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tv   Mad Money  NBC  October 27, 2016 3:00am-4:00am MST

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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. friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach you. so call me at 1-800-743-cnbc or tweet me @jimcramer. what's driving the stocks that are working in this market? and what's causing other stocks to plummet even as on the surface it looks like nothing's wrong at all? those are great questions to ask on a day like this where the dow advanced 30 points, s&p dipped 0.17%, nasdaq declined 0.63%. we've entered the most intense part of earnings season, and the
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the fly. in this insanely difficult moment, we are tasked with trying to make some sense of it if there is indeed any sense to be made. how crazy is it out there? just look at the stock of boeing, which has spent ages lost in the wilderness after a long period of outperformance. this morning, the company raised its earnings and revenue forecast, so the stock rallied four points before the opening. then management told you that part of the enterprise had soft sales, namely mature wide-body aircraft, and the stock plummeted 6 bucks from that pre-market high. but then when boeing made it clear that demand for its narrow bodied plane is possibly off the charts, the stock snapped right back to where it was in pre-market trading and then exceeded that, closing up more 6 bucks. so look at the arc of that roller coaster ride. in a single session, the company guides up on earnings and sales. the judgment's accepted. then it's rejected, and then it's accepted again all within two hours. we have to ask what really turned the tide here? what was the fulcrum that all stock performance really stemmed from?
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demand. in the end, boeing explained that there's tremendous demand for its products overall, and that demand is long-term. the aerospace super cycle remains intact, and like honeywell and united technologies and rockwell collins all told us, the world's economies are still begging for more aircraft provided that you have the right models to sate that demand. and in particular, the narrow bodies. yes, right now demand is the secret sauce that's driving stocks higher. is there demand for the product, and does it exceed supply? sorting the winners from the losers right now is an out-of-class exercise in econ 101 or ec 10 if you took it with me. we can see the same thing with the incredible $8.63 run in the stock of akamai technologies. now, you may not know akamai,
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system. it's a network delivery system. both of them are used. many companies use it to send streaming presentations over the innocent of internet. until today, may people thought it was a commodity business. but the essence of what akamai talked about on its conference call, right at the top was the need for a secure network to send information over. and boy does that ever resonate in a time when cyber terrorism is running rampant as i heard in my own interview last night with the whip smart u.s. atto york, pete bharara, at last night's special cnbc net/net summit. take a look. >> i think the government is a little bit behind on understanding technology, and we're doing the best we can to get ahead of it. and some of the hackers who are hurting all of you guys and causing a real existential threat to you guys and to the government and to our infrastructure are way ahead of
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it's a heck of a lot better than relying on a secure network like akamai's got than brand x that might be more easily hacked. this stock's big move is reminiscent of the triumphant run in proofpoint's stock last week after that company reported a surge in business because it keeps e-mail secure, or how about the gigantic $8.52 move in the stock of northrup grumman? that's the most in a year's time. it reported a knockout pair of earnings and sales that really dazzled the street. right now the demand for defense equipment is off the charts. by the way, it's not just from this country. it's from the rest of the word. remember, we're not the world's policemen anymore. everybody else is policing, and northrup grumman is following the pattern established yesterday by lockheed martin, which also dramatically raised its guidance. how about one a little harder to gauge? it looks like there's a stirring demand for money. that's right, money as money lent by banks. we heard that yesterday from beth mooney, the ceo of keycorp. then we heard it today from
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with the rate hike on the horizon, these regional banks remain a terrific place to go. don't sell them. buy them. what about the flip side? who doesn't have demand? who do we need to worry about? i think there are some possible opportunities here, but let's begin with edwards life sciences, which developed the breakthrough heart valve replacement that lets doctors performance life-saving surgery cavity. edwards has repeatedly beaten the numbers. you know how it works if you're a close watcher of the show. we saw it with ulta salon. at a certain point, the analysts figure out the game and raise their estimates to the point where they couldn't be crushed any longer by the company. does that mean that demand has slowed?
