see you back here again tomorrow at 35:00 for more "fast." meantime do not miss "mad money" t.ceo of allergan speaks to jim. >> that starts right now. 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, and i promise to help you find it. "mad money" starts now. hey, i'm cramer! welcome to "mad money." welcome to cramerica. other people want to make friend, i'm just trying to make you a little money. my job not just to entertain, educate, teach, call me, 800-743-cnbc or tweet me @jimcramer. so we catch a sell-off over the last couple of days and now the bargain hunters come in, but on the day when the dow climbed 79 points and the s&p advanced

7.3%, here's the logical question nobody ever asked. how exactly do we bargain hunt successfully? what's the secret to successful bargain hunting? well, it's actually much more simple. i hate to make thingses difficult. we just look at the best performers from the quarter that just ended. they're the logical places to go, especially since nothing's happened to change their fortunes in the last week and a half so let's get right down to it. you know what was the top quarter? it's the top performing stocks of the second quarter, it took me by surprise. i hit it up a bunch of times. williams company and that's where the symbol came from. and it's always been a strong competitor, and it's now a powerhouse, why? because it bought access midstream partners. yes, it paid up 50%, but this acquisition was incredibly added to earnings in what looked like an overpayment turned out to be totally justified. this is what it looked for,

acquirers people mlps, national partnerships and hard to imagine the stock getting hammered from here. it is down for the lowest point in six month, but i don't see it happening. williams is a buy. second best performer, newfield exploration, holy cow! you know what newfield exploration was? pretty simple. [ barking ] this long out of favor producer has been shrinking itself to become much more liquids oriented and the reason newfield is back in favor is the independent oil and gas names are actual growth companies. >> buy, buy, buy! >> with earnings increases that far outstrip all, but the fastest growing tech and biotech companies. newfield has an astounding 28% when you strip out the bad stuff and it also has assets in the rediscovered woodfield and it is a secret that i'm going to bring out over the next few weeks. scoop, the scoop shales in oklahoma.

i think the stock has much more room to run and it deserves to be added to the list of faves, e, on g, and anadarko. micron, symbol, moo. what can i say about a stock that's quintupled in the last few months and it looks like there isn't more on that nei second and micron can indeed keep rallying. i think this stock can earn five bucks to the low 30s and while it will never get a premium multiple it definitely deserves to trade at more than 6 1/2 times earnings especially since hedge funds are betting against it. why? what's the problem here? because historically every time d-ram pricing was wrong and these are the basic semiare semiconductors, they would build new factories to take advantage and the additional supply would overwhelm demand and send shares plummeting. i'm betting it won't. why? because in the past, there were ten companies duking it out in this business without many of them falling by the wayside or

gotten out of the business and ever since micron bought al beana and that's a big japanese dram producer and this has been a slap-happy oligopoly, three players, micron, two south koreans and samsung and we caught a rumor today from a trade publication that samsung might be adding capacity last year and immediately slammed micron and i think it's idle chatter. on the part of their business, flash remains in tight supply, too and meanwhile, for the first time in ages demand for personal computers has actually picked up and while history says someone in this business should blink to enact capacity, when rowe have so few players you tend to get forbearance, you know what i mean? fourth best performer? i'm not surprising, allergan, agn, a drug company has been in play ever since it caught a hostile takeover bit. i remember we recommended it hard at 80 when david pyott came

on. he's allergan's ceo. the consolidation is hot and heavy and you have to earn some in the industry if you want to beat the market even though we'd normally be selling pharmaceutical stocks now that the economy's heating up. i expect many acquisitions in this space in the next 90 days. fifth place is another takeover called pep co. it got a bid if excelon. we have way too many utilities it periodically you will hear there will be consolidation and i've been saying that since 1984. the only real consolidator is excelon and that said, i'm a huge believer that we're riding a wave of mergers and acquisitions in it country that's the biggest in history. nothing can be ruled out. the number six is vertex. >> we it's because of companies

like vertex that are working on breakthrough drugs that we do not know about, when we do make a breakthrough, their stocks can, and shoot from 66 to 93 overnight less than three weeks ago. the hep-c pill or identix after catching a takeover bid from earning in and stay tuned for a technical look at four red-hot biotechs ready for this moment that fit the pattern you need and seventh best performer, anadarko, sbc, another oil and gas play. this stock has been held by a huge pollution lawsuit and many of them have spent $10 billion over the old kerr-mcgee subsidiary and we learned that they settled for 5 billion and the stock jumped from 86 to 99 and single session has not looked back largely because buyers realize this company is right to be taken over by one of the big integrated oils and even if there's magnificent run and charitable trust owns it. number eight is sandisk, another old tech name just like micron.

