tv Mad Money CNBC March 17, 2015 6:00pm-7:01pm EDT
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n to what he said three years ago about lbs, similar to mgm. mgm grand will get you done. >> i'm melissa lee. thanks so much for watching. see you back here tomorrow at 5:00. in the meantime, don't go anywhere "mad money" with jim cramer starts right now. my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find. mad"mad money" starts now. >> hey, i'm cramer! welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you a little money. my job is not just to entertain you, but to educate and teach you. so call me at 1-800-743-cnbc or tweet me @jimcramer. listen up the trend, it is not your friend. because there is no trend. once again, we were unable to build upon yesterday's gains. dow sinking 128 points s&p
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falling 0.33%. nasdaq advancing 2.61%. but still, quite a contrast to yesterday's very strong performance. why can't we put together a winning streak? why can't we go up for more than one day? i think there are a host of reasons why we rarely have back-to-back up days anymore. and the reasons are all endemic to 2015. and they're worth going over tonight. because i don't know about you, but i find this market maddening! first, we know the estimates from many companies are just plain too high. it has been such a long time since that was the case. many years in fact. and we don't seem to be ready for it. case in point is intel. last week intel came out and said business was weak in part because of its personal computer sales, and also because of the strong dollar. amazingly, on the day of that hideous announcement and it was ugly -- >> the house of pain.
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>> -- the stock market as a whole reacted as if intel were some sort of minor, unimportant company, as opposed to the biggest semiconductor company on earth. there was no pin action whatsoever. none! i was flabbergasted. in fact, the market enjoyed a decent rally that very day pretty much ignoring intel, intel! entirely. at the time, i figured, okay so maybe intel, by virtue of its lack of inclusion was merely a victim of the secular kind of pc market. but even if that's the only reason for intel's weakness it means there are a whole host of companies that aren't doing nearly as well as we thought going into 2013. sure enough one by one, they're getting hammered! including stocks that have been major market leaders. consider that micron another semi-conductor maker that's tied to the personal computer is now down 20% for the year.
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my micron has been a hugely important stock for this market. it was a gigantic home run. micron roared from five bucks, five bucks, in november of 2012 all the way to 36 this past december before collapsing this year. c-gate and western digital are now down 19 and 13% respectively. wow! everything pc-oriented is having a real hard time getting any lift since intel's bad news. hey, same goes for microsoft, where the estimates are too high. that's another stock uniquely linked to personal computers. hewlett-packard, which is also hostage to the pc. these stocks they have been slaughtered. of course, intel gave us two reasons for its shortfall, not just one, the other being currency. and that is a factor with hewlett-packard, but it's also a gigantic problem and an unfolding problem for ibm, which, i don't know if you've noticed, has been in a serious tailspin ever since its analyst meeting last month and warren
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buffett's endorsement. and the decline has only accelerated since intel's lousy numbers. now, technology is a giant sector in the stock market representing roughly 18% of the s&p 500, and on any given day, tech totally overshadows the rest of the market. but the ying of tech can be offset by the yang of finance. as we know the banks do well when interest rates rise. so unlike the personal computer stocks, where the numbers remain too high this is a group where we're starting to believe a consensus is building, if the estimates are too low. we're on the eve of a fed meeting where many people expect the fed to signal that rate hikes are on the horizon. so if you believe fed chief janet yellen can no longer be patient with low rates, you want to be buying the bank stocks hand over fist. and sure enough that group was strong most of the day, but not strong enough to keep the market in the black and it closed weak at the end of the day. same goes for other stocks with international exposure. here's a huge group that's getting smacked around quite a bit, because estimate cuts seem inevitable, considering how weak so many foreign currencies are
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versus the dollar. on the other hand though we keep hearing that europe might be turning. we got some terrific european auto sales numbers last night. by the way, the autos were the first sector that turned in the united states coming out of the great recession. could it be happening again in europe? i think so. so, if the dollar is up on any given day, these international stocks get sold. why? because we fear near-term earnings reductions. but if the dollar is down we take a look longer term and think, athat! maybe things will get better in the second half of the year. that accounts for the see sawing markets one day up one day down behavior. then there's the gasoline trade. oil had a huge spike from 43 to 53 not that long ago, and many of the company expected it would be doing well if fuel costs kept sinking. we lost the airlines as leaders, and they were terrific leaders for multiple years, thanks to the massive consolidation in the group that made them much less competitive against each other.
