Some losers and render decisions about where to put your money. Averages are bouncing a tiny bit today. S p inching up. And nasdaq. Remember a few weeks ago when i told you that the s p 500 os later i follow, the one that measures the buying pressure was giving an overbought reading of plus 10, indicating excessive buying and it concerned me . Back then i said the market would have to work off by a selloff or decline over time. The market chose the latter path. And weve now gotten to the point where its no longer unsafe at any speed. Im not saying just buy anything. After a shallow advance, the dow produced seven losing sessions. The bull market was lucky that it wasnt more damaging and permanent, because every time the market takes a sharp turn down, more people flee. What looks more promising . I see the humanization of pets, semiconductors of all shapes and sizes and the steel stocks. How about those to avoid . The retailers, super markets, restaurants and airlines and travel and leisure businesses. Lets roll up our sleeves, okay. And go over these winners and losers. First, lets tackle bpets. I still think the best thing besides the internet of things, no. Youre looking for a true rising tide. I say look to the growth in spending on companion animals. This is that socalled humanization of bets, not to confuse with the secret life of pets. The ceo of i dex laboratories, when he came on the show five weeks ago, goes like this. As cats and dogs become more involved with their masters as being demonstrated by being allowed to sleep in your bed, Health Care Spending on them has surged. Sure enough, it gave us the biggest beat in raise which saw the stock rising to the moon to just under 108 today. Whats behind the run . On the conference call, idex talked about accelerated companion animals gains. It showed 10 to 11 growth, natural, organic, including vetconnected business lines that have 13 gain on growth, like recurring diagnostics, which is what happens when millions of pet owners take trips to the vet. The animal focus drug Company Reported upsizes and noted that its companion animals business also had 11 organic growth. Its no fluke. Its a bona fide secular trend how about the Semiconductor Stocks stocks . Theyve been on fire, including arm holdings. But honestly, this Semi Conductor rally could have been fueled by earnings alone. Weve seen numbers from Texas Instruments and amd. Cirrus logic. And its given the am stopple s rally a second win. I say peers, because apple components manufacturers are not allowed to name apple. Theres no negative pin action. And that is a sure sign of strength. And when intel gave you subpar reports, even though it had run quite a bit from the bottom, the real stand outs . Nvidia, the video chips maker. And i still like nxpis. Which ran big into takeover talk but its now pulled back to a very buyable 83 level. The third theme i like . Biotech. It looks like the Long National nightmare that was biotech is over. I like to judge this by what makes it run. Last week they reported a better than expected quarter, but even when the stocks arent so hot, like biogen, biotech stocks are running on positive Clinical Trial data. Witness the gigantic leap in ionis pharmaceuticals. Remember, we had them on this week . And their partner biogen exercised its commercial rights to buy the rights to the drug. The four horsemen of the apocalypse seem to be back in the races. In addition to the aforementioned biogen and cellgene, well see if the recoverys more permanent than people think. Then theres this weird group, the steel stocks. Everybody loves a low dollar stock. It had an amazingly positive reaction to the tariffs president obama put on the steel companies. These commodities will keep running, however, if you want a growth steelmaker that happens to be addicted to profitability, i propose you buy nucor, it came on the show a week ago after reporting excellent numbers. Now for the losers. Many restaurants cant seem to get it right. Todays trend, dying equity. Its applebees division. And darden, only panera bread and jackinthebox have managed to buck the trend. Super markets have taken it on the chin, too. Both whole foods and kroger having a very tough time. Unless youre in the dollar store quadrant, youre getting slammed. Then in the oil, overcapacity, and now the zika virus are stinging them. And tonight trip adviser reported very suboptimal quarter, Royal Caribbean in the travel and leisure doghouse. Were seeing rare weakness at nike. And under armour. Much of that is caused by the decline of sports authority. But we got news from kate spade. Its not just sportswear, its sneakers that are struggling. If you can get comfortable with an Animal Health company or a biotech or steelmaker, you could be rewarded here, but if you own retailers or restaurants or Power Companies or airlines and travel leisure businesses, you could be in for some turbulence. At least until the end of earnings season. I want to go to tito in nevada. Tito. Caller hey, whats up, jim. Greetings from las vegas. Man, not much happening, how about you . Caller