tv Mad Money CNBC August 1, 2016 6:00pm-7:01pm EDT
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we had great help. great to have you back. if you're playing in emerging markets, a fine place to go to currencies aren't cheap and export. ewi korea is the call. >> i'm melissa lee. thanks again 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, 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 just want to help you make some money. call me at 1-800-743-cnbc or tweet me @jimcramer. how do you look at things? what's your time horizon? as we start august, which is historically the toughest month of the year.
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we're getting a sense that the long-term outlook, not the shorter median terrelm, the lon term has taken focus. where the best long-term profits reside. what do i mean the long term? let's start with tesla, solar city. elon musk is trying to create a one-stop-shop for his incredibly popular cars. it can be summed up as i'm smarter than you, so i can't bother with you. and except a couple of things. with this deal, musk is not planning for this year or notex
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year or year after that. there are 50 million rooftops in this country. to musk, that means 50 million power plants. the notion that the electric fleet will look like it does now in further times is long. why? because it's because of nuclear, coal and natural gas. but new nuclear plants can't be built, they're to expensive. coal's too dirty. natural gas is a bridge fuel. here's the thinking that might be one central place. this is what his grand scheme really is. one central place where we build a j a gigantic solar field. he's thinking in the not too distan distance future, he'll be able to tap into it with the the combination. you have to think big to understand musk's plan, or maybe
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we can't understand it because musk is such a visionary. although, as jay leno reminded us, when he rang the bell to celebrate the second season of jay's garage, maybe we should give this missionary the benefit of the doubt. if are you lucky enough to get into the 9.3 million shares, you're pretty darn lucky, you're up $15. since visionary creates capital gains is about as headline as "dog bites man." uber sold its rival business didi. that's fabulous if you own shares in the private uber. the ceo seems to understand the
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imperative of eventually earning a profit. and this decision to bail on ch shows he's serious about making uber a company that cares about where its stocks might eventually be priced. that's bullish long term. then there's biotech. what's amazing about this move is that as a follower of cell gene, people took notice. this time people took action. they took notice of a partnership between biojen and eye owe nis, where biojen's taking an interest in their spinal muss ccular atrophy drug.
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fwlax owe smith klein decided not to go through with the card q yoe my yop think drug. both stocks rocketed higher. again, long-term thinking. i think this could be a turn in the whole biotech corridor. gilead was disappointed. seems to have found its putting. it's going to give us results. i bet that whoe'll hiklike what company has o say. here's what you need to know. the company's ceo actually came right here and told reviewers,
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basically, the exact same thing a couple months ago. and the news laid an egg. now people suddenly care. that's the whole sea change. that has to do with the changing minds of the market and the willingness of investors to think longer term. people say, jim, you're flip-flopping, the market's flip-flopping, not me. today verizon shelled out $2.4 billion. we had fleet matics on the show back in 2014 when job cared about them. this comes after yahoo's business. verizon's another company thinking about the distant future, where it's not just a cell phone company. the ceo said we will be surprised at how good apple's next iphone iteration will be.
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finally, there's the market's belief in the true longer term stocks, companies like alphabet. i mow many of us were surprised these stocks couldn't move higher than they did. but upon further review, that is what's now happening. at these levels, facebook's cheap given its growth rate. that was something being sniffed at last week. now people are taking it seriously. amazon is showing it can grow worldwide. alphabet is getting credit for d disciplined spending. i'm glad it's got the mojo again. this has been a terrible time on the concept stocks. it's been a good time in the real estate trust utilities. i believe the more important
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pattern is the lengthening time frame of investors, something that began last week. there's one other sign that people believe the future might be better than the past, it's the runup of apple. when the iphone maker reported better than expected numbers last week we haute thought its short squeeze. now the surface might be stronger than people think. some people might dismiss this bullishness as fraud. but i think the ones that are harder to value on pe basis, it could be coming to an end. we may have found a stock that can rally in this, the most difficult month of the year, the month of august. dave in illinois. >> caller: dr. cramer. >> yes. >> caller: from the windy city
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and the home of navy pier and the magnificent mile. >> we love chicago. we love chicago on this show. what's going on? >> caller: jim, last week, fab brewer the, due to the pound's recent plunge, later that week the offer was increased by one pound per share. and now the deal seems to be moving forward once again. so, jim, i was wondering if you could unpack some of the global dynamics at work mother are importantly, the action around mollson coors. >> i like bud, but let's cut to the chase. the best one is the last winner when they merged with bud, which is constellation brands, stz, and that's the one, dave, in illinois, you should be buying.
