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tv   Mad Money  NBC  December 16, 2015 3:00am-4:00am CST

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[appllse] call me or tweet me @jim cramer. sometimes people just need to realize that it's not the end of the world. when the thesis gets rebutted in
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rally. even if we don't know what the fededel reserve is going to say tomorrow. that's how the dow could gain 156 points today. nasdaq climbing .87% and held back by apple there. despite the fact thahawe're headed into the most monumental fed meeting in nine years. when going to start the course of rate hikes that could be either gradual or superior. conclude that they know something that's been lurking out there. and it means complacent and there's trouble brewing and if we get a rate hike when i imagine we could see continuation in today's rally. speaking of today's rally what made us feel like the world wasn't endg? what concerns were eased in the last 24 hours?
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first the junk bond market pressure seems to have finally gotten a reprieve. we know w enty of junk bond funds own very distressed debt which may be mismarked. a term that implies these firms holdings are overstated in value. we know that many of these distress debt mutual funds were sold to individuals that may not have had the sophistication to know they could lose boat loads of money if they tried to pull out of the investments at once. if they're filled with similarly illliquid investments then so be it. hedge funds aren't meant to provide regular investors with a chance to easily get their money back. they're locked up. cat get it whenever you want. they understand the riskiness of hard to get in hard to get out instruments. but mutual funds are different. they're supposed to be procted
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to be liquid but the idea that you can sell your shares in them whenever you want yet you have all of themaller investors that want to get extra yield by investing in junk bond mutual funds and they didn't know the risk. they didn't know things were all that bad until the managers got hit with hefty withdrawals like we saw with the credit fund that banned redemptions. when this mutual fund barred further redemptions it caused a panic. and other similarly horrendousus funds s at really had no business offering these kinds of funds to other people. government wake up. we feared coming in discovering there were a raft of other high yield funds that were going to have to ban redemptions because of losses. we worry they might be lurking everywhere and they could bring
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however when there were no bank runs on mutual funds this morning and no new stories of woe the market left a sigh of relief and that brought fires into the market. make no mistake, i am totally and completely outraged about unscrupulous money managers jamming ordinary investors into the highest risk, least liquid investments possible. tremendously horrible trash. not junk, trash, and never revealing that there could possibly be a jam up let alone mentioning the inability to price this merchandise to begin with. government, are you listening? and that is to be distinguished from the collapse to bring down the entire market. turns out that potential may be more limited than we thought and one of the reasons is there aren't that many money managers out there e at created these absurdly mutual funds and piled
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investments given that it is energy relating it's a god send to these markets even as it might not be so hot for you the consumer. we are so worried about these oil and gas companies that their troubles spilled out yesterday into the banks which should go up ahead of the rates because they are going to make a lot more money. by defaulted oil and gas loans. remember all the defaulted housing loans. loans out there. when crude rallied today the worries recede. plus monumental rallies that made us feel that the worst was over for this business but listen to me the agony continues for the smaller companies with stressed balanced sheets and anything that reliesesn natural gas but the big oil stocks
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august. have you noticed that? $39 is when those stocks hit the low. oil dropped to $35 earlier this week. exxon was at 68 in late august. now it's at 79. chevron was at 69 late august those ststks lead the price of crude down. maybe they're leading it back up. have seen the boom. when you consider that we haven't seenenuch in the way of consumum gains, more on that later, it's reassuring that you think that the credit losses might not be so often. that's good for the junk bond funds. for example disney was weighing on the m mket lately thanks toto combination of espn subscriber losses and worries actual whispers that star wars might not be as big as we thought but last night's premiere was giving it press. it's a buster for real bell
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pressure or how about valeant. they received a lot of press for price increases. today announced a huge deal with walgreens to provide medicine. people figured that valeant stock must be buying now that it's business had a seal of approval. people failed to react to any of them causing someone to wonder whetr the asset class had become hope leslie overvalued so our $1$1billion buy back coupled with a dividend boost and finally it was beginning to feel like whenever the company made a big acquisition ititent it down. yesterday for example we had the rubbermaid stock annihilated.
