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tv   Mad Money  CNBC  June 7, 2017 6:00pm-7:01pm EDT

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we heard that in a while. who is that good for? >> i don't know. >> anybody? >> mexico. who has -- kansas city southern. choo-choo. >> i'm melissa lee, thank you for watching, for more 5:00 for more mad money. meanwhile mad money with 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 you but educate you and teach you so call me at 12-800-743-cnbc or tweet m me @jimcramer. after a nice day dow gained and nasdaq advanced .36%.
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lots are saying that tomorrow seems pretty perilous. former fbi director james comey testifying in front of the senate and based on his just released opening statements it's not going to be pretty for the white house. we got the british national election where is the labor party looks like it might have a chance of winning. something that could send the british stock market and the pound plummeting and major european central bank meeting in astonia where the economic expansion might merit the end of massive monetary stimulus. to the hand ringers will be out in full force. i bet the same people that told you to sell the last time trump was in trouble, the ones that think this rally is predicated on total trump policies. >> trump stock. >> will tell you to sell again. i'm sure the same people that bolted when brexit occurred
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already have one foot out the door. i can promise you there are people that will genuinely flip out if the ecb does move the stimulus and to make matters worse throw this in. crashing down another 5% today. some are saying the economy must be too weak for the fed to raise rates next week as many people presumed would happen only a few days ago. it's a triathalon of terror. a gauntlet of gigantic proportions that no bull can pass through unscathed, right? wrong. entirely wrong. some have a differ, let's just say more senquin attitude toward the whole thing. they're hoping these extraneous events allow them to buy more of their favorite stocks at lower prices. they're literally waiting for some of the noisier prognosticators to come on the air and bash stocks lower.
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they're sal evacuaivating it. it's like an infomercial on the weekend. they're heading to 1 and change and oil going to 37 and everything else in the world is falling with no real plan to get out and do some gluing. how can these bulls be so complacent? no, no, they're not complacent. that's the wrong word too. they're not like this. no, far from it. they're loaded and locked and ready. do you know why? because they have the -- >> buy buy buy. >> they have the buy list. in their heads they have 15 or so stocks that need to be bought and their biggest fear is that saner heads will prevail. we won't get people coming on air and websites scaring you to death and therefore you won't get the kind of pull back that they have been praying for here
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in june. you think it's some sort of great conspiracy? you think there's something unfair about how confident the bulls are while you're shaking about the outcome or the ecb's astonia meeting? then you haven't seen the shopping list. i got it. so let me share it with you to help you understand what makes the bulls so confident even if that confidence is constantly mistaken as arrogance or even complacency. without further adieu here are the 15 stocks the bulls want to buy so badly. so badly that they're praying for negative big picture headlines. one of course nvidia. he's running circles around the other chip makers because his chips drive the magic behind voice. voice sooechb more powerful than machine learning and autonomous cars and graphics. there you go. you to do a little history. you think this stock cares about
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it? it is. i bet the buyers don't know the difference between may and june other than typically warmer although this june has been a challenge so far. global cooling? this juggernaut is the premiere internet of things just reported and got in the stock before it took off. he's dynamite. bring on the ecb. maybe we get whatever is most horrid and this stock goes down a point or two. three is microsoft. i put it up at 3 because if this stock falls more than 37 cents you have to move. microsoft is all about the cloud thanks to its own cloud platform. if it's too tame for you then get into the original a because amazon has so many irons in the fire people forget it's retail.
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some investors would buy amazon stock even in the event of thermonuclear war. 5, visa or mastercard. all of that money earmarked for the financials has to go somewhere. the credit card companies are the winners and they never go down. i live in hope. people have soured on eli lily. they have given up on allergen. got in different to the exciting but then not charged merck and can't touch the overseas drug companies. so it's now been anointed simply by the lack of detractors the others suffer from. i wish there were more to it. it's all a pipeline. 7, mcdonalds. combination new fantastic technology, slim down menu, all daybreak fast and tremendous management reignited this stock.
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honestly, all you need are scary headlines to push this thing lower. mcdonald's doesn't care who is in the white house or 10 downing street for that matter. adobe or autodesk. i picked these because investors don't have a clue about what they do except they go up. adobe does something in a cloud. it's about making it accessible and usable and creative. we do know it. but that doesn't matter. auto desk. this one completely leaves people. i have no idea but it's for worker produwor worker productive. whatever. 9, lam research. no it's not an animal health company. they need manufacturing in order to be able to make the red hot chips. whether it be flash or just general internet of thing gismos. lams makes the semi-conductors.
