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tv   Mad Money  NBC  December 2, 2016 3:00am-4:00am CST

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reveal our favorite things from throughout the year. >> have a great thirsty thursday. 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 friend money. my job is not just to entertain but to educate, put is in context. so call me at 1-800-743-cnbc or tweet me @jimcramer. talk about a tale of two markets. today we had the winners, mostly old-line industrials and banks as represented by the dow jones average, which gained 68 points. and then we had the losers, almost everything in the nasdaq down 1.39%. it's not done going down,
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while the s&p 500 fluctuated somewhere in between, ultimately declining 0.35%. remember when i said the bulls would love a market that didn't need to rob peter to pay paul? meaning if there was enough new money coming in from the sidelines, investors wouldn't need to brutally sell stocks in one sector in order to buy them in another. well, we clearly haven't gotten there yet. this market feels pretty zero sum right now. today there was highway robbery of the techs and the health shares of industrials and banks and oils. it wasn't exactly what we -- let's just say it's exactly what we don't want to see. we basically ran out of new money to fund a healthy, broad-based advance and instead went narrow into a couple of so-so leadership groups, which is not a positive longer-term scenario. you don't want fuel stolen from the techs. you don't want fuel stolen from the health cares, the
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equivalent names that aren't so equivalent when interest rates spike as hard and as fast as they have in the last few weeks. you want these groups to hang in there, not get killed like we saw in today's second shellacking after yesterday's butchering. this was a horrendous decline today. we've had a huge run since the election. you knew we were bound to get some profit taking. you had to figure it would be vicious when it finally came around because this market has really bolted. in november, the dow rallied 5.4%. nasdaq moved up 2.6%, and the all-important russell 2000 index ran up nearly 11%. had its best monthly gain in five years. now, after those advances, what did the bulls want to see? simple. the bulls wanted an easy rotation where some red-hot stocks stalled or had some mild profit taking while others in different sectors climbed. a sign that new money was coming into the market and there was no
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alphabet in order to fund purchases of caterpillar and deere and diamondback energy to name an insect, a mammal, and a reptile that all happened to hit or come near 52-week highs today. it's clear for most of the month of november, new money was flowing into stocks and the profit taking had been mild. but obviously after the carnage we saw today in the nasdaq, we know that phase is just over. we also wanted to see a breather in the winners after some frenzied rallies, especially in the oil rally yesterday off of a shocking opec agreement to cut production was just too darn aggressive. i told you that last night. i said i couldn't stand it. even if crude keeps soaring, it's wrong. i've seen a lot of rallies in my time, and i can tell you that kind of move simply isn't sustainable. >> sell, sell, sell. >> it's built on the quicksand of panicked short sellers and fund managers who are desperate to have more energy exposure at any price. it's a sucker's game. a sucker's game to chase these
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trading. meanwhile, the banks keep roaring because interest rates are going higher and regulations may be cut, both of which would be fabulous for their earnings. but the banks don't report for ages, and interest rates spiking too hard, too fast will squelch demand for money. at this pace, it might get bad again before it gets good for some of these bank stocks. remember, historically stocks tend to forecast future earnings growth out about six months. but not every forecast is right. the dramatic run in the banks and the oils leaves very little room for error. they've moved too fast. i expect you'll get a better chance to buy them at lower levels. i like both groups. let's not go crazy here. maybe if we step back and ask what's happening in the real world, we can get a better grasp of what we're seeing in these vicious upsetting moves in a market that suddenly has become a lot more difficult to navigate. first let's go back in time to the week before the election when the seeds of this rally were planted. at the time the consensus was that hillary clinton was a shoo-in for the presidency.
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would stay in republican hands. that meant we were likely to have four more years of gridlock and everyone was betting the senate would join hillary in hectoring the banks and the fossil fuel companies. most important, wall street figured the economy wouldn't grow that rapidly and interest rates would stay relatively low, putting a premium on the bond market equivalent stocks and the safety names that do well in a drooping economy. so investors bought the stocks of companies that don't need a strong economy to grow like the techs, particularly the plays on social, mobile, cloud, cybersecurity, artificial intelligence, self-driving cars, you get it. all the cool stuff we hear about all the time. these bets were being made daily before the election. but then election day happened, and we got a very different outcome. trump won, and the republicans kept both houses of congress, which means washington is going to be a lot more business-friendly. suddenly all the stocks that would have been crushed under clinton, like the banks and the fossil fuel plays -- they're in the cat bird seat. the result? initially the whole market roared higher.
