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tv   Mad Money  CNBC  December 1, 2015 6:00pm-7:01pm EST

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>> i am. >> what are you sorry about? >> i'll tell you what though, laboratory corp., maybe she is watching right now having dinner. >> i'm sure she is. >> i'm sure she is. i'm melissa lee, thank you for watching. see 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. 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 some money. my job is not just to entertain but to educate and teach. put it in context. call me at 1-800-743-cnbc or tweet me at jim cramer. every once in awhile, people stop obsessing about the federal reserve or the presidential
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election or the overvaluation of stocks, and they just come in and -- >> buy buy buy! >> -- their faves. that's what's happening rights now with the dow gaining 168 points, nasdaq climbing .93% today. why the sudden love for the market? first, it's december and december, we get what i used to call the old hedge fund the era of good feelings. that's when you get a tacit deal between major investment firm research departments and large institutional shareholders. it's kind of like the deal my grandmother mary told me. if you don't have anything nice to say, don't say it! except it applies to stocks, not people. simply put, the analysts understand that it isn't worth rocking the boat and downgrading stocks at the end of the year when it could hurt the very accounts of the hedge funds and
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mutual funds that their firms cover. what's the point of knocking down a stock now when it might damage the annual performance of the big bill payers? so if the analysts don't have anything nice to say, they shut up and save it for january. the corollary is true, too. the rule of december is that if you have some good things to say, then you shout them from the rooftops. exhibit a, is an excellent piece from barclays today called be thankful for large cap internet. this is the kind of piece i used to dream about as a portfolio manager. so i'm just going to quote it. so you can see exactly what i mean. and it starts as we head into the final months of the year we continue to see a larger consensus around the same themes and stocks own large cap internet. it continues, i quote, while we would love to mix the pot and go
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against the grain sometimes, the consensus is right. for now we continue to believe current trends are supportive of our current ratings and outlooks. he then posits a question. based on a term i coined here on "mad money." will investors keep their fangs out? fang. fang. he notes that for much of 2015, the fang trade, facebook up 35%, aumson up 170%, netflix up 157%, google up 46%. those are all percentages from before the opening bell today. they have been the place to be in the internet, end quote. what can i say? i couldn't have put it better myself except of course i would have acknowledged i coined f.a.n.g. should have copyrighted it. my bad. because the piece failed to mention f.a.n.g.'s derivation. research like this has a big impact not just on my ego.
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[ rim shot ] >> all the stocks soared today. face book jumped near three bucks, causing us to wonder what got into that stock yesterday when it sold off. while i'm at it, mazel tov on the suckerberg family on the birth of their daughter. despite it being a long cyberweekend for amazon, they failed to rally yesterday. they soared $14 today. netflix keeps humming and humming. people are starting to grasp the company is going to china next year. i bet they go nuts for netflix. i don't know if the communist party can stop the move even if they wanted to, especially given the house of cards is the most popular show in china when they didn't even have netflix. get this. the stock formerly known as google is having a big run. rallying close to $21 today. simply because it needs to keep up with the rest of the f.a.n.g.s. that's just one example. the list goes on. consider we have seen endless downgrades of the airlines every time they go up a buck or two.
