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tv   Mad Money  CNBC  December 13, 2013 6:00pm-7:01pm EST

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pits. scott. >> web extra about illiquid options. >> dan. >> risk in tesla. >> mike, final word. >> buy xlp puts. >> wonderful. our time has run out. mad money coming up next. have a fantastic weekend, everybody. 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". america to cramerica. just try to make a little money. my job is not just to entertain, but to educate and to teach you, so call me at 1-800-743-cnbc. after a mixed session where the dow inched up 16 points, the nasdaq climbed .06%. after definitely what was an
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ugly week, let's look forward and talk about the game plan for next week. this business isn't about the past. it's about the future. now, we start off next week worried. worried about the rest of the world. the numbers out of europe and china are okay. i hope that can change monday. the pmi is coming over the weekend. along with the -- why is it so important? give the main portfolio managers looking for a resurgence of international industrial that is are based in the u.s. the profit taking in this has been down right horrendous. maybe strong numbers from europe and china over the weekend could allow for a nice oversold rally. one that may have started the last half hour of trading today ask kind of gave up the ghost in the last ten minutes. we hope it see more news on chatter that spring they've been preparing a bid for t mobile, like them both. something my friend david faber said could be in the works many
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times in the last few weeks. now, this potential deal would help sprint get heft, which is why its stock ran up too on the rumor. i like both stocks. tuesday kicks off the last big event for br the end of the year. the federal reserve's meeting to set policy for the foreseeable future. we want we won't know the results until 2:00 p.m. wednesday. at least when it comes to hiring, housing, and autos that the fed has a good case for getting less accommodative. that's what a great deal of the selling that's been going on lately is about. also, of course, people are liking gains. you know i don't fear this so-called taper like so many others. the fed knows the stock market as well as the bond market. the fed knows that there comes a time when sales and earnings for corporations will be good enough that the stock market won't flinch all that much when it starts buying fewer bonds than it can recover. perhaps with different leadership of the stock market still.
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some of you believe it's the end of the world that this meeting is taking on a huge level of gravity and anxiety. i because of the potential deal between republicans and democrats. why i'm chattering on about the fed meeting, let's take a moment to wish ben bernanke a happy birthday today. congratulate him for getting the economy as far as he has, certainly without much help from the president or congress. we had two deals that remind me of how good he has done. burton and -- knee taken down so much debt during the bad times that can you argue they might have been declared bankruptcy, laying off tens of thousands of people if not for bernanke's easy money policies. now, look, we may in in for a real rocker when the fed tapers, but ben has been known for saving millions of jobs that would have otherwise been lost if he hadn't decided stay accommodative. yes, he was late and initially complicity. once he saw how wrong he was, he changed courses radically, and that was genius, the swreenus that helped us get this market
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to where it stands. i never mind a guy thatted mitts he is wrong and changed his mind and gets it right. that's called good investing too. tuesday jay bill. this contract manufacturing used to be an amazing stock, but not any longer. now i use it as a barometer of the customer's demand, including apple, which i can't correctly talk about because apple won't let do you that. i look for apple to trade off of jbil even if we aren't sure how much business jbil is doing. tuesday is a huge day. starts out with federal express, when ch has had an amazing journey. up through the 130s where it went out today. the rally's accommodation of rebounding global growth as well as brilliant restructuring and produced some pretty darn good earnings. fedex is going to give us the overall window we need to find out how asia is doing as well as the nice give a peek at internet commerce. even if the company doesn't say everything right. then again the transports have been incredible performers, including the rails, and it
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maybe too much -- the owners aren't going to part with this stock unless -- we also hear from general mills. short while going along kellogg against it, and that's a real life trade that was suggested earlier this week. i think general mills is marking time here. it doesn't have i ton of up side, despite deflation that's good for the company because the stock uses a bond market equivalent, and now that we're probably near the end of the ultra low cycle it might end up getting sold no matter what. let's get insight into one of the great problems of this moment wednesday. why are the home builders -- why are the home builders not doing that well? i mean, that's largely because these stocks were fantastic performers in the anticipation of the turn, and they've done next to nothing since then. len ar, the stock is down 9% for the year. when len ar towards wednesday, i