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but oil's fallen hard back to 43. and even a little bit below it. that's right, it reversed to around 42 and change after the bell. and the airlines are going higher although not so much higher. why? because now we're worried that the strong dollar might be inhibiting tourist traffic from overseas. makes sense, the dollar's too expensive. on any given day, you have an incredibly inconsistent story to tell. especially a day like today, where oil started down hard then reversed up and then reversed back down leaving everyone confused because we haven't had many intraday reversals, let alone two in one session. then take pharma or more precisely, the two pharmas. you have traditional pharma companies like merck and ely lilly. when the dollar depose higher these companies get sold sold, sold. but then there's regeneron, up another 16 points today off its new cholesterol drug. ors or esperrion.
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positive clinical trial data on that cholesterol pill sent the stock soaring 29% today. an astonishing move. esperion tweeted it was going to come on, but canceled at the last minute because it filed an equity offering to take advantage of the stock's strength. then there's activist a giant drug company that closed on its acquisition of cramer fave allergan earlier today. the key thing you know about activist, it's a growth plan that's not known by the same rules that pfizer or lily play for, which is why it rallied up $2.50 why the old line pharmas didn't do so hot. now, again, before this year before this year started, we didn't see this kind of disparity within various groups. it was very rare to see a biotech diverge from the older drug companies, it used to lead them up. but that's not the norm in 2015. we're back at that $43 level,
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where rich kinder the fave of kinder morgan came on our show and said there's actual demand that we could bounce. last time we bounced and bounced convincingly off this level and the oils rallied hard. investors were all over the oil stocks today betting that we could rebound again. if 2015 plays out as it has, though, i bet tomorrow is a different story. all of these trends and countertrends keep canceling each other out, causing the market to seem totally inconsistent. >> sell, sell, sell. >> buy, buy, buy. >> hey, look it continues after the close today, adobe, giant tech company reported a disappointing number, while oracle reported a strong one. i guess the strife in tech will continue in tomorrow's session. we just don't have for horseoarsman rowing together. some are rowing forward, some are rowing backwards, but they're all in the same darned boat, which feels like it's spinning in circles and going
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nowhere. here's the bottom line. unlike the last few years, there are real cost crunches right now. trends that are often diametrically opposed in the exact same session! the result inconclusive battles get played out every single day. get used to it. this may be the new normal for 2013, at least until one of these trends becomes dominant. but don't hold your breath waiting for that to happen. let's go to john in california. john? >> caller: i am the cramer groupie from sacramento valley, how are you? >> hey, john you're calling me up. we're like the kings. >> don't go there. anyway, we need rain. if you have some water or snow we'll take it. >> i have some water, but i don't think it will do the job. >> caller: okay. well, let me -- me and the cavemen, we got out of phillip morris for personal reasons. it was a long-term play and we made a ton of money on it but
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we got out, and we're going into ge and it's been 25 since i rode a tricycle i'm 62. would ge but a good play for us? some guy said to go for it and we did it and as far as the long-term -- >> a lot of people have gotten their aarp cards during this period that ge has been at 25. i have to tell you, i think ge yields 6.63% and i think it's kind of a bit of a bond because it has a giant oil component that people aren't that crazy about, but it has some other things going well. my case is ge just fits the depiction of the push me, pull you. i think it's stuck. i don't know if it can do anything. let's go to larry in massachusetts. larry? >> caller: jim, congratulations and deep gratitude to you and your staff. kylie's a rock star. may you move from strength to strength. >> kylie, there you go now she's the national best. >> caller: jim, a compare and
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contrast question about three recent secondaries, all priced below the market. >> all right. let's go over these, larry. >> cyberarcs, it's been selling shareholders it would have a nice day today. >> it took out that price. larry! you've got to think a little more positive. it's one of the best days around! well larries, got drowned out by me and my positive nature. i have to tell you that i think this again what larry's talking about, what john's talking about, ge a fight to the finish, and yet where does it finish? exactly where it start ded cyberarc, do a deal it goes down and comes right back. we aren't going anywhere! it's driving me nuts! all right, market seems unable to make up its mind which is why we're seeing these inconclusive battles play out. and you know what, it's going to remain this way for a while. but "mad money" has a dynamite show. actavis sealed a big deal today. i'll see what it means for the
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stock. i've gone grin saddlers on the show. and stop putting all your eggs in one bracket. i'll show you a better way to make it rain when i unveil my favorite wall street ballers out of the midwest. plus party at the pump! don't miss my list of names that could soon soar off of cheap gasoline prices. that's next. i would, if i were you, stick with kraurm! . 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.
