And the tenth consecutive of earn ings share growth. Our long term Strategic Focus in investment and brands and franchises are drawing value in the businesses. With this good news how much did the stock go up today. Three, four points . Wrong. In fact, it plunged. It lost more than three bucks or 4 today. [ booing ] it hit a new low of 86. Now in heck is that possible. How can a stock like clorox with meager growth sell 26 times earn ings while disney sells less than the average stock in the s p 500. How does hormel, the maker of spam, trade literally at twice the price to earn ings multiple of this amazing company. The answer on wall street is simple. Much of disneys growth comes from espn. Though ieger tells us 95 of sports with 81 of those viewers watching espn which engages more than 200 million adults across its platforms. The fact the espn doesnt have as many people watching over cable as it used to. Thats all the analysts care about. Just listen to the questions in the Conference Call after the presentation to see how laser focused the wolf pack Analyst Community is on this one issue. Almost nothing else mattered. Not the theme parks, the star wars down the park. Not pirates. It got so bad that a respected analyst on the call asked eiger maybe it would be better to split the company to nonneed wra side. Bring them value. I almost fell out of my chair. Eiger was too restrained and said i dont want to talk about separating the assets. When you go on disney rides, its two years after the movie and disney has to do with the integration of the business. Eige r and i share birthdays. The old guy looks younger than i am though hes are from a younger vintage. Disney works because it is under one roof. A disney divided wont stand to paraphrase another great guy with a birthday two days from now. When i was a Hedge Fund Manager i, too, would have pronounced disney dead. Why not . Eiger talked about an uptick in subscribers but didnt give us details. I would have laughed. I could have said if the up tick is so big, show me the money. Otherwise shut up about it. I would have viewed this babel about star wars video games, disney cruises as dodges for hiding the real flaw of the company. The rise and tragic fall of espn. Back then i would have thought eige r should accept defeat future. Espn is all that matters. Read mickey mouses obituary, bob. Get a grip. Im not a Hedge Fund Manager. Im a guy who tries to think long term. It is true espn was slowing. I know that its important for 2016 earn ings estimates and people arent watching entertainment the way they used to. Then again when i think about how many times disney has been written off over the years i have been invest ing whether because of the bombs of john carter or tron which signalled the sun setting and the movie studio. Including abc by other channels or the tired nature of the theme parks that were played out at one point. Nothing new under the sun. Company would collapse under the previous ceo. Each time disney reinvented itself through pixar, marvel or star wars. Through the rise of espn and the leverage ing of the property. When you have capital, cash flow and reputation that disney has you can reinvent yourself. Even if espn is falling off a cliff which it isnt. All ma mattered was the next quarter and maybe i think about the quarter after that. If there isnt an up tick in subscribers and slowing in the degradation of espn why not short it. There is no interest short term. The package is too expensive for many to afford. Those have to come down. There are too many ways to watch that arent lucrative for the company. I watch espn on the cell phone. There arent many derivatives we dont need. Too many big sports contracts they paid out fortunes for. The stock has come down huge. It got great value from pixar, lucas film and the wall Street Community had a gu faw about each one including the over pay. I was there when it happened for a price that would be halfway paid by this time or the first star wars runs its course with many more behind it. It was a steal. Hopefully there are more laughable deals coming. Maybe there is Something Else out there that can replace the shrinking rev new stream thats espn or the stream that was abc or snow white or mickey mouse or whatever. I dont know where it stops going down. Disney doesnt have much protection. It could increase the payout and become a high yielder. It has so many opportunities. I dont know how much the earnings will be hurt when it comes to how much money espn is going to get per subscriber. I know this. At a certain point soon disney stock will be trading as if it is a big dumb cyclical rather than fabulous brands like procter or colgate but with more growth than the packaged goods and cyclicals combined. Calling every day after the close of the market asked how i could be so stupid as to own disney. Dont worry about how the next you are thinking of the next year, two, three, five or your kids or maybe their kids. You can short disney until the cows come home if you are a Hedge Fund Manager you may make money but the decline from 122 to 88 was the one you were supposed to get. Or acknowledge that eventually the cows come home. When they do, you will want to own it. I would start a little bit at 86. Buy it down slowly but surely. It flies back and you have some at a great price for an investment. Thats what matters for you. Not the next 2 million, 4 million or 10 million lost espn subscribers. Long term, disney is going higher. I forgot what a 61yearoldle fool i am. Who cares about the longterm. George in florida, george. Caller yes, cramer, booyah. Booyah. Carnival cruises. Its had excellent growth. 22 since december especially with the buyers. This is i hate to put this deadly to boel but this is similar. The stock is down to 2. 