Jim Cramer: Good morning all. Welcome to a special earning season edition to our monthly actionalertsplus.com call. We've been working for hours already. I always like to start off my calls thanking you, our club members, for joining us today. As you know, if you have been a long-time member, or as you will learn if you are brand new to this club, these monthly calls are an important time where we can really speak freely to each other. Give you that behind-the-scenes look into specific details that goes into decision making. How we do it?

Jim Cramer: After all, our mission is to teach you how to be a better money manager of yourself. You be a better client, that's fine too. The best way to do that is through communication into how we analyze the market and apply these strategies into our investments. Something I always wished I had when I was starting out. Or, even, let's say if you're a hedge fund manager taking it now. Today I'm going to give you five rules to live by on this kick-off of the reporting period that has been so frenetic already. Feels like at the end of it, it just started today.

Jim Cramer: Before I do that, we have so much news that I want to riff on the stories that impact us this very moment. You know, we have three stocks that are in play, so to speak. All positive, by the way, this morning. Let me take them one by one. Last night, Bob Iger, CEO of Disney traced out a story that will bring growth back and put to rest the idea that there's nothing here but declining ESPN numbers. He lowered earnings, as we told you he would, but he gave amazing specificity about what will happen in the out years. That's portfolio manager speak for the grand future. I think Iger gave you a $6.99 a month package that is a huge bargain, versus what you can get as a parent trying to get content to your kids in a piecemeal way.

Jim Cramer: I speak to my sources at Disney, they were really trying to figure out exactly what was the price that would make it so you would say, oh my, this is a steal. I think they got it. I think, though, we are also underrating so many other things that are getting lost in the shuffle. The content, the new content, the Fox content, 'The Simpsons', the price points. They make it a must. I bet any parent, core-cutter or not, will question if he or she should buy this. In fact, I can see where you might tell your kids, this is your channel. Maybe also, National Geographic. Wow. That's so exciting, so exciting to be a kid. Period.

Jim Cramer: Theme parks. They're on fire, they're going to get hotter. With all these new rides that they can do. I thought they were out. No, they got bunch of them. Cruises, they're fantastic. I know they don't move the needle, but they're fantastic. How about this one, movies, now that you have Fox and Disney that amount to get this, maybe 35 or 40 weekends per year that they win. That's what I've been looking for. I always tell Bob, listen be like Proctor, these billion dollar brands. That's what they did, that's what makes it so buyable.

Jim Cramer: No, we don't buy up nine or ten for the club, you know that. We bought last at $108.83, a couple weeks ago. That's what we do. Thanks for all your thanks that we did that. There are more catalysts, we're not sellers. I personally went to Bob Iger recently to ask him if some of the characters in 'Avengers' who died can come back to life. Wasn't long after it had come out. Practically begged him. After all the tears that were shed by my wife, he stiff-armed me. He told me I had to see it. I got two more weeks. You've got two more weeks before we're there. I think it could be the biggest movie of all time.

Jim Cramer: All right, APC the Anadarko bid. Club members know that we've been so upset with our oil, especially Anadarko, which we bought because of its holdings, meaning its actual land holdings that we thought would make it a possible take over. We also bought it because it's terrific balance sheet. Execution. Dividend. Instead, we got a miserable Colorado ballot initiative that almost cost them a lot of growth. By the way, even if they won, it didn't go higher. That's because they did terribly, in terms of execution. They were more gassy than oil, I thought.

Jim Cramer: I say thank you Anadarko for redeeming yourself. Do we tender to Chevron? The team wants to assess the opportunity here, as we like Chevron very much, but we don't like oil, as you know. Now, Chevron is a lot like BP, down ten cents today. Therefore, pretty compelling. Let's call it a work in progress. We have no gun to our head. I know we would be more thoughtful about what to do if we didn't have this call. We have to get back to you there's no snap judgements here. Like, wow the analysts we made already today. How did they come up with that they sell immediately?

Jim Cramer: Then there's JPMorgan. Jamie Dimon did an incredible job, and each month was better than the previous in this quarter. This is 9.2 billion dollar profit quarter. Nine-handle. Trading excellent. When was that? When did that happen? Capital market's bubbling, numbers have gone higher. I think this stock is not done going up, even after the big run today. A lot of times when you see a stock like this up four bucks, it's mainly because there are just so many more buyers than sellers here.

Jim Cramer: As an aside, Citigroup. Citigroup worries me here, because I do not think it can be as good as JPMorgan. Bank hasn't executed well. We're debating down grading it. But, suffice to say, I would not buy Citi up even a dollar. It's bugging me how badly they're executing.

Jim Cramer: Now, let me step back from the day-to-day and give you an overview of where we are, and how we are thinking about the market. First, we have said that as long as we are not fighting the fed, we are fine with having bigger, more aggressive positions and less cash on the side lines. With a couple exceptions, notably healthcare. More on that in a moment. It has served us well. Remember, unlike so many of the people I have to listen to and read, we are not as fixated on whether earnings as a whole ... Not like we own the S&P 500 ... Earnings as a whole are going to be up or down. We are not as macro-focused about how the economy is going to do.

Jim Cramer: I don't want to say it means nothing to us. I am going to say it means something to the federal reserve, which does mean something to us. There is enough mixed data, away from the super amazing unemployment numbers. 1969, best since '69, but no inflation. For me to say that we do not have to worry about the fed ... recently I bumped into my old pal Larry Kudlow from Kudlow and Cramer days. We talked about the needed discussion at how wrong that last rate hike was. The only thing good about it is that it could be taken back. When you have that luxury, you have to press your bet and buy stocks on weakness.

Jim Cramer: This has stood us well, think of Disney. Our reluctance to part with stocks despite the run has been a shrewd decision too. We are glad we made it. We made a bunch of mistakes, I always call them out. These calls have been so much flagellation, they're painful. We're glad about today.

Jim Cramer: It's funny, when I woke up this morning, I knew I had to do the call. I have the Apple Watch, and I have it set for a Wall Street Journal ... When they give you the bulletin, I was wearing my watch, and it said ... I woke up and is said Chevron to buy Anadarko. Now this is a good day. Any given time, I am always trying to figure out how many different ways to win there might be. One of the reasons why I like this environment, you know we are overbought, is that so many kinds of stocks can win right now.

Jim Cramer: Higher yielding stocks, including stocks with dividends that give you three percent will work. Because, the ten year is at 2.5%. By the way, you see Dow Chemical up today? We all knew they were going to have a big dividend, it's right in line. But, the stock's still flying. People are looking, and they continue to look for yield. Actually, I tell you, I don't know if I even want to own much Dow here. We're going to have to talk about that. Also, by the way, a stock like Pepsi, which we haven't looked at in a long time, that's starting to intrigue me again.

Jim Cramer: Okay. Tech stocks work, as long as they are not too commodity oriented. Their sector of growth buoys them regardless of the rocky nature of the economy. International stocks work if the trade talks are successful, and they will be successful, swiftly. If the stock market comes down, because the President would prefer to sacrifice some of the win against the Chinese, to keep the stock market chugging higher. Well then, these multinationals will do just fine. Good piece of the journal tell you about how 3M hasn't broken up. It hasn't needed to, because the international stocks are on fire.

