tv Mad Money CNBC September 27, 2019 6:00pm-7:00pm EDT
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smh and kpien november put spreads. >> that's does it for "options action." see us back here next friday at 5:30 meantime don't go anywhere "mad money" starts right now have a great weekend 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 isn't just to entertain but to educate and teach you so call me at 1-800-743-cnbc. or tweet me @jimcramer. okay it's finally happening on an ugly day where the dow lost 71 points, the s&p plunged 0.53% and nasdaq plummeted
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1.13%. wowza. they jeweled that nasdaq they reacting to a glut of ipos. on the investment public's back. i take no joy in this but i told you so all year i predicted the ipo cycle would end with a whimper and now it's here. busted deals like peloton. on the heels of smile direct and lyft and uber. >> boo >> they're booing, becoming the norm there is a big reason why it keeps getting hammered especially the turbocharged growth stocks. did you see them today kind of to the point the president i hope follows through to block more chinese iphonipos >> no, no, aagh! >> i don't chatter about limitations by the president causing the market to get hit
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because anything that's not flat out suggesting compromise indicates that we're much furthe further away from a trade deal than the bull has hoped. as someone who wants the chinese to play fair, i think a ban on chinese ipos would be a blessing it's not what's in the cards, i can tell turns out talk is really about limiting american investment in chinese companies. and it's not as sweeping or as negative as the market seems to believe. look, the white house isn't happy with american pension plans especially federal pension plans having to add lots more chinese exposure which is what's recommended right now by an outfit called msci, the keeper of the international weightings. the administration doesn't want chinese listings that lack the same kind of transparency as american companies and it would prefer investors not to buy the shares of companies with opaque financials
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that mal would no doubt like to me i think it would be simpler to ban new chinese ipos altogether but that's not in the cards despite the fact that you may have heard that this afternoon. it's just not true so candidly if you sold stocks on those rumors in retrospect isnerivel -- ill-advised. a continued deluge of new american style deals next week when i look at the ipo calendar ahead of us, it makes me sick. i mean we've got five money losing bioteches on death knell. the money losing merchandise that's been pumped out of us lately don't you feel like that when you're in this ipo moment, you're like anndy dufresne goin
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through that pipe "shawshank." i have a better movie imagery. what this is like indiana jones and the temple of doom when they reach in and pull your heart out. kind of. all right, the clothes rack that is peloton was the straw that broke the ipo camel's back we knew it had been closed for money losing companies but underwriters didn't seem to mind that may be changing only encouraging sign of this hideous moment was when an outfit called endeavor where my agent works pulled its ipo they got horse sense how and why did they do it simple unlike most of the junk that is being pumped out now endeavor actually makes a lot of money so they didn't need any of this stuff. they were hoping to use their stock as currency to buy other companies. when they saw the state of ipo market, to hell with it. they didn't want to be lumped in with the pelotons of the world
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the company brought in $500 million of earnings before interest, taxes and depreciation last year and don't have any urgent need to raise capital i'm glad they chose not to swim in the ipo canal which for the record was a very odd blue color the other day. interesting. blue but, you know, kind of blue like like a crayon like cerulean. from this point on you can't afford to own any of the newly minted money losing ipos because what you'll do is lose money you'll be living here. >> the house of pain >> an i know there may be potential for incredible growth but we're in the wrong stage for the business cycle the only ones i want where raising money is a secondary concern. in most they're desperate to do fund-raising stay away from them. can you imagine if we went public and discover lad we found out. can you imagine?
