tv Mad Money CNBC February 10, 2015 6:00pm-7:01pm EST
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realize how valuable google is. >> look at the way it's traded off the announcement pfizer. see you back here tomorrow at 5:00 eastern >> 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. >> try to ring it 60 times. oh! hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you a little money. my job is not just to entertain you, but to educate you. so call me at 1-800-743-cnbc. or tweet me@jimcramer. now i tried to do something different today, and not just because it was my birthday. i got up at 3:30 a.m. but that's as usual these days.
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instead of looking at the overseas market for direction i decided no i'm not doing that. i'm considering all the different corporate data points just from the united states and try to estimate what the market would do today based on a domestic vacuum. you know what? you tune it out, well we got just what i figured would happen a positive session where the dow gained 140 points, the s&p climbed and the nasdaq 1.3%. but for all of the wrong reasons. and one of the reasons was not that it was my birthday. yet in the wee small hours of the morning i looked at the individual retail sales numbers right up on all the companies that have reported of rate consider u.s. interest rate copper, the price of oil stand upgrades and downgrades, all without peering once at the s&p futures or stock prices in news out of china, japan, or europe. in other words, i looked at everything in a cone of domestic silence. and the things i saw, they were overwhelmingly positive. but you know where the market
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actually went higher? because nothing negative happened overseas, nothing. looks like that pesky greek issue can be solved by a can kick short and long with the long being a delicious stretchout of payment as maybe over seven years, while the fundamentals of the country of 11 million people hopefully get better and stop overwhelming a system. meanwhile, we've got no significant news flow from any country in europe of note. a vacation from data. how about china? gloriously without a significant data point last night. no construction data no manufacturing screw-ups, nothing, except the first increase in the baltic freight index in weeks. a little whip up that shows there might be a pulse. see, we've all come to believe that everything out of china is going to be awful. it's going show definitive slowing. so all you can ask for is a day of no data. because when it comes to china, no data is good data. ukraine for a couple of hours seems like the horrendous status quo. but we're beginning to hear rumbles that germany is no
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longer on a footing and the possibility of a eastern ukraine buffer zone in return for ukrainian independence without an entrance into nato and russia gets to keep the crimean navy base? i'm hearing it could get a done deal. i'm not kidding that could happen. not yet, but it could happen. so we had no new negatives overseas. glimmers of positives about ukraine. and when that happens, you know what we consider? we consider how companies in the united states where we live our little country, we consider how they're doing. what are their profits? what are their prospects? what are they doing to augment their own value? and like so many other days when we actually consider the worth of american companies, we love what we see. we love it. and we -- buy, buy, buy! >> consider coca-cola which rallied nicely. why? simple. coca-cola simply isn't doing as poorly as it was. i thought the release should have said something at the top like new coke we're not as bad as we used to be.
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but i guess they couldn't do that with the connotation of one of the most failed brands of all time. today we learned a group of activist investors wants to put a firebrand on the board of directors who will be compensated by how much the stock goes up after he gets on the board. the beef he wants the company to return more capital to shareholders than it's already pledged to do. given that gm just gave you a 20% dividend boost last week that sent the stock flying as it now sports a juicy 3.58 yield, i was thinking you can't be too greedy here? but in the new world, all activists are greedy. or how about the shoot the lights out [ gunshots ] number from the lights of urban outfitters and arrow postal. they've been struggling for ages. urban has been making money, just not enough of it, while aero postal is bleeding from the eyeballs. aero postal was supposed to lose, say, 20 cents [ booing ]
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>> it's almost going to be break even. >> hallelujah! >> that's something to cheer about. same with martin marietta materials. a company that makes crushed stone, sanding gravel for the construction industry which also crushed the numbers when it reported this morning a gigantic beat. it talked about how both volume and price are look up. it's a bonanza. and it sent the stock up 18 bucks, 15%. and it's a sure sign that things are going to get much stronger in the country than much of the aggregate would indicate. the aggregates trumps in aggregate data any day of the week. how decent sells of kitchen building supplies, fantastic paint sales. when you get that kind of number, it creates a terrific reverberation through retailers that sell hardware goods. masco also confirms what martin marietta saying. home building one of the few areas hovering around recession levels might at last be stirring. then they got a real unexpected
