>> and if it's good enough for the ten year trade, good enough for tonight. google. >> and i would take el-erian's trade. >> and thanks for more "fast mo" "mad money" starts 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 you. so call me at 1-800-743-cnbc or tweet me @jimcramer. did someone forget to tell trump about the trump rally? didn't any of these business advisers let him know that dow

20,000 is in our grasp and the nasdaq, which has been red hot lately, has been led by the biotechs? while the market ultimately finished higher, dow giening 99 points, s&p claiming 0.28%, the averages, the averages got clobbered midday after the president-elect held a press conference where he called for more price competition among the drug companies. that's the exact group that had been powering the market's most recent leg up. it was a stark reminder that even though trump's pro-business, that doesn't mean he's pro every business. in some cases, he can be a one-man wrecking crew for entire sectors. later, the market did regain its footing with techs leading the way. but after today, we have to remember that this rally is based more on his big picture agenda, the tripod of lower corporate taxes, repatriation of foreign assets and deregulation. in the interim, though, there

are these knot knotty issues that trump doesn't take any prisoners when he's made up his mind -- just as he's been able to brow beat a bunch of executives into keeping their manufacturing base in the u.s., trump doesn't like the endless price increases we've seen from pharma. price increases that really haven't gone away. we know the issue is still with us because brent saunders, the ceo of allergan, started a campaign to limit these price hikes. nobody else joined him consequently investors got complacent. they figured there's nothing to worry about since it's been about a month since trump singled out drug companies. when so many great stories with told about the biotechs, people figured it was a golden opportunity to do some buying of the lag ardss in this industry that actually represent value.

yep, biotechs as value stocks. what a concept. then today trump confounded these investors and they remembered why they stayed away from the biotechs to begin with, and they headed for the hills. >> sell, sell, sell. >> now, the question is will this be a terrific buying opportunity for that entire group, like how you had to buy united technologies after trump convinced the ceo to keep 1,000 jobs -- 2,000 carrier jobs from going to mexico? will it be like boeing with a stock that roared since ceo dennis muhlenberg saw the light and said he can make some concessions on the cost of the new air force one? will it be like lockheed martin which quickly responded today that it's going to get the price of those darned f-35s down or like the autos, which got a reprieve when ford's ceo mark fields committed to making more u.s. manufacturing even as g.m.'s ceo defied the trump theory, but only because the disputed factory just doesn't make a lot of cars that get sold

in the u.s. i didn't get the sense, though, that baris is about to send any more jobs south of the border, did you? my sense? this biotech selloff will not be like that. in fact, i think trump recognizes that the drug companies are more hated than even the banks and that they've abused the system with their constant price increases. i bet heal and human services is going to do something about this whipping boy, and that will involve substantial roll backs of some drugs before this episode is over. so what do you do about this? first let's speak a little more broadly about the trump rally. allow me to make a real observation about it. trump's not in on it. i've known donald trump for years, and he's not really a stock guy. he's never really been that interested in the stock market. years ago during the apprentice days, i was a judge, he periodly asked dpor some names. i always said buy some verizon. funny thing about verizon, never comes back to bite you. it was clear at least back then that individual stocks weren't his thing. his first love was always real

estate. second, just because trump's pro-business, that doesn't necessarily mean he's pro-stock market. he figures that if business does well, then everyone does better, kind of a grow the pie, rising tide concept. but he's perfectly okay with some industries doing worse if he believes they deserve to be punished. that's why i think we all better start getting it through our heads that the trump rally is more about animal spirits than about some kind of sector rotation. trump's not trying to bless merck for coming up with a better anti-lung cancer drug as it has. and he doesn't particularly care about trying to figure out the costs and benefits of orphan drug status. so if you own health care stocks, understand that our incoming president's got a real blunder bust approach. just look at how the one pharma company that wants to hold the line on price increases, allergan, got whacked as hard as every other stock in the cohort today after the president-elect spoke.

