>> ie sus pen sderspendersuspenders. >> and we'll see you back here tomorrow at our new gigs. 5:00 tomorrow again for more of the show. "mad money" starts right now. my mission is simple to make you money. i'm here to level the playing field for all investors. there is always homework in summer and 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, uh-uh, i want to help make you money. i want to educate, teach, call me, tweet me at jim cramer. geez we had some just awful action today. >> the house of pain. >> first real trading day of 2015. sellers knocking down stocks of

all shapes and sizes, dow plunging 331 points, s&p plummeting 1.3%. some blame the strong dollars. others said oil got too low too quickly. in my opinion, way off the market. after a 12% gain many investors are trying to lock in some profits, and i have to ask you, after a 12% gain in the s&p, who can blame them? a fitting moment to question the silly preconsumptions that served as alibis all day for the selling we saw as we try to fathom this decline and try and figure out how to make money in the market in the coming next few weeks, if not months. the also perceptions cost you plenty in 2014. when i look at the lessons learned from last year's double digit game intense fire and ill logical thinking. let me put it this way, if you

listen to worries we heard articulated today and acted on them, you lost big money in 2014. i don't think it will be any different this year. i got ten take aways from 2014 stellar performance, but i got to share with you today on this hideous day i saw many people fleeing from the market many of these points are brutal reminders not to fall pray to the fears that you may have on a session where the dow loses more than 300 points. last year should have taught you it doesn't pay to be contrary and a benign inflation and descent growth. say it again. because this combination played out positively for me since i made my first trade in 1978 and got more pronounced since more data dependent as ben bernanke made from his mistakes the fed cared more about the data e vis

rated tons of too smart for their own good money managers that did macro analysis and thought the fed would tighten despite the lack of inflation. i suspect we'll see the same dynamic this year before i get into specifics, let me say any attempt to invest any belief that what really matters was your personal view of politics or monetary policy that cost you big time last year. i want you to pay attention to the facts in 2015, not opinions. the facts didn't lose to a stray in 2014 and won't do it no matter how often. i grossed yet when dahlllas beat detroit. let's keep that out of picking stocks, please. the first lesson of 2014, sweeping judgments lead to incorrect conclusions. how many times did it lead you astray for the morning or the

next day or next day? they were based on the carry over book from europe. they often steered you more wrong than right over the near term maybe not on a given day like today, same with the oil actions. we spend the year believing when oil goes down, it's negative for stocks like today. turned out to be positive but the oil stocks we spend a great deal of time worrying about the strong dollar and dismissed the impact on earnings and took the stocks in question anyway and the idea the fed had to raise rates every time we got robust economic data if you act on that it cost a fortune. use a positive not a negative because it lessons the competition through stocks, dividends and yet, markets sold off again today anyway. lesson number two, don't sell too soon. something i saw happen for the whole session, the whole session today. the strongest stocks at the beginning of 2014 stayed great.

retailers rallied as employment grew robust. the trick was to hold on for the ride as hard as a that is on brutal days like today. it took discipline to stay with the stocks at 50 underlying no inflation, descent growth scenario but if you stay discipline, you made a killing and if you didn't if you acted on fears, you probably sold today and good luck getting back in. lesson through, if you bet on any kind of turn around any at all from a country like china or europe or any stock, that bet typically turned out to be a mistake. this is why you don't realize you were punished far more for trying to be a hero than going with the flow. 2014, bottom fishers for suckers. most likely will be again in 015. lesson, don't buy the stocks of commodity producers. the best copper or oil or gas got slaughtered. they got slaughtered a little less. you can't buckle commodity that's in decline when china is

not growing as fast. we saw this play out in the oil patch because it doesn't matter how well run a commodity company is. it will get clubbed when crude or iron or copper come down. more later in the show. lesson five, in a low interest environment, dividends cannot protect you if there is any fear the dividend is unsafe. you weren't protected by outside yields of oil companies, instead wrecked. mass limited partnerships red flags, nothing more. safe dividends like kimberly clark or clorox had terrific returns. don't sell them just because they seem expensive. starbucks with its roast and disney with "frozen" and cvs with the decision to go away with cigarettes and costco and home depot with its .com

