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tv   Mad Money  NBC  December 23, 2015 3:00am-4:00am CST

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[music]e. >> have my mission is simple, to 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 to just entertain but teach, coach, educate and explain so call me 1-800-743-cnbc, tweet me @jimcramer. welcome back to crazy town. that's that odd city where everyone does everything wrong, buying the wrong stocks, reaching the wrong conclusions and taking the wrong risks which is what happened today.
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what exactly defines crazy town? it's the worshipping of the false god of higher oil. or even the demigod of slightly higher oil. this bullish stock pandering to the rising stock of oil was a threefold impact on the market that defines crazy town because it's so darn positive. why do the bulls like -- what do they like about all of us paying more at the pump or having our goods be more expensive because of the cost of energy? first to the crazy town aficionados, higher oil means less stress to the system. we are nowhere near the point where we don't need to worry about oil and gas companies going belly up. we need it at $45 a barrel to keep most companies alive in this country. there's some cheaper oil, but it's being used up by cash strapped firms going after the lowest hanging fruit in the portfolios.
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trouble with oil companies can sell futures and lock in, say, 50 bucks a barrel which keeps them around to play on and maybe pay dividends. at this moment we're $9 away from that $45 level even after today's big run. that's pretty darn fun. anytime we get away from the idea that oil is headed down to the 20s the goldman sachs price target hopes springs eternal and all group comes roaring back on the bet that once again we will hold the level north of 30. to me this is silliness. we need to see some substantial and longer term movement upwards in price to sustain most of these oil companies. next year if oil stays down here. we could see another leap in inventories and another plunge tomorrow. that means you will see the usual suspects go down if we get hit. here is a little good oil news after the close about inventories that are different
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this. companies like freeport and chesapeake, chesapeake was down today, a bunch of other companies too small to mention, these runs in oil they are not what they need. they need oil all the way up here, it's down here. i want you to be careful of these stocks. they need dramatically higher prices to avoid what i'm putting -- really kind of diplomatically -- is harsh common stock circumstances. most of the stocks that we want to talk about are too small to talk about but they weren't >> second reason why these false god's of oil are worshipped, when oil goes higher it takes the heat off the incredible melt down in the master limited partnerships that so many wealthy people were hiding in to pick up a little additional yield. these are companies that people buy for their dividends not the growth with the possible exception of trans canada and enbridge.
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one of the great disasters of the era, just extraordinarily horrible. i cannot believe how poorly they performed. now, there have always been a couple of outliers on the pipeline, plains, all american, boardwalk partners, those were a little crazy, but they are considered to be second tier players that have been problems maintaining or growing their distributions. a few weeks ago an earth shaking tech tonic shift occurred among the pipeline that riddled our stock market. kinder morgan decided to slash its dividends by an amazing 75%. 51 cents to 12.5 cents. something so unthinkable even a few months ago that it opened the floodgates of fear and loathing for the entire group. no one had been more vocal than ceo rich kinder in 2014 about
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by 10% every year for the next five years. you couldn't have been nor boisterous about this plan than kinder was, including on our show. one year later plans cratered. recently kindred made two huge acquisitions leaving the company with debt and the credit markets became totally unfriendly at the time kinder felt the stock was too low to pay the dividend or pay off some of the expansion plans. so with no relief in oil or gas he disabilities the dividend. turns out to be a lot more risk than we realized. you have to figure that if kinder had no problem cutting its dividend everyone else could feel free to join them. these companies had done precisely that, however, no everybody has done it. yesterday another pipeline operator known as one oak. one oak had plunged down to $18 from $40 six months ago came out
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maintain its distribution. when one oak stood behind the dividend the stock bolted from 23 to 20 and took the whole group with it. i believe in the relief allowing the pipelines, i don't, but oil was up today so there was a positive confluence. higher oil means at least to some that there might be more demand than people realize. the price of crude had fallen within a few bucks of where it traded in the great recession and there's a new and growing consensus that oil is unnaturally low given how much long stronger the economy is these days versus back then, that it shouldn't be down to where it was in the great recession. while demand might be greater than in 2008 the supply of oil is much bigger, particularly here in the united states. these are the reasons why the market rallies in crazy town. an uptick in the worst possible commodity to go higher for all of us since all of us use it somehow is regarded as positive. can there be any sanity? in crazy town?
