>> iger. >> no. no. reed hastings. i'm telling you. say it, pete! >> you know what i'm saying. >> i'm melissa lee. thank you for watching.

>> a huge donald trump induced correction. the criticisms just keep piling up, don't they? this morning, my colleague, andrew ross sorkin, penned a column in "the new york times" about seth collarmen, entitled, a quiet investing view's giant on trump. clarmen wrote a private letter to his investors two weeks ago where he said that the euphoria since the election has created perilously high valuations. he goes on to write that

exuberant investors have focused on the potential benefits of stimulus tax cuts, while mostly ignoring risks from america-first protectionism, and the erection of new trade barriers. what else? carmen believes that trump's pro-growth policies, and i quote, again, could prove quite inflationary, which should likely shot investors. he notes that the spending could balloon the deficits, and that trump himself could be a huge negative to the market, because of his inherently unpredictable nation. in the end, clarmen says, and i quote, if things go wrong, we could find ourselves at the beginning of a lengthy decline, a rapid rise in interest rates, and inflation and global angst. okay! let's pull these apart. because while clarmen may be quiet and understated, i think he captures the consensus view these days. this consensus view is shared by

so many. first, i don't disagree that trump's unpredictable. >> bi blanched when he attackeda judge, a federal judge, in a tweet, nonetheless, the most thoughtless way to communicate since two cups attached to a string! you criticize him for blocking his order on immigration, thus putting the entire nation at risk. but just in case you think only judges get the ad hominem rap, he's condemning arnold schwarzenegger through his low apprentice ratings. our president seems to watch a ton of tv and tweets about that a lot. okay, maybe he's not what some would call presidential, at least not in the mold of his predecessors. i really don't know. i honestly don't care. i'm all about stocks, not politics. so is trump's style or his substance a reason to sell, sell, sell stocks? maybe, but it's been a pretty awful reason so far, huh? an awful bet to sell since he got elected. i think what you saw on the

campaign trail is what you're getting right now, pretty much to a tee. you had a lot of time to cogitate and sell. how about trump's plans the to cut taxes and the ballooning deficit? unlike all the deficit scolds in the media, i'm not sure how awful these cuts will be for the budget. first, the repatriation plan brings back money that's never going to be coming back here, therefore, never going to be taxed unless it gets brought back. is that so horrible? if you can't tax it right now, how it will hurt the deficit if you can tax it at a lower rate? second, i think cutting corporate taxes makes sense. we're completely and utterly uncompetitive when it comes to our corporate tax rates around the globe. that's not good. plus, shareholders in this country pay taxes on profits twice. once at the corporate level and again at the individual level. so cutting corporate taxes should give the economy a nice boost. if the price for that is a higher budget deficit, i'm happy to make that trade. frankly, i think the deficit's actually a little too low right now, if you want more growth, as i do, but admitting that is just heresy in american politics. only a guy with like a tv show

at 6:00 p.m. can get away with doing that. hey, maybe he can't get away with it, but he just did it. i totally get that tariffs are bad. i took those classes. and we may be jacking up the prices for everything we import hurting 317 million americans, in order to create, let's do it -- maybe tens of thousands of manufacturing jobs. that's a real bad trade-off, unless you're someone getting those jobs. i don't like dumping. dumping, that's unfair. let's put a tariff on that. i don't like countries that manipulate their currencies to make themselves more competitive. look at general motors today. the stock got hammered. gm still can't do well in european, because the european central bank has been pushing down the euro to make their products cheaper. the japanese has been doing this for years. the idea that the dollar may run its course, i say, bring it on. we can handle a little wage inflation at this point, too.

real wages haven't done anything for years, unless you're a real wage hedge fund manager or a ceo. but the key thing, the thing i'm really stuck on right now is this notion of perilously high valuations. i mean, if valuations are so perilous, how come we keep hitting the new highs? and this is not like 1999, when stocks were higher for no good reason. we have real earnings. it's not like the obama era, when stocks were bolstered by a lenient federal reserve with low rates. now the fed's tightening. if everything's so terrible and dangerous and unpredictable and corrosive, why the heck haven't stocks by crushed already? we've had plenty time since the election to have a knock-down, drop-dead sell-off. unlike carmen, i think a lot has to do less to do with trumpian exuberance and more to do with strong earnings, as well as the desire for a president to help companies do even better, so they can hire more people. that's been the ethos, hasn't it? can we stipulate that?

