>> thanks so much for watching. for more, check out our website. we will see you back here next friday at 5:30 p.m. eastern time. have a great weekend and stay tuned, "mad money" starts right now.simple, to make you money. there's always a bull market somewhere and i promise to help you find it. hey, i'm cramer. welcome to "mad money." want to make friends, just trying to make a little money. my job is not just to entertain you, but to teach and educate you, so call me. after dow dipped five points, nasdaq back slid .66%.
at the end of a terrific week, while we're still in the thick of earnings season, next week, the toughest of all. first of all, next week, i got a weird twist. we're going to be doing the guessing game over municipal bonds. who will be the next to go under? i think detroit is a special case. that's something we don't see anywhere else except for some small towns in california. here's all you need to know of somebody who's pretty experienced. i would not be a buyer of any municipal bond. the yields are too low. selling at 45% yield, wake me up and not that i think this is a showdown, has no impact on your pocketbook unless you own a detroit -- now, this huge earnings week coming up. let's go over a pattern i've observe ed that is going to col all this action. first of all, tech is incredibly
visible as a disappointment. we have never seen multiple areas where companies are reporting better than expected errors, including companies like ge and honey well, banks like credit card, king, capital one, morgan stanley and wells fargo. health care names like united health and j&j, oil and oil services -- is the standout one of quarter. as well as housing. whirlpool shocked the lights out, sherwin williams and let's not forget union pacific. a very bullish sign. these sectors more than off set the weakness, which is why we didn't get hammered. after google, microsoft, intell reported weak earnings. google wasn't that bad and i think it's going to get better again. please don't give up the ship if you're in there. i think you should buy it.
mcdond's reports on monday morning and many are expecting a weak number. that's the chatter. when you have that kind of situation where expectations are low, be on the lookout for a buying opportunity. this is a fabulous company that's doing many things right. they're innovating, open with new hours. i say bet with it, not against it. after the close, we hear from netflix. that's a cold stock. it's hard to gain this kind of stock on earnings when it's being rated by how many emmys house of cards gets nominated for. you know i believe in netflix. i just wish microsoft or apple liked it as much i tid and buy the darn thing. tuesday morning, we get results from dupont. oh, boy. you will likely get an impassioned defense by their ceo to promote better food and safety. you will hear that paint's a
good thing, too, though. used when he told us he had taken a massive stake in dupont. i think he's going to push for the spin out and paint added businesses. i don't think the earnings will be that good. the pull back might be your opportunity to buy. he has success track record and you can, too. after the close tuesday, apple. hey, it looks like everyone else in tech is now doing as poorly. is apple down as much it can work its way higher? i don't care anymore. my trust earns some. it's cheap. if they announce a killer new product and then give you date of when it's coming out, it can go higher. that's what we want to hear at this point. no one's really thinking the earnings are going to be that good. foreign reports on wednesday, is europe at last under control?
malawi told us recently when he came to the show, he said maybe it can kind of stop worrying about europe. if it is, then this stock is going to soar to its old high. we know ford's taking names in this country if ford sells off, buy more. also on wednesday, we heard from pepsico. the ceo will tell you why pepsi and frito lay going under the same roof is exactly what it should be. let's hear what she has to say. i think the stock could be arguably ahead of itself because of the peltz puff, and i agree with peltz' opinion that pepsi can get to 105 on its own and i i would like it if newy did buy -- another peltz idea.
