>> it's a glory, baby. honeywell. >> thanks for watching. see you back here tomorrow at 5:00. meanwhile, don't go anywhere. jim cramer starts right now. my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach. so call me at 1-800-743-cnbc or tweet me @jimcramer. the litany never seems to stop. overvalued, dangerous, perilous, bubble, honeymoon is over.

look out below. that's what i hear about this market every single day, including this one. dow dipped 36 points, s&p inched 0.07%. nasdaq advanced 0.15%. every day i try to reconcile these worries with my own view that stocks just aren't that outrageously priced versus other big runs we've experienced before. in fact, i think the valuations in many cases are pretty darn reasonable. but i have a hard time proving it because we're in an incredibly visceral, polarizing moment stemming from the election of a pro-business president who seems to rack up an incredible amount of baggage on a daily basis, baggage that makes this really seem incongruous. to put it simply, while trump's economic ajean did could be pretty positive, our new president has an unpredictable style that makes it difficult to fully emprasz the notion that we should be paying up for stocks

here. i'm sure there are some investors who read president trump's tweet today criticizing nordstrom for dropping his daughter's brand of merchandise because sales are slow and said to themselves, geez, i don't know. great that he loves his daughter, but that's a little much for me. who knows what's next? that's what people are thinking. but i got news for you. the stock market, it isn't controlled by the president, and his tweets don't dictate the direction of the earnings let alone the whole economy. so how do you contrast this moment versus another time that actually was perilous given that we constantly hear how dire things are? why not go back to what david faber and i talk bds this morning on "squawk on the street," the contrast between the biggest companies now, market capitalization, and the ones that dominated the market in 1999, the height of the dot come bubble when we were on the verge of a giant bear market that sprung from true overvaluation as oppose toed the cyclical my as ma that was the great recess.

we need to go back to the last time stocks got so expensive that they collapsed under their own weight as they overran the fundamentals because that's what we keep hearing is about to happen now. right now. so let's look at the biggest five stocks then and the biggest five now. here's a list of the biggest five companies at the end of 1999 right before we went into a huge bear market. microsoft at $600 billion. general elect at $507 billion. ohhence dentally, jif immelt will be our guest tonight. cisco, valued at $355 billion. walmart at $307 billion. and intel, $275 billion. compare that to the current crop of companies. apple at $689 billion. alphabet formerly known as google at $565 billion. microsoft. berkshire hathaway, standing at 400 billions. and amsz at $389 billion. just for a little perspective because there was so much tech

dominating, why don't we throw in facebook. similar names, but the relative valuations, they could not be more different. diametrically opposed. at the end of 1999, microsoft and intel sold at 65 times earnings and 35 times earnings respectively. the presumption, a new world was upon us, the internet world. these companies had the software and the hardware to make it all happen. this was the golden age of the desktop. but when we look back, we see a different story. the earnings explosion so many people expected from these two companies, it never happened. in fact they spent the next couple of years with uneven numbers, maybe even in the wilderness, nowhere near justifying these price to earnings multiple as the growth wasn't in a straight line and the desktop became a commodity utility. cisco's earnings pretty much collapsed soon after its business got crushed by the implosion of tons of telco carriers that had been able to raise money in the stock market

to build out their networks. so many of the biggest companies at that time were on steroid, but not like the telcos and when the stock market dried up their financing, they dried up too. cisco, then known as the backbone of the internet, was revealed to be deeply depend ebt on a business that went into a severe, some would say, terminal decline. it did pull out of it, but boy it was nasty. walmart was considered the fastest growing retailer in the world back then with a gigantic runway of stores to be built around the globe. it didn't work. the company overexpanded. the model didn't scale overseas like it was supposed to, and walmart hit a wall. ge, back then it was totally pumped up by a balance sheet that made the company look like a hedge fund in drag. financial earnings, not industrial earnings proved unsustainable over time, and 9/11 hurt many of its businesses, especially its aerospace division. immelt had to spend years undoing that morass. you could argue all these companies were overvalued on

