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tv   Mad Money  CNBC  October 1, 2013 6:00pm-7:01pm EDT

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to flare and not taper, which i'm starting to think that they ma may. >> cheap cheap cheap. >> all right. thanks for watching. see you lab. meantime, "mad money" 2000 starts right now. it's been 1,999 episodes bringing wall street to main street on up days, down days, even on the days the government shuts down, we've gotten through it together. it's been a long journey, cramerica, shoulder to shoulder and tonight we're planting our flag in the heart of it all in front of the new york stock exchange. "mad money's" 2000th show begins now. i'm jim cramer and welcome to my world. >> one man, one mission. >> i want to make you money. >> eight years. >> you need to get in the game. >> tens of thousands of miles traveled. >> this new black gold rush is getting started. it's the sound of american industry roaring back to life.
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>> hundreds of ceos. >> my life story can be your life story. >> thousands of callers. >> boo-yah, jimbo. >> millions of your e-mails and tweets. it all adds up to "mad money's" 2000th episode. hey, i'm cramer. welcome to the 2,000th episode of "mad money." welcome to cramerica. welcome to the new york stock exchange. other people want to make friends, i'm trying to make you money. my job is not just to entertain you but to educate and teach you. so how has this market lost its mind? the dreaded government shutdown we've been fretting about constantly goes in effect at midnight last night? and what happens? we barely bat an eyelash. dow gaining 62 points, nasdaq advancing an awesome 1.23%. hitting one more 13-year highs. what the heck is going on? could it be mm2k?
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the fact that tonight is the 2,000th episode of "mad money"? hey, look, not likely. so how is it that we rallied when the very thing that had been causing the market to sell off last week into yesterday finally came into effect? well, jim, i'm glad you asked that rhetorical question. because the way stocks are reacting to the actual government shutdown is a terrific example of how the market works. and just as important, it gives us a chance to explain what it is we really do here on "mad money" for this, i still can't believe it, our 2,000th anniversary. first of all, it's possible all the buyers today are whistling past the graveyard and we're about to get hit with a long lasting government shutdown followed by another debt ceiling crisis that could be calamitous for the u.s. economy. maybe, but are people buying that? are they buying that washington is expecting to get the act together and handle the next crisis? i've got another explanation.
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my reasoning is based on the big bad event theory. when you have a big bad event that's set in stone, something like the government shutdown date, things tend to follow a typical pattern. i consider the example typical because i don't think anybody expected the democrats and republicans to reach a deal before the deadline, did they? maybe after the big bad event, there was lots of selling, people will freak out about consequences, which is what we saw last week and yesterday, we were down 7 out of the last 8 days. but once the event happens, stocks can really put on a show, which is what we got today. the market's reaction to the shutdown was, hey, been there, done that, know how it plays out. eventually make a deal. even if some takes some time. and when that happens, we feel like morons if we panicked instead of having a huge up day like we had today. that said, i wouldn't breathe a sigh of relief just yet. we still have another big, bad event to go through, the debt ceiling debate. which means this market could go lower again as we get closer to october 17th when the government runs out of money and the debt
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roof needs to be raised. but you know what, we spend way too much time talking about washington. sure a protracted shutdown could hurt domestic companies, directly impacted by visas, national park closings and worries that something might be open when you get there and it isn't. but the fact is, washington's not and has never been the be all and end all of the stock market. the truth is, politics is just one piece of the puzzle. not even the most important piece at that. when this show first started back in march of 2005, most professional money managers and business oriented talking heads barely paid attention to politics at all. now it can seem like politics is all they pay attention to. and i think we got to correct that misperception on this 2000th show. i'm worried about the debt ceiling like you are, but don't let that blind you to opportunity if we go lower. here on "mad money," we only care about one thing, using the stock market to try to help you make money. when i roll up my sleeves every night to do a show, i put aside everything that's not relevant to the mission. my only mission is to get you to buy stocks going higher and