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gem. yelp one of the biggest internet underperformers last week with a quarter that was widely panned as a precursor to a big slowdown it made an acquisition and renounced revise a more positive earnings outlook. given that yelp just disappointed on friday, well this was a terrific much needed and yes, shocking do-over. they really nailed the shorts and jumped the stock two and a half bucks. meanwhile, micron symbol mu seeing the stock get slammed since the beginning of the year now with manufacturing partner catapulted up more than 9%. i don't think it was hurt by qualcomm having the settlement with the chinese. plus without the background noise from our pathetic trading partners, starbucks rallied 3 bucks saying it's probably going higher. i think it actually has more room to run. it was an amazing quarter. when people are distracted by greece or ukraine or china, they
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don't even bother to take a look at a note like starbucks note. we've seen a bunch of the airlines numbers, but nobody cares because oil is rebounding like crazy which means it's hard for the airlines to top what they already delivered. oil finally blinked, down 3 bucks. that was the perfect backdrop for the earnings of spirit airlines. spirit, which son later in the show says pretty much terrific things that the other guys said. except this was done in an exceptional oil weather and the stock exploded higher. and starwood hotels besieged by shareholders for not spinning off, decided to spin off its time share unit. i was thinking that starwood symbol hot should be changed to cold. today the company told a good tale of earnings. it took along the whole hotel group and that group has been feeling pain. the strong dollar has been hurting tourism.
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>> the house of pain! >> house of pleasure. >> with that positive backdrop, we had kind of an all is forgiven moment for many stocks that were damaged. some of them psychologically by the self at the end of last week. chipotle which had been hobbled by worries of future same-store sales snapped back. and at last it looks like the sellers were exhausted. day three, day four you can start buying the thing. finally, apple, perhaps in response to maybe, i don't know the multiple uptake of apple pay included a very positive piece in the papers today about jetblue accepting apple pay went to an all-time high, further verifying you should own, not trade the greatest wealth creator of the year which topped the $700 billion mark today. so let me give you the bottom line. you put all the domestic data points together, and you can see that when america was an economic island with an economy detached from the rest of the world, without the strings of hedge funds pulling them every which way and including loose, our stock market could react to individual company news in a
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rational and coherent way. and that's why for once today was a rational and coherent day and not just because of my 60th birthday. can we go to california, please? john? john? >> caller: hey jim, it's john sacramento valley. >> man i was just there the other day. looking better than ever. >> caller: i tell you what. i have at&t. i've had it for a long time. i love it. and i see all this sprint stuff cutting your bill in half. is there anything to worry about? would you hang on the at&t? >> no, but my daughter and i were mesmerized by that chainsaw ad. no, don't worry about it. at&t has as good numbers and it's fine. it's a utility but it's better than people think. why don't we go to stuart in new york now. stuart? >> caller: how are you doing these days? >> not badly. how about you? >> caller: okay. i've got a question for you. there seems to be a currency crisis in the world. gold is soaring in every
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currency but the u.s. is there a conspiracy here to keep gold down? and goldcorp one of the best gold stocks is giving a dividend greater than the ten-year treasury. what is your recommendation going forward on goldcorp and the miners? >> well i mean there was a time when i would have just laughed than conspiracy thing, but i can't anymore. doesn't it seem like everything has been rigged? the currency was rigged, the bonds were rigged. what didn't they rig? oil they rigged. nat gas they rigged. did they rig gold? you know what? you know what stuart? i'm going to say i don't know. hey, maybe they have. maybe that's the next big justice department investigation. in the meantime i like randgold. but know what? maybe you're right. maybe it's rigged. look when america is an island separate from the rest of the world, we got what we got today, a rational coherent today. mad tonight, i'm responding to all your amazing birthday wishes with one of the biggest business lessons i ever learned. it happened 55 years ago. but it's still just as important today as it was back then. i'll reveal it ahead.
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america's top toy companies have diversified into entertainment empires. i have to tell you they're diversifying from each other. one clearly has more game. i'll declare a winner. plus, spirit airlines soared. can it keep flying high? hey, have i the ceo. stick with me. >> don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim and e-mail at mad money cnbc.com. or call us at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.