past earnings and then they turned out to be even more overvalued on future earnings. now let's look at the current crop of big gooes that people are telling you are unsustainable. apple. here's a company at $40 a share in cash that sells at just times earnings. you don't need trump's promise of repatriation to get this stock higher. you can simply look at its service revenue stream and recognize that apple is producing $700 razors with a built in high margin service razor blade business that can be augmented by any number of potential acquisitions. alphabet, 21 times next year's earnings. $86 billion in cash. $52 billion much it overseas. 16% growth rate. you should google it. it says cheap. facebook sells at 20 times next year's earnings. it's got a 52% revenue growth. $29 billion in cash. impossibly cheap versus say a procter & gamble or a clorox. companies with dramatically slower revenue growth. you'd never confuse them, but you're paying a lot more for

those two than you are for facebook. warren buffett's the great every investor of our era. yet his stock sells for 20 times earnings. microsoft's got accelerating revenue growth because of its brillianted linked in acquisition and an amazing balance sheet, a cloud business that has gone from zero to 90 out of nowhere. and for that you pay only 20 times earnings, less than a third of what it traded at in 1999 with its business about to go down. sign me up. all right. only amazon's an outlier here, trading at 110 times earnings, but amazon has always been an outlier year after year as the market gives it a 1999-like valuation. given how this company has eviscerated the walmarts and threatened the entire brick and mortar ecosystem with extinction, you can see that amazon is simply taking the market capitalization from the businesses it destroys. by that method, which isn't so outrageous when you consider the

zero-sum nature of e-commerce's kingpin's tactics reminiscent of sherman's march to the sea. you can even justify amazon's market cap. you know what i think the question to ask is? how did this current group of behemoths get so -- it isn't about how they can get so expensive. it's how they could get so cheap given the derision we here about president trump pretty much daily, it's hard to believe they're riding some kind of overexuberant trump bubble. if anything, they might be getting a presidential discount. but let's make this a -- >> trump-free zone. >> that's right. >> trump-free zone. >> the truth is apple is schaep because people perceive it as a one-product device company with its best days behind it. facebook and alphabet are linked too much to advertising. berkshire hathaway sells at 20 times earnings because nobody lives forever. and amazon? well, forget it, jake. it's amazon. here's the bottom line.

perilous, precarious, dangerous, insa insane? sure, that was the case in '99. now i think you can say cheap, perhaps cheaper they should be given their growth rates with the exception of amazon. there were no exceptions in 1999. everything was absurd. now, only one out of the six largest companies isn't bound by conventional metrics. i don't know about you, but trump or no trump, that smacks of rationality to me. mark in illinois, please, mark. >> caller: jim, first of all, couldn't agree more with your comments yesterday about jeff sachs on "squawk on the street." really enjoyed that segment. >> you got to call them like you see them. nice guy, though. terrific. terrific guy. tremendous. >> caller: i know you're a big follower and believer in itw. >> yes. >> caller: but given the recent run-up in their stock the last 12 months, and i'm a big follower and believer in them as well. you know, they've had a big run-up, and it seems like their

top line is starting to soften. >> no, this guy has got game. he's the belichick of that whole industry. he's doing a terrific job. i would be a buyer of that and then maybe home for like a trump -- i don't know -- decline. people just like say -- >> not a trump stock. >> and then they take it down. i think you want to be a -- >> buy, buy, buy. >> of itw. we are not at perilous high levels if that's what's going to cause a decline. i would even argue that some of these biggest cap stocks are cheap, and that makes plenty of sense to me. on "mad money" tonight, take two interactive. can the maker of grand theft auto continue to motor on? i'll sit down with the ceo. then it all began with a light bulb. ge was founded over 100 years ago by tommis edison. today it's because ts the marke to the recent quarter overblown? and allergan is up 15% year-to-date including a romp today. could its recent earnings give the botox maker another boost?

i'm eyeing the fine lines of its quarter with brent saunders, 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? head to madmoney.cnbc.com. bp engineers use underwater robots, so they can keep watch over operations below the sea, even from thousands of feet above. because safety is never being satisfied. and always working to be better.

