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tv   Mad Money  CNBC  October 21, 2014 6:00pm-7:01pm EDT

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week. and the reverse on oil, that should all go well for the earnings. >> i'm melissa lee. thanks so much for watching. see you back here tomorrow. in the meantime, "mad money" with jim cramer starts right now. my mission is simple. to make you money. i'm here to level the playing field for all investors. there's 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 friends, i'm just trying to make you some money. my job, entertain, explain, put it in context, call me at 1-800-743-cnbc, or tweet me @jimcramer. how the heck did this market bottom? what changed that allowed us to have still one more magnificent
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day for the bulls? the dow jumping 215 points. s&p roaring 1.69%. nasdaq rocketing 2.4%. just a monster rally, obliterating the memory of the weak past. i've got a pretty simple answer about how it happened. we bought them, because we checked off every single box of my proprietary no-bottom until checklist that was needed for the derailed bull to get back on track. and we did so with record speed. that's why tonight, i want to walk you through the check lis i created eight days ago in the midst of the market's hideous decline and turmoil. a checklist that would produce an investable bottom like we have here, if the criteria were fulfilled, so you could understand the significance of what's actually happened out there and, frankly, recognize it's rationale. i set up ten concerns that had to be addressed. ten hurdles, so to speak, and told you we needed movement on all ten for this market to make a u-turn and give us a
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sustainable rally. almost instantly on twitter @jimcramer, i was bombarded, if not lambbasted by critics saying i was creating a circumstance that could never occur. people accused me of setting up a bearish wall, designed to make it clear we couldn't ever have a real rally. a straw man that was simply out of reach. but i responded i wanted to have a real bottom, where we knew you could actually own, not trade, not scalp, but own stocks and didn't need to sell them because of the bear's objections would be crushed and it wouldn't come back and bite you. if we just couldn't do that, if we'd just be back in the world of treachery, where no move could be trusted. remember, during the sell-off win repeatedly used the word treacherers to describe this market and it would only stop being treacherous when all ten boxes were checked off. that's what would end the treachery. despite the pessimists who said it was impossible, that's exactly what happened. it's why we bottomed and the
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market went from treacherous to trustworthy. let's go right to it. first box on the list, this was really important. someone on twitter was arguing with me about this earlier. and i was going to blow him out of the water, but i just muted him. that's a great feature, by the way. we need to get ebola under control. notice, i didn't say cured, just under control. go back a week ago. we had sheer panic, that was so pervasive, it enveloped the stock market can the nation as a whole. but then we got a fortuitous series of events that make us believe that ebola is indeed under control in this country and our panic may have been you ever justified. first of all, the president recognized that we were panicking and that the cdc had lost control of the situation in our eyes, so we brought in an ebola czar to ride herd over the cdc, the health care system, and even the military, to make it clear that we're not facing some steven king-style nightmare, where the war was already lost. second, we realized the disease is much less contagious than we feared. listen to me, go back to the press reports from one week ago
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today and you can find ample articles about how the old ebola had morphed into the new ebola that jumps around and is much easier to catch, but then this weekend, we figured it all out. apparently, the cdc was using the wrong protocol and health care workers who were stricken with the disease simply hadn't been properly instructed on how to avoid it. meanwhile, all the people who came in casual contact with the deceased ebola victim in dallas got an all-clear this very weekend. that's a total box check, which turned the travel, leisure, and airline stocks back on. how vital was that? remember, the other big theme out there was the huge decline in oil. so money should have been flowing from the oil-producing stocks to the gasoline-consuming ones, but ebola fears wouldn't let that happen. suddenly, though, the floodgates opened, and you've seen a monster reversal on all things retail, airline, and travel, all of which were heavily shorted, because so many skeptical hedge funds didn't believe we could get through the ebola containment gauntlet, which is exactly what happened. now, there may be more ebola
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cases in the country, but the government could actually be ready and gasoline has stayed down. check. second item, by the end of last week, i had been saying over and over again, every single group, no one can be spared in an actual bottom. every group, drugs, consumer products, utilities, and you know what, they were hit. every group had to be crushed before a bottom can form, and that's what happened. check. third, we needed the rampant speculation to be tamped down. it was a little out of control. last week's disappointment from netflix and its huge decline, the last of the big speculative stocks to crumble, checked off that box. hey, look, now all the speculative plays the mobilized, the gopros, they fear a rally, which is what's going on. which is okay. once they've been rebroken, they can regroup without risk of creating a second top. in retrospect, aside from the ebola panic, this turned out to be the most paramount, because the amazing job creating domestic energy renaissance was in actual jeopardy with the price of crude, much below $80 a
