always do. i like the delta there is so much test toast roaroa testosterone join us tomorrow >> my mission is simple. to make you money. i'm here to level the playing field for all investors i promise to help you find the bull market. mad money starts now >> hey, i'm cramer welcome to cramer america. i just want to make you money. my job is to educate and teach you, can you call me or tweet me nearly a third of the companies in the s&p 500 report this week. the averages keep running. dow gaining 11 points today. s&p 500 is up to a new all time

high and the nasdaq advancing .19% that's a potentially toxic combination. we're in favor of high stock prices but this is an exception it is counterproductive for stocks to run up into earnings that is confusing. the company reports a new quarter but the stock sells off. investors want to take profits many people can say there must be something wrong with the results. worst it can be devastating. if your stock rallies into the quarter and results are bad, it sets you up for a horrific decline. i want you to understand this expectation game plays out this is the hardest game in most homes to understand. let's start with the most visible, let's start with apple.

yes. you know i like it when it goes higher this thing has gone up endlessly. people say too much positive feeling. giving us the fuel to push this stock higher when i was recommending apple 30 points ago, there was still lots of skeptics left but with so many analysts recommending the stock, i see a ton of camp followers itching to use this quarters as a reason to downgrade. these are people that regard apple service revenues to be -- a nuisance to forecast and at best or told to scratch at worst. they only care about anywhere near term earnings models. now that we're trading here, plenty of upgrades and however these levels apple is cheap as a stock, even though it's a fabulous company, i expect the

stock to get hit nothing changed, my mantra is the same, own it don't trade it. at least you understand why the stock is trading off think about it like disney this is obvious to all of us in this country everyone presumes the new avengers movie would break records. when it had the largest opening weekend of all time, it broke a record if you expect the disney stock to rally on the good news today, you miss the fact that the stock already had a monster run into the premier that's why last week i was practically begging people not to pay up to this one today. you almost guaranteed to lose money. sure enough, it got dinged today. you should expect the same thing from apple i think wait until next week, after the quarter. i think you'll get a better buying opportunity it doesn't have to be a big day. as a matter of fact, i just want some breathing room. and that's what we saw with both facebook and amazon. stocks were hot and then they

took enough of a dip right before the reports that they were able to rally without a slew of down grades. hasbro, going into the earnings season expectations for this toy maker were incredibly low. hasbro disappointed too many times. while the problems weren't of the same making, not at all, the whole industry was slammed by excess inventory, thanks to liquidation toys "r" us, they ran out of patience. even though the ceo kept coming on this show and patiently explaining that the problems were temporary, no one cared that is the perfect setup. there is a series of upgrades and now bullish. they service trampolines every time the stock pulls back. okay let's see the reverse of hasbro. look at 3m which we'll have on show later between the last quarter which is only so-so and the last quarter, they tacked on 25

points so when 3m reported a genuine disappointing number, the short fall and forecast cut, the stock plunged nearly 13% in a single day which is a huge decline for $100 billion company the runup into the quarter gave the bears tons of extra ammo i perfect edict more paying for 3m given how hard it is to turn the ship around. let's see what mike roman has to say before we jump to any conclusions. then there's the textbook, alphabet it's a red hot growth vehicle. rallying like crazy. up 10% was up 10% this quarter. talk about a horrendous setup. it missed on revenues. they took it out and shot it as a massacre of another class, of course, worst case scenario. get pummelled on earnings and spend the next three weeks rallying it's the modern growth stocks. we saw some of the ramp in the stock of intel ahead of the quarter. i figure somebody had to know

something. the stock kept going up and up it did nothing stock lost 9% today. i think the runup in the quarter left a real stink around this one. i don't see them mounting a comeback any time soon you realize it was not specific. all that is possible to overcome the expectations game. vm ware, they managed to rally and rally. they rally into the quarter and then after the quarter same thing with the unstoppable payback. that is hardly universal it is the opposite considering the pullbacks actually matter. bottom line, be careful what you wish for we don't want stocks to go higher every single day. a gentle dip ahead of earnings to be the best vaccination against a selloff. a stock that comes in too hot like alphabet, that's like a jet landing on an aircraft carrier they often miss the decks and get obliterated as 3m did last