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bet it's going to be a decent number. when toll reported and it then went into the red when managers said sales lately had been okay. i think len ar tells a better story. these stocks don't have any believers left, and they're considered public enemy number one when it comes to tapering. be careful if lennar opens up because it could be another toll and head right back down. before the close wednesday we hear from many of the executives conference regarded as the evil empire. oracle. this huge software firm sold so much legacy business that i doubt it can stop reason, but i don't want to own it in a world where the technology has moved on and away from them. if if you wonder what i'm talking about, go to the archives and read about every interview i have with the exec alan dream its force that are carving up oracle's client base. thursday brings in more food. this one is from conagra. i'm starting to think they bit off more than they can chew. i want to hear that things are
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going well with that acquisition, and that could ignite the stock. i'm not going to look that the beforehand. too risky. we get results from darden, which is more from being a slow to no real growth dividend play to being an activist investor's dream as the insurgents are making a strong case for new management. be careful. the one thing darden is not is an earnings story. prepare for another disappointment and then buy it when it gets hit. after the close we hear from nike. i think it will be terrific. stocks come down nicely ahead of the report. let's take a look. plus, pier one reports, and they missed the quarter last time. if you recall alex smith, the ceo came on "mad money" after that last quarter. he said that the fault was his own, and his ebbing cougs lack the its usual precision. i think it's bankable. he is one of my bankable 21. i bet will he deliver this time. i think both nike and pier one are buys ahead of the quarter. remember, this is the day after the fed meeting. it's important. remember, market on wednesday. we get our chance for terrific trade on friday. ceo of macy's said finish line
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stores within macy's -- remember he gave them that concession -- are doing fabulously. why not take a shot at finish line before it reports friday but after the fed meeting. this would be the day that you would buy some finish line for friday. that i am blessing as a good trade. here's the bottom line. these are all important important earnings reports, but we have to get through the big bad event of the meeting. that's going to define the week. i'm not denying that. that could make any trade suspect. be sure you have conviction enough to pull the trigger. any stock in e market except for perhaps finish line, because that doesn't report until friday. let's go to annette in california. >> caller: boo yeah, mr. cramer. hey, first of all, i would like to thank you for all you do for us small-time investors. because of you, your books, and now your alerts, i'm starting to see profits in my portfolio. i can't wait until your new release of your new book comes out. hey, my stock has a lot of legal
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issues with dma patents and what not. it's called myriad. >> myriad genetics. >> mydm. should i buy it into weakness, hold, or sell it? >> boy, you know, you said all the things that i am most worried about. it does have cancer research, and cancer research is working. as long as you understand it's a speculative stock, i will bless it. boy, i've got to tell you, thank you for all those nice comments about action alerts, my books and stuff. we have a great staff. that's why i look good, believe me. never forget that. nate from texas. nate. >> caller: boo yeah from university of texas. >> fantastic. what's up? prirchlgts. >> caller: i would like to know what the current transition in the fed how will that impact one of my investments to bso? >> i wouldn't worry about it. the main thing is the metric you need to worry about is west texas versus brent. this is a play that so-called ash trauj between the two. there's big glut of oil in this country. they can refine it and sell it to you. they got a big umbrella between what they buy it for and what they refine it at.
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i like it. lots of important numbers next week, but what will set the tone? the big, bad event. darden gets hit. you buy it. finish line, bought thursday. stay with cramer. >> coming up, healthy forecast. metadata solutions harness the power of the cloud. its stock soared nearly 200% this year. can it stay healthy? and, later, market blockbuster. movie chain amc is set to roll out the red carpet on wall street next week for its public premier. should you book a ticket, or will this silver screen opportunity turn into a box office flop? plus, smell of success. from french fries to fabric softener, international flavors and fragrances is the company that puts the aroma in it all. is it time to take a whiff, or will this run turn sour?