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absolutely yes. the combination of the $19 decline in edwards life sciences, that's a 17% hit, and the actual shortfall in the earnings from surgical spine treatment company nuvasive, with a stock that fell 10% -- we like that one -- has sent investors fleeing from the whole medical device cohort, including abiomed, which is a cardiovascular company which reports tomorrow, and dexcom, that diabetes monitoring play that we talk abo l i believe this group has been overly punished. but until some company stands up and bucks the trend, the device stocks, including zimmer biomet, stryker and even the much beloved medtronics will remain in the dog house. i sense bargains coming, but you got to give these -- this is day one. you got to give them a couple days to settle down. the airlines, there's a tough call. the stocks have been rallying based on the belief that demand would improve next year, right up until southwest's gary kelly lowered the boom this morning. holy cow. he says he sees passenger revenue miles headed down 4% to 5%.
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thinking don't give up on the airline ship just yet, especially when united continental, which is becoming a most improved airline under new ceo oscar munoz, delivered such good numbers. i think southwest's issues are giving you a chance to buy united continental on a dip. in fact, i reiterate the group should be bought. it's important to note that delta stock didn't even go down after southwest's warning. remember, i told you these groups aren't trading together like they used to. here's another tough one. is there enough demand for athletic apparel? some of my favorite companies, not necessarily stocks but companies, have seen their stocks get crushed during this period including both nike and my friend scott wapner's halftime report show today and talked about having to spend more money to keep up sales. that's being flagged as a problem with demand. i think the real issue is that you've got a battle for market share among three very crafty players, under armour, nike and adidas, and no one wins on the battleground except one kind of company, the arms dealer. my conclusion? buy foot locker, which is a pure beneficiary of the supplier's nightmare struggles. finally let's talk about the elephant in the room. let's talk about apple. now, later i'm going to tell you about the shoddy way i think analysts treated ceo tim cook
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the company even has one. i think the most important issue on the whole call, the one that seemed to elude most of these analysts, is demand for the new iphone greatly exceeds the supply. i take apple at face value, and i think you should own it, not trade it because its products are beloved, the stock is cheap, and it has a growing service revenue stream that within a year, will be visible to everybody as another reason to step up and buy the stock on this weakness. the antipathy ran deep, though, oddly among many analysts who were actually recommending the stock. i call them faux buys, f-a-u-x. so it might take another day to settle. i know if you listened to the conference call, the analysts' questions implied a boatload of reasons to dump the stock. let me say for the record they had the same objections 20 points lower, and what happened if you listened to them? you were on the wrong side of a fabulous investment. you know who it paid to actually listen to? tim cook, who came right here in the low 90s and told you a pretty darn good story. he was right, and they were wrong.
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takeover talk is still a big driver. last night, apple talked about potentially making a larger acquisition that i thought they would be normally. when you think acquisitions these days, you think about content. then you think about at&t's pursuit of time warner. so some people are speculating once again that netflix could be a takeover target since apple can easily afford the approximate $70 billion that i think it would cost to buy netflix. but i say if they were interested in netflix, why weren't they interested at $25 billion or $30 billion or $45 billion? i don't think they're going to pay $70 billion for this company. so if you're buying netflix for a takeover, remember, we don't recommend stocks on a takeover basis on "mad money." let's not obscure the bottom line, though. if you're a company and the demand for your products is
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than not that the demand for your stock is exceeding the supply of shares, and that's why so many names were soaring. for many, the flip side is also true, which is why so many other companies are stuck in the short-term -- >> the house of pain. >> walt in florida, walt. >> caller: jim, general motors' price earnings ratio is less than four. is it time to buy? >> it's a great question. i wrote a piece today for "real money," which said exactly that, that i felt that at this point the cash flow is good enough. at this point the dividend at almost 5% is good enough. are good enough. owning g.m. at $31, i think is a correct call. ike in new york. ike. >> caller: hi, jim. thanks for taking my call. >> of course. >> caller: i'm calling about your view of tetra tech. that's the back story. given that the election could bring heavy volatility if trump wins or hillary takes both houses of congress and with the rate increase coming in december, would it be wise to do nothing until these events transpire? >> i see the stock at a 52 week
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that means i have to do work. i'm not able to render a judgment that i think is worthwhile for you. you are owed homework. and that's exactly what i'm going to give you. all right. supply and demand, it's really that simple. when you find a company on the right side of the equation, i say hang on to it. on "mad money" tonight, norfolk southern reported a surprise jump in profit today. from the auto market to energy, what's the outlook for american industry? i'll tell you if it's time to hitch a ride with the company. then when aretha franklin sang, r-e-s-p-e-c-t, was she talking about apple? she could have been based on how the analysts treated the company on last night's call. i'll explain. plus one of the top brands in your toolbox put together a big earnings beat last week, but the stock has had a tough year. is it time to get your hands
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its growth? stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. red 97! set! red 97! did you say 97? yes. you know, that reminds me of geico's 97% customer satisfaction rating. 97%? helped by geico's fast and friendly claims service. huh...