week and alphabet has done this very night bob in new york, bob >> hey, jim. question based on the list ipo fiasco, how do you view the $500 million that paypal is investing in uber what are the risks to paypal investors and is this a way to play the uber ipo? >> uber ipo, we have to see where it s something people you have to understand about uber. you let us down. lyft was going to open at $100 i didn't know you could sell stock if you owned it before the ipo. if you bought it right before the ipo you can sell it. that is very unusual i don't know where uber is going price. a lot of retail investors are giving uber ahead. that is not a good sign. paypal and the stock is unstoppable. they did a great job checked in with the company this weekend, everything is strong there. i wouldn't worry about any investment they make try to figure out has the stock got too high that's what i'm worried b it

seems like it hasn't undervalued thin tech. brad in massachusetts, brad? >> jim, i got a position in oxidental. with the discussions, should i be concerned about more down side >> i think it is going to get it i think vicki has been expressing the most, i'd say, ver sieve us are ways she's going to get anadarco. travel trust owns it i am thinking that maybe this is about as good as it gets oxidental may be overpaying. remember, chevron had firepower by anything. i don't think chevron -- chevron may not go higher. i don't know if you check the rhetoric i thought they might wow, vicki holab, i don't think she can be stopped even though chevron can certainly stop her if they wanted to. chris in florida chris? >> hi, jim boo-yah. >> boo-yah >> bristol-myers i've been listening to you for a long time. the last couple of weeks the

early bird catches the worm, buy something ahead of time. is bristol-myers my worm >> i have to tell you, bristol-myers, everybody told me i'm all washed up here at $45, $46. you know i think geovany got himself a powerful combination with cell gene, he'll be able to take that cash and do more things with it i say buy, buy, buy! all right. we're in the thick of earnings season be careful what you wish for i'm here to help you up. if your stock is ramping into the quarter, let's just say on "mad money" i'm revisiting the 5g recommendations telling which you companies to consider in the ever evolving space. 3m had the worst day since the crash in '87 get to the fwbottom of their report and is the morning side to the stocks like they were in february i got your fix in tonight's off the charts stay with cramer >> don't miss a second of "mad

money. follow on twitter, have a question tweet cramer #madtweets send jim an e-mail to madmoney@cnbc.com. miss something head to madmoney.cnbc.com.

we're on the lookout for long term themes that can give you multiyear gains. so as long as you push them correctly. right now one of the biggest themes out there is 5g it is being rolled out all over the globe. a process that will take years when you find a good story like this you got to stick it with. that doesn't necessarily mean you should play it with the same stocks the whole way through remember, it's not buy and hold, it's buy and home work you need to do the home work to make sure you own the best names. a little less than three months ago i gave you the run down and gave you five picks. there are a lot of major

developments let's update where we are. i got some wrong and some right. let's go over them i don't like that let me get up to speed. there are a bunch of different ways to play the 5g buildout we'll start with the equipment places in early february i recommended both ericsson and nokia. i thought they seemed poised to take market share from the chinese competitors. less expensive technology. the u.s. government is pressuring china to keep them out of the 5g infrastructure nokia was the most attractive of the two. i got it backwards since that piece, ericsson stock is up 13% and nokia down 12% what happened? a month ago, the data protection regulator is looking into whether nokia branded phones breached privacy rules they were sending data to china which is not great when the whole thees sis that nokia's products are less likely to be

spying for china nokia stock got sandbagged on news they haven't made a cell phone since 2014 nokia banded phones are made by hmd global it has been in the equipment for years. sellers didn't seem to care. aberration then when both companies reported in the past couple weeks, ericson told a better story. delivering a top and bottom line beat stock jumped 7% on the news. nokia on other hand gave you mixed numbers. better than expected sales slightly worse than expected earnings the conference call, ceo told you and i quote, it is a weak quarter for nokia. the stock plunged. even he assured us the business would get better as the 5g rollout continued. at this point, ericson is clearly executing better than nokia. that said, nokia is a much cheaper stock. trades at 13 times earnings estimates versus 18 for ericson. nokia is paying to wait. 4.2% dividend. i like it. but if you want best in breed, ericsson is the way. if you want value stock that's