it sounds a like circular, but a pro-business president is good for business, a pro-capital president is good for capital. you may totally hate them and hate the agenda, but we're not measuring trump per share here. we're measuring earnings per share. and as unpredictable trump might be, he's totally predictable when it comes to american business. he loves it! from the stock market's point of view, that's a welcome change. the obama administration wanted labor to do well, even if it was at the exclusion of capital, especially the bankers. the bush administration figured out if they just got out of the way, good things would happen. but then they let the economy implode, because they weren't paying any attention! let me go a step further. when a -- when a company reports a terrible quarter, whether it be like a retail or like a target, or a transport like united parcel or a drug company like teva or a restaurant like buffalo wild wings, which is no wing stock, tonight, the company get -- the stock gets trashed. that's rational. all right, no one looks to be liking the stocks at disney or gilead tonight. i've got to listen to their

calls and tell you. but if a company reports a good quarter, like so many of the industrials and techs, their stocks go higher. that's rational. not irrational. and a lot more companies are reporting good quarters than bad quarters. you can call it perilous. i think it's normal. i think there's a lot of raw emotion when it comes to trump. and when people get emotional, even really smart professional money managers, they stop being able to analyze the situation as objectively as i think they should. i get that. and i, too, expect a correction some day. i mean, those are like rain. i hope we have it. i don't want snow. but rain's okay. maybe tomorrow, the president tells the chinese he's done with them and that they can't sell in the u.s. anymore. maybe he says, taiwan's legit china. maybe calls for chinese boycott. i mean, those would cause a real decline. maybe you need to raise some cash for that event. hey, nobody ever got hurt taking a profit. and the fact we don't have a correction yet certainly doesn't mean we won't have one down the

line. i'm pointing out the new highs we keep hitting are real. they're based on earnings, even if the gains could be erased if trump truly goes off the reservation, as so many think he will, if he isn't there already. in the end, these stock prices aren't a miracle. they're not. and today has been about a calm a rally as i can recall in my career. so here's the bottom line. i say, let's stipulate that things could always go wrong. let's accept the market could get hammered, and then let's proceed to find the stocks of companies that are doing well, that might turn out to be cheaper than we think if business is actually better worldwide than most of the money managers i've heard seem to believe. because as far as i'm concerned, things are better. and that, not trump, might be the real secret sauce behind this extraordinary and very real rally. let's go to emanuel in maryland. please, emanuel? >> professor cramer, thank you for taking my call. >> i'm always good to be

tenured. what's going on? >> caller: my question is on shake shack. it hasn't moved much since it's been in the mid-30s. is it because of the winter weather, people not going up and will it go up in the summer? i'm wondering if i should buy, hold, or sell and move on? >> look, i'm not a big fan of casual dining. i just not. i think one of the reasons why shake shack is kind of flatlined even though it's done kind of well is people don't like this group. they don't like the raw inflation coming in, they don't like how much they have to pay the workers. look, i think i would rather work at a shake shack than own shake shack right now. that's part of the problem. it's good to work there, but may not be a great stock to own right now. how about tim in montana, please? tim! >> caller: hi, jim! and a big old montana big sky boo-yah to you, sir. >> who doesn't like a big sky here? anyone? anyone against big sky? >> caller: i don't know who that would be. hey, i'm a first-time caller -- >> what? >> caller: and a long-time follower. and i've got a fundamentals question if you might be able to

