tv Mad Money CNBC October 19, 2016 6:00pm-7:01pm EDT
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look at the earnings. listen to the commentary and watch this stock levitate. >> how did he do? >> that was nice. >> what? >> nine seconds! >> giddyup! >> i'm melissa i'm melissa lee. "mad money" 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 make you some money. my job is not just to entertain but to educate and teach you. so call me at 1-800-743-cnbc or tweet me @jimcramer. you knew it eventually had to happen. as we get more and more signs that hillary clinton is pulling away from donald trump in the polls, we're hearing rumbles
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that the democrats could take not one, but both houses of congress. and i'm starting to think that's a major reason why stocks aren't acting as well as we'd expect given that so far earnings season has been pretty darn strong. even as the dow rallied 41 points today. it is far more muted than one would expect with big rallied intraday usually giving up to selloffs in the late afternoon. >> sell, sell, sell. >> now, maybe the debate tonight will change things but for the first time in ages, i think it's important to frame the stock market in the context of a potential democratic landslide come election day. what would it mean for the democrats to win the house, to win the senate? what would it do to the stock market? white house, senate, house of representatives. well, first, it would most certainly elevate the more radical wing of the democratic party that views big business as the enemy.
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think bernie sanders. think elizabeth warren. so where would they do the most damage? the government intervenes in the private sector in many different ways, but the most visible areas are banking, health care, and the environment, where rules are made that can make or break many a company's earnings per share. let's start with banking. until the democratic landslide, the rap on hillary clinton was she'd be more reasonable toward the banks than president obama because she's been a big beneficiary of their giving. just being willing to talk to the bankers about the issues makes her less hostile to the industry than president obama. but if both houses of congress go democratic, i think that might put the banks right back in washington's crosshairs. it would mean more regulation, so the banks would have to hire more non-revenue-generating employees to make sure those regulations are followed. there will probably be multiple
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discussions about whether the banks are too big and, yes, too powerful. you might see suggestions that larger returns from banks means they're taking too much risk, and therefore need to be clamped down once again. why do i think all of these topics are in the air? just take a look at how the bank stocks have done after reporting what can only be described as some of the best quarters in years. quarters where lagging divisions like fixed income turn into roaring profit centers and where commercial and consumer lending has become unmitigated bright spots, yet the stocks aren't reflecting that strength because right now there's a seething debate in the democratic party about concentration in banking. we used to separate actual banking from investment banking, meaning we had bnks that did lnding and other banks that were allowed to do corporate finance. ever since the great depression, the glass/steagall act prevented depositors money from being put at risk by those non-traditional portions of the bitz of banking. but 17 years ago that law was repealed and banks could put
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these two different kinds of businesses under one roof. now in the aftermath of the financial congress, eliminated risky processes. if glass/steagall were to be revised, companies like bank of america, jpmorgan, and citigroup would literally be torn asunder. they'd be dismantled. you'd have to ask yourself is that possibly why these stocks have had such meager increases after, again, reporting what i regard as astounding results and i follow these banks incredibly closely. beyond that, you got to wonder whether the whole notion of banks being too big to run efficiently or honestly might come back to life in washington. we might think that the wells fargo's cross-selling scandal is a one off issue. but congress could pass rules that severely limit
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cross-selling or even block it entirely. that's the price the industry might have to pay for wells fargo's misbehavior. maybe the clinton administration goes back to the old 10% rule where no banks were permitted to have more than 10% of the country's business. even though many of these deals were done at the government's behest, they could just as easily be undone, something that would crater the group. and in the event of a landslide, a really aggressive congress instate fee limits and even interest rate caps on a whole host of products. that could impact all financials, including that of american express, which is soaring in after hours after a very good and, yes, surprising quarter. in short, a democratic wave on election day, a head long landslide is going to be a nightmare for the financials. that's what i think the stocks
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are saying every time i see one more report from the group. how about the drug stocks? johnson & johnson reported a very good quarter yesterday. but during the q&a on the conference call, california's proposition 61 -- i don't know if you're familiar with this thing, but this 61 came up, and really kind of dominated the discussion. that's a ballot initiative that would allow the state, which spends more than $4 billion a year on drugs, to demand veterans administration prices for the drugs that california pays. hmm, what would it mean? the v.a. pays the lowest prices of any government agency in part because it providing health care to veterans. deservi deserving. but if the initiative passes in california, you're likely go to see a ground swell of support for states, even the feds to implement pharmaceutical price controls. if you own the stocks, you're only thinking -- >> boo. >> needless to say, this could crush the profitability of these