not much, man. Sprints been having a great year so far, i was wondering if now was the time to pick up some shares now that its retraced a bit from the high . Yeah. I would be a buyer of sprint. I think the company has really come around. Theyve done a terrific job, and im believer. I wouldnt leave it, even if i tried. How about rob in pennsylvania . Caller hey, jim, a big booyah to you. Caller im a hershey shareholder. Do you think mondelez may be coming back with a bigger offer for hershey and the ag will have any of reaction . I think we might see a higher bid and transaction. I would hold onto hershey. Thank you for that call. Now, are your stocks winners or losers . Earnings season is separating the weak and the strong right now. And were seeing strong turns in pet health, steel. On mad tonight, you probably i have its products in your pantry tonight, but after todays earnings, can you clean up in this market . My exclusive with the ceo is in. Then revenge of the underperformers, four stocks that have gotten no respect, taking a totally new lease on life. And he began hayis career with money and little direction, but he turned his dream into a 25 billion fortune. Im sitting down with the founder of nike in a rare interview. Find out how he just did it. Stick with cramer dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Tweet cramer, madtweets. Send jim an email at cnbc. Com. Or call at 1800743cnbc miss something . Head to mamadmoney. Cnbc. Com. Youre here to buy a car is this the revenge of the nerds . Or just the revenge of the underperformers . Either way, the story has become a khai theme of this earnings season and most evident in etsy, the hippy dippy place for handmade goods, gopro, fit bit and groupon. All four of these companies have had storied careers as retail darlings and at various points crushed their shareholders dreams of big profits. The decline wasnt caused by the companys actual performance. It was because of the bar being set for excessive enthusiasm for its products. Take etsy which rallied nearly 9 . Heres a stock that traded at 30 in april 2015. It was seen to be the next amazon. At the time i called it the Natural Organic amazon and told you to stay the heck away from this one about a month after it became public. The surrounding stock was totaling the love of its website with the brooklynbased company. It seemed intent on empowering individual merchants, dogooders, it was certainly sacrificing the longterm numbers for shortterm success. But the longterm success has arrived. 39 revenue growth. 64 adoption of the mobile app. It was originally seen as a clunky site. The company, like the others, have been left for dead, so it traded as low as 6, february, a week in february. Now because of its accelerating growth and worldwide reach, i have to wonder if etsy isnt one of the more undervalued stocks out there. How about gopro . Heres a company with an exciting suite of products. And it went from 24 in the mid 90s. Peaking after a disastrous Holiday Season, it was a long slog down to 8. But gopro stock has been on fire ever since. 20 sequential gain. And rising 11 . Having been reduced by 35 . Gopro is about to unveil a series of new products that might fulfill the hype of a few years ago, just when this darn thing looked like it had dropped off the radar screen. I think it could be a good trade not investment trade. Speaking of much revolved. Its hard to get more hated than groupon was when the stock was trading 2. But last week, they recorded a quarter that gave you a lot to like, significant Free Cash Flow as management turns around the core business and eliminated some empty franchises. But when the ceo, richard williams, told us in the conference call, we are further along the path to become the daily habit in local commerce, he had the facts and figures to back it up. I like that groupon has 780 million in cash. It can do acquisitions with ease. But perhaps one of the more ironic terms, is fit bit. Even though its stock has been a dog, fitbit, the company, actual lay never really disappointed with its earnings. It just stung shareholders with weak guidance, not this time, which is why the stock soared 13 . Its increasingly moded Health Franchise have distanced this company from the competition, and im including apple. You could never size on its revenue growth. But i like the acceleration of growth in europe. Plus the Holiday Season should be great for fit bit, this was a nonexceptional holiday quarter. They all stand out from the quarter. All realizing their formerly unrealized potential and all lowexpectation places to be as the dog days of summer unfold. Lets go to alex in new york. Caller booyah ski daddy. Keith, what be shaking . Caller im calling you about sketchers, skx. It fell by 35 . I took a small position as a speculative trade. Now is it a good time to enter into a sizable position for a bounce back or maybe a longer term play . No. Were going to wait until the Company Comes on air, and well talk about it. Because the stocks had a bit of a hit. It does seem cheap to me. Lets go to janet. Caller hey, jim, how