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you want to know my idea of a beautiful picture? check out the chart of take two interactive, the video game company known as the developer of grand theft auto, but they have a ton of another lucrative franchises. some terrific sports titles under the label and many, many others. for a long time investors simply couldn't get past the fact that take two is a relatively small game developer. at least compared to electric arts or act vision. that's nevertheless responsible for one of the hottest franchises of all time. the proof is in the pudding. they haven't released a new grand theft auto title in three years, yet take two's stock

managed to double over the past two years. in short, this story is a heck of a lot more than just that one game. now, i've been saying this to you for ages, but if you don't believe me, they gave you more evidence it's driving when they reported a solid quarter last night. they posted a phenomenal 51.2% gain in bookings, which i think is the best way to judge this company's health. in short, take two had a terrific holiday season, confirming again our thesis that while the mall may be desolate, consumers can't get enough video games as part of thank you new stay at home economy. these games were gettable. the company's fantastic ceo first came on the show a little more than three years ago. the stock was at 17. since then he's continued to appear on "mad money" pretty frequently. how about a 216% gain during that period? can the stock keep climbing? let's check with the chairman and ceo to learn more about the quarter and his company's prospects. welcome back to "mad money." have a seat. >> good to see you. >> i kind of want to dispense with grand theft auto, but i really can't because it's such a

phenomenal title. i was on the disney call this morning, and there's bob iger talking about the "star wars" lucas franchise. grand theft auto is one of those kinds of properties. it just doesn't quit. >> yeah, it's a powerhouse property, and it's beloved around the world. and now the grand theft auto 5 release has sold in 75 million units. it's extraordinary. at full price, by the way. >> right. and you have ads. you have additives, bikers, a little input. these things that people pay extra for, they love. >> well, grand theft auto online is free to play. but when you're in the game, you can buy virtual currency. and when we drop new gray content into the game, it increases engagement. that increases virtual currency sales. we just had a record quarter for recurrent consumer spending, and that was partially driven by grand theft auto online. >> i want to talk about what that allows you to do. it gives you the freedom to take

risks that other companies can't because you have a catalog that is worth the $5.4 billion valuation of your company. you're buying a social mobile game that i think is exciting but people haven't heard of. >> right. so catalog in the last quarter was 36% of our total bookings, and a healthy entertainment company has catalog revenue and the earnings related thereto that support its operations just as you said. that allows you to take measured risk with your front line offerings. hopefully you're right in taking that risk. certainly at take two, our track record has been very strong in taking measured risk with our front line offerings. inevitably you don't get everything right, and a well financed company can live to play another day. >> i think last time you were on, mafia 3 was about to come out. unprecedented sales there, and that was artistry but also edgy, and it paid off. >> it was edgy. a great story. african-american protagonist. it sold in 4.5 million units, fastest selling release in the history of the 2-k label. it's now sold in about 5 million

units. we have more content coming. we're really happy with that release. >> you are a man who is humble, also runs scared, and is never willing to say that something big could be occurring. but you use a term. it's code i think for you is my take after seeing you many years. eagerly anticipated, which is read dead redemption. it means you think there's going to be something big. >> well, eagerly anticipated for me is better than cautiously optimistic. >> okay. good. good. >> look. everyone is excited about red dead redemption 2 coming next fall. red dead redemption sold 15 million units lifetime so far. it's a great title coming from rock star and, you know, all of us -- consumers, all of us can't wait to see what it looks like. >> now, i need you to talk about this notion of entertainment. i want to put it in the context of brian goldner, the ceo of hasbro. he was saying, listen, we are not a toy company. we're an entertainment company. i'm thinking flipping the whole thing. why can't you be an entertainment company that

extends to everything else? hasbro is a big company. you could be making movies. you could be making toys. now, i know there's such a thing as loot. but if you stood the whole company on its head, couldn't we have all these great movies? >> i think the answer is our intellectual property probably would form the basis of some great motion pictures. the question is risk and reward, and motion picture as an asset class doesn't begin to measure up to the video game asset class. we also are of the view first do no harm. we want to make sure everything we do stands on its own as a great creative property. we think we know how to do that with video games. our company's background is not in motion pictures. my own personally is. >> people need to know, strauss, that it isn't that you don't know that world. you literally are from that world, and you know this is a better business, right? >> right. and to take a leading franchise and try to express it in another medium is a big effort, not a small effort, not one i'd enter