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nobody need to sell shares in the techs or the safety stocks in order to buy the names that should benefit from trump's agenda because there was so much money coming in off the sidelines, either because the big, bad event was finally over -- the election -- or because investors figured that one party ruled by the gop would be good news for corporate profits. but now it looks like the money has run out, which means we are back to robbing peter to pay paul. and it's run out at a bad time since interest rates are now much higher, creating more competition for stocks. the dollar is much stronger, which might hurt the earnings of and now some skeptics are saying maybe the market has gotten too enthusiastic about trump's agenda given that the guy hasn't even been sworn in yet. so what happens now? i think that just as we were too negative before the election, maybe we got a little ahead of ourselves here. plus we've clearly missed some big issues. i mean what will trump really be like in office? today he went to indiana to take a victory lap for keeping 1,000 jobs in this country that were headed to mexico. he praised greg hayes, the ceo of united technologies, for being a great guy, keeping those carrier jobs in.
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that move jobs offshore. he says there will be consequences. that doesn't sound like your typical pro-business republican. you'll be hearing from greg hayes on this issue and much more on monday night here on "mad money." i don't think you want to miss that. and there are individual companies with individual problems to worry about, just like always. look at howard schultz's decision tonight to step up to executive chairman of starbucks, leaving the ceo job to his number two, kevin johnson. investors love howard. can they still love the stock of starbucks without him? without him being ceo? remember, management does matter. i'll be speaking to both gentlemen tomorrow on "squawk box" at 7:30 eastern with my colleague and friend andrew ross sorkin. but doesn't it feel like the end of an era? i mean howard schultz is one of the most famous business people on earth. i see the stock not surprisingly trading down on the news. but let's not get too cynical or even skeptical. donald trump will be a pro-growth president. combine that with some green chutes in the economy, of which there are many, he should only produce better returns for stocks -- all stocks.
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into the market, it won't happen all at once. there will be pitfalls. there will be hard sell-offs. there will be buying opportunities when the baby gets thrown out with the bath water. there will be selling opportunities with stocks that have soared too close to the sun. in short, the industrials and the banks have moved too far, too fast in one direction, while the techs, health cares and consumer goods have moved too far, too fast in the other direction. my take? i want to go against the grain. i want to buy some off the stuff that's been thrown away -- more on those later -- and take some profits in the stuff that's just too strong. most important, i don't want to get too skeptical or cynical or negative. i think it's ridiculous to dismiss the trump rally as a fairy tale, even as i heard it all day. you can argue about whether he'll get anything done for the economy, but his administration will be better for the stock market than a president who doesn't care about helping business. that, in the end, is what we need to focus on when we produce "mad money." let me give you the bottom line. give it some time. pick up something that's suddenly hated. sell something that's way too loved. and strap yourself in for the next rotation. i don't think we'll have all
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sharon in texas, sharon. >> caller: booyah, jim. >> booyah, sharon. >> caller: jim, i have two questions for you. the first one is specifically to walmart stock. >> yes. >> caller: if i'm correct, the last time they split was 1999. the stock split, and it was nine times before that. do you anticipate anything coming in the future where walmart would split? >> you know, i think these guys are deeply focused on anki more, keeping them happier. i don't think they're focused on the stock as much as they used to. i don't think a split is in the cards. remember, a split is artificial. it's like did we create more value? here's a pencil. we split the pencil. did we create more value? no. we just split it in two. all right. bizhan in california, bizhan. >> caller: hi, jim. thank you very much for my taking my call. i have many shares of ford at about $14 to $16 a share. what is your opinion on future
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of its dividends and new president on keeping the manufacturing in u.s.? >> okay. remember, first of all, we don't care where a stock has come from. we care where it's going to. i thought the ford numbers this month were excellent. both ford and g.m., which i like more frankly. g.m. breaking out. good yield. i think it's safe. they have a lot of cash. not the most exciting plays on earth, but i wouldn't sell it at six times earnings even if they never moved another job to mexico, which judging by what happened today at united technologies, could be the case. tom in florida, tom. >> caller: hey, jim. thanks for taking my call. >> of course. >> caller: just purchased bcs barclays. just wanted your thoughts. >> well, i've been saying that barclays was good. lloyds was okay. stay away from royal bank of scotland. i think the brexit economy, a little overdone on the negatives. i think the british economy, very strong. i like your choice. i think it's a good one. there are two markets to watch today, one that's run too much
