tv Mad Money CNBC September 2, 2015 6:00pm-7:01pm EDT
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break above 50 okay to get back in the pool for u.s. stocks. below 40 lights out baby. >> i'm meltsa lee thanks for watching see you back here tomorrow at 5:00 for more "fast money" 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 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 save you money. my job is not just to entertain but educate and teach you. call me at 1-800-743-cnbc or tweet me @jimcramer. after today's positive session where the bulls seemed to at last find their footing, the dow gaining, the s&p climbing,
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nasdaq climbing 2.6%. i found myself wondering did we just see what's known as a successful retest of the lows? or is this the calm before the next storm? was today's rally a moment of ra rationality or were sellers exhausted? these are reasons why you can have an up day. why don't we tick them down because each one can put this rebound in context. first, when a stock or the whole market goes down viciously and rallies back to where it was before, most technicians -- and we know them as people who look at charts -- expect what's known as retest, meaning then a retreat back to test the previous lows is going to happen. the lows that we saw before the rally. remember? back monday, tuesday. to some of you i worry. i know this idea might sound silly. the fundamentals believe that the action in stocks is controlled by the health of the underlying companies, not the
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pictographs, but in a market as emotional as this one, sometimes a touchstone will do the trick. we've seen this occur time and again with bottoms in the stock market. you'll hear terms like "didn't violate the low" and recognize that the pundit in question is talking about the charts of stocks that didn't go through the floors and might now be basing. which is why i do that off-the-charts segment. i want you familiarize yourselves with these terms and while i am a fundamentalist at heart, i do pay attention to these things in order to figure out when i'll get a chance to buy the stocks i like at low prices. maybe the lowest possible before a bounceback. so let's take yesterday's hideous session. as i mentioned the other day, i spent a lot of time going over the chart this is weekend trying to assess what levels look interesting to start doing some -- because i fully expected
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these levels to be revisited based on what's known as the retest pattern. in other words, i expect the market to repeal the gains we had wednesday, thursday, friday. so what i did was i had the "mad money" research team run me a roster showing the low of each stock in the s&p 500 which di it was reached. some of them were reached last monday and others last tuesday. that was the dispiriting day where the market broke down in the last few hours of trading after being in the black for much of the day. i then strapped myself in like the fighting chairs where you're fishing waiting for these stocks to start retesting, possibly violating last week's lows and bringing them in. but guess what? despite the hideousness of yesterday's action, do you know only 77 stocks took out their lows from last week? do you know that only 30 breached their lows by more than 1% and most weren't very big at all. now, i wasn't looking for this. i was searching for individual stocks that i thought might be interesting for the charitable
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trust, maybe to highlight them on "mad money." at the end of the day i realized after going over each individual stock in the s&p 500 i said, geez, many chartists are going to react positively to yesterday to the fact that we made so few new lows and they would feel'm bo -- emboldened to buy. shower enough, regarding yesterday's selloff in china with no news, the technicians seized control. that's probably the reason why the average has snapped back today. another gauge i'd like to look at is sentiment, seeing if people are too negative. i measure sentiment in two important ways, first what's known as the standard & poor's proprietary oscillator, which i pay for that. measures how overbought or oversold we are. second with the investors intelligence poll of newsletter writers. neither indicator is perfect. so few are. last week, the oscillator hit minus seven, the most oversold since the averages bottomed in
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2011. that was after that horrendous 17% decline caused by the debt ceiling fiasco and the woes of europe that i talked about yesterday when i held up the "wall street journal" from october 4 which turned out to be the bottom then when everyone was so bearish. now, i don't think the circumstances that have caused the latest correction are nearly as dire as the ones i've described back then last night. so i took the reading of the oscillator as a reason to do some buying for my charitable trust which you can follow along at actionalertsplus.com where we put money to work. any time i see a reading below minus five on the oscillator i generally feel there's too much selling pressure and we're do for a snapback. however, like i said, nothing's perfect. in the dark days of the financial crisis, this gauge totally fail med, oscillator going all the way to minus 20 and higher. that happened in 2009, this thing just didn't work. so it's not a totally reliable indicator but so far it's worked
