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tv   Mad Money  CNBC  December 19, 2016 6:00pm-7:01pm EST

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love you. you do yeoman's work. >> now what? >> adobe. it sold off after earnings and making a trip back up, brother. >> how about the guy happy birthday, right? happy birthday to guy adami? >> it was your birthday yesterday? >> your birthday yesterday? happy birthday, guy. "mad money" starts right now. my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach you. so call me at 1-800-743-cnbc or tweet me @jimcramer. don't just stand there. find something to recommend. that's where we really are right now in the market cycle, and it's a powerful incentive to stay long where you can continue
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to own stocks and even keep buying them even after this remarkable run. dow up another 40 points today. spiep advancing 0.2%. nasdaq gaining 0.37%. most of the time analysts recommendations really don't amount to much. i'm not going to say a hill of beans but they're really not that important. they're kind of like trees falling in the woods. they make a big crash, then just sit there. unless you're right underneeth the darn thing, it doesn't matter. they are usually over shadowed by other events like the terrible terrorist action we saw today in berlin, germany. but periodically they have tremendous clout, and an credibly bullish moments like this one, your goal should be to anticipate them because they do have so much potential to move individual stocks. >> buy, buy, buy. >> so let me give you some examples of what i'm talking about so you can try to anticipate these pieces going forward. don't forget, i'll give you a couple ideas after. first of all let's start with disney. it's a company we all know,
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right? now, the stock is well off its highs but also well off its lows. last week i predicted that some analysts would stick his or her neck out and make a case that disney should be bought right here. >> house of pleasure. >> sure enough today, the terrific bank of america merrill lynch analyst, who likes disney, put it on her firm's u.s. one list. that's their top list that they expect to move. her reasons? first she likes disney's growth and the strength of its park and resorts. both here and internationally. second, it's got stable to low growth media networks buoyed by virtual multi channel distribution launches and nation direct to consumer efforts. on top of that, disney has got a solid studio outlook with blockbuster level visibility for all its major labels. just this weekend, "rogue one" made $155 million at the bronx office. it's very shareholder friendly, including 1.64 per share
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dividend and $7.5 billion in buybacks. and of course disney could see its 35% corporate tax rate slashed dramatically under trump. okay, that's a solid litany. but what's absolutely incredible about cohen's recommendation is the lack of any emphasis on espn, which has worried people so much. that's disney's big cash generator and people are concerned it's slowing. while we knew all about all those strong initiatives i just outlined, all those positives, a decline in espn's subscriptions has overshadowed all those good things and that's what caused disney stock to tumble all the way down to $88 back in february. it's been kind of flat lining there until recently. in short, nothing mattered on the way down except for the espn weakness. now, in just the classic bull market, it seems that espn doesn't matter much at all anymore. that's what happens in a bullish
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tape. we overlook things like espn that was crushing the stock. in fact, the worries about espn don't really surface in this report until you get to some boilerplate risk factors that include the potential for -- and i quote, a significant sloud in spen's growth. the worry that once crushed this stock is now in the rearview mirror without any mitdgation of those subscribe losses. the stock rallying nicely up $1.39 or 1.34%. this will only beget more upgrades. how about that citi upgrade at costco today? for months i've been telling you that costco must be bought ahead of the big turn we're seeing. we own it for my trust, and i've been pounding the table endlessly for all members to buy before it starts moving. my arguments have fallen on deaf ears. today citi says it's time to step off the sidelines to buy costco and the stock vaults more
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than three bucks in a single session off this upgrade. why? let me give you the litany, and you can make a decision. a membership fee increase should be coming along, a special dividend might be in the cards, not to mention the possible end of gasoline, food, and tobacco deflation. the deflation issue has plagued every food store as kroger talked about recently. but soon it will be annualized, meaning we will not be thinking about it that much. it won't be a folk in 2017. once again, i regarded this piece when i saw it as a yawner. there was nothing here that we haven't talked about endlessly on "mad money" or in acti actionalertsplus.com bulletins, right down to the positives that costco has switched from american express to the new vee ca card. costco like disney is still well off its highs. it was ripe for an upgrade, and it got one, and the stock ran. let me give you a real crazy one.
