tv Mad Money CNBC August 30, 2017 6:00pm-7:00pm EDT
6:00 pm
>> this one hasn't worked, but i think they flushed it the other day. this nike thing got me thinking. foot locker for a trade there, mel. >> thinking of flush i'm melissa lee. thanks for watching. see you back here tomorrow meantime, "mad money" starts now. my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. okay, enough we've got to take a step back and look at the bigger picture here, because that's what helped power today's rally.
6:01 pm
what do i mean by the bigger picture? for starters, think about this for a second the fourth largest city in the u.s. has been taken off line but for the most part, the state and local authorities seem to have it under control. while harvey has been a real tragedy for the millions caught in its path, the natural disaster hasn't been accompanied by any man made catastrophes like during katrina. trump's visit to texas wasn't a fiasco if anything, it was workman-like the president has had a real gift for being divisive in recent weeks, but if you only focus on the negatives, you miss the good things. like the 3% gdp growth, smashing figure by the way. more important, though, the president is acting presidential the fact that we have now a
6:02 pm
world class reclamation project in houston that he can lead. this storm hit a heavy republican state i'm betting they could get tens of billions quickly to rebuild the moment the flood waters recede it's going to be a massive shot in the arm for the nation, think everything from wood to gypsum board, martin marietta materials, u.s. concrete, owings corning. and of course now, when the water recedes, home depot and lowe's the rebuilding effort will be so enormous, that while while houston going offline will be noticeable, it will be ephemeral comparing to when the reclamation begins 500,000 vehicles can be damaged by the storm, which means they
6:03 pm
will have to be replaced i've got to tell you something, this auto industry, everyone has written it off not after this it's going to get a boost. i think you see numbers go higher i'm old enough to remember hurricane andrew, where government agencies moved quickly to rebuild then hurricane katrina, where the government dropped the balls and the rebuild is still ongoing a dozen years later. that means home depot and lowe's have more of a comeback here than i initially thought don't get me wrong, we know that at least financially, harvey has been the most devastating storm in american history. it's going to cost more than katrina. but the rebuilding effort will be far faster and far better organized because the authorities have this under control. congratulations, they know how to do it they are amazing remember, the feds have to help,
6:04 pm
because the property casualty insurers don't pay off on flood damage, just wind damage which brings me to the second point. our father is on message we don't know if this is the work of john kelly or not. but workman-like again today that allows the stock market to stop worrying about washington the fact that the president is pushing tax reform today in missouri helps he was on agenda but maybe if there's a chance congress could get something done, well, they'll get something done and the stock market will like it. some health care and tech stocks have been rallying based on the presumption that the repatriation of foreign capital is a real possibility now.
6:05 pm
graded, that's an element of wishful think, but a president who acts presidential is worth a couple on the upside third, how about the fact that north korea shot a missile over japan and we didn't go to war and the stock market went higher the lack of bellicose rhetoric is a good sign north korea is a nuclear power now, and they're not going to give up their nukes without a fight. which means detente, sadly, is the only sane option we clearly managed to put this in the rear-view mirror in record time. i'm shocked. fourth, for the last few days, we've been spared the doom sayers that come on the air to boost their own performance. we haven't seen these high profile money managers and professional prognosticators calling for crashes of late.
