Nasdaq climbed. 39 , but if it is finally the beginning of a wave of deals. That can be great for everybody and not just the Companies Involved in the takeovers. Thats right. The huge deals announced today, publicists and on the merging for the Worlds LargestAdvertising Agency to lawrence tax bill and hutches bay picking up saks to tack the u. S. Luxury market. That will create a positive background that could fuel the next leg of a market. Let me first point out the life blood of the stock market. Its a huge component of the health of stocks because it reminds us these arent just pieces of paper were trading. They are Real Companies with real prospects and worth that should be owed, not just rented. Im not being too obvious. The it has led many to believe stocks are too high or companies would be buying each other, so takeovers inspire, wake up. You find yourself instantly richer. Perhaps just as important, if youre shorting stocks, then you wake up and suddenly, your insecure on these issues. You want to cover the shorts or buy them back, propelling major parts of the market. I also regard these type of businesses on the rest of us. The insider traders may have known about the takeovers ahead of time, but cant stop the rest of you from making money with their machinations. The concept of merger monday was well engrained. Get the job done and develop this classy monokl. It was always reassuring that companies wanted to buy other companies because it confirmed what we were payinging for ourselves. Weve been puzzling about whether theyve been back giving us a run up to the stock coupled with a lack of confidence among so many Business People that you hear about constantly and then today, first time this year, the day worthy of major monday monokerr and thats fabulous news to the bulls in the audience. So, lets be constructive three deals. The biggest to create the worlds top Advertising Agency. 35 billion to take on or fend off the digital competitors, namely facebook or google. On the combination jumped five bucks in the deal, then closed down 36 cents. Do you know what . To me, that means theres still an opportunity to buy here. As shareholders, well reap the benefits. Far more gains that might be lost by obvious represents both pepsico and cocacola. Thats not going to stand. Why the defensive nature of the deal . Because advertisers are going directly to facebook, google and twitter. I dont think this merger can stop that flow. If anything, if i was running one of these companies, i would have sought twitter. Two do not necessarily have the smarts thats something facebook, twitter and google, to another extent, salesforce. Com know how to do. With younger people increasingly turning to their mobile devices for news, sports and entertainment, you cant let them deck tate the terms to their clients. Tv, web, print, radio, thats going to be viewed as a positive by the clients. Somehow, the combined entity can wren f better terms from the online ad world. Second deal is kind of a puzzle, frankly. Its a head scratcher. Irish drug company for 8. 6 billion in cash. Knock off store brands, over the counter drugs. They can manufacture these products cheaply and charge less than the competition to make much more money than they do when they offer players like Johnson Johnson and proctor and gamble. Its basically a royalties from a bunch of pharmaceuticals. The ms drug made by biogen. Thats not like the perrigo we know. This deal allows the company to ship its status to ireland, changing the tax rate to a much lower rate. While i wish there were more to it than that, the combined will have higher after tax earnings. For more people, that is what matters. The third deal is the one that makes the most sense to me. Hudson bay. Buying saks. For 2. 4 billion for 16 a share. I know given that the stock went out at 15 and change friday, thats hardly a remember though, saks was at 11 when the chatter began, so youve gotten a gigantic return. Weve been pushing for Something Like this to happen for some time. The victim of an insanely aggressive plan from a previous management team, not steves. Every year with the growth coming from sales. Hudsons bay can spot l and ts into the real estate vacated by saks future closers. They were way too upscale for the neighborhood. Steve tried to make as much as possible with this deal. He has succeeded. He is a man of his word. Congratulations to saks shareholders. All three deals have different rationa rationales in the best market in the world, but more importantly, the stocks represent good values. Even up here, where so many say they have run too far too fast. Some guy on talking to judge wapner, talking about dow 5000. These deals say just the opposite. Elan and saks, which already run a great deal. They give the bulls the hope that the runs not over and another leg up could be upon us. Despite years of tapering, japan and jeopardy, they lead a higher valuations for other companies. Shire, pharma, another irish drug company or macys, which we believe is is the best in show. So, heres the bottom line. If you believe as i do that the stock market remains under valued, you woke up this morning with a validation from three sectors. That in the end is why we welcome back merger monday. Particularly on what should have been just a sleepy july day. And it should mean much to those who embrace the market and perhaps more importantly, to those who dugout it. Mark in california. Hey, jim. Thanks for taking my call and booyah from the inland empire. Oh, man, i love the inland empire. I used to go to the ontario racetrack. How old am i . The cards, thats a good segue. My question, id listen to you for a while. I listen to you all the time so i know you were kind of down on them a week ago, i heard you you know and i guess my question is theyve got earnings coming up and i know they were beat on announcements today, so everybody with electric, General Motors i want to clarify what people have been saying about me and tesla. When tesla became public, i said it was overvalued and it was and it did nothing. There was a really, really good call. Versus