re is no one left to buy it. >> martin thanks so much. if you would like to mikeake a donation visit www.lululeo fund.org. "mad money" with jim cramer starts right now. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm trying to save you money. any job is not just to entertain you but educate and teach you. so call me. of course tweet me @jimcramer. somehow, i don't know how, this market has morphed from a lovable dog into a mercurial

cat. it's gone from being an animal that's adorable man's best friend to an animal that does whatever the heck it wants. not just a house cat. sometimes the darn thing is a tiger with a thorn in its paw. like today when the dow punched 187 points s&p tumbled 8.5% and at one point the market was town almost twice that. i say you have to get used to this genius change here because it's profound. you can train dogs. for the "today" show, matt by the way, i'm voting for wrangler. you can't herd cats. you can punish dogs and they will obey. cats, as i have learned from happy, hire, iverson, dinah, buddy, bessey flow and don julio -- a little variation in the name never hurts -- cats could care less. yes, i did have all those cats. in the end, you can make your peace with both and i'm urning you to do so tonight, even if you might get scratched or bitten in the process.

first, what happened? where did the dogs go? who let them out? okay. i think we got a little complacent at the end of 2014 but we got used to the methodical nature of stock. they barked we fed them they licked us they got happy, they slept. that's over. we're now in a ferocious moment where each day is different from the last day. and some days are unfathomable in their negativity. the darn things just don't behave the way they used to. what do i mean by that? let's deal with the cause of today's decline, lower interest rates specifically the yield in the ten-year treasury much lower than say a year ago. in the 36 years -- in the 36 years that i've been in this business, when interest rates do go down it's been good. let me tell you why. first, when interest rates go down, that stimulates business activity, which by the way is 100% good for stocks. sure enough, because of the rate drop we learned mortgage

applications leapt by 49%. that's the largest weekly gain since 2008. sorry. it matters. housing is more affordable with lower rates and for the most part houses have held their value or appreciated the last couple years. there's pent-up demand. when there's less inflation, the value of what are known as long-dated assets increases. stocks are the quintessential wrong-dated assets. when inflation ragings it damages our purchasing power, makes us less willing to pay up for paper assets that may to well over time. i may have lost some of you, but lower inflation means we're willing to pay much more for future earnings than we might otherwise might. it will happen again, eventually. positive. third, when interest rates are low, investors look for fixed income wherever they can get it so they reach for stocks with good dividends that can be bond

alternatives. it should make stocks north of 3% that can pay that dividend more attractive. positive. folks, these are all gospel. they're all what eventually happens. now, dogs dogs are trained to hunt for stocks in these circumstances that reflect the possibility of more growth in the future either through consumer spending, there's the decline in mortgage rates or business spending decline in interest rates. dogs are trained to hunt for companies that may not be making a lot of money now but could be making money in the future. and we want that earnings tree. dogs are trained to sniff out high yielders to augment fixed income. but we have no dog in this hunt. we've got cats lots of cats. we got wounded cats that can't hunt other animals. and what happens when tigers are too hurt to chase swift-footed prey? you know what they do? they turn man eater because humans are easy prey and that's what's happening right now. instead of doing what we're trained to do we're now selling

almost all the stocks of companies that benefit from lower interest rates. why? because we're convinced that rates are going this low because something is wrong. something is lurking. something unpredictable and scary could be the collapse of a bunch of major oil companies, could be a whole continent going into depression. could be a sense that economies are falling apart! what do you in do in that case? many people decide they can't take the pain. they respect beingaren't being logical. they fear house cats as if they are the man-eaters of. that doesn't mean you shouldn't sell some stocks. copper and oil producers won't do as well as last year. funny thing about portfolio managers, they're trained not to own stock where is the earnings estimates are too high trained not to earn stocks where earnings where down year over year. they don't care that the stocks are already down. they know they'll go lower still. they know, for example, exxonmobil produces oil, they know oil prices have been