help me out and set me in the right direction. and my stock is finnistar. and i did all the homework there and everything looked real, real good there. everything, revenues are up, your margins are up. everything's up. but the stock stays basically flat. and i referenced your book, "real money," and it says in there that if your sector moves and your stock doesn't, there might be an underlying problem in there. and i was wondering -- >> no, no, no, no, big sky, listen to me. this stock has had a monster run. just like a monster big sky run! this thing was at, i don't know, like at 19 in august and it's moved up to 30. it's doing some serious consolidating! so we like finistar. we like this segment. you got horse sense. stay long the stock. it's good! all right, the force behind the rally, maybe things are better. it's that simple. on "mad money" tonight, the cia concluded russia hacked servers

in the run-up to the u.s. presidential election with cybersecurity making headlines. i'm ranking, as you've asked me to do, the major players in the space. help you make some money off the trend. and michael kors is on sale today, but is it a bargain? even my daughter doesn't like me to buy that stuff. i'm the taking you into the wall of cramerica. and are old tech plays turning over new leafs? i'm blowing the dust off some old tickers, telling you if some of in the group are actually worth owning that you may have left for dead. 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 mad mon madmoney@cnbc.com or give us a call at 1-800-cnbc. miss something, head to "mad

money"@cnbc.com.

something puzzling happened last year. even though hackers were in the headlines constantly with the democratic party leaking like a

sieve, as the dnc got hit with one cyber attack after another, the actual cybersecurity stocks did very little. the cybersecurity complex is full of high-growth companies that are not yet profitable for the most part, and many of these stocks get ham terrified in the first couple of months of 2016 and spent the rest of the year trying to recover lost ground. in the end, the pure funds isc cybersecurity etf, or the hack, as they call it, finished the year up 2%. that dramatically light up 9.5. however, in the fine weeks since 2017 got going, the cybersecurity stocks seem to have gotten their groove back. the hack etf is now up 9% year to date, with some real standout winners in the group. and look, we know this theme is here to stay, as businesses and governments worldwide need to keep spending in order to prevent data breaches. and we know that you love to ask about these stocks and how they're doing. so the cohorts back in vogue with the wall street fashion show. i think we need to acknowledge there's been a reshuffling here,

though. the old leaders are not necessarily the new leaders. let me give you the brand-new pecking order that so many of you on twitter have asked for of the hack or of the cybersecurity stocks that we care for. if you look at the components of the hack etf, many of the biggest names in the group had a really rough year last year. the best performer was f5 networks, which is more of an application delivery networking play. it's got a security kicker. that was up 50%. both barracuda networks and symantec had good years, up 15 and 14% respectively, but they had serious underperformance in 2015, some blow-ups. proof point, checkpoint software, and cyber arc, all classic cybersecurity names managed to finish slightly positive, although palo alto networks, which used to be the most beloved name in the group got crushed. it was down 29%. impervian and fire both declined

by roughly 40%. nasty. so far in 2017, we've seen a complete reversal of the trend. just since the beginning of the year, fortinet is up an astounding 28%. symantec, checkpoint, and proof point have all rallied. fi fireeye, hammered another 7%. why have so many of these blue chip cybersecurity stocks had such a strong start to the year? one word. earnings! so far, we've had a couple of very strong quarters that have raised expectations for the entire group. first of all, proof point blew away the estimates, gave incredibly establish full-year guidance. then fortinet did even better. then checkpoint shot the lights out. we're going to hear for cyber on thursday and i wouldn't be surprised if they do the same. i think the reason for these robust numbers is pretty straight forward. whenever there's a high-profile hack in the news, like the data breaches we saw last year, it

causes executives to start discussing the issue and how much they need to spend to protect their information. remember, deadweight lots to spend, but they have to spend. may sound like an ethereal reason, but it's actually got a lot more heft than you think. for example, analysts at piper jaffrey recently conducted a survey of 163 chief information officers. they cited security as their top spending priority, with 80% saying it increased their cybersecurity spending this year, pretty remarkable, right? while this issue has been on the radar of corporate i.t. departments for a while now, cybersecurity remains a growth area, because hackers keep finding new ways to break into networks, which then requires new solutions to keep them out. just think about how many businesses have migrated to the cloud in recent years. cloud computing saving companies a lot of money on hardware, but also makes their networks more vulnerable. some would say not, but i believe it is. meaning they need to spend more to keep the bad guys from breaking into the systems. all right. here we go. drumroll! we don't va drumroll. anyway. back to the group.

