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tv   Mad Money  CNBC  March 20, 2014 4:00am-5:01am EDT

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my mission is simple -- to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. i promise to help you find it. "mad money" starts now! hey, i'm cramer. welcome to "mad money." welcome to cramerica. welcome to seattle, washington. welcome to the starbucks' annual meeting. other people want to make friends. i'm trying to sparse every word from the fed's speech. tonight, i want to find you
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innovative ways to invest in america. that's why we're here today. but first, take a look at this market. holy cow. did it happen again? the federal reserve issues a statement, things get better, interest rates might have to go up early next year. really scary. that statement of commonsense is in a sell-more panic. s&p 500 declining.6 prkt. this show is coming to you tonight from the starbucks' annual meeting in seattle. i don't know if it's wake up and smell the coffee moment. everything the fed has been saying, some entity had to help grow this economy. higher rates being sell, sell, sell. for most of the professionals who take action, yes, indiscriminantly.
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so, when they perk up as they did, they sell. kind of unrealistic, as business gets better it will indeed happen. forgive me for playing the role of the cooler head in the field. for the entity of this miraculous run, the fed has said if the economy catches fire, rates may rise over time. it emboldens this fed to take notice. one day, not soon, one day rates will indeed have to be raised if this strength continues. that's called, doing what comes naturally. while short term it's jarring -- very jarring as it was today. stocks only go higher if businesses ultimately is getting better, which is what we want to happen now.
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better business means better sales. more sales means bigger profits. when profits grow, stocks go higher. if the price of money goes up slightly, meaning if interest rates rise as they did today, that's just in the regular course of business. it's true, for a long time, many stocks have been going higher because their management has been able to borrow money to buy back shares. other stocks have gone higher because they cut costs so much, let so many people go, sadly, and still had sales grow just a little bit so that they can return capital in the form of higher dividends. some companies have chosen to do both. those are the reasons why we've gotten this high. almost all of these stocks went down today, as some investors believe the cycle came to an end at 2:01 p.m. eastern time when the fed released its statement. believe me, if this stock is going to charge much higher
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today, then the economy in the u.s. must absolutely get better. because that will help not just the bottom line, which is impacted positively by the buybacks but the sales line. better economic environment. yes, to get still-higher stock prices, instead of the stall out in 2014, we have to get used to before the great recession happen. now we don't know when that will happen. nor does the federal reserve. the fed under janet yellen is no different than under ben bernanke. if things get worse, they'll do best to continue its easy course. that's right, if you want the stock market to go higher, you no longer want the status quo that kept interest rates ultra low. you want the economy to improve.
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how much can you take out of the supply chain? how many people can you fire? ceo from the international companies are more concerned than ever of china. they need the u.s. economy to get better in order to save the top line. they want the fed to take rates up, at least over time. more people are getting jobs, they're for more spending. everyone benefits when prices get higher. again, that's called commonsense. as you know, look, you know which groups of companies need the economy to get healthier, the banks, which by the way, still the largest group of stocks in the entire market. as is typical with this market, as the fed's statement was released, including the one that goes up, they have a few minutes
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later, the hedge funds know whether to buy or sell all stocks, the buyers did indeed circle back to the banks. so many big-time investors hate this group because they don't believe rates are going up. if you sparse the fed statement, they think things are getting better, hence the rise in interest rates. of course, that doesn't mean the banks -- when the selling squall is over, i think they'll leave this market. banks will be able to buy buy more stock and buy back more dividends. now, what else happens after the futures end? we circle back to the company that are actually doing well, as their stocks are hostile to the futures.
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in order to know which companies should go higher, you need to get out in the field and speak to executives in person. that's why we're coming to you from seattle, you'll hear from nordstrom's, seattle genetics, zillow, the world's online largest real estate site and starbucks. we're coming to you from the annual meeting of starbucks, 4,000-person pilgrimage. so, here 's the bottom line, sure, the investors have put the five-year rally on the federal reserve, feel the need to sell which they think the fed has reaped. regardless of slightly higher interest rates. those stocks will be winners, not losers. despite the fact, along with stocks of so many other companies were buried today on the possibility that one day,
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things will indeed actually get better in this country's economy. "mad money" will be right back in a moment. coming up -- spotlight on cement. the companies leading the push towards what's next in retail, health and housing. get a look at the impact these companies could have. starbucks announced a brand-new way for a way to order your calf fay on the go today. plus -- >> oprah! >> what was this special guest doing at a shareholder meeting. >> ladies and gentlemen, oprah winfrey! >> cramer takes you behind the scenes when "invest in america:brewing innovation" continues.