second, the retailers simply aren't going to be able to rebound here given that trump's not dissing the notion of a border tax, meaning a tax that makes it more expensive to import goods rather than making them here. the story is changing here for these companies. textiles and apparent used to be a big business. nafta pretty much wiped it out. go check the numbers. i'm not making this stuff up. it's bad enough you have amazon going against these retailers. i saw a lot of people trying to get that new credit card from amazon today. you want a border tax that makes their profits even smaller? i'll use a technical term from wall street. yaund weight these stocks. at the same time, don't hesitate to buy the stocks of companies that benefit from the easiest leg of the trump tripod to get through, deregulation. i think there's a huge misconception about what the president and can't do in this country. if the president wants to cut taxes, he needs the help of congress. if he wants a tax holiday on the repatriation of foreign capital, he needs congress. if he wants $500 billion in

infrastructure spending, congress. while i expect congress will ultimately cooperate with trump when it comes to changing the tax code, the fact is we can't take it as a give. this process will most certainly take a lot longer than the market wants. however, the president has a lot of latitude when it comes to enforcing regulations. all he needs to do is appoint like minded people who want to deregulation to run the various agencies. i don't see any people in that cabinet that want strict enforcement of the rules that make banks less likely to lend. in terms of deregulation, i think that's what matters. same goes for oil and gas. fru trump pick the a guy who is suing the -- don't look for the government to be a big stumbling block to fossil fuels or pipelines. that's why those coal laden railroad stocks and the banks keep holding in even on down days. so my suggestion is that if you're picking individual stocks

beyond just owning s&p 500 index funds that i always stress you should have for retirement, you want to avoid mall-based retailers or drug stocks. instead search for an oil, especially if rex tillerson, the former ceo of exxon, gets confirmed as secretary of state because he's uniquely suited to opening hither to closed markets for u.s. producers. honestly, this is going to be the most pro-petroleum administration imaginable. now, maybe there will come a day when trump says, hey, we got a great drug industry, so let's embrace it. but that's unlikely to happen until they heel. he might get the department stores -- he might give them a reprieve but not until we see more american-made clothes. however, the bottom line is that oil and gas and the banks remain in the sweet spot. they're just like united technologies and boeing, which rallied after they made peace with trump. if these groups get hammered on the upcoming earnings, i'm calling it right now, right here a buying opportunity. plus the added benefit, with

energy and the banks, you don't need to be glued to twitter every minute, so you may actually be able to get something done. how about mike in connecticut, please, mike? >> caller: yes, jim. i hope you don't get tired of hearing this, but thank you, thank you, thank you for all your teachings and guidance. >> yeah, i never get tired of hearing it, and i appreciate it greatly. thank you. >> caller: great. my question is about dunkin' bran brands. with all i've been reading lately and how they've been expanding, also in europe, asia, and australia, and also jab has been interested in them. are they a buy or wait and see? and the fact that they're 99% franchise, is that effective? >> i got to tell you, the company's numbers have not been that strong, but nobody seems to care. it kind of just sits there. i don't really have a view either way because i care about the same-store sales. they're not accelerating, but a lot of people think it's a great

franchise business. i think it's a push, which means -- >> don't buy, don't buy. >> how about linda in my old home state of pennsylvania? >> caller: hi. enthusiastic new listener and first time caller. >> thank you so much for calling. how can i help? >> caller: well, first of all, you gave me a chance to say booyah. >> booyah. >> caller: thanks. i'm new to stocks, and i'm developing my portfolio. i've been seriously looking at stm and wanted to get your thoughts. >> you know, i like stmi micro, i think it's a stealth stock. they got some good numbers about p.c. growth after the close. very strong mike roves in that cohort. we are buying it at the 52-week high. but you know what? i think business is strong. and there are some companies besides nvidia that are doing well. thank you for the kind comments. the trump rally is more animal spirits than it is sector rotation. he's made up his mind about pharma, though. that gives you an opportunity to go elsewhere besides your index

fund, which you know is your first investment. on "mad money" tonight, it's a company whose products are used in everything from carpets to automobiles to fishnets. with the economy showing signs of strength, i'm digging deeper into something you've asked me about over and over again. honeywell's recent spinoff of advansix to see if it's worth holding on. in 2017, more than 11 million people gained health care purchased through the affordable care act, but with repeal and replace on deck, i'm eyeing a play that could pay to matter what helps. and pegasystems helps businesses run meaner and leaner. can it whip your portfolio into shape? i'm sitting down with the ceo. 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?

