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tv   Mad Money  CNBC  December 11, 2018 6:00pm-7:00pm EST

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>> not chasing guy. >> one less bell to answer, deon warwick. go with me >> way to go, brian. on worldwide exchange tomorrow morninatg 5:0 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 isn't just to entertain but to teach you and put it in context. call me at 1-800-743-cnbc. or tweet me @jimcramer what the heck happened today
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it's like someone hacked the president's twitter account to goose up the stock market with a positive tweet about china and then stocks cratered and turned out the relations with the chinese remain rotten. ugh! finally we rebounded dramatically and that's how they can roll over. if -- with the dow up before nosediving into the red and then dipping again to close down 53 points s&p to climb 0.4%, but the nasdaq absolutely advanced 1.6%. in today's treacherous tape you have nothing but whiplash. if you did it, let me tell you, you are not alone. let me set the scene because it's around important day, i think this morning i got up at 3:30. and even though europe was
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looking good, we were down double digits. i expected to get back some of the gains from yesterday's bizarre intraday rally that took us down 500 points to up 34 points over the next few hours though, the futures then started rallying curiously. they rallied back to even and then surged higher around 7:00 a.m. this is premarket. we began to hear encouraging buzz about the low level trade reports that the chinese might slash their tariffs on imports and into onerous joint ventures that often steal intellectual property that's the cost of doing business in china. then at 8:19, the president tweeted very productive conversations going on with china. watch for some important announcements. holy cow, it doesn't get more bullish than that. we have been worried about some
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real bitterness after we had the arrest of the ceo of huawei. of course it roars open, look at the trajectory, down and then up remember, there are only two issues that wall street seems to care about right now what's the federal reserve going to do with the -- when it meets next week and can we reach a deal with china? personally i prefer a good deal, but most iner haves are so worried about -- investors are so worried about the issue with the tariffs. the next thing you know the president talks about the wall on the mexican border saying he'd be proud to shut the government down if he doesn't get his way. the markets hate the government shutdowns and that caused us to pull back from the highs then at 11:35 "the washington post" publishes a piece headline, trump administration condemned china over hacking and economic espionage, escalating tensions between superpowers the article tells us that
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multiple government agencies are expected to condemn china citing a documented campaign of economic espionage and alleged violation of the landmark 2015 -- refrain from hacking because of personal gain the department of justice plans to indict those involved in the state sponsored cyber terrorism. this is the kind of story that torpedoes the negotiations and when that happens it will torpedo the market itself. if you wanted to fool people into buying stocks this morning, it's hard to think of anything that would be more effective than the president's tweet about how great trade talks are going. so much more productive conversations. the next announcements are announcements about prosecutions now, this hacking issue comes as no surprise to regular viewers of the show. we had fireeye the cyber
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security firm on the show and they talked about the espionage and something that's been echoed on a bunch of security calls this is how china is hitting us back, since they can't hit us with tariffs we don't export a whole lot to the people's republic, they don't want our stuff of course this market has the memory of a may fly and then the dow started to climb again but my prediction is when the formal announcements come this week we'll another reversal of fortune. what are you supposed to do that you can get picked off by the president of the united states a bullish tweet, it means nothing to him followed up by a bearish "washington post" piece, followed by a rally and that's next to nothing? this is what you do. there is a solution. i think you need to go back to the broad themes that hold up through this madness because they involve secular growth stories and very little to do with china what do i mean by that