first, i think the new top dog in the cybersecurity space is cze checkpoint software. that's a leading network security player that i don't talk nearly enough about. it should see an upgrade cycle for its next generation firewall products some time this year. checkpoint has been killing it lately, because the company is really good at upselling its clients on additional products. they had a lot of success with their software blade architecture, which lets companies upgrade to more individually tailored solutions. when czech point reported late last month, they delivered a fabulous -- i thought it was a typo -- a 21 cents earnings beat off $1.25 basis points, higher than expected revenue, strong guidance for the next quarter and 2017 as a whole. i'm far from the first guy to know this company was on fire. my bad, okay? for example the analysts at btig just upgraded the stock last night, and they said, late to

the party, but better late than never. i think they're right. and if you don't own this already, it's not too late to jump on the bandwagon. oo i'm blessing the checkpoint. should have blessed it earlier. i was too busy looking at the university i follow. that's the company that helps protect what are known as administrator accounts or privilege accounts. these are some of the most common targets for hackers, because if you can log into a network as an administrator, you basically got the keys to the digital kingdom. that's why protecting these accounts is the number one priority for corporate information technology departments. as i mentioned earlier, cyber arc reports on thursday. so if you don't know already, you might want to wait until after the quarter to do most of your buying, just in case the stock buts back, simply because it's already run up nearly 20% this year. we've been behind this one and had them on repeatedly. finally, this is one of the oddties of the stock market. if you want to value cybersecurity name, you know what's a value cybersecurity name? palo alto networks! it's odd to think of this former

market darling as a value play, but with the stock down nearly 50 points from its high in 2015, that's exactly what it's come. palo alto is still expensive relative to the average stock. but when you consider this company is expected to deliver 30% plus revenue growth this year, i don't know, that makes that valuation pretty attractive. palo alto's always had terrific technology, still does. and i would like even more. they report three weeks from now, so i suggest do a little buying before the quarter. now, i wish i could recommend ft. net. that's another high-quality cybersecurity name, but the stock just jumped 14% last thursday in the wake of that blowout quarter. i feel like this one has room to -- it's got some room to run, but i can't get behind it at these levels. of course, if you listened when we had fortinet's ceo on the show in may, which was a very bullish development, 17% gain, but i think there are now better opportunities in t space with clearer catalysts because of that run-up. so here's the bottom line. this cybersecurityplex is on

fire again. and given how much these stocks have run for 2017, it's time for selectivity. so i'm recommending checkpoint, cyber arc, and palo alto networks, in that order, as the ones to own. all right. much more "mad money" ahead. after michael kors' unfashionable earnings, i'm taking a trip to the mall. probably be the only one there. figure out what the heck's happening with retail. and facebook announced what's middle ageing all the headlines, but tonight i'm looking at old tech names. and it's a company more deeply involved with the affordable care act than any other i know, but with repeal and replace on deck, where could scente be headed? stick with cramer.

♪

if there's one thing we've learned this earnings season,

it's that you can't afford to be hostage to the shopping mall. this morning, michael kors, the accessory company, reported a number that looked pretty good on the surface, but when you dug down, you got a distinctly negative quarter and a totally suboptimal forecast, which sent the stock down 10%. the culprit, same as always, weak department store traffic. it never seems to end. and it shows you that even the highest and the best, not immune to the lack of customers walking around doing some shopping, which at one time was known as the great american pastime. conference call took my breath away. because once again, it showed very strong ecommerce numbers, something a retailer needs to deliver in addition to traffic, not to the exclusion of it, which is exactly what brought down the stock of target. and the secular shift in ow hemospend their money is just crushing the whole industry. places like target, think of all of those appliances, we always

talk about sharpies, think of rubber maid containers. it's gotten to the point where even mentioning the mall on a conference call is a recipe to have your stock mauled! they are dying shrines to spending the old way, even when retail looks good, it's bad. i thought gap's same-store sales were flagging, but the market couldn't hear it and the market would rally. we have to start figuring what could happen to sears holdings, given that its stock is trading at 5 and change. it was down 13% today. it was down 39% for this young year. this morning on the street.com within brian sousy laid out some of the suppliers that might get dinged when you look at what the action in that stock could bode. i know you might think that sears and kmart don't matter, because you maybe don't shop there, but the company had $23

