debtfree and giant reserves and sure the chinese stock market got out of control and they wasted 200 billion trying to prop up stocks, but the air has been let out in many of the companies which has, loud investors to go off margin and well get horrendous numbers this week from china. What is with these estimates that show such High Expectations and the numbers will be horrendous. I expect more losses in their stock market, but china is not a whirlwind no matter what you try to do and its simply a overpromisor that seriously underperformed and i remember when brazil was back in the 80s and try as you might to argue that theyre massive problems in the u. S. And the thing doesnt hold water and they arent good and theyre sure not the end of the world and its insulated this time around because they have so much capital. After these declines, lets play it out, okay . Say the fed screws up and gives you not one, but two rate hikes this year. What will happen . You go down 20 and down 30s . Maybe go down 40. However, i dont believe that the onetwo punch of the stronger dollar brought by by the fed in a crisis by brazil will bring the house down from these levels. So yes, i totally comprehend the possible carnage from a rate hike, but after staring for hours and hours i can only conclude one thing. If we see last tuesdays lows again that would reflect a level of pessimism out of whack with the world as we know it. Ill use a dirty wod for opportunity. Im not saying bring it on. I am saying the fed is setting the stage for what has to be done unless china collapses that week and we have another flash crash ride before the meeting. Otherwise, if you look at the destruction in the stocks you think the fed tightened way too fast and were going right into recession except the fed hasnt tightened at all, and at least not yet and here is my bottom line and we are building in the rate hike every day were down and last monday and tuesday when the fed tightens there will be repercussions for certain, and im not being a pollyanna, but theyve been discounted by many of the stocks that have gone down hard, and continued to be pulvarized today. Mike in california. Mike . Booyah, jim. Booyah. Thanks for taking my call. My question is about fitbit. I know you recommended the stock last month and the stock has been over on a downtrend with the recent market selloff and the report that came out saying that the iphone is gaining shares on fitbit. I just wanted to ask you about the ioc report because when i read that it was overinflating in terms of iphone sales and what you thought about the report . Think that the watch is doing great. Im wearing it and the watch is doing great. Best buy said it and fossil even alluded to it. I think that as we said, fitbit got to 50, and we thought it was stretched. I felt the fitbit interview i didnt feel great comfort there. Apple watch is doing well and fitbit is the wrong stock for this environment. Its a stock about hope and were looking for hard facts. Don in south carolina. Don . Hey, jim. Greetings from the palmetto state, my friend. Good to talk to you. Ive had my eye on the stock for a while and its in a tough sector and its been beaten up bad and it has a massive dividend and they have a pretty good Earnings Report the other day and tell me your thoughts on seadrill. Think the group has bottomed and i think the group has just been crushed and this is the kind of stock im talking about, seadrill, rig and these stocks have been so killed and i dont know if i want to keep saying theyre going lower. I think theyre bottoming. I dont want to recommend them, but i do think the big Oil Service Stocks are in. A rate hike is being built into stock prices as we speak every day relentlessly. Sure, there may be more of an impact when it happens, but many stocks have already discounted it. Youve got to believe that, and youre getting some opportunity if you go back to tuesdays levels. On mad tonight, ulta salon reported the best numbers of the season. Ive got an exclusive with the ceo for the companys Beauty Secrets and people yawn, they yawn because its a bear market. The gloom seems palpable and there are so many stocks safe from the carnage . I dont know. Ive got a list. Last time i sat down with sharif suki, he told me natural gas would maintain and boy, was he right. Youre not going to want to miss what hell tell me this time, and ive got a stock thats so controversial. Ill tell you about it. Theyre dropping double digits in the last two weeks and your money is at stake. Cramer is on the case and his take on whatever the markets got and what you need to know before tomorrows trade coming up on last minute mad. Dont miss a second of mad mon 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. Todays market may seem a lot more sedate than it was a week ago, but it still makes mistakes that create opportunities. I want you to consider the case of ulta Salon Cosmetics and fragrance. This is the nations largest beauty retailer with roughly 800 store across the country each of which includes a builtin salon where you can get a nice haircut and highlights. You know ive liked this company for a very long time. Last thursday at the close ulta reported a truly magnificent quarter and it reported a 3 cent earnings beat and higher than expected revenue year over year with some spectacular retail best 10. 