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cramer talks to the ceo. all coming up on "mad money". i love having a free checked bag
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when it comes to the cloud computing games with turbo chashlged down right growth rates, sometimes have you to hold your nose and buy. if the stocks seem but not be ridiculously expensive by traditional valuation metrics, if are you trying to make money, and that's what the goal is all about, then you can't afford to cough at the moves of the cloud stocks. especially this close to the end of the year when so many money managers are chasing performance andotology buy anything with momentum regardless of the price, which brings me to the metadata solutions. a company i like to call the sales force.com of the -- it's the leading player in what's known as the clinical cloud.
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being they provide cloud-based software as a service, that's saas, and helps pharma and biotech firms run their clinical trials allowing them to save money and improve the product drug trials. i think it will get an err larger piece of the $50 billion pie the drug companies spend on critical development every year. man, the stocks run. it's a real nose bleed valuation even with the 23% growth rate. metadata's report was fabulous. stock jumped 21 points to 123 single session. here's the thing, you could have pulled those negative articles about the valuation or avoid the stock. the last time we -- got the stock some 50% since then. you could have said the same thing in early jin. then it was another 7% run. can the momentum continue? let's take a look with tariq shareef. this is an expensive stock. i say that because i like it, but i want everyone to know, and
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he is the co-found, chairman, and ceo of metadata solutions to hear more about his company's prospects. welcome back to "mad money". how are you? >> good to see you. great to be here. >> i have to tell you, i have to get the cavat about the expense because a lot of people said how could you recommend a stock, jim, kind of hack have you become? what i'm saying is i see accelerating revenue growth from your company. i look at the total addressable market, and i realize that the opportunity may be much bigger than your current market cap. >> our customers spend $90 billion a year developing new drugs sxshs we are going through a massive transformation of the industry currently where there's a lot of innovation going on, there are a lot of folks trying to push productivity and efficiency in their operations. you saw what gillead is doing bringing innovative drugs to market. we help them to get those drugs to market in a safer way, less risk, more quality, and at a
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lower cost. if we can get them to market sooner, that means a lot more revenue for those companies, so our road is a very long one. >> you've got a great slide and terrific presentation. mid 70s cost how much does it cost for a drug to come to market. you can reverse that process. you think you can fwet it back to what it used to be to some degree? >> i think we can actually help drug companies get 20, 30, maybe more than that percent decrease in the overall cost of bringing a new drug to market, and importantly, we can help them to fwet the drugs to market faster. it means getting them into patient's hands sooner, which has huge beneficial affect for you and me and for all the folks we love. >> okay. i think that we're going to say, wait a second, what is currently gone wrong? i love this quote that we do clinical trials that -- premise software versus cloud-based software.