into lightly. but i agree with the notion that over time we some speak to broader elements of the entertainment business, and that's what led us to the social point acquisition because free to play mobile is a $40 billion market. we need to be exposed to it in a smart way. we think it's a smart way because among other things, they own their intellectual property and the deal is immediately accretive to -- >> how is it possible you were able to get that at this price so we could raise numbers next year? >> i think the answer is that it's a fair deal for both sides. that's the only way a deal occurs. we did have stock, so that we aligned interests. i'm hopeful that the social point team who are staying on felt that it was a great cultural fit. we certainly did. i think our comfort with each other and the fact that the strategies are aligned, own your intellectual property, try to delight consumers. focus on making the best in class titles, that that aligned our interests. >> i'm going to say this because you always say, jim, it's your idea about the stocks. i run the games. ea is a 25 billion.

activision is 29 billion. that makes no sense. i'm not saying those guys are too expensive. i'm saying this one's too cheap. "mad money" is back after the break. >> thanks, jim. >> announcer: coming up, general electric has been an industrial power for over 100 years. now jim sits down with the longtime ceo of the company in the middle of reinventing itself. >> we don't really need trade deals to be effective. you know, we can kind of navigate the world on our own and i'm perfectly comfortable doing it. >> announcer: stay tuned to "mad money."

all right. what are we supposed to make of the stock of general electric here? in 2015, ge stock roared higher as the company got rid of its murky financial divisions and focused on being a leaner, meaner industrial manufacturer with a distinct software and digital edge. but since then, for more than a year the stock has basically been treading water. now, for a while ge seemed like it was getting a second win after trump's surprise victory suddenly made the industrials more attractive. the gigantic posted inline earnings, slightly weaker than expected revenue, and the company itself talk the about pluses and minuses on the top of the call. while the industrial stocks have continued to rally this year, ge's stock is down 6.87%.

is this a buying opportunity or do the skeptics and pessimists have a point? i think there's a lot of confusion. i want to clear the area. that's why i'm thrilled we have a chance to speak to jeff immelt to find out how his company is doing. mr. immelt, welcome back to "mad money." great to see you, sir. >> good to see you. >> you've never dodged, so here we go. >> great to be with you. >> thank you. this is a strange time. what's the role of a global ceo like yourself when the president loudly proclaims america first? >> look, i think we have to keep running our company. there's never going to be exactly everything that the president says that we agree or disagree with. this is my third administration. >> right. >> so there's a lot that i like in what president trump's doing, right? infrastructure, tax reform, regulatory reform. i think outside the u.s., jim, we're on our own outside the united states. ge is a highly global company. we don't really need trade deals

to be effective. you know, we can kind of navigate the world on our own, and i'm perfectly comfortable doing that. i think it's up to me from an investor's standpoint to be able to be a good american company but still be able to do business in saudi arabia, china, brazil, and we plan to keep doing that. >> it's up to you, but on the other hand, there are people on the phone with the president, they're not happy with america. some of these are great clients of yours. what do you tell them when you're trying to negotiate a deal? >> i they them look out their window. they've got 5,000 ge people in their country. we're installing, you know, a new power plant. we're working with our hospit s hospitals. we don't have to go to washington on our way to be global. we are global. we've got people all over the world. again, i really want the president to reach out and have great negotiations and relationships around the world. but it's our job to do that on our own. >> okay. now, i totally understand that. >> and we'll continue to -- >> i understand that, and you know you believe that ge, which

is an important player in china, needs china and the united states to be together. but at the same time, when if the president says, you know, we've been in a trade war with china a long time, and we've been laying down and they've been giving us the business. we're going to slap a 25% tariff? >> we're a net exporter. in other words, we're running the president's play. we're a $20 billion u.s. exporter. we export way more than we import. and i think at the end of the day, look, we've got 5% of the world's population and 25% of the world's gdp. we create great jobs here when we sell our products every place, and i think the president knows that. >> but maybe the president just says, you know what, ge's earnings aren't as important as manufacturers in america. >> we're an exporter to china. you're winning, mr. president. >> does he hear you? >> look, we're in that second week. >> okay. >> i think this is a smart guy. he's going to figure all this stuff out. >> and are you an advocate? are you helping him? are you advising him or just

