numbers from macy's during the week, that incredibly glum conclusion seems unavoidable. the closets had no more room. the bureau's stuffed. women didn't even seem to need more shoho. can you imagine such a thing? on top of that came the earnings report from cisco, the technology company often viewed as the backbone of the internet. the quarter was good but the outlook decidedly not good. in fact, i can only describe it asasutright downbeat, not because of what ciscscwas ofofring. the product lineup seems very strong. no, because they looked at the global economy. an obvious slowing of demand. the brutal obviousness of the softening economy coupled with the steady drumbeat of comments about the need for the fed to tighten only furthered this saturnine moment which is the opposite of sanguine for those o aren't trying to p pside over a aederal reserve offic here you have the ceo of one of the best tech companies on the
decelerating while a seemingly endless stream of federal reserve officials keep talking about the opportunity to raise rates. why? so the f f can lower them agaiai when the slowdown at cisco ceo chuck roberts is predicting hits home? could they really be that obtuse? all this came on the back of another pounding of the oil futures which in a bizarre twist is now regarded as awful news for the economy. ththbears' thesis is simime, the money saved at the gas tank means nothing. at the same time, the decline in oil is taking away one of the great growth stories of the u.s. for this era. it's a double whammy of bearishness. we know about the tragedy that unfolded friday night in paris, one that put the market sell-off in p pspective. however, the fact is pain bebets gloom. pain is the most salient emotion weelt about those horrdous events as we learned about them. on sunday evening i sat down with the charts to take a look at how bad things really were
out there. something that had a special urgency for me because i missed the close on friday's market. i was on a plane. the futures were indicating a precipitous drop at the opening of trading on monday because of the terrorist action. i had that sick pit in my stomach that comes from believing that a beat-down lies ahead. especially when i can only find about 30 charts with positive action. this after scanning literally 1,000 of them on the kitchen table. there e s some real technical damage out there. i was getting worse, not better. the chart showed it was accelerating. the twitter feed was filled with people who said they just don't take it anymore. they wanted out. they wanted 140 characters of hash tag absolution. things got worse as sunday night progressed. i was trying to figure out how to dovetail l e horrendous events in paris with the stock market and how much i didn't want to talk about money but recognize that's my darned job. i couldn't shirk it. you know what happens when you get too negative? too negative about this market?
tends not to come true. first the futures selling so ten wrong it's amazing we pay attentn to it anymore, dried up as the clock ticked toward the opening. i theorized with my partner that it's entirely possible we were experiencing what i had seen before, so-called patriotic bid, an emotional wave of buying that comes from individuals and institutions that regard a sell-off as giving in to the terrorists. mixed in with that was the conspiratorial notion that friday's selloff indicated the terrorist's action. in other words, some people knew it would happen and sold stocks. i have no idea if that's true but conspiracies abound when people talk about the direction of trading. those who believed in this kind of thing thought the worst had already y curred. the fact that the oscillator had finally reached oversold conditions after many weeks of not certainly emboldened the bulls who thought they too thought there had been too much selling. too much selling before the paris tragedy. then a third group of buyers
joined in. the ones who theorize that the fed which looked l le a sure thing to raiseseates on thursday of the previous week couldn't afford to tighten because the palpable slow-down that might be caused by terrorist action. a fourth group surged into the market when the price of crude rallied, perhaps of what could be called a geopolitical bid, expectation that any wide scale escalation of war in the middle east could create supply problems that would break the ck of the bearish worldwide oioiglut. this market likes higher oil prices. counter intuitive but it's what it likes. next thing you know the market's flying. all the negativity spurs one of the biggest rallies of the quarter. now we have to accept the fact that much of what caused the run simply evaporated today. first home depot and walmart repopoed excellent quarterer the biggest housing related merchant and the world's largest retailer delivering terrific earnings. the fed has to take notice, right? yes's the fed must pause theory vanishes and the fed must raise banner unfurls right in front of our screens.