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higher oil, consumer goods company that consume a huge amount of energy rally high even as oil goes up? despite the lunacy of that action i see some things that are outright encouraging in the real world not the stock trading world with the hedge funds and stuff. first we have had four big time earnings reports of late, darn den, carnival, sin gas and conagra. darden, parent of olive garden put up excellent numbers for every single 440 calorie piece of salmon that is to die for. 440 calories. anyway, while the price of gasoline wasn't mentioned darden is historically the most correlated to lower prices at the pump. that's positive. carnival is a total energy carnivore as cruise ships are among the largest users of fuel out there. they are able to raise prices as
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jobs being created, lots of people being put to work. finally conagra or cag reported a quarter that contained good growth in the bottom line. it isn't easy to put up strong numbers if you are in the food business. the new management team seems to have a better handle at its costs. nike gave a terrific earnings report, that is a combination of brains, braun, worldwide and smarts. today's rally off of higher oil is phoney. if you get a real rally in oil the estimates will come down for all four of those companies, their earnings would get dinged, so would their stocks. the s&p 500 futures trade in lockstep with oil right now even
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with raising oil prices. doesn't matter. this is a machine-controlled stock trading environment and the algorithms, the ones like amazon, other customers that like oil also bought the s&p 500 that's what makes the decision. the linkage will work until it stops. if you peel away the silliness of the market being controlled by the s&p 500 futures that are linked to oil you discover companies like carnival, darden and nike that are reacting to the commodity in a smart and reasonable way. nonrelated news is also being viewed positively. celgene sent the stock creaming higher, there are so many shorts in that celgene name and they will feel it tonight. i'm not buying roots which is about a mile away from celgene. the fact that some rationality can prevail in a welcome sign that not everything is totally nuts, i like that, you ask the credit markets could be weakened if the energy companies go belly up, that's a reasonable assumption and there's also a
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later in the show that oil might is getting weaker versus the euro. to accept the crazy town nature of stocks going higher because of a rebounding crude of a few pennies. when all but 7% of the underlying companies in the s&p see their earnings get hurt by than increase in energy costs. today ended up being a pretty darn good day when it should have been the exact opposite. then again when you're playing in an insane market and you can mimic it instantly why stand on the sidelines and see all the other nut jobs make all the money? >> brenda in california, brenda. >> caller: i bought 15,000 shares of southwest airlines at 47 on the margin. they made lifetime highs on low oil and now they are trading in the bargain basement on even lower oil. the forecast is not as bad as everyone else is. should i take the loss? >> no, don't take the loss. i don't want you to be on margin.
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i do think your southwest airlines is too low because oil even though it went up a couple pennies still incredibly low and it's a big cost for southwest. i would not sell that. spirit was up today by the way. >> george in ohio. >> caller: hey, jim. merry christmas. >> same. what's up? >> caller: my stock is cracker barrel which is down over 20% from its july high of 162. why do you think cracker barrel has fallen so much? >> the last quarter wasn't that good. people worry about the labor costs for a lot of these restaurants. traction. the only one that has traction although panera did have a food day, too, that's because panera the special situations are the ones that are winning, the regular restaurants are not winning because people are worried about labor costs and food inflation. that's my own word. this is crazy town. today was a good day.