after the close, we get results from one of the most hated stocks out there. facebook. but is it hated enough to have a, to be so washed out, are all the bad owners gone? that's what's going to happen. last quarter, the company delivered surprising on almost every single metric and it still got hammered. even facebook says they're hitting it out of the park. nobody's going to believe them. my trust owns this one for long-term speck lax, but it's going to be despised, at least for now. we're going to get boeing's numbers on wednesday. i urge you to think of air space for the long-term. as long as the cost for oil stays high, remember boeing's new planes cut the fuel use, as long as air transit is a growth business. i think you're going to want to own some boeing. it's the only company that hasn't followed the 20-year growing plan. yes, there are going to be growing pains, but remember what
the co told us on the? the problems are fixable. tuesday morning, cell jean reports. one of the many uses of a key drug. i think we're going to hear almost all good things because there are so many drugs in the pipeline. be prepared to hear numbers raised for this very inexpensive stock in what is known as the out years. it was strong today along with this whole cohort as the group's been the most in favor that i've seen. what a group. also thursday, we hear from 3m, the second biggest group. amazinging bull run this year after boeing. i think it may be time to ring the register on some. if you bought some of the stock with 3m reported last time and got hammered, but you know what? i don't know. you're only going to have to buy it back at lower levels. after talking to bill mcdermott
on the show and reading many reports of the continueded weakness in china, i'm getting a little nervous ahead of the quarter. even as i remain bullish long-term about this company. bristol myers. when we get results from bristol myers, this growth stock should give you a pretty good read on its cancer pipeline, revalued upwards, largely, this is looking more like a biotech -- just wants it to come down so you can get back in. amazon also reports thursday. this is a cold stock. now, what does this mean? simple. it really doesn't mean what, it doesn't really mean that amaz amazon's earnings necessarily matter. yeah. not kidding. only netflix and amazon have this bizarre quality. unless they tell you they will never make money or they're going to burn all the money in a
chimney, people seem to be happy with it. that's when the clock trades, weakness equals buy. get a housing check up on friday. has housing been hurt by the big spike in mortgage rates? my trust owns two stocks i'm following closely. stanley works and warehouse. i agree with what i heard during my partner's terrific interview, john paulson. remember, he made millions betting against housing six years ago. now, he's the biggest bull in housing in the land and these are two of the highest quality housing plays out there. if rates go up again between now and friday, these stocks will sell off no matter what they say, but let's keep an eye out for them. there is a lot happening next week, but the thing you need to keep in mind is that why most techs have been awful, most are on fire and i won't be surprised if they don't continue all next week. jim in washington state. jim.
>> boo-yah, jim. how are you? >> all right. how are you? >> great. hey, listen, thanks for your sage advice on stocks. it's helping pay my daughter's tuition. i appreciate it. >> that's fantastic. we can get it so you're able to raise or save money for that kind of cause, then i know we're going a good job. >> my question is, united health care, unh, is that a buy? >> it's still a buy. i read a terrific note today by cheryl scold -- reimbursements in 2014, the numbers are still too low. it's a buy. the quiet down. let's go to marvin in california. marvin. >> thanks for taking my call, jim. i noticed with the ten stocks like lockheed martin were up today, but ericson air crane is trending down today. >> yeah. >> what's your take on this one and also on lockheed martin?
>> wait, as we have said, lockheed martin east's terrific. there were things that happened to ericson air crane that i still frankly do not understand and when the company comes back, we can ask them about it. earning season is in a frenzy with more on tap last week. terrible tech might be leaving a bad taste in your mouth, but many other sectors are acting so much better and don't give up on google. we'll be right back. coming up, some of the biggest names in tech got crushed today, but cramer's found an under the radar name that can power your portfolio higher. brings gadgets to life. don't miss cramer's earnings exclusive with its ceo.
and later, mild, medium? no, hot. a spicy earnings beat and the market sent its stocks soaring to a new 52-week high. is it too hot to handle? cramer's talking to the big enchillada. plus, you ask, he answers. >> i do not know canadian solar, which means i've got to come back on it. >> now, he's got the answers you need. plus, jim responds to your tweets and e-mails. [ kitt ] you know what's impressive?