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act vision blizzard. it has the hot games that run best on chips. gamers can substitute take 2 interactive. that's your call of course. i'm going to let you pick which ever gaming stock you would like. 11 general dynamics. do you think in any of those stories people are worried about stopping these defense stocks? the only way a monster will suffer even a glancing blow is if comey delivers a knockout blow to trump. our ally versus to buy weapons from us and whatever you think of trump he's an excellent arms dealer and chief. he goes on the road and get out of dodge and then farm leaders that want to appease him agree to buy our weapons. it's the way to access the internet with the government on net neutrality.
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13, intuitive surgical. i'll tell you more later but the key is this medical device maker won't quit. i doubt anything that happens tomorrow will damage anything that's going on. going to pull back. nirvana. you can say wait a second, but mastercard is tied to visa and adobe is linked with the auto desk. don't be so picky. the bottom line, that's a masterpiece of graphics they could fit all of those on. someone is really working overtime. i want to thank our executive produc producer, danielle and kate came up with this. yeah, i got to get some name tags. the bottom line, keep -- >> heather. she's a great follower on instagram. keep these 15 names on your shopping list and you'll be ready for any weakness that comes because of britain and the ecb and the comey. are there other stocks?
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of course. what matters is now you have the list and you start preparing yourself for our next downturn. >> hey, jim. thanks for taking my call. >> thank you. >> my question is on twitter. and growing and twitter is the biggest source of real time data for conversations and what is happening in the world. the reason earnings were great, stocks still in and the analysts are just bears for too long. >> it's missed quarter after quarter after quarter after quarter after quarter.
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that's a lot of quarters missed however i agree with you. i think it is making a turn and i think he should come on the show tomorrow and talk about it. or maybe i'll fly out there. if you want me on, fine. and jack you can quit square. you won. someone is buying the square 30 calls. he runs both companies. why not just declare i have won. i mean, if you're coaching the pats and also the cubs, you can quit the cubs and you can go with the pats. it's not so hard. jamal in texas, jamal. jamal, hit me. hit me again? jamal is gone? it's not easy to do this show. not with this level of graphics. this is a mastercard. the bulls are locked and loaded and ready and now you have their list. it's the buy list. i'm not being constrained by
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fang. i have new school. the anointed 15. now get to work. on "mad money" tonight a fearsome foursome that could be headed for reversal. what it means for your money just ahead and some of the biggest names in biotech unveiled the latest on the war on cancer. which are better prepared for battle. looking for the ways to invest in the popularity of the gig economy? and of course task rabbit trend. i suggest that you stick with cramer. don't miss a second of "mad money." follow @jimcramer on twitter. have a question, tweet cramer, #madtweets. send jim an email to mad money@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. meta appetite control...
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this morning we wake up to a starkly negative headline. here we go in the wall street
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journal, markets rise in lock step raising worries of reversal. the big concern? stocks, bonds, gold and bitcoin are all moving up in unison which makes the market, quote, vulnerable to sharp reversals. >> look i never wanted to say we aren't vulnerable to sharp reversals. we're vulnerable every day. always have been. i know a particular moment from my hedge fund in 1990. we were up nicely from the year. we decided we wanted to take the month off. month of august. we got there august 1st. on august 2nd we got a call at 4:00 a.m. from one of our key brokers saying iraq just invaded kuwait. i left that night. the fog kept me in for the morning and i never saw the house again. so i'm totally all in about sharp reversals from nowhere. especially with a president
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that's capable of semantics that were unthinkable in previous administrations but the dreaded simultaneous cast of rising character stocks, bonds, gold, bitcoin a move that rarely occurs. let's think about this, first for most of my career when interest rates point down stocks went higher we're in a rare moment where we want rates to rise because they got so low but that's to validate what we hope is a stronger economy. we never had such incredible fluidity. nothing like that. want to own an italian ten year bond at the same rate as the u.s. one. that's insane so that money is coming over here that money is coming here too. all of europe is like that. their rates are too low.
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treasuries, they're pushing our low rates down. still low interest rates have been fabulous for stocks and you can't just dismiss them now because they're being caused by factors beyond our control. gold, precious medals had many sustained rallies. there's plenty of structural factors that make it that way. gold is a worldwide market more heavily influenced from flows from china and india and the united states. >> there's a great way to get currency out of the country that you think is going to fall apart so no one is trying to look over your shoulder. it's invisible so those countries that raise taxes they provide a market for bitcoin. it's the answer for the chinese because gold is too easily confiscated. you don't think it could happen in those countries? confiscation?
