complex, looks like it's breaking out. >> gdx, been waiting to buy this stock, $20 stop. >> i'm melissa lee. thanks for watching. see you back tomorrow at 5:00 for "fast money." my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you some money. my job is not just to entertain but to entertain, put is in context. so call me at 1-800-743-cnbc or tweet me @jimcramer. talk about a tale of two markets. today we had the winners, mostly old line industrials and banks

as represented by the dow jones average, which gained 68 points. and then we had the losers, almost everything in the nasdaq down 1.39%. it's not done going down, believe me. while the s&p 500 fluctuated somewhere in between, ultimately declining 0.35%. remember when i said the bulls would love a market that didn't need to rob peter to pay paul? meaning if there was enough new money coming in from the sidelines, investors wouldn't need to brutally sell stocks in one sector in order to buy them in another. well, we clearly haven't gotten there yet. this market feels pretty zero sum right now. today there was highway robbery of the techs and the health cares, ransom money to buy shares of industrials and banks and oils. it wasn't exactly what we -- let's just say it's exactly what we don't want to see. we basically ran out of new money to fund a healthy, broad-based advance. and instead went narrow into a couple of so-so leadership

groups, which is not a positive longer term scenario. you don't want fuel stolen from the techs. you don't want fuel stolen from the health cares. the interest-rate sensitive stocks and there's dear old bond market equivalent names. you want these groups to hang in there, not get killed. like we saw in today's second shellacking after yesterday's butchering. this was a horrendous decline today. we've had a huge run since the election. you knew we were bound to get some profit taking because this market has really bolted. in november, the dow rallied 5.4%. s&p soared 3.4%. nasdaq moved up 2.6%, and the all important russell 2000 index ran up nearly 11%. now, every those advances, what did the bulls want to see? simple. the bulls wanted an easy rotation where some red-hot

stocks stalled or had some mild profit taking while others in different sectors climbed. a sign that new money was coming into the market and there was no need to steal from the tech winners like facebook or alphabet in order to fund purchases of cat ar pillar and deere and diamondback injury, that all happened to come near 5 2-week highs today. it's clear for most of the month of november, new money was flowing into stocks and the profit taking had been wild. but after the car imagine we saw in the nasdaq, we know that stage is eefr. we also wanted to see a breather in the winners after some rallies, especially in the oils and the banks. the oil rally yesterday after the shocking opec agreement to cut production was just too darn aggressive. i told you that last night. i said i couldn't stand it. even if crude keeps soars, it's wrong. i've seen a lot of rallies in my time, and i can tell you that kind of move simply isn't sustainable. >> sell, sell, sell.

>> it's built on the quick sand of panicked short sellers and fund managers who are desperate to have more energy exposure at any price. it's a sucker's game. a sucker's game to chase these stocks after that kind of move as we saw in the final hour of trading. meanwhile, the banks keep roaring because interest rates are going higher and regulations may be cut, both of which would be fabulous for earnings, but the banks don't report for ages. and interest rates spiking too hard, too fast, will squelch demand for money. it might get bad again before it gets good for some of these bank stocks. the dramatic run in the banks and the oils leave very little room for error. they've moved too far. they've moved too fast. i expect you're get a better chance to buy them at lower levels. i like both groups. let's not go crazy here. maybe if we step back and ask what's happening in the real world, we can get a better grasp of what we're seeing in these vicious upsetting moves in a market that suddenly has become a lot more difficult to navigate.