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avoid stocks going lower and teach you to be a better investor. i think i can help you figure out the difference between what a company is worth and what the stock's trading at. that's my real job, show you how to apply that homework to the stock and explaining how that stock can divorce itself from the fundamentals. believe me, no one in this game knows divorce like i do. at the heart of this show as a wide ranging nightly entertainment about basic algebra. something i started learning my second day at goldman sachs when our teacher devoted three straight hours to solving for "m" to figure out the earnings estimate and compare the growth rate to the secular and overall market to know how much to pay for the earnings stream. trying to figure out the price. the ultimate equation, m for multiple, e earnings estimates to equal p, the price the stock should sell out. consider it a game show about stocks. i have to explain why the "m" trades what it is and why it goes up and down, like a netflix, tesla, amazon, where
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for the moment we've got to throw out the "m" because the stock isn't bound by algebra. tonight is no different than the last 2,000, trying to find the imperfections, and trying to divine what we should and will and are going to pay for those earnings. sure, we get sidetracked by government brinksmanship, partis partisan, but the only thing we're trying to figure out is how a stock goes from point "a" to point "b," and you can only figure out if you've been behind the scenes with those who set them like i've been. the crucial thing for you is not to get too hung up on the big picture worries. the key is these micro individual stock opportunities don't go away just because all the talking heads are panicking about washington or the next manufacturing crisis or the next. so you need to be steadfast. i'm urging you not to panic and figure out what's being driven down too far. what can go much higher? what's just right? these are the lessons of "mad
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money." here's the bottom line, after 2,000 episodes, can you believe it? how the heck old must i be? with a government shutdown and debt crisis there in the merry old land of washington, we're still doing the same thing here on "mad money," teaching you how to figure out which stocks should go higher and hunting down those bull markets you know i love. as i never stop telling you, there's always a bull market somewhere and i promise to try to find it just for you. let's take a question. how are you? >> hi, jim. my name's sandy, i'm from atlanta, georgia. >> how are you doing, sandy? >> very good. i flew in this morning specifically and solely to celebrate your 2,000th show. and i'm flying out tonight. and i have a predicament i'd like your help with. >> sure, let me solve it. >> you say we should buy things we know and we like. well, if i'd bought alergan when i started getting botox, i wouldn't be in a predicament, but now it's coming back. with all the change in regulation and china and asian
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companies, i was wondering what your thoughts were on agn. >> my problem with allergan, one of the biggest drugs might come under attack from generic -- a couple of generic entries. he camen on the show, he's a stand-up guy. but i have to tell you, and first of all, thank you for coming from atlanta. the worry is a overhang. i think it's a buy, but wall street doesn't and wall street's bigger than i am. >> big boo-yah to ya. i'm andy from new jersey. coming up on the one-year anniversary of hurricane sandy, gnrc, are we going to need another big storm to keep that going? >> that's absolutely the case. one of the things i love about joe kernan, he bought generac, but here's the problem, without a storm, that stock's not going higher. and i don't like to be dependent on a storm. all right? fair enough? 2,000 shows later, a lot has changed, but one thing remains,
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the same opportunity and strength in the market that i'll always help you find. "mad money" will be right back. coming up -- level playing field. from the first show -- >> we call my world "mad money." >> -- to the 2,000th, cramer's been bringing main street to wall street and he's not stopping tonight. an exclusive with the ceo of the new york stock exchange is just ahead. find out what's being done to keep your money safe. and later -- back to the future. if you think this government shutdown is bad, how about some perspective? cramer's turning back the clock 1,000 episodes. how far have we come? and how do you position yourself to profit for the next 1,000? all coming up on this special mm2k edition of "mad money." don't miss a second of "mad money."
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follow @jimcramer on twitter. have a question? tweet cramer #madtweets. send jim an e-mail to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. clients are always learning more to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me.
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jim cramer. >> jim cramer. >> the very unstable jim cramer. >> cable news famous jim cramer is seriously famous. >> this fiery money manager rolls up his sleeves to host cnbc's "mad money." >> who is cramer? >> jim cramer. >> he's evidently insane. >> you have to be nuts to understand the market and i am nuts about the market. >> from the host of cnbc's "mad money," here's jim cramer. >> who does forbes magazine say is the hip hop artist? >> jim cramer. he even mentioned it on "mad money." >> this fake block thing is poised to explode. >> spending all day listening to my dad yell about "mad money" with jim cramer. >> bottom line! everything's enjoying to be fine.
