tv Mad Money CNBC January 27, 2015 6:00pm-7:01pm EST
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quietly all-time high. earnings on thursday i believe. i like bx still. >> thanks so much for watching. see you back here tomorrow. don't go anywhere, "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 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 america. my job is not just to entertain you but to teach you and educate you and put things like this today in context, so call me or of course tweet me @jimcramer. all right, look i'm sick and tired, sick and tired of all the whining. just done with it.
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especially endless whining about the strong dollar and how it is killing the translation. that is all i heard today. it was the proximate cause of the downturn in the market. nasdaq plunging 8.9% now look i get that the dollar is strong against a number of currencies and that hurt. believe me if this were not an hermes tie and if this booze were not actually worth drinking i would be pouring the wine of all of these great countries all over this dirty floor, which is usually meant for sipping cheap scotch after a hard day at the office. i mean some of this whining, just consider my whine list it's perfect. microsoft has a bad vintage. nasty, whining about execution
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in china, when i hear it about china it better not be about earnings. and the whining, what the heck went wrong in china and japan. you know what? that is your job, microsoft. i don't want a darn crisis about sales in china. hey, by the way, a lot of whining going on at procter & gamble. don't know how it could have been worse. don't go near this bottle. i want you to -- it's spoiled. just return it. vinegar, all right here we go the biggest whiner of them all? caterpillar. yeah i have never heard anybody campaign as aggressive as the ceo to get on the "mad money" wall. this man is on a mission to get there. i may have to grant him his wish. he stumbled pretty much everywhere overseas complaining
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about weak markets for equipment use to mine iron ore, copper you name it. the biggest one? how the oil and gas industry has led to decline. i heard him whine about the impact on the oil impact on his company's business than the oil service great. when you sell goods in another currency that is depreciated by the minute you're not going to get a good return here you know when you go to one of those weaker places overseas, i am saying you don't have to take their whining. let me give you my guideline on skipping the corking fee. i'm talking about passing on the wine bar of the would-be byob joints on how you can navigate in the market, by worrying about something that has been going on for months now, worries that have been discovered by the ceos
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and their analyst accolades. i want you to invest in companies that won't whine before their time, with ceos who don't excuse their performance and obscure their lack of performance by the pain of the weakest currency in the world. let's face it if you can't beat them just join them for heaven sake. okay, so procter & gamble took a big hit from currencies around the world. okay, let's not out-think this. who benefits from something more competitive than the competitor? how about unilever? this is a european country that does better with a stronger dollar plus 25% of its raw costs are energy-related. you have the exact opposite of procter when it comes to procter. unilever is benefitting where procter is hurt. i mean sell it, buy it.
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if it doesn't have a lower commodity cost factored in yet, because oil fell too quickly to matter. notice how the k & b held as i told you it would. not one, two, third day it does tend to bottom. how often do you get such a great chance to buy a high quality name like kimberly clark, the purchase in the open stark that will last ten years? of course you can always buy the stock in the company that didn't even blow it and didn't whine about how it hurt its business. honeywell didn't need to give you a strong dollar beat the numbers, 3 m the same way, that stock was being crushed at one point. how wrong was that? same with united technologies that fell to $115 on a headline like this just saying the guidance was bad. but if you actually took the time to listen to the incredibly good conference call you would
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have heard they were not really focused on the dollar but on winning, not whining, winning new business from other companies. taking shares taking names, taking no prisoners, like the old united technology products of old. i thought who is this greg hayes? this new ceo, i have to meet that guy. now it looks like app didn't do any whining, they just sold more iphones than anybody else and rallied after hours. yahoo! didn't need the numbers either. just came off a strong alibaba segment. neither app's tim cook or marissa did any whining tonight. there is just not all that much to whine about. second who says we even need to go overseas? back home we have unfortunate domestic whiners, but the retail chains got hammered at the opening like everyone else in the sea of red ink.