1 samestore sales growth plus management boosted the sales forecast. Ultas stock ultimately surged initially 116 to 169 and it ended up closing down in a dollar. The market seems to Like Companies that buy growth, and hormel and smuker reported the same time with similar beat, but their stocks roared as the acquisitions paid off. I like organic growth and granted after the decline in the averages over the past month and ultas stock was 24 for the year. But in my opinion, it seems absurd. Youre getting the excellent quarter for free and dont take it from me, lets check in with mary dillon and the fabulous ceo of ulta beauty. Ms. Dillon, welcome back to mad money. Thank you so much, jim. Im very happy to be here. Can you explain the fundamental of how someone can have doubledigit samestore sales where all of the other companies are happy with midsingle digits . First of all, yes. We are thrilled with the results that we just posted. We had results better than expectations. We were able to raise our guidance through the year. Bottom line, guests are responding to what ulta butty is bringing to the marketplace which is all things beauty all in one place and whats thrilling is we are able to invest in the future growth at the same time to make sure we have a long term, very sustainable proposition. You are doing, for the first time your national tv campaign. What will it look like as its trying to attract prestige buyers and buyers of some of the less expensive materials you sell . Thats right. So at ulta beauty, we offer all categories whether its color cosmetics, skincare and professional Hair Care Services like Hair Services that are salon, Skin Services and outfit our benefit brow bars and were starting the campaign the day after labor day to put ulta beauty on the map and im very excited about it. Explain how you are able to get Customer Relations that allows you to get far more out of a customer. How do you do it . Are you doing it yourself . Yeah. Its just me. No. I have a fantastic team and were focused on guest insight and we have a fantastic Loyalty Program called ultimate rewards and our guests are responding to it and through the Loyalty Program we are able to understand every day what about the preferences are and what she might like that she hasnt tried and were sending emails that are personalized and getting more every day and were helping to drive the results that were seeing. A lot of businesses have been hurt by amazon and can you explain how youre uniquely not going to be hurt by amazon and how the ecommerce business is doing. It is on fire and it was up 43 last quarter which is great and its still a big part of the business and its the experience. Trying the products and getting the services that you know you cant get done online and you have to come into the store and we offer great trend in hair and makeup and its really coming together and ecommerce is important, as well, and growing. Your brands seem to sell as well as the fancy names. Ulta beauty collection. Were very proud of it and its doing very well for us. Keep an eye on it because we keep adding news and innovation that are hitting the mark with our guests like contouring palettes and brows, and eye shadow palettes and ulta beauty is doing very well. I dont want to get too much in the weeds and you have a Distribution Center thats and its entirely possible with the cost of the Distribution Center behind you that this may be to some some could make the case that this is your last really tough quarter. Well, you know what . Were in it for the long haul and we have the new Distribution Center that is open in greenwood, indiana and im very, very proud to what the team has done and theyre off to a strong start and we have another Distribution Center opening up next year as well. We are investing in processes to make sure we can deliver the results for the long term. Were excited with where we are and were very pleased with the performance and guidance that we were able to provide. They dont have room to expand and theyre everywhere and you r aggressive targets that can put in a lot more stores up, right . Yes. Were planning to build 100 stores a year and we are well on our way and weve stayed in at least 1200 stores in the future and were a little over 800 today and that doesnt count the fact that we think we can do Smaller Stores in more rural markets and more urban stores and plenty of opportunity for store growth and im focused on Comp Store Sales growth because there are plenty of folks that havent been to an ulta by the, but theyll know about us soon. Think about what severa did which was integrate with jc penney and you want to stand alone and dont need to tie up with everybody . Right now ulta beautys proposition is working very well. We know how to identify Real Estate Opportunities and open stores and the profitability of the store is very strong and keeping clear and concise of ulta beauty, bringing all things beauty and all in one place is the winning formula for us. 10. 