reinvention. as they were thrown to the wolves today and were at various times last year too. i call it opportunity. don't think of bioteches as one-trick ponies. they develop drugs far field from the franchises and that the the apockk a pock -- epoch lips. it moved up. they paid for the hepatitis c grudge. later you'll hear from isis isispharma, one that got j and j's backing worth $835 million. isis rallied more than any stock finished with a 10% gain. lesson eight, all dogs can learn new tricks and in 2014 the best reformers were the utilities, the transports chiefly the airlines. utilities benefitted from lower rates and power consumption because things are getting better.

why else would they pull away that offered big dividends but fighting price wars? the airlines changed, merged stop the price wars. these were all new tricks from decrepit dogs they would repeat from an initial stand off. activists didn't get to be the new king of pharma for nothing. the market loved it. the merger is notably now kbree created a company and the new cypress merger brought welcome consolidation and higher prices yet, the impact was under estimated by analysts, which is allowed the stocks to keep rallying. finally, lesson number ten buybacks, pay quick attention to this because the market got killed today. they do matter if they shrink the float and be along by them with them. most buybacks didn't mean much because they barely dented the supply of stock but home depot,

auto zone or travelers, another big component had lasting impact and you had to buy them into weakness like today, no matter what. here is the bottom line. if there are plenty of other lessons from 2014 but these are important and you need to stick with conventional wisdom other than being a hero and swinging for the fences. in 2014 you didn't need to be a contrir yin to make money. the trade and true paid off. even after today's selling tsunami. i bet 2015 will be no different. how about josie in california. >> caller: hi, mr. cramer. i have a question. i admire you very much. my question is do i drop win casino or stick with it? >> i am not a bull on china. i am not a bull in a china shop. i think when as great a company it is and it's down a great deal will not do much in the next few months because the numbers from

mcall were horrendous. tom? >> caller: hi jim, big boo-yah to you. >> sweet. >> caller: thank you. i'm calling about a recent ipo, a company bringing eyesight to the blind, medical devices eyes. the company founder is billionaire mann with a sound balance sheet, no doubt. right now, they are -- they have successfully done patient implants. people regaining sight and upgrades in software but 2016 promises to improve the eye slight greatly. your thoughts please? >> this is a very unseasoned small cap stock in a market that's turned virally negative. this is when you buy, sir, not eyes but bristol myers, you want a little safety too. what better time to reflect what we learned in 2014 than the first hideous trading day of

2015? the tride and true paid off. knowing what separated last year's winners from losers could be key to a profitable 2015 that nobody is thinking about. i'm talk about the stocks that dominated the dow and tech titan cisco surged 23% last year. can it do it again? i got the ceo in vegas. i'll show how technology will continue to change your life this year. plus, lower oil prices may have you licking your chops about these declines but don't miss my take before you dive back into black gold. stick with cramer.

so, how do you feel about cash back? i would not say i'm into it. but let's see where this goes. [ buzzer ] do you like to travel? i'm all about "free" travel, babe. that's what i do. [ buzzer ] balance transfers -- you up for that? well -- unh. too soon? [ female announcer ] fortunately, there's an easier way, with creditcards.com. compare hundreds of cards from every major bank and find the one that's right for you. creditcards.com. it's simple. search, compare, and apply. [ ice rattles ]

in the wake of a nasty day for the averages the worst in

months, i think we should focus on the upside not the downside. particularly as most of this decline from the velocity of the drop in oil and i am unrelentingly bullish about the direction of oil, even as the speed of the oil sell off is happening too quickly for most to fathom. still, after the dropping we need to remember what can lead under the circumstances, not focus on what can crush because that's why i think it's worth looking back at the stock market's excellence performance to see what the leaders in 2014 might have in store this year. i spent the vacation analyzing all 30 stocks, which is up about 10%? a bottom analysis where i look at every component in the dow and put together a forecast for the new year. put it all together and i think the index can amount another 10% rally for 2015. you can read about each individual component in real money.com but tonight i want to focus on the dow's best