we love old tech names and they've been from the tightest in the flash market and it would impact supply and this stock, 16 times next year's earnings and no bargain, but will probably exceed expectations and sandisk will vastly exceed them if the pickup proves to be reality and i like cisco up very nicely today and you see texas instruments and i like microsoft and yes, old tech is back and iron mountain. the record-keeping mountain was able to convert itself to a real estate investment trust and it passed its profits to shareholders tax-free. the story's played out. iron mountain. people didn't think it would be a reit. sell iron mountain. finally, this is a stock i like very much at this very moment. here's a company in the growth industry. beer. beer sales were up 3% last quarter and carbonated sodas up by the same amount. this is an industry with huge ongoing consolidation and anhaeuser has made no secret

that it covets miller. it would most likely make the combined company spin-off miller for molson coors and that's why the stock's rallied. next thing you know, stz, a stock that's more than tripled suns we learned they were getting the rights to sell corona and modelo because of anti-trust concerns of grupo modelo. if it's a buy on its own, but if they cannic. up miller, 73 goes to 100. here's my bottom line, the prices settle in after the last divine and recall what worked last quarter and not just the stocks, but the themes. oil and gas pipeline, production, mergers and acquisitions, new drugs, old tech. these are all very much in play and the weakness allows you to get in these themes at prices even after today's bounceback you would have killed for just ten days ago, gary in maryland. gary! >> jim, big boo-yah from

bethesda, maryland. i'm liking bethesda. that's where my cousins live. what's up? >> jim, i'm building a portfolio and the yield portion of it, i'm looking at b & g foods. what do you think? >> with my friend, buddy, pal and colleague, matt, feel better. we were thinking that bgs seems to be rolling over and i don't like to take a position in the stock that technically looks weak and we know david is doing a good job there, but we have to wait for it to settle. it's not acting. max in puerto rico. >> hi, cramer. appreciate all you do for the little guys. >> everybody is the little guy. that's the key point. bill ackman is not a little guy. i'm not trying to help him. >> ge. >> ge's killing, my friend? >> what's up? >> jeff immelt won't come on the show, maybe we could make sense of it. my charitable trust owns it and it has been killing me. jeff immelt you are always

welcome on the show. i know you can explain the strategy including his most recent acquisition and when you do, i think the stock goes higher, until then $26.36 forever! we'll get the last quarter and what worked and the pipeline, production, m and a, new tech, get in on weakness. "mad money," can allergan withstand it? i have an exclusive, pyott. can that be the beginning of a move because of an innovation of an industrial. >> today's modest rebound aside, and the market's been taking a bit of a dip and i'm taking a look at stocks that could be signaling buy. don't go anywhere. don't miss a second of "mad money." follow @jim cramer on twitter. have a question? tweet cramer. #madtweets. send jim an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc.

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companies can always reinvent themselves, but only if they have a clear vision of what they want to become and the will to do whatever's necessary to make it happen. case in point, alcoa which has been reinventing itself in a spectacular fashion. i think it's worth talking about what ceo claus kleinfeld has done here because has playbook can and must be replicated by otherec any tiffs to turn their sleeping companies into powerhouses without push from activistses or powerhouses. so how is kleinfeld turning around alcoa? and we know the turn is real as the stock's rallied 5.7% today after reporting a terrific quarter last night on top of a 40% gain just since the year began. for years alcoa has been plagued by the commodity fom of lum nim, and at the same time alcoa has lacked the you poor of

innovation and the wonder metal that has been usurped by other materials and alcoa can wait. kleinfeld is tackling both problems at the both time, and aluminum smelting by causing uncompetitive plants and locations where labor is too expensive. that's moved alcoa down the cost curve of the commodities and make the market more competitive even as kleinfeld takes down revenue numbers and listen revenue-obsessed investors and so what? it's nonsense as long as alcoa is doomed to be a second-rate company and alcoa has been a cause and lightweight multimaterial powerhouse. they have new kinds of aluminum that offers superior weight and strength characteristics that allows customers to create lighter aircraft, autos trucks and this is a huge displacement that involves kleinfeld dealing with the manufacturers at the highest level and it's all ceo to ceo and letting the procurements run the show.