1 comparable sales and i dont have that number from anybody else. Congratulations, mary dillon, ceo of ulta beauty. Good to see you. Thank you. Guys, if you want high growth that is organic and is literally because management is doing fabulously then ulta still works and not many others do. Stay with cramer. Coming up, oils on the move after summers losses, but should we expect this trend to continue long term . One man could have the answer. The energy ceo made a bold call on the commodity a few months back. Some companies are rear clearly concerned that the price of oil could go dramatically lower. You do . Yes. It could go to seven . Yes. Maybe even lower. What does he see on oils horizon . Cramer is finding out. With so many stocks down and out, you have to ask yourself why does anyone even feel good about this market at all . Why does it each have the most remote of bullish con takes given that the industrials, the transport, the oils and anything auto most of the financials and techs and even utilities are getting hammered endlessly. First, i think the selloff has gone on so long that we just kind of accept the fact that there are so many nofly zones out there. Yes, sectors where we just stopped paying attention to months and months ago. Overseas is doomed and has been for ages. The best that you will get with the International Companies is a flat performance and thats only if it sells food. Whats helped are takeovers and takeovers have so populated the landscape that we have to worry if we get too negative because you have an m a buzz saw or an activist knife which is almost positive. August was the biggest m and a in history. The names are so visible, etna. Buy, buy, buy cigna and anthem and United Health not part of it, but goes higher anyway that they created rosy coloration in their own right. See, thats whats driving the look and feel better. The cable area, the medical device and biotech regions create a false sense of confidence especially related to those that dont get taken over whher they be entertainment in general, a disaster or junior biotech that you just dont sense the carnage because there are so many deals and where do the bull markets remain . Nothing really to date is in the thesis and you can buy anything that goes into the home with the exception of lumber, but now that the fed is likely to raise rates, there are chinks in the armor developing here, too. Home depot is flat, despite excellent commentary about appliances, whirlpool is down double digits for the year now and so is ppg, the big paint company and both have substantial overseas operations and those are whats pulling it down and we have some recessionproof stocks that are shining and drug stocks and consolation brands and thats emblematic of a bull market device and the video games and autoparts companies which have been stalled if are so long because they allow you to keep your car longer, and they wont quit and riley automotive and not the actual autoparts which were in bear market mode. Big biotech has been working until a tsunami took celgene down 4. 8 or regeneron 4. 2 and biomarin down 2. 3 . And the rest of the cohorts were blown to smithereens already. We have msci, equifax, Global Payments and the always charming visa and mastercard and the banks have given up all their gains for the year and theyre the most important segment of the Financial Group in the market. Theyre awful. Theyre awful. Finally, the techs defined by bank, amazon, netflix and google that i talk to talk about along with peak cybersecurity stocks and equally long in the tooth cell phone securities like avago and skyworks. All of these stocks get pummeled and the some time winners and m a creates the illusion of a bull market running through this market and the illusion only. To me, though, the bottom line is that after last week, not even these stocks are safe which again signals that the damage already inflicted is so amazingly terrible, that its clear a rate hike is being baked into the market regardless of what percentage of investors tell us that might happen in september or december or in no meaning at all. Martin in florida. Martin . Hi, jim. Ive been a fan of yours for many years. Thank you. Both entertaining and very informative. My question is this. There was a rumor on the street ten days, two weeks ago of a possibility of ellison and benhoff getting together and oracle bringing in a sales force and benhoff becoming president and coming back to oracle. Ill just say flatout no. That aint going to happen. Oracle is down 17 for the year. Sales force is up a like amount, but i dont sense that theres any commonality and crm is up 17. No. Thats not going to happen, and i dont want you to own oracle although the stock has gotten cheaper and sales force had a great quarter and no one cares. How about jim in delaware, please. Jim . Jim, thanks for taking my call. My question is relative to twitter. With all the publicity over the last couple of weeks as far as somebody buying twitter, what do you recommend as far as getting them to the stock now . I think you have to find a way to read rob pecks trust in suntrust. He wrote a very compelling piece today about how twitter has bottomed and i think my Charitable Trust felt much better after i read his report because hes so thoughtful. I think its okay and obviously the stock can head back to the mid20s, but twitter off the sell list. I would not sell it, my Charitable Trust would not sell it. Even the stocks are just not appealing and there is always a bull market out there, and im here to help you find it, but sometimes its pretty nasty and hard. Watch more mad money ahead including the stock operating on the averages and ill tell you if its worth owning and you have got to listen to this. Icahn made a bet on sheer energy. Should you . Im sitting down with the ceo and your calls are ahead in the lightning round. Stick with cramer like your natural teeth. But, when you eat tough food, the denture moves. Oh no this shouldnt happen. Try fixodent plus adhesives. Their superior hold helps your denture work more like natural teeth. And you can eat even tough food. Fixodent. Strong more like natural teeth. Fixodent and forget it. In this incredibly volatile market where every day feels like a battlefield there are few stocks more contentious and divisive than intrexon, xon, the leading player in synthetic biology. Think of this space as being biotech 2. 