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pretty well in this new age because that rally from last week's lows when we hit minus seven was nothing short of phenomenal. the oscillator is no longer assor sold as this evening making this market more vulnerable so i don't want you to be as positive as you would have been in a more strained level but when we got to that minus seven, minus five, it meant people were getting too negative. the investors' intelligence newsletter poll, which comes out on wednesdays, isn't scientific, either, and it involves only checking in with a small amount of people who opine about stocks for a living. i do think, though, it works in extremes and we are in an extreme situation as -- get this, this was shocking to me -- the number of people who describe themselves as bulls, those who like the market, clocks in as 27%. that's the lowest level of bull since march 10 of 2009. that date ring a bell? less than a week -- less than a week around the -- before the generational bottom. remember that moment, that moment in the beginning of
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march, in 2009 we thought everything was just -- all held was breaking loose? that was the point people were the most negative. hmm. extraordinary, right? even more negative than it was in 2011. and that, too, has emboldened those who followed those classic contrarian indicator. why contrarian? because if there are so few bulls and by extension so many bears then there are a lot of people who could be converted to the bullish cause whereas everyone who is going to turn bearish has probably already done so. the more converts from bear to bull in that newsletter writing business, the higher the market has to go. how about this term rationality? i love rationality, meaning something that can be gained and profited from because it's happened in the past. so what is rationality? how about if there's a decline in the price of jet fuel, the single biggest cost for the airlines? and the airlines go up. don't laugh. oil went down hard yesterday, almost 9%, but the airline stocks declined anyway.
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that was irrational and disspiriting because what it really said was, hey, look, we're in a bear market driven by a worldwide slow down brought on by a one-two punch of falling china and tighten fed. today the airline stocks jumped with delta and american going up 5%, more than 5%, southwest symbol lov was not for sale. at the same time, the oil stock which is were slaughtered yesterday, they stabilized and went higher on a belief that maybe it's possible the price of oil is bottoming. especially seasons it didn't go down on the bloated inventory number we got this morning. remember wednesday we get inventories. if oil is putting in a bottom, that could be rational, come on, it's fallen from 100. finally, the notion of seller exhaustion is something i've always liked to think about. there's been an endless parade of sellers in large part because the market has gotten so crazy that want to get out before it gets crazier. we've had extreme volatility, a
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flash crash last monday, we had an extraordinary number of back-to-back days where we were down 500. we've seen trillions of dollars obliterated not because of things happening here but because of things overseas. many investors are sick of shadow boxing with unseen enemies, whether they be greece or china. at a certain point, though, the people who want to get out, they've gotten out. there comes a moment where the remaining olders say you know what? wait, i am in it for the long term. or i think i have to wait at least for a bounce before i hold. the sellers, therefore, become exhausted, ennervated. in fact, some of them have seem stocks so knocked down they'd rather buy what they were selling 10% ago. all these different positives can coalesce when no federal reserve official grabs a microphone and sews uncertainty by giving one more speech about the immediate to tighten
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regardless of the facts something that's totally irrelevant give than accommodation is the theme virtually everywhere else in the world because the world's growth is slowing. but an offhand comment by one of these fed hawks is not dismissed as the musingsing of someone who's been wrong forever. take it as gospel regardless of whether that fed official should have any standing to be taken seriously give than person's record let alone shoot his mouth off at a very inopportune time. how ironic that the fed is willing to consider market turmoil as a reason not to raise rates even as its own members were responsible for much of that turmoil with the endless irresponsible chattering. so here's the bottom line. sometimes a host of emotional and technical factors can coalesce to produce a positive session like today and that's exactly what happened in the wake of yesterday's devastating