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don't miss a second of "mad money." follow @jimcramer on twitter. if you have a question, tweet cramer. send jim an e-mail. or give us a call at 1-800-743-cnbc. miss something head to madmoneyat cnbc.com.
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flew all of the way out to seattle for one big reason -- the starbucks annual shareholder meeting. starbucks isn't just any company, i'm not saying merely because they have a location on nearly every corner. it's the ultimate proof that you can beat the markets on individual stocks. on the ipo back in 1992 you would have over 14,200% gain. which means that if you invested $10,000 in the ipo, that position would now be worth $14.2 million. a gain that's deserving given
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the company's phenomenal growth rate. thanks to the ceo howard schultz. mr. schultz, welcome back to "mad money" and thank you so much for having us here. >> thank you jim for coming all of the way to seattle from new york. >> you introduced someone today who actually move the needle for a major innovation for starbucks. >> let's start with the opportunity. tea is a global category that we believe that has been xhod tiezed and ripe for innovation, really transform tea and teavana. we discovered that oprah is passionate about tea. what came about, authenticately, she loves tea. we created oprah chai tea, will be in the stores in time for mother's day. most of the proceeds will go back to help youth get access to education. >> howard, if there was any
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celebrity, i would say, you know what, this is for show, jim, don't drink the chai tea, i have done a lot of work on the oprah effect she's able to make it so sales are bigger. i know that teavana was a good acquisition, i visit td your store in new york, what will the new teavana look like? >> well, interesting enough, since 1971, when starbucks was founded, we know from research many of your coffee drinkers drink tea as well. the fact that we're going to raise so much awareness inside it's going to raisall votes at starbucks. at the same time, it will create so awareness and traffic for the teavana brand. you'll work into a teavana store, you'll see significantly display and visual and
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expression of oprah chai and clearly, oprah, among, the most popular -- >> we hear all of the tea in china, will these stores uniquely also with oprah, will there be separate teavana, given the fact that yum has kfcs in 900 different cities. >> i think china will have 4,000 to 5,000 stores when we're all
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said and done. it will she the will be the second largest market in the world for starbucks. are we going to accelerate our u.s. store growth? we're going to accelerate that because we have had such a strong position in the last couple of years. the new stores we have opened have been best in class. in terms of teavana, all of the teavana stores will house oprah chai in it. >> the idea of people thought of you moving into ceo, you were transitioning away from the company, within starbucks is this hidden gem that shouldn't be hidden anymore, because it may be the answer not for just for your place for every retailer around the world. >> starbucks has been a consensus-driven management structure. we sit down and we discuss
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things together. my change in responsibility is really not that significant in terms of the operational piece, i'm still in the meetings, the issue, though, we have an amazing, stunning opportunity within mobile payments and social and digital media. the fact that we have a lead isn't the issue. that's the price of admission. we're going to reinvent and we believe create an opportunity for a new source of revenue complementary for our core business. >> complementary, it might not all be within. if i was the co-ceo of chipotle, can i call you, howard, i would like to license your technology? >> you're a step ahead of most people, we are getting calls from retailers of all kinds asking whether or not we would white label --
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>> right. this is the key. >> -- what we have done. it's too premature to say exactly what we're going do. we realize we have created something that's highly viable. and most traditional retailers don't have the competency to make the investment we have. >> i'm going to go back over this. i wait in line at whole foods. i don't want to wait in line. i know what i want to buy at whole foods. if i were co-ceo of whole foods, i don't want to lose cramer's business, i want to get white label business, this can be a reality of 2015. >> i think you are going down the right track, but it's too premature to comment on that. but clearly, we have a product and a category that is flexible enough and applicable enough
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outside starbucks stores. we should leave it at that. >> all right. now, ubs, which is a good firm, has been building the neutral case. they are saying once you start analyzing, you know what, wait a second, food's not doing well. you have their numbers. you can tell me if that's not the case. >> that is unequivocally not the case. >> it's wrong. >> we are seeing almost in every market that it opens up food, we're seeing incrementally not only in core foods, but because we have food that satisfies a different need at a different time of day. flat out wrong. i'm taking it off the table. i'm not going to mention it again. a lot of people worry we solved the problem of higher coffee prices. but, are you finding there are people who bought those cards for others, this is the gift of choice that you talked about in
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december and january, are indeed buying other things than coffee? >> we have seen incrementally behind the face cards. in terms of reloads. this is a big piece. the majority of people who receive gift card, aren't everyday starbucks customers. when they get that gift card, they generally reload. >> okay, i want to ask you a question about natural and organic and you talked about some people don't really care, that's too much of a short answer, tell us how important that people find natural and organic? >> i think for so much -- here's the issue, starbucks has to be in the business of selling indulgent products as well as natural products, it's a fine balance and it can be fragile. the irony of the situation, when we have taken the step to bring highly natural products or gluten-free products to the store, more often than not, not always, they haven't sold.
