i mean is that the coolest guess. >> amazing. >> final trade you're a buy are of oz. >> i'm long oz and long blackstone. that sucker is a rocketship. >> thank you very much everybody. see you tomorrow night "mad money" with jim cramer starts now

we couldn't leave this market if we tried that is a very different story >> buy buy. buy. buy. buy. >> this may be the only scenario that monkeys are better than the prince we're hearing more and more chatter about how this market is reminiscent of 1999 when the nasdaq exploded higher to explode outright in 2000 >> sell, sell, sell, sell. >> believe me, you do not want your portfolio to party like it's 1999 or the end of 1999 then there is a more bullish take, the believers. there is not a trace of doubt in their minds, thank you neil diamond who really wrote that song so who's right

i have news. i'm not sure better just to own that hung jury verdict we've been scaling back not all of the higher buyers you can follow along and see the rational my discipline says at least ring the register on some of your hottest positions after this miraculous run i can't walk away from my discipline gospel. it's kept me in the game for 41 years. oh, but it hurts >> the house of pain >> every sale has been wrong so to speak because most of these stocks just keep churning higher many stocks have run a great deal since the last sale i just don't want to be accused of being too similar to prince admittedly, the late great singer doesn't have a lot in common with jimmy chill which is my 2020 persona. that said, there are many stocks you can still justify owning

here so why don't we do this? go through an exercise of being a believer, not a partier. the i can defend to you my convictions. we're going to start with one big company everybody knows, let's start with apple okay eight months ago this thing was at $183, it's at $318. shouldn't that be case close to sell on "squawk on the street," positive that the run in apple is about multiple expansion, we're paying more for the same earnings that's bad but what if it isn't the same earnings what if apple reports a huge upside surprise next week? we just got word that apple raised the new phone and the accessory business is on fire. i can personally attest are extraordinary. in other words, after spending a long time in at the wilderness,

apple might be a growth stock again. they may own halftime with scott wapner we were fortunate enough to have mark cuban on. he pointed out that the whole character of apple was now changing with the rise of their extremely reliable reoccurring service revenue stream you know i'm a big believer in apple as a service provider. of my view, own apple, don't trade it what else is worth owning? netflix. last night they reported imperfect quarter. the stock got hammered now this is a subscriber growth story. the bears came out in full force. then the buyers going to the quarter were partying like it was 1999 i like netflix for a long time there was nothing in last night's video conference call made me less of a believer the stock is overvalued on an earnings basis a think at $133 billion, it's

reasonable the company has such a massive global opportunity while the domestic numbers were subpar, the international numbers grew faster than expected what about all that new found competition in the streaming business the ceo explained that is a natural evolution. at one time rabbit ear broadcast tv ruled the entertainment world and cable and then streaming that is something that a long time netflix investor said he said most new tvs come with netflix built in ai is the secret sauce netflix knows what you want before you want it how powerful is technology sure i want to watch the documentary about aaron hernandez, he was the tight end of the pat patriots that was convicted of murder and died in prison i want to know what netflix has in store for me. five years ago i interviewed

reid hastings from the san francisco bureau i got up at 2:30 a.m. and called customer service which i heard was legendary. i said i wanted to watch the best movie about the soviet army's invasion of germany at the end of world war i the woman, selena, within seconds asked me if i watched "the fall of berlin" which chronicles the tale of a soldier who fights his way to berlin lalgd allegedly reviewed by stalin himself. bingo! it's precisely what i want now i was itching for something to do. well, what -- without even prompting for me, pops up into my queue, t-34 it's a russian tank that took the soviet army to berlin. they show the superiority of soviet engineering okay, granted i have niche tapes. how is that artificial

intelligence net fl netfl netflix follows your viewing patterns they talk about how this market is too expensive they say there are no good buys? what about ibm and broadcom? most important fantastic main frame sales. just over ten times earnings 4.5% yield i think ibm represents a decent investment broadcom, abgo, terrific cell phone orders but held back because they paid $18.9 billion for ci technologies. it was bought a couple years ago. what do you have here? a well run semiconductor company that sells for just 13 times earnings, considerable discount to the rest of the group broadcom has a 4.2% yield to boot it's a buy tomorrow morning. sure ibm is still several divisions and aside from that, classic cloud business is not growing as fast as i like.