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win for the bears. john in new jersey, john? >> caller: hello, jim. i got a question. i'm 80 years of age and i was thinking about buying one of two stocks -- kmi or the one you were talking about on your morning show, etp. >> okay, etp is owned by my charitable trust, that is one that has a bigger yield than kmi, 8.44, it's down 24%. when you think about the i.r.a., there's an unfortunate difficult clause in the i.r.a. about a kind of income that you're not supposed to be able to earn which means you should be in kmi, which is a common stock and not a master limited partnership. there could be a slew of reasons and doubts over today's rally. remember, we came in the other day, it was up real big, then we came in the other day and it went real down, all right? but you know what? it can also be a harmless
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positive section, which is what a host of emotional and technical factors can produce. on "mad" one of the most exciting biotech names of all of 2014, but the 2015 story has been different for puma tech. what's the deal? you've asked and i'm digging deeper. then it seems like you're getting three trading sessions for the price of one. i'll tell you why timing is everything when it comes to the averages. and it's been called the uber of health care. could a private player like doctor on demand be the answer to cost containment in the industry? and maybe one day be a stock? i'm getting an update with the ceo. stick with cramer. coming up -- >> it would be a dream of mine to put r&r block out of business. >> hate to break it to you, donald trump, but h&r block is proving to be one of the biggest names on wall street soaring 7%.
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how has the company managed to defy the odds? and is now the time for you to get in on the action? cramer's got the exclusive next. i asked my dentist if an electric toothbrush was going to clean better than a manual. he said sure... but don't get just any one. get one inspired by dentists. with a round brush head. go pro with oral-b. oral-b's rounded brush head cups your teeth
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until about three or four months ago, the biotech cohort was among the hottest groups in the market, especially the small development stage biotechs as the whole group seemed to be propelled by a monster multiyear move. but late this spring the biotechs got taken to the woodshed with the once hot speculative plays going into freefall. then once the group started to find its footing, the whole stock market suddenly turned
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bearish courtesy of the recent china/federal reserve induced downturn. you know i still like some of the larger more established biotechs. i told you to buy cellgene yesterday. regenron also, but many of the smaller development stage biotechs, the ones that are all pipeline, no products let alone profits, well they've become quite difficult to own, even down fwrig their highs because there's really nothing that can put an easy floor under these stocks at a time when traders and investors panic so easily. it's your fellow shareholders that are the problem. i always tell you on speculative and early stage biotechs it's risky business, not for the paint of heart, but after one of these stocks have been put through the meat grinder, when does it make sense to shop for bargains? that's an important question which brings me to the poster child for once beloved now beloathed biotech companies. i'm talking about what was the
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hottest star out there, puma bio technology. it was an early stage biotech that flew too close to the sun and got its wings burned off. last week i got a call from linda in new jersey who wanted to know if it made sense to pick at this one given how much it had come down. you know how we feel about our viewers on this show. they know more than we do so we couldn't be glib. i said i'd take a closer look. the story? puma soared into the stratosphere based on the strength of a single drug, neurorobert anyone, an anti-breast cancer therapy. pumaing to more than quintupled in 2013 and continued to work for most of 2014, rallying the 295% in a single session of july of last year the company announced positive topline results from the phase three trial as a treatment for particularly malignant strain of
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breast cancer. based on the excellent -- really excellent results of neurorobert anyone, puma surged from $233 to peak at $279. that was more than a year ago. then it really got slammed into a retaining wall. the problem with puma was always that it only had one drug, not many shots on goal like we like on "mad money," even if that one drug might have one -- more than one application. sure they've got a second compound, but that's in phase one. it's so early stage that puma itself doesn't even list the darn thing on the pipeline page of its web site. the stocks are all about this neurorobert anyone and when the data was published it was encouraging so puma rocketing higher. then we got more data that looked less compelling and the stock never recovered. puma lost 66% of its value since its peak, plunging from $279 to $94 as of today. and this epic decline has caused investors and analysts to wonder if puma might be worth buying as