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last few years at least. one of my favorite stocks, i talk about it a lot. 6% on the slight glide down. my advice, three days and then buy three of them. that's what my charitae trust qends to do. and we know that if the fed says whatever the high frequency traders who now dominate the market, viewers negative tomorrow. it isn't actually negative at all. there's the bottom line it's a market crazy enough to go down on a benign fed statement. we can still rally when we get the all clear that these junk bond funds aren't big enough to bring it down and that's wpat
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john in massachusetts, john. >> hey, jim happy holidays to you and your family. >> same. >> couple of months ago you ran a spotlight on horizon pharmaceutical and did research as you always say and bought the stock and recently just bought a private company. i wanted to know your thoughts, buy, sell, or hold. >> this is a company that grows by acquisition and it had the last of the big acquisition turned down and that really hurt the stock. plus it was also linked metaphorically with valeant. i think valeant could be out of horizon can continue to go higher. >> hey, jim, how are you? >> i'm all right. how about you? >> pretty good. my question was in regards to amba. they reported earnings and beat on eps and revenues but issued conservative forward guidance.
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sales and commercial applications do you see any strong catalyst for the work in the next few quarters? >> i'm growing cautious in the semi-conductors. i liked the simple ones. i like intel for instance. i just think -- and i like lrcx where we had the ceo on recently. that stock is going, i believe, higher. the word of the day, crudeness. crudeness. the market could demstrate some wild reactions and that's why you need to be on your toes for tomorrow's fed announcement. oh, wall to wall coverage absolutely. maybe tune into the show too. i'll probably have so things to say about it. oil soared nearly 10% since yesterday's low. that action may be exciting but it's what it isn't doing to the economy that should have your attention. i'll explain that next. then restoration hardware. could the drop signal a time to shop? and nine days until christmas. i'll going off the charts to see
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on your wish list. why don't you stick with cramer. >> 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. olay regenerist renews from within, plumping surface cells for a dramatic transformation without the need for fillers your concert tee might show your age... your skin never will.
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as we fret over the bad dedes coming through in the oil patch we have to remember that we are still not seeing any companies that are benefitting from the tail wind of lower energy prices. i find that astonishing. all americans and u.s. based companies literally cut in half and it's just not translatink. we know now that it hasn't been. and it is goina to be hot in december still it's not as good as you expect. $2 gasoline. the lowest natural gas prices in 17 years. you think that the restaurants would be jammed. so how come there's cheaper oil prpres. people don't believe the car price is sustainable. we have been fooled so many titis by the roller coaster
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taken in. regular commuters don't sit there tick by tick. a person doesn't me 50 miles away for a new home embracacg a long commute if he believes the price at the pump is going back to $4. second we're still scalded by the great recession. we hate that. we're cheap. we buy store brands. we like to save. we don't want to be caught trying to make payments to those we can't pay back like people during the housing crisis. there's a sense if you go bankrupt in this country you can't be forgiven because you don't get credit. finally your expense structure is worse than you expect. there's s r fewer new homes anan apartments constructed than we thought now. credit is still tight which means only rich individuals and well endowed companies can build living spaces or afford them so rent keeps going higher and higher because land lords can get away with it. i'll always shocked by how many
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rentals and the rent is insane. the cost of health insurance is out of control. we can't seem to cap it. we don't have enough competition the affordable care act is all affordable for all but those that have no money. i will say it's faing unless congress tweaks it and that's not going to happen because republicans are busy running if they fix it there's nothing to run against. i keep waiting to hear they're getting the energy wind fall to the bottom line but there's total silence about the upside. i can't name a single company that said we got a big benefit from the lower energy costs. it's almost as if no one is passing the costs on. they say they have had to cut prices for chemieals. still when you look at the big users for energy, the proprietary chemical makers, the miners, you hear nothing we're stuck with the negative side of
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no noticeable positives. the money saved on energy cost isn't being spend on a consumer level the savings from cheaper oil are not working their way the way we thought. that's a huge negative for the economy versus what you would expect at this point. that expects the crudeness of the market. only rallies hard when energy goes higher. confounding cause and effect as concrete benefit from all the spare change you're getting at the gas station. >> thanknkfor your help. i'm considering skechers or nike. in this case what do you think? i kind of like -- i'm sorry i happen to like both companies.