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barrel. now oil seems to have settled at precisely the level where customers get the equivalent of a tax cut and producers can still make a heck of a lot of money from drilling, which is why on a highly unusual and paradoxical event, the stocks of both the buyers and sellers of oil rallied today. didn't hurt all of those hedge funds were blown out at a certain level last wednesday. sayonara. fifth, tech needed to stabilize and it did. the tech started when this dropped dramatically. however, since then, we've had nothing but upside surprises from the likes of sky works, microron, texas instruments, and of course, apple. and so many other too numerous to mention, numerous enough, that we've been able to slough off the terrible pain emanating from one tech giant, ibm. apple reminded us it should be owned, not traded, with that phenomenal quarter that featured average selling prices for new phones. that was shocking. sixth, we needed europe to turn its economy around, probably by
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adding this horrible sanctions war with russia. we haven't gotten that yet, but we did get a recognition, perhaps more important, by germany, that it might have to do more to stimulate its own economy and that of europe, by doing some budget busting. enough officials in germany have signaled is that stimulus is coming. i think it's safe to say that the economic impact of sanctions may be blunted. that's what we wanted anyway. more ton that coming up later in the show. seventh, we needed to see some genuine raises on the earnings front and we got tons of them since i rolled out the checklist, including many from formerly down and out industrials. more on that in the show. and they're viable. eighth, the technicals, the charts, they had to stabilize. i have to admit i didn't get the comfort from technicians i would have liked during this period, but by this point, i know about the charts. we had an all-clear on this front, even if it wasn't sounded by most who practice the art of technical. we're going to be contained by the resistance, blah blah blah. it wasn't the chartist's finest hour.
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ninth, i wanted some economic stimulus in china, and while it may not yet be visible, it's happening. and not just because the gdp number that came out last night was better than expected, more importantly, the baltic freight index, after stabilizing last week made a huge jump. that's the best measure of chinese commerce and it is going positive. finally, i wanted isis contained. sure enough, right on time, the kurds with our help delivered a major defeat to this band of thugs. i wish that journalism were better over there, but i think that's the high water mark of their activities. i made up this checklist going into the worst part of the market's decline, saying all ten of these concerns had to be addressed before we could truly rally. the bottom line, the boxes were checked and that's why this market is now rallying like crazy. if it pulls back, you have to be a buyer, not a seller of companies that perform remarkably well here, which there are, if you stay tuned, some terrific ones to buy as soon as tomorrow morning. start the questions with kurt in north carolina. kurt? >> caller: hey, jim, good evening to you. >> good to see you.
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>> caller: just want to say thank you to you and the crew there at "mad money" for all the work you guys do in helping the small investors navigate the market. we really appreciate it. >> that's why i do it. i tell the ceos, come on the show, because the real investors watch us. what's up? >> caller: my question tonight is about trinity industries. if we want to be in the stock, shuld we be concerned about the recent court judgment against the company? >> i think trinity's right, it probably will be appealed. it was devastating from left field. but you know what, that stock has come down enough, and i think there'll still be fracking, still be oil shipped and notice, green barrel went up. i think trinity's okay here. it's not my favorite. i like a midstream magellan, an enterprise, i like some pipelines here and i like some of the majors. can i go to mark in florida, please, mark? >> caller: a big baa baa boo-yah, cramer. how you doing? >> good to have you on the show, partner. what's going on?
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>> caller: is it a good idea to get into this citigroup spin-off being that consumer subprime lending arm of citi? >> look, i just say own citi. i really like what corvette's done, it's a terrific job and you should be in citi. that's the best way to play it. all right. anyway, bottoms up. the market finally gives us -- it gave us the investable bottom we were looking and eagerly waiting for. give us a ton of buying opportunities that i could have never imagined from the market comes down. got to be a buyer, not a seller now. this is all bottom reached. "mad money" tonight, in the fight for the future content remains king. the companies are ascending to the throne. i've got the list. and emergency from the ebola outbreak means unprecedented fast tracking of life-saving medicine, but how far along are we? i'll give you a look. and first, it's the hidden economic story going down in china. what it means for your money. that's next. stick with cramer. don't miss a second of "mad money." follow @jimcramer on twitter.
