tv Mad Money CNBC January 9, 2015 6:00pm-7:01pm EST
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i think they are the new news outlet for us. traders are using them essentially as a wire. i think i'm going to put that trade in my own account. >> all right. looks like our time is expired. for more "options action" check out the website. meantime don't go anywhere. "mad money" with jim cramer starts right now. make you money. i'm here to the level the playing field for all a 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 save you money. my job is not just to entertain but educate and teach you so-call me or of course tweet me at jim cramer. something has changed in 2015. oh, we have a market a market that is swinging much harder than it did last year a market
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that gains ground or sheds point in a heart beat as it did today with the dow sinking 171 points s&p falling .84% and the nasdaq declining .68% you might think we plummeted off today's labor report that huge big number, but i'll explain later, those strong numbers, it was actually terrific for stocks. i think we're trapped in the irrational world where a sharp decline in oil like we had at one point today gives scared cats a reason to. >> sell sell sell. >> stocks. >> there is where individual earnings reports can have a big market so when bed, bath and beyond and macy's and five below posted disappointing sales, it caused the retail to give up the ghost after two days of out sized gains and that spilled over the pin action to the rest of the market.
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yes, individual earnings reports are being magnified and reverberate throughout all stocks and the impact will get more powerful. so let me give you my name plan to guide you through the first week of this hallow ground. pressure is on alcoa. for several years i heard cat calls that i thought too hutch of alcoa's ceo because i pounded it in your heads to buy the stock when it was in the mid to high single digits. now, though with the stock at 16 doubles the last 16 months, i hear a lot of people climbing aboard the alcoa band wagon, come latelies if you ask me. short term because of the aluminum soft, and it is soft, this could be a tough quarter but i like the longer term direction as it makes it far
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less hostage and for more oriented toward secular growth that doesn't need economies to boom. they bought companies that make alcoa to the growth of the aircraft industry and durable yet lightweight materials able to replace steel in cars and trucks. he came up with a verb lightweighting, i mean it. let me tell you why i'm river visited by the four times a year alcoa school, it's because they put on a clinic telling you how non-residential construction packaging are doing and breaks them down by region. as i say in get rich carefully, you need a world view how the global economy is growing, a sense whether things are getting better or worse. i use the thinking to help form my world view and his words when it comes to the growth of the different business lines. monday kicks off a the jp morgan health care coverage that breaks more news and gives you more insight into this important
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sector than any event i know. we're going all in with this conference inviting many key players in the biotech, the next generation series that are making so much news and have so many big moves in the stocks moves like one agenus had today. tuesday's csx tells us about a the state of the railroad. here is another schooling which businesses are doing well and which ones not so well. to give you the earnings i want to hear whether cole shipments, that's an important line of business are dwindling given that natural gas incredibly hasn't spiked despite the cold weather that could keep utilities from switching to coal. we have that much natural gas it doesn't even jump when the whole country is in the freezer. then we also have a full day
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analyst being one of my absolute favorites and changed the whole complex of the show. monster beverage a huge beneficiary of lower gasoline prices because the products are sold in stores often affiliated with gas pumps. it traces out a phenomenal story and coca-cola owns a big chunk. i'm sure there will be plenty of buzz of any hints of a cozy relationship. i'm dreading wednesday. why? because we get two bank reports simultaneously, jp morgan and wells fargo and bank owners are prone to misinterpretation and trade when the headlines come out and people who do that are as dumb as a bag of hammers. i'm not kidding. here is my real apprehension. both banks are trading in the direction of net interest margin or nim and what they make on deposits. they don't trade on earnings or revenues, who is number one or number two and the number of loans and the dollar size of