0 and it uses computers to develop new dna sequences that can be put to work creating biologically superior product products for different market, not just drugs this time, but food, energy and consumerpackaged goods and the bulls and there are a lot of prominent ones like bill mill or, third points dan lobe, believe that intrexons technology will be able to disrupt multiple industries, helping to develop better treatments for cancer, creating Energy Sources that would be competitive with oil and even 10 a barrel and feeding the world through its genetically modified foods and if you had the technology to rewrite the code of bacteria or even yeast, you can then be pumping out all sorts offen credible things and the same goes for plants and animals. Is this not an amazing, amazing idea . Oh, but wait a second. The bears and there are also a lot of them given the 25 of intrexon has been sold short, they think this whole thing is pie in the sky and it hasnt proven it can do any of these things. Thats right. Theyre very skeptical and until we get that proof and they see it as a company with more sizzle than steak and not to mention that a stock that can turn out to be very ex. Pencive and im being very polite there. A couple of weeks ago i got a call about intrexa. I said despite being one of the hottest stocks i needed to do my homework. Each though the story was incredibly compelling it was too risky for me to have an early stage biotech. At the same time intrexa is trading 43 and change and for the next five months my cautious seemed very in place and the stocks surged at 65, on august 6th and remember remember those days and it reported after the Conference Call got hit with downgrades from skeptical analysts and this is the exactly the highflying growth stock that has been crushed during the gigantic marketwide selloff, plus last week intrexa did a a secondary offering and while its rebounded since then back up to 45 and change, the stock is now a couple of points above where i told you to be cautious. Its round tripped and at the same time i recognize it would have been great to be bullish and at the top be bearish, but i didnt do that. Now, i did a real deep dive into this story and so well go through it. First of all, the sheer range of applications for intrexon i find staggeri staggering, they have food, energy, health, the environment and the consumer. It has a phase two and further along than phase one for certain, and phase two am cofound for Breast Cancer and mag ilnant glie onlia and the latter being the most aggressive brain tumors around and they have Cancer Therapy immunotherapies in phase one and preclinical trials and preclinical therapies for gastrointestinal diseases and allergies, skin disorders, infertility and cartilage repair. Of course, the bears point to the fact that a lot of these earlystage drugs may not work out. Of course, they might not. I think the sheer breadth of diseases where the platform could be useful is pretty darn impressive and other Drug Companies agree. More on that in a moment. Its treating the food business where they use powerful genetic modifications to create superior plants and animals. For example, there is the arctic apple. This is the worlds first apple that doesnt turn brown when you bite into it without additives. It developed the species of genetically enhanced salmon that grows to its full weight in half of the time of ordinary somon and theyre still waiting for fda approval on that. The antigmo, nonbrowning apples are so compelling that intrexon can be just fine even if they end up being as hated as monsanto. Kwoed mad money is not endorsing the fact that we have have genetically modified foods. They can convert natural gas into a liquid called isobutenol into cleaner, cheaper fuel and it can turn methane gas into useful chemicals. Again, any one of these formulations could be huge. The companys Environmental Consumer businesses and at the end of the day, energy food and drugs are a potent combination. If intrexon is so great, where the heck are the products. The company admitted you likely wont see anything made with their technology to hit the market until 2016 or 2017. Something that makes the bears wonder if intrexons all hype which brings me to my next major positive here. Intrexon is a unique Business Model and most of their business is done through companies where their partners pay for the bulk of the research and costs with intrexon getting major royalty. In other words, its not like its burning cash to develop the stuff and doenzs of other companies believe in them including heavy hitters like johnson johnson, mercks endorsed intrexons immunotherapy with xiofarm as part of a major collaboration agreement. I know a lot of people on jim cramer on twitter have pointed this over and over again, give this company its due, but on the other hand many of these Partnership Agreements can be pretty opaque. Which makes it incredibly difficult to value the Company Using any kind of traditional metrics especially sin its unprofitable and doesnt have much in the way of sales. At end of the day, you know what this story is about . Its about trust and the bulls believe in intrexon and the billionaire Healthcare Investor randall kirk. The bears see intrexon as a cult of personality stock built around randall kirk. Given that kirk has a long history and selling thing for a prime youf yum and they sold 2. 