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l linda in texas. >> caller: my question, you've often recommended buying disney for kids. would you still recommend disney for my grandkids. should i open up roth iras for them to make the purchases? >> i'm not sure what the haw la, but i think owning disney over to time will be good. but by the time that they're 21, the market will not be focussed on espn's individual rating. r-e-s-p-e-c-t. that's what it means to me, the market may finally be giving respect back to stocks. and that's a positive
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development that could signal a move higher. on "mad money" tonight, a 100 year old company that's been a relatively sleepy name until recently. i'm taking a look at the lux corporation. then, what does the gridlock in washington have to do with your portfolio? plus, is your local shopping mall good for more than just running errands? tonight i'm sitting down with a realtor, one of the biggest in the world. stick with cramer! don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #mad tweets. send jim an e-mail to "mad money" @cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.
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wonder, what the heck is going on. and that's how i really feel about the lux corp. that's what payment solutions company best known for printing checks. so far this year, the lux stock has given you more than 20% gain, which is pretty darn impressive when you consider that nobody uses checks anymore. well, i still do. but i wanted to dig deeper and show you what's allowing this one sleepy name to put on such a magnificent rally. i'm always looking for situations where the stripes are changing. this is one of them. deluxe is more than a century old. remember cash? the company now sells a suite of products and services for small businesses and financial institutions, and that business is doing quite well. they provide everything from web services and search engine market being to affordable logo
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design. and deposit tickets. their financial business offers a broad set of solutions, included but not limited to checks. that helps financial institutions build lasting customer relations, and finally, it still has its check division, one of. largest consumer check suppliers and designer chex. -- checks. when your bank sends you a big box of checks, chances are it was made by deluxe. after declining by 12% in 2015, it's rallied from $54 to $67. the company saw serious
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shrinkage. that was caused by payroll ro s -- processors to automatic bill payment services for virtually everything. in this environment, deluxe should be a punching bag, and sure enough, their check business has been steadily declining. the other cause? aside from checks, these guys are all about helping small businesses. but in 2015 we saw a major downtick. it hurt the bottom line. even last year when deluxe stock price was tanking, management remained steadfast. they were incredibly optimistic about the long term. that's what i tell you to look for. and checks seem to be going the way of the dinosaurs, but they never viewed this as a death sentence, why? because they've been spending
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aggressively to make sure customers know they're more han just a check company. they have the one stop shop for businesses to survive. but the deluxe ceo knew he needed to help his company stand out from the pack and differentiate as a service proceeder to help businesses so they can focus on what they're good at. they need to replace the revenue from the disappearing check division with more service offering, by 2018 they're planning for deluxe to get 40% of its sales from other marketing. they were making real progress. deluxe expects its marketing and service business to generate 615, $630 million, up from $530 million last year. that's very hard to find.
