tv Mad Money CNBC January 31, 2023 6:00pm-7:00pm EST
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i think it goes back there long there >> i'd be remiss if we didn't point out the amazing crew of people we can't show them. >> i wonder if we can spin the camera around. >> i wish we could spin the camera they did an amazing job. lockheed martin. >> mel. >> thanks. and that'srap a wfor us here in my mission is simple, to make you money i'm here to level the playing field for all invest tors. 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 a little money my job is not just to entertain but educate and explain what the heck just happened so-call me at 800-743-cnbc or tweet m me @jimcramer. if we're in a bull market and i think we are, you have to
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prepare yourself not for days like today where the dow gained 69 points and s&p jumped 1.64% and nasdaq pole vaulted 1.67%. for days like yesterday, when the averages look like they're rolling over and bears are screaming about the stock falling and everyone is bracing for a real round house, we have to prepare for the down days now because in a bull market, there are buying of tipportunities how you get a better price on the merch. it's hard to think that way when the market looks ugly. we're used to buying the dips and selling the rips and those days may be over replaced by actual investing we were in a bear market for roughly a year and before that, we had a market that was somewhat dominated by a hand full of mega cap tech names for ages narrow, unwelding and in many ways dangerous for most of the s&p 500.
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they carried everything of the back like giant steam trunked filled with stocks so i think many of us forget what a real bull market looks like you know what it looks like? like today when we see the signs of a real bull, we need to change the approach the bull market is like the days jimmy chill is in his garden clipping the dying branchs of stems, making sure there is subs subs plants they will grow faster, stronger and better like my plants, i hope what makes me so hopeful about this market, there has to be a reason to be positive. can't just be made up. we're not talking about this this time we'd have not one reason but two and dating back to october so seasoned of last year first the unexpected decline in
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the dollar and then the equally unexpected decline in long-term interest rates we keep finding out the trends have much more staying power than we thought. no matter what the fed does or doesn't do or says, i think the impact long rates is short rates. long rates are extremely low which is important that's good comparative stocks and dividends. more on that later for the dollar, you get a strong dollar when the ceconomy is strong you see the eurozone having better growth, there is plenty of room for the green back to go lower. right now the fourth quarter earnings are so distorted by the strong dollar you think the international company is losing tons of business to foreign competitors. that's what a strong currency will do to you huge advantage over paroctor and gamble the dollar hasn't been insanely strong since october it way down which is a huge positive for american businesses
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operating overseas and i'm making the claim it's not done meanwhile, we recognized two powerful trends for months but during this time, you've been hurt severely if you listen to the bears who constantly grab the mike and warn it's dangerous to buy stocks because the fed wants a recession and they'll tell you that they told you so on a day like yesterday. i got it like look at this they told me so. wow, scary the rally since october has been all about the soft landing scenario playing out and gets broader and broader. the critics come on air and tell you the world is ending, these guys come on air and say the economy is too hot and we're stuck with inflation or say the fed will maintain price stability. they have been and probably will be distractions at this point. they take your eye off the ball that leads me to the second observation. a real bull produces a crazy stock going higher, not just the
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same ol', same ol', okay what do i mean housing stocks are the most sensitive to rate hikes. they should be being clobbers daily taking endless amounts of pain but today, giant home builder reported this maker of mid six figure houses delivered a perfect quarter allowing stock to sore 9% 9% with brutal rate hikes? i mean, that's insane. as in a bear market when stocks trade and go down, bull market acre c accepts anomalies and cool down. they are worried about the sky high price of housing so personally, i'm praying jay powell didn't listen to the conference call. ce o'ryan marshall kicked it off by saying we end 2022 on a high note as we close 8900 homes and deliver all-time fourth quarter records. that's not what the fed wants to hear
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now, he did see new orders down 27% year over year marshall noted quote the softer demand is a result of consumers priced out of the market by higher prices and higher mortgage rates with individuals moving to the sidelines given market uncertainties and risks that's one for the fed and worrisome inflation. oh, no, go one page into the slide deck and see how confusingly bullish this moment is because the company actually raised housing prices by 17% all the way to 571,000 on average. are these numbers a sign of america's great wealth or saying when rates levelled off at the end of last year, buyers started coming back to the housing market we are saying they are fraud or crazy, who knows the negative interpretations, they don't cut it now. in a bull market, you do nothing. you know one thing you certainly don't do is look through it. i'll tell you what you do. you buy.