billion in sales in the last 12 months. $23 billion is nothing to sneeze at. of course, the endless shrinkage of sears has really benefited jcpenney, because they often share malls, but it hasn't mattered that much because no one's going to the mall, as well as home depot, which has mattered. they highlighted sears's donor status. suffice it to say, if a retailer does go under, as we saw from sports authority, everybody gets hurt initially from the liquidation, but it's worth reminding ourselves, one band-aid would be fewer stores and another would be merger. the fate of michael kors, and i should throw in hanes brand, as well as newel, it doesn't have to be the fate of all suppliers. you need to be more inventive and creative, as we saw with hasbro, where its ceo talked about being more entertainment oriented when we spoke to him. hasbro has the advantage of being a toy company and a gaming

company that's linked to successful movie franchises. but it's been creative and in touch with their customers. if it was just toys on a shelf, well, it would be another loser. hey, by the way, clorox also has shifted aggressively. remember last week, they shifted aggressively to online advertising as a concession to the recognition in the drop in traffic to the regular outlets. smart. most of the suppliers, though, they're just playing the victim. they haven't reinvented or figured out ecommerce, because they never figured out their brick and mortar merchandisers would ever let them down. until they recognize the secular decline, they're doomed to have more numbers like kors did today and that makes this sector just plain old uninvestable. matt in illinois. matt? >> caller: jim? >> what's shaking? >> caller: i need your help. i need to settle a dispute i'm having in my house right now.

my dad is taking an unusually large position in nike and really for two reasons. one, because it's what we probably call best of breed. it's based on 52% of all athletic footwear and he's a big valuation guy. he's looking at the pes, historic pe in the currents. and i want you to shed some cramer light on the situation. >> normally i'm justbelieving, ? because nike is exactly what your father says. however, nike does sell around 23 times earnings. that's more than the average stock. and nike's up against not just under armour, which is flailing, but still coming out and hitting, judge had them on today at halftime, but also adidas, stan smith, too. there's too much competition. the stock's going to be in a holding pattern. that's my prediction. it's not that it's going to blow up. it's just that there are better fish to try. i wish both of you good luck

investing. wendy in illinois. wendy? >> reporter: hey, jimmy, nice talking to you. love seeing you in the morning, in the afternoon, you're great. >> thank! can't get enough. >> caller: thanks for sharing. i have auto zone the last three or four skmons last week you said, you thought it was a good buy, time to buy in. what are your thoughts this week? >> i am not relenting on this. this is all about amazon saying it might want to get into the auto part retailing business. and i've got to tell you, that is just, i think that is just not what should bring this stock down. and i'm going to throw in advanced auto parts. alike all three! i'm not backing away. and i usually do back away if amazon wants something. all right. retail, even when it looks good, it's bad. the sector uninvestable. much more "mad money" ahead. and you've heard plenty about facebook, apple, netflix, alphabet, but could old tech offer something newer tech doesn't? i'm going off the charts to find

out. and it's one of the few insurance companies that successfully managed to navigate the offeraffordable care act. and all your calls rapid fire in tonight's edition of the "lightning round." so stick with cramer.

okay. it's not been a particularly good time to own old school tech stocks. most investors would rather stick with the red-hot banks, maybe the industrials. they're shooting the lights out. stocks tend to do really well when the economy expands. even within the technology cohort itself, most of our focus has been focused on the semi-conductor names as late. you know, the internet of all things kinds of stocks.

