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tv   Mad Money  CNBC  March 1, 2016 6:00pm-7:01pm EST

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buy some right here. >> guy? >> with marathon we talked about it yesterday, massive secondary, 726. i thought it traded pretty well. i think it's day two. >> see you back here at 5:00. more "fast money." don't go anywhere. "mad money" with jim cramer starts right now. my mission is simple -- to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to cramerica. other people want to make up friends. i'm just trying to save you money. my job isn't just to entertain but to teach you. call me at 1-800-743-cnbc. or tweet me @jimcramer. what exactly do the bulls want? that's the perfect question to ask on a day like today because you can read the market like a
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map to find the answer. so let me put my cartographer's hat on and explain the map that this market used to please the bulls and go much higher than anybody expected. dow roaring 349 points, s&p up and nasdaq up 2.89%. first, like many of the super bullish days it's beginning before many wake up. we got news from overseas that pointed us this the path that could take us higher. what else is new? you could tell by the way it's news from overseas that drives thing. if you go to bed at 11:00 p.m. when the futures aren't doing much at all and you wake up at 3:00 a.m. and they're flying, that's a sign that somewhere some place we got some good news at last. you can tweet me if you keep this schedule as i do and i'll retweet you for certain. we got two pieces of good news from the same unlikely place -- china.
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first we learned that the chinese economy is worse than expected -- wait a minute. manufacturing the lowest level in seven years which is the last time that the chinese got serious about taking a great leap forward with their economy. now they meet saturday and with the weak numbers as the stars are aligned for the biggest stimulus package yet, the year of the monkey, i think they'll put more money to work than people think. china can turn, it's done its before. who know, maybe we will get some meaningful stimulus. at the very least the lousy chinese manufacturing numbers sure turned the stock market around over there which went from black, and as the session proceeded. far more important, we have a shockingly dovish speech from bill dudley. he's the new york fed president who caused a recent sell-off by denying anything had gotten weaker since the rate hike. he set off a firestorm including
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here with yous truly when he said it was all systems go with the rate hikes because everything is hunky-dory. last night he gave a speech in china, on balance i'm less confident than i was before end quote about the economy. part of this reflects my assessment that uncertainty to the outlook has increased and downside risks have crept up, unquote. then quote, at this moment i judge that the balance of risk to my growth and inflation outlooks may be starting to tilt to the downside. the recent tightening of financial markets could have a greater negative impact on the u.s. economy should this tightening prove persistent, end quote. all i can say is -- hallelujah. and throw in this. that was easy. i cannot stress enough how important this dudley speech was to the turn that you saw today. even though it happened when most of you were sleeping. you have the federal reserve's leading hawk saying that maybe he was too bullish about the
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economy. and he has to adjust course for new more negative reality. a position totally at odds with his previous statement. a repudiation of them i would argue. when you also factor in dovish comments on "squawk box" has week from the st. louis fed, it's certain there's no rate hike this month. that isn't what we were thinking as late as yesterday. it's also very significant that dudley's comments came not long before the release of the nonfarm employment report on monday. dudley knows it will be not so hot permeated the discussion today and that boosted the stocks from the get go. because a weak employment number means that the fed won't feel compelled to act this month. but you know what else happened? if you go back two weeks ago we had this monumental flight to quality, with money pouring out of risky assets. and with investors hiding in
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ultra low risk u.s. treasuries it was actually a frightening thursday. maybe i'm missing the point here. the flows have reversed putting an end to the flight to the quality trade. the money going to the emerging markets and junk bond funds. that's a huge reversal in direction. i don't trust it, but it is happening. how could it be? simple. think back to the mind set when we had the flight to quality. the world was supposed to be ending. the fed about to tighten. that's total nightmare scenario. but when the two biggest most visible fed hawks on the -- the ones who recognized that there are some real problems and then china recognizes they have a genuine chance to do something big, well, you're far more likely to want to sell treasuries and get more positive. you can't have the chinese expanding and stay bearish. you want to buy risky assets not
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sell them. now, that brings us to the next major issue. got to figure out how do you get more positive about stocks themselves if things really are that weak in the country that dudley agrees with bullard. how can you thread that needle? first, you need some positive data to come out, voila, we have a construction figures that was positive. we got a small business survey in paychex that showed an improvement in hiring. wow, dudley he said i'm nervous here. be -- we got excellent numbers from ford. strong enough to call in the notion that we're reaching peak auto sales and the bulls want to thread the needle which means you need to see some strength but not so much that the new found doves like dudley will feel like they need to back track. we don't want a recession, we want growth to slow a tad, to put the federal hold in more defensive, while we sort through the data.