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>> stark industries. that's a weapons company that doesn't make weapons! >> sat in front of the tv, make them watch "mad money" all day long. >> boo-yah. >> are you okay? >> oh, yeah, it's nothing, i was a guest on "mad money" last night. >> what's happening? is one of you jim cramer? okay. stop it. stop it. >> hello fellow facebookers, i'm here to get you more friends. >> there's one guy that gives you to it straight. >> what's up with the stock market? >> i don't know, what's up with your face? >> jim cramer had this to say about the economy. he's a prophet. >> he's nuts! they're nuts! they know nothing! >> they know nothing! they know nothing! >> don't you think you were too calm? >> he was right. we were at the beginning of this great panic. >> for investors, what is your advice today?
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>> whatever money you may need for the next five years, please take it out of the stock market right now. >> that was a call that should've wrecked my career and it would have if the market had gone up. but i stuck my neck out and did it. >> would that be jim cramer's from cnbc's "mad money"? >> somebody light me up. >> i have brought in a financial heavy hitter. >> please welcome jim cramer. >> i don't have money -- >> you don't have -- it's very hard. >> it is -- >> yes! >> jim cramer! >> and then you get mad and then you get mad. >> mr. cramer, are you the tv personality who regularly shouts and badgers on "mad money." >> i think badger's debatable, but i have a very flamboyant personality. >> some sound effects, some buttons. >> you have beautiful eyes. >> the president wasn't as fevered this morning as jim cramer. >> i've never seen the president that fevered. >> we're joined now by cnbc's
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jim cramer and former chairman of the federal reserve alan greenspan. >> i got my own show. >> for years now, i've been on a crusade to restore confidence in the stock market. not just the viability of stocks as investments, but the machinery that makes the market run. every time there's a glitch or worse like the flash crash freeze, more people want to write off the entire asset class. tonight, we're going to talk to the ceo of nyse, which is now merging with intercontinental exchange. mr. niederauer welcome back to "mad money." >> congratulations on 2,000. >> it's been 2,000 shows. >> okay. >> i say it's not about friends it's about money but you are my friend. >> thank you. >> and sometimes just got to own that. all right? >> i got it, man. >> you have done more than anyone in the firm right now to
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make people feel that the market is a good place for regular investors. sometimes i feel you're losing, duncan. >> there are days i feel like i'm losing too. and i feel like as everyone's decided to have the arms race to make the market go faster, it's gotten more complex. i'm afraid that complexity has been inversely correlated with confidence. investors should've felt great when decimalization hit because the spreads got narrow, the retail investor won. it might be in retrospect, should've declared victory then and stopped all the other madness. >> well, when you look at things like -- this wasn't yours but facebook. i feel facebook and the flash freeze and the flash crash were the three incidents that i always get thrown in my face when i say, listen, you can trust stocks. how do you bring it back? >> yeah, and it's really hard, right? i want to draw a parallel for you because what you're all about on your show, right, is the intersection of main street and wall street, right? and we're at the intersection of main street and wall street
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today, right? that's what's so nice about you being out here. to me, what facebook was all about is what you do every day on your show. you democratize the market. people say to me all the time, because that didn't happen here you must be happy because it helped you. it didn't help anybody, right? >> no. >> that was the redemocratization, it hurt facebook, hurt the markets but most importantly hurt your viewers. >> yes, it did. >> because that was their invitation to come back and said the water's safe, come on back in and i think we missed an opportunity to redemocratize the market. >> but there's another chance, a lot of us @jimcramer twitter, a lot of us tweet. this is a second chance, a democratic platform many people know. give me your elevator pitch to twitter why they should be here and not nasdaq. >> i love you, you're a good friend, i'll give that to you off the air because i don't want to give any secrets away. >> do you have a shot? >> i think we have a shot like any other piece of business.