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if you want to know what's ticking, take a look at ty. behind the touch screens in every single non apple smart phone out there with the true touch technology. they also sell programmable systems on the chip. these are small, low powered semiconductors used in all kinds of devices, especially phones and tablets. they make controller chips, too. market leader in static random memory chips. more of a commodity business. a huge opportunity. got out of the sram game, giving cyprus a lot of room to take share. here's a stock that jumped yesterday, earning 14 cents a share. went higher than anticipated revenues. saw broad-based strengths, their touch screen are really starting to ramp. cy has rallied over 25% since january 25th when we last int
interviewed the ceo. a gigantic position. you know he's putting his money where his mouth is. the stock has given us over 200% gain, more than a triple since september of 2008. but it looked like the western financial world was ending. i think cyprus has a lot more room to run, but it's also -- 5.5% yield. very high for a tech stock. let's check in with t.j. rogers. hear more about the quarter and his company's prospects. welcome back to "mad money." >> thank you. >> all right -- >> glad to be back. >> you said right at the top of your conference call, that this was it. it finally came together. but the previous call what you had said to us was you didn't understand how fickle the consumer got. why did the consumer suddenly want the glove? why did they realize the static is bad? what changed in six months? >> well, of course, the big deal now is touch on cell phones and
if the touch works, it's great. most people want to charge their cell phone, which has a shorter and shorter lifetime because of all these new features. so you plug in your charger and work on your cell phone and then you get tired of carrying around your charger, so you buy a second and a third one. one for work and home. what happen ss the second and third one you buy aren't the super premium ones the cell phone company ships and they enjekt noise into the cell phone and in particular, they mess up the really no pun intended, touchy performance of the screen and it takes some fairly sophisticated chip design in order to have a lousy charger not mess up a touch screen. we've been working on that for two years. a lot of work for a lot of people for a simple sounding problem and now that it's turning out to be a big deal and it's giving us a bunch of designs. >> another thing, you knew the anticipation like the charger
issue, you told us on the just ahead and realized they would. >> what happened is somebody introduced the feature called glove. meaning if you're in helsinki or new york during the winter, it makes it harder for the screen to work properly. so we worked on a glove feature. tas softer code you have to do to understand it better and we said obviously if you're in new york, you don't want to take off your glove and put your glove back on. you want to put your finger down and have the cell phone say oh, that finger's got a glove on it.
we did it that way and now, it turns out everybody's got glove feature and they don't want the take off their gloves to use glove. kind of lucked out on that one. worked for us. >> last time you were on, you said look, this is the bottom. it's got to be the bottom, which was an unbelievable call. you also talked about the idea that there was a boom bust cycle you've never seen before where they used to ship 10 million units a quarter and now, we ship none. is that possibly behind us? that boom bust quarter to quarter issue? >> it is true, last quarter, i saw the bottom and we, you had to believe what i said because the numbers didn't show it. that's what happened. right now for the next quarter, i have better visibility for one quarter and certainly not for one year and that's not going to happen to us again. in the long haul, this is like a heavy weight fight. the minute you get cocky, a big fist comes sailing through the air and hits you in the nose. for next quarter, we're feeling pretty comfortable.
>> you're also seeing some momentum in auto. we're shipping a lot of autos now. could you tell our viewers where in the auto you are located so they get more comfortable what cyprus does? >> sure. automotive to get touch into automotive takes about two and a half years. that's because we control it in five and there can be zero mistake. so, we start out in an automobile where safety is pear moun pair mount, so the preset buttons on your radio, the volume will turn from being a knob to being a slide, touch slider. your heating and air-conditioning, so we're moving in basically into the dashboard controls sort of a best design is the tesla. our high-tech car in silicon valley and in the tesla, there's a screen about this big and all the controls are on the top and
you basically go in and turn on heating and your heating controls come up. you turn on windows and sunroof and those controls come up and on the bottom, there's actually the connection to the internet, so there's a screen this big in a tesla, which is kind of an amazing looking car. it's got no knobs and buttons and this one big blank screen in the middle and it runs the car. >> next question was that. when i drive the tesla, i cannot believe it. the console is so much fun. and that's all you, everyone one of those? because it just works so much better than knob. that's all your technology? >> well, in this -- the technology to turn a finger touch into a position into a command is ours. the concept of how to control an automobile with touch, you've got to give all the credit to tesla on that. they made a breakthrough. >> it's just fun and whoever put you in knew this would be a fun