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as the bits of news comes out, guess what they have a catch. every income has a catch. what's that? oil. will oil behave, we have to say that every day. meaning will it go slightly leaguer? we know if crude doesn't go higher then they won't be able to sell equity and many will default on the lopes to the banks which is the big saga that took the market by storm two weeks ago. sure enough the price of crude rallied nicely again. if you want a microcosm of the oil and the banks, let's go through it. one of the more troubled -- we'll use -- one of more troubled giant oil companies is marathon company. many had speculated that it would join the ranks of the dead men drilling and tyke take down the banks that sold it millions. it ensured that this would be no balance sheet problems. follow the sell stock. it joined the ranks of devin, pioneer, hess and newfield if
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offering equity to raise cash to please the creditor, the ratings agencies. perhaps because the other deals worked well for investors this marathon deal was oversubscribed. and the company ended up offering 145 million shares at $7.65 apiece. the offering was priced perfectly. the stock rallied 30 cents. that's a huge gain for those who got in it. and marathon went from the not so hot credit to a good one. another wounded player saved. it's a reminder what matters to the market the oil stays high enough that all the sizable cash strapped oil companies can raise capital and the banks who have been taking it on the chin from the worries of the oil loans are off the hook. both the oils and the banks led the market today with -- and plus because of the better economic data interest rates rose which allows the bank to make more money off your deposits. then that's work day. when we interviewed the ceo
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aneel bhusri it was going lower and we sussed out it was sharply better than expected on this show. i pounded the table again this morning on mad dash and "squawk of the day" when the report came out. it was up nearly 20% today. that encourages buyers who have been anxious about owning many fast growing tech stocks which includes broad com and the usual members of f.a.n.g. which tend to rally when work day blows away the numbers. like it goes down when tableau software blew up. this market was ready to take off. remember we heard from carolyn boroden who told us last night that the rally today would be
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crucial in determining if the s&p can keep climbing. she epredicted a rally well, it added more fuel to the fire. here's the bottom line. the map played perfectly for those who own stocks today as the plethora of needle moving, needle threading news came together in a single session. making march roar in, not like a lion, but like a good old fashioned bull. michael in wyoming, michael? >> caller: hey, jim, thanks for your time and happy belated birthday. >> thank you very much. >> caller: i'm 26 years old and i'm trying to take advantage of my roth and i picked up some tesla. the first lot a st a 22% loss and at a 35% gain. those of us trading out of the roths are not able to trade spec id. >> right. >> so in order to take advantage of the 35% tax free gain i have to take the 22% loss in the first lot of shares.
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given the disadvantage i have trading out of the roth should i liquidate the entire -- >> well, let me give you the pro, my daughter wants one for gradiation. not going to happen. and there was a devastating tesla report and andrews got a lot of power. when people saw that they didn't like it. you have to have conviction if you own tesla because it's not on any way can i explain it on price to earnings ratio, on price to book, on revenue. i can't base it on anything, but if you have the conviction then you can ride it out. i do not have that conviction. i need some touch stones to make me feel better. i need to go to adam in florida. >> caller: hey, jim. the f.a.n.g. stocks have been under pressure year to date except for facebook. what are your thoughts on facebook with regard to other gleem. >> well, i created f.a.n.g. because it was a symbolic thing. when we talk about the "f" in
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f.a.n.g., that's facebook. i think it can earn 450 in 2017. look at it, it's at 109. i mean, why can't it sell 30 times its earnings. so that's how i come one the higher valuation. if you look at this year's numbers you will think it's too expensive. if you look at next year's numbers you think it's too cheap. the f.a.n.g. -- the cheapest is the "g" which is alphabet, but the symbol is google. prem in florida. prem. >> caller: thanks for having me on. we're a big fan. the whole family watches every night. >> what's up? >> caller: i wanted to ask you about priceline. >> i like the price line quarter. i went over it with someone who is those to the company, how the heck can the stock go down? i really thought the priceline quarter was absolutely terrific. and you know what? i have to be careful. i want to point out because i did talk about the marathon,
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weather ford's filing an offering. don't overstay in the fossil fuels. they will exhaust the bottomless pit of buyers. the market gave the bulls what they wanted, a map that left to shrug off the nasty day. the name behind modern and more, a knockout quarter last week, but didn't knock the bears out. is it time to start chopping wayfair? i have an exclusive with the ceo. and valiant is showing courage or determination. if you google it. but i have a different determination when it comes to the embattled stock, although anything can bounce. don't miss my take on the pharma's latest issues. and i'll show you how this new device is saving lives so stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets.