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have a question, tweet cramer #madtweets. send jim an e-mail to madm madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. (receptionist) gunderman group. gunderman group is growing. getting in a groove. growth is gratifying. goal is to grow. gotta get greater growth. i just talked to ups. they got expert advise, special discounts, new technologies. like smart pick ups.
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they'll only show up when you print a label and it's automatic. we save time and money. time? money? time and money. awesome. awesome! awesome! awesome! awesome! (all) awesome! i love logistics.
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yes, it is easy to say the industrials are back in favor. we've got illinois tool works saying good things, united technology is putting up excellent numbers, that's on top of general electric and honeywell making positive comments about the global economy, despite the gloom that develops all multi-nationals. and don't forget the amazing comeback of ppg from a first-class bruising. that stock has gone from 176 to 195 in a heartbeat, even after it reported a quarterly that was mistakenly poo poo when it first came out because the market was ugly that day. but i do not want for one moment make you think that these big loses in the industrials is about terngs of these specific companies. this market is too broad for that and it's down from a mosaic of good perspective news.
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what is this mosaic of good perspective news? first, if herbert hoover in a pantsuit, aka, german chancellor angela merkel, actually does go along with italy and france and mario draghi from the european central bank, then i think we have something special happening here. merkel has stood in the way of a recovery in europe long enough. i believe that she will respond, if not from the pressure from the other countries or the european central bank, but to the radical right in her country. which can't be happening with these recent macro economic figures. that's who they fear there. remember, german politics is mired in history. merkel's tight-money philosophy is all about trying to avoid a hyperinflation scenario, that indid bring on the third reich. but she's also cognizant that deflation could do the same thing. it was the deflation of the great depression that allowed hitler to get elected. he did get elected. and that's what could change the equation. fear of deflation could finally
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force merkel to do the right thing and embrace stimulus. second, if merkel does blink, i think money will gravitate back to europe, as growing countries beget healthier currencies. that means the dollar could get weaker, which would be huge for the multi-nationals. and i think the idea that this could happen is resonating right here, right now, in the guidance that people are thinking about and the prospects. third, everyone knows that china is horrendous. it's a universal given. but that's usually when the people's republic becomes a good bet. i'm concerned what caterpillar will say when it reports tomorrow, as cat had made too big a bet on china, hasn't delivered of yet. however, i've been watching the baltic freight index, have you? the baltic freight index, which can help measure chinese growth, and it's been creeping up nicely with a huge 12% jump just last night. did you know, that that's the largest one-day move in four years for that index? did you hear anyone else talk about it? that matters more to me than china's just reported 7.3% gdp
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number. i think chinese's domestic consumption might be growing. let's call china not as bad as we thought. fourth, i believe there's tremendous pent-up infrastructure demand worldwide. we're beginning to see stirrings in the nonresidential construction business. something that would fly by ppg, alcoa, and honeywell, all of which soared today. nonresidential construction is the big enchilada when it comes to capital good spending, lifeblood of the industrials. finally, aerospace, which had been clobbered by the declines in the airline stocks caused by overblown fears about ebola, is now finally getting some lift. we get results from boeing tomorrow. you know what, i can't imagine a scenario when this company reports back-to-back weak quarters. we know from alcoa and honeywell, aerospace remains a growing space of the economy. which is good. air fairs are now going higher. isn't that incredible? no, when you have an oligopoly, that's what happens. it's terrific for airplane orders down the road. here's the bottom line. it's needless to say that the united states has been a source of growth for all of these
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industrial companies, for some time. but, if we get continued geopolitical lift worldwide, then these stocks, many of which have been crushed, can go higher still, making the industrials such a beaten down group going into this week. and awfully interesting place to be right now. i want to go to mimi in my home state of new jersey. mimi? >> reporter: boo-yah from the jersey shore, jim! >> i've got to get down to the shore. i'm redoing the pavement in front of my house. >> caller: been a longtime participant of your show, up to and including today. >> we're closing in on our tenth anniversary, which is like completely ridiculous. go ahead. >> caller: i need your wisdom and advice on a stock that's been on a downward spiral. if the company has a growth acceleration strategy and seems to be making accretive acquisitions, most recently, north american aircraft services, they have a share of buyback program in place, and a
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small dividend, but continue to expand their product line and services. my concern is, the military sales and the production delays. however, they report earnings on the 29th. my question, jim, is, triumph group, tgi, a buy? >> i like this, mimi. i've got to go peace on this. this is a stock that fully reflects the pullback. reminds me of a lion tech, except it's in aerospace. it went down first when bea didn't get a bid, and lockheed martin reported disappointing quartz, but lockheed martin is high, this is low. i like your idea, mimi. highest compliment, you've got horse sense. it's easy to say the industrials are back, but it's stemming from good perspective good, that's right, the future. a geopolitical lift could send these stocks higher, making them a pretty darn interesting place to be. much more "mad money" ahead, including the billion-dollar shift going down in the battle for your viewing hours. the stocks that are winning the
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fight ahead. plus, competition around the world finally seems to be beating back ebola, but does that mean it's time to circle back to the stocks that took a hit. i'm looking for opportunity in a high-quality theme park operator. and the researcher sector has hit almost every single drug to hit the market gives us the real skinny on the development of an ebola cure. stay with cramer.