eventually the company will have trouble meeting estimates next year when the mainstream cycle peters out it is getting aggressive getting better i like it. so what does all this show they explain how can you justify believing in a couple high profile stocks and how it's not all that much of a leap of faith when you consider the pros and the cons the bottom line, you know what makes me a believer. i want to leave this party and market as something to trichlt let's go to lou nis new york lewis? >> caller: hey, jim. how you doing? you have brooklyn represented here today and real excited, first time caller thank you for letting me in. >> park slope, you're a hop, skip and jum april way from me how can i help >> caller: dinner and drink onz me the next time you're in the neighborhood >> nobody pays what's going on?

>> caller: hey, tell you what, i want to talk about schlumberger. >> why >> caller: because about seven plus weeks ago you were somewhat bullish on them. and as a result, i decided to look at some fundamental and technical data on them i decided to invest. i did pretty well. they went up several dollars after i invested and, you know, over the last couple weeks they obviously been dipping in spite of what i thought was a decent earnings report last week where they beat, you know, the street estimates on eps and revenues. so i'm struggling a little bit to understand why the stock all of a sudden -- >> lewis, you and me both. the reason i gave you that shoulder shrug that you can't see is because they reported a good quarter they have plenty of cash the dividend is protected. but the group is so from hunger is my late mom would say it brings down schlumberger i'm staying -- i'm staying pat i think you should too but, wow, when you hear rusty

brazil later in the show, ulg know how hard it is to own speaking of oil and gas, let's go to eddie in louisiana eddie? >> caller: boo-yah, jim. thank you for having me on the show how are you? >> i'm good. how are you? >> caller: i'm doing well. my question is about virgin galactic >> yes >> caller: it's had a great couple of weeks. i want to see your thoughts on if there is new more room to run on this stock. is there any real value in the stock as well? >> okay. i think this is a short squeeze. there are no earnings. there is a kind of a blank check here i don't recommend owning it. but you're playing a short squeeze. short squeeze, you don't know when they are going to end so you can ride it but holy cow, i'm not a believer but hold it just a second. i am a believer in those stocks that i mentioned there were four of them. this market is not a fairytale it can be the real thing if you're selective selective meaning apple, netflix

on a dip, broadcom, meaning ibm. well that's okay you can believers. "mad money" tonight, the crisis in iran to worries over disruptions to the crude oil output there is plenty of focus on the oil patch. i'm sitting down with one of the smartest guys in the industry to find out what means for the sector you don't want to miss its then travel stocks are taking a hit. what does history say about the move should i be a buyer? and after pretty staggering run, is there anything can you buy in the med tech area? i'm going off the charts to find out. so stay with cramer! at fidelity, online u.s. stocks and etfs are commission-free.

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worry was iran remember that? everyone was acting like we were on the eve of world war iii, i told you that was a mistake. i thought there was a good chance that mr. trump would deescalate the situation i didn't think they could disrupt oil supplies we have too much domestic production the we're no longer hostage to the middle east like we were i understand the case. this morning, rbn energy, the best energy analyst on earth and my go-to guy on issues like oil supply put out a note where he pointed out that historically iranian face-off like this may have sent crude to $100 a barrel the shale revolution, fundamentally changed the dynamics of the market let's check this out with the principal of rbn energy. rusty, welcome back to "mad money. >> thank you >> thank you >> people don't realize is i'm e-mail you at 5:45

come on, rusty, this has to move oil. whatever event this has to move oil this one had to move oil what the hell? >> we got 13 million barrels a day of production. remember, opec and nopec have 1.7 million barrels a day they took off the market to boost prices that's sitting there you put that together with china's subdued and you put all those three things together and it's going to take a real serious supply disruption over an extended period of time to have a real impact on this market. >> we've seen the rate count drop leading me to believe that there is going to be a slowdown in drilling. schlumberger pulled back the is that going to cause things to get firmer >> the production is not going to grow as fast this year as it grew last year but that doesn't mean that production is not going to grow. the rigs that are coming out are not the most efficient rigs. the rigs that are staying on are the high test best rigs that they've got.