first let's go back in time to the week before the election when the seeds of this rally were planted. at the time the consensus was that hillary clinton was a shoo-in for the presidency. the senate would almost surely go democratic but the house would stay in republican hands. that meant we were likely to have four more years of gridlock and everyone was betting the senate would join hillary in hectoring the banks. most figured the economy wouldn't grow that rapidly, putting a premium on the bond market equivalent stocks. so investors bought the stocks of companies that don't need a strong economy to grow like the techs, particularly the plays on social, mobile, cloud, cybersecurity, artificial intelligence, self-driving cars, you get it. all the cool stuff we hear about all the times. these bets were being made daily before the election, and but

there will be selling opportunities with stocks that have soared too close to the sun. in short, the industrials and the banks have moved too far, too fast in one direction, while the techs, health cares and consumer goods have moved too far, too fast in the other direction. i want to go against the grain. i want to buy some stuff that's been thrown away. more on those later. and take some profits in the stuff that's just too strong. most important, i don't want to get too skeptical or cynical or negative. i think it's ridiculous to dismiss the trump rally as a fairy tale, even as i heard it all day. you can argue about whether he'll get anything done for the economy, but his administration will be better for the stock market than a president who doesn't ware about helping business.

that is what we need to focus on when we produce "mad money." let me give you the bottom line. give it some time. strap yourself in for the next rotation. i don't think we'll have all that long to wait. sharon in texas, sharon. >> caller: booyah, jim. >> booyah, sharon. >> caller: jim, i have two questions for you. the first one is specifically to walmart stock. >> yes. >> caller: if i'm correct, the last time they split was 1999. the stock split, and it was nine times before that. do you anticipate anything coming in the future where walmart would split? >> you know, i think these guys are deeply focused on jet.com and making that work and on the holiday season, paying people more, keeping them happier. i don't think they're focused on the stock as much as they used to. i don't think a split is in the cards. remember, a split is artificial. it's like did we create more value. we split the pencil. did we create more value? no. we just split it in two. all right.

bichon in california. >> caller: hi, jam. thank you very much for my taking my call. i have many shares of ford at about $14 to $16 a share. what is your opinion on future of ford with the consideration of its dividends and new president on keeping the manufacturing in u.s.? >> okay. remember, first of all, we don't care where a stock has come from. we care where it's going to. both ford and g.m., which i like more frankly. good yield. i think it's safe. they have a lot of cash. not the most exciting places on earth, but i wouldn't sell it at six times earnings even if they never moved another job to mexico, which judging by what happened today at united technologies could be the case. tom in florida, tom. >> caller: hey, jim. thanks for taking my call. >> of course. >> caller: just purchased bcs barclays. just wanted your thoughts. >> well, i've been saying that barclays was good. lloyds was okay. stay away from royal bank of scotland. i think the brexit economy, a

little overdone on the negatives. i think the british economy, very strong. i like your choice. i think it's a good one. there are two markets to watch today. while it may be time to sell some of the overbought banks and industrials while buying some beaten up tech. don't get too smug. the trump rally optimism is real, and there could be better growth down the road. that's what this is about. on "mad money" tonight, prospect of rising rates, bond equivalent stocks getting hammered but are there still options to invest here? i'm revealing one play you haven't thought of. then my thesis on two of the most talked about companies in this market, caterpillar on the upside and nvidia on the down side. plus a medical company thaton a brush with the bears now. i'll get the scoop. stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question?

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for months the high yielding bond market alternative stocks have been getting hammered, especially the real estate invest trusts, and it's only gotten worse since the election. what if you want a real estate play, a real one, where you don't need to worry about the bond market competition because it's not a real estate investment trust, doesn't pay a dividend. i'm talking about cbre group. this is the world's leading purveyor of commercial real estate services that also owns some properties of its own. basically it helps real estate investors by providing outsourced leasing, sales, appraisal, development, and property management services. the company gets three quarters of its revenue from this fee based revenue. the stock is down 15% year-to-date but i think that's this part because of substantial exposure to the uk.