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how about salesforce, splunk on last night, terrific vmware they're doing well workday. they pull back on days like today. you want to play the chinese hacking campaign, think of cyber security now we have been buying palo alto networks. that's the best of the breed and it's in my charitable trust. there's others too i mentioned fireeye. very good company. i like health care particularly the managed care companies. i want you to think like united health or centene has a meeting at the end of the week we talked about that on friday i like pharma and medical devices like merck and j&j i'm looking for stocks with ridiculously high dividend yields and strong balance sheets. you might consider to give you the paradigm, at&t, which sports a 6.7% yield here and can raise the dividend if they feel like it the story is you need to buy the stocks on the way down using the wide scales. if you wanted to buy some
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microsoft which has a terrific cloud business, you wait for a swoon. you put orders in for let's say -- you want to buy 100 shares 25 shares as it goes down. that way you don't feel -- nothing is more arrogant than buying all at once if you do it my way what's the worst case scenario? the stock goes higher. you have a profitable position that's smaller than you might think. notice what i'm trying to stay away from and -- anything connected to the chinese economy or anything that could be boycotted by the chinese or the industrials or the oil they aren't worth it right now unless they have accidentally high yields. as at&t does and can afford to pay them it's important you can pay them. but the stocks of many industrials still haven't come down enough to give you the accidental high yield status i feel the same way about the banks. they're in the grips of the terrible bear market but the stocks don't yield more than 4%. most of them don't
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that will give you a decent cushion. without that cushion they're too risky. i know this market is nauseat g nauseating i know it's out of sync with stocks it contains a mixture of stocks that are vulnerable to china and better to forego the group risk you're exposing yourself to with most of etfs beyond that, you'd be better off trying to pick an individual winners in addition to indices here's the bottom line hey, we have to call a spade a spade. this market isn't just volatile but it's treacherous maybe we have seen it bottom yesterday. i don't want the treachery which is not going to go away to get you. use it to your advantage by picking up high quality secular growth stocks at a weakness. if that's too tough for you nothing wrong with sitting on the sidelines and waiting for a better time to get into the index fund sure it's possible we saw the bottom of the stocks yesterday but don't you want some dry
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powder for when the justice department springs the news on the chinese? cory in wyoming, cory. >> caller: hey, jim, this is cory, big booyah out of caspar, wyoming. >> what's doing on >> caller: so my question is on morgan stanley i have been adding to the position for four or five months and as it goes down i keep buying off of the 52 week low. i don't know if i should just cut my losses -- >> no no no no you're buying -- you're buying a very good financial. it's in a bear market. so you know just understand that it's not going to go higher. until we get some sort of washout that people stop selling the xlf and the other etfs bringing it down but to sell morgan stanley, i think it would be a mistake. you have to leave room maybe it goes to 35. that would be unbelievable this market is treacherous what i want you to try to take
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advantage of some treachery. steer clear of etfs remotely related to the chinese economy this is an individual stock picker's market. on "mad money," two huge deals have rocked the cannabis industry i'll tell you if you should be considering a play in the space. this market has been up the of late. so i'll get some more context for the declines, see if they can give us insight into where the market's ultimately headed. hey, how one medical device company is working to combat the opioid crisis in this country. i'm talking to masimo's ceo. so stay 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. duncan just protected his family
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with a $500,000 life insurance policy. how much do you think it cost him? $100 a month? $75? $50? actually, duncan got his $500,000 for under $28 a month. less than a dollar a day.
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his secret? selectquote. in just minutes, a selectquote agent will comparison shop nearly a dozen highly-rated life insurance companies, and give you a choice of your five best rates. duncan's wife cassie got a $750,000 policy for under $22 a month. give your family the security it needs at a price you can afford.