listening? >> we're going to help him in any way we can, and we're going to lead by example because we're going to continue to be a great exporter. we're going to continue to win around the world. >> what happens if you get a call where -- >> every ceo is going to have to -- but i think we're running his play. >> okay. >> i think we're running the export play. i think these things like wage arbitrage, that's 1980s. that's what ge did in the 1980s. now when we globalize, it's to sell more. i would say to the president, look, level the playing field. we can take on any company in the world. >> all right. >> help us do that. >> let's talk about that because the last conference call, you might want to take everyone around the world, but you said yourself you underperformed. you talked at the top pluses and minuses. you know that you yourself weren't happy with everything. what are you doing to fix the divisions that are not delivering? >> jim, what i would say, if you look at last year in its totality really, the biggest drain on the company was oil and gas by far. >> right. >> only gas down 35%. the rest of the company up 8%. what do we do in oil and gas?

i think we've done the smartest, truest deal that positions up for the upturn. the team has done everything we've asked them to do. >> baker hughes merger. >> i think if you look at power, which is the other business, look, they grew organically 3% or 4% in the quarter. they're positioned to do 5% or plus this year. i think the power business is going to have a great 2017. >> credit ceasuisse doesn't. this was a fairly dispiriting quarter for ge shareholders with little evidence of operational execution, a revenue miss which sat oddly against a bullish management tone at the top line outlook. >> look, we were 1% organic growth in 2016. we're teed up to be 3% to 5% organic growth in 2017. we've got a very strong backlog. we've got alston that everything cylinder is operating there. >> so jpmorgan, has a sell on

your stock. he's saying, ended 1.5 bhl dollars lower than initial guidance. this was a miss to an already dramatically lowered bar. jeff, this isn't you. you bang out the numbers. >> jim, last year, overall segment earnings with both verticals and industrial, roughly flat with 2015. we're forecasting 3% to 5% organic growth, 100 basis points improvement, good backlog, good momentum. i think a strong 2017. i like the way we're positioned in 2017. >> then why does -- deutsche bank, there's a lot of firms. i've got jpmorgan, deutsche bank. deutsche bank says we should be concerned that maybe perhaps that you can't do bigger dividend increases, which you know i love. we talk about it on the show all the type. >> we gave $30 billion back to investors last year. >> okay. so you're disagreeing point black. >> forecast to be $20 billion plus this year. >> so what do you say to an

analyst that says the cash situation could become serious? is that analyst wrong? >> just wrong. jim, $30 billion in buyback and dividends in 2016. that's pretty strong. >> then why aren't people paying more for the stock? why are people still saying you got to take out more costs. >> 1.31, 1.49. the consensus next year is probably between 1.60 and 1.65. we've laid out a plan to do aggressive cost takeout. we've got strong organic growth. between the buyback and acquisitions, good boost to earnings per share. our eps last year was above the xli. >> but if we look at the total shareholder return, jeff, from when you started, with dividends reinvested to be fair, you're

20.4%. the group average -- i did a group average of ten -- is about 440%, and the s&p is 173%. >> yes. so what do we say? >> look, jim, the whole company is different than it was 15 years ago. we're a 50% financial service earnings, right? the whole company has been repositioned. so if you look over the last five years, we've outperformed the s&p 500 and the xli. if you look over the last two years, dramatically outperformed the xli and the s&p 500. i like the way '17's positioned. you know, again -- >> look, i see the ten-year up 18% versus my group, and it's honeywell, emerson, boeing -- >> which guys rode through the financial crisis in 2007 and -- >> what do you do with shareholders who are, let's just say, unhappy? >> shareholders own the company, right? again, i go back to the last

five years, outperformed the s&p 500. strong two-year performance. well positioned in the transitions that we've done with ge capital growing. investments in all stom and industrial acquisitions. baker hughes is a smart deal. i like the way we're performing. >> are you hearing from shareholders who are saying this is supposed to be a breakout year and you didn't make the numbers? all the industrials are screaming and ours is down 6%. >> look, jim, in 2015, we were up almost 30%. the xli was flat. last year we were up 4%. the xlis did better. my expectation by the time it's all written in 2017, we're going to have a really strong year, a really good year. >> do you need to make changes? loek mowtive is down. do you want to stay in that business? >> we've earned more in this cycle than we did in peak years five or six years ago.