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companies. plus we know that pharma is public enemy number one, whether it be the outrageous price increases some miscreate ants have put through. could just annihilate this group. i think that's also why the biotechs act so badly. this group, which is so sensitive to random tweets by hillary clinton or even non-kaed bernie sanders has become persona non grata ahead the election. then there are the rules for the environment. we've had a bit of a coal come back of late, but you can forget that if we get a democratic sweep. you might even need to begin the countdown to the end of fossil fuels in this country or at least investing in them for any success. the oil stocks indeed have been rallying when crude passed $50. but this is a group that investors will most certainly pay less for if congress changes hands. if the democrats sweep, i can
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tell you that getting permitting for new natural gas or oil pipeline might become just too prohibitive to justify. oh, and forget about mergers. i'd expect the justice department's antitrust division to block anything that would create excessive concentration whether it be the monsanto deal or even walgreens and rite aid. that one seems to not be working the aall. but none of these deals would happen. i don't even think the lawyers would check off on the companies doing them in the first place. i do hear there could be some positives, for example, i keep hearing that government will finally start spending more on infrastructure, which will be a boone to caterpillar. we like martin marietta materials and also vulcan. really? you think that can make up for all the things i just talked about, especially when i've only scratched the surface of what could go wrong. i haven't even touched on a possibility of a huge increase in the minimum wage. the fact is that would be a gigantic negative for the earnings of restaurants and
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retailers. the tepid action so far this earning season does not indicate the results are sub par. it's a reflection of the fact that money managers are worried about a democratic landslide come election day. so they're selling anything the government could potentially squelch. if that's the case, then this market will have a bias down despite these excellent numbers because government interference can be a real earnings killer. and in the end, that's what the stock market's all about. let's go to tom in connecticut. tom. >> caller: hey, jim. tom here in the great taxation state of connecticut. regarding fitbit, hey, last november you spoke very highly of fitbit. in fact, you kind of touted it as a potential buy. i bought in at $28.72, and now, as you can see, it hasn't performed quite to our expectations. so should i sell for a capital gains offset or hold and hold on? >> this is a great question. first time, as you know, we have
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total accountability on this show. i have said that i got fitbit wrong. i actually did a whole piece about why i got it wrong. we had james park on recently. he's the ceo, and i still believe in the company. i do not think you should sell it down here at $14. i think it could have a good holiday season. but as i said in that piece and subsequent times, including when we just interviewed james, i had too much faith in the stock, and i was wrong. richard in arizona. richard. >> caller: hello, jim. about 18 months ago, you said that hpq was the play for 3-d printers and then about six months, you said that alcoa was the play. so is there still a future in 3-d printers? >> yes. i think you have to separate the two. hpq, which is the hp ink does have a really interesting service model for 3-d printing. alcoa has a special technology.
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my charitable trust owns it in part because they have a very special technology that allows 3-d printing to be done in industrial instances. both of these are more promising than any of the consumer 3-d printing stocks that are currently out there. can i go to erica in california, please. erica. >> caller: hi, jim. the oracle of cnbc. i love you coining new phrases like people are cooky. got one of your books for my son james. >> thank you. >> caller: i missed the run up on expedia. for five days now, it almost went up 8% from below $117 to $125 today. is this due to the october 27th earning date, or did i miss important notes like increase in travel or other miracles? trading wisdom tells us not to chase a stock, especially after being up 8%. should i enter with a small position? >> you know, this is a very
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tough one because, erica, first of all thank you for the kind words. we have pushing this expedia nonstop that's because integral to owning inns in this country and hotels and all sorts of travel. the stock just had to move. i think now you got to wait for it to pull back. i see sus kwa hahn na pushed it again tonight. it is a stock we think is inherently undervalued. maybe you have to own some, but then let it come down. because in "mad money" parlance, we do not chase stocks. and if you were to buy expedia tomorrow, you indeed would be chasing. this market's getting nervous about the idea of a democratic landslide, and right now the stock of any company that could be affected by new regulations is feeling the pain. >> the house of pain. >> on mad tonight, there were three with the long awaited separation of rr donnelley, then there were three. i'll tell you something, it ain't working out right now. i know? of you are upset about it. i'll tell whau to make of the
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trio of companies. then the sales force secret is out. plus is the airline sector finish the its descent, which has gone on forever? after united arlz earnings yesterday, i'll tell you if the rest of the group is finally ready to fly. so stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. mary buys a little lamb. one of millions of orders on this company's servers.