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united technology got upgraded by cred suisse this weekend. this one was astounding. here's a fabulous company as we know. we profiled it not that long ago in conjunction with president trump's call to the ceo. this past year, the rap against owning united technologies has been that in 2017 -- keep that number in mind -- 2017, there will be headwinds against aerospace, and a collapse of otis elevators margins of kind of a phenomenal proportion. but this upgrade says that both of these issues will be resolved not in 2017, but in 20182018, ar from now. we're asked to look through the whole year in a leap of faith in the hope that things will get better two years from now. that may sound fanciful to you, but this upgrade worked. if send the stock up more than 2% today. these are the amazingly positive things that in my 36 years of investing i'm looking and saying, no, come on!
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now, these two recommendations shocked me in their ability to move stocks even though there really wasn't anything new or even all that laudatory. got me thinking about some others we've seen lately. stanford bernstein. they decided that g.e. hasn't been given enough changes for all the changes and reshufflings that management has done, including buying alston, spinning off its oil and gas business, combining with baker hughes. it's time to recognize this is a new g.e., bernstein says. sure. okay. one that could earn $2 per share when? 2018. mind you, not 2017 but 2018. we're being asked to look right through what could be a tough year. in most markets we don't look through what could happen the next quarter, the next month. this one says we're okay to look through all of 2017. again, the darned upgrade worked, propelled the stock higher. you think it's because of the upgrades? doesn't it make sense that it's
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the market? i'm going to give you a final stunner. this one really got me. last week, loop capital came out with a buy recommendation, one of my absolute favorite semiconductor stocks, nvidia, which is the intersection of machine learning, the connected car, and gaming -- that's the triple crown. that's the american pharoah of high growth end markets. end v nvidia stock had been biding its time. the stock had stopped going higher of late. it had stopped going higher for like four days. sure enough, loop capital's push worked and the stock took off into the hundreds. what shocked me about this nvidia buy recommendation? i had never heard of loop capital before. after i canvassed people, i couldn't find anyone who heard of loop. i saw loop on halftime. i was there. i said, hey, loop, i get it.
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it's from chicago. the chicago loop. send nvidia to the moon. considering the tenor and tone of these upgrades and the ease with which they moved stocks higher, loop capital, which stocks should be the next names to receive anyone from wall street's blessing? anyone? all right. first i'm saying that 3m is a natural. they held an analyst meeting last week and nobody really thought much about it. everything seems fine. no catalyst. that's perfect. some analysts can say that 3 m. can benefit from trump, right? there's a fight about that. but i got to tell you not when it comes to the stock market. oh, by the way, you can say that asia is getting better. how about this? innovation? yeah, the same stuff that's always talked about. but i think it can work. 3m, buy, buy, buy. how about walmart? all right.
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here's another one. this time next year we're going to be thinking about jet.com, not amazon. we can look right through this christmas and bet that jet acquisition will give amazon a run for their money next year. hey, buy, buy, buy. finally home depot. it can be a big winner from deregulation, lower taxes. get this. the retail analysts are desperate to recommend something, anything as we see from costco, especially with such weakness that we're suddenly hearing about in apparel. home depot's biggest season isn't the christmas holiday. it's the spring gardening season. last spring was just okay. why not come out tomorrow, analysts who follow home depot, and say you know what? spring. it will be easier comparisons. just forget entirely the holiday. forget this. put up pictures of my tomato plants. now, i'm also anxious to say that honeywell could get a boost after the confusing guide up that was interpreted as a guide down, and i'm on the verge of sensing a series of upgrades
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from nike although i still expect it to report a disappointing quarter tomorrow night. it would be pure gun jumping but i think nike could report a not so hot quarter and yet still get upgrades because the desperation of analysts to be part of the bull market. here's the bottom line. we're in the sweet spot when analysts upgrades can make any stock roar higher. now that you see how the game is applied, you need to say, i got to get some. i think there will be plenty more of these to come in the last two weeks of the year. in fact, i know it. how about jeff in florida, jeff. >> caller: booyah, jim. >> booyah, skee-daddy. >> i just finished get rich carefully as a birthday present to myself, and it is the gift that keeps on giving. >> man, you are terrific. what's up? >> caller: hey, recently you did an intriguing segment on the humanization of pets. >> yes. >> caller: i've been building a careful position in blue buffalo ever since. what do you foresee long term
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for this stock based on its potential for growth? >> well, first of all, for the record, bug and everest love, love, love blue buffalo. second, though, why not buy a dex? why make this so hard? don't forget, when i think of idexx, you know what i think of? liquid gold, which is not like, you know, the irish butter gold. it's kind of different, you know what i mean? don't confuse those two, please. keep them in separate spots. do not eat yellow snow either. it's not going to cut it, okay? all right. analyze this. we're seeing these recommendations move stocks no matter how obscure they are. now that you know that, you need to get in on the action. on "mad money," two opinions enter the case, but only one can lead. don't miss an epic showdown over the fate of a top stock in the oil patch. then what the heck is happening with nordstrom? the stock's been dropping on down grades. i think i have to go there
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tonight and check it out. is it time to do some stopping in that stock, or is the company best left on the rack? it's a company that's more than doubled over the past six months, but can it keep the healthy gains going? we're going to have to figure it out. i suggest you stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.
