or cashmere sweater. carl had a really beautiful cashmere sweater on today. carl can wear anything. i can't wear anything. i think you're going to see some really good promotions at the ball. i bet some analyst wise guy does some downgrading here to here. not going from buy to hold on any stock at this time of the year. this is supposed to be an era of good feeling, not of downgrading. i hope you have a merry and healthy christmas as we celebrate the holiday stock market free. here's the bottom line. i think this ugly markets is less fed oriented and today less oil oriented. expect they can continue to wreak havoc. but remember, here's a shocker, as stocks go down, bargains do

however, you just can't be sure if even bigger bargains lie ahead. damon in georgia, damon! >> caller: hey, how are you? >> oh, man, these days get me a little down to tell you the truth. how are you? >> caller: all is well. love your show, man. i'm just starting to invest. i'm in capital preservation and starred looking at blue chips and i turned my attention to procter & gamble and i'm seeing rumors they're thinking of breaking them up. their stock was above 90. how would they fit into a preservation -- >> my manager says, you know, he says down below 75 you absolutely have to buy. i'm thinking between 72, 73 -- there's my music redemption song. it's always greats to play it right in the middle of when i'm talking. we're in liquidation season. we saw it happening today.

on "mad money" tonight, have no fear -- after the rally on solid earning, i'm sitting down with the ceo of red hat. i'm focusing on two upgrades and downgrades to chang the markets. and the company formerly known as isis changed its name to ionus. should you own this? i'm speak with the ceo. so why don't you stick with cramer! >> don't miss a second of "mad money". follow @jimcramer on twitter. tweet him #madtweets. send jim an e-mail at madmoney@cnbc.com or give us a call, 1-800-743-cnbc.

head to madmoney.cnbc.com. even a lousy day like today and it was hideous out there, some stocks managed to go higher. take red hat, software for virtualization and stores and

country. let me read you some of the headlines. squeaky clean execution in strong third quarter, said one analyst report. firing on all cylinders, another. or my favorite, we tip our red hat for the past two years successes. the company delivered one cent earnings off 47 basis, subscription increased 15%, deferred revenue rose 14%, that's the future and raises four-year guidance for 2016. how many of those do we have? all of these numbers would have been a lot stronger had it not been a the freaking strong dollar. maybe the stock has gone up a lot but managers will pay up for this kind of company. that's what happens in this super charged environment. so let's talk to the ceo of red hat. i want to get right into it. everybody uses amazon.

hat? >> we had hundred certified cloud providers and amazon is one. they've been a customer of ours for a number years and they use our operating system and some of their customers use it on their cloud based offerings. >> so amazon is out in the cloud and red hat is a service provider to amazon. >> right. and we have microsoft -- >> i wanted to ask about that. has that already kicked in or is it just the beginning? it doesn't seem like one of those for show partnerships. >> we just announced it a month

we just closed the agreement and hopefully over the next several months, several quarters, we'll start seeing that business. >> let's say i'm a skeptic. doesn't that mean you already have everybody and there's nobody to get? >> the key thing about what we have, it's one thing to be having a customer in all the enterprise but it's how you also sell to them and then upsell. we started with the lynnix, the operating system, which many of our customers use. but now as we continue to expand our portfolio, you mentioned some such as open stack, so shift, middleware, management, they're seeing more usage on top of the operating system to continue to work with us. so you look at what we spend, what we spent with them a couple years ago, versus what we're spending now and what we'll

continue to increase the spend. goldman sachs did this a couple months ago and they looked at i.t. organizations today and what they expect to spend and there's a significant difference what they'll spend with red hat and what they'll spend in a couple of years. >> what about financial service firms with red hat? >> financial services firms haven't been in the technology business for years. not only were they on linux, but they've been one of the industries working with us on open stack and open shift. starting early. they'll spend the time making the investment of the technology and working with us along as a partnership and seeing that continue to go through. so they were early with some of these emerging technologies. they're actually in full

expanding their use over time. >> there was a statistic when i was reading the conference call that's kind of amazing. every single re-up you had you won. but you also are getting 120%. >> you're spelling more business, they're using our products more, they're using more of our product, especially as they think about the cloud and they start to build out cloud. sometimes they'll start with one installation of a cloud and continue to expand, whether it's on the private side or hybrid environment. >> i know security is always -- it doesn't matter. the navy would put you in its newest warship. i would not think they would pick you if they did not expect to be in cyber terrorism.