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all trying to decide if they want to buy a stock in that red-hot group that's already soared, but might be tapped out or too expensive, or if they want something that hasn't moved much at all. might need to be suspect or sumply left behind for so no good reason. let's consider the most glaring case where leaders versus laggards is playing out right now. the retailers and the restaurants. all which are beneficiaries of the collapse in oil prices that threaten to take gasoline down below $2 a gallon for most of the country. we should start with the logical one, urban outfitters, which i think could be the company with the strongest fundamentals in the retail industry right now. oh this one's a three-legged beast, with three people the teenage apparel, that's always been strong. anthropology, don't know if you looked at it yet, a fantastic new home furnituring look and urban, a namesake that's gone astoundingly from negative to positive same-store sales, in a very short period of time, helped by a really interesting new set of designs. the transformation i regard it
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as stupendous. but portfolio managers asking has urban stock discounted this transformation? urban is up an astounding 26% year-to-date besting all the other retailers. if you'd buy urban, you'd be coming into the retailer with the most momentum in the country by far. but with a stock that you have to believe only reflects a tremendous amount of what's transpired, so let's do the laggard, contrast that with the leader here. institutional favorite macy's. here's a stock that's done absolutely nothing. in fact you know that macy's is down 2.5% for the year. that is a truly sour performance. can macy's get better? of course. however, there's no catalyst. it doesn't report again for a while. i don't see any real growth or real turnaround happening. macy's is an underdog that might stay an underdog. so all things considered when i play leader versus laggard, with these names, i would rather buy a leader like urban outfitters than a laggard like macy's even
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though it's cheaper. because i know that retail investing is momentum driven with these chains that have the best comparable store numbers, rallying the hardest and the longest, and urban just reported its first set of terrific comps in ages, so therefore, i think there must be more ahead. as for macy's it's cheap. darn it, i can't come up with a thesis for buying it other than terry lundgren is a real good ceo and will eventually figure it out. that is not enough to make me pull the trigger. or how about another example of leader versus laggard. ross stores and tjx. here are two very similar offprice retailers that are certain to benefit from all the clothing that was stalled in the west coast port slowdown and now must be offloaded, because the season has been missed. and when that happens, tjx and ross get to stock up on out of season merchandise at a huge discount, as people know to shop at these stores for off-season bargains. now, tjx has put up some terrific numbers over time but in the last quarter, it gave you guidance that wall street didn't
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like. in the meantime, you have ross stores just delivering and delivering and delivering but ross is up 13% for the year. it's a leader. tjx is flat. it's a laggard. ross trades at 22 times earnings, tjx sells at a cheaper 20 times earnings. in this case though i would say you buy neither. buy neither right now, although if ross store comes down especially off an errant fed statement where they take out the word "patient," i would recommend buying this one. absolutely, on weakness because the company has a lot of room to expand, it's only in 33 states and a very easy store to comprehend. what about the restaurant group? this is a the toughest leader versus laggard group i know. there's longtime cramer fave jack in the box, which has been putting out powerhouse numbers from its namesake stores and kudocue qdoba. the darn thinged is up 22% for the year. and then there's chipotle. the best of breed, we spoke them last week.