thing to use. it's also incredibly cool. your stuff is cool, tj and it's innovative. congratulations. you said it was the bottom last time you were on. you put your money where your mouth is and you delivered for r your shareholders. thank you so much. >> thank you. >> guys, look. the stock was up so much yesterday that people probably feel it's over. inventories are low. you just heard he said he had visibility. if you've ever been in a tesla, you're pressing things and you can't believe it. if elan likes it in tesla, it's going to be everywhere soon. >> coming up, mild, medium, no. hot. chipotle delivered a spicy beat and sent stocks seoaring to a nw high. is it too hot to handle? cramer's talking to the big
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on worries that the growth this chain was slowing, but ever since then, chipotle's been working its way back up and today, the comeback is almost complete. the stock surging where 8.55% to close above 400 in the wake of last night's better than expected results. company beat the street's earnings by a penny. really impressive thing is that chipotle posted an increase in same-store sales. the company delivered a number much higher than 3.8 increase analysts were looking for. bringing the total store count to 1,502 and management is forecasting going forward, much better than the growth some were worried about. yet they've got their mojo. can they keep it up? can the stock keep roaring higher? is it too late to join the
party? let's take closer look with -- to learn more about the quarter. happy 20th birthday and welcome back to "mad money." >> thank you, jim. it's great to be with you. >> i'm trying to figure out whether anything really changed. you guys have been doing pretty consistent. you've built up your loyalty. to me, if anything, the market message has gotten much better and yet, the stock went from 400 to 200 back to 400. is it just the market's a little irrational if you're running it day-to-day and you're chipotle? >> we never focus on the short-term sellings of the market. we believe we've got a lot of long-term potential with chipotle in the u.s. got a lot of potential overtime with chipotle in europe. we've got chop house as well. so we think about a longer term horizon and how can we serve our customers better food, severed by better people, top performers who are empowered to deliver an
extraordinary experience? and if we focus on those things, we will add shareholder value. we really don't have much control over that. >> fair enough. one of the things i think was the tension was you guys basically said listen, food with integrity, we're unstoppable and looking at things like genetically modified food. at the same time, you were saying but we're not going to increase prices. people feel what you're tried to do can't be accomplished unless you raise prices so you can get these not so good ingredients out and get the food with integrity in. >> that's right. we've been sparing with our money u price increases. we haven't raised menu prices for two years now. often, we've gone two or three years without raising prices. we try to run a very efficient business without going to our customers and asking for more money on a regular basis. now, it does cost more to serve
these ingredients. we're really committed to remove gmos and that's going to cost money. one of the reasons we held off on price increases, one, it looks like commodity inflation has held off and it liooks like there might be deflation. so we'd rather not raise prices when costs might decline. secondly, because of our commitment to getting the gmos out, we know that's going to cost more money so we would like to bank the price increase we're thinking about, then push it off until sometime in 2014. we'd like to time it around the time we can anoubs that we have or are on the verge of removing gmos from our ingredients. >> i believe the customers will pay for, frankly. one of the things that amazed me about this quarter, your labor
leverage. i didn't expect it, but i know you're very committed to keeping the best people. at what point do you say labors are making enough here. maybe we're going to lose somebody or are you just not losing your people even with costs stable? >> we are in a business that's a high turnover business. so our turnover generally at the salaried level is lower than other companies, but it still has a high turnover level. we hire almost all of our managers from crew. if you want a career, if you want to learn how to cook and run a business, if you want to be part of something exciting, you come to chipotle and we'll teach you those things. we have crew people that joined six or seven, eight years ago that are now in management positions and have a lot of responsibility. they're changing people's lives and financially, they're rewarded as well, so we believe we can keep good people, so while we have turnover, a lot of that is you know, kids, for
example, that are going to school and working during the school year and they leave and hopefully will come back, in terms of those who want a career who really buy into what we're doing, they stay and they have a bright career with us. >> i know from jim, the great former ceo of costco, that if you can keep people, then you do or are able to avoid a lot of training costs. i want to stay on this topic. i've got too many companies that tell me they're not hiring, that are not necessarily empowering people. you're watching the show right now. you're in a job where you're not that happy. what kind of skills do i need to be a potential manager. >> well, we will teach you all the skills. we look for characteristics. things we can't teach you. things like are you ambitious? energetic? are you curious? you know, are you curious about how food is raised? about how animals are raised? things like that.