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it's repulsive but not today. the airlines soared. no analysts are out there to deflate them. southwest and delta have been my two favorites, helped by the big time decline in oil prices. i have been worried about american airlines with the us airways merger. so far, so good. the big change is that no one at last is getting in the way of ultra-low cost carriers spirit airlines stocks surging higher. it's about time. the last time we interviewed spirit's ceo two weeks ago, that marked the bottom of the stock. as it became very clear people simply didn't understand that he wasn't saying 2016 was going to be a down year like some analysts said. they misinterpreted him. spirit is up $5 since then. the stock remains supremely undervalued. you want to see this era of positive good feelings play out? check out the very benign plain vanilla boring kind of eh recommendation to buy eli lily by barclays. not long ago, analysts had taken it down from $85 to $76 on the
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failure of a drug most people have already forgotten about. this recommendation, tepid recommendation said [ inaudible ]. that was enough to send it up more than four points to $86 today. it is now above where it was before the bad news hit. i think it's not done going higher which is why we want it for my travel trust. believe me, tomorrow a bevy of analysts will get behind lilly. why? they know the big sellers have cleared and they want to please the guys who bought lilly stock. hey, guys, we'll help you. how about this run on valiant? remember when this company was a price gouger are with recriminations about some suspect distribution system everybody has forgotten about? darned thing rallied nearly $9 today. hey, it was at $69 a couple weeks ago. value has been a disaster that
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was crushing the hedge fund community. now it's on the mend. now they are feeling more bullish about other stocks they own. i conferred about buying more of the snack food company. what does a snack food company have to do with valiant, a drug company? well, both have a major shareholder in the hedge fund manager who just doubled down on valiant. lots of money managers have been shooting against ackman betting he would be crushed by the stock. so of course they were leaning on him for the same reason. now that valiant's flying, there's no reason to short it. i think it the roar higher. looks like -- watch me, listen to me -- there will be two or three upgrades in the next couple days. n i know how the game is played. how about when other highly visible growth stocks stop going down? have you noticed whole foods making a determined stand at $30? is it the buy-back or has the
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stock gotten to cheap? i have been thinking the same thing about coach. it seems to have broken its fall. does the cold snap give the short sellers leaning on under armour a towel snap in the butt? later tonight i explain how one of the most important potential leaders in the market, the semiconductor stocks, seem to have gotten their groove back. skechers, one of the highest flyers also seems to be on the mend. we will speak to them, too. of course the era of good feelings just started today. it has not yet been extended to the biotechs although tonight we look at a few of their charts. it certainly hasn't included the mining and machinery companies. cummings just got downgraded to sell this very morning at merrill lynch and fell almost $8. boy, talk about an analyst that didn't get the memo. the oil and gas limited partnerships in pipe lines are still in free fall. if they somehow stabilize anything can go higher. bottom line is simple. right now, the onus is on the
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analysts to have something good to say. maybe tomorrow it's about good holiday presence. maybe's like call of duty black ops 3. scary looking. how about the ipad pro? from apple? which has caused me to stop talking to my wife entirely while i binge on netflix. don't worry. she doesn't watch the show. maybe now that december's here we should accept that santa claus does exist on wall street and he doesn't say ho, ho, ho. he says -- >> buy buy buy! >> antonio in california. >> caller: hey, jim, boo-yah from sunny san diego. >> lucky man. i'm playing everybody against the chargers this weekend. this is it. do or die. win or go home. go ahead. >> caller: i know. hey, listen, i bought some costco shares a year ago, little over a year ago when i started watching your show. i was wondering if it's time to take some profits off costco and use that cash to start a position in nordstrom which seems to be staking a comeback after that disappointing
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quarter. >> i understand the like for nordstrom. it's a fun place to shop. we're not going to just trade that stuff. this is our 11th year of the show. we own costco for the trust. it's been right to own. don't trade it. that's somebody else's gig. we're playing a new game. happy december! santa claus exists on wall street. we hear what he has to say tonight. skechers has been struggling lately. i head to the showroom to see if it's time to add the stock to the wish list and ditch my wingtips. then shake shack, red robin are a whole lot of cooks in the kitchen. should you join in on the burger war? the biotech sectors have been in the dog house lately. maybe they have been punished too much. i suggest you stick with cramer! >> don't miss a ssecond of "mad
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money." follow jim cramer on twitter. have a question? tweet cramer, #madtweets. give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. ♪ the lexus december to remember sales event is here. lease the 2015 gs350 with complimentary navigation system for these terms. see your lexus dealer.
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at ally bank no branches equals great rates. it's a fact. kind of like ordering wine equals pretending to know wine. pinot noir, which means peanut of the night.