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if they can hit those numbers, this faster part of the business will make up 34% of the company's revenue, up from just under 30% last year. it looks do-able. during that same conference call, the market didn't understand how their company was transforming itself. on top of that, back in october of last year, they acquired data mix for the financial sector for $160 million. in another move designed to bulk up the portfolio businesses that have nothing to do would checks. ever since that january conference call, though, investors began to realize deluxe wasn't going to shrivel up and die, because the company's well on its way to rans forming itself to something more relevant to the modern world. we saw that when deluxe had terrific bottom line in april. again, the investments leash ran
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began making moves four years ago. and he spelled out what the faster growing marketing and service sector is going to look like. they saw it growing at a 15% to 19%. social media growing in the low single digits. you didn't know they did all this stuff? the financial institutions services could grow like double digits. they announced a buyback because managers believed that their stock was too darn cheap. narrowed four year guidance. the forecast for the next quarter was weaker than expected. the stock fell 1.7% the next day. remember i told you it was almost impossible to keep track
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of things? which is why i think the market the misvalued deluxe. toward our goal of mos representing 40%. we also expect over 10% of total company revenue mix to be in the higher growth mobile. in addition to the small business divisions, they're also moving to the much prized financial tech space. that's why schramm said, i believe the market is not fully understanding or valuing the exceptional stretch of deluxe. even after the 24% rally year-to-date, he briefs it has more room to run. in short, schramm is adamant that deluxe's turn around is totally on schedule.
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not to mention other business service providers like adp, it 25%. i think schramm is right. i think deluxe deserves to go higher. let me give you the bottom line on deloubs. when you think of deluxe as an absolute play on checks, but if you look under the hood, it is very cheer that deluxe's stock remains quite undervalued, and there aren't that many obviously cheap stocks like that left in this whole market. much more mod mond "mad mong up. is the economy slowing down or speeding up? then i'm talking to a ceo of
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kimco. i've got the exclusive. you're not go being to want to miss my interview with ionis' pharmaceuticals dr. stanley cook. stick with cramer. people talk about deals on their auto insurance. wouldn't a deal involve two parties discussing something? a little give, a little take. because last time you checked, your rate was just whatever they say it is. why not give you some say in the matter? or even better, let your driving do the talking.
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okay. so who's right? the slow down camp? or the acceleration camp. when you look at the charts, like i do every weekend, it's almost impossible to tell, but the acceleration camp remains a hidden source of strength in this market. what do i mean by who's right? in this moment we are seeing rallies in two groups of stocks. one does better when the economy is slowing, and the other does better when the economy is expapding. and both groups are going higher. as someone who's studied the market for 36 years, this is a
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total conundrum. if you believe the economy is weakening and yyou believe the global economy is petering out, too you're going to gravitate toward utilities. they thrive in an economy that has low interest rates. these dividend yields offer you very little support in most cases. let's talk about simon property group. this is the nation's largest shopping organizer. with 10 year treasuries. and dividend boosts, whereas the income from bonds is static, and we know the company likes to raise its dividend. five years ago, they paid out a
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3.50 dividend. let's holook at it another way. simon is an 2$227 stock. and the $6 swing is nothing. it was 193. so if it revisits that level, which isn't that far-fetched, just go ask ford motor, you're looking at a $28 loss, even including the dividend. i don't regard $6.35 payout as significant protection. they'll pay you a 70 cent
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divide dividend. kimberly-clark is not on the new high list. hasn't reported a quarter that was widely subpar. and i simply don't know if it's enough to keep kimberly clark stock from falling further. instinct says it may be though, but when the stock was eight points higher than where it is now, it sure wasn't protected by that 92 cent dividend. now i get that the steel was talking a good game, they're big winners now that our government has shut out china and korea. but the techs, you could not have seen the boom we're seeing in all sorts of tech stocks sure
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there are takeovers occurring. and how else do you read the housewares? think about the new highs. fortune brands. stanley, black & decker, and lowe's. now the fact that many industrials like illinois tool works, cat pill caterpillar, it that the economy is doing better than we think. this is exasperating for me. let me give you my bottom line. i'd argue that the two camps are putting their money where their mouth is. is it possible they could both be right? if you brielieve the fed can ge stronger without raising rates it's possible. but maybe it's that this market like washington is about
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gridlock. there's gridlock right now as we wait for things to resolve themselves one way or the other in the stock market, and gridlock as repulsive as it might be in real life, very, very good for stock prices. michael in louisiana. michael? >> caller: hey, jim, how's it going? >> really good. how about you? >> caller: i have a quick question, part of my benefits with work is i get a 15% discount with spirit airlines. in 2014, it went up to $80 something an hour. do you think now is a good time to buy jet blue sock? >> the values, it doesn't mean short term, but long term i would do it. i think that the low prices can't last. i think the airlines are doing too well. there are short-term factors.