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i love it when two analysts bull and bear start fighting over the same stock. a few days ago we got a classic example of this kind of beyond thunder dome style steel cage research death match. on friday we got a pair of very disparate calls on sim arex. the oil and gas company in
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oklahoma and western texas, including that ultra-lucrative permian basin that we talk about in texas. wells fargo downgraded the stock from outperform to market perform, wall street speak for buy to hold, while also lowering their price target. but at the exact same time, goldman sachs upgraded sim arex from neutral to buy, significantly raising their own price target. and all of this comes on the heels of jpmorgan recent sim arex upgrade from earlier this month, not to mention the bullish interview a week and a half ago. the reason i'm so fond of these analyst duels is they can be illuminating. when you know the best bull thesis and the best bear thesis on a given stock, you know what i think it does? i think it clarifies your own opinion, makes you have more conviction if the stock goes down so you know to buy some more. but disagreement between wells fargo and goldman sachs over sim arex is really just a single front in a larger war related to
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the whole oil patch. the wells down grade was part of a broader industry reshuffling and it wtas entitled e, and p, more naughty than nice, which is a play on christmas. sim arex simply being one of eight stocked downgraded, but it caught my eye. gold man's piece by brian singer was another industry wide call which singer also upgrading occidental petroleum and rice energy. both of these analysts actually see many of the same themes emerging, but wells is taking a more incrementally negative view of the landscape than goldman, and that matters. that's why i want to walk you through both sides of this conflict so you can get a better understand of sim arex in case you bought it. but also as well as you get a feel for the rest of the sector. let's start with the bear call from wells fargo. there were major positive developments. look at the price of crude up 52 today. they think those positives have already been baked into the stock. that's the key point.
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on top of that, tamarin and his team see potential structural headwinds for the group coming next year. for starters, thanks to a combination of lower costs and higher prices, the bears at wells fargo expect these companies will dramatically accelerate production growth next year. they predict kmal expenditures will rise industry wide and all this new production will naturally put some real downward pressure on the price of crude. in other words, sow the seeds of their own price destruction. but there's a second problem with the whole industry ramping its production. all this new demand will likely cause oil service costs to spike. this past year, companies like sim arex have been saving a fortune on drilling costs because right now it's a buyer rkz market. there's just not that much demand. however, has more producers start to drill, that dynamic is going to change. and the service providers like halliburton and schlumberger will start to have the upper
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hand again, something outlined on the most recent schlumberger call. third, wells makes a compelling case that even with this production cut from opec, the price of oil has a ceiling at around $60 because at that level, the market will flood with new supply, pushing prices back down. some of that is going to be through the futures market just so you know. finally they believe that the valuations of the expir agsz production stocks like sim arex have become stretched after the recent run. well, in their view, these stocks were already pricing in $60 oil, which is very little room for error given the fact that right now oil is $8 below it. even so now let's get the bear case here. that's pretty much it. now we want to go to the bull case. this is the goldman case, okay? interestingly there's a good deal of overlap here with the negative view laid out by wells fargo. like wells, goldman predicts a significant increase in u.s. production next year thanks to opec's generous production cut.