are you . Im doing well, how about you . Caller great. Im calling about office depot, odp. What are your thoughts on the q q2 earnings, and what do you think about if another merger is in the picture . I dont think another merger is in the picture, and i think that its good that theyre cleaning up their story, but i got to tell you, long term, im not a fan. Just like the nerds, these stocks have been late bloomers. How does expectation spell their stock. Its been a historically weak august. Much more mad money ahead. Whoever said print is dead never took a look at the stock of r. R. Dollar donnelly. And my exclusive with the company thats been cleaning up for more than a century. Can clorox keep you out of a market mess . Ive got the ceo. And the man who made icons out of the swoosh and athletes who wear it. Coming up, cramer is joined by one of the most successful entrepreneurs of all time. Find out how bill knight captured both the hearts and the feet of the modern consumer. I though you asked me what was paid to Michael Jordan. The original contract was 250,000 a year. When mad money returns. Guyhey nicole, happening here . This is my new alert system for whenever anything happens in the market. Kids a natural. But thinkorswim already lets you create custom alerts for all the things that are important to you. Shhh. Alerts on anything at all . Not only that, you can act on that opportunity with just one tap right from the alert. Wow, i guess we dont need the kid anymore. Custom alerts on thinkorswim. Only at td ameritrade. An american story of unmatched success. From the tracks of oregon one man changed the way we run, train, and dress. Now bill knight is writing a new chapter. These days, people act like aev startup is a tech company or biotech company. We forget that the giant corporations of today were the success of yesterday. Take nike. It dominates the Sports Apparel markets, but when bill knight started the company in 1964, he was one guy, selling chinese sneakers out of the back of a car. I mentioned this, because phil knight, the founder of nike, published a memoir called shoe dog. That i think is one of the best books i have ever read. Hes talking about nike, his book and his life. Welcome to mad money. Thanks very much, jim. I can tell you in all honesty, its a great pleasure to be on your show. Thank you so much, sir. I found out about your book in an odd way. I found out from bill walton and asked me if id raead it, the great basketball player. When i found out you were coming on the show i was so excited. Let he ame ask you, as a shoe d where is nike in the firment these days . Under armour is hard charging, kevin plank reminds me of you in your early days. Nike is king. Can neike stay king with those competitors . Yes, and we will. Well compete very hard, and we have a lot of growth in our future and im very optimistic. What is going to become of this industry of apparel when we have endorsements that a lot of people feel are out of control, but are clearly a tremendous driver for sales . Yeah, well, this may surprise a lot of people, but in our endorsements, at nike, we use a very sharp pencil, and we sharp on endorsements from time to time. There was a great soccer club in europe, we said its too much. Its too much for us. So you can read a lot of money about endorsements like Michael Jordan, but hes absolutely worth it as is lebron james. The idea was that people, if you saw people liking the shoe, if you saw them wearing it themselves, that was a personal endorsement. Has it gotten upside down now where you ask the guys to wear the shoe and theyll pay them is this. I dont think so. Some of the best endorsements, we were proud to have them wear the shoes or clothes for no money. But we use a sharp opinion sipe. And if the athlete doesnt produce the sales, its not worth it to us. I saw today the news that the wolverines are going to roll out jerseys with images of Michael Jordan, but they were the football players. Is that what you had in mind when you started the jordan line . Exactly on plan. No, thats a sarcasm in case you couldnt tell. No, michigan would want to call me if i dont stop you right there. Theyre baffled. What do we say . No, its, no, i think, obviously, the whole industry has changed dramatically from the way it began when i got into it. And the jordan brand has become a true brand. And it stands for more than just basketball. And so the first Football Team to wear the jordan shoes is going to be the university of michigan, and were proud of that, and if you saw the claims from the transition when they moved from their old endorsement over to nike on allugust 1st, i was almost a riot like the jordan shoes in the big cities. They had the 250person marching band lined up around the block. One of my Staff Members has a hoops store near her, and every time there is a new addition for jordan there is a line around the block and it starts in the middle of the night. How do you explain the staying power for whom many never saw play . He was the best at that played, maybe the most dramatic as well. He had a colorful