almost every single market that alcoa plays in has terrific growth and nonresidential construction or most important aerospace and it is the next one that is most exciting and that's the company that doubles alcoa's engine content and almost all of the commercial planes being manufactured right now considering the backlog for these planes and it is a harder end market and kleinfeld has no respect on wall street for what he's done and it even sivered the indignity of being booted from the dow jones industrial average not that long ago. its stock's more than doubled in less than a year's team. there are lots of reports why the stock has acted superbly. some things aren't even true to the sale of power and you can't make this stuff up. the reasons alcoa's doubled are clear, because the plans that were thought to be uncloseable for political reasons and plain old creativity, making the end market product stronger and

lighter than selling it to customers who are now clamoring for the late weighting refer lugsz. that's the alcoa transformation, unfortunately for shareholders, it's just beginning. the bottom line, well done claus kleinfeld. it's a textbook case of how to make it all happen and it's downright inspirational for any business person or investor trying to figure out how to create real value right before our eyes. dave in california. dave? >> boo-yah, jim, from los angeles, california. >> all right. what's going on? >> jim, i was researching my stocks, and i just learned that the new republican leadership is opposing the reauthorization of the 80-year-old export/import bank which contributes over $1 billion over the treasury and fees and many of the best companies like boeing rely on this government agency to assist them in the financing of the exploitive goods and services overseas. if such an event actually takes place, what impact would it have on boeing and thousands of other

hardworking american companies? >> you're absolutely right, first of all and mostly a beneficiary of the smart businesses and it is boeing the one that people talk about. the financial times said 30% of boeing's business and i did the numbers this morning. here's the problem, i do genuinely believe that boeing is going to get no problem from this. i think it will be solved and i don't think the republicans will allow all of those small businesses to get hurt so badly, however, until then, boeing will be dead in the water as it was today when it opened up 1.50 and finished unchanged. buying is a buy, a buy and a buy. claus kleinfeld reinventing a company progr company. up next, the market is take being a step back from all-had time highs and i have a few stocks that are screaming highs and an all-out war is being fought on wall street. stay tuned. coming up, drug war. high-profile hedge fund manager bill ackman is agitating for an

acquisition of botox maker allergan, but this pharma play isn't playing along. is there opportunity in the tousle? find out just ahead.

in a world that's changing faster than ever, we believe outshining the competition tomorrow quires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. here's the big question, can the biotechs keep roaring now that weir in the second half of the year?

. we ought to address this right now which is why we're going off the charts with the brilliant technician at explosive options.net. as well as being the technical star in the three-man team behind the street.com's trifecta stocks newsletter which i love. specifically, we want the take on the four horseman, my favorite large cap biotech from get rich carefully. >> regeneron, celgene and gilead. these are all companies with powerful growth stories and terrific fundamentals and none of that stops the stocks from getting slammed this year. when the entire group just crushed and went totally out of wall street's fashion show style. of course, in the last couple of months these high quality biotechs rebounded with a vengeance and they took a bit of a pause the last couple of days. now we have to ask, can they continue what happened in today's session and climb to new heights.

i was shocked at how strong he thinks they are. he said any dip can represent a buying opportunity. let's count them down, starting with the daily chart of biogen idec, this is the king of treating multiple sclerosis. he's been in the solid uptrend since the stock bottomed in early may. that's quite obvious. can it keep advancing? the stock has made a series of higher highs and you know how much we like that, there and there. higher highs and has the strong floor of support, 3:16 and just a couple of points below it's currently trading and this was horrible and from 3:31 to 3:17 in just a couple of sessions. and while the stock keeps trading near these depressed levels, they have a terrific entry point right now, this could be the ideal place to buy and this stock is still about 40 points off its high and once the stock is able to break out past the recent ceiling of resistance