and of course, fang, facebook, alphabet, you know. facebook, amazon, netflix. i've got to change it to fanta. it's just not working anymore. people stick with fang. the "g" is obviously google. still, there are some old school tech stocks that look interesting. we've got to go off the charts and figure out if it's something that's really happening. that's why we go to tim collins, a brilliant technician, see if these old dogs have learned any new tricks because they've been so horrible, okay? we're looking at stocks that have just been disgusting. i'm talking about j-bill circuit, cisco, not the sy, the ci kind, and oracle. here we go. let's start with cisco. it's the networking equipment titan, because collins thinks the weekly chart actually presents the greatest challenge here. cisco is set to report earnings next week and its stock is not yet poised to make a clean breakout. in collins' view, this could be a high risk, but high reward situation if you jump in before

the quarter. my charitable trust owns it. we're already in. cisco has been trading in a pretty tight channel since july. you can see that. kind of done nothing. solid floor support at 29. equally solid ceiling of resistance at 39.50. paint dry. collins expects next week's earnings could provide some resz lugs. at the moment, only a few cents below that ceiling of resistance. you can see, it's right there and if the stock can break out above that level, let's just say, he thinks it's smooth sailing to 34.35, that's where the chicken oscillator is. but he thinks it's doable. on the other hand, if it pulls back to 29, he would rather sell than stick around for potential breakdown o breakdown. nevertheless, if you want to understand, i need to introduce you to a new indicator. come up with new things.

the chandelier. the chandelier technicians should figure out when they should ride out a trend and sell. both traders and investors have a tendency to sell their winners too soon. that's something i've been worried about. the chandelier exit is a way to know of when to hold them and when to fold them. see the red line on the chart itself? that's the chandelier long exit. traders who follow this tool would sell cisco when the stock breaches that line. so right there, it drops down. you get out, okay! the gray area lower down, this whole area, this is the chandelier short exit, when the stock goes above it, it means cover your short, ander with nicely above it right now. cisco is really has more room to run. it just might take some time to pay out, though. as far as i'm concerned, there's no need for you to jump in front of next week's earnings report, just be patient, maybe you'll get a better entry point. again, my charitable trust owns

it, but has owned it forever. next up, i want you to take a gander at a more exciting chart. this is one of the world's leading suppliers of manufacturing sources. this company makes all kinds of consumer technologies, as well as industrial, networking, equipment, even medical devices. how does collins feel about this chart? first of all, you need to know that j-bill reported a very strong quarter back in december. you can see this thing just leaped, all right? and that's -- it went from $21 to $24, okay? and it was in the single session, which is a huge move for a stock like this. since then, though, jbl has pulled back somewhat and collins says its recent move, it sees it as nothing more than a pause that refreshes. in other words, jbl rks has been consolidating its big move and its tight trading range has formed a little cup pattern. there you've got the cup, okay? see that? for the last couple of weeks, and these candlesticks represent

more time than you ralz,ealize, has been trading sideways. if the stock can break out above $24.50, just a few nickels and dimes above where it's currently trading, collins believes it will trigger its next leg higher. jabil has a big up move, consolidates the move, and then goes higher. that could be totally what i think could happen with jabil. now this momentum indicator based on the amount of buyers versus sellers in a given stock, see it's breaking out above. lately the chaikin oscillator is moving above zero. at the same time, check out the stocks down. it's the most commonly used oscillator. this indicator has been hanging tight at high levels without actually going into over territory. collins thinks the trend is

still in tact. put it all together and collins believes that jabil can inch a bit higher from here, closing above 24.50, 27.50, maybe even 30 is on the way. perhaps by the end of 2017. on the other hand, if the stock pulls back to 21.50, he just says, he would be concerned, is how he put it. finally, how about the weekly chart of oracle, a stock that literally has been a very tough one to own, okay? you can see like, wow, hmm, you know what i mean? it's trading -- that would be called trading in a tight range, which is faint praise. collins thinks that oracle is finally poised to break out above this range. and given the length of this channel, any kind of breakout or unfortunately breakdown could be very, very powerful. surprising oracle, of the ones we've looked at, he thinks this has the strongest trend of all the old three tech names. it's pushing right up against