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fees. it's this one number and the banks are having a hard time surprising on that line item because interest rates have to be much higher for them to make that much more money. instead rates are plummeting that will make it difficult for these banks to offer positive guidances. if you don't own them wait until after the report because i think some will be disappointed no matter what and yes i'm interested in buying this one if it comes down. those of you who haven't heeded my caution on oil, get ready for some real pessimism on thursday when schlumberger tells the truth on the conference calls. i seen them bring down the entire oil and gas sector with a negative outlook and with oil being slashed left and right and i don't see how schlumberger could be positive even though slob as we call it is the greatest oil company of all time and thursday brings three companies that i think are going to tell very positive stories which could counter act
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schlumberger's impact on the market and the three are intel, lennar and ppg. it's the best performing stock in the dow jones industry jell average. the ceo unsung except for me because i sing his praises all the time will emphasize the spending is done for now and the focus is trying to meet the demand for chips that go into personal computers of all shapes and sizes, high quality problem. tech acted great today. i think it can continue. intel is a buy. steward miller the ceo of lennar was worried about the industry for home buyers to give credit. fha fees may come down and consupercon consumers feeling flushed but that will lift the home industry out of recession levels because
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mortgage rates plummeted and affordability is getting better and better. i bet this group moves up on lennar. ppg reports and this looks like what nelson pelts, the activist investor, more on that later wants dupont to look like. played to ppg's strengths, coatings and paints. i bet ppg blows the numbers away because it's fuel here saving a fortune with the price of energy down. last time it report add terrific number and what happened? it got hammered and i told you to buy it. darn thing roared. i want you to get ready for a repeat situation. on friday we hear from goldman sachs. this quarter will be good because there is such a lot of volatility. remember what i said at the top? yes, it's volatile. roller costar is good for gold man, that's terrific news full disclosure once worked at a. my favorite now, sorry gold man
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is morningen stanley because i love the wealth management business and i'm not that thrilled about government intervention which is something you have a lot of when you're a broke broker house. here is the bottom line earning season is back. we need to learn. we need to be good pupils and pay attention to what the ceos are saying to get a handle on the start of 2015. fortunately, next week we got pretty darn good teachers to learn from. chris in alabama, chris? >> caller: cramer. >> yo yo. >> caller: boo-yah. >> i like that. what's up? >> caller: with gold being down lately, which one of the following gold stocks you would recommend? barrett gold preport or bhp? >> you're three for three.
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the only one i would recommend is ran gold because there is real gain but i prefer the gld. alex in florida, alex? >> caller: hey, jim. i watch the show all the time. your books are great and i appreciate what you do. >> thank you. >> caller: you told us the recent decline in gas prices will put more money in consumers pockets and benefit the retail sector. one of my favorite is five below however the stock took a beating when they lowered the guidance for the current quarter. are people over acting or time to sell? >> five below finished eight below. i thought that conference call was very confused. i thought the narrative was not a good one. it didn't make me feel like that the stock is done going down. it made me think at one time that five below ought to rein reinvent itself. it wasn't a good quarter. they got to get it together because i know them. they are better than that. guys at five below, you're better than that. earning season is back and better than ever and we'll have a lot to learn from next week.
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i'll help you get through the sea of numbers. not all stocks were in the red today, one biotech soared a monster 29%. is this just the beginning? i'll reveal and see what is next and america's job growth looked great but what is with the weak wages and what does it mean to your stocks? the heated boardroom brawl at dupont. should you snap up the stock or stay aaway? why don't you stick with cramer. don't miss a second of "mad money." follow at jim cramer at twitter. have a question? tweet cramer, hashtag mad tweets. send jim an e-mail to mad money at cnb cdot come or give us a call at 1800-743-cnbc. miss something? head to mad money.cnb cdot come.