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can the stock of skechers, the once red-hot footwear company that missed earnings estimates five weeks ago causing the stock to lose 30% of its value in a single second, start roaring higher again? when we check in with the cfo david weinberg right after the quarter he stood by his long held business is good and will stay good manttra, indicating the company was on track for continued growth going forward, suggested skechers could double its revenue over the next five years. to be fair, a lot of the problems of the last quarter were one-time issues although some of it had to do with yes, the super freaking strong dollar. that ain't going away any time soon. skechers has a long track record of terrific execution and these guys are very competitive which makes me think they will do everything in their power to avoid having to report a second disappointing quarter in a row. after plunging down to $25 a
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couple weeks ago the stock appears to be bottoming and rebounding, trading up to $31 as of today. just a reminder, the stock is up 71% for the year. so now that we have been through black friday and cybermonday with the holiday selling season fully upon us, why don't we check in with robert greenberg, chairman and ceo of skechers and david weinberg, the cfo. i had a chance to sit down with them at their midtown manhattan showroom earlier today. gentlemen, we are now through black friday, we are smack in the holiday season. robert, how are we doing? >> wonderful. wonderful. got a lot of stores all over the planet. coughed up double digits for the week plus. that to me is the snapshot of the whole brand is how our stores do, because they are skechers stores and when they do well, the brand does well everywhere. >> okay. david, you told me last time we spoke that there was a speed bump and you said yourself look, not everything can work out in a
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straight line. are you happy with the progress since we spoke? >> absolutely. october started off slow as we had spoken about. it came through. so -- but november is so strong now and we actually had a very, very good month. our comps are mid to high single digits for the month, we had good sellouts, we had a great singles day in china which was more than double last year. so everything is moving along and pretty much on target. if december holds up we'll have a very good month considering the way retail is in the united states. >> people were concerned about the 32% down to 12% domestic. something that periodically happens in retail. >> yeah. i think we shipped well in the second quarter. things slowed down and there was an ending inventory in september. we had a very good july, very good august. september slowed down a bit. it was more macro than anything else. fourth quarter, obviously will hold up well. international is not a big contributor so we are really looking forward to the first quarter when we get the benefit of the whole international business. >> now we have the biggest
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entertainment event of our lives which is the new "star wars." you are ready to capitalize it? >> we happen to be the shoe licensee for that, fortunately. >> will we see it in every store, the rollout? how does it work? >> well, it's actually the first character license we have ever had. we actually are in both markets. we sell it unbranded with no skechers on it in the mass market and for our customers, it's skechers "star wars" and i just saw the selling for the week, last weekend, and it took off. >> it really is what people want. >> it's really taken off. i only hope that it lasts all through next year. that would be just wonderful. >> sometimes you are a hostage to department stores. your own stores were just on fire. department stores, you said they had some clearance issues. are we through that? when i look at the department store numbers and the mall company numbers, they're still not what we would have liked. >> yeah. i don't know that they are all through it. certainly i would believe they
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are in a better situation than they were going into september. but it could take them awhile to clean out. like we said, it's always to our benefit. when it's clean, we will take more shelf space. >> let's talk about the real growth story. it's very easy to get caught up and i know people do in this week and that week and this month and that month. i'm thinking about how china's going to be a billion dollar market for you. i know that people, when starbucks said it would be big, people said they're a u.s. company, i'm not going to buy that. same thing with nike. china has the ability to be the second largest market, maybe one day the largest market for you. >> absolutely. starbucks is in 95 cities in china already. they got almost 2,000 stores. they are opening 900 more stores in china next year. can you imagine how many people in china have money to spend that kind of money for coffee? they're not even coffee drinkers to begin with. i think it's a miracle. our business in china, our association with a wonderful joint venture that we have, we've got one deal with one
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group alone that's going to open up 1,000 stores in five years. that's one of three groups that are opening stores. >> at the same time, i know some people would say listen, why don't they offer dividends. they've got so much cash, why don't they buy back. i'm looking for a long-term growth story. there are companies that buy back stock and that's terrific because they don't have anyplace to invest or they don't have any new ideas. if you have new ideas and places to invest, i want to see growth. >> we are all about growth. we would rather grow first. we never want to be capital constrained. we will worry about how to do that or return to investors somewhere down the road. we think the best gift we can give investors for christmas is continued long term growth. >> you had said you would work through long-term distribution. 2016 not going to be an issue? >> shouldn't be. depends how big we grow. we can outgrow anything. we will have the third piece of the building, we will be at 750,000 square feet. we will make up some of the inefficiencies. by april we will be a million square feet in belgium, as efficient as we can be. i hope we outgrow it sooner
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rather than later. >> when you say hot, a lot of people don't get this doesn't mean they are flying off the shelves. it also means you actually have an average selling price that goes higher. highly unusual for anyone in retail. >> i don't think that's unusual in the sense we are basically an athletic shoe company. if you see the prices of adidas and nike and new balance and asix out there, we had so much room to raise our prices. they are at $120 and we are at $60 and $70. >> good point. >> there's so much growth there, we have just been taking it up slowly. it's a comfortable way to grow it because i don't want to upset the apple cart, so to speak. but there is so much room to get bigger. >> that's important because all we hear once again, it's promotional, promotional, promotional. that means you're selling at a much lower price. that's not what you're doing. >> not at all. we are a marketing company in the footwear business. we do unseen, untold, unsold. we make a lot of noise.