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a value play, including j.p. morgan which initiated coverage in a thoughtful piece on the stock with a buy at and a $122 price target. has puma bottomed? as i'm sure some would say after the 5.77% run, even if that's 2 case, does it make stones go near it in this environment? to answer that question, we have to dig a little deeper into the rise and fall of puma. remember how i said puma stock quadrupled on july 23 of 2014? that's because the company released extremely positive phase three trial data on its key breast cancer drug and based on those results puma said it planned to file for fda approval sometime in the first half of 2015. well, that's past by now. they also said the full results of the clinical trial would be presented at a future important scientific meeting. but then last november, puma came out with some -- let's call it disconcerting data on the same drug. but from a different trial. in this case, as a first-line
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treatment for metastatic breast cancer. the problem? some 30% of patients taking the drug experienced severe diarrhea. that nasty side effect caused the stock to sink 10% the next day. then last december puma announced they'd be delaying their new drug application from the first half of 2015 all the way to the first quarter of 2016 based on feedback from the regulators. news that sent the stock down from $225 to $197 in a single day. some people thought it was a buy right then. too early. puma's real disaster came going into the big american society of clinical oncologist, that's the asco meeting we talk about in early june where the company planned to present that much-anticipated long-form data from the phase three breast cancer trial. remember investors went gag over the top line results of the study so when they got a closer look at the data and there was some real hair on it, the stock
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got clubbered. the issues? for starters the absolute treatment benefit from puma's drug versus placebo. substantially lower than management seemed to have initially implied. and making matters worse in this study, the drug caused 40% of patients to experience severe diarrhea. 40%. which is a real risk for cancer patients who've already gone through chemo. puma's stock plummeted from $200 to $146 in a matter of days and it's fair to say it's being going downhill ever since with the stock falling as low as $80 during last week's selloff. so after that disappointing data from puma's one real drug and vicious declines in its stock, how come analysts a t j.p. morgan think it's worth buying? well, first of all j.p. morgan believes the market's reaction, they thought it was too severe. well neurontonin is less attractive than they thought, the analysts say the drugs are still effective. if they can control the diarrhea problem it could have an upside. given that puma is already
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studying their drug in combination with imodium, the bulls at j.p. morgan think that this compound's benefits will outweigh the safety risks and they're betting the fda will agree with them. ultimately these guys believe it could do $2-billion in peak sales from breast cancer alone. remember it's being studied in solid tumors and nonsmall cell lung cancer. that means the upside could be enormous given that puma is a $3 billion company. where do i come down? this is tough. i like what i hear but right now puma feels to me like the quintessential high-risk high-reward biotech. if the upcoming data is positive and the companies can convince doctors to view neurontonin as less problems with die korea, the stock could rocket higher. if things don't go well, the down side could be enormous from these levels. so i ask you, wouldn't it be better to go by a cell gene,
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also up 4 today but with a heck of a lot less risk even if the reward doesn't match puma? even if everything -- and i say everything -- goes right for celgene, it won't outperform puma. puma will go much higher but celgene has a lot of shots on goal. let me give you the bottom line. if we were in a happy go lucky bull market as opposed to one day, you know what? i would agree. it's compelling. j.p. morgan would be right. puma is worth buying for speculation. but we're in bear territory. one positive day doesn't change a market's color ration. bear markets are harder to please. and it seems exciting to me, i'm telling you to wait for the stock to come down where it bottoms last week. if you can't get that price, take a pass. there are other biotech fish to fry. okay, much more "mad" tonight including futures and margins and etfs, oh my. i'm explaining how the trading
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day has been divided into three distinction sections and what that could mean for your money. and looking for the one stock doing well in this market? look no further! i've gotten a exclusive with the ceo just ahead. one out of 500 that went up yesterday. wow! plus a private player revolutionizing the health care sector. i'm not talking about a miraculous new drug, i'm talking about doctor on demand and you are not going to want to miss this one. stick with cramer!