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oil went up, but, hey, there's still money to be made so why don't we try to make it while we can. on "mad money" tonight wall street has been captivated by losing oil. a big deal for black gold is next. maybe that is more than what we just talked about. it's time for apple to do some shopping. i'm going to reveal who they should buy. i have one of the largest payroll players in the land, don't miss my exclusive with the head honcho at a very good company and even better stock i'm talking paychex. 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 "mad money" @cnbc.com or give us a
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head to madmoney.cnbc.com. silent night holy night
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this market, it has some serious problems, but two of the worst are the strong dollar, which makes our international companies less competitive overseas and gives their foreign counterparts a major edge over our guys, and an ultra low price of oil which you booing would be good for the economy, we pay less nor gasoline, but consumers don't seem to be getting much benefit even as many oil companies are in dire straits. we know the price of crude has been pulverized by the dissolution of opec. with saudi arabia pumping like crazy in order to punish the enemies and strangle u.s. based
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currency issue. when the dollar gets stronger and it's been strong for quite some time now the price of texas tea gets weaker. this relationship between currency and oil often gets overlooked although some of us on twitter have begged me to look at it. i give up. that's why tonight we're going off the charts with the help of carly garner who is the co-founder of the carly trading as well as being my trading at the red hot right now real money.com in order to show you why it is so important to focus on currencies. in particular it matters when we're trying to figure out if oil can bottom anytime soon or if its doomed. because the price of crude is so heavily influenced by the strong dollar you will notice oil and the euro often trade together. there is a very high correlation between the two. more than i thought. when you see these charts you will agree with thee because they both get punished. why does this matter? garner's opinion both oil and
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bottom than most people think and the euro may have bottomed already, something that would be a boone to our country's troubled exports but with stock getting beat make it so that that house in tuscany that i dream of will be out of reach. take a look at this chart. with oil in the red, okay, and euro in black, this goes all the way to 2006. it's crazy how closely these two have traded together. look at this. i mean, come on. you have to be a little surprised about this, especially over the last couple of years. not only is there a powerful correlation but the relationship between crude and the euro tends to become stronger near major tomorrow's and bottoms. look at these. perfectly correlated. lately they have been trading virtually in lockstep, including today, and that suggests to bottom for both crude and the european currency. it's more than that. garner noticed that the euro
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comes to the trend reversals. when we're approaching a top or bottom the euro typically makes the first move with oil following suit after some excessive volatility. this is what we saw right here. i don't know, maybe keith can move in, keith being the cameraman. frack being the guy who pulls the cable behind keith. in 2008 when the euro topped first and oil followed a bit later, look at this, it's incredible. in 2009 the euro bottomed shortly before oil. same thing happened in the lows in 2010, right, and then plus when the euro peaked last year oil peaked soon after. garner thinks this process could be playing out again given that the euro has been gaining traction and rallying versus the dollar for the last three weeks despite the fed's move to take rights higher something many pundits will send the dollar higher not lower versus the euro. garner thinks the rate hike was baked in. she believes the recent action could be the first hint of a rebound in the euro followed by an up swing in crude.
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euro. all right? look at this. top crude, top -- i'm sorry, top euro, top crude. each time it leads, if that's the case then we're going to go -- well, i don't want to get ahead of myself. is there really -- is there really reason to believe oil can make a come back in the not too distant future? after all a lot of investors have gotten killed the betting off of the bottom even as the commodity continues its decline intermittent breeders that have been bear traps like i think maybe today, i don't know, why does garner think this time it's different? take a gander of this weekly chart of west texas intermediate crude. first off garner notes we are due to a seasonal bottom, we had one last year, usually right around christmas. like now. although of course the seasonal predictions i would point out if that's merely your estimates based on patterns that played out in the past, they can come early, late, in some years they
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it's important that the dollar sees seasonal tendencies, they do matter more than they don't. in a year when it's going to be 70 degrees on christmas which should severely curtail the need for heating oil, i don't know, i'm skeptical. the second reason garner thinks this, check out the bottom of this chart, you can see the results of the commodities futures trading commissions -- commitment of traders report, we call it the cot report on the show. this is a very useful tool that tells us how the major players are better in the oil futures marked. this measures the activity of all sorts of buyers and sellers from real energy companies that are trying to hedge production, smaller investors trying to bet one way or the another. what we can a i remember about is the marge speculator category in green represents the positions of the big constitution money managers who typically determine the direction of a given market. for the last five years the big money has been long crude oil, above the line, but lately these