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i thought we would get a chance to buy kroger but it wasn't even down. the hideous opening gave you a chance to call your broker no broker when the market was down i want shake shack, that is what you got to do. how about a domestic airline? i have been waiting for southwest airlines to come back down ever since i spoke to the ceo. but no maybe some interpretation will give you have a chance to buy, the fuel chance out there. maybe someone says the fed is insane for what it is doing, whatever it is not doing. hey, union pacific as we know doesn't have a spur that goes anywhere near one of these fine european vineyards. or -- chinese wine beer --
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consider the domestic high yielders like the real estate investment trust. but when the market was drenched with red ink you could have gotten some like the senior house investment company or the epr properties both of which were regularly featured on the show. i like them both. you got a moment there where you can just skip the economic nonsense. think regeneron, i'm telling you, the prospect of an alzheimer's arrester. how about the long-acting human growth hormone, a drug that was marketed hard by pfizer just this very morning. and now you have to be ready, when you see that volatility that is your chance please don't forget the look good feel good, live longer themes from get rich carefully.
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notice how all domestic whole foods has not been going down. white way foods, stable. activist activist, fits the bill. let me give you the bottom liner, throw out the strong whiners, either stick with the domestic or go with the companies not doing so well think app that you don't even notice the currency fluctuations. wouldn't you rather own a winner than a whiner? john in california john? >> caller: hey this is john out here in sacramento. we are very cold out here 40 degrees, i know you guys are having a bad time out there i wanted to ask you about chevron. i love chevron and what do you think? >> one of the reasons i loved sacramento, it never got hold the whole time and had an extra patch of honeysuckle, smelled
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quite sweet. chevron is going to report this week, i am concerned when they report that there is some clown, uninformed, who has to cut numbers, then when they're left behind they have to cut numbers that is the best time to buy chevron. why don't we go to claire in oklahoma. claire? >> caller: hi, jim, i'm considering buying a 3-d printing stock. what do you think -- >> no no. >> caller: no? >> no you're not buying a 3-d printing stock. no, 3-d, the numbers cut today, i think stratus is just okay. hp hewlett-packard, going to play the spin off -- wait until you see it you won't want to do it. let's go to harish in missouri, how are you? >> caller: hey, jim, simple question, after earning what is your view? >> man, you're making life too hard for yourself.
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i know new court is all the way up there with the yield. especially the earning basis, i am not recommending any of these deals right now. i worry about they all seem to be going down because of the oil -- many of them other than u.s. steel don't even make it. there is just huge guilt by association. and you know what? i don't want to be found guilty by association. wine is for drinking. you don't want to deal with the whiners, stick with the domestics or the ones doing well that you don't even notice. the fine cabernet. anyway, on mad money tonight, protect yourself from the pain overseas. i got to look at the boom from overseas racing past the market guys we're dumping that stock, too. bozos, forget the deflategate, tired of it now. why don't you stick with
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everyone is talking about currency and how it is hurting so many stocks yet nobody is doing anything about it. that is wrong. the market is doing something about it. yep, the market is frantic, a lot of stocks do international business to get ahead for the strength of the dollar and yet the weakness. take boeing honeywell, alcoa, united technologies that the aircraft business is booming. we know from the major airlines american, delta, continental. the demand from the planes is strong. we know military spending from other countries beside the united states is picking up.