so could cbre be the safer way to play commercial in this environment? let's take a closer look with the president and ceo of cbre group, get a better sense of how the company is doing. welcome to "mad money." good to see you, bob. have a seat. we've been struggling. we like real estate on the show, but we know that the real estate investment trusts have gone down because there's money that flows out of those. you're a pure play. you're about how real estate is doing globally, u.s. how is it doing? >> well, i think real estate's doing well. one of the things i want to comment on, you mentioned our stock price year-to-date, but our earnings are up almost 10% year-to-date. >> i know. that's what we got to drill down on. i think first of all this brexit thing, i think people looked at a list and say who's got british exposure and they sold. but we've heard many people say britain is on fire right now. >> what's going on there is there was a big down tick right in the wake of brexit because people were trying to figure out what was going on. since then things have

stabilized and i think the buyers and sellers are saying this may not be what we thought it was going to be. i'll tell you also on continental europe, things have been quite good this year. so the notion that this would spread beyond the uk, at least in europe, doesn't appear to be happening right now. >> that's what i thought. i'm fascinated by the united states and real estate and our new president. our new president is from real estate background. our new president wants to deregulate. that says there might be an opportunity if interest rates go a bit higher for more people to get involved in real estate, more people to rent, people to be able to do projects. these are all good things for your company. >> well, there are several things going on that could be helpful to real estate. number one, and to our company, if tax rates go down, that's a good thing. we're a big taxpayer. so that will stimulate not only our company but other companies. if infrastructure spending goes up, that could be a very good thing for our sector. regulation going down. we have a huge amount of business that we do with the

financial services industry, both as investors in real estate and as occupiers of real estate. so if regulation goes down and those companies do better, we think that will be very good for our company and our sector. >> there's a lot of m, and a activity, what is the impact for cbre if people have to relocate, change headquarters? do you make money in those situations? >> well, we serve two kinds of real estate clients. we serve investors in real estate, and we serve occupiers in real estate. so when companies move, we represent them in a number of ways. we can represent them as brokers on the move. we build buildings for them. we manage space for them. so when companies move, that creates a lot of business for us. obviously on the side of the investors in real estate, we also handle brokerage work for them. we also handle project management work for them. we do development work for them. so there's -- the movement of companies from place to place helps our business. >> how much of what you're getting are from company who realize they don't really know

as much about real estate and they should give it to someone else, to a pro? >> we outsource a lot of real estate services to big corporations, hospital systems, even government entities. so today at our investor outlook day, we talked about the fact that we think that outsourcing business has about $140 billion revenue profile. it's about $6 billion of revenue for us today, and we're by far the biggest in the sector. huge amount of growth there, jim. we've grown that business for over a decade at a double-digit organic rate. we've had also a lot of m&a activity in that area, but there's been a big grower for us for a long period of time. >> you're global. you invest. what countries, what places are the most advantageous, like the best places to invest in real estate right now? >> well, there's a couple ways we look at that. part of is where is the investment activity and where is the services activity? where we've actually seen a lot of investment activity this year has been on the continent in europe. that's where there's been a lot of -- >> how can that be? why do we think your is so week

and guest after guest says europe is good? >> it's not growing super fast, but it's growing. the fundamentals in property there are pretty good. in other words, rental rates are going up. occupancies are going up. people, i think, looked at brexit, and they said this may be more of an opportunity on the continent. so quite a bit of good. if you looked at our third quarter numbers, what you say was relatively speaking, the best part of the world for us was in continental europe. >> any regions in the u.s. seem interesting? >> the u.s. is a huge market and fimts are good. all this concern about real estate, here's the facts. >> give it to me. >> the facts are the following. rental rates are going up. occupancies are going up. unlike any other -- i'm almost 35 years in the business. unlike any other time in the industry for me, any other cycle i've been through, not a lot of new development. >> the last thing i wanted to ask you was that new building, i don't see a lot of cranes. in every city i go to, which

means the market is tight, which is good for you. >> well, it's good for a lot of people. it's good for owners in real estate. it's good forify unanimous sers of real city. we have a healthy market. this has been a slow growth environment but a long growth environment. by the way, we think it's going to keep running for a while. that's been a nice thing for real estate because it hasn't caused overbuilding. it hasn't caused interest rates to spike, and it's caused companies to remain confident that if they'll do something, there will be good results. >> i think they should take advantage that your stock is down. that's bob sell entay, ceo of cbre group. new stock for "mad money." consistent grower. with a stock that's down right now more than it should be. "mad money" is back after the break. >> announcer: coming up, what do a chip maker and a big industrial company have in common? they are both stocks to watch as

donald trump transitions to the white house. cramer has more on how to play the new american administration, next.