6:06 pm
i find it's refreshing, given that the averages are masking a lot of disappointment any way. a thin market isn't being disturbed as much as you might expecting. fifth, we have two deals occurring right now vital to the stock market health care and aerospace. some key consolidation in two red hot areas. the stock at gilead has climbed more than 10% since the deal the impact the short sellers have had the run for months, but the shorts will get crushed we know there are way too many independent drug and industrial companies. sixth, as part of the big picture, the great untold story
6:07 pm
is the steady decline in the dollar this is unmitigated good news for the stocks of the companies coming down for bad reasons. we'll soon be getting bumps, not cuts, from companies with big international exposure look at what happened to pvh they saw a sales boost from the decline in the dollar. this is huge one reason why we keep it climbing here, it's going to be the dollar no one talking about it. i just did apple is introducing a new iphone and it fight go on sale by christmas the entire supply chain had been worried there isn't enough time for the company to get the phone out properly but it's a huge boost for non-f.a.n.g. tech, which is the tech that matters. broadco m's stock has been overly punished. nvidia is no slouch either workday had a remarkable quarter, which could spur all the cloud stocks
6:08 pm
put it all together, the new iphone pushing up the component suppliers, strength in f.a.n.g., no one even knew why netflix was up so much, as well as non-f.a.n.g. tech, and aerospace, and the nasdaq might have a real chance to rally, which would be very visible and could spill over to the s&p 500. finally, if harvey has brought our political class together, then congress coming back in session might not be the debacle i feared, assuming they can raise the debt ceiling and the president stays on his game. i realize that's a tall order, however, it is possible and would be very good for stocks, especially if trump talks about how we could be looking at the greatest rebuilding effort this country has ever seen. of course, this could fall apart with one ill-considered tweet. but i live in a world of hope. president trump, you focus on the country, all of the country
6:09 pm
as it helps america's fourth largest city get back on its feet again greg in michigan, greg >> caller: go blue-yah how are you? >> great it sounds like you're in a backup audio >> caller: i'm fired up, man i've got a question here, you've got to bring jim harbaugh back to my beloved michigan when are you going to have mr. hackett from ford on >> i will tell you this, the steel case situation is not that good i would love hackett to come on. here's the problem, i still can't recommend ford i can't recommend ford why? because ford's going to have a down year and people don't like that let's go to august in new york
6:10 pm
>> caller: yeah, jim, big boo-yah from long island, new york how are you doing today? >> man, i'm going to be out there as quick as possible what's going on with you >> caller: not much. been looking at analog devices >> why are you looking and not buying it's not done going up there were people questioning that stock the last time i may have to do a second show tonight. let's go to tim in new york. >> caller: hey, how are you? >> couldn't be better. how about you? >> caller: wonderful, thank you very much. calling today about hewlett packard. early monday, i noticed the partnership device, the life cycle management via the i-cloud, is just looking excellent where they're trying to seize that opportunity in the market but i saw last friday with hp, that news, the digital transformation of the $12
6:11 pm
trillion in global manufacturing industry now, do you think i should sell or hold the stock? >> well sell or hold it? there was a huge back order for this pc. they have great stuff. you know what my wife said last night? it could almost be confused for an apple hmmm i like my hp, too. the old one had too much food in it i had to get rid of it we live in a great country, all right? don't forget that. am i allowed to say it i just said it you want to help the stock prices mr. president, focus on the country. tonight, will amazon's purchase of whole foods impact this organic giant? i'm heading to the source. and they're finally here, the takeovers are taking the street. and they seem to be targets all
6:12 pm
over the place stay tune. and workday just reported a blowout. could the company's amazing run continue i think so but let's talk to the ceo. and you know what? it can do this stuff, too. you can write on it. it's like, wow stick with cramer. >> don't miss a second of "mad money. follow @jimcramer at twitter have a question? tweet cramer at #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. ♪ it's time for the biggest sale of the year with the new sleep number 360 smart bed.
6:13 pm
it senses your every move and automatically adjusts on both sides to keep you effortlessly comfortable. and snoring.... does your bed do that? the new 360 smart bed is part of our biggest sale of the year where all beds are on sale. and right now save 50% on the labor day limited edition bed, plus 36 month financing. ends monday!
6:15 pm
that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. so all you pay for is data. see how much you can save. choose by the gig or unlimited. and ask how to get $200 off the latest devices. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. ♪ now that amazon is finished buying whole foods and spreading to cut prices left and right, wisdom is that the packaged food companies could be in a lot of trouble. this was a tough business even before amazon and the whole foods tieup. competition has made grocery stores a lot less generous to suppliers. so is there any way for a food company to triumph fear?