trumping the saturnine croro. second, there's no attack on the oil infrastructure in the middle east so oil goes right back down, resuming the downward spiral. third, despite an amazing $143 per share takeover bid for air gas, fully $36 above where the big package gas distributor was trading yesterday, there was simply no pin action from this d whatsoever. maybe tomorrow's offer from norfolk southern by canadian pacific can change that but i was miffed that air s didn't do more. today serves as a reminder that the market likes to do just the opposite of whwh you expect it to do. if there's too much strength in the economy, it's represented by the retail reports, then whatever slow-down thesis was offered is now history. if oil is too weak, you know the stock market will have a gravitational pull lower. these two factors, fed worries and lower oil prices, are riptides that somehow cannotote
news we may be getting from the companies, especially when most of the good news relates to robust consumer spending. something the fed no doubt feels it must react to. with the december rate hike. here's the bottom line. too much bad news produces a rally. too much good news, rally papaes. it's exactly the opposite of what you#would expect which is why 2015 is proving such a difficult year for so many investors to turn a profit. we are going to start with ruth in california. ruth. >> caller: hey, jimmy. it's such an honor to be able to thank you in person for all you do. thank you, t tnk you, thank you. >> well, thank you. thank you for watching. i get a lot of people taking my picture last night and stuff. i got nice comments just like yours. i thank you. >> caller: i own all your books. and have watched you since you were kudlow and cramer. now i watch both yououshows. >> really? that's spending some serious
time with cramer. i'm going to tell the wife. she'll be jealous. don't worry. she doesn't watch any of my shows. she doesn't even know i have a show. she likes to watch dog videos. >> caller: hey, jim, i bought [ inaudible ] when you recommended them in n ur action alert. i'm concerned because you said it's going to be a bad time for health care. these two seem impervious to that even though it did come down a little. >> they're impervious because they have blockbuster drugs that can transcend even the worst federal reserve action. that's why i like them. i got to telelyou, lilly is so great. it's my favorite. to bruno in massachusetts. bruno. >> caller: hey, jim. how are you? >> i'm all right. how about you? >> caller: i'm doing well. doing well. boo-yah to youou thanksksor the hot tips backck0, 15 years ago. you did great for me.
>> all right. let's do it again. >> caller: quick question. twitter. bought a bunch of it a few weeks ago. don't know where to go with it. i don't know if i should dump it or take a loss or hold on to it -- >> we had a small position. i got to t tl you, this is one bad actiti stock. i meanholy cow. there were people in my twitter feed where i'm trying to get new sounds for my sound board. there are people who literally do nothing but wake up and say when will twitter keep going down. itit like a continuous l lp. i don'n'know when it's going to stop going down. i know it's either worth a whole lot or it's going to ten. i prefer to rely on rob peck from sun trust who gives me hope that maybe there's something there. let's go to puni in maryland. >> caller: hey, kraemer, i have a biomedical stock since 2009. i had it for a long, long time. it hasn't gone up too ch.