been one with red hat for years. yes, i would agree with you as far as that's where tried and true early on from the standpoint and the trusting relationship overtime and continue to deploy new applications when they work through that. >> is your best client from a noncloud based system? is that when red hat can strike? >> it's been somewhat of a cannibalization of the existing market. you have to look at proprietary software moving to open. when you start to see that transition many companies are looking for the benefits of open so they'll come to red hat and look at it from that perspective. within the operating system, some of them are shifting from a unix still or windows on to a linux.

free linux to more of a paid linux because they're looking for some of the support and the services we provide so that kind of allows us to have some up side from that perspective. and then again, you're looking for ones on the operating system looking to do more with us. >> i think it's interesting you mentioned windows. i used to think people would leave microsoft to go to you but now that you're partners -- >> the only stock that i saw in the green today. "mad money" is back after the break. >> announcer: coming up, amazon prime? no doubt they revolutionized the way the world shopped. but what if it could mack wall street more friendly and change the face of shopping forever. i absolutely love my new york apartment, but the rent is outrageous. good thing geico offers affordable renters insurance. with great coverage it protects my personal belongings should they get damaged, stolen or destroyed. [doorbell] uh, excuse me. delivery. hey. lo mein, szechwan chicken, chopsticks,

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at the beginning of this month we noticed not one but two peculiar quizzical pieces of research from wall street analysts on a pair of big name stocks. i think they're worth taking some time right now and discussing them because on a brutal day like today, it's important to remember that individual stock picking will still matter when the smoke clears. which brings me to what happened back on december 1st when we got a pair of extreme analyst actions, and that's too lightly a word to use, extreme. morgan stanley upgraded astrazeneca, major british drug

an overweight and merrill lynch downgraded cummings to what was an actual buy to an underperforming. they said they liked it and now they hate it. this is really something we got to address because, i mean, it peculiar, isn't it? i mean, think about it. typical analysts only downgrade or upgrade a stock by a notch. buy to hold. if they got a buy rating, first they take it to neutral and maybe they'll downgrade it to sell. what is highly unusual to upgrade by two notches, like going from buy to sell or sell to buy. when you get this drastic two-notch upgrade or downgrade, it indicates a major sense of urgency like you got to get in or get out immediately, no questions ask. up know i never take this sell side research as gospel and you shouldn't either.

an important part of your homework. it tells you which way sentiment is leaning in a given stock. that's why i'm going to try to interpret them for you. let's start with morgan stanley's monster upgrade of astrazeneca where he went from hating the stock overnight. they point out this british big pharma alpha is ready for the development of the department, including new drugs to the point where they have a wave of positive catalysts coming out in 2016. normally i can be skeptical about the cell side research. it opened my eyes to a stock i hadn't liked. they said the expectations had

reigned back in. now they pointed out that their bear case is true. they got it right. but after telling you to ignore the stock for a year, now morgan stanley is pounding the table and telling you to buy astrazeneca hand over fist. number 26 is like in another ten days which is why the company believes they can earn 6 -- >> these analysts see some major research and development coming. it should result in three major bloods, there's a novel blood thinner, an asthma treatment and then there's an ovarian cancer drug they're currently testing

this cancer franchise. these guys point out astrazeneca is also bringing three huge drugs to market, there's treatment for lung cancer, high potassium levels and chronic obstructive lung disease. they believes they drugs could be worth $9 billion for a company that was a sleepy grower. best of all, these analysts are sensitive to price. they knew astrazeneca was -- people have been staying away because of the patent protection on sayer seroquel, big ones. if these guys think they can offset it, that's amazing. they like that astrazeneca

the company is buying a controlling interest in acerta, which is focused on oncology and focusing on a blood cancer blood. they could be doing peak sales of $5 billion. that could be a real steal there. i have to say i like this argument. yesterday's assert to acquisition only likes me like astrazeneca even more. looks like the analysts at morgan stanley have a good reason to change their november. they decided they were about to miss their window and pulled the trigger on december 1st. how about this two-notch downgrade of cummins from buy to sell from bank of america merrill?

here's the different story. remember cummins is a big international oriented industrial with a stock that's being killed for the last year and a half. 18 months! yet this analyst at bank of america and merrill had a buy rating on the stock since this past january when it was trading at 142. let me see, where'd this one go out? oh, yeah, 85. that's bad. and then nearly 11 months later he downgrades to underperform. the stock but i have to wonder what the heck took them so long? maybe it's a case of, what, better late than never? i can't disagree with the substance of this downgrade as this is a very difficult time to own a fantastic american manufacturer like cummins.