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they're doing incredibly well in china and skechers is down very big from its high but the problem is if we just look at the high we miss the fact that skechers despite a lot of people complaining is up 62% for the year while nike is only up 33% so they're both h nners. i like them both. i want you to feel comfortable with either one that you buy. nike is having great, great sales. it i itrue that skechers d d not have the perfect quarter. i think skechers is a better value. derrick in texas. >> i have a question about whole foods. i would like to lower my cost basis. had a rally on friday. wondering if you think that's going to pull back and when a gogo time would be to bubuin it's 1,000 dollars per square foot. i don't know when ththactual siness is going to turn. like what i said with lululemon i can't recommend a business on
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i think it's stabilize. between 29 and 30 has been the right t ace to buy it and thth's okay with me. from the gas pump to the board room we haven't seen the savings from lower oil prices that you would expect and you need to realize that's a big drag on this market. on mad tonight as the holiday season shifts into high gear does hasbro or matel have more game? and then the bio tech sector helped the market head high today and i've got the ceo and tonight's rapid fire edition of
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what's happened to the stock of restoration hardware. it's art gallery style stores. it was to the point where it was trading at an all time high six weeks ago then it got worse when the company reported a mixed quarter last thursday.
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long sterm story. there's short-term results too. overs this time they talked about the environment and over 7% comparable stores growth. any other retailer accept this one. stock fell from 93 down to 79. now trades at 20 times earnings estimates has it been punished enough? maybe too much? don't take it from me. he's the president andndeo and find oututore about the quarter and the company's prospects. welcome back to "mad money". >> thank you. >> i never thought your stock would be cheap on earnings but people as you predicted you would say we'r'rgoing to experiment and do different things. get out of my stock if you can't
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billion goal, still on target. >> if anything we're more confident than ever about the long-term strategy. >> we just l!unched what is the most exciting business i havav been associated with in my cacaer. >> right and you've got to know if you go to the website you can see, if you go to the video, he was kind enough to do a video, you can see e at restoration modern and also team which i thought was very cool. terrific closer to my heart in some ways. you're the only person that tually called out yellen. she is going to speak tomorrow. look there is some weakness. texas has oil. that the strong dollar has hurt miamam now these are things that i would not necessarily expect to
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but you have big ticket items. >> we're trying to tell the truth and it's importantnto be transparent. there's no relationship here to milton freedman. >> you were very benign. maybe you ought to tell us what we're seeing. you're the boots on the ground. >> absoluty. so clearly there's some macro trends and we talked about those and the sequential drag on overall company business and we said we believe that is creating a more promotional environment in our industry and acquisition is key and maximizing the top
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we're going to play to take market share and try to maximize our top line and our earnings and like how we're playing the game so far. >> but you're seeing fantastic numbers. >> all the galleries are above our expectations. we could not be happier and in chicago and we always said we wanted to blur the lines between residential and retail and the next logical progression was to blur the lines between home and hospitality. to create a deeper experience for our customers and we integrated a restaurant, a wine vault, a pantry in a store in a way y at no one ever has and it's creating an experience that's better than anything you have ever seen and you mention the lines.
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neighborhood. >> it's not in a retail neighborhood at all it was our test to say could we do a truly free standing store and we said this is our field of dreams. if we build something special we thought they would come and they have. we showed in the video the lines we have on saturdays and sundays just to get a seat in our cafe and the test drive into the gallery has created the best performing gallery to date. >> you pay homage to a man i'm respectful of but he basically says bricks and mortar. bricks and mortar are fabulous and i know other than apparels
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concept is alive and well. >> it's one of the most misunderstood parts of retail today. look, everybody is focused on the web as they should be. but it's not going to completely change the industry. the retail industry from a store base to that point of view it's still the biggest and what people i think get confused with here, they're focussing on the transaction not the interaction and we believe it's the inner action that's important. where does the customer sbr act with your brand. where do they make the decision to buy? and where they transact you have to be ambivalent and agnososc but everybody is focused on the me trick of where are they transacting? and they're not looking at where is the customer interacting. if they interact at a retail ore and buys at home online.