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send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.
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last thursday we got a terrific quarter from wayfair, the online retailer that sells furniture and home goods at bargain basement to well studio and the numbers don't seem to matter much to the stock. it's one of the most vicious battle grounds out there. and 38% of the float. who are suspicious of the business model no matter what they seem to do. when they reported last week they beat all of the metrics by a very large margin. like the monster 81% revenue growth but after initially seeing the stocks soar, the darn thing has given back on the gains. what going on here? let's look to niraj shah and
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hear more about the company and where it's headed. back to "mad money." first, congratulations, you made money this quarter. a lot of the bears said that would never happen. how did you do it? >> well, you know, our company was profitable for the first nine years which folks tend to overlook. >> yes, they do. it's not a dotcom from three years ago. >> i think the great thing about our business is we have great unit economics. the reason we're growing so fast, is on the back of repeat. if you look at new order growth, 67% year over year which is great. but you look at the repeat order growth, it doesn't carry much ad cost. >> you're pro prytary versus what people think. you have 450 engineers today. what are they -- what do they do for you so the others can't keep up? >> sure. so, you know, the thing about an
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online business you clearly need merchants and merchandising, and marketing. you clearly need great operations supply chain but our world is entirely all three of those, superpowered by technology. we build our own software. so the engineers are building the systems which when customers are shopping, how do we know which recommendations to service for them, how do we handle the transportation network, they're handling that. so every piece of our business has a tremendous amount of technology. >> well, that's a point i want to go to. the transportation you are moving and moving aggressively into europe. that's going to cost money. i know the model should scale, but europe is a hard place for americans to do business. why are you so confident? >> so, you know, we have been in europe for a number of years. so we took a very slow and methodical approach to europe. we entered the u.k. in 2008 and germany in 2009 with a very small team. over the year, we feel like we've learned the local markets and competitors and over the last 18 months we have scaled the team up. one of the things we mentioned
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on the call, we had 450 people in europe and now the merchandising, the site experience, the logistics and customer service we do that excellent. our leading market is the u.k., and we have seen that the customer traction is very strong. get the customer experience to where it's good. then you can market it and ramp your customer base. knowing that you know your economics. knowing that you're -- you have good repeat and it's getting better. as you see with our business, as you ramp the business, actually the business flows through. >> why do you need europe? >> i wouldn't say you need europe. the u.s. is a huge market. but europe is a very big opportunity. it's as big as the u.s. market. so when you look at the leader, look at netflix built a strong leadership position in the united states. they have extended their reach outside the united states and are building a strong international business.