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that could help boeing too, we know that only 33% of the earnings from boeing comes from the united states and the basket of foreign currency modelled itself -- remember the dollar shot up. the company has not announced anything except robust orders. yet they have been hammered in advance of tomorrow's earning report. that decline of the number which again is partly link of the dollar.happenen to pepsico, she is not in charge of the world's currencies. you have to expect while pepsico is taking its part in the share of businesses it may not be favorable with the change. who knows the type of damage could be done 50% of pepsico's
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sales come from overseas when the weaker currencies are translated back to the dollar. again, the market knows, which is why the stock is being crushed before february 11th. the stock fell nearly two bucks today, no particular reason except the most important one, currency problem, anticipation. at one point the stock was down nearly three bucks, almost all technology companies do a ton of business overseas. the ceo came on our show last week and explained how the currency fluctuations were the cost of doing business. so his stock gets hit a little less hard so he has already been warned about the hazard of the dollar. and most of the big companies taken down a notch, cisco has not said anything of late about currencies. now there are three other groups worth mentioning first,
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honeywell, general electric and most important starbucks. these companies didn't skip a beat, neither did netflix for that matter as its international business seems immune to currency issues than in previous years. i want to call that virgin territory. secondly reset, family kimberly clark which managed to rally today, already down more than eight points at one point fell 11 points last night when we interviewed the ceo of kimberly clark, means the bad news is in. finally, the holy grail, companies that don't have business overseas the restaurants, utility, real estate and trust all went higher. they offered you no real bargains at all. these are the real stocks to key on, the american stocks the ones where you need a second down day because maybe then you get some weakness. the bottom line is without the fed's help tomorrow saying something negative for stockingss i
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don't know if you get that chance to snap them up at all. let's go to sam in south carolina. sam? >> caller: yes, jim, thank you for taking my call, man, first time caller. i read all of your books. thanks for everything you do bud. >> thank you, thank you. >> caller: my question tonight is about pfizer, they reported this morning they would be subjected to $2.8 billion in the market, due to overseas issues. should i be worried? >> look it's a great question, everybody is worried about the dollar, with pfizer it's a question of new products and sales less currency. a lot of the drug companies everybody presumes we'll have currency problems always because they will be big international companies. pfizer is holding up well with new products i think they're fine. i prefer other drug stocks but i think pfizer is fine. i know i always liked bristol-meyers. >> caller: thank, jim, you have
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a great staff, the earnings are due on february 5th. got nailed today with caterpillar, but their management is much better than calculate caterpillar. their engine sales are okay the china overseas sales are okay, holding at 140 today. do you think it can trend upward? >> i really think you made a great point, which is to say cummings is better they and cat make great machines cummins is doing much better. that is a great company, every time china blinks you get hit. when i saw it was down 5-7, i thought somebody was going to get hit. i know it is a very good company. got money on your mind? everybody is talking about currency. the market is the only thing worth doing something about it. much more "mad money" ahead,
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17% year-over-year. there was a mix because of continued investing and spending because of dollar woes. i think it is interesting with the conservative guidance beating the numbers as the ceo scott wine. let's check in with mr. wine, the chairman and ceo of polaris, welcome back to "mad money." >> good to see you. >> all right, you're a humble guy, calling it a win. you're saying this quarter is an ugly win. why is a win called ugly? >> well jim, our results were quite good. but we certainly looked not at our financials but how we got there. we feel that some of the efforts in our factories, the team did a great job but we can do better in terms of how we manage our inventory and rework, and ultimately we believe there is a lot more earnings power if we can execute a bit better in the years ahead.
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>> a lot of them made the alibi of currency you're only alibi is inability to hit production targets. sounds like you're more steamed about that. >> we expect more in the year ahead. it is a significant head win for us, but one we feel that we have the ability to overcome. what is win our control. fortunately our newest products our indian scout and sling shot just reported as motorcycles. our ability to beat the demand is below our expectations and we're working very hard to make sure the customers who want those products get them as quickly as possible. >> i think that is a great point, a lot of executives should be searching about that. overall, the introductions, the innovations are really starting
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to play a role in the earnings. >> you know, we know we get paid with the market and innovation we've done it consistently. our road map tells me we should be able to do that in the next three or four. while we look at innovation we are driving efficiencies to make sure the product gets to consumers faster ultimately with higher quality and higher margins. >> there are several calls on the conference goals where you say you are picking up market share against the other guys. if you can't grow the market as much as you want because of weather or currencies you are taking share, definitely in many categories? >> well in most categories we are taking market share, we strive to do that every single quarter and every single year. right now we're riding the wave of the very strong models with the off road divisions and even our snowmobiles are doing very well. our market shares are high and we believe there are
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opportunities for those to increase in 2015. >> now, you just mentioned snowmobiles, you get a blizzard does it actually send people to the stores. >> it really does jim, it is great when the snow hitseople who bought your stock. they love it when you come on people talk about the terri service. one thing people didn't like i saw it on twitter. there was this weird kind of raid on your stock where i know you're not allowed to talking about you're in the quiet period. where didn't people just panic about your stock there was clearly nothing wrong? >> well when people see a string of successful years from us they wonder if the story is going to end. quite frankly when we have the ability to talk about the year ahead and actually the years ahead people recognize there is a lot of momentum in our ability left to drive growth. certainly, people look historically, we do not try to be heroes with our guidance.