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this company, though it's actually flat for the year. that happened after some down downbeat guidance. how can you not want to play catch-up with chipotle. i would go for the ladder, unless jack in the box pulls in very hard. chipotle can sustain itself has an investment too, which can't necessarily be said about jack. i can come up with a whole host of leader versus laggard comparisons. cvs versus riteaid. there are really now no easy answers. i would go with the best of breeds here starbucks and cvs. but i respect riteaid as a dynamite but speculative name. the bottom line in leader versus laggard, they're tough calls. but they're the decisions that the big boys being paid to make right now. this is what's going on right now, people. whether to trade down to something that hasn't moved, opening the stock place catch-up on any good news or to keep riding the horse. it's all case by case. that's the way it's always been
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after an epic run. there's no cut and dry answer. but oddly enough it's hard to go wrong with the winning horse, because horses win for reasons. and when they aren't winning, they're very difficult to turn around. stay with cramer. >> coming up "mad money" madness. the odds of filling out a perfect bracket are 1 in 9 quintillion, but there are better ways for you to make it rain. tonight, cramer's raising your investing game when he scouts the best ballers on wall street.
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you know that i am a man on a mission. for ten years, i've been using everything and anything i can find to help teach you to be a better investor. and every year we get march madness. filling out your ncaa brackets is not that different from picking names to fill out your stock portfolio. as a matter of fact, this game's got beta. as part of my never-ending quest to make you a better investor, this year we're playing bracketology, "mad money" style. we're looking at names and using them as a lens to explain why we look some of our absolute favorite stocks. give you some more speculative names, riskier stocks, that might be able to surprise to the
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upside. last too manyime, we started filling out march mad money brackets. in the south region, number one and number two, duke and gonzaga remind me of disney and boeing. in the east nova and they make me feel like 3m and orbital atk. i met the northrop grumman guys, like them. in the midwest, the number one seed is boring university of kentucky wildcats, the least exciting of the wildcats, which happens to be the overwhelming favorite to be the whole darn tourney. if it sweeps the tournament, which everyone says it will it will be the first team to finish the season undefeated since indiana back in '76. if you're betting on kentucky to go all the way in march madness, you really ought to own, not trade, but own, the stock of yeah you got it apple. just like the university of kentucky, apple is perhaps the best, most dominant company on earth. largest market cap of any
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business in history, $740 billion. honestly, what i can even say about apple at this point? the company is a true innovator, with their latest big initiatives, apple pay and the new apple watch. remember that is just a health device masquerading as something that tells time. looking pretty promising. now there are reports that they could be rolling out their own streaming television service this fall which could also have enormous potential, something the market lapped up because it meets the unmet need the desire to only watch networks of your choice as opposed to the whole bundled together smorgasbord your cable provider might give you. remember, it's not easy to send a stock this big up two bucks, but that's what appletv did for the stock today. also just like kentucky, apple's an incredible head coach, ceo tim cook who's had to work hard to earn the respect of wall street. when steve jobs died back in 2011, there were many skeptics who thought that no one could possibly follow in his footsteps. that was a mistake. they doubted him in 2009 they
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really did. and while tim cook is a very different kind of leader than steve jobs the truth is he's done a tremendous job creating value for shareholders, kind of more steve jobs. over the last two years, apple has given you 109% return including dividends, and i think the stock has more room to run. don't forget we just had the incredibly bullish surprise interview with tim cook on last thursday's tenth anniversary show. and he made it clear, real clear, that the apple under his leadership cares about creating great value for you, the shareholder. take a look. >> people that have owned the stock for ten years or so our stock price ten years ago, when you started "mad money," was less than $6 on a split adjusted basis. and so you can bet those people are extremely happy right now. >> there's a good bet. as fabulous as apple, the company, is perhaps the most amazing thing about this story is the relative cheapness of apple, even after its run. here's a stock that trades at just 13.7 times next year's