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what a travesty. government, would you at least try to protect us. with that in mind what can we expect next week on monday we hear from four industries and that's an rvmaker. there was a time when millennials loved camping and it looked like it had be a big winner but labor costs went up and the customer interest went down it stood at 161. now at 49. i don't want to be too tough on manage not unique to thor an upside surprise, it'll be in this quarter interest rates have gone down. for now though i think it's too risky. thor needs to deliver one quarter, please before you have my permission to circle back if it's going to 60 and get it together you have plenty of time tuesday. one of my absolute favorite, mccormick. the spice and hot sauce company and this is the best by the way. this particular version. its stock was hammered if it keeps falling monday, you
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know what, you'll get a good opportunity to buy it. it's one of the few that has real growth. next up, the market will -- will this market embrace high-flying growth stocks again? the pendulum has swung too far right now we're in the pit and need some sign posts to figure out when things are swung too far. which brings me to stitch fix. it's the online subscription service that sends the shipments of apparel and shoe, think of it as a service business. stitch fix reports after the close tuesday and while it's profitable the multiple is absurd of course, expensive valuations never seem to matter to the stock until june since then it's been juul'd going from 32-18 despite there being no real negative news. that's what happens when you go out of style watch how it behaves after the quarter. could be crucial to give you a
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sign this craziness toward high growth is over how about wednesday morning? then we get results from lennar. it's no wonder that lennar is up for the year shocker. some of this stock gets hit on the quarter, after the close, we'll find out if bed bath and beyond can pull out of its extended multiyear tailspin. the active investors are now in control. lucky. but this stock has been a nightmare for ages for anyone who has touched it except if you're target. because they've been a fabulous share donor to any target that's nearby that said bed-in-a-box, bath looks like it's sold out let's hear what they have to say before you pick it maybe what i'll do use it for off the charts. let me noodle. thursday we get results from three terrific companies with stocks that have been performing well ever since the rotation to the safety plays got rolling over the summer. i'm talking about pepsico, constellation brands, in the
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morning and costco after the close. i think pepsico is exactly what works in this dicey environment. i'm looking for 5% organic growth and recognition that i'm sorry i've been drinking so much diet mountain dew lately constellation may help us understand it's cannabis strategy not to mention, please have something to say about spiked seltzer, the hottest part of the alcohol market i downed a couple thinking they were club soda wow. i was flying all right, how about costco? this stock has been up for ages which is why it is the one to watch, walmart, amazon, target and home depot which will make an atf and give me nothing maybe that's not enough punishment one more leg down before it's time to buy. maybe down time and get to buy costco after it has come down. what a great pickup. costco and pepsico are two
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antidotes to the market. labor department's payroll report on friday employment has been strong, but now everyone i know is acting like the good times stopped rolling. i don't think that's the case. i expect another good number which may make it difficult for the fed to give us another rate cut. what would be best for the stock market we need a labor report that's not too hot, not too cold. that way the fed can cut because the data is terrible here's the bottom line i know it's been rough but last week this market that was really overbought still and when you're overbought you tend to get hit with sell-offs what i told you would happen is happening. especially when we're being flooded with shoddy ipo merchandise which by the way they should stick with caveat emptor these aren't vacuum cleaners i think we need more downside but after waiting for the market to come down some segments are getting tempted but not the
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money losing clothes hanging pelotons of the bunch. dimitri in new york. >> caller: yes, sir. how are you, mr. cramer? >> couldn't be better. thank you for asking what's going on? >> caller: i just got to tell you i love your passion for the stock market more importantly, i love that you don't relay the obvious. this is a great company, algn, the ticker, doing well, it's profitable what should i do here because the market reacted to a low guidance for q3 and i'm not sure why. >> right just checking my new investment book since we're also fixated. and i got to tell you i think align is dicey here. smile direct doing so badly. cut your losses. as mal said align technology is too high according to marxism and leninism
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sorry to break it to you we need more downside before we get positive is it time to consider pharmaceutical stocks that are from overseas? i'm giving it my take then, booy man, my favorite foodsa hot stock? i'm buying after arnings is the company leading high prescription drug choices. it's coming after you. i'm talking to ceo about its foray into telemedicine and ready clinics like hospitals and stuff. stay with cramer >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question, tweet cramer, #madtweets send jim an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something, head to