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we look down and try to hit it in the middle of the road and factor in the challenges as well as the opportunities. i believe that some people may have played on the fact that our guidance may have come in below their expectations. with our very strong fourth quarter results today and a 9 to 12% growth outlook for 2015. i think we did okay. >> one last point. -- you know, clearly benefitting from that was some of the currency pressure, not as bad as some of the international companies. we're launching a new product with our joint venture in india. we have a new product in poland coming on. we really see our ability to serve the customer winds with the lost costs as we put plants and opportunities there. i think we'll continue to invest in 2015. >> well you delivered a great
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quarter, people panicked for no reason. once again, scott wine thank you for coming on "mad money." >> okay thank you, james. >> and the stocks are under pressure for no good reason. sometimes just have to have a little faith. i should you should have faith in pii. stay with cramer. coming up while tom brady and the patriots have their hands full with deflategate, cramer is focusing on a matchup that could pump up your portfolio games. he is scouting in seattle that could help you put serious points on the board. >> tomorrow will app's holiday sales deliver january joy to investors? reaction and analysis what is ahead for the tech titan now. unlock the most valuable.
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well on a day like today you have to have a little nfl distraction. going into the super bowl sunday on nbc where the reigning champions, the seattle sensation sensation, face off against the patriots. and of course, the puppy bowl and bud bowl my money is on bud lite, i'll give you my scientific take on the game. which is why we are pitting four seattle-based companies.
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the smart technician is the founder and senior strategist as well as being the technical star behind the news letter which is doing pretty well. let's call it the "mad money chart bowl." playing for seattle, we have costco, nordstrom, microsoft and the big duck starbucks, kind of like marshawn lynch. and the not so secret weapon dunkin brands who knows, maybe they will predict not just where the stars are headed but the matchup and the big game. favoring costco versus boston beer. land likes that we're seeing a side ways consolidation here moving higher in late 2014.
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pull back it did look pretty good. plus the moving average converge converges. it is about to make a bullish crossover, again, where the black line goes above the red line and we've seen that many times before. often a positive sign for things to come for the stock. it has worked really well for the mad money charts. how about costco's opponent? boston beer? the maker of sam adams. wow. what a move. check out that daily chart. boston beer has been very strong up 50% since last october, last week it broke out in the past $300 for triple volume. the map indicates this stock could be overbought at least at this level. it needs a breather after what is clearly just an epic run. first round, by a close margin we'll give it to costco.
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seattle 1, new england, zero. and by the way, consolidation just so we know it is the best stock in the group. all right, next up nordstrom versus cbs, in the daily chart you can go to the favorite seattle store. nordstrom has a solid trend going on. it has been solid. the 50-day moving average, remember we were here last spring holy cow it has been such a winner. the indicators if you're flashing a bicycle year. to pullback from nordstrom stock, the support of the 50-day moving average is still holding. notice how the stock didn't skip a beat today despite the nasty decline in the averages. that is another firster. there is the rhode island-based cbs, i am jealous of anyone who owns this stock.
