The year where were overloaded with earnings information, most companies in the s p report this week. Remember that the professionals listen to every Conference Call check every model and do deep dives in each quarter which means that unless they get up at 4 00 a. M. And work until 11 00 p. M. They simply dont know about what should be bought and what shouldnt be, and i have to tell you, thats why a lot of mistakes are made. Thats why i tell you at home to stop, look and listen during these periods. As we try to run the gauntlet created by the cacophony of earnings season. Whats exactly in store for us for the rest of this week. Tomorrows all about apple and ten days ago the company made a major push into china and the worry is the sizeable chunk of buyers may have been margined out of this stock positions in the great crash of china and they migrate to the expense of iphone 6. Not this quarter, since it didnt include the chinese debacle and thats why it is so important not to trade off the headlines that came out which i believe will be terrific for apple and instead you have to wait to hear about the commentary about the month of july particularly in china. Those that are in apple watch results. Im telling you, theyll sell the stock immediately and the watch is still in beta form. Of course, its showing me the time in cupertino. Thank you. And not yet driving traffic toward apples phones. As you need to have an iphone to need the watch work making this a potential gain and not loss leader, but game leader for the signups for the whole apple ecosystem, the success levels im seeing for the watch are off the charts each though sales are disappointing. My advice on apple with z for those of you who sold the stock is to hold apple until it becomes an expensive stock which is a lot higher than where it is right now and listen to the commentary about nextgeneration products that are expected and theres a gigantic move over the last few days. Microsoft also reports tomorrow and were all wondering how quickly microsoft can get to its huge ambitions of being more of a Cloud Company. Its ahead of ibm which reported tonight for certain, but how much ahead . Well find out. I will say this microsofts last quarter was pretty superb and personal computers are now declining in the high Single Digits, more on that later, and that business is still super important to the company no matter what with the release of windows ten now upon us for free, no less. It would be hard for microsoft to position itself as cloud, cloud, cloud, which is the m. O. For aimes. We know about the painful writeoff it is finally taken, but wouldnt it be terrific to get clarity about the prospects for the takeover of sales force. Com . Remember that . I doubt theyll get it, but would be the Cloud Company we all want. Finally, chipotle has climbed 12 in the past two weeks which is too bad because when it reports tomorrow it will be hobbeled by some supply chain issues and lets hope you can find enough humanely raised hogs and thats the problem with carity in as and faster samegrowth sales growth as long as the belief that the company will talk about International Expansion and new restaurant concepts. Either way, the risk rewards will be made perilous by chipotles recent run. Its the last Conference Call thats going to be led by outgoing ceo jim mcnerney who is retiring as ceo after doing a remarkable job and its difficult for me to believe that the quarter will be a swan song and only if the yahoos take it down and some sort of herd panic that we have and typically in the first half hour of trading and thats been the case for the last few quarters. The longterm game plan is so ingrained that even if you mistakenly leave that mcnerneys retiring at the top of the aerospace cycle the stock is still worth owning and two stocks that have not distinguished themselves of late cocacola and American Express and coke can surprise for very impressive expense control, good advertising and gains with the affiliation with monster beverage but American Express while due for a bounce doesnt seem to have a handle on things at all. I prefer paypal even at these allegedly exalted levels. Qualcomm reports to and all i can say is this will be one more reminder that cuervo and the chips to the Cell Phone Companies and now expectations are exceedingly low, but be careful here as the stock often pops until guidance on the Conference Call pops the balloon. No need to be a hero and call the bottom on qualcomm. Speaking of underperforming stocks well hear about how caterpillar and mcdonalds are doing on thursday and i think that both will be as upbeat as possible, but it might not mean anything and caterpillar has been generating impressive cash flow and the big mining and oil projects and theyre being canceled left and right and you see the decline in oil right now through 50. The hope here is the commitment from china for more infrastructure and remember the coal Mining Machinery company at the exact top of the cycle and the state of coal each in chinas gotten quite bleak. Mcdonalds got a bit of an issue and the ceo made a very successful turn overseas and he even has to deal with the disillusioned group of franchises in the country. As i said last week too legitimate investment starters and the former involvement at the turn in wendys and the latter at burger king, two lesser properties than being in mc, this chain can be indeed fixed and that Balance Sheet allows for dynamite dividend while you wait. I like the risk reward from mcdonalds. After the close we hear from amazon, and i think it will be darn good because if only because whatever they do has brought so many loads of love from the Analyst Community lately with three different firms pushing it just this morning and expect more clarity on the model and a bunch of