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and goes into a retail store and transacts there, who cares. the key is creating a multidimensional platform where the customer can interact where ever they want and transact where ever they want. >> i know you embrace and most recently if yoyogo to the website, you talk about the notion of creation and now hospitality but you' still bound by the four walls of the spreadsheet in the end for your stock price but not necessarily for your vision. >> well, you knoo, i don't think you can be bound&by anything. at the end of the day people wiwi pay for performance and history has proven there's only 18 companies every ten years that reach a billion dollarsrsnd grow earnings for 20% a year for the next ten years and those companies create real long-term value and the few great companies and that's what we
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going to make some decisions in the short-term that might be misinterpreted because they're based on a longer term view of creating value. >> and janet yellen should listen. >> let's keep our fingers crossed. >> right. that's chairman and ceo of restoration hardware. look at the videos before you think about buying it. you need to know how exciting this is but that it's a long-term view. aspirational b b stock. "mad money" is back after the break. >> coming up, hasbro versus matel. two of the largest toy makers in the world square off in a battle. with the release of star wars not too far, far away, will the force be strong with hasbro this holiday season? or is matel the toyou want in your stocking? crcrer is playing in the sand
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the charts, next. >> i knew that there was global interest in star wars movies. while we had strong instincts about level of interest and what it might do we had no idea and i will say to you in all honesty standing here tonight interest in this film worldwide has exceeded thoho expectations how
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year and heres some other piece and probably toys from both of em has that. i'm not saying bribery is e best parenting policy although there's no doubt i can tell you that it's gotten me some results. if you ask me how to play the toy space i would have said buy hasbro. they're the best licensing deals$% and movie ties including deals with disney which means they get to sell disney toys along with star wars merchandise which is already ahead of plan and action figures for the marvel movies too. they even turns one of its toy lines transformers into a successful series of movies. mattel on the other hand is a old school think barbie, fisher prpre, hot wheels.
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wheels. for a long time these movie tie ins meant it was the name to own in the toy business and that's why the stock is still up 26%. >> but this is a huge but. lately they have reversed dramatically. so far they have gone higher giving a monster 29% gain. hasbro down 4% during that exact same time span. can the new trend in the toy stocks continue? have they finally ran out of has mattel gotten it's'sroove back? whenever you see this profound change in direction it's worth consulting the technicals to try to clean whether it's a temporarmove or the new normal. 's a terrific technician. he's about real money.com and we have to figure it out if this profound reversal in toy stocks has staying power or have you
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matel is going from loser to leader. my least favorite of all the transformers. by the way. this new pattern is bbout to continue with matel leading the way. hasbro lagging behind. so take a look at the daily chart. over the past month this stock marched staedly higher in a tight bullish channel. just last week matel rallied through the longer term and yesterday broke out above the top end of the bullish channel. it's so strong it created a new upward channel. it also points out the strength, the rsi or an important momentum index and it's cleared 70 for the first time since april which makes him believe they're far from finished. beyond that take a look k the boboom of the chart. you'll see two very important
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there's the commodity channel index and get this, the force index. we haven't talked about t at one. the commodity channel is used to identify new trends and it's been making a series of higher highs. as for the force index this is an indicator that measures the level of buying or selling pressure and in matel's case it's looking real good which suggests some are still piling into this one. that'shat the spike up is. i hate to say it but the foror is strong with mattel. i wish i didn't have to labor the star wars references but that one was so obvious couldn't ignore it, right? i'm an american grafiti fan. w about the stock having explosive upside but still down pretty substantially year to date which i iwhere the opportunity is coming from. it's what he likes to see in the weekly pick and solid support around 25. we can see that. there's no real resistance so
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that's the cmf this is a 21 day o oscillator which means it's another way to gauge the level of buying or selling pressure. how much do people want it? it's looking good. it's made a series of higher highs and finally swung into sitive territory. higher lows and higher highs. swung into positive territory right here a few weeks ago. combine that with the strong reading on the relative strength index and i'll give it to you again. this is the longer term rsi. look at that. this book momentum and volume are squarely in the corner of the bulls. while this sounds like a sign fiction thing the vortex indicator is a technical tool used to spot old trends or new ones. it measures distance between highs and lows to create a green up trend line or down trend line.