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what are we supposed to make of the railroad stocks? here's an industry that's been troubled for quite some time as some of the most important cargos like coal have been stuck in secular decline. back in january and february, the rails had gotten beaten down so hard that there was nowhere left to go but up. the whole cohort has spent the rest of the year gng now we're in a kind of very different space. the railroad stocks have made a big comeback, but has their actual business gotten better. norfolk southern reported just this morning, and while the stock market wasn't too pleased with these numbers, sending the shares down more than 3%, the fact is i think this was a pretty solid quarter. norfolk southern reported a 10 cent earnings beat off of a $1.45 basis with in-line revenues, and while their overall volumes were still down 4%, management said next quarter the numbers would be flatter. yet it didn't seem to matter.
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because investors are worried about the company's revenue shrinkage. let's check in with james squires, the president, chairman, and ceo of norfolk southern, to find out more about the company and where his company is headed. mr. squires, welcome back to "mad money." good to see you, sir. >> you too. >> i think people have to understand that there are very few industries where you could have chemicals down 10%, ag flat, metals and construction up 2%, automotive down 4%, paper down 6%, coal down 18%, and yet still beat earnings estimates. what goes on at norfolk southern that you can actually top what the analysts are looking for? >> we've been working very hard know, focusing on cost efficiencies and cost productivity wherever possible. that's led to our best ever nine-month operating ratio this year. >> you have taken out costs again and again. i would tend to think that there is no fat to norfolk southern. >> there's always opportunity through business process improvements and working our assets ever harder. we're very focused on productivity. that's been the source of a lot
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these cargos have gone down. how is that possible? >> we've got our service at a level that we think generates new business for us down the road. and it's supportive of pricing as well. we're offering a service product out there that the customer we think is willing to pay for. >> why is the customer more drawn to shipping by a rail than if they just say could do it by truck by itself? >> rail is its own special value proposition in the transport it's environmentally friendly, and the service has just gotten to the point where we're competitive in many markets with trucks. >> now, coal has been the bugaboo of the nation. even though jimmy carter said we're the saudi arabia of coal, we built a huge number of coal plants, they're getting retired rather rapidly. the ones that are left, a lot of them have been refurbished. is it possible coal can ever hit a bottom, or does natural gas have to go so high that it just makes it so that natural gas is too expensive and they have to stay with coal?