number bumps and netflix and starbucks which also comes thursday, and i find this one more difficult, and you know i love the stock. Its outstanding the decline of the price of coffee is sensational versus what you pay at the store and starbucks is hurt by the strong dollar and it has more expenses as it tries to entice better workers. I think you need to wait and see at this point after the monster run. I also want to hear whether the huge jump in the best acting Big Pharma Company eli lilly is justified by some results for its alzheimers treatment. Its reasonable to conclude that the run in the sleepy stock came about because of the leaks of effectiveness of this product. It better be. Because on friday we heard from biogen on this topic and the latter has been quite promotional they think it might have something here for alzheimers. It will be an alzheimers duel and we promise to follow up and friday were looking for confirmation that the gains run last week and american reports on and its got heavy integration issues and if they talk about tighter root structuring and lesser competition, i say go buy more delta. Heres the bottom line. Its a tall order week and one prone to costly snap judgments. Dont make them. This is a learning week. Dont turn into a gamblers paradise where the casino gets more than its fair share of winnings. Lets take calls. Ross in utah. Ross . Jimbo, a Big Salt Lake city booyah to you. Like that, whats up . My wife and i have popped a fresh bag of popcorn every night to watch the show. There you go. Thats the right way to approach the show literally. We have a large position in solar and with the recent news this morning that sun edison will be buying it for around 2. 2 billion, what do you suggest i do now and what do you think is the forward sector for the future . You know ive been a huge believer in sun edison and its been my absolute favorite they think is the one to own, and i need to continue that and we have a very very big gain and i feel that what will happen here theyre issuing some stock and some convertible notes and heres what i think. Own sun edison and thats the play, it really is. Theyve done a miraculous job, by the way and it used to be hated when it was part of the Big Semiconductor company. Lets go to randy in arizona, please. Randy . Booyah, jim. Booyah. What are your thoughts on barrett gold . No no the Gold Companies break even levels are way too high versus the price of the precious metal. If you do want to own gold as an insurance which i do think is right, its the gld. That is the cheapest way to do it. These actual gold stocks with the exception of rand gold are just it just costs too much to take it out of the ground and go read the quarters. Youll see, they lose money on most of the prospects unless gold goes back to 1600 which is not going to happen. Dave in illinois. Dave jim, Steve Carlton cramer a far cry from selling ice cream at veteran stadium. Never call me lefty and i dont necessarily share his political views, just for the record. Whats up . Your pops would be so proud. Jim, one week for today, anthera pharmaceuticals, anth and they look over the next takeover target using receptos as a model of companies having one drug already on the market and one drug in phase three trials and anthera and two other companies were selected and the stock is up 18 today alone. What are your thoughts . Im uncomfortable with that they did an equity offer on july 9th, and cant recommend that stock just on the takeover. Receptos, theyve done a huge amount of work on that company, saying that it did have the great new drug of its time and seeking it but i cannot recommend that stock on a takeover and not if they just sold stock within two weeks time. The Companies Reporting this week are going to get the bums rushed. Dont be one of those rules and take this as a learning week and at least stay for the guidance part of the Conference Call and youll make a mistake. On mad tonight, understand the rules of wall street. The takeover and well talk about receptos and celgene, the acquirer popped on the deal. Ill show you why thats rare and help you spot future winners in my ultimate takeover guide involving the fundamentals, and then its a Monster Company that makes everything from splenda to stents, but should all those products belong under the same roof . Im making my case for a breakup at one of the biggest names in business. Plus the one thing you do not want in your portfolio right now. 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. It took Serena Williams years to master the two handed backhand. But only one shot to master the chase mobile app. Technology designed for you. So you can easily master the way you bank. Last tuesday after the close of the market celgene, one of my most recommended senior growth biotechs announced it was acquiring receptos and my favorite spike in the biotech for 7. 2 billion in cash. Normally when you see the deal you expect the stock of the target to roar higher which is exactly what happened to receptos. What you dont expect is the stock of the acquirer to rally almost as much but thats exactly what celgene did that first day and 7 and it has moved back since and its now almost 10 since the deal was announced and that exceeds the amount paid for receptos for heavens sake. How is it that celgene can see it soar into the stratosphere, for a company that doesnt have products in the market and any profits. If you want to know why celgene has run up so much and why it can go higher you need to understand the companys outlook and more importantly, its Growth Profile improved dramatically after a major transformation. Each though celgenes 232 pershare offer only represented a 12 premium versus where receptos was trading the day before, the fact is its a 46 premium of where it was