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while it may be time to sell some of the overbought banks and industrials while buying some beaten up tech, don't get too smug. but don't get too cynical. the trump rally optimism is real, and there could be better growth down the road. that's what this is about. on "mad money" tonight, with the prospect of rising rates, bond equivalent stocks are getting hammered with real estate investment trusts being hit the hardest. but are there still options to invest here? i'm revealing one real estate play that maybe you haven't thought of. then my thesis on two of the most talked about companies in this market, caterpillar on the side. plus a medical company that's had a brush with the bears now. i'll get the scoop. 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 or give us a
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for months the high-yielding bond market alternative stocks have been getting hammered, especially the real estate investment trusts, and it's only
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what if you want a real estate play, a real one, where you don't need to worry about the bond market competition because it's not a real estate investment trust, doesn't pay a dividend. i'm talking about cbre group, which is symbol cbg. this is the world's leading purveyor of commercial real estate services that also owns some properties of its own. basically cbre helps real estate investors by providing outsourced leasing, sales, appraisal, development, and property management services. the company gets nearly three-quarters of its revenue from these fee-based businesses. that said, the stock has been in a bit of a funk lately. d i think that's in part because cbre has substantial exposure to the uk, which made it one of the most readily identifiable brexit victims. we've got to find out more about that. but down here, the stock only trades at 12 1/2 times next year's numbers. so could cbre be the safer, smarter way to play commercial real estate in this environment? today was the company's business outlook day. so let's take a closer look with robert sulentic, the president and ceo of cbre group, to get a better sense of how the company is doing and where it's headed. mr. sulentic, welcome to "mad money." good to see you, bob. have a seat. >> good to be here.
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we like real estate on the show, but we know that the real estate investment trusts have gone down because there's money that flows out of those. you're a pure play. you're about how real estate is doing globally, u.s. how is it doing? >> well, i think real estate's doing well. one of the things i want to comment on, you mentioned our stock price year-to-date, but our earnings are up almost 10% year-to-date. >> i know. that's what we got to drill down on because i think first of all, this brexit thing, i think people looked at a list and they said, who's got british exposure and they sold. 'v >> what's going on there is there was a big downtick right in the wake of brexit because people were trying to figure out what was going on. since then things have stabilized, and i think the buyers and sellers are saying this may not be what we thought it was going to be. i'll tell you also on continental europe, things have been quite good this year. so the notion that this would spread beyond the uk, at least in europe, doesn't appear to be happening right now. >> that's what i thought.
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new president. our new president is from a real estate background. our new president wants to deregulate. to me, that says, you know what? there might be an opportunity if interest rates go a bit higher for more people to get involved with real estate, for more people to start small business, for more people to rent, people to be able to do projects. these are all good things for your company. >> well, there are several things going on that could be helpful to real estate. number one, and to our company, if tax rates go down, that's a good thing. we're a big taxpayer. so that will stimulate not only our company but other companies. if infrastructure spending goes up, that could be a very good thing for our sector. regulation going down. we have a huge amount of business that we do with the financial services industry, both as investors in real estate and as occupiers of real estate. so if regulation goes down and those companies do better, we think that will be very good for our company and our sector. >> there's a lot of m&a activity. what is the impact for cbre if people have to relocate, change
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do you make money in those situations? >> well, we serve two kinds of real estate clients. we serve investors in real estate, and we serve occupiers in real estate. so when companies move, we represent them in a number of ways. we can represent them as brokers on the move. we build buildings for them. we manage space for them. so when companies move, that creates a lot of business for us. obviously on the side of the investors in real estate, we also handle brokerage work for them. we also handle pct we do development work for them. so there's -- the movement of companies from place to place helps our business. >> how much of what you're getting are from companies who realize they don't really know as much about real estate and they should give it to someone else to do, a pro? >> we outsource a lot of real estate services to big corporations, hospital systems, even government entities. so today at our investor outlook day, we talked about the fact that we think that outsourcing business has about a $140 billion revenue profile.