cutting in half so, they sell exxon. they know schlumberger services the oil producers and will have less business so, they sell it. they know general electric made a big bet on oil and infrastructure, so they sell ge. that made sense when oil jumped $2.61 near the close of trading today but another chance to lighten up. i favor opportunistic sales of companies involved with oil. they know copper is going down with oil so they dump freeport mcbrand because that's a huge producer of copper and oil. they took on a huge amount of debt at almost the exact top of the oil market to buy a gigantic oil company. as bach would say, to sell that stock, logical. they even know to sell the banks like jpmorgan because they need higher rates to make more money and certainly they can't make as much money as last year if rates keep going lower. and they are getting lower rates. this makes sense even though the selling of jpmorgan was pretty extreme, aided and abetted by still more legal charges that

nobody i know expected. we get that. it's like a cat using a litter box. you can train them to do it. you can count on it. hmm. is that jpmorgan? nope. it's his long lost cousin, the captain! ha! ew. but let's talk about unpredictable behavior. we know stocks with good yields like the food and drug names were worth more when commodity costs were higher. but not today. they're stocks. there's a sudden revulsion to the unpredictability of all stock where is people want to get out before someone else gets out before them. by the way, that's with man-eating tigers. you don't want to be the last guy. you want to be the guy ahead of the last guy because the man-eater gets the last guy. people want to get out of restaurants and retailers as you wouldenly because we got an aggregate number today sewing retail sales were down in december. i speak to more companies than just about anybody else on earth

and their sales were all up not down. i trust my work more than i trust these big numbers from on high. people also want to sell these stocks because they think there's no way the consumer can be strong if copper is falling in price. what, buy copper? they don't even use it in the penny. 5% of the cost of a house is copper wiring. that's about it for you, partner. commodity prices are set globely. there's too much of every commodity right now because of slowtowns in china and europe. however, our country is a taker of commodities, not a seller. we are winners, not lutzers. doesn't matter. sure i get a lot of stocks have built in good numbers and people want to ring the register but don't confuse bad with good. techs and biotechs are not being valued on the future at least not today. some because they run so much. i get that. now they're coming down because people are scared to lose profits. i get that. at a certain point they'll have to use their fears to your benefit benefit. not yet but soon. there seems to be real value as

those who sold blackberry were denied by the company. i say let them all come down. it's fine. let bargains be created by panic. let people think the worst is about to happen. let people ponder in fear of about it a 356-point decline over the 17,600 basis somehow the same as a 350-point drubbing from dow 10000 or 11000. i have an idea for you. why don't you divide by ten? the dow went down 18 points today from -- big deal right? here's my bottom line. funny thing, funny thing we forgot on days like today. cats, they got nine lives. you may think the world's coming to an end because the action on your screen. me? sure. maybe one of these markets' lives is getting knocked off here. geez, though, to think this one is over even if we go down say 3% to 5% is to read it all wrong. cats have a funny habit of reappearing just when you write them off. and in the end they can amuse and enthuse if you just hang

onto them. this feline -- this feline market is no different. can i go to kathy in texas, please? kathy. >> caller: hi, jim. >> hi kathy. >> caller: i have a question. >> sure. >> caller: what is going on with netflix netflix? it has gone down quite a bit lately. should we sell our stock or hold it? >> this is a coal stock. skwun someone upgraded netflix today saying there would be 100,000 subscribers. they're buying it because they want to see "house of cards 3." they're thinking this company makes a product i like so i'll tone shares. i'm not against that but please understand that's not the way traditional security analysis works. it's a dangerous way to trade or invest. josh in texas, please. josh. >> caller: hey, big southeast texas boo-yah, jim. thanks for taking my call. >> liking that. >> caller: thank you so much. i bought boot barn at $18.68 went up to $23, back down again,

what should i do? >> well you know, it's a retailer, an unseasoned retailer. you have so many season retailers that are getting hammered. i don't know why you want to be in an unseasoned retailer but maybe you the like the products or the stores but i need to do more work than that and i need to do more on boot barn because i'm not currently a shopper there. this market went from being a lovable dog to a mercurial cat. but you know what? cats have nine lives and they amuse and enthuse to get the hang of it. for the record, i asked for a puppy and i got this. when matt lauer asked for a puppy, look what he got. "mad money" tonight, monster beverage has been absolute gusher including today up 4%. but the bulls and bears are in a fierce battle over whether to keep blowing the lid off. i'm taking a side. my series on biotech, the next generation, continues with the little-known name that trickled last year and soared today.