at 334, just 14 points above where it is now, lang believes it could be smooth sailing all the way to new highs. i am with lang. how about regeneron? this has been controversial and it's the stock i recommended at, well, let's see, five. where would five be, like here? i recommended it at five in the earliest days of the show. it's now at 311. for 6,000% gain? it's better than powerball. again, that was roughly over nine years and the courtesy of ilea, and the macular degeneration drug says they have a good competitor coming in the pipeline, when you look at regeneron's daily chart, you can see it's facing heavy resistancea the 315. regeneron has yet to totally recover from the thrashing it took this past spring and people were talking abouta i competitor, but lang says the volume trends have been positive here for the past couple of

weeks and the breakthrough drug to fight xema which was just mentioned positively after the bell tonight in the new england journal of medicine and that is the support that i think could ignite the stock tomorrow morning and regeneron. nevertheless, lang thinks the stock may have to log more time before it can pass through 315. i disagree. however, we do agree on one thing, once regeneron does break through the ceiling as it travels back to the old highs of 352. first regeneron needs to smash through the brick wall of 315 and kind of like the kool-aid man with the commercials. he suggests he wait for it to pull back to 300. i don't think it will happen. next up, take a look at the daily chart of gilead, undisputed master of treating hiv and it's got the newer hep-c formulation that's looking like a potential mega blockbuster and the biggest drug of all time. gilead has been one of the strongest stocks of late making

up for more than the beating it took. i'm @jimcramer on twitter and every 30 seconds i had ia question, is gill jatd dead? is gilead dead? is gilead dead? no! it was making yet another new all-time high today. this stock is infused and even though gilead has had a monster move, lang thinks it's not done going higher, why? because he sees an inverse head and shoulders in this chart. that's among the most bullish technical patterns out there, one that looks like an upside down head here being the bottom in mid-april and the great thing about the pattern by this one is that it is mathematical and precise and the bottom formed by the head and the neck line which is where this would be on the theoretically upside down person. sounds crazy and the inverse head and shoulders tomorrowation has been the most reliable pattern we've had since the

start of the show so it would be insane to ignore it. now that this pattern is complete, lang used the inverse head and shoulders pattern and it will launch gilead to perhaps 102 which would represent another 14% move from where it is and not only that, look at this moving average at the convergeience divergence and it's a powerful momentum indicator to detect changes in the stock's trajectory. in the case of gilead, it flashed a bullish crossover, oh, boy, we love that pattern. i've got to tell you something and that's where the plaque line crossed above the red one and immediately, the stocks started soaring higher and remember, this was done in advance. it's not coincidental and it is a premonition, of course, gilead has rell earned a lot in a short period of time and the oscillator and indicator famed by commodity trader larry williams measures whether the you are skooities are overbought or oversold and meaning it may have come up too far, too fast and is due for a pullback.

lang thinks the stock is overheated and he'd like to see the stock dip from 83, 84 and he thinks it would be a no brainer there. even with a dip, the chart says gilead is headed higher. the dip has to occur before i was temped to buy gilead, last, but not least, celgene, hosted big drugs in the pom line and they took celgene back and shot it. they shot it in march. my charitable trust owned it during this period and it was what i call stressful, but ever since the stock bottomed in april it's been soaring higher practically in a straight line. when you look at this percentage indicator here, you can see that celgene has been in overbought territory for the last six and a half weeks and it hasn't stopped the drug from heading higher. lang thinks it could bey headed beyond their 100. ideally they would like to see a pullback ask that pullback may never gone and we have phase 3

data like otesla, what happens? i thought the stock would be hammering because it's a drug i really care for. it dips 3.5% in pre-market trading and dipped back to where lang said he liked it and not after that and celgene ends up at $1.80. charitable trust, we took profits in the trust right here, well, you know, we felt there was too much drug exposure to the fun, but the stock is confounding anyone who is doubting its pipeline or its earnings power and here is the bottom line, indicating the four horse mern, of celgene, still has a left uped and and he can buy some of them, and the celgene, these stocks are so strong they should remain strong for many months to come. mike in texas, mike! >> hi, jim, good to talk to you. yeah, i bought that

bristol-myers and they downgraded it. . >> bristol-myers has been a couple of member cuts. why? people feel $14 billion in cancer sales will be coming around $12 million. i want to use this opportunity to buy bristol-myers. i think it's fine. let's go to ethel in massachusetts. >> hi. >> ethel? >> hi, jim. ? ethel, how are you? >> pretty good for an old lady. >> all right. good day. my dad's 92 today, so you know what? good day for older people. all right. >> okay. i'm interested in intercept. >> you what? that chronic liver disease thing i thought it was not going stop and i think it would keep going higher and you have an opportunity to buy it on weakness. icpt works. okay, the charts are showing us symptoms of healthy profits when it comes to the biotechs, gilead and celgene can continue to roar. coming up, it's the battle over

botox! find out if there is a chance for profit in one of our favorite pharmaceuticals. plus the company's products more than 80,000 companies worldwide. hit me with your best shot, i'm answering your rapid-fire questions in the lightning round. stick with cramer! >> goal! your 16-year-old daughter