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debated a great dual of their bullish holdings. large speculators were holding 240,000 long contracts on west texas intermediate crude. judge by the action on crude it wouldn't surprise it me in that number has gone lower. why does this matter? according to garner oil tends to find a floor of support whenever the big institutional money managers reduce their holdings down to 200,000. get it? last couple times we were down at these levels march and august the price of oil managed to bounce pretty dramatically. so if history is any guide garner thinks a rebound in crude could be looming at these institutional money managers start bottom fishing. so what's next for oil? okay. here is the most telling chart in many ways. this is the weekly chart of crude. okay? the first thing garner notices is something we love to talk about on "mad money" which is the relative strength index or rsi. this is an important maybe the
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indicator and it has been trending -- i was shocked at this -- trending higher even as the price of oil has come down. do you know what that is? that's known as a positive divergence. when you see this kind of thing it often signals a major trend reversal meaning oil could soon begin to rally because this is going higher. maybe even before the end of the year. garner also points out that oil has been making a wedge pattern, okay? that's a formation going back to past january. based on that pattern it should have a floor at $33.80. oil bottomed near $32 in 2009 and right now it's at $36 and change. i know the market is flooded with oil but the demand situation is a heck of a lot better than back then. at this point garner doesn't think oil can be higher than 32 she expects buyers to start
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if oil can break out above the wedge -- resistance is near 40, guess where she thinks it can go, 60, 60 bucks. let me give you the bottom line on this completely contrary report that i've got to tell you almost no one believes in what i just went over, the charts as interpreted by carly garner suggest that the euro bottoms which she thinks it has then the price of oil should bottom soon after which she thinks it will. given that the euro has been working its way higher for the last three weeks and oil has reached extremely low levels not seen since 2009 she wouldn't be surprised if crude can make a come back in the near future. my view, i don't know if her predictions will come true, but if garner is right that would be very good news for this crazy town stock market that wants higher prices for something that's almost universally hailed as a negative in the real economy unless we're living in saudi arabia which ironically is the one country that's doing its best to take oil as low as possible in order to wipe out our new found competition from
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all right. much more "mad money" you a head. is it time for tim cook to take some action. with doubts about apple's momentum making the rounds i'm focusing on the company's next moves or at least what i think they should do because i'm fine owning apple. plus the real employment picture from paychex and a company with a break through therapy that wants to hack your dna to battle cancer. >> stick with cramer. [cough, cough] mike? janet? cough if you can hear me. don't even think about it. i took mucinex dm for my phlegmy cough. yeah...but what about mike? he has that dry scratchy thing going on. guess what? it works on his cough too. cough! guess what? it works on his cough too. what? stop! don't pull me! spoiler alert! she doesn't make it! only mucinex dm relieves bothwet and dry coughs for 12 hours with two medicines in one pill. start the relief. ditch the misery.
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so what exactly should apple do? if the company's stock is stalled or going lower as everyone and his brother keeps telling me is going to happen if there's no chance for the numbers to be higher next year than this year which is the prevailing wisdom what should ceo tim cook do about it? unlike so many people that own the stock which is down about 3% for the year cook doesn't have to fret on my account. apple has done incredibly well under his tutelage and i think it will continue to do so. i am about i no means as certain and everyone else that the sales will be down next year. i believe cook when he says apple can bolster its business by taking share from samsung, i believe china is doing quite well. i don't have my channel checks so i don't have the boots on the ground but what has tim cook done to make us doubt him? what's the undeserved skepticism about? many professional investors have come to believe apple can't maintain the earnings momentum
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large streams of recurring revenue that are high margin that could offset or be a low down in iphone sales. the stock is overowned by the existing public. apple is deeply embedded in the "mad money" fan ways. that's not enough institutional ownership. i console myself as the director of a charitable trust that owns apple with the fact it sells at 10 times earnings. usually you don't get that kind of shrinkage unless they are going to miss the estimates. let me offer some of the off the wall but perhaps compelling had ideas to tim cook. first i would bite the darn bullet and buy harmon, the company's valuation is down to $6 billion. harmon is the brains of every single car company and they are located next to the auto makers. they're hand in glove. for less than $10 billion apple
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recurring revenue stream in tech. they could own the internet of things for the cars' brain. think about how seamless it would be. you put your iphone into a cradle and it activates everything that's harmon or apple which includes a ton of property in the car. someone is going to buy harmon, apple should do it before alphabet does. why apple don't do this is pretty strange if you ask me because apple's car play needs to play ball with more auto companies just like harmon already does. harmon's stock is no longer expensive as it was for a very long time. if the brains of so many of the car companies are out there, luxury cars are using harmon it's time. i want my car controlled by my iphone. period. let me put it there, do this, do that. no. come on. >> second, i just go buy pandora. you want to own the music business you got the company