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sensitive to natural gas prices and we've seen that in the recent months with a modest run-up in natural gas prices. we've been hauling more coal. our coal volumes are also very sensitive to weather patterns, so the hot weather this summer really helped with our volumes. longer term we think there is a permanent place in the energy franchise in this country for coal. it's an essential part of the energy franchise, and we think we'll be hauling coal at some level for years to come. >> bears have been saying to me, jim, you're too bullish. housing has peaked. chemicals have peaked. trucking has peaked. now, some of those probably have peaked. in your mind, which of those cycles are not done, and which of the cycles maybe have started to roll over? >> the great thing about the franchise is it's so diversified, so a lot of intermodal containers. there's still room to run with intermodal growth. >> regardless, in other words, these are secular trends. >> exactly. and in the industrial products arena as well, we think there are opportunities out there. not a lot of vitality on the industrial side of the economy, but there are pockets of growth
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>> why do you think? we're all kind of in a bit of a funk. a railroad guy knows more about commerce than pretty much anybody i talk to. what do you think is going on? we have low rates. we have a different political environment. why are people not more confident? >> it's tough to say. you know, things have just been pretty stable, i would say, not exactly falling off nor much sign of an upturn, but fairly stable for now. i think, you know, that's a good thing. it doesn't seem to be getting worse. we have to work a little bit harder with volumes where they are. >> and in terms of excess cash, where's the best place to put it now? >> certainly into the dividend. we pay a solid dividend. for a long time. and we're using excess cash flow to buy back our own shares as well. >> talk to our people about the
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about sustainability. why are the rails something that if you do care about the environment, you should be rooting for? >> well, the great thing about our sustainability story is it's integral to the way we do business. we are a more fuel-efficient mode of transportation. so every ton of cargo that moves by rail moves in the most environmentally responsible fashion possible. carbon foot print by virtue of the nature of our operations. >> i don't know how many cars you can have these days, but your engines are so efficient. how long would it take from the longest train to go from one of your areas in the south to another versus what energy would be used if it was trucked? >> well, the energy expenditure
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freight rail because it's such an efficient form of transportation. >> that's one of the pledges we've made for this year is to ask guests who's got a bigger and smaller environmental footprint, and you've got a good one. that's james squires, chairman, president, and ceo of norfolk southern. the way i look at this is if the numbers are this good when things are just okay, imagine what they'd be when things get better. "mad money" is back after the break. >> announcer: coming up, alkermes has had a biotech bounceback, but is the comeback the sign of a long-term trend? >> how do you get the message across that not all drug companies are doing the same thing? >> announcer: cramer gets the answers from the ceo next. ahh...still sick, huh? i'll take it from here. i'm good. i just took new mucinex clear and cool. ah! what's this sudden cooooling thing happening? it's got a menthol burst. you can feel it right away. wow, that sort of blind-sided me. and it clears my terrible cold symptoms.
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let's get one thing straight. last night apple reported an unimaginably good quarter, but out of sheer hostility, the analysts in the conference call
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ho-hum, lackadaisical set of numbers. this was one of the more kafkaesque conference calls i can recall. the totality of the questions from these experts left you feeling like apple's in real trouble. yet just three months ago, almost none of these analysts would have believed that the company could possibly be doing this well this quarter. i was stunned by the analyst community's hubris and lack of respect for apple's management when i listened to the call. let me asked cfo luca maestri for help in figuring out the company's guidance. quote, given t target, end quote. what did i miss? apple gave conservative guidance but the simple fact with the iphone 7 is it can't make. then asks ceo tim cook, quote, what should we read into the fact that r&d has more than doubled over the past three years while sales growth was sort of a fifth of that, end quote? cook gave a logical answer about how they spent a lot of money on initiatives building their services business that generated $6.3 billion in revenue,
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seemed to care one whit about this. it gets worse. stanford bernstein, the man who stands behind the weakest buy recommendation in history, then pitches a couple of 100-mile-an-hour fastballs at tim cook. he asked why apple can't do better than flattish growth given its large competitor is in disarray? he then adds what does this really say about how investors sustained basis going forward and is it reasonable to think this is an ongoing, growing business for the company, end quote? whoa. apple just posted $46.9 billion in sales, substantially better than people expected 90 days ago when we thought it would be a terrible quarter. but the way he asked the question, you'd have thought the company has no future. once again, the cfo had to step in and explain that the numbers would have been even better but
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constrained because they didn't realize the new iphone would be this successful. of course no one thought that the samsung phone would be the fire starter. now, to me it almost sounds like the company is having crisis when i listened to this. but the contempt continued. he says, and i quote, tim, some investors are antsy that apple has not acquired new profit pools or introduced a financially material new product in recent years, end quote. so he asked, coat, does apple today have a grand strategy for what you want to do, end quote? he then suggests, again, quote, do you have any sense that we're kindin the technology and arguably what we call the next job to be done haven't yet aligned? so maybe in a couple of years, we will see this flurry of new products and it will match what people want to do but it's not quite here yet, end quote? in football, you know what that's called? that's called a defenseless receiver, 15 yards for hitting him and an automatic first down. at this point the damage was down. an exasperated cook seemed to have had all he could take. he answers, quote, we have the
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but as usual, we are not going to talk about what's ahead. i got to tell you the level of contempt and disrespect for apple's management makes absolutely no sense to me, especially not when you consider just how positive these tech analysts can be about microsoft or oracle or ibm. microsoft's had the same amount of revenue for the last four years yet all you heard on the conference call was nothing but back slapping. oracle has had about six years of flat revenues, but you heard more than your fair of congratulations on that last call. the ten or of ibm's last call and several before that was far more respectful. apple is held to a higher standard. i don't know what's wrong with these analysts request what i call their faux buy recommendations but maybe they could benefit from some therapy. my bottom line.