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why is one so much faster, cheaper, and better than the other? >> so it's a combination of things. you have a massive amount of complexity in developing new drugs, and you have a lot of process, a lot of safety concerns, a lot of regulation, and the way drugs are developed takes a long time. it's very expensive now that you have genomics coming on, it's getting more complicated. you are constantly fighting with upgrades, with changes in how you want to run your clinical trials because it's getting more complicated. they are global. so we provide a huge amount of flexibility in the software that we develop and deliver through the cloud. >> you talk about how we're early on ms, but you only have 50% of the -- you are touching, as you call it, 50% of the companies already. how do we know that we're so early on if you already have 50% of them looking at -- >> so our customers -- we touch about 50% of all the electronic
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trials that are being started today. however, there's an enormous process of how you first develop those trials. if you think about how they evolve in terms of how you run the clinical trials and so we're probably at a 3% or 4% penetration rate with the platform that we provide for our customers, and so there's so much value that we provide to them that we think there's a long road of adoption ahead of us. >> you have something -- a quote in your credit suisse -- we help their customers manage their entire process while writing your protocols and -- you didn't always do that, right? now you are just soup to nuts? >> that's just technology that we've evolved over the last three or four years. >> why would anyone not want to do it or are they locked in? i do some work with oracle. it's very hard to get them out and bring in a software service provider. >> i think part of the growth story that you've seen from us over the last couple of years and that you will continue to hear quite a bit about over the next three to five years is that we are getting them off the old
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technology and on to our platform, but there's another part to the story. it's not just a replacement market. it's also a huge growth market because we're constantly ino vating. some of the things that are changing today in the trial market or in the way drugs are being developed is you are starting to use things like fit bits or activity monitors. that brings us closer to the patient. it also moves us further into the whole health care ecosystem. a big road for us ahead. >> i know i have to break, but it must also eliminate a lot of the dead end trials. much shorter before. >> that is part of the value equation, absolutely. >> every time you come on, you amaze me. co-found and ceo of metadata solutions. sometimes you have to look at the total aaddress of a market and revenue growth and make a decision that the company's market cap does not include all the great opportunities, and that's the case with metadata. stay with cramer. >> coming up, market
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blockbuster? movie chain amc is set to roll out the red carpet on wall street next week for its public premier. should you book a ticket or will this silver screen opportunity turn into a box office flop? ya know, with new fedex one rate you can fill that box and pay one flat rate. how naughty was he? oh boy...
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what a decent day at the end of a pretty darn ugly week. let me give you something to look forward to, and i know@jim cramer on twitter, this is the most asked about stock. we're interactive, so we deliver. i'm talking about amc entertainment. it's the second largest movie theater chain in the united states, which is going public next week. remember, 2013 has been a bountiful, truly fabulous year for ipo's, and i don't think this one will be any different. according to ipo fund manager renaissance capital so, far we've had 219 initial public offerings this year. up over 72% from 2012. more important, on average these deals have given you an astounding 30.5% return since coming public. that's better than the performance this year, which brings me to this amc entertainment, and that is not to be confused with amc networks, the television company's responsible for the walking dead and mad men, also that's been a good stock too, and it's still relatively cheap. tonight we're talking about phil. not television.
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amc entertainment which will trade under amc has a keen understanding of what it takes to win in the theater business. business that many clever people have written off as being in decline. too clever by half. how can the movie theaters compete with the likes of netflix and hulu or the rise of cable television? not to mention the increasing cheapness of big screen tv's? or the fact that dvd's are coming out three to four months after the movie hits theaters rather than the six-month clay you used to get? given all this, why would you want to invest in a movie theater ipo? amc is not just letting them fester. this is a company that's taking action to stay relevant and keep customers coming back for more. you know what, it's working. let me give you the rundown. like i told you before, amc entertainment is the second largest movie theater operator in the country. it has 343 theaters, that's sporting a total of 3,950 screens. the company plans to send 18.4
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million shares. between $18 to $20 a share. that's what it's advertised now. they're going to use the proceeds from the deal to pay down debt -- we've heard that many times -- and invest in growing the business. amc would be a $1.8 billion company, and i believe it is absolutely worth owning at hez levels. i wouldn't even mrink if the ipo prices at $22. it's going to be difficult. if you can call your broker and try to get some shares in this amc deal, i really think you should. to tell you the truth, i am kicking myself right now for not telling you about this one sooner because amc did something really terrific. they gave members of the customer loyalty program a chance to get in on the ipo on a first serve first serve basis. sadly, we missed the window. i own that. didn't get it right. you can still try to get in on the deal the normal way. through your broker, and even if you can't get a piece of the ipo, i think amc could be worth owning in the after market so long as you don't pay up too much for it. i rarely give you permission to do that. before i get into how much is too much to pay for the stock, let me explain why i think this theater han is worth owning.