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we're in business to satisfy our customers. >> when i think of starbucks five years from now, would i consider it be in the aisles of grocery stores or second? >> our core business will retail, multiple formats in addition to starbucks and i think the starbucks store footprint will be larger in scale than most people understand. >> you have given a lot to chew on. thank you, howard schultz. thank you for being so gracious to let our crew come in to do the show. >> thank you. coming up -- timeless fashion? founded from the spoilers of the gold rush. nordstroms has grown to more than 250 stores across the
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country. the new concepts in technology helped retailer continue its growth into the next century. cramer has an exclusive with its ceo, blake nordstrom. [ male announcer ] meet jill. she thought she'd feel better after seeing her doctor. and she might have if not for kari, the identity thief who stole jill's social security number to open credit cards, destroying jill's credit and her dream of retirement. every year, millions of americans just like you
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learn that a little personal information in the wrong hands could wreak havoc on your life. this is identity theft. and no one helps stop it better than lifelock. lifelock offers the most comprehensive identity theft protection available. if jill had lifelock's protection, she may have been notified before it was too late. lifelock's credit notification service is on the job 24/7. as soon as they detect a threat to your identity within their network, they will alert you, protecting you before the damage is done. and lifelock offers the proactive protection of checking and savings account takeover alerts. lifelock's comprehensive identity theft protection guards your social security number, your money, your credit, even the equity in your home. it doesn't matter how old you are or how much money you have. identity thieves steal from everyone. you have to protect yourself. i protect myself with lifelock. [ male announcer ] while identity theft can't be completely stopped, no one protects you better than lifelock.
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and lifelock stands behind their protection with the power of their $1 million service guarantee. you have so much to protect and nothing to lose when you call lifelock right now and try 60 days of identity theft protection risk free. 60 days risk free. use promo code onguard. order now and get this document shredder to keep sensitive documents out of the wrong hands. a $29 value free. ♪ ♪
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while we're at seattle, we're going to try to get a read on many industries as possible, we're sitting down with nordstrom, jwen, the high-end retailer, if the weather can take off. they don't a lot of tv. to be able to talk to the ceo blake nordstrom. thank you for having me in your town. >> thank you. welcome to seattle, jim. >> you're the service department store, but there's so much more happening at nordstrom than just a department store. can you give the future of the company, what it will look like three years from now, from what our parents thought about nordstrom? >> i don't know if anyone has that kind of crystal ball to accurately portray the future. we want our strategy grounded in the customer. the closer we get to customer, the clearer it gets about our strategy and how we should be spending our time and the shareholder money. there's talk of omni channel. we have an e-commerce perk, an rack business and this online business. the customer can shop on their terms, the customer views it as
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one channel. >> there's a conundrum, you're $11 billion market gap, you have the best full-service department store and it's adding units. you have what recognizes the fastest dot.com, the fastest off-price company, the rack and you have hautelook. you're frustrating people because your spending so much money on technology. 50% of the company will be in three years? >> you summarized it well. the next five years, capital
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spending is $3.9 million. it's accelerating. we want to lay that groundwork and planting those seeds for the capabilities with the way the customer wants to shop. we there's a lot of work to be done. when that return is going to materialize. we're not 100% clear on some of the specific numbers for the future. we know it's imperative in front of the customer to be doing that. so, we're working hard. lot going on. it's a very dynamic and fluid time now. >> across the road is amazon, i regard amazon as the antithesis of nordstrom.