three months ago and not to mention where receptos was a year ago so celgene forked over a lot of money for receptos, and we know that this transaction is going to cost them money over the next couple of years. Only becoming earnings neutral, not positive neutral in 2018 and thats right. No payback before then yet celgenes stock has roared since the deal was announced. Why is that . Regular viewers know that celgene is r with immunology and inflammation and especially oncology. The company has a number of products on the market like breast and pancreatic cancer and acute Myeloid Leukemia and special kinds of arthritis and psoriasis, but celgene still gets the majority of its sales from the cancer drug that brought in an astounding nearly 5 billion last year and thats why this receptos deal is so important. Even though it doesnt go off patent until 2027 in the u. S. And 2023 in europe and celgenes dependence on this one drug had caused a lot of people to worry about the companys longer term prospects and thats why buying receptos was such a brilliant move. [ applause ] receptos lead drug candidate has blockbuster written all over it. It is a pipeline of drug and the possible best in class treatment for multiple sclerosis, irritable bowel, Crohns Disease and a whole other auto immune abnormalities. It can do 8 billion in peak sales across this in the not to distant future. It gives it a blockbuster franchise. The truth is celgene has made a number of efforts to diversify the portfolio, but the receptos deal is the biggest step forward in that effort by far. The m. S. And Ulcerative Colitis and they have explosive, medium term cat lit. Alystcatalyst and once this drug hits the market celgenes management, can bolster the earnings by 2019 and they think theyll become a key driver by 2020, thats why when celgene announced it was buying receptos the company told us they could expect to earn more than 13 bucks a share in 2020 and it was hitting that market and making a big splash in m. S. Crohns disease and Ulcerative Colitis which is the reason why they recommended receptos in january and lets put it in context so you can understand whats going on here if they earned this in 2020 then here near the alltime highs, the stock is trading at barely more than ten times its 2020 earnings numbers which means its going to start looking darn cheap as we get closer and closer to whats known as those out years. When you think about it like that paying only 7. 2 billion for receptos makes a transaction a steal for celgene and thats yet stock hasnt stopped running since the deal itself and why its not finished going higher. This is a textbook example of the concept that what i call about rerating on the company and its share price is all about the earnings estimates and what were willing to pay for the estimates and the price to earnings multiple and the pe multiple and its that equation that im always telling you about, and its e, the earnings times m, the multiple and the share price that youre willing to pay. We know the receptos acquisition bolsters it in the out years pretty dramatically. Whats more important here is that i think this deal will cause celgene to get a larger multiple, the m. We know what theyre willing to pay for the companys future earnings is very depend own the the growth rate. In the case of celgene, this is a darn cheap stock for biotech, trading 22 times next years earnings estimates despite its Phenomenal Growth because the people have been worried about this. Before this receptos deal was announced, celgene had promised the intermediate Earnings Growth, but the prospects were considered murky and the overhang, being waged by a Hedge Fund Manager and the Hedge Fund Manager challenged the patent from celgene and not because he wanted to make aen cheer, generic knock off of the drug and he filed the suit because hes short the stock and wants to knock it down. Is this a great country for hedge funds or what . It lost the premium price attorneyings multiple and people were worried it might not have enough growth in the distant future and with the wonder drug and celgene has a much clearer longterm growth story with highly visible Earnings Growth for the next decade and thats the kind of thing that investors are willing to pay a higher multiple for. Celgene, a company thats thought of as an enterprise is the bigcap drugmaker and the kind of drug that portfolio managers, if the fed raises rates and investors have turned out on all, but the best of the big pharma stocks. So heres the bottom line. Celgenes been flying ever since its acquisition of receptos was announced last week and if anything, i think the stock has a lot more room to run and wall street continues to rewrite the companys longterm prospects to the upside. What can i say . An incredible story just got even better. Theres much more mad money ahead including my take on one of the Biggest Companies on the planet and how a breakup can take it much higher and then the black hole value of destruction. Ill reveal one of the worst investments, plus what soupy sales has to do after the selloff tp stick with cramer. Ive said it before and ill say it again, Johnson Johnson needs to break itself up this time theres real urgency because last week the company yet again failed to deliver an upside surprise. Weve now waited two years for. Heres a company that is three different businesses under the same roof, pharmaceuticals, Consumer HealthCare Products and medical devices. Thats a pretty diverse product line with virtually no overlap, and as weve seen so often in the past i think these divisions can do much better separately than as one combined company thats confusing to manage or even understand. To me j j is a textbook example of the parts being worth more than the whole which is why the Company Split its