game, a handsome guy, and spoke well and stayed out of trouble and jumped over the moon and made all the shots that were storybook. And Tinker Hatfield designed an innovative product for his feet and it caught and became a brand in and of itself. There are a lot of people buying the brand who dont know who Michael Jordan is. There seems to be a bit of luck. As you said in shoe dog, you went after ryan leaf instead of peyton manning. When it all comes together just right, it creates magic. Is footwear getting too ex p pensive . We saw 225 online for a pair of jordans, does that not fit with the persona of nike that you created . Well, i think ultimately, we say around here, the consumer decides. And hell tell us, he or she will tell us. And that the important thing is that the shoes are comfortable and they perform and help you perform and when theyre doing those things, theyre worth a lot to a person. Historically, youve not revealed, the companys not revealed how much you pay Michael Jordan, i doubt that youll do that in this ifts view, if you want to do that, thats fine. How about the best deals, i think that the neike nfl deal ws a coup, it was a major deal that really helped. Yeah, i think so, too. Getting the nfl deal was a big deal, but the nfl wasnt cheap, and we figured, we used as sharp a pencil as we could and it panned out better than what we thought it would. I know you asked me what we pay Michael Jordan. I wont tell you what we pay him today, but the original contract, we paid him 250,000 a year. And Fortune Magazine wrote an article that said theres no doubt that nikes lost its way to npay that much money to Michael Jordan. How important are the l olympics . You spoke about olympics 72. But there was great joy. Theyre important, arent they . Especially to me as an old track guy. The Olympic Games are the pinnacle for any track and field competitor. Its true for many of the other sports, gymnastics and swimming and volleyball, probably. The competitive arena is our fashion runway, if you will. Thats where we show our stuff. And show that its, it is the best product, because its being worn by the best athletes. So the olympics are huge to us. Its ultimate athletic contest, and were very optimistic how were going to show in rio. Are you surprised about how nike is kind of universally one all the time. I was at the trade center today. I saw so many tourists, and theyre just wearing nike. I dont know if they know what nike is, but its a brand that has a life of its own that often has nothing to do with sports. I think in obviously trying to make the shoes and clothes that fit well and are comfortable and that kind of breathe and you can move in, thats what we try to do with our athletes, and it carries over to the general consumer. It can also be a more comfortable shoe to mow the lawn in. So yeah, it gets a lot of crossover, but our ultimate feex is on the athlete and his or her performance, but if we do at that right, we get a lot of the other consumers as well. How much does Technology Still matter . You innovate, you have innovation as the reason you succeeded. Is innovation the reason you say nike is going to be here and big for a long time . Absolutely. We spent a lot of money on it, we think we have the best people and we think well get the best results as we have for the last ten years. Thats phil nigknight. Well keep chatting here and youll see pomore of our talk tomorrow night on mad money you pay your Car Insurance premium like clockwork. Month after month. Year after year. Then one night, you hydroplane into a ditch. Yeah. Surprise. Your Insurance Company tells you to pay up again. Why pay for insurance if you have to pay even more for using it . If you have Liberty Mutual deductible fund™, you could pay no deductible at all. Sign up to immediately lower your deductible by 100. And keep lowering it 100 annually, until its gone. Then continue to earn that 100 every year. Theres no limit to how much you can earn and this saving applies to every vehicle on your policy. Call to learn more. Switch to Liberty Mutual and you could save up to 509. Call Liberty Mutual for a free quote today at liberty stands with you™. Liberty mutual insurance. You grab your 10gallon jug of coffee, and back out of the garage. Right into your wifes car. With your wife watching. She forgives you. Eventually. 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We got a good Earnings Report out of clorox that included nice organic growth, including the housewares, think kitty litter, and then clorox wipes. Plus Management Guidance was down right thrilling. Forecasting 2. 