6 billion in 2006 and he sold Clinical Data in 2011 and i think he deserves the benefit of the doubt and one last thing and while there are a lot of skeptices here, Herb Greenberg may be the most skeptical guy ive ever met in journal i. And he straddles now because he invests and hes not a bear on this. No. In fact, he likes intrexon. In fact, hes an invest oral though he acknowledges its a totally speculative play. I think the bullish case here is stronger than the bearish one. I believe intrexon is worth speculating on and it could be a buying opportunity even though the stock is up 68 and theyve had trouble when theyre up this much. This is not a stock you want in your portfolio. Im not joking. Im being serious and its only for speculation and dont put any capital in intrexon that you are not prepared to lose. You can lose a great deal on this one. If it doesnt pan out, youre nuts if you invest retirement money in it. It could represent the next leg of the biotech revolution. I think the potential is too big to ignore, but the risks are real which means im only endorsing it for speculation so please be careful because even if the bulls are right on the science, you know, it still might not pan out in the time horizon and it moves the stock higher given how ridiculousle i is and this isnt one of them. Mad money is back after the break. It is time it is time for the lightning round on cramers mad money, rapidfire calls [ indiscernible ] and then the lightning round is over. Are you ready, skeedaddy and lets start with connor in new jersey. Connor booyah, dr. Cramer from new jersey, thank you for your wisdom. I remember a while back you spoke highly on disney and multiple fronts in star wars in shanghai. How high do you think it can go . I think if you take a yearlongview of it i think youll do better than a day long. I i think the stock is primed for the people that are pinpoint traders and i think it can go to 94 and 95. Youll know the difference. Lets go to bob in connecticut. Hey, jim. Booyah, skeedaddy. Ive waited ten years to say that. I like it. Ive waited ten years to hear from you. Whats going on . I have 1500 shares of nobu corporation. Its been crushed and already down so much and i would not sell that stock. Its just been horrendous. Its up 30 from the bottom, but big deal, its at 13. Dont touch it. Lets go to stu in connecticut. Stu thank you for taking my call. Whats your take on mallinckrodt . They spent way too much and now people are worried about their one drug youve got to wait until this thing bottoms. It has not bottomed yet. It keeps going lower. Lets go to gates in new york, gates booyah, jim cramer. This horse trader wants to know if you have any horse sense. Ahead of earns, lululemon. I think lulu is doing well. Its a good franchise and has not been diminished and underarmour is doing well and nike is doing well and this is a bull market within a bear market in apparel. Lets go to dave in pennsylvania. Dave booyah, jim. Thank you for taking my call. Absolutely, dave. About six months ago i bought emerson electric, my pershare cost was 59 and since then, the stock has not exactly performed the for formance hasnt been exactly stellar. I can sell it . You cant sell emerson with a 4 yield and this company is emblematic of a whole group of companies in the large and large industrials that are doing very wad badly now that can do better in a year to two years from now, but with a 2 to 4 yield, no, i would not sell emerson. Lets go to wesley in virginia. Wesley . Ftk . Flotek . That bottomed a long time ago. Theyre making fluid so you save, and i think ftk is again, one of the oil stocks that has bottomed and that, ladies and gentlemen, is the conclusion of the lightning round. The lightning round is sponsored by td ameritrade. Like a custom screener on your desktop, that updates to all your devices. And you can share it with one click. Wow. How do you find the time to do all this . Easy. We combined every birthday and holiday into one celebration. different holidays being shouted back to work, guys i love this times of year. For all the confidence you need. Td ameritrade. You got this. After the recent carnage and volatility in Energy Markets what do we do with on, go, the liquefied export terminals that will be able to ship our abundant gas to overseas where its much more expensive and after peaking 80 a year ago, its come down to 52. 57 even as the company has locked in superlong, 20year contracts that you cant break for its future export capacity and the export terminal in louisiana is ahead of schedule and activist Hedge Fund Manager carl icahn announced an 8 stake in chennier. So much has happened here that i am glad to bring back the visionary of chenie, r e energy. Good to see you. Last time you were on oil was dramatically higher. Actually, about twice of where it was last thursday and you said its going much lower, and i know that youre an energy guy and youre using liquefied natural gas and have we hit bottom in oil . I think were pretty close. You do . Yes. Because . Two things have happened. First, weve exported our modern from the United States to the rest of the world. In other words, every barrel of capacity is produced around the world, and every barrel produced is sold so theres no Spare Capacity left in the system. So saudi arabia is close to full capacity and kuwait and the emirates are close to full capacity and weve now taken the cushion out of the system. Okay. And the second thing that