got a nice dividend. nokia is the way to go i expect 5g. next up, there are the fi5g semiconductor companies. sky works, qualcomm and xilinx qual qualcomm is up 7% intel is up 2.4% there have been some major changes here originally like them all i told you skyworks is my favorite it is cheap and has a tremendous amount of 5g exposure. some are right for reassessment. qualcomm had the most seismic shift. communications chipmaker has the best 5g offering and virtually in every 5g phone. but they had a bitter lawsuit with apple which was going after them for monopoly pricing. when they reached a settlement two weeks ago with the deal and six years, the stock soared. not only did this remove a major

overhang, it gave us visibility for qualcomm sales for years to come the stock has rub from 58 to $86, it is less expensive. i think it is a hold up. we have to see what they say when they report on wednesday. sky works? the radio frequency chips power is connected to all sorts of devices. there is huge demand for them as more and more phones are built to handle 5g stock is moving side ways. doesn't matter i think it's a phenomenal long term story it doesn't hurt that stock sells at just 12 times earnings estimates? sky works reports on thursday night. i expect them to tell a good story. in the stock gets hit, buy, buy, buy, then there is broadcom. fantastic company. broadcom is far from a pure play on 5g. they have exposure and the company is in terrific shape you don't buy broadcom for 5g exposure you buy it for the track record. the amazing margin expansion we're seeing thanks to the

expansion of ca. it looks like it worked. intel tougher. when the semiconductor reported last week, guidance was tepid. stock got obliterated. down 9% on friday. i knew they had execution issues i didn't realize they were this bad. there was a lot to dislike here. for our purposes, you need to know that intel is a name that is getting out of the 5g modem business hard pass. finally, the toughest one of all, xlnx. that is a programmable logic devices. that is chips that may customize as need bid each customer. they're making a bundle from 5g deployments. it is high risk and reward the stock has become a roller coster sky link went from $114 when i recommended it to $141 last wednesday. then the company reported. the quarter was a -- it was fine modest top and bottom line beat. people didn't like solar flair wall street didn't seem to be

thrilled about this thing at all. and the stock lost 17% of the value last thursday. it's now back to $117. you no he what it's attractive here if you're going to own a wild trader like xilinx, you have to be able to sell the rips and buy the dips if you want to have any huge second l secular trend, you have to keep doing your home work that's why i'm trying to keep you up to date on this story and will continue to do. so we all know that 5g is the future mack in louisiana, mack? >> boo-yah from new orleans, jim. i turned 27 today. i'm a long time listener and read your book >> thank you very much >> i can't agree on this one he likes at&t. i like verizon with -- >> look. mack, i never want to contradict your dad what have to tell you is verizon has a better balance shield. let's go verizon i think that will be the safer

name 5g is a big ever revolving and involved story home work is key when it comes to the themes. that's why we do it for you. much more "mad money" ahead. 3m tumbled on poor earnings. but could the company say tape together a turn around i'm crunching numbers with the ceo. and this is market settling in for a sustained rally or more instability ahead? we have to go off the charts to find out your calls and rapid fire and the lightning round. so stay with cramer.

some earnings reports were spectacular. 3m missed. that led to a 13% plunge in the stock last thursday. is there a way the company can turn things around how fast can they do it? let's take a closer look with michael roman, the ceo of 3m get a better sense of what is happening here it takes a real grit to come on when the knives are out for you and your company mr. roman, welcome to "mad money. good to see you. have a seat. thank you. most people when they don't deliver, they don't come on. i salute you you were disappointed in your saenl execution. i know you said you have playbook to turn things around why should we have conviction this is 3m, the blue chip we should buy >> thank you for having me on

today. it just great opportunity to, you know, talk about the situation we face. let me start with what i said in the beginning. my earnings call we're disappointed in the quarter that we delivered for 3m and it really was driven by some challenges we faced in several end markets that we had been talking about for some time. and the declines in those end markets, china, automotive, electronics, you know, accelerated as we went through member and march while we took actions to get ahead of the challenges, we didn't do enough to offset it. and our execution led to weak productivity is a way we termed it so we're taking action. >> okay. so give me a sense you said you didn't respond aggressively enough to what you were seeing. so you were behind the curve you also said you know how to get out of these situations. >> this is a playbook we know how to do. when markets soften and macro softens, you know, we lean into it we see it. and our end markets. we see it in our channel as they react it to. we know how to take costs down