and they're using them in all of the best of the best sweet spots. the so that means we're still going to have an increase in production it's going to be mostly in the premium. >> oil out five years? >> oil at five years in terms of pricing? as long as we're still at the level that we are right now in terms of how much fracking that we can do and the general economy, we're talking about pricing where they are at now. in other words, we've been in this cycle upper 50s, you know, lower 60s prices for darn near five years now >> the note talks about other things we have another basis the together, this could be long lasting. it seems like it's the mother load >> it is the mother load you think of it like 75% of all the kick we are geeting is frtt the permian. so we just get a lot of bang for the buck >> everyone's talking to me about potential bankers and

natural gas. natural gas isincredibly low price. what's going to happen >> meltdown. >> we're talking about $92 today. the last time that price of natural gas was at this level in january was 1999 we're thinking about writing a piece on that saying something like gas buyers are partying like it's 1999 >> why go that route that was the opening of my show. what that tells me is companies could be history if they're liefer to natural gas. >> if they rely on natural gas alone. most of the gas comes from associated gas and crude oil the typical permian producer receives 2% or 3% of the revenue from a given well from natural gas. everything else is coming from oil and ngls so what happens when natural gas price goes down?

nothing. >> that's important. now, president just said that the chinese be committed to spend $50 billion on liquified natural gas. do we have enough production to make that work >> there are a couple things to note first of all, we can make a lot of lng production and most of the production or a lot of the production in the united states is not destination specific. so if it was going to latin america or if it was going to europe, it can turn around and divert and go to china if the market is there. the catch is the chinese have a 25% tariff on lng. that hasn't come off we still have tariffs on a lot of chinese goods so whether or not that comes off or not is going to make a big difference as to whether it's really lng or propane or butane which are also part of the same deal and also have tariffs in excess of 25%. >> okay. people in davos, they're talking about being green. we have parsley on

i know you think highly of the company. they cut down the number can a fossil company ever be green? >> ever be green they can be greener. >> okay. >> and there are several companies right now that are actually using co-2 flooding to boost production of crude oil. in other words, they're taking co-2 out of the ground. >> who is doing that >> one of the companies, oxy >> oxidental >> yeah. >> that's greener. >> it's greener. the whole flaring issue, if you're in the permian and producer that did not get pipeline transportation out of the permian, it's maxed out. so if you're in the permian and you do not have pipeline transportation, then you're stuck with either selling your gas for a real cheap price to somebody who does or cutting back your drilling program which no producer wants to do. or flaring

>> on this question, partnerships, a lot of wealthy people watch the show. they cease to be growth. they're getting killed still >> first of all, there's some mlps that are in the right places that are doing the right things so new star, enterprise, there are some good ones however, if you look at mlp space and the good ones, they actually yield -- they have a pretty decent yield. so the distributions sort of make up for their stock appreciation issues and the naem are looking at mlps these days tend to be debt guys looking at that yield because the yield is pretty darn good, not stock appreciation guys. >> that's terrific president, principle energy consultant for rbn energy. the way i start my day every morning. i know i bug you i really apologize the but you know when i e-mail you and you always come back instantly. "mad money" is back after the break. hey, saved you a seat.

this round's on me. hey, can you spot me? come on in. find your place today, with silversneakers. included in most medicare advantage plans. enroll today by calling the number on your screen or visit getsilversneakers.com

last time i told you this corona virus could damage certain sectors. my forecast for this disease is some short term pain and i think you should stay way from the industries where there could be a real earnings hit. but get aggressive with stocks that come down simply as collateral damage to this corona virus. how bad could this be for the market you know, maybe history can lend a hand so we want to explore how similar outbreaks played out in the past, especially sars in 2003 and ebola in 2014 i'm not saying we is have a sars or oeastboun owe owe bowl ebola.