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♪ there's no place likargh!e ♪ i'm trying... ♪ yippiekiyay. ♪ mom. ♪ is reefer madness making a comeback i'm not talking about hemp
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but cannabis with low concentrations on thc which congress snuck into the farm bill they passed today i'm referring to last week when the large tobacco companies among many other branding atrocities announced that it was getting into the gone sa gate. so another one of the canadian cannabis producers trying to profit from the legalizations in the great white north. this was a big deal. a positive one it makes sense to crone us when the stock was at 10, i thought this going to happen here's the big thing the canadian cannabis business has canopy growth corporations the only one of the stocks i have been willing to endorse because they were the first marijuana grow tore get an american backer, constellation brands a bunch of good wines and liquors. now altria wants a piece of the
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business, you have two players canopy versus cronus they were higher in anticipation of the legalization in canada. but at the moment it was repealed, the stocks have peaked an they have been -- and they have been crushed ever since i think a lot of it has to do with the sell the news dynamic the cohort got real hot and legalization was bound to be disappointing. now though the group may have come down to the point where the best player is worth picking it. all right, let's compare the two. who's the best before we get into the specifics let me be clear that altria is about to own 45% of cronus, they have orders to buy 10% more. the idea here is that they can take altria's money and use it to grab market share in the
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rapidly growing cannabis industry they don't want to just grow the plant, but have medicinal marijuana and think about it they have a ton of experience selling cigarettes to vape pens. nobody knows how to market the heavily regulated products like altria but even with their development, can they compare to canopy group? it isn't a fair comparison we are talking about the $11.4 billion company and canopy has scale and scale matters in this business. bear that in mind. how do the canadian cheech and chong stock up okay cronus has the supply with the four provinces according to the canopy's ceo
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they have the most sdus and the other one leads in one out of the 13 that's because canopy sells more products flowers, oils, soft gels and vapes. canopy has 1.3 million square feet to grow and how about the medicinal marijuana market canopy is a much larger last quarter. they shipped nearly 2,200 kilos of medicinal product and the other one made a lot less money, $3.8 million of sales. more important, canopy has a lot more intellectual property this company has -- why do i like it so much? it's got 137 patents for all sorts of value added products and the agricultural side of the business too we don't know much about cronus
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and intellectual property or the backers. the key to the thesis, they have consolation brands behind them on the reason we're talking about them is altria got involved and they know how to get people intoxicated as i was witnessed up close and personal at my restaurant there are two package plays trying to off set declines although remember, in the case of constellation it's not really a decline, but it's a possible rate of growth decline there's a long track record of acquiring small properties and growing the brands effectively altria has been scrambling to diversify. they're in the talks with juul, the top dog in the vape space of many parents in this country now you hear about this deal constellation took the time, thought we'll pick the best player to invest in and altria feels impulsive.
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and now the idea is that the two will have the cash to expand, but canopy has gotten 5 billion canadian dollars from constellation brands they own 38% of the company and if they exercise additional ones canopy will get 4.5 billion. and 41.5 billion for cronus. and taking controlling interest of the company the difference is stark, isn't it canopy got a lot more cash than the other one. and they won't get -- the deal will close next year, which brings me to the next point. when i say canopy has a ahead start we are talking about a big lead over the competition. constellation started to fund them over a year ago and they made a much larger investment that closed last month canopy already has the money putting it to work and spending it as we speak the other one doesn't get the payout from altria until the
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transaction closes next year what does this matter? because canada just legalized marijuana. that's why this is incredibly important time for the industry. every day that passes that canopy has deep pockets is a deep that canopy can win market share that they can hold on for years into the future. yeah, when you look at the revenue forecast the stock is little more expensive than canopy or priced to sale basis which is the best way to measure things they sell at 11.6 times of sale and canopy at 11.4 times of sale neither one is cheap but the other one shouldn't be selling at a significant difference that's game, set and match both have outstanding warrants that constellations and altria can take a controlling interest in the business. for canopy, it's 14% higher than where the stock is currently trading and the other one is
