to do that trade. >> wow. >> yeah, alibaba. i think you go long premium because i think it has the potential to move if china mania continues. >> looks like our time has expired. i'm melissa lee. for more optionslong. >> ali basketball my mission is simple. to make you money. i'm here to level the playing field for all investors. there is always a market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends, i'm just trying to make you money. my job is to teach, coach, put it in perspective. call me and tweet me @jimcramer. there's nothing like putting some big, bad events to bed.

behind you which is precisely what we did with the three key fulcrum issues we talked about yesterday. we said the headwinds would be an all-time beating in the payroll report. once these heavyweight concerns were in the rearview mirror the objects turned out to be less big than we thought. a sigh of relief was breathed for the market. dow only declined 56 points. s&p dipped 1.4% but the nasdaq did 1.8%. it was resolved! not really it was just kicked down the road with a vile lack of leadership. it's holding the world hostage, frankly. still, yesterday we feared with greece an imminent default. today we just fear a less imminent default, one for a few weeks from now. i'm putting in the category of better than a sharp stick in the eye.

second opec voted to do nothing, no cuts no increases. even though u.s. production will increase this year despite the declining rate count, i thought they would put more oil out to try and stop us, but they didn't. we're just getting more oil out of the ground with less cost because of american technology. given that oil has managed to work its way back from the low 40s to the high 50s, this idea they didn't put out more was news to the american oil companies. they flew today and most of them can earn a decent return at this mid-50s level. remember, this oil and gas group has disproportionate power over the entire stock market. because the investment bankers have pumped out dozens and dozens of oil and oil-related issues in the last three years in order to take advantage of the shell boom. when these issues wilt rightly or wrongly, they cast an amazing paul pall over the whole market. at moment oil seems to be at an

eke equilibrium. finally there was the employment number, which was extraordinarily strong, too strong for the stock market because it stirred fears of imminent rate hikes and drove interest rates even higher than they've already been in. there has been a pretty significant run in rates. and to congregate 280 jobs a month would be one that you would think would support interest rates, even in a vacuum. but we're not in a vacuum. we're part of a world economic order that wants our currency to be so strong that it becomes very difficult for us to sell our goods overseas versus our competitors. a rate hike could only make that situation worse. travel spoiling travel and leisure and other subjects which i'll talk about. still, we can only go dead ahead and make some decisions.

there are some compelling earnings next week. for starters sears holding starts monday. they're in the process of unlocking the value of the real estate it owns and it's enough to obscure a hideous performance of a company that's been sellingnding tons of traffic every year to lowe's and home depot i. i predict another crummy quarter for sears. no one seems to win these days. we're also going to hear from bio-deference labs. i know many of you own opco and it's been such a huge hit for the show. let's find out how bio-deference really does it so i can explain the merits of this deal next week. remember, it's a stock for stock offering. that's what happens. they're selling opco common

stock and buying bio-deference in order to profit from the spread from now until the deal closes. on thursday we get results from the ultimate battleground stock, and that is loo-loo lemon. earlier this week refeatured an extremely technical analysis of lui-lui's chart. we got an analysis that says research is quite good. i think the stocks had a big move and we took advantage. i think liu-liu has become frankly, a crap shoot. five up five down. frankly, that's too hard for this guy. then we're going to get the first nulzannuals meeting from cisco since dan chambers announced he would be replaced in july. i got to tell you, i think this is a very important meeting because robbins has hit the ground running, putting in his

new team and they seem awfully hungry. i bet you're going to see some big partnerships and talk of a lot of new clients, especially because cisco's networking equipment has a built-in cyber security equipment which people tell me is superior to everybody else's. of course, i mean this tuesday, not thursday. anyway, i've seen lots of cisco's competitors in disarray for mergers and split-ups. it is the right moment for cisco, and i think chambers has given robbins a good hand. from what i can tell robbins is a bit of a tnp kind of guy. he's taking no prisoners. i would not want to compete against this man. we hear from box on wednesday, and the last time box reported frankly, the information stores company, it kind of laid an egg. it hadn't communicated the right share count, the conference call was defensive and confused the narrative was just plain lost.