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got to earn the business, right? we look forward to having the opportunity to present to the team at twitter and do everything we can to earn their business. we'll deliver the goods when the time comes. >> we have a different process here. >> tell us why it's different. >> you never say technological -- anything technological is not infallible. every technology has its flaws, right? what we're proud of, we've reinvested. we've completely rebuilt the tech platforms, we keep human beings involved specifically so that if things start to go awry with the computer, you just take everything off autopilot and the human beings take over when they're needed. we all know, technology works great most of the time. everybody here knows it. when you hit send on your e-mail, you expect it to go. sometimes it doesn't. you've got to have human beings ready to get involved. >> i couldn't agree more, that's why i love it.
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>> it's high-tech. >> government shutdown, one of the great years for ipos. we don't talk about enough ipos being jobs. that's how jobs are created. where does the government shutdown come in about companies wanting to turn public? sec not open, say they're open for some things. what's the story? >> there's a lot of questions in there. i'll try to answer it. that's why we love you. so point number one, it has been a great year for ipos. >> yes. >> and that's -- we take that for granted as americans, and it has -- there's going to be 200 companies that go public. >> hiring and money. hiring. >> what do we know? we know every company that goes public takes the growth capital and creates jobs. that's why we're so focused on it, so focused on the jobs act. that's why it really matters for the economy. what do i think about the government shutdown? no impact on the ipo stuff, in my humble opinion. where i think it hurts is it's a missed opportunity. i said to one of your peers in the media last week, right, balance sheets are healthier than ever, ipo market's strong,
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tech innovation alive and well, energy revolution is smoking right now. if they could just get out of the way and facilitate all that, you'll unleash an upside surprise in the economy. >> that's why you and i are good friends on and off the camera. duncan niederauer, good luck, buddy. >> i'm going to hijack your program, okay. >> what? >> you've got to come with us. it's safe. you've got to come with me. >> aren't you a bronco fan? >> no, there's one thing i'd like you to do. we've got a little surprise for you. >> i think you surprised my camera men, they're running all over the place. >> this is -- anybody who knows your story -- >> you're kidding me. >> anybody who knows your story knows this was basically the bottom for you. >> this was where -- >> you know what this tells us, man. i had the chance -- >> how did you get this? >> these guys, your colleagues found it, wheeled it out here and kept it as a surprise for
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you. you know what this tells you. i had a chance to give the commencement speech at my alma mater this year and the theme of my speech was "why not." if you dream big enough, sometimes when it looks like it's the worst, you can come back from everything. and look at you. >> can't come back from it. in this country you can come back from anything. >> you got it, baby. >> i slept back here, i had a .22 caliber pistol, a bottle of jack daniels. it was cold. you know what, you can come back from anything. >> you can come back from anything. look at you today, it's your 2,000th show, baby. and i know you're going to close the market remotely tomorrow from engelwood cliffs, so when you do it -- >> you are -- >> don't hit anybody. >> those days are over too! i'm a kinder and gentler guy, duncan. >> congratulations. >> stay with "mad money." >> thanks. coming up -- back to the future. if you think this government
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shutdown is bad, how about some perspective. cramer's turning back the clock 1,000 episodes. how far have we come? and how do you position yourself to profit for the next 1,000? all coming up on this special mm2k edition of "mad money." ♪ ♪
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thanks to everyone out there in cramerica who sent in those videos with the hashtag mm2k. keep checking the ticker, you might see yours appear. i take you back in time to a truly dire moment. the moment of our 1,000th show. april 9th of 2009. funny, just like today we heard the sirens of fear back then and i thought it was my job to come out here and tell you, look, we will get through this. we just got to hold on. i'm saying it again. and clearly the market agrees with me. 1,000 shows or so again, it seemed like a pollyanna statement when i urged you to
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stay the course. some said i was an apoapologistr a system going down in flames. figured it was a rally from the bottom that was bogus and not the bottom itself because we had to go lower. the dow stood at 8,083, 15 points above the closing low one month before. the idea we could come back so far so fast in a month, it was ridiculous. it was fanciful. no one could see that anything had gotten better and i get that, in fact, unemployment hit 9% the week before. it was going to head all the way to 10% by october of 2009. that's right. many things were getting worse ban then. yet the dow and s&p have doubled since we did our 1,000th show. we didn't test the lows from the month before. we went to impossible levels that no one dreamed of at the time. the impossible does occasionally occur and at least in the market.