>> let's start with the sars outbre outbreak all told more than 8,000 people caught the disease, 70% of them died which isser to e. terrible for a disease that can pass from person to person the disease was first identified in 2003. the epidemic started in november of 2002. in southern china. at first they thought it was atypical pneumonia the world health organization is doing global health alert and figured out that sars is caused by a type of coronavirus it made land fall in the united states and the centers for disease control were expecting planes and ships from china and singapore. now it wasn't until july the world help nl organization declared sars was contained. basically sars lasted eight months remember that figure

eight. the level really peaked in february and may now as it turns out, the first quarter of 2003 was an ugly period for the stock market. some of that pain was driven by a global pandemic. take a look. this is ugly the worst of the pain came in january. and in january when the disease was being discovered, we started hearing about it nonstop, you get ready for that, perhaps. but from the peak to trough, they lost 15% of the value and roughly two months then in march there was a shorter more intense decline from higher levels that shaved off nearly 6% in ten days time the source of the pain -- look at the dow transports. that is really concentrated. this plunged 21%, okay, from mid january through early march. that sars put a damper on global travel it made sense to get hammered.

we're seeing the same travel shutdowns right now. alerts out of china. this is gigantic but, the rebound was incredibly twist look at this from the lows in march through the end of 2003, the s&p 500 rallied 41%. and the dow transports well, they surged 57%. look at these. these are runs that we want to capture, right we don't want to miss those. that's why this chart and this charts and the data that i'm giving you are so vital. i think sars is the worst case scenario so far the current coronavirus is not spreading as rapidly. if very wwe have a sars tr trajectory, you can expect the same move. it is important. you may get a condensed good bounce for another comparison our experience to the united states might be more like the ebola outbreak ebola is much much harder to spread than sars if you contact the disease, it's

a much more lethal we didn't have a cure back then. it devastated west africa. there were more than 28,000 cases, 11,325 deaths if you're in the states, our ebola scare was condensed. taking place in the fall of 2014 a couple americans caught the disease in africa and brought it back here. the first one died in a handful of health care workers were exposed to the disease it wasn't even a real outbreak in the u.s it was quickly contained here. the stock market freaked out because ebola is anything, just terrifying so let's take a look at this period from mid september to mid october in 2014. yes, s&p 500 plunged nearly 10%. okay but then we bounced right back again at the end of october. we were back to the preebola levels how about the dow transports look at these. they fell 12%. but then rebounded much harder, all told, the ebola scare turned

out to be a fabulous buying opportunity. you had to be there. obviously, this seemed like a dangerous level. but then look at this springboard. i mean that's kind of what we're trying to catch even though i know that we're really trying to gain off this. here we go what can the current coronavirus mean for sectors the airlines were hammered yesterday. anything with international exposure is a target they put o ut a great piece of research showing what happened to passenger revenue so the damage was mostly cordoned off to flights between the u.s. and africa. still given that asia is a much larger market, they break the delta, american, and united could take a meaningful hit. united continental is the most asia-pacific composure st they reported a good number the stock didn't lift. then it got hit again today. that is the coronavirus. what else should you be watching anything that gets hurt if there is a down tick in travel like the hotels.

marriott have a major asian crowd business the it tumbled 4% yesterday. the ceo spoke to cnbc at davos yesterday. he said the hong kong business is down 50% of the protests and the illness. it's a good case study they've been around for awe long time during the sars epidemic, it lost 18% of the value in three months they didn't have as big a china exposure as they do now. during the ebola scare, it was 19 in eight months those outbreaks were buying opportunities. i think you'll get the same thing here with a high quality hotel owner. i think the cruise lines could be worth buying in weakness. norwegian has the least china exposure and the most u.s. exposure fit gets hit, come on, pounce. but you have to be patient let it come in first more worried about the casinos, they do a lot of business with