4 sales growth. Its substantially higher. Thats why the stock went up today. And while cloroxs Dividend Rate is now smaller than some of the others like proctor or kimberly, dont forget it has a lot Less National exposure. Lets take a closer look with the ceo of clorox. Welcome back to mad money. Thank you for having me back, jim. Youve invented some things here. Otherwise i cant explain the topline growth. But im not seeing a lot of topline growth in your industry, talking about disinfecting wives, febreze kalts lcat litter, the flavored Hidden Valley products which are suddenly dwroiing so fast. Yeah, jim, thats one of the hallmarks of our company right now. We have growth where others dont. The reason is pretty simple. We take out costs and reinvest those cost savings into the business. We have increased our investments in our brands tremendously over the last fiscal year and increasing it behind a very Strong Innovation program. We have innovation where others dont. And the last quarter really is a good example of how thats paid off. Weve gained volume, 7 for the company, 9 in the u. S. And that really puts us in a pretty special place in our peer group. How did you come up with the idea of mixing febreze with the cat litter . Thats a pretty obvious innovation. Some people would have said that we could have done that long time ago. Why . Because febreze really is a Gold Standard in odor control, and odor control is the core benefit in this category, cat litter. So what weve done is combined the two best brand equities in this categories with fresh step and febreze and giving consumers a superior product that has really resonated very well initially, for the first time in several quarters, were back to market sahare growth and we hav sales and were feeling good about this category and the innovation, febreze in particular. Renewed life ak whichization, when you had burt bees, renew life, i use ultimate flora. Is this going to fit in with burts bees as niche . Weve always been a health and wellness company, jim, and that is a very attractive category that we like. Why . Because it is profitable. Because it is based on a very sound and growing consumer need, and because it is expected to grow double digits over the next few years. It is a very strong fit with our capability, so we think it can really be a nice new growth platform for our company, like burts bees, which, as youve said, weve done so well with. First job is to blow out distribution, which is a core capability of our company, and well plug in our marketing capabilities so we expect to see continued double digit growth and expect it to go 2 points in incremental sales in fiscal 2017. The other thing that surprised me, hows kingsfords growing . Youre growing on top of double digit. Thats not innovative. Is that some sort of retro thing . Our people at kingsford would be hurt if they listen to you saying theyre not innovative. Theyve brought a lot of innovation to this business, no pun intended over the last few years. Its a 500,000 business. And weve grown it over the last p few years. We have extended the season of barbecuing and engaging with consumers online. Were big believers in being at the forefront of our industry and engaging with our consumers online. And what weve done over the last quarter is completely revamp the way we talk to consumers online. Were educating them about grilling. Were educating about making a perfect steaks, chicken, vegetables, with kingsford charcoal. And, as a result, the rate of Consumer Engagement has tripled from the last year. So this is a perfect example of how were engaging with consumers in new ways and getting them back to charcoal grilling and with an 80 pmarke share were benefitting in good ways. You couldnt do that without the social medias and facebooks and twitter s. This last year, 41 of our media spent went to digital and social media. Thats up 30 from the year before, and we think this fiscal year, this number will continue to increase. So this is a big part of our revamped marketing efforts, and we like the are yoreturns. Congratulations on a really good growth quarter. Thank you, good to see you, sir. Thank you, jim. Company that has great growth. Its not in venezuela. I should have mentioned that earlier. Its one of the best quarters of the year. Stick with cramer. Whats better than mad money . How about more mad money . Follow mad money on facebook, twitter and instagram to go one on one with cramer. Reaction. What are the questions we have . Ah, i always tell people youve got to start with an index fund, because i need you to be diversified. Get more with guests. And go behind the scenes with the most interactive show on television. If you cant explain in three bullets why youre buying a certain stock, dont buy follow mad money today. It is time time for the lightning round. And then the lightning round is over are you ready . Time for the lightning round. We start with john in wisconsin. John . Caller hey, youre the original energizer bunny. Whoa, i like that stock. Clor a caller are you going to tell us what vitamin you take so i can take it and buy the stock . I take ultimate flora. Caller im talking about opk. I think hes doing his thing, every since that acquisition, his stock has done nothing. Its flat lined. Im still with bill. I need to go do sal in new york. Sal. Caller hey, jim, how are you. I am good, how about you, sal . Caller im doing well, i want to give you a big Old School Brooklyn how ya doin. How ya doin right back at you . Caller im doing well. 62 1 2s and 27s. Ive got the januarys and im particular and tir