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the domestic pharma and biotech stock, you know what, have been dead money, right? investors are paralyzed by fears of lawsuits. oh, tell me about it the potential for new legislation that might crack down on drug pricing in fact, it's been going on even longer than that over the past four years the whole group is measured by the ibb, i-share, nasdaq, etf and the invesco dynamics it's been hammered biotech down 4%. pharma down 19%. the s&p 500 is up 53% over the same period. you know, i run a charitable trust, actions alert plus.com and we try to be diverse every time we try to did pharma it's been terrible what should you do completely abandon the drug stocks i mean like medical devicemakers are doing better no, no you don't need to give up on the whole complex. but you do need to get more
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selective and creative with these stocks for example, last friday i told you to keep an eye on abbvie because of their process of acquiring allergan s of up 3% thanks to the yougrade from citi and it was a good piece now another way that approach the group mulling over them and mulling over i dot to find a way to get people pharma exposure with less risk if the domestic drug stocks aren't working how about this, how about the foreign drug stocks as it turns out many are performing a lot better than its domestic peers the three that jump out o. astrazeneca, glass co-smithkline and novartis i think some of that might be because they have moderate u.s. exposure than their counterparts medicare for all or price controls would hurt them a little less. i'm not saying they have no exposure but i'm not saying they have more exposure it's just a little bert. when it comes to these three, they've each got something going
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for them right now that allows them to throw off the gravitational pull of the sector and allows them to rally let's start with astrazeneca i haven't thought about it for years because it was such a dog. this is a big british pharma company. if you're worried about developments in the united states astrazeneca gets less than 33% of its sales from here. that's lower than most american drug companies and if elizabeth warren winds in a landslide allowing her to implement a single payer health care system a lot are betting european companies like this one astrazeneca will have more expertise at dealing with it than american rivals that might be a stretch. all the big pharma companies are global operators something like them has less exposure to america and more experience navigating health care systems earlier jpmorgan hosted a call with astrazeneca's ceo it goes like this. they've had a bunch of positive
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clinical trial results that will allow them to launch potentially huge new products or ex-papd existing products into the new markets. you have to forgive me i'm about to go into the world of pharma mumbo jumbo. they've got targirs for nonsmall cell lung cancer and negotiating rates with china and in all goes well it could be lucrative china has horrendous numbers of people with this disease imfinzee it's an antibody drug used for lung cancer and expecting label expansion. right now it's only approved for use after chemo and one for ovarian cancer that could work for prostate cancer. it's got farziga which helps patients with type 2 diabetes being studied for heart failure and chronic kidney disease some lineup. they've got calquens
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a lymphoma treatment and recently received breakthrough therapy designation from the fda and other terrific data. on top of that astrazeneca has late stage pipelines like one for people with anemia caused by chronic kidney disease or one for lupus and other anti-immune conditions sales for these incredible drugs ramp they've gotten aggressive while keeping cots in line and management sees margins go higher after years those moves are finally paying off hence why the stock is up 19% year to date i think astrazeneca is a touch too expensive. eight multiple now 22.5 but 3.1% dividend yield which makes the pill easier to swallow. i remember meeting with management years ago and they kept telling me they would have all these great cancer drugs but takes so long to develop them. guess what, they're here next glass cxosmithkline
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since we sat down with their ceo at the beginning of the year at the jpmorgan health care conference she's been divesting their commodity advertis commoditized businesses. they bought a biotech focus on cancer for appoint $1 billion and agreed to spin off their consumer products division and merge with pfizer. at the moment they're stuck in a transition year as it works to complete the major deals or at least that's how it looked a few months ago then they reported better than expected quarter in late july. dramatically raising its guidance and they have at least five high-profile drugs in phase three trials that could become blockbusters over the next few years. put it all together and i'm even more bullish about glaxosmithkline than i was in january when i was blown away, holy cow, why am i overlooking it it has a lot going for it and with the stock selling for less