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11%. i think constellation and altria will exercise that in this country. and the bottom line -- even with altria investing, i believe that canopy growth remains the best way to play the canadian cannabis market. although you can easily buy shares in the backer, constellation brands which has a very good revenue stream and fast growing beer i think it's less risky. i don't mind buying shares in cronus, but i'd love to have them on the share and debate the issue and altria is welcome too. look for more marijuana buyers especially liquor companies. competition for the legalized pot is going to tear into their sales. joyce in washington. >> caller: hi, jim i am calling about the canadian stock shopify and what their
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involvement in the cannabis might mean for the stock. >> well, you know, in the end it's a cloud based commerce platform that's very good. it's going to trade on that. that's what matters. and it's just a very good company. i like it very much. i think it's really good well, here we go between the two i'm going with canopy best way to play the canadian cannabis market. constellation brands is a smart pickup too less risky i won't stop you from buying the other one, because it's a low dollar stock that's why people want to buy it the recent instant i'm going off the charts to see if the whipsaw action can continue. opioid abuse is one of the most profound public health crises facing the u.s. today it's easy to see the glass as half empty, but i'm pointing out the bright spots in the tech sector so stay with cramer
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you don't need me to tell you that this stock market has been pretty darn volatile, often down right destructive but it pays to have some longer term context let's not forget that we're coming out one of the most incredible bull markets in history. a bull market that went into overdrive when donald trump won the presidency in march of 2009 the dow jones bottomed and it's never going off the charts we have a brilliant technician, and as well as being the publisher of right view trading.com. in order to give you some more context for the recent decline because that can give us insight into where we're headed. rob is pretty bullish here
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maybe we didn't put it in the bottom and the market is trying to digest the enormous gains from the phenomenal multiyear rally. they're limited, you slowly churn sideways, flopping and chopping before either resuming the previous move or going the opposite direction but there are other kinds of consolidation. more volatile moves that can whipsaw the averages did that happen today and it can cost you money marino thinks we're having one of those and the best way to navigate is to take a wider view of the landscape that's the only way you can get enough sense of perspective that you won't panic. let's start by taking a look at the monthly chart of the nasdaq composite going back to 2009 hey, not bad which is when the bull market was born while there were some pull backs on the way up, in general the rally in the nasdaq was strong and steady the tech heavy index traded in the fairly narrow range as it travelled from the lower left-hand corner to the upper right-hand, exactly the kind of
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action you want to see then we get to october and things change. the fed got too aggressive with the plans to tighten the white house started to talk about the trade war with china like it's the cold war with the soviet union something i actually kind of agree with wall street freaked out. from the highs in october to the lows in november, the nasdaq plunged 16%. that was a horrifying period we have been a lot more negative but sure the decline has been brutal, but we have been through previous consolidation periods that were even more volatile and they didn't derail the bull. you can see it when you look at the chart of the nasdaq. but loggered in log rhythmic scale. only a normal chart the spacing on the "y" axis is done on points and the logger rhythmic, it's all about percentages on the scale it would look the same as it moved from 200.
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it's another 100% gain if you compare the action across the long periods of time, marino points out in 2011 to 2015 there were even wider ranges than the one we're experiencing now from 19% to 25% even though that the nasdaq has lost a lot of points the 16 decline is smaller than 2010, 2011, 2015 and then the market rebounded phenomenally it's something good. this made me think that you don't want to be too bearish in short, the situation may not be as bad as it seems. let's zoom in a bit to the weekly charts of the major averages to identify important levels of support and resistance on the weekly chart of the s&p 500 which is the top one, we have a resistance at 2800. and a floor support running in
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the zone from 2,550 to 2,600 that's a down few points aside from the rally going into the end of september, this is stuck here i was e-mailed right before the show, we have seen the bottom. how about the dow jones industrial average, there's a consolidation pattern going with 26,000 and a floor from 2350 to 2400 i'm sorry, 23,500 to 24,000. only a few hundred points below where we're now trading. look, in marino's eyes it looks like the dow and s&p are trying to hammer out a bottom the weekly chart of the nasdaq right now he sees the ceiling at 27,500 the composite. and a floor at 6800. the best case here he wants to see what's known as a hammer candle okay a hammer candle where say the nasdaq rallies and closes on