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for a long time, i've been a big advocate of breakups in order to unlock value for the share holders. i devoted an entire chapter about breakups. the best breakups also create attractive new spinoffs that are worth more as stand-alone companies than as part of a larger whole. so whenever a spinoff happens, i always say, come on, let's dig in, take a look. as you might have noticed in recent months, we've seen several large spinoffs. many of them have caught the attention of you, our viewers. what do we make of all these newly independent companies? on monday i talked about addian. that's at uv seating business spun out by johnson controls. i like both stocks. we had johnson controls on too. told a pretty compelling story. tonight i want to get into another spinoff you keep asking about and i've been kind of remiss. it's called advansix. that's the manufacturer of nylon six resin, chemical

intermediates and ammonium sulfate fertilizer that split off from honeywell roughly three months ago. so why did honeywell break up with advansix? where is the stock headed going forward? let's look under the hood and find out. first you need to consider the context. remember that in february of last year, honeywell tried and failed to acquire united technologies for $108 share. so honeywell came up with a new plan. last april we learned they were considering a sale of their nylon business, and on october 3rd, advansix officially started tradi trading. now that this business is standing on its own, what exactly is advansix? for starters, they're a leading producer of nylon 6, one of the most commonly used nylons. toothbrush bristles, surgical sutures, guitar strings, aerospace components. of course, it's in a lot of clothing. advansix gets 45% of its revenue

from nylon, another 25% comes from making ammonium sulfate, which is a type of fertilizer. and the remaining 30% comes from selling what are known as intermediates, meaning chemicals that are used as building blocks to make other chemicals. and while advansix gets 27% of its sales from out side of the u.s., all of its production takes place in america, meaning they're not going to come under fire from donald trump's twitter account. >> trump stock, trump stock. >> in short, advansix is a classic chemical play. there's a reason honeywell wanted to get rid of this. it has slower growth and lower growth margins than the rest of the company. normally this is the kind of business i wouldn't get too excited about. but in an expaending commodity, the earnings for these names tend to rocket higher because there's so much more demand for their product. if you believe both the u.s. economy and the global economy are accelerating as i do, thanks

to all the excitement over president-elect trump's pro-business ajen did, the stock might be worth owning. as far as commodity chemical plays go, advansix is a pretty good one. their business model is vertically integrated. on top of that, even though this is a small company, they have tremendous scale within the markets where they operate giving advansix a significant cost advantage over most of its competitors. this is one business where it's actually cheaper to manufacture things in the u.s. because to make nylon, you need natural gas. and we've got the cheapest nat gas in the whole world. what else? advansix has strong long-standing relationships with its main customers across all the companies's product lines. their global sales team helps them reach clients all over the world. the expect is diversified among many different markets. and thanks to the spinoff, advansix will be able to spend more of its research and development budget on developing

new products and promoting long-term growth, although they had already started do thissing under honeywell over the past couple years. this intermediates business i mentioned, this business is the lowest cost producer of something called cap row lack tup, one of the building blocks for making nylon. for years the market has been glutted but we're finally seeing some signs demand is picking up. that's good for the gross margins. as for the fertilizer business, it looks like agriculture is finally really starting to make a comeback after spending years down in the dumps. remember how we mentioned that agco looks good and so does deere. and the may nigh ln 6 business is highly cyclical. advansix has a cleaner balance sheet, and management has talked m about making some bolt-on acquisitions s something that never would have happened over the spinoff. or even returning excess cash to shareholders via buybacks or dividends. investors weren't all that