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line is breaking away from the down trend line which says the positive trend in this stock is only getting stronger. i'm going to start using this en we do the technical tuesdays. matel is checking off every single short-term bullish box imaginable. he sees the stock going wo 30 in the near future which should giveveou a pretty quick 10% gain. i'll take that. how about has, all right. take a look at the daily chart. different entirely. you can see how long matel has been roaring, hasbro is stuck in a real nasty down trend. last week it broke down below it's long-term 70 floor. however the stock moved into extreme oversold territory on the e i and commodity chananl index and relative strength index. that means collins says it's probably due for a small relief rally maybe going into star wars being opened and that's probably going to happen the next couple of days. however any strength in hasbro is likely to be short lived.
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much past $70. that's less than $1 from where it is right now. why does he dislike hasbro so much? check out the longer term weekly chart. the short-term 8 week moving average is now trading below it's 21 week moving average and that makes a lot of chart followers want to jump ship. that's the blue red line. the stock had a nice run in 2015 but this development makes people want to take profits while they still have them. lock it in before year end. meanwhile the relative strength is trading lower. trading lower. just dropped in and this is the inverse of what i showed you with mattel, right? they're trying to get out of the exit. it has the floor support at $68 and that seems to be holding. the stock could fall through that level and go to 64 or maybe even 57-50.
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might get a pop from the star wars premiere but doesn't see it rallying past 73 which makes this a four point up, 12 point down scenario. that's an awful risk reward. let me give you the bottom line. the stocks indicate mattel stock is going to win this this holiday season. hasbro is likely to keep giving up the gaiai. collins, i wouldn't bet against him. stick with cramer. holy night t sleep in heavenly peace sleep in heavenly peace enough pressure in here for ya? i'm gonna take mucinex sinus-max. too late, we're about to take off.
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>> it is time for the lightning round.
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time for the lightning round. >> yes. long time viewer, first time caller. >> i love steve wynn and what he has built but mgm has that balance that i need so mgm is the play. joe in missouri, joe merry christmas and happy new year. . >> same to you. if i had to recommend a steel company it would b bnew core but i'm not going to because the metals in mining remain a very weak place. look at kmt and what happened when they preannounced down almost $5 today on a 25 dollar basis. ben in texas >> booyah. >> booyah. looking at ford. good pure yeen sales but they're at a 52 week low. >> still got a lot of latin
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don't like that. i'm woied about honestly auto sales peaking in this country. i'i'not going to recommend the ststk. how about doug in mississippi, doug. >> booyah, jim. >> booyah. >> hold or sell cve. >> oh, boy that is not one of my favorites. it's down 37%. maybe we wait as peoe start thinking oil goes to 40. sell, sell, sell. >> let's go to mike in illinois. >> jim, this is mike calling from illinois. hometown of ronald reagan. >> you look great. talking about immigration. i loved it. am i allowed to say that? >> i'd like to send out a hawkeye booyah to all the fans. >> absolutely. >> thank yououor it. i'm a long time holder of oracle. i'd like your opinion. >> it's fine. i was looking at it today.
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run company that will do okay over time. i do prefer crm. let's go to john in florida, john. >> hi, it's a privilege to meet you. >> same. >> thank you for your unue service to our country. >> wow. >> i have owned a stock which has been excellent for years pays 6 plt 8 dividend even as it continues to decline. etb. >> no, don't let it go. this is the most conservative partnership and it's really, really good and i really don't want you to get rid of that thing. it's being pulled down by the giant etf and it's so ugly out there and takes great courage but hold on to it. andrew in new york. >> booyah. >> booyah. >> i want teva. >> i'm not a big fan of generic
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i like what allergan i idoing which is getting rid of them and merging are pfizer and i continue to recommend and own allergen. didn't do that well today. i'm m rprised. that ladies and gentlemen is the conclusion of the lightning round.