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this market has sbok crazy that each session has its own rhythm and soul. everyday feels like not one session but three sessions and that's adding to the perverse nature of this market and the pervasive sense of confusion. the first session occurs at the opening and that day takes its cue from, of course, chinaette both their economic data and stock action along with trading in europe. unlike most times in history, the future is almost entirely controlled this part of the day. we get a lot of information from china and most of it is bad, most is worst than expected but you have to figure the people who set these expectations have to be train dead because all of the expectations that are too
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high isn't worth a warm bucket of spit. nevertheless the china misses are legion. that's the first input into the chaos. the second input is the chinese stock market which almost always goes down and the worst performing stocks are halted or problemed up by the chinese government to assure a more orderly close. when the chinese data is worse than expected and the market is down, europe trades down hard in lockst lockstep. in part because that europe is china's largest trading partner so the two areas are linked. our relationship with china is more complicated and less linked. we don't do a lot of business in china. the communist party hasn't allowed us to do so what business we have is concentrated in cell phones, aerospace and autos. because of our newfound negative bias, we go down harder than negativity from china. especially when watt hears is the newfound weakness in the
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dollar, something bull their can raise estimates for our companies even if it stays a that level. but i'm not trying to justify the action, i'm just telling you what happens. there's a dearth of big mutual fund money coming into the market and a hefty amount leaving the market almost daily so there's really rarely real support for any really driven by these futures but mutual funds are an accelerant to the down side so if we get a bad opening it's exacerbated by these institutions which are suffering from withdrawals. they don't tend to withdraw that much when the market goes high er if second session is the margin session. that session begins around 11:30 and involves speculators who borrowed money to from brokerage firms to pay for stocks that have come under pressure. when we have hideous down days like yesterday there are many individuals that don't have the money to put up for what's known as the collateral against the
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margin calls they received. if they don't send in more money they have to sell or margin clerks will sell it for them so brokers don't lose money. that whole process, which can be very disorderly as we saw last tuesday runs its course by 2:00 p.m. now, if there aren't margin calls than the 11:30 to 2:00 p.m. period can be benign like it was today but if there are a lot of margin calls it is tumultuous which brings me to the third session within a session, the etf dominated period that starts at around 2:45 in the afternoon. many exchange traded funds have to settle up, so to speak, near the end of the day. when someone buys an etf that bets heavily against stocks it settles up by knocking down the stocks at the close. same thing with the bullish etf. many etfs use leverage, their influence is magnified by that leverage. you don't typically see them play such an outsized role but this is a think market, not a typical market. corporate buybacks help cushion the blow from the etf but those buybacks are halt bid the government at 3:30 so the
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companies can't mark up stocks and control the price at the close. that's a shame sometime, frankly, because right now the market is so thin request w so few players that the etfs pretty much determine the close with their settlements. again, these etfs exacerbate the direction so on a rare good day like today i don't know if you saw it but they cause us to go higher. the idiosee that last-minute spurt. that was etf settlement. plus traders spend the afternoon trying to gain how the etf will set up. meaning ugliness will breed further ugliness or vice versa. so let's recap, the 9:30 is controlled by the future. the 11:30 to 2:00 p.m. session rejects particular gin pressure and the final session involves gaming and finding out how the etfs settle stocks and therefore give you close-of-the-market prices. bottom line -- i wish one of these sessions we've had since the ewyo yuan was devalued in c
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had something to do with individual components, the companies. but company stocks have become quaint abstractions in this new world dominated by futures and etfs. ken in michigan. ken? >> caller: booyah, jim! nice. >> my question is about orb cash. they just got a $6.75 billion contract with the federal government for production of their joint light tactical vehicle. that sounds like a few years of some good income. what do you think about oshkosh as a long-term buy? >> i think the stock jumped up and therefore it did actually reflect what happened to is one of the more bearish faces in the market. i like this company. i have to do a piece on it. it had municipal business and municipalities are doing better so they're getting more taxes so i got both and the stock has come down gigantically. you can bank us doing a further take on oshkosh going further
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down the road. listen, it's a new world. this market gives you three different sessions a day and sadly none of these sessions have to do with individual stocks. here's one for you, presidential candidate donald trump said he wanted to put 00 and are block out of business. but after today's surge in the stock that seems, well, less likely? i have an exclusive with the ceo. the doctor is online or in your face time as virtual doctor visits options expand. i'm talking to a player growing by leaps and bounds and may be the leader. plus let's get to your calls rapid fire in a hump day edition of the lightning round! stick with cramer!