since last july of 2015, they only went up to 18.50. my question to you is do you think this stock is a hold or buy or -- >> which stock? man, i'm trying g get this -- we talked about this. we think this is the cheapest bank stock. when the federal reserve raises rates, this one's a straight shot to 20. meantime, it's going to stay right here. i wish we were bigger in it. it's so inexpensive. all right. this market t kes to do the opposite of what you would exexct it to do. when there's too much negative news, what you dread does not come true. is it hip to be square? i'm giving you my hit on the tech company ahead of this week's ipo. we will tell you what to do. then only 37 days until christmas? where are consumers shopping? i'm trying to figure it out. it seems like every drug maker under the sun is getting slammed off worries about drug pricing but are there some names still
head to madmoney.cnbc.com. later this week, we'e' gegeing one of the most widely anticipapad ipos of the year when square, the payment technology company founded by jack dorsey comes public. even for those of you who don't know square, you have almost certainly run into their products. they make little devices you can plug into your phone and turn it into a credit card reader, along with the ipad stand to turn the tablet into more of a permanent point of sale terminal. you have seen them at stores. nonoto mention a brand new oduct that lets busisisses accept apple payaynd other wireless payment methods. square sells you the actual device for very little. in some cases for nothing. then every time you swipe a customer's credit card they take a 2.75% cut which makes it ideal for small businesses that wouldn't otherwise be able to accept credit cards. in short, square has an intriguing concept. fast growtwt it's very cool, very popular set of products but at the same time, there are a number of serious issues that have people very concerned about investing in this company and it's why it's being valued at much lower than we thought it would have been. its ceo jack dorsey is clearly
spread thin and if he has to choose between his jobs, he will probably stay with twitter. on top of that the company l lt its biggest t oduct when starbucks decided to give square the boot, to start their own payments platform. the entire payments industry is becoming insanely crowded with way too many competitors. again, while this is the so-called down round when it comes public. why am i even bothering to analyze the darned thing? price. typically when we get a mumu anancipated initial publbl offering we like the business but we find the stock being priced at levels i tell you are too high. in square's case, the price range for the deal is $11 to $13 which means the company will be valued somewhere between $3.5 billion and $2.5 billion when it comes public. given that it was valued at $6 billion in its latest round of public fund-raising a little investment bankers a a trying to give you a deal. they plan on pricing shares to move so people anticipate the ipo actually might get a little
which brings me to the big question. with this proposed price range, will square actually be cheap enough to be worth buying? i ththk the answer could possibly be yes. dependndg on your tolerance for risk. let me walk you through it. if you were trying to judge square in a vacuum, if you just looked at the company without giving any consideration to price, it's a mixed bag. start with the positives. i don't want to undersell the story. square has a proven concept. they have only just begun to tap what could be a huge total adjustable market or t.a.m. there e e 30 million small businesses in this country, and that doesn't include the millions of non-traditional small businesses, freelancers, artists, you name it. right now the 30 million small businesses, 20 million don't accept credit card payments. something that's becoming a real problem as our economy continues to transition from paper to plastic. they have two million customers, a big runway, right? second, we know square has done a very good job of integrating with its customers by providing additional value-added services, getting into the financing, marketing, customer service operations. i look that.
third, no matter what metric you use, they have tremendous sales growth. using gap numbers, g.a.a.p. numbers, the company grew its sales in the first nine months of 2015, down n ightly from 54% last year but still pretty impressive. at the same time, square's gross payment volume, the total amount of money they process increased by 51% in the first nine months of the year. $25 billion, solid. those are the positives. how about the negatives. nonoatter how impressive you find square's sales growth, the fact is this market nts profits. this company is not yet profitable. you might hear people argue that they are approaching profitability because square put up positive adjusted earnings in the second quarter but i think that doesn't hold quarter given that in the very next quarter the company ebidta came in at negative $15 million. i don't see a trend toward profitability. they will be spending like mad to build its business. second, the payment field has become incredibly crowded. flood of new competitors have entered the space.
now samsung has its own samsung pay business. it wouldn't t ke much for a company like apple to cut square out of the equation. plus the banks are trying to get had on the aion. jpmorgan chase last month. let's not forget we have seen two major payments companies begin trading on the public markets in the last year, paypal and first data. while i like paypal, the truth is, both of ththe, paypal and fifit data, disappointinin paypal down roughly 13% since its spinoff in july. first data actually down 1.5% first day of its ipo. square does have a part-time ceo. given that jack dorsey already has enough on his hands running things like twitter, which by the e y has had a real tough slog here, but managagg two publicly traded companies, i don't know. some would say hubris. in a vacuum, square is kind of a mixed bag but we don't evaluate stocks in a vacuum in cramerica.