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remember, in bull markets all sorts of stocks lead us higher including ones that are higher for no discernible reason whatsoever why the heck did the retailers start running today? no idea. why is target up i don't know that's bull market behavior and autos. okay which should also be crushed and mutilated spindle here one week after tesla smashes prices, gm comes out swinging plenty of demand for electric vehicles mary barea will explain how it came together but the fact is it's not supposed to come together at this point in the tightening cycle it's supposed to be upside down. can we flip this can we flip this and show people what it's been like, the pain and mystery? the manage care stocks exploded higher look at united health. who doesn't want to see a boring company put up great numbers i saw boilermakers, carrier, train, that's what happens
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okay at this stage. that's what you want to be looking for. let me give you another telltale sign of the bull market, reversals. get ready for them look what happened to the market that's the auto maker, they heamake chips for autos. reported some ill advised traders dumped the stock that sent the stock down $7 in after hours. no conference call until today but when they spoke it sounded soothing in the stock actually rallied back from minus seven to finish up $5 12-point swing tonight amd the new semi kingpin barely beat the east mitts w what happens? this is the bull market behavior you have to get used to. they report at 6:00 a.m. how horrible it is big miss stock looks down four. plug ugly. at the end of the day stocks up eight and finishes a 12-point swing. not bad. bear market the opposite way stocks up and feel humiliated.
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hedge funds come in on down days and tell you here it comes, the big one, the mother of all bears and all that happens is they get one day. bottom line, let's understand these caterpillar reports and the stock sells off, there is always tomorrow. you're not betting against it. not with infrastructure sales. sell down nine used to be correct in bear town not anymore. hey, let's go to amar in new york. >> caller: jimmy chill, this is amar from new york. >> the chill man and what do you have to say? >> caller: yes so mr. chill, i watch your show with my baby son he loves your show -- >> fantastic. >> caller: i would like to get something you could add on the cnbc merchandise for sale. >> i like that how about a stock?
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>> caller: awesome so i would like to know from you if i should buy, hold or sell this stock my investment horizon is five to ten years. it a digital health care company. it's done a lot in the last year i know you've spoken about it in the past so i'm wondering what you think about it from a long-term future perspective they have a wide -- >> all right -- >> caller: a lot of health care insurance -- >> okay. okay. >> caller: a lot of doctors on the platform. >> the stock is? >> caller: teledoc. >> that goes higher. it doesn't matter how the company is doing she likes it people will see it they will cover their shorts and get worried and go higher. let's talk about it after it goes higher. thank you for the kind words many of us forgot what a bull market looks like or never seen one. you know what it looks like? today. gm shot the lights out in the quarter and got this lithium investment to record e.v. sales.
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i got to tell ya, you have to watch my interview with mary barea. brilliant. she's brilliant. hey, then we love "mad money" so a revealing of three more and sharing where i come down on them and with pfizer selling the covid-19 treatment and paxlovid in china, millions of doses going through the headlines so stay with cramer >> announcer: don't miss a second of "mad money." have a question, tweet cramer #madtweets or send jim an email or call us at 800-743-cnbc miss something head to madmoney@cnbc.com.