sooner than anticipated -- >> continues to make it difficult for them to compete with foreign engine makers and a country with devalued currencies, which have virtually every other country in the globe right now, though particularly they're worried about china. plus cummins makes equipment that goes into the minerals and minings. given that is a louie market to sell into. i can't fault bank of america or given the fact these guys have a buy rating on the previous of 42 points, come on. i'm inclined to take the downgrade with a grain of salt. it's not breaking news at this point. we know things are looking grim for cummins and its cohort.

big, trading at a 52-week low, an accidental high yield of 4.5%. and that dividend seems perfectly safe, even if the company's earnings get cut in half. i'm not quite ready to call bottom here. no, no. i'm new to it. i haven't liked the stock for a while. but this bullish bank of america analyst, capitulating. kind of makes me think the stock may not have much further to fall because of the ever-increasing yield. and to be sure, one sign of a turn in china and you're going to be reaching for this down and dirty cyclical. when analysts make grand where is the double downgrade owning cummings? makes me feel that this long, hideo decline might be running out of steal. with a 5% yield or rebound in china, i think you make your

richard? >> i'm trying to figure out if you'd advise taking a position on either stock. i watched dow come down about 8 points from when they first announced it. >> my travel trust owns it. we were frozen. we're frozen in the charitable trust. it is now down to 49 and i got to tell you, we feel at 48 we're just going to buy back all the stock that we sold. it's getting nutty out there! people are starting to hate everything! that means they're too negative. thank you for the kind words. richard! >> when analysts make big moves, it worth taking a look. based on what we saw this month, you should own astrazeneca. i really like that stock. but rummings, could be running

ice. >> i'm talking to the ceo about the name change. what does it mean? and why i think the stock market should be run by amazon minus the drones and a finally friday

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this morning we found out that isis pharmaceutical is changing its name. when you're a company that tries to save lives, you don't want to be associated with a group that beheads people. it is changed its name to ionis. it's pioneered what's known as anti-scents technology where they develop drugs that work by targeting the rna in your cells, which is like the equivalent of middle management. if you change the message the rna is carrying, you can fix genetic disorders that produce all kinds of important proteins your body needs. ionis has 38 drugs in its

treatment also for spinal muscular atrophy, a phase two formulation for high triglyceride levels and some diabetes drugs and an recall stage cancer treatment. it's got a lot cooking. it could be sitting on a host of blockbusters. let's take a closer look, the chairman and ceo of ionis, formerly known as isis. dr. cook, welcome back to "mad money." >> thanks for having me and happy holidays to you. >> same to you, stanley. let me ask you, i thought it was just me but a very good analyst, dr. shimmer over at piper jaffrey said this morning in a piece of research we think this name change will do build a new image.

represents the first chance for the company to revamp interest with investors and we're optimistic positive steps will follow. is that overstating it? all did you was change your name. >> i don't know if it's overstating but changing our name at a time that is tremendously exciting. we're completing three phase three trials with three different blockbuster drugs. >> you look at that and look at the advances we continue to have in the pipeline. >> we did a feature on astrazeneca.

this is a company i thought had become really just me, too. but they have five cancer targets and they're developing them with you. how is that going? >> it's going well. we have had our cancer collaboration with astrazeneca for a few years and this year we added a collaboration in cardio metabolic disease. they're one of our partners and they're great to work with. the new astrazeneca under pascal is a very exciting, innovative new company. >> when you say that new astrazeneca, that makes me feel good. how is the phase two study going? it actually just started, right?

three study, the peripheral neuropathy indication and then what's particularly exciting is our partner gsk is beginning the first cardiovascular outcome study with an rna targeted drug. that's a big 500 patient phase three study. these are very exciting times for our ttrx drug. >> is this a 2017 or 2018 drug if it goes well? >> no, it's sooner than that.

peripheral neuropathy, the phase three study is now finished enrollment and that's a 15-month study. we'll have those data in early 2017. we'll hope if they're positive, we'll file right away for that indication. >> we spent time in the past talking about your clotting disorder drug. how's that going? >> very well. as you remember, we licensed that to bare for high 20% royalties and the first step was to get experience with patients in renal dysfunction, which we're getting now. patients who can't take existing anti-thrombotic drugs and that's rolling nicely.

begin. so exciting times for factor 11. it i believe can fundamentally change the treatment of thrombotic disorders. >> thank you so much for coming on mad money. >> it great to be here. >> always good to check in with the doctor. this company has a lot more cooking than most. when people come back to biotech, this will be one of the first that they come back to. "mad money" is back in a minute. 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... oh yeah, baby. geico's as fast and friendly as it gets.

