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tv   Mad Money  CNBC  July 25, 2013 6:00pm-7:01pm EDT

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go down to mexico. buy it. >> steven. >> google on weakness, but $75. >> guy. >> bx black stone. >> thanks so much for watching. see you tomorrow at 5:00. don't go anywhere. "mad money" with jim cramer starts right now.. >> my mission is simple, to make you money. i'm here to level the playing field for all investors. there's also a bull market somewhere and i promise to help you find it. "mad money" starts now. hey, i'm cramer. trying make a little money, my job is to not to just entertain you but to make you money. call me. this market loves to change its stripes the way we might change the channel on tv.
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it's even whimsical and it makes you want to grab and remote and dial around and then throw money at it. of course, it makes you want to avoid old programming and reruns. that is the correct analogy, you could never tell what was going on, dow rising 13 points and nasdaq gaining, i think nothing happened today? ha hardly. exhibit facebook. one of the most amagz quarters that i seen in my years in the business. people have been betting against it for a year, but facebook is the new king of the cloud. after today you have to watch it. you have to watch facebook. no, no, you have to hold it.
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it succeeded by offering customers more than 2 billion on the go eyeballs. that is over a billion people, and the customers are lapping it up. given that facebook does not have to pay for content, you are seeing local businesses and others throwing money at facebook. like the people that bought the stock today. what a turnabout from last year this time. give me the clicker i want to like facebook. they are smart business people that that is a product that is loved by all. facebook's quarter, and a trip adviser, by the way they have been shorted by people that thought facebook would blow it, right it you spill over to other internet companies. i should have known this tripadviser, darn it. i knew it from the stock i co-owns. you are out there serving eggs
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and washing the dishes. that is part of the tv dial that was red hot. z zillow and price line, the pin action, led to a nice recovery move in netflix too. as people are going netflix is a cloud, and mobile tablet play, we have to hear from amazon, we have to get the statistics out and read it and get to know it again. let's not forget the fastest growing cloud play of all, medidata, closed at $90.14. i thought it got taken over. i'm thrilled about that one. and we have the ceo of software provider to the medical industry on later on. and groupon, got in the act. the pendulum swung and the
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social universe came back in favor. take advantage of the weakness in google, and buy some of tech titan, i still like facebook, which is yes, my biggest position in trust and boy, did i feel relief. you can follow along where we have been saying that this is the real deal and suddenly, we are not alone. oh, and why not circle back to the company that created the holy trinitiy, salesforce.com. they have terrific long-term theme and they have spent enough time in the wilderness. how about the bio teches. they have been resting of late. they have been snoozing, catching zs. and you know it's my me most beloved of groups on 2013. just recorded great numbers, and the group explodes higher with
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new money. i say -- you have to remember, there's a ton of drugs in the pipeline that are going to be approved first. gilliad, that stock, after the bell, it has the best product line of all. it's probably up about, let's say, $14 in a couple weeks. that is astonishing. 92 billion market cap and do not count out regeneron, we have pin action in this stock. and it's important to point out that it's a zero sum gain going on underneath the averages. the money is flowing to the new sectors, it has to come from some when and i think it's coming from another red hot group from earlier in the year housing. we saw disappointing numbers.
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from go home builders, it created a bunch on of selling. in all things housing and housing related, the selling made sense because the numbers were disappointing. now, i remain a long-term bull on housing, but we are not building enough homes for demand, but we know the huge increase of mortgage rates has crimped the demand, it should not have been a rude awakening, i do not want to mess with the market once it changes the channel. it's hard to get it back to the channel. let's go back to the tv station for a second. these stocks, they've been cancelled or put on hiatu iss. i understand that. i have not cared for the group of late. i'm not sure all the housing related retailers like home depot and lowe's deserve to be in the same dust bin.
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and yes, i would actually scoop up restoration hardware. some stocks are just rest are. they are doing napping. which i do, like between 12:00 and 2:00, i will nap. after the groups are pulling back, there's a next sector to roll over. do you mind if i tell you that it's nonsense. boeing united would be -- if they pulled back. basically, i can't believe we are making money, i can't believe we are making money. you know what else i would not wait. i would buy them now if the market were open. the banks pulled back because they too had a big run. people are thinking that higher rates are pelling the end of the economy. but they expect higher rates.