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okay for the best earnings reporting of the day, the best to general motors the urn in a stunner of a quarter. a 41 cent earnings beat off $1.71 basis with sales up 28% year over year coming up over $3 billion higher than anticipated. even better, gave us a tremendous full year forecast and announced investment in lithium to secure the electric vehicle supply chain remember, they've got a big slate of electrics now including that hummer that can crowd walk that my wife showed off. in response, the stock jumped 8% and sells for less than 7 times earnings back to december, basically mid point of management's full year forecast. don't take this from me. we got a chance to speak to mary barea, the chair of general motors look at this one ms. barea, welcome back to "mad
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money." >> thank you so much good to be here. >> mary, so many things went so well for you this quarter. congratulations. you've got tremendous demand you gave us fantastic forecast, amazing pickup in market share in america, seemed to have solved a battery problem for lithium with a brilliant investment and the moon shot has come to reality with autonomous vi vehicles i'm going to give you the floor. there are so many good things i need you to prioritize the greatness because it's really remarkable. >> well, jim, i like everything that you covered because i'm so proud of the team, you know, our employees and suppliers and dealers, all of our partners we really came together and last year there was a lot of challenges and through that, we made a lot of progress in each area from an e.v. perspective, this is the breakout year when we look at the fact by the end of the year, we'll have nine e.v. products in the market the bulk of them off the ltm
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platform, the battery plan in ohio is ramping up now really well and our second plant in spring hill, tennessee is also that is right on schedule. that's going to enable us to really put out a lot of great e.v.s that are really in demand. i couldn't be more excited about the e.v. opportunities for this year and we also have some strong ice launches, as well, with the heavy duty pickups, the chevrolet silverado heavy duty and gmc see ierra and gmc coloro andia icanyon we have a strong portfolio ice and e.v. and cruise, they said what they were going to do we demonstrated the technology can rapidly be transferred to another municipality and be ready to do because in san francisco they worked so hard over the last few years to solve the hardest problems
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so again, i'm excited for '23. i know there is challenges and we don't exactly know what the macro is going to be but we're well positioned and to make sure we're going to be able to deliver on everything we put in at $2 billion cost program to take structural cost out and that's net by the way between this year and next so this is a year that i think we can really demonstrate what gm can deliver from a profitable growth perspective. >> those of us concerned about the ability to obtain lithium should feel much better after today with the current investment, correct? >> absolutely. and i am so proud of the team that's been working on this because we didn't go in and source it just as a normal part sourcing we went in and said how can we work together and create new sources and partner and leverage the best of both our companies and that's really what is coming together with our partnership with lithium americas and this
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is going to be very significant and the third largest lithium supply on the globe. i think the largest in the united states and we think we got a really great partner to work with. >> there are many things that are going right of which i like headwinds to tailwinds, you mentioned that you'll ben pit gr -- benefit greatly from the ira act and commodities going away and you talked about a logistics tailwinds. these seem very additive to earnings for 2023. >> yeah, absolutely. i mean, we see the strength in a lot of -- there's a lot of unknown what people think will happen in pricing but we do think that coming off record price or incentives, we think we're priced right and customers are telling us we are with the strength of the demand for the products that we have coming so i feel good that we're in a position obviously, we'll monitor what happens through the year i think when we look at what our
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people are thinking are challenges for this year, we're well positioned. >> you mentioned pricing there are many people concerned about tesla's price cuts what i glean from your conference call and notes is that the hummer, the lyric and silverado, which we're greatful for you showed our viewers, there is so much demand we should not be concerned about price cut. >> well, again, we think we priced right from the beginning and by the way, that was before we knew for many of these products what the benefits would be from an ira and i think we're well positioned with the ira because we were already working to either on shore or ally shore and not only did we feel we'd have a more resilient supply chain and get scale but also creating jobs. so i think we're well positioned there and i think the strength of our products, they're brand-new. i think it's going to position us well for whatever happens in the pricing environment. >> now, i know you've got this
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$2 billion ebita improvement i was looking where your stock was, say, three years ago. it was at 33 it's barely moved on this. i'm trying to understand investors should, i'm not trying to say you tell me your stock is cheaper. that's not what i do i'm saying that investors should recognize that you are a much leaner, more valuable company than the last time we looked at this stock before this program of improvement occurred and yet, it's really only got about a 15% change in price. if i read this right, a company that's got that big improvement with market share in the u.s. going from 13 to 16%, leadership in a.v., leadership in e.v., i would argue this is a very different company, a far better more lucrative company is what you're offering shareholders. >> jim, i think you said it exactly right. i mean, we have really worked to strengthen our business, to have a position we started investing in the
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platform now virtually four years ago we have products coming off of it and it's going to give us scale more quickly others are now just starting to work on dedicated platforms. we were early from a traditional oem of putting pbattery plants but made tough choices we went straight to e.v. we didn't do the interim of hybrids. we said let's get to the end game and get there quickly because we think we can do outstanding products and i think that's what we need to aswe execute this year and get these products out, i'm hoping that's what everyone will see that we have growth opportunity in the e.v. business especially with, you know, an area that's total growth for us from a commercial vehicle proserspective and then autonomous, i can't wait to see the progress depress that we're doing to make this year, which is pure growth so i think people sometimes think of general motors as this older company.