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but i can see why people back in april of 2009 when we did that 1,000th show felt trepidation after a huge move from the one month, 30 days before. so think about it, who would want to buy chipotle at $72 on april 9th of 2009 when it had been trading at $49 on march 9th of the same year, well, now it's at $426. who would want to buy whole foods at $8 when it was trading at $5 only five weeks before? today whole foods closed at $59. how silly. how silly would you have felt picking up some apple at $119 knowing that five weeks before it had closed at $58. today apple at $448. forget about bargains like pier 1, previous days it was at $15. boy, missed that bottom. doubled from two to four. pier 1's now at 20, hertz at 22. the only bargain that might have looked cheap at the time was regeneron, merely gone from $12
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to $13. now it's at $315. i bring up these prices not to make you feel badly if you missed them, although we pound the table pretty darn hard on the regeneron, our first ceo guest. no, i bring them up to to put the current moment in perspective. to show you that good things do happen when the situation improves, even if it doesn't look like it's improving at the time. things have certainly gotten so much better since april of 2009, 1,000 shows ago, our banks were struggling to get back on their feet and the government was forcing them to raise capital. we were about to head into a second great depression, the banks raised the money, took hefty reserves for bad loans that are turning good again. back then, home prices were plummeting and grapes of wrath type style. just beginning. there's still plenty of people battling foreclosure. to say that the housing situation was anything like it was back then, that's just wrong, it's insane. we all know employment isn't where we'd like it to be, but in april of 2009, the despair was
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palpable. here's why i bring this up. the situation has changed dramatically for the better. yet there's still plenty of people who think we could be going back to the 2009 scenario in a nanosecond. the crisis has been over for a long time. the crisis mentality never went away. so many people confused systemic risk which is what brought us to our knees in 2009 with cyclical risk which is what we face right now, might cause the economy to back slide into something dire. sure the estimates have to come down for travel leisure and retail. we know when the sequester began, almost all the airlines and the retail related companies blamed shortfalls on reduced traffic. some of the airlines complaining about government workers not flying as much. they will bounce back quickly. and they will this time too. companies took advantage of the federal reserve, fixed their balance sheets, dramatically reduced the interest rates, medical report ganls, refinancing, others like apple borrowed tens of billions of dollars to buy back tons of
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stock. plus, two remarkable sources of wealth creation since the bottom of 2009, our domestic oil finds whi -- produced hundreds of billions of dollars in new wealth. these wonders of progress and stability have occurred between our 1,000th show and 2,000th one. many have acted as if nothing's changed at all. others would insist that things have gotten worse. still, others demand the government shutdown precisely in order to make things worse. here's my bottom line. let's say i tell you to get out because of this shutdown. let's say i do that. that's an easy call, right? let's tell you it's all over because we're up too much on a percentage basis. would it be any smarter if i told you to get out of whole foods and chipotle after the gains in the months leading up to the 1,000th episode? there's a huge difference between systemic risk like we had when we did that show in 2009 and in 2008 when i told you to get out immediately. and then the kind of standard cyclical risk we're now facing. the western financial world is
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not in mortal peril anymore and there won't be time for you to get out and get back in again. so once again, stay the course. let's take a question. >> boo-yah, jim. >> boo-yah. >> michelle, donovan on our honeymoon, we wanted to find out about clf. >> clf. look, you're 15 minutes from where anadarko and oil have all this oil and you come to me with a coal company. come on, man, face the music. get involved, go buy some noble, okay? >> sounds good. >> hi, jim, congratulations on the show. >> a young man, snazzy dresser. >> i'm brendan, big boo-yah from nyu. >> terrific. >> what do you think has better upside, cisco or brocade. >> my charitable trust owns cisco. i think chambers is having a good quarter, i wish he hadn't taken that big pay raise. i think cisco goes to $25, and i like that more.