so this is a business that's performing very well, and we think continues to be a strong part -- >> you're very confident now. the projections, which are very strong for 2017, not an issue even though some of these analysts are saying that the quarter's already started off weak. i don't know how they know that. >> i don't see it that way. i think this -- really, 2017, when you think about it, has got earnings per share up double digits. it's got organic growth at the high end. it's got margin expansion. >> these are all the things i'm looking for. >> $20 billion of between dividends and share repurchase. $20 billion back to investors. >> of the tripod, deregulation, repatriation, tax reform, which one's worked best for new. >> i think if we can get tax reform in this country, not just for ge, but for everybody. >> even though your tax rate is

minus 2%. >> again, there's such a difference in terms of book versus cash taxes. we paid a big tax bill in 2016. >> and deregulation play up your way? >> deregulation is always good. but when i look at the greater good, you know, we are in an investment down cycle in this country for the past almost 20 years. >> right. >> tax reform has got to help that. >> as always, the answer to every question have. look, i got to ask these things. we've known each other for years. i want the stock higher. you want the stock hire. you're all in. you have millions of stock. >> at the end of the day, right, name a company that's done more over the past 10 or 15 or 20 years to change. >> that's jeff immelt, ceo and chairman of ge. you'll be able to see part two of the interview next week when we're out in san francisco as part of our invest in america series. "mad money" is back after the break. >> announcer: coming up, will

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normally i'm wary of recommending stocks if they belong to a sector that's out of favor with the wall street fashion show. but some stories are so compelling that you have to stop worrying about this kind of sector-based guilt by association and just by the darn thing. that's how i feel about allergan, one of the best run and fastest growing members of the big pharma cohort with a stock that we own for my charitable trust where you can follow all the moves before we make them by joining actionalertsplus.com. we can fret about what president trump might do to rein in what he sees as unfair price increases for the drugs people need. i thing allergan is the leader in responsible pricing. it's putting up some amazing results. as much as the punditocracy talks about politics, it's earnings that matter. allergan blew me away with the numbers it reported this morning. it posted a 14 cent earnings beat off a $3.76 basis. higher than expected revenues up

7% year-over-year. strong guidance for the full year. best of all, it's got a pipeline other companies would kill for thanks to a recent series of small acquisitions. right now they've got six potential block bust ter drugs in phase three trials. given the $16 earnings forecast for 2017, this fabulous growth pharma stock trades at just 15 times earnings even after rocketing up $8.56 today or more than 3%. what more can you ask for than having the fastest grower with the lowest relative valuation in the industry? let's dig deeper with brent saunders to get a better sense of the quarter and where the company is headed. welcome back to "mad money." >> thanks for having me. >> i was thinking when i was reading over the quarter and listening to the call, it's kind of like the old days in the 80s and 90s where what companies used to do is talk about the big pipeline, the billion dollar blockbusters. you're the only guy who's doing it now. hows that ha happened. >> well, we've been really

focused on r&d. no one was really paying attention while we were doing it. >> no, they weren't. >> and we now, as you mentioned, have six phase three or going into phase three this year programs that all are first in class or best in class therapies for unmet medical need and could be blockbusters generating well over $13 billion in new sales. >> before we get to those, let's speak to the responsible pricing issue because we know the president cares about that as he should. you can charge more for blockbusters that solve unmet needs than you can just willy-nilly raise prices for old drugs, that's your model. that's your social contract. >> and that's the business model i think our investors want us in. why sit there and pull a lever raising prices and not worrying solving medical need. we put pressure on ourselves to do that. >> you did get a lot of money for selling at the top, your generics. that money, some of it went to