Jim Cramer: Retail works, because expectations are so low. As I saw when I spent the day at the JPMorgan Retail Conference. Boy, did I learn a lot there. Probably, if you want to catch up tonight on 'Mad Money', I'm going to have Matt Boss. I never put analysts on, but Matt did a great job at the conference, JPMorgan. I think the financials now is a bit of a problem. JPMorgan raised the bar so high that I don't think our other banks, Goldman and Citi as I mentioined before can beat it. Citi's executed poorly. Mixed its numbers by buying back 7-8% of its stock per year ... 7-8%. We want earnings growth, not buy backs. We want revenue growth.

Jim Cramer: Goldman ex Malaysia could be good. But, that's a little like saying, other than that Mrs Lincoln, how was the play. It's fintech world. I do have remorse about selling PayPal, especially because I had lunch with Dan Schulman a week ago, CEO. Wish we could get back in, but that's woulda, shoulda, coulda. You know I don't like that.

Jim Cramer: The only group that doesn't seem to have a place is healthcare. As we are now too close to the election to be driven by the fundamentals. Every headline causes a hiccup in two of our positions. United Health, oh man, and CVS. Let's just say we're choking on those. I believe that UNH will report a good number next Tuesday, and announce an expanded buy back. I also know that the analysts are beleaguered, portfolio managers are frightened out of their wits. Which is why the stock is slicing through levels like a machete through butter. We're not going to game this quarter, it's part of what I'm going to talk about in terms of gaming quarters.

Jim Cramer: We do not believe that the political environment will lead to the unraveling of this fabulous company. We want to assess it after the quarter when we have more information. CVS, what can I say, it's our biggest disappointment of 2019. We truly thought that Larry Merlo, the CEO had more of a plan about merging Aetna with CVS. The timing, obviously not so great. Both when we bought, and when he bought. Now, it is a show-me stock and we are ... It's a sh-ow me stock. We're willing to wait with that yield until it shows us. I am mad and angry at myself because I thought that this one could be like Disney, where Larry would trash this year's earnings, but then tell you a fabulous story about next year, and the year after, and the year after.

Jim Cramer: Amazon and Capital Hill make this combination of a drugstore chain and managed care and pharmacy benefit manager. Let's just say it's gone from best of all worlds to worst of all worlds in just a few months' time. I still have faith in Larry. Pulled up with him recently, at a beautiful CVS in midtown. If I didn't own it, I would wait until we would buy more, and I think that's when the yield's 4%, which is not that far from here.

Jim Cramer: Back to the macro. We are in an environment where the fed is on hold. I know that this morning when you see all these numbers you have to say is it wrong to be on hold. Look, they just went on hold, they're not going to say now we're not on hold. That just makes them look too bad. We aren't fighting the tape because so many stocks are benefiting from the environment and the competition of stocks is low enough ... Thanks to the fact that we did have a slow down Jan and Feb. It's almost irresponsible to keep too much cash.

Jim Cramer: If you recall from my last couple of calls, my biggest worry is that the IPO market would siphon off all the cash that was needed to power stocks higher. I figured that the bankers would have teed-up the first big deal, Lyft, so well that stocks picking institutions, as opposed to index funds would cash in their most aggressive holdings and tell the brokers they wanted huge positions in the array of deals coming down the pike. But, when Lyft blew up, that took the biggest worry off of the table.

Jim Cramer: I have to believe still down big that the hedge funds were in these stocks because it's not like traditional venture capital owners. They found a way to get out of these somehow, and it's putting pressure on the stocks. I really believe that. Remember, I am a supply and demand guy when it comes to the market. When there is too much supply, it doesn't spur demand. It's not like the supply siders. It overwhelms it. We need to lower prices.

Jim Cramer: The S1 just came out last night for Uber, and again, we have a you either believe it or not type of situation. We may never be profitable ... I don't know, I like profits. We need to see where they price the darn thing. But we know that the enthusiasm for new merchandise is sorely wanting. Which plays right into the bulls hands, as there won't be a lot of foreselling to buy new deals. We have done the work on Pinterest for instance, it looks exceedingly expensive. So far, that's not been what we want to see.

Jim Cramer: People ask us why don't we do IPOs, that's not part of the trust mandate. We will do our best to give you more coverage of them as they impact existing companies, such as Salesforce, because so many of these are Cloud based. Amazon ... By the way just so you know, you have to know that the stocks of companies that are profitable that have come public have worked. I mean, that's what's happened, okay? Put it all together, and we have a benign moment for stocks in general, with the fed on hold. Many sectors fed with positive energy. Not a lot of stock for sale. Non-inflationary environment, plentiful jobs. Little competition for stocks, and yes, now takeovers.

Jim Cramer: I think we take out our all-time highs, which we are within a hair of doing. What's not to like? Which, brings me to our theme of the show today. That's how to handle earning season without losing too much money. It's always the toughest time. I dread it. That's right, without losing too much money. You heard me. I say that because in my 40 years of trading stocks I've documented many patterns. One of the most enduring is that there are 12 weeks a year where it doesn't really pay to make big decisions. The three weeks at the beginning of every quarter when companies report.

Jim Cramer: It is treachery personified. While I can't keep you from trading in this period, which, again I know to be far less lucrative than other moments, I can help you with some rules of the road for what started today. Sometimes people criticize me in the club. They say listen, Jim, you're offering people things that are irresponsible. I always say, there are people who are always going to own stocks, we need to help those people. It does not help them to say you must not own stocks. It does not help them to denigrate their thinking. It does not help you for me to tell you that you can't do this. It's wrong, and I'm angry about it. And you know that.

Jim Cramer: The club is about owning index funds, and owning stocks, and showing you how professionals do it. I think that professionals don't want us to do it. It's still rebellious after all these years. Let's begin with a basic that I preach but so few seem to pay attention to it. I need you to listen to the entire conference call before passing judgment on a company. I've got a funny one, this happened just today, I'll go over it in a sec.

Jim Cramer: Why don't we just talk about Kohl's KSS, for example. When the company reported it's fourth quarter earnings last March. Let's just say, it was better than expected with a solid top and bottom line beat, and inline comparable store sales gains. Deservedly so, the initial reaction in print was positive, and the stock showed a solid gain when the market opened, but then, as we have seen happen plenty of times with this stock, the early rally began to show cracks. That's because management guided for first quarter comparable sales to be at the low end of the range, because of a soft February. The stock repealed a lot of its gains. Even as every retailer, and I mean every little retailer, including say Home Depot ...The number up nicely on Home Depot.

Jim Cramer: Everyone had a soft February, because the weather was so atrocious. All over the country, Home Depot told you that, everywhere in the country. When you hear soft in February though, you don't relate it to the other stocks, you don't bother to reason to sell. But, it would have been a huge mistake, because not long after, Michelle Gass, the highly regarded CEO of Kohl's began to talk about their critical relationship with Amazon. Most retailers live in mortal fear of the Deathstar, as we like to call it. Not Gass. No. She has struck an amazing partnership with Amazon to sell Amazon branded products in 200 of its stores. Something I expect to grow to five times that.

Jim Cramer: An incredible partnership where you can bring anything from Amazon back to Kohl's for return. No wrapping. It's blossomed to where I expect it one day to be in the vast majority of their 1,159 stores. When I spoke to Michelle earlier this week at the JPMorgan conference, she blew me a way with how well this deal with Amazon is going. People love the ease of pulling up at a Kohl's. Remember, it's not an enclosed mall, plenty of parking. Walking through the store to the back, dropping their unwrapped wares for return, then yes, going back to the front of the store, buying something along the way. Perhaps with their Kohl's cash. Do you have Kohl's cash? I do.