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look at amazon, they have a strong domestic business. they have built a strong business outside the united states. it's a big opportunity. we think the technology we built, our understanding of the home market it's a category that's unlike other categories. we think we're in great position. >> wayfair is changing the way that people shop for their homes. part of the process is helping the consumers discover the new possibility, in terms of selection, price, service, inspiration. you're going catalog. why do you need catalog? you have a great online experience. >> we have an incredible online experience and we do great things on television with partners. we have integrated on hg tv and -- >> isn't catalog old world? >> the point i'm going to make about catalog where it fits in, one of the things different about home, home is unbranded. it's very visual in nature. one of the great opportunities when we have a loyal customer
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and we have over 5 million active customers as i mentioned they're growing -- we're growing because they're coming back. well it's a touch point for the customers. very immersive and very visual in nature. we take this imagery in the photo studios. these are product selections we put together so it's a great opportunity to make the experience more immersive without kind of taking on this fixed cost structure that a lot of folks do with physical stores. >> i know it's important because our viewers have been hurt by restoration hardware. some by williams & sonoma. i'm trying to distinguish why you're so much more confident than they were, because they were overconfident. restoration in particular. >> both of them play at the high end of the market. their products are very expensive. so making them affordable and allowing the customer to find a unique item is a big thing. there are a number of things we
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do that's entirely different than what they do. they're traditional inventory players that work off a narrow range. they're really store based with catalog operations that's a model that's worked very well for them. but not what we do. our model is much broader and larger. it's a mass business and with the selection we offer the merchandising that we have it's a different business. >> i was going over your story with my head writer, cliff mason. he was saying what more does the guy have to do? how can there still be a 38% short position. but i do find myself in a curious position. of saying what do they want? i mean, you -- you're profitable, they were worried about repeat business, your repeat business is doing much better than we thought. you're worried about whether you're different from overstock. well, you know, or amazon. it's clear that they could gun for you all they want, but it's not working. not killing you. >> look, any time you have a fast growing company, who isn't profitable in our case.
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recently turned profitable. some folks may want to debate it. but what you would say if you read the research on us the folks who have done real research who do consumer research look at the awareness numbers, ask consumers why do you like wayfair, it becomes clear why we exist, why we're growing so well. what customers value. if you want the thesis that wayfair doesn't make sense you can say that. but i think as you do research you would find that wayfair is very strong. >> well, i want people to do the research, not be spooked by the trading. this was much better quarter than i thought that they could do at this point in their public lifestyle. that's niraj shah, cofounder of wayfair. i want you to get comfortable, i know you will. "mad money" is back after the break. it's been a wild week so far. >> apple can't be forced to
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provide access to the locked iphone. >> in 20 years the stocks will be higher than now. >> it's called super tuesday because it goes national tonight. >> don't miss cramer's final take, coming up on "last minute mad."
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when you see accounting irregularities you don't ask
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questions or wait for more clarity. you sell sell sell. but can they equal sell? that's when of the cardinal rules for decades now. if you want to know why you only need to look at valiant, vrx. ever since we first learned that valiant is using unorthodox practices to sell drugs it's a dark matter over this one. the initial major charge as opposed to smaller leaks about how they're committing accounting irregular lirr toews and leff has done some good works. even it seemed a little -- at the pharmaceutical -- a little radical to call it enron. leff's point out that "the new york times" which published the story about the odd relationship with another company which is scratching the surface. i don't know a lot of talk about the price gouging but value
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yants seemed like a more aggressive actor in the same plight. once i read citron's stuff i thought forgot it. it isn't -- that's how you have to think. the upside isn't worth i. unless you have total comfort that the short seller is wrong, i don't know about you, but ever since that report there's not a day of comfort in this story. even if it was being used to move inventory, it wouldn't ding the earnings that badly. plus, it would still have amazing cash flow. i watched big ackman and ceo mike pearson tag team the positive story. but my rule is severe. i still hadn't heard anything indicating that all of the accounting was kosher. i never heard of a reputation of what citron was saying. as it plummeted down to 70 i was glad my rule hadn't failed me and then walgreens announced a deal with valiant and the stock went up to 15 because of
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walgreens good housekeeping seal of approval. as we much as we like and respect walgreens, my charitable trust owns it. the valiant stock drifted down as owing to the pearson stepping aside because of illness and some real negative publicity from hillary clinton including this gem. >> it's called valiant pharmaceuticals. i'm going after them. this is predatory pricing. we'll make sure it is stopped. i'm hillary clinton and i approve this message. >> the guy who said that there's no such thing as bad publicity had not watched that message. anyway, then came a second accounting bombshell. the company said it recognized too much profit in 2014. then valiant exonerated itself. the s.e.c. does the investigation. not the company.