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friday near the highs for the week the bottom will hold and perhaps rebound back to the high end of the range. you know what? if i had a hammer, i'd hammer -- oh, look at this okay what a staff, huh? like that apple ad no okay, hammer looks like this you have to get really close i'm asking joe see, that's joe behind the camera this is really close that's a hammer. this is a hammer that's a hammer hey, if i had a bell -- all right, peter, paul and mare. i love them. want me to throw the hammer? probably wrong well, i'll keep it put it in my back pocket that i bought for 5 gs. what if things go wrong and the floor of support that marino is counting on doesn't hold look at the weekly chart of the russell 2,000. it's around 1450 okay
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and the ceiling at 1565. all right? and that's about a 6% rate 6.6. if it breaks down below the floor marino expects another downside taking us to 1,350 that would be awful. that level would be a fibonacci retracement of the rally from 2016 to 2018 if he's right this isn't a bear market but a consolidation phase we saw those in the 2010, 2015 if you have conviction do some buying and even if the floors are violated marino doesn't think we'll have a whole lot more downside but you need to zoom in further to find a good entry point check out the daily chart of the dow jones average. now we're going to the short term here. ever since we entered the house of pain in october the dow has
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had higher highs, higher lows that has me nervous. marino says that each of the dow's lower highs was delineated in the evening star. now, my executive producer regina says there's none better. this is what an evening star candle pattern looks like. okay i like it. i know, it sounds like something straight out of astrology. but evening star pattern is a three day bearish reversal, okay you know large update followed by a narrow opening and -- narrow opening and -- thank you and closing range candle the next day with an unusually large down day on the third session. it is pretty classic illustration of what happens -- [ laughter ] we're not using this, are we i mean, we're not doing the show right now, are we? all right. it's pretty much what happens when -- it's not carnac the
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magnificent, from bullish to bears. watch for that signal. a day that we close up substantially, okay. then a day where we trade at a pretty tight range, then a big down day because the last few times it signalled much lower prices and at the same time, marino notes that the dow lows have been marked by a different signal i wish i had a hammer again. back to the hammer candle. okay that we mentioned before where we're down big, okay, but closing at a high end of the sessions range that's exactly what happened yesterday. yesterday. see, it was a key day. marino -- marino thinks it may be a very bullish signal that the dow is finished going down we can get a nice bounce again that's what something that mark jenkins said a lot of people said yesterday was a significant day. but the bottom line. the chart suggests that the
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averages are trying to bottom in preparation for the nice rebound. this is -- this -- how did the hammer have hair on it this sounds too sanguine for me. but you know what? i think it's heartening to put the declines in in a more constructive perspective wouldn't it be something if we did bottom yesterday let's go to kevin in massachusetts. kevin. >> caller: hey, booyah, jim. first time caller, long time listener. >> excellent >> caller: im, my question is, i reinvested my dividends but my holdings are becoming heavily weighted with one stock. i'm using it to purchase other stocks to try to balance out my portfolio. am i doing the right thing >> yes, absolutely i do like the reinvest because over time that can be remarkable look i want to diversify my portfolio. i don't want one stock if you can do that to a bunch of stocks that's true i'm not one of the guys who tries to scare you by talking about the single stock risk.
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i'm worried about bad stock risk if you have a few stocks i think you're terrific. i like your plan i think it's reasonable. all right. here we go our chart is pretty darn optimistic and more than i am. he says the average is up for a rebound because he thinks we have a hammer candle bottom. what can i say it's a glass half full if i ever saw one. much more "mad money" ahead. many died from the drug overdoses and i'm talking to the ceo of masimo to find out how they're countering it. i'm going to give you my take i think they're bottoming -- rapid fire, in tonight's edition of lightning round. so stay with cramer! duncan just protected his family
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with a $500,000 life insurance policy. how much do you think it cost him? $100 a month? $75? $50? actually, duncan got his $500,000 for under $28 a month. less than a dollar a day. his secret? selectquote. in just minutes, a selectquote agent will comparison shop
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nearly a dozen highly-rated life insurance companies, and give you a choice of your five best rates. duncan's wife cassie got a $750,000 policy for under $22 a month. give your family the security it needs at a price you can afford.
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if you believe the economy had peaked and i do, then you need to start making some decisions about how to arrange your portfolio as we head into 2019 because it's not like a slowdown causes all stocks to get hit there are some names that tend to perform very well in the