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people talk about how you mountain movie business is in secular decline. with industry-wide attendance flat or falling over the past decade, you know what, the story is far more complicated than that. last year was the single best year ever for the movie theater industry? record box office revenue u.s. and canada. let's look specifically at amc. in 2010 they had attendance of 188.8,000 people. last year it was 199,000. they are, in fact, getting more people through the doors and more bottoms into the seats. that doesn't sound like a secular decline to me. now, amc may be the number two domestic theater chain, but they're number one in the top five largest u.s. markets. ♪ with 34% market share on average across new york, los angeles, chicago, philadelphia, dallas, and amc is either number one or number two in 20 of the top 25 u.s. markets. amc's three biggest competitors, regal, cinemark and carmike, and
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within this group amc is the highest average ticket prices. $19.17. that's 4% higher than regal. as well as the highest concession sales per theater goer. roughly 10% higher than regal. you know how much money they make in those stands. amc is also the leading imax player. twice as many as its next competitor. according to a piece in the "wall street journal", the theater companies, including amc, are building out their own oversized screen auditoriums. these premium large format screens are equal to equal the number of i manks knowing max screens. amc is getting people to pay up for tickets, and then selling them some would say ridiculously overpriced sodas and snacks, and yet they have the lowest return on investment capital and the lowest ebida. that tells us that amc if they can get their act together to become a somewhat better run business, then i think there's a lot of room for the earnings to
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improve. what else? amc has really michigantives and innovations. o vegass even in this industry. for example, amc is really ambitious to convert its theaters into more appealing destinations for consumers. in the last two years the companies install electric recliner seats. sfloop the versions have nevertheless managed deliver a 1% increase in attendance. these recliner seating upgrades cost a lot of money. casual cash returns that average 100%. in other words, on a cash basis this investment pays for itself in just a year. remember, amc has only done this in 28 theaters, and the concept can grow to 100 lobbyings over the next five years. amc -- so can you grab dinner and watch a movie at the same time. that's a terrific concept. if you are looking for, say,
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adn, which, of course, is accelerated date night. they've already got made to order food and drink kiosks in 80 locations, grab and go type markets. 11 full dine-in theaters, seat-site side service. lounges have a full-service bar, when ch i like. even if they're in secular decline, they're doing their best to squeeze the money out of the customers they do get. amc would be at 6.6%. that is a big discount to regal and cinemark that average 7.9%. that is through relevant metric. i think you can pay up to 23 -- write that down -- for amc. 23 for the stock after market. i could see it ultimately going quite a bit higher as its theater conversions pick up speed. management has said they start to go public and would yield, i believe, ae bountiful 4.2% at the midpoint of amc's price range. that's roughly in line with
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39.4% yield and these companies always have pretty good yields. amc is practically held chinese conglomerate. that's a positive sign. after the lock-up expires they can start selling. roughly that's a year from now. here's the bottom line. you should try to get a piece of amc. amc entertainment ipo, and i give you permission to pay up to $23 in the after market. if you can't get the stock at that price, all right, say you missed it, wait for it to come down at a better level. can i go to evan in kentucky. evan. >> caller: b-b-boo-yah. >> nice stuttering boo-yah. >> got down $7, ceo left, finished today. what are we thinking going up or down from here? >> this was a traversy. what happened is that the ceo, the co--ceo left, and i did like him very much. everyone just panicked, okay? they thought -- they started saying the earnings were bad and that the inventories were too high.