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stream. they can probably get pandora for $4 billion buckets. go to ceo james park and say we're going to make you an offer you can't refuse, that way apple would own the high end smart watch and the lower end fit bit that they don't really compete against but then it would be one big offering. i believe fit bit will be the way the companies lower their insurance bills and enterprise. this one they would have to overpay for, maybe as much as $8 billion, but apple needs to own the wearable category and as the apple watch as much as i like it doesn't measure up yet you've got to own this category, period, end of story. >> finally i would she will out $4 billion to buy varifone. apple needs to get an install base of apple pay users, cut out everybody's, best way is to own the point of sale terminal
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terminal. that's where you have to be. with $25 billion apple to get harmon, pandora, fit bit and varifone which would give you a recurring reason to own the stock. it makes so much sense i can't believe they haven't thought of it themselves. own apple, don't trade it and bet they figure out this stuff even as the analyst community has written the stock off like it's some beleaguered oil company and not the best can business in the world. >> how about we go to tom in maryland. tom. >> caller: cramer, big booyah from maryland home of the that they bows and hose. my question is about gopro, i recently sold it at $19.50 i took a loss at purchasing at $25 a share. i figured i'd cut my losses an move on. when i heard the new price target is $22 a share but with
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buying do i walk away. >> don't go an activist in blizzard, go about in electronic arts and mobile eye, that's not one of my favorites but go into fit bit, they have a big revenue stream. this one, this gopro it's not for me. maybe you have a big tax bounce at the end of the year and can sell it. how about ben in new york. >> caller: happy holidays, jim. >> same to you, ben. what's up? >> caller: hey, question for you. i've been in a long position for a while, i was interested in the original value that was presented by the numerous grafine patents, crapped out in the summer and during the end of it all western digital came in and made an offer on it. they're offering [ inaudible ] a share but the -- you know, it's all contingent on this deal with western digital and if they don't get it it's going to go
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>> okay. i don't like any of these, they are all commodity plays. it's tough enough it owning intel. i don't want to go down the food chain. they, too, can bounce. sandisk is done. i just don't want to -- hey, what was that, sandisk ceo throw that? gee, what did i say to offend people? the fact that i lost in the semis last night? all right. let's go to it. apple, new year's resolution, how about own, don't trade, how about buying something like harmon and pandora and fit bit and varifone. it would only take $25 billion which is around the -- that's like what you made today and it will give shareholders a recurring reason to own the stock and the analyst community a reason to shut up. could higher interest rates
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celgene is up a huge amount after a patent resolution. tonight's edition of the lightning round.
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stay with cramer. we know that is losers from last week's federal reserve rate hike far out number the winners but there are plenty of
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term interest rates. take paychex, the company's number two payment processor which has a strong human resources and benefits outsourcing benefits. there is a lag between the moment the company's clients fork over their payroll budgets and the moment you deposit your paycheck and they collect interest on that money. for years rates were so low that it was negligible. they raised interest rates by a quarter point the company became much more profitable, their earnings will only get better if janet yellen sticks at their four rate headaches a year. we know paychex was already doing well because the company reported a solid quarter this morning beating wall street's earnings estimates by a penny maintaining its guidance for the 2016 fiscal year. they pay 3.2% yield at these levels.
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for a long time. they have given us 11% gain ins is the last time we spoke to the ceo. let's check in with marty mucey who hear more about the quarter and their profits. welcome back to "mad money." >> jim, thanks, good to be here. >> marty, when i was listening today to one of the fed governors he was talking about maybe six rate hikes, the first thing i think of if it's working at paychex, six rate hikes in 2016 that's gravy for you guys. >> yeah, it's 1% increase is $20 million on an annual basis. so this first quarter point is worth on an annual bases about 4 to $5 million basically to the bottom line for us. >> i want people to understand it is not like you're taking on more risk to be able to get that $5 million. >> that's correct. in fact, we're very careful with the risk of that money. we hold just under about $4 billion of our clients' funds at any given time.
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now, every time i see you you pick up new businesses because i think the world of business changes and you've got things involving flex time, time and attendance in the cloud. i'm wondering where you're starting to see these businesses that are a part of the shared committee that don't know how to handle their taxes frankly and have to go to somebody. >> well, certainly. you know, jim, that's part of our acquisition, too, advanced partners, you know, this is a temporary -- this is a business that supports temporary staffing companies and we're seeing a big growth in temporary staffing and in part-time employment and that's part of this sharing economy. we think it's going to have great growth for us. >> i have to believe that a lot of these companies -- look, we had post mates on last week, airbnb. if i rent out my house an airbnb i have to have someone who knows how to handle the taxes in that situation or otherwise the irs is going to call me. i have to believe that you guys are figured out the taxes for those kind of situations.