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okay look. i've had some wild birthdays. yes, my 60th today. i've had some real doozies along the way, you know some surprise birthday parties that got a little awry. one that happened in the midst of suboptimal publicity. you can read about my shocking surprise 40th birthday that occurred on the same day as an unflattering piece about me in "the washington post," all documenting in confessions of a street addict including the
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infamous projectile vomiting incident at gallagher's 33. then i had birthdays where i kind of plain felt old like when i turned 50. no party. just kind of limping through it. or my 30th where i actually felt real old, but in retrospect was still pretty young. when you look back at birthdays, you tend to reminisce about when they were really special, really meant something with old friends, elementary school with my mom the great birthday cakes, trips to the zoo, a ball game. and there was one, always one constant with birthdays. pop's birthday paper. pop's old gift wrap. birthday paper was his best-seller. and it was christmas back then. that's what they called it. all the amazing paper made in america from st. regis and climax champion all gone now. just gorgeous heavy stuff. you ripped it off slowly. you unwrap slowly out of respect to it. it was so beautiful. bows on top. bows made of sasheen, a particular 3m ribbon my father
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used to wrap. along with the machine that made perfect bows. this stuff the junk is all from china. a joke. when i turned 5 pop started taking me to the place, his workshop where he had the big rolls and boxes and a bags and everything else you needed for jewelry stores and men's and women's stores and all kinds of sundry items. he would lift the rolls into the trunks of his customers cars. he was an objection. from my fifth birthday i learned the ropes of inventory. pops always kept bridals and birthday paper, because they were evergreens. stuff no store could live without and it didn't matter. every day was somebody's birthday. and these were the days when every retailer wrapped your gift for you. the christmas paper was the bane of his existence if the season wasn't a good one, having to buy it on credit and sit there until next year. but more importantly, pop taught me how much can go right when retailer doswell. as you look at the incredibly strong same storm numbers today from aeropostale or urban
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outfitters you have to understand that the ripple effect from retail is huge. more hiring, more merchandise orders, more boxes and bags and ribbons and tape. more expansion more stores open more construction work more roads built, more malls are erected. the force multiplier of retail and retail spending in this country is extraordinary. but unless you're part of the food chain yourself as we were even as we were from the lowest limb, you just don't know how much better retail sales actually mean for the u.s. economy. it's why i don't confuse things or try to outthink the power of business getting stronger worry about the fed so much. surprisingly positive same-store sales means more profits. more profits always means better numbers. which often always means higher stock prices. so let me give you the bottom line. on my birthday those memories and lessons just keep flooding back. hiding in the boxes, pushing over the roll drawing on them making bows. just having the best time ever.
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and without it without even realizing that i was learning. learning about how retail worked and how it can power a whole economy. never thought that would be 55 short years ago. i look back now at all the birthdays, and they make me smile, even though i feel as old as the hills on this big 60th where it takes forever to scroll down and find that must city but sweet vintage that is 1955 when you fill out an application for anything. dorothy in florida. dorothy? >> caller: yes, to my guru. i sold my jcp at a profit. i want to buy it back. when will it go down and how long will it take before it goes down? >> i want you to up your game. i want you to up your game dorothy. i want you to go with a better retailer, okay? jcpenney is fine. you can go back and buy it, maybe get eight to nine. how about we go for a premium retail they're has come down, that is kind of stalled like a macy's. how about a costco that has paid that special dividend?
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we want to go quality. we want to up our game. all right, thank you for all the birthday love, cramerica, including, look i'm trying to get to everybody on twitter. i'm going to get to you, because i'm insane i know that. i won't stop. but as i unwrap some of my precious memories i realize how much pop taught me, and by osmosis. let me tell you, retail can truly power an economy. much more "mad money" ahead. showdown between the top toymakers of the country, does hasbro or mattel have more game? the four seasons under the skies, but wow, it's taking investors on a nice ride up. i'll ask the ceo if it can keep flying high. plus i'll unveil a drug company that surged almost 5% and is so not done. stick with cramer.