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i listened to the call. everything is on target. i didn't want the co--ceo to go, he felt he had a great opportunity at lucky brands. i am with you. that was a good quarter. okay? that was a good quarter. can i go to ray in arizona? ray. >> caller: hey, jim. a greetings from sunny 68 degree arizona. >> i wish i were there. >> caller: my question is that with the recent hilton ipo and starwood's stock up in the 70s and -- i want to know where you see hilton going? >> to 26. i had the opportunity to buy it at such a good price. i hope everyone got in it. i did my best to be able to say it's going to be a good buy. i think there's another four points, and i do believe that hilton it's not too late. this is one i would like very much. 26 would be valued the same as hot. until then stay long or do many buying. lights, camera, profit! i think the upcoming amc entertainment ipo could be a blockbuster. thank you from jim cramer@jim cramer twitter for the helpful
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constructive comments about amc as opposed to the attacks i have been enduring all day. stay with cramer. [ male announcer ] here's a question for you: if every u.s. home replaced one light bulb with a compact fluorescent bulb, the energy saved could light how many homes? 1 million? 2 million? 3 million? the answer is... 3 million homes. by 2030, investments in energy efficiency
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it is time -- it is time for the lightning round. >> are you ready skee-daddy? it's time for the lightning round. i'm going to start with russ in my home state of pennsylvania. >> caller: it's nice to talk to you after all this time. thank you so much for educating us bumpkins. >> i'm a commonwealth member myself. what's going on? >> caller: okay. i got a question about dfs,
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discover financial services. it's got a great price to earnings ratio. it's got great earnings per share. how come it hasn't exploded like the other three? >> because it's perceived as also being ran to visa and master card and american express? you know what, a lot of times you can make money with also rans. i think it's a good company, and i'm going to be a buy, buy, buyer. i go to shin dig in california. i kid you not. shindig. >> caller: this is shindig fa ventura, california. you and your staff are great people for all you do. >> you're very kind. >> caller: okay. after receiving some pullback -- >> i go to john in illinois. >> ifr. >> caller: nice to talk to you. i know where you keep baxter. here's the problem with baxter.
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two companies under one roof. splits almost instantly. >> buy, buy, buy. >> i tone for the split. go to curt. curt. >> caller: jim. >> yo, curt. >> caller: midwestern new york b-b-b-boo-yah. my stock is pay. i carry that stock over a period of time, and it's gotten trounced a couple of times this year. it's up around the 25 mark. >> well, last quarter was good. now you won't have to wait too long because they report next week. i have to tell you, i have been waiting for them to put together two straight quarters in a row that are good, and they vbt done that yet. i'm crossing my fingers for you sir. can i go to alex in louisiana. alex. >> caller: hey, jim. a big weekend boo-yah from baton lanterne rouge, louisiana. >> lsu go, man. >> caller: i have a quick question for you. you've been talking a lot about it lately. it was a couple of tough days in india. what do you think about nokia going forward? >> i like nokia. i like the single digit digits that are going higher. i think they can go to $10
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without a problem because their intellectual property is worth a great deal more. i go to steve in florida. steve. >> caller: boo yeah, mr. cramer. steve from western florida. i want to start off by thanking you for your sincerity. go gators, by the way. energy sd. >> all right. that's a pure spec. in the best of the oil companies they are getting haermerred here. >> the lightning round is sponsored by td ameritrade. >> i got a confession to make. i want my family to love me. it's that kind of unconditional love that means you never have
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to say you're sorry. i know i'll never get it because it's so pure. i want my family to love me the way the market loves twitter. the way it of loves netflix and amazon. you thought i was going to talk about my real family. i like that screen saver. this game was just like the auburn-alabama game. it's in the consciousness of people. this snow bowl is a game like the fog bowl. this is a game like the ice bowl. this is a game that many people will be talking about, and i was there. al roker talks about it. he tweeted it and put it on air? >> our good buddy from "mad money" jim cramer there@jim cramer tweeting out this picture during the game. >> he put my tweets on air. it's big. it's a big game. hike it to me. hike it to me. ♪
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>> now that the carnage of last week appears to be somewhat behind us, i think it's time to do some bargain hunting. consider international flafrz and fragrances, one of the four main suppliers of freeing rans, food, beverages, and household product industries. i like to describe them as an arms dealer that are increasingly desperate for an age against their competitors. the company has a whole network of laboratories where they describe proprietary flavors and smells. it's sort of a double play on innovation and incredibly innovative company that's also key behind the scenes player fueling the competition of its customers. now let's talk about bargains. at the moment it's offer the a52-week high. it's an astounding 41% return since we last spoke to the ceo, and that was only 16 months, august of last year, and it's 4