i'll see if it can continue. plus, people are wondering if crude's decline could finally come to a close. you won't want to miss my take, speaking of crude, stick with cramer! don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer #madtweets. send jim an e-mail to madmoney@cnbc.com. or give us a call. at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. hi. jon and pete najarian here. the popularity of options trading has skyrocketed. but we still hear from viewers every day who don't know how to profit from them. so we wrote an entire book

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sometimes when you see the kind of wholesale decline in commodities that we're seeing right now, you have to ask, is there something bigger going on? i mean can copper really just roll over like this with a gigantic couple-day decline, the most in years? can oil truly plummet 50% on a slowdown in europe and china and some overproduction in a bunch of companies? can iron just keep getting crushed? the answer is there are several larger trends that are the real reasons behind these staggering

declines and those trends are going to keep playing out so, let's go over them. first, before the recent collapse we saw phenomenal strength in all commodities thanks to an acceleration in chinese infrastructure growth. copper used to trade between a buck and a buck and a half for years and years until the early part of the new millennium when china plunged headlong into its infrastructure explosion with perhaps as many as 400 million people moving from backward rural areas to the sis. this required a large amount of copper and that demand as cooled. the great migration continues but the building for that migration is pretty much done maybe overdone done pretty much overnight. but the copper producers, they aren't done producing. they're pumping out copper as if they expect china to accelerate this year. it's not. i see copper going back to the trend line before the chinese jump-started their growth. therefore, it could easily go back to about $2 maybe less. you can't fret about this. copper is just not used that much anymore in other developed countries. we're a net importer of copper in the u.s. reports down more

than 50% in this period. in order there's no place to put this stuff. it's surplus, so the price gets crushed. that's what happens. second, many big hedge funds and pension funds diversifyied into cod xhod tis in the last decade making them an asset class. many have pulled back fearing regulatory issues post the great recession. meanwhile, the whole asset clas has been called into question. we have low inflation globally. these assets do well when there's high inflation. we have deflation. it's terrible. the big funds that played in these commodities now realize they were making a bet on china, not on an asset class. now that bet has backfired. so they're ditching the commodity asset class in droves. financial buyers are leaving the building. finally when it comes to oil we have all become used to the powder keg theory. every few months a major oil producing company would go offline. isis seemed to be a reason iraq would go offline. we were told it probably would. we thought instability in

venezuela could shut production. none of the hotspots went offline offline. meanwhile, russia needs hard currency. so there's no waipio tin will caught off the oils a gas supply to western europe as we thought he would. here in the u.s. we've replaced imports with homegrown oil and our cars get better gas mileage than they used to. these are trends occurring in real time causing general noncyclical disruptions to the price of oil. don't forget for decades oil prices were set by a cartel opec, but that cartel is broken. its largest member saudi arabia wants oil lower, not higher, to snuff out competition from u.s. shale producers so we're seeing the real price of oil, not the phony opec engineered price that prevailed for years. e vencheventually it will be revealed as a source of domestic strength. until we're at a weird moment where good is considered bad. that will change. it always does. bottom line -- do not underestimate these three trends i just traced out. they're huge and just beginning. get used to the dislocation. get used to it.