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that news came out stock was at 76. now if hadn't sold the stock on the accounting irregularities means sell, sure enough, valiant which has the most disclosure said nothing about it on monday morning when they decided to delay the release but put out other stuff. when we did find out, the stock got whacked, falling down to 65 and change. close to citron's $50 price target and now it's trading at half of what we learned before we learned about the potential accounting irregularities. i have been accused of keeping people out of stories that were legitimate, but being tarred with the accounting charges. it is true. i have been too cautious at times, there have been some missed opportunities but can we please disagree that when i say accounting irregularities equal sell and that valiant is a
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constant reminder of how right that rule is. this is a nightmare, but let me give you the bottom line. it's a nightmare that could have been avoided by following the straightforward principle that's always stood the test of time. i'm sure they can bounce again, they all do. but remember my adage you won't be hurt by this one again. joe in new jersey up. joe. >> caller: hello, cramer. >> joe. >> caller: hey, i was at the grand hyatt on saturday in new york. for a t.d. ameritrade seminar. someone said they spotted you there. were you there? >> i was at a full day -- learning a lot from larry cramer. i was there. what's going on? >> caller: anyway, yeah, my question is about gilead sciences. >> right. >> caller: they seem to be doing the right things with good earnings. the approvals on the hepatitis
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drug and analysts are saying they're giving it a $100 price target, but my concern is the political head winds. should that stop me from buying it? >> i have to tell you of the ones of the four horsemen, of the celgene, of the biomed, this worries me the worst. it's an expensive drug, but i won't tell you to sell off, because it's too cheap. accounting irregularities equal sell. much more mad ahead. more than 25 million americans suffer from diabetes. i will talk to the ceo of the company who has an app that makes their life easier. and up more than 100%, see if it can stay in good health. plus the super tuesday edition of the lightning round, so stick with cramer. find fantasy shows.
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when it comes to the things you love, you want more. love romance? get lost in every embrace. into sports? follow every pitch, every play and every win. change the way you experience tv with x1 from xfinity. for the last six months all things health care have been in the danger zone. as the cost of drugs and health care in general has become a major hot button issue in this presidential election. hey, super tuesday. and while this won't translate
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into any kind of real government action the hostile political climate has made medical devieltions hard to own. instead of pricking your finger a zillion times a day, you have a sensor you can stick on your hand and it transmits your blood sugar levels to your smartphone in realtime or apple watch. since then it's now plunged down to $65 and change. some is simply because this was a super high flying growth stock in a market that turned against high flyers. however, the stock has rebounded 20 bucks from the lows. now i have to wonder if dexcom has found its footing. strong guidance for 2016. has dexcom gotten it back?
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let's check in with kevin sayer to learn more about the company and the prospects. good to see you. >> good to see you again. >> right out, how is the launch going? >> the launch is fantastic. we added a tremendous number of new patients in the fourth quarter and it's well received. >> now, this is one where you're actually starting to talk about some very big reimbursements. united health is interested. you're kind -- you're getting anthem. the big companies are trying to say, listen, you can do this. >> 98% of private payers cover cgm in the u.s. now. we're trying to move them to the pharmacy benefit. we have contracts where the patients can go to the local drugstore and pick it up rather than the process of going through it now. much easier and much better service for the patients. >> i was surprised to see you launched this. worldwide. this wasn't use the united states. there are a lot of countries in the europe that are saying, sure, we reimburse.
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>> reimbursement in europe is coming. sweden has been very, very well this year. coming in some other countries. we did launch it worldwide. this is first time we have done that as we said on our call. that was a big stretch for us. >> yes. >> big stretch. so we're learning. >> well t other thing that surprised me, you play with a totally open hand. you talk directly about the competition. you talked about the avid product and the medtronic product. and i mean, you're just out there saying, listen, we're not losing share. we're still gaining share. >> our business grew over 50% this year. in europe, we grew just as fast as it grew in the u.s. and our biggest market is in europe, we doubled. wore gaining market share, we're doing very well. >> why did you bring it up? you talked about abbott and libra and then the medtronic. before the end of the q&a, why did you bring them up? >> investors wanted to hear. >> they did? >> the people that the company want -- they wanted to hear the
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things. we don't run the company day to day for those guys. if we execute our plans we know we'll do well. >> okay. but it does seem that you were talking about best in class accuracy versus some of the other guys. it does seem to be the -- there's a bit of a difference. that's me saying that. >> there's a bit of a difference. we have best in class accuracy. and it matters. it matters over time. >> this is something that there's not a lot of room. like you want the 24/7, 999 variance. type ii was mentioned. that could be the next big market for you. >> it could be the next big market for us. that's why we have the verily partnership. there are tremendous insights that somebody ask learn about their lifestyle and their nutrition from wearing a continuous glucose monitor. different than the alerts and the alarms that we have now, where patients are using this to dose insulin and do things. it will be a different system but we think it can be a huge market for us. very insightful for patients. >> i want to -- you kind of dropped it. verily is google.