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even with today's positive action, there aren't too many stocks in striking distance of the 5 2 week high. but h&r block is one of them. with its stock roaring 2.5 dollars or 7% after a terrific quarter last night, not only did h&r block deliver smaller-than-expected earnings loss, this company makes all its money during tax season, makes sense, right, along with
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higher-than-anticipated sales but it completed a hugely important transaction investors have been waiting for. ever since the financial crisis the problem with h&r block is that it owns a bank to their tax preparation clients. that makes them subject to regulations limiting how much capital can return to you the shareholder via dividends and buybacks. last night we learned h&r block has completed the sale of its banking business to bofy, which is a hot stock. a month ahead of its add mid-edly delayed schedule. there wasn't anything they could do. now that the bank is gone the company can buy back stock hand over fist. today we learned h&r block is buying back $1.5 billion worth of stocks, 15% of the market cap through what's known as a dutch auction style tender where they'll be buying stocks between $25 and $37 depending on if people want to sell.
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i don't know if you should. the stocks have been returned 11% since we spoke to the ceo in early june. i think the new h&r block has more room to run courtesy of the multimodal buy back program but also because a change of the earnings profile. don't take it from me. let's learn more from bill cobb, the president and ceo of h&r block to learn about their prospects. welcome back to "mad money." >> good to see you, sir. >> bill, it's not often a photo totally telegraphed event -- we knew you were going to get rid of the bank -- would produce a gigantic pop and one out of 499 stocks -- 499 down yesterday, one up. why do you think it took the market by storm even though we've talked about it for years? >> it took a while for this to happen but in early august we said we've received approval. there was still skepticism whether we'd be able to close it. we're able to close it and what we always said was shortly therefore we could come out with our capital structure and return
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plan and i don't think you can get much faster than we did so that's what we're toiable to do yesterday. >> more aggressive. a dutch tender says "we're not going to stand underneath the market and buy stock, we're going to impact directly where the stock is." >> exact lift we were sitting on a billion dollars of excess capital from really the regulations being imposed by the federal reserve so we felt with our shareholders we should come out and get that capital back and most importantly to me we announced a very aggressive $3.5 billion authorization over the next effectively four tax seasons in order to continue this. >> what makes you feel confident the stock is such a buy here? >> we believe we're on the right path. i said this last night, i now have the company i wanted all along. >> that was nice when you said that. >> it's a company centered on tax preparation. we are looking to expand to what we call our tax plus strategy
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which is a series of additional services that we can add to our clients, their financial services, which was the deal with bofy, we have other opportunities with them over the seven year agreement. last year we launched a product called tax identity shield to fight tax identity fraud which is just -- >> rampant. >> exploded. so this is the kind of company where we run center on the tax experience and offer other services. >> i saw this piece just today about the tsa and h&r block, i can get another service. there must be other services you can offer within your box, your bricks and mortar. >> people have talked a long time, could you sell halloween candy? now, we're testing this out where you can get tsa service, tsa pre-check and things like that. there's a lot of things today about identity and we want to be part of the solution there. >> i think this is such a great idea because we're correctly fearful. it's not paranoid. as you taught us, what they're really trying to steal is your tax return when they get your i.d. >> what the fraudsters finally
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realized is every year the treasury is doling out $300 billion worth of refunds. that's a lot of money so they realize they can start to go not only against federal return bus state returns so this whole infrastructure for organized crime and countries is designed to steal your tax return. >> there's a presidential candidate that we're familiar with, donald trump, who may not be concerned about getting the refund. he seems to be using h&r block as a punching bag, so to speak. let me play you a clip. >> i want to put h&r block out of business. it would be a dream of mine to put h&r block out of business, they don't deserve to be in business, frankly. >> so what happens if h&r block goes out of business? do taxpayers save a lot of money? >> well, that's the issue here. last year we were able to return about $50 billion worth of refunds for our clients. over 85% of our clients come to us to maximize their refund. jim, i often say this is like