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banks are another channel to be atuned to. put those stagszs on, they have good programming. same with oils. we have to see the earnings and the co-hort traded lately into the numbers. stock tv chases naturally. we saw natural gas trading. cabot oil and gas, i would after this rally, get out and rotate back. under armor. baltimore's he own. shut the lights out with the new footwear technology. and it exploded hire. $7.55 to be higher to be pesk. you want fickle. the other shoes crocs, that was in bull market. there's a lot of split personals
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in semis. doesn't make up for yesterday's hideo hideousbroad come, i'm calling it a push. starbucks up here and dunkin down here, america runs on starbucks lattes, and dunkin's coffee. i call it unleaded and diesel. in the end, today belonged to facebook. they could end up disrupt the entire advertising industry. put simply every major advertiser should be calling facebook and saying, i will put in a $100 million order and develop an ad campaign. they had much higher profits than anyone expected. look out it goes back to where it got started on the miserable ipo day, it's five points more and it's that good. the markets change the channel on the home builders today, all
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i can say is, don't get too comfortable. the viewers are restless and the ratings fluctuate. and what is good today will get changed next week. or earlier. that is wall street for you. let's go to dan in indiana, dan? >> caller: booyah. >> booyah, chief, what is shaking? >> caller: yes, sir, with silver prices going up, i'm looking at pan american silver and wondering if you think it's a buy right now? >> keep looking, come on, man. they are not going to get down and dirt with silver. if we wanted to we would buy gold, but if we do that we buy bouillion, i would rather own campbell soups bouillion rather than your pan american.
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>> calle >> caller: thank you for taking my call. ti, reported strong earnings today. should i keep? >> i don't know, o'reilly and auto zone have been consistently good and he i have been consistently with them. i don't think you need to sell. oh, my, gilead, can you believe it? facebook. the script has been flipped. from the home builders to the internet. stay with cramer. coming up, cloud nine, this tech stock skyrocketed today on earnings, we are not talking about facebook. is there still time for you to download shares of digital drug play, and many data solutions, or is it about to come back to earth, and later, food face off.
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the soup and sandwich shop, the silver bu arerrito and the gold arches, all making moves but the best one to buy may surprise you. cramer crowns king of the kitchen next. plus, out of juice, utility electric power was not able to shock the street with earnings this morning, but after a recent 10% sell off, could it power your portfolio hire? don't miss cramer's exclusive. all coming up on "mad money."
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>> we have seen a lot of
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horrible numbers. >> the internet but not from the cloud. take medidata, it's a provider that helps drug based companies. they had better than expected revenues that rose. in response, the stock soared $16.42, or 22%, a massive move in single session and now they have given you a 30% gain. here is the company that is right at the beginning of cloud computing and drug development two smoking hot areas. can they keep going or will they run into a place where they do not have room to run, let's economic in with the co-founder, chairman and ceo of medidata to learn more about the amazing quarter and what is in store for
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the company. thank you. right at the top you say there's a new sheriff at the fda. there's janet woodcock and she is saying that tests have to be done a particular way. from the literature, you are the only company that is doing the tests the way the fda wants right now. >> jim, what janet woodcock is saying, agencies have to change the way clinical trials are being done, what we help is our customers to do those trials in a very different way in a modern way, using the cloud. and what we help them do is to drive real value. make sure that we are getting high quality products to market. >> and in a much faster pace than the other guys from what i can tell from your statement this morning. >> absolutely. >> and cheaper. >> and cheaper. >> how can that be? >> cloud technology. >> it's just literally a game changer. oracle had a company in this business, oracle dominated this business before you had made the