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>> what's new, that your designers i know were at this beautiful showroom. the designers are coming up with things for 2016 we haven't thought about. >> they're always coming up with something. the thing is -- it's a question we get often but it's difficult to talk to. that's why you take a walk around with robert and you can see what's going on because we have 19 or 20 divisions now and they all have something going on. they all have something to develop. they are all growing. they grow at different rates and different parts around the world but we have something for everyone and something in each room. it's constantly growing. >> we also are the only company in the shoe business that's both an athletic shoe company and a shoe company. >> do you think that this notion of short term for wall street versus viewers who watch my show, i'm trying to get people to understand we should not be thinking quarter to quarter. but you are business people. the quarter does matter. how do you look through it? how can our viewers look through it for the greater good? >> i think it's just like anything else. you have to look for the opportunity and everything is price-sensitive.
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you look to see who is hot in the marketplace, who could be replacing you, what strength you have overseas. nothing is ever a straight line. i think we have as much runway as any company in our industry. around the world. and we have already invested in the infrastructure. we are leverage everywhere in the world as our time comes. if you have a short term head wind with currency or macro pictures, so long as we continue to build a business we will reap our rewards going forward. >> for the same point i would be remiss not to point out your award by footwear news, not given very easily, lifetime achievement for someone who is not thinking about the next three weeks, but is thinking about the next 30 years. >> yeah. everybody tells me that it's a great award that i got, like the whacked academy award in the shoe business which is sweet. i'm number four which is my lucky number. how much better can it be than that? you know, when i listen to everything you guys talk about,
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the strength of our company is our factory base. i just returned from asia and i just visited a lot of our production facilities and groups that make shoes for us, and how much we have taught them, and that is the strength of our company is the quality of the product, the comfort of the product and our factory base is everything. >> there it is. that's not a quarter to quarter sentiment. that's long term. >> that answers that question. that is long term. >> even though it's a lifetime achievement we all believe the best is yet to come. stay tuned. lifetime not over yet. >> still got a ways to go yet. >> thank you to robert greenberg, chairman of skechers and david weinberg, cfo. great to talk to you gentlemen. >> thank you so much. coming up, the burger war. gourmet burger a chance such as habit, red robin and shake shack are establishing dominance across the country. but which of these flame-broiled upstarts have the most sizzle? cramer serves up his order next.
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we know that much of retail's been having a rough time lately. courtesy of the unseasonably warm weather. it won't go below 50 degrees in december, something's very wrong. as well as of course the competitive threat from amazon. but what about the restaurant stocks?