all right. do you buy the stocks of companies with the best near term earnings, the ones that just blew away the quarters, reported fantastic numbers? or do you buy the companies with currently depressed earnings that can make huge comebacks if the trump rally is accurately forecasting a better economy. almost every tech company that had superior earnings is being chipped or shredded in savage fashion. meanwhile you have companies like caterpillar that literally throw cold water on the remarkable rally and its own stock, saying you shouldn't get excited about what trump wants to do because federal money

might not be seen for ages. meantime, the west of the recwo is soft. caterpillar climbs today. it's up 68 cents. my suggestion. i say you bust the ole darn dichotomy. you want to bet on the mechanics of the market as much as the fundamentals of the economy. you want to seize on the fact that a pruned tree is one that often grow back faster than you realize while the other trees that aren't flowering right now will do so eventually. i mean maybe you need to buy them ahead of time. so let me give you two examples of what i'm talking about. if you look at the companies that will the single biggest earnings beats, you always come back with the same one. it was nvidia, nvda, the chip company for the internet of things, artificial intelligence, all those fantastic trends that are here to say. now, nvidia stock soared 30% when it reported its quarter. it's more than 165% for the year. while it's been pruned from 94 to 87 in the last few days, shedding $4.56 today alone, it's

still up 20 points since it reported its quarter. we know why nvidia is pulling back. it's run too much. it's being used as a source of funds so money managers who don't have new money coming in can go buy the industrials that benefit from trumponomics or the banks that win under a looser regulatory regime. nvidia also has a bad chart. but here's my take. do you really think that everything is going to go smoothly in the transition from president obama to soon to be president trump. you think the industrials can go higher on the same thing, the era of good feelings that trump created towards business? i say no way. in fact, i bet there will be speed bumps, and when they happen, managers will switch back to the companies that have the best numbers. they'll come back to nvidia. and they'll be helped because they'll want to show their clients they were smart and bought the first semiconductor play with the mostest. so how do you do it, though? this is tricky.

first you buy a little tomorrow when it's down. most likely it will be down again. sellers are too huge to finish, off loading their positions in one day. then you wait until it gets closer to where it was when it reported that monster quarter, say in the 70s. you buy a little more. worst case scenario, it gets hammered and you get to back up the truck at a terrific price. i don't know if that will happen. how about the other side? here again, i'm concerned about too much too soon. except this much it's too much in the up side. let's talk cat. stock at a 52-week high. too hot. reminds me of an egg on a red hot griddle. you cook it for nine seconds, delicious. but ten seconds, burnt mess. but if cat pulls back, that could be a chance. now you could apply the same rubric towards so many different stocks. the consumer soft good stocks that are being slaughtered. let me give you the bottom line. on the stocks of great companies being slaughters, you start

small. you get bigger on the way down. then unlike those hair trigger hedge funds, you wait for a better minute to buy more. that's how you can profit for much less risk. same things for the stocks going up. trim a little. chuck in california, chuck. >> caller: hey, jim. what's up with the crm? i've been buying it hand over fist all the way down from 76 to 68. it seems to me benioff's outfit -- >> chuck, that quarter was one of the best benioff has put up at salesforce. this is part of a vicious rotation out of companies that don't need a strong economy to grow into ones that do need a strong economy. the big guys who own these tech stocks, they're selling them off. it doesn't matter if they're good or bad. nvidia was the best of all, and that's being crushed. that's all part of the same group of stocks that they're just -- >> sell, sell, sell. >> let it rain. let it rain a little more.