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earnings estimates, that is much cheaper than the average stock in the s&p 500, even though apple is heck of a lot better than the average stock, just like the kentucky wild kates the case for apple's incredibly straightforward. do not trade it, okay? own the stock, long haul. it hasn't let you down yet. and i think its run is far from finished, just like i hate to say it because i didn't pick them, kentucky is likely to cruise to the crown when they go to indianapolis. next up the number two seed in the midwest is the university of kansas. jayhawks. this team is one of the most classic, iconic names in college basketball, but kansas had a difficult season this year. since they had the toughest schedule in the country, plus because of the number two seed in the same region as the juggernaut that is kentucky kansas has been written off by a lot of people filling out their brackets. hmm, an iconic american franchise that's been written off by many but still represents good value. to me you know what that feels a lot like general motors. the very well-run auto company led by ceo mary barr chronically underestimated, that
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nevertheless had a lot of bad publicity last year thanks to the string of enormous recalls. remember the potentially deadly ignition switch issue and not to mention being in the crosshairs of the justice department. but thanks to the leadership of barr, the company has done a tremendous job of handling the recalls and litigation. and when those sales numbers came out two weeks, gm was the only company that saw a tremendous uptick in sales thanks to their gas-guzzling trucks and suvs. these big gas guzzlers that gm specializes in, they are very much back in style. still, gm continues to have plenty of doubters, even as the stock is only a few cents away from its 52-cents high. it may be an american auto maker, but it has a ton of international business which means the strong dollar is cutting into the profits, while making them less competitive overseas. just today, an analyst resumed coverage o of the stock with a sell, an underweight rating. although, honestly the fact that the stock only dropped 29 cents, that makes me think that it could be a lot more resilient
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than people think. i think the guy wanted to hurt the stock. maybe it's because the same guy is the guy who has a sale on harman, with a $55 price target even though the stock is at 132. head scratching and eyebrow lifting. and of course general motors is very shareholder friendly announced plans to boost its dividend it has a notorious b.i.g. 3% yield, a monster buyback. that tells me that management believes in gm's prospects. and just like kansas i think it would be foolish to write this one off. and despite that strong dollar possible upturn in europe based on the fact we got last night, numbers out from some of the most down and out countries on the continent. how about some of those lower ranked names in the midwest region including number three seed notre dame particularly me since i picked them to go all the way. the fighting irish missed the ncaa tournament last year now they're back in top form. when i think of notre dame i think fx which brings to mind one of the most profitable
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company, starbucks, which happens to be one of my absolute faves. starbucks underperformed the market last year rallied 5% versus an 11% gain in the s&p. but i predict this chain of coffee and tea shops will have a terrific year in 2015 which, by the way it's already up 15%. and then we have maryland, maybe the most divisive team in collegeable. it was the luckiest team in the country this season. they won a ton of games by small margins against bad or mediocre teams. and they won some big games. so it's hard to tell how good or bad maryland is. this is a cult basketball team. you know what that's reminiscent of? tesla! the cult stock led by cult leader/ceo, elon musk. tesla trades on headlines and releases, the fact that people love the car, not the fundamentals. and although it's been pounded in the wake of the latest pretty ugly quarter, the stock could be a real wild card especially given musk is holding a press conference on thursday to
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announce something he says might alleviate worries about so to speak an empty tank. for every ten minutes you spend playing with your march madness brackets, spend five minutes researching terrific stocks, apple, starbucks, general motors. unlike gambling on college basketball, the stock market gives you much betmuch better odds of making money and you don't need to fear that you're going to get knocked out in the very first round. hey, let's go to glen in florida, please. glen? >> caller: hey jim. boo-yah! >> boo-yah, glen. >> caller: hey, big fan of your show. congrats for ten years. >> thanks a lot. >> caller: i wanted to ask you about lumber liquidators, ll. it's been awfully quiet since the bad news. isn't it worth the risk to take a long shot for a small amount -- >> oh, man, long shot. here's -- this is what it's like to own lumber liquidators. incoming! no, thank you! all right. let's get your ball in the "mad money" way. every ten minutes you spend on your march madness brackets
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give me a couple researching apple, general motors starbucks. you should be getting much better results. a lot tonight, including the "mad money," biggest pharma deal in recent history. i'll talk to the ceo of actavis and see what the allergan acquisition can do for the stock. and i'll respond to your tweets. plus, a brand-new edition of the "lightning round" is just ahead. so why don't you stick with cramer!