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believe it or not, not all these toys on the set are my birthday presents for the big 6-0, although i can't deny that i've always had a powerful urge to play with lots of toys on television. but no the real reason for all these play things is because they help explain how two companies in the exact same business can deliver such -- such radically different results. i'm talking of course about hasbro and mattel. the last time i compared these two titans you know what i did? well, i was younger then. i dressed up in a has-mat suit. not this time though. i didn't want to ruin my perfect birthday outfit here. it is my birthday after all. hasbro has transformers and nerf and play-doh and my little pony and all sorts of superhero action figures like spider man.
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hit an all-time high today after a truly spectacular quarter yesterday morning which propelled the stock from $50 to $59, send it over to $61 today. a couple of johnny come lately guys upgraded it. on the other hand, mattel the home of barbie and fisher-price and a lot of american girl dolls, hot wheel, match box, and a whole bunch of yesteryear brands that you would never buy for your kids anymore is currently sitting just above -- well it's actually a few points above the 52-week low after announcing hideous results a couple of weeks ago. over the past 12 months hasbro has given you 21% gain with dividends while mattel is down 22%, even with dividends. stalwart. so what is going on here? are the transformers just tearing barbie to pieces? has my little pony suddenly become a carnivore and devouring american girl? maybe i should put it in terms of hasbro's classic board game
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monopoly. right now it's like hasbro owns all of the best properties. they got the moat tells on boardwalk and park place. whereas mattel's core brands are increasingly looking like shabby tenements on baltic and mediterranean. the real question though how did it get this way? how is it that hasbro can be so dominant and successful in the same exact industry where mattel is floundering? i mean, these are toy companies, for heaven's sake. as a father of two young adult women, i know from way back yore that pleasing children can be a difficult, sometimes herculean task, and i wasn't so hot at it. yet it's not rocket science. it seems hasbro has found the magic formula. mattel is clueless about how it seems to all work these days. what is the magic formula? hasbro has embraced branded entertainment, where toys represent the merchandising end of a tv show or film franchise. they even turned their transformers line of toys into a
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blockbuster movie series. and they have their own programing on cable, even netflix netflix. we from disney's fabulous court, it creates the demand for toys. bob iger who turned -- it's his birthday today. has $11 different billion plus retail franchises. hasbro understands that kids want to buy a piece of their favorite tv or movie series. they want to be able to play with the most beloved characters. mattel mattel, mattel doesn't have a clue. they just don't get it. they don't get it at all. they've been focused on having the best commercials, the best promotional strategies. the best shelf space. okay. that would make perfect sense if mattel was selling toothpaste or toilet paper. but they're selling toys gosh darn it. and when you're dealing with children, the best ads and shelf space simply don't matter as much as giving kids exactly what they want. about time. in the old days mattel's model
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made -- made some -- made some sense. years ago, selling tie-ins to tv shows or tv franchises was a hit or miss proposition. and while barbies and american dolls were nice consistent earners, you could always rely on those. but lately, both hasbro and the movie studios have developed a much better sense of what works. so the old hit or miss model has turned into a series of consistent hits that deliver terrific retail results and keep giving you dividends. consider that disney's properties account for 30% of hasbro's sales. they're all about the guardians of the d-backs economy captain america, ironman, the avenger, not the mention "star wars." have you seen the trailer? like 123 billion people already have. at the same time hasbro started a joint venture with the discovery channel, turned some of their properties like my little pony, transformers into cartoons. hasbro understands the content
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be king in this business. you got a whole generation of millennials who were raised on disney and nickelodeon. they're just starting to have kids of their own. oh, man, that makes me feel old. i am old. anyway, hasbro recognizes that it's much easier to sell toys to the new generation when they're already part of the larger story. now to be fair mattel does have the license for the disney princess line of toys which includes frozen. but starting in 2016 hasbro gets that license too because they bid for it more aggressively. can you imagine? mattel had frozen, one of the hottest properties ever and they let it slip through their silly little fingers. consider the recent results. despite the challenges created by the strong dollar it still managed to grow its revenues by 1% and beat wall street's estimates. now a $500 million buyback. when you drill down to the specifics you see mighty impressive numbers here. hasbro franchise brands up 31% at top retail accounts. overall toys for boys up 21%, more than offsetting the 10%