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for us today, and we're by far the biggest in the sector. huge amount of growth there, jim. we've grown that business for over a decade at a double-digit organic rate. we've had also a lot of m&a activity in that area, but that's been a big grower for us for a long period of time. >> you're global. you invest. what countries, what places are the most advantageous, like the best places to invest in real estate right now? >> well, there's a couple ways we look at that. part of it is where is the investment activity and where is the services activity? where we've actually seen a lot of investment activity this year has been on the continent in europe. that's where there's been a lot of -- >> how can that be? why do we think europe is so week, and guest after guest that comes in says europe is good? >> it's not growing super fast, but it's growing. the fundamentals in property there are pretty good. in other words, rental rates are going up. occupancies are going up. people, i think, looked at brexit, and they said this may be more of an opportunity on the
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if you looked at our third quarter numbers, what you saw was relatively speaking, the best part of the world for us was in continental europe. >> any regions in the u.s. seem interesting? >> the u.s. is a huge market and fundamentals are good. all this concern about real estate, here's the facts. >> give it to me. >> the facts are the following. rental rates are going up. occupancies are going up. unlike any other -- i'm almost 35 years in the business. industry for me, any other cycle i've been through, not a lot of new development. >> the last thing i wanted to ask you was that new building. i don't see a lot of cranes in every city i go to, which means the market is tight, which is good for you. >> well, it's good for a lot of people. it's good for owners in real estate. it's good for financiers of real estate. we have a healthy market. this has been a slow-growth environment but a long-growth environment. by the way, we think it's going
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that's been a nice thing for real estate because it hasn't caused overbuilding. it hasn't caused interest rates to spike, and it's caused companies to remain confident that if they do something, there will be good results. >> i think they should take advantage that your stock is down even though the long-term record of your company is just stellar. just really fantastic. that's bob sulentic, ceo of cbre group. new stock for "mad money." consistent grower with a stock it should be. "mad money" is back after the break. >> announcer: coming up, what do a chip maker and a big industrial company have in common? they are both stocks to watch as donald trump transitions to the white house. cramer has more on how to play the new american administration, next. jack be nimble, jack be quick, jack knocked over a candlestick onto the shag carpeting...
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all right. do you buy the stocks of companies with the best near-term earnings, the ones that just blew away the quarters, reported fantastic numbers, or do you buy the companies with currently depressed earnings that can make huge comebacks if the trump rally is accurately forecasting a better economy? it's a valid question. almost every tech company that had superior earnings is being chipped or shredded the way a branch too close to a power line gets pruned and hacked in savage fashion. meanwhile you have companies like caterpillar that literally remarkable rally and its own stock, saying you shouldn't get too excited about what trump wants to do because federal money might not be seen for ages. in the meantime, the rest of the world is soft. total buzz kill. what happens? caterpillar climbs today. it's up 68 cents. my suggestion. i say you bust the whole darn dichotomy. this is a moment where you want to bet on the mechanics of the market as much as the fundamentals of the economy. you also want to seize on the fact that a pruned tree is one that often grow back faster than
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trees that aren't flowering right now will do so eventually. i mean maybe you need to buy them ahead of time. so let me give you two examples of what i'm talking about. if you look at the companies that had the single biggest earnings beats that bowled over the estimates, you always come back with the same one. it was nvidia, nvda, the chip company for the internet of things, the automobile, artificial intelligence, all those fantastic secular trends that are here to say. now, nvidia stock soared 30% when it reported its quarter, it's more than 165% for the year. while it's been pruned from 94 to 87 in the last few days, shedding $4.56 today alone, it's still up 20 points since it reported its breakout quarter. we know why nvidia is pulling back. it's run too much. it's being used as a source of funds so money managers who don't have new money coming in or have redemptions can go buy the industrials that benefit from trumponomics or the banks that win under a looser regulatory regime. nvidia now also has a bad chart,
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rollover. who wants to get in front of that? but here's my take. do you really think that everything is going to go smoothly in the transition from president obama to soon to be president trump? you think the industrials can go higher on the same thing, the era of good feelings that trump created towards business? i say no way. in fact, i bet there will be speed bumps, and when they happen, managers will switch back to the companies that have the best numbers. they'll come back to nvidia. they'll want to show their clients they were smart and bought the first semiconductor play with the mostest. so how do you do it, though? this is tricky. first you buy a little tomorrow when it's down. most likely it will be down again. sellers are too huge to finish, off loading their positions in one day. then you wait until it gets closer to where it was when it reported that monster quarter, say in the 70s. you buy a little more. worst case scenario, it gets hammered and you get to back up