after listening to it i thought the call was about as amateurish as i have ever heard ever since i became a full-time drama critic of the art of the conference call. i hope box has called in some sort of pro, someone of the same caliber of a matt sorkin and matt wiener. this power report at men's wearhouse has become quite tough. by the way, the shirt my wife bought me is hideous. i put the shirt on and she goes where did you get that shirt? i go you gave it to me. anyway on thursday mr. bojang bojangles. then again, popeye's louisiana kitchen knocked the ball out of the park and the stock did

absolutely nothing. we also get earnings from res torsion -- restoration hardware, and they could hire that guy from "breaking bad" for box. its last call was set to music, had a tremendous lyrical quality to it. people talked lovingly about 2016 to be a bridger. i want you to buy some before and some after. if you're a trader if you're a flipper, then get the heck out of it. if you're going to own restoration hardware it is about a long-term view. i got the catalog in the mail from restoration hardware and i could even lift it which means my trainer has bulked me up or it wasn't as heavy as the one that sent me to the chiropractor last year. this one looks terrific and the

stores do too. totally appropo. when my daughter and i went near one, she wanted to go inside and look. dad, it's more like a gallery. bingo. i know everything is smoking hot. i want to point out it's smoking hot without any inflation, which would make the super freaking dollar even more of a freak-out for exporters. watch, i bet it will be right. broken doom creation could easily be turned into a not so hot economy with the rate hike. that's what i fear i'm sorry. a super freakin' dollar hurts. we got through the big event of the week -- we got through three, actually -- z it'sand it's

a relief. i say it's about darned time. if there is one more slaughter, we'll have a tough slog as long as the questions with sam in illinois. sam! >> hey, jim, thanks for taking my call. >> reporter: myself my kids we love you, we learn from you. we watch you every single day. >> the kids watch me. >> i know we're talking oil stocks. it's -- u.s. production higher this year than last year. camp opec it seems to me no ideal flavor. it also seems like we'll get a do we want to know.

we'd like to know where would jim kram early start a position in eog. >> why? because i share with you the idea that could go oil, i don't think it's going to the worst shatters of the book. i don't think eog is going to be all the way back to '83 or '84 because it will not go back. they had so much cash flow they didn't have to pump out oil unlike the other guys who just needed to pump out oil to meet their debt not eog. eog is really good. finally, the super freaking dollar. keep your eyes on the super freaking dollar. if it goes high we're in for a tough week. all that really matters, guys is the super freaking. i got the sweetest named health care right now, and this might be taken out for drug premiums and not the race itself.

plus they're on a shopping spree. 12% in tax. i stay you stick with kramr! follow jim cramer on twitter. have a question? hash hash jimcramer. or give us a call at 1-800-743-cnbc.

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last night i introduced you to alder bio-forma. they make rheumatoid arthritis drugs. that's a classic example on why i like to speculate on bio-tech drugs that yet have nothing on the market. it can be insane huge even. but the downside it's nothing

to go from 30 to 40 to 50% in the matter of days even hours. there might be an unfavorable decision from the fda or some panel. they don't trade on sales because they have no earnings. they don't trade on sales. these stocks are on hopes and dreams, hoping they get approved by the fda and rack up a ton of sales when they actually hit the market. in practice, that means it's based on clinical trials and health care presentations, and yes, takeovers. that's why when you're speculating on a development stage biotech stock, you've come to the right place because you really need to do your homework and be careful to get burned. so tonight, in order to make you a better investor i'm going to profile my favorite name in the group because it's speculation friday.

and i am talking about -- receptos which is biotech focused on immuneology. one drug that could fight potential diseases. they've had a monster run like so many of these have. they sold last year at $14 per share. i first recommended receptos when i first heard of it this january. in less than six months it has given us a fabulous 55% return. that said i still think receptos is worth owning up here why? because even if the stock jumped up $7 today, even at these levels it's down $10 from its closing high on april 1st.

really though it's all about the potential league candidate which might potentially have locations. some of us might be worth billions. this club could treat multiple sclerosis. right now sgrrkszatamon is in a testing phase. currently the leading pill for ms is nevarxus' glenya. recepto's drug works at least as well as glenia but with a cleaner safety profile. you're going to go with that one, and that one looks like zanimate or you have to understand, even if everything

goes smoothly, the drug won't hit the market until 2018. guys it's only 2015 which is why this drug is going to flow on clinical trial data. we're moving into phase 3 trials. these are why stocks quad rupe he would last year. current space in this drug is all satisfactory. it wouldn't surprise me if all sorts of crohn's diseases and others combined are worth money. in addition, ozonamide has a formation for a type of allergic inflammation of the esophagus, which is an orphan disease with a currently unmade drug.

the drug could face. this one at development stage. in other words what makes recept rg s. their drug candidates for disappointing trial results were bad side effects. a witness would say, lost four blak et cetera four days ago. >> but, which dramatically marked stop. second, it's both safer and easier to take than the current drugs for multiple sclerosis. put it all together and i bet receptor will be able to charge more for that drug which means the peak sales are too low, possibly way too low.