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over a year ago we learned that rr donnelley, the world's largest commercial printing company, with a host of other communications related businesses, was planning to break itself up. i thought it was a brilliant idea. that breakup finally arrived earlier this month, splitting into three new companies, lsc communications, donnelly financial solutions, and the rump, rr donnelley.
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it's time to address each piece. regular viewers know i'm a big fan of these corporate divorces. i also like the old rr donnelley as a turnaround play with a juicy dividend. but not all breakups are executed equally. and so far this one has been a real dud. if you own the old rr donnelley at the beginning of august 2015 when the ceo announced the split, and if you held on to all three stocks since the plit, you're now down 28% with a huge chunk of that loss coming in the last two weeks, since the breakup. so now that the company has split itself into three different businesses and the stocks have really been hammered, we got to ask ourselves which ones are actually worth owning if anything? i always used to argue that rr donnelley was worth less than the sum of its parts but now the parts are acting like they're worse less than the whole. how should we fweel now that they've been separated? let's go through each part unemotionally. lsc communications, trading
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under lksd, got the printing business. they're a global leader in cost effective print related services including digital print as well as office products. lsc's clients include publishers of all stripes from magazines to catalogs this. is a pretty slow growth business but it has tremendous scale and the printing industry has been consolidating for years. then we had donnelly solutions. the old rr donnelley was the most trusted name in preparing financial statements for publicly traded companies, and km is the business that donnelly financial got. they primariily serve capital markets and help deliver accurate financial communications to investors and regulators. think ipo documents, shareholder reports, regulatory filings. in recent years, they've been providing data analytic services to these same clients. that's more of a growth business. finally the remainder. the new rr donnelley is a
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communications management company focused on helping clients create, manage strategies via digital and print media. they do everything from product promotion to logistics. now, before i got into the specific pros and cons of each business, okay, let me just say -- let me explain some of the rationale behind the breakup. in the old days, rr donnelley was mainly a big printing company. given that print seems to be going the way of the do do, the company spent the last decade making a series of acquisitions to diversify itself into a number of different areas related to communications. ultimately it got to the point where the printing business was holding the rest of the organization back. in the end, printing, financial solutions and communications management, well, just didn't seem like they belong under the same roof. so a little more than two weeks ago, rr donnelley officially split itself, spinning offer llc communications and donnelly financial solutions to its
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existing shareholders. i think is a very smart move. from a financial standpoint, each of these smaller companies will have a well tailored structure that fits with its growth profile. like most breakups, each company will be able to focused on what it does best rather than being lost within a larger enterprise. while i was a fan of the backup, i don't think all three stocks are necessarily worth owning. take lsc communications, the print business. we know that print media is dying as more and more people get their news online or straight from the smartphone. it's not just newspapers. who uses a printed phone book these days? who peruses a printed catalog when you can go to the company's website. the part of rr donnelley that became lsc communications has managed to hang in surprisingly well. last year their variable print sales were flat. their book and magazine printing division, that saw sales decline by 4%. part of me wants to say that lsc
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communications is the part of rr donnelley that rr donnelley didn't want because it is in secular decline. but the ceo decided to stick with this part of the business, so obviously he thinks it's got potential, no doubt because it wants to make some takeovers and lsc does have some things going for it, like tremendous scale that allows them to operate more efficiently to offer their clients the lower cost. as a matter of fact, they're the low cost producer. but ultimately lsc communications is forecasting organic shrinkage. it needs to do acquisitions now in order to grow. if it doesn't, the stock will continue to wander in the no-growth wilderness. how about donnelly financial solutions? this is less about printing and more about the sheer amount of paperwork generated by the financial sector. growing at about 1% clip, not super impressive, but not dying on the vine like the printing business. they have an asset like business model with fairly low fixed costs, which makes it easier to
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respond to fluctuations in end markets. once you sign up to have them prepare your financial statements, you're likely to keep going to them for the foreseeable future. it's sticky. in fact, donnelly financial is almost a play on the health of the stock market. so if you believe the market is headed higher long term, lots of deals, robust, i can see you wanting to own this. that leaves off with this rump of r.r. donnelly, the new rr donnelley has the strongest growth of the three although we're still talking about a low to mid single digit organic growth rate. in plain english, they pupped their clients connect with customers in a rapidly changing media environment. the one down side is they're saddled with most of the old rr donnelley debt. overall, this is the most attractive piece of the broken up company. there's one more component and that's the zwends. the old rr donnelley was attractive because it was a yield play. however, since the breakup