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than 14 times earnings i'm calling it a steal 4. 8% yield we talk about the club novartis, the gigantic swiss drugmaker with only 34% exposure to the american market. it is trying to transform itself under the leadership of its ceo, the company has shed its consumer businesses, even spinning off its over-the-counter eye care business as we told you we liked and have been snapping up smaller companies pioneering new technologies like a gene therapy play they bought for nearly $9 billion. 8% sales growth and quarter earnings per share up 20%. thanks to the strength in novartis' psoriasis, heart failure and oncology franchises, on top of that they had big product launches coming up
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including a major breast cancer treatment. now, there is one fly in the ointment i think holding the stock back last month the fda rebuked novartis for failing to disclose that their newly acquired avexis was manipulating data. they have denied all wrongdoing and fired anyone involved and it sures seem like this gene therapy is still very much on track to be approved but this was still an ugly headline while i don't like it it's not a deal breaker for me. it might be for you. i trust them to do the right thing. you may not. i don't know we have to go with our guts. you can buy it at a discount and stock trading at 15 times earnings and we picked up some earlier this month for the trust and follow along if you're worried about the lawsuit, we're follow it closing by joining the actions alert plus.com club. here's the bottom line if you want big pharma exposure with fewer headaches related to
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u.s. politics buy a well-run foreign drug company these are all three are terrific astrazeneca, glaxosmithkline and novart novartis all three buys stick with cramer. plants capture co2. what if other kinds of plants captured it too? if these industrial plants had technology that captured carbon like trees
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at the end of the tunnel as of 12pm today, i am debt free ♪ not owing anyone anything is the best feeling in the world, i cannot stop smiling about it ♪ how do you know when a company that's been struggling has finally gotten its groove back that's the question we need to ask about conagra brands, cag. that's the big package foodmaker that you know as chef boyardee, hebrew national, behrtoli and a host of other brands they completed the acquisition of pinnacle foods. big portfolio of frozen foods, especially vegetables but
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management slashed their forecast two months later explaining it was in worse shape than they thought. while they told us these problems were fixable they also explained that it might trach more time to iron things out that's really the last thing you want to hear two months after it closes on a major acquisition. making this announcement last december when the whole market was melting down, let's just say that wasn't the best timing and as can you see, the stock got just obliterated very disappointing day i really liked these guys. once 2019 rolled around they were able to rebound for 21 at the end of last year to $31 at its highs in april since then the stock stalled out. even when many package food names got a new lease on life over the summer it kept trading sideways in a pretty tight range not doing anything much. the high 20s and low 30s range in part because the company delivered some disappointing numbers in june. which brings us to yesterday morning. when the company reported again,
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oh, this time the pressure was on a lot of people were betting on a major letdown. others thought conagra would finally get its act together and hit a home run you know what we got, a mixed quarter. it was better than feared. allowing the stock to rally 3.7% it wasn't a home run there was more good news than bad. i found the results very encouraging. and when you consider that conagra gave up most of yesterday's gains today you know what, that makes me think that we have a real opportunity next week because this number was better than people realized. now, i've been a fan of conagra for awhile now even though the stock hasn't worked out as an investment, at least not since the pinnacle deal for example, in april the company held a bullish investor day where they had long-term targets forecast casting a nice uptick in 2020 to 2022 and significant margin expansion you always want to see that. they can't grow like a tech
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company. on april 15th, we spoke to sean conley, conagra's ceo and he told a pretty darned good story. >> we had a great portfolio. we've got the right people, the right culture, the right processes and the right capabilities to continue growth and continue expanding our margins. we have built significant innovation capability over the last four years. you can see a lot here and it's really exciting. >> as for the problems of pin ya cal he ainsured us they were turning things around unleashing a deluge of innovation to turn all those frozen food brands around but then they reported the numbers were disappointing to say the least. on top of that management trimmed their long-term earnings forecast, 2 cents per share so even though the actual guidance was encouraging wall street's response was negative. once again, the darn thing, it fell 12% in a single day while it bounced back from its sell-off quickly thanks to rotation of soft goods stocks,