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than just about everybody else. >> wow, hey, take it where you can get it. that was secretary of labor thomas perez on squawk on the street. it turns out we're creating jobs in the country like mad as we saw from today's robust payroll number. 25 2,000 new hires and i think it can continue in 2015 because our country is the fastest growing economy in the whole world. for many that's unexpected but what is truly difficult to predict is when we'll get wage increases. when will you get the raise? despite the strength of the economy that has 5.6% unemployment, the number the fed hoped to reach one day, we nevertheless saw an avenue a rage hourly earnings decrease of five cents? that's astounding, people. you can throw out pretty much everything you learned in econ
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101 since wages should increase as labor pools get tighter. what could keep earnings down? fighting for jobs? remember there are millions of people out of the labor force but would love to be working. could be pressure pressure that comes from the ability of companies to move offshore if they want to. average wage in mexico is $5.50 an hour. it's $24.57 here and there is no mexican goods, could it be december stir desperation. we have such a spike in student loan debt people will work for less. professional and business services thanks rose by 52,000 workers. construction jobs increased by 48,000. food service and drinking places added 44,000 jobs and health care gained 34,000 employees. these are susceptible to the pressures i traced out but could be something else at work. something we saw for example recently in retailers like j.c. penney this week and macy's and pure one last night. the closing of unproductive
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stores with the high-paying jobs that come with them and the hiring of fewer people to man the companies with businesses, they are .coms. the internet is causing disruption where higher people are needed to do lucrative jobs and paying fulfillment positions in large part in the case of retail because of amazon and companies can't compete on goods, so they compete on price. this is a good news bad news story for you. it's a phenomenal sorry for you as an investor with the exception of those at the very top of each industry, wages don't go up as sales do. more earnings go to shareholders and more capitals returned in dif danlt dividends and buybacks. you have a federal reserve that
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wants to keep interest rates low and working hard to integrate wage-saving technology and a surplus of labor with heightened competition and technology is displacing or to put it in terms we understand, we have high growth with low inflation. even as that's precisely the opposite of what we were taught what we were taught should happen when we took economics. you know what they have to do? they have to rewrite the textbooks in this new technology driven world. the old ones don't make any sense anymore. how about we go to bob in new jersey, bob? >> caller: hi, jim. >> hi, bob, how are you? >> caller: this is bobby from new jersey. i wanted to bite rite aid since it was 4.4 -- 442. i missed that. what would be a good entry level and what point and how much upside? >> this is a good point. i'll use this by bob who lives about a mile from me to say. rite aid, we liked it every time
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it got hammered. every time it got hammered we liked it. i took a lot of heat. i've been a heat-seeking missile. you don't buy rite aid at $7.80. it just ran. this stock gives you a chance all the time. take it when you have the chance not now. or as karen cramer would say hey, it already moved. say it a little nicer, maybe. anyway today's labor report was good news bad news but for the stock market terrific and in this tech until driven world things are changing. much more "mad money" ahead. has that moved too much like rite aid? i don't know and a fierce battle for control as dupont ensames. don't miss my take and it sounds terrible but i found a bright side to those big cyber hacks.
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for election to dupont's board of directors usually held in late april and the ultimate goal is to break up the company to unlock more value. i think this is the most important proxy we've seen in ages which is why i want to dive into more. his involvement could send dupont stock higher whether or not he actually wins the proxy fight -- first background. for years dupont is trying to spin itself and focus on its more proprietary businesses. peltz has been a shareholder since august and they want to break up the company along the lines but while management has done a lot to unlock value announcing the spin off of the performance chemical division not enough for peltz as a coleman's team is created. so what exactly does he want? peltz is proposing due monthpont break
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itself into two companies focused on agriculture, health and bio sciences and the other a business that would include the performance materials, safety and protection electronics and communications businesses. peltz believes splitting the company up could cause the stock to double. >> buy buy, buy. >> in value over the next three years. bold claim. he makes a pretty compelling case, though, that duepont's structure has consistently been a drag on the company's performance and will continue to do so. peltz points to two to $4 billion in excess corporate cost and dupont doesn't feel those are excess and doesn't understand the logic but dupont is a complicated mix of businesses and it does make it difficult for management to get its head around the company and what it's doing and part of that