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earlier this month, we don't have much information about the kinds of dividends you're likely to get from its three components. the bottom line. until we know more, i just can't get too enthusiastic about lsc communications, donnelly financial services or the new rr donnelley. that may sound odd because for more than a year i recommended the old rr donnelley as a breakup play. until we know what kinds of dividends that are in the dividends, what it will be paying, i can't feel as enthusiastic as i did when this company was paving the way for a breakup. now it's arrived and we don't know enough about the plans of the components to get more positive even as there are decent fundamentals and its parts are trading at far less than i think they should be. while there's definite value here, without some analyst coverage and more information, it's tough to pound the table. but i'm urging patience here because i think the parts ultimately will be worth more than they currently sell for.
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much more "mad money" ahead. salesforce may be done with twitter, but we know what other companies they've been eyeing. i'll give you my take on their shopping list. plus the airlines have been in a holding pattern lately, but could this two-day move higher signal the sector is finally ready to fly. don't miss my take. tonight we'll give you the scoop on a biotech that one of our callers introduced us. so stick with cramer.
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some potential takeover targets that salesforce was considering back in may of this year. welcome to the brave new world of business journalism. this story is pretty startling for multiple reasons. the first is that twitter wasn't even on the list even though twitter stock was trading at just $14 when the list was made. given that we know salesforce was in talks to buy twitter before backing out because the social media company seemed to want too much money and benioff's shareholders wouldn't stand for it and started voting with their feet, i'd say it was bizarre that twitter wasn't in the leap deck. my guess was twitter wanted to be independent at the time the list was put together and the board subsequently changed its mind, although that analysis could be considered thin give the list contains other companies that aren't for sale either. now, there were 14 public companies highlighted on salesforce's shopping list and i want very much to tell you what i think the possibilities for a tie-up with salesforce might actually be for all of them. but first i need to rule out some of those on the list because they all can't fly.
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first obviously we have to rule out the companies that have actually been acquired since they wrote this memo. salesforce itself bought demand ware to further its e-commerce efforts. second, market ket tow was purchased by vista partners. another private equity firm, tam ma bravo snabed up quick. beyond that, we know that net suite, the cloud based software company that competes with salesforce in the small and medium sizes business space is currently being pursued by oracle and larry ellison already knows enough of net suite. and microsoft already bought linkedin, which was almost purchased by salesforce. what other names on the list don't make sense as takeover candidates? i have to dismiss adobe unless salesforce uncharacterically tries to do a friendly merger of equals because adobe's market
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cap is now larger than salesforce's. i think either man, benioff nor adobe's terrific ceo is ready to give up the helm. two other names on the list that used salesforce.com as a platform, work day and viva systems also seem antithetical to the company's business model. salesforce hasn't wanted -- even as work day's ceo is a great friend of mark benioff's and viva's -- well, it's actually run by an opeter gasener. i don't see either of those deals happening. now, there are a couple of other companies mentioned on the list. box, and zen desk, a storage company and a customer service business that seemed to be ruled out by the notation at the bottom. ceo has no interest. i think you can take those off the table too because there's no way benioff is going to do anything hostile. then there's tableau software,
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the analytics company that reported a very soft quarter the same day as linked in did back in february and saw its stock similarly plummet. i think tableau would be a bad fit because it's not really social, mobile, or cloud based, and those are imperatives for salesforce. service now is on the list. that's an unbelievably good company, one that uses cloud-based technology to help large businesses automate parts of their work flow. we've had the ceo on the show, and i think this is one of the best technology companies and certainly one of the fastest growing that's out there. but the $13 billion market cap company is the highest priced earnings multiple of any major company i follow at the moment. it's selling for 120 times earnings. i still have a feeling that sky-high multiple that they would have to pay to get this one is too tough for benioff to swallow. you own service now because it's a great company, not for a potential takeover although i should add there's a notation in the memo saying that salesforce would be meeting with service now in late may.