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say is congratulations on a good quarter. jeff in new jersey, jeff. >> caller: hi, jim. how you doing? >> i am doing real well, partner. how about you? >> caller: i'm doing fantastic. i'd like to ask you your opinion on amd. since the earnings, you know, i know they're looking both on reality. what do you think about the >> it's funny you mentioned this. i was talking to my team this morning. we've got this terrific team that works with me, and we were all kind of marveling that advanced micro did a very big equity offering, debt offering and stock dropped to the low sixes, and then snapped right back. we were shaking our heads. i think it shows that business is quite good there. by the way, business is good at texas instruments. a lot of semiconductor companies
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connie in illinois, please. connie. >> caller: hey, jim. first time caller. long time listener. love your show. >> thank you. >> caller: i've owned ibm stock for many years and watched it go up and down on a roller coaster. do you feel the stock is ready to be held, sold, or what's your opinion on it now that they're moving more towards the cloud? >> what was the stock? i'm sorry. >> caller: ibm. >> okay. here's the problem with ibm. until the revenues actually grow, all that movement that they have toward the cloud is going to be for naught. i think that they can and when it happens, the stock will go substantially higher. but if it doesn't, then you're really dealing with a stocks that in a $150 rut. edgar in florida, edgar. >> caller: hey, jim, how are you? edgar in florida. >> great. >> caller: i'm new at investing and i wanted to thank you for everything you do. >> thank you. >> caller: i came across this stock, and it took me to school. acia. >> yes. there's two of them we're going
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these are both companies where they did a sliver offering of ipo. the stocks then shot up to unbelievable heights. they were heavily shorted. the companies did secondaries and they collapsed. the stock did what's called breaking the print. it's now down at 87. it has to spend time in purgatory just kind of churning. twilio did the same thing, didn't hold the print, but i think that one's going to come back faster. i need you to ignore the analysts static. i remain unfazed. i think you should own apple. don't flit in and out of it. much more "mad money" ahead. shares of snap-on are down 10% year-to-date. but could last week earnings signal it's time to snap up the stock? i'm talking with the ceo. then third time's a sharp. shares of alkermese soared after its twice failed depression drug produced positive results. i'm talking with the ceo. and all your calls rapid fire in
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how can you tell when a once red hot stock has lot its momentum and is really ready to roar higher again? that's the question we need to answer when it comes to snap-on incorporated. that's the maker of high quality tools and diagnostic equipment for auto repair shops and a number of other industries. steadily higher almost in a straight line, snap-on stock hit a wall in 2016, now down nearly 10% for the year. however last week the company reported a terrific quarter and it seems like the stock might be ready to get back in gear. slightly weaker than expected sales. has the stock gotten its groove back? let's take a closer look with nick pinchuk. he's the chairman and ceo of snap-on. welcome back to "mad money." >> thanks for inviting me again.
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thank you. >> thank you. now, i often talk about how i don't just like growth. i like organic growth. and this quarter delivered a level of organic growth that, to me, said this is the right time to buy the stock. if you could explain to people what the difference is, why organic growth is better and what it means long term for the company t would be really helpful. >> for us, it's our principle value creating mechanism is when we observe work and figure out how to make it easier and translate that into great products. rolling out products that people really want. a great example of this right here. can i -- >> sure, please do. >> it's our new thermal imageer. this just came out. now, we have diagnostics, you know, laptops for cars that when you plug them in, it will tell you what all the electronics say. but sometimes you want to shortcut it. we have a database in electronics that has 800 million records that will say don't worry about what the electronics are saying on the car.