when it comes to square, i think the ipo might be priced low enough that it could be worth participating in. susu, square ain't perfefe. at t t proposed 11 to 13 per share range, stocks certainly wouldn't be priced for perfection. at the midpoint of that range, square could be trading around 2.7 times next year's sales. that would make square a big value. certainly a big discount to paypal, that's at four times. everything has itstsrice. atat3 or less, i'm tellili you, square would be worth owning. let me give you the bottom line. at a cheap enough valuation even not so hot merchandise is worth snapping up. so if you like what you see with square, i am willing to give you my blessing to try to get a piece of this deal. but don't pay more than 13, please. also, after a bit of a aun, do not t erstay your welcome. this is a commoditized group. holy cow, look at that. that's my watch. customers might not be looking at deals.
do buy opportunities exist? let t tackle the technicals. speaking of biototh, radius health is up f the year but did you see it today? so how ya doing? enough pressure in here for ya? ugh. my sinuses are killing me. yeah...just wait 'til we hit ten thousand feet. i'm gonna take mucinex sinus-max. too late, we're about to tata off. these dissolol fast. they're new liquid gels. and you're coming with me... wait, what?! you realize i have gold status? do i still get the miles? new mucinex sinus-max liquid gels. dissolves fast to unleash max strength medicine. start the relief. ditch the misery. let's s d this. americans. we try to live healthy. but many of us don't know there are nutrients that can help support our metabolism. take new one a day healthy metabolism support multivitamin with chromium to help use carbs from food and b-vitamins to helpconvert food to fuel. one a day.
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consumer. we can't simply decide the consumer's not spending based onon the nenetive things that macacs, nordstrom and gap have beeee teteing us, especially when you offset them with today's terrific numbers from tj maxx and walmart and home depot. it involves a big shift in attitude and behavior. first it's totally understandable no one has any idea what people are spending g on. the clues are so v vied and difficult to read i can't blame anyone for being confused. consider the panoply of inputs we got lately. macy's says it's been hurt by warm weather and a strong dollar. nordstrom says they have been hurt by traffic decline and absolves the weather entirely. cases isiso presume they are being hurt by amazon and they become showrooms for the online giant the way best buy did. or you can assume that perhaps people aren't going to the mall as much as they used to which would explain the weaknesses we are seeing in gap and j. crew. then we come in today and learn that home depot, tjx and walmart
all reported excellent quarters. let's see. these three companies have one thing in common. they aren't in the mall. we have to presume the starbucks ceo was dead right when he predicted two years ago that the mall's going out of style. people don't like to shop there as much as they used to. they are increasingly shopping with hand-held devices instead. all three of these winners also have a verergood online presence, not as strong as amamon's but each offers a different piece e the american consumer puzzle. we learn from home depot that appliances, tools, plumbing, decor, lighting, hardware, building materials and indoor garden will outperform. that's a list of items that says people are fixing up their houses either by themselves or by hiring contractors. given that home depot reported an incredible 7% same store sales, that was s credible. people are f fling better about spending money on their homes than they do about spending on apparel. that's a change. one that we haven't been able to explain yet but it's certainly occurring. home depot's brilliant ceo talks about an increase in household formation and the need to fix up older homes that might have been neglected during the great recession.