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i don't know if that will happen. how about the other side? here again, i'm concerned about too much too soon. except this much it's too much in the up side. let's talk cat. stock at a 52-week high. too hot. reminds me of an egg on a red hot griddle. you cook it for nine seconds, delicious. but ten seconds, burnt mess. but if cat pulls back, that could be a chance. now you could apply the same rubric towards so many different st that are being slaughtered. let me give you the bottom line. on the stocks of great companies being slaughters, you start small. you get bigger on the way down. then unlike those hair trigger hedge funds, you wait for a better minute to buy more. that's how you can profit for much less risk. same things for the stocks going up. trim a little. chuck in california, chuck. >> caller: hey, jim. what's up with the crm? i've been buying it hand over
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it seems to me benioff's outfit -- >> chuck, that quarter was one of the best benioff has put up at salesforce. this is part of a vicious rotation out of companies that don't need a strong economy to grow into ones that do need a strong economy. the big guys who own these tech stocks, they're selling them off. it doesn't matter if they're good or bad. nvidia was the best of all, and that's being crushed. that's all part of the same group of stocks that they're just -- >> sell, sell, sell. >> let it rain. let it rain a little more. jonathan in massachusetts, jonathan. >> caller: hey, jim. i bought nvidia back at 28, and obviously they've been on a tear lately. it made me think back to a pearl of wisdom from latin class that commission is derived from a word. i think their partnership with
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rising tides in the market for gpus, and the rapid acceleration of deep learning. and artificial intelligence as a whole makes me wonder if this competition is more than who can make a better -- >> jonathan, first of all, congratulations on that incredible nvidia buy. remember, you would take the money out that you put in and play with the house's money. so take that out. i agree with you, i gave a talk today, and i said amd is in the i said also that it was going to come down now like all of tech. but you buy slowly into that decline. rodney in ohio, rodney. >> caller: hi, jim. first-time caller, longtime viewer. big booyah from ohio. >> booyah. >> caller: i'm asking about worthington industries. has it reached its peak, or is there more potential to earn
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worthington is one of those stocks that i put in the caterpillar category. that's going up so much, so fast that i don't know if i can endorse it versus the ones that are coming down so hard, so fast that i'm getting intrigued by. remember, nobody ever got -- nobody ever went broke taking a profit. all right. the market is still adjusting to president-elect trump. you know what? there's going to be plenty of bumps along the way, but that's an opportunity, an opportunity to slowly start positions in beaten down words like in nvidia and find chances to buy -- get caterpillar on a discount. much more "mad money" ahead. all those holiday sweets you're sinking your teeth into, this is the season for dental player henry schein. then immune therapies have been hailed as the future of cancer treatments. but could news that juno suspended a trial one such therapy take the blockbuster approach to the curb? i'm investigating what the company's struggles mean. and all of your calls rapid fire in tonight's edition of the
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what do you do when the stock of a high quality company suddenly goes out of style on the wall street fashion show through no fault of its own. henry schein, hsic, largest distributor of dental and veterinary products on earth. when the company reported a month ago, they delivered a small earnings beat with a slight revenue miss. very strong guidance for 2017. it caused the stock to roar up 6% on the news. in the last few weeks, henry schein has been pummeled, falling back to almost where it was before the company reported that quarter. what's wrong? we've got to find out. but the problem is despite henry schein's excellent track record, this is exactly the kind of stock that does well when the economy is less than stellar. no matter what, people keep going to the dentist and taking their pets to the vet. but ever since donald trump's surprise victory, investors have been swapping out of these so-called safety stocks and buying the stocks of more cyclical companies that can produce tremendous earnings
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accelerates. in other words, henry schein is as good as it's always been, but the cyclicals have become more attractive. still, just because wall street has temporarily turned against stocks like this one. that doesn't mean you should do the same. let's check in with stanley bergman, the chairman and ceo of henry schein. mr. bergman, welcome back to "mad money." how are you? >> good to see you, jim. >> you heard what i had to say. first i was thinking perhaps i know there had been some slowdown in dental consumables the quarter. it's not that. i just have to believe what people are doing is rotating out of henry schein because it's going to be consistently good no matter what, and that's not what they want. >> i don't know, jim. you know wall street better than me. health care stocks for some reason are just not fashionable. having said that, we are a consistent earner. we generate good sales, good eps growth, and we turn our profits into cash.