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weaker economy the nice consistent growers that make the same amount of money in good and bad times you want recession proof stocks and it doesn't get more recession proof than health care here's one that's worth circling back to. masimo co masimo co masimo corp race they can be hooked up to anyone who is committed to a stay it works from the broader market that struggles which is one reason it's up 30% year to date. that's the latest move in a name that's nearly quadrupled over the past five years. can this thing keep climbing let's look at it with joe kiani to get a better sense of how his company is doing welcome back to "mad money." have a seat, joe first, congratulations on that unbelievable performance you clearly offer products that are great help to patients but also are valuable to the purveyor before we get started, i do want
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to ask you about something that i know is near and dear to a lot of our viewers, you have been invited to the fda innovation challenge, devices to prevent opioid disorder which is a raging epidemic in this country. >> we're proud to be one of eight companies, over 250 applicants that got invited. we hope to have a solution for patients that are at home and prescribed opioids and those with illicit use they can connect our device before they go to bed, before or after they have taken their opioid if something goes wrong they'll be revived by the alarms or a loved one or a caregiver or the nearest police car with narcan can be called and dispatched to save that patient's life. >> this is amazing because otherwise these people can die. >> yes last year we lost 72,000 people. >> how many? >> 72,000 people in the u.s. because of opioid overdose and
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20,000 of them were prescribed opioids. one of them was this young guy, 21-year-old in utah. 6'4" guy healthy. he goes in for a tonsillectomy goes home with opioid for his pain he takes half of it. goes to bed. doesn't wake up. >> why do we have these still? >> it's awful. first of all -- >> oh, my, talking about it sets it off. >> first of all, we need to figure out how to get rid of so much use of opioids. >> right. >> both in treating pain as well as of course illicit use of it but there are proven technologies like in hospitals this is called a patient safety net, along with the untethered or tethered version of the product has been used for ten years. they showed no overdose from
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opioids. patients on opioids after surgery. they can save money and save lives. >> well, this is terrific. it does pale by comparison just because of what you're doing is so life saving but you have put up some remarkable numbers by offering a much more proprietary advanced product. better mousetrap than everybody else. >> it's a wonderful business to be in. the more lives we save, the more we save, the more revenues goes up and more profit goes up pretty nice. >> well, i think that a lot of people feel that the companies maybe -- that they're expensive. but you had $164 million in free cash flow. which is something to be proud of. >> 27% of the revenue is going to the cash flow. >> why don't you talk about your partnership with phg i thought that was significant. >> yeah, phillips is a wonderful company. has been in this business for a long time. 50% of the market for the icu or patient monitoring, but for years they were locked in a
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patent dispute we sued them for patent infringement we reached a settlement to put bygones be bygones and we turned it into the partnership that phillips is integrating our rainbow technology to measure not just oxygen but hemoglobin, carbon monoxide. noninvasively into the patient monitors, as well as some of the other nice things we have now. like brain function monitors. >> i saw you had that. what i thought was interesting, i never thought about this but you say there's great clutter. what, you normally have four different monitors, that's the way it is? >> you would you would. >> but the whole place is taken up by monitors >> if you walk into the o.r. or icu it's a mess. wires are hanging everywhere ventilators and anesthesia machine. we are trying to get rid of the clutter. >> do you have it so it doesn't
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beep for people who are really just trying to have a little peace? >> yes well, first of all, we invented measure to emotion pulse -- that means it will work even when the patient is shivering or moving 80% of the alarms used to be false alarms due to motion we cut down -- >> why is everyone using this stuff? because it's - >> nine out of the top ten hospitals are using it we're not only the clinical leader but the market leader but unfortunately unlike the consumer world where you come one a better mousetrap, within a year or two people switch. in our industry it takes 15 to 20 years. >> well, that's just outrageous. >> it is it's hurting people's lives. and it's hurting our economy because our technology has not been only to show an improved life. >> we keep running about the runaway health care. you have had a lot of money.
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you can see why this is a terrific stock thank you so much. >> thanks for having me. >> stick with "mad money." at&t provides edge-to-edge intelligence, covering virtually every part of your healthcare business. so that if she has a heart problem & the staff needs to know, they will & they'll drop everything
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can you take a look at her vitals? & share the data with other specialists yeah, i'm looking at them now. & they'll drop everything hey. & take care of this baby yeah, that procedure seems right. & that one too. at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & when your patient's tests come back...