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think it would have rally better what was their explanation they said they'd seen strong trends in frozen foods and snacks in other words, their plan was working. boy, did these millennials love the frozen foods just incredible. conagra has a good handle on that but as connelly explained much of our progress was overshadowed by tran sitory events and weak performance in our arden mills joint venture. now, if his assessment was right we'd see evidence in the next quarter and saw that in the quarter that was just reported again, though, mixed bag when it's a mixed bag i won't fool around. it's a bag but it's a mix bag. on the one hand the revenue number was just plain disappointing coming in at
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2.39 billion wall street was looking for 2.48 billion so that was a shortfall. organic sales down 1.7% year over year. not good while refrigerated and frozen foods were strong grocery and snacks took a big hit thanks to tough competition for hunts and chef boyardee. meanwhile conagra's food service international down about 3%. i got to be honest, those were ugly numbers but thankfully there's better news once you head further down the income statement. conagra earned 43 cents a share when wall street was only looking for 38 cents operating incomeebita and net income all better than expected so even though they were weaker than expected earnings were fantastic. how did they pull that off sean was telling the truth when he said he had the problems well in hand. it turns out they're ahead of schedule when it comes to sipper byes from the pinnacle deal.
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everything that seemed to go off the rails is back on track and could deliver a terrific earnings beat because they took the biggest worry off the table. finally making the acquisition work and paying off in a major way. if you look at their approach i think it's encouraging as he explained they're shooting for value over volume. meaning that not all sales are created equal. some are a lot more equal than others that means eliminating weaker product lines to focus on newer ones with more potential this is how they turned itself around a few years ago before pinnacle and connelly says they're seeing the same pattern at the legacy pinnacle business. this is what he knows what to do while they have fewer products and less shelf space, they do fly off the shelves. wow. that is some powerful popcorn. this is an approach that worked again and it will -- it worked before it will work -- ooh, i'm sorry three key brands for pinnacle
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with wishbone dressings, bird's eye frozen foods, whatever and duncan heinz i criticized them and said no one has made a duncan hines cake since my mom in 1963 he says it's back. connelly predicts it will improve substantially in the second half of the fiscal year, starting one quarter from now. despite the revenue shortfall there was a lot to like plus it didn't hurt that it changed guidance through 2022. management believes shortfall was temporary and they can turn things around over the next few quarters i'm a buyer. the pods from this quarter were more important than the negatives. when you consider it sells for 13 times earnings that seems cheap to me and have -- this is a brand i use all over the place. 2.8% yield i think it's worth buying especially after today's pullback soy here's the bottom line, okay
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when is a mixed quarter not a mixed quarter, when the company in question takes the biggest worry off the table and delivers major progress on the most important part of the story. that's what conagra did yesterday. the comeback on their pinnacle business is reminding what dollar tree did earlier this year i bet conagra can deliver the same kind of turnaround. these guys are too seasoned to not get it right yeah, man, they got powerful popcorn. jordan in south dakota, jordan >> caller: hey, jim, thanks for taking my call. >> of course >> caller: i'm looking to buy archer daniels midland i'm looking at them because they have a good dividend >> yeah. >> caller: i wonder if you think since they don't have pricing power, that this could compress their margins. >> i think they don't have that, right. the margins will be under pressure and i think the company has been a serial underperformer for many years and i am just
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not, you know, look, do they have decent dividend, 3.4. i can get that from a lot of food companies i'd rather own conagra even though they do have -- some of their popcorn feels like a brick. brian in texas brian. >> caller: boo-yah, jim. >> boo-yah, brian. >> caller: wanted to get your thoughts on brinker. eat as a staple dividend stock and how it stacked up to its casual dining peers. >> casual dining peers are now that darden had a quarter that was considered to be subpar i think that's come down in price to be a better bargain better growth in brinker brinker is fine. last quarter wasn't that bad but do prefer darden now that the stock has come down. okay, the pressure was on conagra this last quarter. you know what, i think it's getting its groove back. much more "mad money" ahead. good rx is becoming more than a
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coupon site. how it's changing how you visit the clinic edge in investing, i'm buying the odds on favorite to start a new position in the dow and all your calls, rapid-fire in tonight's edition of "the lightning round. stick with cramer. it was sophie's big day. by the way, she's the next mozart. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what. it's unbelievable what you can do in the prius. toyota let's go places.