chinese and vegas. if things get worse, i recommend avoiding los angeles sands and mgm. there is lots of spending from the chinese tourists, that's why kuerig got hit so hard on monday and tuesday. now i say keep an eye on macy's and nordstrom. i like estee lauder which was downgraded yesterday in hong kong and mainland china. i need to see more estimate cuts before i pound the table again though, china may get the coronavirus outbreak under control faster than we expect. this doesn't have to be like sars or ebola. we're talking worst case scenario here. p markets don't always get hammered by the outbreaks do you remember the h 1 n 1 pandemic 12,500 deaths. this was a disease that started in the u.s it wasn't enough to derail stock market that was finally

rebounding from the financial crisis we never really sold off on that zika virus despite hearing about it for most of 2016. i expect the ee fwobola scare i most likely. if that gets bad, expect the sharp decline. when you consider the history of the disease outbreaks, i think you want to avoid the airlines, hotels, cruise lines, casinos, and tourism dependent retailers here but that's just for the moment the coronavirus continues to spread and stocks get hit, then we have to think about buying the high quality names into weakness that i just mentioned i'm more concerned about side stepping that potential pain that i am about harvesting the potential gain let's go to frank in michigan. frank? >> caller: hi, jim i have a question about tyson foods. i have a small position in it and added to it after your comments on it because of their

ability to ship the pork that china needs and looks like an inverted head & holders on the chart. they have a lot of debt. i'm thinking about selling the stock. what is your take? >> no. my travel trust owns it. we bought some today this stock has been retreating why? beyond meat stock was doing so well we know the impossible burger is not selling like we thought. it is a zero sum situation now that beyond meat can reverse a little bit, i think the money will come back to tyson. they're the big winner if china runs out of pork suzy in new york >> caller: hi, jim, love your show i have a two part question for you. astro citizen ka stock has had a great run the past 18 months up almost 50%. what is your take on the long term investment? and also, can you complain xplain how adrs work for nonu.s. based companies? >> base he cannily, you're getting the same stock there is a transparent nature. you're buying astrozenica here

versus here. it has some marvelous franchise. much better than people realize. that's why the stock is going up coronavirus outbreak could spread damage to certain sectors temporarily. if there is any guide and short term pain but then some nice gain much more "mad money." one of the hottest inspectors, could the medical device place continue their amazing run i'm going off the charts to find ouchlt then i'm tackling the tessa glte tesla glut and rapid fire in tonight's edition of "the lightning round" so stay with cramer. do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended

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a pretty staggering run, is there anything can you buy confidently at these levels? i talked about it at the top but one of the hottest groups in the market, the medical systems stocks are looking interesting according to investors business daily, out of 197 industries group, the 12th best performer right now. problem is with stocks soaring

almost every day, think about how much had to go wrong to even get a mild pullback yesterday. you can feel like you're taking your life in your hands when you buy anything so there anything that makes sense in the medical space if we get a coronavirus this say group you can buy in weakness. we're going off the charts the founder of explosive options do the net and being the brilliant technician in the all star team on the trifecta stocks newsletter and author of "know your options." two out of the three device names are familiar you to. these three stocks have risen over the past few months they'll keep trucking for some time so let's start with the daily chart of ind, inmode this is from the class that i just recommended in october at 24 and change. it's now 46. okay, so last month i told you

have to ring the rengster giste part of this greedy pigs get slaughtered. the stock rallied 75%. you have to take something off the table, don't you anything else is just pure greed. we don't like greed. however, even up here in the relative and inexpensive it has a terrific concept. this is the company that makes minimally invasive energy based systems for face and body contouring medical aesthetics and women's health, they penetrate your skin to remodel the fat tissue underneath they request can give you face liposuction without the need of surgery. wow. medical device company that makes you look good, gets you out of the hospital faster i presume with a lot less pain so how about this chart? okay this is lange's favorite chart of the entire group that we're going to be talking about. they spent the first few months as public company roaring

higher even as the stocks cooled off since mid november, for the last couple months, it's been consolidating its earlier move this is the type of thing that lange just lives for the why does he like it so much? first, they have strong volume trends here we look at the bottom when it goes up, it tends to go up on big volume which is a good sign tells you the big institutional money managers are in there. you can literally see every time it goes up, you get that spurt in volume. second, it is number one in the vivent investor busy 50 you should keep an eye out you know history says that is a great endorsement. third, check out the moving average convergence down here. this is a technical tool that helps detect changes before they happen earlier this month they made a bullish crossover, okay?