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fresh food can't be amazon'ed. roughly six months ago we ran a segment about hamburger a chance where i said you should buy mcdonald's if you want a turn-around story or jack in the box if you want a value play. i also told you to stay the heck away from shake shack because even though it makes delicious burgers and it sure does, the stock was trading insanely expensive levels. fast forward to today, what do the burger wars look like? for starters, mind if we take a little victory lap on mcdonald's and shake shack? the turn at mickey d's is very real. stock is up 19% since i recommended it six months ago. thank you, mr. easterbrook, the ceo. i think he and it have more room to run. while shake shack as expected has plummeted down 45% over the same period. ouch! jack in the box has been on a roller coaster, rallying up to 97 early august before getting slammed down to the low 70s over the next couple months. the stock has never really recovered, now trading at 72 and change. i think jack represents tremendous value at these levels
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which is why we on it. you can follow along for our reasoning at action orders.com. now that the landscape has been shaken up which burger stocks are worth owning? the restaurant group will be able to rally now the price of gas is so insanely low other than rising labor costs, and those do matter, i think pretty much priced into the group. the problems at retail are retail-spfk and don't have anything to do with the restaurant space in general or burger chains in particular. which of the burger joints do we buy? should we reconsider shake shack now that it's come down? maybe it's time to give habit restaurants and red robbin another look or should we be like my vegetarian daughters and call the whole thing off? let's start with two recently humble burger ipos. habit restaurants, i said habit for humanity. no, it's a restaurant chain.
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that came public last year. shake shack went public late january. both stocks were extremely overvalued when we checked in on the space six months ago. since then they have been pun eshed dramatically with habit restaurants down 31%. clearly not as habit-forming as they thought. shake shack declining 45%. even though habit and shake have come down dramatically, their stocks are still trading at a huge premium to the rest of the industry. in other words, they are still far from cheap with habit selling for 70 times next year's earnings. average stock is trading around 17, 18. shake is at 142 times next year's numbers. shake, 142? the average shake shack, know what that means? means an average store is being valued at $22 million. that's insane. habit doesn't have shake shack sex appeal but the average store is valued at nearly $5 million. the average mcdonald's, $2.8 million. how about the average jack in the box? $900,000. sometimes it's worth paying for
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best of breed. best of breed in food is definitely shake shack and habit pretty good, too. but these are some pretty fast growth rates but it's very difficult to make a case for either of them even after these declines. let's see. habit's same store sales are expanding at an anemic 2% to 3%. two weeks ago, the company had to pull a second offering. something habit blamed on current capital market conditions which i regard as a major red flag because what it really says is people didn't want to buy the stock. shake shack, on the other hand, has a lot going for it include tremendous brands. [ inaudible ] expects those numbers to decelerate next year. i would be wary of the stock because shake shack is doing a very sizeable secondary offering and giving its existing major shareholders the option to exchange 21 million class b shares for regular class a shares, ones they could sell on the open market. that could potentially put real
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pressure on the regular common stock that you may own. if you love shake shack, i suggest waiting for all that stock to hit the market and bring down the share price before you even think about owning this one. however, let me just say point-blank. i totally get the love for the company and the stock and i hesitate to bet against this one in the longer term even though we did say sell it before. if the growth burger plays are too expensive what about the [ inaudible ]? i'm a big fan of jack in the box in part because it owns a mexican chain in the form of keesh qdoba. i want to draw your attention to another burger chain that's come down dramatically in recent months. red robin gourmet burgers. rrgb. here's the stock that's come down from $95 in august to $65 as of today and at these levels is trading at just 18 times next year's earnings estimates which makes it the cheapest name in the entire burger group. now, when you are dealing with
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this kind of situation, you have to be careful. given that lots of stocks have cheap-looking valuations because that's exactly what they deserve. is red robin an illusion that's been justly punished or could it represent a terrific bargain? consider why the stock has been crushed in recent months. red robin is a growth story that was violently interrupted in the third quarter. after a strong multi-year run, red robin reported a weaker than expected second quarter back in august. pitiful same store sales growth of 2.9%. this was a growth stock, for heaven's sake. over the next two months it was pummeled, losing 40% of its value. that's what happens when a growth name loses its mojo and falls out of favor. then when red robin reported again a month ago, the company's results were mixed with better than expected earnings but light revenues and not so hot same store sales growth of 3.5% not to mention weaker guidance for the next quarter. sure enough, this stock fell another 13.9% in the next two