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like wells, goldman doesn't see much upside for crude at $60 a barrel. but there is a difference here in their views. the key area where these two firms differ is the question of efficiency. the basic idea being as the price of crude goes back above $50, drillers will probably start using lower quality assets and second tier service pro-viedsers which means the old industry will become less efficient. wells thinks that the recent efficiency gains by the oil producers are simply the result of low prices and low demand for drilling services. once these companies start drilling aggressively again, they think that efficiency gain is going to vanish. goldman disagrees. this is really the fulcrum point, but it's important, people. wile they acknowledge that the companies face new headwinds, their takeaway is the companies with the best execution and the best acreage will still be able to improve. >> buy, buy, buy, buy. >> and that's why they upgraded sim arex, because they've got those fabulous red hot assets in
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permian basin and a terrific management team that knows how to mitigate the impact of potentially rising drilling costs. now, it's in this view of sim arex that goldman and wells fargo really differ. while the bears at wells fargo acknowledge the company has some excellent assets and terrific execution, they don't like the stock's valuation. they think it's too expensive. sim arex valuation, quote, appears more fulsome than mid cap peers, end quote, and while they believe it does deserve a premiere, they say agasee, quot, less incremental running room for the shares. goldman says the potential is underappreciated. they expect the company to spend a lot more on drilling next year, $1.2 billion in total, 39% more than the consensus view, which will allow sim arex to dramatically grow its production, and that's what we want in an oil stock. goldman expects sim arex to
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raise its production forecast when the company announces its follow 2017 guidance in the first quarter of next year. in short, she see this catalyst-rich story with a lot more room to run. where do i come out? i adore sim arex's acreage, and i agree they have one of the best technical teams in the industry. if anybody can keep their costs downs in an atmosphere where a lot more companies are drilling, it's these guys. we had tom jordan, the ceo of sim arex on the show, and he told a very compelling story about his company's potential for production growth. in the end, i side with the bulls at goldman. it's true that recently a rising tide has pretty much lifted all bolts in the exploration and pruxz space, things will get more difficult going forward, even with a hugely pro-petroleum president taking office next month. trump may be able to save these companies money by slashing regulations, but that will mean more production which puts a ceiling on the price of oil.
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the companies with the best assets and best execution will be the ones that really thrive. people, that's sim arex to a tee. as tom jordan told us not too long ago -- >> we look golden at a $45 oil, $2.50 gas world. we've gotten our costs down, and we have our well productivity at a point where we can make a very healthy living and have a growth profile. >> granted sim arex has had an epic run and the stock certainly doesn't look cheap, trading at nearly 38 times next year's earnings. but like diamondback energy which is up eight points from its gigantic last week, sim arex is a goeth oil company, boosting its production. when you look further out, the stock trades at just 26 times its 2018 earnings estimates. for all we know, i think those numbers are going to prove too low. here's the bottom line. the decisions are getting tougher in the oil and gas space
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after the monster run these stocks have had in the past month. but when you consider both the pros and the cons, i still believe that a stock like sim arex, it is worth owning. >> buy, bye-bye. much more "mad money" ahead. nordstrom is making a big push online this holiday season by letting shoppers send each other presents digitally. should you try it on or call the fashion police? then a otis pharma posted positive results. i'll tell you if good news for the company could bring healthy returns to your portfolio. and trump and china had plenty to say to each other this weekend, but most of it was ignored. what the latest u.s./china spat may mean for your money. stick with cramer.