6:16 pm
hane is tied into the healthy eating trend and natural organics the company is trying to cut costs too, but the stock hasn't done much. hain just reported yesterday, and the company delivered a good top and bottom line, but it didn't seem to matter to the stock. investors seemed so plagued and worried. each when management offered some bullish commentary on the benefits plus, we know when an activist firm got involved, some people theorized they wanted the company put up for sale. is this stock just not getting the credit it deserves let's take a closer look with the ceo of hain se lelestials
6:17 pm
you deserve to be back your conference call was interesting. you made a point that people don't understand if you are selling a lot, whether it be to amazon, whole foods, to anybody, you're going to be able to cut your costs to make a lot of money. so it can be a tail wind it's not just a fiction you described. >> number one, i've been doing this for 24 years. part of hain has been built on acquisiti acquisitions today we own some of the greatest brands. coming back today, consumers want healthy food and we talked about this, many, many times and millennials want branded, organic foods. they want to know what's in their product. i mentioned something yesterday on the conference call, where over 30% of natural, organic foods are bought online. where's the biggest growth
6:18 pm
coming from? online amazon, amazon, amazon and whole foods together are a big part of our sales and will continue to be a big part of our growth. but consumers going into brick and mortar today want healthier food $800 billion of packaged goods is sold in the u.s and the whole industry is going through a change so consumers are going to buy earth's best versus gerber so that's where the opportunity is >> let's take a look here. bmo, skepticism remains despite a solid turn around. then it says, they have -- viewing the guidance with a dash of skepticism and pointing out while you think there's a greater degree of insulation, in the end, amazon has to crater everybody to take a share. >> so jim, listen, i've overcome a lot in 24 years. >> i think that's true >> i'm a fighter out there
6:19 pm
number one, 2017 was one of my toughest years ever in our career and we went through a financial review we came out on the good end as you say. with that, some challenges, whether it was in the protein business but at the end of the day, having strong brands, strong people and being in a good category will get us to the next level. hain has made a lot of money over its years, and given back to shareholders, we created over $4 billion in market share i believe hain has helped change the way consumers eat in america by getting more contribution on our products >> what's interesting is i always felt that there was a lot of costs to cut. you had to bring in people who really did say listen, we have to divest this and cut costs there. i didn't know there was that much room to do it >> listen, $400 million, you're
6:20 pm
going to take $350 million of cost of that hain throws off a lot of cash and i'm focused on growth, focused on my balance sheet. when you go to an atm machine, you don't get an adjusted balance, you get a cashout i am big on cash because cash pays the bills hain has not invested into the consumer the way we are this year we are going to spend $50 million to bring that millennial in to connect to our brands. and that's a big, big expenditure we'll make on the consumer >> you know, because the show has some rules, and we see accounting issues, we get nervous. what did you learn how that you went through that, and you actually had an unbelievably good quarter there were notbuds on that board, but what did you learn? >> listen, the silver lining, i
6:21 pm
went through a year of hell. on the other hand, listen, you have to pull all your employees together, you have to pull your shareholders together. the rumor mill, et cetera, et cetera at the end of the day, we come out a much stronger company. you look at the company and say hey, we're not so bad at all with that, we came out june 22, there was no material change all cash -- >> that's really important no material change is really important. >> so the big thing is what you learn is this here it's all about your brands and your people. could we have had stronger people, could we have had -- and hain has been built on acquisitions and the big thing is the process so to me, there was a lot i learned through this here. and i will tell you, hain has come out a much, much stronger company. >> is that something when you talk with these people from engage capital, where is this? is this adversarial?
6:22 pm
because you are a person who is open minded to different people's views >> so number one is we were going to make changes on our board. i believe boards should be independent directors, not friends, et cetera back in 2012, i had carl icahn as an activist investor come in. he made himself $450 million and the company continued to grow. and i have an excellent relationship with carl today i want the best for shareholders, and if engage has great board members, i'm open to it it's moving forward and investing in our brands and returning to our shareholders. >> i am thrilled you got through this issue i want people to understand what their view is on the tail wind in whole foods there's a lot of panic involved. maybe not all panic is good, because no one ever made a dime doing that take a look at the brands.
6:23 pm
good to have you back. >> good to be back thank you. coming up, the health care debate may be in hibernation but what happens if repeal and replace returns? >> regardless of whether they repeal or replace, your company is going to make a lot of money. >> cramer sits down with the ceo of a company with skin in the health care game, when "mad money" returns new ne your brain is an amazing thing.
6:24 pm
but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember.
