tv Mad Money CNBC December 18, 2012 6:00pm-7:00pm EST
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>> gangnam girl. >> next week, you will be able to sell pulte homes. >> and arco. >> broker. >> karen. gm. >> short energy on today's spike. >> we will be back here again for more on "fast money." "mad money" with jim cramer starts now. ♪ ♪ i'm jim cramer and welcome to my world. they know nothing. i always like took say, in is a bull market somewhere.
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my job is to entertain and educate and teach. call me. we hear these ironic stories about stocks on the move. and we call them what the hecks. we do these stories when people are baffled when stocks could be up so much. given the serious concerns that a company seems to be facing. as to what the heck could a company be facing. we ask, what the heck is going on with these darn averages? >> given that we could be falling off the fiscal cliff in less than two weeks time? >> first, i think there has been
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a change of heart in washington. the core seems to have cooled. perhaps as the north times seems to have cooleded today. as the tragedy in connecticut has sofened the times. maybe it takes something like this to get the congress and the president to work on things. there does seem to be a spirit of compromise now. i'm not just talking about the end of the year, perhaps holding off raising taxes for those who make $200,000. especially when coupled about this room orred embrace about spending cuts. that could turn the fiscal cliff into a hop, skip and a jump.
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it ends up into an exciting place. there are other forces at work today. that show you the magnitude of what a deal could mean for our great country. the other forces? gold. fift first, you know i like to watch the transports as a legitimate act. you know it has to be shipped somewhere to be sold. that is why i follow the transports so closely. when they are going up. there is more commerce happening than thought. that above all, is a terrific predictor of growth. today the transport showed signs of growth. i got more negative.
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a real braeak out. that would be a singlegin wine expansion on the rise. the action signaling back could. second, the banks are now breaking out of arrangements and the transports. look at the xlf. that is a exchange trade fund. this group is moving to the upside. one that is necessary if we are going to see a legitimate and lasting recovery. it looks like it has had a big run. it is still less than half of where it was less than a few years ago. we will look at the trading in goldman sacks. it has been lured back to life. that is the case with bank of america. just to get caught up with the rest of the market.
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a catch up trade. third, they are the biggest surprise. i know i dasle people. i think interest rates are going to go up. maybe big. you better lock in a mortgage right now if you can. i know it is counter intuitive but i'm thinking that the fed chief may not be able to stop this. it won't please anyone, particularly the ratings agencies, but we hae have lear from europe and the debt debacle from last year that let's just say, they aren't that worrisome, now you don't want to be borerying trillions of dollars, but remember, it will be good
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for the economy. that means rates can go higher and when you combine that with the billions that we spent after hurricane sandy. you can see why rates are going down. it will produce a ton of jobs as spending has been held back. certainty beckons and you want to be involved in the markets ahead of the certainty. that is why this is a rally in, anticipation. hence why the banks are going higher. and they can lower that with your money what you were getting on your cd's and your savings account. which bringing me the gold. lots of people think when you buy gold, you do it because inflation is about that. i think the resent move down in
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gold confirms that interest rates are going higher. gold may have further to fall. so to sum it up, you are asking what the heck is this market doing running up ahead of a new deal term? the markets are telling us we will only get coulsome agreemen the budget. sure, our debt will get down graded like it did last year, but maybe that is the price that our government is willing to pay. here is the bottom line, it looks like they are rising above politics and it looks like they are going to give us a package that is good in the future. that is surprising. we thought that was unlikely. i mean this thing is fluid.
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if we bridge the fiscal cliff, without too many spending cuts and tax increases. we could have a good 2013. that is why the markets rally. let's go to mark. >> hey, jim, thank you for having me on your show. i'm a long-term investor with the short-term trading around the core position. um, you know, the stock only a half percent up today down close to a full percent. the board approvie ining coca c enterprises, and you know, we saw that go up 4.5%. my question to you, do you have any relationship between coca cola enterprises and european market? >> not that much.
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they have prispecific things th are positive. my charible trust owns it. it is why we play mi diversified. it can not rally in an environment where people think the economy is going to pick up big. let's go to mike. >> big booyah from shippensburg university. >> what is going on? >> peabody energy. in 2011 australian mining operations contributed to its growth. recently extreme policies undermined their mines. -- and had the highest growth
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rate in 2001. >> remember, in the end it is still coal. and it is on the decline. and i do believe the stock could be troughing, but if that is the case, why not buy joy global. it is a truly international company, and it is more likely to be acquired if it stays down here forever. they have a terrific book of maintenance that people don't talk about. i regard it as much cheaper than btu. >> booyah welcome to my world. i have glaxo what do you think about it? i think they came out with a new flu vaxine. >> we talked about these companies that aren't going to take off in an environment where
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people are getting bull issue in 2013. what the heck is going on with this market? if we bridge the cliff without too many spending cuts and too higher taxes, i have to tell you that may be nirvana for 2013. "mad money" will be right back >> coming up, unlocking the vault. tonight cramer is unlocking the doors of goldman sachs is there growth ahead or is it time to catch out all together? cramer is pinning the technicals on a new edition of cough toff charts. and later, digital doctors? as medical records move towards the 21st century. how do you play the intersection of data and doctors. just ahead. >> plus, goal mine?