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on a terrific day for the market, do you know what stocks have really roared? it's the entertainment plays. specifically, the content providers. because in this new environment, where consumers are cutting the cord on their cable boxes, since they have more and more ways to watch the same tv shows online, content is king. and if you have good content, then you have more ways than ever to make a killing in the entertainment business, because there's just so many platforms out there. hey, ipad is still doing well. it's the way that people watch the stuff. so it's no wonder that these stocks were leading the way today. that's why tonight,wear going off the charts with the help of bob lang. he's a brilliant technician, as well as being the technical start in the three-man team behind the street.com's trifecta stocks news letter, which rooks at stocks, quantitatively, fundamentally, and most important from our purposes, technically, to take a closer
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look at the run in the entertainment place that have been so smoking. so let's take a look at the daily chart of uber cramer fave, disney, which, by the way, has a cord-cutting deal with dish network, that will let you watch abc and espn online. when the market was getting hammered, disney got hammered right along with it. that is, until the stock hit a flash crash low. it really was, last wednesday. a flash crash low on wednesday. ever since then, disney has been coming back with a vengeance, including a $2 rally today. that's why i love the "star wars" in 2015. that's what you had to do. that's why we were saying, buy it right there. he likes the fact when disney was being sold, the volume is pretty moderate. you see this, it fell allot, but the volume didn't expand as much as you would think. where has, ever since it's rebound from 79 last week, the stock has been rising, rising volume. meanwhile, when you look at the moving average, convergence, divergence line or the mac-d, a momentum indicator that helps chartists predict changes in the stock's projectry, lang notes
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that a bullish crossover where the black line crosses the above the red line appears imminent and these have a tendency to be a terrific buy. that's the signal you're looking at, you're going to get it. when you look at the williams percentage r oscillator at the bottom of the chart, which is an indicator cooked up by larry williams, which tells you if a security is overbought or oversold, lang points out this oscillator has made a "w" pattern, never saw this before, and when you see a "w" pattern in the oscillator, he says it's often a precursor to higher prices. we get this, get this, it goes back to its all-time high, maybe takes it out. when you check out disney's weekly chart, you can see the stock is very much in a powerful longtime trend, and this recent pullback looks like nothing more than a very viable dip. when you look at this longer term chart, it was just another one of these, these, these, these, these. plus, importantly, lang points out that on the weekly chart,
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the williams percentage oscillator has pulled back to levels where disney stock has often bounced in the past. once again, boom, boom, boom. next up, take a gander at viacom's daily chart. here's another cord cutter that's going to allow sony to broadcast 22 of its channels in the new online tv service. in the past month, viacom has gotten crushed on fairly high volume along with the rest of the stock market, advertising volume not so good. but in the last few sessions, including today where the stock flew up $2.50, viacom has really started to rebound. lang says the selling could be over by now. the mac d is about to do a lot bullish cross over. lu lang thinks that viacom needs to spend time consolidating in the low 70s, where it can start to roar higher, because the fundamentals aren't so hot for viacom, at least for the motel. how about cbs, which has its own cord cutting offering on the way. when you take a look at the daily chart, you can see that cbs is recovering from a really, just an amazing beat down, since
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it peaked in early july. lately, the stock has been coming back with a vengeance, and lang sees strong signs of institutional buying. last week, the mac d indicator flashed a buy signal for cbs, it was perfect. look at it. man, you just follow this mac d, you would have caught the exact bottom. sees it rallying perhaps as high as its 200-day moving average, which is the red line before stalling out, that's a 9% gain. i want you in that game. then there's 21st century fox, where we'll start with the daily chart. here you can see fox recently made a double top, which is not so good, at the 35 area. since then, stock has been completely obliteraobliterated, like the others, it's begun to rebound. at the same time, the momentum indicators, like the williams percentage oscillator down at the bottom, turning positive. mac d is very close to making that kind of bullish crossover i keep talking about. how about, you know what, could be a screaming buy. let's take a look at the weekly
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chart. this is a pretty straightforward picture for lang. the weekly fox has been pretty much rangebound all year, trading between 30 and 35, 30 and 35. lang sees no reason for that to change anytime soon, which is why he would be a buyer at the lower end of the range for a trade up to 35. which is kind of like in viacom, not anything i think that's really going to be just fabulous. then there's the king. the one that david faber and i spent all the time talking about on "squawk on the street." time warner. wow. look at that. broken deal, coming back. this is helping you cut the cord in a big way, with its newly announced online only version of hbo, which got the ball rolling. lang thinks that time warren's daily chart is the best of the bunch. see that spike in the purple circle there, which suggests the big institutions are buying. they are buying it hand over fist, actually. second, we've got the mac d.