76 yield at 43. You know arnold donald. Hes come on the show. I wish hed come back. Great guest. Its down 20 . Just buy it. You put on half today and the next bit of bad news you buy the other half. Its ridiculous. Mike in delaware. Mike, mike, mike. Caller hey, jim. Im 28, just starting a new job and going to be invest ing in retirement for the first time. I heard to invest in cbi and cbs, but with the market how it is im nervous to invest. Should i invest in those . Cbi is too relate tos fossil fuels. Cvs which is Charlie Victor run by a fine merlot and is doing well. The stock reported a great quarter. I would buy that. Dont be afraid. Buy 25 of it now. Say you want a hundred shares. Tomorrow buy 25. 90, another 25, 85 another 25 and at 80, buy 50. Buy in stages and admit we are all fallible. Andrew in florida, andrew. Caller hey, jimmy. Happy to speak with you again. What an honor to wish one of my heroes a happy birthday and also say i share a birthday with you. Oh, my god. You have to come back and go to bar san miguel tonight. We are celebrating with the from a diavolo shrimp dish. Its good. Caller my question is about mcdonalds. I am of two minds on it. You say nobody got hurt taking profits but i see how well its downturn. Do you think its been consistent because of the safe dividend a la clorox or it has room to run with increased sale s in the states and most recently japan. This is an unbelievably good question. I think i believe in easterbrook and it will go higher. The fact that it didnt go down big in this exactly as you said. Exactly as you said. If its telling you the stock isnt going back 108, 110 you buy 50 of it here and then hope it comes down. I bet you get that and not much more. All right. Hakuna matata. Disney has the magic long term. You have to think long term. The cell phone business peaked. I have the ceo. Then 211 ipos in 2015. Head scratch. Has had it with ipos and the Largest Hotel company in the windham worldwide at lows. Stick with cramer. Announcer 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. Head to madmoney. Cnbc. Com. A heart attack doesnt care if you run everyday, or if youre young or old. No matter who you are a heart attack can happen without warning. If youve had a heart attack, a bayer aspirin regimen can help prevent another one. Be sure to talk to your doctor before you begin an aspirin regimen. Bayer aspirin. Janet . Cough if you can hear me. Dont even think about it. I took mucinex dm for my phlegmy cough. Yeah. But what about mike . It works on his cough too. Cough it works on his cough too. Mucinex dm relieves wet and dry coughs for 12 hours. Right now the conventional wisdom is am has peaked. As much as the market views these stocks with fear and loathing we have to take a more considered approach. Not just because of the new iphone coming out this fall. At the same time a great many people would be eligible for upgrades from wireless providers. The maker of High Performance radio frequency and analog chips for cell phones, tablets, cars, wirelessle networking and various industrial and military applications. Sky works is seen as a play on cell phone components, particularly for apple. The stock will be down 20 year to date up nearly 50 from its highs last summer. A brand new low just today. Sky works just reported less than two weeks ago. The company delivered off 1. 58, revenues that increased 15 year over year. Growth margins expanding. Those are good numbers. Management indicated the next quarter might be lighter than usual thanks to weakness at a major customer. Wonder who that is. I have to wonder if the stock has been punished enough. Lets look at david altars of sky works solutions. To get a sense of how the welcome back. Thanks for having me. Commence volume shipments. First mass production Vehicle Communications gm. Flag ship sam sung launched nest. I could go on and on. These are 2016 highlights. When would they mean more than one particular customer and that customers window where it is not making cell phones. Well, thanks. Thats a great question. As i think you know we were an early mover in taking and deploying technologile that we perfected in cell phones and wifi and connectivity into a host of iot applications and vertical markets. We are in the home or nest thermostats, smoke detectors, google and roku entertainment. We are in lightbulbs, continuing to round out the portfolio. Frequencies with lots of communication bands and we are able to simplify that with the scale and breadth of technology. Make it easy for the consumer and easy for customers to integrate the technology. It is 25 of re new today growing year over year. It will continue to outpace the market to become larger and larger component of the business. How do we get the story other than in your great and transparent deck that you are a play on gaming, 20 hours a month. Streaming music. Standard def video, high def like hbo and espn and 4k video, netflix. You might be the best play on netflix other than netflix. I think thanks for saying that. We are in google devices in the home. We are in virtually every high speed stream ing entertainment device, gateway inside the home all the devices needed together and the complexity of knitting those Different Solutions together in the home whether its speakers, television, security monitoring systems. They are all operating over different modes. Sky works, better than anybody in the world is able to simplify that in concert with customers, make it affordable, make it small, make it consume less current. I think equally important, drive high speed reliable high speed. Thats going to continue to be a big piece of the business. You mentioned something important to people at home. Extending we didnt say we want to be an iot player or smart vehicles, vehicle to vehicle or in the connected home or machine to machine. We are solving the problems we had to solve with the kre lou for new companies entering markets that have never been connected. Hub, all the devices and connectivity is something we could play a major part. Thats a bigger part of the business. Its like youre the patriots. We just presume they will win the super bowl. Then they dont win it and suddenly they are beatable, not that great. Vonn miller could beat them, one player. I feel something happened where the stock went up a lot. You became the patriots and when you didnt win the super