if you have these 13 chartistic, are you smart, hospitable, do you like to take care of people? if you have those and no cooking skills, no business skills, we'll teach you how to cook, run the business. those are all skills that we can teach but you need to bring some skills to us. you need to bring these 13 characteristic, these qualifies, that you have them, we think you'll be successful. it doesn't matter what field you come from, we'll teach you the rest. >> what can they expect to make with the stock options? you ever get an average formula, about someone who's gone from being at one of your stores to running one? >> our restaurant managers, they can make it up to a gm and our elite managers, a restauranteur develops a special culture. they go beyond that and they create a great culture, where they're hiring only top performers with the 13
characteristics. they will be our feature le leaders. the restaurant managers that do the best job of that, they become restauranteurs. they only get promoted based on a -- one of our ceos or fyfe officers and once they get to that level, they can get bonuses based on how many managers they develop. we've had restauranteurs at that level make as much as $100,000 just for running one restaurant. if they continue to develop future leaders, really, the sky's the limit in terms of what they can earn beyond just that one restaurant. >> also, there was a point i thought at the beginning, you made it sound like you said it's not going to be near term, the chop house is really almost ready for the national bowl. is that a fair thing to say? >> we still think that we are nurturing chop house. we opened up our second
restaurant in d.c., one in l.a. we're going to open up two more ond four more on the docket for next year. we're still introducing chop house. the feedback has gone very, very well. when steve talks about the early days of chipotle, chop house reminds them of the very same thing. customers come in and see unfamiliar ingredients, but see the food and love it. made from fresh, high quality ingredien ingredients. an open kitchen and you're served in a fast line. it's similar to chipotle, but based on flavors from southeast asia. we're not going to really put it into high gear just yet. we'd still like to nurture it a little bit longer. >> you're brilliant, we're vegetarian. we saw that noodles and company, not necessarily analogous to that situation, seems to be very successful. the time seems to be right for this particular concept. >> for chop house, we do think
so. we think that what chipotle does, this idea of sustain bly raised ingredients, then the employees who can create an elevated experience for our customers, we think that can apply to any. there's nothing really like it out there, but we think what we do can really be applied to multiple cuisines, but we're excited and lots of people who have tried it, we're very often we get a response from them or a request from them to put a chop house in their town. >> excellent. congratulations. to me, never missed a step, but it's terrific you did the round trip and are back. you always did the right thing with food integrity. cfo of chipotle. thank you so much for being with us. guys, they've been consistent with the consistent message. they could take price to please these analysts.
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it is time. lightning round. and then lightning round is over. are you ready? first i'm going to start with seth in new jersey. seth. >> boo-yah from hoboken, new jersey. how are you, jim? >> all right. what's going on? >> i want your take on mako surgical. >> shark here. here's my problem with mako. they disappointed too many times. i know it's a jersey company. i think i'd rather be a seller than buyer. dave in california.
>> hey, boo-yah, jim, from west los angeles. >> i know that area quite well. how can i help? >> i'm still a believer in america's comeback in infrastructure and i'm considering in investing in one of two great american companies. axiol and hc holdings. >> supply holds, not bad. axiol, they disappointed. remember this is the spin on ppg. if you think housing's coming back and you know that our costs of natural gas liquids are low, that's buy, buy, buy. smith in texas. smith. >> hello, jim, boo-yah. i'm wondering about check -- company. >> i like check point. it's really come back. this is antistealing and there's always room for that. still tremendous step at many of the major stores.
talk about it we hind the scenes. andres in pennsylvania. >> boo-yah. >> what's going on? >> i saw today's athena health. a stock you recommended a few weeks ago. do i buy, sell or hold? >> the stock is up j. on any week, buy, buy, buy and john in north carolina. john. >> mr. cramer, boo-yah from the home of college basketball. >> true. >> listen, i got to thank you first. when you started your show back in march of 2005, your biggest fan was my father. and unfortunately, lived 11 months, but those 11 months, he watched your show every night and many of those with me and following discussions about stocks and i just have to thank
you for really changing my family tree. >> john, you are terrific to say that. i have to tell you that one of the thing is hear about so often, fathers talking about the show with sons. daughters talking about it with dads and moms. it is a common bond, so i'm doing it right. i know it's supposed to be like, hey, cramer likes apple. thanks for understanding what it's really about. >> apple's one of our best portfoli portfolios. my question is about -- ath. >> the business is strong. i like that business. a lot of people think i've gotten spooked by it as of late. i think that's the opportunity. this is the very strong part of the market. you've just got to get it right. no, that's it? and that, ladies and gentlemen, is the conclusion of the lightning round.
>> that's the one. brazil. this, i don't know, is just a really good beer and no, i'm not talking about a brazilian company. although that is an added bonus. ♪ >> my daughter and i snapped -- >> i don't know what you're talking about. >> it's hard to tell. clearly not. real people could have shopped, but for many of the wall street analysts who live right here, they don't have a clue about what happens here, west of the hudson.