see that and that's one of the most reliably positive signals. we've been doing this segment for years. every time i've seen this it's been right since that crossover, it rallied to a quick $9. that tells you this thing has its momentum back after spending the previous month in consolidation mode here is the quick nine lange likes that inmode made a consistent pattern of higher highs and higher lows since it gapped up in early september okay so this is, you can see the higher highs plus, the stock has a floor of support and the 50-day moving average around 43:it could jum top $57 around where it peaked in november before it runs into any kind of resistance if it can clear that hurdle, i know this sounds a little, i don't know, impossible, but lange thinks kit go to $75 or

$80. next up, there is a daily chart that is the fast growing medical device space recent buying is very encouraging. now there is the money slowdown here that measures the level of buying and selling pressurure of the stock. there is a limited situation and when they expand as it is right here, you see it just going and getting bigger it's doing that. it tells us that a stock is going to hit higher which is exactly what we're seeing right now. now the stock just gapped up big time last week after intuitive surgical preannounced some fabulous sales in earnings. will i was blown away. i've been looking for big

things this was incredible. you're not early on this one lange thinks it is worth buying any pullback keep that in mind if what we talked about the top of the show which is the illness clouds people's thinking or maybe some sort of event that we haven't thought b finally, how about the daily chart of bruker? this is a company around for 60 years. it is a leading player in medical analytics and diagnostics. they've been on fire lately. up 35% from the lows lange likes the volume trends here can you see when it spikes, the volume is big. there is a good example. with the stock rising and robust volume over the past few months, you got a couple, a series of higher highs and higher lows cloud is green, same deal. see it expanding and opening up. they made that bullish crossover. it's like the chart has every positive signal you might want but lange likes it here. he would like it more in pullback it is currently $53 and a floor

support at $51. if it retests the $51 levels, should back up the truck bottom line, in a market that had a major move higher, it could see some turbulence from the coronavirus outbreak, the charts say you should be ready to pick up some inmode, intuitive surgical and one we never talked about, bruker "mad money" is back after the break.

it is time -- time for the lightning round. buy. buy. buy. buy. sell, sell, sell, sell and then the lightning round is over are you ready? time for the lightning round start with cybil in louisiana. >> caller: yes, sir. hello, mr. cramer. >> hi. >> caller: thank you for taking my call. >> of course >> caller: i -- could you give me your opinion on six flags >> i didn't like that quarter at all. i don't know if this company has

the cash flow that had been held out as good. its now bad. gary in indiana. gary >> caller: hi, jim how are you? >> i'm good. how about you, gary? >> caller: doing great >> well, have a stock? >> caller: i like cim. >> yeah. you no he what this one is actually working my problem is it has a 9% yield. here's my problem. i he don't really understand what they own or how they got their positions and therefore, it's impossible for me to recommend it even as i see the stock going higher let's go to oscar in new york. >> caller: how you doing >> i'm good. how about you? >> caller: doing swimmingly. i've been long danaher for so long i bought it when my mom bought it in the 80s for me periodically, i have rebalanced it but frankly, it's been a diagonal line for decades. >> my travel trust sold it after a huge gain. didn't think it would continue

to ramp higher they bought that ge division it is very good med tech it just continues to rally and you no he what it's not done. my bad sold it too soon stay long. josh in illinois josh >> caller: hey, mr. cramer >> yeah? >> caller: i got a question for you. et >> no, see, energy transfer is the stock that rusty brazil and i talk about all the time which is it doesn't really have growth it's got a good yield. but it's not necessarily a safe one if things go worse than they are. so i would have to say no to that one how about ethan in texas etha ethan. >> caller: mr. cramer, i'm calling from the university of texas in austin. how are you doing today, sir >> how much do you love that i'm good, how are you? >> caller: i'm great, thank you for asking i want to get your thoughts on brookfield asset management, whether or not you think is a buy? >> it's a he great one