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of that cash into a buyback where you think the stock has met some level. >> as a company we've been buying back a lot of stock because of that reason. we're also investing in the business of course. >> it was down 5% for the year, and that's not the henry schein we've had during what is a slow-growth economy. i think people make snap decisions. i know that's my department, but let's talk about the core business. how strong is, given the fact we think the humanization of pets is a major story for our times, secular growth, how strong is vet right now? >> the vet business, the companion animal in particular, has been a good business, a good grower for many, many years. the baby boomers are investing in pets. people in the developing world are starting to own pets. so the pet economy in general has been very good for companies in that space. >> all right. how about the vaccine business? is that strong? >> the vaccine business continues to grow. obviously prevention is very,
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po in the united states. >> i notice there is some concern by some of the analysts about competition among you and some of the other players in your business, which is something that -- i'm just going to read a william player analysis which says, schein management played down the notion of any deterioration in the competitive pricing environment for dental. i mean i've never really thought there would be competitive pricing. is that something new? >> jim, every market is competitive. i wish we wouldn't have competitors. i've been in the business for 36 years. i don't remember a year when we've been able to say, wow, there's no commission. >> when i read the henry schein conference calls, i never have to hear about like it's a retailer that there's a promotional environment. that has not happened. >> of course we have our promotions, but the markets are relatively stable, and i think over the long run, short term, medium, long run, we will continue to be in a business
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that's because we provide good value added services. >> you're doing some acquisitions. talk about those because i think that's how you can get accelerated growth that so many of these momentum funds demand. >> right. well, we continue to have good internal growth. >> your organic growth was very strong this quarter. >> and we continue to be in that region. we've been in the mid single digit eps sales growth for a long, long time. at the same time, we supplement that with several hundred basis points of acquisition growth. it's a strategy that's been in place a we continue to have expectations of growing the top line through acquisitions. of course acquisitions are only real the day you sign, but there's a decent pipeline. >> so you bought 1.2 million shares during the course at an average price of 163. so someone is doing that. that seems to be a bigger amount than what you have done, or is that consistent? >> well, our board approved additional amounts of stock to be re-purchased, and we ton believe that's a good place for
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businesses as well and investing in acquisitions to expand the business. >> one last question. you said that other countries, people are starting to go brazil. pets. is that brazil? is that europe because this is a thesis we think is a 20-year thesis. >> the area, believe it or not, where our pet business is growing very, very fast is in eastern europe. >> eastern europe? >> poland, the czech republic, romania. doing very, very well in the pet business. >> to me, i know it's not the largest. but i think the pet business is just a fantastic business to be in. >> don't forget dental. dental's good. >> i know. that's stanley bergman, chairman and ceo of henry schein. they're all good, it just happens to be that we're in a trump rally that does not include health care. "mad money" is back after the
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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 buuy [ 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." i'm going 0 start with john in massachusetts, john. >> caller: booyah, cramer. how are you? >> i am good. how about you, john? >> caller: great. i'm great. i just wanted to know the future like what's your participate on international paper. >> inexpensive stock. good yield. big industrial. nice global business. i like ip. i think you buy some here, maybe buy some lower. how about scott in ohio, scott.