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just $65, they bought it. cbs barely flinched and has been going strong ever since. he thinks the stock may be a bit extended here but it is still a tremendous performer. it acted so great today i kept thinking oh, come on go to 99. line gives it to nordstrom by a slender margin. now it's getting tight here the score is seattle 2, new england, zero. safety is the matter. and microsoft just a second. and skywerx solutions. let's start with the real smart guys at microsoft. which kind of was eviscerated today. with the disappointing performance. china, japan, plus the dollar -- i don't have enough time to go into all the pluses here.
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today's more than $4 decline, microsoft trending down. stock has fallen below the 200-day moving average. while i found some support today at the october low, line thinks that microsoft is likely to trend side ways for a time. as someone who owns for it a charitable trust, i would be thrilled if all it did was trade sideways. i expect that it breaks the low, that it goes through here because that pattern is just terrible. line doesn't seem to mind it as much. skywerx just reported another stellar earnings. line thinks it is easy to see this one is ultimately headed higher. seattle 2, new england 1. i like this call skyworks is in
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the middle of a revolution. especially the oil and gas renaissance which is taking a real break here. this one just keeps delivering and delivering. all about the trillions of connections out there. finally, we have the coffee house showdown. starbucks up new england, dunkin donuts we know that cramer faced starbucks, they came out with big earnings last week. hence the big guantanamoap-up? see this. there we go, okay you see that black line crossing over the red suggesting there could be an upside to come. the winning percentage index, starbucks, that is an indicator developed that tells you whether stock has gotten over-bought or over-sold. we know from the stocks run last fall that it can stay over-bought for month bruises before
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we see any kind of pullback. making the all-time high today, there is no resurgence ahead for the stock. the only green stock at one point on my screen. here is a stock that broke out hard in december dunkin ralliy back up. filled the gap, i didn't expect this move. lang points out that dunkin has a strong review. less than two bucks ss where it is currently trading. the stock has made a head and shoulders formation, which is what i'm worried about people because that is one of the liveliest bear charts i know about it. i don't like this chart here at all. starbucks crushes the competition. final score for the mad money chart bowl three chart wins for seattle, one for new england. that doesn't mean the seahawks will necessarily win this weekend, especially if patriots head coach bill belichick can
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somehow sneak a deflated ball onto the field. although i hope r sherman, under score 25 i hope he feels better. that is something to worry about. the bottom line here the charts say that the seattle-based companies like nordstrom and costco are all worth owning here along with only one new england place. skyworks solutions. that is an unscientific way. a good way to learn how to chart at the same time. >> it's a brutal full contact sport. >> from the time the whistle blows, they're bracing for what could be a wild session. >> last play of the game. markets absolutely getting hammered today. i know it's not easy. but i promise to keep fighting
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it is time and then the white numbers, are you ready? time for the luck. >> >> caller: listen i've been hanging tough. but i'm getting hits. what is your take? >> well i think we're a little late, i think the sales forces are going to be okay. it has done nothing of late. we're getting a little better vibe for the cloud place, i think you should be okay. walter in north carolina walter? >> caller: well, yeah jim, from lexington, north carolina, thanks for taking my call. >> of course. >> caller: i watch your show
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every night and have for many years. >> thank you. >> caller: well i'm calling -- i have a substantial investment in state street stt. last friday they reported their fourth quarter earnings. >> yeah. >> caller: 1.37 against ernesto 1.25, that was an increase over last year. their 2014 earnings 12% increase unearned year to year. >> but the problem, walter is that they did miss the quarter, they missed the quarter and a lot of other banks didn't miss the quarter. i know they're not trust banks but i trust them more than i trust state street. all right, rojan in texas. >> caller: hi jim, i'm calling from houston, texas, how are you? >> i'm doing good. >> caller: i'm doing good too,
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i know you read the take on biotech recently -- >> it is the hep-c formula, someone keeps thinking they will buy them. i think it is a very big price tag, i don't know if it is worth the speculation. hal in south carolina hal? >> caller: yeah, pba, sell or hold? >> i don't know it. i don't know that one. let me think of another one. let's go to steve in wisconsin, steve? >> caller: hi, jim. >> what is up steve. >> caller: first, i want to say i think i know why you focused so much on biotech lately. because your energy level is so infectious that we're all going to need some medicine. >> well i hope that could be it. i also hope there are no earnings problems in the drug approval. what is happening?