soon they will really be locations and the locations may be a lot lower than where they are right now. jeff in california. jeff. hey, jeff. >> caller: hi. >> what's shaking? >> caller: oh this is jeff. i was trying to get some information on caterpillar. >> okay. >> caller: i think they're good long range. and my grandpa invested in them for years. he was a service manager for three caterpillar stores in oregon. and i thought it might be a good time, i need some money coming in i wanted to put it into something -- >> caterpillar is a great company, fantastic manufacture. but they're tied to oil and mining. you'll have to suffer through a bad quarter. if you can hand that will and buy with a yield of 4% i bless it but not right here.

ron in maine. >> caller: hey, jim. with oil getting killed i'm looking for a survivor in the oil patch for the next few years. i see that a hedge fund is accumulating oasis petroleum and i want to know if you think that will help my investment. >> all right. look, my charitable trust owns the best oil company there is right now, royal dutch. royal dutch sold a huge amount of assets when oil was much higher. it got a great balance sheet, a great dividend. you know what? we're getting killed on it. oasis, it ain't no oasis. the plunging commodity prices tells a bigger story. don't underestimate it. these changes are big and they ear just beginning. much more "mad" ahead, including by deep dive boo into monster beverage. it could be losing some of its fizz. but the bulls say no wear! i'll give you my take. then my series "biotech: the next generation," continues with a name you probably never heard of that more than tripled last

year. can its new compound follow in the footsteps of the best-selling drug of all time? why don't you stay with cramer.

when a stock manages to roar higher despite vicious downturns

like today, it's worth taking a look. consider monster beverage, the energy drink maker that rallied $4.6 the or 4% today. can it keep chugging its way higher? that's a question that needs answering, especially because when it comes to monster we've got a good old-fashioned analyst gunfight going on. yesterday monster got hit with a downgrade -- >> sell, sell sell! >> -- from wells fargo from outperform to market perform. but steel raised its price to 130. then today cowan jumped in on with an upgrade taking it from market perform to outperform with a $140 price target. when you're dealing with a hot stock and you have dueling analysts or in this case an actual three-way mexican standoff, it always pays to take a look at both sides of the story so you can figure out whether the bulls or the bears are right. plus these upgrades and downgrades are coming just when monster had a big investment meeting, so there could be

something afoot we don't know. regular viewers know i have been a monster fan of monster energy ever since last july back when it was trading at $67 and change. since then there have been some major developments like coca-cola taking a 16.7% stake in the company with an option to buy more and monster has given us a magnificent 73% gain. if you bought it after a hearing my comments saying i can understand not wanting to ring the register in my position that's responsible. the question is has monster exhausted its upside or do they have more room to run? should we beat with the bears at wells fargo or the bulls at steep snl it's based on a survey of retailer contacts representing tens of thousands of convenience stores. monster is about to transfer roughly half its volume to coca-cola's distribution system. reasonable now that coke owns a big chunk of the company and wells wanted to know if that would cause a disruption to moving merchandise. they tried out a bunch of quotes but that doesn't seem

scientific more anecdotal. they worry about competition from red bull but that's not convincing. trends have been improving substantially. we've heard the red bull canard for ages. the crux of wells' argument -- like the taste of monster but our stomachs are full right now based on current valuations. in other words, the analysts at wells admit monster is one of the strongest beverage companies on earth with a long-term growth trajectory, but they think the upside has been baked into the stock given it's trading 36 times earnings. in other words, this downgrade is what i call a valuation call. that i can understand. monster is not cheap but that doesn't mean it's finished going higher. how about the bull case? from steeple and cowan? unlike wells, which is worried about the distribution shift of the coca-cola system the bulls are very excited about this development. at monster's investor day, which, remember, came after the downgrade from wells, management said they don't expect any operational disruption or increased competition as they

switched to coke's distribution system in the u.s. in fact they expect better execution at the retail level thanks to helping coca-cola's bottlers. however, what really excites is bulls is monster will have access to coca-cola's global distribution platform. currently it's the best in the world, currently international represents just 22% of monster sales. company controls only 5% of the international energy drink market even though they have 37% share in the u.s. steeple says the opportunities could be enormous in latin america, especially china, huge market where monster currently has no exposure whatsoever. altogether, they wouldn't be surprised if the company could double its market share to 12%. that would be huge. in perspective, red bull's domestic market share is only a few basis points higher than monster but internationally red bull controls 25% of the market, much higher than monster. it's not a stretch that with coke's distribution system monster can close the international gap with red bull. meanwhile on the domestic side energy drink sales have accelerated in the third quarter to 6.1% growth after three