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gridlock. it's causing plenty of confusion of where we're a heading next. much more "mad money" ahead. despite all the talk, i'm talking about something that's up 20% year-to-date. then it's a biotech that has been written off by wall street, at least until today. i'm sitting down with the ceo of ionis. to get all the details. and rapid fire in a very special edition of the lightning round. so stick with cramer! k.
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-it's fair. -and it's fast. look good? looks great. this is how car buying was always meant to be. this is truecar. ♪ during the first half of the year, few groups performed better than the high-yield investment trust. one of the biggest leaders, kimcokim co realty, one we've liked for a long time. it's trading in open air shopping centers. if you thought they'd been having a difficult time, you'd
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be wrong. increased by 3.1%. kimco announced a series of initiatives to hope clean up its balance sheet, put it all together, and t2.3% return look pretty good. i think people will be in this bond market alternative position. let's take a closer look with connor flinn, hear more about his kwp a his company and where it's headed. like so many people, i talk to a lot of funds, hedge funds. they say oh, geez, kimco realty, that's in the cross hairs of amazon. but when i look at the companies in your shopping centers, almost every one of them can easily compete against amazon. >> that's exactly right. we like to say we're in the sweet spot of retail. and there's a lot of talk about the omni channel approach to
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retail. that's where you're seeing people doing very good at both. e-commerce as well as physical bricks and mortar. amazon announced opening physical stores. >> you've got some really high-end shops. the highest-end super markets. are they concerned about amazon? >> people are trying to test a lot of products, same-day delivery, put basket sites together, you'll see them trying out drive throughs as well so people don't have to come into the grocery store and coordinating your kids. insta cart and others are partnering with different grocery banners, but right now the grocery business is a very thin margin business, so when delivery comes into the equation it makes it difficult to make the numbers work. >> you have excelled in unbelievable discounters, ross and tj be being the best
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examples. >> absolutely. tjx and ross are some of the shining stars in retail today. they've done a brilliant job in pinpointing what the american consumer is looking for. we take be advantage of the last mile. so our ownership position in the real estate that we own is very close to where people live and work. so that's that last mile, that connectivity point. >> and that's what don wood was telling us. it's not so much that they love to go to amazon. they love the convenience of amazon and love the convenience of kimco, because your shopping centers are sol of some of the real estate all over the country. i think about the sports authority situation. it's a short-term tailwind, but a lot of head wind. >> we're in a 38 year low. it's a good place to be. you have the leverage right now. and we hit an eight-year high in
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occupancy, we can really drive rents. for example, the new leases we signed were almost 30% higher than the previous rent. so you can see the supply and demand we have in our favor right now. >> there's a mention at the end of the conference call about kmart. but some of these leases have been 20 years. in some ways you want kmart to move on. how about this, those leases are worth more to someone else. >> we like to think of them as future opportunities. they haare very low-rent. some of those leases were signed in the '50s. geez. >> it's just right for redevelopment. >> i wanted to know. there's an outfit we happen to like, but not the stock. the stock's been uncomfortable. but it's bed bath. there's a great kimco shopping
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center near me. it's terrific. and i'm thinking, okay, harman's doing good. and across the street's bed bath. and the balance sheet's good, but when you saw sports authority, their numbers started going down. does it hit your radar screen or do you look at both? >> we look at both. and bed bath has been a great retailer. they have a lot of different flags, beauty right now is doing fantastic. look at ulta, unbelievable. >> a lot of people, the short sellers say oh, jim, ulta, they're everywhere already, but that's not true, right? i mean, they have a model where you need more ultas. >> and they're looking at taking pieces of sports authority. so they're a great player for us to take more space and continue to grow. the health, wellness and beauty concepts are doing fantastic. >> and pets. >> exactly. petco. >> we think the humanization of
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pets is one of the great themes. >> nobody cut back on pet spending. you cut back on what you feed yourself but you keep buying organic dog food. >> we look at themes that lasted through the oil decline. and we come back to pets. amazon pets that i know of. >> they're part of the family is really what it comes down to. you look at them as part of the family, and you want to give what's best to your family. >> kimco's been a great story. we've been backing it ever since we've heard people say it's a short. we know your stuff. that's conner flinn, "mad money's" back. what's better than "mad money"? how about more "mad money"? follow "mad money" on facebook, twitter and instagram to go one on one with cramer. >> with reaction. what other questions do we have? ah, i always tell people you've got to start with an index fund,
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because i need to you be diversified. >> get more with guests. >> how do you stay sharp? >> and go behind the scenes with the most interactive show in television. >> if you can't explain in three bullets why you're buying a certain stock, don't buy! >> follow mad money today. gain the freedom to fumble with the new water and shatter-resistant samsung galaxy s7 active. exclusively at at&t.