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how about a history lesson. it happened here. fdr confiscated our gold in 1933. many institutions fearing cyber attacks have been buying it up in the open market in order to pay off the attackers rather than spending all the money they need to fix their cyber security systems. when they break into individual pcs that have their own customerer custome customer service lines. that's right. they're telling you how to buy the bitcoin in order to get your computer unfrozen. what does that have to do with the earnings ratio of johnson & johnson or any other for that matter? these are separate. there's unseen things. but the fact that stocks bond gold and bitcoin are rising at once likely won't be the cause of any reversal. i think it's an evergreen headline that generates a lot of fear but frankly not much else.
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much more ahead. mad money. death rates from the 2nd biggest killer in the u.s. are dropping. i'm highlighting the companies battling back against cancer and pushing medical science forward. we know you care about these. we ask them all the time. trump's tax plan would spell disaster. intuit just hit a 52 week high. can the company keep the momentum going? and a company i consider the best medical device stock out there. not kidding. i'll reveal it just ahead. [ eerie music throughout ] the mummy... has returned. you wish to see... what i have seen? you will... when... i... kill you. [ explosions ] [ intense music ] the mummy.
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>> every year they get together with the american society of clinical oncology meeting that ended just yesterday but this is
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a ghuge event where we get to se data that can change the trajectory for stocks. now that it's over, who won and who lost? at the 2017 oncology. the biggest winner loxo oncology that saw stocks surge up to $70 on monday. a monster 43% move develops highly selective treatments to people that suffer from certain types of cancer plus by a single gene or abnormality. the company rolled out strong data from two major drugs. the first is a therapy from cancers that have a certain type of protein to treat patients
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that responded to the first drug and then developed resistance to it. although it's the first one that has investors excited about the company. it's a very exciting story but it's difficult to come into a stock after a 43% move without feeling like you're chasing it. maybe let's just let this thing cool off. second there's blue bird bio. it's a leading player in the red hot field of cancer immunotherapy. in addition to oncology they also have interesting treatments for rare genetic conditions like sickle cell disease. this is another stock that rocketed higher. a week bluebird was trading at $75. now it's at 108 so what happened? they rolled out data from the
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phase 1 trial. it's treatment for refracturing myloma. they reengineer them to target and kill cancer and then pump them back into the patient. the drug is still in the early stages but the numbers were actually amazing with a 100% overall response rate. this was a small trial. by the end of the last data analysis period everyone enrolled was still in remission and we're likely to get more data on this story in december. bluebird has a lot going for it but that's a huge move and i'm wary of chasing. however the partner was celgene and the stock hasn't done much as of late so maybe that's a lower risk play and of course a lower reward play in order to get into the stock. the third biggest winner,
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interesting. it's another company focused on breast cancer. it's intriguing because it's already round tripped. stock rocketed from $81 to $92 on monday but it closed up 2% and since then approximate pulled back further to $79 although most of the profit taking has to do with the fact that puma already doubled going from $31 on may 15th to $76 on may 31st after an fda panel recommended it for approval. the company also presented positive data from its on going phase 2 trial from the treatment of what's known as her 2 positive breast cancer that's ea t metasti
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metastisized to the brain. the fact that they had a response rate with median patient survival coming in was good. my view of the situation they need to digest the earlier rally. if you want to speculate on this one i consider letting it continue to unfold before you pull the trigger. what about the possible losers at this conference. that doesn't mean they're losers away from the conference. let's start with one i like. it's a larger more established player that has a couple of products on the market along with a huge pipeline. company hosted presentations for their big anticancer combo drug. it's being studied with merck and bristol meyers. they had good response rates on everything from bladder cancer to melanoma to nonsmall cell lung cancer to carcinoma of the head and neck, it fell 6% on the news. the stock had run dramatically for two weeks going into the conference.