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and the products that you heard of today that we added modules to our bundle, our suite of products on the cloud which include time and attendance and benefit enrollment and administration, all of these things in one suite on the cloud, the software is a service offering that is perfect for our clients whether they're small or mid-sized. >> how about the aca compliance, where are we, because again, as someone who has payrolls all i care about is i don't want a knock on the door from the government and i don't want to get any of my people in trouble and i don't want to get in trouble. this is the year, next year is the year where you really have to get it right. >> this is it, 2015 the filing requirements are due to the first quarter and we saw a big uptake in the sales of the product that we offer that not only include monthly monitoring for clients, but also the filing. we saw a big uptake on that, we have a lot of clients that have subscribed to this service and we are now working through all the requirements that have to be
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through the first quarter. >> at the same time we're still not seeing the robust per paycheck that i would have thought. there are these cross currents, marty, i have to understand. i don't understand how you wouldn't just start seeing immediately many more paychecks per place. it's not happening. and larger paychecks per place. >> yeah, that's true. that's been pretty flat. what we're seeing s you know, when you think about our small business index you're still seeing growth in employment for small and mid-size businesses but it's steady and slow. we are not seeing a big uptake in the number of employees per client. so it's about steady, it's flat, it's not down, but it's not, you know, increasing as much, however, new business startups are back up and that's a good i think this, we're selling to more new startups than we had last year. >> where are the most start why ups? >> well, i think you're seeing it in the south, you know, around construction and home building going on there, and certainly only the west coast as well, washington state and then texas, dallas in particular, texas is a funny state.
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years, houston, you know, hurting now with the energy prices lower. >> it's a good story. you maintain what i think is one part because i think it's a good hedge against what the fed might do. good to see you, sir. congratulations on a good quarter. >> thanks, jim. >> "mad money" will be back after the break. looking for 24/7 digestive support? try align for a non-stop, sweet-treat-goodness hold-onto-your-tiara, kind-of-day.
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>> announcer: lightning round is >> it is time. round. you say the name of the stock. i don't know the calls or the name of the stock ahead of time. sell. [ buzzer ] -- then the lightning round is
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>> let's start with ernie. >> i want to know about -- >> you want to pull the trigger. i see whole foods is bottom. mike in missouri. >> caller: booyah kansas city southern. >> no, i'd rather own union pacific. i need brian in new york. brian. >> caller: yeah, jim, happy holidays. centurylink. do you think it's a buy, sell or hold? >> i'm not reaching for yield. i've got enough problems. go to ventos. let's go to sammy in louisiana. >> caller: booyah, jim and merry christmas. >> same. >> caller: i want to get your take on dollar general. >> i like that corner. the stock has upside all over. mary ann in california. >> caller: hey, jim. thanks for taking my call. hello from san diego. i want to know if visa credit card. >> in charlie sharp we trust. 5.1 the highs, i think it takes out the high if we get any relief in oil, that sounds nutty
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dave in arizona. >> caller: happy holiday to you, jim, and entire staff. i'm looking for pacific biosciences, am i too late to get in. >> i think you are. it's just had a major move. i should have caught that one earlier. my bad. it's on me. let's go to josh in georgia. >> caller: booyah, mr. cramer. buy, sold or hold on frgi. >> it got jack in my portfolio for my travel trust and panera, by the way, which is red hot -- oh, i'm not done. i'm going to take one more or am -- i'm taking one more. let's go to -- whoa, that's all i'm taking. that, ladies and gentlemen, is the conclusion of the lightning round phil! oh no... (under his breath) hey man! hey peter. (unenthusiastic) oh... ha ha ha! joanne?
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i'm always searching for biotech companies that have the potential to be real game changers, especially in a market like this one where despite today's positive action there's many more losers than winners. these early stage biotechs are high risk, you wouldn't want to own them in your retirement fund but if everything goes right then the rewards can be huge. with that caveat in mind i want to introduce you to cellectis. it is a french biotech.