jonathan in massachusetts, jonathan. >> caller: hey, jim. i bought nvidia back at 28, and obviously they've been on a tear lately. it made me think back to a pearl of wisdom from latin class that commission is derived from a wo word. i think their partnership with google's cloud is a side of rising tides in the market for gpus, and the rapid acceleration of deep learning. and artificial intelligence as a whole makes me wonder if this competition is more than who can make a better -- >> jonathan, first of all, congratulations on that incredible nvidia buy. remember, you would take the money out that you put in and play with the house's money. so take that out. i agree with you, i gave a talk today, and i said amd is in the right place at the right time. i said also that it was going to come down now like all of tech. but you buy slowly into that

decline. rodney in ohio, rodney. >> caller: hi, jim. first-time caller, longtime viewer. big booyah from ohio. >> booyah. >> caller: i'm asking about worthington industries. has it reached its peak, or is there more potential to earn there? >> here's the problem, worthington is one of those stocks that i put in the caterpillar category. that's going up so much, so fast that i don't know if i can endorse it versus the ones that are coming down so hard, so fast that i'm getting intrigued by. remember, nobody ever got -- nobody ever went broke taking a profit. all right. the market is still adjusting to president-elect trump. you know what? there's going to be plenty of bumps along the way, but that's an opportunity, an opportunity to slowly start positions in beaten down words like in nvidia and find chances to buy -- get overheated stocks like caterpillar on a discount. much more "mad money" ahead. all those holiday sweets you're sinking your teeth into, this is

the season for dental player henry schein. then immune therapies have been hailed as the future of cancer treatments. but could news that jew noe suspended a trial one such therapy take the blockbuster approach to the curb? i'm investigating what the company's struggles mean. and all of your calls rapid fire in tonight's edition of the lightning round! so trick with cramer.

what do you do when the stock of a high quality company suddenly goes out of style on the wall street fashion show through no fault of its own. henry schein, hsic, largest distributor of dental and veterinary products on earth. when the company reported a month ago, they delivered a

small earnings beat with a slight revenue miss. very strong guidance for 2017. it caused the stock to roar up 6% on the news. in the last few weeks, henry schein has been pummeled, falling back to almost where it was before the company reported that quarter. what's wrong? we've got to find out. but the problem is despite henry schein's excellent track record, this is exactly the kind of stock that does well when the economy is less than stellar. no matter what, people keep going to the dentist and taking their pets to the vet. but ever since donald trump's surprise victory, investors have been swapping out of these so-called safety stocks and buying the stocks of more cyclical companies that can produce tremendous earnings growth when the economy accelerates. in other words, henry schein is as good as it's always been, but the cyclicals have become more attractive. still, just because wall street has temporarily turned against stocks like this one. that doesn't mean you should do the same. let's check in with stanley bergman, the ceo of henry schein. mr. bergman, welcome back to "mad money." how are you? >> good to see you, jim.

>> you heard what i had to say. first i was thinking perhaps i know there had been some slowdown in dental consumables but you said those picked up in the quarter. it's not that. i just have to believe what people are doing is rotating out of henry schein because it's going to be consistently good no matter what, and that's not what they want. >> i don't know, jim. you know wall street better than me. health care stocks for some reason are just not fashionable. having said that, we are a consistent earner. we generate good sales, good eps growth, and we turn our profits into shall ca. we' -- cash. >> and you've been turning some of that cash into a buyback where you think the stock has met some level. >> as a company we've been buying back a lot of stock because of that reason. we're also investing in the business of course. >> it was down 5% for the year, and that's not the henry schein we've had during what is a slow-growth economy. i think people make snap decisions. i know that's my department, but