the $40 ceiling of resistance and that has held it back forev forever. i mean, look at this. every time this tries to take out the 40, it fails. on top of that, it's been trending higher. he likes that. this is a really good sign. the chaikin oscillator moved into positive sign a few weeks ago. you wouldn't know from this that anything's really happening until you looked at this and this. and you'd realize, wow, there's real big buyers underneath. ideally, collins would like to see oracle close above 40 to 50. if oracle can break out above that ceiling, collins sees it rallying to 43.50 with a real possibility of it going to 45. one caveat with oracle, this stock has been very tough to own, wherever it's traded below its 40-week moving average, that's the -- this line, okay? and while we're a half a point above it, that level right now, he -- we've got a clear floor of

support down a couple points at 38. collins be wary if we get a pullback below that key moving average. as long as we're above it, he expects oracle to be smooth sailing. these old tech stocks may lack the sex appeal of the cloud, the mobile, the social, the artificial intelligence, the machine learning, you know, the yada yada. but cisco, jabil and oracle look good at least to collins, and i wouldn't be at all surprised if he's right that they all three have more upside. stick with cramer.

it is time, it is time for the "lightning round" on cramer's "mad money." rapid fire calls, when you play this sound, then the "lightning round" is over. are you ready skee-daddy?! it's time for the "lightning round." start with raj in illinois. raj? >> caller: love the show. my question is regarding barclays. got a 38% gain on it, but -- >> i think there's more. i think there's more.

i like these european banks. by the way, don't forget, my new favorite's back! all right, let's go to denise in california. denise? >> caller: hi, how are you? >> i am good, denise. how about you? >> caller: great, thanks. my question is about express scripts. i want to get your thoughts -- >> too risky! too risky! i like united health in that group. that is my play and i'm not deviating. united health. let's go to craig in california. craig? >> caller: boo-yah, cramer! >> boo-yah. >> my body is a stock i'm interested in. symbol -- >> we like them! we thought that was a really clever niche they've got going. they can expand that niche and blow it out, so to speak. doug in california, doug? >> caller: boo-yah, jim. it's my birthday today, thank you so much for taking my call and making my wish come true. my stock is extr. >> got to do more work.

boy, there's a lot of these networking companies. and each one's different. each has its own coloration. we're not going to cuff it, we're going to do work. christine in new york, christina! >> caller: hi, jim, thank you very much for taking my call. >> my pleasure! >> caller: since 2009, your community bankrupttures have been trading with an ascending triangle chart pattern. what are your thoughts about owning -- >> the chart does dovetail with what's going on in the banking business, but you need to see rates a little bit higher for that one, otherwise it's going to stall out but you get that yield. i think it's okay. let's go to ron -- no, no, no, no ron in maine! ron? >> caller: jimmy, thank you for taking my call. and thank you for what you do, sir. >> you betcha. >> caller: talking about lowering drug prices, i think he means it. my thought, i would like to share your opinion on amgm.

>> if you own a biotech, they have that really important drug that can reduce heart disease. i think you've got a winner there. i know it's probably going to trade down off that gilead number which is none too good, but remember, you're right. we've got the trump tweet thing going with the drug stocks again. that's good. give you a little bit of a discount. how about greg in nevada? greg? >> caller: hey, jim! how you doing today? >> i am doing good. how about you? >> caller: [ inaudible ]. >> which one? >> caller: viva las vegas. >> viva las vegas? i love the movie. >> caller: i want to know about frank's international. what are your thoughts? >> oh, man, it's oil related. oil's coming down. a better chance to buy. the oil stocks have big inventory build. i think they have a big rig count number on friday and i want to step up and buy more oil. i'm not backing away. i think oil is good here, not great. can go down a little bit lower. and that, ladies and gentlemen, is the conclusion to have the