Jim Cramer: What's incredible here is that we knew that Amazon was important to Kohl's, but we were not sure how well it would play on the call. Especially because Amazon doesn't like to announce how easy it is to return things. Gass gave us everything we need, we wanted and more so. Next thing you know, the stock spikes hard. Wipping out the decline and then soaring past where it had been at the highs. The result, the stock of Kohl's was the best performance in the entire S&P 500 that day. But, you only got it if you didn't trade the headlines, and you listened to the whole call.

Jim Cramer: I would say it was probably three-fifths of the way through before she told us that. For the record, after spending a lot of time with Michelle, you can bet that we don't want to ring the register on this one. We want to get bigger on any weakness. I don't know, maybe we ... Just a sec.

Jim Cramer: Down today right. Down 63 cents. Yield's 3.86%. Look for us to send ... We sold some stock here. I don't know, 64, 65. It's just too cheap to be as small as we are in the position. It's still a two, I think you can buy it on pullback. Check that. Maybe you have to buy it on pullback, that's how good I thought Gass was. I really think that she has it together. They're killing it.

Jim Cramer: Lesson number two from my years of earnings period watching: Don't try to game each and every earnings report. It won't work. By the way, Rev Shark taught me this a long time ago ... I don't know if you subscribe to 'Real Money', but Rev's got it going. It doesn't work. There's this trippy kid at the King's Grocery Store, where I pick up dinner on the way home, if I'm not going to host at Bar San Miguel. Or, pick up my wife who's hosting at the Longshoreman every night. Driving me crazy. She slaves nightly, and you can go meet her at this thing. She's there every darn night.

Jim Cramer: This kid at King's, he's a jack of all trades. He rings up sales, he bags, cleans the aisles. He never misses 'Mad Money'. He asks me what stock he should buy every time I'm there. You know I'm reluctant to give a tip, tips are for waiters. I own two restaurants, I ought to know that. I mean, geez the index fund brain-washers would put me in the portfolio manager jail if they saw me talking to the kid. I like him though. I like him, and I see him all the time. Every time I see him, I say Amazon. I like Amazon for the long term. As soon as I say it though, I regret it. Right now, we're in earnings season. I like Amazon every day other than the two weeks leading up to when it reports.

Jim Cramer: That's because nothing drives the stock more wild than earnings, and reports are usually full of sound and fury, but signifying nothing. This has been one amazing stock over time. That said, I think the earnings season puts too much pressure on people. I hope my buddy at King's doesn't get shook out of it on some sort of errant number and bad press. But, the truth is I wish I could see him two weeks from now, and I don't have to worry about him panicking out of position on a suboptimal number that is probably just a speed bump. Given how well the company's web services business is doing. Highlight by the way of Bezos' letter.

Jim Cramer: If you recall, the big negative last time Amazon reported was they were seeing a slowdown, people said it, I didn't see it. An inevitable slowing on Prime, because it's so big. I don't care, I think that business is sensational. More important though, after I had web services CEO Andy Jassy on recently on 'Mad Money', I realized that his business is the most coveted. A multi-billion dollar business that's growing at 47%, everyone's jealous.

Jim Cramer: All these positives however, get obscured by earnings season itself. With its bang bang nature and cacophony of numbers that almost always forces you to do a poor job. I mean, do you think I'm all set with the bank earnings that came out today? We'll do our best to guide you, but the fact is I spent a tremendous amount of time at my old hedge fund going over all sorts of cycles. One that came true again and again, it's almost impossible to get these quarters right. How about all the people who bought Wells Fargo today, they didn't listen to the call, obviously. Or, at least the whole call. They bought it when the stock was up a buck, and now it's down a buck and a half.

Jim Cramer: The worst question isn't what that boy at King's asked me. It would be would you buy Amazon ahead of the quarter. My response, hey listen, if you were to put a gun to my head about Amazon's earnings, I'm not going to answer you. I'm going to tell you, would you please take that gun away from my head. So, rule number two, don't make any big decisions in and around earnings to try to again what a quarter will be. Instead, if you have to wait, wait. Even if, the stock goes higher without you. Hey, listen, there's another bus. There's another train. It isn't worth the pain and second guessing about how if you had just waited then you would have done so much better. I can't have that. Unless, you got ice in your veins. I used to have that at the hedge fund, I don't anymore. Now I have blood. Unless you have ice, don't do it.

Jim Cramer: Gee, I hope that that kid doesn't buy a share of Amazon. That's all I need after a long day's work. And that's all he needs after the low wages that they pay at that grocery store. Don't you love the war between Walmart and Amazon about how much they pay each other? I don't know, in this world, 15 bucks is still not that much.

Jim Cramer: Rule number three, expectations matter more than sales or profits. Never forget it. About a dozen years ago, I got to take an amazing trip. It was on the USS Harry Truman, an aircraft carrier, as it made its way from Jacksonville to Newport News. It was part of a documentary we were trying to do where we talk to sailors about stocks and financial literacy. It didn't work out, because the Navy PR people wouldn't let us say anything to anyone. But geez, I had a good time on the aircraft carrier. At one point, I got to get on the deck and sit in this little alcove where the pilots communicated with the aircraft carrier as they landed jets. They don't do it every day, by the way, but they do practice.

Jim Cramer: It's a fascinating process, the deck is so darn short. Great piece today in The Wall Street Journal by Laura Hillenbrand, who did 'Unbroken' about the last fellow who just died, 103, from the Doolittle Raid. Where he talks about how short the aircraft carrier deck is. It's incredibly short. It's so short, and the planes are so huge, that it requires the pilot to almost kill the engine to make sure he doesn't overshoot and end in the drink. I was shocked. But, so much of what you said to the pilots was based on gut and judgment. As the planes would approach, the controller would say over and over again, you're coming in hot, you're coming in hot, you're coming in hot, coming in hot. Always trying to get the pilot to slow down.

Jim Cramer: Then, sometimes he would say you're coming in too hot. And that meant the plane would have to abort the landing and start allover again. Ladies and gentlemen, there's nothing worse that a stock that's coming in earning season too hot. And there's no do-over. There's no ext try. Consider the case of Salesforce.com last quarter. Salesforce down today, no, now it's reversed. If you looked at the sales and earnings and the service, they were pretty darn good. In the context ...

Jim Cramer: Does anyone ... I mean, I followed Salesforce longer than anybody ... Mark Benioff started coming on here because his mom said Cramer says you're not doing that well. In the context of where the stock was coming from, like that plane coming from the sky, Salesforce came in too hot. It wouldn't matter, Salesforce stock was definitely way, way too hot, even if they put out the best number, and they did. Before the print, after the bell on March fourth, the stock had spiked $27.50, or 20% year-to-date already. Straight up, seven days, right into the quarter. Seven days.

Jim Cramer: Co-CEOs Mark Benioff and Keith Block told terrific stories. Four year revenue was expected to grow 20%-21%. Did anybody ... This is like a 26 billion dollar company. As a matter of fact, he talked about how they were on target to do 26 billion, 28 billion, in fiscal 23. When Mark came on 'Mad Money', he was even more ebullient than ever ... I used to think it was ebullient, but everyone tells me it has to be ebullient. He talked about business was so string they had to guide up for next year. And how the stock do ... It got slaughtered. It dropped from 164 to 158 in after-hours trading. Ultimately settled at 155 just a few days later.