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dna engineering. they are edit dna adding or removing sequence toss reprogram a given cell. they are using this technology to fight cancer by taking t cells and turn them into cancer seeking missiles. they are designed to go after blood cancer like leukemia that share a particular protein. plus unlike other cancer immuno their piece they rely on a patient's own t cells, they use donated cells, somebody else's which means their drugs can be mass produced and used to help patients with compromised immune systems. it will take many more years before the fda approves these their piece but they are using the technology to create plants like potatoes that don't go brown, but again it could take five years or more before any of these products hit the market. is it worth owning. let's take a longer look with
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andre, welcome to "mad money." good to see you, sir. when i was doing my homework today, andre, seemed a little frankenstein look, you're taking someone else's cells, putting them in somebody else's body and it's working but it's certainly different. >> well, absolutely. it's different, but with gene editing the way you described it which is the way it should go, you can -- like t cells are usually sniffers of noncells and when they recognize a cell, for example, that is infected by example, that is infected by flu they start killing these cells and amplifying the wave in the body and will totally destroy all the flu cells. here we take this property of killing and amplifying and we are pre programming the cell in order for the cell to recognize cancer cell, kill the cell and start amplifying to melt down the tumor totally in the body of patients. >> this has worked in an individual, right? you had someone who is cancer
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>> absolutely. up to now this patient is cancer free. it was a patient who had no other therapeutic answer, immunotherapy had been tried on her and it was not working and then finally we injected this product and cleared totally the tumor. >> i want to understand this. you are talking about someone who might have died if cellectis didn't exist and you tried this. it was compassionate use, right? in other words that means that the person -- there's really nothing else left. is that something that the fda will say, listen, we've got to speed this up or does it mean many years of testing anyway? >> there is always a way to speed up the development of certain drugs. what's called fast tracks that goes in front of the fda. if the drug is really useful and has the potential to cure people that have unmathematical needs which is this is a way to go with such a type of drug and we are trying to get this drug as fast as possible to the patient.
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the problem is that could even take longer. if you have a potato that doesn't go brown, let's have it right now. >> well, yes, but we have potatoes but the fact is that we can eat chips and fries today if you want cooked in nontrans fat oil just today but the problem is if you want to feed people you have to grow this. for example, we harvested our first ton of soybean, shipped it to south of the globe in argentina growing this will probably harvest 30 tons next -- >> this gmo? >> it's not called gmo. gmo is normally transgenic, where you bring bacterial dna and put it inside soybean. here there is no dna taken out, no dna taken in in the soybean. >> okay. >> and therefore the fda don't consider it as transgenic.
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good. you have a very important partnership with pfizer. >> yes. >> how did that happen? >> we have signed this partnership with pfizer in june 2014 working and focusing both companies on liquid and solid tumors using this technology, the t cells and different type of indications and we have to team up with large players such as pfizer in order to tackle such type of indications. >> what did pfizer see that they couldn't do themselves? >> well, they are not gene editors. >> right. >> gene editing companies -- >> that's something you know how to do. >> well, we've been the first one. >> okay. >> me personally have been in gene editing have been the first scientist doing this in this field. pfizer had seen the field of gene editing. people were asking what's gene editing, what are you going to do with this and you are no leader if there is no forward and today you can feel the next wave things that are going to
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editing technology. >> i think you're absolutely right. it's highly speculative, only one patient, but what an amazing result. that's dr. andre shalicta he is the co-founder, chairman of cellectis, it is a french company but listed here, highly speculative, but, geez, if it works pretty big. stick with cramer. i asked my dentist if an electric toothbrush was going to clean better than a manual? he said sure. but don't get just any one. get one inspired by dentists. with a round brush head. go pro with oral-b. oral-b's rounded brush head cups your teeth to break up plaque and rotates to sweep it away. and oral-b delivers a clinically proven superior clean versus sonicare diamondclean. my mouth feels super clean. oral-b know you're getting a superior clean. i'm never going back to a manual brush. ugh! heartburn! no one burns on my watch! try alka-seltzer heartburn reliefchews. they work fast and don't taste chalky.
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all right. there's good and there's bad. nike and celgene good, nike is very strong some people are saying it's gone up too much, celgene has been weak for a long time we were worried about patent issues, a lot of them have been washed away by an agreement reached tonight and micron which i told you to stay away from because it's a commodity producer of chips delivers a commodity producer of chips number and gives you very little to hope for. we don't need commodity plays. they ain't working. i like to say there's always a
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