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revolution. are you just taking their customers? because they were the big dog in this. >> i think we are redefining the industry. we are winning competitively across the board, but we are leading our customers down a new path too. and it's all about the platform and the value that we are delivering on the platform. that is improved quality, reduced risk, better time to market. so you are getting to revenue faster and you are getting better drugs to market and better cost for manufacturers. >> you said that the cloud based solution can be up and running in a matter on of weeks. what was it before this? >> months, years. >> who could afford that. some of the companies that you are helping have burning cash. >> that is what the values. >> what i was trying to understand, this quarter was rema
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remarkable, how much of it was brand new clients and you in the door and getting the whole suite of products? >> about 80% to 90% of our revenues come from repeat business from our existing customers and ceased adoption is driving the revenue growth. we are at the earliest stages of cloud technology into drug development. i have said it before, drug development is moving to the cloud and we stand to be the primary beneficiary of that move. >> you talk about a 35% improvement in the median time to data entry. i look at the client list and you have amgen and i love gilead, they had a great number after the bell. i do not see bio gen? are you targeting them? >> we have customers that are not list oed on the website. and there are others moving in our direction. >> this is the list you are a loud to share. >> absolutely. >> there are drugs being done right now, you mentioned gilead,
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we heard that they are submitting hep-c to the fda, it's the biggest scourge that could be cured. they would contact you and say, listen, we need to know outcomes instantly of this drug we are trying because it's so important? >> we do not get involved in the clinical side of it at this point, what we are focused on is how do we enhance the performance of how you run a clinical trial, that is how the cost savings come in and the better time to market comes n they are focused on is this they'raputically working. >> you are offering a off the shelf replicable technology, and the other guys are building it each time? >> there's a heavy service component to the technology that is out there and the important thing of what we are doing is we are bringing a lot of data to bare. we have information on millions
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patients and hundreds of thousands doctors at this point, we are looking at how do you use the transactional data to say, is there a better way to do the process? is there a better way to get through a trial faster? >> okay, one of the things that i was trying to understand, is that, this is -- this is a revolution that involves genomics and targeted theraputics, but you are doing it for the regular old drug companies too. >> it works across the board. >> i have to tell you, i mean, this is astonishing, i know a lot of people were concerned that your stock was expensive but your margins and revenues are growing faster than expected? >> we have a great business model. one of the things that makes us attractive, we have a vertical focus. incident industry centric and there's a lot of changes that are happening in drug
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development. >> obviously you own the space. that is what is happening, that is why i continue to stand by your company, right now, you are the only guy that knows what the fda really wants. that is a pretty good -- privileged moment for your company, to use your words. again, i know this is an expensive stock, but i want you to look at medidata solutions, because, what can i say, it's like salesforce.com when we first saw it. we saw it and everyone said it's expensive and it turned out to be cheap. after the break, i will talk about more. >> coming up, food face off, the soup and sandwich shop, the silver burrito and the golden arches, all making big moves, but the best one to buy may surprise you. cramer kicrowns king of the kitchen. >> are you sure we should take this billboard down?
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gentlemen please get down from the state farm borrow better banking sign. phil get the hose. okay he's getting the hose. alright, let's go. [ male announcer ] talk to a state farm agent about car loans that can save you hundreds. that's borrowing better. so you can capture your receipts, ink for tall business purchases.ds. and manage them online with jot, the latest app from ink. so you can spend less time doing paperwork. and more time doing paperwork. ink from chase. so you can. >> now, that we have gotten quarterly report cards from the quick-serve restaurants we hear how they are doing badly because
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the consumer is weak. witness ruby tuesday and the cheesecake factory lower today off of lackluster numbers. when you take a closer look at the earnings, it's clear the conventional wisdom has to be wrong and many of the quick serve names are worth buying, not selling. mcdonald's set the tone on monday, and delivered not so hot numbers, okay, sales in the u.s., just okay. they cautioned american consumers were under pressure. i think we should not jump to conclusions here. make the weakness is the fault of the consumer or maybe it's merely an alibi, i think the consumer is losing the appetite for some of the cheap, unhealthy food that mcdonald's is known for. but they are striving to make