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i think the expectations got ahead of themselves. personally i view this as a chance to do some buy as there's very deep pipeline. i like the company very much in real stock sense it's a winner. then there's juno therapeutics. saw the stock fall nearly 11% on monday. problem, juno gave us a safety and efficacy update on their treatment for nonhodgkins lipoma. there were 8 instances in the study and the company had to shutdown it's adult leukemia program last year due to patient deaths caused by tox sisty. so it's something they're worried about. the drug does look good but juno stock has been asleep for months and i'd rather own a biotech we can get excited about. finally there's roche. it presented phase 3 trial data
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on the big breast cancer treatment. in combination with the accepted chemo therapy standard. they weren't nearly as outstanding as the company made them out to be. the improvement from the combination was only marginal versus the struggle on its own which is a real blow to roche's prospects. stock fumbled more than 5%. but they're used to this drug not being as sexy as people thought will not be that big of a deal longer term. if there's one thing the american society of clinical oncology shows us it's that speculating and predicting positive bio cap can be difficult. i love to tell you hey, listen, here's what is going to be fabulous ahead of time. at the start of the show i used to try to do that but when you're wrong you really hurt people. that's why i prefer to tell you what worked and bank on a pull back when the sizzle dies down on the wirns and if you want to know a winner that got thrown out and could be bought here i
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suggest you buy insight as it's pipeline is much deeper than it's presentation would suggest. let's go to ellen in my home state of new jersey, ellen. >> booyah, jim. great show. thanks for taking my call. >> you're welcome. >> bristol meyers, jim, help. why is it going down? >> bristol-myers overpromised and underdelivered on this franchise. someone on twitter yesterday said you have killed me in bristol-myer. a year ago when that trial ta failed to show the data i no longer wanted i said bristol wasn't good a year ago. i'd like them to come on and explain themselves. always welcome jersey company. richard in california, richard. >> jim, thanks for taking my call and thank you for keeping my stock pointing north.
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>> there you go. >> so i have been watching it tank and i just wonder if you think it's a good time to get back into it? >> oh, boy this has been so controversial. i love what they're trying to do with parkinsons but it's so hard. i'm going to say no now. and bristol new jersey is based in new york. i want to make sure that they know that. there's always key data you can get out of events. when it comes to them i have now decided you have to wait for pull backs on the winners and i consider insight into this weakness because it didn't have a great presentation but it has so much more. much more mad money ahead. including my take on intuit. i'm getting into it. and then, alphabet and amazon have joined that thousand dollar lub which is better than the dollar shave club that i use here. could intuitive surgical be
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next? i'll see if it's a cut above the rest in the space and rapid fire in tonight's edition of the lightning round. so stick with cramer. ♪ we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. thithis is the new new york.e? think again. we are building new airports all across the state. new roads and bridges.
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>> in this very strong market we talk about a stock that's been particularly hot of late. i'm referring to intuit. software is loved by individuals and small businesses including mine. here's the stock that rallied nearly 25% year to date on top of a 19% run in 2016. now you the core of intuit vision is taxes. turbo tax is taking huge market share but the thing about this move is the stock climbing since tax day this year. highly unusual. i'm not complaining. have been a big fan of intuit and it's ceo brad smith for a long time. if you listen to me on this one you made a killing. but if you believe that the trump administration could pass some kind of major tax reform bill, something that could simplify the tax code dramatically then intuit is one
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of the last stocks that should be roaring here. this is indeed -- >> trump free zone. >> this is an anti-trump stock. it keeps going higher. so what's the deal here? it has three main businesses. the consumer segment where they make turbo tax. the nation's top tax preparation software as well as personal finance platforms and then they have a whole ecosystem. that means you're going to pay more for the stock. small business software from quick books for counting the payroll and payment solutions. finally a much smaller part of the business the company also makes tax software. put it all together and intuit is 50% tax prep and 50% bookkeeping. historically there's a strong correlation between employment and the number of people filing their taxes. you need to file a tax return if you're out of a job. we know that employment is very strong right here and even if it's not growing quite as
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quickly as we like from the last job growth number the fact is that more people working equals more business. it could just easily be h and r block. and what hrb has gotten it's act together with it's stock up nicely for 2017, the truth is that intuit has been eating their lunch for a long time which brings me to the next reason the stock has been on fire. intuit embraced the future. they focus on online tax files. they don't need posseesky brick mortar ones. a massive market share up 65%. at the same time intuit has the huge small business unit where the company is transitioning many of its older desktop based software products like quick books on to, can you guess? you probably can if you watch the show a lot. are you ready?