with that. and we're behind the curve in what we're doing to take costs down in q 1. the actions we're taking now get us ahead of the curve. >> what do you say to people after the 30 point plunge? they look at you as having a core portfolio position that is defense whiff growth it doesn't seem that the stock can be all that defensive if they could lose 30 points in a day. >> part of our defensive position has been our ability to take actions that keep us in pace with the markets. and that is what we have to get around our portfolio if you're talking about our portfolio and how it's positioned, in this case we had three key end markets. they're really attractive parts of our portfolio long term but challenge near term. you have to execute to protect those attractive markets near term and we have to drive the 3m value model across the broader portfolio. >> when i was a little boy, my

father would come home and say look at this i can go sell this, great ribbon products the 3m i know from a little boy is the company that invents and inowe vat innovates. is there things in the pipeline that you're going to feed innovation >> absolutely. the 3m model is strong and what we're doing in our portfolio to drive-in ovation and our first priority is driving new innovation that leads to growth and premium returns for 3m and our shareholders we have a great portfolio for that we're taking an active management of our portfolio which means prioritizing where we get the greatest return on our organic growth we have some priority growth programs that are very exciting and really gaining good traction >> are there some elements of this great diversified company that maybe aren't working? you see what darius did. he gets dave cody's hand and gets rid of a bunch of companies

and makes it stronger. we know that greg hayes does that 3m is always equal if not better of you've been at 3m for a long time are there radical actions you need to take >> we're an active portfolio manager. it starts with where we target our organic growth but we also look to make acquisition that's will compliment what we do. the things that we differentiate ourselves with that's what we call the value model. our technology, manufacturing, vertically integrated manufacturing capabilities and we'll prioritize those opportunities. at the same time, we look continuously aprcross the entire portfolio up to and including divestitures like we did with our communication markets division in 2018 >> okay. so november analyst meeting. pretty bullish january, pretty bullish. how can things have gotten this bad this fast? are there other underpinnings that you have discovered that make you think -- you were regarded as a thoughtful excellent manager. make you think that maybe the hand wasn't as good that you got when you started

>> if you look at back to q 1, it really was those three end markets. 30% of our automotive products in china and that challenge hit us in top line and bottom line as we went through the quarter oem providers. wrong part of the car. >> as we came through the quarter, automotive and electronics in china saw similar dynamics the end market declined. this is the oem demand the channel reacted. and so we're serving those customers through channel. they reacted and took out inventory. so that was a head wind. and that settles out quickly >> that's important. i'm trying to figure out whether to tell people, look, it's got a

good yield it has a good balance sheet. maybe this the level you get involved or maybe you have to wait >> yeah. you know, it will depend on end market demand. >> okay. >> so we lead into challenges like this. we lead out of it. that playbook that we know how to execute and getting ahead of the curve. we lead out of this and the end markets recover. the inventory, it works the other way too. they have to restock as they go forward. >> when i went through the annual, i get all the way down to the end page 100. there is a note 16 it talks about this p fast problems ground water contamination problem. you pay $850 million to set well minnesota ag and the annual notes it says there is litigation, alabama, michigan, ohio, delaware, maine, new jersey that's a lot of litigation can it be ring fenced? should viewers who own 3m chf theof which there are mae concerned? >> the reserve we took was around what the litigation we

face in our manufacturing and disposal of chem striz thistry phased out of a deck add ago and we now have enough visibility on negotiations around manufacturing sites, three in the u.s. and two in europe that we could estimate. it is estimable and probable what we faced in the direct litigation on those manufacturing facilities so we have taken reserve against that and that -- we're careful to say that doesn't include the product liability that we face with p fast products. >> one last question you're the steward of great american company this was a very tough quarter. i'm thrilled you came here but i wonder whether the problems maybe take a year and that's okay. because they may be deeper than you think. people are rewarded in 2019 if they stick with micron >> will with, the aggressive