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and that's actually flashed the bulls crossed over already. it's impending in the other media stocks, the buy signal or the black line crosses the red, okay? more of that -- in this case, it's green. anyway, it still works. key here is at the $78 level is roughly a buck above where the stock is currently trading. if time warner can break out above the ceiling of resistance at 78, it will be trading into the gap. and at that point, lang sees plenty of upside ahead. and in short, time warner needs to rally up another dollar, and maybe jeff bewkes was right when he said he could get it higher than where the fox guys bid. a thing of beauty. let's look at the weekly chart of time warner, okay? once again, from a weekly perspective, we see a stock that's still on a long term uptrend. time warner recently pulled back to its 50-week moving average. using a blue line for 50-week. it's an area where the stock has bounced sharply in the past. lang thinks the uptrend is very
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much in tact here and that time warner is headed higher. stocks off the bottom since we got that bottom. last but not least, let's not forget about the ultimate cord cutter, netflix. take a gander at the daily chart for netflix. you can see how the stock totally fell off a cliff when it reported a disappointing quarter. this was a break in the speculative stocks i needed to see in my checklist. but even after its recent beheading, lang thinks there's an opportunity in netflix if you're patient enough away. he expects the stock's low from last wednesday to hold with two ceilings of resistance. lang says netflix has a lot of work to do, was it may have a bottom to build upon here, and that's something -- i don't know. i have all these other good ones. here's the bottom line, when it comes to the media stocks, content is king, which is why some have been roaring, and the charts, as interpreted by bob lang, say they can keep going higher. especially time warner, which is, indeed, his favorite.
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how about we go to sager in california. sager? zbr >> caller: hi. good morning, how are you? >> i'm real good. how are you? >> caller: good. i had a question regarding the pcn. what is the guidance regarding to you on that? >> well, priceline i think is being challenged by competition for the first time in a way that makes it so i'm not as confident. i have not been this confident as priceline as i used to be. the stock is up really big. i would say, because a lot of people were shorting it, because they figured ebola would cut back travel plans, that is not happening, and from what i can tell, the stock will go higher and i want you to sell, sell, sell into the strength. we've had a big run on priceline. bulls make money, bears make money, hogs move on. content is king. and tonight's chartist thinks that it could continue to push disney, viacom, time warner, and 21st century fox higher. sit back, relax, and enjoy the games. hang on. much more "mad money" ahead. six flags just reported after the bell and i'm checking in
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with the ceo ahead of the halloween rush to see if it could be your next great adventure. then, the ebola outbreak has put a race for the cure in the spotlight. tonight, i'll talk to the ceo of a company that transforms ideas into life-saving medications. they know where they are in the course of the cure. and your fast-fire calls are just ahead in the "lightning round." stick with cramer.