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the cloud. yeah, they have started adopting a software as a service subscription model. something that the market tends to adore because it gives you a high level of recurring revenue like the red hot sales force. work day. and service now. these days about a third of the quick books customers signed up for an annual subscription. not only does this give a more predictable revenue stream but many opportunities to cross sell their customers on other products. now as fabulous as intuit is the thing positive about this story is how the stock reacted to president trump's tax reform plans such as they are. remember back in late april the white house provided a one page sheet, i was trying to look for a piece of paper, one page sheet of an outline of something or content that might look like a tax plan? in addition to cutting corporate taxes trump wants to reduce the number of tax brackets while emitting tons of tax reductions
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and repeal the alternative tax. i'm not here to debate the policy. i don't care whether you see this plan as the triumph of free market economics ohr ridiculous give away to rich people that could explode the deficit. what matters is it would make it simpler and easier to file your taxes. deductions are like the hardest part and a simpler tax code would be bad news for intuit because more people could do the paperwork themselves without help from their software. while the stock did sell off a bit since then it's made a remarkable come back. stock rallied 8.5% the next day. and tax reform plans and a lot of people are very skeptical to go in and get anything done. now we're hearing that congress might struggle to even pass a budge this year so this is
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obviously something intuit shareholders aren't sweating anymore. i do think congress will pass a tax cut but might not look anything like the white house's one page plan. then there's ball balm care. if the republicans can repeal it, then intuit probably gets less business again but right now i wouldn't count on washington to accomplish much of anything. other factor is that inuits business is in great shape. they reported full quarterly results beating wall street estimates even after their earlier bullish preannouncement the month before. they from announced better than expected and topped that on top of that the guidance for the next cover and the full year were very strong. continues to take share and the company's small business provision is quick books online growing at, i checked this, i had to check a couple of times. 59% clip.
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that's a major acceleration. you have accelerated revenue growth here at 49% in the previous quarter. outside of the u.s. the small business subscriber base was even better. up 70%. these are great numbers and they have nothing to do with the tax code. now the stock isn't cheap anymore. it's trading 28 times. and h and r block. it's a rapidly growing small business software pervayer transforming into a cloud play. so here's the bottom line, trump's tax plan would spell disaster for the tax preparation firms the dysfunction in washington has turned out to be a huge gift for intuit and besides, it's become very clear this company has so much more than tax prep. with it's small business software business that is just embracing the cloud and growing like a weed. even if we do somehow get major
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tax reform, i bet inuit stock will be higher still which is why i would be a buyer of inuit stock. intu. stick with cramer. no splashing! wait, so you got rid of verizon, just like that? uh huh. i switched to t-mobile, kept my phone everything on it oh, they even paid it off! wow! yeah, it's nice that every bad decision doesn't have to be permanent! now you can ditch verizon but keep your phone. we'll even pay it off when you switch to t-mobile.
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>> it is time. it is time for the lightning round. and then the lightning round is over. are you ready? time for the lightning round. let's start with john. oh am i almost home state of oregon. john. >> caller: hello mr. cramer. >> how are you? >> caller: i'm well, thank you. my question concerns xerox. what's your forecast for the next two or three years? >> pain. no. i just don't think xerox has any catalyst. i can't recommend the stock. i thought there was more to it. it's a value play. let's go to andrew in new york. >> caller: hey, jim, first of all, first of all thanks for investment advice.
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the stock i'm interested in is alere. >> it's going away. that deal will close. my travel trust owns abbot. they're the next one. will you stop. it's the next one to roar. >> caller: hey dr. cramer. huntsman. >> that's also being done. that's another one that's being taken over. forget it. let's go to jeff. >> caller: cramer. booyah! let me throw out a quick horrah for my brother and sister marines. >> thank you for serving. >> caller: thank you for doing what you do. let me get it. >> i think it will be taken over. it's an inexpensive stock. they really turned it around. i'm a buy buy buy. on xilinx and that ladies and gentlemen is -- i'm done. i can't do anymore? i'm getting a wrap here. that's the conclusion of the
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incredibly short hair but the kids love it, lightning round. >> the lightning round is sponsored by td ameritrade. what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. see options data like never before. with thinkorswim only at td ameritrade.