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is because peltz says there are layers of bureaucracy. peltz believes the capital structure is inefficient and because dupont is so complex, it gets a lower evaluation than a pure play on anything hence the desire to break into pure play growth that would be loved by the growth hounds and perhaps one day could get a take over bid and perceived mistakes the management team he thinks made over the years including the sell of the coating business in 2012 carlisle for much less than it turned out to be worth as well as what he says is the company's repeated failure to deliver on sales and earnings. on the other hand dupont has been with commodity exposure and rolled out an impressive $1 billion cost cut and announced a $5 million buy back cheered here and to be physical therapy to dupont on this coating sale to
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carlisle, look if the economy turns south and many said it would, coleman would have got the better of that deal. it didn't. still, that's apparently not enough for peltz who insists on more evaluation than he wants to push for with a board seat with three others of again, a highly qualified group he put together. i could spend all night going back and forth between the argue aments and the view the company should remain in one piece. i like both people. he's the best of the best and coleman has done much of what peltz wanted and done well but i think that whole debate misses the point of what i'm out here to talk about. what is the point? simple. the fact that peltz is launching a proxy fight tells you he's serious about the 24.4 million share position in dupont and when nelson peltz takes a position, he has an incredible track record of causing the stock to go higher. as i pointed out last year peltz is the only activist investor that i could find who makes sense to piggy back off of
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even after he's announced his position. in other words, if you bought a stock after nelson peltz disclosed that he is taking position, you have consistently outperformed the s&p 500. i've done the work people. whether he wins or loses, this situation will put a lot of pressure on management to deliver stronger results and create more value, which should be a good thing for the share price, nothing like the performance you get when you hold someone's feet to the fire is there? the scrutiny will make it better. i would have let peltz on the board to get ideas and other ceos i know that worked with him had nothing but positives to say about him and his ideas, including the former ceo of heinz whom peltz fought to get a board seat and remember the former ceo of heinz came on "mad money" said hey, jim, peltz had a good idea and had good ideas. we learned that the hedge fund
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took a stake in may of 2012 and peltz convinced them to break up or at least spin off a the security business in late 2013 and the company boosted the dividend and a buy back. the end results, up 90% since peltz disclosed the position with the 40% gain over the same period. that's impressive or consider wendys which is another stock you like where peltz got the company to sell arby's and turned the business around. since the arby's sale in 2011 wendys roared 112% crushing the 62% move in the s&p. we liked it and had a really good burger and shake. or how about heinz which gave you a 75% gain from the day peltz joined in 2006 to the day it was acquired by another player in 2013 while the s&p was up 15%? then there is leg mason, the financial firm with hard times when peltz joined in 2009
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presenting from adding more shares 111% rally, s&p 46%. the list goes on which brings me to the bottom line. regardless of how the proxy fight turns out and whether or not nelson peltz can convince shareholders to buy, you generate heat on management with some very rigorous suggests. either he gets his way and the stock sores or management fends off his attack by unlocking more value and delivering fantastic performance. for shareholders frankly, it's a win/win and if peltz fails, you're downside is quite limited by duepont's 2.6% yield. the fact the stock was down on this news may be the opportunity you need to cash in one more time on the work peltz will do or the trouble he'll make or the outcome el enhe'll engineer in one
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way or another that will be good for shareholders including potential ones like you. tom in michigan tom? >> boo-yah, jim. >> boo-yah, tom. >> i would like to thank you for all you do for the individual investors like me. >> thank you very much. get it right sometimes, don't get it right sometimes but do my best. what's up? >> okay. well i've been thinking about how lower oil prices could impact other companies other than transportation and so i was thinking about the chemical industry like plastics and what do you think of selling these? >> you got to be careful because some of the materials that these plastic companies make will be under pricing pressure because of oil. that sounds counter intuitive but that's what happens. if you want to be let's say eliminate that worry, go with ppg, go with chuck bunch they report next week. it will be a good quarter. if not, it will be surprising.