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decline in its toys geared towards girls. girls obviously studying harder than boys. that's the only conclusion. mattel whiffed in january 26. here is mattel. right? i mean that's a whiff. saying its fourth quarter sales declined by 6% year-over-year brands like barbie declining in the low single digits. monster high down in the high teens. american girl doll seeing a mid single digit decline. the results were so ugly that mattel's ceo ryan stockton announced his resignation. now, i think hasbro means a buy even at these levels while mattel has to be avoided. in hasbro's lineup for 2015 is too good to miss. avenger, jurassic world, antman and "star wars" comes out, hasbro will be selling the toys. you better believe they're going to be making a lot of merchandise. you know the last "star wars" movie was worth $500 million when $500 million was still something. right now only 250 million for
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the new toy sales. i think that creates an opportunity for hasbro to meet the numbers. meanwhile, hasbro plans to raise prices to schlecht markets where they can get away from it. they get 16% of the sales through the eurozone. how about mattel? i like that the board of directors decided to hold the ceo accountable. but this increasingly feel likes a technologiy out of touch company. and in case you're tempted by mattel's dividend, 5.5% yield, i say watch out. on that conference call management said the dividend was safe for now. but, and this is a huge but, it would be subject to further evaluation. in other words they're saying mattel's dividend is safe until it isn't. if it cuts the dividend somewhere down the road the stock will get crushed. until we see evidence that they have a strategy to fix things, i still think you could get hurt in this stock. plus, this is just crazy right now. hasbro sales for less than 15 times next year's earnings estimates while mattel trades at 16.5 times earnings. in other words hasbro is not just the better stock, it
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remains the cheaper stock, is often the case when you cut numbers so deep and the stock hasn't collapsed up in to equal the dimensions of the mattel short fall. here is the bottom line. in 2015 content is king in the toy business. hasbro understands that. mattel seems clueless. which is why hasbro is a buy and mattel is a -- well you know what? mattel turned out to be out of ammo. tony in california, tony? >> caller: boo-yah, jim. this is tony in westlake village, chasm. >> how you, tony? >> caller: i'm great. the stock i want to ask about had a significant quarter in years, significantly beating analysts' expectations, but it can't find any love. it has a 95% market sheer but its coo is leaving and the market expires in february. the stock is gopro. is this stock a long-term buy and hold or do you think it will continue to go lower? >> tony, you answered the question. you talked about the lockup you
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talked about the quarter, you talked about the prospects. what can i say? when you describe the stock, and i think tony you know the game it made me want to sell gopro, which is what people are doing. sometimes two companies in the same business can be very different. case in point, hasbro and mattel. content is king. hasbro gets that. mattel, not so much. you know what i say? look out, cameraman, close your eyes. wow! all right there is much more "mad money" ahead, including my exclusive with the high-flying spirit airlines, the stock soaring on a great quarter. but will the roller coaster and crude oil prices throw some turmoil in the mix? i have the ceo. putting the company under the microscope. biotech is up 5% today. we'll see if we can deep the gains alive. hint hint i think so. a special edition of a nuclear-powered 60-candle birthday edition of the "lightning round." just ahead. stick with the octogenarian --
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when that happens you need to be age to take advantage. in september, cramer spirit airlines reported a number less than perfect. it got hit with a vicious downgrade from raymond james, ultimately caused the stock down to 68 in a matter of days. but we knew that the airlines are perhaps the single most direct beneficiary of the decline in oil prices. and regulators know that spirit the lowest cost carrier out there is the best-run company in the group. it's run for profit. southwest airline would dispute that but that's okay. in short, the pullback to 68 was an incredible buying opportunity. sure spirit soared back over $80 today, up 4 buck up 5.3%. a terrific quarter. yes, a big drop in oil. the company delivered a 2% earnings beat with inline revenues that rose 13% year-over-year and a fabulous pretax margin. up 430 basis points. spirit has given us a quick 13% gain. the stock has more than tripled since i started recommending it nearly two years ago.