third, investors in these early stage bioteches handle any kind of delay and they want consistency. reception is starting to file. people talk about how well its tests go. i don't even race capital after raising raising. there is moerp enough cash. they need catalysts to know the stock is going to keep getting higher. we know we're getting to trial results for crohn's disease next year. we're also getting phase two results from the company's esophageal drug the first time

next year and the trial results on approximate behalf of well-spaced catalysts over the next two years. that's also really positive. and, again, there is the ultimate catalyst. a takeover bid. i wouldn't recommend receptos forteover situation if i didn't like the fundamentals. but it's gross star. i could easily see receptors. any one of which could afford to pay a huge premium for such a juicy asset. let me give you the bottom line here. if you want to speculate on a development aged which, along with the violin may be the

best. i love that speculation, including the next edition to my health care hot list, and i will unveil it next. plus i have four friends. can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing?

♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ the answer is yes, it can. so, the question your customers are really asking is can your business deliver?

conventional wisdom instead of fed rate hike is now coming and probably coming sooner rather than later. sadly, i think conventional wisdom may be right about it. the problem, as i've told you repeatedly, is there will abe terrible time for the feds to raise interest rates and what is suggested is when rates go up so does the dollar. blame the super freaking greenback. ♪ super freak, super freak ♪ >> yet even a stronger dollar and you better believe it's going to cause a real slowdown in the u.s. economy. which is why i'm devoting most of the show and a good part of this week to focusing on health care stocks. a local environment post said the best stock tends to be

health care especially health care. my favorite names in this group -- what we're spending with medical care is dangerous my age. the baby boomers starting to become and it means more negotiation for held care. that's why i told you i plan to listen to a dozen of these health care names as part of my hot list. we covered walgreen's and cvs, two u.s. pharmacy chains in the united states, with more drug business than let's say, pablo escobar. and tonight i'm highlighting the third and the last of the drugstore chains rite-aid.

you may wonder how in the world i should recommend walgreen's cvs and rite-aid. you must understand i like these stocks for very many different reasons. so what is the deal? what's the argument for rod. write it as a multi-year story and a few months ago the company announces getting in the cost containment game with its $2 billion acquisition of invision rx. this deal was brilliant, by the way. it's a deal that kind of feels like the miniature version of cvs' genius care division nine years ago. the reason i'm adamant right now about rite-aid is stock has pulled back 4% in the last few days. i'm not playing this monthly sales game. that's my -- this would have

been a terrific plan for the past two and a half years as there have been occasional bumps in the road. but the company makes us turn it back around right on track. the stock feels like it's thawed out in recent months. i'll tell you why i think it's necessary. there are 3500 locations, especially in the east and the west. at this point no one can deny the rite-aid's turnaround is for real. it had rig or mort is both of them. with stock that attributed to the dollar and change where is that rite-aid. there it is! in the old days rite-aid had a dried-up balance sheet and not

much to look forward to. but in 2013 the company actually started turning a profit and they've. it ended in the recent quarter. rite-aid has seen a dramatic turn in its same store sales which increased by 22% in its fiscal year up to a pitiful 7% increase from the year before. with most of that coming from a 5.8% increase at the pharmacy part of the store. of course the sales were nothing to write home about. that's why you got a chance to buy it. they were up 2.9%. that was disappoint be for me versus the 3% increase i was looking for. but rite-aid doesn't have the smoothness of a cvs or a walgreen's. not yet it does. it will. the fact is this company led by ce ojon stanley has executed on

a phenomenal comeback in recent years. remember the carnival corp comeback? this is like that. i believe in its ability to keep executing. plus the company still has ways to go before the turnaround plans are finished. the thing that can propel the next rite-aid of cvs. they'll deal with chip closings in the next couple years and that will give. it will give 21 million lives and 5 billion in revenues. the fact is this is one of the last remaining pbrs out there with any skills. people will spend more money to buy their drugs from cvs pharmacies. it also may help us in our

business. larry merlot that guy has a fine merlot. yes, rite-aid is more expensive than cvs. unlike cvs and walgreen's, rite-aid has room to improve, because the earnings could come up bigger in the later years. i love the pharmacists, jury ard and tom, who treat me well that could be considered a legit takeover cost. >> they're better on companies than in writing. but the stock for ride came until and even more with a $7

handle if front over tt turbulence story that always seems to bounce back whenever it retreats from this historic run. can i go to can thinh. >> hey, joe. thank you for taking the call. >> thank you. appreciate it. . let's rank 'em. humana number one, aetna number two, cigna number 4, united health number 5. that's the way it is and that's the way i'm keeping it. walgreen's and cvs are better run companies. i'm accepting that, i'm stipulate lagt stipulate stipulating it. financials financials. a look back at the week.

you better stick with cramer. you wouldn't take medicine without checking the side effects. hey honey. huh. the good news is my hypertension is gone. so why would you invest without checking brokercheck? check your broker with brokercheck.