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however this dupont fight plays out, it's a win, win. much more "mad money" ahead including the silver lining to the big cyber hacks. yeah i said it. i'll tell you how breaches can help you make money and the biotech you never heard of that shot up 29% today, the real deal or too late? let's put it under the microscope so you can decide and a brand-new edition of the lightning round and a look back at the week that was. so why don't you stick with cramer?
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have you heard of the new dialing procedure for for the 415 and 628 area codes? no what is it? starting february 21, 2015 if you have a 415 or 628 number you'll need to dial... 1 plus the area code plus the phone number for all calls. okay, but what if i have a 415 number, and i'm calling a 415 number? you'll still need to dial... 1 plus the area code plus the phone number. so when in doubt, dial it out!
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sometimes the best opportunities frankly are the most counter intuitive ones that's why i will go out on a limb and tell you it's time to buy morgan stanley in the wake of the major data breach earlier this week where 350,000 the banks wealth management customers had their account record stolen by a rogue employee and 900 of those records were posted online. the stock has just been pounded and down roughly 2 bucks, 5%. you might think this data leak would be bad for business where you need to be able to trust
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your bank with all sorts of personal information. i think you would be wrong. unfortunately, this kind of cyber theft is fairly common place in the modern world and morgan stanley did a terrific job of responding catching the culprit and erasing stolen data within eight hours of the breach. what more can you ask for? it's been slammed on something. more importantly, though, we've seen this exact situation play out before and know how it ends both target and home depot had similar data breaches that affected millions. this past september after home depot confirmed the payment system had been hacked the stock fell 2.1%. came down to $87 and change later as the entire market sold off. aside from one day in mid october, home depot has never dipped below where it traded the day the hack was announced and if you bought the stock, not sold it into the news you would have a terrific 18% gain in four
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months. the lesson is clear, when you deal with a well-run company, any sell off cause bid this data breach is a reason to buy, not sell. however, maybe home depot isn't the best comparison. the home improvement space is on fire and all things financial, the well-managed morgan stanley are suffering from the massive the decline. how about lower quality example? let's consider headline grabbing data breach from target? as the details emerged a year ago, clearly 14% from january through february fell to $55 and that data breached weakness was the perfect moment to buy. it rallied to $76 and change as of today.
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this data breach is no reason to sell morgan stanley but does that mean it's worth buying? yes, yes it does. it was worth owning before you got this and i like it so much we've been buying it from a charitable trust. you can follow along. you need to be careful with the environment of ultra low interest rates but morgan stanley doesn't get the credit it deserves from wall street and if you're willing to take a long-term view which many of you are, i can see the stock traveling to $45, that would represent a 22% gain. morgan stanley is a restructuring story under the incredibly able and non-promotional ceo who took over back in 010, this company chance formed itself from being an institution focused to a much more steady global wealth management play. morgan stanley stopped doing proprietary trading and reduced the fixed income and look those were all volatile lines. those were just -- all it meant
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is morgan stanley was always going to get less credit for the profits that those lines of business produced. meanwhile, gourdman is focused on growing wealth management and turning around asset management business. it's less institutional bank with sticky assets there and generating more fees and higher reoccurring revenues and not incurring the raft of the regulators regulators. that's what i want. that's what part of the market pays up for. i expect this restructuring will allow market shair and wealth management and improve productivity and cutting cost. on the wealth management side a 13% operating cost. that would be amazing. plus, if we see any rise in interest rates from these levels and hard to go much lower, morgan stanley could rack up 2 to 3 billion in net interest income as rates normalize.