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obviously nothing came of it, or at least so far. that leaves two companies that really intrigued me. hubspot. that's a $1.9 billion business that does marketing and sales force automation and one of my favorites, peg ga systems, a competitor of salesforce that does mission critical pro-dicktipro-dicedictive marketing. i think it does make the most sense of all the companies that were listed. it's not too big at $2.5 billion. it's very good at what it does. we know when we had them on. and it's nowhere near as expensive as servicenow. hubspot also intrigues as a lead generation applications company although benioff has that area pretty well covered. we certainly saw that when we watched myriad salesforce presentations at dreamforce in san francisco two weeks ago. let's be clear. during the whole twitter back and forth, benioff repeatedly told me that he looks at everything and that he would buy something that would help his company grow, but would not buy anything that would hurt his shareholder base, something that
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clearly ruled out twitter when its stock ran to the mid-20s. like a look. >> when it comes to twitter, you have to look at it like this. you know, number one, we look at everything. it's in our interest to look at everything. we have to go deep on everything. we have to understand what is possible for our shareholders, what isn't. but in the scheme of things, if you look back at my track record as a ceo, i think you'll find that while i look at a lot of things, i actually pass on most things. >> of these, i think that peg ga systems would be the most logical, but given this document is from six months ago, don't you have to wonder that maybe it's looked on and passed on? still, what will benioff buy makes a terrific parlor game. in the end, it's pure speculation and therefore no reason to buy stocks in any of these companies. remember, i don't remember stocks on a takeover basis on "mad money" unless the fundamentals are getting stronger. fortunately, the fundamentals of so many of those companies that are listed are really great. they're so great, that i can't blame you for speculating in almost any of them. let's go to randy in california.
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randy. >> caller: baba booyah, mr. cramer. >> how are, you sir? >> caller: i'm good. i'm a young bachelor and i really appreciate you and your team does. >> thank you. >> caller: my stock is nxpi, with the recent 25% gain in the stock price and the rumors of qualcomm buying nxpi, would you buy more, sell, or stay put? >> all right. let me give you the full skinny on nxpi. it's a huge position for actionalertsplus.com, which you can afollow along. that's my charitable trust. we did trim a little bit because we felt what if no deal occurs. but we do think ultimately qualcomm would buy it. we're trying to figure out the price. i think nxpi wants 120. i don't know if qualcomm will pay it. nxpi, i would stay long. don't know if i'd chase it. john in new york, john. >> caller: held low, mr. cramer. i love your show, and you're the greatest. >> thank you.
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john. >> caller: jim, i was very happy. i'm a long term investor all my life. one of my investments is intel. last evening, intel posted great numbers for the third quarter, and then the wheels fell off 20 minutes later. i mean who's running the asylum there with those executives, with their disclosure? >> all right, john. first, thank you for the kind comments. i always say on this show that you have to listen to the conference call before you make a decision. and while you were absolutely right, that was maybe one of the best quarters i have seen from intel in many a year, they lowered the boom when they gave guidance that frankly was, indeed, very disappointing by their own measure. they said, listen, it's not going to be as we thought for the fourth quarter. and that, john, is what lowered the boom, not really guys in the asylum. just really conservative guys. as i said this morning, too conservative.
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>> i'd say peg ga systems would be the best fit, but remember we don't buy stocks on a takeover basis. much more "mad money" ahead. my take on the recent earnings from united. with american airlines reporting tomorrow, is it time for you to start booking a new position? i'll reveal how to play the space. then not everything in biotech has taken a hit this year. i'm eyeing one play an incredible, amazing, 300%. i'll reveal it just ahead. and all your calls rapid fire in tonight's edition of the lightning round. so stick with cramer.