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rocking into the stratosphere from its ipo price of $18. all the way up to $51 and change onts first day of tragd. since it's been reallylyolatile the stock is ticking down. this company has a lot going for it. it's all about creating a new class of medicines. they treat diseases and that's when the bacterial eco system in your digestive track can cause you to get extremely sick. in order to treat these it develops combinations of microbsbs that will make them healthy again. it's a pill that prevents cpi. inflammation of the large intestine that's the leading cause in the united states. the only treatment is antibiotics and they also kill the good bacteria in your gut which leaves you open to getting infected all over r en.
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but getting it back to a electrical healthy equilibrium. it could have more indications. company announced they're starng a phase one trial of another micro-based drug. this is a gigantic market. it inflicts 700,000 people in this company. that caused the stk to shoot up $3 or 8% today. welcome back to mad money. good to see you sir. this press release about the initiation of the phase 1-b clinical trial, for mild to moderate ulcerative colitis. this disease is not being treated as effectively as what you might be able to offer. >> yeah, it's really important, jim.
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united states s d around the world. people get what's called an auto immune disease where their immune system is out of whack, in this case in the large intestine, diarrhea, fever, abdominal pain. even people that need their colon taken out or are dying from it. the good news is there's drugs. the bad news is that all of ese drugs suppress your immune system. these are the people i used to see when i saw patients as an infectious disease system. they all came in with infections opportunistic tumors. so what we have to think about is how do you develop a drug that will treat ulrative colitis but could do it without immunosuppressions? so we have a drug, 287. that is in clinical triaia that we announced yesterday in ulcerative colitis which we
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suppressant. >> this is a form of truly disruptive decurrent medical paradigm. the way we treated people for years with this isise. >> that's right. we use antibodies where you have to stick a needle in your arm or drugs that you take orally but depress your immune system. this is an approach where you change t t bacteria in your gut so that it is now healthy. why does that make sense? we now know it's really, really cool that the bacteria actually control your immune system. so the bacteria in your gut turns on or off your immune system in your gut. if we can change that and have data in animals and now in humans from fecal transplants that if you make the bugs right the immune system turns down and the auto immune generation of
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>> what i thought was interesting is you have a library of 13,000 bacteria strains. how do you develop them? >> no other company is going to come up and do -- its not going to announce that they're doing what you're doing. >> no, we aspire -- >> that's important because those of us old enough to know, greatest single change in medicine at that era. >> and now w waspire to that sort of chchge. >> that's big. >> because now we're thinking, think about the microbiome. whether you're treating it for a last time i gave you the pill for cdiff. that's the ulcerative colitis pill. you take it once a day or once a week depending on the regimen. you don't have suppression or don't have to put a needle in your arm and you can calm down is inflammation in yr gut. >> this. >> that but in that is one times
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bacteria. >> no one else has this. >> no one else has this and the dark arts as we talk about. others will get it but rht now we own the library and approach to make this and the expertise. we're excited about bringing this to the country and the world. >> you should be excited. this is very exciting stuff. small tech, bio tech, obviously risky. go do some reading. that stock to the president and ceo of seres therapeutics. it's big news. stay with cramer.ending the day with my niece. i don't use super poligrip for hold, because my dentures fit well. before those little pieces would get in between my dentures and my gum andt was uncomfortablbl even well fitting dentures let in food particles. just a few dabs of super poligrip free is clinically proven to seal out more food particles so you're more comfortable and confident while you eat. so it's not about keeping my dentures in, it's about keeping the food particles out.
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>> global payments buying heartland tonight at a nice premium. i continue to like visa, mastercard, and paypalaln my charitable trust. this is a fast growing end of
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bull market somewhere.
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