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you know earlier tonight i talked about how drug pricing issues has been weighing on u.s.-based pharma companies but obviously this is only become a problem because many drugs are simply too darned expensive. politicians talk about this issue right now there are real companies that are trying to solve it or at least do harm reduction. take good rx, the company that's number six on cnbc's disrupter 50 list, they do something brilliant and simple it lets you compare, shop medication as it turns out there's enormous variation on what pharmacies charge and they can help you find the best deals. they launched a new service called good rx care that does the same thing for medical services one of the biggest problems with health care is there's no transparency which allows hospitals to price gouge you good rx is trying to solve it.
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let's talk to the co-founder and co-ceo of good rx to learn more about the new service and what it means welcome back to "mad money." >> thanks for having me again, jim. >> so, doug, let's say i go to a hospital, i would like the system to not be ripped off. i don't want to be ripped off but if i'm blind to it why do i need this service because i don't feel the pain. >> yeah, you know, one of the amazing things about american health care these days there are often huge gaps in care. there could be up to a 30-day wait time for someone to get to the doctor and oftentimes in the night or weekend you're looking for basic medical services one thing we heard from users is they just wish they could get to a doctor at an affordable and convenient way and why wanted to poi a service that was easy to use so that anyone could use it with or without insurance. >> tell you within my neighborhood in brooklyn after the big hospital closed because the usual money considerations, i've got -- we just literally counted them -- ten ready
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clinics and every one charges a different price. would i be helped by good rx to find out which guy is the best guy because the variations are extraordinary. >> yeah, i mean, you hit the nail on the head we are a marketplace and with good rx care we are a marketplace of prices for medical care and offering it through good rx as well and have more than a dozen conditions that are 20 bucks and should be a price anyone could afford and provide discounts so a consumer can get low cost generic medications. >> why isn't everybody doing this >> you know, there's lots of folks looking at various forms of telemedicine whether it be video telemedicine or elective things we wanted to hit basic services all americans need we wanted to be able to come up with a product that was so easy for a consumer to use, if you have two jobs or you have kids and just can't get out to the doctor's appointment or can't
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wait 30 days in a waiting room we wanted to just have an easy solution that anyone could use to get quick care of the most pressing things that affect millions and millions of americans so they can stay healthy and out of the hospital. >> what do i do? download an app and prints out a coupon that is the process? i want everyone to do this after this interview >> it's really easy. go to good rx we'll show you all the services we have, just $20 and we also have an app, good rx has an app and hey doctor has an app. if you go to good rx care, you can very easily find all these services and within a very short period of time have a visit from a board certified physician and if a prescription is necessary we'll literally send you a prescription to a pharmacy near you. >> i'm so pro you candidly, in 2017 i spent $5,000 getting a particular drug that was actually should have been much less but that's what it cost i used you in 2018 and i looked
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at my bill before i came in and i paid $1200 the only difference was i used good rx which is why i said i can't believe others don't i frankly didn't believe it, doug i didn't believe you could do it it seems almost like -- it's like fantasy land. how do you do it >> yeah, i mean sadly, you know, insurance is not what it used to be in this country even people with insurance are often paying way too much for their prescriptions. i saw a report the average american family is paying $20,000. they and/or their employer to get basic health care coverage and deductibles and limitations on insurance so we basically went out to the pharmacies and said can we do better pharmacies don't want to charge an extraordinary amount but have limitations so they can't actually discount themselves as we talked about last time if you work with a pharmacy and use a service like good rx you can present coupons and get prices far lower than insurance. >> everybody -- everyone accepts my good rx coupons in new york
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but are there areas where people say, i'm sorry, i don't take it? >> we work in virtually every pharmacy in america. all the major chains and every pharmacy you've heard of download the app and show the coupon or print it out online. bring it to the pharmacy and get that price very simple. >> i want everyone -- look, i'm asking people to save the system and save themselves money by listening to what doug says at good rx. again, i thought it was too good to be tu and then i saved $3800. that's real money, man thank you so much to doug. great talking to you good to see you, sir >> thank you so much. guys, it's real. i mean, it's a private company but you got to do what he said i didn't believe it. i didn't believe it. and then i saved it and it's incredible "mad money" is back after the break.