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now that fedex has helped simplify our e-commerce, we could focus on bigger issues, like our passive aggressive environment. we're not passive aggressive. hey, hey, hey, there are no bad suggestions here... no mter how lame they are. well said, ann. i've always admired how you just say what's in your head, without thinking. very brave. good point ted. you're living proof that looks aren't everything. thank you. welcome. so, fedex helped simplify our e-commerce business and this is not a passive aggressive environment. i just wanted to say, you guys are doing a great job. what's that supposed to mean? fedex. helping small business simplify e-commerce. we're drowning in infmation. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500,
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seems so silly, yet it works like a charm. i'm talking about what we heard yesterday from united continental and what i bet we'll hear tomorrow from american airlines. while the airlines went up yesterday on the back of united couldn't 234e7b8s call and then ran up again today, you athe fa united's management didn't say anything all that positive in their comments to analysts. in fact, they talks about some of their expenses moving up, namely jet fuel. we all know by now the airlines actually rally when oil goes higher because so many money managers view oil prices as a proxy for the health of the economy. it doesn't seem to matter that higher oil directly damages their earnings. it's like they're oblivious. i know it doesn't make sense. but when i saw the american petroleum institute numbers after the close last night showing a big draw down in oil and then we got a subsequent spike in the price of crude
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today, i shook my head and i said, you know what? the airlines going to rally again today on that bad news. it's a crazy correlation, but we've all had to accept the linkage as gospel because it's very much in control of the airline stocks. however, there was one line on that united continental call that made it possible for the airline story to keep flying beyond the issue of oil. kirby told the analysts, quote, we think the revenue environment has bottomed and we're starting to see recovery in all regions with the possible exception of the atlantic. that and kirby's comments where he told us the airline is, quote, lapping many of the headwinds we're experienced over the last few quarters, end quote, are really propelling the group. given that kirby just left american, i don't think we're going to hear anything too contradictory about the industry when american reports tomorrow. why does it matter so much that things might have bottomed in an industry where there's no real
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meaningful sign of improvement? because when you anniversary the worst numbers with some more bad numbers that are ever so slightly better than the previous decline and at the same time your stock stops going down and turns up, that's the big signal that investors will soon be willing to pay much more than the seven times this year's earnings for the stocks that they're going for. yes, the current priced earnings multiple for united, which is the cheapest in the group, is going higher. we're going to pay more for maybe just the same amount of earnings. here's the thing. it takes a lot for a stock to get a valuation as low as united's was going into this quarter. a company's stock can only stay down around seven times earnings if investors know there's going to be further deterioration in its earnings. if united continental can produce numbers that are flat roother than down, it's going to get a higher priced earnings multiple. they just told you the business's bottom and we know the company is anniversarying the same bad news that's been holding it back for nearly a year. consider it the flip side of a high-priced earnings multiple stock where that company has to
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continue beating the estimates and raising its guidance in order to maintain that premium. all you got to do is stop cutting your guidance, and the airlines go higher. the analysts recognize this, which is why they now have more buy ratings than holds on the stock. plus united continental under the leadership of the ceo, who is a former railroad exec, who is widely respected in america, is much better than it used to be in terms of the on time performances and customer satisfaction reviews. here's the bottom line, even with that recognition in those upgra upgrades, i suspect united continental will be a go-time na -- to name. ual is basically the antidote to owning expensive stocks that have had remarkable runs in 2016. it i think that's what this move says. at last, more airline stock
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buyers than sellers seem to be lurking on the sidelines. stick with cramer. ♪ before the band separated over unknown creative differences. [ crash ] and reunited three dades ler for a tour that sold out in threeinutes. and yo cisco hybrid cloud handled millions of tickeorders thoubreaking a sweat. fore all of this, [ crash ] thexperts at cdw orchestrated . scalabilitby cisco. orchestration by cdw. this is the ...elevated. rx hybrid and rx f sport. get up to $5,000 customer cash on select 2016 models. see your lexus dealer.