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and just tell people what that relationship is because it seemed less formative last time we spoke. now you're trying to figure out how to work together. >> we are starting to figure out how to work together. our first efforts are product development efforts whereby they're making lower cost electronics for the transmitter portion of our system. so we can take costs out of this thing and make it disposable. that product will focus on the type ii population. our first product launch with them. then we'll take that electronics over time and the things that we learned and spread it across the board. and use it across the board. >> i typically never talk about takeovers but i thought medtronic, i mean, if the stock drops too low are you afraid -- medtronics is a very inquisitive company. >> we're not afraid. we run our business to execute or plans. >> all right. i had to ask that. when i looked at some of the research, people lowered the price earnings but i do think that the political climate could
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clear up. is it weird that you guys -- which would save the system a fortune would get lumped in with the companies that just raised the prices and really are a tax on the system? >> we need to do a better job with data that shows how much money we can save. and how much we can benefit a patient. jim, i grew up a numbers guy. i would love to be able to put on the table before people, here's what you spend on our system, here's what it saves you and here's the equation. this is why you have to have it. we're going to gather day that shows that. when we present that data i have every confidence we'll get that -- >> come on that show. i'm tired of this industry -- i said it last night at the top of the show. i'm tired of this industry being blasted because there are good actors who are saving the system a lot of money, so come on when you get the numbers. that's kevin sayer, president and ceo of dexcom. and they bring up the competition. who brings up their competition if they don't think they're better?
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"mad money" is back after a break.
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>> announcer: lightning round is sponsored by td ameritrade. >> it is time. it is time for the lightning round. you say the name of the stock.
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-- sell sell sell sell. then the lightning round is over. are you ready, skeedaddy? dave in illinois, dave. >> caller: dr. cramer, a pal to your charitable trust. paypal. >> oh, my, dan schulman has been on the show twice. he's the ceo of paypal. i have to tell you, the analysts are discovering how good -- do not sell it, i would be a buyer. colin in new jersey. >> caller: hey, i'm a big fan. i wanted to know what you thought of consul energy -- >> they gave it the boot from the s&p 500. i don't like fossil fuels. calvin in connecticut? >> caller: hey, boo a. service corps international -- >> the -- it's a good one.
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that stock has come down too much. need to go to russell in california. russell. >> caller: the stock is to you, buy, sell or hold. >> i don't know 2u. you stumped the chump. i don't know -- let me do some work. let's go to phil in michigan. phil? >> caller: booyah from northern michigan. what do you think of frontier? >> do accepturery link, but me i'm a verizon guy. verizon has been good to me. let's go to rowshawn in new jersey. >> caller: booyah from princeton. pxd -- >> pioneer, if you're buying a high growth one, do it. let's remember they did a big equity offering lower. richard in virginia. richard? >> caller: jim, thanks to you and your great staff for taking my call. >> you're welcome. >> caller: i'm up 25% in spirit
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airlines. >> but the airlines are way too cheap. i like delta. i like american. i like spirit. and i like southwest. all of them got too cheat. and that is the conclusion, ladies and gentlemen, of lightning round. >> lightning round is sponsored by t.d. ameritrade. erry gettingd every third tuesday. jerry: every third tuesday. we have pattern recognition technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. td ameritrade. i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on
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everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line.