Jim Cramer: It's still not back up to 164 where it got to when people were so enthused. Now, Salesforce's stock has done nothing this year, or had been down a couple days going into print. I think the action wouldn't have been that violent, the stock would be higher. But, here's what's lost in earnings translation: The fact is that when a stock goes down if a company reports, people presume therefore, the numbers, or some aspect of the numbers aren't very good. That's false. That's like saying the Navy pilots on the USS Harry Truman aren't any good. All that happens is they came in too hot.

Jim Cramer: If you see this kind of move coming in one of your stocks, do not freak out if the stock goes down in what looks to be a perfectly good, if not great quarter. Most important, be prepared to buy, not sell. Because, you're being given a gift to be able to get in. Knowing what the quarter is, and knowing what is a good one ... Speaking of coming in hot, Citi, as I mentioned is now doing well because of JPMorgan. This one could overshoot, and we are very wary. You know what's coming in cold? United Health, down 10. Just a sec.

Jim Cramer: You know how we think. After this quarter, after this conference call we'll go over this. Not a good yield. Down 9% for the year, sells at 15 times earnings, and it's got a five-year net growth of 26 times. Get this, bad chart.

Jim Cramer: Rule number four: If you're going to be involved in owning stocks, you do have to do a monster amount of work going into earnings season, to be sure that a company is doing as well as you thought. If you were in my office during this period, I am frequently screaming give me a breakdown of what's everyone's looking for. Breakdown. Top and bottom line, gross margins. I'm in essence, trying to see if the company lived up to the expectations of sales earnings and how much it makes from each sale. To see if it's expanding, I like gross margin data in particular because I hate competition. It destroys profitability.

Jim Cramer: If you can see how gross margins are going, you can figure out somewhat what the future looks like. For example, last night on 'Mad Money', I talked about how bad Bed Bath & Beyond was. They had crummy, gross margins. That's a real bad sign, because it reveals that competition's only intensifying. By the way, they may be the worst managed retailer other than Sears. They are so arrogant. They're such bragadochers. They pay themselves a fortune, by the way. They're a travesty.

Jim Cramer: What else do I look for? Many times we have companies that supply guides intra-quarter at various analyst meetings. For example, last March, Honeywell CFO Gregory Lewis talked about how well the company was doing two months into the quarter. Giving us a 3%-5% organic growth outlook. When you hear something like that it's a gift. You can be fairly sure there will be no negative surprises when it reports. We also got a negative intra-quarter read from 3M two quarters ago, which gave you a real heads-up of what was to come.

Jim Cramer: Every industry has key metrics. The stock of Delta went up this week, because of its strong revenue per share growth. Bed Bath got clocked because of weak same store sales. Apple got hurt yesterday when an analyst low balled the service revenue stream, which now carries almost as much weight as cellphones do. Hey, by the way, that stock is being hurt today. Just a sec ... Down a buck 29. At one point, I think it was down two bucks. The stock is being hurt today because of an unusual sell call from a very small firm. I think people should focus on the expanding services stream that is always growing, and the piece that Katy Huberty put out over at Morgan Stanley this very morning. She's the ax. She actually said Apple picked up huge share on China, 300 basis points. That's incredible.

Jim Cramer: In March, she said it was good in China. I thought it was going to be all Xiaomi. I thought that they'd be crushed by the Chinese, by their own cellphones. We know that we've got a lot of problems with some of those companies over there. I think, Huawei, which by the way I think is going to pass everybody. I thought Huawei was going to kill Apple this quarter. From Katy's note, that's not going to happen. I know today no one cares. I do think also that it's being hurt by not having a more defined television offering. Versus the very specific plans that Disney offered. Apple's fine. Disney though, the specificity was incredible.

Jim Cramer: Banks are graded by the size of net interest margins, or NIM, as we saw today with JPMorgan reporting a strong NIM. Gave you a really terrific figure. Wells Fargo gave you a weak NIM. You got to understand that and ... Let me see if it's changed. JPMorgan up five now, not bad. Not only do you need sales, earnings, gross margins, you need to figure whatever the key metric is. Finally, you have to have what kind of forecast analysts you're looking for. All those other points matter. What will most likely determine the direction of the stock is if it was a beat and raise, or a meet and cut. And the magnitude of each.

Jim Cramer: I do believe that UNH should have to do beat and raise. We got hurt on CVS for example, because we knew they were going to cut numbers. But, it was the magnitude of the cut that shocked the community, including the bulls who were perceived to be close to the company. They were looking for a seven dollar number. It was low balled. Couldn't deliver. There's no coming back from that too quickly. We'll speak about that in the Q&A.

Jim Cramer: Certainly we were able to sell Nvidia in the high 200s, because we recognized the too many of the inputs were simply soft. Gaming, cryptocurrency, data center. We also extrapolated from a tepid AMD call that Nvidia, which has many comparable businesses, might be seeing some more weaknesses. It wasn't luck, it's almost never luck. It can, however, be homework. Homework-derived luck, and that's the best kind. More on Nvidia in a moment, when I bring in my partner, Jeff Marks.

Jim Cramer: Our final rule for the day: Look for management teams who know how to run a conference call, for heaven's sake. They often know how to run a company. Perhaps the best conference call runner in the world right now is Miles White, the CEO of Abbott, look at that stock. The main reason why we still own Abbott, even up here is because of Miles White. If you listen to one of his calls, you can tell he's the master. Puts on clinic each quarter. First, he briefly goes into typically strong numbers, then he immediately goes into Abbott's corporate strategy to give you the bigger picture. He does tactics first and then strategy.

Jim Cramer: White then gives you the rundown of the four big business units and tells you something that gets you excited about each one of them. Then the CFO, Brian Yoor gives you the deeper dive of every important line item for these analysts who have to have a model made. That's what they do. After that, White takes questions, and this is where you can see his mastery. If you ask him what part of his job ... If you ask me what part of the job I still like the most, it's going through these conference calls when these guy know what the heck they're doing. Listening to Q&A and guessing what the answers will be.

Jim Cramer: In White's case the questions are totally reverential, given that he's the Dean of devices. His answers are always straight forward, never cryptic. Always respectful, often self-critical. I love that, because it shows you exactly how confident he is. Who else delivers that kind of call? Mark Parker from Nike. That last call was fantastic. Maybe the best, and I regret that I haven't been in it, my daughter worked at the place ... All time high today, Estee Lauder. That's Fabrizio Freda, I want you to listen to his call. Fabrizio Freda from Estee Lauder.

Jim Cramer: Parker and Freda are really the only two who are in White's league. In both cases I keep thinking I wish they would come down. Yeah, we should have pulled the trigger on Nike. Looking at that, I said I was going to go all the way back, even if that quarter is ... Estee Lauder, I don't know. Hey listen, you miss some. We know the truth. The good ones don't come in very often.

Jim Cramer: All right, so recap. Five rules we discussed today. First rule: Listen to the entire conference call before passing judgment on a company. Rule number two: Don't try to game each and every earnings report. They're too hard. Rule number three: Expectations matter more than sales or profits. Never forget that. Rule number four: If you're going to be involved in owning stocks, you do have to do a monster amount of work going into earnings season to be sure that a company is doing as well as you thought. Finally, rule five is to look for management teams who know how to run a conference call. They often know how to run a company.

Jim Cramer: This quarterly period is the most rigorous and grueling time of the year, and these are the rules we stick by to help us navigate earnings season. With that, let's bring Jeff Marks in to talk about some of the major changes in the portfolio that we've made before we get to your questions. These are things that have come up since we last spoke with you. Jeff, one of the most difficult things ... Do you remember during the Q&A that we did at one of our teach-ins, where that guy in the back said why did you sell Nvidia, I thought you liked it so much?