performers because on a down day like this it's best to figure which winners are worth circling back to. let's tick them down. the top five from 2014 and where they are headed in 2014 up intel, king a miraculous 39% gain and last year intel benefitted from a definitive and entirely unexpected turn around in personal computers. one with a cut in capital and the rationization of the ill faded communication chip business. while the ceo didn't have anything to do with that rebound in personal computers, he has truly shaken up the culture of undisciplined spending and a lousy division that was a huge waste of resources. it doesn't hurt it's hasmasz sievely under estimated and so many analysts written off intel coming into last year even though it had a big yield. personal computers will only do better in 2015 and intel can beat estimates. at one point intel had a

legitimate competitor but that challenger is much more on the ropes as we enter 2015. it's a non-entity as a competitor. let's do this math and say intel earns 250 this year. the stock will finally trade at a market something it's well below now which means intel should trade up. second best performer in the dow unsung united health. up 34% and i think it's terrific run is far from over. if we believe job growth will continue with the strong pace we saw at the end of last year and we get more aggressive health insurance enrollment courtesy of the affordable care act, unh could easily earn $6 for 2015 possibly more. don't forget insurance companies practically wrote the text of the affordable care act, something we didn't understand until last year. how couldn't you not give unh a higher multiple? stock trades at roughly 16 times

earnings. you must do this math. that's how i come up with a $120 price tag for united health. 20% increase over the current stock price and that's based on conservative earnings. another fabulous year. next up we have one of my personal favorites, that's home depot. at first glance it seems fully valued at that move. given it's trading more than 22 times earnings estimates but something big going on. the company buys back stock. i bet they were in there today shrinking the share account in the last seven years and retired 1/3rd of the outstanding shares that gives a big boost to the earnings. the least earnings per share. meanwhile home depot is spending a great deal on the internet offering which is producing a fantastic return but mainly this company spews crash. nevertheless, what really matters is the excellent state of you, of the consumer and a

world where i expect the price at the pump to decline and winter heating bills will be cut in half. that represents an increase in purchasing power. on top of that i don't believe the home building in this country can stay at these levels for long. we build only 1 million new homes last year, half of what we built in 2005 even though we have now more than 22 million additional citizens. i think this lower number is unsustainable given the household formation numbers and what could be record-low mortgage rates given the shocking declines we've seen of late and the level of the home building improves, that will be huge for home depot. that's why i believe wall street's earnings could turn out to be rad dickk radically low and deserves a higher price earnings because of domestic pure play nature heaven knows we need more of those. let's give it 24 types earnings. that adds up to $144 price target.

that's a monster 42% gain in short, home depot should once again be one of the best performers. fourth microsoft up 24%. hard to believe it will stay that way for long. not only does it benefit from the computer cycle from intel but has a new ceo and cfo amy hood that called for bold moves. could xbox get spun out? it's out selling the playstation. could it be a year of dividend boost or at least a higher multiple to price earnings because of the company's more cloud based orientation, maybe all three. i think microsoft can earn $3 this year. stock has a 2.6% yield, nice versus 2% return. if you give it an s&p market multiple, that would make this a $54 stock, 16.6% versus the current price. it's hard to believe cisco was the fifth best performer in the

dow. it was up 23% last year. it seems like the stock has done very little. it left with a terrific amount of hope. that says cisco needs a worldwide economic recovery even as it benefits from an awesome product cycle and lots of strong prospects, more on that later when we speak to the ceo. i think they could earn $2.30, more important the idea this high quality company deserves to trade at less than 13 times earnings, that's ridiculous. how about 15 times earnings? that makes more sense to me than the huge disparity between this company and tech and the members the s&p 500. put it together and that gives you a $33 price target. here is the bottom line. on a vicious day like today, we need to remember that there are lots of high quality companies out there with stocks that perform terrifically last year and they deserve to go higher again this year. stocks like the top five winners of the dow intel, united health, home depot, microsoft and cisco i think can help lead