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their bonus. for people making 30,000, $40,000 a year, that's the sweet spot for us. we can do anybody's tax return bus that's the sweet spot. we're there to help them navigate the code. there's talk about the complexity of the code. no one knows it better than we do. we have ideas that we could help on how do we help to simplify this but in the end that's part of the issue here is it's about credit, education credits and the like. it's not as simple as just only the tax code. >> and if h&r block were wiped out, a lot of people work at h&r block. >> we have about 100,000 people. we take this seriously. but what we're doing right now, we're starting to gear up training, the aca will kick up next year with higher penalties, the affordable care act. so we're focused on getting ready for the tax season and we know that early season especially is where our clients are looking to get those
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refunds. >> fair enough. the non-judgmental answer because i know your company has saved people, including me at one point in my career, more money than i had to pay you, let's put it that way. that's bill cobb, president and ceo of h&r block who totally delivered on his promises he made right here on "mad money." we're back after the break.
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all right, before we start the lightning round i want to give a heart felt and inspiered booyah to devoted cramericcrame josephine h who's about to celebrate her 103rd birthday. she doesn't believe in fund managers and i hear she was 10% last year. happy birthday josephine. now it's time for the lightning round. my staff prepares questions and then the lightning round is over. are you ready? time for the niglightning round. i'm starting with anthony in new
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jersey. anthony. >> caller: big booyah from new jersey on behalf of my partner esther and i. i got 500 shares wiin linn ener sngt. >> hold on it to, they screwed it up. they took on too much debt. they did it wrong. what can i say? they did it their way, the wrong way. thomas in illinois. thomas? >> caller: hi, jim. booyah. >> booyah. >> is buying now a good momentum? >> elon musk is a great stock manager as well as a great car maker. if you like the car and you want to own the stock, i'm never going to go against you. patrick in michigan. patrick boo-boo hello from the home of the cotton bowl state spartans. united technology? >> enough already. i think you hold on to it until they straighten out the profits. and that, ladies and gentlemen, is to conclusion of the lightning round!
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here a at td ameritrade, they wk hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. if an electric toothbrush was going to clean better than a manual. he said sure... but don't get just any one. get one inspired by dentists. with a round brush head. go pro with oral-b. oral-b's rounded brush head cups your teeth to break up plaque, and rotates to sweep it away. and oral-b delivers a clinically proven superior clean vs. sonicare diamond clean. my mouth feels super clean. oral-b. know you're getting a superior clean. i'm never going back
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right now i think we could be witnessing the beginning of a revolution in the world of health care. i'm not referring to some miraculous new drug. i'm talking about a whole new way of doing business, what's known as telehealth, basically using the internet to video conference with a doctor instead of being forced to physically go to a germ-filled doctor's office or a hospital every time you get sick. we know that teledoc, the largest operator, became public, although its stock has been hammered of late along with unprofitable high flyers. there's another player that seems to be growing by leaps and bounds even if it's still privately held, that's called doctor on demand. the last time we checked in with these guys, doctor on demand announced a major partnership with unh, the gigantic health insurance company and last week doctor on demand announced a deal with cvs health, the huge drugstore chain, that could potentially refer millions of new patients to their service. plus yesterday doctor on demand reached an agreement to become the preferred telehealth service provider to blue cross blue