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nearly three years ago, howard schultz, the founder and outgoing ceo of starbucks told us that the mall is slowly dying. people just don't shop the way they used to anymore. gone are the days when you'd drive to the mall and peruse leisurely through your favorite stores. now we sit at our desk, surf amazon, and can pretty much purchase anything we want with just a couple of clicks, usually with free shipping. a for years the traditional mall-based retailers have been struggling to keep up with amazon and its ilk, doing whatever they can to draw in customers and spending a fortune to build out their omni channel businesses so they can compete online. unfortunately for many old school retailers it simply hasn't been enough. maybe it was an impossible task to begin with. i don't know. just consider this very smart piece of research published by the brilliant matthew boss from jpmorgan last friday where they downgraded nordstrom to an
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underweight in the wake of their recent meetings with the company's management team. nordstrom used to be considered one of the best in the business but the stock tanked nearly 9% on friday's response to this note. so what's jpmorgan worried about? and is there any possibility that nordstrom can turn things around? like so many other retailers that depend on the shopping mall, nordstrom's numbers tell a pretty depressing story frankly. in the most recent quarter, the chain managed to deliver 2.4% increase in its same-store sales, a major improvement considering they had been either down or less than -- or less up than 1% over the previous quarter. so they've been kind of flalt lining. this is nice. but -- and this is a really big but -- nordstrom also indicated that these latest robust-looking numbers benefited from one week of their annual anniversary sale, which is such a big deal. that got shifted back into the quarter, so it really wasn't a clean comparison. now, it's not like nordstrom is
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just taking this slow down sitting down. these are good managers. the company rolled out a host of initiatives designed to kick start its sales. but unfortunately, management keeps providing some very worrisome updates on traffic trends and the state of the consumer. conference call after conference ca call. let me walk you through some of the things they've said over the past few quarters so you can understand why it is that nordstrom stock is going down and perhaps nordstrom the company is in a little bit of trouble here. when nordstrom reported in august, they talked about lots of new initiatives to improve the customer experience and changing up their merchandising strategy to give customers access to newer products. but when pressed during the question and answer session about traffic trends, management skirted the issue. multiple analysts asked for commentary on it, but all nordstrom would say was that it was, quote, roughly equivalent to what it has been, end quote, which is not what we wanted to hear considering it had been pretty suboptimal beforehand. then nordstrom reported its most recent quarter a little more than a month ago.
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yet again we heard all the significant changes they had made to the way they operate. changes designed to improve efficiency and give the customer a better shopping experience. we heard about website upgrades and cost savings, not the first time. but then nordstrom's management was finally open about traffic trends and they said -- well, let me just quote them. i don't think it's any skretd out there that there's been some declines, and depending on a lot of the reports that you look at, mall traffic is down anywhere from 4% to 5% based on a bunch of different reports that we see, and that's pretty consistent with how our trends have been, end quote. ouch! now, there's a second problem too. the boater nordstrom's website becomes, the less incentive you have to actually go to nordstrom. in other words, they're cannibalizing themselves. which brings me to this jpmorgan down grade. boss talked about a worrisome meeting he had at seattle head quarts with the co-president of
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nordstrom, who is such a smart guy and a great merchant. the line that really jumped out at me was according to nordstrom, the traffic levels at their stores are at their worst level since 1972. yes, the mall at the worst level since '72. think about that. they talked about a widespread and accelerating shift away from bricks and mortar retail. management doesn't seem to have any kind of fix. according to jpmorgan, they said they're focused on managing inventory levels to assume that same-store sales, even though they're about to annualize some very easy comparisons, aren't going to be that good. the company is industrial trying to figure out how to run a hybrid model where they can take advantage of both online convenience and instore service. but we don't even know if that's possible for a really big department store. the only real near term fix aside from investments in technology -- and they've done so much of that already -- cutting costs to the bone in order to bolster its bottom line. at least in the short term. but it gets worse.