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at a moment like this one

where it feels like the fed could raise interest ones, werates, we need to search for a company with excellent growth. that's why i'm choosing health care stocks of various stripes because health care is one of the consistent groups out there. if the economy seems shaky, money managers will pay a pretty price for consistency. but you know what? you know what's even better than health care companies? health care roll-ups. we've seen lots of roll-ups in many different industries, but this concept has been most firmly embraced within the health care sector. a number of these have really separated themselves from the pack and emerged as top tier players. again, the great thing about this model is serial players can keep growing. that goes double if they're operating in a secular growth

secular like health care. tonight i want to share with you my favorite role like everyone else must be so jealous of the roll-ups. these are all basically pharmaceutical companies. i want to take them slowly because they're so exciting. activists, horizon forma, malancrud and valium. when you make a new product. drugs typically last around 20 years. because it takes such a long time to develop those drugs and get them to the fda approval process, in reality, the pharmaceutical company will only make money in a given fraction of that time. once the patent expires, you know most of the drug's revenues will vanish practically overnight. that's why drug companies can't

afford to rest on their laurels. they're like sharks. they have to keep swimming forward or they'll die. in the forma industry companies are constantly searching for new sources of revenues. one way of doing that is by investing in research development to invent your own new drugs. the roll-ups will repeatedly get their hands in your pipelines in order to fuel future growth of self-help. they've done tax inversion deals. ♪ hallelujah ♪ >> changing the domiciles in the u.s. to foreign countries with lower tax rates. after the obama administration created new rules last september, the tide of these inversion deals slowed. we already have a group of drug companies that pay their taxes overseas at much much much lower rates. for example, my four favorite

activists are all domiciled in ireland where the corporate tax rate is just 12.8%. that means it's more advantageous of these to pay in corporate tax companies. as soon as the deal closes it will be more profitable because there's a lower tax rate. often big pharma companies will establish relationships in the field, and they'll do a better job selling a given drug than a smaller company that's less connected. with that in mind, let's tick down my four top health care care roll-ups. for starters there's activists, act, which will soon change its name to hgn. activists have been on fire basically trading higher and

higher for ages. this is a big company. 100% over the last two years. the secret to the success? activist is the gold standard when it comes to farmr roll-ups. his name is brent saunders, which is why we own this stock. the man has gained. the roll-ups makes lots of small deals. huh-uh activist thinks big, likes to make big high quality purchases. over time this model has proved to be quite successful in a brilliant tax bergs deals. in february of last year the company announced it's buying the $25 million, but brent saund

perz. perz. al ler began, 56 billion. for many they thoughtal ler began was an all-pay, but the stock is up 30% since then with numbers that are gigantic in the off years. i thinkaler gags is work out. we make this company a special reform. thts the. it trades at just 14.2 times the earnings like it's up 94% since we spoke to the ceo and basically stopped the interview in the middle to say, holy cow, this is a good stock. i think of verizon with about a $5 billion market cap, sort of an inner versions market and activist. the lehigh iron pigs verizon

has a similar mindset. the company targets unmet medical needs across primary care, morgan care or entire remember and then they sell their sales much faster than anybody expected. by the end of march, they thought it was behind to gain more drug exposure. a traffic tailored hard with that stigs. and once this family is flush with cash. plusment fmt growing like a weed. i also like one that i feel like nobody else likes and that's wrong. it's called malanckrot. mlk is a spinoff from another one two years ago.

ever since becoming an independent company with a really rock star management, melankrot has become one of the most inquisitive viewers ever. very day his company asked for an acquisition with questcort. how about this. 107% gained since that acquisition. i hope you listened to me when i told you to buy it and not sell it like some of the for $2.3 billion and diagnostic radiology into the. i know this is tramg the best but it's absolutely untested. then there's the most kvrs at

all. the original farmer role with a sock kerr. they have the reputation of buying drug companies and then slashing the retail budget to the ground in order to boost their margins. while some have criticized this model, there is no denying it works for valuing shareholders. a lot of people are jealous of this company. have you noticed the theme here? very inexpensive stocks with high growth. what's not to like? here's the bottom line. value is the one i'm most -- i'm skeptical of value, but the other ones wow. in this environment where a rate hike could slam the brakes on the economy. that's what people will happen after we get the rate hike. i think these roll-ups i'm setting you up to win is a sweet spot. activists, a proven winner. it's the best breed of roll-up.

i hesitate to call it a roll-up because that does have a taint to it. it's all about quality over quantity. malankrot is a spinoff with a huge relevant growth and violent, our type of roll-up. any one of them could work in the post rate hike environment. "mad money" is back after the break. leave early go roam sleep in sleep out star gaze dream big wander more care less beat sunrise chase sunset do it all. on us.