many other stocks i recommend. After i saw it, it got hot. That was about 100 points ago. I said it was a cold stock, but can go higher. I dont know why people think i hate it. I drove a tesla. I went to bmw today, but its a cold stock and because its a cold stock, i cannot use the traditional metrics to be able to reward jou with something on conviction. To fight people against the stock, that is just a crock, oday . I had to get that off my chest because im tired of hearing that. Its just untrue. Bobby in louisiana. Hello, jim. How you doing . Okay. What about dell . And the buyout . What about dell . I think you should sell, sell, sell. Why . View that there is variable side and three or four points downside. That is not a situation i like. Im trying to get everyone to ring the register at dell and move on to a company with actual upside. Zach in california. Hey, there, jim. Booyah from southern california. Nice. My question is about uncle medicine pharmaceuticals. Yesterday, it was down 32 . The recent ipo, but today, it rebounded up 8 . Do you think it can keep going and meet or surpass its original price . Ive got to check into the most recent, different. They had a bunch of trucks. Some have been disappointed. Others havent. Ive got to go do more work. Thats just not good enough for my audience. I like the audience too much just to say hey, looks good. Its not the way we play it. Debunked again today. Merger mondays, well, we had one today when you least expected it. Wake up call. If the market is indeed still undervalued. Well be right back. Coming up, black ink. Declines in the car trading business caused hard times for rr donnelly, but investments in new technology has reignited the stock, now up over 75 this year alone. Is the time to start printing profits for you . Dont miss cramers exclusive. And later, the perfect brew . Starbucks just served up a street shattering Earnings Report that made Company History and its not just about the morning jomorning joe. Dont miss cramers breakdown. Plus, on a ride . You may not be on board with schoolbus operators student transportation, but with an outside dividend and its eyes toward a new future of fuel, is it time to hop on or could this stock be ready to stop . Cramer talks to the ceo. Automat [ male announcer ] come to the golden opportunity sales event to experience the precision handling of the lexus performance vehicles, including the gs and allnew is. This is the pursuit of perfection. Sorry to interrupt, i just want to say, i combined home and auto with state farm, saved 760 bucks. Love this guy. Okay, does it bother anybody else that the mime is talking . Frrreeeeaky [ male announcer ] bundle home and auto and you could save 760 bucks. Alright, mama, lets get going. [ yawns ] naptime is calling my name. [ male announcer ] get to a better state. State farm. [ male announcer ] come to the golden opportunity sales event and experience the connectivity of the available lexus enform, including the es and rx. This is the pursuit of perfection. This is a market that loves comebacks. A month ago, i explained how r donnelly and sons, a Printing Company that you think would be obsole obsolete. Since then, the stock has given us a terrific 25 gain. Much better than the s p 500 in the same period and i think it would have more room to run. Its the largest player and has great digital and ebook business where they transform all things publishing into ebook format then distribute them. It pays a tremendous 6. 5 yield. Lets talk to the president and ceo about the quarter and his companys turn around. Welcome to mad money. Thanks, jim. Thank you so much for coming to the set. Now, i know that a lot of people have written you off, but it looks like from the cash flow tonight, theres a lot of room to run and the dividend looks pretty darn safe. One of mark twains quotes, my death has been greatly exaggerated. I think a lot of people know you as when you get a catalog, its printed by you. Get a phone book, good chance. A lot of people felt this business has to be challenged, but youve reinvented a lot of other things. Were 150 years old. Next year. Weve gone from the year 2000 from having seven products and 2013 and having 15 products. Weve taken what was a long run business, magazines, catalogs, inserts, that was 80 of our revenue in 2000. Now less than 2. The catalog is still driving people to purchase. And as you look at some of the Great Companies that we work with, that catalog is a Sales Channel for our customers and as you think about people that we work with, all of them are using every media possible to go ahead and communicate with our customers. This is, i actually have these. These are great headphones. You would make the box of it . Theres a box, a label, material inside that. Five years ago, that never existed, so everyone whos talked about the printed pieces going away. Weve evolved. Weve innovated, evolved and we do that and also for the electronic devices, such as e readers, we are also involved in those, packing and shipping those out. So, im writing a book right now. When it goes to my publisher, amazon will want an ebook. Eeber digital takes whatever the content is and formats it to whatever device its going to go to. Whether its your mobile phone, blackberry, ipod, ipad. Whatever it may be. Your laptop. So we are then taking that content and making sure it can reach again whatever that consumers using at that time. And youre also distributing quarterly reports. How does that business work . Because to me, why are you proprietarying that . Its a great business for us. If you look at our quarter, too, i think financial did come back strong with the ipo market being one of the best its been in a while. When you think about mutual funds, we play a role there. With our tagging capabilities, weve got the ability to take that data youre sending in that people trust us to deal with and get that out to the investors. Im holding up the quick response. This is a company that r donnellys doing, too, which is labelinging. Were doing more and more its an intelligent label. Still the label process. A