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more healthy food. they are not a cheap stock. they have an 8% growth rate. consider that when chipotle roared to $400. did complain about the consumer? no, they delivered a 5.5% increase, thanks to increased traffic. we talked to the ceo the next day and he painted a rosie picture. more important, they give the lie to the consumer that they are not spending money on fast food. they have a 20% growth rate. i think they can deliver on that growth, so they are worth owning. and what do we make of panera bread, one that caused the stock
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to drop. they came in $1.74, low end, and $.03 below what the analysts were looking for. the reason for panera's weakness? the size at the average check grew by 4.3%, but the transaction volume was down .4%. so the issue is traffic. when a restaurant has a traffic problem, you have to ask, are fewer people not showing up, or are they not processing their customers enough? given that people are spendsing more, it's a through put problem, the kind of problem that chipolte had. the knee jerk reaction is that panera is in a slow down or losing its market share. my view is it's a near-term problem that has to getting people served and through the restaurant faster. listen to the conference call, the company is well aware of the problems. i think they will fix it. they are putting real money to work when it comes to solving
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the through-put problem. i think this pull back will turn out to be a buyable one. they are a powerful growth story. they are increasing their store base by 7% per year. invading a lot of new products. tappas small plates that are popular with younger people. i would not bet again them. especially since the stock is trading a more reasonable 20 times earnings. i think management can get the house in order and get themselves back in the right place. how about dominos. mere is another stock that sold off after being reported. hold it up. dominos beat the streets earnings by a penny. revenues better than expected and sales per store excellent. what is wrong with dominos? we just spoke to the ceo tuesday, i believe in their
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fabulous international growth story. plus, doyle, told us that they are gradualing improving hiring trends so the economy is not hurting them, but helping them. i thought he was subdued, implying it's stag nating. dominos did put up the best numbers of any restaurant that i follow. let's not forget, dunkin brands. which, taking these home, this is my favorite. which reported this morning, up 4% in stores. and the stock took a tumble, is dunkin another victim of a weaker consumer? i think not. in fact, dunkin's ceo came on
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"squawk box" and said they are feeling secure. what about starbucks. wow, it put up tremendous numbers after the close and it soared in after hours trading. do you remember what ceo howard schultz said to me not too long ago? >> two and a half years ago, the same people that probably hated the stock at $8, perhaps love it today at $65. the point of that is, we had to believe in our brand, in our purpose and in our business model. >> well, look, i love this. i still think it's worth buying and it tells you the consumer is doing just fine. as muches as i love starbucks. it's an expensive cup of joe. bottom line, quick serve restaurant chains are not getting pounded because of the consumers feeling stretched i think panera hit a bump in the
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road and it's worth buying along with chipolte, starbucks, dominos and dunkin brands. jude in new jersey? >> caller: jim, how are you? >> real good, a partner, how are are you? >> caller: quick question for you, do you think that mondolese is a good investment? >> no, i prefer pepsi co, i am not going to tell you to sell is it. i think pepsi co is better. let's go to fahan in california. >> caller: a big booyah to you and grand slam booyah to you from los angeles, california. >> thank you. >> caller: what do you think of dennys corporation, they have been paying down debt, and a tremendous share of buy-back program, and they have over 88
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properties and i was wondering if you thought they were a value play? >> i have not looked at it in a good time. my mom and i started to get the grand slam. when i looked thin, she said let's go get the grand slam. i will check on denny's and come back. don't move, if you are hungry for a quick serve play. panera, dominos, dunkin, starbucks, and chipolte wi drive a ford fusion. who is healthier, you or your car? i would say my car. probably the car. cause as you get older you start breaking down. i love my car. i want to take care of it. i have a bad wheel - i must say. my car is running quite well. keep your car healthy with the works.