actions we're taking to get ahead of the curve doll that in many ways in what we're doing in our operational costs and realigning our manufacturing to the demand that we see in the end markets, we get on top of that quickly >> don't need a breakup. don't need to stick with your knitting and you'll come through. >> that's execution. our team knows how to respond. i was with our team last week. i went out with all the employees. i went out with our leadership team they have great sense of urgency. they're jumping on it. they understand what they have to do. we'll get ahead of this as we go through the quarter and into the rest of the year some of the restructuring will take longer to play out. >> all right fair enough. i really appreciate you coming i know it was a very tough week for you and your shareholders. i think it's terrific you came >> jim, thank you. we'll lead out of it. >> okay. that is michael roman, ceo of 3m of course, make your own judgements "mad money" back after the break. ♪

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over the weekend they roerted something and sounded -- hedge funds are shorting the risk at a rate never seen before when it comes to the cbo volatility index, the ratio

shorts the longs is back at the highs. that means lots of money manager are betting against the fear gauge. why is that frightening? remember the beginning of last year, the made big bets. it caused a brutal selloff in february when the anti-vix bets went wrong. it went against them they needed to be unwound and ended up being forced to sell large slugs of stock to raise capital. it was a bloodbath so how worried should we be here oddly, maybe not too worried at all. which it came with our resident volatility index expert mark sa bastian. he is a technician that is founder of optionpit.com and he explained that the vix fears, they're overblown in fact, he is betting against the short term vix futures in his case via the vxxb, they're reading way too much into the bloomberg story it is something that worried me all weekend.

so let's check the thesis. the volatility index retreated to a low level, 13 and change. the s&p 500 was higher over the past four months, record high today. the vex worked its way lower that is what is supposed to happen but looking at this bloomberg headline, you might think the people shorting the vix are pushing their luck hey, what is the difference between luck and a wheelbarrow only one can push it however, sa bastian says it is more complicated than that we're not seeing the reckless betting against the vix that imperilled the whole stock nash market in 2018 the traders are not selling the actual volatility index. they're selling the vix futures. very different and vix futures tend to trade at a premium to the volatility index itself check out this chart that shows the vix futures going out to january of 2020 that is kind of interesting chart. it tells you a lot of what is about to happen. it plotted against where the volatility index is trading. for example, the may vix futures

currently about 1345 with the actual vix at 1305. that is the disparity. that is a premium spread that is okay the futures contract expires may 22nd one of the three things has to happen the vix itself can value at 1435 okay and because the vix is calculated based on the price of options and the s&p 500, we need to see a big inkreet crease in u buying if the stock stays strong or stable, the vix futures fall to where vix itself is trading over the next three weeks or there could be a third option they meet in the middle with the volatility index rally a bit and futures pulling back a bit sa bastian thinks that the most likely scenario. investors get more cautious. you would certainly state that after what happened with alphabet tonight take a look at these pair of charts showing the volatility index on top and the action in the may vix future i know it's complex. but this is really important if we did this february of last year, would have made us or saved us a lot of money. the may future has fallen from

17.2% down to 14 okay the vix itself is pulled back from 1660 to 1213. sebastian points out that futures contract has fallen more slowly which is how the things normally work. you expect them that make futures gradually decay. that's why he's not sweating the fact that there are a lot more people trying to short the vix futures than people trying to go long despite all the hammering about early 2018, doesn't mean stocks are about to implode this time the futures are not the only way to play the volatility index the big breakdown last year happened because tons of money managers bought various exchange traded products and options on those that were extremely short the vix futures. the svxy before the big blowup, the futures were net short by 700,000 contracts. so what's actually going on? let's go back to the first chart showing the price of vix futures

through the rest of the year you'll notice that while there is a steep spread between the volatility index and may and june and july, after that the curve becomes extremely flat december is 16.93. what does that mean? it's a sign there say lack of long term hedging using vix futures. there is not that much demand from them. does that mean we're in good shape? not necessarily. let's take a gander at his favorite pair of charts, the s&p 500 versus volatility index. since the middle of april, the s&p rallied. obvious, right so has the vix if you're engaged in the stock market trade in the same direction up and up, that often means we are due for a pullback. that's exactly what happened when we got hit in march, okay we had this go up and this go up it's very similar pattern. in other words, this actually makes sebastian want to prepare for a selloff.