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what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley >> announcer: lightning round is sponsored by td ameritrade. >> it is time! it's time for the lightning round! that's where i take your calls rapid fire.
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you tell me the stock. i tell you to buy, buy, buy or sell, sell, sell. we'll play this sound -- [ buzzer ] -- and then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." let's start with douglas in california. douglas. >> caller: booyah, thanks for taking my call. >> of course. >> caller: what does your horse sense say about tmo? >> tmo fisher, our charitable trust. we made a sale. we described it at actionalertsplus.com bulletin that the stock had run so much, we were more concerned that you get a chance to buy it lower. it has come down, but not low enough to be able to pull the trigger. mike in new york. mike. >> caller: hello, jim. how are you? >> i am good, mike. how about you? >> caller: i'm good. how do you think lesean mccoy enjoyed beating chip kelly, his old eagles coach the other day? >> well, we miss lesean. i wore number 25, and my dad wore number 10. a certain coach got rid of them both, and i think that was a mistake. that's about as critical as i'm going to get about the franchise i love. how can i help you with a stock?
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>> caller: i have a position in am health care and it seemed to have been in a funk for a while. i'm kind of stumped because it has good growth and it's cheap. >> that's why i want you to stick with it if not buy more. i like the story very much. i think it's a good one. tom in pennsylvania. tom. >> caller: hey, jim. tom calling from egypt, pennsylvania. appreciate your show and appreciate your advice. >> thank you. >> caller: i understand you and i really share a birthday. i guess i'm about one day, 24 hours your senior. >> excellent. you're 48. >> caller: yeah, exactly. >> not bad. good for you. how can i help? thank you, makeup. what's up? >> caller: what's your take on vie astat. >> turned out to be the winner we said it would be versus go go. we've got to do some more work because david cote talked about the connected airplane. let's get vie astat on the show,
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make some decisions. let's go to harun in michigan. >> caller: baba ba booyah. what up, jim? >> not much. how about you, partner? >> caller: i'm doing good. h and r block. >> it's come down, so you think it might be valuable. but we spoke with intuit recently. holy cow. they're taking the world by storm. intu. one more. let's go to ryan in indiana. ryan. >> caller: hey, jim. big hoosier booyah to you. ticker vvc, vehicle tr. >> straightforward producers. i've got no problem with that one at all. how about mildred in texas. mildred. >> caller: yes, jim cramer. >> yes, mildred. >> caller: can you tell me about asix? we got a few shares, and we didn't know what it was. >> that's a spinoff. we got to do too much work there because i've got to tell you it's too new, and i haven't done
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the job, a. and that, ladies and gentlemen, is the conclusion of the lightning round! >> announcer: the lightning round is sponsored by td ameritrade. first options trade. we only do it for everyone gary. well, i feel pretty smart. well, we're all abt educating people on options strategies. well, don't worry, i won't let this accomplhment go to my head. i'm still the same old gary. wait, you forgot your french dictionary. i'm still the same old gary. oh, mucho gracias. get help on options trading with thinkorswim, only at td ameritrade. this car is travelinover 200 miles per hour. to win, every millisecond matters. both on the track and thousands of miles away. with the hp of at&t, red bull racing can share critical informion out evy in of the car from vtually anywhere. akes are getting warm. confmed, daniel you need to cool your brakes. understood, bre bias back 2 clicks. giving them the agility to have speed & precision.