excited about this stock in the weeks immediately after the spinoff on october 3rd. advansix started trading regularly way at $16.50. since trump's surprise victory, the stock has been on a roll, climbing to $21.57. that's up more than 30% from the level where it started trading. some of that is because of the standard trump rally reasons, investors expecting a strong economy. however, part of it is because advansix reported in early november, and while the numbers weren't great in absolute terms, they represented a huge relative improvement from how this business had been doing the year before. for example, advansix posted a 4% decline in revenue. okay, not great, right, on the surface. wait a second. that's a huge improvement from the 23% dropoff that we saw last year. volume was actually up. the company also caught some major endorsements in november. blackrock, the gigantic asset manager, reported a 12.1% stake

in advansix the day after the election. a week later, firefly valued partners disclosed that they had taken a 6.7% stake in the company, which caused the stock to rally 20% over the following three sessions. in mid-december, the stock reached the low 20s, but since then it's been stalled. so what do we do with a name like advansix? no analysts have any earnings estimates out for this company yet, so we're kind of flying a little blind here. but looking at the trailing numbers from last year, advansix trades at about 8.4 times earnings, putting it at a substantial discount to albemarle, or chem or us, which has been hot. however, while it's cheap, management warned that they have some product disruptions in the fourth quarter, which means the next earnings report, it may not be that hot. i don't know if the market's prepped for that. here's the bottom line. i could see how a fresh spinoff like advansix might seem enticing, but at this point i think it's too speculative to recommend. however, i do like's advansix's

markets and the economic environment we find ourselves in makes me feel pretty darn good about the stock. i just want it to come down a bit so it's less risky and more rewarding. much more "mad money" ahead. there's not much known about the replacement for obama care except president-elect trump thinks wryou're going to be pro of it. a company that works with american express, cisco, coca-cola to maim a few, and it could help you make money. i'm looking at pegasystems with its ceo. and do traders trade in that pajamas for suit jackets? i'm telling you what their absence from this market means for your portfolio. stick with cramer.

repeal and replace.

for months, soon to be president trump and his republican allies in congress have been pushing this as their vision for the future of american health care. get rid of the affordable care act and find something better to put in its place. lately, though, it's becoming pretty clear that we've got no idea what to replace it with, even as trump is pushing congress aggressively to get on with the process. put it all together, and we're looking at a confused environment for the health care sector, especially the halt maintenance organizations that are so heavily impacted by the law. we know the gop probably has the votes to repeal obamacare, but what happens next is incredibly murky, not made any clearer by today's press conference where president-elect trump lobbed a bomb at the drug companies for price gouging. >> the drug industry has been disastrous. they're leaving left and right. they supply our drugs, but they don't make them here. they're getting away with murder. pharma.

pharma has a lot of lobbies, a lot of lobbyists and a lot of power. there's very little bidding on drugs. we're the largest buyer of drugs in the world, and yet we don't bid properly, we're going to start bidding and we're going to save billions of dollars over a period of time. >> not a trump stock, not a trump stock. >> then what happens to the managed care providers like united health, aetna, cigna, and humana to say nothing of the millions of people who might lose their insurance coverage and their subsidies. at this point it's impossible to say. but i can tell you one thing. if there's one managed kacare provider that's worth owning here, it's united health group, unh for you home gamers. there's a reason it's unmorun m than anyone else, outpa. why? because united health already removed itself from the obamacare exchanges since the business was so lousy.

some of its competitors are still participating and somewhat profiting from the exchanges although it makes them a lot more vulnerable to the repeal part of the ecation. we know the industry is going to have input into the replace part. i got to believe unh will have a lot of cachet with the trump administration given it's been a vocal critic of obamacare. let's understand what it actually means to repeal the affordable care act. i see so many people talk about it. the a.c.a. does for big things. it makes health insurance mandatory, hitting you with a fine if you don't get coverage. it prohibits insurance companies from denying coverage or charging higher premiums with people with pre-existing health conditions. it provides subsidies to help people who might have trouble paying for coverage on their own. and it created these exchanges, online marketplaces where individuals can shop for insurance. now, at first this seemed like a major boon for the insurance providers as they got hit with a

wave of subsidized new business. but over time it's become clearer not enough young and healthy people were signing up. instead these new enroles tended to be older, sicker and higher cost customers, which is why so many companies have pulled out of the exchanges or had to substantially raise their premiums. in terms of what to replace obamacare with, we know that trump is in favor of letting insurance companies sell plans across state lines, making health care premiums fully tax deductible, block-granting medicaid money to the states and putting more emphasis on health savings accounts. put it all together and i think repealing the affordable care act would probably be a wash for most of the industry. on the other hand, there will be fewer people buying insurance coverage. then again, they should be able to make more money off the patients they do have since they won't be forced to insure people who are already sick. at least that we know of. what brings me back to united health group? regardless of what happens in washington, i think u.n.h. is best of breed.