people want t dress up their homes, n n themselves. how aboutjx. compy has excellent apparel and household sales. if the consumer goes to spend on apparel she's going for the cheapest name brand of clothing she can find. which is from tjx which is why traffic was so good. home goods, a place many of us for housewares, pututp terrificicumbers. the highly seasonal feel of home goods is clearly winning peoe like me over. i loved my home goods. i also loved my costco, the first retailer to report, had strong sales in many areas that overlap with home depot and home goods. other confirmation t tt consumer spending is on home improvement or making their home look nicer for the holidays. how to factor in what's happeninwith walmart? hold it. what happened here? the numbers didn't come down. in fact, the company talked about a robust back to school and halloween season. management seemed quite pumped for the holidays. i think walmart may be signaling that many of the chahaes it's
made in terms of perernnel, not to mention more creative merchandising, particularly for the home, are now working. new point of view for me. in other words, walmart's better than expected earnings were driven by management's efforts to fix the biggest retailer in the world. let me give you my bottom line. i know it's early. you have to believe there's a positive story brewing at walmart. admittedly againststowered expectations. the fruits of the ceo's earnest efforts have indeed begun to pay off. ben in texas. ben. hit me, ben. >> caller: merrill lynch upgraded today, it's got an earnings per share of about $1 and price earnings of $28. is it time to buy more, sell what i have or just hold? >> what's the stock? >> caller: fit bit. >> okay. fit bit is at the center of the most difficult market to figure out. because it's overvalued on
undervalued on growth basis. so i'm going to tell you this on fit bit. i'm going to say that you can buy it in the 20s but you have to flip it again in the 30s. why? it's going to be a big holiday gift but the stock has real heaviness to it because there was so much insider selling. that really made the story a bit of a bummer. glenn in florida. glenn. >> caller: a big boo-yah to you from palm city florida. >> nice. >> caller: i watch your show every night. >> thank you. >> caller: big fan. thanks for everything that you do for us. >> thank you. >> caller: i wanted to ask you about a specific stock at a spspific price. wewee watching the consusur is very elusive. we find out after the fact where they're spending their money. i'm looking at the spot home improvement. we saw home depot's earnings come in and it's not housing starts we can see. just go to home depot. i go there twice a week. it's always full.
>> always.s. i love my home depot. >> caller: yeah. so do i. so i'm looking at it and i'm looking at lumber liquidators. i know the trouble they have been in but 13.61 for the stock. they made a lot of changes internally. they just hired -- just assigned john presley as the new ceo. so they ararmaking the changes.. they acknowledge that they are fixing their own home internally. they settled some of their problems. it looks like they are going to crawl out of this hole. this stock price, $13.61, in this space, what do you think, jim? >> no. no. absolutely not. we are best of breed buyers. we do not go and play in some sort of pewee pop warner league when we can own the new england patriots, tom brady and home depot. and they are all synonymous whether we hate them or not. home depot.
don't run off f e consumer! they're still shopping. just not at the mall. much more "mad" ahead. tech stocks have been slammed. is it time to search for buy opportunities among the rubble? wait until you hear my take. then what's up with radius health? the stock has been o ofire this year but it lost steam, especially today. i will give the ceo the floor. and your calls. it's the final countdown! the final countdown! if you're the band europe, you love a final countdown. it's what you do. if you want to save fifteen percent or more on car insurance, you switch to geico. it's what you do.
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>> tomorrow, it's man versus the last few m mths have been a really difficict period for the pharmaceutical and biotech stocks as the group's been hammered mercilessly since that hedge fund manager came on tv to brag about raising prices to extortionate level on all drugs. hillary clinton crushed the entire sector with the tweet heard round the world blaming them of price gouging. more vulnerable companies have seen thehe stocks go into not t vertical but actual free-fall. for all the und and fury from washington i think eventually people will realize they're throwing out the baby with the bath water when they sell every drug maker under the sun. more importantly, these drug companies are exactly the kind of stocks that you want to buy when we're going into an economic slowdown. believe me, that's whehe we're heading unless the federal
toward raising interest rates. in short, i think many of the drug stocks d biotechs could represent pretty good value. you could make that same argument at any time that the group continued to get slammed by a seemingly endless wave of selling. trying to bottom fish h the drug space has been a dangerous endeavor. we can't figure this out based solely on the fundamentals, meaning how the companies e doing. we need to get a read on the technicals in order to figure out if this decline in the pharma companies and biotech names is nearing an end, done, ready to roll and that's why tonight we are g gng off the charts with the help of the charter market technician who is a professor as well as being my colleague at realmoney.com who has been so right on so many different stocks, hot hand. he wants to go fishing. his view based on the charts, he thinks some of these stocks still look vulnerable.e. the pharmaceutical space broadly