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that's one way to shortcut. another way to shortcut is to just look at the part, look at the section that seems to be a problem and see the heat involved. we have in this device, oh, reference data which shows what a good part looks like and a bad part look like. and what's important about it, for example, if you're hearing some squeak inside your differential, for example, you usually have to warm up the car to get that happening. all you have to do here is run it for a little while. you can shoot this with this device, the thermal imageer, and you see that iar become out of spec in terms of warm, you replace it right away. it cuts time and saves the technician a lot of time and money. >> you developed that, but -- >> it sold out? >> sold out. >> we've got one right here. this is something very untraditional. on october 17th, you actually bought a company, car aligner holding. that's a little different from developing something.
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one of those runways for growth for us is to expand with repair shop owners and managers, people who are running the shops and are reaching other shops. one shop where we didn't have such a great presence, one type of shop, was collision shops. now, we bought this collision company, car aligner. 40% in the united states. 42% in the united states, 29% in europe. 10% in china. you know, that kind of company. here's the thing about collision that we like. it's changing. and changing helps -- >> how is it change something. >> different materials. you used to be -- a car used to if you'd get dinged, you'd put it on a stretcher. you'd measure it and pull it into shape. now you have to something more sophisticated. you have to pull it into shape, but you also have to chop it up and bind it and fasten it together. different types and car aligner has the best type of technology for this. and with snap-on technology behind it, it will become even more popular.
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>> snap-on people who are now calling on auto repair shops will also call -- i'm not talking about the franchisees, but the people who are selling to the owners and the managers of the shop, the facilities of the shop, the big equipment in the shop, the capital expenditures in the shop. these collision shops are opened up to us. there's another factor in collision that works very well for snap-on. more and more repairs being done in the collision shop because when you're damaging a car, you're bumping a fender, there's a lot of technology in those fenders that needs to be repaired. snap-on has the products right that. >> what the heck is this thing, neck? watch out. be careful. >> this is a pwz pipe wrench. it's not a pipe wrench. >> pwc? >> pwz. this replaces the traditional pipe wrench. we often say roll the snap-on brand out of the garage. the technicians in those places really love snap-on products. here's an example where we've
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to move these big fasteners and you'd have to screw the pipe wrench up, roll it, and then unscrew and then reposition and screw it again. this thing, you just move it. you move it back, put it in place, screw it, move it back. >> enough guys say that they didn't have something that you decided to make it? is that the way it works? >> we observe the work and make ie repositioning is easier and these serrated edges are perfect. no slippage, better safety, more efficiency. >> that's mechanical. and this is an internet of things device. >> yes. what it is, what it's done, what we did here was we used thermal imaging technology, and we adapted it specifically for the automotive repair garage. the range on this baby is minus 4 to 840 degrees fahrenheit. the kinds of things you'll see in a car. and then when you're looking at, let's say, misfiring cylinder, you can look at it and press a button here and it will tell you
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be able to tell whether there's something wrong with it. >> look, i love a man who has passion for his job and his business, and i love good dividends, which you pay, and i love higher earnings and organic growth, and you've got that. nick pinchuk, he's the president and ceo of snap-on. "mad money" is back after the break. pampers. unlike ordinary diapers with two layers, pampers have three absorbent layers to stay up to three times drier, so babies can sleep soundly all night.
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>> announcer: lightning round is sponsored by td ameritrade. >> it is time! it is time for the lightning round! that's where i take your calls rapid fire. you tell me the stock. i tell you to buy, buy, buy or
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we'll play this sound -- [ buzzer ] -- and then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." let's start with craig in kansas. craig. >> caller: booyah, jim. i am interested in dollar tree. buy, sell or hold? >> you know, the stock has been in freefall along with dollar general. i'm beginning to wonder if they aren't ready to bottom. the better one to do is buy a stock called tjk. my charitable trust owns it. it's discounted and i think has a better stream of revenue, some stores. greg in maryland. greg. >> caller: how are you? >> all right. how about you, greg? >> caller: good. sorry to bother you. i appreciate your time. ticker mack. >> it's been probably two years since we've looked at merrimack. that means we've got to do a refresher before i just mention it. that's what we're going to do rather than just cuff it and tell you i like it. let's go to ben in texas. ben.