the dow to a 10% gain for 2015 which is why you should buy, not sell these leaders after this hideous opening. kathleen in new york. >> caller: thank you, jim. given the downpour of the chinese economy is there a term implied if a price target is given on a stock like alibaba. >> it's a decline in huge non-residential construction. it's not necessarily a decline in consumer spending. i think consumer spending will go up nicely and remember just the rate of decline. it's just accelerating but not for the consumer. that's why i think alibaba is okay here not my favorite but i like it. i like yahoo. don't let the sea of red district you. i think they could continue to win and lead the dow to a 10% gain in 2015. much more "mad" ahead including

my exclusive with the ceo. what is on deck for the fifth best performing stock in the dow? i'll hear from the horse's mouth on all things tech. then oil fell below 50 for the first time since 2009. scary, is it finally time to buy or is this a big value? don't miss my take. isis shot up 10% today. big deal. i got the ceo. stay with cramer. hi. pete and jon najarian here in new york city outside of the nasdaq, where we bring you live daily market updates.

and today, we have a very special free gift for you. so many viewers e-mail us wanting to know our secrets on how we trade options. so we put our secrets into a new book. and if you're one of the first 250 people to call in right now and just cover shipping and handling we'll send you a copy for free. look at the rate of return we've made on some of our recent options trades versus what we would have made had we just bought the stock. there's no comparison. to make the best returns in today's market, you have to learn how to trade options. and our book will show you how to do it for free. jon has been trading options for more than 30 years. pete is one of the top 100 traders in the country. and our book will teach you how to trade options for free. so call now. [ male announcer ] call the number on your screen now for your free copy of jon and pete's new book. that's... (see the number on your screen) call now.

after today, these oil stocks maybe look a little temping to you. you can see the lust for them near the end of the day as invest tors search for stocks that seem so down and out in a moment when so many sectors had monster moves. with oil falling through $50, we hear many analysts talking about how oil could trough here and it might actually at this point be over done. there is just one problem, the earnings per share numbers. they have to come down. in fact they have to come down huge and they haven't yet, at least not much to speak of. more ratings, there are way too many buy recommendations. that's a deadly combination because it means analysts are your enemy on pretty much any advance because they can't justify their positive bias with estimates that need to be cut

and cut sharply. now we've seen real stress here in the offshore drillers where investors expect day rates to plummet and dividends to be eliminated in the highly leveraged mass limited partnerships that had to cut distributions and the collapse with stocks like sanchez, and others that are perceived as having paid too much for their properties that are over stretched, but i want to tallcall your attention to how hyped the oil patch got by revisiting a painful piece of research from morgan stanley recommending a company. it's a fracking sand play when brent crude traded $102 a barrel on august 27th this piece of research introduced the concept of the frank sand super cycle. now we always have to be wary of any analyst calling for a super cycle because it often signifies a top, that was certainly a case here because it was at $67 when this ill-faded piece was released and rallied up to $75 a

few days later and now trades at under $25. >> the house of pain. >> here is the crux of the problem, people it may seem like they have been crushed down to cheap levels but this stock was trading in the mid 20s last february when oil was at $97 a barrel. other was it under valued or incredibly over valued now with oil below 50 and i think it's the latter. why? because the morgan stanley super cycle piece from august indicated that u.s. silica like emerge energy which i told you to sell were working around the clock to alleviate a fracking sand shortage. at the same time they were ordering train cars like mad because of an intense rail car capacity issue. because those twin shortages would prolonged the alleged super cycle, morgan stanley figured the earnings could increase by 42% to 466 and rise

to $7.04. those numbers now seem impossible and the prospect of a huge over supply in sand and rail cars can't be dismissed given the drilling cut backs and a sudden spike in oil prices, the reverse leverage should play out with guybig cuts and unfortunately for shareholders in oil and gas companies, a stock is more the rule than the exception. many companies bet on higher prices into the oil top predicting tight conditions for the next several years and didn't realize they were sewing the seeds of their dim mice and a decline in demand overseas. the over supply in this country and lack after demand from the rest of the world will get worse, people, before they get better giving current drilling plans and the sinking european latin american economies. that's why i'm not at all smitten with the oil stocks at these levels or the oil despite