speaking has bottomed. his argument, first let's take a look at the daily chart of the drg and that's the nyse pharmaceutical index. you can see the drg has experienced a pretty serious selloff of late. is is where a lot ofofeople boboom fish, got killed,d,ottom fish, not killed. when you look at the indicator, here we go, a terrific indicator that helps technicians figure out if a security has gotten oversold, the index, let's just say, is clearly in oversold territory. that's the kind of reading that offers the bottom. cambridge has one more reason to like theherg chart, the momentum study at the bottom. this is an indicator that helps determine whether a given trend is gaining speed or slowing down. cambridge points out while the drg itself made a lower low in late september versus its previous low in late august, the momentum s sdy indicator actutuly made a higher low, see, versus there, a higher low in
september. this right here is called a bullish divergence. it suggests that even several weeks ago the selloff in the drug stocks was already starting to lose momentum. remember, the drug stocks s ve a lot of momentum. here, it's less momentum down. plus this is exactly the sort of thing you would expect to see going into a bottom in a stock or entire sector. let's zoom out, check out the longer term weekly chart. cambridge points out that even though this pharmaceutical index has been slammed lately it seems to have a powerful long term support around 5.1.1 you can see that. that's only 23 points below where it's currently trading. the down side is limited. on top of that, he likes what he sees in the moving average convergence divergence right here which is a terrific tool that helps predict changes in a stock's trajectory. these are not coincidences. it's a predictive indicator. we haven't actually gotten a bullish crossover yet. that would require that go
like that. he's anticipating it where the blue line crosses the red one. then it would scream buy me, buy me. the distance between the two lines is narrowing. you can see e is. it's wider there, narrow here. that is often a prelude to the bullish crossover. so he's anticipating something that would anticipate a move up. sometimes you have to do that. it's like second derivative. how about looking at this group from a new perspective. take a gander at this daily chart of the s&p pharmaceuticals index, spsiph. here he sees something pretty encouraging with the pharma index having made a slightly lopsided double bottom. some people would say it's not pretty. a double bottom. which is just the bounce-back over the last few weeks is plus he likes that the mac-d line has already made the bullish crossover back in october. thth's very positive. went across the zero line. that tends to be a pretty positive development signaling higher stock prices. we were anticipating in the other one.
bullish crossover. put it all together, he believes the pharmaceutical industry is ready to rebound but which of the major drug companies have the best charts? this one shocked me. having looked through the whole index, cambridge actually finds cramer fave as the best of the bunch. i thought i was the only guy in the world who liked this one. remember, it creates better ways to deliver drugs that patients often fail to take. that's richard, you see him on a lot, taking longer acting ththapies of old drugs.. i like it. cambridge likes it because it has a beautiful chart. take a look at the daily action here. this stock has bounced back with a vengeance from the recent selloff. it's only $1 away from its 52 week higig as he sees it, it't'been locked in a broad trading range for ages. between 55 and 70, 55 and 70,
could soon be the cards. he also likes what is happening on the on-balance volume. got to look down here. this shows whether money is flowing into or out of a stock. many technicians use it to figure out what the big guys are doing. when it comes to this company, the indicator has been trending higher. that matters. meaning there's a lot buying fire power in this stock. once they bust through that ceiling of $75, smooth sailing to substantially higher levels. remember, thth got a lot of cool stuff in theheipe. what else? all right. he also likes the action in cramer fave bristol myers, company with stock that held up very well given the recent squall in the group. take a look at the chart. it's a very consistent company with fabulous anti-cancer drugs. but cambridge is a bigigan of ththchart. ththchart isn't thinking i really like the pipeline. he's thinking he likes the chart at these levels, bristol is less than $5 away from its all time
he believes if the stock can cover the five points we could see a massive breakout to the upside. he thinks it will happen because the on-balance volume line indicates that bristol, this indicator is an extreme posive terrory. the big money is just gobbling this thing up, especially on every down turn. i have been waiting for this. it never comes in. unless the fed selling does some sort of about-face, decide they dot need to smother the country with higher rates, that would be a turn-off. bristol myers bets the fed does ththwrong thing and tighghns. the bottom line, aftereretting put through the meat grinder the past couple months, the chart as interpreted by this red-hot hand, suggests the pharma stocks are ready to rebound. in this environment, you should buy the stocks that have held up the best. my view, regardless of hillary clinton's campaign platform,m, these big pharmamalays are exactly the kind of stocks that rally when the federal reserve begins a cycle of rate hikes and it will be a cycle which certainly seems like where we're headed regardless of whether or
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it is time! time for the lightning round. are you ready, skee-daddy? time for the lightning round. nick in new york. nick? >> caller: skechers. >> look, this thing has been just crushed here. it's been crushed. remember, still up 37% for the year. i want to buy, not sell. we need to go to steve in texas.