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sessions. here's the thing, though. stocks actually do get cheaper as they go lower and at these levels, red robin is no longer trading like it's some high-flying growth stock. red robin's now a value play. we know this company has demonstrated a remarkable ability to bounce back from tough quarters over the past five years. at these levels, i think it would be a mistake to bet against these guys. particularly because red robin has a plan to turn things around. company's currently undergoing a major brand transformation including a major remodeling plan and we have seen over and over again these restaurant renovations can provide a real spur to a company's same store sales growth. we saw it in wendy's, popeye's. red robin has roughly 500 stores across the country. by the end of this year, more than 300 of them will be remodeled. even though the stock has been punished, this company has actually been taking market share and despite the slowing same store sales growth in the late ef quarter, the earnings story is just fine. all of which suggests red robin is a bargain here that deserves to be bought, not sold, like the weakness of the 1.76 pull-back
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we got today in an otherwise terrific session. here's the bottom line. if you want to get your hands dirty in the burger wars, you have to know that i'm loving the turn at mcdonald's, i still believe in the value proposition that is jack in the box. but beyond that, i think habit restaurants and shake shack still need to be avoided even though they have already come dunn. if you want a burger chain to buy in to weakness i say go with red robin which is the cheapest name in the group. i think it is poised for a comeback. little sanitizer, please. ralph in virginia. ralph. >> caller: boo-yah, jim. >> boo-yah, ralph. >> caller: i've got a small stake in the fresh market, thinking about pumping some new money in but i'm not really feeling the love from tahe analysts reports. what say you? >> it's a value play. we could see something positive happening. remember, i feel the same way about whole foods. it's become a value play. i can see something positive happening. but at the same time, i don't
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have that earnings growth that makes me want to pound the table. by the way, whole foods does hold up at 30. doesn't seem to be able to go below that floor. i think that's important. fast food can't be amazon'ed. you want to take a bite into a burger stock? stick with mcdonald's or jack in the box and red robin into weakness. or maybe go the ways of my daughters. they are convincing me about this vegetarian thing. more "mad money" ahead. biotechs are well off their high. is it time to circle back to the group? i go off the charts find out. then the semiconductors have been moving up so it's been quiet. you may have missed some of it. do buying opportunities still exist? i'm revealing. plus your calls. rapid fire. and the lightning round.
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at a certain point you have to believe the biotech companies with tremendous pipe lines and real prospects, well, maybe they have been punished enough. this entire group has been in the dog house for months, thanks to the massive sell-off in all things drug related.
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if you close your eyes you might as well think it's 1993. sooner or later you have to recognize biotechs have become too cheap to ignore. that's why many in the larger space, the big biotechs i like to call the four horsemen started to rebound in november. although the group has been weak the last couple days, maybe some found their footing this afternoon. even the smaller more speculative names are starting to come back into vogue. that's why tonight we go off the charts and we are going with the help of bob lang, a brilliant technician, the founder and senior strategist at explosive options.net as well as being the technical star in a very interesting piece of research, three-man team behind the street.com's trifecta stocks newsletter which i read every morning in order to figure out which of the smaller biotechs are favored by the big institutional money managers at this moment. lang's view, i'm calling it controversial. lately, he's noticed that the big money has begun flowing back into three junior growth
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biotechs after prolonged period of weakness that has left these stocks trading well off their highs. j juneau therapeutics, isis pharmaceuticals, got to be thinking about changing that name, done ground-breaking technology that allows them to alter the rna in your body's cells in order to fix all sorts of diseases, hence how isis has a huge pipeline of 38 different drugs. finally, the most controversy of all, blueberg, a company that uses gene therapy to fight diseases. let's start by checking out the daily chart of the strongest one. juneau rebounded nicely, even though it got dinged today down to 82 cents. why are they worth buying, says lang? because according to him, this chart, it's a thing of beauty. they have been making a series of higher highs and higher lows, see it doesn't exceed each time.