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>> caller: owens-illinois. >> i've been waiting for that. i love the glass business because it's recycling. do you know that in certain parts of latin america, they use jars from owens-illinois 30 times. glass should be more sustainably viewed in this country. i like the story here. steve in california. steve. >> caller: ba ba ba booyah, jim. >> nice. >> caller: hey, jim. i am buying stocks for my roth i am in it for the long haul. you recently recommended kb homes. i bought it. it's gone down. >> when i first recommended it, it went up back. it's since come down as people start talking about the december rate hike, and i do believe that i like it. but so far, every time i hear rate hike talk, the stock comes down. i think after the election, it might go up. let's go to robert in virginia. robert. >> caller: yes, jim. i'm retired and i bought pfizer
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>> you'll be fine with pfizer. 3.7% yield. good balance sheet. after the election i believe it makes a comeback. let's go to richard in ohio. richard. >> caller: thank you, jim. alliance data systems. >> i'm concerned. it's been a while since that company has put up some good numbers. it is in the dog house with me. missouri. andrew. >> caller: booyah, jim. >> booyah. >> caller: love the show. >> thank you. >> caller: i'm a young investor. my stock is dlth. duluth holdings. >> i know there's a lot i'm saying this about. that stock is up 80%. i've got to do more work on that. i got to figure maybe it's run out of steam. michael in vermont. michael. >> caller: booyah, jim. >> booyah. >> caller: so i love money.
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i got a question here about fast. >> i mean we've got a panoply of unbelievable industrials right now. stake a look at danaher or illinois tool works. i thought that was oversold. maybe they didn't do as well as i thought. if you put that one away, you'll do better than fastenal. chuck in california. chuck. >> caller: jim, buy, sell or hold mgm growth properties? >> oh, man. c stock still has a 6% yield? why do i say that. because it's the stock has gone up enough that it only yields 5. i think mgm properties is terrific. victor in utah. victor. >> caller: ba ba booyah, mr. cramer. i need some help with front line. >> no, you don't because i'm not recommending any of the oil carriers. nothing. okay? those stocks have cost our viewers too much money. very large crude carrier.
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that, ladies and gentlemen, is the conclusion of the lightning round! >> announcer: lightning round is sponsored by td ameritrade. ahh...still sick, huh? i'll take it from here. i'm good. i just took new mucinex clear and cool. ah! what's this sudden cooooling thing happening? it's got a menthol burst. you can feel it right away. wow, that sort of blind-sided me. and it clears my terrible cold symptoms. ahh! new mucinex fast-max clear & cool. feel the menthol burst. and clear your worst cold symptoms. start the relief. ditch the misery. let's end this. take one of those pillows and take a big smell. they smell really fresh. what if we told you we washed these sheets 7 days ago. really no way downy? downy fabric conditioner. give us a week, and we'll change your bed forever.
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it's time to talk about the incredible and deserved comeback at alkermese, the drug delivery company that also develops its own proprietary medications for mental illness, multiple sclerosis. here's a stock that had a tremendous long-term track record rocketing higher year after year. then in late january, it fell off a cliff with the big new depression drug failed to meet the primary end point in its clinical trial. the stock began to make its way higher again in recent months in part because alkermese has a bunch of other franchises. the company's long acting anti-psychotic drug. this, i think, solves some of that problem. but it was last week when the company announced some very positive clinical trial data for the same antidepressant that it previously failed to meet its targets. in response, the stock surged close to 30% in one day because this depression drug seems to be incredibly effective. i wouldn't be surprised if it's got more room to run. let's dig deeper with richard pops, the ceo of alkermese. mr. pops, welcome back to "mad money." good to see you. have a seat. how it happens, first a drug
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write us off. this could be good. and then it does work. what occurred in that period, and why is this drug different from the others? >> so first of all, doing clinical research in depression is incredibly difficult because when you enroll patients in a clinical trial for depression, many of the patients just get better by virtue of being in the trial itself. it's called the placebo effect. so when the study failed in january, we looked at the data, and the data always tells you the truth. in those data, we saw a clear signal of activity of 5461. we just hadn't designed the trial exactly the right way. so we went back to work, designed the trial slightly differently, the ongoing study, and sure enough this fall, the drug continues to reveal itself. so there's nothing actually new. it's almost like we're dialing in the radio station. you can hear the static, and you dial it in, and that's what we're figuring out. >> if that's the case, how big could the market be, and who
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nothing available? >> well, the depression market -- and i prefer to think it not in terms of market terms, but people. there are 11 to 12 million people a year who go on antidepressants, a third of them don't get relief from the ssris. so the amount of suffering from depression is extreme, and it's also a lethal disease as we all know. so our idea was to test this drug not in the patients who are getting some relief from the ssris. in fact we deliberately have chosen to focus only on those patient who's are not getting adequate clinical relief. so we're testing 5461 in those resistant patients. >> how about the medical makeup? is there something that provides a degree of a high but is not addictive? >> there's a long literature on the use of opioid medications that affect mood. the problem with opioids is they're addictive.