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we have tremendous growth opportunity and we've been working for several years to build the foundation and this is the year we really breakthrough. >> let's talk about that there is a noise ki critic that says there is no hope for the internal combustion. do you feel you can do both and still satisfy a public that clearly wants e.v., if possible? >> i definitely think we can you know, we are the only full lineman manufacturer that said all of our vehicles will be electric by 2035 we're leading the way there. when you look at general motors customer base, we sell more vehicles in the united states than anyone else and we've got to make sure we have -- we're able to take our customers along at different segments in the different price points i think that's what we're doing. so we have really worked to have a very crisp, i'll say ice
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portfolio of vehicles. every new vehicle we put out we're improving fuel economy and emissions. on this journey but we're positioned to help broad main stream america make the transition in this time between now and 2035. >> one last question speaking of moon shot to reality and the great kyle that is so terrific you included in a conference call, volume products this year in austin and phoenix, i'm going to the super bowl in phoenix. will i be able to hail a ride that is an autonomous vehicle? >> you know, i know that they're ramping up in there so you may have to wait but i don't know. we should work on and it see if we can make that happen because the team is there. they demonstrated it and we'll keep ramping. >> will you meet me? will you meet me and my wife at
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the hotel and we'll hail an autonomous car to the stadium? come on, take up this challenge. >> i think we have to be mindful of what the traffic will be and where we're at in scaling across the -- from a 24/7 perspective and city perspective but i take your challenge and i'll talk to kyle and see what i can do. >> excellent and prudent answer. congratulations on an amazing quarter, mary. amazing. the stock doesn't reflect the greatness you're doing thank you. >> thank you so much appreciate your support. thanks jim. >> of course, that's mary barra with a remarkable quarter. "mad money" is back after the break. >> announcer: coming up, three stocks landed into an exclusive club find out who the new arristocrat are on wall street, next
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we do not have a real autocracy in america but we have aristocrats in the stock market. i spent last year pounding the table in the group the stock in the s&p 500 raises payout for at least 25 straight years. they represent companies that can keep generating consistent earnings in good times and bad, which i think makes a terrific slowdown plans in the first show of 2022 i recommended a huge list of 36 dividend aristocrats, get this, on average they gave you a total return of 3.3% and gee, that had a total negative return. negative 18% wow. i bring this up because this week the ranks of the dividend stocks are about to expand with three new names bringing the total to 67. i want to go over the members because as much as i like the stocks, you need to do homework to figure out if they're worth
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owning the over lords are nordson, ch robinson and jm smucker. give them a hand, come on. let take them one by one a sleepily industrial that makes equipment for handling seal lants. they raised the dividend for 42 years straight it would have been different a year ago but got admitted into the s&p 500 last year. i got the tell you, i'm not in love with this one at all. they reported 18% organic growth, the earnings guidance was tepe dd. the stock is range bound between 230 and 240 and slashed earnings to the point it trading at more than 25 times this year's numbers. that's not exactly cheap for a company that doesn't expect to have much in the way of earnings
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growth and lacks one of the favorite things about the dividend aristocrats it has a 1.1 yield here. in my view, if you want industrial, there are much better stories than this one think about the companies about to get massive federal handouts from the infrastructure bill like caterpillar we own for the charitable trust the next two newly crowned dividend aristocrats got it the traditional way. they earned it long time s&p 500 compocomponens that's the criteria and it's fantastic. ch robinson worldwide is a huge shipping company with $28 billion in freight they handle more than 20 million shipments per year that's huge. most held on longer than most. it actually hit a new all-time high last august before everything rolled over i'm feeling more on the trucking space in general you know that.