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but even at these levels it trades 15 times next year's earnings estimates. i think it has a lot more room to run. let's take a close look with ben baldanza, the president of spirit airlines. learn more about his company the quarter, the profits. mr. baldanza welcome back to "mad money." >> happy birthday, jim. it's great to be with you. >> thank you ben. thank you very much. there is a quote in your conference call which i absolutely love. you said we're adding 35 markets this year. and you basically said the realities of the last couple of years as we have grown, our opportunity has also grown. how it is possible that you can add a lot of markets and still have a lot mr. opportunity? >> well, there is more opportunity for two reasons. one, other airlines' fares continue to rise which creates more of an umbrella more of a discounter like us. and two, our costs keep getting lower. as our costs keep getting lower, more opportunities become available for us to fly profitably. >> one of the things that you talk about your conference calls are a real experience. you don't mince words. you actually talked about pricing compression. you are actually willing to
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admit that not everything is going right, or some parts are more trouble than others. right? is that fair? >> yeah i think that's fair. the reality is oil is any airline's biggest input cost. and that input cost has dropped a lot. what that does is it makes it more economic for all airlines to charge some lower fares, especially to fill marginal capacity. that's what we meant by the pricing compression. >> you could use every plane you can get your hands on, couldn't you? >> well, yeah although the reality is since they're such long-term assets we can't think of dramatically changing the fleet just based on short-term economics. so when we buy planes we have to think about the next 20 years, not just about the next two quarters. >> but at the same time when i look at the amount of money you can make with these new planes it is pretty extraordinary. i mean every trip pretty much do you ever fly a plane and not make money? >> well you know that's certainly our plan is to make
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money on every flight we fly. obviously, we can't always meet quite that hurdle. but we're very flexible with our capacity. and we manage this company for a profitability. so what we do is we monitor every route we fly and every airplane we fly. and we move things around to make sure that they'll stay as profitable as they can be given the macroeconomics we're facing. and we're very happy that our profitability is very broad based in the airline. that's one of the real strengths of the business model. >> any new charges for things that always surprise people that you're charging for now? >> well, you know, we always keep thinking of what could we put in the pipeline. but the reality is to continue to grow our nonticket revenue, most of that would be from things that customers don't typically buy from airlines but could buy through our website so we get a commission things like hotels and rental cars and tee times and parking and things like that. >> you know, i was concerned that spirit may not do that well if the company starts doing better, that maybe people would trade up and say you know what? i don't need with spirit. that has not occurred even
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though there is better job growth better employment, right? it just hasn't occurred. why? >> no, it hasn't occurred, and i don't think it will, jim. in any market strong or weak, there is clearly a segment of the market that is most value conscious. and is willing to make the trade-off in order to get a lower fare for their travel will accept some of the trade-offs we ask them to make. and in any market that's true. now, in a more robust market and in a stronger market, maybe it's a smaller percentage of the population but it's a much really much larger population. in a weaker market it's a larger percentage of a smaller pool. so there is a market out there looking for the most value play in any market and that's the market that spirit is most directly targeting. >> last week when i was listening on visa, he said look the strong dollar is really starting to hurt the tourism trade in the united states. again, i know a that your big connecting flights, that's not you. you're not seeing any slowdown from the strong dollar, right? >> no we haven't seen any real
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change from that at all. we're a domestic and near-in international player. by near end, i mean caribbean, close in latin america kind of player. and most of our sales are all in the u.s. dollar. so we haven't really seen a change from that. >> last question. jetblue, i flew jetblue the other day, i would have taken you, but you didn't fly the flight i needed. the apple i pay, are you going to take that? you swipe. >> yeah, you know but the problem with wifi is that it adds a couple hundred pounds to the airplane in terms of the antenna, and it increases our costs for very uncertain revenue. so when we can get a wifi player, and i'll put this call out to anyone who wants to do it, who is willing to install it on our airplane and share the revenue rather than make us pay all the up-front expense, then we'll do it. until enthen we're probably not going to have wifi. i'm optimistic at some point we'll probably have it. >> you are too much. you're a man of your word. fantastic quarter, fantastic
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year. thank you so much. ben baldanza president of spirit air. good to see you. >> thank you jim. have a great birthday tonight. >> thank you very much. look, spirit is the leader. it has a different proposition. it's not just an airline. it's a way to get from point a to point b more cheaply than anywhere else. and that is what people want in america. "mad money" is back after the break. why do we do it? why do we spend every waking moment, thinking about people? why are we so committed to keeping you connected? why combine performance with a conscience? why innovate for a future without accidents? why do any of it? why do all of it? because if it matters to you it's everything to us. the xc60 crossover. from volvo. lease the well-equipped volvo xc60 today. visit your local volvo showroom for details.