sick and tired of watching them go up and down. I wouldnt touch a thing. Id want you to be in it. We got to take reid in texas. Reid. Caller remember the alamo mr. Cramer, how are you . Yellow rose of texas, my friend. Caller im up 31 on d ph. D. Well, i think youre okay. And that, ladies and gentlemen, is the conclusion of the lightning round the lightning round is sponsored by td ameritrade. Youre here to buy a car. Whats happening at rr donnelly and sons . A bunch of businesses have been thrust into the spotlight. Roughly a year ago we learned the Company Plans to break itself up into three separate, easy to understand businesses. A printing business, and a communications and Data Services company that will continue to be the most trusted name for publicly held companies. But, and this is a huge but. Three weeks ago we heard about a possible merger with xerox. First bloomberg may want to acquire the entirety of donnelly. Make the story even more confusing. Rr donnelly reported, high other than higher than expected revenues, given how much the stock had run, anything less than perfection is going to result in a selloff. The communications being spun off. And the financial being Donnelly Financial solution. So does it make sense to do some buy in a weakness . Or a merger may still be in the works . Lets check in with the president and ceo of rr donnelly. Find out where his company is headed. Lets put it to rest immediately. You heard me say, first, the bloomberg story. Any of it true . Jim, we havent responded on rumors in the nine years ive been ceo, and were not going to start now. We on track for the spins. The soft spin thats going on now, were paying people appropriatelily. We had a bank meeting today that went well, well be on the road in the next couple weeks. But the fact is, you are your own internal activist. This plan was put in place because you felt the company was undervalued. Not because somebody else knocked on the door and said you have to do this. The management team, we felt as if in order to create value, we need to break it up. Our financial business should be trading at a high single digit multiple. And anything i did would come down to the print multiple. Rr donnelly, probably would trade at a higher multiple than today. And the conditimpany i will be involved in will be at a lower multiple. Why did you choose that division to run . The good part for me is that we have allteam thats with us. Weve been able to set up three management teams for internal candidates, our hr committee has done a great job. Dan knots is going to run part. Andi ive eve gone over to lsc. Show pea some lsc. Inserts. Theres a nice book by jim cramer. I presume all these, but rlc may be able to to get some growth . The three leaders in the business are the same. Youre not go being to see us go crazy one way or the other. We know we have to reward our stakeholders and make our payments. And acquisitions will be part of all three companies. Have we arrived at anything for the payments . We havent. As we think of Financial Solutions growth business, a probably small dividend. Obviously, rsc will have a dividend and rr donnelly will continue to pay a dividend. Reason with me for a second. Youve added some great companies, delivered this great dividend and got some growth. Why did the market never, we always told that the markets perfect and everything, but arent you a living, breathing example of a company that just didnt get what it deserved . Yeah, i take blame for that. Weve got 1. 2 billion in ibida. Heres three companies, heres where theyre going to stand. Therell be focussed management, cam tal structure. Right investment policies, and we think at that will endip w u winning the day. Youre way too humble. Weve been making good upony with that yield and by buying the stock when it dipped tand its been much bet ter than the averages. Who do you compare us to. Theres nothing else at that springs up thats like you. Thats part of the problem. Yes, no. We agree. The next time i see you, the company will be broken up, and i will see you as chairman and ceo of lsc. Correct. I know you cant comment on the rumors, but i had to give it a shot. He will be the president and ceo of Lsc Communications next time we see him. Tomorrow, second half of my phil knight interview, shoe dog, with more comments about the olympics and how exciting its going to be. I know i will be watching. I know you will be too. Im cramer and i will see you tomorrow tonight on the west texas investors club. My product is called happy tree maple water. Were looking for 2 million for 20 of my business. It does taste pretty good. Its got broad taste appeal. Middle america will drink maple water. They wont necessarily drink coconut water. Weird. Nasty. Disgusting. Oh, man. My company is bungypump. They are patented fitness walking poles. What were about to ask valeria today is by far the mother of all challenges. Oy, oy, oy. Meet my mother. [eagle cries] narrator deep in the heart of texas, two men carved a fortune from a harsh and unforgiving land. Butch gilliam transformed a humble machine shop