not only are they america's largest provider of health insurance, but they've also got a major division that i really don't talk enough about. it's call optum, which is part pharmacy benefit manager and part provider of software consulting and business practice outsourcing for the rest of the health care industry. as a pharmacy benefit manager or pbm, opp item is enormous. pbm help insurance providers control drug costs by creating form larrys that identify the most cost effective treatments and then buying them in bulk. plus it's a rapidly expanding business with earnings growth in the mid teens. others in the industry really have nothing like it at all. earlier this week, we learned that unh's optum arm is buying an ambulatory surgery center for $2. $2.3 billion, helping to

increase the reach in the outpatient surgery space. oh, i love this diversification. but it's not just optum, although that certainly helped unh diversify away from the tra dith health insurance business. like i mentioned earlier, they already pulled out of the obama exchanges, so any repeal would have minimum impact on their business aside from lowing company costs. plus if paul ryan gets his wishes and privatizes medicare, unh would be able to take a tremendous amount of market share among the elderly since the medicare advantage plans, third party coverage for drug costs, are already the best in the business. now, unh held its annual investor day at the end of november, and the tone of the meeting was incredibly bullish with management setting an extremely high bar for the near future, the optum is booming. their pharmacy benefit management dwis has a new relationship with cvs. they expect their medicare enrollment to increase up from

12% last year, and unh stressed that their strong cor competencies would allow the company to keep growing across the board no matter what legislation comes out of washington. here's the caveat. unh reports next tuesday, so you might want to scale into this one slowly just in case the market doesn't like what management has to say. still, even with this stock's recent run, it's trading at less than 17 times earnings. that represents a significant discount to the broader stock market even though it has better growth. on the other hand, unh trades at a premium to most of his other peers. only humana is more expensive. however, you have to remember that anthem is trying to buy cigna. these deals were all conceived back when everybody thought hillary clinton would be the next president. unh is the only major managed care company that's not involved in a messy merger. i think that makes it even more appetizing. here's the bottom line. we don't know what will happen

with health care once donald trump gets sworn in next friday. the gop has been very clear about repealing obamacare, but a lot less clear about what they'll replace it with. still, in an environment where at least some of the affordable care act is probably going away, unh is the clear winner in the insurance space. so i would be a buyer even up here, and i'd buy even more if the stock comes down. herb in florida, herb. >> caller: booyah, jim. >> booyah, herb. >> caller: how are you? >> i am good. how about you, sir? >> caller: okay. jim, i wanted to get your opinion on synergies pharmaceuticals. as you probably know, they had four phase three trials and they were all positive. two recently. they're coming up for a review no later than january 29th. >> right. >> to get an approval on that big drug. what do you think? >> i've blessed it only as a spec because this is not, say, merck.

but i do think that if someone wants it in a speculative category, not the drug category but the speculative category, i am fine with it. l let's go to terry in maryland, terry. >> caller: big booyah, jim, from the land of pleasant living. >> what's going on? >> caller: i wanted to talk about optco health. i like what the company is doing with its pipeline and acquisitions. i'm concerned with the last growth hormone drug that fell short that pfizer has an investment in. just wanted to get your thoughts. >> i was surprised. that was a comeuppance. the stock was at 11. i was surprised that it didn't -- that there wasn't good news. i thought there would be. i'm a believer in phil frost. i do think the stock remains a buy. it was just a little shocking to see that bad news come out. all right. the health care sector is going to be in limbo once trump takes office, but the one sure thing is that parts of the affordable care act look to be on the chopping block. and that's great news for united