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we should have encouraging comments from j.b hunt, that's the industry leader. however, i am not ready, not to get more positive on c.h. robinson because there is too much upheava aristocrat they fired ceo for reasons that still aren't quite clear and the scc filing, they said it was an involuntarily termination without cause. curious. but the context here is c.h. robinson is under pressure that wants more ablctivests wanted to take on heads. they're looking for success once this management turmoil, not me. five different analysts downgraded the stocks since the ceo got ousted including one guy
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at pranbank of america and exped the old ceo would never have been fired seems like a reasonable conclusion i'm staying on the sidelines for this they report tomorrow so credit to the numbers but if the quarter isn't too bad, we need to know who will run the company, what their strategy might be too much to ask? i don't think so if you want a trucking play, go with an actual trucking company than a freight brokerage like this one digital players like uber freight, i've been impressed 19 times earnings and 2.4% yield is okay. there are much better stories where you have a lot more clarity where the company is headed why take the risk with something like this? just so you don't think i've left w you with nothing there is one new dividend aristocrat, jm smucker the iconic packaged foods company behind smuckers, jiff,
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follow folgers and milling bone and meow mix two great tastes maybe not. but that's okay. we just spoke with the ceo mark smucker when he explained the hard work he and his team had done to reshape the portfolio and brands not working while doubling down on best growth that's what we want to see exactly. that's given smucker tremendous pricing power. no wonder they could beat the number i like this story. this is a good solid business that deserves to be considered in the top tier packaged food companies. it doesn't get the respect it deserves smuckers sold off thanks to the rotation of the recession proof stocks stocks pulled back from 160 and change at these levels it sells for 2.7% yield versus competitors, it's a great buy if you're still
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worried about the broader economy, as i am if jay powell says anything that spooks market tomorrow, all the money from the food stocks can come back and will go to this one. bottom line, even though this market had a real good line and the bear is more or less dead outside of tech, i think you need downside protection because this is a tricky moment. the economy is definitely going to get worse before better and everyone is saying it and it's true which is when you need the dividend acrrristocrats the most they get sworn in, c.h. robinson too iffy only smucker is worth buying now and here "mad money" is back after the break. >> announcer: coming up, after a record-breaking 2022, pfizer appears headed back to earth what's this gruesome guidance mean for your money? cramer has the ceo, next
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what do we do with the covid winners and big pharma now that the pandemic feels increasing? that's the big question with pfizer, which was pretty money not too long ago thanks to the mnra vaccine pfizer made billions off this. allowing them to fund major acquisitions to pat out the drug pipeline and offset the data from future patent expirations but over the past year, wall street is fallen out of love with pfizer because the covid revenue streams are drying up and the stock is down this is astonishing 30% from the highs in december of 2021. we saw the end result. pfizer reported a technically mixed quarter pay sickly fine and far worse than expected forecast for the full year but
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you know what happened after dipping 2%, the stock reversed and finished up more than 1% because the negativity was already baked in as i talked to you about at the top of the show is it safe to circle back? we got a chance to speak to the chair and ceo of pfizer. take a look. doctor, welcome back to "mad money." >> hello, hello, jim, how are you? >> oh, i'm doing fine. how about you? >> i'm very well thank you, thank you very much. >> okay. -- >> thanks for having -- >> let me ask. you just did $100 billion. it is a remarkable feat, first time for a great company like pfizer any reflections on why the market is not rewarding you for what you just accomplished or is it all just the market being skeptical about the future >> i think always the market takes what you give them and looking at the future but i totally think despite the fact that '22 was a super year by all
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means, not only revenue but number of faces and pfizer, you name it, i think the best days of pfizer is still ahead of us we're about to launch in 18 months 19 products i repeat, 19 3r0dproducts some new inl dications in 19 months never again has a company done that and we believe that the period between 25 and 30 where most of the skeptics were if we can have growth, we're not only planning to manage the products are impacting but living industry i have growth at least 6% and we are aspiring for ten. >> all right so let just deal with the near term there are concerns that articulated that your paxlovid, your forecast for this year was what some analysts call
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extremely disappointing. i think there are people that felt perhaps china was going to be bigger or europe is going to be bigger. could you fill us in on what is really happening, say, in china? because obviously a country that has -- is raging with covid would want as much paxlovid as possible. >> correct in the china east getting paxlovid now we have to give you magnitude of size, in 2022 it's 2,000 doses starting this year, this financial year, we already have physicals and plan to continue doing that at least until the end of march this is what we have in our guidance only sales until the end of march. beginning of april 1st, they will start having reimbursement that we are not part of it so we are aiming if we are not eventually becoming part of reimbursement to go into the private market, which is a