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>> let's look at this company for small cap web. i thought it was too small, but it speck so much. neonatal non-invasive care.

this is the kind of company people are wigbuying a lot. i kind of like it but it's up a lot. >> what do you think of chesapeake energy. >> no come on we have to play with a full deck. barbara in new york. >> caller: jim, i would like to ask you, and thank you for taking my call about caterpillar. >> caterpillar is trouble here because it's too linked to china which i think is slowing down. however, i went to pull the trigger at 82, 83. i want more upside. let's go to nick in indiana. nick. >> caller jim a big boo-yah from indiana. >> it's sune i prefer sune to

this one, but you have a winner in the solar space. this is the lightning round. >> announcer: the lightning round is brought to you by tg ameritrade. >> can you believe this amazing turnaround in gamestop? huge bricks and mortar video game retailer had gone into long-term decline. a year ago people seemed to really wash their hands of gamestop not to mention ch cheeto's. high spend gamers like me right here, i'm a high spend gameerr. look at this stuff, i got all the acoutrements.

why don't you stick with cramer. for each feature we release. we read about 10,000 suggestions a week to create features that as traders we'd want to use, like social signals, a tool that uses social media to help with research. 10,000 suggestions. who reads all those? he does. for all the confidence you need. td ameritrade. you got this. ♪ ♪ hp instant ink can save you up to 50% on ink delivered to your door so print all you want and never run out. plans start at $2.99 a month. right now, buy an eligible printer and get three months of free ink with hp instant ink. available at participating retailers. the most affordable way to print. hp instant ink.

can they give us any leadership. the things rallied hard today and you have to wonder if they can pave the way to a higher place. the financials can be excellent leaders. that's because when the banks went higher, it typically meant

the economy was getting healthier. if banks went well then housing could do well retail autos, residential, non-residential construction, all the things you need to keep the economy humming. however, i don't see it that way this time. these days they are total interest rates going higher without any sign whatsoever of actual demand of money. the bullish action in the banks is predicated by the full funds and into and out of u.s. funds based on what the fed is going to do. the only line of a bank's earnings report that matters to this is how much a bank makes fewer deposits. that's not a sign of anything that adds to more lending, in fact, it's the opposite. anything about interest rates going up is just plain bad for the economy. today we heard talk about a stronger employment number we got this morning. the economy can easily sustain higher rates. we have excellent auto sales coming in with rebels.

all are noticeably weaker because of the freaking strong dollar. a rate hike -- ♪ super freak super freak ♪ >> the banks in general have no real desire to lend and are terrified of the regulators whose wrath will be in part because of upward loans. today they want to lend to those who don't really need loans. others need not apply. wow, the economy is creating more jobs let's go make loans. if that were the case we would say the banks would have perfect pin action and their stocks would reverb rate throughout the stock market. they go higher everything else particularly the dollar sensor stocks, food transports manufacturers will go lower. that's an optimal situation. take heart that a part of the stock market rallied hard today, but don't confuse the part with the stronger economy. if that were the case we would

see the transports humming, the industrials doing better. that is just not happening. leadership is an empty suit here. until the dollar gets weaker these banks are generals without an army and that means we simply cannot take higher ground with the financials below. stick with cramer. only vectorvest mobile analyzes ranks and graphs... ...over 16,000 stocks worldwide, everyday,... ...and gives you clear buy, sell, hold recommendations... ...on every stock; anytime, anywhere. vectorvest mobile comes free with your vectorvest trial. get it now! visit vectorvest.com/mobile to get started

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i always like to say there is a bull market somewhere. i promise to find it here on "mad money." i'm jim cramer and i will see

you monday! >> narrator: in this episode of "american greed"... >> that's right. we're breaking the [bleep] law. >> narrator: scott rothstein always the life of the party, a guy who wants the world to love him. >> we're lawyers. if we're not gonna break the law, who is? >> he was a larger-than-life type of person, very charismatic. >> narrator: he is raking in hundreds of millions of dollars. >> you saw scott, you're thinking money. >> narrator: and he spends it like it will never run out. >> he amassed over 200 watches a hundred suits, 9 or 10 cars at any one point in time, a number of homes. >> narrator: but the money does run out, and scott rothstein is revealed as the mastermind