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it is time, it is time for the "lightning round." cramer what do they say -- buy, buy, buy. >> sell, sell, sell. [ buzzer ] then "lightning round" is over. are you ready, skee-daddy? it's time for the "lightning round." cramer starts with mikey in florida, mikey? >> caller: big birthday boo-yah, cramer. >> thank you. >> caller: i watch your show every day. my stock is achillion pharmaceuticals. >> it's a decent spec. i still prefer celgene. frank in ohio, frank? frank? >> caller: jim, thanks for your help with understanding the
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daily market swing. >> thank you. that's what i'm out to hear to explain what is occurring. what's going on? >> caller: okay, my stock is baxter international. >> baxter needs to split up. i suggest they do that. that's one dog stock. it has lost the faithful. it used to be the three bs. i don't mean beethoven, bach and brahms. mike in new jersey mike mike mike? >> caller: i'll give you a bbb boo-yah. what's happening? >> talented boo-yah. what's going on with you, sir? >> caller: long-time fiscal holder of food distributor, not because of the merger coming up. what do you think long-term? >> if they can get that merger through, and that stock goes to 50th, if they don't, it's going to hold right here. that merger does matter a great deal. i need to go to laurie in florida. laurie? >> caller: jim boo-yah. greetings from ft. lauderdale. >> hey how is it going? >> caller: great. i'm calling about sirius satellite radio. >> i like sirius.
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i like the numbers. >> buy, buy, buy! >> people should just own the stock. stop fretting just owning. curtis in north carolina, curtis? >> caller: hello? >> hey, curtis, what's up? >> caller: hey jim. thanks for taking the call. and i just want to thank you for all you do. >> i got a great team making me look good every day. let's go to work. >> caller: my possession is taser international. >> i like taser from the low teens. i got to tell you, they have the whole ecosystem. it is about police brutality. you ought to stick with it. i would not sell it. it's not police it's protecting police from charges is the way i like to look at it. i'm pro law enforcement. i never said i'm not. let's go to david in arizona. david? >> caller: mr. cramer boo-yah. >> boo-yah. >> caller: hey, i am wanting information on hms holding corp. >> i liked those guys a long time ago because it's a cost controller for health care. but i've come around to thinking that united health and cigna are the way to go. and i also like humana.
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and that ladies and gentlemen, is the conclusion of the "lightning round"! [ buzzer ] >> the "lightning round" is sponsored by td ameritrade. ♪ there's confidence. then there's trusting your vehicle maintenance to ford service confidence. our expertise, technology, and high quality parts mean your peace of mind. now you can get the works, a multi-point inspection with a synthetic blend oil change tire rotation, brake inspection and more. $29.95 or less.
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formulation, diseases like diabetes or schizophrenia to take their medication. make no mistake that's a solid business. and it produces a nice and steady stream of royalties. in recent years alkermes has begun to develop diseases for the central nervous system like multiple sclerosis and all sorts of diseases like schizophrenia. it could be a gold mine. just yesterday we got some incredibly positive phase 1 results in the multiple sclerosis drug which sent the stock soaring today. plus, in the past two months we also got extremely positive date fa for alkermes medication which can be game changing medications. i could just talk about the ms but i have to hear about the others too. the stock has rallied more than 30% since we last spoke to the ceo on november 18th. i think they have more room to run, especially since the fda will decide this august whether or not to approve abilify, the anti-psychotic drug that went
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generic not too long ago. don't take it from me take it from the bangle ceo of alkermes. to hear more about his company and where it is headed, welcome back to "mad money." good to see you, sir. have a seat. until i saw the news about the multiple sclerosis, i just thought that the depression drugs are huge. but let's do ms. because one of the reasons i want to do it is immediately after the note comes out about yours, the biogen people say don't worry about it. this has a much better safety profile than the established $2.9 billion drug out there. >> we'll see. first of all, i have to say happy birthday. >> thank you very much. >> that's most important today. >> i see richard outside. but there is clauses that richard's involved in that i'm involved in that are the same. there is a mutuality beyond the stock. >> as it relates to this multiple sclerosis drug, biogen net tick's drug is a wonderful drug. it does have liabilities in terms of side effects.