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nordstrom's management previously said they planned on generating a return on investment capital but jpmorgan got them to admit this goal was more ambitious than achievable. plus all the company's spending to upgrade its in store technology seems like a task. it is becoming obsolete year after year. the one bright spot is the company's off priced nordstrom rack chain, and that is good. but even that hasn't been enough to bolster the declining gross margins, what they make after the cost of goods sold. the cherry on top, nordstrom said whaile all their stores ar currently profitable, it's possible they may need to rationalize the store base. where do i even begin with so many negatives? the fact that nordstrom's traffic is the worst it's been since 1972 is stunning. worse than stagnation of the late '70s. you can't cut costs out of that
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problem. you can't do it. it doesn't -- it just doesn't get you there. now, in recent months we've heard from a number of bricks and mortar retailers that seem to be doing very well. i want you to think of children's place, ulta beauty, tjx, burlington stores. they call the whole death of the mall thesis into question. these are all either unique concepts or bargain chains. weakness is now center stage thanks to nordstrom's very frank assessment of its difficulties. it's not just nordstrom. on macy's latest conference call, they said while they'll do everything they can to grow the number of transactions at their stores, quote, but i don't think we will count on that as we go into next year, end quote. in other words, macy's has no idea what traffic is going to look like going forward, but they're certainly not anticipating anything positive. we know last week we saw that big selloff in ralph lauren and
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v.f. corp. it's worrisome, people. while parts of the mall are indeed alive and well, we witness children's place, other marts like nordstrom seem to be slowly decaying. it doesn't seem like there's a cure for the waisting disease known as the rise of e-commerce. not good for the department stores, but still one more reason to buy, yes, the stock of amazon. time and online hand in hand march on. joanie in illinois, please, joanie. >> caller: hi, jim. >> hi, joanie, how are you? >> caller: this is joanie, die hard cub fan from chicago. >> good for you. good for you. i love suffering franchise fans who suddenly are rewarded with a win. congratulations. >> caller: that's right. that's right. i would like to ask you about ulta. i've had this for almost a year, and it's up and down and up and down. i know it's a wonderful stock, but i just wondered what you thought about the future. >> you know, ulta is a stock,
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and ulta the company, they're two different things. ulta the company is doing unbelievably well. ulta the stock an tisz patded a lot of good news and then has been giving up a lot of the gain. i think it's just classic long-term profit taking and the stock will grow into its market cap not unlike what's happening at costco right now, where the stock stalled, but the fundamentals were so good, it's finally starting to break out. i think that's a good analogy to ulta. patrick in north carolina, patrick. >> caller: hey, jim. big charlotte, north carolina, booyah to you. >> good to have you on the show. thank you for calling. >> caller: following the election of donald trump, many large tech plates took a hit and then made a modest recovery with the exception of alibaba. could i take advantage of the recent decline or be worried about the potential conflicts with china that may arise from a donald trump presidency? >> i've got to tell you, patrick, you just answered the query. when you were saying your excellent question, i was going on fast in my mind saying, don't
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i have to point out that there are issues involving trump? because that's another part of the show that i'm discussing. so the answer is i think it's a very big risk factor. and we've got a lot of companies where there are not as many risk factors. so i'm using that as a strike against the company. all right. look, guys, the mall isn't what it used to be courtesy of e-commerce and of amazon. case in point, the fabulous store chain that is nordstrom. the company sure did try to fight back, but sadly i can't say that it's working. much more "mad money" ahead including my interview with a oh nis pharmaceuticals after another clinical study that seems positive. then china's state media says trump has no clue how to run a superpower. as we just mentioned, there's issues here. as the rhetoric keeps up, should you be concerned? i'll tell you what trump's actions mean for your stocks. and all of your calls rapid fire in tonight's edition of the lightning round. so stick with cramer.
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what do we do with these biotechs that have rocketed higher since the election? take ionis pharmaceuticals,
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which just announced positive phase three clinical trial results for a drug that treats a pair of rare met abollic disorders. remember, ionis is the company that pioneereered drugs that target the rna in your cells. for those of you that don't remember biology class, rna is sort of like the post office. they take these orders and carry them to the rest of the cell, which means if a company like ionis can change the message that the rna is carrying, they can help cure all kinds of diseases. now, ionis has dozens of drugs in the platform use platfo. that includes this drug we got data on today, which treats two serious met abollic disorders that currently have no known cure. i like that ionis has so many shots on goal, but the stock has
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run up more than 56% just since the election. is it getting ahead of itself? let's check in with dr. stanley crooke, the founder and chairman of ionis pharmaceuticals. dr. crooke, welcome back to "mad money." >> great to be here. happy holidays to everyone. >> same tao, doctor. after the close today, we got this release. advanced first generation 2.5 lica drugs in a pre-clinical development to treat cardiovascular disease. i know pre-clinical is very, very early. what's the significance of this? >> well, we're really excited about this new chemistry because we think it could take the doses that we use for targets in the liver down to as low as a milligram a week. if you can imagine treating a patient for a year with 50 milligrams, so it's a significant advance and potency, safety, convenience, and many other things.