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booyah to you, jimmy. >> i like that. what's going on? >> caller: i wanted to know your position on berry plastics. >> i liked it. i can't believe how far the stock has moved. in the end, it's still a company that makes containers. i prefer newell, which i know has been absolutely crushed. i've been buying it for my charitable trust right here at 45. let's go to george in new jersey, george. >> caller: good evening, jim. my stock is toro. >> wow. toro in some time. i can give you a read-through from home depot if it would make you feel good. but that's not what it's about. let's do some work and find out how toro is doing right now. how about dominick in new york, dominick? >> caller: hey, jim, thanks for taking my call. >> of course. >> caller: is there an upside for home depot this holiday season? >> yes, there is. come on. i mean this is a company that you buy and you hold and you do homework. buy some here. if the trump rally fizzles, you
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and they are a great company. alex in virginia, alex. >> caller: booyah, jim. thanks for having me on. >> you bet. >> caller: i'm calling about intellia therapeutics. >> too risky. too risky. you can do it totally as a spec. that's it. ed in new jersey, ed. >> caller: hey, how is it going, jim? >> real good. how about you, ed? >> caller: great. the question for you is about eto. i've been watching this since it ipoed. >> he don't want to mess with the broken ipos. we got too many things going wrong in good stocks. think of salesforce. how about robert in florida, robert. >> caller: hey, robert from south florida. good to talk to you. >> good to have you on the show. >> caller: the stock i'm calling about is amdocks, symbol dox. this is a company that saves companies with documents and i've always felt it's a very good company. the stock has had a big run, but
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let's go to michael in new york, michael. >> caller: hey, jim. i was able to pick up dorial green-beckham. >> i don't know, man. i don't know about that. well, whatever. he's questionable if jordan's a q. i'm sorry. go ahead. >> caller: i also want to pick your brain on therapeutic md. >> no. that's as speculative as dorial green-beckham. this is real money we're playing that was a reference to an eagles wide receiver that some people picked up. and that, ladies and gentlemen, is the conclusion of the lightning round! [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade. ?? the itsy bitsy spider went up the waterspout. down came the rain and clogged the gutter system creating a leak in the roof. luckily the spider recently had geico help him
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we've got to spend some time together on these smaller cap biotechs that so many of you asked me about. i'll tell you why. because i'm worried, and i'm worried about how people are investing in them and if they know and understand the risks that they may be taking with this kind of speculation. here's a great example. last night we got some very
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it's a development stage gene therapy company that's one of the leading players in that red hot field of cancer immunotherapy. this is one of the sexiest areas in biotech. i understand that. blue bird stock rocketed up 14% today on the good news. the reason? the company announced some positive interim phase i clinical trial data for its multiple my el oh ma therapy. if this move has you salivating over these plays, i got to warn you about something. this is a high-risk group, and i've noticed a pattern here that i would say is less than ideal if not purely suboptimal. when a company like blue bird reports good news, only its own stock rallies. the rest of the group barely budged today. but when one of these companies reports bad news, the whole cohort gets obliterated. in fact, that's exactly what happened just last week. while most of you were steeling yourselves for thanksgiving, just last wednesday another
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immunotherapy, a companied called juno therapeutics told us they were putting the trial for their leukemia drug on hold after. in response, the stock lost nearly a quarter of its value in a single session, and the selloff didn't stop there. the entire cancer immunotherapy group got hammered, particularly the companies most like juno as they do was suddenly called entirely into question. there was a ton of negative pin action from juno's bad news. but today we hardly had any positive pin action from blue bird's good news. that's asymmetrical. that's why i'm worried. that's why i'm talking about this right now, because if you own a bunch of these cancer immunotherapy stocks, you need to know something. you are not diversified. now, i often tell you if you want to speculate on early stage
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basket of different companies in order to spread the risk around. but as we learned last week, if you're biotech basket is full of companies that all use the same science, you haven't spread the risk around at all. you've just made one multiple bets on one thing, and i've got to tell you multiple bets on one thing, that's too risky. let's step back a little so you can understand why certain aspects of biotech speculation may be more perilous than you might think in wake of today's terrific data from bluebird bio. companies like bluebird and juno therapeutics develop drugs that turbo charge your body's immune system so it can search and destroy cancer cells. more specifically, these different companies are poster children for what's known as chimeric antigen receptor therapy. lately it seems like everyone wants to get into this business because it's been viewed as perhaps the most promising area in oncology.