he said it's going to be a garden variety selloff there is also the vix volatility index. that measures the volatility index, volatility of the index itself even if you can remember that. you look at the chart of the s&p 500, you can see the latter has been peppier, sebastian says that's not a great sign either he says the market may be a breather however, it's possible the vix is rising precisely because the lack of long term hedgers that we saw in the futures chart. neighbor is all a tale told by an idiot but put it together, while if the gauge is signalling that the rally is getting tired, sebastian doesn't see any signs of imminent doom which is different from the narrative i heard all weekend. bottom line, when you see a headline that says hedge funds are shorting the vix at a rate never seen before, it's he's why i to freak out as i did. everybody is getting way too complaisant like they did at the end of last year

that suggests something else is going on here. he thinks you might want to be prepared for a modest pull back, he doesn't see anything super worrysome in the vix action which did make me feel better since this is something that occupied a lot of my weekend "mad money" is back after the break.

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it is time for the lightning round. >> lightning round is over are you ready? start with david in illinois david? >> big boo-yah, jim from justice, illinois. >> wow what's up? >> hey, jim. i've been watching you a long time maybe even the first time when you were with mark hanes >> wow yeah >> even before kudlow and cramer. >> just flop out our answer. buy telephone? >> no. entergy is terrific. i like that company very much. dennis in michigan dennis dennis, you're up.

oh, rick >> hey, jim. >> thank you for taking my call. >> of course >> awesome you're the best. just had to say that i have my son here he is charlie. he is 6. he has a question for you >> okay. >> boo-yah we watch your show every day i would like to be on. we want to learn about nbc oliver >> some things that happen in a day are very hard and then you get a call like that and the day is not so hard after all thank you. novacure is a good company i don't understand why it's independent. i think that one of these big drug companies or device companies should buy it. it's got great technology. and the technology works >> dennis in michigan, dennis? >> hey, jim. thank you for taking my call >> you bet >> i appreciate it mpc.

>> inexpensive we have a big upgrade from the others i think that this is my favorite mike in florida. mike, mike, mike >> hey, ticker zixi. >> yeah. e-mail encryption, we believe in e-mail encryption. it's a great theory. we're very pro cybersecurity in every way, shape and form. how about we go to jeff in florida? >> hey, boo-yah to jim how you zmog. >> all righhow are you? >> go eagles >> question. i have a prty, party city. should i sell this thing >> yeah. it's your party. you have to cry if you want. to i think you should sell that stock. i don't see anything redeeming it ali in california? >> hey my question is -- >> keep trying to pull the trigger. it never comes in. you have to hope, listen, that's a great company. let's go to mart anyone california martin >> hey, jim.

boo-yah. >> boo-yah to you. >> i just want to say young 20-year-old investor, it helped me so much over the past year. so thank you so much >> who says young people don't invest or just want to check their brains at the door what's going on? >> my question is about hp with all the volatility in the cannabis sector, aurora is neutral fog the past month maybe it's not going from here do you see a good future for the company. >> stuck in neutral. i want canopy. so i -- hey, listen. i pulled out with bruce again this weekend you know what i i think canopy is still best in show. i'm not waivering. they got that wore chest and using it correctly are we done or can we take more? we would like to take one more we're going to go to gary in virginia >> hey, jim. what's going on? good to talk to you again. >> levi's. >> okay, there is a big short squeeze in pinterest and

everyone one of the new ipo is being squeezed and that, ladies and gentlemen, is the conclusion of the lightning round >> the lightning round is sponsored by td ameritrade ♪ ♪♪ ♪♪ ♪♪