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man: can i find an investment firm that has a truly long-term view? it begins by being privately owned. with more than 85 years of experience over multiple market cycles. with portfolio managers who are encouraged to do what's right over what's popular. focused on helping me achieve my investors' unique goals. can i find an investment firm that gets long term the way i do? with capital group, i can. talk to your advisor or consultant for investment risks and information. >> announcer: "lightning round" is sponsored by td ameritrade. subjectively they want everybody to -- excuse me. it is time it is time for "the lightning round. >> buy, buy, buy. >> sell, sell, sell. [ buzzer ] >> and then "the lightning
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round" is over are you ready, skee-daddy? time for "the lightning round. mark in new york mark >> caller: hey, thank you, jim what do you think of nokia >> nokia, no, come on, man we can't unfortunately my buddies who quote from the chairman say that huawei's stuff is better and cheaper so there's nothing we can do how about we go to mark in colorado mark >> caller: hi, jim it's grand canyon education, lope >> oh, the private education, you know, i'm not a fan of those stocks i think you ought to stay away 18 p/e what are you guys putting me in prison with this i need to go to jim in massachusetts. jim. >> caller: yes, jim. thank you for taking my call i'd like to ask if you could comment on two points regarding emerson electric, emr. >> emerson electric. they decided to take an activist position dave is going a good job
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maybe time to make moves i think it can go higher but isn't exactly the stock i'd want to buy in this environment trevor in kentucky trevor >> caller: boo-yah, and how are those eagles planet fitness, 33 cents a day, knocking down rsi 27 -- >> peloton is stinking up the joint and we don't want to go near the health care into all the sellers of peloton are done and circle back to planet fitness and that, ladies and gentlemen, is the conclusion of "the lightning round." >> announcer: "the lightning round" is sponsored by td ameritrade what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy.