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to talk with an insurance expert about everything that comes standard with our base auto policy. and if you switch, you could save up to $423. liberty mutual insurance -- responsibility. what's your policy? . >> it is time. lightening round, let's wrap it up. are you ready? time for the lighted ending round. john in texas? john? >> caller: hey, booyah. i got a low debt, high -- $13 billion in cash nice deffidents, give me the low down on
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qualcomm. >> you have a buy, buy, buy, mike in new york, mike? >> caller: booyah. from new york. the most recent, i was wondering what your opinion would be on filip morris? >> i am kill on perform -- on p morris, every country will put a hard tax on that, so i'm not a buyer. bobby in california, bobby? >> caller: cramer? >> yeah. >> caller: i got noble. what do you have on noble? >> that is absolutely my favorite, favorite oil companies and should be bought and bought aggressively. going to sammer. >> caller: booyah from atlanta, georgia. >> what is going on? >> caller: i want to get your opinion on xerox. >> i like the stock, go the ed
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in florida. >> caller: big booyah from florida. >> great to have you. >> caller: i want to thank you for every thing that you do for the little guys, jim. >> thank you. >> caller: i need to know what your opinion is on the rite-aid, because the place across the street from me is a dump. i like cvs, walgreen's and rite-aid in that order. to josh. >>. >> caller: booyah, las vegas, nevada? sweet. >> caller: what do you think of sony? >> i like the japan stock market, i would buy japan etf, let's go to gail in north carolina, gail? >> caller: greetings mr. kraming from north carolina. >> how is it going? >> caller: thank you for what you do. my question is about cracker barrel. >> they have a great buy back,
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and it was good, i would be a buyer for cracker barrel. michael? >>. >> caller: hey, jim, how are you doing today? >> good. >> i'm not in the gaming stocks, some like them, i don't. daniel in connecticut. daniel? >> caller: hey, hey jim, what is going on? big booyah from connecticut, i'm an 18-year-old college student and i'm trying pay my way through college and you are helping me i watch your show every night. my dad has a question for you. >> sure. >> caller: mdxg, jim? >> hey, listen, look, i cannot pass that test, i have to do more work, let me come back and get college credit. that is the conclusion of the
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lightening round. coming up, out of juice? utility american electric power was not able to shock the street with earnings this morning but after a recent 10% sell-off, could it power your portfolio higher. higher. your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade.
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>> yields are on the rise, what happens to the bond market equivalent stocks that we like so much like utilities that got slammed, consider one of the favorites, aep, one of the largest generators of electricity. aep has a 4.25% yield. they are in the middle of a change to natural gas, they have been switching back to coal because of the gas going up. american electric power reported today and the results were in just shy of what the analysts expected. on the other hand, the company reaffirmed the four-year
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guideness, so the stock got dinged $.57. let's talk about the ceo and find out more about the company. >> you have the industrial sales volumes, and your stuff is the most transparent and there's still a lot of negatives and businesses that are not doing that well in your area. but you also talk about in your report that you are ready to play offense, you are not playing defense anymore. what happens to your bottom line if some of the numbers switch to positive in. >> our earnings will take off improving economy will have a dramatic impact on our company. manufacturing, from the industrial standpoint, it's struggling at this point and it has been since third quarter of last year and it continues to try to struggle to rebound, but that primary side of things is
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having an impact on us, and that is driven by the world market and everything else. >> one of the things that i happen to like, but there's a huge glut in alluminum, at this levels, there's a glut in steel, and there's a glut in anything that you need for raw stuff to build. your area seems to be much more important to commercial construction than i thought. >> there's a significant piece, we are a third industrial manufacturing, a third commercial and a third residential in an 11 state footprint and the key thing to consider though from a financial standpoint, the margins in the industrial sector for our business are significantly less than the commercial and residential margins, but it's particularly important though that the industrial and manufacturing has sustainable progress to make sure that the commercial and residential
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continue to thrive. in fact, in your previous question, we continue to invest in transmission, and infrastructure. there's substantial infrastructure needs in this country and that is where we are focusing our capital investment at this point. >> you do mention in your conference call that you are actually somewhat encouraged with the new epa, they changed administrators. is it tone? or regulations? or when you speak with them? they say, you know what? you have done a tremendous amount with mercury, and nat gas, what is it about it that
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encourages you? >> there's a tone there, gina mccarthy has listened to the industry and continues to listen to the industry, and i like to believe that the epa has learned a lot through the previous rulings, particularly the mercury rule that was a over reach that required the requirement of 20 to 25% of the coal fleet in the country. when you are have that type of impact, you need to take a reasonable approach to the greenhouse gas rules that the president asked for. i think mccarthy and the epa is trying to reach out to the industry the to try to get that kind of knowledge base in place. hopefully we get rationally set of proposed rules. >> it did seem to be ideological. they never seem to care that it meant the rate payers could get hurt. >> that's right. and now, you are seeing communities be affected, particularly where coal units were previously. we are going to have more retirements and the communities are going to be impacted by that and i think they have taken notice of that. >> now, we do have a bit on of a housing boom, we have seen housing prices go up. we saw great new home sales yesterday, what has it meant for the electric power territory?