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shield of minnesota, the largest health care plan in the state. some 2.6 million members. they're starting to really get a lot of customers. yesterday i got a chance to chat with adam jackson, the co-founder and ceo of doctor on demand. take a look. adam, much has changed since we've talked to you last including a big partnership with cvs and some very exciting news because of blue cross/blue shield of minnesota. what does this do in terms of the scale you have and how you can blow it out using two entities to sign up a lot of people? >> hi, jim. thanks for having me back. those two deals are giving us more of the same. more great stuff. it's exposing the doctor on demand service to literally tens of millions of cvs shoppers. they're a well-trusted brand in retail health care, they've even renamed themselves cvs health and with blue in minnesota, another great health plan relationship similar to our united deal that brings our
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service to more patients for free or equal to their co-pay. >> so at cvs, explain this. if they have a minute clinic, they might handle you, but if they don't what happens? you get -- who do you -- what, you go into the pharmacy side and say listen, i need to see a doctor? how will they know about doctor on demand? >> right. so phase one of the partnership is cvs is going to promote doctor on demand on its digital property, so cvs.com, the cvs mobile app it will basically let people know hey if you have a non-emergency medical issue and you're not near a minute clinic use doctor on demand. we have vetted this service, we know they're high quality doctors and conversely when there's a patient case where we want to do in-person follow-up, we're able to refer our physicians -- our physician cans refer you to the nearest minute clinic. >> do people understand the savings they would have? a lot of people under the new
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affordable health care act, they have these very high deductibles and really have to learn much more themselves about how to rein in costs. how do you get it across to people who don't go to a cvs, don't realize this is happening. >> you know, the entire system is shifting towards these high deductible health plans and forcing patients to be shoppers now in health care. that entire movement goes along well with us being a $40 visit. so we do everything we can to market specifically to those high deductible plan holders and say, hey, for that first $5,000 you'll have think about $40 versus a $250 urgent care viz. >> it this teledoc became public. we talked about how the stock is pricey but they do good things. when you go into cvs, without picking on teledoc, how do you make your case you're better than the other guys? >> we're very different from teledoc in that we are a live
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video platform do so you download us on your iphone or android, within a few minutes you're connected to a doctor and you have a live video chat, you can share photos. with teledoc, it's a different model. you call an 800 number, in 30 or 40 minutes a doctor calls you back and it's over the phone so there's different things tuld diagnosis without being able to see the patient. >> and it needs a smart phone. so samsung, apple, iphone, whatever? these all work for you? >> that's right. we support just about everything with a camera so that's iphone, ipads, androids, we even have amazon kindle fire app and we work on computers, as long as you have a web cam. >> i have to tell you, this is exciting. cvs we have been recommending for years and years. adam jackson, co-founder, ceo of doctor on demand, congratulations on those great deals. >> thanks, jim, good to talk to you. >> private company, can't own the stock but you have momentum. who knows, maybe one day it will become public.
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stay with cramer. but for me, its with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your next opportunity. because at scottrade, our passion is to power yours.
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oversold markets, exhausted sellers, people who think that markets come down enough and negative sentiment all combined in one session to give you a reprieve from the bear. i'd like to say there's all a bull market somewhere and i'll try to find it just for you on "mad money." i'm jim cramer and i will see you tomorrow!
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male narratotonight on the "west texas investors' club"... - it's a utility patented caddy that has the world of applications. - could be a good product. we need to figure out where the market is for this thing. - aj. aj. let me show you a robocup. you see the dust on your products? - so now my store is dirty? - i think so. - the problem is you and your personality. - you should look in the mirror. - i'm not asking you for money. - my company is called hyte. it allows a user to book a private airplane from anywhere. - rooster and i have got a little surprise for him today. - i have a ten-month-old son. - well, he won't remember you're gone. they're little. - oh, please don't say that, man. narratodeep in the heart of texas, two men carved a fortune from a harsh and unforgiving land: butch gilliam and rooster mcconaughey.
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