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here's a company that appears to have discovered a tried and true method for creating value. a serial acquirer. it allowed the company to change its domicile to ireland, where corporate tax rates are much lower. last july, the company closed on its $25 billion purchase of forest labs and four months ago, actavis announced it was acquiring allergan for $66 billion, in a deal where many people thought the company was dramatically overpaying i didn't. yet actavis stock has been on fire since the deal was announced and closed the deal today. it's now the fastest growing pharmaceutical company on earth. they have allergan stripping pipeline along with its great eye care companies. and not to mention a pipeline in a product which is botox, which has gone from being a way to get rid of wrinkles to a medication that treats migraines, overactive bladder, and many other uses we are just exploring that i want to talk about. actavis is a powerhouse and i think the allergan deal will be incredibly valuable to their
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earnings. let's check in with brent saunders the incredibly active president and ceo of actavis. mr. saunders welcome back to "mad money". >> thank you for having me jim. happy st. patrick's day and a good day for an irish company to close a deal with allergan. >> oh, man, you took the words out of my mouth! that was my whole thing. i was going to say, happy st. patrick's day because of the tax status. let's go to something that people really want to know. you know that david pieya had been on our show more than any other ceo, the ceo of allergan and he always stressed research and development. now, you have always stressed productive research and development, but from what i can see, you're keeping that budget the same. how do you rationalize the brent saunders who says listen we've got ton really constructive and productive with the pieya budget which may some people would say didn't produce the results that many people were hoping for. >> first, let me say, david is a first class ceo. one of my favorites as well as yours and he did a fantastic job
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over 17 years. i think the difference in opinion really is around discovery research versus development research and formulation science and other components of r&d. first, r&d is the lifeblood of our industry and it's critical that we commit to investing in that as actavis allergan. what we don't necessarily agree on is the true value of discovery research. i believe that we should do discovery research only when we bring something competitive and special to the table. so in areas like cns or gi we're not going to do discovery research. but in areas that allergan was quite good in, aesthetic medicine or on thephthalmology we're going to stay in discovery research. >> the cover story in "forbes," i have mixed emotions about it because there are some things that portray you as being a
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little too "top gun" oriented versus who i think i know you are. this headline this giant drug firm won't invent medicines, investors are cheering. i didn't hear that from you. i just heard, you'll invent mns when it's right to invent medicines. >> we have been one of the most productive companies in inventing medicines. over the last five years, we have, i think, close to 14 mmes approved as a combination company. which puts us at the top of the list versus anything, any other company. and just yesterday, we had a new nda for vib rant approved and two weeks ago, a novel antibiotic approved as well as a new iud approved that was very novel. so we are in the business of discovering new drugs and bricking new drugs to market. >> now there's -- one of the things that david taught me was that if they could get this dar darpen study right it would be huge. the stretch to $25 a share, which means your stock is about
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$100 undervalued, you're not even including darpen, are you? >> no, darpen is all upside. if we can continue the development program, which we are all optimistic that we can and we will commit to investing it pending good data this second quarter, that's all upside. and that could be the largest drug for both either historic allergan or actavis, ever. >> yeah that's one of the reasons i thought that mr. piat's spending on r&d is going toy pa to pay off. let's talk about botox. we have long believed that botox is a pipeline in itself. we have always felt that it was just, honestly, i'm not kidding, maybe in one quarter of the development of what this company can do with botox. tell me about some of the things you're working on right now that you think botox can do that nobody even thought could happen say, three years ago. >> well i think one of the things that i think most people don't understand is that botox has more sales in its therapeutic classes than it does in its aesthetic class.