health care, unh. much more "mad money" ahead. the competition in the cloud might be heating up, but could a play like pegasystems pay? i'm taking a closer look at what sets the company apart with its ceo. then is the pajama party over? i'm eyeing the pajama traders to see if they're finally getting some shut eye and leaving your portfolio alone. and the lightning round is just ahead. stick with cramer. ou mof l inev

lately everyone has been talking about the serns of hopefulness in the business community. look at that small business survey from earlier this week that showed the biggest increase in optimism since 1980. if companies are going to expand, they need to invest in new technology, which brings me to a stock we haven't focused on enough in a while. it's called pegasystems, the software company that helps develop custom applications for marketing, sales, and they're also involved in customer relations management. the same business as salesforce.com and also business process optimization. now, peg asystem's has got an impressive list. their most recent quarter reported in early november was solid.

like many technology names, it's been stalled for a little bit. maybe that's wrong. can this software stock keep climbing as we enter the trump era? let's take a closer look with the founder, chairman, and ceo of peg asystems to get a better sense of how his company and doing. mr. trefler, welcome back to "mad money." good to see you, sir. have a seat. >> thank you. >> you've got eight of the top ten credit issuers, eight of the top ten global banks, ten of the top ten largest health care payers, but the company started or at least your background is in winning chess. >> well, it's true that when i was in college, i won the world open chess tournament, which was a good time to retire from chess and move into computers, which is actually pretty much what happened. >> you developed programming. you're obviously a guy who likes to write code. >> you know, i've been banished from the code-writing business for the last, i'd say, 25 years at least. but i'll tell you, part of our whole philosophy is there are better ways to do coding than to have people do it. it's an interesting --

>> one of the things there are tremendously -- you're a tremendously transparent company. one of the things that i saw was that there is an indication schwab -- they want to do wire to a house, to buy a house. the complications and how difficult, pegasystems has solves these kinds of knotty issues. >> we have three core technologies that we've put together into one unified platform. very different thatten our competitors, which have bought lots of stuff and franken stacked them. so what we do for our customers is go end to end. we can go right from the customer interaction all the way through the management of the work, through the decisioning, to fulfillment. >> you solve the case, which is why i want to talk about this in the netherlands. you have developed a process, it turns out to be technology is a factor. tell us what you do.

>> i was just there a couple months ago. what they've done has revolutionized small business lending right there. much better than competitors. >> you say they, but a lot of it is peg. you credit your clients, but walk us through what you've done. >> actually, to be frank, they have their own center of excellence. they've been such good users of our technology that they did 95% of it themselves, which is part of our vision. what they're able to do is make it for a small business person to come in and use the internet to fill in some information, and they guarantee that the next day, they'll have a meeting with a loan officer with a yes or no decision for up to 1 million euro. >> i think this is so great because we hear about a lot of these smaller lenders that do crowd lending, but it's not for that size, and it's not in a way that the bank is necessarily your ally. i felt that's what they were doing here. another thing that i liked is you talk a lot about these situations like with sprint, where it's fluid. you've got to figure out how to keep that customer. >> we were very excited actually because sprint bought us, and

then their ceo publicly announced that they were using us before we had gone into production. and lo and behold the next quarter, for the first time in 14 quarters, they held their own. since then, their churn rates have been positive. they've actually had seven great quarters. >> that's why the stock has quadrupl quadruples. another one i like -- i just liked them. i liked the things i read. i saw some intanss where you talked about cross-selling. my charitable trust owns wells fargo. that's been unfortunate. but the notion of cross settling and trying to hit a target is not something pegasystems is set up about. it's set up about how to help the client. >> it's kind of a mix of the both. the key is to make sure that you're always considering what's best for the customer, not just what the customer will buy, but something that's suitable. and because we control the decisioning and we control the processes, we can really bring that to either the moment of