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three reliable ways to fight cancer, surgery, chemo, radiation. none of them is a sure thing, and they all come with serious, sometimes life-threatening side effects. however, in recent years, scientists have made a lot of progress with targeted cancer therapies that can attack tumors without damaging the rest of your body. many have been on the market for years, which brings us to the recent break through, cancer immunotherapy. what could be less invasive than using your own immune system to combat this dreadful disease? and the hottest area within this new field is what juno and bluebird do, cart immunotherapy. and you got a whole host of companies. you've asked me about all of them. they're all out there trying to perfect this formula. there's juno itself, but it's lead drug is supposed to treat several different varieties of
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there's bluebird, which also has a number of non-oncology related formulations like a product for sickle cell disease that's in phase three. then there's kite pharma. you've asked me about that one, whose lead drug has received designation for three different types of lymphoma. then there's cellectis focused on leukemia. there are a number of big pharma and biotech companies. i'm lookin at you, celgene, that have parted with these smaller players or are working on similar therapies by themselves. now, this kind of immunotherapy has the potential to totally revolutionize the way we combat cancer. you might think it's safe to bet on all these companies because there's working on different diseases or using different pathways. but here's the problem. when the news is bad, the stocks all trade together.
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slammed by a negative development in any of the others. one of the reasons this field has been so hot is that it's supposed to have fewer side effects than other cancer therapies. but last wednesday, juno but one of his trials on hold because its lead drug caused serious brain swelling in two patients, both of whom sadly died. to make matters worse, this is not the first time that's happened. in july, the fda forced juno to put this same trial on hold over the summer after three patients regimen. but they removed the hold later that month. then it happened again, and the stock got eviscerated, down 24.5% in one day. you might think this problem was juno's and juno's alone, but if car-t immunotherapy is more dangerous than we thought, it calls the whole group into question. remember, the entire point of using your immune system is fight cancer is that it's supposed to be safer than chemo or radiation.
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people, then this might not be as much of a breakthrough as everyone believed. that's why cellectis and kite have been getting pummeled on the news. and after today's data, it soared higher. but, again, while all these stocks sold off on juno's lousy data, only bluebird rallied hard on its own good news. and, look, this group issue, it's hardly isolated to cancer you see something similar when any group of drug companies are focused on the same disease. the same thing happened last week with alzheimer's. eli lilly's alzheimer's drug that had seemed to promising to so many including lilly, ended up failing in a large clinical trial. that was devastating news for alzheimer's patients and their loved ones. it also eviscerated the stock. and just like we saw with juno, it didn't stop there.
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alzheimer's treatment and their stock fell that day. ac immune lost almost 16% of its value in that session. the issue with alzheimer's is that so far nobody has come up with a decent cure. we don't even know really how the disease works. so every time another drug fails, investors get discouraged about the entire endeavor. so here's your cautionary bottom line, people. when you're dealing with early stage drug companies that are pushing the frontiers of science like the cancer immunotherapy names, remember that bad news from any member of the group is group. i'm not saying you shouldn't speculate on these stocks, but the pin action here is one-sided, which means there's a whole other level of risk that you need to consider. and if you own bluebird, i think you should ring the register on half of your position tomorrow. let the rest run because nobody ever got hurt taking a profit. what the??? you're welcome. i just helped you dodge a bullet.
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lowers it! just be cool. actually, checking your credit score with credit karma doesn't affect it at all. are you sure? positive. so i guess i can just check my credit score then? oooh "check out credit karma today. credit karma. give yourself some credit." sorry about that. to feel this special... you need to eat this special. ?? ? i love it ? start your day with crunchy whole-grain flakes... special k. eat special. feel special. you wanna see something intense? pantene expert gives you the most beautiful hair ever, with our strongest pro-v formula ever.
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tomorrow morning, 7:30
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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 tomorrow! are . from now on, it's going to be america first. okay. america first. >> on the heels of the carrier jobs news, president-elect trump taking a victory lap while also re the american military. the death toll rises from a one, two punch from massive wildfires in the southeast. news on an nfl player shot in a road rage incident outside new orleans. buzz aldrin forces a high rescue mission from the north pole. heroes are now looking for new homes.


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