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>> jim, from the customer's point of view, lot of customers today view good service through amazon. they may not be interfacing with a live person, but the experience. we have to broaden our experience. part of that is a great website, easy to navigate, part of that is a great supply chain, being able to deliver on that. you're right, we're fortunate to have a terrific competitor right here in seattle with amazon, so we're very mindful of some of their strengths. >> okay, some other great merchants who recognize that's change is a-coming, limited. at certain point, do you have to accept the fact that in order to be able to get a higher price, rack has to stand on its own, given that's much more successful than most of the off-prices.
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>> rack is pretty innovative to our strategy. but we are trying to, whether it's retail or rack, whether or not it's e-commerce to unleash that. what their top competitors are, that top group. both e-commerce and rack, we try to benchmark ourselves against that and we're really proud of our teams. >> you certainly have exceeding the numbers. okay. future of the department store. is it relevant for young people? >> brick and mortars aren't going away and malls aren't going away. customers at the their fingertip, has the availability and as a merchant if you don't execute along that line, they're loyalty or how fragile that is, they're going to navigate to the next thing. so bricks and mortars aren't going to go away.
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our challenge is, are we current and are we relevant? do we have a compelling reason why a customer would want to shop with us? whether it's in a store, a catalog online or offguide. >> how much does it matter for all of these things that you just mentioned, you're still a family business with a family culture? >> i guess i'm biased on that. we're a public company. we became public in '71. we're trying to be the best public company we're trying to do. we're very appreciative of thousands of people before us that built a reputation that we're proud of and we've got a team that we think can really take can care of the customer and move this company forward. >> you're a 113-year-old growth company. we have a short-term glitch and the growth nordstrom, maybe being obscured by the weather,
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short-term considerations. you're about to break out on the earnings basis? >> i don't think any of us being raised in seattle could ever get away with weather as an excuse. rain. we don't get a lot of snow. but it is true, this last weather, we have never had that many stores closed. it's behind us. so, we're excited about the opportunities this spring and going forward. we got to earn that one customer at a time. >> all right, blake nordstrom, president of jwn. congratulations on what your family has accomplished. coming up -- buyers' market? zillow moved the real estate game from the streets to the websites and mobile apps, helping users to find a place to call home. find out if that foundation for growth can continue.
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while we're at seattle, we got a chance to check in one of the fast-growing, controversial company out there, zillow, the mecca of online realty company. lot of evidence that houses could be heating up, zillow has rocketed 12 bucks less than a week. can this stock keep going? go and take out its high. that's what i've been waiting for it to do. let's check with spencer, the ceo of zill low. welcome back to "mad money." >> thanks, jim. >> spencer, we have had tremendous growth here. traffic growing, 57%. at the same time, we had a fed meeting today and spent, spencer, a lot of people's perception was that rates have to go higher, impact on zillow, what would it mean? >> the 30-year fixed is 4.2%.
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a year from now, 5%. mortgage rates are definitely going up. if you take a long-term view, it's still very low. yeah, it's going to cool housing a little bit as mortgage rates go up. there's been this backlog of buyer's interest the last couple of years. >> okay, there's also a lot of talk there could be an affordability problem. a lot of people still rely on case-shiller home index. you're actually the keeper of home prices in this country, is it affordability an issue? >> home values bounced off the bottom very quickly. we're up 25% from the bottom. right now, home values are increasing about 6% year on year. so, the rate of appreciation is slowing, but it's still quite high relative to the normal 2% to 4% appreciation rate. still parts of the growing growing at 20% over the year. that's unsustainable.
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i expect those rates to mediate, for sure. >> all right, let's talk about this so-called controversy about zillow. here you've done -- you've grown much faster than the industry. you're twice as large. people feel that trulia has decided to step up their ad budget. this has to crimp your profit margins. you say, this just raises awareness for everyone in the market and the market is so big it wouldn't matter. sticking by that? >> definitely. probably the most misunderstood thing of zillow is the size of the market that we participate in. they have moved their shopping from offline to online, to the web, from the web to the smartphone, that's where we dominate and that's where the audience is. i think most of the $10 billion that agents spend on advertising moves online. >> i'm reading the research of morgan stanley, smart guy, he's done his thing, he said you and trulia are nearly identical.