the declines we saw today. you have to endure too many estimate cuts to get into an uncertain promised land. cody in north carolina cody? >> caller: hey, jim, i'm 26 and i have my house paid for and no debt, but i invested heavily at 14 last summer and now it's at six. what should i do? >> yeah it would have been better -- you have pbr the stock and pbr the pats blue ribbon. it would have been better pats blue ribbon futures. pbr i don't like it. i think it can go lower with brazil going against it and oil. seems like a situation i cannot possibly recommend, maybe under five? all right. sure the oil is tempting to some at 330 today but you know what? the earnings per share numbers have to come down and i'm not smiden with these stock prices.

cisco, one of the five best performers from cybersecurity the mobile domination, a preview what is in store for 2015 and isis soared over 10% today. did you have that one? i got the exclusive. plus, all your calls are just ahead in the first lightning round of 2015. so why don't you stick with cramer? can't say thank you enough. you have made my life special by being apart of it. (everyone) cheers! glad you made it buddy. thanks for inviting me. thanks again my friends. for everything for all your help. through all life's milestones our trusted advisors are with you every step of the way. congratulations! thanks for helping me plan for my retirement. you should come celebrate with us. i'd be honored. plan for your goals with advisors you know and trust. so you can celebrate today and feel confident about tomorrow.

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on a hideous day for the bulls, it's worth circling the wagons around powerful leaders that pulled back. i'm talking about companies like cisco, the kingpin the fifth best performing stock in the dow jones average last year and i think it will continue to be a fabulous performer in 2015. cisco shifted the focus toward delivering more software focused cloud based solutions carry higher margins. the one issue is cisco typically does well when the global economye economy is roaring but the rest of the world not looking hot. still the stock is relatively cheap with a 2.8% dividend yield with a record-breaking quarter especially given the company's dominance on all things

internet. let's look at the chairman and ceo of cisco with the huge consumer electronics show in vegas. john welcome back to "mad money." >> jim, it's a pleasure to be with you again today. >> thank you, john can you give us a little preview about what you'll be saying at the giant consumer electronics show because i know your company is a star at the event. >> well jim, i think the most important issue that will be covered this year is around the things, we call it the internet of everything. it's when you digtize everything from your car to your house to the clothes you wear to your health care to the companies to the cities and countries around the world. that's about a $19 trillion opportunity for profits or cost-savings over the next decade. within that security becomes a must. you and i have talked about there is no such thing as a secure environment. a year or two ago and that turned out to be very true so the ability to bring security to that picture, then you combine

all those, what we call market transitions, the elements of cloud and software and the elements of mobility collaboration, big data et cetera and they enable encoververy company to be a key company. it's about pace of companies and the ability to operate at a much faster speed of invasion than we did before. my panel will be around getting fast invasion it will be focused on disrupt or be disrupted with the president of comcast and the ceo. >> john, you have often given forecasts that seemed wildly outrageous about the amount of day that that waswas going to be put on the internet and they have proven right. how about a the next five years? how much do you see? >> i think the market is still way too conservative jim on the loads on networks and the amount of information. about 90% plus of today's loads are video. i think you're going to see the

explosion of video. we build high-end routers now that are capable of handling literally billions of video transactions at one time. so i think, jim, this internet of everything we talked about will load networks like never before, but you'll have intelligence throughout that connecting the clouds to data centers to the wide area network to the edge. with the capability to converge compute and storage and processing capability with the network with proper security and scaleability, which plays into cisco's sweet spot. i think you'll see explosive growth and i think the impact will be five to ten times the impact of the internet to date in terms of technology and loads on networks. >> well we've known that you are aggressive in these numbers but proven to be conservative. you did have a great return to growth. you did mention service provider slow down. -off mention you mentioned two or three providers that had to scale back.