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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. buy buy buy buy buy sell sell sell sell -- then the lightning round is over. are you ready, skee-daddy? let's start with tyler in illinois >> caller: hey, jim. i'm on vacation. my question is quick zillow, up or down their new deal with the flex pricing -- >> i'm not a plan. i don't like the idea to flip the houses some of the business is slowing and own it jesse in colorado. jesse. >> caller: thanks. happy holidays, jim cramer. >> same. >> caller: your long term take on a company you had on the show, time to start a position
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and ssgk. >> if you sell at this particular time i think you'll send up regretting it. hold on. you can sell it higher let's go to taylor in north carolina >> caller: hey, jim. taylor from raleigh. thanks for having me on. i want to get your take on green sky. this is one you have talked about in the past. they're down 60% since their ipo. >> well, remember, it's not a -- look, our favorites are paypal and mastercard paypal is owned by the trust and mastercard is in the bullpen let's go to donnie in illinois >> caller: hey, jim. wow, what a blessing to be talking to jim cramer. i have learned a lot from you in six plus years i have been watching you. >> thank you >> caller: my question is on the stock cy i have two positions and currently down 15 and 20%. >> well, remember it's a semiconductor company. in a market that is down
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dramatically look, banks, tech, business with china. these are all in a bear market cyprus yields 3.3. when it yields 4% i would buy. let's go to brett in florida brett. >> caller: dr. cramer, how are you doing? >> good. how about you? >> caller: a ea -- >> i'm not going to recommend ea and that, ladies and gentlemen is the conclusion of the lightning round! [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪
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is there any reason in the world for tech to bottom some time soon? honestly tech is not a model of the sector i can't tell you to buy tech here but i can tell you to buy some specific parts of tech before we do there, you need to understand why this group collapsed in first place when the market went off the cliff in october, tech turned into a real horror show. >> the house of pain. >> for starters, apple stock plummeted. when we started to hear about oracle cutbacks after all the suppliers gave you a heads up that things aren't so good and apple iphone sales are weaker than we thought just two months ago then we got a pair of semiconductor disasters. both are incredible companies but both crashed that's the only
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way i can describe the declines. they crashed over end user in demand the chips used in the games are also mined in the cryptocurrencies almost no one realized how much of the demand was coming from the crypto side of things and not the gaming side. there were no good estimates, then cryptocurrencies went into free-fall and people began to return the graphics processors in droves. the inventory bulge that obliterated the stocks of amd and nvidia and then flash memory reached the tipping point. looked like there would be some discipline exercised this time but they added new capacity and pricing got slammed. same thing happened in d-rams. the basic building blocks, think of it as western digital
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when you put this weakness together, softness in cell phones, a massive inventory glut in the graphics cards it's easy to see why it rolled over. everyone figured that the tech was toast. that they were part and parcel of what's wrong. but that isn't true. plenty of technology companies are doing great. cisco reported a fantastic quarter in november. indicating that equipment and security are alive and well. yesterday, we had tech data, supermarket of technology. they had outstanding numbers when we spoke to the ceo he called out the laptops, networking, storage services cloud. mobility yes, tech data has apple exposure but it blew away the estimates. at the end of november hp itself posted strong numbers. 10% revenue growth and robust performance across all regions personal systems think of pcs up 11%. palo alto networks the leading cyber security play, good for combating espionage showed
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strong growth too. we heard from broadcom that stock has been flying ceo can't -- and i quote, our results reflect strong year over year growth, you have load businesses, driven by robust demand from the cloud, data center markets as well as traditional enterprise boom that stock is screaming and dove tailed with the one area of tech that's our self-appointed cloud gains. salesforce reported a perfect number big acceleration, splunk, 40% growth 50% for subscriptions. then vmware had a basic -- tech is complicated sure, there are disasters. unmitigated ones like much of the semiconductor complex. but there's a lot that's still working here and you cannot just take them in aggregate. the data center, cloud, they're
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strong this is why you pick individual stocks rather than wasting your time with sector based etfs. why deal with the losers you have to learn to look for them stick with dramer. lies beyond the tech sector. it's about technology transforming every sector. ♪ at pgim, our bottom-up approach uses a technology lens to identify long-term winners. from energy... to real estate... to retail. finding such opportunities for alpha is the true value of active investing. and around the world, you have a partner in that pursuit. pgim: the global investment management businesses of prudential.
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. dave & busters reported finally. wow a decrease of 1.3% comp store sales that's not what i was longing for. american eagle reported weaker numbers but they're in the malls. the retailers have been all over the map. like dollar tree, burlington i still think walmart can do quite well i don't want to give up on the group, but both of the numbers were suboptimal this very evening. some keybank downgrades, bank of america downgraded there's a bull market somewhere. i promise to find it here for you on "mad money. i'm jim cramer see you tomorrow
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>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ who believe they have the next big thing in toys. hello, sharkaroos. hello, sharkaroos. i'm rachel mcmurtrey. and i'm steve mcmurtrey. and we are the proud owners of... the jungle jumparoo. the jungle jumparoo. a better way to bounce.

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