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that managed to go higher this session. that is what these gen pharma companies are doing. a company targets unmet medical needs by primary care special care and ordinary diseases it picked up four markets by way of the series of acquisitions. the company sales arthritis drugs, pen sad, drugs for the knee and reas they have a history of acquiring drugs or entire companies and then growing their sales faster than anybody can expect. they acquired the therapeutics accitumune before september, pen sad had a failed move.
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meanwhile, actumen could have more than 5 million sales because of the orphan disease applications. now, horizon has a big move. i wouldn't be surprised if it had more room. it is fitting. let's take a closer look the chairman and ceo of verizon pharmaceuticals. welcome to "mad money." >> great to be on with you today, jim. >> all right sir, can you tell me what you do that the other guys don't so you can have a failed launch, say, of a drug and then horizon gets hauled of it and it does great. >> it worked about 20 million in 2013 sales under astrazeneca. a lot of it comes to the focus, as a big company, astrazeneca, a $20 million product doesn't mean a lot. in our hands, we focused on the
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representatives with our products, able to grow prescriptions 18% in the first three months ever since we took the product over. the first three months about 34 million in revenue. exciting acquisition for us. and really sets us up to do further great deals as we did throughout last year. >> how does this have to do with the prescriptions made easy initiative? >> well we really love our program. it does two things it helps patients, it creates access for patients and allows them to get our products at the lowest possible cost. two of our league products 90% of patients pay zero out of their own cost each month. secondly what this program does is reduce the administrative effect for a physician in their office where they can describe doe doexis and get that product
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without rejection. we subsidize the patient for free. our strategies do the right thing for the patient while we drive the revenues. >> let's talk about actumen, many arthritis drugs are ones you take and don't have stomach problems. but actumen is different, how do you find patients for them? if you can find a number of them it would be a giant, giant drug. >> we look at the acquisition, bringing actumen on board. it works in a variety of ways first, the opportunity for well over a $500 million drug a currently used drug for childhood diseases about 270 patients are on the drug seeing an opportunity to get out. educating patients getting them lined up with the right physicians to help them with these very rare diseases.
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but most importantly is how we look at the long-term and the other additional indications. the most recent coming up a rare neurology disease, where we begin to face trials here in 2015 in the second quarter. there are about 2400 patients well known entered into a registry with the key advocacy group. we see revenues of over 300 million if the product is approved. >> lastly you have arthritis of the knee this has to be one of the most growing illnesses in the country, given the age of the baby boomers. how big can this one be? >> well we can certainly see that similar to what you mentioned in your opening remarks, this is a product that didn't have a lot of focus at a larger company, where we can bring it on and see success and
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create multiples of the 60 million which it did last year. so a significant opportunity to benefit patients put it into our pme program which creates access for the patients. gives it to them at the lowest cost. and clearly we believe that its product profile is equal if not better than anything else out there. we're excited about the prospects moving into 2015. off to a great start so far. >> that is just terrific. want to thank you so much. the chairman and ceo of verizon. >> thank you for allowing me to come on. >> we're trying to stay away from companyies in the cross fire of the dollar and worried about economic activity. this one fills that bill. stay with cramer.
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yes, i like the iphone numbers, i really like the idea that gee, this wallet is working as we want to say. i just think that ipay is going to roll over many retailers who are resisting right now. it is going to be very supportive of what happened to the record companies. i also like the yahoo! situation. right here on "mad money." i'm jim cramer and i'll see you tomorrow!
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