6:25 pm
6:26 pm
takeover gilead has done nothing in recent years that's because gilead's king drug is just too good. it cures the illness that makes it a short-lived cash cow, because everyone takes the cure and the disease stops spreading. but they did make a lot before it peaked. for years, they waited for gilead to put the money to work. monday, they shelled out $12 billion for kite pharma, betting its formulations will get fda approval the stock has fagone from $73 to $81. the market cap gain is nearly what they spent for kite this purchase has started the chatter that blue bird bio will be caught. both companies have been moving
6:27 pm
up and they do have a good relationship then there's the saga of united technologies and whether they're going to purchase rockwell collins. they're critical components to one of the greatest bull markets of the era both spokes have been on a tear. there's that circle again. my take. look at how well the stock at johnson & johnson has done it's gained more than 18 points off a $113 basis i think these moves were behind the 10% rally today in the takeover of insight, another company i like very much it's not just aerospace and drugs. data has been on the move. that deal helped move stock from $69 to $109. the thought is the tech data
6:28 pm
stock will move higher when it reports tomorrow finally is the purchase of neff by united reynolds maybe this comes under the category it's lucky rather than good they have capacity in the southeast, which will help clean up in houston. all of these names demonstrate one fact, if the stocks move up after news of a deal, a heck of a lot more companies will make acquisitions i think corporate america has given up on our dysfunctional government and is going full speed ahead of acquisitions, drugs, aerospace, even oils, if the price of oil were to drop to the low 40s. all bad news for the shorts. johnny in kentucky, johnny >> caller: hi, jim >> johnny.
6:29 pm
>> caller: i've invested with my 92-year-old mom and 28-year-old daughter with gnw. that was a 2004 spin you have of ge the book price is over $26 the buyout is $5.43 china ocean wide the current market is $3.43. if the government approves the deal, it's a 48% uplift. if it's rejected, what do you think the impact will be >> they are one of my life insurers i think that's a -- it's a speculation that is a speculation that's too far for me you have three people in on it everybody has to understand that the upside is limited, and the downside is also limited that's the besti can say joseph in virginia, joseph >> caller: hello, big jim, from newport news, virginia
6:30 pm
>> okay. >> caller: i just want you to know the last two times i spoke with you, i took your advice on some stock and made money on both of them >> that's all i want thank you. >> caller: i thank you they say three's the charm my question is twofold it's about avav, which makes the unmanned drones and juneau, which also makes unmanned drones which of the two -- >> i'm only familiar with avav they reported last night and it was a dynamite number. so i think you're okay remember, i like kratos and raytheon because they have the patriot missile. but that was the quarter i've been waited for. ronald in pennsylvania, ronald >> caller: hello, jim. i'm calling from potstown, pennsylvania >> oh, okay.
6:31 pm
>> caller: last time i saw you was at the 20th anniversary of the street.com, where i got a picture with you and your lovely bride. >> lisa, yeah. how can i help >> caller: my wife and i are retired, so i buy mostly spokes. i mknow bristol-myers has had trouble, but i'm playing with the house's money. >> look, this is one of those where if i put my hedge fund hat on, this one acts too well in other words, it's not been succeeding the way i thought so i think that let's just say i think something is going on. i mean it. really there's really no earnings there. but they have something cooking that we don't know takeovers are coming takeovers are coming
6:32 pm
sector is right for the taking, drugs, aerospace, maybe even oils that's great news for the longs. much more "mad money" ahead. from payroll to staffing, workday keeps the workplace working. the stock looks like a blowout and i consider it to be the number one play on nonrepeal, nonreplace what cnc can tell us about the health care sector and all your calls in rapid fire in toomdnight's edition of the lightning round. so stick with cramer
6:33 pm
6:34 pm
6:36 pm
hit. that's the danger you need to be aware of when you're dealing with highly valued equities. look at workday, the provider of software that helps with businesses from payroll to expense management to procurement. it's been on fire and up 62% and we've been behind it for years. that's because workday keeps generating tremendous results. we've got another strong quarter today. they posted a nine cent earnings fee, higher than expected revenues this is not a small company. management gave better than expected guidance for the next quarter and the full year. i'm sure someone is going to pick up on that. i'm telling you they'll be wrong to operate on it let's go to the ceo of workday and learn more about the quarter. welcome back to "mad money." >> thank you, jim.