interaction for self-service or an assisted channel, like a branch. we can help make sure that the cross sell and upsell happens right, happens appropriately, and it completely effective and genuine. >> could have certainlied saved the bank millions of dollars in market cap. wedgwood put out a piece and they said pegasystems broadening its market opportunity. we're not surprised they showed up on salesforce.com's m&a target review. you guys are different, so it would dovetail theoretically. >> perhaps it could in theory, but i think as flattering as it is to be considered -- and it obviously says something of people being interested in us. i think this culture of merger and acquisition in software has been highly detrimental to frankly the long-term prospects of the industry and to the customer who take advantage of the software. >> explain that because most of these companies have bsh i mean

oracle has bought so many companies. salesforce is not alone. >> i think oracle is a much better company. if you go back to when larry ellison hadn't hired, you know -- >> you're willing to say -- we're on air. you're not fearful? >> well, you know, one has to be cautious appropriately, but i don't think there's anything other than the truth in what i'm saying. the reality is once oracle was a software company, and it's since became an investment bank, and it hired investment bankers. and it's been great for their shareholders, perhaps not recently, but i think it's not been good for the quality and the evolution of the software. what's really important to us is that our clients get things that are real, that the case studies you talked about and the sort of stories you see, they're very tangible. you know, it's funny, when i listen to a lot of other companies and competitors, it's all fluff. we're not the fluff company. we're the company that does the real heavy lifting. >> after i read through yours, i felt like calling the people i do -- and i do simple trades action and just say why am i

faxing this? it's 2017. why do you need a fax? and the answer is maybe because they don't have peg asystem. >> feel free to drop our name in any circumstance. >> that's alan trefler, the founder, chairman, and ceo of pegasystems. it's been a great stock. maybe you know why now. "mad money" is back after the break. di 9 otel?

>> 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." we'll start with william in louisiana, william. >> caller: hi, jim. thank you. my wife and i came up with a great name for you. we call you the expert's experts. my question is i brought bookshire hathaway b in 2010. should i hold? >> absolutely. if anything, buy more. i think the stock is incredibly undervalued. dennis in kansas, dennis. >> caller: thank you for taking my call, jim. my question is about west star energy. >> a good utility company.

i happen to favor dominion and american electric power. rita in new york, rita. >> caller: yes. i bought wisconsin energy 5 1/2 years ago on your recommendation. i did very well with it. i basically get a 6.5% dividend on it, but it has not been doing well lately, and i'm not sure what to do. >> well, rita, we're in one of those markets now that likes the super juiced industrials. it's not leaving a stock like wisconsin energy alone. i say stick with it and buy some weaker. i have no problem with it. laura in florida, laura. >> caller: hey, jim, hi. >> hey, laura, how are you? >> caller: i'm terrific. hey, listen, what do you think about sap stock? >> i think sap is doing incredibly well, and i would be a buyer of sap. by the way, i think accenture is too low. i would buy that one too. billy in massachusetts, billy. >> caller: booyah, jim. >> booyah. >> caller: thank you for all your hard work.

>> oh, thank you. >> caller: i'm interested in a stock met la toledo, ticker symbol mtd. >> old-fashioned industrial. a little overvalued right now but i have no problems buying it on weakness. richard in colorado, richard. >> caller: booyah from colorado springs. jim, my stock is hired health. >> a spinoff of kimberly-clark. it's been a disappointment. i've been flabbergasted how they haven't been able to put up some better numbers. steve in new hampshire, steve. >> caller: booyah from the live free or die state. >> thank you for calling. >> caller: thanks. first i want to thank for your advice on crm. it's been doing very well. >> thank you. >> caller: now to my question. i've been accumulating mcdermott, mdr, since a year ago december. started buying in the twos and through the fives, and it eventually became about 20% of

my portfolio. sold a portion of it back in december of just this past december and it's been trading sideways since. >> i think you hold on to the rest. you're playing pretty much with the house's money soon, and i think this infrastructure play is a good one. a lot of people left it for dead. it is not dead. nice call by you. tom in florida, tom. >> caller: hi, jim. thanks for taking my call. i love your book, get rich carefully. >> thank you so much. >> caller: my stock is an example of a stinoff from one of the major large cap chemical companies, trin sayio. >> i got to do work on it just like i did on advansix. maybe team that up with the spinoff from xerox because it is an intriguing company. it deserves more than a flip answer. elliott in california, elliott. >> caller: jim, how are you, my friend?