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how is six flags holding up in this treacherous and fearful environment for the consumer? six flags is the largest regional theme park operator on earth with 18 parks the throughout north america. i think all of these parks will ultimately benefit from the huge decline in the price of oil. now consumers have a lot more money in their pockets and it's much cheaper to go on a long drive to reach the company's closest theme park. the company delivered an amazing number. a 6 cent earnings beat off of a $1.50 basis, thanks to higher than expected revenue, a slight uptick in attendance, and a 6% increase in total guest spending per capita. but even better, six flags announced a 10% dividend boost, which brings its yield up to a notorious big 6%. i don't have a lot of those. their monster buyback is also important and it's one of the
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most shareholder friendly stocks around. while the stock is down slightly since we spoke to the ceo back in may of 2013, that dividend boost makes me think it could have a big boost going forward. let's check in with reid anderson, the chairman and ceo of six flags. mr. anderson, welcome back to "mad money". >> i'm glad to be back, kid. >> jim, this looks like a pretty knockout corner. i was looking for 522 million for revenues, you did 542 million. you crushed the consensus, have really good attendance. another competitor, which we like very much, cedar fair, did not deliver as good a quarter. is it weather, is it technology, is it the new rides? what made it so that people, i know thought you were going to miss the quarter, were dead wrong? >> i think we have a series of factors working in our favor that helped deliver the 7% revenue boost, 8% in ebitda, and 15% in cash eps, jim. and i think it comes can because we've got innovation in every single one of our parks,
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something new, everywhere, and a lot of those new attractions are record breakers. that combined with the value offering that we are, has meant that we've delivered literally 16 record quarters in the last 4.25 years. pretty amazing. >> why do you think that people didn't have a little more faith? you have this great record, you're in different geographic areas from your competitor, and at the same time, it's very clear that you've done this refresh. it seemed like everybody almost kind of shortened your stock ahead of the game plan here. >> well, you know that there are always doubters out there, but we've stuck to our promise, we've kept the promise that we will deliver shareholder value. we've done that through the increase in dividends, pretty much consistently, and as you said, we've taken the dividend up now to 52 cents a share per quarter. and that is an amazing 6%. and in addition, we're using any excess cash that we have to buy back shares. and between dividends and share
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buybacks, we've returned $1.4 billion to shareholders since we came out of -- since we emerged from our restructuring over four years ago. it's pretty amazing stuff. >> it is. i remember, i absolutely know that, because the previous management hemorrhaged cash. you guys are spewing cash. now, do you have a -- what, a 13% compout annual growth rate on the ebitda, and 22% on the earnings per share? >> very strong growth in earnings per share. actually, if you look at cash earnings per share, it's phenomenal. the last three years, we have averaged is close to 15%. if you go back further, it's a much higher number, but realistically, the last three years, and we've set this new goal, jim, of achieving $600 million of modified ebitda by 2017. and that has the same sort of growth rate, actually a little slower, we're assuming maybe we'll deliver about 13%. and that sets us up for a very nice dividend, sustainable,
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growing, and at the same time, it allows us to buy back shares on an ongoing basis, while, of course, investing in our parks appropriately. >> all right, jim, was there any thought given to ebola scare when you decided to boost that dividend big? did anyone say, we ought to see whether this thing dies down, or were you confident in the system and the containment, and therefore didn't come up? >> i'm absolutely confident in the system and containment, we saw no effect at all from ebola and i think our systems, if you think about medical systems across the u.s., they're brilliant and i think we will manage this very effectively. >> have you -- when you took into case the dividend, did anyone say, you know what, this gasoline price may be for year, and we are the single biggest beneficiary in america of a single gasoline price? >> it's funny you say that, jim, but you and i have talked about this before, we've debated this. even when gas prices went up and were headed towards $5 a share, we were still powering through growing attendance, growing our profitability, growing our cash, and so, i look at it and i say,
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we win either way. if the gas price drops, it's good for us. if the gas price goes up, we're very stable. this industry as a whole, you talked about the industry, but i feel great about it. it's an industry that has stable, recurring revenue. it also has a scenario where there are very high barriers to entry. so tough for someone to break in on the industry. but we, i think, i'm biased, we're so well positioned, we're in the top ten dmas, we've got amazing new product coming in, every one of the next five years. i think the company is going to do very, very well. >> well, jim, i've got to tell you, i was on a conference call with coca-cola today, conference call with mcdonald's. the consumer can't be all that challenged if they spending all that money at your theme park, can they? >> you've seen it in this quarter, the numbers you're looking at right now, we've seen an 8% increase in guest spending per cap. that's come from tickets, which we are obviously pricing up, as i described to you, on the two
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prior occasions i visited, but also in park, we see people spending about 6% more than last year. and i think that's because we have a tremendous value offering, innovative products, and people want to spend a day creating memories for themselves, their family, their friends, jim. are >> well, i include my family among them. i want to thank reid anderson, chairman and ceo of six flags, international. fabulous quarter. congratulations, sir. >> you are most welcome. and don't forget that dividend. three times the level of the s&p 500! >> it's true, it's true. and you know i love dividends. people, if you want growth and dividends, there are only a handful of companies out there. six flags has one of them. it's a good stock. "mad money" is back after this.