6:37 pm
great to be back >> neil, this seems like the quarter we got, what you talk about the rocket ship. the first booster is the human capital management it looks like the open platform has brought a whole new cast of characters it's working, isn't it >> it's working very well. this past quarter, we passed 30% of the fortune 500 using our hcm products that's really their core hr solution and it's translating into financials and moving into international markets. international revenue represents 25% of our business. >> i can tell you, i saw you got citigroup. we think that they've done a remarkable job it is a worldwide institution. this has got to be one of the biggest wins in finance that i can recall how did you get it and was it
6:38 pm
competiti competitive? >> everyone is competitive every one of these opportunities, we're competing against large companies. they made the decision based on our track record of customer success. possibly they hooked at the success of bank of america in using workday and going live in a rapid time and adding more to the portfolio. and the banks talked amongst each other that level of success, also deutsche bank and morgan stanley. it translated into citi choosing workday. i was with them a few days ago in new york. >> that's fantastic. two, if people don't focus on it enough, two of the largest companies in the world, ieman' and shell. we think of workday as an american company those are probably the two up for grabs in europe. how did you get those this >> once again, the methods around innovation and taking
6:39 pm
care of customers is a global message, and we deliver against those messages they did their homework and decided to choose workday. i think they looked around at other companies and saw a number of companies using workday successfully and felt it was the right path for them. and i was involved with both of those sales cycles and i give a tip of my hat to the ceo of worldwide sales he built a great team in europe and they continue to deliver great results around the world >> we know the way things work, there will be 20 items, and one someone picks on someone might say billing is $547 million, we were looking for $552 million how do you deal with that when you blew away everything else? >> going into this year, when we
6:40 pm
switched over to the 606 accounting standard, we were very clear that we were no longer focused on cash collections. 606 doesn't really worry about cash collections and so we're not either guiding towards it or frankly running the business on billings we're running it for profitability and growth >> and defer revenue, once again standout >> that was a good quarter, a good quarter across the board. >> they'll say, well, wait a second i mean, we actually want a lot of business that workday didn't. i don't know, who did they win that is so noteworthy, because this is qualcomm and nordstrom and humana these had to be the big jobs that were up for grabs >> so our math is at 30% of the fortune 500 has chosen workday 50% of the market of those
6:41 pm
fortune 500 companies haven't made any decision yet. but from our math, we're the clear leader in the fortune 500 segment, but there's still a lot of market opportunity in front of us. >> if we had carlos on from automatic data i said how much business -- i was listening to the forecast obviously from pershing capital. and he was saying why aren't you as good as workday he said, they're our partner is that a correct description of your work with automatic data? >> well, i would say they're our competitor and our partner, and i'm a fan of carlos. i think he's a very good ceo that's a business that's been around for 50 years, and when he took over as ceo, he inherited a company with a lot of legacy software, and he's trying to transition them into the cloud we had the great luxury of starting with a clean sheet of paper. we have many joint accounts where they're the payroll
6:42 pm
provider, we are the hr provider but i think he's a very good ceo and i'm a fan of carcarlos >> but it just means that a cloud solution is much more liked by the customers >> i think that's the case and i think the market numbers bear that out. but i think a fair comparison for adp is oracle. you have to look at other companies that deal with legacy software and generations of old technology it's a challenge to overcome that i think carlos again is doing a good job in the time he's had at adp. >> this was a terrific quarter congratulations. workday with some remarkable wins great to see you, sir. workday, if it comes in, would be a blessing. sometimes they pick on some line item i like to think bigger
6:44 pm
you're searching for something. like the perfect deal... ...on the perfect hotel. so wouldn't it be perfect if... ....there was a single site... ...where you could find the... ...right hotel for you at the best price? there is. because tripadvisor now compares... ...prices from over 200 booking... ...sites ...to save you up to 30%...
6:45 pm
6:46 pm
round. [ indiscernible [ buzzer ] and then the lightning round is over are you ready, skedaddy! time for the long round. bob in new york, bob >> caller: boo-yah, jimmy. >> boo-yah >> caller: i'll be brief sense you had the ex ceo on twice, this stock is -- unfortunately, that was with warren buffett aggressive, growth and talented management has many positive initiatives on the way >> okay. what's the spoke >> caller: i would like to know if this turn around would make a compelling interview >> reporter: what's the stock? >> caller: iconic. >> no, no. let's go to donna in florida donna. >> caller: hello, jim. i'm calling about dpz.