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that's perfect, right? it is now back above its 50 day moving average. there's the blue. it's above that. and the 200 day moving average, it's nicely above that. this is a pretty classic upturn. notice how the short term 50 day moving average is on the verge of crossing above the longer term 200 day moving average. i have to tell you something. that's called a golden cross. okay? this could be a golden cross. because it's so positive when it happens, you better believe hoards of chart watchers will pile into this stock. that's what they will do. they will say hey, juno's got the mojo. when you look at the moving average convergence, divergence, an indicator that helps technicians predict changes in a stock's trajectory, in other words, it's not coincidence, you can see positive territory. the recent bullish crossover in this remains intact. that is positive. last but not least, there's the
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money flow. that's an oscillator, an indicator that measures the level of buying or selling pressure of a particular stock and give you a sense of whether the big institutional money managers are buying or selling. in this case, look at this. this is extremely positive. it shows enormous amount of money moving into the stock. that's why lang thinks that after its reached a rebound from 35 a couple months ago to 55 right now, they should have more room to run. lots of fuel. this is a fuel gauge. that's what i want you to think of it as. next up, when we talk about it all the time, isis which is never to be confused with isis. lang considers this chart more of a mixed picture than juno's but still believes the price action is positive. first off, after epic rebound in october and november, isis pharma's 50 day moving average has just turned up. very bull eish development. the stock has a very nice floor of support and longer term at the 200 moving day, all right?
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which is currently around 58. just about $4 below where isis is currently trading although it may not need that support because isis has been hanging at above its 20 day moving average for more than a month. boy, is that strong. these are all signs -- check, you have to do this, check, check, check. those are all good. isis pharma just does not want to go down and stay down in this environment. plus look at this, giving me very strong reads. the big boys are piling into isis pharma. stocks have been trading for the last few weeks consolidating recent gains. this is exactly what you want after a big gain. but lang's fees will start going higher. he's calling for an explosive breakout. finally, blueberg. this is the least compelling daily chart of the three. after a recent surge over its 50 day moving average they got hammered, plummeting $8.41, nearly 10% after investors
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reacted negatively to comments and a general positive piece of research. it suggested there could be a potential delay in one of the lead drug candidates, treatment for a rare blood disorder that allows patients who would otherwise need frequent blood transfusions to get by just fine without them. given that people are told to buy blueberg $204 price target on an $80 stock, lang thinks today's pull-back is a real overreaction. first, the indicator, again, we have got, this is this one, got that bullish crossover we like to see where the black line crossed over the red one. okay? got that. pretty reliable signal. the momentum indicator like the relative strength index, looked very strong. i was concerned about this. bob tells me it's okay. and the money flow oscillator which just turned positive, down at the bottom here, it suggests the big boys are just getting started. it's not the best chart of the bunch but lang could see the stock rebounding to its next ceiling of resistance which is
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$100, maybe go beyond. here's the bottom line. these junior growth biotech stocks have been coming back from the dead. i have been laying off of them because i have been focused on the big boys. bob lang suggests we look at these. he says juno, isis and blueberg have more room to run. these stocks are extremely volatile. they are entirely speculative. they are very expensive. never confuse them with a merck or bristol myers but as long as you understand that, i bless the first two for speculation although i do have a harder time with blueberg even though i can see why you might want to take a stab at calling a bottom. stick with cramer.
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it is time. time for the lightning round! >> sell, sell, sell, sell, sell! >> are you ready, skee-daddy? time for the lightning round. start with john in tennessee. john? >> caller: hey, hold or sale, medical properties? >> i'm not even going there. keep that one.
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glenn in new jersey. glenn, glenn, glenn. glenn? glenn? glenn in new jersey. >> caller: yes. i'm here. how you doing, jim? >> all right. you're up. >> caller: [ inaudible ] storage. >> i like the trade. it's okay down here at 13. how about sean in maryland. sean? >> caller: front line, fro. >> no, no. go with hanson. that's doing better. let's go to jimmy in arizona. >> caller: hi, jim. depo med. buy, sell or hold? >> we got turned off by depo med after horizon walked away. we will walk away with them. derek in alabama. derek? >> caller: roll, tide. my stock is active vision blizzard. >> your stock is a good one. it is going higher. my nephew cliff mason, head
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writer, who's a gamer, said they have the hottest slate there is. pete in florida. pete? >> caller: mr. cramer. hold match.com. >> everybody is going to recommend it. wait another 20 days. you can sell it. i don't care for it. billy in alabama. billy? >> caller: buy, sell or hold [ inaudible ]? >> praxair is good. i like them a lot. congratulations again to the airgas people. what a trade that was. to rich in virginia. rich? >> caller: hey, jim. norfolk southern corporation. >> it went up too much. it's got two points up and five points down. that's not my ratio. that, ladies and gentlemen, is the conclusion of the lightning round. y making thinkorswim better. like a custom screener on your desktop, that updates to all your devices. and you can share it with one click.