Jeff Marks: How could I forget? Of course.

Jim Cramer: You know, he's a good guy. Everybody who comes is a good guy. I don't want to say he badgered me, but he kept pressing me. I said, because they're going to miss the damn quarter for heaven's sake. That's why we sold it.

Jeff Marks: Yeah.

Jim Cramer: It was great, but what the hack are we doing back in it, Jeff?

Jeff Marks: I mean, first off, price. That's obviously going to be a key factor. We sold it around $263, I want to say was our exit price. It was a great gainer for us. That's one factor. Two, the issue that affected the previous quarter, a lot of it had to do with the crypto channel and how their GPUs in the gaming segment ... They were waiting for a flush to come through, because there was all the demand from crypto, and when it went bust, they just misread how much the demand would be.

Jeff Marks: With that being said, when that came through, we knew the April quarter was going to be, when it was going to normalize, so we felt more confident there. Then, two, they announced a huge acquisition.

Jim Cramer: Right.

Jeff Marks: I think it was a complete game changer for the company. Yeah, Mellanox. It was a 6.9 billion dollar deal. Jensen had a great interview on CNBC, I think we've posted it before. When he came on, he explained that the data center is the most important computer in the world. It's changing, and the amount of information that continually being processed, thanks to advancements in artificial intelligence, machine learning, data analytics ... It's really changing the way. The needs and the requirements of the data center.

Jeff Marks: With this Mellanox steel, what they're trying to do is, they're trying to break it down. Instead of just having all these hundreds of thousands of computers, they want to build one network. Mellanox does that, and Jensen sees that the Nvidia platform combined with Mellanox what they can do is create this next gen computer of the future. I think this deal is Jensen Huang seeing the future of the data center. He's going where the puck is going, not where it's been.

Jim Cramer: Would you say that it's a double positive? We know that they're saying that crypto cards are done, there's no more inventory. But, crypto is an episodic business, and this is a secular grower.

Jeff Marks: Yeah, absolutely. It makes the company far less reliant on gaming, which is a huge part of the business. It's a double down on data center, which we know, which we see. All of these IPOs that come to market, Amazon web services, they all need this Cloud computing, and that's where Nvidia is fitting in.

Jim Cramer: Absolutely. By the way, people should know, Zev Fima... Gamer, gamer, right?

Jeff Marks: Absolutely.

Jim Cramer: And this Turing chip is going to be amazing, but they haven't written for it yet. Obviously, Fortnite roiled that market, we were going to buy ... We had Take-Two in the bullpen, it's so hard now with Fortnite. What I would say is that you're going to get a kick to ... because of this new chip, some time in the future. You got Mellanox closing, you got Turing chip. It's got a multi-year path.

Jeff Marks: Exactly. All this did was the gaming, it reset earnings. Now it can re-start growing, because we know e-sports is big again, it's still big. Did you see that Philadelphia's opening a 50 billion dollar e-sports arena in South Philly by the stadiums?

Jim Cramer: How much?

Jeff Marks: Fifty million. Excuse me.

Jim Cramer: In South Philly?

Jeff Marks: South Philly. Down by Xfinity live

Jim Cramer: Tenth and Reed.

Jeff Marks: Yeah. That's just kind of where e-sports is still growing. People are building out these arenas with these high-performance GPUs with the ray tracing ability. When they get written for more games, it's going to spark more demand. Google, they have the Satdia cloud gaming platform going. Nvidia has one of their own. They got the GeForce now. Nvidia thinks that could be a billion gamer opportunity.

Jim Cramer: How about autonomous driving?

Jeff Marks: That's huge.

Jim Cramer: Where are we with autonomous driving?

Jeff Marks: Autonomous driving, it's a smaller part of the business. It's only about five and a half percent of sales. But, we're very positive on that future. Same with management, Nvidia thinks that a 30 billion dollar total adjustable market, or TAM.

Jim Cramer: Right.

Jeff Marks: Right now, they're the ones pushing out the L2 driving system. L5 is the holy grail. They're partners with the biggest names in auto, Toyota, Volkswagen.

Jim Cramer: [inaudible 00:34:25]

Jeff Marks: Exactly, where these pushes are going. They're going to be in the center of it.

Jim Cramer: I had the good fortune to go to Uber Freight. Uber Freightis going to revolutionize everything. A lot of trucks got to one place and they come back empty. They need new drivers. Lo and behold, their self-driving is all based on Nvidia. Who's going to do bigger self-driving that Nvidia? I don't know, maybe Amazon, if they want to do some sort of rate delivery thing. But, I asked them, I said why did you do Nvidia. They said, because Nvidia is the only one that has the technology to make it so that we feel we can trust it.

Jeff Marks: They have the best testing too. One of the Nvidia platforms, you can simulate driving, and that's really been huge for the market. What you need to do is you need all those miles for testing, and Nvidia has that through their program. If you want to know how your car holds up in different scenarios, that's what you need. You need that simulation, because it's still a little bit early to test on all the open roads, but with that you can have that possibility.

Jim Cramer: How about 191? People watching for the first time.

Jeff Marks: Yeah. I think I like it here. I still like it. We got in a little bit before this price, our basis right now is around 169. I would add, with Mellanox too, it's a game changer. The company is moving not just from a pure GPU, semi-conductor supplier, but also software. As we can see with Cisco, which I feel like goes up about a half a percent every day.

Jim Cramer: Well, because this became the largest ... Did you see the announcement yesterday, it became the largest cybersecurity company. I know we own Palo Alto, they can co-exist.

Jeff Marks: Right, but it's a hardware to software switch, that transformation. It keeps that multiple going. Again, you have the normalization of the channel, people's gross margins are expected to expand.

Jim Cramer: They were horrified.

Jeff Marks: It's a really good story to like.

Jim Cramer: They were horrified when they blew it twice. They've been through hell, and come back. I think that it's a great company. Great company. All right, now we're starting to ... We always take too long. Let's get to these questions.

Jim Cramer: We're going to kick them around, okay. All right, Jeff. What do we think of Home Depot ... This is from George M., Home Depot, does it still have room to run? Let me give you a couple of views of mine. It's up another dollar eighty, but it still yields 2.6. We're about to go into Home Depot season, which is, as a gardener, I know it's the outdoors season.

Jeff Marks: Weather's beginning to turn.

Jim Cramer: Yes. We know from JPMoragn that March was a strong month. That helps the consumer. We know from the JPMorgan conference, the earnings quarter for March was good. JPMorgan the conference, I got very, very excited. Craig Menear doing a good job, February was bad. My biggest worry, is that Lowe's is too good. Lowe's has come back, because Marvin Ellison. I don't know whether he is going to be as strong yet. I think closing is good.

Jeff Marks: They're closing some store too, right? Lowe's.

Jim Cramer: Lowe's?

Jeff Marks: Who gets those sales?

Jim Cramer: Marvin Ellison ... I pulled up with Marvin, and Marvin is fantastic. He worked at Home Depot for a long time. Lowe's is going to be back. It will be back. But not now. We bought Home Depot, what 10% ago?

Jeff Marks: I think we stole it. Yeah.

Jim Cramer: Yeah, we did steal it. We kept saying we're going to pull the trigger.

Jeff Marks: I mean, at the time, I think there was such a strong argument ... You can just look at the dividend increase, right?