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it is time. it is time for the "lightning round" on cramer's "mad money." rapidfire calls, buy, buy, buy, or sell, sell, sell. when we play this sound, the "lightning round" is over. are you ready, skee-daddy. time for the "lightning round" on cramer's "mad money." let's go to trudy in new york. trudy! >> caller: mr. cramer, thank you for your show. >> quite welcome. >> caller: i would like to know if you think blackberry would be
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a good long-term investment. >> if you want a good long-term investment, let's go with apple. best of breed, average rising price for the phones, pretty good number with the pcs. very inexpensive stock with ipay. let's not outthink these things. let's go to chris in new york. >> caller: hey, worldwide boo-yah! >> nice. i like that. and it's spirited. go ahead. >> caller: mgxg, what's your call? >> i don't know it. i have not heard of that one. hmm. what can i do? sometimes i just don't know them. that's one i do not know. let's go to mark in tennessee, please. mark? >> hi, jim. >> caller: how are you? >> pretty good. >> caller: my stock is vectren. >> very hot utility company. very good. i also like dominion, very similar high-quality utility. be careful, i think that the utilities are a little bit overbought right now. let's go to jill in california.
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jill? >> cramer! hey, hey, i'm jill. should i buy more pfizer or would my money be better invested in texas instruments? >> i don't want to snub pfizer, but i like texas instruments much more than pfizer. i thought texas instruments bought back a lot of stock, a really good quarter, and doing good thing for shareholders and i don't feel that way about pfizer. mike? >> caller: boo-yah, mr. cramer. i was wondering what you think of chuck corporation. they announced earnings this week for the third quarter after a tough second quarter. >> yeah, you know what, i like chubb very much, but i've got to tell you, i felt like travelers really delivered today. sometimes companies, high-quality companies are just doing a good thing and to me, jay fishman delivered once again. congratulations to jay. dino in connecticut. dino? >> caller: hey, big boo-yah to you, jim. thanks for taking my call. >> right back at you. >> caller: hey, my question for you tonight is home depot. >> yeah, home depot, the
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co-portfolio manager of actionalertsplus.com with me, we were batting this around, do we pull the trigger? others did, they were right, goes to 100. let's go to john in california. >> caller: a halloween boo-yah! >> first halloween one we've had. >> caller: we got involved with berkshire with the ibm and coke. do you think that will affect that? >> not at all. big capital gains in both. i'm not a believer in trying to figure out what buffett's going to do. i try to figure out what i would do if i own those stocks. and i don't like ibm, i don't like coca-cola, i like pepsico and apple. coca-cola served him well for a long time, ibm has not. and that, ladies and gentlemen, is a conclusion of the "lightning round"!
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♪ the all new, head turning cadillac ats coupe. it's irresistible. ♪
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the recent ebola outbreak has shed a lot of light on the drug development process, as various drug companies have to contend with the regulations, as they rush to create a cure or a vaccine for the disease. that's why tonight i want to take a closer look at the drug development process with q-tiles. it's the largest research organization that conducts outside clinical trials for the pharmaceutical industry. i like to think of quin tiles as an arms dealer to the drug companies. they help pharma and biotech
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firms run late-stage clinical trials for drugs and vaccines. now, i've been a big backer of quin-tiles since before it became public. and it's gave you a nice gain. but we're not talking stocks for a second here. tonight, i want focus on the scientific side of the business, which is why we're talking to dr. jeffrey spader. chief medical and scientific officer of quintiles national holdings about the drug development process itself. this guy is the expert in this country, about how companies can more quickly get their therapies and vaccines to phase iii clinical trials and ultimately fda approval. dr. spader, great to have you on "mad money." >> jim, it's a pleasure to be here. thanks for having me. >> doctor, i know there's two issues here. one is that we want to cure people who have ebola or at least have symptoms, and second, we want to inoculate care workers who will therefore not get it. where do you think we are in the process the terms of time frame
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for either situation? >> well, jim, there are a couple vaccines that are being -- that are in development right now. and the world health organization, the who, is hoping that they will be able to have some phase one results from vaccine results by the end of this year, and they hope to be able to start a vaccine study in western africa, some time in early 2015. now, it really depends on how well these vaccines work, in the phase one studies. whether they are safe and whether they're tolerated. and frankly, how well they work once we get out into the field. when we do a phase ii study, we're really looking to see what type of dosing regimens seem to offer the best type of protection and the best type of efficacy and safety, and we won't know that until we actually start those phase ii studies. hopefully in early 2015. >> well, doctor, one of the things that confused me, what are we doing with the same old time frame, when we got something that is killing people like mad. i mean, don't we have like an
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emergency fastrack, like, let's take a shot -- particularly, by the way, we had him cover the other people. if you're dying of ebola, i don't want to wait until faze iii. can we jump start this thing? >> there are four types of therapies that are being investigated right now. one is the use of antibodies, then there are the small molecule drugs that try to inhibit the enzymes in the ebola virus. the third is use of modularatory r&a compounds to try to inhibit the r&a of ebola and then there are the vaccines. and to your point, exactly, about people having an acute need for this therapy right now. the regulatory agencies are very collaborative with the pharmaceutical companies right now, and they've said that they're willing to consider an accelerated approval process, if we can get the right information to demonstrate that the vaccines are safe and efficacious.