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sometimes a stock will perform so well for so long you just have to ask yourself, how the heck do these guys manage to
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stay that relevant? that's how i feel about intuitive surgical. isrg. the maker of minimally invasive surgical robots with a stock that refuses to quit. i started recommending it in july of 2005. yeah we have been on that long. i had hair back then. i took it off last night. only a month after this show got it's start is when i started recommending this. this is the power of stocks. this thing is up 24. in fact just since the beginning of 2017 intuitive surgical has gained another 47% this year. just when people started to give up on the story or write the company off it gets a second or third or fourth wind. the stock's resiliency was on full display last week when some analyst downgraded it from buy to hole. and that's been the whole mark of isrg. what gives isrg it's long-term
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staying power? how is it this stock seems almost bullet proof? i find these exercises to be great because they keep you in a stock that you like instead of trading in and out and in and out and hedge this and that we don't play that game. for those of you that aren't familiar with this intuitive surgical's davnici ro botic platform lets surgeons perform minimally invasive surgery with a few small invisions. at first it was only improved for a few procedures but now it can do all kinds of things including helping with heart surgery. from the beginning i said intuitive surgery has incredible technology. talk to doctors. where i live that's where i first heard about it. doctors love it because it makes them better at their jobs, hospitals love it because minimally invasive procedures save them money by getting people out the door faster. the company also has the fabulous razor blade business model that i like so much because every time you use this machine to do surgery you need
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to buy new consumables. i have been saying the same thing for 12 years. the exact same thing. how does it keep climbing? every now and then the stock will stall as skeptics say it's run out of room. oh, jim, isrg is done. well wait a second back in may of 2013 it made a low at $346 a share since then it rahal willied to 936 as of today. many investors within convinced it ran out of juice. the company managed to start firing again on all cylinders. first and foremost intuitive surgical has never ever topped innovating. it's their hall mark. right around 3 years ago the company started getting a wave of new product approvals and these approvals continue to this day. in april 2014 they got fda approval for the latest iteration of their system. the davinci xi or 11. that same month the fda approved
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the machine for neurological procedures. later that year they got a thumbs up for a new optional imaging feature and more applications and various surgeries like removing the uterus and fallopian tubes. last year they got approval for a surgical table that moves in tandem with their davinci system along with various new accessories and last week the fda approved the davinci x or 10 this was a big deal because they weren't expecting it to be approved so quickly. the stock continued fabulous performance and the institutions. with the acceleration in numbers.
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accelerated record growth which is where it stayed so far this year. many of the more complicated new products carried higher margins which is the gross margin. that's what it makes after the cost of goods sold has gone from 66% in 2014 up to 70% last year. you combine faster revenue growth and you get an earnings explosion 19.8% earnings growth in 2013. wow. intuitive surgical may not be a young company anymore. we have excellent numbers for more mature business. as it's matured isrg has been racking up more and more cash. it's cash flow from operations surged past $1 billion last year
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rising 35% and when necessary it's used that cash for strategic buy backs. right around the $346 low that i mentioned earlier these guys a announced a billion dollar accelerated repurchase program and ended up buying back 2.5 billion shares in a single year. this was basically a shot with management saying their stock was way too cheap. come sell it to me and this time they only spent 183 million in part because the stock already started to run. last year they spent 42.5 million on buy backs. they didn't need to prop this baby up. however in december management seemed to announce a fundamental change. roughly $3 billion and then in
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january they told us about $2 billion accelerated buy back that could retire 8% of this share cap if the stock stays at these levels. the last time they did an accelerated buy back they spent every penny in less than a year. it's not hard to see the reason why. the stock pulled back $100 from its highs and seemed to be stuck in a rut so management came along and since then the stock has caught fire again just like when they rolled out the major buy back in 2014. these guys are pros that are buying stock right along with you on any big downturn. i like that. all right. how about the downgrade? they think it got out of hand. stock sells for 34 times last year's earnings estimates and that's not cheap. i have to give them that but i'm going to be okay with the valuation and i'll tell you why. historically the earnings
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estimates have been too low. sometimes way too low. intuitive surgical has a habit of blowing away the numbers and this time will be no different. and yes it's better. i defy you to find me another profitable medical device company with double digit revenue growth and nearly 20% earnings growth so let me give you the bottom line on this amazing story. every time intuitive surgical seems to be losing it's mojo the company comes out with new products or manager steps in with a huge buy back. don't bet against isrg and next time a stock pulls any would be a buyer. the track record is just too good to ignore. even after this remarkable run. stick with cramer. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest
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investment and wealth management firms in the country. discover how we can help find your unlock. i put everything into my business. and i had all these points from my chase ink card. so i bought ingredients, utensils, even made custom donut cutters. wow! all with points. that's how i created the ripple: the doughnut in a doughnut in a doughnut. suddenly it's everywhere.
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i mean, it really took off. what will you create with your points? learn more about the ink business preferred card. >> there's always the bull market somewhere. i promise to try to find it for you right here on mad money. i'm jim cramer and i will see you tomorrow. >> welcome to the shark tank,
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where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ my name is stephan aarstol. i'm 39 years old, and i live in san diego, california. i've always been what you might call a-a geek, you know, i got good grades, i was on math team. i've kind of always played things by the book. coming out of graduate school with an m.b.a., uh, you're sort of groomed to go in a--a certain direction towards really corporate jobs, management consulting type jobs,

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