has happened is we no longer are spending any money on the global basis on capex. So you take those two things out of the system and its inevitable at some point you will find yourself in an imbalance in the other direction. But this run, this run from 38 to 48, i mean, is that for real . Well, thats basically because the only place in the market today are financials and they have no idea which direction is going. So theyre very, very nervous and it can easily go in either direction for a little while longer. Okay and therefore theyre very nervous and they should be. Okay. Because there could be demand coming back or because the supply could be curtailed . In the short term things can happen and you never know what, but in the medium term as you take the money out of the system and youve taken the cushion out of the system its inevitable that well go much higher. You correctly also said that natural gas was going to stay envogue. Natural gas is the best performing commodity i follow and it never came down because we have a lot of demand in the country because theres getting to be a Worldwide Market and its never come down in this country. Right. So we are now very low and well probably significantly have for the foreseeable future. Even with what youre about to do in the future. I look at what theyre doing now in the marcellus and the utica and its insane. Those are at a level production out of utica and 70 million. Qatar and were producing like the middle east. Yeah. And cheaply, too. And cheaply. So when it costs to 1. 50 and less than 2 and the transportation costs can be that high so the delivery to a port somewhere is under 3, for the foreseeable future. Now, we saw carl icahn which is a good judge and value decided that hell be involved and you didnt fight and you said, sure, why would you welcome that and what do you get out of it . I have the privilege of having a smart investor putting two smart people on the board. Why would i fight 2 . I dont know. A lot of people wont understand that because smart people would make a bigger company. I welcome all opinions and we always work closely with our shareholders and if mr. Icahn wants to look deeply into the company and understand whats happening and help us we welcome that. Now lets talk about the bank. Youre the largest construction project in the country and its about to start, and youre ahead of schedule to be able to start shipping, huh . Yes, but i still would like to put it in perspective. First thing is we have total capacity of 31 million tons. Its never been done before. Right. Thats a percentage of the u. S. Production. Yes. The second thing is were going to have first production out of the first hand by the end of this year, but the full trend will not be in production until april which is when we turn it over to the first customer, bg, who will take over from that point on. So first the commercial deliveries will be in april and well be tefrtisting the systemh cargo and after that people forget that we always said were going to bring a train every six months and we cant go faster than this. So that takes us to the middle of 2019 with the seven trains that we currently have under production. Its very systematic. The company goes from having little cash flow to massive cash flow. By 2019 with the seven trains that we have currently under construction the cash flow will be 2. 5 billion a year. And what i understand is that if someone needs the natural gas bad enough and even if it was to be sent to southeast asia, it could be sent to europe, and it will be sent to europe primarily and its the markets of which 25 bcf a day is imported and its imported from places that dont make you warm and fuzzy. Right. Right. And all of a sudden there is the United States that has the ability to fill that void. And these are longterm contracts and those who think this is short term. This is long term and iron clad. Even if we go short term, right now prices in europe are 6. 50 and prices in america, less than 3. You can still make a 2 margin sending gas to europe today in the shorter market. Its incredibly profitable. Its 20 to 25 return on incremental investments. Youve been a pioneer and youve been right the whole way on everything that weve ever talked about, but you know what . Youre just youre a visionary. Its okay to say. You really are. Chairman and president and ceo of cheniere energy. Stay with cramer. Not being a pollyanna, just saying so many stocks are down so much and if we get down to tuesdays levels there could be an opportunity. Theres always a bull market somewhere and i promise to help you find it right here on mad money. Im jim cramer. See you tomorrow. Lemonis tonight on the profit, Precise Graphix creates Custom Designs for stores and shops. This is something that you designed . Dean yes. Lemonis . Run by two brothers who produce solid work, but not a solid profit. Keith what are we gonna do . Were gonna get rid of somebody . Dean if you went by these, wed get rid of everybody. Lemonis . And paralyzed by a lack of vision. Keith ive always been concerned about getting a customer and then losing them. Lemonis but you got to get one to find out if youre gonna lose them. They have debt on their books. Jess you dont know if youre gonna have a job in another couple weeks. Maria i dont want to go look for a job. I love my job. Lemonis . And equipment thats out of date. People still do business on floppy disks . [ laughs ] without major changes, Precise Graphix will be just another factory who cant keep up with the times