let's talk about the core business. how strong is, given the fact we think the humanization of pets is a major story for our times, secular growth, how strong is vet right now? >> the vet business, the companion animal in particular, has been a good business, a good grower for many, many years. the baby boomers are investing in pets. people in the developing world are starting to own pets. so the pet economy in general has been very good for companies in that space. >> all right. how about the vaccine business? is that strong? >> the vaccine business continues to grow. obviously prevention is very, very important, and it's an important part of our business in the united states. >> i notice there is some concern by some of the analysts about competition among you and some of the other players in your business, which is something that -- i'm just going to read a william player analysis which says, shooin management played down the notion of any deterioration in the competitive pricing environment for dental. i mean i've never really thought there would be competitive

pricing. is that something new? >> jim, every market is competitive. i wish we wouldn't have competitors. the market has been competitive. i've been in the business for 36 years. i don't remember a year when we've been able to say, wow, there's no commission. >> when i read the henry schein conference calls, i never have to hear about like it's a retailer that there's a promotional environment. that has not happened. >> of course we have our promotions, but the markets are relatively stable, and i think over the long run, short term, medium, long run, we will continue to be in a business that presents good selling prices, decent margins, and that's because we provide good value added services. >> you're doing some acquisitions. talk about those because i think that's how you can get accelerated growth that so many of these momentum funds demand. >> right. well, we continue to have good internal growth. >> your organic growth was very strong this quarter. >> and we continue to be in that region. we've been in the mid single digit eps sales growth for a long, long time.

at the same time, we supplement that with several hundred basis points of acquisition growth. it's a strategy that's been in place for a long time. we continue to have expectations of growing the top line through acquisitions. of course acquisitions are only real the day you sign, but there's a decent pipeline. >> so you bought 1.2 million shares during the course at an average price of 163. so someone is doing that. that seems to be a bigger amount than what you have done, or is that consistent? >> well, our board approved additional amounts of stock to be re-purchased, and we ton believe that's a good place for us to invest our capital right now. having said that, we are buying businesses as well and investing in acquisitions to expand the business. >> one last question. you said that other countries, people are starting to go brazil. pets. is that brazil? is that europe because this is a thesis we think is a 20-year thesis. >> the area, believe it or not, where our pet business is growing very, very fast is in

eastern europe. >> eastern europe? >> poland, the czech republic, romania. these are markets where we're doing very, very well in the pet business. >> to me, i know it's not the largest. but i think the pet business is just a fantastic business to be in. >> don't forget dental. dent dental's good. >> i know. that's stanley bergman, chairman and ceo of henry schein. they're all good, it just happens to be that we're in a trump rally that does not include health care. "mad money" is back after the break. oh caroline. so corporate put you up in a roadside motel. but with directv from at&t, you can download then binge watch your dvr'd shows from anywhere. that makes you more powerful than whatever it is you just stepped in.

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>> announcer: lightning round is sponsored by td ameritrade. >> it is time! it is time for the lightning round on cramer's "mad money." that's where i take your calls rapid fire. you tell me the name of 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." i'm going 0 start with john in massachusetts, john. >> caller: booyah, cramer. how are you? >> i am good. how about you, john? >> caller: great. i'm great. i just wanted to know the future

like what's your participate on international paper. >> inexpensive stock. good yield. big industrial. nice global business. i like i.p. i think you buy some here, maybe buy some lower. how about scott in ohio, scott. >> caller: hey, big buckeye, booyah to you, jimmy. >> i like that. what's going on? >> caller: i wanted to know your position on berriplasty. >> i liked it. i can't believe how far the stock has moved. in the end, it's still a company that makes containers. i prefer newell, which i know has been absolutely crushed. i've been buying it for my charitable trust right here at 45. let's go to george in new jersey, george. >> caller: good evening, jim. my stock is toro. >> wow. you know, i have not looked at toro in some time. i can give you a read-through from home depot if it would make you feel good. but that's not what it's about. let's do some work and find out how toro is doing right now. how about dominick in new york, dominick? >> caller: hey, jim, thanks for taking my call. >> of course.