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>> in texas. and in ohio, our commercial sector, it continues to pick up. so that is where you are seeing the housing construction side of things and the residential is hang engine there pretty well even. so, that, that is really the primary areas that has benefitted from that. and then, as well, the oil and gas activity in texas, and in the shale of ohio have had a positive impact as well. >> the only industry that is having great year over year besides petroleum coal is paper manufacturing. >> as a commercial sector picks up, the need for those products improves. the more that improves the better off we will be. certainly, like i said earlier, the manufacturing sector is key as well. >>vy to tell you, if you get alluminum up, shale could offset the decline in alluminum. it is the go-to play, nick
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aikens, thank you so much for coming on. >> thank you, jim. >> guys if we ever do get an industrial turn in the country and you want to get a good yield, it will be aep in the interim, you just get a good yield, "mad money" is back after the break. [ male announcer ] come to the lexus golden opportunity sales event and choose from one of five lexus hybrids that's right for you, including the lexus es and ct hybrids.
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>> you ever thought when a stock move, somebody saw it and you didn't? but you were fleeced by those that had the inside skinny and you never did. people that knew what the quarter would be before it was reported and where the next shortfall would occur? if you read the indictment of sac capital that was filed today, you may draw the conclusion that your suspicions were right. the implication is that sac had the call consistently. they knew what was going to happen in a broad range of stocks. intel, cypress, microsoft. this indictment alleges that the firm knew what was going to happen ahead of time. which in my view, means that if you were buying or selling the
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stocks, you were a dope. they the information every day of the week. now the government wants back what it perceives to be the ill-gotten gains. brokerage firms may be hesitating to lend sac money, they may fear that they do not see the money back if the firm has to close the doors. the story broke down instantly about charges as heavy and frightening as these. i'm less worried about this one. sac has never been addicted to debt. you may ask why the firm is being indicted. if his name sake firm is the perpetrator of the crime. some say, it happened because they could not nail cohen, they nothing on him. no one has flipped against the men they work for, so with we
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have to take action anyway, we can not let cohen get away with it. to me the government is saying, look, call in recruited people had a edge, a legal edge, people who knew more than you do, and people who were meant to find out things that you did not. information about all the stocks and many others. this culture specifically was mentioned today. >> today's indictment is not just a narrative of names and numbers, it is more broadly, an account of affirm with zero tolerance for low returns. but seemingly tremendous tolerance for questionable conduct. >> wow. the indictment then alleges that coh event n pay the recruits huge bonuses if they had the
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information. the key to this case is not that cohen took the money and then bought stocks off of it. it's the opposite is, the fraud that is government believes is the process where cohen was kept in the dark regularly about why the analysts wanted to buy the stocks. the whole firm was going along with don't ask, don't tell. he was not supposed to ask why the analyst likes or disliked the stock. if the government is right, sac could be considered a criminal entity. it wrecks the level playing field. hedge funds like people are innocent until proven guilty, i am anxious to see what he said in response. if you believe the indictment, the take away is you were not paranoid about stocks. you were not wrong to think that indeed, someone had tomorrow's newspaper today. and the government is not going
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to let this firm keep what they see as illegal gains or rig the gains against you, for that matter. let's see what happens to sac, but take heed for those hege-fund managers, the next indictment could have your name on it. [ male announcer ] i've seen incredible things.
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are not done. they will now be the favorite stocks of the second half of 2013. i would not take profits. i'm jim cramer, see you tomorrow. when so many people from a single hedge fund have engaged in insider trading, it is not a coincidence. it is instead the predictable product of substantial and pervasive institutional failure. >> there you have it. the u.s. attorney in new york slams sac capital as a repeat offender and charges the entire firearm with insider trading. the feds also have a new witness in the case. but guess what? sac's assets are not yet profro. that means they can k

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