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about 55 percent therapeutic and about 45% of the sales come aesthetically. so when we look at areas like migraine and overactive bladder, they are driving a lot of the growth on top of aesthetics. in the future as you just mentioned, there are still so many more opportunities for botox. a big one that we're looking at right now is depression. and we have some early studies that show that the impact of botox on depression is quite meaningful. >> depression? that's the first time i've heard of this. >> depression. >> really? i'm not kidding. i know this drug. and i was thinking about it for pelvic, for sweaty palm i was thinking about it for a bunch of nervous conditions, but i had never thought of it just outright as depression which we know is the biggest unmet need in america today. >> it is. and as you know, it's one of our core areas. >> right. >> our legacy with forest goes back to lexapro and today we have a whole bunch of drugs for depression. so if there was ever a company that could take botox, it's this new combined entity.
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and again, it's phase ii studies, but they look encouraging. and we're going to continue to understand how we take it into phase iii. >> why do you use the aspirational earnings per share. you are definitely growth pharma, but a lot of what you're doing is putting tremendous pressure on yourself a $25 number. and you're growth pharma without using that number. why put a gun to your head like that? >> so i didn't view it as putting a gun to our head. when we look as putting that $25 out, that was based purely on the deal model. the deal model had some fairly conservative forecasts around the cost of borrowing, which we did much better with our share count, which we did much better because the stock went up as we sold some of the equity for this deal. and it also had no revenue synergies in it. and so, we believe that the strategic combinations of these two companies create huge opportunities in latin america or europe where we can leverage the company's infrastructure around the world. so we feel pretty confident with an aspiration of $25, as we now
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have closed the company, we'll work to put formal guidance together in a few months and then we'll come back to you and wall street and confirm that guidance. >> well thank you, but it's not the luck of the irish, it's clearly the skill of the irish. this has been an amazing stock. it's not stopping here. brent saunders president and ceo of actavis, thank you so much for coming on the show. you're the man of the hour. thank you. >> thank you, jim. >> go check the conviction buy that goldman sachs put out, it's a terrific note. it makes it very very clear to me that there is so much more ahead. if you valued this stock like bristol myers, you would not believe how high it can go. i'm not even going to share. "mad money" is back after the break.
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it is time it is time for the "lightning round" on cramer's "mad money." what is that about? that's about rapidfire calls, don't know the caller or the stock ahead of time. when you hear this sound, then the "lightning round" is over. are you ready, skee-daddy? time for the "lightning round" on cramer's "mad money." i'm going to start with jim in florida. jim?! >> caller: hey, jim. congratulations on ten-year anniversary. >> you're quite welcome, thank
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you. >> caller: and happy st. patrick's day to you. >> definitely, definitely. >> caller: yeah. my question is about zag. >> zag's making a bit of a comeback. i think it's a commodity, but i recognize the strength in the stock and i think it's got a couple of quarters where it's going to do the numbers. i'm not crazy about it. i need to go to louis in florida. louis?! >> caller: hey, jim. thanks for taking my call. i own a company for about six months, jenco solar and i would like to keep it for many years, 5, 7, 10 years, what do you think about the industry and more importantly, jenco solar? >> i'm not in favor of the industry if i had to own one, i would own first solar. i think oil will be down for a long time and these stocks trade off of that and that makes you not want to own any soft solars. first solar is my favorite. mike? >> caller: boo-yah, jim. really need your advice in the short-term where do you see jpmorgan? >> i think rates will go higher over the course of the year therefore you want to own
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jpmorgan, but my charitable trust that you can follow along owns wells fargo, which i do like more. let's go to florence in new york. florence? >> caller: oh, jim, your enthusiasm is captivating. i think we might revisit aoncorda therapeutics. >> it was hot and it cooled. ron cowen is bankable. you buy it and pull the trigger right here. let's go to terry in indiana. terry? >> caller: boo-yah from lighthead, indiana. >> nice. what's up? >> caller: well, i gave my cat the boot several months ago, and at over $105 i thought she was a little fat. last week i saw her on the street at less than $80. friday i took the cat back at $79 even. should i keep her or is she going to be a real dog for a
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long time? >> i don't know, man, i think you got a like you know got a canine there. i don't like caterpillar. it is down so much that i got to tell you at this point, it's just not worth selling. but, boy, talk about a company that is just not hitting the numbers, not executing. in other words, stay away. i'm not done. i'm going right now to rob in new york. rob?! >> caller: cramerica. >> what's shaking? >> caller: my stock is tj therapeutics. >> we like him! we like mike wise. he came on and told a pretty good story and we recommend the stock. please check the files if you don't remember tg. can we go to ryan in tennessee? ryan? >> caller: hey, jim, a big boo-yah to you from the city of blues. >> nice. >> caller: jim, do you have any increases in assets under management. what are your thoughts on health equity, hty?