quarters of deceleration. that strength is likely to continue given the massive decline in gasoline prices because 17% of monster sales come from u.s. convenience stores and dwas stations. we have an extra 10 or 20 bucks after filling your tank you're more likely to fork over few dollars for an energy drink. monster up 9.4% as they expanded market share by 1.2% which is really rather remarkable with percentage points. on top of that monster also has a bunch of new product line extensions. their popular zero calorie drinks with ultrasunrise in november and ultracitron launching next month. . it's causing out with tea flavors for its monster rehab. i wontder what you're rehabbing from when you drink this stuff, a bernd, a full-scale hammering? plus steeple points out monster could put through a 4% to 6% price increase in the u.s. after they finish the coca-cola

transaction given red bull had a similar price increase at the beginning of the year. that could boost to 390 basis points and that would be a major positive. and of course there is the reason i've been recommending monster for months. coca-cola could increase its stake in monster from 16.7% all the way to 25%. or the growth start coke could simply acquire the whole darn company. i think that would be a brilliant move for both parties. even if coca-cola doesn't get any more involved than they are already, i think there's plenty of reason to expect monster to keep rallying. for starter, coke has poured a lot of cash into the company. i bet monster will be able to use that cash to good effect. we know from management they're continuing a significant amount of capital to shareholders in a short period of time, perhaps through an accelerated buyback. the bulls expect monster to repurchase more than a quarter of the shares. maybe the bulls analysts are too optimisting, but if monster even

buys back half of that amount give them a boost. i think we should bet with the bulls which is why my crack staff built this monstermid. there is so much good happening from the decline in gasoline prices potentially giving monster sales serious lift to the very possible global distribution deal with coca-cola to the point ceo of coca-cola decides to acquire monster. when rates come plummeting down like they did today, we want to pay more not less. this moment is the ideal scenario. let me give you in a monster way the bottom line. if you own the stock since i recommended it in the '60s, ring the register and plays with the money. but if you miss the move monster is the next move you want. hopefully next time the whole market gets slammed and monster will pull back giving you a nice entry point. keylee in texas. >> caller: a big boo-yah from

southeast texas. >> boo-yah back. >> caller: i'm a longtime listener. i've bought all your books. thank you for all you do to educate us. >> thank you for the kind compliments. not far from eagle ford. >> caller: nope. i'm 35 looking to invest a beverage company for my roth i.r.a. what are your long-term suggestions? >> very i nam mored of coca-cola on a valuation basis. i happen to be a big fan thinking pepsico remits great value at 90 so we're at loggerheads. maybe the thing is they're both pretty good. all right. let's go -- that's it? holy cow. we're done with my favorite segment of the night with the monstermid! this ain't nothing but a monster jam. if the kind of stock you wanted to buy in a monster sell-off this is the one.

there's much more "mad money" ahead including one of the ten top performing biotechs of last year up more than 200%. i'll find out what 2015 could bring. then a major player in the development of lifesaving drug i'll see if they can keep the game awlooichb my series "biotech: the next generation" continues. plus a brand-new edition of "the lightning round." stick with cramer. she's still the one for you. and cialis for daily use helps you be ready anytime the moment is right. cialis is also the only daily ed tablet approved to treat symptoms of bph like needing to go frequently. 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 for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision or any allergic reactions like rash, hives swelling of the lips tongue or throat or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. do y ou like to travel? i'm all about "free" travel babe. that's what i do. [ 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.