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you know, i think, jim, what we really need to focus on is collecting the right type of information that is going to give people confidence that these vaccines will work. and we don't have to go through the traditional, three phases of drug development, if these vaccines seem to have good efficacy and good safety, but we have to be able to collect at least sufficient information to demonstrate that they will provide the type of protection that is needed, and that they are safe. and so everybody, and this is one of the things that we've seen from the regulators, from the drug companies that we've been in communications, is that there is a real desire for all parties involved to really try to accelerate this process, as quickly as possible, and to get the therapies into the hands of the people who are most in need of it at this time. >> so you're telling me, this is the best you've ever seen it? you've been there for years and done this stuff. this is the quickest you've ever seen the system work? >> it is on par with what we saw with hiv, years and years ago, although with even a greater sense of urgency, i think on
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everybody's perspective. you know, jim, we were in discussions with the ceo of a company just last week, who said that he had turned around one of his research divisions to focus specifically on ebola. and to try to turn some of his scientists is and researchers, to try to identify new treatments and to try to bring them to patients as quickly as possible. so i think what we're seeing across the board is a real sense of urgency, from the pharma companies, from the biotechs, from the regulators, and importantly, from the nongovernmental organizations that have people on the ground, that are treating patients with ebola right now in western africa. >> one last question, unfortunately, we have to do it quickly. i don't like a lot of -- i don't like it when i see a lot of companies that i've never heard of. are you seeing some companies that are take advantage of this. i don't want to particularly put out any names that you would say, now, wait a second, that guy really doesn't have any -- >> i think what we've seen is that there are a lot of scientists that are really committed to what's going on. i think the companies that have a track record in developing
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drugs, who have people who have an experience in doing these types of studies, and who have had a commitment to developing vaccines in the past, especially in the underdeveloped world, are really doing the yeoman's work in trying to pull this around. and i have to say, i've just been very impressed by what they've done. >> you make me feel better and i think you make everybody who watches feel better. i know you're the expert in this. i want to thank you so much, dr. jeffrey spaeder is the chief operating officer for quintiles. there's the straight. quintiles knows the most. stick with cramer. (receptionist) gunderman group.
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gunderman group is growing. getting in a groove. growth is gratifying. goal is to grow. gotta get greater growth. i just talked to ups. they got expert advise, special discounts, new technologies. like smart pick ups. they'll only show up when you print a label and it's automatic. we save time and money. time? money? time and money. awesome. awesome! awesome! awesome! awesome! (all) awesome!
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i love logistics. lots of people doubted me in my position that melissa meyer is doing a good job at yahoo! which cnbc has a partnership with. i have said over and over again, give me another stock that has done as well under a ceo, and i, too, will embrace that one. here's what's important. great quarter after the close and they have a gigantic position in allibaba, which is now going to 100. i have to tell you that i think yahoo! is back and those who doubted yahoo! you know what?
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you just missed the yahoo! train. and that's what matters. board com with a good number after the close, too. i take heart and solace in that. i like to say, there's also a bull market somewhere and lemonis: tonight on "the profit," courage. b is a family-run clothing company with seven stores across the country, but they have stumbled badly over the past two years. lousy decisions... noemi: i never approved this design. -nicolas: you approved this. -stephanie: are you kidding? lemonis: ...and poor execution... i just see cash. ...have put the company in a deep financial hole. that's created a ton of family drama. nicolas: you want all of the accolade without doing any of the work. lemonis: if they can't figure out a way to iron out their differences, there won't be a business to fight over. stephanie: nicolas, i don't want him to walk out that door because of this. lemonis: my name is marcus lemonis, and i fix failing businesses.

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