steve? >> caller: jim, gile. >> listen n me. i still like celgene. biogen, perhaps the most hated stock in the universe. oh, never mind, that's valiant. tom in new york. tom? >> caller: hello, cramer. boo-yah! >> boo-yah, , m. >> caller: thank you. what is your stance on juno therapeutics? >> i don't like them as much as i like halo. don't forget i like radius. to rob in florida. rob? >> caller: yeah, jimbo. boo-yah to you, sir. >> boo-yah right back. >> caller: [ inaudible ]. >> the stock is already up too much. somebody raised the price target to $73 today. let it come in first before we
make any more. dupont, let it come in. judy in wisconsin. >> caller: hi, jim. thanks for taking my call. my stock is proctor & gamble. >> they seem to be done going down, 73, 76, 73, 76. i will endorse buying. let's go to cam in new york. >> caller: jim. thank you fofotaking my call. what is your opinion on priceline? >> priceline is now overdone to the down side. i think you buy some but you got to do it deep in the money i know the chart looks horrible. to dave in tennessee. dave? >> caller: grisly boo-yah, jim. swir. >> i see it. i raise yoyod with integrated device technologies with that $300 million buy-back and the wireless charging. that's for me. i need to go to tom in florida. tom? >> caller: boo-yah from naples. >> oh, man, i love naples.
m running to it. i wiwi throw in blackstone i'm in a real two-fer mode. we should take more calls. why don't we go to janet in north carolina. janet? >> caller: boo-yah, jim. pfizer, buy sell or hold? >> i like pfizer. i think ian reed has blockckster drugs. i like him. he's to the point. pfizer's for me. don't forget, louis at bristol myers i think are even better. that, ladies and gentlemen, is the conclusion of one of the most exciting lightning rounds i have ever done. i have asthmhm.. ...one of many pieces in my fe. so when my asthma symptoms kept coming back on my long-term control medicine, i talked to my doctor and found a missing piece in my asthma treatment. once-daily breo prevents asthma symptoms. breo is for adults with asthma not well controlled on a long-term asthma control medicine, like an inhaled corticosteroid. breo won't replace a rescue inhahar
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what the heck just happened to radius health? the development stage biotech company focused on creating drugs for osteoporosis. the stock had been rebounding dramatically from the huge selloff in all things biotech. radius has been roaring thanks in part to takeover speculation as we heard chatter that shire might t interested in buying the company. but there's strong data on the big osteoporosis drug that's currently in phase 3 trials, a drug they had been planning to submit for fda approval by the end of the year. however, radius announced their new drug application could be delayeyeby up to three monththin the u.s. because they wantnto
include mo data that won't be available until december. that news caused the stock to get obliterated, plunging more than $7 in a single session. we have to learn more about this. that's a pretty big pull-back for a three-month delay especially because they did just file approval in europe. not like they rolled out disappointing datatahat called the drug's effectitiness into question. on the other hand, this drug has been roaring. it's still roughly 58% for the year. when you are dealing with that kind of high flyer, even a small speed bump can cause it to tank. still, if this is really a short delay, i have to believe you have been given a gift with today's selloff. let's take a closer look with bob ward, president of radius alth. gegea better sense of how his mpany is doing and wre it's headed. welcome back to "mad money." good to see you. have a seat. now, we looked at the data and we looked at the delay and we think okay, there was nothing here other than you had said earlier that this would be filed at year end. why a three-month delay? what's the sigigficance? >> today is s historic day for radius health. we submitted today our first
registrational submission in europe. now, with the u.s. fda in december, we have our 12-month stability data coming out and we previously guided, we take that data, assemble it and have it in before the end of the year. as we looked at our time lines, we saiaiit's prudent to takeke that 12 month data in dedember, begin the analysis work in january and submit at the end of the first quarter to make sure our team has the time to do it right the first time because our goal is first pass approval. >> so fda did d t say listen, we don't want it yet? >> no,o,im. we had a alan all along becausus we have to submit this 12-month data and the thought was if we all work throughout now through december, both us and our vendors in europe, and our whole supply chain, we could get it done but it would be a heroic undertaking. we said that's not prudent. >> the fact is that you wouldn't submit to europe if you really weren't [ inaudible ]. >> correct.