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here is the part that gets me excited. before the financial crisis morgan stanley was generating a return of equity key number brokers of 23% and the return came in at a poultry 9%. i don't see it returning to pregreat recession numbers. it should be easy to get up into the low teens that would translate into $3 per share two years from now. at the moment morgan stanley trades at 12.5 times earnings and the tangible value. as the company gets closer to the return on goals and inproofs capital which is already quite strong, i can see the stock trading up to 14 or 15 times earnings and multiply that power down the road and that's how you get to the $45 price target. makes sense. here is the bottom line. all the banks got slammed this week but morgan stanley got hit hard in the data breach the company announced on monday. as we've seen with target and home depot, the pull backs created are an opportunity to
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buy, not sell as both stocks quickly came back and you know what? i think morgan stanley will be no different. "mad money" is back after a the break. she inspires you. no question about that. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long term injury, get medical help right away
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it is time it is time for the lightning round. buy, buy, buy, sell sell sell play this sound and the lightning round is over. are you ready? it is time for the lightening round. start with randall in georgia, randall? >> caller: boo-yah, cramer. >> boo-yah. >> caller: hey my ticker is cliff natural resources clf. >> no. we're -- we don't like that. why? no offense to the guys that run it, it just happens to be a tough business. that's one of the worst businesses in the world. let's go to jewels in california jewels. >> caller: boo-yah, jim. >> boo-yah, jewels what's up? >> caller: everything is great. >> high yield like that let me tell you, that is a red flag. i think that yield is probably
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unsustainable. let's go to david in illinois david? >> jim, hey, i just got your new book get rich carefully. >> thank you. >> caller: i have to get in the game. >> yes i need you in the game. >> caller: the stock i want to know about is one oak partners. >> this is a strange one. i thought the dividend the distribution is safe here. people do not trust it. i like one oak to come on. they are a great company to make a better determination. that is an open invite. jamie in california jamie? >> caller: hi boo-yah, jim from sunny san diego. >> man beautiful place. what is up? >> caller: jim, i'm retired and bought google layering the buy between 5.03 and 5.53 today's stock is under 500. should i sell -- >> play with an open hand. for actionalertsplus.com, it got too big. can it long-term have value?
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below market multiple. that seems illogical to me but the world turned against google. wait until it gets to 450. that's where i like my cartable trust to buy stock back. a lot of people turned on this stock rightly or wrongly in control. robert in new york robert. >> caller: boo-yah. >> how are you doing? >> caller: good. auo, they broke through $6 where do you see it going? >> oh boy, you know geez, that has had such a big move. i feel if i come in here up 13% for the year i'll hurt people and say too big a move. let's go to matt in ohio matt? >> caller: hey mr. cramer boo-yah. >> what is going on? >> caller: i'm a college student and have money on the side and looking up rd --
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>> let's be careful. an oil company, my favorite it's my cartable trust but at the same time here is the problem, it is an oil company and those stocks are going lower as commodity goes lower. i'm using a $43 short term. let's go to steve in florida, steve? >> caller: jim, boo-yah. >> boo-yah steve, what is shaking? >> caller: thank you very much for taking my call and i would like to thank you for the excellent work you do for investors. >> doing my best thank you very much. >> caller: the stock ticker symbol i'm calling about is halo and you being -- >> had such a big move. it's had such a big move. again, i'm just reluctant to recommend these stocks with a very big move whether a biotech stock or med stock or whatever and that is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade.
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♪ ♪ hey, i'm cramer, love that rock music. this is like a rock star concert here of stocks. >> oh, you don't want me to wear some -- no no. >> why? >> i'm not. i'm not doing that. i'm not doing that. ♪ ♪ >> they are trying to make me look like steve balmer. >> it's a glove. all right. come on. i mean like i can wear -- do you ever see my cat sleeve? wait a second. [ laughter ] >> i just saw his sweater. [ laughter ] >> did you see this sweater? who made that for you? >> we need to talk about the
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if you want a reminder of why i'm always encouraging you to speculate in risky small cap biotech stocks with a limited piece of portfolio, look at the monster move in agenis today. it rallied 28.7% in a single session off the announcement of a partnership for kons evercancer immune know therapy. it could be worth $350 million to agen. that's why we're taking a closer look next week during the big jp morgan health care conference that again raptgenerate aston of news.