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sizable market in china but because of the uncertainty, we isn't predicted yet. >> at the same time, while the pandemic is going to be officially declared over in may, when i read through the documents, i think you feel we're not going to be able to say good-bye to this any time soon. >> i don't think anyone thinks we'll say good-bye or very few thinks that we are going to say good-bye i think the virus will continue existing with us for the years to come, however, we're not going to be in a emergency state because right now we have the tools to be able to cop tntrol t with the vaccine and paxlovid, nobody should die from covid going forward and that should be the goal. >> let's talk about some of the new drugs. first, there are drugs you purchased. you know i think that you bought a gem when you bought nurtech through bio haven and i rep cement the american migraine foundation, there are a billion people people don't realizehow
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prevalent it is, commonly misdiagnosed to make it understood and known doctor, when i go to different clinics and i always do, i ask them do they know nurtech. you have a huge process in front of you it could be one of the pbiggest drugs of all time. can you give us your perspective on nurtech >> it is a really fantastic medicine bio haven did fantastic job for the last year, the product grew 55% and when i say the last quarter, they grew double on the market now it is our turn not only to maintain everything they are doing but maintaining the therapy but all the power of our resources behind this product. we're visiting not only neurologist but primary care physicians and women health physicians and this is i think what could mw the first four
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weeks, we see th a prescribing than those that they haven't c visited and we plan to visit all or most of the physicians during 2023. >> that would be fab lulous. people don't realize it's a chewable little thing that you take and five minutes later, your migraine goes away. people do not understand that. let talk about some of these exciting rsv vaccine, a member of my family just got rsv. we didn't know this could be a hope sometime. terrible disease. >> sorry to hear about the member of your family and this terrible disease but very good news we're coming with two vaccines the first one for adults like i guess members of your family but they had the unfortunate meeting with the virus but also, we are coming with a prenatal vaccine, look at that we vaccinate the mother and the
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mother through the pregnant mother and the mother through the blood transfer the immune protection to the baby exactly the moment that the baby need it, when it's born that is maintain quite good levels up to six months. we're very, very happy we can make a very big difference in the lives of babies and the at d adults with rsv. >> there is a great slide for people wanting to know more about pfizer 25 billion potential revenue i think to myself wow, take advantage and buy as much stock as you can but actually in the conference call, one of the conference calls you said that's not a great use. we have a lot of rnd ahead and have to get the message out object our drugs is that standard reason if the stock stays at this level for a long time? >> no, i think the stock went up and there was volatility and mainly related with covid
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frankly because people want to get certainty about covid. i think this is what we offer today. a good base for peopleto make their own kakcalculations what covid business would look like the capital right now, we never say never but we have so much opportunity to invest capital but it's not a priority. i don't say that but it's not the priority look for example, we said that to buy 25 billion is fantastic revenues of year 2030. that will result once and for all the growth of the second part of it we are already 40% there actually, we are 10.5 billion so far. you know what is the most interesting? the market, the consensus is few months ago we're at seven. now they're at 9.5 their close to 10.5. these are real products announcing now and will offer real revenue. >> you made great accesses
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i like the arena acquisition there must be with this market such a pear market in some biotech companies. don't you think there is something in there that is -- that could be huge if pfizer's dpr great laboratories got behind them >> i'm certain look at the difference we're able to do. >> right. >> how much better we did together than one. i think this is how things were moving, how science move we need to biotech and big pharma i'm sure we'll mifind a lot of them. >> i think the stock is frankly, ridiculously cheap you're doing an amazing job because you're a cautious person not willing to say to over promise about paxlovid the stock is giving you a great chance to get in thank you chairman and ceo of
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pfizer great to see you again, sir, thank you. >> thank you very, very much. >> people you want safety, yield and growth, pfizer "mad money" is back after the break. >> announcer: coming up, cramer takes your calls and the sky is the limit. it's a fast fire lightning round, next. if your business kept on employees through the pandemic, getrefunds.com can see if it may qualify for a payroll tax refund of up to $26,000 per employee, even if it received ppp, and all it takes is eight minutes to get started. then we'll work with you to fill out your forms and submit the application; that easy. and if your business doesn't get paid, we don't get paid. getrefunds.com has helped businesses like yours claim over $2 billion but it's only available for a limited time. go to getrefunds.com, powered by innovation refunds.