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potential while still triggering that opioid system response to mood. so far that's proven to be correct. >> that's the holy grail, richard. if you could do that, that has applications through many different problems of addiction in this country. >> well, we hope so. but as you know, this is a deliberate, slow, consistent process. >> i'm not trying to get people to think anything up front but you know how concerned i am about the notion of opioids, how this is the great epidemic in this country. for some reason it's not talked about except for by you. >> that's right. you know, one of our hypotheses is many people take opioids not for physical pain but for psychic pain.
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whole field of pharmacology for others to interrogate as well. >> let's talk about vivitrol. everybody has got these stories that you read. black tar heroin, cheaper than opioids, hospitals shut down the opioids, doctors won't give them to you. people resort to what could end die of an overdose. where can vivitrol fight and be in this whole terrible arc of tragedy in our country? >> what's exciting to see, and you identified this years ago, is it has a real role to play because it's the only medicine that blocks the opioid receptor and prevents relapse to opioid dependence. it's not just heroin not, it's fentanyl, carfentanil. this is ravaging communities across the u.s. so in many ways, it's getting
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>> now, your company i've always regards as being incredibly responsible, but it's a political year, and there are broad brushes being painted. how do you get the message across that not all drug companies are doing the same thing? >> i think you do it first by behaving responsibly, by doing the right thing, not overstating where you are, pricing your medicines fairlyd just feeling like the medicine itself is the solution to all problems. it's part of overall treating a patient, and all that needs to be brought into consideration. >> can you in your case say, listen, this recidivism rate, i want you to talk about that. there are people being incarcerated because they're addicted to drugs. if you could get them to be not addicted, they might not be repeat offenders. >> that is exactly right. our criminal justice system is replete with people who have chronic mental illness and addiction. what we do is serially
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medications, we should be treating these patients more humanely. when we keep people out of prison, they can have jobs, be with their families, pay taxes. it's all good. >> your company has continually done great things. i was so thrilled when i saw the results. that's richard pops, chairman and ceo of alkermese, a guy who's doing the right thing. stick with cramer. "is that credit karma again?" "just wanna see if my score changed..you wanna check yours?" "scores don't change that much. i haven't changed." "oh really?" "it's girls'night. ah huh." "they said business casual." "i love summer weddings!" "oh no." "yeah, maybe it is time. maybe i should check my credit score." "try credit karma. it's free." "oh woah. that's different."
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after the close, texas instruments reports a very, very good number. we had a caller earlier talk about advanced micro. the semis are still a decent place to be, and the one with the most momentum remains nvidia. i think that stock is a terrific stock, but there are bargains all over the place. you know what, don't forget avago is good and i still think
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bull market somewhere. i promise to try and find it just for you right here on "mad with just 12 somedays to go, new polls giving us a glimpse of where this election is headed. while there's growing concern over potential election day violence. >> isis squeezed from all sides as the >> a drag race goes terribly wrong as four die in a violent crash. >> nen, to the frantic scene in boston as frantic commuters escape a smoking train. >> finally, to a magic moment for the 49 victims of the orlando pulse shooting. >> good thursday morning. i'm ayman mohyeldin. >> i'm frances rivera. moving closer to election day and poll numbers.

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