in my series "biotech: the next generation" we're looking at the hottest biotech companies out there, like experian therapeutic, the small-cap drug develop they're's been on fire rallying 209% in 2014 20% since the beginning of the year an 8.5% gain today in the wake of the company's presentation to the jpmorgan health care conference earlier this week. they're focused on finding treatments for high cholesterol and other cardio metabolic risk factors. they're working on a pill to lower ldl cholesterol where statins don't go ooh a good enough job. the results from trials are promising, patients showing a

40% reduction in ldl cholesterol, 50% when this pill is taken in combination with statins. this could have potential. given the massive run in the stock, we have to wonder how much room is left. let's take a closer look with the president and ceo of esperion therapeutics. welcome. >> glad to be here. >> sir, i have tried every single sta tin. very much want my cholesterol lowered. each time i get muscle pain in my fingers so i can't type and write. is the kind of drug you're working on for people like me? >> jim, you describe the exact patient profile of a patient for our drug. we're developing a drug that will lower ldl cholesterol like a sta tin that you've already tried but without the potential for the muscle-related side effects.tin that you've already tried but without the potential for the muscle-related side effects. it was two-pointed, originally

discovered by my friend and colleague roger newton who you may know was the original co-discoverer and product champion for one of the most popular statins, lipitor, and so this is his second -- actually his third act. >> and how many people are like me that can't tolerate? >> that's a good question and there are a range of estimates out there, but the one we are really confident in is there are at least 2 million patients in the u.s. people in the u.s. who have tried one, two, three, four statins, can't tolerate them get the muscle pain and muscle weakness that you describe but it could be as high as 7 million or 8 million patients that have these muscle pain and muscle weakness with taking a statin. >> my doctors are telling me that two or three years from now it will be highly likely that almost everyone in the country will be told to take a statin like we're told to take small

aspirin. is that a possibility and wouldn't that substantially increase the market that you would have? >> you know, jim i think the good news and the bad news for us, but it's more good news as a drug developer, is that 1 in 3 people in the u.s. have high ldl cholesterol so that's about 80 million people in the u.s. alone. so what the recent clinical studies have shown is that the lower you can drive your cholesterol levels the lower you and your physician can drive your cholesterol levels the lower you can reduce your cardiovascular disease risk and so a lot of emphasis as you noted not only now but increase lig so in the future to lower this bad cholesterol as it's been known over the years. >> now, also i have been trying to temper people's enthusiasm with this conference because after the conference sometimes these stocks go down.

this is a long-range project. this is not something that my doctor will prescribe to me next year, is it. >> no that's correct. and, jim, the interesting thing about the journey that we've been on with esperion this drug was originally discovered by roger and the team at the original esperion. it became part of pfizer when we were acquired by pfizer back in 2004. and then pfizer outlicensed it or actually spun it out to roger and the new esperion in 2008. so we've been outat this for a while, but we've been on a really fast path over the last six years or so because we took it from i.n.d. filing in 2009 to now where we have phase two results and we expect to start our phase three program late they are year. so we're still a few years out but we've made huge progress over the last several years. >> okay how much does the fda

want this or the fda knows that regeneron has something, they're confident with the statins they have, are you worried they say we don't want to risk the possibility of a heart incident or any other side effect it may not be worth it until we have multiple-year outcomes tests? >> that is a great question. i think, jim, the answer is that this is a drug that can be used by patients who are already taking statins and are not at their ldl cholesterol goal. we just spoke a minute about about the need to get your ldl or your bad cholesterol lower, and this is a drug that we've shown already and we've got additional clinical results coming out later this year that can be used on top of a statin to get you to an ldl cholesterol-lowering goal. and keep in mind jim, one of the things that we like to

emphasize is that the risk of dying of cardiovascular disease over the last 30 years has been reduced by 60% because of drugs like statins. but having said that if you look at the evidence today, at the data today, cardiovascular disease is still the number-one cause of death in the u.s. so is there a need for an oral a convenient oral therapy that can be used on top of a statin for patients who can't tolerate a statin to have a convenient oral therapy to use to get their cholesterol down? i think the answer is an emphatic yes to that. >> well i've got to totally agree, being someone who is desperate to try to get it. so i want to thank you, tim the president and ceo of esperion therapeutics. good to talk to you, sir. >> thank you very much jim. appreciate it. >> my usual caveats, these will be drugs that may be a long time to come many many tests, don't