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wow. how do you find the time to do all this? easy. we combined every birthday and holiday into one celebration. (different holidays being shouted) back to work, guys! i love this times of year. for all the confidence you need. td ameritrade. you got this.
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sometimes the best moves occur when there is no promotion whatsoever. the stocks just go up nicely on their own. they levitate. right now that's exactly what's happening with the semiconductor stocks. they are starting to make major breakout moves on absolutely no news, no analyst pushes. this kind of spontaneous combustion is the sort of thing i used to hunger for in my old hedge fund because i would sense the analysts would see the action themselves, then find reasons to recommend the stocks. once they figured out something positive they could say.
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i bet that starts tomorrow morning. first we have to take note of intel which has been quietly rallying step by step, inch by inch ever so slightly. almost unnoticeably but certainly worth considering. intel's long been enmeshed totally with personal computers. a category that's very challenging for anyone who actually makes them. but it's much more challenging for those companies like hp ink than it is for intel because they make the processors inside for everybody, as long as a lot of pcs are sold they're fine. on the recent conference call the company hinted a bottom was being put in for personal computers. more important, now, a high end semiconductor company with a huge explosion in communications mix will become part of the intel mix. that was part of the big buy they made. that will give the company a much new less pc-oriented higher growth profile. i think intel will be a changed story. its stock will get what's known as rerated, meaning that analysts will rally behind this one because it's no longer a one trick pony. then analog and integrated
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devices technology both of which reported terrific quarters. when we spoke recently to greg waters, ceo of integrated device technology, i was pleasantly surprised to see him both making an acquisition while extending his reach into automotive and industrial, not just communication chips, and also making a huge commitment to buy back a ton of stock. then there's texas instruments which gave a terrific outlook for 2016 when it reported not that long ago. yes, the company might make an acquisition to broaden its range of products, too. i think it will be well received. how about the semiconductor stocks that have been in the dog house for ages, the ones i have been afraid to come out here and pound the table on? skywork solutions, market darlings when cell phones were viewed as growth vehicles but the market turned and turned with a vengeance when it was decided cell phones had become a saturated category. the stocks went down with apple. now they are starting to wake up from their nightmarish slides. nxp is finishing a purchase of
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free scale, giving analysts good reason to push the stocks as they too will no longer be pigeon holed as simple plays on smart phones. people will recommend them. i bet they will be swept along for the ride. corvo stumbled once but i don't think it will do so again. skyworks is no longer involved in expensive merger talks and has become an active buyer of its own stock. these are going higher. i like the way sirrus logic is acting. can they stay at low levels much longer? i don't think so. there are takeover rumors. maybe where there's smoke, there's fire. the ceo recently came on the show and told a terrific story, one that couldn't be happening if the chip makers weren't doing great things and expanding their businesses. only micron and qualcomm failed to rally here. the semiconductor stocks are back and could be a real leadership group.
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bet with them, not against them and i think you will do just fine into the end of the year. why don't you stick with cramer.
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the era of good feelings is upon us for the analysts, fear downgrading. i like to say there's always a bull market somewhere. i promise try to find it just for you right here on "mad money." i'm jim cramer, and i'll see you tomorrow. lemonis: tonight on "the profit,"
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a quick-service lobster-roll restaurant brings the flavors of new england to the streets of chicago. j: enjoy, so much. lemonis: the owner has mastered the menu... i love the concept, and i love the fact that people are lining up to go there. ...but messed up almost everything else. isaiah: you just blew it and they're not gonna order from us again. lemonis: i'm gonna tell you right now, it's [bleep] up. his irresponsible spending is squeezing the business. meals and entertainment -- $25,000. so you're running it through the business? and his family is tired of footing the bill. j: [ voice breaking ] i want to make this big enough where i can repay him somehow. lemonis: if i can't get him to follow my plan, this company will go under. it's [bleep] up. my name is marcus lemonis, and i risk my own money to save struggling businesses.

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