buying the stock, as you did by the way, at much lower prices and some of it went to buying all these little companies. i got to tell you, i was thinking today when i was watching gilead after that call, i bet you they wished they had done that model. >> look, we bought back stock very strategically, about $15 billion worth if you include the $10 billion asr. but we don't want to be a chronic stock buyback company. we want to be an investor in growth. i think we found the right balance. hopefully the stock with continue to improve and we can focus on investing for growth. >> i remember when you bought. it was public. i heard people say, brent has really gone offer the reservation now. what price did you buy back at? >> i think it was 186, 187. >> let's talk about the blockbusters. it is difficult for people to understand what 13 billion means. you've got some central nervous system drugs, some eye drugs. which are the ones you think we're going to be hearing about in the next 18 months? >> so it's like asking to pick your favorite child. very difficult to do.

you know, some of the ones i think most important, we have a new drug for depression in phase three. >> hard business. >> hard business called repass nil. totally novel way to treat the disease, not regulating serotonin but looking at the modulator. and we think based on the phase two data, very rapid onset of action where an ssri can take weeks, months to work. this is working very quickly. so we may even try to study it for suicide, which is a top-ten leading cause of death with no treatment. >> and with younger people. how about this nash drug? >> nash, we're going into phase three. >> explain what it -- >> so that's fatty liver disease. it's an epidemic-like disease. in fact, now that we've cured hepatitis, it will be the leading cause of liver transplant, liver cancer, and liver death in the u.s. and it really is a disease that has no treatment today. >> okay. >> so we have a drug in phase three. in phase two actually showed it

stopped the progression of fibrosis of the liver. >> really? >> in one year. we get two-year data this summer. could be very exciting if we saw continued improvement. that would be a game-changer. if we just maintained the improvement, that's what we expect. very exciting. >> allergan has always had a great eye franchise. as much as you know i respect regeneron, i keep thinking that's got to be in your wheel house. >> we do. we have he bis par. it's in phase three and rolling very well. we are looking at delivering it every 12 weeks, one injection every 12 weeks. >> not every month. >> right. >> people don't like to get shot in the eye. if i can get shot in the eye less -- >> no one wants a shot in the back of the eye. and doctors don't like to do it to be fair. it's uncomfortable. >> so yours would be fewer. >> this would potentially be every 12 weeks, which would be a game-changer for patients. >> that alone is multi building.

-- billion. >> if it shows that promise in the phase three t could be one of the biggest drugs we've ever had. >> you are always in touch with your shareholder base. you're transparent. it seems like people are say, brent's back. were you ever gone? >> i don't think so. look, we put our shareholders through a lot last year. lots of change. probably more transformation than any company has ever gone through. we did it all compact in one year. it's behind us. we're focused, branded. now we're focused on execution. >> thank you to brent saungders, chairman and ceo of allergan. i know up eight. did you miss it. the big boys just now are saying, you know what, the guy is back. "mad money" is back after the break.

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do over time is give you a good dividend, go up a lot and makes you a lot of money. i think you got to stick with it. nancy in florida, nancy. >> caller: hi, jim. big booyah to you and your staff. thanks for taking my call. >> love staff. how can i help? >> caller: okay. i am interested in your take on mccory infrastructure, symbol mic. >> it's got a good yield. i know people like infrastructure. i am not going to endorse it because i got to find out why it took such a big hit. i've got to do homework, and i will come back to you. how about jason in the illini, jason. >> caller: booyah. thanks for taking my call. >> booyah. >> caller: the stock i wanted to ask you about was dave and buster's. >> that thing is on fire. that's why i like steve king when he comes on the show. he is on optimist who is also a realist and a skeptic and has done a fantastic job at play. i used to love going there with my kids. you know that thing that reaches down and gets the toys. joel in washington, joel.