any change in that? any change that maybe spending is coming back in that one area that is so important? >>jim, if i could, let me step back and everything i talk about, the prior quarter or looking out over this next year. to answer specifically we made major organization changes how we go to market and align with service providers and where we see opportunities. that's starting to gain traction. if you look over this next year i would look for steady improvement, still challenging in terms of service provider so share of wallet spin and see if we make progress each quarter. what we also said jim, that i think you hit on effectively is we were a little more optimistic about the u.s. economy and while we clearly recognize that that point in time the concerns in europe, we felt europe was in better shape than most gave credit for. we saw head winds as it relates to service providers. what we control, we think we

organized very well to over time earn the leadership in that category and return to reasonable growth in those areas. >> john, one of your themes is cisco is more open than ever and willing to work with a lot of companies. we had her on from arrista. you're a total gentleman, it surprised me you filed the lawsuit because you're a pick up the phone guy and try to solve things. >> jim, if you watch, we are a company that is not like that in our nature. we're clearly winning in terms of our growth rate at high-end switching pulling away from start jups and they are achieving even though we're a much larger company. about once every decade we have to send a message to the market that we spend $6 million a year

on our property and rnd and that we will protect that and that you have to say that periodically when somebody does cross the boundaries on that and send a message both to them and others in the market that it is all about a invasion but invasion is not copying. i don't think anything personal on this. i just about every decade we have to remind our peers that we do invest and very much our future invasion and we will hold people accountable. >> fair enough. one thing that has not change sd you had one of the best cfos and he's retired of as last week. you got a cramer there, kelly cramer. your conference calls are the most orchestrated and you had a great duo with frank. what will we see differently? >> the exciting thing, jim, is that kelly will be the sixth cfo that i've worked with and as you said we've had six generations of cfos who play with very high integrity and very

effectiveness. i've never had one of them ever mention, jim, before by you in terms of the top five cfos that you view. i'd like to see kelly mentioned within two to three years earning that confidence from you. what you'll see kelly will do is take our company through the next generation, our about toyility to become more horizontal and service or go to market in a way that produces results for shareholders. i think like evolution, done with senior management kelly will take it up one generation and jim, i would be willing to have a side wager for a glass of beer that within three or four years she's one of your top cfos. >> fair bet. john chambers good to see you, as always john. >> jim, it's a pleasure. thank you. >> all right. this is the kind of stock with a good dividend, with great growth coming, that you want to own right through this kind of sell off. "mad money" is back after the break.

so, how do you feel about cash back? i would not say i'm into it. but let's see where this goes. [ buzzer ] do you like to travel? i'm all about "free" travel, babe. that's what i do. [ buzzer ] balance transfers -- you up for that? well -- unh. too soon? [ female announcer ] fortunately, there's an easier way, with creditcards.com. compare hundreds of cards from every major bank and find the one that's right for you. creditcards.com. it's simple. search, compare, and apply. [ ice rattles ]

before we get started, i

want to dedicate this lightning round to stuart scott. he was the organize nayigination of boo-yah. the lightning round, i take your call and tell you buy, buy, buy or sell sell sell. my staff, over the fly and we plan to hear the sound, and then the lightning round is over. are you ready, ski daddy? time for the lightning round. let's start with deb in massachusetts, deb? >> caller: hey jim, i want to let you know i'm a fan of your show and i want to say boo-yah to the folks at vaavon. i bought stock when the new ceo came on board thinking the stock would keep going up but instead it continues to decline. is it better to sell the stock and take the loss and then buy it back at a lower price? >> i think that's a little too when it's down at four. i think you have to hold it. that would be great at six, seven, five but not here.

it's too low. i think it can go to three and half but that's too clever. >> let's go to joe. >> caller: boo-yah from new jersey. >> boo-yah. stocks symbol swyr. >> got company but go with a combination cypress which has more room to go. let's go to carl in new york carl? >> caller: hi jim. first time caller. i've got a position in schlumberger, took some money off the table. when would be a good time to think about coming back into it? >> you have to let it take out the low generated during the last time oil came down, here the low is 78. it drops 75. at that price i'm tempted but remember this is the only one i'm tempted with. i think it goes lower. let's go to john in california, john? >> caller: hi, jim. happy new year to you. >> same. >> caller: how are you? >> i'll all right.