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despite the climate of fear created by the politicians, the fact is that the health care sector still growing like a weed. that's one of the things our leaders keep complaining about. despite the flaws, the affordable care act is getting more and more health insurance. if you're looking for a creative why to play the business that might be more immune to political grand standing, it is super tuesday, than the rest of the health care cohort, consider amn. they're a type of health care cost containment that lets them use the expertise to manage the business side of things so the hospitals can focus on the patients. it services health care organizations and including big game ones like stamford, big outfits. this stock has pulled back roughly 23%. like a lot of the other stocks
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and they blew away the numbers when it reported let than two weeks ago. the stock started the rebound, but doesn't have -- but does it have more to run? let's go to susan salka and find out more about the company and welcome back to "mad money." good to see you. have a seat. >> always a pleasure. >> every time i talk to you, i find there's a new shortage in health care in your excellent conference call. you talk about 9,000 nurses that you quizzed. 54 and older, starting to retire. you're going to find nurses for people? >> well, you know the shortage of clinicians spans all disciplines. not just nurse. physicians, in fact, a third of the physicians are 60 and older so a good majority of them are beginning to retire and we don't have enough physicians to come into the market. on the nursing side, about half are 50 and older. and in the survey they asked nurses at 54 are you going to
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retire and two-thirds of them said likely within the next three year. >> we always hear about there are the professions where people can't get jobs. i mean, well, i'm unemployed. every single one of you have categories needs more people and they're not all doctors. >> it's really been an amazing burst that we have seen in demand. it's not surprising because of the shortages and we're really just at the beginning i think of early innings of all the shortages. but you have the other factors. you know, really step back and look at the major factors that drive utilization and demand and the economy is a factor. in fact, it drives more vacancies, more job quits. we are at the highest gap of job openings and hires within health care today. that means our clients are having challenges in hiring not only temporary, but permanent staff. we really help them all across that spectrum. >> well, let's talk about that. i thought one -- this is dan white, president, said on a conference call, i want to give you -- look at our top 20 accounts. 25% of them now utilize five
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more of the offerings, so you get in one, and then you do all the rest? >> absolutely. we try to look for multiple ways to help our clients across the spectrum. you know, in how we can help them to recruit clinician, on board, credential, train and then optimize that workforce. so you look at some of the recent acquisitions of avan dislast year. that was to help our clients to better optimize the workforce they have. whether it be temporary or permanent. then more recently the acquisition of b.e. smith -- >> which was almost immediate. >> absolutely. it's not only immediately added to the type of services but it hits an important pain point for the clients. one of the biggest complaints that we have heard from clients we can't do the transformative work we need to do in health care because we don't have enough leaders. so we acquired the largest provider of interim and permanent placement for health care executives and in fact last year we also acquired the first string and other solutions that
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provide health care leadership. >> one of the things that was a constant themes, they were trying to poke a hole through where you wouldn't do well. if everybody could find a job they wouldn't need you. but it seems there are verticals within your company that are always going to be in demand that you just can't do yourself. >> you know, you have to remember, again, we have multiple drivers within the business. and it's yes, the economy. that's a correlation between gdp and unemployment and as unemployment is low it typically drives demand for services in our business. but that's not the only factor. again, you have this ageing population which is going to continue to create challenges. so we've worked very hard to continue to diversify the business and make sure we're adding on workforce solutions that can really help our clients across that spectrum. and they tend to be less economically sensitive and have
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higher margins which is why you have seen improvement in our ebitda margins over the years. >> yeah. then you call out the physician permanent placement business, knock the ball out of the park. a particular reason why that division was so strong? >> well, we have a phenomenal team led by the founder, jim merritt and mark smith the president there. they have worked hard to continue to diversify the business and they've taken it in the the large systems. consolidation has been good for us. >> another theme that's been really terrific. >> so you know they have just really -- they're hitting on all cylinders and they're evolving their business to kond continue to change with the needs of the client. >> this is an example of the individual stocks of the companies that are doing well, coming right back. susan salka, president and ceo of amt health care. this is the right time for the stocks. stick with cramer.
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we have the exclusive with honeywell, fresh off the united technology bid and right with his analyst day. dave cote and csx hold on through the takeover. i'm jim cramer, and see you tomorrow!
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