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brocade is a spec. stay away. if you stayed the course after our 1,000th show in 2009, you did the right thing, here we are 1,000 shows later and i'm telling you to stay the course again. we put plenty of miles on our back during the 2,000 shows. take a look at some of the highlights we made along the way. >> this is going to be the most important, most useful class you'll ever take at any university anywhere! texas. virginia. >> penn state. michigan. ohio state. iowa. welcome to "mad money" 101! welcome to the heart of american manufacturing. ford f-150 plant in dearborn,
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michigan. "mad money" has boots on the ground. in the heart of steel country to show you how the biggest oil and gas discoveries in a decade are putting a fire back under an industry left for dead. who says we don't make anything anymore?
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"lightning round" is sponsored by td ameritrade. thanks, jim, for all your hard work. ♪ with your help i'm starting to see the light ♪ ♪ you're helping me get it right helping me get it right ♪ it's time for a very special intersection of wall street and main street outside the new york stock exchange "lightning round" on "mad money." taking your questions rapid-fire. you say the name of the stock, i tell you whether to buy or sell. my staff prepares the graphics on the fly. are you ready, skee-daddy? time for "lightning round" on cramer's "mad money." >> boo-yah, jim. happy 2,000. i was wondering, do you still like panera after morgan stanley downgraded? >> is the quarter that good? i don't know. i think panera bounces back. i do like chipotle too.
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the upgrade is more important than the downgrade at panera. yes. >> peter from new york. wondering with the upcoming budgetary battles, what do you think of the cyber security providers that have recently got -- >> what? >> like a csc. >> i like them. i think they're not going to be bound by the multiples, i think it's an exciting year. david faber and i talk about cyber security, they're still worthwhile. still worthwhile. >> lauren from new jersey. i want to know what you think about the future of frontier communications. >> no. i don't want to touch it. i don't want to touch it. i've got my hands filled with at&t and verizon. i don't need frontier. yes? >> hannah from florida. what do you think about fifth and pacific? >> which one? >> fifth and pacific. >> yeah, you know, not bad. i misjudged it. much better than i thought. apparel, you've got to be careful. but it's had a good run and i was not on that one. i didn't think it could have that kind of run. it's a good call. yes? >> hi, jim. i was wondering with gold dipping down below $1,300 today, is a good time to buy?
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>> yes. every portfolio should have a little bit of gold. gold is being hurt very much by india selling. india, typically, this is the season, the marriage season, when they should be buying, they are not buying. i like gold here. yes. >> coach k, mel brooks insisted that i congratulate you on by the newly minted day old man. >> thank you. >> rbs. >> rbs. people laughed at me when i said at ten, this is one i have conviction in. i'm not backing away now. i think there's tremendous value. i'm not backing away. by the way let me throw in bbva. i think that's cheap too. yes. >> first off, great taste in cars. >> you like that? left center and $1,000. >> hey, with that said, with alternative fuels being so popular, should we watch any of the big three? >> well, i like ford. i think ford is big. i think ford is big. you see the numbers today, they were excellent.
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i don't think he's going there. he told me he isn't going there. >> hi, jim, darci from kirkland, washington. congratulations on episode 2,000. boo-yah. >> boo-yah. >> question on google, i saw them breaking ground in my hometown to create a second campus. >> the last quarter didn't have as much mobile as we thought. that's one of the reasons why people like facebook so much. i still have great faith in google. deep in the money calls. i think there's an opportunity. i like the ad buying. >> what about these companies that forego quick profits like amazon for reinvestment. >> amazon and tesla and netflix are not bound by the four walls of the spread sheet. i think amazon's having an unbelievable quarter. i think people look at the international opportunities and deciding it's a well-run company and bezos is a genius and they're buying it. who am i to get in their way? >> i'm robert, my stock just went public.
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>> you know, a guy -- you know, great football player on the team there. and i think it's okay. that's not my favorite sector. it's not my favorite sector. th they're going to solve the budget deficit and then the debt ceiling and people are going to start talking about this taper thing again which i can't stand. th that's going to hurt that stock. >> what about gap? >> you know what, gap, i didn't like the quarter. i didn't like the progression of the quarter. started strong and went weak and said bad things about back to school. i'm scared of gap. i don't want to touch hiter, maybe at the 35, 36 level, but not here. >> i'm jordan from new york, my question was about vodafone after they pay the special dividend. >> buy, buy, buy. what an opportunity, one of the three best stocks provided. i like it very much. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade. mad about "mad money"?