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populations rising, energy demand increasing. the world is demanding more resources than ever. pushing development to the earth's extremes. cramer is revealing the company with the solution that could be a takeover candidate. all coming up on m"mad money." >> don't miss a second of "mad money." follow on twitter. tweet cramer and send jim and e-mail. or give us a call. at 1-800-743-cnbc. miss something? hes to madman.cnbc.com.
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are we looking to start a major start off or is this a balance that will last for a couple more months? tonight we are trying to answer that question. i'm not a chartest. i pick stocks on the underlying company. what does bob language have to say about it? he thinks it is down right beautiful. he thinks it is like the museum of art.
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technicians use it to detect shifts ahead of the actual stock. it is tells goldman that he has a lot more room to run. the black line goes above the red line. we have one of these right at the beginning of september. and that is when goldman rallies over the next two weeks. this is why you can see it is encouraging that we got another cross over. i'm liable to start a fire.
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using their bargaining powers they save been on prescription drugs. one of the reasons i got behind sxc was it would grow the business and give it more scale. the company had a health care technology business. selling it to other pbms and acquiring the ones that seem to be doing the best. the company no longer existed.
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analysts here. the cigna thing could be used to downgrade catamaran and that could cause it to get hit. you should never let a gain be turned into a loss. we nailed a gain here and i don't want to give up that if they lose a large client and some analyst desized that the stock is time for it to go. bulls make money, bears make money, but pigs they get slaughtered. i say bring home the bacon rather than become the bacon. one is better than the other.
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>> i think this is a fantastic stock what do you think? i haven't looked at the stock in many years, better for me to tell you i don't know the stock. >> high, jim, how about a new york jets booyah. >> wow, you have to be the only one other than seth ryan. but go ahead. what's up? my question is about workday. i bought it on the way up.
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and how good of a company do you think it is? i think it is good. i have to tell you, in the darkest moments people abandon this. i think that is a better situation but i like the workday business. let's go to make in massachusetts. >> i guess you are a jet fan not a patriot fan, right? >> the stock has gone done a bit but i haven't heard anyone mention a company. i think it has had a good move.
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we have a couple of good days happening here. you take a stock like skyward solutions that is a cheaper stock. i'm going to say let that one come in. no need to chase that one. when the facts change you need to revisit them. and i am worried that the profit taker is going to come in. why don't you get ahead and take something off the table right now. don't move, the lightening round is coming up next. >> tomorrow what your favorite stores are doing right now. continuing tomorrow on cnbc. p i always wait until the last minute.
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let's go to mike. >> man, it is great. >> i'm a first time caller thank you for makeing it about the market. i bought hda. >> i think the situation is getting better. i would prefer to be in bristol myers. i like to sleep at night. i understand why people are coming back because of health care. thank you for taking my call. >> i was wondering about
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and that is the conclusion of the lightening round. >> coming up gold mind? the world is demanding more resources than ever. the need to keep these coworker safe is paramount. just ahead. they don't know it yet, but they're gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other,
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let's focus on a company that may get cheaper. there are two ways to value every company. that represents what traders are willing to pay for a piece of the company. that in mind i want to tell you a tale about a company that could be in the cross hairs of it and the company i'm talking about is mindsafety.
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prote protection devices. that is a lot of stuff that you need to do in the oil and gas industry. oil and gas companies, as well as law enforcement agencies and the military. why do i think that my safety is to be required? take vng come on, safety never takes a vacation and no one ever skimps on it.
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they invented kevlar. in 2008 they bought industrial apparel. it is one of the tenants and both of these companies are clearly open to doing more deals in the safety space. company reported as the end of october more that day. the company is stronger than the headlines would lead you to believe. the overall gross mar kgin increased. you can't cut back on fire and
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safety. plus mine safety has been moving away on defense spending. something that is not happening a moment too soon. the mon military business made up 64% of the company's latest quarter. they are moving in the right direction. remember, we never recommend stocks unless the fundamentals are improving. i think mine safety is getting to a better position. here is the bottom line. there is always money to be made speculating on takeovers if you do it wisely. when i play matchmaker i look for an industry that is consolidated. mine safety appliances gives you all of that.
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analyst's committee comments th just human. now the stock that you are recommending that is in free fall before your very eyes and how you can't take it anymore. it is up 22 points low where the stock went out today. on november 25th, $571 the stock will give you a 20% return that is what they said. apple had a 28% correction, come all the way down from down
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downgraded which caused the stock to trade more thank $500 before it opened. as articulated in our recent initiation, it was trading oriented. reflecting the near term rally. however, near term supply chain bring into question the strength of the iphone 5. as such, we see the likelihood of the near term rally as diminished and downgrade the shares to neutral. they don't like it december 16th
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at 5:09 the reason? too many iphones. hard to make this stuff up. the stock closed at $535. what really happened here? i think the team chose to be traders not analysts. that didn't happen here. the evidence that the i5 was selling well. this is very sobering people. as the stock ran from $525 to $571 and created a short-term buy right here. i think these pieces, i think they should be wake-up calls to you. about how to use wall street research.
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when do you do your own work? i like to buy low and sell high. in the end, that makes more sense than this research and frankly, that is all there is to be said about these two lamentable calls. stay with cramer. i always wait until the last minute. can i still ship a gift in time for christmas? yeah, sure you can. great. where's your gift? uh... whew. [ male announcer ] break from the holiday stress. ship fedex express ber 22nd for christmas delivery.
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