Jim Cramer: I know.

Jeff Marks: So, for a retailer of that high quality yielding well over three -

Jim Cramer: We increased the buy back. It was Carol Tome, the only CFO I put on air for heaven's sake.

Jeff Marks: That's the next thing I would say. You still have the dividend, which is now back to where it was pre-boost. You still have this huge cashflow, this huge buyback. They're still doing well. This is their time, this is where they kill it. I do think it goes higher.

Jim Cramer: I agree. Okay. Number two is from Patrick B. As of Wednesday Viacom, VIAB, has had a pretty nice ten-day run. Do you think you'd still buy, or would you wait for a pullback?

Jim Cramer: I'll give you mine first. We talked about this, this morning, so it's not like ... I'm not saying it's rehearsed, but I did. I say we got to buy.

Jeff Marks: This has been a story for every of the last ten days.

Jim Cramer: Right.

Jeff Marks: Of course, we're talking about it. We talk about the whole portfolio.

Jim Cramer: Right, so I posited that Viacom and CBS should be bundled together for 40 billion. Bought by Disney. If, Disney wants to reverse the course of people thinking they don't have a good TV channel. I don't think they're going to do that, but Viacom at 30 bucks, after what I heard today and last night from Disney, is ridiculous. I've been pressing Jeff and Zev that we should buy some right now after the call. It's, kind of, at our basis.

Jeff Marks: Right, it's at basis. But I think it's still completely undervalued. Mean, first off, they've completely moved past this AT&T overhang, yet the stock still hasn't really recovered its levels, say from last September. That overhang is completely in the past. They've reiterated guidance, so they didn't get hurt. Just their content itself, if you look at what Disney plus is doing, when they tallied all these different Fox studios that they bought, it's inspiring. What Viacom has is Paramount, which is in a multi-quarter turnaround right now.

Jim Cramer: Paramount, by the way -

Jeff Marks: Someone's going to want that business.

Jim Cramer: When I lived in L.A., Paramount was number one. It was always the best, everyone knew that Paramount was better. Everyone wanted to work at Paramount. I think that people chronically underrate Bob Bakish they've done so many good things. I think that the convoluted Shari Redstone things hurt it. I'm going to press that we buy it.

Jeff Marks: Yeah.

Jim Cramer: After the call.

Jeff Marks: Yeah, and I would add too, when you look at the Disney Plus, and how it appeals to that younger audience, I don't know, probably the next best thing is Nickelodeon. If you're a content provider, say you're Netflix, and you want to compete with Disney from a younger kids side, you want that Nickelodeon.

Jim Cramer: Yes.

Jeff Marks: Also, I look at the ESPN plus strategy that Disney has. When they snatched up these UFC rights, they're looking for a more segmented market. That was a very quick way for them to add subscribers. You can do the same thing with buying Viacom, with their MTV, with their Comedey Central. These channels clearly have appeal. AT&T got so much blow back when they almost kicked them off. People want the content.

Jim Cramer: Exactly. That was pretty epic. The testament, the stock's been climbing ever since. I know that neither Alphabet nor Apple like to do big acquisitions, they should. This one would be good. I urged Tim Cook to by Netflix, less than 25 mill. But hey, so did everybody else, I'm not special. Verizon, I don't know.

Jeff Marks: But Disney's event last night was a game changer. I think it's a wake-up call for the rest of the industry, hey what are we doing on our content side.

Jim Cramer: Right. That's why I think that the stock today, up a percent is not enough. We're going to buy some.

Jim Cramer: Okay, that's the good, let's get some bad. Scott, I own CVS Health, CVS, but I think I might be better off selling and using that money to buy Cisco systems. What do you think of that strategy?

Jeff Marks: Good question.

Jim Cramer: Yeah, I know. When I read it, I said we got to take this one -

Jeff Marks: We love Cisco.

Jim Cramer: Cisco ... I spent a lot of time, I spent a huge amount of time with Chuck Robins. I was actually out with a woman named Amy Chang, who her company. She was on the board of Cisco and we were both talking about how unbelievably great Chuck is. I mean, really great. I have to tell you, he came to the Eagles game when we played the Falcons. Of course, he had a miserable time. He also had a miserable time when UNC lost.

Jim Cramer: What I see was I would rather ... I'm going to be honest here, well I'm not dishonest, for heaven's sake that's stupid. I would buy Cisco right here over CVS.

Jeff Marks: Yeah.

Jim Cramer: Even though, it's at an all-time high.

Jeff Marks: CVS is ... This is an investment year. Not an investment year like Disney, because Disney really gave you that tangible opportunity for growth. CVS just hasn't done it yet. I'm hoping that comes later this summer when they have their investor day. Maybe they shine the Aetna deal. It's just not there yet, and there's a lot of headline risk. The story isn't clean, we know that.

Jim Cramer: We're not traders though, we're not going to do that trade that that Scott is talking about. But, I'm not going to disagree with it.

Jeff Marks: Right. You want to buy what's working. You want to buy low, but you also need what works as well, and Cisco works.

Jim Cramer: Right, and it has to be lower for us, because we like to buy our next buy below where our last one is. It's actually saved us money to do that.

Jeff Marks: Yeah, but at the same time, we're not going to give up on value either with CVS, because if you look at ... they're not going to get taken out like Anadarko was, but if we gave up on Anadarko, we'd be kicking ourselves this morning. You can't give up on value.

Jim Cramer: Six times earnings ... CVS, you go to the store, people just think that no one buys anything at the store anymore. That's not true. All right, let's get to the next one. Enough on CVS, just makes me a little sick, you know.

Jim Cramer: Scott W. asks: If Goldman Sachs pops when they report next Monday, would you recommend booking some losses and buying shares in big tech names like Amazon and Apple? My first reaction to that is that's a false dichotomy. The idea that you should do this or that on this is not right. The difference between Goldman and CVS is that Goldman is doing very well under Solomon. This is my old firm, I spent a lot of time working on Goldman ahead of this quarter.

Jim Cramer: Here's what I'll tell you about Goldman. There's two Goldmans. There's this Malaysian thing, I think when I looked at that JPMoragn March, I think Goldman's getting quite the March. It is up four. I expected it to be up eight to ten. That's probably not up eight to ten because of Malaysia. But I would not sell that stock. I would not sell it.

Jeff Marks: JPMorgan talked about how hot all these IPOs are doing for their business.

Jim Cramer: Yeah, capital markets.

Jeff Marks: Yeah. Trading came in. I mean, it was down, but it was better than expected. That's key. I mean, JPMorgan, their profits were incredible this quarter. And, Goldman's been doing well, they've just been held back from this 1MDB. We're not hearing those headlines anymore, because Solomon did such a great job last quarter.

Jim Cramer: He did so good. He apologized.

Jeff Marks: He was very apologetic. He really, really switched the narrative on the stock. That's why it's been able to rally. Since the quarter it hasn't, but at least it's back above 200s.

Jim Cramer: Right, and I think that we're trying to buy somewhere tangible book, like what 190?

Jeff Marks: Yeah, around that, 193 I want to say.

Jim Cramer: Yeah.

Jeff Marks: It was around that price.

Jim Cramer: I was with a guy who was a huge shareholder recently, and he was saying to me, look we put through compliance systems ... This is really the issue, by the way ... That are the hardest, most strenuous that there is. Any regulator who looks at Goldman's compliance system versus any others would say Goldman is the pristine, number one marquee. This man has hired thousands of people in his time with Goldman. What he said was, when you're a real crook, it's really hard. A guy who is really a crook can get around compliance, and that's what happened at Goldman. If it was something where Goldman was negligent because they didn't have good compliance, then you really need to be worried. But, they weren't the compliance was good.