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and it's for a target in met abollic disease that we're not disclosing at the moment, and it's the first of its kind to be moving into development. so we and astrazeneca are, you know, very excited about it. again, i think it is a representative of the continuing advancement in the technology that we continue to make, that continues to make the pipeline more valuable. >> let's talk about that. we're trying to get a handle on the stock having such a big run, and a lot of it is because various milestones get hit. which milestones are going to turn into some really big money, and which ones are we worried about safety concerns and maybe we're being too aggressive about? >> well, i think the most important thing going on right now in terms of benefit to patients and in terms of immediate commercial potential is spinrasa, the drug that you mentioned to treat spinal muscular atrophy. that has completed phase three trials and is moving rapidly through the registration
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process. we and biogen are optimistic that spinraza could be approved in the very near future. that is a fundamental advance in the treatment of that disease. it appears to work in all forms of spinal muscular atrophy, the earlier we treat, the better. in fact, if you treat before symptoms, at least many of the infants appear to grow normally, which is just astonishing. >> again, we all try to figure out how big that market is so that we can estimate where the -- >> well, if you look at the analyst reports, you know, i think the smalestimates are in $2 billion to $5 billion range. i think i'll leave the speculation to them. we'll soon get the opportunity to watch the value in brings in the market place. >> when i was going over the december 14th bmo capital markets prescription, you have a phase two study finishing up that we haven't talked about at all. type 2 diabetes with patients
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with -- i'm sorry about my pronunciation, gcgrrx. that's the first time i've heard about that. could that be significant? >> yes, it could. now, remember that gluk agone receptor, our drug, is targeting end-stage diabetes. this is a place where new therapies are very badly needed. more and more patients are progressing on to insulin, and then while being treated with insulin, they have to go to really extremely high doses of insulin. and insulin itself has many side effects. we've already announced interim results from that study where a dose of just 50 milligrams a week increased hemogloben a 1 c by more than a%, which is a remarkable change at that dose. this study will be unblinding very shortly, and we hope to report the data before the end of the year. and in that study, we're
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evaluating 50 and 100 milligram doses for 26 weeks in patients with uncontrolled type 2 diabetes taking metformin. so we think this drug could be an extremely important addition to the management of diabetes. and with a lot of sourcing today, i think the most remarkable thing about va lon sourcen, it lowered triglycerides 1,500 milligrams per deciliter in 13 weeks in the five patients who had fcs, which is the primary indication for the drug. and none of the fcs patients discontinued therapy, and that treatment effect was maintained throughout the 26-week study period. >> now, is that the triglyceride off ott chart try gis ride, or will one day that be used for people who have high dry glis ride, which is a gigantic market. >> this is focused on patients who have severe disease.
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but we have a second inhibitor that's in clinical trials that is the likaform, that takes the dose down about 30 fold to 5, to 10, to 12 milligram per week dose. that drug is better tolerated, more convenient to use, and that's targeted to the very broad triglyceride market that isn't met by current drugs. so it's a strategy of continuing to advance the technology, then using the initial -- the drugs to treat the patients who have the most severe form first, followed by an even better drug. we think it's working. >> all right. very good. let's leave it at that. you have obviously a lot of shots on goal as we've been saying many times. that's dr. stanley crooke. he's the chairman and ceo of ionis pharmaceuticals. thank you so much, sir. >> great to be here. >> okay, these are speculative stocks. it's moved up a great deal. all i say is if you're interested in the company, please study the work. there are many public documents because i need you to have conviction if you're going to
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>> announcer: lightning round is sponsored by td ameritrade.