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the market has suddenly turned really, really nasty. >> sell, sell, sell. >> it's kind of a slow rolling nasty. many stocks are still so close to the highs you feel like a real chump buying them here. how you can tell when a decline is really creating bargains and when it's really just creating let's say fugazis. let me walk you through some of my favorite companies in the dow jones industrial average and show you how it's done in a hedge fund or mutual fund, it's just -- it's kind of a check down approach. apple, up 39%, but apple is only off about 3% from its highs. oh, that might be tempting you in a different environment but we're back in hostage land when it comes to the trade war with
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china. especially with some new investment rules that could hurt china, being mused about right now at the white house, the story i broke at the top of the show once again i say own am don't trade it that means don't start a new position in it at this level i don't believe the negotiations with chinese will be magical and that means you need to be patient. let it come in next is microsoft. microsoft is up 36% for the year but it's only down 3% from its high to me that's just too close to that there's no compelling reason to say right here right now i want to own microsoft down 3%. what's that. procter & gamble up 36% for the year made a new all-time high yesterday. does that make it tempting not to me. to me it feels like it is waiting to happen. if you buy procter here and drops two points you'll be frozen talking about how you had a bad day and killing it out and take a loss. never feel like you've come in at the top it messes with your head and makes you way too vulnerable to
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potential disappointments. a psychological piece. same goes for reaching for home depot up 34% it's right at the top. we have one nasty analyst note and it will come down three bucks, maybe five. you know the stock has gotten darned close to the high, well, i'd say the stock today was pretty high level. you know we sold something for the trust. can you read about it by joining the action alerts plus club. visa up 32% for the year listen to this it works for me. why? because visa's stock is down 7% from its high. i love the ones that are down 5% to 7%. always a great place to start. high quality company part of a technology cohort, much loved until the month of september began. visa is a well-run company, seems to be having an excellent
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quarter. now, there's been a rotation back into the big banks and out of them like visa. closer to earnings season i bet it reverses itself charlie being hired by wells fargo was great for charlie and wells fargo gone's helped the banks move again today i like situations like visa. great spot to start a position you're not buying at the high and the fundamentals are good and you're getting it nice enough off the top that i feel it's a good place. hey, 6 is united technologies, rallied 28% year to date another ideal selection. off more than 5% from its highs. i like that 5 to 8 despite what's looking like a brilliant decision by greg hayes to merge with raytheon and split into three new companies and the market is loving the prospect of a new pure play aerospace and defense stock not named boeing it's worth buying. filled with positive catalyst, start here, start on monday and some sort of ugliness and build your position. what else? walmart up 27% for the year.
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only down 1% huh-uh might as well be home depot. to me it's got to come down more ibm is up 26% for the year, down 6% from its high that is tricky because, remember, got that red hat acquisition. i have no edge now nike just blew away numbers. sorry, have to wait. finally how about this one, american express i think this is a terrific situation. maybe the best of all. you just got a 10% dividend boost but the buyback of 120 million shares when you consider amex only has 829 million shares outstanding it means they're repurchasing 15% of the share count it is a fin tech play that leads to small to medium size business down 8% from its highs ah, too good to ignore i just love that looking for the ideal kind of stock to start buying in this difficult environment, look no further than american express, but don't forget, i think that
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visa is interesting here and, no, you know what, let's just stick with express i know it's hard to go through all those different ones but axp is the best one and then visa and then united technologies stick with cramer. automatically goes into a money market fund when you open a new account. and fidelity's rate is higher than e*trade's, td ameritrade's, even 9 times more than schwab's. plus only fidelity has zero account fees and zero minimums for retail brokerage and retirement accounts. just another reminder of the value you'll only find at fidelity. open an account today. tv aas many safety features powas the rx, the new...... the lexus rx has met its match. if they're talking about you... you must be doing something right. experience the style, craftsmanship, and technology that have made the rx
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one of the most emotional stocks in the market is called micron it went down a quick eight points why? because a bunch of analysts bolted between the 49/51 level and reported they had a good quarter but gave you bad guidance back to 43 everyone is panicking and thinking, oh, no, what do i do next i've been saying you buy a little here, buy a little at 40, buy a little at 38 and get bigger at 35 that's how it works, people. i always say there's a bull market somewhere i promise to find it right here for you on "mad money. i'm jim cramer and i will see you monday. and t, the american dream continues.
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i led a program for gang leaders. how many others are there out there like this? -nothing. -nothing? we've sold over $1 million in sales. -whoa! -what? next year, $10 million. how the beep is that possible? i want somebody who also believes in me. nobody is going to give you $400,000 for 10%. -can we take a minute? -your valuation is stupid. do you see any problem with that before i eviscerate you? you don't have an order, disha. what do you mean by an order? there's a reason why that storefront was empty. guys, they're freaking me out. you're trying to talk yourself out of it is what's going on.
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