6:47 pm
>> let me just tell you, we've got to digest these sellers. once the sellers are done, we'll make a strong push that's because of the international growth i think it's going to come back. there's a problem in the uk. patrick in arizona, patrick. >> caller: good afternoon, jim i have about 500 shares of kinder morgan i bought before the crash. >> maybe one day next year, it will raise the distribution, but it's not my favorite at all. thomas in ohio, thomas >> caller: jim, thanks for taking my call >> you're welcome. >> caller: you remind me so much of lewis at templeton, and your advocacy of common stocks. >> thank you one of my icons, the late icons. thank you. >> caller: my stock is snap-on i love their products. >> we love their products, but
6:48 pm
it's just -- you know, the numbers have not been there. frankly, the numbers have not been there so i want to be very careful i think it's a great company, too. but that group, i was hoping it might come back off of houston but it was a tough downgrade let's go to jim in new jersey, jim. >> caller: jim, sbrinterested i your long view of gw pharmaceuticals. >> even though i think this is one of those legal substances, let's just say the stuff that used to be illegal is getting a lot more legal kirk in florida. >> caller: thanks for taking my call i've got a question about a stock called allergen. >> it acts badly
6:49 pm
my conclusion, it acts really badly. i think they're doing a terrific job and nobody cares so let me just say this, jamie is in control right now. she's the goldman analyst, and until she gets more negative, it's going to hang there let's go to frank in illinois, please >> caller: boo-yah, jim. >> what's up >> caller: my question is about at&t >> it's fine it's boring. it's okay. it's good. play, b and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade 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
6:50 pm
6:52 pm
with the white house now seemingly focused on tax reform and disaster relief rather than health care, what do we make of the health care companies that rely on federal spending to turn a profit the stocks sold off after the surprise republican speech in november, this caught has caught fire this year up more than 50% from 2017 most of these gains coming after the gop's plan went up in smoke. obamacare still has its
6:53 pm
problems, but there's no denying that centene has been a huge winner from the law. and as long as health care stays off the agenda or just modified, we know the company will do well they just reported a major top to bottom line, management raising forecasts. so can the stock continue climbing let's dig deeper with the ceo. welcome back to "mad money." >> thank you good to be here. >> so glad you're here we had you before on satellite it was great but before that, you came in and explained some things that people felt were accounting difficulties they weren't now i want to dispel another belief, which is that regardless of whether they repeal or replace, your company is in position to make a lot of money. >> i think we're doing very well we said that it's a matter of how you manage the care that makes the difference we're managing it. we have good net works and we're
6:54 pm
also very local. so the local ceos are doing what has to happen in that particular state. >> there's an interesting moment in the conference call where someone asked you, what does it mean to be the only provider in a state after so many have pled out. you said it's a double edge sword. >> when we're the only one, we get the full risk. i like that. you get the healthy, the critically ill, the whole thing. when there's competition, i like it, because we know how good we are compared to them so it's a balance. i like it both ways. >> okay. now, i'm sure you're following the debate even though the debate goes on, there's just -- each state has something going on and we should never think that everybody at the state level is held hostage by washington. you're going after a lot of different states next year kansas, missouri these are big. maryland just got -- >> it's working well we continue to grow. we continue to add states.
6:55 pm
it's a good segment. the fix is so simple that it can be done -- >> you better explain it to us >> what we've been recommending is drop the -- 100% of the expansion from 138 take the exchange and go from 100 to 300 with subsidies. that will cost you, $15, $20 billion on a $3 trillion budget. put in a copper plan, which is wellness, big deductible and catastrophic care for people hike you, the young healthies. then i want reinsurance, not a high risk pool but the health plan should be 80/20. so the health plan still has to
6:56 pm
manage the care. it's not a matter of just wiping your hands of it you do that, and we pay some of the premium. >> okay. a simple fix seems to allude washington is it because there's certain interests that would get hurt by it >> i don't think anybody would get hurt they're just trying to be all things to all people they're trying to help the states and say to the states you can do what you want then you have chrome plans, iron plans. i believe in keeping it simple >> right now, one thing that you were asked, which is they -- we have all these drug companies come on you have $500,000, $700,000. can't they wipe out a centene program? >> no. what's interesting, there was a product 17-p, which helps premature births and somebody got it as an orphan
6:57 pm
and took it from a $39 dose to $1700 per dose so we talked to some pharmacists, and they compounded it >> so that you got -- okay, they compounded, you break the price. >> and the positions liked it better, because it didn't have as many preservatives. so when there are issues, it's our job to figure out what is an alternative. always what's the highest quality alternative. quality first. >> you've done a remarkable job. i'm confident your company will continue to make money regardless of washington that's the chairman and ceo of centene corporation. read will conference call. you'll understand why they make money, and they also provide quality care stick with cramer.
6:59 pm
7:00 pm
>> welcome to the shark tank, 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." ♪ jared joyce, a serial inventor who's hoping to sell the sharks on one of his many ideas. this is going to be fun. my name is jared joyce. i'm an inventor/entrepreneur, and today, in exchange for $250,000,
118 Views
IN COLLECTIONS
CNBC Television Archive Television Archive News Search ServiceUploaded by TV Archive on