Jim Cramer: They have a piece of paper from the head of Malaysia saying this is our deal, we're going to do with the money. So, what do you do? The president, the guy that runs the Malaysian government gave them a letter that said that this deal was good. That's very tough when everyone's a crook. People can say well wait a second Jim, they had such a big percentage that they made on this, it should have been a red flag. That's the one part that I haven't been able to get my arms around. That's why they're going to lose some money. But, they're not going to owe the big money that people think.

Jim Cramer: All right. This is from Kristy in Austin, Texas. Does Brexit and other economic weakness in Europe suggest that financial is a bad and risky sector in which to be invested now. Kristy, I'll tell you, JPMorgan addressed that directly. Think about this, JPMorgan, big international company put out better numbers than Wells Fargo domestic numbers, domestic company. My sister-in-law works in comms, comms in Europe for JPMoragn. They're trying to figure out where to go, what's going to happen for Brexit. People talking Frankfurt, people talking Paris. But, the one thing is certain -

Jeff Marks: The city could run out of food in four days.

Jim Cramer: One thing is certain, Brexit's going to be very disruptive for European companies. I actually believe that. It's not going to be disruptive for our companies, and it's going to keep Jay Powell on hold. It's one of the things that keeps Jay Powell on hold. No inflation and Brexit. He's got to be worried. It's going to be a dip.

Jeff Marks: Yeah, and if you look at what's going on with Deutsche Bank as well, at least there's been some merger talk. That would do well for them, for the whole sector to kind of alleviate fears.

Jim Cramer: Yeah, and remember, there's so much money. There's 770 million people on the continent. It's not like Europe has no money. The money comes here. You're not really a fiduciary if you're buying bonds for 0.2, 0.3 percent.

Jeff Marks: You know, it's just like a cleaner area there, the fintechs, and I know we're itching to get back into one.

Jim Cramer: MasterCard and Visa, PayPal.

Jeff Marks: PayPal. There'll be a time. It's earnings season that's what creates opportunity.

Jim Cramer: You know what Dan asked me, he said did you sell it. I said we got almost a triple, Dan. He said, you let me down.

Jeff Marks: We have big gains. It was his -

Jim Cramer: I said bulls make money, bears make money, pigs get slaughtered.

Jeff Marks: It was his conference that marked the bottom of the stock.

Jim Cramer: That's why you got to stay close to the teach-ins. All right, Greg in Los Angeles says: Now that we are roughly back to even on BP, is it time to sell and not lose money, or do you still see upside? I think that the game changer Anadarko makes me feel like you don't want to sell this thing at 5.4%. This thing is people realizing that cash flow is real. I think it's going to go to 47, take out its high from a year ago. I would not sell the stock.

Jeff Marks: Break-even costs are coming down. The dividend is huge, there's still plenty of room for that to grow. Once they integrate those BHP assets that they bought, I think they'll be a better operator there. They have a very good refining business too, so a lot to like.

Jim Cramer: Yes, we both like it. Okay, number seven is from Paul D. I've been buying Alphabet/Google for years and have approximately 100% gain on a few hundred shares. The size of the position does not overwhelm my portfolio. Other than protected gains, why should I sell my shares to buy something I am less enthusiastic about?

Jim Cramer: Okay, this is really important. You're playing, basically with the house's money if you sell, say 50 shares. I like playing with the house's money.

Jeff Marks: Sure.

Jim Cramer: Because, then I never sell. I don't have to sell, it's already basically, going to just pay off. I don't like again, this false dichotomy. I want to sell that, maybe buy something that you think is inferior or superior. If you're short of cash and you want to buy another stock, you can feel free to sell any stock. Google we love, I think they can do a lot. Ruth Porat is my friend, she's the CFO. I keep thinking that they'll not be caught up one day into this weeds of tack, maybe it'll be YouTube. But, what I would say is bulls make money, bears make money ... What I said to Dan Schulman from PayPal, sell a little. Book some.

Jeff Marks: Yeah, you could sell a little, but still hold on, because they also have good Cloud opportunity too. The poached the LeBron James of Cloud.

Jim Cramer: Yeah.

Jeff Marks: There was a nice Wall Street Journal article write up on that. I mean, there's a lot of different businesses that they like ... Excuse me, the other bets too. Such as Waymo, Verily, sometimes I feel they're not even in the valuation.

Jim Cramer: I know.

Jeff Marks: Because, of how these long-term drivers into -

Jim Cramer: My wife's friends, there's a guy who's in charge of their health, but not the verily. He's a genius, he ran this thing called Geisinger, it's a healthcare system. You never seen him, but I'm told he's going to have something big in healthcare. This is still early in the process.

Jim Cramer: Ravi C. In Iowa writes: With the earnings coming out next Tuesday for United Health, is now a good time to buy more UNH? I think we kind of said this, we're wait and see. Down ten.

Jeff Marks: This selling feels very indiscriminate.

Jim Cramer: Just give up.

Jeff Marks: Yeah, people are saying I don't care about price, I want out, I don't want to see the quarter. Even though UNH isn't tangled into a lot of these messes I've seen as some of the others are.

Jim Cramer: No, 15 times earnings.

Jeff Marks: Right, they're going to give you double-digit earning growth. Last June, they announced a buy back to re-acquire 10% of the company. Terrific cash flow. As they said on, I believe it was their last conference call, regulations they've come and go. Different administrations have come and go, they've gone through economic recessions and expansions. But the one thing that still stays the same is UNH as a long-term growth company.

Jim Cramer: Yes. I would point out that when a stock's down 10, it's usually not done midday. What happens is ... Just so you understand the way it works. I'm on the trading desk, and I have a million shares to go. I've just been given the order from the portfolio manager. I'm selling, and selling, and selling. At the end of the day, I know that I'm going to be graded by the average price that I got. So, at the end of the day, it pays for me to hammer the bits at 3:50, 3:55, so I can say I got the stocks at 221, I got you a 224 average. I did better. That's why stocks go down in the last few minutes.

Jim Cramer: Remember, they're about to report, so they're not there buying back. This is a treacherous situation that I think will actually work out to our benefit. We'll look at it.

Jeff Marks: I would add too, there's been a couple ... A price target cut yesterday. It had nothing to do with their earnings expectation, it was all on the multiple. Sentiment drives evaluation. I would look at the banks today, look at JPMoragn. When they reported and people saw that they could still have really strong net interest income in this type of environment ... What happens when UNH proves that their earnings are fine? The medical costs are fine in this type of environment. It's the same thing.

Jim Cramer: Yeah, it is. It is.

Jeff Marks: They have a good setup into the parameters.

Jim Cramer: Look, we're going to be all over. Let's do that, okay. Mary writes: Can you please discuss the pros and cons of each DowDuPont DWDP entity? We've got Dow, which we know is already doing well because of the dividend. It's not at $2.77, that's my estimate.

Jeff Marks: Probably the biggest pro, income. The dividend yield.

Jim Cramer: Right, the biggest, yield is 4.8, still. People will continue to buy it. Crop protection hurt by flood. Expectation's really low. The crop protection of the other company, Monsanto, which is owned by Bayer. If people want farm, ag, there's only a couple companies like that. There's Deere, and there's going to be that. People like the feed the Earth thesis. The last one is very difficult, especially ... It's kind of a hodge-podge.