a lot of people compare it to warren buffett i'm not going to disagree with that no one's ever going to trump the master but that is a nice comparison. timothy in florida, timothy? >> caller: hey, jim. boo-yah. >> boo-yah >> caller: tim from miami here my question is about l brands? >> i was thinking about doing a segment about how you might want to buy this. they could unlock the value. if they don't, you'll have an earnings short fall. i don't recommend stocks that are going to have a takeover if the earnings are no good and that, ladies and gentlemen, is the conclusion of the lightning round! >> the lightning round is sponsored by td ameritrade ♪ ♪

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ncht h how the heck do we explain this rally for tesla? up 350 points in the last three weeks. it is the mother of all short squeezes or investors realize this is a tech stock with big earnings potential that just so happens to be in the car business what in the world is driving this darn thing higher, causing it double in less than four months let's consider the obvious consider the short squeeze 18% of tesla shares are shorted. that certainly a lot it's not enough to explain the remarkable move we keep seeing day after day including this one. is it possible investors are shorting tesla more heavily than we might realize from that

statistic? absolutely money managers are using derivatives to bet against this thing. it makes a ton of sense to use instruments rather than shorting the common stock you lump that in with 18% of shares sold, i think the short squeeze does play a big role in this rally but that is certainly not the whole story. i know that. i'm not hearing about the fables buy it the brokes have to deliver stock to the natural buyers giving them no choice but to go into the open market and buy it and credit it to their short selling clients. in other words, if you're short 10,000 shares of tesla but can't deliver the stock to a natural guy buyer, you lose control of the market now that might explain why tesla stock keeps surging every morning. yeah, before the market opens. every morning. now i've had a buy in the price nowhere near the stock is trading the day before bought in the morning. however this is not the thing that should happen day after day after day. i think it is much more likely that tesla is experiencing a

wholesale rerating here. once the investors recognize that they're off the table, it is, they decide to re-evaluate tesla as an automator but as a tech stock and, hey, why not? tesla is not really a car company. it's a tech company on wheels. that's what keeps confusing people almost none of the cars has any demand to speak of at all. except for tesla the some are -- some incredibly smart people have put a ton of thought and effort into the machines and the rest of the industry is nowhere near catching up with them plus, tesla has its own battery business that might turn out to have a genuine earnings power. the business community is embracing this in a major way including batteries. and just imagine what happens if tesla invents an electric car battery that can last 1,000 miles on a single charge seems like a safe bet that elon musk will get there before anybody else does, doesn't it?

tesla is the kind of tech company that had little hope of turning a profit any time soon it's one of the rare tech names along with amazon and netflix. funny thing happened in recent months it's unclear that tesla is about to have an earnings breakout you heard me, earnings breakout. company might be able to make as much as $5 in share this year. maybe as much as $10 next year go listen to netflix conference call they're talking about how they might be cash flow positive. one day. in short, i think there is widespread recognition that 2020 is tesla's breakout year the breakout is coming from china thanks to a new factory they built over there in record time they're building another plant in germany to meet the european demand st that means all those comparisons to ford and general motors, they're facts, they're saying that cheap commodity semiconductors should be valued the same as propriety processors from amd or propriety graphic chips from nvidia. that is ridiculous

commodity chips will never be valued like specialty chips. stop comparing the market capitalizations to tesla which is 1,000 times more propriety. i think it makes more sense to think of them as a tech company. again, kind of along the lines of nvidia or md it makes sense that they're running higher i hate to recommend anything that's run this much, you no he what i think tesla has more upside. stay with cramer

after the close tonight, teradine which steve weiss recommends this afternoon on scott wapner's show reported one of the great blowouts of all time the stock is up 10%. texas instruments reported a good quarter maybe not good enough for everybody. but i like that one. i like to say there is always a bull market somewhere. i promise to find it for you on "mad money." i'm jim cramer and i'll see you tomorrow

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