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boo-yah, jim cramer. i watch "mad money" so i can afford body building. >> not only is this the 2,000th edition of "mad money," but tonight we're taking a closer look at the incredible strength
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in one of the most underappreciated averages. another 2,000 player this time. this is the russell 2000, containing 2,000 tiny small cap stocks and lately it's been en fuego, up 28% for 2013. doesn't get its due. doesn't get talked about enough. what is moving in this russell 2000? what's letting it roar? when you take a closer look at the index, what you see the among the 25 best performers of the group, turns out about half are biotechs. we know it's been a terrific year for biotech stocks, especially small ones, working on new, exciting drugs. why has this sector been so hot? in part because growth prospects totally immune to the horror of a government shutdown. biotech companies make drugs for heaven sake and you'll keep taking your medication regardless of what president obama says about john boehner or anyone else. try as washington might to meddle in everything, it can't
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screw up the brilliance of our scientists working within the confines of capitalism. however, when you consider the 11 best performers, you can see why this is so hot. number one, the best performing is acadia pharmaceuticals. here's a company developing a drug for psychosis caused by parkinson's disease. reported pretty positive phase 3 data. long way off, but for development stage biotechs like this one, the stock trades on pipeline catalysts more than earnings estimates. next up, probably familiar with this one, celldex pharmaceuticals. it's an orphan drug developer and particularly one that targets a rare kidney disorder and working on novel treatments for cancer. the two areas where you can charge hundreds of thousands of dollars a year for a drug once it gets approved. celldex is a big catalyst company. next month we get more phase 2
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data on the brain tumor vaccine treatment. we begin recommending at $12.78 for 188% gain. third best insys therapeutics. that's all right. it's largely thanks to the launch of the company's fast-acting painkiller for patients suffering from cancer. plus, insys is ideal for you midnight tokers in the audience. developing real medical marijuana. and i know @jimcramer on twitter you're asking about this. to help chemotherapy induced nausea. and then there's biopharma up 285% for the year. developing drugs for kidney diseases and cancer. their flagship product for patients with end stage renal disease in phase 3 trials. very positive, very few safety issues and much fewer in the competition. has what we like to see, good clinical trial results with a drug in phase 3, the last phase before it can get approved and come to market. next up, it's clovis oncology,
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up 280% for 2013. developing a novel treatment that works against a type of non-small cell lung cancer with a specific genetic mutation about 15,500 americans a year. stocks roared after the data came out. though it's pulled back lately, clovis has more in the pipeline. then there's isis pharma, even though the latter is further down the list, they're up 259%, 250%, 237% respectively. isis use the same pathways to develop drugs, mess with the rna in your cells in order to produce spectacular results, although alny is roading t iridt tails. and it's the one i like the most, rerecommended isis a year ago then they had fda issues, took a lot of heat on that. but the ceo came right on the show, stock was at $9, answered
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our questions and since then the stock has quadrupled even though i got a lot of twitter bombs saying it was going to go lower. not just this orphan cholesterol condition, 20 more drugs in the pipeline, it's real, people. next up, nps pharma, another "mad money" favorite, up 249% year-to-date. here's another orphan drug name. they have one drug on the market that's been approved for short bowel syndrome. when i recommended this, many people seemed to hate it and another one i got attacked for. give me a break. now seems like it goes up every day. there are two biotechs we've never talked about it, aztecs up 191% and puma up 186% for 2013. aztex, the bulls here say it is one of the most important advances in chemistry. going to drill down on this one for a while. the last 20 years, no one's seen anything like this astex bought, ring the register, congratulations. as for puma biotech, working on a treatment for a specific
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breast cancer. what i like about this one is the management. sold the company to j & j for a billion bucks not that long ago. i think he's got a real eye for shareholder value. here's the bottom line. we want to know what's working. and when you look at the hottest stocks in the russell 2000 small cap index, half of them are biotechs. use this list, do your homework and see which ones you like. remember, these are tiny biotechs only for speculation. and given we've been at this 2,000 times, you know we mean it when i say they're not celgene or biogen, but they might be the sons and daughters of the four horse men of the big pharma apocalypse. stick with cramer. iona. tell me fiona, who's having a big tire event? your ford dealer. who has 11 major brands to choose from? your ford dealer. who's offering a rebate? your ford dealer. who has the low price tire guarantee, affording peace of mind to anyone who might be in the market for a new set of tires? your ford dealer. i'm beginning to sense a pattern. get up to $140 in mail-in rebates when you buy