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well, kids may be off on summer vacation right now, we still do our homework. on tuesday, ken in wisconsin wanted me to shed some light on canadian solar. a i needed to do a little bit more work. it's one of the largest solar powered companies out there. it's up nearly 300%. by improving fundamentals and a big chinese competitor. i think it's delivered competitive results.
my recommendation is if you own the stock, just give yourself a pat on the back. next up on wednesday, tom in illinois called in about xerox. i needed to take a fresh look at it before giving an opinion. one of those brands like kleenex. out of its low margin business and making a smarter move into higher technology outsourcing. in fact, outsourcing represents over half the revenues. long-term contracts and better mortgages. that said, it has rallied 42% this year, so a way for a pullback before you can buy this one, but i like it very much. thank you for calling my attention to it. finally, last night, tim in california wanted to get my analysis of boston private financial holdings. bpfh. a financial firm that's a combination of wealth management, very good business, representing a third of their total enterprise and private
banking. company reported a stronger margin and a small rise in it core fee business. but with only a 2.5 yield, this is not my favorite bank although again, this is a good idea. i prefer wells fargo, which happens to be the large position in my charitable trust. the first tweet is from -- who wants to know time to sell nokia. nokia's a r very spresing name. why? because it reported a weak quarter. yet the stock didn't go down and some of the -- was pretty good. i think you can own the stock for a 20% move and do not need to sell it now. up next, a tweet and it says saw you like vlo with baked in movement and possible bottom. how about tso and 9.2 times earnings, 4.5% growth rate. just to go back over, i think
this is important -- what i was saying wasn't that i -- i can understand why people -- why? which isn't nearly as good. so please don't take my endorsement on the fact vaerro didn't have such downside. that's all the tweets we have time for. back after the break. at a dry cleaner, we replaced people with a machine.
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memo to michael dell and carl icahn. just walk away from dell. all will be forgiven. that's what i heard yesterday from all the tech companies i follow. dell's perhaps less than $9 a share. to the reality of this company and industry started out. first of all, if you listen to the conference call of intel, microsoft, you know that personal computers in a horrendous secular decline, meaning doesn't seem to be able to stop its decline. sure, some of it is being replaced by tablets and some by -- no chips so exciting to mean anything to most users. sure, the chips could keep getting smaller and smaller, but unless you work at nasa and want to put a man on the moon, you don't need that power.
yes, intel says when it gets the in chip, maybe it will be a bump in the business, but it's more likely -- will come up with some cheaper devices and cut dell's profit margins to shreds. dell's selling big, color sets. the ones they can't even give away at best buy, except when you get your kids to college and they insist on the tv. that is if they even bother to hook one up. apple is the equivalent to a sexy flat panel tv set. third, the ab surtty of believing that dell's serving business can be the bedrock of new dell has been defrocked this quarter. plus, the clients for dell, many of whom are governments and universities, many are europe
and big, big businesses -- they can hold off certainly long enough to see dell use up its cash an perhaps even go chapter 11. fourth, there's no doubt that hewlett-packard can afford to give away personal computers. mega whitmann -- sthe last few months. given all these things about the fact the switch happened so fast that neither intel or microsoft, google last night, seems to have seeing the velocity. dell could be doomed even if it stays public. what if it used all its cash to buy the company or a huge chunk of it to take itself private. only a moron would take the chance with the debt that it would have to issue. right now, one of you, icahn or
dell, no one wants to be stuck holding this company. come on, guys. let it come down. that may be the best outcome either michael dell or carl icahn at this point has to hope for. stick with cramer. wi drive a ford fusion. who is healthier, you or your car? i would say my car. probably the car. cause as you get older you start breaking down. i love my car. i want to take care of it. i have a bad wheel - i must say. my car is running quite well. keep your car healthy with the works. $29.95 or less after $10 mail-in rebate at your participating ford dealer. so you gotta take care of yourself? yes you do. you gotta take care of your baby? oh yeah!
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snap chatting next week's show. there's always a bull market somewhere. promise to find it just for you. i will see you monday! welcome to "the kudlow report." i'm larry kudlow. we have two big developing stories tonight. the s.e.c. charges filed against hedge fund king steven cohen and the continued fallout from the detroit bankruptcy filing. let's begin with the latest news on steve cohen. cnbc's jackie deangelis joins us now with all the details. good evening, jackie. >> good evening to you, larry. the s.e.c. announcing today that it is charging s.e.c.'s steven cohen for failing to supervise two senior employees and failing to prevent them from insider trading. this is a civil charge. this is not a criminal charge. now, the charges are the result of a four-year investigation into cohen and his top-performing $14 billion hedge fund.