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. before we start the light nip round, i've got to mention what a powerhouse, to richard perez of ups, and more, all on closing bell tomorrow. starting at p:00 p.m. this is not to be missed. and now, it is time. it's time for the lightning round. and then the light nning round over. >> caller: ba, ba,ba boo-yah.
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the company is inferna. don't buy. >> how about hardaway in maryland. >> caller: boo-yah. first of all, much gratitude for you for all you do for the small investors. >> yes, thank you very much. na that's what we try to do. >> caller: my stock is suncoke. >> i've got to runaway from that thing, not toward it. that's too hard for me. let's go to sal in michigan. sal. sal? hey, sal? >> caller: jim. >> sal. >> caller: a big michigan
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smartsmart -- spartan boo-yah. >> i love football. what's happenin'? >> caller: nordic american tanker, nat. it's just under $12. >> i don't know, when they did that dividend thing last week, it was bad. i don't know. maybe we have to have herb on this. it was looking good for a while. i got to tell you, i am now back in the doefbn't buy. that was insane. one more? let's take greg in texas. greg. >> caller: yes, sir. good afternoon, mr. cramer. being a novice investor, i'm looking at cooper tire. all the fundamentals look good. they beat their equity predictions last three quarters.
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their ess looks good. >> but that call from ford motor talking about peaking motor. i'm going to say no to that juajua one, and that is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade. but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade. intensely-flavored.. colorfully-diverse. beautifully-misshapen. cultivated for generations, it's the unexpected hero of any dish.
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pharmaceuticals were up higher today at $9 or 30%? here's a biotech that's been written off by wall street at least until today. it has pioneered anti-sense technology which makes them work on drugs that target the rna in your cells. think of rna as the biological equivalent of middle management. so with all of the messages rna's carrying, you can focus a lot of problems. they have 38 drugs in their pipeline and the stock got hammered. then glaxo smithkline were not going forward with a drug for cardiomyopathy. today ionis has come rolling
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back up to $38 based on data on their spinal muscular atrophy drug. it is the leading cause of infantile deaths and some are saying this could be a $2 billion franchise. eionis could get $150 million i milestone payments on top of the $75 million license fee that biogen just paid them. the company's made some missteps in the past. but there are a lot of drugs in the pipe that could pay off, including the anti-coe ago lants, and some diabetes drugs, and an early stage cancer therapy. does this company have so many shots on goal that a few are bound to make it in all the way? let's a check in with the ceo, dr. stanley crook. welcome to "mad money." >> it's great to be back, thanks for having me. >> this is a monumental
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milestone. i want you to tell people what it means for sufferers, what it means for the families and what it could mean for ionis. >> type one sma is the most frequent cause of infant death, after diagnosis, infants that are diagnosed progress rapidly with more than half of them or half of them requiring permanent ventilation or they're unfortunately dead by ages 8 month to 10 months of age. the analysis we did over the weekend was an analysis that we agreed with, with the fda to do, which is a prespecified, interim analysis of a single critical endpoint that we agreed with, with the fda to do. of course we looked at all of the various end point, and our end points when the study is finished haven't changed the and what the analysis demonstrated
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is that we were having substantial benefit in these patients. what we looked at was the ability of these patients to use their muscles, measured by significant developmental milestones, like being able to raise their arms or legs, because at this stage they're so weak they can't do any of that, to sit, to, which has never happened with an sme baby untreated to stand and to walk. and it, what we demonstrated was highly statistically significant differences between the treated babies and the control babies which confirmed what we had seen in the phase two study that we reported a number offen typ eti. then it was all positive. this was great news. >> you have come on the show many times and told us this would happen. why does it take so long, given