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our goal was to make a drug even better tolerated for people taking this drug long-term. >> gi tract. >> gi tract. we made a new molecule. it is early. biogen is going to continue to be the king of the hill for a long time, but we're coming fast. >> i spoke to my doctor about this because i thought it was so exciting. look, you can do a sample for a phase 1, but it may turn out if you did ten, there may be people that have problems. phase 1 is too early to be as excited as i am about it. what gives you the confidence in phase 1 that this could be a better side effect profile? >> this is one of the things that i think alkermes does so well. we have gotten a little bigger. we have the financial resources you mentioned from the cash flows of the other products. we can actually run big phase 1 studies. you saw that with our schizophrenia drug and depression drug. instead of running 15 or 20 we'll run 100 or 200 patients and try to get a more complete picture of the drug before we advance into later stage studies. >> that's important.
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i think people feel all phase 1s are created equal. >> that's exactly right. >> you're talking about, again this is something i have talked about offcamera. the possibility of an anti-schizophrenia drug with no associated weight gain which is not possible. it's not possible what you're talking about. that's what the top people have told me. it just doesn't exist. you're doing it? >> well i don't know if no weight gain ever. >> but you know everyone accepts the weight gain if you take the drugs. >> the thing is the most effective of the anti-psychotic drugs is alancepine. it's associated with a tremendous amount of weight gain. >> and also different to get off of if you want to get off. >> that's right. there is a goal in the science community to make a drug with the efficacy of alanzapin without the associated weight gain. a 300 patient study showed we had the efficacy without the
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associated weight gain. it's always big news. >> big news especially because i have felt that alanzapin they didn't fully disclose that it could give you the weight gain. >> when it first came to market i think you're right. people weren't aware of the weight gain. it was used to extensive by because of its efficacy very clearly immediately -- >> so you're telling me this drug could have the same or better than xiprexa without the weight gain? you're saying that possible? >> we believe it's possible. >> that was a $5 billion drug that we're talking about. >> that's right. that's right. and the reason it's a $5 billion drug, it just underscores the fact that so many people are suffering from this disease. and we still need to make better medicines. >> but everyone else has given up. >> a lot of large pharma has moved away from this field, you're right. we've been persevering and making a lot of headway both in schizophrenia and in depression. >> i have to tell you, if it was just schizophrenia and depression i think this stock would be dramatically higher. if this can be as good as it
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then alkermes should be valued like those other companies. that's my view. >> you're the expert of that. we know that if we make the medicined, you all will figure out what our company is worth. we've been so successful in the laboratories and in the clinic, we couldn't be more excited about where we are. >> i couldn't be more excited about alkermes. a single, a double a triple you add them together you hit the winning ball game. this is amazing things that you're doing. and you know that i know that. >> we're working hard. >> thank you very much. >> that's richard pops, the chairman and ceo of alkermes. this is not done going higher. "mad money" is back after the break. we choose to carve our own path, in the pursuit of exhilaration. the 306 horsepower lexus gs. experience the next level of performance, and there's no going back.
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first of all, i want to thank so many of you who have wished me happy birthday. i'm trying to get to everybody on twitter. it may take until february 11th to get to everybody, but thank you. i'm jim cramer on twitter there is more of a community than i thought. thank you, dick kozlo. all is forgiven on your birthday. a very interesting deal with apple that is going to send that stock higher. pier 1, i can't begin to tell you how bad that quarter was. and jen worth, i'm very, very worried. you got to be kidding. well, thank you. i like to say there is always a bull market somewhere. and i promise to try and find it for you just for you right here on "mad money." i'm jim cramer and i'll see you tomorrow. [ cheering ]
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>> male announcer: tonight on restaurant startup two small eateries want to grow their business by opening a second location. all they're missing is the money. a veteran chef ready for his big break. >> i don't want to be grinding along in my one little place. i want to take the next leap. >> narrator: a young entrepreneur looking to launch an empire. >> we are ready to capitalize on our momentum because our food has an opinion. >> nice. >> narrator: with hundreds of thousands of dollars on the line, will one of them earn an investment from joe or tim? joe bastianich owns a portfolio of 30 restaurants along with eataly, a high-end italian market. tim love is a celebrity chef with six award-winning restaurants and a retail empire. they're both looking for the
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