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>> let me do a takedown on health equity. kind of interesting because a lot of people, small business are interested, but i don't feel like i can opine on it until i do more. which i want to do because that's an interesting idea and i thank you for bringing it up. and that withladies and gentlemen, is the conclusion of the "lightning round."
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let's get to some of the tweets we've been sending @jimcramer #madtweets. our first is has your position changed on a short of herbalife or is it stay away from the battleground #cramerq? there's a very rich guy who wants to take the company down and says he's doing it because it's the right thing. i don't want to go against that guy, because as far as i'm concerned, capitalism is a strange business where someone, a hedge fund manager, can actually put out a lot of negative stuff says it's true and destroy the company. why do i want to buy -- am i going to go buy the stock? the guy has billions of dollars. what's the point? here's a tweet @cleave mallory, who asks @jimcramer does pbr scandal spell good fortune for american petro companies? no it's just the opposite. you can have a ripple effect where people who are involved do get hurt and it's going to bring
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down olive oil, because they've got to pump like mad. whatever they can pump they've got to pump because they've got to raise cash. here's a tweet from @alexsmith who wants to know q, is box going to make a comeback? it's a long-term story about enterprise adoption of storage. i think it's a good story. i think the company has to change the narrow tyative when they do the next conference call. here's another one. will citi ever recover enough to again offer a great dividend? not in the short period of time but i think citi is one of the most attractive bank stocks there is and i would want you to own citi if the fed is going to raise rates, which everybody seems to think will happen at least by year round. @wallaby @wallaby2222 wants to know, what would you suggest to do with yelp shares with a average about
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$10 higher from here? okay? here's the problem. i do not care where a stock is coming. i care where it's going. i don't care that you're down $10. the problem is that yelp and that last quarter has really sputtered. i think that yelp has to regroup and come up with another business line. it has to do something to get its energy back. it was not a great quarter, like i expect from yelp even though yelp will tell you it is a great quarter. next we've got a shout-out from jack mort who says hello @jimcramer like your style with the buy and hold with chip and the eagles. have a green beer tonight to celebrate the eagles. i have some green beer and some soda bread tonight. i have to tell you, i'm a believer in chip. i'm tired of the detractors. we just took the most player dallas had. so instead of having two ws for dallas against the eagles well you figure it out. stick with cramer.
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over 20 million n kids everyday in our country lack access to healthy food. for the first time american kids are slated to live a shorter life span than their parents. it's a problem that we can turn around and change. revolution foods is a company we started to provide access to healthy affordable, kid-inspired chef-crafted food. we looked at what are the aspects of food that will help set up kids for success? making sure foods are made with high quality ingredients and prepared fresh everyday. our collaboration with citi has helped us really accelerate the expansion of our business in terms of how many communities we can serve. working with citi has also helped to fuel our innovation process and the speed at which we can bring new products into the grocery stores.
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they're going to have to raise rates very quickly, what will happen is the market will sell off baldly because that is a, they know nothing approach. yes, i do believe that we are at the cusp of perhaps making a terrible mistake, which is why i come out here and really just say, fed, don't screw it up. i like to say, there's always a bull market somewhere, i promise to try to find it just for you here on "mad money." i'm jim cramer, and i'll see you tomorrow! >> male narrator: tonight on restaurant startup they're small-town teams with big-time ambitions. a brother-sister duo looking to jolt the jersey food scene. >> there's a handful of restaurants in new jersey that do it right. there aren't enough. >> narrator: a couple hoping
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to expand pennsylvania's palate with a new gastro pub. >> we want to bring that beautiful taste of brooklyn to our small town of pittston. >> 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 next food visionary, an
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