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>> it is time! it is time for the lightning round on cramer's "mad money." that's where i take your calls rapid fire. you tell me the name of the stock. i tell you to buy, buy, buy or sell, sell, sell. we'll play this sound -- [ buzzer ] -- and then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." we'll start with steve in texas, steve. >> caller: hey, jim. a big detroit sports fan from texas booyah to you. >> good for you with that kind of cross area, you got a lot of winners between them. what's going on? >> caller: i'm looking for your opinion on masco. >> i like masco but the fact is their products are sold at home depot, and i think home depot is taking share from lowe's and sears. woo we're buying h.d. johnny in connecticut. >> caller: a big woodstock, connecticut, booyah. >> i like that. what's going on? >> caller: you are simply the best, period. what do you think of wisconsin energy? >> all right. w.c., it's good but i'm not recommending many utilities other than american electric power, aep.
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that's in part because they may not have to transfer their coal plans into nat gas. james in ohio, james. >> caller: hey, jim, how are you doing? >> i'm good. how about you? >> caller: i'm doing great. doing great. i'm a first time caller. >> thank you. >> caller: i have a question for you. >> yeah. >> caller: on del mont industries. >> classic american industrial. i'm talking about poles for utilities, the lighting. it's good. i like it. oh, no. and that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade. well, i feel pretty smart. well, we're all about educating people on options strategies. well, don't worry, i won't let this accomplishment go to my head. i'm still the same old gary. wait, you forgot your french dictionary. oh, mucho gracias. get help on options trading with thinkorswim,
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here's the thing you need to know about the way donald trump's behaving toward china. it's not that he wants a trade war. it's that he believes we're already in a trade war, one that the chinese are waging and winning against us. and it's not that he wants to retaliate. it's that he wants to win himself. so here's my read on trump's view of china. first he thinks the chinese have had their way with us endlessly. he believes we're lap dogs who are willing to let them take our manufacturing jobs at will. we don't even put up a fight. second, while he wants to protect u.s. manufacturing jobs, he doesn't really care about the businesses that are currently doing a lot of business in china. so, therefore, they may have to be sacrificed. the chinese probably wouldn't have seizes the drone before trump's election.
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now the ruling communist party doesn't seem to know what to do. for example, they aren't sure what trump really has up his sleeve, tariffs, outright recognition of taiwan, maybe something military? trump i believe is betting all the chinese will do is retaliate against our businesses. this is important because before trump we had a twofold policy toward china. don't poke the tiger. let them buy as many of our goods as we can sell them. we sided with the exporters over what trump sees as our might right. he believes the chinese need to know who is boss, and in his view, the boss is the sufnlt. if it hurts the earnings of some of our companies, that's the price we have to paid. i will say this, just as the positives of deregulation, repatriotation, and lower taxes are partially offset by the fact it's going to be harder to offshore jobs to meex, our companies won't be able to count on chinese sales to make all the numbers. there's no american company that china can't live without. even starbucks, which is loved.
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listen, this chinese cold war business is a real risk factor. but if trump believes as he's told me before that the chinese think we're dopes because we don't even know we're in a trade war with them, then they sure will know once he's sworn in. do you need to sell all of your company stocks with big chinese exposure? no. you just need to recognize that you can't pay as much for them knowing that trump's willing to play hardball. and to do that, he'll have to say no to some very good american companies that need china in order to help workers who have lost their jobs to them. wow, my view? i understand the tradeoff, but as far as who's right? well, to borrow a line about the impact of the french revolution, it's too soon to tell. stick with cramer. all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments
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and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.
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go to twitter and tell me if your apple store is out of watches. that's what i keep hearing. i like to say there's always a bull market somewhere. i promise to try to find it just for you right here on "mad money." i'm jim cramer, and i will see you tomorrow! lemonis: tonight on "the profit"...
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a new york fashion designer was once a phenomenal success... what's the biggest year that you've had? susana: 13 million. lemonis: ...but today, she finds herself under siege. susana: there's no respect here for me at all. there's no respect. where's the respect? lemonis: customers are deserting her label. anna: honestly, we didn't make any money since 2009. lemonis: friends and family are demanding a piece of her business. susana: the brothers think i owe them their birth right. lemonis: i feel like you're being kind of, like, shaken down. and instead of standing up for herself and fighting for her brand, she's letting it fall apart at the seams. susana: this is bull[bleep] it's total bull[bleep] lemonis: if i can't help her regain confidence and harness her incredible talent... susana: it's really stressful to...

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