>> caller: good evening. big fan of yours and also of callaway, the clubs. they've come up with a brand-new epic driver that just came on the market two weeks ago. >> you know what, sporting goods leaves me cold. rather under armour or nike, even dick's sporting goods, i'm not there. you got to be very careful for things that are sold at retail. steve in illinois, steve. >> jim, love the show. my stock is auo. >> oh, man, that's a hit or miss stock. you know what, that's just -- no, it's too dicey for me. although i was thinking about some of these -- sienna. cisco reports next week. how about we ge to denise in jersey, denise. >> hi, jim. booyah. >> wow, fired up booyah. what you got? >> caller: pfizer. what are your thoughts on fiedser? >> why do you need pfizer when you go right down the road and you get allergan.

come on, jerseyite. we know who's got game. let's take one more. we'll go for one more. let's go to ken in mississippi, ken. >> caller: jim, beautiful day in mississippi. >> isn't it? oh, probably. >> caller: 80 degrees. look, i got it on panera bread a couple weeks ago. it blew up today. >> my charitable trust owns it. having a big conference tomorrow at action alerts club. i thought the quarter was great, and we own it. this is going to sound strange. we told people to sell a little today because it was good, but it wasn't that good. up 18 points. so that's my advice. don't chase it. and that, ladies and gentlemen, is the conclusion of the lightning round! [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade. so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go!

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all right. look, sometimes i find myself praying that bob iger will never retire from his position as ceo of disney because, boy, oh, boy, does he make it tough for you to sell his stock. iger's words about business on the conference call after what looked like a disappointing number reversed a substantial climb and turned it into a small advance. stock closed up a penny, but most of the day it was pretty high. and he did it by telling you about all of the tremendous events and special things that are coming your way if you hold on to disney stock and don't sell it. he makes you feel like you're going to miss the opening of the biggest movie ever and lose your spot in line for the next great theme park, perhaps not be enabled for the direct to consumer sports packagesment iger tops all of that off with

the fact if you don't want his stock, he'll gladly take it off your hands with that monster buyback, which seems to accelerate whenever the stock is down. i can only describe as almost unlimited fire power. disney repurchased 15 million shares for roughly $1.5 billion just this past quarter, plans to buy another 7 billion or 8 billion over the rest of the year. i got to tell you as someone who can read that knows the way this company works, they have the potential to buy back a lot more than that if the stock retreats to let's say the low 90s although it will ever revisit that number while iger is still running the joints, unless some market selloff occurs. i say that because in all honesty, this quarter was the recognition that disney has become, let's say, the most derisked entertainment company of all time. now i know that iger used the term derisk in relation to the 30 movies that have brought in $800 million each and the prospect that among disney animation, marvel, lucas film, and pixar, you can simply consider these studios like

procter & gamble's equivalent, disney. they're like tide, gillette, pampers, crest if you will. i know this had been their goal years back but it really came to fruition rather quickly. the fact is, though, that iger has derisked the entire business, not just the film division. last quarter we had a hurricane and a miserable calendar ship that should have decked disney's theme parks, but they didn't. you got a 7% increase in per capita spend from those who went to the parks. that's the same-store sales number. wow. espn, last time bob gaffed the bears by saying he's feeling better about espn. it was not so good again. this time he got them about talking a lot about bam tech, which they own a third of, and now it's going to be offering some direct to consumer goodies that again will make you rue the day you decided to sell the stock because of nielsen ratings. now, there's a moment where you want to say, wait a second, bob. you really think the so called skinny packages are good for

disney because it will leave more money to be spent on other disniz related items? it left me thinking stick with the idea of a new avenue tar theme park or how shanghai disney sold out over the new year or how there's more star wars movies coming out than you can shake a light saber at. but the most important takeaway of this quarter is simple. it the like iger was saying, you want to sell disney off espn? go ahead. i'll see you and your family at our movies, and at our theme parks, and while you watch our espn on whatever you watch it on, i'll make more money off you than you ever dreamed of. and you'll love it. so what the heck is the point of dumping the stock? stick with cramer. 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 tbut what if it didn'tm. have to be? at blue apron, we're building a better food system. where we value quality and flavor over quantity and shelf-life. where chefs and farmers work together to make farms healthier, grow higher quality ingredients, and deliver them in-season, ripe and ready to cook.

because food is better when you start from scratch. blue apron. remember, the top six companies in market capitalization, they're not expensive historically. i think you need to know that. 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, and i will see you tomorrow!

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