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you could even get a discount when you add a car. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance. what the heck are we supposed to do with allergan? here is an incred usual company that makes botox as well as real medicine including a big eye care business and a terrific migraine treatment and at the end of april allergan caught a hostile takeover bill by valiant by bill ackman. allergan has a classic rollout and they gut any unnecessary

expenses to boost their profits which includes the slashing the rnd budget and allergan is all about using the rnd budget to fuel powerful long-term growth and that's why it continues to reject the offers for the most recent cash and stock bid for $172 bucks a share. it's offering shareholders a quick and ease win and they can get their stock to go even higher based on the power of the company's long-term earnings growth. i could also easily imagine allergan to say yes from a different acquirer from a business model at a higher price. can allergan remain independent and what should you do with the stock? hear more about the situation and why he thinks getting bought by valiant is the wrong way to go? thank you for making your first public comments on our show? have a seat. >> i understand first of all, you are about to announce major restructuring that could boost shareholder value even on its own, true? >> absolutely.

we need to take a deep look, the feedback from our shareholder base is you've raised your numbers. that's great. if i look at shareholder sentiment and especially sell side analysis prior to this bid, they had a target price of $131 in our stock. today it's $179, importantly on a stand alone basis before a controlled premium. so the current offer doesn't value that, still grossly undervalued, but we heard from our investors, you need to do some more and now we're going take a deep look and see where we can do some trimming ourselves and raise the value we offer to our stockholders even further. >> how about buying another company? use all that cash that you've got and really do some great growth. as you well know, we have a very strong balance sheet, in fact, valiant wishes to use our own balance schett to buy us after they completed the acquisition of bausch & lomb last august. in fact, they were obliged to

issue a secondary offering of equity because they'd run out of credit. within the plan that we present stock holders's month ago, we generate $14 billion of additional free cash flow in the coming years and very clearly when i sat down with stockholders today they said the best thing we would like from you on our wish list is to go out and do i do a strategic acquisition that makes sense and creates more value. >> the reason i ask that is because i see a lot of drug companies taking advantage of inversions and being able to completely take their tax base. would that be something that would be of interest to you? >> what i've said and i've said this now for probably the best part of a full year, so my story has not changeda the all. >> okay. >> what i would say is our prism of looking at suitable partners, suitable acquisition assets is companies that are specialized,

in some way have differentiated technology, great connectivity with their physician and customer base and growth profile because clearly, we're a company that is an outlook of double digit revenue growth every year for the next five years to go and buy a company that would say 1% would make no sense and finally i would say obviously, the value creation has to be there and if it was aided by tax, absolute leigh, but if it wasn't, that would be okay, as well. so we're keeping our options very widely open. >> let's talk about this suitor. it's unusual and i'll read through your different presentations and some of it is directly involved with the fact that this company would basically wreck the allergan that we know. why should shareholders care? isn't it a take the money and run situation? >> obviously, we really question the sustainability of the valiant business model in its entirety. we observed what happened to

medicis when it was acquired at the end of 2012. we're beginning to see the same patterns of declining revenue growth completed last year and it would be higher for medicis, it was 35% for the costs taken up. bausch & lomb, 55% and for us they are proposing 70%, cutting rnd 90%. we personally take the view that is value destruction and not creation and of course, the reason we point to that is a very major part of the consideration that valiant has put on the table is in equity, some 60% to the total and therefore we as the board of directors need to be very concerned about what is the value of valiant's stock. >> right. >> because we are fiduciaries of allergan's stockholders money. >> bill ackman who is directly involved is saying that you have got and i'm quoting, a disabling conflict of interest which arises from the fact that you