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and reaches everywhere. this is beyond wifi. this is xfi. managed care stocks are disastrous recently. but does it make sense to keep selling them right now a lot of people are wondering if maybe, just maybe the group is bottoming the stocks have been hammered. so many democrats running for president want to implement single payer now that joe biden is in the race, we get a more business friendly nominee the managed care is going lower, history tells me it might not be you can figure out the potential down side and also recognize the worst cases actually still highly unlikely in this environment. why don't we use the stock of

united health group. it's the best example of what is happening here and we'll let that be our guide. we know many of the democratic candidates have been campaigning on what is known as medicare for all. and even though dhoent necessarily agree on what that means, a combination of medicare for all would be very different from a bernie sanders care for all. the fact is they're talking about a single payer system. i'm not making a political argument i don't do politics. our health care system is a mess there are good arguments for single payer and if medicare for all is implemented, it would be devastating. wall street knows it look at the time line here the democratic candidates started formally entering the race in december thats when people started taking this single payer proposal thing seriously. before then unhc was going higher once a considerable number of democrats started talking about medicare for all the time that fed chief jay powell decided to break the stock market, they plunged to 231 many a matter of weeks. while rebound let alone with the rest of market earlier this year, climbing back to 271, it's

come back down let's call it a dog. already, we know that bernie sanders wants medicare forever all. that is the platform in 2016 but this time warren, booker, harris, gillibrand, castro, all also support some version of this sandered rolled ow the single payer proposal and it plunged to $208 it's after they reported fantastic numbers. why were people so freaked out guess what the ceo's empassioned defensive comments about the current health care system on the conference call did it before this moment unh was flying high thanks to the raise number longer. he said the wholesale disruption of american health care being discussed in some of the proposals would surely jeopardize the relationship people have with doctors, destabilize the nation's health system and limit the ability of clinicians to practice medicine at their best. i get why he felt the need to go defensive. but as shoir holders didn't juan

to hear that this was a possibility so as he talked, the stock kept plummeting and going lower and would continue to press the case on the call telling us the path forward is to achieve universal coverage and it can be substantially reached to existing public and private platforms. meaningful progress in health care lives national and state leaders continuing to work collaboratively with the innovative and proven private sector solutions he wants a tweaked version of the status quo status quo didn't do good for unh. so that's what's at stake here medicare for all versus a problematic system that allowed unh, anthem, humana and now cigna and aetna to make fortunes those stocks opened. i think wall street's fears are more to watch than that they're worried about the more left wing democratic candidates taking the white house in a wave election it gives them the house and senate remember when happened when obamacare -- when obama got a super majority, we got obamacare. even though it ended up being a

huge give away to the managed care companies, the stocks cut in half, cut in half between the time ebo obama became the front-runner and the election the whole market was obliterated. health care stocks should have been insulated ghaens weakness it's important to point out that his landslide victim i have what created the bottom in health care stocks, not the introduction of the affordable care act not the passage. every stock rallied considerably with unh doubling. again, this is part of a broader rebound that this time health care outperformed. the whole period of the affordable care act through the passage was incredibly benign one for the group. of course, at fordable care act was written by insurance lobbyists. so about it time the bill was introduced managed care companies knew they had little to fear. what are the lessons here? first of all, if democrats win in a landslide last year, they can really pass single payer, it's going to be brutal for anyone in the health care insurance business if becomes eligible, why buy

policy even if obama wanted to pass single payer, he didn't want to pass it. he could have never gotten it through congress he could add a public option of obamacare. and unlike 2008 there is no assurance that democrats will win the white house and the senate, i mean the house, i mean come on. they need to run the table that's going to be hard. then they need to convince their own party to enact medicare for all which is going to be difficult. even the democratic leadership in congress is against it. and if they end up getting a single republican vote, this whole plan is dead in the water. what does it mean for unh? if we're following the 2008 playbook where the stock lost half value based on the perception that obamacare is harmful for the business, this stock worst case goes to $145 f they pull back to post earnings low, you know what i'd say start buying then 10% below it bottoms. i think that will turn out to be a fantastic investment bernie handers and take the white house and the biggest

landslide since reagan crushed mondale. i'm betting managed care stocks end up doing just fine even as they could have more down side as everyone else works this out for themselves i say stop the panic these stocks may be closer to a bottom than wall street thinks stick with cramer. that's why we built the nation's largest gig-speed network along with complete reliability. then went beyond. beyond clumsy dials-in's and pins. to one-touch conference calls. beyond traditional tv. to tv on any device. beyond low-res surveillance video. to crystal clear hd video monitoring from anywhere. gig-fueled apps that exceed expectations. comcast business. beyond fast.

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