>> caller: is there an upside for home depot this holiday season? >> yes, there is. come on. i mean this is a company that you buy and you hold and you do homework. buy some here. if the trump rally fizzles, you buy some lower. but they had a great quarter, and they are a great company. alex in virginia, alex. >> caller: booyah, jim. thanks for having me on. >> you bet. >> caller: i'm calling about intela therapeutics. >> too risky. too risky. you can do it totally as a spec. that's it. ed in new jersey, ed. >> caller: hey, how is it going, jim? >> real good. how about you, ed? >> caller: great. the question for you is about eto. i've been watching this since it ipoed. >> he wedon't want to mess with the broken ipos. we got too many things going wrong in good stocks. think of sales foersz. how about robert in florida. >> caller: hey, robert from south florida. good to talk to you. >> good to have you on the show. >> caller: the stock i'm calling

about is am dox, symbol dox. this is a company that saves compa companies with documents and i've always felt it's a very good company. the stock has had a big run, but i like it. it's not an expensive stock. let's go to michael in new york, michael. >> caller: hey, jim. i was able to pick up dorial green. >> i don't know, man. i don't know about that. well, whatever. he's questionable if jordan a's q. i'm sorry. go ahead. >> caller: i also want to pick your brain on therapeutic md. >> no. that's as speculative as doyle green. this is real money we're playing with. that was a reference to an eagles wide receiver that some people picked up. and that, ladies and gentlemen, is the conclusion of the lightning round! [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade. this is my new alert system

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we've got to spend some time together on these smaller cap biotechs that so many of you asked me about. i'll tell you why. because i'm worried, and i'm worried about how people are investing in them and if they know and understand the risks that they may be taking with this kind of speculation. here's a great example. last night we got some very positive news from a company called bloomberg bio. it's a development stage gene therapy company that's one of the leading players in that red

hot field of cancer immunotherapy. this is one of the sexiest areas in biotech. i understand that. blue bird stock rocketed up 14% today on the good news. the reason? the company announced some positive interim phase i clinical trial data for its multiple my el oh ma therapy. if this move has you salivating over these plays, i got to warn you about something. this is a high-risk group, and i've noticed a pattern here that i would say is less than ideal if not purely suboptimal. when a company like blue bird reports good news, only its own stock rallies. the rest of the group barely budged today. but when one of these companies reports bad news, the whole cohort gets obliterated. in fact, that's exactly what happened just last week. while most of you were steeling yourselves for thanksgiving, just last wednesday another biotech focused on cancer immunotherapy, a companied called juno therapeutics told us

they were putting the trial for their lieu yeem ya drug on hold aft after. in response, the stock lost nearly a quarter of its value in a single session, and the selloff didn't stop there. the entire cancer immunotherapy group got hammered, particularly the companies most like juno as the core science behind what they do was suddenly called entirely into question. there was a ton of negative pin action from juno's bad news. but today we hardly had any positive pin action from blue bird's good news. that's asymmetrical. that's why i'm worried. that's why i'm talking about this right now, because if you own a bunch of these cancer immunotherapy stocks, you need to know something. you are not diversified. now, i often tell you if you want to speculate on early stage biotechs, you should buy a basket of different companies in order to spread the risk around. but as we learned last week, if you're biotech basket is full of companies that all use the same

science, you haven't spread the risk around at all. you've just made one multiple bets on one thing, and i've got to tell you multiple bets on one thing, that's too risky. let's step back a little so you can understand why certain aspects of biotech speculation may be more perilous than you might think in wake of today's terrific data from blue bird buyio. companies like blue bird and juno therapeutics develop drugs that turbo charge your body's immune system so it can saech and destroy cancer cells. more specifically, these different companies are poster children for what's known as kie maric antigen therapy. lately it seems like everyone wants to get into this business because it's been viewed as perhaps the most promising area in oncology. for decades, there were only three reliable ways to fight cancer, surgery, chemo,