printed process. What we can do as a result of it being a printed process, we can shorten the cycle time for companies to use it. Its being used for what i would call inventory tracking, supply Chain Management lost goods. Especially good for retailers in pharma, we want to make sure if youve got high value drugs, theyre getting to where they need to get to. A lot of people are going to say jim, you looked it because of the dividend. The common stock is 45 cents. That compares to 49 cents. Thats not necessarily the way to measure what youre up to. No, i would look at our top line. Pensions, not a friend of ours this year. Taxes arent a friend of ours. Back to pensions. A lot of people hit us hard on, we had a liability because of operation twist. That was about a billion four because of the discount rating coming down when the fed took their action. With rates going back up, we reduced that by about 30 cents year round, so thats a huge differential for us as we go forward. And also, just on the revenue growth, which i think is so important. This is the seventh quarter in a row now that youve had organic revenue . Weve got 100 of the fortune 100. Financial. For all products. All products. 60,000 customers. Were in 37 countries and touch 14 different time zones. All the things from going from a printer to print services to Global Communications provider is taking place and starting to come together. Now, do these Old Fashioned printers, with the phone books youve got here, is it just because people dont know the new donnelly does it pay to get rid of the old and just focus on the new . Our print Service Offering is going to be key. Prints not going away. Without newspapers, just in the united states, print is 119 billion business. Weve got 7. 5, 8 billion of that. Cut it in half, say it goes down to 60. Were still a small piece of whats going on and we dont believe its going to go away. The challenge thats being approached, it is both physical and electronic thats taking place that our customers are communicating with their customers. People have just underrated you. I find this happens a lot where people have an image of what a company is. Worked diligently to be not what you think it is and the message doesnt get through, which is why im so glad you came on the show. We appreciate it. We think weve got a lot of things going on from the Technology Capability side, but more importantly, from a communications standpoint. Were touching creation. Of the content. Managing the content. Distributing the content and most importantly, measuring the content for our customers. Our customers are number one. Weve got to make sure we reduce their overall cost and improve their investment. Its like a great little story. Okay. I want to thank tom, president and ceo of r. R. Donnelly and sons. Go through this quarter. Look at all the new products. Youll understand why its not so crazy to like a Printing Company that actually has only one bit of its company being printing the way you think it is. Well be right back. Coming up, the perfect brew . Starbucks just served up a street shatters Earnings Report that made Company History and its not just about the morning joe. So, how did they do it . Dont miss cramers breakdown. The anatomy of a piping hot quarter. If you have high cholesterol, heres some information that may be worth looking into. In a Clinical Trial versus lipitor, crestor got more highrisk patients bad cholesterol to a goal of under 100. Getting to goal is important, especially if you have high cholesterol plus any of these risk factors because you could be at increased risk for plaque buildup in your arteries over time. And thats why when diet and exercise alone arent enough to lower cholesterol i prescribe crestor. [ female announcer ] crestor is not right for everyone. Like people with Liver Disease or women who are nursing, pregnant or may become pregnant. Tell your doctor about other medicines youre taking. Call your doctor right away if you have muscle pain or weakness, feel unusually tired, have loss of appetite, upper belly pain, dark urine or yellowing of skin or eyes. These could be signs of rare but serious side effects. Is your cholesterol at goal . Ask your doctor about crestor. [ female announcer ] if you cant afford your medication, astrazeneca may be able to help. A talking car. But ill tell you what impresses me. A talking train. This ge locomotive can tell you exactly where it is, what its carrying, while using less fuel. Delivering whatever the world needs, when it needs it. After all, whats the point of talking if you dont have something important to say . This is a fly wheel. What does a fly wheel have to do with investing . The incline, the fly wheel is a rotating mechanical device thats used to store energy. You might note they collect energy over time, then release it to provide a big boost of power. But what you probably dont know is the success of starbucks, including an amazing quarter just reporting, one that added 3. 5 billion instantly, is based on the concept of the fly wheel. The ceo has created a strategy just like a fly wheel because the stores energy, then emits that at a level that exceeded the original power source. It includes 19,000 stores and global footprint growing by 500 units a year. Plus, a rapidly expanding consumer business, social capabcap capabilities and a nonstop pipeline of innovation. And the energy that a fly wheel produces gave starbucks the best samestore sales growth. Within 8 and a stunning 9 in the americas and asia pacific. Allows the company to report much better numbers than it should, including numbers that seem met physically impossible. Starbucks has made itself into a stock equivalent of a perpetual motion machine, which is why we have to examine this quarter because it contains everything you want a company to deliver. Yes. This has now become a new Gold Standard for a new threemonth period. One that seems impossible to stop. One thing that schultz admitted, to deliver the top number, but that it would be irresponsible. His words, he sukted the number be repeated. Hes saying its not the issue. Th