Jeff Marks: Yeah, it's new DuPont. You know, if you actually look at their 2018 numbers, if you just serperate from new DuPont, they actually had some of the best organic growth and EBITA margin in its class. Very good. Very good there. They're in some really strong markets. Some of the cons that I'm a little more worried about would be auto, and housing.

Jim Cramer: It's funny, 'cause-

Jeff Marks: Auto's about 15% of the company. That's tough.

Jim Cramer: We got a hook in, it's like Illinois Tool Works and 3M in the sense that everyone knew auto was weak and they still went higher.

Jeff Marks: They sell into better markets than ITW. That's what we saw the previous earning season where ITW completely collapsed DowDuPont did better, save for last quarter, which was just a difficult environment everywhere. Because of the interest rate scares. It will be one of the better industrials out there.

Jim Cramer: I think so too.

Jeff Marks: And, they plan I divesting another 10% of the portfolio.

Jim Cramer: Splitting again, splitting again, splitting again.

Jeff Marks: Exactly. That's what 3M needs to do. It's just another avenue for value creation.

Jim Cramer: Yeah, I keep thinking there will come a day when portfolio managers will not want to own Dow because of plastic. You see the paper to plastic, single used plastic being banned today by our mayor here. I know that when I had Jim Fitterling on, the CEO, I asked him ... My daughter's very angry at me. She's sweet as can be, but she does say, Dad you do nothing to help the environment. I watch your show, you don't talk about it. You don't criticize these people. I said, look these guys are trying hard. Jim Fitterling, he doesn't want pollution.

Jim Cramer: She goes, yeah, but the island in the Pacific. I said, it does what [inaudible 00:55:23]. She goes, yeah, but they don't recycle it. Finally, I just said what do want me to ask him. She goes, why don't you ask him how he can live with himself. I did it, and a lot of younger people told me it was good. Older people told me it was disrespectful. I had said a lot of good things about him. Let's get away from the personal.

Jim Cramer: There will come a time when people will say, this is coal, this is tobacco. Not yet. But, you know that we're looking to get out at a certain price.

Jeff Marks: Yeah, I think so. We've been in it, DowDuPont for this entire time for the value creation from the breakup. We saw that, right? We saw DowDuPont do well post-spin, we've seen Dow do well post-spin. We're getting that now. We're going to see it agan when DowDuPont spins off again. But, when that dividend yield isn't as big relative to the rest of the Dow, that will be the point where it's time to go. We have a $62 price target, what's it trading now, 57 and change? If we see it inch closer, it's time to go.

Jim Cramer: Perfect.

Jeff Marks: Take the profits.

Jim Cramer: Perfect. Okay, here's from Joe B. In West Lake Village. he writes, do you have any update on the potential for coming IPOs to affect the market due to the need for fund managers to raise cash? We've worked on Pinterest this morning. I think that what we can say is, look, this is basically good news, as I said in the call, which is that there's not enough good deals that's going to siphon off money because Lyft was a deal that I thought could be good. It was placed in badly. I didn't think it would be placed badly. It was the first one that was completely shocking. Did go back to 74 and then down, but the fear that I had that there would be siphoned off. Well, now these guys are, these managers were all scared because they realize that some of these deals, some of these companies been around for 10 years. The last shareholder rounds or hedge funds, they seem to have figured out a way to get out of the stocks so there won't be as much buying of these, as you would think. Public buy, yes. Public will buy Uber

Jeff Marks: And it was interesting because if you look at kind of when Lyft started to track lower, you saw the software stocks, which everyone was selling to make room for the Lyft do well again.

Jim Cramer: Right? You like they want that gut and that's important. Okay. Now Richard C. writes, would you recommend buying cannabis ETF instead of attempting to pick an individual stock? No, but I have to tell you we did a lot of work in preparation for this Canopy Growth is the best. Why? Because it has 4 billion in American and 5 billion Canadian that was given by the people at Constellation, I'm close to Constellation because a bar San Miguel but also because of the stock and they have been anointed by Constellation and the only other one that has a lot of money, is Cronos. I really don't like Tilray. What I'm afraid of is, is that if you get an ETF you can have a lot of bad ones because this is only going to be a couple of winners in this thing cause it's not as great as people think.

Jeff Marks: You've got to know what your own.

Jim Cramer: Yes. And for Canopy, just so you know, the, the liquid is going to be owned by Constellation, which has Modelo and Corona and Victoria and Pacifico and also High West and Casa Noble. Good high end brands. The medical is going to be run by Bruce Linton and I know he's not a medical guy and that does - kind of could use that, but the, the beverage guys are the best and the medical guys are doing a lot of studies here. So that's the one, if you believe in - would I buy this?

Jim Cramer: Yeah, I guess I would, but I want, I got to tell you I wouldn't buy it for the next quarter because it may not be any good. They're talking about the run rate a year from now being maybe a bill. The numbers were cut today by Piper. I know that there's the worst kind of money in that one. Bad investors. Okay. Yeah. Too Hot. All right. What this is from Loy, Loy M, what are your current thoughts on buying gold? I always think that it's pretty simple for me. Nothing bad ever happens from gold. I have gold, you know, and I only can own mutual funds but I have a gold mutual fund. Okay. Richard, in Columbus, Ohio, does short interest ever affect your decision holding a stock? You don't, if we were more trading oriented it would, I think that we look at it to see whether people are betting against us. So Five Below, which obviously has a lot of shorts seems to really go crazy. That's when I look at, and then the one that is most problematic, I got to tell you, the shorts are just in this Amgen, they kill it. So I look, I look, it's part of the panoply

Jeff Marks: Well remember that one quarter, two quarters ago from Palo Alto networks. It was a good result and this is before it really got its footing. But the shorts just completely took control of that quarter off a really good result. We saw it rally and then I think it ended flat. This is probably back in, you know, 60 points ago, 70 points ago. In the 170's, back last November.

Jim Cramer: So we have conviction or else we wouldn't own these stocks.

Jeff Marks: You also get the opportunity for a short squeeze, which is always a, you know, so if you're very positive on the fundamentals and it hits, you're going to get that benefit.

Jim Cramer: Exactly right. It can be wind at your back. All right. Oh, we're just at the hour mark. We have to wrap these up here. George L, which of your books do you recommend for grandchildren out of college on their first job? This is hard because a college, they can do some very aggressive things, which would be Real Money, which is the handbook from my old hedge fund or they can go to, I would say, Stay Mad for Life because it tells them how to buy stocks.

Jeff Marks: That's the one I was going through recently, Stay Mad for Life. I think a lot of it holds.

Jim Cramer: Stay Mad for Life. That one works. All right, and then finally Bill G., my son recently got out of the army and wants to start investing with $10,000 how should a young investors start with that amount at this time? Bill G first, thank you for your son serving. I'm sorry I got a fall back first $10,000 has to be index fund. I know that that's not why you're in the club. I know that it's boring, but that's been my rule. It's been my rule forever. I can't change it now even though we run a charitable trust that's about stock picking. So anyway, Jeff, thank you.

Jim Cramer: I will say this. This is a great day. Anadarko, JP Morgan and Disney, and we always are going to have lumps. You always, there's things you're going to get wrong. And then periodically you have a day like today. Congratulations.

Jeff Marks: You as well.

Jim Cramer: Yes. Thank you so much for being club numbers.