will lose his leadership role at the company and likely his job as a result of the transaction, that that's why you're making this big push to reject this. >> the only thing i care about and i'm obliged is the creation of value for stockholders. ? okay. >> my position is kriet irrell sent. i've been doing this for 16 years and before pershing square appeared, allergan was $42 billiony so i've got enough money to put a meal on the table and, in fact, unlike so many other ceos i'm not interested in what happens to me short term. i only care about value creation for allergan's stock holders. >> let's talk about the value creation. you really believe and you're willing to say that if valiant walked away right now your stock would not plummet because of the announcements you're about to make and because of the

pipeline? >> you're correct, jim. what we've done right from the beginning is keep raising the floor, if you why like, the value of allergan is a stand alone entity and now the market is waiting to see what we will put on the table at the time that we announce our earnings which would be the next four weeks and the market will hopefully abroad and we'll see how they react to the numbers we propose. >> will customers stick with a valiant allergan? >> i think there's deep concern in the physician community. i hear it daily. in fact, for your viewers, if they're interested, look on allergan.com. there are over 500 physician letters, not solicited by us. they're absolutely impromptu expressing their feelings of anywhere between concern, dismay, anger, what does this mean for innovation, patient care and physician training in the future. and on top of that no less than

some 30 medical societies have expressed similar views on a worldwide basis. >> you were straight with us and you have tremendous credibility with our viewers. the chairman and ceo of allergan. stick around. lightning round is next. ♪ [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪

it is time -- it is time for the lightning round on cramer's mad money. rapid-fire calls -- [ indiscernible ] >> play until we hear this sound and the graphics are prepared on the fly, by the way, and -- the lightning round will be over when you hear that sound. i'm saying this because it's my dad's 92nd birthday and i want to say happy birthday, pop! are you ready, skee-daddy? it's time for the lightning round on cramer's mad mono pep let's start with carlton in california. >> boo-yah, how are you buddy? >> -- you, man! >> can i get a quick boo-yah for my son jake? >> boo-yah!

i took a hit the last couple of days, what do you think about the stock short term and then the long term? which one is it? >> which stock? solar city? i like solar city. i think that eli and moss has nine lives and we're, like, six on solar city. let's go to jer in texas. jerry! >> a mega boo-yah to you master jim. >> all right, university of texas boo-yah because we were there. >> yes. get your thoughts on pfizer, please. >> i think pfizer is fine. it's neither here nor there. i prefer johnson & johnson! how about dolly in arizona? dolly. >> hi, jim. happy birthday to your father. >> he must be very proud of you, i'll tell you. you're a lucky man. >> i'm proud of him because he was in world war irk e. what's up? >> i'm having a problem with tas taser. you tell me what's going on because i can't find out

anything. just today six to eight states bought the equipment from taser. they made $10 million in the last quarter. they are buying back their own stock. >> i have to have them on the show, dolly united states because i have to tell you, i read the same thing you did and i could not believe this has fallen so hard, so fast. >> now i'm going to jim in illinois. jim! >> jimbo, my question is on a t at&t. >> i have to think this through. i like the acquisition and they'll do fine. i do hope directv reaverages the nfl and otherwise the deal is gone. i need to go to david in new york. david! >> hi, jim. how are you? >> i'm real good. how about you? >> i'm doing well. i had some questions about gogo. have you heard of the company? >> gogo on no, no. i think it's a short squeeze. i want to stay away from gobo go, but i'm going to jenny in

california. >> hi there, jim. >> what's up? >> your most devoted fan in visalia, california. >> i covered a contract hit there in 1978, i can't believe it. second time i've heard of it. what's utsp? i bought it at 20% can you tell me what happened? >> it's a takeover candidate and i look at it as an earnings story and i want to own white wave and i think it goes higher and that, ladies and gentlemen, is the conclusion of the lightning round? chlt. >> the lightning round is sponsored by t.d. ameritrade. [ male announcer ] once, there was a man

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for those of you who are worried that the stock market may have gotten ahead of itself, for anyone who is concerned that stocks in general are too expensive and why don't you take a look at a slow, but steady grower that's much cheaper than the average stock of the s&p 500. i'm talking about the unm of

both the u.s. and the uk and it's a substantial business selling group life insurance voluntary benefits. uniup sells insurance through employers, mostly small to medium-sized companies and underwriting than most life insures. it steadily collects premiums over a long period of time and generally pays out benefits at a consistent rate. uniup has pretty much done nothing year to date and sells for nine times next year's earnings estimate and that is pretty darn cheap given that it has a growth rate and the solid consistent buyback that could retire $500 million other wo of stock this fiscal year, pretty huge given that it's a $9 billion company. could it finally be time for a company like uniup to have its day in the sun. the president of unum group to learn more about how his company is doing. welcome to "mad money".