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four select tires with the ford service credit card. where'd you get that sweater vest? your ford dealer. at bny mellon, our business is investments. managing them, moving them, making them work. we oversee 20% of the world's financial assets. and that gives us scale and insight no one else has. investment management combined with investment servicing. bringing the power of investments to people's lives. invested in the world. bny mellon. humans. we are beautifully imperfect creatures living in an imperfect world. that's why liberty mutual insurance has your back, offering exclusive products like optional
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>> i'll say this about the republicans in congress -- the republican party was the party of business, gop stood predictably for what was good for sales and profits. they would complain that's because the republicans were rich, rich constituents owning stocks and bonds. over time, though, we've seen the republicans go into two parties, majority pro business and the minority that doesn't respect the federal government itself. doesn't seem to think much about the stock market, bond market. small businesses are private, after all. the anti-government minority seems to become more able single issues, play to their base to get on the ballot without facing a tough primary challenge in the redistricted seats. they seem to be united on one issue. anyone can throw a monkey wrench to prove a point. republicans seem to want to stymy any budget deal. you wouldn't expect them to throw a second monkey wrench
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into the works of the more important negotiations over the need to raise the debt ceiling. something 16 days from now. if it doesn't happen, the country defaults on obligations. the republicans might challenge the full faith and credit of the treasury bonds? that's extraordinary. aren't there enough republicans in congress that still love bonds? still own them for heaven sake? why would they risk destroying the value of the bedrock investment of both themselves and more important their constituents? we might expect this kind of thing from the democrats, party of labor, party of disenfranchised worker, not the republicans, that's what history says that history's clearly over. i bet the president's going to have to go to the supreme court to stop the republicans from destroying the full faith and credit promise. that's how out of control things are getting here. in the old days, republicans as i remember them stood for a single principle, if it's good for business, it's good for america. i think in the end that's why people in the stock market don't believe the shutdown can last that long. maybe some remember that defense secretary, former gm ceo charlie wilson who says what's good for the country good for general motors and vice versa. then again, that's when
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president eisenhower was the president back then, that was eons ago. all i can say is without a majority rule vote in the house which is what's needed, those bulls will be wrong. i think they might have misjudged the new gop. the capitalist party is long gone. and if i'm right about the transformation, we do have a couple of rocky days ahead and cheaper opportunities await those who want to commit their own capital to the stocks. stick with cramer. jim cramer, you're one of my heroes. >> i look forward to your show every weeknight. >> thank you so much for helping beginning investors like me. >> when you talk about the market, i just believe that you're spot on. >> oh, i love it. thank you so much. every night we watch you, i have learned and earned. so ally bank really has no hidden fees on savings accounts?
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no hidden fees. it's just that i'm worried about you know "hidden things." ok, why's that? well uhhh... hey daddy, what's your job? daddy's a uhh florist. are you really a florist? dad, why are there shovels in the trunk? there's no shovels in my trunk. i see shovels... you don't see no shovels. just am. well, it's true. at ally there are no hidden fees. not one. that's nice. no hidden fees, no worries. ally bank. your money needs an ally.
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stay connected to cramer on madmoney.cnbc.com. remember, this car, my old home is testament you can come
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back from anything. thank you, cramerica, the best audience in the world. thank you for letting me be your guide, your coach. here's to 2,000 more. i like to say, there's always a bull market somewhere and i promise to try to find it for you right here on "mad money." i'm jim cramer and i will see you tomorrow! day one of the government shutdown is in the books. guess what? stocks went up nicely. safe haven goal plunged, and the world as we know it did not end. in fact, economic impacts of the shutdown is vastly overrated. there's so much ill will in washington right now that the shutdown may last even longer. this is also the day you can start signing up for the new obama care health insurance exchanges, that is, if you could find a website that hadn't
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crashed. you can assess your in

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