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it is time for the lightning round! and then the lightning round is over! are you ready skee-daddy? chris in new jersey. chris! >> caller: hi, jim. how you doing? >> real good. how are you, chris? >> caller: my stock is juneau. it's going down. should i hold on to it? >> it's a speculative biotech. you have to understand that stark is probably going lower in this market. well, act accordingly. eleanor in south carolina. eleanor! >> caller: hey! i have calumet. do i buy, sell or hold? >> i think that yield is unsustainable. i think you should take some off the table.

kathy! >> booyah, jim, with crab cakes from maryland. >> just a second, i have the seasoning. >> first data corp. >> you got that company like a mastercard. we don't need no first datacorp, we got mastercard. that's what we're going to could. ben in texas. ben! >> caller: booyah and merry christmas. >> what's up, partner? >> at&t 5% yield and a good outlook next year. is it time to buy? >> i'm with you. i know most aren't. the stock's been a total -- but they boosted the dividend. that's fine with me. it's steady eddie. i think eventually directv will work it and will go higher. joshua? >> caller: buy, sell or hold on shopify?

i like that stock. it's really down a lot. >> let's go to osben in tennessee. >> caller: merry christmas to you and happy hanukkah to you and the staff. thank you for your great work for the small investor. my question is about alcoa. >> alcoa will not start going higher until we get to closer to the breakup of the company. people do not want to own a company levered to any mining. and that is the lightning round! >> announcer: the lightning round is sponsored by td ameritrade. >> it is time! >> caller: booyah, jim! big booyah with cheese on top. >> i like that.

anthony in new jersey. anthony! >> caller: hey, jim, how you doing? >> i'm all right. how but, anthony? thank you bob, ceo of disney. what happened? did you bust it? >> your cue hit the camera. is there a yoga mat? do you want me to plank? all right, i'll plank. >> you can plank for this whole segment. >> no, i'm good for a minute plank. could you make it so it's even? that's going to really -- you got to -- you can't have it so it's half on, half off. i've got you, don't i? lululemon, the purveyor of high-end yoga clothes reported a

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sometimes on days like today i feel like we should just turn over the whole stock market to amazon. it would make more sense and do a better job than what ever the heck is playing us now. think about it. right now when the price of oil goes down, the s&p goes down almost tick for tick. they say it's algorithm and they

and goes down. once the machine steps in, it becomes self-fulfilling. why would the stock run better on amazon? because it would be accessible to everyone. you could buy a put on say oil, using amazon prime of course. and up would pop those who dislike oil might want to buy a put option on the s&p 500 or it could include an icon for the nasdaq or dow. just like all amazon tells you if you enjoy dead weight, you might enjoy the last voyage being there of the torpedoing and sinking by a german submarine off the ivory coast. amazon could do individual stocks, too. wouldn't that be great? today the sellers trashed the consumer package goods companies

like under 75, clorox, kimberly-clark. but somehow kellogg's was unscathed. you could have a little icon using the company's logo, see the current price and see the company hasn't been hit yet. for those of you who hate clorox, voila, you're shorting kellogg. you doesn't have to worry about delivery. amazon's got that solved. you don't even need to know if they really relate. they'll tell you those who sold general mills sold kellogg. who knows. you just have to work on the ramifications. it would be nice to know the darn thesis, though. the company mentioned it was being squeezed by a broad base

base. hey, that's a code for walmart. the same way that a supplier for apple never mentions apple. the customer is always right, whether you're selling chips into apple or potato chips into walmart. then again, a thesis is hard to come by. that's how america, delta and southwest all went down with a decline sparked by a decline in oil. we have to take into consideration a total lack of algorithm. it can't be perfect. it's a very significant reason why so many hedge funds are down this year. they make these big macro correlations and so often they're stupid and just plain wrong. that's why the losses are sorry big. that's why i would love a button that says if you like "star wars, you might like the stock

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the new cnbc documentary, did america's oldest gun manufacturer know about a potentially deadly defect in its popular hunting rifle, the remington 700? don't miss "gun fight, remington under fire," sunday at 7 p.m. there's always a bull market somewhere, i always like to find it for you.

monday!