thank you for coming on. >> thank you for having me, jim. >> most people do say i missed it. i missed it. i'm trying to understand your company, obviously, that not only says, listen, you didn't miss it, but we'll buy every share unless you take it higher and that seems to be the approach given the book value of the company. >> that's right. we think about the story and there are two pieces to it and i think you mentioned in the opening comments and we have a good set of franchises and providing a good set of protections to individuals in the workplace and we think that's a good business and if you manage it in a disciplined way it will project excess cash flow. we've shown that we take the excess cash flow and return shareholders through dividends and buybacks and we've done it consistently over the last seven or eight years. >> we'll have unum on today and geez, i don't know the dispablity with care and with long-term care which was discontinued and the

affordability and you have obamacare, who knows if they're doing well or not? it seems there's been some confusion that has hurt you over the affordable care act. >> it's been more of a revenue distraction than a risk distraction, actually, because if you think about what employers were going through, we'll figure out how to respond for health care reform and what you want to do with employees and they've helped with the clients to help them understand the new health care environment. in many respects they deferred their decisions and we've seen a turn in that. we're back to a more normalized environment and people are back to do their business and we've seen that turn quite handsomely the last couple of quarters. >> i don't think they will. obviously, we worry about things like that, like we worry about anything in the environment and there's no indication the government wants to get into this business. quite the contrary, they're technically in the business and they provide a safety net for those individuals that don't have accident or life insurance. that safety net is called social

security disability and that's there in a way for those that don't have access to the private solutions like the ones we provide. >> if anything, as you know with the the deficit issues and the problems being phased by the government, i don't think the government is looking for ways to spend more on these benefits and not only here in the u.s. >> even if it's repriced it seems there's tremendous satisfaction among the customers you have and if the small to medium-sa medium-sides businesses were formed that would be an additional pop to your business. >> absolutely upon. 70% of americans don't have disability insurance and so you look at that whole factor and you look at the fact that roughly 75% of consumers would tell you if they're out of work three months or more they'll face financial hardship and that's what creates the opportunity for our company. we have a big business in the uk and it's basically the same concept in terms of market environment and market opportunity. >> do you think some people are

worried about the long-term care business because it's really hard, for people to get those staffing people and it costs a lot of money. >> that is the issue, jim, because if you think about the capital of the company, 70% of the capital is behind the good business that we're talking about. tremendous growth and good performance and good consistency both operation alley and financially and that capital is earning a 14% to 15% on the 70% piece and we have a legacy business that's 30% of the capital is earning between a 2% or 3%. a lot of the focus is in the closed block and how is that going to perform especially in the low interest rate environment and we purchased securities to support those reserves and those liabilities and that's not helpful. the investor attention is more around what's going to happen with that block than it is with the high performance. >> if rates would go up, it would be a spur. >> i'm tired of hearing people tell me, the stocks are expensive and your stock is very inexpensive and thank you very much for coming on explaining

the story. >> thank you very much for having me. >> that's tom watkins, the president and ceo of unigroup and the presentations. if you're saying to me, everything is too expensive and here's one that's too cheap. mad money is back after the break.

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first thing's first, happy 92nd birthday, pop. allergan, did i not think it would hang up here and i thought it would drop to the 120s, david pyott convinced me that allergan will stay higher. i like to stay there's alw >> male narrator: in the culinary world, there are always innovators with new ideas and products, but turning a dream into a reality requires money-- lots of it. now they'll have a chance to get both funding and guidance from two of the industry's heaviest hitters. joe bastianich is one of the country's culinary giants. by combining great food with smart business, he's created an empire that includes 30 restaurants, 6 high-end italian markets, and 2 best-selling books. >> we're not here to teach you. we're here to make an investment, and if this was school, you'd be paying us tuition. >> narrator: tim love is a celebrity chef and master of urban western cuisine. he owns five award-winning restaurants throughout texas and has his own retail empire of rubs, sauces, and cookware. >> i'm a food guy. tell me how you make the frickin' food. >> narto