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the fact that lives are at stake? i mean, you have said many times, this drug works. how did it finally happen that the fda realized it had to let people have this drug? >> to put it in gone tecontext, conception only began six years ago. and you know, regulatory agencies have their responsibilities to assure safety and to prove efficacy, and what took a great deal of time was conversations between us and regulatory agencies around the world about what would be the right analysis to do and when to do it with regard to a interim analysis of this blinded phase three study. and what we wanted to make sure is that when we did the analysis that there was a reasonable chance it would be positive,
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because it's not when you file, it's when you get approved that matters. and in the case of these babies, every month matters, so we think we've made the right decision. we appreciate the cooperative nature of our actions with regulatory agencies, and now we can move very aggressively to bring this study to an end, to ensure that the babies on the control arm can now get it, and by ex panprogram. and it's important to me that babies around the world will be able to access it sooner. >> biogen's a very big company. the april lists are using a range between 1.2 and $2 billion for tasales. is there something else happening? or that this works better? >> well, i think the results
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that believwe've reported are t remarkable. the estimates of the number of infants born each year with sma vary, but the estimates we've been using are around 30,000 infants around the world. about half of those are type one. so the incidence of half of all babies born with sma. the prevalence is very low, because unfortunately, these babies don't live. so if you start thinking about the kind of benefit that we've seen. the fact that the benefit seems to continue to increase the longer we treat and the earlier we treat the better it is, and that we've seen, you know, very encouraging data in the older children with type two sma, you can easily come to a notion of very large commercial opportunity. obviously, that's biogen's area
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of responsibility and so i won't be able to comment further, other than we believe this is an enormous commercial opportunity. >> excellent. dr. stanley krook, i know how hard you've worked on this, congratulations, sir. >> thanks so much. >> it's a very big drug. now remember, they have royalty to it. don't get too excited, because it's not all theirs. it's a biogen split. but this is a big win for ionis. stay with cramer. products and services, but they demand the best shopping experiences. they're your customers. and by blending physical with digital, cognizant is helping 8 of the 10 largest u.s. retailers meet their demands with more responsive retail models... ones that transcend channels and locations, anticipate expectations... creating new ways to engage at every imaginable touch-point. it's a new day in retail, and together, we're building the store of the future. digital works for retail. let's talk about how digital works for your business.
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will your business be ready when growth presents itself? american express open cards can help you take on a new job, or fill a big order or expand your office and take on whatever comes next. find out how american express cards and services can help prepare you for growth at open.com. light earnings, but 0-3 today. integrated device technology, same with texas roadhouse. there's always a bull market somewhere, i promise to find it 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 silicon valley flower start-up has seen spectacular growth. christina: we've completely changed the way customers buy flowers online now. lemonis: but it might not be long before the bloom is off the rose. christina: i'm worried they're gonna beat us to market. lemonis: its rivals are catching up. christina: to not be able to raise capital and then to see competitors come in and raise $10, $12, $15 million -- that does affect me. lemonis: its technology is falling short. it's not a great website. and it's frustrated founder is letting her bitterness get the best of her. why haven't you been able to raise money? christina: because i'm a woman. lemonis: this proud entrepreneur needs to let go of her hang-ups... christina: i'm not a weak woman. lemonis: i don't think you're a weak woman. ...and gain some perspective. you just made it about money. that's how it makes me feel. you just made it about money.
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