know do your homework, there's loot of information about it then you if you think even after the run it's right thing for you, i understand. it is speculative. "mad money" is back after the break. you can find a new frontier. there's nothing stopping you and a lot helping you. technology that's with you always. this is our promise. it's never been better to wander because wherever you go, you'll find us doing everything we can, so you can.

it is time! it is time for "the lightning round!" buy, buy buy, sell sell sell. >> you hear that then the lightning round is over. are you ready? al nex new york. alex! >> >> caller: hey jim. i'm a young investor in upstate new york trying to make some money out here. want to thank you for everything you do for us. appreciate it. you do a great job. >> thank you. >> caller: i want to get into oil-related companies. tk corporation. >> i say keep looking. i don't want you in oil companies but if you're going to be there, be in the best area n.a.t., which had a big dividend boost. don't like the group but that's the one to be. scott in florida, skoths! >> caller: boo-yah. >> boo-yah, chief. >> caller: from hollywood, florida. thanks for taking my call. >> nois. horse country.

give it to me. >> caller: the company i'm curious about your take on is in regards to secure element chips for pay by phone technology. the company is s.t. microelectronics. >> no, no you want to be in nxpi but that one is really high. that's a better company. i've been telling people for lower risk by cypress, cy, because of the merger and the yield. bridge net my home state, new jersey. >> caller: i need your help on viva systems. >> it's a very good cloud play. there's a lot of bears in it. they always knock the stock down. big, short position in the name. i like adobe, too, less volatile. brian in tennessee. >> caller: boo-yah from nashville, tennessee, man. >> love the titans. how can i help? >> caller: i bought in at starbucks for $75. what should i do? >> you're doing very well with starbucks. big position. my charitable trust. i know i was disappointed when troy alstaed had to take a

coffee break, but howard schulz has it all lined up. one of the great growth companies of all time. michael in new york michael. >> caller: jim how you doing? boo-yah. >> doing well. how about you, partner? >> caller: good. love your show. thanks for everything you do for the average investor. >> thank you. >> caller: synergy resources. >> i'm surprised that's up. i don't want to touch anything in the oil and gas. royal dutch is enough house of pain. don't need to distribute it. nile in new jersey. >> caller: boo-yah from bergen county. >> yes right around the block. how could i help? >> caller: jim, calling about papa john's pizza. >> papa john's and domino's are extended. i want them to come down before i can tell people to pound it. i can't tell you to pound the people. too extended. ernie in kentucky. ernie! ernie? >> caller: hey jim. >> yes! >> caller: boo-yah. i want to know about pissarro. you were bullish on --

>> i was bullish at one time. . then the whole oil complex came down. i'm not recommending oil stocks. i keep giving you the example of royal dutch and how bad my charitable is doing with that. house of pain. that was the conclusion of "the lightning round"! >> "the lightning round" is sponsored by td ameritrade. [container door opening] ♪ what makes it an suv is what you can get into it.

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every day this week we've been talking act innovateive biotech companies make nug drugs. don't forget about companies that make this possible like charles river labs, provideing universities and pharma businesses with everything they need to discover new drugs and conduct early stage clinical trials, really early, including safety testing. it's like a one-stop shop for all your discovery and early stage drug development needs. in fact, charles river's 50% market share in research models. 20% share in toxicology 20% in drug discovery and 20% in endo toxin and microbial detection. i am a fan because the pharma and biotech industries increasingly embracing outsourcing. this stock has been moving up nicely rallying 9% since october, and it barely got dinged in today's nasty market-wide sell-off. the company presented to the