how about you? >> caller: good, bud, thanks for taking my call. i watch you, i think, every day. >> thank you. >> caller: yes. jim, my question was i own prudential buy, sell or hold? >> the shaky age of this market wait until it goes down a couple more points. i prefer travelers. travelers will be my pick. let's go to john in new york john? >> caller: hi, jim. this is john from long island new york happy new year. >> same. my stock is apple. i've heard you say don't trade apple, own apple but -- >> yeah, look, i mean apple moved up a lot. there is a lot of profit taking. it could still go down a little more but it's an inexpensive stock with good new products. i'm not going to recommend trading apple. and that ladies and gentlemen,

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after today's pacing there was actually some stocks that rallied this session. stocks like cramer faith isis far pharmaceuticals claimed on

partnership with j and j. paying $835 million over time taking any royalties into account. isis is terrific. today's news brings home the point because before this morning, frankly, i had done a lot of work in this company and i had not heard of the gi track. so many terrific opportunities hard to keep track. for those of you that don't remember, isis is in anti sense technology. medical speak by work by binding to the person's cells allowing drugs to control the expression of a given individual's genes. we spoke to the ceo and i devoted an entire segment to the anti clotting drug one of many potential block blusters which

includes isis phase three treatment. it's phase three therapy for the leading cause of that type of death worldwide. isis rallied 55% last year. today's move tells me this invasion machine could have more room to run. don't take it from me. let's check in with the founder, ceo of isis. welcome back to the show. >> that's great way to start the new year. >> okay. i did not know that you were working on auto immune disorders of the gastro intestinal track. what did they see they think they can commercialize here. >> the technology is versatile and it's efficient and highly specific and so it's an incredible tool to add to the efficiency of drug discovery. of course we do have experience in the gi tract some years ago

with the first generation drug so we do have gi experience and what is really exciting to us about this collaboration is it expands the boarders of the technology once again because this is focused now on oral administration for local treatment of gastrointestinal diseases and so that's a space that's new for the technology but it's adjacent to areas that we've worked before so we have high confidence it can work and once again, expands the breath of utility of the technology and i think that's the thing that should get people most excited, one more notch on the belt of all the different opportunities that we have to take advantage of with this technology. >> what specific illnesses are we speaking of when we speak of gastro intestinal? >> like crohn's disease and

irritable bowl syndrome and inflammatory disorders. there are diseases that are primarily manifested in the gut and new treatments are needed desperately. j and j, of course brings experience in that space with all of the other work that they have done over the years, so the idea partner that we would choose in this next step technology. >> doctor, you appointed sarah boyce as chief business operator. are you in a different phase now with isis? are you in the face with you're commercializing not what's in the lab? >> well we are evolving and in that evolution two things that we want to accomplish. the first is there is a group of drugs, in particular the drugs

constitute our lipped franchise. all three unique forming a true franchise and all having a relatively rare disease opportunity to begin with and then a much broader opportunity. so those drugs we're keeping and we're in phase three and phase two and about to go into phase two. so we're certainly keeping into phase three and we may commercialize ourselves or partner them at a later date. the goal there is to retain much more control and to of course retain a much bigger piece of the back end. so sarah brings you know although this successful business experience to conprib butte -- contribute to the business prospecterspective which is important and she'll manage a number of functions that used to report to

lynn partial and now they will report to her. tomorrow we will announce the appointment of paula who will become ceo of a newly formed subsidiary we call xcia and that subsidiary is responsible or will be responsible for the late development commercialization of the lip mid franchise. these are big steps for us. they are steps that are consistent with the design of the company, which is much more sort of configuration rather than the sort of fully integrated pharmaceutical company association and it ensures it stays focused on where the real leverage is which is basic science, technology development, drug discovery and early development. >> dr. crook once again, this is breath-taking news stock up 10% in one day and one of the worst

days. thank you for coming on to "mad money". >> appreciate it. it's good to be back. >> that's stanley crook, the chairman and ceo of isis pharmaceuticals. this stock would have been up even more if the stock weren't so horrible today.

don't worry, there will be better days ahead there is always a bull market. i'm jim crimer andamer and i'll see you tomorrow.

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