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a few areas are as murky as health care right now. president trump and his republican allies in congress all campaign on the idea of repealing the affordable care act, as soon as possible. but it turns out that getting rid of such a big and complicated piece of legislation is a lot harder than it sounds. just today, "the new york times"

published a story titled, from repeal to repair, campaign talk on health law meets reality about how it might take congress a long time to make any congress here. because before they can get rid of obamacare, they need to come up with some kind of replacement for it, which brings me to cnc, a health care provider that specializes in medicare and medicaid. they've done very well under the affordable care act, because the law included a big expansion of medicaid that translated to more business for them. that's why in the three days after trump's surprise victory, it plunged from 56 down to 50. so people thought they stood a lot to lose from a flat-out repeal. but it now it seems that some parts of the law will stay on the books, which has helped the stock regain the grounds it lost after the election. the company delivered an 8 cent earnings beat off $1.11 basis, much higher than expected revenue, up 89% year over year, and robust full-year guidance for 2017. that's why the stock jumped more than $3 to 5%. with so much uncertainty over

health care, is it safe to own the stock? let's check in with the ceo, michael nutter, and check out how the company is doing in a pretty murky environment. mr. nutter, welcome back to mad money. good to see you again. >> you gave a conference call. early editions, the process may take several years and include a transition plan to minimize any disrupti disruption. if that continues, you'll have more quarters like the one you reported today. >> absolutely. and i've said all along that it's business as usual. we've insisted on doing our thing the way we do it and it's working out very well. we told the street today in our call that we actually have over $400 million that we'll be paying back in on the risk adjustment issue.

so not only are we providing high-quality care and reasonable prices, we're also doing it very efficiently. >> it also seems that while there are no specific agendas, as you say, for the administration's approach to medicaid, it's likely that the states will be given more flexibility. if states are given more flexibility, that's more business that centene should be able to win. >> blult. in fact, we encourage our flexibility and we're set up for it. you won't find centene health anywhere. they're all very locally, locally driven, if it touches a member, provider, or contractor, we do it locally. so we're really well positioned, i would say, very well-positioned, for anything that's done locally. >> now, vice president pence is from a state where you have very good success recently, indiana. would he be aware of what centene can bring to the party? >> he's very much aware. in fact, when he introduced some of his new products, we were there and helped him do it very

effectively. so, he knows us, he knows about us. and knows what we're able to do. >> tell us about this earnings beat. premiums came in above expectations. your costs are down. some of the business you won seems to be driving upside immediately. everything seems to be coming together for you guys this quarter. >> we've been working through this. we fully integrated health net, gaining the benefits of that now. and the care on the critical mass that gave us. we have very good systems that are helping us to maintain the costs, and we've laid out a strategy and we're sticking to it. and we've done that for many years, and there's always the da doubters, but we're pleased to show them once again we're delivering on our suspected results. >> and i'll remind viewers who came on, you said there was an accounting issue after the -- after your investor day. you said it was not going to be substantial, it wasn't substantial. everything's now behind you that was causing such angst back then. >> yes, i think really, there

are too many people looking for a bear story. and i think what we have to do is just work through it and you know, jim, as well as i do, you probably know better than i do, there's nothing like hitting your numbers and posting the numbers to demonstrate that you can do it. >> well, that's absolutely true. not only did you do it, but i felt great after i read the conference call, that regardless of what happens, i think centene will make a lot of money. thank you so much for coming on the show, sir. good to see you again. >> nice to have seen you. >> that's michael nutter, the president and ceo of centene, cnc. michael, a lot of people doubted him, that was a very big mistake. this company is set up for whatever happens to aca. "mad money" is back after the break. go ahead, spoil yourself. the es and es hybrid. experience amazing.

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 nope, they don't like it. disney, you can always tell a good story about disney. that's why it's never been a great idea to dump the stock. i like to say, there's always a bull market somewhere and i promise to try to find it just for you right here on "mad money." i'm jim cramer and i will see you tomorrow!

tilman fertitta: tonight on "billion dollar buyer"... what y'all have built is a remarkable company. fertitta: i wanna help these families grow their businesses, but if they stay stuck in their ways, i might have to move on. - we're fairly manual. - we'd just as soon be in the 1400s. down-home honey producers whose inefficient process makes for frightening prices. it's really up to you to see if you can get the price where it needs to be. that could be a challenge. a stubborn glass artist whose creative whims have cost her family dearly. every time jeannie does a project, she wants to innovate. my creative juices flow just as much as yours, but i'm not doing anything that doesn't make money. fertitta: if they show me they can change, they'll end up with a deal.