radiation. none of them is a sure thing, and they all come with serious, sometimes life-threatening side effects. however, in recent years, scientists have made a lot of progress with targeted cancer therapies that can attack tumors without damaging the rest of your body. many have been on the market for years, which brings us to the recent break through, cancer immunotherapy. what could be less invasive than using your own immune system to combat this dreadful disease? and the hottest area within this new field is what juno and blue bird do, cart immunotherapy. and you got a whole host of companies. you've asked me about all of them. they're all out there trying to perfect this formula. there's juno itself, but it's lead drug is supposed to treat several different varieties of leukemia and lymphoma. there's blue bird, which also has a number of non-oncology related formulations like a

product for sickle cell disease that's in phase three. then there's kite pharma. you've asked me about that one, whose lead drug has received designation for three different types of lymphoma. then there's cellectis focused on leukemia. there are a number of big pharma and biotech companies. i'm looging at you, celgene, that have parted with these smaller players or are working on similar therapies by themselves. now, this kind of immunotherapy has the potential to totally revolutionize the way we combat cancer. you might think it's safe to bet on all these companies because there's working on different diseases or using different pathways. but here's the problem. when the news is bad, the stocks all trade together. which means if you own any of these stocks, it could get slammed by a negative development in any of the others. one of the reasons this field has been so hot is that it's

supposed to have fewer side effects than other cancer therapies. but last wednesday, juno but one of his trials on hold because its lead drug caused serious brain swelling in two patients, both of whom sadly died. to make matters worse, this is not the first time that's happened. in july, the fda forced juno to put this same trial on hold over the summer after three patients died from the pre-conditioning regimen. but they removed the hold later that month. then it happened again, and the stock got eviscerated, down 24.5% in one day. you might think this problem was juno's and juno's alone, but if car-t immunotherapy is more dangerous than we thought, it calls the whole group into question. remember, the entire point of using your immune system is fight cancer is that it's supposed to be safer than chemo or radiation. but if the side effects from these therapies are killing people, then this might not be as much of a breakthrough as everyone believed.

that's why cellectis and kite have been getting pummeled on the news. and after today's data, it soared higher. but, again, while all these stocks sold off on juno's lousy data, only bluebird rallied hard on its own good news. and, look, this group issue, it's hardly isolated to cancer immunotherapy. you see something similar when any group of drug companies are focused on the same disease. the same thing happened last week with alzheimer's. eli lilly's alzheimer's drug that had seemed to promising to so many including lilly, ended up failing in a large clinical trial. that was devastating news for alzheimer's patients and their loved ones. it also eviscerated the stock. and just like we saw with juno, it didn't stop there. biogen is working on an alzheimer's treatment and their stock fell that day. ac immune lost almost 16% of its

value in that session. the issue with alzheimer's is that so far nobody has come up with a decent cure. we don't even know really how the disease works. so every time another drug fails, investors get discouraged about the entire endeavor. so here's your cautionary bottom line, people. when you're dealing with early stage drug companies that are pushing the frontiers of science like the cancer immunotherapy names, remember that bad news from any member of the group is bad news for every member of the group. i'm not saying you shouldn't speculate on these stocks, but the pin action here is one-sided, which means there's a whole other level of risk that you need to consider. and if you own blue bird, i think you should ring the register on half of your position tomorrow. let the rest run because nobody ever got hurt taking a profit.

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a new york fashion designer was once a phenomenal success... what's the biggest year that you've had? susana: 13 million. lemonis: ...but today, she finds herself under siege. susana: there's no respect here for me at all. there's no respect. where's the respect? lemonis: customers are deserting her label. anna: honestly, we didn't make any money since 2009. lemonis: friends and family are demanding a piece of her business. susana: the brothers think i owe them their birth right. lemonis: i feel like you're being kind of, like, shaken down. and instead of standing up for herself and fighting for her brand, she's letting it fall apart at the seams. susana: this is bull[bleep] it's total bull[bleep] lemonis: if i can't help her regain confidence and harness her incredible talent... susana: it's really stressful to...