correct. >> you're pretty confident. >> with europe, we are able to submit the six-month registrational stability data so that's already to go and the 12-in data we'll also submit in europe because we also have three-year stability on clinical trials samples so we expect the 12-month data to also be robust and we are highly confident that our cnc package is sufficient to support registration. >> there is a lot of talk about drug pricing. i was looking through your time line. it's taken you more than ten years totoet to where you are. yoyohave to get some payoff for that, don't you? >> absolutely. when you think about the history of radius, 200 patient phase three trial is gigantic for a small biotech. we are delighted to have that behind us. we have everything we need to submit as we did today in europe, the maa ananwith the stability data we will be set for the nda in the first quarter.
>> the data you have in your presentation which by the way, if you@want to know about this company before you just go buy it or think it's a takeover target, go through it. they have -- it's an incredible amount of data. the placebo versus, this is about as convincing as i have ever seen. it's hard to imagine anyone i think in the government saying wow, you know what, we got to give this another couple of years. >> well, we have what we neeto submit now. we are super excited about these data but remember, we also have our transdermal patch. that's a trial we're starting in december which will take the data we showed in animal models into humans to ask have we f fnd a patch configuration where it's bioequivalent to our daily subq. when the drug is approved, we will submit the line extension to also make a patch available. >> we know people are much more comfortable with a patch. this is a 3m patch which is pretty cool. they wouldn't just ally with
anyone either. i can't have you leave without talking about rad 1901. it looks like things are going very well. this past weekend, presentation, pretty impressive. >> yeah. acr for our breast cancer program we showed single agent data. these are preclilical models for the investigational drug which showed activity in resistant tumors so they are grown in an animal model and progressed in other therapies. they had a favorable response to 1901 and we also showed rad 1901 has a beneficial properties when combined with other agents like pfizer or novartis in combo. the combination shows better activi than either drug ale. >> at the same time, we are very early on. if people want to own this stock for the long term, they can include that but that's a multiple year situation. ain, obviously you c c't tell me whethernyone's contacted you or not but the company has
enough mon to be able to get through what it needs to get through right now after the fund-raisers you have done. >> right. we think of it as the largest valued phase three unpartnered round. we also starard talking to collaborators around 1901. next year we are looking to include combination studies as well. >> this is all good news. the break in the price is just an opportunity. that's bob ward, president and ceo of radius health. study it before you listen to me on this. i studied it. you need to do that too.
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doug mcmillan, by the way, has got game. i like the walmart call. i'm jim cramer. see you tomorrow! it's wednesday, november 18th. coming up on "early today" breaking news over night once again the sounds of heavy gun fire and explosions in paris. french police targeting high level suspects i ithe dark of night. and bomb scares diverting two planes and anotherhreat causing thousands to evacuate a soccer stadium in germany. what's to be done with the syrian refugees. "early today" starts right now.fu good morning, wetart with breaking news.