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drents earnings beat off of $1.18 basis. at that's levels iff selling for 17 times extra earnings estimate, and i think it can be a good opportunity to pick april stock that's been a consistent winner for the past year and a half. don't take it from me. let's go to doug, the chairman and ceo of international flavors and fragrances and find out more about how his company is doing and where he is headed. welcome back to "mad money". >> thank you, jim. delight to be here. >> all right. yesterday we had the great privilege of being in macy's perfume section when we interviewed terry lundgren, and i said when you see these faimz famous people on the bottle in perfume, how are they involved? he said they're very involved. sir, when you get a tory perch formulation, is that tory birch working with someone in the lab to get a fragrance she loves? >> yes, in many cases that's exactly how it plays itself out, jim. the celebrities want to be part of the puzzle. they want to endorse something they totally support. it's really been terrific to see
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how many really want to be actively involved and get, frankly, very keen about the entire process. >> now, when you do something like that, you've got several kinds of different flavors and fragrances. i mean, is it just trial and error? do you say, listen, how about this one? this one works. how are you sure it's not somebody else's smell? >> well, all of the formulas and fragrances we have are unique. there's really a mindset which says here's how i want to position the flavor or the fragrance. the celebrities get involved in the fragrances, and identify something, frankly, that they're personally attached to. there's a real bond between the celebrity and what we produce with our wonderful perfumers at the company. >> okay. are you ever surprised that some do better than others, or in the end does it come down to marketing and you are just the responsible one for the good smelling formulation? >> well, frankly, i think of all of the fragrances and the form layings are really quite terrific. there can be the celebrity endorsement. there can be the marketing hin it says and the distribution.
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there are a whole lot of factors that contribute to the success, but at the core of it all has to be an outstanding formulation that our perfumers come up with. >> i think people have to understand that you're a science company. i have been calling you a -- while some drug companies spend double digits, a lot of your customers themselves in the consumer package goods spend nowhere near the 8% rnd of sales rnd. you are a manufacturer and a scientist. is that fair? >> i think that's absolutely fair. jim, innovation has to be our lifeblood. our customers seek that innovation. they come to us for it based on both consumer insights, customer intimacy, and, frankly, scientific knowledge, so we consider ourselves really a technology innovation company and although employees understand that is the detriment to the company's success. >> you also partner with a biotech company now, a biotech company to develop new form layings. this is a rather extraordinary
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thing that you are actually -- you are in gene sequencing basically. >> well, we're in to biotech for a number of reasons. it's security and supply. it's the opportunity for long-term sustainable cost positioning in the product, so biotech, we think, is a significant opportunity, and, yes, we have relations with companies and we look to continue to increase those. >> all right. you say in your -- one of your notes, you say this is more excited about our ino vaifsh pipeline -- maybe that's how we should view iff. >> well, no. actually i think we look at iff as both a wonderful opportunity in the short-term and the long tv term. we certainly categorize the next quarter as going to be a good quarter sustaining broadly what we've been doing long-term, but we also see that long-term the innovation has to be at the core
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and, frankly, we have said our pipeline is as good as it's been, and that's both on the flavor side of the house as well as the fragrances side of the house. both rnd groups and they're about 50-50 in the company's portfolio, both of those are focused on coming up with innovation one, two, five and ten years ahead of time. >> it's not just the last 18 months. it's been 18 years for me with your company. fantastic work, sir. great to see you. >> thank you. you too, jim. take care. >> that was doug, the chairman and ceo of international fragrances. a scientist that is in many of the things that you eat, in many of the things that you smell. it's a good stock. stay with cramer. i love having a free checked bag