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you beg to differ? >> i do. who ends up with the lion share of the audience. when one newspaper had 60% or 70% of the audience, all of the classified dollars moved to the bigger sites. >> the sticking point it doesn't matter. >> at the lower level there's a tipping point. real estate agents realize they need to advertise on the larger sites in their city. zillow is the largest site in every city in the u.s. >> you only need to be in one? >> yes. that's why our revenue is so high. >> let me ask you about an ethical conflict, there are agents who advertise, can an agent who advertises get special preference be able to move a negative review that someone who doesn't pay couldn't touch? >> no, they can't. i get a lot of angry e-mails from agents. that's the rule of the game.
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we have over 500,000 reviews of agents, not all of them are good. that's okay. we empower the consumer with information. >> the lender advertises goes with your new lender. >> be a better lender you won't get a bad review. >> okay, let's say, i look at it, i want people to understand the negatives because this is what people short. if you want to take on the shorts, other people say, listen the better way to get leads for agents is through google. that has the highest. how do you explain they have 11.4 lead versus your 8.3. >> for a to advertise on google, it drives you to website. most real estate at thes have to advertise on home sites. we have home shoppers on mobile as well as desktop. two-thirds of our audience is
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now on mobile. >> one of the things that i saw, the bang for the buck is extraordinary. >> most real estate agents, if they spend $1,000 advertising with us, they earn 1,000 commission. it's a very significant roi. they're more likely to buy more inventory. >> you bought a company called street easy, lot of people felt, wait a second, zillow doesn't work in new york, you answered a lot of reservations when you bought streetez. >> i'm a new yorker as well. zillow was the largest real estate site besides new york. >> very smart.
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>> we're taking it to mobile. street ez has an opportunity to do better across all platform. >> one last question, you broke some news today about your preapproval situation. >> so, zillow mortgage marketplace launched the first product, you can get preapproved for a loan instantously for free without talking to a lender. you need to be preapproved. >> thank you, spencer rascoff the ceo of zillow. letter "z." you see why they're the winner. stick with cramer. coming up -- healthy look? seattle genetics has put cancer squarely in the sights of its technology.
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will this breakthrough science compel its stock higher? [ male announcer ] meet jill. she thought she'd feel better after seeing her doctor. and she might have if not for kari, the identity thief who stole jill's social security number to open credit cards, destroying jill's credit and her dream of retirement. every year, millions of americans just like you learn that a little personal information in the wrong hands could wreak havoc on your life. this is identity theft. and no one helps stop it better than lifelock.
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lifelock offers the most comprehensive identity theft protection available. if jill had lifelock's protection, she may have been notified before it was too late. lifelock's credit notification service is on the job 24/7. as soon as they detect a threat to your identity within their network, they will alert you, protecting you before the damage is done. and lifelock offers the proactive protection of checking and savings account takeover alerts. lifelock's comprehensive identity theft protection guards your social security number, your money, your credit, even the equity in your home. it doesn't matter how old you are or how much money you have. identity thieves steal from everyone. you have to protect yourself. i protect myself with lifelock. [ male announcer ] while identity theft can't be completely stopped, no one protects you better than lifelock. and lifelock stands behind their protection with the power of their $1 million service guarantee. you have so much to protect and nothing to lose when you call lifelock right now
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and try 60 days of identity theft protection risk free. 60 days risk free. use promo code onguard. order now and get this document shredder to keep sensitive documents out of the wrong hands. a $29 value free. ♪ ♪
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lately we have seen a lot of action in the smaller develop stage biotechs, if you want to an investable biotech company, how about seattle genetics. sgen. here is a company that creates products that can basically search and destroy cancer cells without harming healthy tissue. a big improvement over chemotherapy. one drug on the market and the company has an amazing pipeline, including a lot of late-stage drugs. let's take a closer look with the chairman/president/ceo of seattle genetics. we talked a lot about the sectors, about what's selling now, drug companies, strictly biotechs don't trade on that, what they do is they trade on the pipeline. i haven't spoken to you about how really broad it is. you have the floor.