been watching for you 10 to 12 years now. you're great. >> thank you. >> caller: what's the upside in fcx? >> i think fcx has completed a lot of balance sheet work that it needed to do. obviously had to sell some good assets, but that's okay. i like copper here, and i think the company has gotten its act together. i think it can go higher. that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade. edstgi i lethomis mylr

o molei lo pa recong an $sa ne. and they're absolutely right. they say that it's hot...

when really, it's scorching. and while some may say the desert is desolate... we prefer secluded. what is the desert? it's absolutely what you need right now. absolutely scottsdale.

♪ ♪ the pajama game is the game i'm in ♪ ♪ and i'm proud to be in the pajama game ♪ >> what happened to those traders, traders who used to control the opening based on extraneous data and news events from overseas? where did -- where did they disappear to? ever since the election of donald trump, we've lost a great deal of the ridiculous volatility that had plagued our markets for years, the kind of volatility that led to giant distortions each morning as we had to calculate the impact of an italian bank's fail ted restructuring or a raid on the cypress financial system. how much was the collapse of the real worth? how do you factor in weak chinese ppi numbers? brexit? has to be terrible, right? the impact on our markets was always suspect, but that didn't keep these pajama traders from trying to control things in the

early morning hours. when you add in some federal reserve officials would talk about raising rates after the market opened, sparking the possibility a taper tantrum and then a selloff on the stocks that need rates to stay low to the competitive, you have a lot of action every morning that was, alas, full of sound and fury but signifying absolutely nothing. i would call these traders out regularly, giving you that pajama image just as a gratuitous slap because i think i've earned the right given my role as a dr. denton trader in a previous life. in the 80s, i would trade japan aggressively in the wee hours of the night. it worked br the '87 crash as the japanese controlled our openings because they were so powerful back then. they strode the earth like a colossus, something that's hard to believe now but was the case back then for certain. i have some theories about what happened to the feet pajama gang. first, someone got wise to these clowns. hey, if president-elect trump

can call senate minority leader schumer a clown, that's a real opening for further, let's say, list than diplomatic descriptions. i think they took their money away. i think the investors decided they couldn't stick with these fund managers who were wrong, wrong by 9:34 a.m. second, despite the stories in the press, the rest of the world just got better. britain's been up for a dozen days because brexit has created a better business environment thanks to the weaker pound. numbers out of europe, they're pretty strong. and love them or hate them, the data out of china is pretty darn good. lat rn america is no longer a disaster. third, the news flows out of the united states just got better. last night merck got some good news about keytruda. forget the development was already in the cards. this market likes to go up on the same positive data all the time. united continental issued numbers that were better than expected for december. that wasn't supposed to ham.

it front ran delta's numbers. tonight kb homes reported a fantastic earnings report. notice none of this has to do with trump. we're possessed by trump and the news business. how can you not be? the simple fact is the reason we don't care about the morning future's fluctuations up and down anymore is that there aren't any, exaggerated or not. the terror that the futures struck, rightly or wrongly, it's disappeared. we're for the bitter for getting rid of these immature trading by the pajama people who either learned the errors of their ways or maybe, just maybe, they've gotten kicked out of the business. stick with cramer. at y uauaac dore at y

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i want to wish a happy 10th anniversary to melissa lee and the fabulous gang at "fast money." wow, what a run. i like to say there's always a bull market somewhere. i promise to try to find it just for you right here on "mad money." i'm jim cramer. see you tomorrow.

-smells great. -...digging ditches... -(grunts) -mcgraw: it's all in a day's work... when you're a millionaire. -(theme music playing) -mcgraw: these folks invest in hedge trimmers, not hedge funds. they turn diy into roi, and thanks to hard work, incredible passion, and a whole lot of mud, sweat and tears, they turned their dirty jobs into filthy riches. -time to go make some money! -(honks) -mcgraw: tonight, meet a grade-school dropout who sold so much flooring, his net worth has gone through the roof, a die-hard dredger who turns mud into millions, and a demolition diva whose passion for pink has her seeing green.