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because i didn't want the trust to get hit this close to year end. i don't throw things any more at guys. i have called down. it was upsetting, as is always when one of your stocks is trading down big after the close. you feel helpless right and befulgdzed knowing that the night and then the next day's trading are going to be hideous. you walk away pretty dow. you know what we've been telling people the stock trades off of it? it trades off of the cloud offered. want the eps. it trades off of adobe's new lucrative subsubscription suite offering that has united sales in the future, not the present. i said to her that everyone knew that, and they didn't seem to care. they're selling it down anyway. she challenged me and said they're selling it down because they don't know that the earnings per share are not what controls. when a stock heads down, it's a self-fulfilling prophecy that the media jumps over it and the big barry alvarezed myth that made it the disaster when we
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left the office last night. sure enough, what we were looking for, the subscription cloud orders, were far better than what we expected. even better than the highest of the high analysts. you watch the stock tick up when the number -- you can see that those who were selling on earnings are definitely confused. the climb, the call back up made no sense to them because they were using a service that told you what the earnings per share consensus was and it didn't hit the consensus, so, therefore, that meant sell or because they weren't listening to the conference call at all. i mean, maybe it's too hard for them. or they would have known that the key metric is so much better than expected that the stock had to go up. next thing you know, the stock is up two and a half from the bottom. management outlined the cloud business, and jumps another dollar when they get giddy about the company's success in transitioning to cloud-based orders that it goes up another $1 when there's a lot of congratulations. by that point we knew that the shorts were dead. they were baffled. it's a huge run hire edging the stock today. up $6.90.
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12% gainer. by far the biggest -- this was the shortfall. by far the biggest of the s&p 50000, and the almost 20% gainer. short and sold it. you know that. sure, there are cases when things are bad and when the company flushes it out on the conference call it's already too late. wait and hear the real story on balance, and it's much better than worse in the years of the conference calls. even more important, though, you've got to recognize it's the recognition that not every stock is an earnings per share driven stock, even though we talked about it all the time, and in my soon to be released book get rich carefully, i have page after page of -- but the key metrics that are the real drivers of what must be beat to send a stock higher. these are the whisper bars that must be taught. we know now that the sellers of adobe didn't see the truck that ran them over. they didn't see it coming
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because they believe investing is as simple as fining out what the earnings per share consensus is and if the company failed to beat did, and then i wish it were that easy. we would you will be billionaires. the hard money, the careful money was made knowing what really mattered with adobe, the cloud subscription owners. not the earnings per share. you won't regret doing the extra work. if you don't know your metrics, then just stay away from your screen. you'll be beaten to a pulp the way the adobe callers were after this outstanding quarter. at least outstanding in what really mattered. stay with cramer. [ male announcer ] the new new york is open.
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and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and grows more businesses... we're open to it. start a tax-free business at startup-ny.com. is caused by people looking fore traffic parking.y that's remarkable that so much energy is, is wasted. streetline has looked at the problem of parking,
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which has not been looked at for the last 30, 40 years, we wanted to rethink that whole industry, so we go and put out these sensors in each parking spot and then there's a mesh network that takes this information sends it over the internet so you can go find exactly where those open parking spots are. the collaboration with citi was important for providing us the necessary financing; allow this small start-up to go provide a service to municipalities. citi has been an incredible source of advice, how to engage with municipalities, how to structure deals, and as we think about internationally, citi is there every step of the way. so the end result is you reduce congestion, you reduce pollution and you provide a service to merchants, and that certainly is huge. >> this week big bad eth, the fed. it's all anybody is going to talk about. what i want to you do is be ready for stocks to buy after the fed meeting when they hit
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the market. that's when the opportunity is. my trend of the week is finish line if it comes down because of the fed. let's say there's always a market somewhere. i promise to try to find it. i'm jim yamer, and i will see you monday. the white house says it's, quote, encouraging the insurance companies to accommodate its push for delayed obamacare enrollment deadline plans. is the white house waging war against insurance companies to cover up its massive obamacare mistakes? and speaking of ugly, the brewing war between john boehner and the tea party is getting nastier. the tea party fired back today saying boehner started it. of course, it's all about the budget deal that paul ryan struck with the democrats. ryan is trying to save the gop from itself so why would republican senators sabotage the deal and risk a

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