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>> we have a number of drugs in clinical trials. let me speak to three of them that i'm really excited about. we have a drug that targets leukemia and lymphoma. complete remission in patients. it's early. it's an early clinical trial, but it's escalating. it's certainly a drug that has antitumor activity. the second drug is the drug targeted to the worst type of lieu could he keep ya called acute myeloid leukemia. we're in clinical trials. so that's a drug that we'll put out data later this year. the third drug in the pipeline is for breast cancer, it targets liv-1. 90% of woman with breast cancer, it's an exciting drug that we're investing in, all three of these are in clinical trials. >> i went on your website, there was a trial that began for this
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breast cancer drug, i like to present information, that's still open for people if they want to be in on the trial. >> it is. it's a phase one, we're still working on the doses and upping the doses to do larger trials. >> you mentioned this other trial that it seems, it could be so promising, why not open it? i know you're talking about it's been on for three years, maybe at the end of the year, opening, if it's so good why not open it now? >> we have a lot of different trials with different drugs. we expand trials all the time. we're a patient-focus company. we're working to help cancer patients. >> again, one of the things that occurs to me, how do you get people to be in your trials when a lot of what you do is for people who are about to die? >> yeah, that's the nature of trials, the nature of clinical trials and cancer, these are patients what's conventional
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first and haven't responded. or responded briefly and then relapsed for a company developing clinical cancer products, we need those patients to sign up for these trials and it's a really good relationship there. >> doctor, i'm sure there are instances where you believe an idea for taking it for a relapse while good, could be a good first line, how does it work that someone says, you know what, this is really good for relapse, i wish i could give it a shot, that's a good idea, how does that process happens? >> we have shown and approved for two different diseases. in relapsed patients. we have gone ahead and tested it in front-line patients in a combination and we have seen
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very high efficacy. now, we have two front-line trials designed and they're acuring patients for t-cell lymphoma that haven't been redefined for over three decades. we're investing deeply for the patients. >> i also like, you is a pretty no vel but incredibly good way of getting paid, your company has a great balance sheet, some research, you is a possibility of 4.5 billion in potential milestone payments if everything goes right. >> we're first and foremost a drug company. we make drugs for cancer patients. sales in 2013 were greater than $250 million globally. that's our lead product and we have other products in our
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pipeline. the second part of our business we partner our technology with other companies and with that, we have received over $250 million in payments to date and a potential of over $4.5 billion in milestone payments plus royalties on top. that's the second part of our business. >> in the second half of the year, you got -- there are some approval that come in the second half of this year. >> yeah, there are a number of exciting things. one thing is very important is, we have a phased 3, unblinding later this year, sometimes, second half of the year, it's a maintenance trial in hodgkins lymphoma. docs need to know, they treat the patient and need to know, should i keep the patient on this drug? this will help. >> it's the next level, you're going to be in the top five real soon. thank you, clay.
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stay with cramer. ♪
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when money talks it comes to cramer first. what have we learned today? seattle genetics, nordstrom, zillow and starbucks. something so profound running through these four companies, you know what it is, technology. now, we expect to see brilliant technology when we speak to seattle genetics. it's biotech by nature. if seattle genetics doesn't employ the highest reaches of technology, it can't compete with the big behemoths. to me, though the real story out there is the enterprises that have become stealth
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technologists. blake nordstrom said about his family-named company it needs to stay competitive with amazon. it has to spend, spend on tech. it may not be enough to compete with them. zillow pure and simple is a technology company. it has taken the home-buying business and organize it into a customer business. how can they do this? that rationalized the business of real estate using technology. first with desktop and then with mobile. it unites buyers with sellers. finally starbucks, what can i say about starbucks? today, it's chose to emphasize tea, link up with oprah, what else did i hear out there?
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the digital and mobile are the keys to growing the retail business at a rate to keep the engine of this company going. if starbucks handles all of the business it has, most importantly the morning, it has to anticipate your order and get you out of there as fast as possible to get to the next customer. this country may run on another coffee company, but you can say that starbucks runs on technology. stealth technology. it's the secret behind many of the successful companies that you never thought needed tech to prosper. now i think they can't prosper without. stick with cramer.
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want to thank starbucks ceo howard schurlt for inviting us here. i hope you saw why it's still worth investing in america. there's also a bull market somewhere. i promise to try to find it just for you right here on "mad money." i'm jim cramer and i'll see you tomorrow. hello, everybody. good morning. i'm louisa bojesen. you're now watching "worldwide exchange." these are headlines frarnd the world. european stocks are attempting to recover from the yellen effect after a hint was a rate hike could be coming sooner than anticipated. german chancellor angela merkel threatens tougher sanctions for russia. australia releases images of objects believed to be the first credible evidence

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