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we'll be introducing you to a bunch of new names so what do they do? the company's lead drug candidates are vaccines. they make vaccines morefective by revving up the body's immune system and some of this is hard for me to pronounce. they are working with players like merck. we talked about this last night drugs that strip cancer cells the ability to hide from your immune system like blood hounds and a platform where they are creating vaccines to produce an immune response against a given patient's cancer profile with an exciting compound that treats a type of brain cancer. have they reason up too much? this rally is just beginning. let's look with the founder and ceo of the company. welcome to "mad money."
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good to sue oweee you. congratulations on your success. just give us where you are with immuno therapy. >> the importance is the fact that we have a whole spectrum of tools in the check point field. you mention the the check point field inside because of their vision and capabilities allows us to get to the finish line quicker, better and more complete fashion. >> what happens? they read you know them or they read some of the articles about what you're doing and pick up the phone and call you? because i'm always fascinated by these deals. how does insight know what agenus is doing? >> because check points are hot and have been hot for the last three years, there isn't a shortage of inquiries to our company and inside was an early one, they are a very nimble company and want to be in this field and biologicals so they came to us. we talked to them and here we are. >> congratulations. >> thank you. >> a couple years ago i went to
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hear president bill clinton speak about the importance of curing miliaria which he said he was the most preventable disease killing millions of people. you are as close to solving the issue as many have heard. >> as you said we have a vaccine, one of the most powerful in the field called qs 21 and our vaccine is in glaxo smith klines and has been filed for regulatory approval. >> that doesn't mean you're going to take a ton of money off it right? >> it doesn't mean that at all because this product is mostly a public service product and i wouldn't be surprised if we made more money than glaxo did. >> i want to be sure people know it doesn't necessarily translate into a lot of money. i had the shingles vaccine and i
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read about yours, and it's better than the one i took? >> as you know there is no shingles vaccine except one and that one has a protection rate of 50 to 70%. >> amazing. more than that. >> that's the public number. it's really 50 to 70% depending on age, depending on how many years after vaccination. our vaccine which is the glaxo kline vaccine got published in a 16,000 patient study with a 97.2% effectiveness. >> that's much better. again, is that something that can be commercial? can make money? >> this will i think, be a blockbuster product. >> really? >> because every one out of three people will get sling lhingles in their lifetime. it's 100 million individuals in the u.s. and 260 million people in eastern europe and 55 million
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in japan. this is enormous. >> i know you as an analyst, you're not saying that oddly because i looked up you and studied with you. you taught me a great deal when i was first breaking in so i know you mean it. >> it's very humbling to hear that from you jim, but thank you very muff. yes, we mean it. this product could potentially depending on how glaxo positions it could potentially be one of the largest vaccines in the marketplace. >> excellent. again, congratulations on your success and the insight. that's the chairman and ceo of agenis. it already ran 28%. maybe you remember when the market comes down, stay with cramer. ♪ ♪ ♪ first impressions are important. you've got to make every second count.
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all right. remember my view on duepont. it's a good situation for you to be in because of the proxy fight. i'm not saying coleman has done a bad job. those who watch the show know it's the opposite. i've always said if you follow peltz after he announces, you do make money. i have never ever said coleman is doing a bad job. i just think together you're going to make good money. there is always a bull market somewhere, i'm jim cramer and i'll see you monday.
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>> the following is a cnbc original production. [ music ] >> marijuana is the most profitable illegal narcotic. >> this is a huge business. uh, in california alone, it is the number one crop. >> and there's at least 13 gardens within a mile radius of our home. >> thirteen gardens right around your house? >> mmm-hmm. >> yes. >> wow! >> thousands of growers, millions of users, and a market in the billions. >> how much money was coming in to your marijuana smuggling operations every year? >> about 50 million. >> it's a multi-billion dollar business rife with guns, gangs, and plenty of money. i'm trish regan. join me for an unprecedented look inside america's marijuana industry. [ music ]
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