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start with conner in alabama, conner >> caller: jim, how are you doing? big fan. >> oh, man, roll tide. what's up? >> caller: appreciate that roll tide. i'll keep my question really short. >> fantastic. >> caller: simple. xm, how do you like it as a long-term growth play? >> remember, last week we had sap on and majority share. be able to buy the stock and let these guys do their work and it's a buy justin in colorado, justin >> caller: hey, jim. thanks for taking my call. this company was recommended by you a couple months ago. this is a new construction company that came down in price in the recent rally. the earnings report is february 2nd, is clfd still a buy >> what the heck an animal list that cut numbers. we'll see what they say on february 2nd that was crazy how about tim in illinois, tim
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>> caller: brst. >> well, i got to tell ya something. that is one of those crazy science stocks in this market will work perfectly and that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the lightening round is sponsored by t.d america trade. coming up, is the consumer no longer a gluten for punishment signs of a food fight in the making will whole foods be the first cookie to crumble? with inn ovation that lets you customize interfaces, charts and orders to your style of trading. personalized education to expand your perspective. and a dedicated trad expert-. that will push you to be even better. and just might change how you trade—forever. because once you experience thinkorswim® by td ameritrade ♪♪♪ there's no going back.
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this is finally happening, the american public is pushing back against higher food prices. we're mad as hell and won't take it anymore we learned whole foods is asking suppliers to take a hit to the bottom line because whole foods is taking a hit from consumer rebellion. the wall street journal broke the story quoted a research firm called placer a.i. that said whole foods saw a decline of 8%. that's a hideous decline whole food speaks to the number that makes sense when you look how discounters are doing better in this environment, people would finally rather trade down than pay up and that hadn't been the case i don't know if the fed is paying close attention with whole foods, which is buried within amazon but i know i've
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been waiting for this consumer revolt to occur. i've been waiting for shoppers to go on strike against expensive name brands. think of those bottles filled with pink liquid that are definitely not pepto even though they taste, look and function the same that gets down to actual competition. not as bad as it used to be. the fed doesn't want a deceleration that's silly it wants price decline that's what we should get. rather than slowing food inflation they want to roll it back to where it was why not? nothing changed. many plastic underlying raw concern is it may be cheaper than 2020. the packaged food companies can no longer justify the price hikes and will push towards price cuts when it starts hurting the bottom line, they will do their best to bring down whole sale prices why? because the supermarkets can pull your product if you don't play ball and give more
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self-space to your corporative competitors. they want foot traffic they don't want to make up for you. whole foods and amazon, kroger, giant changes. they have the ability to bully suppliers is a huge threat to the industry the two with the most power to change things are walmart, the largest grocer in the country and costco the ultimate cost containment play costco keeps track of the cost and whenever those costs go down, they ask for lower prices. why does this matter at the end of the day the federal reserve is on a mission to snap inflation and what matters is food inflation, wage inflation. this is the most visible component. i assume the fed won't raise interest rates until consumers trade down the cheaper food. now that's finally starting to happen this is one story. the whole foods cut they won't do it. the actual price rollback they haven't done yet but the fact the consumer may be backing away from higher price foods can
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trigger that process and the fed should take notice immediately and say tomorrow, that while the work is not done, at least some good things are starting to percolate. i like to say there is always a bull market somewhere and i promise to find it for you here on "mad money. i'm jim cramer see you tomorrow great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪♪ is an innovation in personal security. [ laughs ] corcoran: oh, it's a real llama. wow. are they cool. i've never seen one. have you? o'leary: that's crazy. wow. [ laughs ] hi, sharks. my name is nick nevarez.
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