bowl they had to cut you in half. We delivered earn ings up 30 we are a 40 operating Income Property with growth thats far in excess of the market because we are playing in the right space. We are in mobility, connectivity, increasingly in vertical markets going connected for the first time ever. I think that and as we become more important to the end customers, we are seeing a great deal. We have more visibility now into the second half of 16 well have a terrific second half of calendar 16 and have to work through inventory collection in beyond that. We have been around for a long time. When the company was in trouble, you said the company was in this is certainly not the situation now. Our midterm model, one and a half to two years is to get to 8. Well grow faster than the well do it in a careful way. Manage operating expenses. We are now into the low to mid 50s gross margin. Not Many Companies growing with 40 operating income. We event missed a quarter. We are conservative and going after the markets. The iot, connected home and the automobile. You keep delivering, i think the stock got too high. What can you do, thats not your fault. Now the stock is too low. David aldridge of skyworks solutions. Great to see you, sir. Great to see you. Thank you, jim. Stocks come down a lot. Somebody bought it at 120. Now half that. Give me a break. Announcer coming up, Rock Paper Scissors is more than just a friendly game on wall street. When the Federal Reserve chair fading, and fuzz. With downy fabric conditioner. It not only softens and freshens, it helps protect clothes from the damage of the wash. So your favorite clothes stay your favorite clothes. Downy fabric conditioner. Wash in the wow. Man sternly where do you think youre going . Mr. Mucus to work, with you. Its taco tuesday. Man youre not coming. I took mucinex to help get rid of my mucusy congestion. Im good all day. [announcer ] mucinex keeps working. Not 4, not 6, but 12 hours. Ive been on my feel all day. Im bushed yea me too. Excuse me. Coming through ride the gel wave of comfort with dr. Scholls massaging gel insoles. Theyre proven to give you comfort. Which helps you feel more energized. All day long. I want what he has. Weve got trouble in tummy town. Peptocopter when cold cuts give your belly thunder, pink relief is the first responder, so you can be a business boy wonder do you know that while there have been a couple of tiny bio tech ipos in february there wasnt a single initial Public Offering last month . [ bear growling ] not one. Just a big fat goose egg making it the first month without a [ booing ] so why has the market for ipo dried up rapidly . The reason is simple. The losses people have been enduring from last years horrendous ipo vintage. Yep, look at whats happened to the companies that became public in 2015. The ipo class of 2015 has been a debacle. [ booing ] of the 211 stocks that became public last year only 45 are up from the offering price. Four are unchanged and the remaining 162 stocks are down from where they became public. 76. 8 of the stocks that ipod in 2015 have lost you money. Even if you got in on the initial deal. Take that unicorns. [ bowling pins ] pin action, you are going nowhere. Has the market turned against fresh faced ipos which are more wreckage of the deals . Well, the biggest losers among the class of 2015 are too small to talk about on television. Incredible how they have shrunk. I would love to give you the names. Thats not our style. Many are tiny bio techs that are tinier. One of the worst performing stocks that i can talk about, one of the worst performing ipos is terra form global. Thats the spin off from the troubled sun edison. It became public at 15 in july. Now trades at just under 3. Thats a monster 80 decline. On the flip side the best ipo in the class of 2015 is large enough to discuss on television is shake shack which became public at 21 in january of last year and now is up 65 . Wait a second. Shake shack can hardly be it started trading given that the shares opened at 47 and spiked up to 96 and change in may. There were too many deals last year to go through. But the class of 2015 one by one. I think it is important to get a sense of what happened here. By analyzing the performance of last years ten largest ipos. Biggest deal was first data. The Electronic Payments conglomerate taken public by kkr in october. I warned people away from this one inned a vance. Including the truly rid use decline today in the wake of a disappointing quarter. This looked like a loser from the gichblgt with tepid revenue growth, lack of earnings and a heinous Balance Sheet the thesis was based on saving money on Interest Payments by cutting the debt because it had 20 billion. With the persistent turbulence in the credit markets its hard come through. With todays quarterly result and you have a real stinker of a stock. Man, what a foul smeller that is. [ booing ] the second largest ipo of 2015, another stinker. Tall grass energy, an oil and gas pipeline partnership. They have just been obliterated. [ train wreck ] no exceptions for tallgrass now down 60 despite repeatedly boosting the distribution. Who cares . We built out too much pipeline sfrux if oil will stay lower and i believe it will. Last year we saw a bunch of these limited partnership ipos. It was ridiculous. In the top ten largest deals there were two more pipeline companies, columbia and that was the third biggest ipo. And gp holdings. Columbia pipeline down 40 since it became public. A year ago. Gp is off 31 since last may. This is in a house of pain. [ house of pain ] i dont think there is any end in sight. It may not be near time to bottom fish. For the record on mad money we dislike all fossil fuel stocks because you dont need a weather man to tell which way the wind blows. These are hardly unique. Consider ferrari. It was spun off by Fiat Chrysler in october. Since then they have lost 42 of value. Some of it because it went public with a sky high valuation making it far more expensive than other plays like tiffany, coach or louis vitton. When the Company Reported the Firs