conference this morning so a perfect time to check in skw with jim foster, the chairman and ceo of charles river laboratories. welcome back to "mad money." >> nice to be here jim. >> i have to ask you, jim. you're out there, i am listening to more companies than i've ever heard, watching more ipos come public. they cannot do the work themselves to figure out go no go. are these all new clients or potential new clients you're seeing when you're out in san francisco? >> it's amazingly exciting and optimistic time. yeah many of the companies here are our clients. we're helping them make these determinations as early as possible in the drug discovery and development process, and biotech, which i know you've opinion spending some time with this week, there are more virtual companies, companies that have technology platforms that want kwo to use outside providers and partners like charles river to accelerate the process and get the drugs to

market. we're enjoying our collaboration with these companies, both large and small, immensely. >> we've been speaking to a bunch of companies at an early stage. i've been cautioning people look just because you did phase doesn't necessarily mean we'll have good news. are you seeing companies that are basically -- this is a hype/no hype question i'm going to ask but presuming things work in mice they'll definitely work in people? >> sometimes. not always. it's an early indication that the drug may work well. it's one of those go-/no-go time frames. longer term studies of different animal models are helpful but final determination has to be made in the clinic with patients that have the disease state. >> actual human outcomes in humans and ralts very far, many years between each other. >> it's -- it's helpful and predictive predictive. we're working on better animal models. there are humanized mouse models

that implant a human immune system into a mouse model. things like that will give better predictability over time. we're working harder to try to bridge that gap. our genetically engineered model lines go a long way towards doing that. there are animal models for a variety of disease states but it's still animal. >> say you're work ong a statin and the fda is worried there might be a heart implication so you don't want to give it to a human because you won't necessarily die from too much cholesterol but it's too risky. could i come to you and say, mr. foster i have a problem, i have a great drug that lowers cholesterol, it might cause heart or cancer can you help me? >> sure. we'll -- we'll model that out, do a study design put it into animal models. we have capabilities now through an acquisition that we just did in the i indian channel space which helps to determine whether

the drug will cause heart arrhythmias. so yes, i think a lot of early modeling for the drug to make the decision about safety and efficacy, the animal models have gone a long way to doing that and, yes, that's what we're doing every day for these clients. >> one last question. you can't take stakes from the public companies but when you do a study with a leading academic institution and you see something that work could you ever take a royalty or get a partnership with them? and why would they care? you're not, you know, doing anyone a publicly traded company but you know more than anyone and obviously a university needs partners. >> we could obviously do that. we've been running our service primarily on a fee-for-service basis and we'll do really good work and you'll pay us for that fee. we always thought it was a bit overreaching to get parts and pieces of drugs. we in no way want to be competing with our clients. that may change over time and as we do more work with the universities, as you say, that

may be a good value proposition but it hampbt happened up until this point, but we would be open to it. >> excellent. you're right in the heart of it. you know much more than a lot of people. i want people to listen to you because a lot of the companies we're talking to are speculative if they know what they're doing before we get to where i'll take it. james foster, chairman and ceo of charles river labs thank you, sir. >> thank you, jim. >> how is it we talk about all these companies? i like charles river. stick with cramer.

i know we always want to believe that the stock market is logical, but something happened today that should tell you exactly how illogical it's become. at one point oil spiked spiked big, up a couple bucks. what stocks flew up when it happened? the airlines. yes, see, that's what's the matter with the market. it's kind of like broken short term. that doesn't mean you can't profit from it, but we have to have conviction that what we're buying goes higher in a lower oil environment and what we're selling goes out when oil goes down. so, in other words, when we have a spike of oil like we had today, i want you to sell these stocks, not buy them. clear? like i said, always a bull market somewhere. promise i'll always find it for you here on "mad money." i'm jim cramer and i will see you tomorrow!

[ mid-tempo rock music plays ] >> more than a year has passed since colorado became the first state in the nation to legalize the sale of recreational marijuana. but sometimes the line between what's legal and what isn't is still a little hazy. this is not the first time cops have been called to this head shop in wheat ridge.