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it's up 370% this year alone. the company's lead drug is a treatment for various chronic inflammatory diseases. it's currently being considered -- studied in four different phase 2 trials. investors are pretty stoked about the drug's potential that they've sent the stock pretty much soaring to. it was granted orphan drug status just yesterday. it first came on our radar screen when i got a call in august in new york, just a couple weeks ago. while this is a very small, very speculative company, the kind you should only touch with maybe that you maybe can afford to lose -- remember, because i'm saying it's speculation. i still think it's intriguing especially if the results turn out to be positive. let's take a closer look with the ceo of cor bus form suit cals in order to learn more about the company. speculative situation, but we'd love to find out more. welcome to "mad money." thank you so much. >> thank you so much for having me. >> i had to put the caveat in
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because the stock's up a lot and because typically we have larger companies. but i'm going to turn the floor over to you because you're doing some amazing things, and i want our viewers to know what you're up to. >> so corbu, is a two and a half-year-old company and our focus is unique. we focus on a small family of diseases that are typically very rare. they're actually orphan diseases. they only have tens of thousands of patients in the united states. but they're diseases where the effect on the patient can be devastating, so what's called the morbidity is severe. sadly, these are diseases that are either life-threatening or actually terminal. so one of our diseases is a genetic childhood disease, cystic fibrosis. i know that's a cause very close to your heart. >> absolutely. >> and we work very closely with these patients and of course with the cystic fibrosis foundation, which is just an extraordinary group of people. >> i think people should know that they do not give $5 million grants to everybody. they are very selective and very rigorous in terms of what companies that they give money to. >> we are delighted with the
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award we received, and that award has two aspects to it in fact. the one of course is the non-dy luted financing. that's really important. but as you said, it's not money from just anyone. it's money that's coming in from really the premier group of people that are specialized in this field, and i think the credibility that comes with that is important. >> there are other phase two trials going on for other different indications. >> correct. cf is our first, one of our diseases. the other three, jim, are all rare autoimmune diseases, so they belong to the big family that sort of arthritis would belong to except they are rare. they are sadly very life-threatening, and again the effect on the patient is devastating. the first one, which i think has a lot of eyeballs on it for that disease is a disease known as systemic sclersclerosis. mostly women in their middle ages. their immune system one day starts to attack the body. their body transforms and changes. their quality of life goes down really dramatically.
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sadly, the mortality rates in this disease, for which there is absolutely no drug approved, can be as high as 80%. >> geez, okay. wow. all right. also i know that you just got good news the other day which did cause the stock to spike. >> correct. so part of our focus, as i mentioned, are orphan diseases. in the orphan disease space, there are things that happen different from other diseases. one is a recognition from the government or different authorities that what you're doing is special. so we have orphan designation and fast track designation in the u.s. from the fda. the other day we also got orphan designation for cystic fibrosis from the eu. >> do you have an indication for systemic lupus? >> yes. lupus is actually our largest disease. it's still an uncommon disease. but if you combine our four
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diseases, cystic fibrosis, scler oh derma. der matteau my oh sitis, and lastly lupus, you actually reach a population size in the western world of close to 800,000 patients. >> okay. >> remember, these are all rare or orphan diseases, and that's really different. >> the last thing i want to ask about is synthetic can bin oid. is there a way to be able to think about one of your drugs as perhaps being anti-pain someday? >> so the drug actually belongs to a class of synthetic molecules that are traditionally anal geezics. this drug is very odd. it's an anomaly. it behaves the opposite. it has no effect on pain whatever. it failed as an experimental pain drug, but what it does do very uniquely is have the ability to interact with the immune system and take very heightened inflammation back to normal. that's exciting because no one's ever managed to do that. this is a completely novel
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mechanism of action. >> you've done some financings, but right now currently you suspect you have enough cash to be able to get through your trials. >> correct. we have enough cash to get through all three data sets. >> that's terrific. i want to emphasize to people this is a very exciting company. it was brought to us by a caller, and i am so glad that the doctor has gone on the show to be able to tell the story of cor bus pharmaceuticals. stick with cramer. thank you. >> thank you so much. the highly advanced audi a4, with class-leading horsepower. today, we're seeing new technologies make healthcare more personal with patient-centric, digital innovations; from self-monitoring devices that can interpret personal data and enable targeted care, to cloud platforms that invite providers to collaborate with the patients they serve. that's why over 90%
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we've seen some great second day moves for winners lately. did you see netflix was up once again today? american express reported very good quarter after the close, and it's looking up big. you know what? that stock is so depressed, it could have a two-day move. i like to say there's always a bull market somewhere. i promise to try and find it just for you right here on "mad money." i'm jim cramer, and i will see you tomorrow!
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>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ who believe they're on the cusp of the next big fitness craze. hi, sharks. i'm mike hartwick... and i'm sarah ponn... and we're here to present our company surfset fitness. we are seeking $150,000 for 10% equity in our company. surfset fitness is surf-inspired exercise equipment
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